Slide 1: Investor Presentation
INVESTOR PRESENTATION November 2024 Copyright 2024, Coherent. All rights reserved. 1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements relating to future events and expectations, including our expectations reg arding (i) our future financial and operational results; (ii) the growth and megatrends in the markets we serve including industrial, communicat
Slide 3: Coherent at a Glance
FROM A FOUNDATION OF MATERIALS AND IMAGINATION, COHERENT AT WE ENABLE EXCITING MEGATRENDS A GLANCE 1971 Year Founded COHR NYSE ≈26,000 $4.7B FY24 Employees(1) Revenue Available 2,250+ Research & Development Employees(1) $64B Market (CY2023) 3,100+ Patents(1) 126 Locations VERTICAL Materials, Compone
Slide 4: $4.7 Billion of Revenue in FY24, Well Diversified
$4.7 BILLION OF REVENUE IN FY24 WELL DIVERSIFIED ACROSS TECHNOLOGY, PRODUCTS, AND GEOGRAPHIC MARKETS Segments Markets Regions Communications North Materials America Europe Industrial Lasers 15% 29% 22% 36% BY REPORTING 48% BY MARKET BY REGION (1) 13% China SEGMENT 56% 13% 8% 49% 3% Korea & Japan 8%
Slide 5: Four Attractive Growth Markets, Aggregate $64B TAM
FOUR ATTRACTIVE GROWTH MARKETS AGGREGATE $64B TAM 14% FIVE-YEAR CAGR (2023-28) INDUSTRIAL COMMUNICATIONS ELECTRONICS INSTRUMENTATION TAM: $22B TAM: $23B TAM: $14B TAM: $5B CAGR: 9% CAGR: 14% CAGR: 20% CAGR: 8% Sources: Optech Consulting, Sources: LightCounting, Omdia, Sources: IDC, Morgan Stanley, S
Slide 6: Industrial
INDUSTRIAL MARKET VERTICALS AND MEGATRENDS PRODUCTS VALUE PROPOSITION Precision manufacturing ▪ Fiber lasers for laser welding of batteries ▪ 50 years of experience in laser technology ▪ Giga factories for EV battery processing ▪ UV lasers for OLED manufacturing ▪ Long-term technology partner across
Slide 7: Communications
COMMUNICATIONS MARKET VERTICALS AND MEGATRENDS PRODUCTS VALUE PROPOSITION Datacom ▪ 100 to 800 Gbps datacom transceivers ▪ One of the largest suppliers of optical ▪ Increasing spend on cloud infrastructure communications components ▪ Pluggable coherent transceivers ▪ Artificial Intelligence/Machine
Slide 8: Electronics
ELECTRONICS MARKET VERTICALS AND MEGATRENDS PRODUCTS VALUE PROPOSITION Consumer electronics ▪ GaAs and InP optoelectronics ▪ One of the broadest portfolios of ▪ Advanced sensing optoelectronics, optics, and electronics ▪ VCSELs and edge-emitting lasers ▪ AR/VR ▪ High-volume consumer electronics ▪ La
Slide 9: Instrumentation
INSTRUMENTATION MARKET VERTICALS AND MEGATRENDS PRODUCTS VALUE PROPOSITION Life Sciences ▪ Materials, optics, lasers, ▪ Life sciences (biotechnology, medical, and and thermoelectrics environmental) and scientific segment ▪ Smart healthcare evolution, largely based on solutions technology ▪ Component
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS Copyright 2024, Coherent. All rights reserved. 10
Slide 11: FY 2025 Non-GAAP Q1 Earnings Results Highlights
FY 2025 NON-GAAP Q1 EARNINGS RESULTS HIGHLIGHTS Revenue “I am pleased with our strong results for the first quarter of fiscal 2025. We delivered solid growth on both a sequential and year-over-year basis, driven primarily by our AI-related Datacom transceivers. We also drove higher gross margin and
Slide 12: Quarterly Revenue by Segment
QUARTERLY REVENUE BY SEGMENT REVENUE DISTRIBUTION BY SEGMENT Revenue Distribution (1) Quarterly Revenue by Segment 1,600 1,314 1,348 1,400 Lasers 1,209 1,200 1,131 26% 1,053 Materials 18% Revenue ($M) 1,000 800 600 FY25Q1 400 200 0 57% FY24Q1 FY24 Q2 FY24 Q3 FY24Q4 FY25Q1 Lasers 336 354 351 355 348
Slide 13: Quarterly Revenue by Market
QUARTERLY REVENUE BY MARKET REVENUE DISTRIBUTION BY MARKET Quarterly Revenue Trend 1,600 Revenue Distribution (1) 1,348 1,400 1,314 1,209 Industrial 1,131 1,200 1,053 Revenue ($M) Instrumentation 1,000 30% 800 7% Electronics 6% 600 400 FY25Q1 200 0 FY24Q1 FY24Q2 FY24Q3 FY24Q4 FY25Q1 Instrumentation
Slide 14: Quarterly Revenue by Region
QUARTERLY REVENUE BY REGION REVENUE DISTRIBUTION BY REGION Quarterly Revenue Trend Japan & 1,600 Korea 1,348 1,314 1,400 1,209 1,131 1,200 1,053 12% China Revenue ($M) Europe 1,000 13% 800 13% 3% Other 600 400 200 FY25Q1 0 FY24Q1 FY24Q2 FY24Q3 FY24Q4 FY25Q1 Other 27 28 30 36 37 China 132 162 154 173
Slide 15: Second Quarter Fiscal 2025 Outlook
SECOND QUARTER FISCAL 2025 OUTLOOK REVENUE $1.33 – 1.41 billion NON-GAAP GROSS MARGIN 36% – 38% NON-GAAP OPERATING EXPENSES $275 – 295 million NON-GAAP TAX RATE 19% – 22% NON-GAAP EARNINGS PER SHARE $0.61 – 0.77 (1) (1) The Company does not provide reconciliations of forward-looking Non-GAAP EPS. Th
Slide 16: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION Copyright 2024, Coherent. All rights reserved. 16
Slide 17: Gross Margin Reconciliation
GROSS MARGIN RECONCILIATION GROSS MARGIN RECONCILIATION $ Millions (Unaudited) Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Gross margin on GAAP basis 460 432 367 351 307 Share-based compensation 6 5 5 5 7 Amortization of acquired intangibles 30 30 31 30 31 Integration, site cons
Slide 18: Operating Expense Reconciliation
OPERATING EXPENSE RECONCILIATION $ Millions (Unaudited) Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 R&D on GAAP basis 132 127 128 111 114 Share-based compensation (5) (5) (5) (5) (8) Amortization of acquired intangibles (1) (1) (1) (1) (1) Start-up costs — — (1) (1) (0) Integrat
Slide 19: Income from Operations Reconciliation
INCOME FROM OPERATIONS RECONCILIATION $ Millions (Unaudited) Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Op. income (loss) on GAAP basis 75 63 22 32 (21) Share-based compensation 36 29 26 27 45 Amortization of acquired intangibles 72 72 72 72 73 Start-up costs — — 1 1 0 Restruct
Slide 20: Net Earnings Reconciliation
NET EARNINGS RECONCILIATION $ Millions (Unaudited) Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Net earnings (loss) attributable to Coherent 26 (48) (13) (27) (68) Corp. on GAAP basis Share-based compensation 36 29 26 27 45 Amortization of acquired intangibles 72 72 72 72 73 Star
Slide 21: Net Earnings per Common Share
NET EARNINGS PER COMMON SHARE $ (Unaudited) Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Net loss attributable to Coherent Corp., GAAP Basic Loss Per Share (0.04) (0.52) (0.29) (0.38) (0.65) Diluted Loss Per Share (0.04) (0.52) (0.29) (0.38) (0.65) Net earnings attributable to Co
Slide 22: Net Earnings, GAAP, and Adjusted EBITDA Reconciliation
NET EARNINGS, GAAP, AND ADJUSTED EBITDA RECONCILIATION $ Millions (Unaudited) Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Net earnings (loss) on GAAP basis 25 (47) (16) (29) (68) Income taxes (benefit) (6) 57 (16) (9) (21) Depreciation and amortization 138 144 140 138 138 Intere
Slide 23: Coherent
COHERENT