Coherent Corp. · NYSE:COHR
Coherent — II-VI — Q3 FY2020 Earnings Presentation
25 slides from Coherent's earnings presentation, May 11, 2020
Slide 1: May 2020 Investor Update
Copyright 2020, II - VI Incorporated. All rights reserved. May 2020 Investor Update
Slide 2: Safe Harbor Statement
Page 2 Copyright 2020, II - VI Incorporated. All rights reserved. Safe Harbor Statement This document contains forward - looking statements relating to future events and expectations that are based on certain assumptio ns and contingencies. The forward - looking statements are made pursuant to the s
Slide 3: Q3 FY2020 Overview
Page 3 Copyright 2020, II - VI Incorporated. All rights reserved. Q3 FY2020 Overview 18 Countries 69 Locations 22,000+ Employees $388M Cash and Equivalents $627M Revenue $120M YTD Cash Flow from Operations 11% 68% Revenue by End Markets 5% Semi. Cap. Equip. 2% Life Science 6% Consumer Electronics 1%
Slide 4: Thousands of Customers Across Diverse Markets
Page 4 Copyright 2020, II - VI Incorporated. All rights reserved. Sampling of representative customers based on approvals for public release Thousands of Customers Across Diverse Markets
Slide 5: Core Strategy
Page 5 Copyright 2020, II - VI Incorporated. All rights reserved. Core Strategy Diversified per Platform Capital Intensive Markets ▪ A Leader in engineered materials and optoelectronic devices ▪ Differentiated lasers, optics, and integrated circuits ▪ Enabling the convergence of communications, comp
Slide 6: Revenue Growth & Transformative Acquisitions
Page 6 Copyright 2020, II - VI Incorporated. All rights reserved. $333 $487 $516 $551 $683 $742 $827 $972 $1,158 $1,362 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 NASDAQ S&P 500 10 Years of continuous revenue growth 4 Transformative Acquisitions Stock charts represent relative growth in value
Slide 7: Product platforms and acquired technologies
Page 7 Copyright 2020, II - VI Incorporated. All rights reserved. Semiconductor Lasers Oclaro Semiconductor Laser Optical Amplifiers Oclaro Optical Amplifier Advanced Coatings Oclaro Optical Coatings Aerospace & Defense Optical Systems LightWorks Optics Precision Ceramics M Cubed Technologies Optica
Slide 8: Addressing Multiple Strong and Growing Markets
Page 8 Copyright 2020, II - VI Incorporated. All rights reserved. Aerospace & Defense RF and Power Electronics Optical Communications 3D Sensing & LiDAR $7.5B CY25 Market For 3D sensing in consumer electronics & LiDAR in automotive For terrestrial, undersea, wireless optical infrastructure and datac
Slide 9: #1 in Optical Communications
Page 9 Copyright 2020, II - VI Incorporated. All rights reserved. #1 in Optical Communications* Telecom Datacom Long Haul, Metro, and Datacenter Interconnects A highly complementary and complete portfolio of leading - edge products Subsea ROADMs Transmission * Ovum
Slide 10: Growth Opportunities in 5G Mobile Infrastructure
Page 10 Copyright 2020, II - VI Incorporated. All rights reserved. 5G RADIO ACCESS 5G OPTICAL ACCESS Backbone Network Front - & Backhaul Network Base Stations Handsets Photonic Solutions Segment Compound Semiconductors Segments GaAs RF GaN / SiC RF Line Cards Amplifiers OCM/OTDR LPC WSS Subsystems B
Slide 11: Indium Phosphide Target Markets
Page 11 Copyright 2020, II - VI Incorporated. All rights reserved. Indium Phosphide Target Markets Datacom Components Telecom Components ▪ 25G and 50G DFB Lasers ▪ 50G and 100G EML ▪ Lasers for Silicon Photonics Externally Modulated Laser (EML) Externally Modulated Tunable Laser ▪ 10G and 25G Tunabl
Slide 12: Lasers for Materials Processing & EUV
Page 12 Copyright 2020, II - VI Incorporated. All rights reserved. CO2 LASER OPTICS FUSED SILICA LASER OPTICS SAPPHIRE LASER OPTICS DEFORMABLE MIRORS LASER MODULES LASER BARS DIRECT DIODE LASERS LASER LIGHT CABLES CUTTING HEADS WELDING HEADS Lasers for Materials Processing & EUV Strong demand for la
Slide 13: Aerospace & Defense
Page 13 Copyright 2020, II - VI Incorporated. All rights reserved. Aerospace & Defense Significant new opportunities ahead STRONG ABILITY TO DIFFERENTIATE THE END SOLUTION Advanced Materials Semiconductor Lasers Electro - Optic Subsystems MARKETS PRODUCTS DIFFERENTIATORS Intelligence Surveillance &
Slide 14: 3D Sensing & LiDAR
Page 14 Copyright 2020, II - VI Incorporated. All rights reserved. 3D Sensing & LiDAR ▪ Market drivers • Face biometrics, augmented reality, automotive in - cabin & LiDAR, machine vision • Revenue tripled year - over - year in Q3 FY2020 ▪ The only in - house 150 mm GaAs VCSEL platform in the U.S. •
Slide 15: Enabling Electrification & Mobility
Page 15 Copyright 2020, II - VI Incorporated. All rights reserved. Remote Radio Head Beam - forming Antenna 5G WIRELESS 4G WIRELESS Bi - Directional Converter/ Inverter/ Electric Motor DC - DC Converter Electric Charger / HV Battery Enabling Electrification & Mobility EV/HEV GREEN ENERGY Solar & Win
Slide 16: Financial Update
Financial Update
Slide 17: Key Statistics for Modeling FY20
Page 17 Copyright 2020, II - VI Incorporated. All rights reserved. Summary of Q1FY20 Main Points Key Statistics for Modeling FY20 on II - VI Consolidated Item Preliminary Amount Estimated for FY20 Comments Depreciation Amortization Inventory Step Up $174M of Depreciation $84M of Amortization $88M of
Slide 18: Significant Value Creation Potential from Synergies
Page 18 Copyright 2020, II - VI Incorporated. All rights reserved. Significant Value Creation Potential from Synergies Annual Est Synergies Within 36 month s Yr 1 Annual Run Rate Synergies Achieved 50% through Yr 1 Cost of Goods Sold ▪ Supply chain management - Procurement ▪ Infeed - Internal supply
Slide 19: Updates by End Market
Updates by End Market
Slide 20: End Market Distribution of Full Year FY19 Revenue
Page 20 Copyright 2020, II - VI Incorporated. All rights reserved. End Market Distribution of Full Year FY19 Revenue Reported Segments FY19 Revenue FYY19 Op Margin – GAAP / Non - GAAP FY19/FY18 Revenue Growth Industrial (Automotive) Fiber O ptic & Wireless Comm. Military Semi Cap Life Science, Consu
Slide 21: End Market Distribution of Q3FY20 QTD Revenue
Page 21 Copyright 2020, II - VI Incorporated. All rights reserved. End Market Distribution of Q3FY20 QTD Revenue Reported Segments Q3FY19 Revenue Q3FY20 Revenue Q3FY20 Op Margin – GAAP / Non - GAAP Q3FY20/ Q3FY19 Revenue Growth Pro Forma* Revenue Change FY20 Q3/ FY19 Q3 Industrial (Automotive) Fiber
Slide 22: Appendix
Appendix
Slide 23: Historical Non-GAAP Adjustments and Impact to Diluted EPS
Page 23 Copyright 2020, II - VI Incorporated. All rights reserved. II - VI Historical Non - GAAP Adjustments and Impact to Diluted EPS II - VI Consolidated (In USD Millions, expect per share data) Q3 FY18 (1) Q4 FY18 (1) Q1 FY19 (1) Q2 FY19 (1) Q3 FY19 (1) Q4 FY19 (1) Q1 FY20 (2) Q2 FY20 (2) Q3 FY20
Slide 24: Segment Reconciliation: GAAP to Non-GAAP Operating Income
Page 24 Copyright 2020, II - VI Incorporated. All rights reserved. II - VI Segment Reconciliation: GAAP Operating Income to Non - GAAP Operating Income $ Millions (Unaudited) Mar 31, Dec 31, Mar 31, Mar 31, Mar 31, 2020 2019 2019 2020 2019 Non-GAAP Photonic Solutions Operating Income (Loss) $ 55.9 $
Slide 25: Materials That Matter
IVI MATERIALS THAT MATTER