Coherent Corp. · NYSE:COHR
Coherent — II-VI — Investor Presentation (August 2015)
16 slides from Coherent's investor presentation, Aug 19, 2015
Slide 1: Our Technologies for Tomorrow's Innovations
Our Technologies for Tomorrow’s Innovations www.ii-vi.com NASDAQ: IIVI August A global leader powered by engineered material solutions that fully satisfy our customers Exhibit 99.1
Slide 2: Safe Harbor Statement
www.ii-vi.com I NASDAQ: IIVI Matters discussed in this presentation may contain forward-looking statements that are subject to risks and uncertainties. These risks and uncertainties could cause the forward-looking statements and II-VI Incorporated’s (the Company’s) actual results to differ materiall
Slide 3: Our Core – Material Excellence
Our Core – Material Excellence
Slide 4: Global Leader in Engineered Materials
40% 31% 12% 5% 7% 5% 63% 37% 35% 39% 26% Global Leader in Engineered Materials Headquartered in Saxonburg, PA ~ 8,000 Employees in 14 Countries FY15: $742M Revenue, 8.7% ROS 2% insider ownership 4 CONSECUTIVE DECADES OF PROFITBILITY AND COUNTING Fiscal Year Revenues $187 $224 $255 $310 $280 $333 $48
Slide 5: Laser Solutions Segment Revenue and TAM Share
5 Rev. TAM Share Laser Solutions Segment $288M $254M $218M $1.5B $900M $555M 19% 28% 39% FY15 FY14 FY13 Leading merchant supplier of CO , Fiber, and Direct Diode industrial laser components Leading supplier of CO optics for an install base of >70,000 high power lasers First to service EUV Lithograph
Slide 6: Laser Solutions Segment
6 Laser Solutions Segment Vertical Cavity Surface Emitting Laser (VCSEL) Market CAGR (‘13-’18): 33% Source: BCC Research Laser Processing Heads & Beam Delivery Components Market CAGR (‘14-’19): 22% Source: Strategies Unlimited
Slide 7: Photonics Segment Revenue and TAM Share
7 Photonics Segment Rev. TAM Share $261M $217M $141M $3.3B $2.0B $1.5B 8% 11% 9% FY15 FY14 FY13 Worldwide supplier of cutting edge amplification, pump, and transmission products for optical communication networks Leading Supplier of crystals, fiber optics, precision optics, and optical assemblies fo
Slide 8: Photonics Segment
8 Photonics Segment EDFA/Raman Amplifiers Market CAGR (‘14-’19): 30% Source: Ovum 40G/100G Transceivers for Datacom Market CAGR (‘14-’19): 45% Source: Ovum
Slide 9: Performance Products Segment Revenue and TAM Share
Performance Products Segment Rev. TAM Share $193M $213M $192M $2.6B $2.3B $2.1B 7% 10% 9% FY15 FY14 FY13 Focus on strategic markets where II-VI material expertise and technology enables growth and new functionality Free Standing Diamond Precision Optical Systems High Value Material Reclamation React
Slide 10: Performance Products Segment
10 Performance Products Segment Sapphire Material and Optics Market CAGR (‘14-’19): 10% Source: Internal Power Generation Products Market CAGR (‘14-’19): 30% Source: Internal
Slide 11: Profitability and Expectations
Expectations II-VI growth expectations across the cycle are: Organic Revenue: 2-3x GDP EPS: ~2x revenue growth Gross Margin (Adj) EBITDA Operating Margin FY15 35% - 38% 15% - 18% 7% - 10% Margin Performance Profitability and Expectations FY11 FY12 FY13 FY14 FY15 41.6% 39.0% 36.9% 33.2% 36.6% 26.0% 2
Slide 12: Cash and Liquidity
Cash and Liquidity Cash and Liquidity Cash and Equivalents Cash Flow from Operations Long-Term Debt (Including current portion) Shareholders' Equity FY13 $185M $108M $114M $636M FY14 $175M $95M $241M $675M FY15 $174M $129M $176M $729M
Slide 13: Company Position
Company Position Positive Profit Outlook Leading Market Positions In Diverse End Markets Investing In Fast Growing Markets Strong Cash Position Global Manufacturing Footprint Growth Via Organic And Acquisitions Ongoing $50M Stock Buyback Program
Slide 14: www.ii-vi.com I
www.ii-vi.com I NASDAQ: IIVI
Slide 15: Strategic Resources
Strategic Resources Corporate G&A R&D NPI Photonics Performance Products Laser Solutions Organization M&A / Integration Tech Management Trade Compliance Operation Metrics Quality SCM Legal
Slide 16: Reconciliation of Adjusted EBITDA to Net Earnings
EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Reconciliation of Adjusted EBITDA to Net Earnings EBITDA 126.6 123.2 119.4 103.3 128.4 Interest expense 0.1 0.2 1.2 4.5 3.9 Depreciation and amortization 28.3 34.5 40.8 53.2 53.1 Settlement Agreement (7.7) Income ta