Viavi Solutions Inc. · NASDAQ:VIAV
Viavi Solutions — JDS Uniphase — Investor Presentation (November 2003)
47 slides from Viavi Solutions's investor presentation, Nov 7, 2003
Slide 1: JDS Uniphase
a JDS Uniphase
Slide 2: Financial Update
al | Tie Ge Qed Financial U pdate 4 Ron Foster Cae
Slide 3: Forward-looking statements
Certain statements in this presentation constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1934. ZA “Forward-looking” statements are all staternents made by us, other than those dealing specifically with historical matters and any statements we make abou
Slide 4: Non-GAAP financial measures
This presentation includes non-GAAP financial measures where indicated. These non-GAAP financial measures complement the Company’s consolidated financial statements presented in accordance with GAAP. However, these non-GAAP financial measures are not intended to supercede or replace the Company’s GA
Slide 5: Focus on Fundamentals
) Focus on Fundamentals i _¢ Profitability and positive cash flow, positioning for * A-unique cash position - Deliberate choices about financial and operatio . We're making progress, narrowing losses, serving cust » Achieved reasonable predictability despite tumultuous em
Slide 6: Quarterly Revenue
Quarterly Revenue 300 es 7 250 =i a a 200 . a guidance fer Dee 00 a 100 —— Dec-01 Ma-02 Jun-02 Sep-02 Dec-02 Mar-02 Jun-03 Sep-03 Dec-03 f UDS Uniphase Financials
Slide 7: Bookings
SS Bookings i illions Q1-03 a203° Q3-03 Q4-03 Qt -04 Financials
Slide 8: Revenue and Operating Income/Loss (GAAP)
ye e and Operating Income/Loss (GAAP f ] illions Q1-03 Q2-03 Q3-03 Q4-03 Q1-04 Financials
Slide 9: Quarterly results chart
Q203 - Q4-03 Q1-04 Financials
Slide 10: Non-GAAP EBITDA
NomBAaP EBITDA rd yf Q1-03 Q2-03 Q3-03 Q4-03 (10.0) (20.0) + (30.0) (40.0) (50.0) + (60.0) (70.0) (80.0) (90.0) Financials
Slide 11: JDS Uniphase vs Competitors and Others
GE IDS Uniphase ____ Competitors and Others Financials
Slide 12: Comparative Quarterly GAAP Loss/Revenue
- | fr l “/ouarterly GAAP Loss/Revenue yx ‘a Comparative Quarterly Do Jnip Se GAAP Loss/Revenue ME JDS Uniphase Competitors and Others - Financials
Slide 13: Liabilities and Shareholder Equity
- Total Liabilities | Shareholder Equity Liabilities Plus Shareholder Equity Financials
Slide 14: Zero-Coupon Convertible Debt due 2010
Zero-Coupon Convertible Debt due 2010 * Rationale: — Opportunistic time in financial markets — Projected uses of cash today years to come — Excellent deal structure & terms * Structure of Deal: — Zero coupon, Zero yield — Total Proceeds: $475 Mil ($463 Mil after fees) — Final Maturity: 11/15/2010 —
Slide 15: Zero-Coupon Convertible Debt due 2010: Impact
Zero-Coupon Convertible Debt due 2010 *~ Impact on Balance Sheet — Increase Cash by $463.1 Mil (net proceeds) — Add Long-Term Debt of $475 Mil « Impact on P&L — Additional interest income of $2.5 - $3.5 Mil/Qtr from investing proceeds — Amortization of fees/expenses: $650K/Qtr ¢ Potential Dilution:
Slide 16: Realignment Program
7 Realignment Program “WS esia ana consrsat janufacturing Operations Financials
Slide 17: Global Realignment Program
Global Realignment Program ($billions) QiFY04 ToCome' Total: Costs 4.4 0.1 1.2 Annual Savings 1.2 0.1 1.3 : Financials - hb =) IDS Uniphase
Slide 18: Historical Accuracy of Revenue Guidance
Slide 19: Financials
ys Financials
Slide 20: Stabilizing revenue, net loss decreasing
Stabilizing revenue, net loss decreasing Improving gross margins and operating - Demonstrated ability to predict our course ina tumultuous environment
Slide 21: Business Update
al “Business Update. | y Kevin Kennedy — CEO
Slide 22: Business Update Agenda
eusiess Update Agenda y y, = ge J ‘ i * Transition update " 4 * Deliberate choices ¢ Market ¢ Business s Direction
Slide 23: Company Transition
Company Transition Aseries of deliberate choices... Organizational Clarity Operational Intent One independent chairman Market driven One leader Customer driven One headquarters ' ' Reacting to market decline Poised for market stabilization Amalgamation of companies New young company, clear culture,
Slide 24: Alignment
i on Alignment Quality and Ser Stockho\de” Transition Update
Slide 25: Customer-focused culture and cash preservation
» -« Customer-focused culture 4 > Cash preservation and accumulation > Operational excellence Prop Phones i Revenue stabilization, break-even and return to profitability
Slide 26: Non-GAAP EBITDA break-even cost structure
J Reach non-GAAP EBITDA break-even cost struct quarterly revenues of: — $200M by December 2003 — $170M by June 2004 Completion of GRP - Opportunities for further improvement _ Focus on cash — Divest unnecessary assets + Company aircraft — sold * Ottawa facility * Other — Convertible debt offering —
Slide 27: Deliberate Choices
Deliberate Choices my SF ail sempional Excellence - Fécuson _ Dual headquarters consolidated Chairman position consolidated Leadership consolidated _ Revised options plan and exec compensation _ , ¢ Shedding excesses » Centralization of corporate functions =
Slide 28: Operational Excellence: Strong governance
qj, - FF i Ope erational Excellence - Focus c - Strong governance — Independence — Chairman, Board, Committees — Team composition — Strong ethics policy — Judicious use of independent consultants — Clarity and transparency _ Stakeholder-aligned compensation practices — New stockholder-approved equit
Slide 29: Customer-focused culture
Customer-focused culture In everything we do, first ask, “VVhat is best for the customer?” « Compensation tied to customer satisfaction and product quality fr. * Continue a design-win focus x « Create value our customers cannot find % @Sun. elsewhere tes ri hs d er ren mt * Create customer “critical
Slide 30: How We Are Responding to Market Conditions
How We Are Responding to Market Conditions Market Condition JDS Uniphase Response Market size has decreased Position for future growth + Consolidation, concentrated base ‘ Strengthen customer relationships * Cash flow slower, cycle time longer + Financial strength, supply chain mgmt + Bundled, volum
Slide 31: JDS Uniphase at a Glance
ka pe Synopsis S. ¥ f Uniphase at a Glance y ™ a A FY2003 Sales $676 million Pe: +s Employees 5,200 : <a Headquarters Locations Nasdaq TDX Website Business Synopsis
Slide 32: Specialists applying the science of light
We are specialists a = _" applying the science o . . , light to dramatic a; ey transitions Ni communicatio technology and visua Business Synopsis fk: JDs Trips
Slide 33: Business Synopsis: product groups
‘= JDS Uniphase = ¥& Fiberoptic Communications Thin Film Products . a Subsystem Products Commercial Lasers Transmission Products Optical Pigments Gomponent Products Coated Optics Business Synopsis
Slide 34: Business Synopsis: product groups
Thin Film Products Commercial Lasers Communications . a Subsystem Products Transmission Products Optical Pigments Gomponent Products Coated Optics Business Synopsis
Slide 35: Communications Transmission and Component Products
aq a af room Communications RP Y. The broadest portfolio o 7 , products in the industry lransmission Products Component Products: Components, modules and subsystems for Telecom, Datacom and CATV Transmission - Mux/Demux = Add/Drop - Amplification - Switching - Optical Monitoring Business Synopsis £
Slide 36: Fiberoptic Communications: Today and Tomorrow
Fiberoptic Communications Today Tomorrow Instrum entation, Circuit packs, smart Network Ready t | Subsystem Products. Brecuet Tif modules, customer- a ee ne driven systems — =| card-level products = Telecom and datacom Intelligent modules, Transmission Products modules, CATV & cost-reduced, smaller
Slide 37: Fiberoptic Network Coverage
Fiberoptic Network Coverage Cross Metra. Metra. Matro. Submarine LHMULH Connect DWDM SONET Access Enterprise Storage FTTP Trans mic#on Products Transoeiver Transponder CAT IX CATV EDFA CATV RX Subsystem Produ ds Wavelength Mgmt Amplifiers Circuit Packs NEP Ing tum entation (Com ponent Products wD M/
Slide 38: Business Synopsis: product groups
“S JDS Uniphase = ¥& Fiberoptic Communications Thin Film Products . a Subsystem Products Commercial Lasers Transmission Products Optical Pigments Gomponent Products Coated Optics Business Synopsis
Slide 39: Thin Film Products
Thin Film Products = A plying optical technology to serve a diverse set of growing markets Biomedical/ Environmental Aerospace/ Security/ Instrumentation Defense Display Authentication Decorative Business Synopsis =) JDS Uniphase
Slide 40: Thin Film Products: Lasers, Pigments, Coated Optics
Thin Film Products ee. —_— Lasers = Optical Pigments ey Goated Optics ABE Business Synopsi 5 Today Tomorrow Solid-state, gas, fiber and diode lasers usedin biotechnology, biohazard Dpss detection, graphics and imaging, semiconductor, and materials processing Light interference pigments for color shi
Slide 41: Vertical and Business Growth Opportunities
la and Business Growth tical Opportunities Horizontal Opportunities Distribution + International + After Market n =) IDS Uniphase
Slide 42: You will probably use JDS Uniphase products today
#4 You will probably use 25 JDS Uniphase products today and not even know it When you use the telephone, access the Internet, enjoy home theater, use the new, $20 bill you-are likely using opticaltechnology from JDS Uniphase sp
Slide 43: A Picture AND a Thousand Words
Slide 44: The Transition Toward Visual
The Transition Toward Visual Speaking : Method Transfer time Amount of data Direction Telephone 7.5 minutes 3.6 MB (@ 64 Kb/s) Text seconds 10 KB Digital image seconds 100 KB -1 MB Digital Video Real-time 1-10 Mb/s £ = IDS Uniphase
Slide 45: Direction
& ° Direction PPanlivestment in JDS Uniphase J ‘ty oo Is an investment in the technology of light Is an investment ii increasingly ni Is an investment | enriched visual at for learning, co! n business, and entertain
Slide 46: Summary: Operational excellence
Operational excellence Summary One. Chairman, One Headquarters Culturally Aligned Assets New Comp Plan
Slide 47: Summary: Transition completed
. >) & . ¢ Transition completed > Deliberate choices being taékled ¢ ‘for stabilization f Customer driv Summary