Coherent Corp. · NYSE:COHR
Coherent — II-VI — Investor Presentation (June 2017)
15 slides from Coherent's investor presentation, Jun 28, 2017
Slide 1: June 2017
\ Exhibit 99.1 June 2017
Slide 2: Introductions
Company: II-VI Incorporated Presenting:Dr. Vincent D. (Chuck) Mattera, Jr President and CEO Mary Jane Raymond Chief Financial Officer INTRODUCTIONS
Slide 3: 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 4: Reported Segments and Company Overview
Reported Segments FY16 Revenue Q3FY17 Revenue Q3FY17 Op Margin YOY 9 Months Revenue Growth Industrial Fiber Optic & Wireless Comm. Military Semi Cap Life Science, Consumer, Other Laser Solutions $303M $84M GAAP 10% (incl $0.10/share investment) 13% 74% 12% 3% 4% 7% Photonics $326M $109M 15% 35% 8% 8
Slide 5: Fiber Optics and Wireless Communications
Fiber Optics and Wireless Communications Enabling growing demand for intelligent networks Long Haul Submarine DCI DCI Metro Datacenter Interconnect CATV FTTx Wireless Base Stations Optical Components for Communications Market CAGR (’16-’20): 11% - Source: Ovum Key drivers in Q4Y17: Key end markets s
Slide 6: High Power Lasers and Optics
High Power Lasers and Optics Leader in industrial material processing Laser Processing Heads & Beam Delivery Components Market CAGR (‘14-’19): 22% Source: Strategies Unlimited Experts in development of new materials for diodes and optics for lower cost of ownership Industrial laser components 25-35%
Slide 7: Enabling EUV Lithography Roadmap
EUV Source System Beam Transport System CO2 System Structural Ceramic Subsystems Seed Laser Power Amplifiers Focusing Optics EUV Lithography System 1500 nm 800 nm 90 nm 65 nm 45 nm 22 nm 20nm 14 nm 10 nm 7 nm 5 nm Evolution of Semiconductor Technology 1982 1993 2003 2009 2010 2012 2014 Future Source
Slide 8: Semiconductor Laser Technology Enabling Opto-electronic Devices
Optical Communications Internet of Things Semiconductor Laser Technology Enabling Opto-electronic Devices for advanced functionality e.g. 3D sensing II-VI is rapidly ramping its capacity and capability to serve the growing opto-electronic device market Early driver is growing demand for VCSELS - TAM
Slide 9: Silicon Carbide Substrates/Devices
II-VI is a world leading supplier of SiC substrates Large diameter (150mm) wafers enable economies of scale SiC for High Power Electronics Market CAGR (‘17-’21): 23% Source: Yole Other High Power Applications Green Energy (Windmill / Solar) Smart Grid Power Switching SiC for High Frequency GaN Elect
Slide 10: Vertically integrated manufacturing on optical line card products
Products on an Optical Line Card Laser Chip-on-Carrier Assembly Thermoelectric Cooler Optics Vertically integrated manufacturing footprints on world class products Vertically integrated manufacturing - Key to Scale, Quality, Functionality and Profitability 980 nm pump laser Optical channel monitor O
Slide 11: Our Recent Acquisition: Integrated Photonics
Background Spun from AT&T Bell Labs Murray Hill as Magneto Optic Materials Group in 2000 Size: ~100 people located in Hillsborough, NJ World leader in Faraday rotator crystals Strategic Rationale Further penetration of key end markets: Data center upgrades: Web 2.0 & Cloud Global Optical Network Upg
Slide 12: Financial Trends
www.ii-vi.com Financial Trends Financials Expectations Gross Margin 38% 39%-40% EBITDA 18% 18%-20% Operating Margin 11% 11%-12% FY16 FY17 Cash and Equivalents Cash Flow from Operations Long-Term Debt (Including current portion) FY16 FY14 FY15 Shareholder’s Equity $218M $175M $174M $123M $95M $129M $
Slide 13: Key Investment Considerations
Industry-Experienced Team with Deep Innovation Skills Leading Market Positions in Diverse End Markets 1 Vertically-Integrated and Scalable Manufacturing Successful Return on Investment Within 12-24 months 3 4 Significant Competitive Strengths and Differentiation for Emerging Markets 5 2 www.ii-vi.co
Slide 14: Reconciliation Tables
Reconciliation Tables $Millions (Unaudited) Three Months Ended Nine Months Ended Mar 31, 2017 Dec 31, 2016 Mar 31, 2016 Mar 31, 2017 Mar 31, 2016 Operating Income $29.0 $27.1 $19.4 $79.8 $62.9 Interest expense 1.9 1.4 0.8 4.5 2.0 Other expense(income), net (2.1) (6.1) 1.3 (9.6) (0.8) Income taxes 6.
Slide 15: II-VI: Materials That Matter
IVI MATERIALS THAT MATTER