Universal Display Corporation · NASDAQ:OLED
Universal Display — Investor Presentation (November 2022)
23 slides from Universal Display's investor presentation, November 2022
Slide 1: OLED Investor Presentation 4Q 2022
OLED Investor Presentation 4Q 2022 (updated: November 2022) © UNIVERSAL DISPLAY CORPORATION 2022 ALL RIGHTS RESERVED © UNIVERSAL DISPLAY CORPORATION 2020 ALL RIGHTS RESERVED
Slide 2: Forward-Looking Statements
All statements in this document that are not historical, such as those relating to the projected adoption, development and advancement of the Company’s technologies, and the Company’s expected results and future declaration of dividends, as well as the growth of the OLED market and the Company’s opp
Slide 3: Universal Display Corporation
Universal Display Corporation Highly Critical OLED Energy- Innovator & Efficient Enabler PHOLED Fabless OLED 5,500+ Materials Global Supplier & IP Patents* Licensor * Pending and Issued Patents Worldwide as of February 4, 2022 3
Slide 4: UDC Highlights
UDC’s Energy-Efficient Phosphorescent Materials: 100% UniversalPHOLED® emitters save energy and do not use conflict minerals Diverse & Inclusive Workplace: Geographically (from over 25 countries), culturally and gender-wise (22% female and 78% male*) diverse Board of Directors: 1/3 Female, 2/3 Male
Slide 5: What is an OLED?
What is an OLED? ➢ An Organic Light Emitting Diode is a series of organic thin films between two conductors ➢ When electrical current is applied, bright light is emitted ➢ OLEDs can be used for displays and lighting ➢ OLEDs are not just thin and efficient - they can also be made flexible and transpa
Slide 6: Business Model
Business Model OLED Innovation & Revenues Enabler Invention License Patent Device & & Licensing Architecture Royalty IP Fees PHOLED Composition Material Emitters & of Matter IP Sales Hosts 6
Slide 7: OLED Display Market Potential
OLED Display Market Potential $60 Mobile TV IT/Wearables Other $55.6 $52.6 $50 $48.6 $45.0 $43.3 Revenue ($ in Billions) $40 747M* $30.6 707M* $30 646M* 618M* 588M* $20 457M* $10 408M* $0 2020 2021 2022 2023 2024 2025 *Unit Numbers are for OLED mobile phones only 7 Source: Omdia OLED Display Market
Slide 8: OLED Panel Area Demand
OLED Panel Area Demand 25 Mobile TV IT/Wearables Other 23.5 20.6 20 12.5M* 18.0 (Millions of Square Meters) 10.9M* 16.4 9.9M* 15 14.4 9.3M* 7.4M* 10 9.5 4.5M* 3.0M* 5 0 2020 2021 2022 2023 2024 2025 *Unit Numbers are for OLED TVs only 8 Source: Omdia OLED Display Market Tracker – Q2 2022 (Oct 2022)
Slide 9: Strong OLED Display Market Drivers
Strong OLED Display Market Drivers • RED Phosphorescence • Improved image • Fewer manufacturing More Cost Effective Superior Aesthetics reduces power Lower Power Usage quality process steps consumption by 25% • Lower bill-of- • Thin and Light • Add GREEN: 45% materials • 180 degree viewing cumulativ
Slide 10: OLED Smartwatches & Smartphones
OLED Smartwatches & Smartphones Samsung Galaxy Watch5 Apple Watch Series 8 Garmin Xiaomi Google Venu sq 2 Watch S1 Pixel Pro Watch Oppo Reno8 Z vivo V25 Galaxy A73 5G iPhone 14 Pro Motorola Edge 30 Xiaomi Redmi10 Honor X40 Google Pixel 7 Infinix Zero Ultra ZTE Blade V40s Huawei Pocket S OnePlus 10T
Slide 11: More OLED Products
More OLED Products LG C2 OLED Evo TV BRAVIA XR A80K 4K HDR OLED TV Samsung Class S95B OLED 4K Smart TV Nintendo Switch (OLED model) 2022 Mercedes EQS: 56” OLED Hyperscreen - 12.3” gauge cluster, 17.7” central touchscreen, and 12.3” passenger touchscreen HP Envy x360 13 (2022) Lenovo ThinkPad X1 Fold
Slide 12: Form Factor: Flexible, Foldable, Rollable
Form Factor: Flexible, Foldable, Rollable Samsung Galaxy Z Fold4 and Galaxy Z Flip4 Xiaomi Mix Fold 2 vivo X Fold+ Asus ZenBook 17 Fold 12
Slide 13: LCD vs. OLED
LCD vs. OLED TFT+OLED+Refiner Diffuser Polarized Polarized Sheet Film Film Cell TFT Backlight Unit Polarized Film Color Prism Filter ✓ Lower BOM (bill of materials) ✓ Better Performance, More Efficient ✓ Thinner and Flexible Form Factor ✓ Vivid Colors and Superior Contrast Ratio Image source: LG 13
Slide 14: Groundbreaking Organic Vapor Jet Printing (OVJP)
Groundbreaking Organic Vapor Jet Printing (OVJP) • Mask-less, Solvent-less (dry) Printing OLED technology • High material utilization and fast TAKT time • Scalable to Gen 10.5+ • Enables advanced OLED performance with process control • Multi-color deposition in one chamber • Small molecule OLED mate
Slide 15: Strong OLED Lighting Market Drivers
Strong OLED Lighting Market Drivers Image source: LG Display • Low drive voltage • Wide range of CCT, • Thin and lightweight Highly desirable color quality • Low operating high CRI possible • Transparent environmentally friendly Novel form factor & Low-Cost Potential temperatures, • Color tunable •
Slide 16: OLED Lighting Around the World Today
OLED Lighting Around the World Today 16
Slide 17: Strong, Broad and Deep Patent Portfolio
Strong, Broad and Deep Patent Portfolio We develop and license enabling RGB technologies that are at the heart of Phosphorescent consumer OLED products worldwide, from OLEDs AR/VR, smartwatches, smartphones, IT, AI Machine (PHOLEDs) automotive and TVs to lighting products. Learning Device Architec
Slide 18: Patents are Universal
Patents are Universal China Europe (I-350 / P-289) (I- 893 / P-126) United States South Korea Japan (I-1418 / P-551) (I-524 / P-328) (I-831 / P-87) Taiwan (I-356 / P-13) Over 5,500 patents and pending applications* *as of February 4, 2022 18
Slide 19: Strategic Display & Lighting Partnerships
Strategic Display & Lighting Partnerships SEEYA TECHNOLOGY 19
Slide 20: Historical Financial Performance
Historical Financial Performance Revenue Income ($ in millions) $600.0 $240 $553.5 $500.0 $200 $428.1(2) $428.9 $184.2 $400.0 $160 $156.1(2) $335.6 $326.3(2) $405.2 $130.5(2) $138.3 $133.4 $300.0 $120 $115.4(1) $200.0 $247.4 $80 $100.0 $58.8 $40 $- 2017 2018 2019 2020 2021 ASC 605 Adjustment $- $78.
Slide 21: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures The following table details our reconciliation of non-GAAP measures to the most directly comparable GAAP measures: Year Ended December 31, (in thousands, except per share data) 2017 (Unaudited) Net income reconciliation Net income $103,885.00 Net income per share:
Slide 22: Robust Capital Structure
Robust Capital Structure September 30, 2022 Cash, Cash Equivalents, Short- Term and Long-Term $862,672 * Investments Total Assets $1,530,323 Long-term Debt ------ A/P and Accrued Liab. $63,332 Deferred Revenue $94,015 Shareholders’ Equity $1,211,825 Total Shares Outstanding 47,466,934 *Weighted aver
Slide 23: Company Summary
Company Summary Global OLED Materials & Strong Financial Technology Leader Performance • Lighting up the OLED Revolution • $844M Cash, no debt* • License & Sell Proprietary • $17.77 in cash/share* Phosphorescent OLED Technology • High Margin Business and Materials to Display & Solid- • Lean Operatin
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