Viavi Solutions Inc. · NASDAQ:VIAV
Viavi Solutions — William Blair Growth Stock Conference 2017
21 slides from Viavi Solutions's conference presentation, Jun 14, 2017
Slide 1: Viavi Solutions
Viavi Solutions William Blair Growth Stock Conference June 14, 2017
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements under Section 27A of the Securities Act of 1934. Forward-looking statements are all statements we make other than those dealing specifically with historical matters. Please refer to the Company’s filings with the Securities
Slide 3: Viavi – Company Overview
Viavi – Company Overview ▪ Leader in Network Test & Measurement Solutions and Optical Security and Performance Products Segment mix ▪ Formerly known as JDSU prior to the spin-off of Lumentum on 8/1/15 (Optical components business) OSP NSE ▪ LTM* Revenue of $837M 28% 72% $837M Our Network and Service
Slide 4: Segment Overview: Network and Service Enablement (NSE)
Segment Overview Network and Service Enablement (NSE) www.viavisolutions.com © 2017 Viavi Solutions Inc. 4
Slide 5: Network and Service Enablement Overview
Network and Service Enablement Overview Product Overview Strong Global Market Position in Instruments† Network Planning, Test & Certification ▪ Cell site test; copper, WiFi, broadband test ▪ Virtualized network test functions #1 in Metro #1 in Access Lab & Production Test ▪ Optical manufacturing tes
Slide 6: NSE Market Opportunity
NSE Market Opportunity Proven Market Strategy ▪ Support customers from lab development to in-the-field deployment ▪ Network visibility that provides broad capabilities and deep analytics ▪ Enhanced customer experience with integrated and cloud-enabled instruments, software and services Market size*
Slide 7: "Big NE, Focused SE" Strategy Targets Optimization of Physical & Virtual Networks
“Big NE, Focused SE” Strategy Targets Optimization of Physical & Virtual SP and Enterprise Networks Focused SE – SP/Enterprise/Cloud Virtual Networking & Broadband User Experience • Virtualized Instruments-based NW Test/Assurance • High Market growth • Leverage #1 Physical Instrument Installed Base
Slide 8: Segment Overview: Optical Security and Performance Products (OSP)
Segment Overview Optical Security and Performance Products (OSP) www.viavisolutions.com © 2017 Viavi Solutions Inc. 8
Slide 9: Optical Security and Performance Products Overview
Optical Security and Performance Products Overview Product and Applications Overview Anti-counterfeiting Custom Optical Filters Custom Color Solutions ▪ Security pigments / thread substrates ▪ Light / optic sensor filters ▪ Cosmetic additives to paint ▪ Supplier for bank note printing ▪ Primary appl
Slide 10: OSP: Anti-counterfeiting - Defend and Expand Core
OSP: Anti-counterfeiting- Defend and Expand Core ▪ Proprietary technology enabling banknote features that are difficult to counterfeit TM OVP ▪ Proprietary high volume manufacturing process and high security supply chain ▪ Long term strategic customer partnerships ▪ Trusted partner for currency in m
Slide 11: OSP: Optical Coatings - Diversify in High-Value AMI Segments
OSP: Optical Coatings- Diversify in High-Value AMI* Segments Effect Pigments Sensors and Display ▪ Unique special effect pigments ▪ Sensor technology for natural user interface, blind spot monitoring ▪ Color design services ▪ Display technology for anti-reflective coatings, ambient light ▪ Color tre
Slide 12: OSP: 3D Sensing - Emerging Technology for High-Volume Consumer Applications
OSP: 3D Sensing-Emerging Technology for High-Volume Consumer Applications Opportunities ▪ Unique, protected IP and know- how in 3D sensing filters Proximity, ambient light, and UV sensors ▪ Strategic partnerships with major consumer electronics OEMs Front Camera ▪ Current and future 3D Sensing, RGB
Slide 13: Financials
Financials www.viavisolutions.com © 2016 2017 Viavi Solutions Inc. 13
Slide 14: Disciplined Execution Drove Profit Growth & Operating Margin Expansion
Disciplined Execution Drove Profit Growth & Operating Margin Expansion Revenue and Profitability Non-GAAP Margins ($M) Revenue Non-GAAP Operating Income Non-GAAP $906 Gross $874 63.8% $837 63.1% 62.6% Margin 60% 40% 20% 12.8% 12.9% Non-GAAP $116 Operating $108 7.8% $68 Margin 0% FY15 FY16 LTM* FY15
Slide 15: Operational Efficiency is Ongoing
Operational Efficiency is Ongoing Several initiatives in the OPEX efficiency funnel ▪ Automation of standardized processes ▪ Simplification and standardization of business Long-Term processes (Quote-to-Cash, Procure-to-Pay) ▪ Real estate consolidation Mid-Term ▪ Legal entity rationalization ▪ Higher
Slide 16: Capital Structure and Allocation Priorities
Our Capital Structure and Allocation Priorities are Aligned to Our Operational and Financial Strategy Cash Flow As of Capital Structure 4/1/17 Net Cash from Operations Net Cash,Cash Restricted Maintenance and Run-Rate Investments Cash and ST $1,455M 1 ▪ OPEX Investments ▪ CAPEX Organic Investments i
Slide 17: Company Strategy/Summary
Company Strategy/Summary Vision Aim to be #1 or a strong #2 in all market segments where we compete Market leadership in Network Enablement (NE) reinforced by highly focused Service Enablement (SE) ▪ Scale NE through share gain, consolidation, and expansion into NSE adjacent markets Strategy ▪ Scale
Slide 18: Appendix
Appendix www.viavisolutions.com © 2016 2017 Viavi Solutions Inc. 18
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations Non-GAAP Gross Profit FY15 FY16 LTM 4/1/17 Non-GAAP Gross Profit 557 572 524 Stock-Based Compensation (4) (5) (4) Amortization of Intangibles (32) (17) (15) Other Charges related to Non-recurring activities (1) (0) (2) GAAP Gross Profit as reported 520 550 503 Non-GAAP Opera
Slide 20: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) Adjusted EBITDA FY15 FY16 LTM 4/1/17 Adjusted EBITDA from continuing operations 105 150 138 Costs related to restructuring and related charges (27) (11) (29) Costs related to stock-based compensation (47) (42) (34) Impairment of goodwill 0 (91) (91) Other charges
Slide 21: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) Adjusted cash flow from operations FY15* FY16 LTM 4/1/17 Adjusted cash flow from operations 117 105 92 Spin and Restructuring related cash outflows (35) (52) (28) Cash flow from operations as reported 82 53 64 Adjusted Free cash flow FY15* FY16 LTM 4/1/17 Adjuste
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