Coherent Corp. · NYSE:COHR
Coherent — Investor Presentation (February 2009)
14 slides from Coherent's investor presentation, February 2009
Slide 1: The Leader in Photonics
€> coHERENT. The Leader in Photonics € coHERENT.
Slide 2: Forward-Looking Statements & Non-GAAP Measurement
Forward-Looking Statements & Non-GAAP Measurement Forward-Looking Statements The statements in this presentation that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties, including risks associated with business and economic conditions, c
Slide 3: The Photonics Company
The Photonics Company Provider of Photonics Solutions − Primarily Lasers for Commercial and Scientific Research Applications • Founded in 1966 • TTM Sales $579.4 Million • TTM Orders $542.5 Million • ~2,020 Employees • Sales 32% U.S. and 68% International • 462 Patents, 103 Pending _________________
Slide 4: Our Strategy and Objectives
Our Strategy and Objectives • Leverage the depth & breadth of our technology portfolio to optimize growth and performance • Create new markets through internal and independent application development • Continue to lead the revolution in commercial lasers • Complement internal product/market developm
Slide 5: Industry Overview
Industry Overview Multiple Growth Vectors Competitive Landscape: Lasers and Electro-optic Components (~$3 Billion Global Market) (1) Coherent Rofin 20% 12% ~$600 million ~$360 million W eld Cu in t tin g, M g, Jo ic r D ini Cymer S Et om ril ng f /H . ch at lin De fg En i ng ' l Pr g 17% M . ,E oc y
Slide 6: Diversified Applications
Diversified Applications Applications Revenue Revenue Mix Mix (TTM (TTM as as of of 12/27/08) 12/27/08) • TAM ~$1B Materials Processing Microelectronics • Mask writing, semiconductor inspection, OEM Components & Instrumentation* 15% marking, flat panel display, solar and advanced 29% packaging and i
Slide 7: The Power of Platforms
The Power of Platforms OPS OPS Talisker Talisker HighLight HighLight • New class of lasers based on • Fiber hybrid design. With both • High power diode lasers for engineer-able semiconductor variable and selectable industrial manufacturing materials performance in terms of power, pulse width, and re
Slide 8: EBITDA Expansion Plan
EBITDA Expansion Plan Footprint Footprint Reduction Reduction Programs Programs Headcount Headcount and and Other Other Cost Cost measures measures • Exit Auburn facility by March 31, 2009 and outsource • Headcount reduction of 235 people since August 2008 optics manufacturing to REO of Boulder, Col
Slide 9: Summary of cost reduction improvements
Summary of cost reduction improvements Cash P&L Restructuring Annualized Savings Costs Headcount reduction ~ $9.0 M ~ $1.5M Sept – Nov 2008 Headcount reduction ~ $12.0 M ~ $2.5M February 2009 Other sustainable ~ $1.5 M __ programs Footprint reduction programs $11.5M to $14.5 M ~ $18.0M Total $34.0M
Slide 10: Pro Forma Financials
Pro Forma Financials Q1’09 FY’ 08 FY’ 07 Orders $ 103.3 $ 594.0 $ 591.0 Sales $ 124.4 $ 599.3 $ 601.2 Gross Profit 43.2% 43.0% 41.9% Period Expenses $ 37.4 $ 207.4 $ 207.4 Operating Profit $ 16.3 $ 50.3 $ 44.5 Operating Margin 13.1% 8.4% 7.4% Net Income $ 8.6 $ 43.2 $ 41.2 Pro Forma EPS $ 0.36 $ 1.5
Slide 11: Attractive financial profile
Attractive financial profile Solid Solid Revenue Revenue Growth Growth Powerful Powerful Cash Cash Generation Generation 8.1% ($ millions) ($ millions) CAGR 700 400 $362 $584.7 $601.2 $599.3 600 350 $516.3 $293 $495.0 300 500 $406.2 250 400 $218 $218 200 300 $143 150 200 $93 100 100 50 0 0 FY03 FY04
Slide 12: The Market Leading Photonics Platform
The Market Leading Photonics Platform An An Established Established History History of of Highly Highly Diversified Diversified Markets Markets Market Market and and Technology Technology and and Products Products Leadership Leadership Multiple Multiple Growth Growth Vectors Vectors Exceptional Exce
Slide 13: Reconciliation GAAP to NON-GAAP financials
Reconciliation GAAP to NON-GAAP financials Q1’09 Q1’09 FY08 FY08 FY07 FY07 Quarter ended Year Ended Dec. 27, Sept. 27, Sept. 29, 2008 2008 2007 GAAP net incom e (loss) (14,679) 23,403 15,951 GAAP net incom e (loss) per share ($0.61) $0.83 $0.50 Stock option investigation and related restatem ent of
Slide 14: Superior Reliability & Performance February 2009
Superior Reliability & Performance February 2009 2/9/2009 P. 14