Slide 1: Investor Presentation Second Quarter Fiscal 2025
INVESTOR PRESENTATION Second Quarter Fiscal 2025 February 2025 Copyright 2025, 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 regarding (i) the growth, megatrends, and value proposition in the markets we serve including industrial, communications, electronics, and instrumen
Slide 3: Gross Margin and Earnings Per Common Share GAAP to Non-GAAP Reconciliations
GROSS MARGIN AND EARNINGS PER COMMON SHARE GAAP TO NON-GAAP RECONCILIATIONS Copyright 2025, Coherent. All rights reserved. 3
Slide 4: Coherent at a Glance
FROM A FOUNDATION OF MATERIALS AND IMAGINATION, COHERENT AT WE ENABLE EXCITING MEGATRENDS A GLANCE 1971 Year Founded COHR NYSE FY24 ≈26,000 Employees(1) $4.7B Revenue Available 2,250+ Research & Development Employees(1) $64B Market (CY2023) 3,100+ Patents(1) 126 Locations Materials, Components, VERT
Slide 5: $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 Industrial America Europe Lasers 15% 29% 22% 36% BY REPORTING 48% BY MARKET BY REGION(1) 13% China SEGMENT 56% 8% 13% 49% Korea & Japan 8% 3% I
Slide 6: 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 7: 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 8: 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 9: 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 10: 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 11: Financial Highlights
FINANCIAL HIGHLIGHTS Copyright 2025, Coherent. All rights reserved. 11
Slide 12: FY 2025 Non-GAAP Q2 Earnings Results Highlights
FY 2025 NON-GAAP Q2 EARNINGS RESULTS HIGHLIGHTS Revenue “We delivered strong growth in the December quarter on both a sequential and year-over-year basis, resulting in record revenue, driven by another quarter of strong AI-related Data Center 27% demand as well as growth in our Telecom business. We
Slide 13: Quarterly Revenue by Segment
QUARTERLY REVENUE BY SEGMENT REVENUE DISTRIBUTION BY SEGMENT Revenue Distribution (1) Quarterly Revenue by Segment 1,600 1,435 1,314 1,348 1,400 Lasers 1,209 1,200 1,131 26% 17% Materials Revenue ($M) 1,000 800 600 FY25Q2 400 200 0 57% FY24Q2 FY24Q3 FY24Q4 FY25Q1 FY25Q2 Lasers 354 351 355 348 375 Ne
Slide 14: Quarterly Revenue by Market
QUARTERLY REVENUE BY MARKET REVENUE DISTRIBUTION BY MARKET Quarterly Revenue Trend 1,600 1,435 Revenue Distribution (1) 1,348 1,400 1,314 1,209 Industrial 1,131 1,200 Instrumentation Revenue ($M) 1,000 31% 7% 800 Electronics 5% 600 400 FY25Q2 200 0 FY24Q2 FY24Q3 FY24Q4 FY25Q1 FY25Q2 Instrumentation
Slide 15: Third Quarter Fiscal 2025 Outlook
THIRD QUARTER FISCAL 2025 OUTLOOK REVENUE $1.39 – 1.48 billion NON-GAAP GROSS MARGIN 37% – 39% NON-GAAP OPERATING EXPENSES $285 – 305 million NON-GAAP TAX RATE 17% – 19% NON-GAAP EARNINGS PER SHARE $0.75 – 0.95(1) (1) The Company does not provide reconciliations of forward-looking Non-GAAP EPS. The
Slide 16: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION Copyright 2025, Coherent. All rights reserved. 16
Slide 17: Gross Margin Reconciliation
GROSS MARGIN RECONCILIATION Copyright 2025, Coherent. All rights reserved. 17
Slide 18: Operating Expense Reconciliation
OPERATING EXPENSE RECONCILIATION Copyright 2025, Coherent. All rights reserved. 18
Slide 19: Income from Operations Reconciliation
INCOME FROM OPERATIONS RECONCILIATION Copyright 2025, Coherent. All rights reserved. 19
Slide 20: Net Earnings Reconciliation
NET EARNINGS RECONCILIATION Copyright 2025, Coherent. All rights reserved. 20
Slide 21: Net Earnings Per Common Share
NET EARNINGS PER COMMON SHARE Copyright 2025, Coherent. All rights reserved. 21
Slide 22: Coherent
COHERENT