Viavi Solutions Inc. · NASDAQ:VIAV
Viavi Solutions — JDS Uniphase — 16th Annual B. Riley Investor Conference 2015
18 slides from Viavi Solutions's conference presentation, May 13, 2015
Slide 1: 16th Annual B. Riley Investor Conference
Alan S. Lowe President CCOP, CEO-designate Lumentum 16th Annual B. Riley Investor Conference May 13, 2015
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains forward-looking statements under Section 27A of the Securities Act of 1934. Forward-looking statements are all statements we make other than those dealing specifically with historical matters. These forward-looking statements include, among other things, (i) in
Slide 3: Creating Two Industry Leading Companies
CREATING TWO INDUSTRY LEADING COMPANIES CCOP NE: #1 in field test in 2014 – #1 in telecom optical components in 2014 SE: Strong investments in high – Gaining share in datacom growth market – Growth in commercial lasers OSP: Leader in anti-counterfeiting FY14 Revenues: $794.1M FY14 Revenu
Slide 4: Lumentum Is a Pure Play Optical Investment Opportunity
LUMENTUM IS A PURE PLAY OPTICAL INVESTMENT OPPORTUNITY COMMERCIAL TELECOM DATACOM 3D SENSING LASERS Optical components Broad portfolio of Optical transceivers Laser solutions for emerging PC and optical components with focus on leading enabling high-value mobile device and subsystems 100G transition
Slide 5: The Time Is Right for CCOP Spin-Off
THE TIME IS RIGHT FOR CCOP SPIN-OFF CCOP operationally fit and invested in growing markets 900 40% Gross Margin % Operating Income % 800 35% 700 30% REVENUE ($M) 600 25% MARGIN % 500 20% 400 15% 300 10% 200 5% 100 0% 0 -5% <FY09 2009 2010 2011 2012 2013 2014 INHERITED FROM BECOMING INVESTING FOR THE
Slide 6: Telecom/Datacom Global Operation
TELECOM/DATACOM GLOBAL OPERATION Internal Wafer Fabrication Indium Phosphide Lithium Niobate Silica/Silicon Gallium Arsenide (InP) (LiNbO3) (SiO2/Si) (GaAs) Sub-Assemblies and Components Modules and Circuit Packs Vertical and functional integration core technology developed in-house with assembly an
Slide 7: Lasers and 3D Sensing Share Operations with Telecom/Datacom
LASERS AND 3D SENSING SHARE OPERATIONS WITH TELECOM/DATACOM Internal Wafer Fabrication Gallium Arsenide (GaAs) GaAs Wafer Pump Sources (industrial diodes) Commercial Lasers and Modules Vertical and functional integration core technology developed in-house with assembly and test at low-cost CMs © 201
Slide 8: Telecom Trends
TELECOM TRENDS Rapid emergence of 100G in long haul and metro MOBILE TRAFFIC 100G PORTS CLOUD Mobile and cloud services are fueling >50%/yr traffic growth Software Defined Networking at the transport layer: Slow, but inevitable WHITEBOXES adoption DOMAIN 2.0 TRANSPORT NG Metro Direct pluggable NETWO
Slide 9: Datacom Trends
DATACOM TRENDS NFV SDN OpenFlow SDN Puts pressure on traditional switch WEB 2.0 NEMs Web 2.0 providers build own data centers SUPPLY CLOUD CHAIN COMPUTING Qualifying and Enterprises shift from sourcing direct “On Prem” to “Cloud” from suppliers © 2015 JDS Uniphase Corporation 9
Slide 10: 40/100G Driving Growth in Datacom
40/100G DRIVING GROWTH IN DATACOM Datacom Transceiver Revenue by Data Rate 5-Year CAGR 100G: 60%+ 40G: 25%+ Market Attributes • Web 2.0 fuels growth • 10G volume growth • Data center 40G now, 100G ramps in 2016+ • Fibre Channel flat Source: Ovum © 2015 JDS Uniphase Corporation 10
Slide 11: 3D Sensing Trends
3D SENSING TRENDS Applications extend into Embedding 3D sensing in facial recognition, 3D Gaming was the mobile computing products scanning, 3D printing, early adopter of has begun with all major depth measurement, eye- 3D sensing with players… pace picking up tracking… limited market breadth 2010 2
Slide 12: Commercial Lasers Market
COMMERCIAL LASERS MARKET Macro (kW) Micro- Biomedical Materials Processing Materials Processing and Analytics (CO2 Replacement) (Mechanical Tool Instrumentation WELDING Replacement) (Long Lifecycle) CUTTING / OTHER ~75% 25% $1,500M $600M $400M (>5% CAGR) (10-15% CAGR) (0-5% CAGR) $2.5B SAM Opportuni
Slide 13: Market Impact of kW Fiber Lasers
MARKET IMPACT OF kW FIBER LASERS Industrial kW Laser Revenue Trend $2,000 $800 $1,600 $600 17.5% $1,200 CAGR $400 $800 $200 $400 $0 $0 2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017 CO2 Fiber Solid State Direct Diode / Other Fiber CO2 Laser Fiber Laser provides has l
Slide 14: Laser Micro Materials Processing of Consumer Electronics
LASER MICRO MATERIALS PROCESSING OF CONSUMER ELECTRONICS >1B Smartphones and Tablets in 2014; 13% CAGR (Gartner) Si IC singulation MEMS, RF & power devices PCB via holes Si/glass/other interposers LED flash singulation Ceramics cutting Marking, cutting, drilling, welding TFT annealing, AMOLED Hydro/
Slide 15: CCOP/Lumentum Markets Served
CCOP/LUMENTUM MARKETS SERVED COMMERCIAL TELECOM DATACOM 3D SENSING LASERS MARKET SIZE $4B $2B $3B $0.1B GROWTH RATE (5YR CAGR) 10% 15% 6% 23% CCOP REVENUE MIX 63% 15% 16% 7% Lasers for KEY 100G materials STRENGTHS Customer Technology processing Quality/ Intimacy (>60% CAGR) (>15% CAGR) Reliability *
Slide 16: As CCOP Transitions to Lumentum
AS CCOP TRANSITIONS TO LUMENTUM Telecom leadership • 100G in the Core 100G Metro expansion • TrueFlex® ROADM and line cards • 100G component leadership 100G modules • Tunable XFP and SFP+ • Optical pure play Datacom opportunity • Technology leadership • Hyperscale data centers, copper out of Ent
Slide 17: JDSU Summary
JDSU SUMMARY • Greater focus and agility to respond to opportunities. • Structure: expected effective cash tax rate <10%; no long-term debt. • Lumentum operating margin model: including costs as a separate public company, expected to be 4.0% less than existing segment operating margins ±0.5%. (Viavi
Slide 18: Thank You
THANK YOU
JDS Uniphase — 16th Annual B. Riley Investor Conference 2015 on 6ix