SlideShare a Scribd company logo
Authors: 
Mr. Stuart Rock 
Mr. Andrew Bachman 
Mr. Michael Thomas 
(12/13/2012)
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:
Willow Glass 
Ultra Thin Flexible Glass 
High Surface Quality 
Roll-to-roll Processing 
Primary use: 
mobile device displays 
Many Applications
Opportunity & Key Challenges
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
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
Linked Projects & Strategy:
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
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
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
Questions? 
Markets? 
Challenges? 
Financials? 
Comments?
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

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Willow glass technology strategy presentation

  • 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