Slide 1: Analyst Briefing at Photonics West 2023
ANALYST BRIEFING AT PHOTONICS WEST 2023 Display Manufacturing and Life Sciences Now, Next, and Beyond February 1, 2023 Copyright 2023, Coherent. All rights reserved.
Slide 2: Co-Hosts
CO-HOSTS Dr. Chuck Mattera Dr. Giovanni Barbarossa Mary Jane Raymond Chair and CEO Segment President Materials Chief Financial Officer & Chief Strategy Officer Copyright 2023, Coherent. All rights reserved. 2
Slide 3: Speakers
SPEAKERS Dr. Kai Schmidt Dr. Christopher Dorman Senior Vice President and Senior Vice President and General Manager General Manager Excimer Lasers Business Unit Solid State Lasers Business Unit, Europe Copyright 2023, Coherent. All rights reserved. 3
Slide 4: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements relating to future events and expectations that are based on certain assumptions and contingencies. The forward-looking statements are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigatio
Slide 5: Display Manufacturing Now, Next, and Beyond
DISPLAY MANUFACTURING NOW, NEXT, AND BEYOND Analyst briefing at Photonics West 2023 February 1, 2023 Dr. Kai Schmidt Senior Vice President and General Manager Excimer Lasers Business Unit Copyright 2023, Coherent. All rights reserved.
Slide 6: Displays: Our Window into the Connected World
DISPLAYS: OUR WINDOW INTO THE CONNECTED WORLD Copyright 2023, Coherent. All rights reserved. 6
Slide 7: Displays: Now, Next & Beyond
DISPLAYS: NOW, NEXT & BEYOND 1” Display size >100” AR/VR WEARABLE SMARTPHONE TABLET / LAPTOP TV BEYOND BEYOND NOW NOW NEXT BEYOND MicroLED MicroLED Gen 6 OLED Gen 6 OLED Gen 8 Large OLED MicroLED Higher resolution Display resolution Lower resolution Copyright 2023, Coherent. All rights reserved. 7
Slide 8: Now: OLED Displays for Smartphones
NOW: OLED DISPLAYS FOR SMARTPHONES Rigid, flexible, and foldable displays Copyright 2023, Coherent. All rights reserved. 8
Slide 9: Coherent Provides Lasers for Four Key OLED Display Manufacturing Processes
COHERENT PROVIDES LASERS FOR FOUR KEY OLED DISPLAY MANUFACTURING PROCESSES [1] Laser Annealing [2] Laser Lift-off [3] Laser Cutting and [4] Laser Drilling Copyright 2023, Coherent. All rights reserved. 9
Slide 10: OLED Displays in Smartphones and IT Devices Will Continue to Grow
OLED DISPLAYS IN SMARTPHONES AND IT DEVICES WILL CONTINUE TO GROW Smartphone display (LTPS) long-term shipment ▪ Smartphone displays will continue to dominate forecast by technology 1,400 OLED market OLED: 8% CAGR 1,200 ▪ OLED adoption in smartphone is accelerating 1,000 Shipments (millions) ▪ Share
Slide 11: Coherent Is a Leader in Lasers for OLED Display Annealing
COHERENT IS A LEADER IN LASERS FOR OLED DISPLAY ANNEALING ▪ More than 300 excimer lasers installed ▪ Serving display fabs around the world, mainly in Korea and China ▪ Service revenue, including consumables, is in the range of 50-70% of overall revenue in display annealing Copyright 2023, Coherent.
Slide 12: Excimer Laser Annealing
EXCIMER LASER ANNEALING The de-facto standard and process of record for annealing OLED displays worldwide Copyright 2023, Coherent. All rights reserved. 12
Slide 13: Next: Larger OLED Displays
NEXT: LARGER OLED DISPLAYS For tablets and laptops Copyright 2023, Coherent. All rights reserved. 13
Slide 14: Manufacturing Larger Displays for IT Devices
MANUFACTURING LARGER DISPLAYS FOR IT DEVICES The OLED industry is scaling up from Gen-6 to Gen-8 OLED display fabs: ▪ To achieve economies of scale ▪ To enable the proliferation of OLEDs in IT devices: tablets and laptops First Gen-8 fabs expected to come online in late calendar year 2024, both in K
Slide 15: New Solid-State Lasers for Gen-8 OLED Display Annealing: Python
NEW SOLID-STATE LASERS FOR GEN-8 OLED DISPLAY ANNEALING: PYTHON PYTHON: ▪ The result of 10 years of technology development for display manufacturing and the IoT ▪ Improved annealing quality ▪ Lowering the cost of annealing by 50% ▪ First demonstrator unit soon to be shipped to a major integrator in
Slide 16: Beyond: MicroLED Displays
BEYOND: MicroLED DISPLAYS For very large TVs and tiny wearable displays Copyright 2023, Coherent. All rights reserved. 16
Slide 17: Emerging Applications for MicroLED Displays
EMERGING APPLICATIONS FOR MicroLED DISPLAYS Large Direct View (TV) Smart Watch > 1” • High brightness • Sunlight readable • High resolution • Low power • Wide pixel pitch • Limited pixel count AR/VR < 1” > 292” • Head mounted display • High brightness 150” • Small size 75” Size of MicroLED Displays
Slide 18: MicroLED Laser Processes
MicroLED LASER PROCESSES Laser lift-off Laser-induced forward transfer Optimized beam geometry to any MicroLED size Transfers MicroLED devices from the growth and geometry. wafer or a temporary carrier to the display, changing the pitch. This process enhances productivity, reduces costs, and maintai
Slide 19: MicroLED Displays Represent a Substantial Incremental Opportunity
MicroLED DISPLAYS REPRESENT A SUBSTANTIAL INCREMENTAL OPPORTUNITY Potential for $1 billion of incremental revenue over the next ten years assuming: ▪ SAM is 10% of the TAM for micro-LED TVs larger than 60 inch ▪ Approximately 4M TVs are sold on average annually Copyright 2023, Coherent. All rights r
Slide 20: Displays: Now, Next & Beyond
DISPLAYS: NOW, NEXT & BEYOND AR/VR WEARABLE SMARTPHONE TABLET / LAPTOP TV BEYOND BEYOND NOW NOW NEXT BEYOND MicroLED MicroLED Gen 6 OLED Gen 6 OLED Gen 8 Large OLED MicroLED Copyright 2023, Coherent. All rights reserved. 20
Slide 21: Life Sciences Now, Next, and Beyond
LIFE SCIENCES NOW, NEXT, AND BEYOND Analyst briefing at Photonics West 2023 February 1, 2023 Dr Christopher Dorman Senior Vice President and General Manager Solid State Lasers Business Unit, Europe Copyright 2023, Coherent. All rights reserved.
Slide 22: Opportunity: The Aging of the Global Population
OPPORTUNITY: THE AGING OF THE GLOBAL POPULATION ▪ World Health Organization: number of people over age 60 will increase from 1 billion in the year 2019 to more than 2 billion in 2050. ▪ Degenerative diseases, cancer, and Alzheimer's require challenging solutions ▪ Photonics technologies are driving
Slide 23: The Three Key Elements Revolutionizing Medicine
THE THREE KEY ELEMENTS REVOLUTIONIZING MEDICINE Biological Fluorophore Photons Sample ▪ A cell Fluorophore added to The perfect tool for ▪ A gene sequence a biological sample biological ▪ Brain tissue enables: measurement ▪ Measurement ▪ Imaging ▪ Counting ▪ Sorting Temperature Control Three color i
Slide 24: The Three Stages of Translational Science
THE THREE STAGES OF TRANSLATIONAL SCIENCE 1 2 3 Fundamental Development of Development of research instrumentation therapeutics Copyright 2023, Coherent. All rights reserved. 24
Slide 25: Now: A Toolkit Perfected for COVID-19
NOW: A TOOLKIT PERFECTED FOR COVID-19 PCR, cytometry, and genetic sequencing – a rapidly evolving toolkit Copyright 2023, Coherent. All rights reserved. 25
Slide 26: The Rise of PCR Testing for COVID-19 Is Just the Beginning
THE RISE OF PCR TESTING FOR COVID-19 IS JUST THE BEGINNING The PCR Process: ▪ Swab biological sample ▪ Probes tagged with fluorescent dye molecules ▪ Samples thermally cycled ▪ Fluorescence signal measured with time February 2021 announcement ▪ Coherent to double of manufacturing capacity of thin-fi
Slide 27: COVID-19 and Flow Cytometry
COVID-19 AND FLOW CYTOMETRY Flow cytometry: to quantify the effects of Covid-19 on the immune system Copyright 2023, Coherent. All rights reserved. 27
Slide 28: Gene Sequencing SARS-CoV-2
GENE SEQUENCING SARS-CoV-2 Sequencing of the virus genome has identified suitable targets for synthetic vaccines Copyright 2023, Coherent. All rights reserved. 28
Slide 29: Next: The Personalization of Medicine
NEXT: THE PERSONALIZATION OF MEDICINE Leveraging the toolkit for personalized medicine Copyright 2023, Coherent. All Copyright rights reserved. 2023, Coherent. All rights reserved. 29
Slide 30: Transitioning from Reactive to Preventive Care
TRANSITIONING FROM REACTIVE TO PREVENTIVE CARE Personalized medicine requires biological and genetic analysis of the individual. The tools for this analysis are the same as those used in the fight against COVID. An attack strategy to tackle cancer starts with these systems. Copyright 2023, Coherent.
Slide 31: Flow Cytometry
FLOW CYTOMETRY Various blood cells Flow tube with fluorophores attached Focused Light laser beam detection system Copyright 2023, Coherent. All rights reserved. 31
Slide 32: Gene-Sequencing
GENE-SEQUENCING ▪ Gene-sequencing instruments use similar lasers, and also have an extremely high throughput, but the fluorophores are designed to attach to specific base pairs of DNA, rather than specific cell locations ▪ The cost of sequencing a genome has dropped from millions of dollars to just
Slide 33: Toward Making Cancer a Disease of the Past
TOWARD MAKING CANCER A DISEASE OF THE PAST Medicines which are designed by chemistry-based science will be replaced by individual treatments created by cell or gene-based approaches Copyright 2023, Coherent. All rights reserved. 33
Slide 34: Beyond: Brain Medicine
BEYOND: BRAIN MEDICINE A revolution in brain medicine is underway with multiphoton microscopy and optogenetics Copyright 2023, Coherent. All Copyright rights reserved. 2023, Coherent. All rights reserved. 34
Slide 35: Three-Dimensional Multi-Photon Microscopy
THREE-DIMENSIONAL MULTI-PHOTON MICROSCOPY Imaging the brain structure and its operation Purkinje cells, mouse cerebellum. Imaged with Chameleon Discovery TPC. Courtesy of Dr. Y. Savchuk, Marquette University. Copyright 2023, Coherent. All rights reserved. 35
Slide 36: Optogenetics
OPTOGENETICS Moving from “read only” to “read/write” interaction with neurons to probe the brain functions of learning and memory Axon laser used for GCaMP6s Ca++ imaging in mouse following optogenetic stimulation. Courtesy of A. Packer, University of Oxford. Copyright 2023, Coherent. All rights res
Slide 37: Lasers for Mapping the Brain and Forming Neural Pathways
LASERS FOR MAPPING THE BRAIN AND FORMING NEURAL PATHWAYS Axon Laser Chameleon Laser Monaco Laser Copyright 2023, Coherent. All rights reserved. 37
Slide 38: How Coherent Fits In
HOW COHERENT FITS IN Copyright 2023, Coherent. All rights reserved. 38
Slide 39: Flow Cytometry with OBIS Lasers
FLOW CYTOMETRY WITH OBIS LASERS ▪ Broadest spectrum of laser colors on the market ▪ 20 years of miniaturization ▪ OBIS lasers enable the most capable, compact, and cost-effective instruments Copyright 2023, Coherent. All rights reserved. 39
Slide 40: Multiphoton Microscopy with Coherent Lasers
MULTIPHOTON MICROSCOPY WITH COHERENT LASERS Chameleon ▪ Over 3,000 lasers were shipped since 2007 Axon ▪ A fraction of the cost and size of Chameleon ▪ Positions Coherent well as multiphoton microscopy and optogenetics translate from the lab and into biological instrumentation Copyright 2023, Cohere
Slide 41: From Lab Instrumentation to Point of Care
FROM LAB INSTRUMENTATION TO POINT OF CARE TECHNOLOGY Multiplying the installed base from centralized facilities to doctor’s offices, or even the home Copyright 2023, Coherent. All rights reserved. 41
Slide 42: Vertically Integrated Solutions
VERTICALLY INTEGRATED SOLUTIONS Lasers Precision Optics Thermoelectrics Copyright 2023, Coherent. All rights reserved. 42
Slide 43: A Significant Growth Opportunity in Life Sciences
A SIGNIFICANT GROWTH OPPORTUNITY IN LIFE SCIENCES NOW NEXT BEYOND A new toolkit accelerated by Leveraging the new toolkit for Multiphoton microscopy and Covid-19: PCR, flow cytometry personalized medicine optogenetics for brain and DNA sequencing medicine Copyright 2023, Coherent. All rights reserve
Slide 44: Q&A
Q&A Copyright 2023, Coherent. All rights reserved. 44
Slide 45: Q&A
Q&A Dr. Chuck Mattera Dr. Giovanni Mary Jane Dr. Kai Schmidt Dr. Christopher Chair and CEO Barbarossa Raymond Senior Vice President Dorman and General Manager Senior Vice President Segment President Chief Financial Officer Excimer Lasers and General Manager Materials & Chief Business Unit Solid Stat
Slide 46: Coherent
COHERENT