eMagin — Investor Presentation (May 2023)
28 slides from eMagin's investor presentation, May 2023
Slide 1: Making AR/VR A Reality
Making AR/VR A Reality NYSE American: EMAN Investor Presentation – May 2023 1
Slide 2: Disclaimer
Disclaimer Certain statements made by us in this presentation that are not historical facts or that relate to future plans, events or performances are forward-looking statements within the meaning of the federal securities laws. Our actual results may differ materially from those expressed in any fo
Slide 3: Vision: Enable the visualization of digital information
Vision: Enable the visualization of digital information and imagery with OLED technology ©2023 eMagin Corporation 3
Slide 4: A Pioneering Technology Leader with a Broad IP Portfolio
A Pioneering Technology Leader with a Broad IP Portfolio A technology leader with proprietary and patented direct patterning technology (dPdTM) for 1 ultrahigh brightness in color, and the sole U.S. manufacturer of OLED microdisplays 2 Uniquely positioned to capitalize on growing addressable markets
Slide 5: eMagin’s Definitive Merger Agreement with Samsung Display
eMagin’s Definitive Merger Agreement with Samsung Display On May 17, 2023, eMagin entered into a definitive merger agreement with Samsung Display, a 1 subsidiary of Samsung Electronics. Under the terms of the merger agreement, all outstanding shares of eMagin common stock 2 on a fully diluted basis
Slide 6: Approval and Timing
Approval and Timing On May 17, 2023, eMagin entered into a definitive merger agreement with Samsung Display, a subsidiary of Samsung Electronics. A special meeting of shareholders will be announced to vote on the potential transaction. The transaction is expected to close in the second half of 2023,
Slide 7: eMagin at a Glance
eMagin at a Glance Headquarters: Hopewell Junction, NY The technology leader in OLED Displays Employees: 100+ Revenue: $6.6M in Q1 2023 • 97% from Product Sales, 3% Contracts • 47% U.S., 53% International • 17 countries served Market Cap: $166 M* Ticker/Exchange: EMAN / NYSE American Making AR/VR a
Slide 8: Leveraging Our Military Experience to Seize New Opportunities
Leveraging Our Military Experience to Seize New Opportunities Establish partnerships for high-volume manufacturing Develop commercial and consumer electronics customer relationships for AR/VR opportunities Grow commercial, medical and industrial presence Expand military and aviation market share Dee
Slide 9: Quarter-To-Date Q1 2023 Update: Surpassing records and Strong Backlog
Quarter-To-Date Q1 2023 Update: Surpassing records and Strong Backlog Financials • Product revenues for the quarter-ended March 31, 2023 totaled $6.4 million, compared with $7.0 million in the prior-year period • Contract revenues for the quarter-ended March 31, 2023 totaled $0.2 million, compared w
Slide 10: Serving a Critical Need in U.S. Defense Capabilities
Serving a Critical Need in U.S. Defense Capabilities • Recognized by the U.S. Department of Defense (DoD) as only domestic manufacturer of OLED microdisplays and designated as cornerstone of U.S. manufacturing base • Received $39.1 million in DoD funding for procurement and installation of capital e
Slide 11: Our OLED Technology Advantage: Lowest Power, Highest Brightness
Our OLED Technology Advantage: Lowest Power, Highest Brightness • Brightest OLED commercially available – monogreen with peak luminance over 40,000 cd/m2 • Full-color 15,000 cd/m2 prototype display demonstrated in 2023 • Very high contrast – greater than 1,000,000:1 • Lower power consumption yields
Slide 12: A History of Technical Leadership Through Fundamental Innovations in Microdisplays
A History of Technical Leadership Through Fundamental Innovations in Microdisplays • Developed and shipped first full-color Active Matrix OLED in 2001 • Introduced sequentially higher resolution displays: • VGA 640x480 SXGA120 1280x1024 • SVGA+ 852x600 WUXGA 1920x1200 • DSVGA 800x600 2Kx2K 2048x2048
Slide 13: Direct patterning is ahead today and will remain ahead
Direct Patterning Full-Color OLED Microdisplays • AR/VR requires high brightness that is satisfied by our dPd technology • Demonstrated WUXGA prototype with dPd technology – world’s first 15,000cd/m2 full-color OLED microdisplay • Patented, full-color dPd technology applicable to any OLED microdispl
Slide 14: OLED Provides a Superior AR/VR Experience
OLED Provides a Superior AR/VR Experience Magnification Highlights eMagin’s Superior Fill Factor OLED Cell Phone Display ~600 ppi eMagin OLED Microdisplay >2,500 ppi ©2023 eMagin Corporation 14
Slide 15: The Future of AR/VR Powered by dPd
The Future of AR/VR Powered by dPd Low Brightness AR* High Brightness AR* • Conventional OLED microdisplays use white OLED with color filters • Color filters absorb ~80% of the useful light; limited brightness and inefficient • Only eMagin has Direct Patterned microdisplay technology for direct emis
Slide 16: eMagin Technology Validation by Others
eMagin Technology Validation by Others • Demonstrations attracted consumer companies • High brightness displays • Prototype 2k x 2k HMD • First Company • Vetted the technology • Took a license to dPd technology • Next 4k design for VR • Unique backplane design • dPd brightness required • Technology
Slide 17: Deep Application Expertise and Broad IP Portfolio Create Significant Barriers to Entry
Deep Application Expertise and Broad IP Portfolio Create Significant Barriers to Entry Patents Know-how • Includes silicon backplane, OLED • 73 patents issued and 24 pending architecture, process and • Includes silicon backplane, OLED packaging architecture, process and packaging • Back-plane design
Slide 18: Well-established Military and Aviation Business
Well-established Military and Aviation Business Profile Customers • Predominately sole-source supplier • Differentiated performance and leader in brightness • Visible in bright sunlight • High contrast for detail • First mover in AR/VR for domestic and foreign military applications • Global market l
Slide 19: Commercial and Medical Markets Represent New Growth Opportunities and End-market Diversification
Commercial and Medical Markets Represent New Growth Opportunities and End-market Diversification Profile • Products provide high reliability in stressful environments • Visualize digital information and imagery • Successful in supplying to medical imaging devices, veterinary ultrasound viewers, ther
Slide 20: Display Market Share and Revenues
Display Market Share and Revenues Chart excludes wearable monitor HMDs for Industrial & Medical applications Source: DSCC 2022 AR/VR Market grows to $7.2B; OLED Microdisplays take the largest share ©2023 eMagin Corporation 20
Slide 21: Well Positioned to Capitalize on Large Commercial and Consumer Opportunities
Well Positioned to Capitalize on Large Commercial and Consumer Opportunities Profile Augmented reality for • Equipment repair • Factory automation • Service technicians Virtual reality for • Vehicle design • Training and simulation • Consumer gaming and entertainment eMagin is the only company
Slide 22: Our Manufacturing Footprint
Our Manufacturing Footprint Hopewell Junction, NY (Headquarters) • Houses own equipment for OLED Class 10 Clean Room Operations microdisplay fabrication, assembly operations, R&D and product development functions • eMagin is the only US-based manufacturer of OLED microdisplays • Approximately $39 mi
Slide 23: Experienced Management Team of Recognized Industry Experts
Experienced Management Team of Recognized Industry Experts More than 20 years experience in OLED technologyand manufacturing Andrew Sculley • • Led Kodak OLED Systems CEO • MS Physics Cornell, MBA Carnegie-Mellon Pioneering inventor of disruptive OLED microdisplay technology at eMagin and Kodak Dr.
Slide 24: A Pioneering Technology Leader with a Broad IP Portfolio
A Pioneering Technology Leader with a Broad IP Portfolio A technology leader with proprietary and patented direct patterning technology (dPdTM) for 1 ultrahigh brightness in color, and the sole U.S. manufacturer of OLED microdisplays 2 Uniquely positioned to capitalize on growing addressable markets
Slide 25: Appendices
Appendices ©2023 eMagin Corporation 25
Slide 26: Consolidated Statement of Operations
Consolidated Statement of Operations ©2023 eMagin Corporation 26
Slide 27: Consolidated Balance Sheet
Consolidated Balance Sheet ©2023 eMagin Corporation 27
Slide 28: Adjusted EBITDA
Adjusted EBITDA $ in thousands ©2023 eMagin Corporation 28