Coherent Corp. · NYSE:COHR
Coherent — Investor Presentation (June 2006)
15 slides from Coherent's investor presentation, June 2006
Slide 1: Second Quarter 2006 Corporate Presentation
Second Quarter 2006 Corporate Presentation
Slide 2: Safe Harbor Statement
Safe Harbor Statement The statements in this presentation that relate to future plans, events or performance are forward- looking statements that involve risks and uncertainties, including risks associated with uncertainties related to the consummation of the merger with Excel, integration risks in
Slide 3: The Photonics Company
The Photonics Company Provider of Photonics* Solutions, Primarily Lasers, for Commercial and Scientific Research Applications Founded in 1966 Sales $536.0 Million (ttm) Orders $565.2 Million (ttm) ~2200 Employees Sales 33% U.S.; 67% R.O.W. (ttm) As of 4/01/06 *Photonics is the Merger of Lasers, Opti
Slide 4: Our Strategy & Objectives
Our Strategy & Objectives Leverage the Depth & Breadth of our Technology Portfolio to Optimize Growth and Performance Drive a Revolution in Compact Solid-State Light Sources Create New Markets through Internal and Independent Application Development Complement Internal Product/Market Develop
Slide 5: Geographic Sales Distribution
Geographic Sales Distribution $536.0 Million (ttm as of 4/01/06) Europe 29% United States 33% 32% 6% Asia Pacific R.O.W. Coherent Confidential Information
Slide 6: Order Mix
Order Mix $565.2 Million (ttm as of 4/01/06) Materials Processing OEM Components 13% & Instrumentation Microelectronics 23% 35% 22% 7% Scientific Research Graphic Arts & Display & Gov. Programs Q2’06 Orders Up 13% from Prior Year Period, Increased 11% Sequentially Coherent Confidential Information
Slide 7: Income Statement at a Glance
Income Statement at a Glance Q2’06 Income Statement Revenue & EBITDA ($mm) ($mm) Q2’06 YTD FY’06 $600.0 $516.3 Revenue $146.0 $277.0 $495.0 $500.0 Gross Margin 43.7% 43.3% $400.0 R&D 13.2% 12.2% $300.0 $277.0 SG&A 22.0% 22.2% $200.0 Net Income $8.2* $17.5* $100.0 $62.3 $71.1 $37.2 $0.0 2004 2005 YTD
Slide 8: Aggressive Pursuit of Gross Margin Improvement
Aggressive Pursuit of Gross Margin Improvement 45% 40% 35% 30% 25% FY'03 FY'04 FY'05 Q1'06 Q2'06 Note: FY’05 Gross Margin Excluding Litho Charge 43.9%, Including Charge 42.2% Coherent Confidential Information
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights Q2’06 Q4’05 Q2’05 Current Ratio 6.5:1 4.4:1 4.6:1 Debt to Equity 0.33:1 0.02:1 0.04:1 Unrestricted $429.1 $230.9 $212.5 Cash Working Capital $591.3 $380.1 $377.9 DSO AR 61 59 62 Inventory 59 69 75 As of 4/01/06 Coherent Confidential Information
Slide 10: Generating Increasing Cash from Operations
Generating Increasing Cash from Operations $M 100 $92.7M 90 80 $69.1M 70 60 50 40 30 $20.5M 20 $12.8M 10 0 FY'04 FY'05 Q1'06 Q2'06* *Q2’06 Cash Flow Estimated Coherent Confidential Information
Slide 11: Merger Agreement with Excel Technology
February 21, 2006 - Coherent Announced Signing of Merger Agreement with Excel Technology for Approximately $362 Million, Exclusive of Fees, Transaction Costs and Buy-out of Options A Global Leader of Laser-based Solutions for a Wide Range of Applications/End Markets Consideration: $30.00 Per Sha
Slide 12: Rationale for the Transaction
Rationale for the Transaction The Combination Creates a Global Market Leader in Photonics for a Wide Range of Commercial and Scientific Applications Together a Leading Provider of Materials Processing Solutions in a Market with Excellent Long-term Growth Prospects Coherent Provides Enhanced Di
Slide 13: Overview of Excel Technology, Inc.
Overview of Excel Technology, Inc. Overview Revenue & EBITDA A Worldwide Leader in Laser Systems and Electro-optical Components ($mm) $136.6 $137.7 $140.0 Serves the Materials Processing, Semiconductor, Biomedical, Scientific, and $122.7 Other Industrial Markets $120.0 Founded in 1985 and Head
Slide 14: Financially Accretive Transaction
Financially Accretive Transaction Modestly Accretive on a Non-GAAP Basis in the Fourth Fiscal Quarter 2006 Potential to be Meaningfully Accretive on a Non-GAAP Basis for the First Full Fiscal Year Ending September 2007 Expected Benefits from Economies of Scale in Distribution, R&D, Administrat
Slide 15: Offering Summary
Offering Summary Issuer: Coherent, Inc. Offering Size: $200.0mm Type of Security Offered: Subordinated Convertible Notes Coupon: 2.75% Conversion Premium: 30% Final Maturity: 2011 Call Features: Non-Callable for Full 5-Year Term Put Features: N/A Structural Features: Net Share Settlement Closing Dat