Coherent Corp. · NYSE:COHR
Coherent — II-VI — Investor Presentation (February 2021)
35 slides from Coherent's investor presentation, Feb 9, 2021
Slide 1: February 2021 Investor Presentation
Copyright 2020, II - VI Incorporated. All rights reserved. February 2021 Investor Presentation
Slide 2: Safe Harbor Statement
Page 2 Copyright 2020, II - VI Incorporated. All rights reserved. Safe Harbor Statement This presentation contains forward - looking statements relating to future events and expectations that are based on certain assum ptions and contingencies. The forward - looking statements are made pursuant to t
Slide 3: Company Overview
Company Overview
Slide 4: II-VI at a Glance
Page 4 Copyright 2020, II - VI Incorporated. All rights reserved. II - VI at a Glance As of 6/30/2020 FY20 Revenue (1) $2.6B Cash & Equivalents $493M FY20 Free Cash Flow (2) $160M Vertically Integrated Model “TWO SIX” Refers to groups II and VI of the Periodic Table of Elements 18 Countries 75 Locat
Slide 5: Megatrends
Page 5 Copyright 2020, II - VI Incorporated. All rights reserved. Megatrends A world transformed through innovative materials vital to a better life today and the sustainability of future generations Adoption of 3D Sensing Increased Data and Video Consumption Deployment of 5G Wireless Growth in Elec
Slide 6: Core Strategy: Engineered Materials Differentiation
Page 6 Copyright 2020, II - VI Incorporated. All rights reserved. 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, computing, and sen
Slide 7: 10 Years of Continuous Revenue Growth
Page 7 Copyright 2020, II - VI Incorporated. All rights reserved. $487 $516 $551 $683 $742 $827 $972 $1,159 $1,362 $2,380 $2,638 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY20PF 10 Years of continuous revenue growth (1) 4 Transformative Acquisitions Optical Network & China Market InP Technol
Slide 8: Thousands of Market Leading Customers Across Diverse Markets
Page 8 Copyright 2020, II - VI Incorporated. All rights reserved. Sampling of representative customers based on approvals for public release Thousands of Market Leading Customers Across Diverse Markets
Slide 9: Q2 FY21 Overview
Page 9 Copyright 2020, II - VI Incorporated. All rights reserved. $728 $787 $760 $780 Q121 Q221 Q321EL Q321EH Q2 FY21 Overview EL: Estimated – Low end of range EH: Estimated – High end of range Revenue by Quarter ($M) 15% 62% Revenue by End Market 3% Semiconductor Capital Equipment 3% Life Sciences
Slide 10: Rapid Revenue Growth at Scale
Page 10 Copyright 2020, II - VI Incorporated. All rights reserved. $827 $972 $1,159 $1,362 FY2016 FY2017 FY2018 FY2019 Rapid Revenue Growth at Scale Strong Revenue Growth (1) (Pre - Finisar Acquisition) Q2FY21 Increased Efficiencies 11% 18% 19% 18% Note: Dollars in millions. (1) Figures prior to FY2
Slide 11: Addressing Multiple and Strong Growing Markets
Page 11 Copyright 2020, II - VI Incorporated. All rights reserved. Addressing Multiple and Strong Growing Markets 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, und
Slide 12: Enabling Mobility & Electrification
Page 12 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 EV/HEV GREEN ENERGY Solar & Wind Energy Smart Grid Power Switching
Slide 13: Advantages of Large Diameter Substrates
Page 13 Copyright 2020, II - VI Incorporated. All rights reserved. Advantages of Large Diameter Substrates ▪ Large diameter substrate fabrication cost (per unit area) is reduced significantly ▪ Large diameter wafer availability has helped move SiC - based devices from niche to mainstream ▪ Existing
Slide 14: New Ventures & Wide-Bandgap Electronics
Page 14 Copyright 2020, II - VI Incorporated. All rights reserved. New Ventures & Wide - Bandgap Electronics Technology SiC Modules GE Technology SiC Epiwafers Ascatron SiC Chips GE Technology Ascatron INNOViON SiC Devices GE Technology Ascatron Vertical Integration SiC Substrates Legacy II - VI Sig
Slide 15: Growth Opportunities in 5G Mobile Infrastructure
Page 15 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 Bid
Slide 16: Indium Phosphide Devices: Upside to TAM and Gross Margins
Page 16 Copyright 2020, II - VI Incorporated. All rights reserved. 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 Tunable Lasers ▪ InP IQ Modulators ▪ D
Slide 17: 3D Sensing & LiDAR
Page 17 Copyright 2020, II - VI Incorporated. All rights reserved. ▪ Market drivers • Face biometrics, auto - focus, augmented reality, automotive in - cabin & LiDAR, machine vision ▪ GaAs compound semiconductors technology platform on 6 - inch • Warren, NJ: Shipped hundreds of millions of 3D sensin
Slide 18: Lasers for Materials Processing & EUV
Page 18 Copyright 2020, II - VI Incorporated. All rights reserved. Lasers for Materials Processing & EUV Strong demand for laser processing heads and EUV lithography ELECTRIC VEHICLE BATTERY MANUFACTURING Remote laser welding heads assisted by machine vision software AUTOMATION Laser processes adapt
Slide 19: Aerospace & Defense: New Opportunities with Strong Channels
Page 19 Copyright 2020, II - VI Incorporated. All rights reserved. Significant new opportunities ahead with strong channels to the market STRONG ABILITY TO DIFFERENTIATE THE END SOLUTION Advanced Materials Semiconductor Lasers Electro - Optic Subsystems MARKETS PRODUCTS DIFFERENTIATORS Intelligence
Slide 20: Life Sciences and Healthcare
Page 20 Copyright 2020, II - VI Incorporated. All rights reserved. Life Sciences and Healthcare ▪ Gene Sequencing and Testing ▪ Optical Coherence Tomography ▪ Next Generation Biosensors Photonics plays an important role in Polymerase Chain Reaction (PCR) Instruments that can determine the outcome of
Slide 21: COVID Has Accelerated Secular Tailwinds
Page 21 Copyright 2020, II - VI Incorporated. All rights reserved. COVID - 19 Has Accelerated II - VI’s Secular Tailwinds Driving Increasing Demand for Connectivity and High - Performance Infrastructure Video Conferencing Life Sciences / Diagnostics Content Streaming 5G Smart Power Energy Efficiency
Slide 22: Financial Overview
Financial Overview
Slide 23: Attractive and Increasing Gross and Operating Margins
Page 23 Copyright 2020, II - VI Incorporated. All rights reserved. Attractive and Increasing Gross and Operating Margins (1) All non - GAAP amounts exclude certain adjustments for share - based compensation, acquired intangible amortization expense, certain one - time transaction expenses, debt exti
Slide 24: Significant Value Creation Potential from Synergies
Page 24 Copyright 2020, II - VI Incorporated. All rights reserved. Significant Value Creation Potential from Synergies Original Est. Synergies Within 36 months Annual Run Rate* Synergies on 12/31/2020 Cost of Goods Sold ▪ Supply chain management - Procurement ▪ Infeed - Internal supply of enabling m
Slide 25: Key Takeaways
Page 25 Copyright 2020, II - VI Incorporated. All rights reserved. Key Takeaways One of the Largest Photonics and Compound Semiconductor Companies 1 Materials Expertise Drives Differentiation in Multiple Growing Markets 2 Vertically Integrated, Diverse Global Manufacturing Footprint 3 History of Ins
Slide 26: Appendix
Appendix
Slide 27: End Market Distribution of Q1FY21 Revenue
Page 27 Copyright 2020, II - VI Incorporated. All rights reserved. End Market Distribution of Q1FY21 QTD Revenue Reported Segments Q1FY20 Revenue Q1FY21 Revenue Q1FY21 Op Margin – GAAP / Non - GAAP Q1FY21/ Q1FY20 Revenue Growth Pro Forma* Revenue Change FY21 Q1/ FY20 Q1 Industrial (Automotive) Fiber
Slide 28: End Market Distribution of Q2FY21 Revenue
Page 28 Copyright 2020, II - VI Incorporated. All rights reserved. End Market Distribution of Q2FY21 QTD Revenue Reported Segments Q2FY20 Revenue Q2FY21 Revenue Q2FY21 Op Margin – GAAP / Non - GAAP Q2FY21/ Q2FY20 Revenue Growth Industrial (Automotive) Fiber O ptic & Wireless Comm. Aerospace & Defens
Slide 29: End Market Distribution of H1FY21 Revenue
Page 29 Copyright 2020, II - VI Incorporated. All rights reserved. End Market Distribution of H1FY21 YTD Revenue Reported Segments H1FY20 Revenue H1FY21 Revenue H1FY21 Op Margin – GAAP / Non - GAAP H1FY21/ H1FY20 Revenue Growth Pro Forma* Revenue Change FY21 H1/ FY20 H1 Industrial (Automotive) Fiber
Slide 30: End Market Distribution of Full Year FY20 Revenue
Page 30 Copyright 2020, II - VI Incorporated. All rights reserved. End Market Distribution of Full Year FY20 Revenue Reported Segments FY20 Revenue FYY20 Op Margin – GAAP / Non - GAAP FY20/FY19 Revenue Growth Industrial (Automotive) Fiber O ptic & Wireless Comm. Aerospace & Defense Semi Cap Life Sci
Slide 31: Reconciliation of GAAP Measures to Non-GAAP Measures
Page 31 Copyright 2020, II - VI Incorporated. All rights reserved. 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) Finisar Q1 FY20 Revenue 285.0$ GA
Slide 32: Reconciliation of GAAP Measures to Non-GAAP Measures
Page 32 Copyright 2020, II - VI Incorporated. All rights reserved. Reconciliation of GAAP Measures to Non - GAAP Measures
Slide 33: Reconciliation of GAAP Measures to Non-GAAP Measures
Page 33 Copyright 2020, II - VI Incorporated. All rights reserved. Reconciliation of GAAP Measures to Non - GAAP Measures
Slide 34: Reconciliation of GAAP Measures to Non-GAAP Measures
Page 34 Copyright 2020, II - VI Incorporated. All rights reserved. Note: Dollars in millions. Reconciliation of GAAP Measures to Non - GAAP Measures
Slide 35: Materials That Matter
IVI MATERIALS THAT MATTER