Universal Display Corporation · NASDAQ:OLED
Universal Display — Investor Presentation (May 2023)
25 slides from Universal Display's investor presentation, May 2023
Slide 1: OLED Investor Presentation 2Q 2023
OLED Investor Presentation 2Q 2023 (updated: May 2023) © UNIVERSAL DISPLAY CORPORATION © UNIVERSAL 2023 DISPLAY ALL RIGHTS RESERVED 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: 38% Female, 62%
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: Our PHOLED Power Roadmap Supports Sustainability
Our PHOLED Power Roadmap Supports Sustainability 900 UDC is continuously inventing and developing next-generation 800 PHOLED materials with 700 increasing energy-efficiencies 600 for reduced power consumption POWER (mW) and enhanced sustainability 500 400 300 200 100 0 LCD RG(PHOLED) B(Fl) RGB(PHOLE
Slide 7: Phosphorescent OLED Carbon Savings
Phosphorescent OLED Carbon Savings Calculated assumptions: There are at least 1.8 billion active OLED smartphones using our PHOLED materials and technology in the world today and Average luminance at 600 nits with 50% Average use is 4 hours per day Power savings is 30% over LCD pixels on Power savin
Slide 8: 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 8
Slide 9: 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 10: OLED Display Market Potential
OLED Display Market Potential $60 Mobile TV IT/Wearables Other $56.0 $53.9 $50 $51.7 $49.0 $45.5 $42.4 Revenue ($ in Billions) $40 774M* $30 745M* 715M* 668M* 623M* $20 572M* $10 408M* $0 2022 2023 2024 2025 2026 2027 *Unit Numbers are for OLED mobile phones only 10 Source: Omdia OLED Display Market
Slide 11: OLED Panel Area Demand
OLED Panel Area Demand Mobile TV IT/Wearables Other 26.3 25 23.4 20.8 (Millions of Square Meters) 20 18.4 15.7 15 11.6M* 14.3 10.5M* 9.5M* 10 8.6M* 7.5M* 7.5M* 3.0M* 5 0 2022 2023 2024 2025 2026 2027 *Unit Numbers are for OLED TVs only 11 Source: Omdia OLED Display Market Tracker – Q4 2022 (April 20
Slide 12: Strong OLED Display Market Drivers
Strong OLED Display Market Drivers • RED Phosphorescence • Improved image • Fewer manufacturing More Cost Effective Superior Aesthetics reduces power process steps Lower Power Usage quality consumption by 25% • Lower bill-of- • Thin and Light • Add GREEN: 45% materials • 180 degree viewing cumulativ
Slide 13: OLED Smartwatches & Smartphones
OLED Smartwatches & Smartphones Samsung Galaxy Watch5 Apple Watch Series 8 Garmin Huawei Motorola Forerunner Band 8 Moto 265 / 965 Watch 200 Oppo Find X6 vivo Y78+ Samsung Galaxy M54 iPhone 14 Pro Tecno Camon 20 Meizu 20 Pro Huawei Pocket S Honor Magic5 Motorola Edge 40 Google Pixel 7a Premier OnePl
Slide 14: More OLED Products
More OLED Products LG OLED B3 Evo TV BRAVIA XR A80K 4K HDR OLED TV Samsung S90C - OLED TV Nintendo PlayStation Switch VR2 (OLED model) Rokid Max AR Samsung Glasses 2025 Buick Electra E5: Curved 30-Inch 6K Galaxy OLED Display Book 3 Pro 14 Lenovo ThinkPad X13 Gen 4 (2023)
Slide 15: Form Factor: Flexible, Foldable, Rollable
Form Factor: Flexible, Foldable, Rollable Google Pixel Fold Tecno Phantom V Fold Xiaomi Mix Fold 2 Samsung Galaxy Z Fold4 and Galaxy Z Flip4 Oppo Find N2 Honor Magic Vs vivo X Fold2 Flip Asus ZenBook 17 Fold 15
Slide 16: 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 16
Slide 17: 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 18: 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 19: OLED Lighting Around the World Today
OLED Lighting Around the World Today 19
Slide 20: 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 21: 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 21
Slide 22: Strategic Display & Lighting Partnerships
Strategic Display & Lighting Partnerships SEEYA TECHNOLOGY 22
Slide 23: 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 24: Robust Capital Structure
Robust Capital Structure March 31, 2023 Cash, Cash Equivalents, Short- Term and Long-Term $845,429 * Investments Total Assets $1,535,712 Long-term Debt ------ A/P and Accrued Liab. $35,087 Deferred Revenue $55,262 Shareholders’ Equity $1,299,465 Total Shares Outstanding 47,567,007 *Weighted average
Slide 25: Company Summary
Company Summary Global OLED Materials & Strong Financial Technology Leader Performance • Lighting up the OLED Revolution • $845M Cash, No Debt* • License & Sell Proprietary • $17.77 in Cash/Share* Phosphorescent OLED Technology • High Margin Business and Materials to Display & Solid- • Lean Operatin