Coherent Corp. · NYSE:COHR
Coherent — II-VI — Merger or Acquisition (September 2013)
11 slides from Coherent's merger presentation, Sep 12, 2013
Slide 1: II-VI Acquisition of Semiconductor Laser Business
II-VI Acquisition of Semiconductor Laser Business Investor Presentation September 12, 2013 Exhibit 99.2
Slide 2: Forward Looking Statement Disclaimer
Forward Looking Statement Disclaimer This presentation contains forward-looking statements based on certain assumptions and contingencies that involve risks and uncertainties. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform A
Slide 3: Agenda
Agenda Review of Today’s Announcement Overview of the Semiconductor Laser Business acquired Strategic Rationale and Fit with II-VI Financial Impacts of the Transaction Question and Answer Session
Slide 4: Review of Today's Announcement
Review of Today’s Announcement We have completed the acquisition of the Switzerland-based Semiconductor Laser business of Oclaro announced earlier today. The transaction was valued at $115 million and, after deducting for retained accounts receivable and holdbacks, the closing consideration paid was
Slide 5: Semiconductor Laser Business products and markets
High power laser (780nm – 1060nm) VCSEL 980nm pump laser (terrestrial and submarine) Switzerland-base d Galliu m Arsenid e Semiconductor Laser Business Product family Products Market / application Select customers Material processing, industrial, medical, printing Computer mice, finger navigation, o
Slide 6: Innovation World-class facility in Zurich, Switzerland
Innovation World-class facility in Zurich, Switzerland Technology Leadership Business originated at IBM Zurich Continuous innovation in high power lasers and pump lasers Rich patent portfolio (over 150 owned and licensed patents) Over 70 engineers Total size 116,600 sq ft / 10,800 m (5 total floors,
Slide 7: Strategic Rationale and Fit with II-VI
Strengthens II-VI’s existing portfolio of engineered materials solutions. Broadens II-VI portfolio of differentiated components for high power laser systems. Establishes a semiconductor laser platform for II-VI. Opens up new, large and rapidly growing addressable markets for II-VI. Strategic Rationa
Slide 8: The Market Opportunity
$50 $46 $49 $51 $54 $57 $60 $63 $270 $330 $356 $389 $429 $468 $505 $228 $260 $276 $273 $283 $297 $316 The Market Opportunity CAGR = 9% CAGR = 9% CAGR = 8% CAGR = 4% CAGR = 4% CAGR = 7% CAGR = 5% CAGR = 43% Telecom pumps market (USD in millions) Lasers market by application (USD in millions) Source:
Slide 9: Transaction Terms
Purchase price Financing Amplifier and micro-optics option Transaction Terms $115 million valuation, consisting of: $92 million in cash at closing $15 million retained receivables $6 million held back by II-VI for 15 months $2 million held back by II-VI for potential working capital adjustments Amen
Slide 10: Earnings Leverage
Earnings Leverage Currently expected to be $0.08 to $0.12 dilutive to GAAP earnings per share in FY2014 Includes transaction expenses estimated at $4 million or $0.06 EPS Currently expected to be accretive beginning in FY2015 Financial Impact $111 $208 June 30, 2013 September 12, 2013 Credit facilit
Slide 11: Question and Answer Session
Question and Answer Session These comments and answers to certain questions contain forward looking statements which are based on current expectations. Actual results could differ materially. For information about factors that could cause the actual results to differ materially, please refer to the