Viavi Solutions Inc. · NASDAQ:VIAV
Viavi Solutions — Investor Day (September 2022)
72 slides from Viavi Solutions's investor day presentation, Sep 13, 2022
Slide 1: Form 8-K Current Report
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported): September 13, 2022 VIAVI SOLUTIONS INC. (Exact name of Registrant as specified in i
Slide 2: Item 7.01 Regulation FD Disclosure
Item 7.01. Regulation FD Disclosure. On September 13, 2022, Viavi Solutions Inc. (the “Company”) issued a press release announcing a new common stock repurchase program (as described in greater detail in Item 8.01 of this Current Report on Form 8-K) and confirming the Company’s guidance for the firs
Slide 3: Signature
Signature Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. VIAVI SOLUTIONS INC. By: /s/ KEVIN SIEBERT Name: Kevin Siebert Title: Senior Vice President, General Couns
Slide 4: VIAVI Announces $300 Million Common Stock Repurchase Program
VIAVI Announces $300 Million Common Stock Repurchase Program, Reconfirms Business Outlook and Announces Analyst Day Webcast 09/13/2022 CHANDLER, Ariz., Sept. 13, 2022 /PRNewswire/ -- (NASDAQ: VIAV) Viavi Solutions Inc. ("VIAVI") announced today that its Board of Directors has authorized a stock repu
Slide 5: Forward-looking statements and contact information
10-Q. The forward-looking statements contained in this press release are made as of the date thereof and VIAVI assumes no obligation to update such statements. Contact Information Investors: Sagar Hebbar 408-404-4507 sagar.hebbar@viavisolutions.com Press: Amit Malhotra 202-341-8624 amit.malhotra@via
Slide 6: Analyst Day 2022
Analyst Day 2022 VIAVI Solutions September 13, 2022 / vvia viavisolutions.com iiavi iav vis vi iis solu ollu utio tio ons. nss s.com com com © VIAVI VIA IA IAV AVVI Solutions So ollu olu lutio ttiio ion ns s IIn Inc Inc. nc nc. 1
Slide 7: Agenda
Agenda 9:00 – 9:05 am Welcome/Agenda Sagar Hebbar 9:05 – 9:55 am VIAVI Strategy Presentation Oleg Khaykin 9:55 – 10:15 am Q &A VIAVI Team 10:15 – 10:25 am Break 10:25 – 11:00 am VIAVI Financial Update Henk Derksen 11:00 – 11:30 am Q & A and Close VIAVI Team 11:30 – 12:00 pm Solutions Showcase and Ne
Slide 8: Safe Harbor
Safe Harbor This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. A forward-looking statement may contain words such as “anticipate,” “believe,” “can,” “can impact,” “could,” “cont
Slide 9: Assumptions and Notes to Financials
Assumptions and Notes to Financials Financials presented are non-GAAP, unless noted otherwise A GAAP to non-GAAP reconciliation of historical financials is provided in the Appendix Numbers might not equal to totals due to the rounding convention used Data on revenue segmentation is based on
Slide 10: VIAVI Strategy Presentation
VIAVI Strategy Presentation Oleg Khaykin President and Chief Executive Officer / viavisolutions.com viia via v viav iavviiis vis soollu olu luttio tiio ion ns s..c s co com om om © 2022 VIAVI VIA IAVI IAVVI Solutions So olu lu utio t ns ti ns Inc IInc.. 5
Slide 11: Recap: VIAVI Strategy FY2019 – FY2022
Recap: VIAVI Strategy FY2019 – FY2022 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 tren
Slide 12: VIAVI Solutions by the Numbers
VIAVI Solutions by the Numbers 1.6M+ INSTRUMENTS IN USE $1.3B 100,000+ 10K+ ANNUAL REVENUE (FY22) DATA CENTERS RELY ON VIAVI ASSURANCE SYSTEMS DEPLOYED 2B+ 3DS FILTERS SHIPPED 3,600+ 200+ EMPLOYEES SERVICE PROVIDER NETW ORKS 400+ 2,511 CHANNEL PATENTS ISSUED PARTNERS / viavisolutions.com © 2022 VIAV
Slide 13: Aggressively Investing in Technology Leadership
Aggressively Investing in Technology Leadership 5G 3D Sensing In the 5G technology space, In 3D Sensing technology, Emerging VIAVI has more than 100 issued VIAVI has more than 150 issued Technologies patents and 40 applications in 15 different countries patents and 175 applications in more than 50 d
Slide 14: Leadership Position in All Target Market Segments
Leadership Position in All Target Market Segments … … and Building Leadership in New High Growth Segments Test and Measurement Leadership #1 in Fiber #1 in Cable and Access in Metro and in Land-Mobile and #1 Transport #1 Military Radio NSE in 5G Network in Nav / Comm #1 Infrastructure #1 #1 and Tran
Slide 15: Strong Growth and Significant Operating Leverage
Strong Growth and Significant Operating Leverage Non-GAAP EPS Revenue Non-GAAP Operating Profit $1,292 $ in Millions, except for EPS $1,199 $1,130 $1,136 $0.95 $906 $0.83 $874 $876 $805 $0.73 $0.68 $0.44 $0.38 $0.37 $0.19 22.2% 21.1% 17.5% 18.6% 12.8% 13.9% 12.5% 7.8% 2015 2016 2017 2018 2019 2020 2
Slide 16: Completely Transformed the NSE Business
Completely Transformed the NSE Business Significantly Better Revenue Quality ~80% of Revenue in Riding the Fiber and 5G Improved and Diversified Growing Markets “Supercycle” Wave Customer Mix FY16 FY19 FY22 FY16 FY19 FY22 FY16 FY19 FY22 Growth Mature Fiber Wireless Copper Other NSE Service Provider*
Slide 17: Next Phase: VIAVI Strategy FY2023 – FY2025
Next Phase: VIAVI Strategy FY2023 – FY2025 Vision #1 or strong #2 position in all market segments where we compete 1 Defend and consolidate leadership in core business segments • NSE: L2F integration across NE platforms, Integration between NE and SE platforms • OSP: Continued innovation in Anti-cou
Slide 18: Next Phase: VIAVI Strategy FY2023 – FY2025
Next Phase: VIAVI Strategy FY2023 – FY2025 Vision #1 or strong #2 position in all market segments where we compete 1 Defend and consolidate leadership in core business segments • NSE: L2F integration across NE platforms, Integration between NE and SE platforms • OSP: Continued innovation in Anti-cou
Slide 19: VIAVI Force Multiplier – Integrated L2F2A Test Solution
VIAVI Force Multiplier – Integrated L2F2A Test Solution FUNCTIONAL / PERFORMANCE / CAPACITY TESTING / TROUBLESHOOTING & ASSURANCE O-RAN 4-5G RRH Backhaul Fronthaul Midhaul 4G/5G Core 4-5G C-RAN Network Interfaces SMO/RIC Xn S1 Option 7.2x 01, 02, E2 X2 O-RAN/eCPRI F1 Interface (Ethernet) N2 5G O-RU
Slide 20: Traditional OSP End Markets Continue to be Attractive
Traditional OSP End Markets Continue to be Attractive Traditional OSP Markets Consumer & Industrial Anti-Counterfeiting Optical components for human-to-machine interface for consumer devices and other depth sensing applications Automotive Government & Aerospace Optical components for automotive sens
Slide 21: Anti-Counterfeiting Remains an Attractive Market for VIAVI
Anti-Counterfeiting Remains an Attractive Market for VIAVI Advanced A/C Features and Macroeconomic Volatility Driving OSP Demand Top 10 National Banknote Markets (2018 – 2023) Cash as a Store of Value (in Millions of Printed Banknotes) COVID pandemic demonstrated that consumers turn 2023P 2018 Actua
Slide 22: Next Phase: VIAVI Strategy FY2023 – FY2025
Next Phase: VIAVI Strategy FY2023 – FY2025 Vision #1 or strong #2 position in all market segments where we compete 1 Defend and consolidate leadership in core business segments • NSE: L2F integration across NE platforms, Integration between NE and SE platforms • OSP: Continued innovation in Anti-cou
Slide 23: Multiple Major Trends Driving Fiber Growth Supercycle
Multiple Major Trends Driving Fiber Growth “Supercycle” Global Industrial IoT market to High Speed Internet demand be $1T by 2030, as further amplifying demand for manufacturers look to streamline fiber with Metro and Core and digitize operations going from 100G to 400G FTTH/B/P estimated to $100+B
Slide 24: New Fiber Connections and Need for Greater Bandwidth Driving Growth
New Fiber Connections and the Need for Greater Bandwidth Driving VIAVI Growth Homes passed Disaggregation and New connections and higher 39M to 71M cloudification driving performance technologies by 2025 growth in Hyperscale (e.g., Hyperscale, 5G, WiFi6) $26.8B to $42.3B by 2025 driving network band
Slide 25: Most Comprehensive, High-Performance Fiber Test and Monitoring Solutions
VIAVI Wins by Providing the Most Comprehensive, High- Performance Fiber Test and Monitoring Solutions PHASE LAB PRODUCTION DEPLOYMENT OPERATIONS OPTIMIZATION Network element Network element and Fiber characterization; Root cause troubleshooting; Proactive monitoring REQUIREMENTS and system test; pro
Slide 26: 5G Supercycle Driven by Transformation of Wireless Networks
5G “Supercycle“ Driven by Transformation of Wireless Networks and New Use Cases Global 5G Fixed Wireless Access Market expected to As early adopters of Private reach $88.5B by 2027 5G Networks, airports seeing performance gains of 20-40% 64% of businesses would consider directly acquiring 5G Spectru
Slide 27: / via
/ via viavisolutions.com viavis visolu vis olutio olutio ons ns ns. s.com © 2022 VIAVI VIAV AVII Solutions AV Solu olutio olutio tions nss Inc Inc. nc. nc. 22 2
Slide 28: OSP Growth Segments – 3D Sensing and Machine Vision
OSP Growth Segments – 3D Sensing and Machine Vision Growth Markets for OSP Consumer & Industrial Anti-Counterfeiting Optical components for human-to-machine interface for consumer devices and other depth sensing applications Automotive Government & Aerospace Optical components for automotive sensing
Slide 29: 3D Sensing for Consumer and Industrial Applications
3D Sensing for Consumer and Industrial Applications Established and Growing Market Today Key Optical Components For 3D Sensing and Other Optical Sensing Systems: • Light Source (Laser/LED) and Sensor • Light Shaping Optics (LSO) – VIAVI component • Filter – VIAVI component Each component must be mat
Slide 30: 3D Sensing: Automotive Application
3D Sensing: Automotive Application Nascent Market Today With Major Growth Potential Longer Term High-performance Filters and Light Shaping Optics for Automotive Applications • 3D external environment monitoring for Advanced Driving Assisted Systems (ADAS) such as LiDAR for autonomous driving • Engag
Slide 31: Next Phase: VIAVI Strategy FY2023 – FY2025
Next Phase: VIAVI Strategy FY2023 – FY2025 Vision #1 or strong #2 position in all market segments where we compete 1 Defend and consolidate leadership in core business segments • NSE: L2F integration across NE platforms, Integration between NE and SE platforms • OSP: Continued innovation in Anti-cou
Slide 32: 5G Networks Expected to Enable New Services and Applications
5G Networks Expected to Enable New Services and Applications V2X and SmartTransportation • LiDARs Smart Automation • SmartRailways • AIOps • SmartAirports / SmartPorts • AI Predictive Maintenance • SmartAviation • AI / ML Root Cause Analysis • Zero Touch Operations Industrie 4.0 • SmartFactories • S
Slide 33: VIAVI Well Positioned to Benefit From New Services and Applications
VIAVI Well Positioned to Enable and Benefit From These New Services and Applications NG/CLOUD NETWORK NEW PRODUCT / EVOLUTION 2–5 SERVICE INTRO NITRO DATA & INCIDENT YEARS MANAGEMENTNT SERVICE AUTOMATION OPTIMIZATION PLATFORM DIGITAL TWIN AUTONOMOUS OSS OPERATIONS NEAR FUTURE BSS N E T W O R K T E L
Slide 34: Mission Critical Communications and Avionics
Mission Critical Communications and Avionics Broadband Satellite 1,010 airlines worldwide have Providers plan over been affected by 5G Interference 15,000 LEO satellites, or mitigation orders issued by 3x the total number of aviation authorities satellites orbiting the Earth in 2019 610,000 avionics
Slide 35: Mil/Aero: Slow-Moving Industry Expected to Speed Up
Mil/Aero: Slow-Moving Industry Expected to Speed Up Global SDR market was 600,000+ avionics Number of satellites $23.7B in 2021 and will grow technicians will be needed expected to grow 7x at 8.2% CAGR by 2030 worldwide in the next 15 years from 2019 level; 5,000 to 35,000 Projected Distribution of
Slide 36: Leveraging VIAVI COTS Technologies to Serve Mil/Aero Customer Needs
Leveraging VIAVI COTS Technologies to Serve Mil/Aero Customer Needs SEGMENT OPT ICAL RADIO AVIO NI C S G O VERNM ENT SY NT HET IC SECURIT Y & & DEFENSE PERFO RM AN C E CX100 AVX-10K Ranger / Meter-Scale Handheld Raptor Optics HHRTS Multi- PRODUCTS IFF-45TS T/Rx Spectral VIAVI 8800SX Arrays Portable
Slide 37: Next Phase: VIAVI Strategy FY2023 – FY2025
Next Phase: VIAVI Strategy FY2023 – FY2025 Vision #1 or strong #2 position in all market segments where we compete 1 Defend and consolidate leadership in core business segments • NSE: L2F integration across NE platforms, Integration between NE and SE platforms • OSP: Continued innovation in Anti-cou
Slide 38: Relentless Productivity Improvement is an Integral Part of VIAVI Culture
Relentless Productivity Improvement is an Integral Part of VIAVI Culture R&D Sales G&A FY16 FY19 FY22 FY16 FY19 FY22 FY16 FY19 FY22 R&D % of Rev Sales Efficiency G&A % of Rev 1) Sales efficiency corresponds to cost per order dollar Productivity Gains Used to Fund Growth, Expand OM%, and Reward Stake
Slide 39: Our Culture and Values Drive Our Business
Our Culture and Values Drive Our Business… Exhibit Business Acumen Manage Complexity & Take Informed Risks Use domain knowledge to make Ambiguity Identify high potential opportunities good business decisions and Make sense of complex, often and take informed risks (i.e., understand the impact they h
Slide 40: In Sustainable and Socially Responsible Ways
… In Sustainable Su Sustainab and Socially Responsible Ways Environment, E Environm En ment, Social, me Socia and Governance (ESG) See more highlights in the report: viavisolutions.com/esg Now available… The new VIAVI 2022 ESG Report FY22 Highlights FY22 Highlights FY22 Highlights • Scope 1, 2 & 3 c
Slide 41: Summary
Summary Vision #1 or strong #2 position in all market segments where we compete 1 Defend and consolidate leadership in core business segments • NSE: L2F integration across NE platforms, Integration between NE and SE platforms • OSP: Continued innovation in Anti-counterfeiting pigments and high-value
Slide 42: Q&A
Q&A / viavisolutions.com viia via v viav iavviiis vis soollu olu luttio tiio ion ns s..c s co com om om © 2022 VIAVI VIA IAVI IAVVI Solutions So olu lu utio t ns ti ns Inc IInc.. 37 37
Slide 43: 10-minute Break
10-minute Break / viavisolutions.com viia via v viav iavviiis vis soollu olu luttio tiio ion ns s..c s co com om om © 2022 VIAVI VIA IAVI IAVVI Solutions So olu lu utio t ns ti ns Inc IInc.. 38 38
Slide 44: VIAVI Financial Update
VIAVI Financial Update Henk Derksen Executive Vice President and Chief Financial Officer / viavisolutions.com viia via v viav iavviiis vis soollu olu luttio tiio ion ns s..c s co com om om © 2022 VIAVI VIA IAVI IAVVI Solutions So olu lu utio t ns ti ns Inc IInc.. 39 39
Slide 45: Successfully Executed on Our 3-Year Strategy
Successfully Executed on Our 3-Year Strategy Commitment in 2019 Actual Performance Key Accomplishments CAGR CAGR VIAVI FY22 Outlook FY22 Exceeded our (FY19-FY22) (FY19-FY22) commitment in almost Revenue $1,200M - $1,300M 2% - 5% $1,292M 5% every area Operating Profit $230M - $270M 5% - 11% $287M 1
Slide 46: Growth and Operational Execution Driving Operating Leverage
Growth and Operational Execution Driving Operating Leverage Revenue Non-GAAP Operating Profit 3 Year CAGR: 4.6% NSE OSP 3 Year CAGR: 13.3% $ in millions $ in millionss $287 $253 $1,199 $1,292 $198 $211 $1,130 $1,136 18.6% 22.2% 17.5% 21.1% 2019 2020 2021 2022 2019 2020 2021 2022 Non-GAAP EBITDA Oper
Slide 47: Significant Margin Expansion in Both Business Segments
Significant Margin Expansion in Both Business Segments Non-GAAP Non-GAAP Cash Flow from Non-GAAP EPS Operating Profit Operating Margin Operations VIAVI $198M VIAVI 17.5% FY19 OSP P $98M OSP P 34% $0.68 $139M NSE E $100M NSE E 12% VIAVI $287M VIAVI 22.2% FY22 OSP P $139M M OSP P 41% $0.95 $178M NSE E
Slide 48: Relentless Execution of Cost and Operational Initiatives
Relentless Execution of Cost and Operational Initiatives • Successfully managed supply chain constraints FY22 • Implemented pricing discipline to counter inflationary pressures • Strong opex management during pandemic FY21 • Centralized management of intellectual property enabling strong focus in de
Slide 49: Continuous Improvement is an Integral Part of VIAVI Culture
Continuous Improvement is an Integral Part of VIAVI Culture R&D SG&A R&D as a % of Revenue SG&A as a % of Revenue 27.8% 27.3% 15.8% 16.1% 16.2% 15.6% 25.4% 24.8% FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 …while optimizing SG&A costs to improve Continued to invest in R&D … productivity and increase ope
Slide 50: Improved Capital Structure, Liquidity, and NOLs/Tax Strategy
Improved Capital Structure, Liquidity, and NOLs/Tax Strategy FY19 FY22 Cash Flow from Operations $139M $178M Improved Capital Structure Liquidity $532M $780M * Liquidity includes Revolving Credit Facility of $206M Debt Maturity (5 Years) 100% 42% Conservative Financial Policy Gross Leverage 2.9x 2.2
Slide 51: Strong Balance Sheet with Limited Short-term Maturities
Strong Balance Sheet with Limited Short-term Maturities Provides Financial Flexibility Opportunistically Reduce Fixed cost of debt at Access to broader set Convertible Debt attractive rates = 3.75% of sources of capital $ 400M $400M $350M $300M $250M $ 224M $200M $150M No Near-term Maturities $100M
Slide 52: Net Operating Losses Remain a Key Asset
Net Operating Losses Remain a Key Asset Successfully Preserved NOLs for Future Use Key Highlights Utilized In FY21, VIAVI completed centralization Expired of IP to better focus on development Future Use and defense of IP $5,127M - This will help reduce IP management costs $2,796M - Resulted in NOL
Slide 53: Confirming FY23 Q1 Guidance
How We Did Confirming It!! FY23 Q1 Guidance Title Q1 FY23 Outlook FY23 Outlook VIAVI (Non-GAAP) (Non-GAAP) Revenue $317M - $331M $1,265M - $1,335M Operating Margin 20.7% - 22.1% 21.5% - 22.5% Operational EPS $0.22 - $0.24 $0.90 - $1.00 Efficiency Other Assumptions : Share count : 230M – 232M shares,
Slide 54: FY23-25 Financial Objectives
How WePlan FY23-25 Did It!! Financial Objectives Cash Flow Revenue Profitability from Operations ~5% ~10% ~15% CAGR CAGR CAGR 1) Revenue and cash flow from operations are GAAP metrics. Profitability is a non-GAAP metric. / viavisolutions.com © 2022 VIAVI Solutions Inc. 49
Slide 55: FY25 Target Financials
How We Did FY25 Target It!! Financials FY25 Outlook CAGR VIAVI (Non-GAAP) (FY22 – FY25) Revenue $1,450M - $1,550M 4% - 6% Operating Profit $350M - $390M 7% - 11% Operation Margin % 23.5% - 25.5% EPS $1.20 - $1.30 8% - 12% Operating Cashflow $260M - $280M 14% - 16% FY25 Outlook Revenue CAGR Reported
Slide 56: FY23-25 Financial Objectives
How WePlan FY23-25 Did It!! Financial Objectives Cash Flow Revenue Profitability from Operations ~5% ~10% ~15% CAGR CAGR CAGR 1) Revenue and cash flow from operations are GAAP metrics. Profitability is a non-GAAP metric. / viavisolutions.com © 2022 VIAVI Solutions Inc. 51
Slide 57: Growth Initiatives to Increase Share and Drive Market Growth
Growth Initiatives to Increase Share and Drive Market Growth Defend Attractive New the Base End Markets Opportunities / viavisolutions.com © 2022 VIAVI Solutions Inc. 52
Slide 58: Key Secular Revenue Growth Drivers
Growth Decline Key Secular Revenue Growth Drivers CAGR = 5% $1,500M $1,292M FY22 Revenue Defend the Base 3DS SE Wireless Fiber FY25 Revenue NOTES : Businesses grouped per internal mgmt. hierarchies / viavisolutions.com © 2022 VIAVI Solutions Inc. 53
Slide 59: FY23-25 Financial Objectives
How WePlan FY23-25 Did It!! Financial Objectives Cash Flow Revenue Profitability from Operations ~5% ~10% ~15% CAGR CAGR CAGR 1) Revenue and cash flow from operations are GAAP metrics. Profitability is a non-GAAP metric. / viavisolutions.com © 2022 VIAVI Solutions Inc. 54
Slide 60: Operational Effectiveness to Drive ~10% Operating Profit CAGR
Operational Effectiveness to Drive ~10% Operating Profit CAGR Increase $368M Reduction $287M 24.5% $272M 22.2% 21.0% Productivity gains to fund Attractive incremental operating profit margin R&D and GTM initiatives of 45% drives margin expansion FY22 T&E FY22 Productivity Investments Defend 3DS SE W
Slide 61: FY23 – FY25 Operational Efficiency & Effectiveness Initiatives
FY23 – FY25 Operational Efficiency & Effectiveness Initiatives • Improve asset efficiency and working capital Long Term • Continue to invest in technology and cybersecurity Mid Term • Focus on further leveraging sales and marketing teams Short Term • Streamline G&A processes to drive productivity •
Slide 62: FY23-25 Financial Objectives
How WePlan FY23-25 Did It!! Financial Objectives Cash Flow Revenue Profitability from Operations ~5% ~10% ~15% CAGR CAGR CAGR 1) Revenue and cash flow from operations are GAAP metrics. Profitability is a non-GAAP metric. / viavisolutions.com © 2022 VIAVI Solutions Inc. 57
Slide 63: Targeting Operating Cash Flow CAGR of 15% Over Next 3 Years
Targeting Operating Cash Flow CAGR of 15% Over Next 3 Years Cash Flow from Operations FCF Capex CAGR (FY22-FY25) 15% $270M CAGR (FY19-FY22) 9% 60 $178M Continued strong $139M operating performance 73 45 210 in combination with 94 106 improved working capital management FY19 FY22 FY25 Executing the p
Slide 64: FY23-25 Capital Allocation Strategy
FY23-25 Capital Allocation Strategy Reinvest in Disciplined Return Core Business M&A of Capital • Targeted investments in R&D • Continue to focus on targets • Opportunistically repurchase to incubate new initiatives to that align with our long-term shares drive organic growth strategic priorities •
Slide 65: Disciplined Corporate Development / M&A Framework
Disciplined Corporate Development / M&A Framework Drive Scale and Operating Leverage M&A Framework Strategic Objectives • Accelerate long-term strategic objectives. “Go Deep” • Bolt-on acquisitions to consolidate or diversify revenue into attractive adjacent markets. • Tuck-in acquisitions to enhanc
Slide 66: Summary – VIAVI Investment Thesis
Summary – VIAVI Investment Thesis Aligned with Attractive Capital Profit Margin Upside Secular Tailwinds Deployment Targeting 5% revenue Targeting 10% Targeting 15% CAGR operating profit CAGR operating cash flow CAGR Defend the Base and FY25 Goal of 24%+ Ride the Supercycle Operating Margi
Slide 67: Q&A
Q&A / viavisolutions.com viia via v viav iavviiis vis soollu olu luttio tiio ion ns s..c s co com om om © 2022 VIAVI VIA IAVI IAVVI Solutions So olu lu utio t ns ti ns Inc IInc.. 62 62
Slide 68: Thank You!
Thank You! Resources Materials on the VIAVI Investor Relations website: investor.viavisolutions.com Questions can be directed to: investor.relations@viavisolutions.com / viavisolutions.com viia via v viav iavviiis vis soollu olu luttio tiio ion ns s..c s co com om om © 2022 VIAVI VIA IAVI IAVVI Solu
Slide 69: / via
/ via viavisolutions.com viavisolutions.com v viavis iiavis vis visolu solu olutio tio ti on nss.com ns. co o © VIAVI VIIA IAV AV AVI Solutions So olu ol lutti lu tio io ion ns s In IInc Inc. nc nc. 64 64
Slide 70: Appendix
Appendix / viavisolutions.com viia via v viav iavviiis vis soollu olu luttio tiio ion ns s..c s co com om om © 2022 VIAVI VIA IAVI IAVVI Solutions So olu lu utio t ns ti ns Inc IInc.. 65 65
Slide 71: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ millions) Non-GAAP Gross Profit FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Non-GAAP gross profit 557.4 572.2 499.3 532.1 690.1 704.2 752.2 808.7 Stock-based compensation (4.2) (4.8) (3.6) (3.3) (3.8) (4.3) (4.8) (5.2) Amortization of intangibles (31.9) (17.3)
Slide 72: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ millions, except per share numbers) Non-GAAP Income from Continuing Operations FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Net Diluted Net Diluted Net Diluted Net Diluted Net Diluted Net Diluted Net Diluted Net Diluted Income EPS Income EPS Income EPS Income E