Corning Incorporated · NYSE:GLW
Corning — Investor Presentation (2016)
29 slides from Corning's investor presentation, 2016
Slide 1: Always Tough. Always Innovating.
Always Tough. Always Innovating. . Gorilla® Glass © 2016 Corning Incorporated 1 . .
Slide 2: What's Next?
Always Tough. Always Innovating. What’s Next? John Bayne Vice President and General Manager
Slide 3: Forward looking and cautionary statements
Forward looking and cautionary statements Certain statements in this presentation constitute “forward looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward looking statements are based on current expectations and involve certain risks and u
Slide 4: Corning is the world leader in specialty glass and ceramics
Corning is the world leader in specialty glass and ceramics For 165 years, we have been creating keystone components that enable life-changing innovations DISPLAY OPTICAL ENVIRONMENTAL LIFE SPECIALTY TECHNOLOGIES COMMUNICATIONS TECHNOLOGIES SCIENCES MATERIALS . Gorilla® Glass © 2016 Corning Incorpor
Slide 5: R&D has global reach with core technology residing in Corning, NY
R&D has global reach with core technology residing in Corning, NY Corning Scientific Center St. Petersburg, Russia SICCAS-Corning Joint Lab Shanghai, China Sullivan Park Research Center Corning Technology Center Corning, New York Corning Research lab Asan, Korea Shanghai, China Corning European Tech
Slide 6: Corning Specialty Materials manufactures where our customers are
Corning Specialty Materials manufactures where our customers are North America Europe Asia Big Flats, NY Bagneaux, France Fuzhou, China Fairport, NY Krailling, Germany Jiangmen, China Canton, NY Shizuoka, Japan Keene, NH Asan, Korea Wilmington, NC Tainan, Taiwan Harrodsburg, KY . Gorilla® Glass © 20
Slide 7: Corning Gorilla Glass uses two essential Corning processes
Corning® Gorilla® Glass uses two essential Corning processes = Proprietary fusion forming Innovative glass composition process: superior surface, scalability, reliability + optimized for chemical strengthening Gorilla Glass . Gorilla® Glass © 2016 Corning Incorporated 7 . .
Slide 8: Corning delivers life changing innovations
Corning delivers life changing innovations PROCESSES CERAMIC SUBSTRATES ACTIVE MATRIX LIQUID HEAT-RESISTANT PYREX® FOR MASS PRODUCING FIRST LOW-LOSS FOR AUTOMOTIVE CRYSTAL DISPLAY (LCD) CORNING® GORILLA® GLASS ENVELOPE GLASS THE TV BULB OPTICAL FIBER CATALYTIC CONVERTERS GLASS GLASS 1879 1879 1915 1
Slide 9: Corning started a continuous journey of glass innovation in 2007
Corning started a continuous journey of glass innovation in 2007 CORNING® GORILLA® GLASS 4 CORNING® GORILLA® GLASS 3 CORNING® GORILLA® GLASS 2 CORNING® GORILLA® GLASS 2007 2007 2012 2012 2013 2013 2014 2014 2016 . Gorilla® Glass © 2016 Corning Incorporated 9 . .
Slide 10: We started with...
We started with... CORNING® GORILLA® GLASS 2007 REPLACED EXISTING COVER Scratch Resistance MATERIALS WITH DAMAGE RESISTANT GLASS • Gorilla Glass significantly outperforms plastic covers Retained Strength • Gorilla Glass retained strength is nearly 3x at ~half the thickness of soda lime . Gorilla® Gl
Slide 11: We made it tougher...
We made it tougher... CORNING® GORILLA® GLASS 2 2012 ENABLED THINNER AND LIGHTER DAMAGE Higher performance RESISTANT DEVICES • Improve damage resistance by 25% at same thickness Thinner • Up to 20% reduced thickness while maintaining Gorilla Glass damage resistance . Gorilla® Glass © 2016 Corning In
Slide 12: We improved scratch…
We improved scratch… CORNING® GORILLA® GLASS 3 2013 Improves scratch resistance • 3x improvement in the force required to cause lateral cracking IMPROVED SCRATCH RESISTANCE Reduces scratch visibility • >40% reduction in the number of highly visible scratches Enables improved strength after scratch •
Slide 13: We addressed the key consumer pain point...
We addressed the key consumer pain point... CORNING® GORILLA® GLASS 4 2014 INTRODUCED Drop Performance DROP PERFORMANCE FROM 1 METER • Corning Gorilla Glass 4 survives up to 80% of the time when dropped from 1 meter onto a rough surface . Gorilla® Glass © 2016 Corning Incorporated 13 . .
Slide 14: Which is why Corning is the industry standard in cover glass
Which is why Corning is the industry standard in cover glass Source: World Development Indicators from Data World Bank and collection of height sources by country . Gorilla® Glass © 2016 Corning Incorporated 14 . .
Slide 15: Today there are 40 major OEMs using Corning Gorilla Glass
Today there are 40 major OEMs using Corning® Gorilla® Glass . Gorilla® Glass © 2016 Corning Incorporated 15 . .
Slide 16: Where does this leave us today?
Where does this leave us today? . Gorilla® Glass © 2016 Corning Incorporated 16 . .
Slide 17: While Gorilla Glass 4 focused on test drop from 1 meter, we decided to take it higher
While Corning® Gorilla® Glass 4 focused on test drop from 1 meter, we decided to take it higher . Gorilla® Glass © 2016 Corning Incorporated 17 . .
Slide 18: Global study of smartphone owners
Global study of smartphone owners Weighted Average Global Height 162 CM 85% of smartphone owners have dropped their phones at least once in the past year * Numbers above are averages of an 11 country study of global smartphone users using Toluna’s Quicksurvey panel. Countries included U.S., Brazil,
Slide 19: Global study of smartphone owners
Global study of smartphone owners Weighted Average Global Height 162 CM On average most drops occur while Walking (55%) Talking (45%) Texting (44%) * Numbers above are averages of an 11 country study of global smartphone users using Toluna’s Quicksurvey panel. Countries included U.S., Brazil, U.K.,
Slide 20: Global study of smartphone owners
Global study of smartphone owners Weighted Average Global Height 162 CM On average, nearly two thirds (63%) respondents said they have dropped their smartphones from a height between shoulder and waist * Numbers above are averages of an 11 country study of global smartphone users using Toluna’s Quic
Slide 21: Taking Tough To New Heights
Taking Tough To New Heights Corning® Gorilla® Glass 5 improves drop performance while preserving optical clarity, touch sensitivity and damage resistance . Gorilla® Glass © 2016 Corning Incorporated 21 . .
Slide 22: Always Tough. Always Innovating.
Always Tough. Always Innovating. . Gorilla® Glass © 2016 Corning Incorporated 22 . .
Slide 23: A highly damage-resistant cover glass for improved drop survivability
Corning® Gorilla® Glass 5 A highly damage-resistant cover glass for improved drop survivability in mobile devices Dr. Jaymin Amin Division Vice President
Slide 24: Step change in damage-resistant glass technology
Corning® Gorilla® Glass 5 Step change in damage-resistant glass technology with potential for significant drop improvement in mobile device cover glasses Up to 2x improvement in damage resistance over Corning ® Gorilla® Glass 4, and up to 4x improvement over alternate glasses • Damage resistance = a
Slide 25: What causes cover glass failure in a handheld device?
What causes cover glass failure in a handheld device? Theoretical strength of glass is very high • Glass strength is greatly reduced when a defect or flaw is introduced • During finishing or through sharp contact damage during a drop event Glass typically breaks from a surface flaw that is subjected
Slide 26: Our glass innovation approach starts with failure mode analysis
Our glass innovation approach always starts with failure mode analysis (FMA) of field returns FMA Results of 100s of Field Returns Primary field failures for cover glass are associated with sharp-contact damage from drop on rough surfaces • Typically accompanied with simultaneous bending that puts t
Slide 27: What is Corning Gorilla Glass 5?
What is Corning® Gorilla® Glass 5? New strengthened glass demonstrating significantly improved damage resistance over previous glasses • Outperforms all existing glasses for sharp contact damage and associated drop survivability on rough surfaces Validated at Corning • At glass level using newly dev
Slide 28: Gorilla Glass 5 will improve in-field reliability for cover glass
Corning® Gorilla® Glass 5 will improve in-field reliability for cover glass Up to 2x improvement in damage resistance over Corning ® Gorilla® Glass 4, and up to 4x improvement over alternate glasses1 Up to 1.8 x improvement over Gorilla Glass 4 in drop performance on rough surfaces2 Gorilla Glass 5
Slide 29: Always Tough. Always Innovating.
Always Tough. Always Innovating. . Gorilla® Glass © 2016 Corning Incorporated 29 . .