Viavi Solutions Inc. · NASDAQ:VIAV
Viavi Solutions — JDS Uniphase — Shareholder Meeting (November 2002)
48 slides from Viavi Solutions's shareholder meeting presentation, Nov 4, 2002
Slide 1: JDS Uniphase
Slide 2: Forward-looking statements
Certain statements in this presentation constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1934. “Forward-looking” statements are all statements made by us, other than those dealing specificall nistorical matters and any statements we make about the c of
Slide 3: Content and Demand Drive Long-Term Growth
Content and Demand Drive Long-Term Growth aa JDS Uniphase
Slide 4: The Internet Today
The Internet Today ee} JDS Uniphase
Slide 5: JDS Uniphase
iphase JDS Un =
Slide 6: Imagine a world without...
Imagine a world without... Online video conferencing aa JDS Uniphase
Slide 7: Imagine a world without...
Imagine a world without... a JDS Uniphase
Slide 8: JDS Uniphase
JDS Uniphase
Slide 9: JDS Uniphase
JDS Uniphase
Slide 10: Enabling Networks for Bandwidth-Intensive Applications
Slide 11: Internet Traffic for North America
Slide 12: - - ee a
- - ee a JDS Uniphase
Slide 13: nN ua a c = = = & a bi - uv a 50:
nN ua a c = 20 = = 315 & a bi 5 10 - uv a 50: 7) 0 ‘ : ma te Source: Credit Suisse First Boston. i ‘ipst Revearth Kincoe eae BEE “4 JDS Uniphase
Slide 14: Internet Traffic for North America
Internet Traffic for North America et} JDS Uniphase RHK, May 2002
Slide 15: Bandwidth Demand
Slide 16: New Infrastructures Open Up New Possibilities
» New Infrastructures Open Up New Possibilities JDS Uniphase
Slide 17: Lanes
12 Lanes (proposed)
Slide 18: Innovation, Financial Strength, Operational Excellence
Slide 19: Bandwidth Demand
Bandwidth Demand Fe w broadband pp ieagion ke} JDS Uniphase
Slide 20: Pommr
UU Pommr
Slide 21: Enterprise
. - Enterprise s ' f. os ( Long Hi ie ee gee JDS Uniphase
Slide 22: JDS Uniphase—Extends Beyond Communications
JDS Uniphase—Extends Beyond Communications Building on our optics technology to address other markets aa JDS Uniphase
Slide 23: Diverse Customer Base for Optics
Diverse Customer Base for Optics Display Markets 7 JDS Uniphase
Slide 24: Currency Protection Markets
Currency Protection Markets ptically Variable Pigments protect bank notes in 83 countries ee
Slide 25: Diverse Customer Base for Optics
Diverse Customer Base for Optics Decorative Markets “71 JDS Uniphase
Slide 26: Commercial Lasers
Commercial Lasers Graphic arts and imaging Biotechnology Semiconductor processing Materials processing Defense ia JDS Uniphase
Slide 27: The Path to Succeed ...
The Path to Succeed ... Partnering with Our Customers in a Challenging Environment “1 JDS Uniphase
Slide 28: Partnering with our Customers
Partnering with our Customers ® Understand our customer's demand drivers ® Understand where the best products and— technology opportunities lie ® Partner at early stages of design * Demonstrate agility and innovation “1 JDS Uniphase
Slide 29: Annual Stockholder Meeting
Slide 30: Driving Higher Efficiency
Slide 31: Driving Higher Efficiency
Driving Higher Efficiency « Reorganize under our Global Realignment Program « IT, HR, and Finance now centralized, including: Purchasing Order processing Employee benefits administration Accounting — Payroll + Coordinate Manufacturing to maximize synergies — Logistics, supply chain management — Cent
Slide 32: Driving Higher Efficiency
Driving Higher Efficiency « Many independent organizations from mergers * Multiple IT, Manufacturing, HR, Finance, Marketing, R&D « Limited opportunities for synergy, lost opportunities for economy of scale Rj JDS Uniphase
Slide 33: Preparing for the Future
Slide 34: Meeting the Financial Challenge
Slide 35: Market Outlook and Strategy
Market Outlook and Strategy Optical Technologies (non-communications markets) Outlook « Relatively stable, profitable businesses « Growth opportunities in security markings, displays and defense applications Strategy « Maintain leadership in authentication, commercial lasers, projection display « In
Slide 36: Market Outlook and Strategy
Market Outlook and Strategy Fiberoptic Communications Products Outlook + Near-term weakness in long haul markets * Network edge markets show most promise « Long-term outlook remains optimistic — Internet traffic expected to grow — Metro, access, fiber-to-the-curb untapped markets — Client-side, ente
Slide 37: Q4 FY02 vs Q1 FY03 Results
Q4 FY02 vs Q1 FYO3 Results QIFY03 Q4FY02 Revenue $193M $222M Quarter over Quarter (13%) (15%) Net Loss (pro forma) ($ 98M) ($140M) Gross Margin (pro forma) 7% (6%) Operating Expenses (proforma) $124M $153M Expected Q2 Revenue is $150-160M 271 JDS Uniphase
Slide 38: FY 2002 at a Glance
FY 2002 at a Glance Sales of $1.1B down 66% from prior year — Thin Film Products (non-telecom) businesses were stable or growing — Communications sales declined significantly Pro-forma net loss was $721M Financial position remained strong with $1.4B cash and short-term investments at year-end Operat
Slide 39: Meeting the Financial Challenge
Meeting the Financial Challenge Global Realignment Program ‘Estimate a JDS Uniphase
Slide 40: Meeting the Financial Challenge
Ma Meeting the Financial Challenge J) JDS Uniphase
Slide 41: Meeting the Financial Challenge
Meeting the Financial Challenge Closing and Consolidating Sites ‘Apr 2001 Dec 2001 jul 2002 Future 221 JS Uniphase
Slide 42: Meeting the Financial Challenge
Meeting the Financial Challenge * Quickly reach cash break-even of $200M per quarter * Maintain financial strength « Reduce costs while positioning for future growth Rj JDS Uniphase
Slide 43: Investing for the Future
Slide 44: Driving Higher Efficiency
Driving Higher Efficiency « Business Units can be externally oriented — Increased emphasis on marketing, R&D — Focused on customers, markets, technologies, competition « Pilot build capabilities near Business Units reduce time-to-market « Transition teams transfer products to low-cost, high volume p
Slide 45: Getting to the Future
Getting to the Future « Driving higher efficiency — Centralize for economies of scale and maximize synergies through Global Realignment Program « Meeting the financial challenge — Reduce costs while positioning for future growth « Investing for the future — R&D and acquisitions to support our market
Slide 46: Investing for the Future
Investing for the Future * Strategic acquisitions to supplement R&D programs « Add products and technologies to complement portfolio « Seek attractively priced opportunities Rj JDS Uniphase
Slide 47: Pro Forma Operating Expenses
($ Millions USD) Pro Forma Operating Expenses! 160 140 1 R&D I SG&A 120 100 80 60 40 FY02 Q1 FY02 Q2 FY02 Q3 FY02 Q4 ing Global Realignment Program charges
Slide 48: Cash and Short Term Investments
Meeting the Financial Challenge ($ Millions USD) Cash and Short Term Investments 2,000 4,500 1,000 500 —_— 0 FYO2Q1 FY0O2Q2 FY02Q3 FY02Q4 FY03Q1