Coherent Corp. · NYSE:COHR
Coherent — II-VI — Investor Presentation (August 2022)
34 slides from Coherent's investor presentation, Aug 24, 2022
Slide 1: Investor Presentation
August 24, 2022 Investor Presentation Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements relating to future events and expectations that are based on certain assumptions and contingencies. The forward-looking statements are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigatio
Slide 3: II-VI/Coherent Combination at a Glance
Proforma revenue combines II-VI FY22 revenue (as of FYE 6/30/22) and Coherent 6/30/22 TTM. As of July 1, 2022 Vertically Integrated Model II-VI/Coherent Combination at a Glance 4,500+ Employees(2) 28,000+ Employees(2) 3,000+ Patents(2) Engineering & Technology FY22 Revenue(1) $4.8B Available Market(
Slide 4: $4.8 Billion Proforma Revenue in FY22
$4.8 Billion Proforma(1) Revenue in FY22 Proforma revenue combines II-VI FY22 revenue (as of FYE 6/30/22) and Coherent 6/30/22 TTM. II-VI Incorporated revenue by region is based on customer headquarter address; Coherent, Inc. revenue by region is based on customer ship to address. Communications Ind
Slide 5: Building Momentum for Years
Building Momentum for 50 Years One of the largest photonics and compound semiconductor companies Materials expertise drives differentiation in multiple growing markets Vertically integrated, diverse global manufacturing footprint History of insightful targeting and successful integration of strategi
Slide 6: Q4 FY22 Financial Highlights
Communications Industrial Q4 FY22 Financial Highlights(1) Semiconductor Capital Equipment Life Sciences Aerospace & Defense Consumer Electronics Japan Other North America Automotive & Other Revenue by Region(2) Revenue by End Market Revenue $887M China Europe Q4 FY22 GAAP Non-GAAP Operating Income $
Slide 7: Attractive and Increasing Operating Margins
Attractive and Increasing Operating Margins All non-GAAP amounts exclude certain adjustments for share-based compensation, acquired intangible amortization expense, certain one-time transaction expenses, debt extinguishment expense, fair value measurement period adjustments and restructuring and rel
Slide 8: History of Insightful Targeting and Successful Integration of Strategic Acquisitions
History of Insightful Targeting and Successful Integration of Strategic Acquisitions 10 Years of Continuous Revenue Growth CAGR 20% 2010 - Optical networks & China market 2013 - Gallium arsenide technology platform 2016 - Epitaxial wafer and SiC electronic devices 2019 - Indium phosphide technology
Slide 9: Three Reporting Segments
Three Reporting Segments Materials Networking Lasers Innovations that resonate
Slide 10: Catalyzing Growth from Curiosity and Innovation
Catalyzing Growth from Curiosity and Innovation Combined R&D and capex spend expected to be highest in industry and to accelerate breakthroughs, time-to-market and time-to-scale advantages Increased scale improves competitiveness and drives more strategic dialogue with customers Will enable better a
Slide 11: Focus on Four Markets with a Combined $65B in TAM
Simplifying and Strengthening our Focus on Four Markets with a Combined $65B in TAM Industrial Communications Electronics Instrumentation TAM: $28B CAGR: 13% TAM: $21B CAGR: 12% TAM: $11B CAGR: 17% TAM: $5B CAGR: 7% Note: TAM based on CY2022; CAGR based on 2022-27 timeframe. Sources: LightCounting,
Slide 12: The Industrial Market
The Industrial Market 50 years of experience in laser technology Long term technology partner across all laser architectures Broadest spectrum of laser and systems technologies Productivity enhancement through innovation and knowhow Superior equipment and process quality Comprehensive service suppor
Slide 13: The Communications Market
The Communications Market Largest supplier of optical communications components Vertically integrated from material through subsystems Industry pioneer in broad range of technology platforms Industry leading investments in R&D Global and flexible manufacturing footprint 100 to 800 Gbps Datacom Trans
Slide 14: The Electronics Market
The Electronics Market Broadest portfolio optoelectronics, optics, and electronics High-volume consumer electronics experience 6 inch gallium arsenide platform 200 mm silicon carbide platform World-class indium phosphide platform Decades of investment in high quality silicon carbide substrates Inves
Slide 15: The Instrumentation Market
The Instrumentation Market Biotechnology, medical, scientific segment solutions Custom solutions from proof-of-concept to manufacturing at scale Rapid time to market of complete turnkey systems or subsystems Broad product portfolio to support a wide range of applications Extensive technology innovat
Slide 16: Coherent Acquisition
Coherent Acquisition
Slide 17: Significant Value Creation Potential from Coherent Synergies
Significant Value Creation Potential from Coherent Synergies Expected Synergies within 3 years Cost of Goods Sold Supply chain management – procurement Infeed – Internal supply of enabling materials and components Operational efficiencies at scale $150M Operating Expenses More efficient R&D with sca
Slide 18: Well Capitalized for Future Growth
Well Capitalized for Future Growth1 External Financing Sources Debt $4.00 billion senior secured facilities allocated and priced $990 million notes issued Convertible Preferred Equity $2.15 billion commitment from Bain Capital, $750 million of which has been received Coupon: 5%, 4-year payable-in-ki
Slide 19: Financial Appendix
Financial Appendix
Slide 20: End Market Distribution of Full Year FY21 Revenue
End Market Distribution of Full Year FY21 Revenue Reported Segments FY21 Revenue FY21 Op Margin – GAAP / Non-GAAP FY21/FY20 Revenue Growth Proforma(1) FY21/FY20 Revenue Growth Communica-tions Industrial Aerospace & Defense Semi Cap Life Sciences, Consumer, Automotive, Other Photonic Solutions $2,038
Slide 21: End Market Distribution of Q4FY22 Revenue
End Market Distribution of Q4FY22 QTD Revenue Reported Segments Q4FY21 Revenue Q4FY22 Revenue Q4FY22 Op Margin – GAAP / Non-GAAP Q4FY22/ Q4FY21 Revenue Growth Communica-tions Industrial Aerospace & Defense Semi Cap Life Sciences, Consumer, Automotive, Other Photonic Solutions $550M $597M 12% / 15% 9
Slide 22: End Market Distribution of Full Year FY22 Revenue
End Market Distribution of Full Year FY22 Revenue Reported Segments FY21 Revenue FY22 Revenue FY22 Op Margin – GAAP / Non-GAAP FY22/FY21 Revenue Growth Communica-tions Industrial Aerospace & Defense Semi Cap Life Sciences, Consumer, Automotive, Other Photonic Solutions $2,038M $2,226M 10% / 15% 9% 9
Slide 23: Mapping Into Four Markets
Mapping Into Four Markets COMMUNICATIONS INDUSTRIAL INSTRUMENTATION Precision Manufacturing Semiconductor Capital Equipment Display Capital Equipment Aerospace & Defense Communications Life Sciences Scientific Instrumentation ELECTRONICS Wireless Consumer Electronics Automotive Communications Optica
Slide 24: FY22 Revenue by FY23 Market Segments
FY22 Revenue by FY23 Market Segments End Market Distribution of Full Year FY22 Revenue Companies FY22 Revenue Communications Industrial Electronics Instrumentation II-VI Incorporated $3,317M 65% 21% 10% 4% Coherent, Inc.(1) $1,520M(1) 0% 75% 0% 25% Proforma Combined(2) $4,837M(2) 45% 38% 7% 10% Cohe
Slide 25: Hypothetical Illustration of EPS Calculation
Hypothetical Illustration of EPS Calculation
Slide 26: Reconciliation of GAAP Measures to Non-GAAP Measures
Reconciliation of GAAP Measures to Non-GAAP Measures Reconciliation of Segment Non-GAAP Operating Income (Loss) to GAAP Segment Operating Income (Loss) $ Millions (Unaudited) Three Months Ended Year Ended Jun 30, Mar 31, Jun 30, Jun 30, Jun 30, 2022 2022 2021 2022 2021 Non-GAAP Photonic Solutions Op
Slide 27: Reconciliation of GAAP Measures to Non-GAAP Measures
Reconciliation of GAAP Measures to Non-GAAP Measures
Slide 28: Reconciliation of GAAP Measures to Non-GAAP Measures
Reconciliation of GAAP Measures to Non-GAAP Measures
Slide 29: Reconciliation of GAAP Measures to Non-GAAP Measures
Reconciliation of GAAP Measures to Non-GAAP Measures Reconciliation of GAAP Measures to non-GAAP Measures $ Millions (Unaudited) Three Months Ended Year Ended Jun 30, Mar 31, Jun 30, Jun 30, Jun 30, 2022 2022 2021 2022 2021 Revenue $887.0 $827.7 $808.0 $3,316.6 $3,105.9 Gross profit on GAAP basis $3
Slide 30: Reconciliation of GAAP Measures to Non-GAAP Measures
Reconciliation of GAAP Measures to Non-GAAP Measures
Slide 31: Reconciliation of GAAP Measures to Non-GAAP Measures
Note: Dollars in millions. Q1 FY20 represents quarter ending October July 28, 2019. Reconciliation of GAAP Measures to Non-GAAP Measures Three Months Ended 7/28/19 (Last Finisar Stand Alone Report)
Slide 32: Reconciliation of GAAP Measures to Non-GAAP Measures
Reconciliation of GAAP Measures to Non-GAAP Measures
Slide 33: Reconciliation of GAAP Measures to Non-GAAP Measures
Reconciliation of GAAP Measures to Non-GAAP Measures
Slide 34: Materials That Matter
IEVI MATERIALS THAT MATTER