Coherent Corp. · NYSE:COHR
Coherent — II-VI — Investor Presentation (February 2018)
26 slides from Coherent's investor presentation, Feb 2, 2018
Slide 1: Investor Presentation February 2018
INVESTOR PRESENTATION February 2018 IIVI Exhibit 99.1
Slide 2: Safe Harbor Statement
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
Slide 3: Origins of Our Company Name
Origins of Our Company Name Refers to groups II and VI of the Periodic Table of Elements. “TWO SIX” S Sulfur Se Selenium Zn Zinc Te Tellurium Cd Cadmium
Slide 4: We Started in Saxonburg, PA
1971 1987 2017 IPO 30th Anniversary since the IPO We Started In Saxonburg, PA Francis J. Kramer(Left) and Dr. Carl J. Johnson(Right) Saxonburg Campus in 1997 Pittsburgh Saxonburg Since 1971
Slide 5: Our Footprint
Our Footprint 14 Countries 44 Worldwide Locations 10,000+ Worldwide employee World Headquarters Manufacturing and R&D Facilities Global Sales Offices North America Europe Asia 2,000+ 500+ 7,500+
Slide 6: Our Company Structure
Our Company Structure Laser Solutions Photonics Performance Products
Slide 7: Vertically Integrated Manufacturing Platforms
Vertically Integrated Manufacturing Platforms Industrial Materials Processing Optical & Wireless Communications Advanced Materials & Military 3D Sensing & IoT Emerging Technologies
Slide 8: How We Use Our Platforms to Serve Our End Markets
How We Use Our Platforms to Serve Our End Markets Industrial Materials Processing Optical & Wireless Communications Advanced Materials & Military 3D Sensing & IoT Emerging Technologies Reported Segments FY17 Revenue Q2FY18 Revenue Q2FY18 Op Margin – GAAP Q2FY18/ Q2FY17 Revenue Growth Industrial (Aut
Slide 9: Over Decades of Continuous Growth
Over 4 Decades of Continuous Growth Micro-optics Vergo Optics Micro-optics Lighting Optical ZnSe Growth Laser Power Corp Silicon Carbide Litton SIC Group UV Filters Laser Power Corp Thermo-electric Coolers Marlow Industries Selenium Refinery Pacific Rare Metals Laser Processing Heads Highyag Micro-o
Slide 10: Recent Platform Acquisitions
Recent Platform Acquisitions COMPOUND SEMICONDUCTOR LASERS COMPOUND SEMICONDUCTOR DEVICES: AIMING BEYOND LASERS VERTICAL INTEGRATION & SCALE OPTICAL COMMUNICATIONS & ACCESS TO CHINA MARKET 2010 2013 2016 2017
Slide 11: Megatrends
Megatrends Ubiquitous Connectivity Big Data Internet of Things Renewable Energy Industry 4.0 Next Generation Defense Systems Low Emission Vehicles Consumer Electronics Robotics
Slide 12: SiC Substrates for Wireless Communications
SiC Substrates for Wireless Communications Share of the Projected Annual $200 Billion Investment In 5G by Country Starting Around Year 2020 US28% China23% Japan11% Germany4% U.K.3% Source: Bloomberg Business Week SiC for High Frequency GaN Electronics Market CAGR (‘17-’22): +15% Source: Yole
Slide 13: SiC Substrates for Power Electronics
SiC Substrates for Power Electronics Electric Car Announcements GM20 all electric cars by 2023 Ford13 models by 2023 Toyota & MazdaU.S.-based plant by 2021 Daimler /Mercedes-BenzElectrify entire portfolio by 2022 Renault/Nissan/Mitsubishi12 All-Electric cars by 2022 Jaguar Land Rover Electrify (HEV/
Slide 14: Laser & Micro-optics for 3D Sensing
Laser & Micro-optics for 3D Sensing * VCSEL: Vertical Cavity Surface Emitting Lasers VCSEL Market CAGR (’15-’22): +19% Source: Markets & Markets
Slide 15: Opto-Electronics for LiDAR
Tesla 2017 GM 2018 Hyundai 2020 Renault-Nissan 2020 Toyota 2020 Opto-Electronics for LiDAR Laser Diodes for LiDAR Market (’17-’22): +20% Source: Strategies Unlimited Self-driving car availability by car manufacturer Volvo 2020 Daimler 2020 BMW 2021 Ford 2021 Honda 2025 Source: AXIOS
Slide 16: Laser Optics & Precision Ceramics for EUV Lithography
EUV Lithography System EUV Source System CO2 System Front/Back End Processing System Beam Transport System Laser Optics & Precision Ceramics for Extreme Ultraviolet (EUV) Lithography EUV Lithography Systems Market CAGR (‘16-‘22): 9% Source: Allied Market Research
Slide 17: Differentiated Product Portfolio for Industrial Lasers
Differentiated Product Portfolio for Industrial Lasers Fiber Lasers Direct diode Lasers Fiber Lasers Market CAGR (‘17-‘22): +8% Direct Diode Market CAGR (‘17-‘22): +7% Source: Strategies Unlimited Laser Remote Welding Head Direct Diode Laser Engine Broad portfolio of components including: pump laser
Slide 18: Optics & Optoelectronics for Datacenters
Optics & Optoelectronics for Datacenters Datacom Optical Components Market CAGR (’17-‘22): +25% Z-Block
Slide 19: Leading Edge Subsystems for Intelligent Communications Networks
Leading Edge Subsystems for Intelligent Communications Networks Laser Chip-on-Carrier Assembly Thermoelectric Cooler Optics Optical Channel Monitor OTDR Passive Components Optical Amplifier Optical Communications Market CAGR (’15-’21): +12% Source: Ovum
Slide 20: Engineered Materials, High Energy Laser and Optics for Military & Aerospace
Engineered Materials, High Energy Laser and Optics for Military & Aerospace World leader in large sapphire panel output 24,000 sf dedicated facility F-35 Electro-Optical Targeting System (EOTS) Infrared Countermeasure Systems Market CAGR (’17-’22): +8% Source: Strategies Unlimited
Slide 21: Innovation Strategy
Innovation Strategy BEST PRODUCT Process Intensive Vertical Integration Diversified per Platforms Engineered Materials Valued By Customers Capital Intensive Markets Differentiation Performance Products Infrastructure Business Model
Slide 22: Financials Expectations
Financials 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 6M FY18 $254M $60M $463M $964M Page 15 details typical indu
Slide 23: Materials That Matter
MATERIALS THAT MATTER’ y rl IVE | wwwievicom == 7 /f— 7 LAW M4
Slide 24: Reconciliation Tables
Reconciliation Tables Three Months Ended Year Ended Dec 31, 2017 Sept 30, 2017 Dec 31, 2016 Dec 31, 2017 Dec 31, 2016 Operating Income $32.5 $29.8 $27.1 $62.3 $50.8 Interest Expense 4.7 3.6 1.4 8.3 2.6 Other expense (income), net (2.0) (0.7) (6.1) (2.7) (7.5) Income taxes 20.2 5.8 7.9 26 15.5 Net Ea
Slide 25: II-VI Reports GAAP EPS: Summary of Typical Industry Adjustments
II-VI Reports GAAP EPS II-VI Consolidated Summary of Typical Industry Adjustments Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 GAAP Gross Margin 87.5 94.3 97.8 108.7 105.9 109.5 Shared Based Comp 0.7 0.6 0.7 0.5 1.0 1.0 Operation Dilution (Inv roll through) - - - 0.2 1.0 1.0 Peer Comparable Gross
Slide 26: Materials That Matter
IVI MATERIALS THAT MATTER™