Universal Display Corporation · NASDAQ:OLED
Universal Display — Investor Presentation (March 2023)
23 slides from Universal Display's investor presentation, March 2023
Slide 1: OLED Investor Presentation
OLED Investor Presentation 1Q 2023 (updated: March 2023) © UNIVERSAL DISPLAY CORPORATION 2023 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 28, 2023 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 more than 25 countries), culturally and gender-wise (22% female and 78% male*) diverse Board of Directors: 37% Female, 63%
Slide 5: UniversalPHOLED® = Energy Efficiency
UniversalPHOLED® = Energy Efficiency With energy efficiencies that are up to four times higher than conventional fluorescent OLED materials, UDC’s patented and award-winning phosphorescent OLED technology and materials are integral to enabling low power consumption in OLED displays and lighting. Pho
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: 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 8: OLED Display Market Potential
OLED Display Market Potential $60 Mobile TV IT/Wearables Other $56.0 $53.2 $50 $50.9 $46.7 $43.3 $43.3 Revenue ($ in Billions) $40 774M* 731M* $30 693M* 634M* 618M* 572M* $20 $10 408M* $0 2021 2022 2023 2024 2025 2026 *Unit Numbers are for OLED mobile phones only 8 Source: Omdia OLED Display Market
Slide 9: OLED Panel Area Demand
OLED Panel Area Demand Mobile TV IT/Wearables Other 26.2 25 22.2 20 19.8 (Millions of Square Meters) 16.7 13.0M* 15 14.4 14.6 10.7M* 9.7M* 10 8.5M* 7.4M* 7.7M* 3.0M* 5 0 2021 2022 2023 2024 2025 2026 *Unit Numbers are for OLED TVs only 9 Source: Omdia OLED Display Market Tracker – Q3 2022 (Jan 2023)
Slide 10: 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 11: OLED Smartwatches & Smartphones
OLED Smartwatches & Smartphones Samsung Galaxy Watch5 Apple Watch Series 8 Garmin Xiaomi Google Forerunner Watch S1 Pixel 265 / 965 Pro Watch Oppo Reno8 T vivo V27 Galaxy S23 Ultra iPhone 14 Pro Honor Magic5 Motorola ThinkPhone Google Pixel 7 Infinix Zero 20 ZTE nubia Z50 Huawei Pocket S OnePlus 11
Slide 12: More OLED Products
More OLED Products LG OLED B3 Evo TV BRAVIA XR A80K 4K HDR OLED TV Samsung S90C - OLED TV Nintendo Switch (OLED model) PlayStation VR2 Samsung Galaxy Book 3 Pro 2023 Mercedes EQS SUV 580: 56” OLED Hyperscreen - 12.3” gauge cluster, 17.7” central touchscreen, and 12.3” passenger touchscreen Lenovo Th
Slide 13: Form Factor: Flexible, Foldable, Rollable
Form Factor: Flexible, Foldable, Rollable Xiaomi Mix Fold 2 Samsung Galaxy Z Fold4 and Galaxy Z Flip4 Oppo Find N2 Honor Magic Vs vivo X Fold+ Flip Asus ZenBook 17 Fold 13
Slide 14: 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 14
Slide 15: 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 16: 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 17: OLED Lighting Around the World Today
OLED Lighting Around the World Today 17
Slide 18: 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 19: Patents are Universal
Patents are Universal China Europe (I-354 / P-366) (I- 890 / P-122) United States South Korea Japan (I-1472 / P-623) (I-590 / P-359) (I-808 / P-84) Taiwan (I-346 / P-9) More than 5,500 patents and pending applications* *as of February 28, 2023 19
Slide 20: Strategic Display & Lighting Partnerships
Strategic Display & Lighting Partnerships SEEYA TECHNOLOGY 20
Slide 21: Historical Financial Performance
Historical Financial Performance Revenue Income ($ in millions) $616.6 $600.0 $210.1 $553.5 $200 $500.0 $184.2 $428.1(1) $428.9 $160 $156.1(1) $400.0 $405.2 $326.3(1) $130.5(1) $133.4 $138.3 $300.0 $120 $247.4 $200.0 $80 $100.0 $58.8 $40 $- 2018 2019 2020 2021 2022 ASC 605 Adjustment $78.9 $22.9 $-
Slide 22: Robust Capital Structure
Robust Capital Structure December 31, 2022 Cash, Cash Equivalents, Short- Term and Long-Term $825,590 * Investments Total Assets $1,532,820 Long-term Debt ------ A/P and Accrued Liab. $60,521 Deferred Revenue $63,878 Shareholders’ Equity $1,275,369 Total Shares Outstanding 47,492,560 *Weighted avera
Slide 23: Company Summary
Company Summary Global OLED Materials & Strong Financial Technology Leader Performance • Lighting up the OLED Revolution • $826M Cash, no debt* • License & Sell Proprietary • $17.38 in cash/share* Phosphorescent OLED Technology • High Margin Business and Materials to Display & Solid- • Lean Operatin
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