Coherent Corp. · NYSE:COHR
Coherent — II-VI — B. Riley 15th Annual Investor Conference (May 2014)
16 slides from Coherent's conference presentation, May 20, 2014
Slide 1: A Global Leader in Engineered Materials & Opto-electronic Components
Exhibit 99.1 A Global Leader in Engineered Materials & Opto-electronic Components NASDAQ Global Select: IIVI B. Riley 15 th Annual Investor Conference Francis J. Kramer, President and Chief Executive Officer May 20, 2014
Slide 2: Safe Harbor Statement
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
Slide 3: At a Glance
At a Glance History and Overview FY13 Revenues of $551M by Markets, Geography and Segments Semi. Cap. Equip.: 4% Founded: 1971 All Other: 4% Life Sciences: Headquarters: Saxonburg 4% 20% Industrial Markets Pennsylvania, USA 46% Military 22% Profitability: 41 consecutive years since 1973, and countin
Slide 4: FY15 Planned Business Reorganization
FY15 Planned Business Reorganization Forecasted FY14 Revenues Forecasted FY14 Revenues UnderCurrentStructure UnderNewStructure $M $M AOP IR Performance 110 Products 205 215 250 Laser APG 120 Solutions 145 215 100 M&M NIR Photonics Reasons for Reorganization 1. Betterfocusonendmarketsandcustomers 2.
Slide 5: Growth History
Growth History Fiscal Year Revenues ($M) Fiscal Year Cash Flow from Operations ($M) Forecast Forecast Organic Growth + Timely Acquisitions = Strong Financial Results Financial information for all periods presented reflects Pacific Rare Specialty Metals & Chemicals Inc.’s tellurium product line as a
Slide 6: Margin History and Expectations
Margin History and Expectations Current Margin Expectation Ranges: FY15 FY16 41.6% 39.0% 36.9% Gross Margin % 35% to 38% 37% to 40% 33.2% 31.5% EBITDA Margin % 15% to 18% 19% to 21% Operating Margin %7% to 10% 9% to 12% 26.0% 23.9% • Acquisitions have delayed our margin 21.7% 19.6% improvement by on
Slide 7: Quarterly Revenue & Earnings Per Share
Quarterly Revenue & Earnings Per Share ($M except per share data) $200 $0.30 $180 $0.25 $0.25 $160 $0.23 $0.22 $0.20 $140 $0.20 $120 $0.15 $100 $0.13 $0.15 $0.12 $80 $0.10 $60 $40 $0.05 $20 $0 $0.00 Quarterly Revenues Diluted Earnings Per Share Financial information for all periods presented reflect
Slide 8: FY14 Integration of Acquisitions
FY14 Integration of Acquisitions Ongoing Integration Tasks to Help Achieve Positive Earnings of These Acquisitions: • Eliminate reliance on Oclaro for certain transition and manufacturing services, • Negotiating our own supply agreements with our contract manufacturers, • Reduce Laser Enterprise wor
Slide 9: Strong Cash and Liquidity Position
Strong Cash and Liquidity Position ($ in thousands) As of June 30, 2013As of March 31, 2014 Cash and cash equivalents $ 185,433 $ 185,691 Total assets 863,802 1,090,064 Long-term debt, including current portion 114,036 263,907 Shareholders' equity 636,108 665,241 • Growing cash flow position, • Inve
Slide 10: Infrared Optics
Infrared Optics ZnS & ZnSe Material Growth FY13 Revenues: $203M End Markets: Industrial95% Military 5% Est. Market Size: $560M Current Business • Leadingsupplierof optics,componentsandmaterialsto manufacturersandusersof infrared/CO2 lasers • 85%- 90%of revenuescomefrom replacementoptics needed for t
Slide 11: Near-Infrared Optics
Near-Infrared Optics Micro-Optics and Components FY13 Revenues: $155M End Markets: Optical Comm.70% Industrial 20% Other 10% Est. Market Size: $1.6B Current Business Manufacturer of crystal material, optics, microchip lasers, opto-electronic modules, tunable optical channel monitors, fiber couplers,
Slide 12: Military & Materials
Military & Materials Sapphire and IR Window Assemblies / Dome Assemblies / Optical Assemblies FY13 Revenues: $97M Current Businesses Precision optical systems and components for targeting pods, thermal imaging systems, space telescopes, medical systems and laser- based systems Leader in sapphire bas
Slide 13: Advanced Products Group
Advanced Products Group FY13 Revenues: $96M Thermoelectric Devices End Markets: Semiconductor 25% Industrial 15% Military 20% Consumer 10% Optical Comm. 20% Life Sciences 10% Est. Market Size: $1B Current Businesses Ceramic & Metal Matrix Composite Components • Leader in thermoelectric cooling and p
Slide 14: Active Optical Products
Active Optical Products End Markets: Optical Communication70% Industrial 30% II-VI Laser Enterprise Est. Market Size: $6B Current Businesses • Purchased from Oclaro, Inc. in September and November 2013 • Manufacturer of GaAs semiconductor lasers with industry leading reliability and power performanc
Slide 15: II-VI Advantages
II-VI Advantages • Diverse End Markets • Leading Market Positions • Global Manufacturing Footprint • Proven Financial Success • Growth via Organic and Acquisitions 15
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($000’s, except %’s; all periods fiscal year) Reconciliation of EBITDA to Net Earnings 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 EBITDA 33,974 46,389 55,156 67,539 79,699 61,531 72,304 126,609 123,213 119,438 Interest expense 412 945 1,790 1,007 242 178 87 103 212 1,
II-VI — B. Riley 15th Annual Investor Conference (May 2014) on 6ix