Universal Display Corp at Citi TMT Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Atif Malik - Citi - Analyst : I'll kick it off with, my questions first. If you have a question, you can raise your hand any time and we'll, do more Q&A. Brian, just as a starting point, kind of state of the union on the LED market. When you entered this year versus where we are right now, there have been tariffs and pull forwards in some of the consumer end markets. So just kind of walk us through how this year has played out so far and then the state of the OLED market.

Question: Atif Malik - Citi - Analyst : Great. When we talk to [private dealers] and equipment makers, they have started to see an improvement in the spending for display. And so the question is on Gen 8.6 OLED fabs. Are there activities going on? When do you expect what you're seeing in the market will translate to revenue opportunities for you to see?

Question: Atif Malik - Citi - Analyst : Great. Let's start with the mobility market. It is the most kind of traded in terms of OLED adoption, but there's some exciting form factors like foldable phones that are being talked about next year. So when we look at the mobility market and the foldable phones, first of all, we would be curious where you think is the penetration rate for OLEDs in the mobility market. And then for something like a foldable phone with increase in area, how big of a driver that could be to add incremental demand?

Question: Atif Malik - Citi - Analyst : All right. I waited to a question before to talk about blue. So let's talk about blue. I mean, I think you guys shared some excitement earlier this year. You're starting to see more activity. There was announcement by LG. And -- so first of all, for the audience, I think it will be important to know why does blue matter? Why do we need phosphorescent blue in our phones? Where will it get the consumers? And then what's the latest progress on it?

Question: Atif Malik - Citi - Analyst : Brian, just on the point that one layer is fluorescent and one is phosphorescent, is that -- is cost a reason for it? Or is it performance? Or is it manufacturing flow? Or what is the reason why they're using one layer, not the other? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 5:30PM, OLED.OQ - Universal Display Corp at Citi TMT Conference

Question: Atif Malik - Citi - Analyst : All right. So it moved from lab to a pilot fab. And so what's the next step in terms of kind of volume adoption when we read about the next-generation iPhone, whether it's thinner, it's going to have lower battery life? So you definitely need tools like phosphorescent to extend the battery life if the form factors will become thinner. So what's the next kind of milestone that you guys are kind of watching for?

Question: Atif Malik - Citi - Analyst : All right. And I missed out the SID Display conference this year. Was there any update by any other customers like Samsung or others on blue?

Question: Atif Malik - Citi - Analyst : Right. So when it gets volume adopted, can you walk us through the impact it could have on your content per phone or your overall dollar content opportunity? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 5:30PM, OLED.OQ - Universal Display Corp at Citi TMT Conference

Question: Atif Malik - Citi - Analyst : All right. And is it being evaluated across all your ABCD customers? Or is it one or two at this point?

Question: Atif Malik - Citi - Analyst : All right. And then on the licensing and royalty side, will this be incremental to the existing agreements that you have with these major customers?

Question: Atif Malik - Citi - Analyst : All right. Let's switch to the auto market. It may not match the scale of smartphones and TVs, but OLED adoption in autos is gaining momentum. How do you view the long-term opportunity and adoption in that market?

Question: Atif Malik - Citi - Analyst : Okay. And then on the whole geopolitical tensions, can you talk about you and your partner, PPG, how are you managing the supply chain? You have manufacturing in the US and Ireland. What's the current production split and just kind of overall impact to the margin structure?

Question: Atif Malik - Citi - Analyst : Okay. Let me pause here and see if there are any questions in the audience. Can you [hear] the mic up there? Unidentified Participant On the LG phone or implementation, how much cost was added for them to have the dual phosphorescent and fluorescent elements in their device?

Question: Atif Malik - Citi - Analyst : Brian, on China, can you talk about the risk from domestic material suppliers in China? And how do you maintain your pricing power?

Question: Atif Malik - Citi - Analyst : Okay. And then beyond blue and auto being a big opportunity, are there lesson known or emerging OLED applications that are exciting for you guys?

Question: Atif Malik - Citi - Analyst : Okay. And then on the model side, if you can walk us through the gross margin and what are the normalized gross margin for the company and the operating margins? And how do you balance kind of the growth with the spending?

Question: Atif Malik - Citi - Analyst : Great. And then the capital allocation front, UDC has historically made target moves acquiring OLED-related patent portfolios, even a contract research organization. Has your appetite for M&A changed?

Question: Atif Malik - Citi - Analyst : Okay. And then dividend remains the primary mode of cash return to shareholders? Or you guys did some share buyback this year, too? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 5:30PM, OLED.OQ - Universal Display Corp at Citi TMT Conference

Question: Atif Malik - Citi - Analyst : And you didn't talk about the Vapor phase JV that you have. Any update on that side?

Question: Atif Malik - Citi - Analyst : Great. We're almost out of time. Brian, thank you for coming to the Citi Conference.