Technology strategy project in conjunction with Corning involving their flexible glass substrate display technology - Willow Glass.

1. Authors:
Mr. Stuart Rock
Mr. Andrew Bachman
Mr. Michael Thomas
(12/13/2012)

2. Corning Inc.
Technology-based corporation
160 years in the glass industry
In 2011:
net sales: $7.89 billion
net income: $2.805 billion
Product Leadership
Commitment to display glass technology
“Corning’s 7 Values: Quality, Integrity, Performance, Leadership, Innovation, Independence, and The Individual. All the time, all around the world.”
–Wendell P .Weeks (Corning Chairman of the Board, President, & CEO)
10 Year Performance (Stock Price)
*in millions
2011 Statement of Cash Flows:

3. Willow Glass
Ultra Thin Flexible Glass
High Surface Quality
Roll-to-roll Processing
Primary use:
mobile device displays
Many Applications

4. Opportunity & Key Challenges

5. Technology Intelligence
Jill VanDewoestine
(Product Manager for Willow Glass)
With Willow since inception
Stages of Development
Initial R&D spending
Funding outside research
Develop products with Willow Glass
Opening production facilities
Product ecosystem
“The electronics industry has the ultimate goal of being able to print displays using roll-to-roll processing… That is the future for Willow Glass” –Jill VanDewoestine

6. Technology Strategy Overview
Build production level plant to test Willow
For safety, performance, scalability, efficiency
Form & strengthen partnerships
Dependence on Compliments
Full scale production plants
Expand to new markets
Develop new technologies
Increased durability &support
Fuse battery with display screen

7. Linked Projects & Strategy:

8. Financials
•Initial revenues are low
•Revenue increases with market share
•Revenue is delayed several years
•Market for flexible display glass
•Capture large portion
•Early-mover advantage
Assumptions:
–Smartphone glass market = 32 million sq. meters per year
–Market Share: 30%
–Cost of Capital: 18%
–Cost to Consumers: $40 per sqm

9. Financials
Annual Net Cash Flow
•Currently “Valley of Death”
•Profitably in 2014
•Sharp rise in profit from
2013-2015
•High profits after 2016
Net Present Value Analysis
•NPV: $110 Million
•Total Investment Cost
$45.6 Million
•Based on future cash flows
•5% discount rate
Project Key: Willow Glass
1. Basic (uncoated) rolls
2. ITO coating
3. Coated for printed displays
Annual Net Cash Flow
2014
2015
2016
2017
2018
2019
2020
2021
2013
2012
($20)
($40)
($60)
$20
$40
$60
$80
$100
(in millions)
Year
Net Cash Flow
Value to Cost

10. Conclusions
Willow Glass is Corning’s next big product
Requires substantial initial investment
Large potential for growth
Wait for the device technology to catch up
Capitalize on existing relationships
Positive publicity, expand into new markets
Create the next generation of displays

11. Questions?
Markets?
Challenges?
Financials?
Comments?

12. References
McEntegart, Jane. "Gorilla Glass Maker Corning Debuts Flexible Willow Glass." Tom's Hardware. Tablets and Spartphones, 4 June 2012. Web. 04 Dec. 2012. <http:// www.tomshardware.com/news/Gorilla-Glass-Corning-Flexible-Glass-Curved-Glass- Willow-Glass,15879.html>.
Speculations, Great. "Don't Weep Like A Willow: Bendable Glass Not Likely For IPhone5."Forbes. Forbes Magazine, 18 June 2012. Web. 06 Dec. 2012.
Garner, S., Merz, G., Tosch, J., Matusick, J., Li, X., Marshall, D., Chase, C., Steiner, J., Yepez, D., Switzer, J., Moschak, P., "Flexible glass substrates for roll-to-roll manufacturing,”
FlexTechFlexible Electronics and Displays Conference, Phoenix, February 7-10, 2011.
"ANALYST: Smartphone Sales Will Dwarf PC Sales This Year And Reach A Staggering 1.5 Billion Per Year By 2016." Business Insider. N.p., 29 Feb. 2012. Web. 14 Sept. 2012. http://articles.businessinsider.com/2012-02- 29/tech/31109577_1_smartphones-pc-sales-internet