Viavi Solutions Inc. · NASDAQ:VIAV

Viavi Solutions — 22nd Annual Needham Growth Conference 2020

23 slides from Viavi Solutions's conference presentation, Jan 14, 2020

Slide 1: 22nd Annual Needham Growth Conference 2020
22nd Annual Needham Growth Conference 2020 Viavi Solutions Inc. Oleg Khaykin President and Chief Executive Officer
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, financ
Slide 3: Delivered on 3-Year Financial Commitment
Delivered on 3-Year Financial Commitment Key Drivers Sept. 2016 FY19 Results • Restructured SE Non-GAAP Guidance • Surgically reduced cost and improved ✓ efficiencies across-the-board VIAVI Revenue* $805M - $875M $1,130M • Invested in growth: 3D Sensing, Fiber, NSE $555M - $595M $841M Wireless, DOCS
Slide 4: Transformed Financial and Growth Profile of the Company
Transformed Financial and Growth Profile of the Company Revenue Non-GAAP Operating Profit Non-GAAP EPS $0.68 $ in Millions 1,130 $0.44 $0.38 $0.37 906 874 $0.19 876 OP% Viavi 17.5% 805 OP% OSP 33.9% OP% OP% Viavi 13.9% NSE 11.8% OP% Viavi 12.8% Viavi 12.5% OSP 35.9% 198 Viavi 7.8% OSP 41.5% OSP 43.3
Slide 5: Leadership Position in all Target Market Segments
Leadership Position in all Target Market Segments Test and Measurement Leadership AvComm and Wireless T&M #1 in Cable in RAN-to-Core #1 Network Test #1 in Access NSE in Land-Mobile in Metro and #1 and Military Radio #1 Transport In Nav / Comm #1 and Transponder #1 in Fiber Security Authentication/Se
Slide 6: Next Phase: VIAVI Strategy 2019-2022
Next Phase: VIAVI Strategy 2019-2022 Vision #1 or a strong #2 in all market segments where we compete Defend and expand the base business 1 • NSE: Continue with “Big NE, focused SE” strategy • OSP: Anti-Counterfeiting pigments and high value Optical Coatings “Ride the Waves” – leverage secular trend
Slide 7: NSE Ecosystem a Source of Competitive Advantage and Differentiation
1 NSE Ecosystem a Source of Competitive Advantage and Differentiation viavisolutions.com © 2020 VIAVI Solutions Inc. 7
Slide 8: Traditional OSP End Markets Continue to be Attractive
1 Traditional OSP End Markets Continue to be Attractive GROWTH MATURE Consumer & Industrial Anti-Counterfeiting Optical components for human-to-machine interface Protection of banknotes and for smartphones, computers, and drones other valuable documents Automotive Government & Defense Optical compon
Slide 9: Fiber and Wireless at Core of NSE Growth Strategy
2 Fiber and Wireless at Core of NSE Growth Strategy Lab & Production Service Provider (SP) Field T&M Semis, Optical Modules, Instrumentation Data Access Metro Core NEMs, & SP Labs Center Fiber (FTTx) Fiber Cable (coax) Fiber Fiber Fiber DSL (Cu) Wireless 4G / 5G Wireless Wireless 4G / 5G/ LMR 4G / 5
Slide 10: Fiber Proliferation and Growth Drivers
2 Fiber Proliferation and Growth Drivers ~1.4 million miles of fiber to deploy 5G in Top-25 Metro areas in the US 100K + field technicians will need fiber test gear - Grand View Research 2016 Hyperscale Data Centers - More apps moving to cloud - More intense SLA 5G Network Buildout - New RAN with co
Slide 11: VIAVI Wireless Opportunity Growing With Mobile Networks
2 VIAVI Wireless Opportunity Growing With Mobile Networks Architecture Evolution (2G ➔ 5G) Analog Scale & Virtualization Densification & Automation Voice Data 2G /2.5G 2G/2.5G 3G/3.5G 4G/LTE Small Cell/4.5G/LTE_A 5G RF Vision CA5G small cells Radio Unit CAA (RU) BTS nodeB eNB eNB TM500 CPRI/Cell Adv
Slide 12: 5G Deployment Plays to VIAVI Core Strengths
2 5G Deployment Plays to VIAVI Core Strengths Workflow Automation Using Field Instruments and Service Assurance Software GEO 3D Coverage, Fiber Monitoring NITRO™ Construction and Installation NITRO 5G Installer Tool Kit Site Certification and NITRO™ Antenna Alignment Test Process Automation 3Z RF St
Slide 13: 3D Sensing Principal Growth Driver for OSP
2 3D Sensing Principal Growth Driver for OSP GROWTH MATURE Consumer & Industrial Anti-Counterfeiting Optical components for human-to-machine interface Protection of banknotes and for smartphones, computers, and drones other valuable documents Automotive Government & Defense Optical components for AD
Slide 14: 3D Sensing: Consumer Applications Major Focus Today
2 3D Sensing: Consumer Applications Major Focus Today Leading technology and market position in both prevalent 3D Sensing Solutions • Technology and market leader in LAS IR filters • Leading position on the engineered diffusor on TOF projector side • Strong position on the flood illuminator Structur
Slide 15: 3D Sensing: Automotive Application Major Opportunity Longer Term
2 3D Sensing: Automotive Application Major Opportunity Longer Term High-performance Filters and Engineered Diffusers for Automotive Applications • In cabin driver and passenger monitoring for personalization, comfort and security • Facial and gesture recognition for driver monitoring and interior co
Slide 16: $1.3B+ Organic and Inorganic Investments To Drive Top Line Growth
3 $1.3B+ Organic and Inorganic Investments To Drive Top Line Growth R&D + CAPEX ~$700M M&A Investment ~$630M Fiber, Cable, Wireless Cable/DOCSIS 3.1 Instrumentation Platforms 3D Sensing 5G, Mil/Aero Anti-Counterfeiting 3D Sensing Software Platforms Wireless/5G Notes: 1) Investments are from FY16 to
Slide 17: Driving Operational Effectiveness Across the Company
4 Driving Operational Effectiveness Across the Company viavisolutions.com © 2020 VIAVI Solutions Inc. 17
Slide 18: FY2022 Outlook
FY2022 Outlook Expect EPS Growth to Outpace Topline Growth FY22 Outlook CAGR Key Assumptions VIAVI (Non-GAAP) (FY19-FY22) ▪ Macro environment does not degrade Revenue $1,200M - $1,300M 2% - 5% ▪ Wireless/5G, Fiber, and 3D Sensing key drivers of growth Operating Profit $230M - $270M 5% - 11% ▪ Core O
Slide 19: Summary
Summary Vision #1 or a strong #2 in all market segments where we compete Defend and expand the base business 1 • NSE: Continue with “Big NE, focused SE” strategy • OSP: Anti-Counterfeiting pigments and high value Optical Coatings “Ride the Waves” – leverage secular trends to drive growth and expand
Slide 20: VIAVI Solutions
—— Vi ae VIAVI Solutions
Slide 21: Appendix
Vi ae VIAVI Solutions Appendix

Viavi Solutions — 22nd Annual Needham Growth Conference 2020 on 6ix

Viavi Solutions — 22nd Annual Needham Growth Conference 2020

Slide 1: 22nd Annual Needham Growth Conference 2020

Slide 2: Safe Harbor

Slide 3: Delivered on 3-Year Financial Commitment

Slide 4: Transformed Financial and Growth Profile of the Company

Slide 5: Leadership Position in all Target Market Segments

Slide 6: Next Phase: VIAVI Strategy 2019-2022

Slide 7: NSE Ecosystem a Source of Competitive Advantage and Differentiation

Slide 8: Traditional OSP End Markets Continue to be Attractive

Slide 9: Fiber and Wireless at Core of NSE Growth Strategy

Slide 10: Fiber Proliferation and Growth Drivers

Slide 11: VIAVI Wireless Opportunity Growing With Mobile Networks

Slide 12: 5G Deployment Plays to VIAVI Core Strengths

Slide 13: 3D Sensing Principal Growth Driver for OSP

Slide 14: 3D Sensing: Consumer Applications Major Focus Today

Slide 15: 3D Sensing: Automotive Application Major Opportunity Longer Term

Slide 16: $1.3B+ Organic and Inorganic Investments To Drive Top Line Growth

Slide 17: Driving Operational Effectiveness Across the Company

Slide 18: FY2022 Outlook

Slide 19: Summary

Slide 20: VIAVI Solutions

Slide 21: Appendix

Slide 22: viavisolutions.com © 2020 VIAVI Solutions Inc.

Slide 23: viavisolutions.com © 2020 VIAVI Solutions Inc.