Slide 1: LightPath Technologies, Inc. Investor Presentation December 2015
L IGHT P ATH T ECHNOLOGIES , I NC . (NASDAQ: LPTH) I NVESTOR P RESENTATION D ECEMBER 2015
Slide 2: Safe Harbor Statement
Leaders in optical and infrared solutions S AFE H ARBOR S TATEMENT This presentation contains forward - looking statements . All statements in this presentation, other than statements of historical facts, which address activities, events or developments that we expect or anticipate will or may occur
Slide 3: LightPath Investor Update
Leaders in optical and infrared solutions LightPath Investor Update • 2015: Successful Implementation of Key Objectives – Diversified product portfolio – Technology and capacity investments continue – Financial results significantly improved • The Future: Sustaining Success – Managing light essentia
Slide 4: Company Product Lines
Leaders in optical and infrared solutions Company Product Lines NASDAQ: LPTH Molded Aspheric Lenses Molded Infrared Aspheric Lenses Fiber Optic Collimators Gradium Lenses 4 Mounted Lenses Specialty Products
Slide 5: Specialty Products – Select Applications
Leaders in optical and infrared solutions Specialty Products – Select Applications NASDAQ: LPTH Typical Applications Medical Industrial Commercial Endoscopes Metal Fabrication Laser Projectors Precision Molded Optics – Select Applications Infrared Systems – Select Applications Police Fire Military
Slide 6: LightPath Capabilities
Leaders in optical and infrared solutions LightPath Capabilities NASDAQ: LPTH 6 By June 2016 for the visible optical lens and infrared lens LightPath will be a fully integrated company providing innovative optical design on competitive low cost, high volume manufacturing platform. Capabilities Innov
Slide 7: LightPath Financial Performance
Leaders in optical and infrared solutions LightPath Financial Performance ($000’s) 4Q 2015 FY 2015 1Q 2016 • Total Sales $4507 $13,662 $4190 • % Growth 45% 15% 61% • Strategic Sales - Infrared $ 471 $ 1220 $ 395 • % Growth 208% 172% 156% • Gross Margin % 47% 44% 54% • Operating Income $ 448 $ (261)
Slide 8: The Future of Photonics
Leaders in optical and infrared solutions The Future of Photonics NASDAQ: LPTH 8 The passive lens is the “semiconductor” of the optical system and is a small but essential part to the finished product. Optical Systems Components Passive & Subassemblies Passive Lens • Infrared Value $3.33 Billion • N
Slide 9: Growth Catalysts for 2015/2016
Leaders in optical and infrared solutions Growth Catalysts for 2015/2016 Base / Specialty Products Business • Optical Network Growth – Bandwidth Demand: Huawei of China, NeoPhotonics • Internet & Mobility: Mobile Device Growth, Video, Cloud Computing, M - 2 - M, Internet - of - Things • Adoption of
Slide 10: Vision
Leaders in optical and infrared solutions Vision Grow LightPath Technologies into an optical solution company that is a fully integrated manufacturer and supplier of visible and infrared optical components and sub - systems, based on world class optical design and manufacturing technology. NASDAQ: L
Slide 11: Global Operating Strategy
Leaders in optical and infrared solutions Global Operating Strategy LightPath will accomplish this by: 1. Maintaining Strong Customer Focus. 2. Building a Leadership Position thru Investment and Organically Growing our Vertically Integrated I nfrared Molded Optical Sub - systems and Components. 3. D
Slide 12: Benchmarking our Progress
Leaders in optical and infrared solutions Benchmarking our Progress Benchmarked several successful optics companies and determined key metric for measuring our progress. ROA selected as our benchmark metric. Growth ROA • Competitor A 5% 7% • Competitor B 3% 11% • Competitor C 6% 9% • Range 3 - 6% 7
Slide 13: Operating Performance Objectives
Leaders in optical and infrared solutions Operating Performance Objectives • Revenue Growth 12% to 16% • Strategic Revenue Growth 30+% • EBITDA Margin* 13% + • ROA Weighted* 12% to 15% *Calculations exclude the effects of changes in value of warrants NASDAQ: LPTH 13
Slide 14: Linking Compensation to LightPath Performance
. ° Linking Compensation To LightPath’ Performance + At Risk Compensation (ARC) + Revenue Growth + Strategic Revenue Growth + EBITDA Margin * ROA * Executives Investment: + CEO & Senior Staff Investing in LPTH * CEO will hold minimum of half annual salary * Senior Executives will hold minimum of one