Coherent Corp. · NYSE:COHR
Coherent — II-VI — Investor Presentation (August 2018)
16 slides from Coherent's investor presentation, Aug 8, 2018
Slide 1: II-VI Investor Presentation August 2018
IIVI INVESTOR PRESENTATION August 2018 Exhibit 99.1
Slide 2: Safe Harbor Statement
Matters discussed in this presentation may contain forward-looking statements that are subject to risks and uncertainties. These risks and uncertainties could cause the forward-looking statements and II-VI Incorporated’s (the “Company’s”) actual results to differ materially. In evaluating these forw
Slide 3: II-VI Overview
Regions 43% 20% 8% Europe North America China Japan ROW 14 Countries 46 Worldwide Locations 11,000+ Worldwide employees Refers to groups II and VI of the Periodic Table of Elements “TWO SIX” S Sulfur Se Selenium Zn Zinc Te Tellurium Cd Cadmium 1,159M FY2018 Revenue IIVI IPO 1987 1971 Founded II-VI O
Slide 4: Overview of Key Markets
Overview of Key Markets 3D Sensing Military Industrial Lasers SIC for EV SIC for Wireless New Growth Markets Core Markets EUV Lithography Optical Communications
Slide 5: Growth Applications I: Silicon Carbide (SiC)
Growth Applications I Silicon Carbide (SiC) HV Battery Accessory Loads DC-DC Converter Bi-Directional Converter Inverter Battery Charger Electric Motor SiC for High Power Electronics Market CAGR (‘17-’21): 23% SiC for High Frequency GaN Electronics Market CAGR (‘17-’22): 15% Source: Yole 5G WIRELESS
Slide 6: Growth Applications I: 3D Sensing & LiDAR
VCSEL Arrays For 3D Sensing CAGR (’17-23): +75% Source: Yole Laser Diodes for LiDAR CAGR (’17-22): +20% Source: Strategies Unlimited Growth Applications I 3D Sensing & LiDAR Components for 3D Sensing & LiDAR Semiconductor Lasers: VCSELs & edge emitting lasers Optics: Low angle shift filters & wide i
Slide 7: Growth Applications I: EUV Lithography
EUV Source System Beam Transport System CO2 System Structural Ceramic Subsystems Seed Laser Power Amplifiers Focusing Optics EUV Lithography System Growth Applications I EUV Lithography EUV Lithography Systems Market CAGR (‘16-’22): 9% Source: Allied Market Research Laser Components, Processing Head
Slide 8: Core Market I: Industrial Lasers
Fiber Lasers Market CAGR (‘17-‘22): +8% Direct Diode Market CAGR (‘17-‘22): +7% Source: Strategies Unlimited Core Market I Industrial Lasers Processing High Power Semiconductor Lasers & Laser Optics A full suite of components for multiple laser modalities Strong CO2 deployed base in active use and s
Slide 9: Core Market I: Optical Communications
II-VI product content is 20-40% of ROADM Line Card BOM value Optical Communications Market CAGR (’15-’21): +12% Source: Ovum Optics OTDR Wavelength Selective Switch(WSS) High Resolution Optical Channel Monitor Optical Amplifier Laser Chip-on-Carrier Assembly Thermoelectric Cooler Micro-optics Core M
Slide 10: II-VI Expects to Acquire CoAdna on September 1st
WSS Module Suzhou, China Liquid Crystals Low-power consumption, low-port count, high reliability WSS supplier II-VI Expects to Acquire CoAdna on September 1st Background Est. 2000, Wavelength Selective Switch (WSS) innovator Manufacturing in Suzhou, China, Technology Center in Silicon Valley Strateg
Slide 11: Core Market I: Military
Military-Aerospace business serves four strategic areas Intelligence surveillance & reconnaissance (ISR) Lasers Missiles and ordnance EMI & survivability Highly differentiated core capabilities & products Materials engineered in-house Complex electro-optics sub-assemblies with high value add Infrare
Slide 12: End Market Distribution of Q4FY18 Revenue
End Market Distribution of Q4FY18 Revenue Reported Segments FY18 Revenue Q4FY18 Revenue Q4FY18 Op Margin – GAAP Q4FY18/ Q4FY17 Revenue Growth Industrial (Automotive) Fiber Optic & Wireless Comm. Military Semi Cap Life Science, Consumer, Other Laser Solutions $428M $115M 12.3% 21% 70% (5%) 12% -4%* 1
Slide 13: End Market Distribution of Full Year FY18 Revenue
End Market Distribution of Full Year FY18 Revenue Reported Segments FY18 Revenue FYY18 Op Margin – GAAP FY18/FY17 Revenue Growth Industrial (Automotive) Fiber Optic & Wireless Comm. Military Semi Cap Life Science, Consumer, Other Laser Solutions $428M 8.6% 26% 67% (6%) 11% 3%* 7% 12% Photonics $464M
Slide 14: Financial Trends and Expectations
Financial Trends Expectations Cash and Equivalents Cash Flow from Operations Long-Term Debt (Including current portion) FY17 FY15 FY16 Shareholder’s Equity $271M $174M $218M $118M $129M $123M $342M $176M $235M $900M $729M $782M Cash and Liquidity FY18 $247M $161M $490M $1,024M FY18 FY19 Gross Margin
Slide 15: Reconciliation Tables
Reconciliation Tables Three Months Ended Year Ended Jun 30, 2018 Mar 31, 2017 Jun 30, 2017 Jun 30, 2018 Jun 30, 2017 Operating Income $38.2 $34.8 $35.7 $135.3 $115.5 Interest Expense 5.1 5.0 2.3 18.4 6.8 Other expense (income), net (1.1) (1.5) (0.4) (5.3) (10.1) Income taxes 7.0 1.2 1.2 34.2 23.5 Ne
Slide 16: II-VI Historical GAAP EPS and Adjusted EPS Equivalent
II-VI Historical GAAP EPS and Adjusted EPS Equivalent To calculate EPS comparable to some peers, below are the values of typical adjustments used by other companies II-VI Consolidated Summary of Typical Industry Non-GAAP Adjustments Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Amo