eMagin — Investor Presentation (May 2021)
25 slides from eMagin's investor presentation, May 2021
Slide 1: Making AR/VR A Reality
Making AR/VR A Reality NYSE American: EMAN Investor Presentation – May 2021 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 future of computing & imaging
Vision: Enable the future of computing & imaging with OLED technology 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 at a Glance
eMagin at a Glance Headquarters: Hopewell Junction, NY Manufacturing: U.S. Domiciled Employees: 100+ The technology leader in OLED Displays Revenue: $29.4M in 2020 • 85% from Product Sales,15% Contracts • 56% U.S., 46% International • 30 countries served Market Cap: $174.2M* Ticker/Exchange: EMAN /
Slide 6: 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 and industrial presence Expand military and aviation market share Deepen penet
Slide 7: FY2020: Improving Performance, Setting a Foundation for Growth
FY2020: Improving Performance, Setting a Foundation for Growth Financial Trends • Continued strength in military display business, 10% year-over-year revenue increase • Product revenues totaled $25.0 million, representing a 2% increase from $24.6 million in 2019 • As of December 31, 2020, backlog of
Slide 8: 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 the only domestic manufacturer of OLED microdisplays and designated as a cornerstone of the U.S. manufacturing base • Received $5.5 million award under the Industrial Base Analysis and Sustai
Slide 9: Our OLED Technology Advantage: Lowest Power, Highest Brightness
Our OLED Technology Advantage: Lowest Power, Highest Brightness • Brightest OLED – monogreen over 28,000 cd/m2; full color 7,500 cd/m2 demonstrated, full color 10,000 cd/m2 targeted this year • Very high contrast – greater than 1,000,000:1 • Lower power consumption yields longer battery life • More
Slide 10: A History of Technical Leadership Through Fundamental Innovations in Microdisplays
A History of Technical Leadership Through Fundamental Innovations in Microdisplays • Commercial full-color SVGA+ Active Matrix OLED microdisplay • Full-color SXGA OLED microdisplay • High-brightness monochrome SXGA microdisplay (20k+ cd/m2) • High-brightness color SXGA OLED microdisplay (700+ cd/m2)
Slide 11: Direct Patterning: The Best Display Solution for AR/VR Applications
Direct Patterning: The Best Display Solution for AR/VR Applications • dPd® demonstrated on 2k x 2k display • dPd enhancements (<7,500 cd/m2 brightness on a full color WUXGA) • 4k x 4k microdisplay demonstrated at SID conference 11
Slide 12: OLED Provides a Superior AR/VR Experience
OLED Provides a Superior AR/VR Experience Magnification Highlights eMagin’s Superior Fill Factor Samsung Galaxy S5 OLED Cell Phone Display ~ 600 ppi eMagin OLED Microdisplay >2,500 ppi 12
Slide 13: 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 emi
Slide 14: Deep Application Expertise Backed by a Broad IP Portfolio
Deep Application Expertise Backed by a Broad IP Portfolio Patents Know-how • 48 patents issued and 36 pending • Includes Silicon backplane, OLED • Includes silicon backplane, OLED architecture, process and packaging architecture, process and packaging • Back-plane design • Key patents include ultra-
Slide 15: Secular and Cyclical Tailwinds
Well-established Military and Aviation Business Benefiting from Secular and Cyclical Tailwinds 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
Slide 16: Commercial and Medical Markets Represent New Growth Opportunities
Commercial and Medical Markets Represent New Growth Opportunities Profile • Products provide high reliability in stressful environments • Visualize digital information and imagery • Successful in supplying to medical imaging devices, veterinary ultrasound viewers, thermal cameras and hunting scopes
Slide 17: Why should display companies be interested in AR/VR
Source: DSCC 2021 Why should display companies be interested in AR/VR OLED Microdisplays Dominate 17
Slide 18: 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 19: Our Manufacturing Footprint: We are Made in the USA
Our Manufacturing Footprint: We are “Made in the USA” Hopewell Junction, NY (Headquarters) • Lease ~63,000 square feet of space Class 10 Clean Room Operations • Houses own equipment for OLED microdisplay fabrication, assembly operations, R&D and product development functions • eMagin is the only US-
Slide 20: 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 21: 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 22: Appendices
Appendices re ° AeMagin © 2020.eMagin Corporation Proprietary Information
Slide 23: Consolidated Statement of Operations
Consolidated Statement of Operations (in thousands, except share data) Three Months Ended March 31, 2021 2020 Revenues: Product $ 6,105 $ 5,634 Contract 668 1,097 Total revenues, net 6,773 6,731 Cost of revenues: Product 4,707 4,790 Contract 358 507 Total cost of revenues 5,065 5,297 Gross profit 1,
Slide 24: Consolidated Balance Sheet
Consolidated Balance Sheet (in thousands, except share data) March 31, December 31, 2021 2020 ASSETS Current assets: Cash and cash equivalents $ 10,705 $ 8,315 Restricted cash 1,671 2,111 Accounts receivable, net 4,423 5,314 Account receivable-due from government awards 97 1,013 Unbilled accounts re
Slide 25: Adjusted EBITDA
Adjusted EBITDA $ in thousands Three Months Ended March 31, 2021 2020 Net loss $ (7,378) $ (1,369) Non-cash compensation 13 43 Change in fair value of common stock warrant liability 7,208 20 Depreciation and intangibles amortization expense 733 480 Interest expense 210 17 Adjusted EBITDA $ 786 $ (80