Innovations in OLEDs for Consumer

Electronics (Technical Insights)

Increasing Consumer Electronics Needs

Propels the Adoption of OLEDs

June 2013

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Content

Section Slide Number

Executive Summary 3

Industry Overview 10

Year of Impact 22

Market Potential 25

Global Footprint 30

IP Activity Assessment of Patents 33

Funding 38

Breadth of Industries 42

Impact on Megatrend 45

Potential Points of Convergence 47

Size of the Innovation Ecosystem 50

Conclusion 54

The Frost & Sullivan Story 57

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Key Findings

Wide-scale adoption in TVs expected in 2014

The technology has made inroads into high-volume consumer applications market

with the release of several high-end smartphones using OLED displays..

High-growth, multi-billion market

The OLED market is expected to continue the growth trend in the upcoming years

driven by increasing smartphone sales and demand from new markets.

Asia dominates OLED displays market

Asian companies such as Samsung and LG dominate the market in terms of OLED

production and process innovations. Companies from Asia are market leaders in terms

of investments in manufacturing capacity. The innovations in Europe and US are

focused on material and device design advancements.

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Key Findings (continued)

Fast pace of innovations

The patent landscape is dominated by Samsung, followed by LG, Eastman Kodak,

Cambridge Display Technology and Universal Display Corporation. Building a strong

IP portfolio and with patents related to key OLED processes and materials is one of

the strategies companies use to remain competitive.

Strong support from local governments

Government funding and private investors play important role in the development and

commercialization of OLED technology. Current funding activities are mostly focused

on developments in the area of materials and processes.

Applicable to broad range of industries

OLED technology has a wide range of implementation at diverse sectors across the

consumer electronics market. Small-sized displays has achieved considerable

adoption in smartphones sector. The introduction of large-sized OLEDs has enabled

the industry to tackle opportunities in sectors such as televisions, tablets, laptops and

digital signage.

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Key Findings (continued)

Next-generation Smart Products

OLED technology is perceived to have a strong impact on such concepts of the future.

New functionalities for consumer gadgets

The demand for functionality, efficiency along with mobility of consumer products

could lead to a convergence of technologies from various industry segments.

Collaborations drive technology advancements

OLED technology has attracted attention from a variety of market participants,

including research institutes, technology providers, equipment and material providers

and original equipment manufacturers.

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Technology Snapshot

Current Adoption Levels

0

1

2 3

4

5

4.5

Technology Maturity

0

1

2 3

4

5

4.5 • OLED technology is in the emerging stage with producers

• OLED displays are dominant mainly in the -------------------------------segments, with producers of ----------------

--------------being first to adopt it for high volume applications. The ongoing research is expected to solve

technological ------------------------------------------------------------to penetrate the large screen sector such as -------

------------------------------ .

Green

Technology

Energy

Efficient

New Form

Factors

High

Quality

Image

• OLEDs are not only lighter and thinner than LCDs, but can be

also made flexible

• OLEDs are biodegradable and require significantly less

energy to operate compared to LCDs

• OLEDs are self-emissive, which means they don’t need a

backlight and use less energy to operate

• OLEDs offer higher resolution, richer color gamut , incresed

contrast and wider viewing angle than standard displays

• Organic light emitting diode (OLED) technology

is increasingly --------------------------------------------

----------------------------------------------------------------

----------------------------------------------------------------

---

• The emission layer in OLEDs is a thin-film layer

of organic compound sandwiched between a

metallic cathode and a transparent anode.

• OLED display sector is --------------------------------

----------------------------------------------------------------

----------------------------------------------------------------

----------------------------------------------------------------

-----

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Technology Capability (continued)

PMOLED AMOLED

Description

AMOLED display incorporates array of

OLED pixels sandwiched between the

anode and cathode

PMOLEDs use thin-film transistor

backplane placed over the anode

Advantages Lower cost, as the simple structure of

AMOLED makes it easy to fabricate

Suitable for high resolution, large-sized

displays.

Disadvantages

Due to inherent disadvantages of small

size and low resolution, the technology is

being developed mainly for lighting

market, and its use in displays is limited to

small screen segment.

Lack of scalable manufacturing processes

leads to high products prices

Appliacations Media players, mobile phone sub-displays,

digital cameras

Smartphone main displays, digital camers,

televisions, tablets

For larger

applications, ----------

---------------------------

---------------------------

---------------------------

---------------------------

Two main types of OLEDs available in the market are passive matrix OLED (PMOLED) and active matrix OLED

(AMOLED). The advantages of each --------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------------------------------------

-----------------------------

Favorable--------------

---------------------------

---------------------------

---------------------------

---------------------------

---------------------------

---------------------------

-

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Key Industry Drivers

Short Term

(1-3 Years)

Performance Advantages

Medium Term

(4-5 years)

Long Term

(>6 years)

Large Area OLEDs Growth of Mobile Electronics New Product

Opportunities

The market for OLED TVs is emerging, but high prices and smaller display sizes are key discouraging factors for customers.

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OLED offers many performance benefits over ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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The increasing demand for mobile electronics is expected to ------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------------------------

Ongoing advancements in OLED technology is expected to lead ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------.

Impact

Low Medium

High

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Key Technology Issues--Research Focus Areas for

Technology Advancement

Lowering production costs

requires ------------------------------

------------------------------------------

------------------------------------------

------------------------------------------

------------------------------------------

------------------------------------------

------------------------------------------

--------------------------------------

• -------------------

• -----------------

• ------------------------

• --------------------

• ------------------------

• ---------------------------

• ----------------------------------

Improvements in manufacturing

processes are expected to encourage

vendors to dedicate more production ---

-----------------------------------------------------

-----------------------------------------------------

-----------------------------------------------------

-----------------------------------------------------

-----------------------------------------------------

-----------------------------------------------------

-------------------------------------------------

Companies Impact Initiatives/Trends

Manufacturing

Low High

Impact

OLEDs have limited lifetime

and are highly ----------------------

------------------------------------------

------------------------------------------

------------------------------------------

------------------------------------------

------------------------------------------

------------------------------------------

------------------------------------------

---------------------------------

• ----------------

• ----------------

• ------------------------------

The importance of the aging issue is

different for particular -------------------

------------------------------------------------

------------------------------------------------

------------------------------------------------

------------------------------------------------

------------------------------------------------

----

Companies Impact Initiatives/Trends

Durability

Low High

Impact

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Year of Impact--Key Application Sectors

Year of Impact – 2012 -------------------------------------------------------------------------------------------

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------------

-------------------------

2010 2020 2012 2014 2016 2018

Year of Impact – 2014 OLEDs have relatively small share --------------------------------------------

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-----

-------------------------

Year of Impact – 2014 Sony was the first producer to introduce commercial OLED TV in

2007. However, due to ------------------------------------------------------------

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OLED TV

Year of Impact – 2014 ------------------, which gave a boost to LCD market, are still untapped

territory for OLEDs in terms of market share---------------------------------

-------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------

-----------------------

Smartphones provided an early market for OLED displays, --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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Impact of Drivers By Region

Drivers/Regions North

America Europe Asia

Rest of the

World

Government Support ---------- ---- ---- -----

-------------------- Base -------- --------- ------ -----

Research & Development Base -

-------------------- Local Markets 9 7 7 5

Funding Opportunities -------- ---------- -------------- -----------

9

8

7

6

5

4

3

2

1

GRID SCORE – Impact over 5 Years

High

Medium

Low

Key Takeaway

• Taiwan, -------------------------------------------leaders, while China is the country with the ----------------------

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• In Europe and ------------------------------------------------------------------------------------------------------------------

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Global Trends

NA: ----------------------------------------------------------------------------------------------------------------------------------------------------------

---------

Europe: ------------------------------------------------------------------------------------------------------------------------------------

Asia: --------------------------------------------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------------------------------------

-

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OLEDs in Consumer Electronics--Market Revenue

Estimates

Other 73%

OLED Market: Percent of Revenues by Geographical Regions (Global), 2012 and 2018

OLED Display Market: Percent of Revenues by Applications(Global), 2012 and 2018

Market Potential – Regions

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---

Market Potential – Application Segments

Mobile phones remain the major market for OLED displays

responsible for almost --------------------------------------------------

---------------------------------------------------------------------------------

------------------------------------------

While OLED TV shipments are expected to rapidly grow in

the upcoming ------------- years, the overall penetration of

OLEDs in -------------------------market is not expected to

exceed ----------------------------------------------------------------------

---------------------------------------------------------------------------------

---------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Source: Market Participants and Frost & Sullivan Analysis

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

2012 2018 Mobile TV Tablet/PC Other

0%

20%

40%

60%

80%

100%

2012 2018

North America Western Europe Asia-Pacific Rest of World

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Key Conclusions

OLED is regarded as a display technology of the future for consumer electronics and has received considerable attention ---------------

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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------------ -----------------

The Way Forward

for OLEDs in

Consumer

Electronics

----------------------------

Funding and Investment

Activities In OLEDs

Market Expected

to Grow

------------------------

• -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.

• The trend has lead to improved economics of OLED displays ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

• In 2013 OLED -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

• -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

• --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

• Samsung, LG, Sony and other key players -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

• Government support ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. • The adoption rate of --------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------------------------

• -----------------sector is regarded as a significant opportunity for OLED producers. While the volumes in --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------