Coherent Corp. · NYSE:COHR
Coherent — II-VI — Investor Presentation (May 2018)
14 slides from Coherent's investor presentation, May 1, 2018
Slide 1: II-VI Investor Presentation May 2018
IIVI INVESTOR PRESENTATION May 2018 Exhibit 99.1
Slide 2: Safe Harbor Statement
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 materially. In evaluating these forw
Slide 3: II-VI Overview
14 Countries 45 Worldwide Locations 10,000+ Worldwide employees Refers to groups II and VI of the Periodic Table of Elements “TWO SIX” S Sulfur Se Selenium Zn Zinc Te Tellurium Cd Cadmium 972M FY2017 Revenue IIVI IPO 1982 1971 Founded World Headquarters: Saxonburg, PA, USA II-VI Overview Semi.Cap. E
Slide 4: Overview of Key Markets
Overview of Key Markets New Growth Markets Core Markets 3D Sensing Military Optical Communications Industrial Lasers SIC for EV SIC for Wireless
Slide 5: Growth Applications I Silicon Carbide (SiC)
Growth Applications I Silicon Carbide (SiC) HV Battery Accessory Loads DC-DC Converter Bi-Directional Converter Inverter Battery Charger Electric Motor SiC for High Power Electronics Market CAGR (‘17-’21): 23% SiC for High Frequency GaN Electronics Market CAGR (‘17-’22): 15% Source: Yole 5G WIRELESS
Slide 6: Growth Applications I 3D Sensing & LiDAR
TAM for 3D Sensing expected to be $1B by 2020 Laser Diodes for LiDAR Market CAGR(’17-’22): +20% Source: Strategies Unlimited Growth Applications I 3D Sensing & LiDAR Components for 3D Sensing & LiDAR Semiconductor Lasers: VCSELs & edge emitting lasers Optics: Low angle shift filters & wide incidence
Slide 7: Core Market I Industrial Lasers
Fiber Lasers Market CAGR (‘17-‘22): +8% Direct Diode Market CAGR (‘17-‘22): +7% Source: Strategies Unlimited Core Market I Industrial Lasers Processing High Power Semiconductor Lasers & Laser Optics A full suite of components for multiple laser modalities Strong CO2 deployed base in active use and s
Slide 8: Core Market I Optical Communications
II-VI product content is 20-40% of ROADM Line Card BOM value Optical Communications Market CAGR (’15-’21): +12% Source: Ovum Optics OTDR Wavelength Selective Switch(WSS) High Resolution Optical Channel Monitor Optical Amplifier Laser Chip-on-Carrier Assembly Thermoelectric Cooler Micro-optics Core M
Slide 9: Intention to Acquire CoAdna
WSS Module Suzhou,China Liquid Crystals Low-power consumption, low-port count, high reliability WSS supplier II-VI Intention to Acquire CoAdna Background Est. 2000, Wavelength Selective Switch (WSS) innovator Manufacturing in Suzhou China, Technology Center in Silicon Valley Strategic Rationale Comp
Slide 10: Core Market I Military
Military-Aerospace business serves four strategic areas Intelligence surveillance & reconnaissance (ISR) Lasers Missiles and ordnance EMI & survivability Highly differentiated core capabilities & products Materials engineered in-house Complex electro-optics sub-assemblies with high value add Infrare
Slide 11: Segment Revenue by End Markets
End Market Distribution of Q3FY18 Revenue Reported Segments FY17 Revenue Q3FY18 Revenue Q3FY18 Op Margin – GAAP Q3FY18/ Q3FY17 Revenue Growth Industrial (Automotive) Fiber Optic & Wireless Comm. Military Semi Cap Life Science, Consumer, Other Laser Solutions $339M $110M 9% 31% 67% (5%) 10% 6% 5% 12%
Slide 12: Financial Trends and Expectations
Financial Trends Expectations Cash and Equivalents Cash Flow from Operations Long-Term Debt (Including current portion) FY17 FY15 FY16 Shareholder’s Equity $271M $174M $218M $118M $129M $123M $342M $176M $235M $900M $729M $782M Cash and Liquidity 9M FY18 $263M $114M $512M $1,015M FY17 FY18 Gross Mar
Slide 13: Reconciliation Tables
Reconciliation Tables Three Months Ended Year Ended Mar 31, 2018 Dec 31, 2017 Mar 31, 2017 Mar 31, 2018 Mar 31, 2017 Operating Income $34.8 $32.5 $29.0 $97.1 $79.8 Interest Expense 5.0 4.7 1.9 13.3 4.5 Other expense (income), net (1.5) (2.0) (2.1) (4.2) (9.6) Income taxes 1.2 20.2 6.8 27.2 22.3 Net
Slide 14: II-VI GAAP EPS Compared to Typical Peer Non-GAAP EPS Reporting
II-VI GAAP EPS Compared to Typical Peer Non-GAAP EPS Reporting II-VI Consolidated Summary of Typical Industry Non-GAAP Adjustments Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Amortization 3.2 3.2 3.2 3.2 3.6 3.8 3.6 Share Based Comp 4.1 3.9 4.5 3.5 6.3 5.4 3.6 One Time Costs - - - 0.4 1.