SCI Engineered Materials, Inc. · OTC:SCIA
SCI Engineered Materials — Shareholder Meeting (June 2018)
47 slides from SCI Engineered Materials's shareholder meeting presentation, Jun 7, 2018
Slide 1: 2018 Annual Meeting of Shareholders
SCI Engineered Materials, Inc. 2018 Annual Meeting of Shareholders June 7, 2018 ® The Science of Engineered Materials
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation and subsequent discussion contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe
Slide 3: Intellectual Property Overview
Intellectual Property Overview MARKET PATENTS RECENT DEVELOPMENTS Photonics Photonics ZnS Better Thermal Thin Film Solar Conductive Bonding (Zn,Mg) Ox, ZnOS (Provisional Application) IZO Transparent Electronics AZO as TCO in Display AZO/GZO ® The Science of Engineered Materials
Slide 4: (Zn,Mg)Ox and ZnOS for thin film solar
(Zinc Magnesium)Oxide (Zn,Mg)Ox), Zinc Oxide Sulfur (ZnOS) Transparent Conductive Oxide (TCO) Buffer layer Absorber layer Source: W. Witte et. al., Status of current research and record cell efficiencies, Vol. 26, No. 1, 2014 • Case Western Reserve University completed initial evaluation of (Zn,Mg)O
Slide 5: (Zn,Mg)Ox and ZnOS bandgap advantage
(Zinc Magnesium)Oxide (Zn,Mg)Ox), Zinc Oxide Sulfur (ZnOS) • Larger bandgap 3.5eV for (Zn,Mg)Ox vs. 2.5eV for Cadmium Sulfide (CdS) → Wider window ® The Science of Engineered Materials
Slide 6: AZO as TCO in Transparent Electronics
AZO as TCO in Transparent Electronics TCO @ USER Special Display Technologies Co. Illustration of Liquid Crystal Display Active Matrix Patent Publication Number: US 2016/0041418 A1 Provides an alternative to liquid crystal and light emitting display which includes at least one Transparent Conductive
Slide 7: AZO as TCO in Transparent Electronics
AZO as TCO in Transparent Electronics 1.6 1.4 ITO TN 1.2 AZO1 TN AZO2 TN 1.0 Det. Volt. (V) 0.8 0.6 0.4 0.2 0.0 -0.2 0 1 2 3 4 5 6 Voltage (V) Transmittance vs. Voltage curve(1) Bright and dark state(1) • Sponsored research at Kent State University confirmed AZO as TCO in Liquid Crystal Display. • I
Slide 8: AZO and GZO for Roll-to-Roll
Aluminum Zinc Oxide (AZO) and Gallium Zinc Oxide (GZO) for Roll-to-Roll Source: www.powerelectronictips.com • Potentially less expensive alternative to Indium Tin Oxide (ITO) on Polyethylene terephthalate (PET). ® The Science of Engineered Materials
Slide 9: AZO and GZO for Roll-to-Roll
Aluminum Zinc Oxide (AZO) and Gallium Zinc Oxide (GZO) for Roll-to-Roll Note: Data reported by Geomatec (Japan) • Reported better properties than ITO on PET. • Initial tests being conducted with customers. ® The Science of Engineered Materials
Slide 10: Research & Development (R&D)
Research & Development (R&D) SCI’s ongoing R&D program is focused on producing innovative, customized solutions to solve our customers’ challenges and accelerating time-to- market for those products. ® The Science of Engineered Materials
Slide 11: Financial Review
Financial Review ® The Science of Engineered Materials
Slide 12: Revenue
Revenue $6,801,365 $5,465,599 $5,250,000 $3,500,000 $1,750,000 $0 2016 2017 • 2017 revenue increased 24% versus 2016. • Order backlog was $1.9 million at 12/31/17. ® The Science of Engineered Materials
Slide 13: Gross Profit and Operating Expenses
Gross Profit and Operating Expenses Gross Profit Operating Expenses $1,800,000 $2,000,000 $1,577,551 $1,745,361 $1,528,430 $1,350,000 $1,500,000 $1,084,401 $900,000 $1,000,000 $450,000 $500,000 $0 $0 2016 2017 2016 2017 • Operating expenses decreased • Gross profit up 45% in 2017, principally due to
Slide 14: EBITDA
EBITDA (1) $600,000 $519,197 $400,000 $200,000 $0 -$200,000 $(205,630) 2016 2017 • EBITDA increased more than $724,000 in 2017 to $519,197. (1) Earnings before interest, taxes, depreciation and amortization ® The Science of Engineered Materials
Slide 15: Net Income (Loss) Applicable to Common Shares
Net Income (Loss) Applicable to Common Shares $0 $(18,601) -$200,000 -$400,000 -$600,000 -$800,000 $(730,206) 2016 2017 • 2017 earnings per share were breakeven versus $(0.18) loss in 2016. ® The Science of Engineered Materials
Slide 16: Financial Results: First Quarter 2018 vs. 2017
Financial Results: First Quarter 2018 vs. 2017 Revenue $1,846,858 35% Gross Profit $ 462,012 37% Operating Expenses $ 373,799 2% EBITDA $ 206,624 136% Income applicable to common shares $ 0.02 vs. $( 0.01) ® The Science of Engineered Materials
Slide 17: Virtual Tour
Virtual Tour ® The Science of Engineered Materials
Slide 18: Virtual Tour of Manufacturing Operations
Virtual Tour of Manufacturing Operations • Powder Production • Powder Consolidation • Firing • Ceramic Grinding • Metal Machining • Bonding • Quality Control & Characterization Equipment • Development ® The Science of Engineered Materials
Slide 19: Powder Production
Powder Production ® The Science of Engineered Materials
Slide 20: Powder Production: Spray Dryer
Powder Production: Spray Dryer ® The Science of Engineered Materials
Slide 21: Powder Consolidation
Powder Consolidation ® The Science of Engineered Materials
Slide 22: Powder Consolidation: Auto-Loading Spray Dryer
Powder Consolidation: Auto-Loading Spray Dryer ® The Science of Engineered Materials
Slide 23: Firing
Firing ® The Science of Engineered Materials
Slide 24: Firing: Mid-Size Electric Kiln
Firing: Mid-Size Electric Kiln ® The Science of Engineered Materials
Slide 25: Firing: Large Electric Kiln
Firing: Large Electric Kiln ® The Science of Engineered Materials
Slide 26: Firing: Hot Press #5
Firing: Hot Press #5 ® The Science of Engineered Materials
Slide 27: Ceramic Grinding
Ceramic Grinding ® The Science of Engineered Materials
Slide 28: Ceramic Grinding: Large Vertical Grinder
Ceramic Grinding: Large Vertical Grinder ® The Science of Engineered Materials
Slide 29: Ceramic Grinding: CNC Cylinder Grinders
Ceramic Grinding: Computer Numerical Code (CNC) Cylinder Grinders ® The Science of Engineered Materials
Slide 30: Ceramic Grinding: CNC Mill - End Grind
Ceramic Grinding: CNC Mill - End Grind ® The Science of Engineered Materials
Slide 31: Metal Machining
Metal Machining ® The Science of Engineered Materials
Slide 32: Metal Machining: Metal Lathe
Metal Machining: Metal Lathe ® The Science of Engineered Materials
Slide 33: Metal Machining: Large CNC Mill
Metal Machining: Large CNC Mill Large CNC Mill ® The Science of Engineered Materials
Slide 34: Metal Machining: FANUC EDM
Metal Machining: FANUC Electrical Discharge Machining (EDM) Fanuc EDM ® The Science of Engineered Materials
Slide 35: Metal Machining: Large Submerged EDM
Metal Machining: Large Submerged EDM ® The Science of Engineered Materials
Slide 36: Bonding
Bonding ® The Science of Engineered Materials
Slide 37: Bonding: Indium Bonding Table
Bonding: Indium Bonding Table ® The Science of Engineered Materials
Slide 38: Bonding: Large Bonding Table
Bonding: Large Bonding Table ® The Science of Engineered Materials
Slide 39: Quality Control and Characterization Equipment
Quality Control and Characterization Equipment ® The Science of Engineered Materials
Slide 40: Coordinate Measuring Machine
Coordinate Measuring Machine ® The Science of Engineered Materials
Slide 41: Characterization Equipment
Characterization Equipment ® The Science of Engineered Materials
Slide 42: Development
Development
Slide 43: Development Coater
Development Coater ® The Science of Engineered Materials
Slide 44: Research Coater
Research Coater ® The Science of Engineered Materials
Slide 45: Thank you for joining us!
Thank you of joining us! ® The Science of Engineered Materials
Slide 46: Lab Spray Dryers
2 Lab Spray Dryers ® The Science of Engineered Materials
Slide 47: Small Elevator Kilns
Small Elevator Kilns ® The Science of Engineered Materials
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