Coherent Corp. · NYSE:COHR
Coherent — Investor Day (May 2025)
90 slides from Coherent's investor day presentation, May 28, 2025
Slide 1: Analyst & Investor Day 2025
Exhibit 99.2 ANALYST & INVESTOR DAY 2025 Copyright 2025, Coherent. All rights reserved. NYSE I COHR
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements relating to future events and expectations, including our expectations regarding (i) the growth in the markets we serve including, without limitation, the datacenter and communications and the industrial lasers and mate
Slide 3: Agenda
AGENDA Jim Anderson Dr. Julie Sheridan Eng Dr. Christopher Dorman Sherri Luther Chief Executive Officer Chief Technology Officer EVP, Lasers Chief Financial Officer Overview & Strategy Datacenter and Industrial Lasers Financials Communications and Materials Copyright 2025, Coherent. All rights reser
Slide 4: Overview & Strategy
ANALYST & INVESTOR DAY 2025 Overview & Strategy Jim Anderson Chief Executive Officer Copyright 2025, Coherent. All rights reserved. NY NYS SE E I I CO COHR HR 4
Slide 5: The Age of the Photon
THE AGE OF THE PHOTON Electron Photon Fast Speed Lightspeed Lossy Energy Efficiency Lossless Information Limited Bandwidth 10,000X Greater Capacity Copyright 2025, Coherent. All rights reserved. NYSE I COHR 5
Slide 6: Photons Are the Fabric of AI Datacenters
PHOTONS ARE THE FABRIC OF AI DATACENTERS Distance DATACENTER SCALE OUT SCALE UP Light Electrical 2X SAM Growth by 2030 Data Rate Copyright 2025, Coherent. All rights reserved. NYSE I COHR 6
Slide 7: Photons Are Indispensable to Advanced Manufacturing
PHOTONS ARE INDISPENSABLE TO ADVANCED MANUFACTURING Accuracy ADVANCED MANUFACTURING Lasers enable over 40 manufacturing steps Five different types of lasers required Light Mechanical Speed Complexity Drives Laser Growth Copyright 2025, Coherent. All rights reserved. NYSE I COHR 7
Slide 8: We Harness Photons to Drive Innovation
DATACENTER and COMMUNICATIONS INDUSTRIAL WE HARNESS PHOTONS TO DRIVE INNOVATION Innovation Broad and Deep Diversified Markets Unmatched Supply Track Record of Powerhouse Technology Stack and Customers Chain Resilience Growth Copyright 2025, Coherent. All rights reserved. NYSE I COHR 8
Slide 9: Laser Focused on Growth
LASER FOCUSED ON GROWTH Drive Operational and Accelerate Our Focus on Our Financial Discipline Growth and Profit Drivers Innovation Engine Copyright 2025, Coherent. All rights reserved. NYSE I COHR 9
Slide 10: Focused on Two Core Growth Markets
FOCUSED ON TWO CORE GROWTH MARKETS Datacenter and Communications Industrial Precision Mfg $6B Datacenter Communications Instrumentation $32B $12B and Other $8B $23B $44B 2030 SAM 2030 SAM Auto & Energy Semi Cap & Display $5B $4B Fast Growth High Margin Diversified and Complementary End Market Exposu
Slide 11: Coherent Has Assembled a Broad Array of Photonic Technologies
COHERENT HAS ASSEMBLED A BROAD ARRAY OF PHOTONIC TECHNOLOGIES Transceivers Finisar Wavelength Selective Switch CoAdna Aerospace & Defense Optical Systems LightWorks GaAs & GaN-SiC SiC Epitaxial Wafers ZnSe Platform Thermoelectrics Conformal Patterning Platform and Devices Laser Power Marlow Max Levy
Slide 12: Focusing Our Investments and Eliminating Distractions
NOW: FOCUSING OUR INVESTMENTS AND ELIMINATING DISTRACTIONS Prior Target Target Investment Distribution Prior Investment Distribution • Concentrate investment on the core • Too much investment directed at low product lines and reduce distractions ROI and non-strategic programs • Bias investment towar
Slide 13: Streamlining Our Portfolio: Focus on Profitable Growth Acceleration
STREAMLINING OUR PORTFOLIO: FOCUS ON PROFITABLE GROWTH ACCELERATION Prior Target Non-Strategic Profit Engines Growth Engines Streamlining and Reducing Distractions Concentrating Investment on the Core Business • Divesting or exiting non-core product lines • Datacenter and Communications • Shut down
Slide 14: Key Growth Drivers: Datacenter and Communications
KEY GROWTH DRIVERS: DATACENTER AND COMMUNICATIONS AI Data Transmission Optical Switching Datacenter Interconnect Datacenter Bandwidth Growth SAM Expansion DCI Transceiver Market 10X $2B+ Grows to $4B 1.6T in production this year First revenue this quarter 400G & 800G ZR/ZR+ ramping 3.2T and 6.4T in
Slide 15: Key Growth Drivers: Industrial Lasers and Materials
KEY GROWTH DRIVERS: INDUSTRIAL LASERS AND MATERIALS Semi Cap Equipment Display Manufacturing Precision Manufacturing AI Driving Demand for the Most 2X Expansion in Increasing Use of Laser Processes Advanced Nodes OLED Surface Area in Modern Manufacturing Enabled by lasers, optics & materials Our las
Slide 16: Global Photonics Leader
GLOBAL PHOTONICS LEADER Manufacturing Scale Customer Benefits • Deeper level of innovation • Faster time to market • Higher quality • Supply chain resilience • Economies of scale Others Technology Breadth and Depth Copyright 2025, Coherent. All rights reserved. NYSE I COHR 16
Slide 17: The Innovation Partner of Choice
THE INNOVATION PARTNER OF CHOICE Datacenter and Communications Industrial Critical lasers and optics are Key photonic and material technologies are internally designed and manufactured internally designed and manufactured Multigenerational innovation and development partnerships with leading AI clou
Slide 18: Industry-Leading Supply Chain Resilience
INDUSTRY-LEADING SUPPLY CHAIN RESILIENCE Laser Device Capacity Assembly and Test Capacity InP Capacity • 3X InP capacity increase • Decades of assembly • Majority of our InP transceivers experience 2X 3X use our own EMLs • >400M transceivers shipped • New 6” line begins production • 2X capacity incr
Slide 19: Achieving Significant Progress in FY25
ACHIEVING SIGNIFICANT PROGRESS IN FY25 Revenue ($M) Gross Margin Operating Margin Earnings Per Share 17.8% $3.45 37.9% $5,781 $4,708 13.1% 34.3% $1.21 FY24 FY25 FY24 FY25 FY24 FY25 FY24 FY25 22.8% Growth +360 bps Expansion +470 bps Expansion 2.8X Growth Note: See appendices for non-GAAP financial me
Slide 20: Driving Double-Digit Revenue Growth
DRIVING DOUBLE-DIGIT REVENUE GROWTH Revenue Growth Drivers DATACENTER and COMMUNICATIONS TARGET: 10-15%+ CAGR • AI datacenter market growth • SAM expansion, e.g., optical switching • Share gain opportunity DATACENTER 15-20%+ CAGR and COMMS INDUSTRIAL • Industrial market growth INDUSTRIAL 5-10% CAGR
Slide 21: Expanding Operating Margin
EXPANDING OPERATING MARGIN FY24 Target Gross Margin 34% >42% Operating Expense 21% 18% Operating Margin 13% >24% Note: Non-GAAP financial measures on this slide include gross margin, operating expense percentage, and operating margin. Target model is next 3-4 years. See appendices for GAAP to non-GA
Slide 22: Laser Focused on Growth
LASER FOCUSED ON GROWTH Focus on Our Accelerate Our Drive Operational and Growth and Profit Drivers Innovation Engine Financial Discipline Copyright 2025, Coherent. All rights reserved. NYSE I COHR 22
Slide 23: Datacenter and Communications
ANALYST & INVESTOR DAY 2025 Datacenter and Communications Dr. Julie Sheridan Eng Chief Technology Officer Copyright 2025, Coherent. All rights reserved. NY NYS SE E I I CO COHR HR 23
Slide 24: Photonics Has Enabled Modern Datacenters and Communications
PHOTONICS HAS ENABLED MODERN DATACENTERS AND COMMUNICATIONS Electrical Photonics Copyright 2025, Coherent. All rights reserved. NYSE I COHR 24
Slide 25: Powering Datacenter and Communications Networks
POWERING DATACENTER AND COMMUNICATIONS NETWORKS Datacenter and Communications Satellite Datacenter Datacenter Communications $32B $12B Submarine Long Haul Transmission Metro $44B 2030 SAM Backbone Transport Copyright 2025, Coherent. All rights reserved. NYSE I COHR 25
Slide 26: Expanding Role of Optics in the Datacenter
EXPANDING ROLE OF OPTICS IN THE DATACENTER Scale Out • Pluggable transceivers today • Distances 10 m to 10 km • Heterogeneous environment • Flexibility very important • Pluggable transceivers primary form factor Scale Up • Copper today SCALE UP SCALE OUT • Distances <10 m • Closed system • Density,
Slide 27: Datacenter Optical Interconnects Grow Through the End of the Decade
DATACENTER OPTICAL INTERCONNECTS GROW THROUGH THE END OF THE DECADE SAM ($B): Pluggables, CPO $35 $30 CPO $25 $20 Pluggables $15 $10 SCALE UP SCALE OUT $5 $- 2023 2024 2025 2026 2027 2028 2029 2030 Scale-out Pluggables Scale-out CPO Scale-up CPO LightCounting and internal estimates Copyright 2025, C
Slide 28: Accelerating Adoption Cycles Favor Technology Leaders
ACCELERATING ADOPTION CYCLES FAVOR TECHNOLOGY LEADERS Faster Adoption of New Data Rates 10G 100G 400G 800G 1.6T 3.2T 7 Yrs 5 Yrs 4 Yrs 3 Yrs $35 Overlapping Adoption Cycles $30 SAM by Data Rate ($B) $25 3.2T 1.6T $20 800G 400G $15 200G <=100G $10 $5 $- 2023 2024 2025 2026 2027 2028 2029 2030 LightCo
Slide 29: Optics Powers the Datacenter
OPTICS POWERS THE DATACENTER Pluggable Transceivers Offer Flexibility 800G • Robust roadmap of increasing bandwidth density • Standardized, multi-vendor ecosystem 1.6T • Easily serviceable 3.2T • Delays architectural commitment • Retains “pay as you grow” 6.4T Pluggable Transceivers Co-packaged Opti
Slide 30: Deep Datacom Technology Stack Is a Competitive Advantage
DEEP DATACOM TECHNOLOGY STACK IS A COMPETITIVE ADVANTAGE Pluggable Capability Type CPO Transceiver OPTICAL TRANSCEIVER Assembly and Test Components and Modulesüü GaAs VCSELsüü InP EMLsü Sources InP CW Lasersüü Source Lasers Passive Optics Integrated Circuits Detectors Silicon Photonicsüü GaAs Detect
Slide 31: Deep Datacom Technology Stack Is a Competitive Advantage
DEEP DATACOM TECHNOLOGY STACK IS A COMPETITIVE ADVANTAGE Pluggable Capability Type CPO Transceiver OPTICAL TRANSCEIVER Assembly and Test Components and Modulesüü GaAs VCSELsüü InP EMLsü Sources InP CW Lasersüü Source Lasers Passive Optics Integrated Circuits Detectors Silicon Photonicsüü GaAs Detect
Slide 32: 20-Year Technology Leader: Broad and Deep Laser Portfolio
20-YEAR TECHNOLOGY LEADER: BROAD AND DEEP LASER PORTFOLIO GaAs VCSELs InP EMLs/DMLs InP CW Lasers/Silicon Photonics 212 Gb/s Eye 400 Gb/s Eye • Shipped in Coherent Transceivers and • Majority of Coherent EML-based • InP CW Laser in Production and Higher- sold to other Transceiver Manufacturers Trans
Slide 33: Internally Developed Photodetectors Are a Differentiator
INTERNALLY DEVELOPED PHOTODETECTORS ARE A DIFFERENTIATOR Advantages of Deep Vertical Tech Stack Transceiver Transceiver • Time to market Laser Detector • Innovation • Cost Detector Laser • Supply chain resilience Differentiation in Photodetectors (PDs): • World’s first 4x25G PD for first 100G transc
Slide 34: Expertise in Passive Optics Adds to Competitive Advantage
EXPERTISE IN PASSIVE OPTICS ADDS TO COMPETITIVE ADVANTAGE Garnet Free Space Isolators Optical Multiplexers and Demultiplexers Fiber Assemblies for Transceivers Micro-optics Thermoelectric Coolers In-house design and manufacture enable differentiation and cost advantage Isolators, garnet, and passive
Slide 35: Market-Leading Roadmap for Pluggable Transceivers
MARKET-LEADING ROADMAP FOR PLUGGABLE TRANSCEIVERS 800G 1.6T 3.2T 6.4T In Volume Volume In In Production Production Development Development 2025 NEW INDUSTRY DEMO DEMO PRODUCT FIRST 2025 OCS Optimized 200G/lane VCSEL 1.6 T SR8 Transceiver 400G EML for 3.2T Transceivers Transceiver 1.6T Si Pho LRO Tra
Slide 36: Deep Multi-Customer Engagement on CPO
DEEP MULTI-CUSTOMER ENGAGEMENT ON CPO • Engaged with a broad set of customers • Wide range of implementation • Broad portfolio of CPO-enabling technologies “AI factories are growing and networking infrastructure must evolve to keep pace. NVIDIA’s collaboration with innovators, such as Coherent, on s
Slide 37: Optical Circuit Switch (OCS) Drives SAM Expansion
OPTICAL CIRCUIT SWITCH (OCS) DRIVES SAM EXPANSION Benefits of OCS • Reduces power consumption and cost OCS • Allows dynamic scheduling • Improves network reliability • Minimizes latency Cost Power 30% Savings 41% Savings $2B OCS SAM by 2030 Without OCS With OCS Without OCS With OCS Note: OCS SAM - C
Slide 38: Deeply Differentiated Optical Circuit Switch Technology
DEEPLY DIFFERENTIATED OPTICAL CIRCUIT SWITCH TECHNOLOGY Software Stack by Coherent Coherent Solution Other Solutions Integrated software for onboard control electronics and interface to customer Liquid Crystal Technology Microelectromechanical Software network management Systems (MEMS) Liquid Crysta
Slide 39: Market-Leading OCS Roadmap for Datacenter and DCI
MARKET-LEADING OCS ROADMAP FOR DATACENTER AND DCI Larger Increasing 64x64 C-Band Modular Capacity Capacity OCS OCS OCS OCS OCS Production Production Samples 2025 2025 2026 2026 2027 SAMPLING NOW Received Larger switch release for C-band availability to Modular chassis design to Continuous evolution
Slide 40: Powering Datacenter and Communications Networks
POWERING DATACENTER AND COMMUNICATIONS NETWORKS Datacenter and Communications Satellite Datacenter Datacenter Communications $32B $12B Submarine Long Haul Transmission Metro $44B 2030 SAM Backbone Transport Copyright 2025, Coherent. All rights reserved. NYSE I COHR 40
Slide 41: Significant Growth in Datacenter Interconnect (DCI) Transceivers
SIGNIFICANT GROWTH IN DATACENTER INTERCONNECT (DCI) TRANSCEIVERS • Power constraints are forcing AI workloads to be spread across multiple datacenters • Drives the need for more and higher-speed DCI optical interconnects between datacenters • 100G, 400G, 800G ZR/ZR+ transceivers critical for DCI $5
Slide 42: Differentiation and Time to Market Lead Through Internal Technology
DIFFERENTIATION AND TIME TO MARKET LEAD THROUGH INTERNAL TECHNOLOGY Multi-Year Lead Due to Internal InP Technology 100G ZR QSFP28 TRANSCEIVER • Industry’s first 100G ZR QSFP28 transceiver • Enabled by novel low-power InP tunable laser Purpose-built Power-optimized Tunable Laser First to Market on 80
Slide 43: Industry-Leading DCI Roadmap
INDUSTRY-LEADING DCI ROADMAP 100G 800G 1.6T 3.2T 400G In Production Ramping now In Development In Development INDUSTRY INDUSTRY FR/LR/ZR LR/ZR FIRST FIRST AI Scale Out AI Campus Scale Out Industry’s First 800G Industry’s First 100G ZR/ZR+ Q-DD ZR QSFP28 400G ZR+ for longer reach Industry’s First and
Slide 44: Transport Equipment Critical for Network Growth and Flexibility
TRANSPORT EQUIPMENT CRITICAL FOR NETWORK GROWTH AND FLEXIBILITY • Transport products carry, route, and monitor the optical signal from source to destination CLIENT METRO METRO CLIENT CORE • Key functions include: • Amplification • Switching and routing Optical Transport Network • Monitoring • Deep v
Slide 45: History of Innovations Powering Transport Network Efficiency
HISTORY OF INNOVATIONS POWERING TRANSPORT NETWORK EFFICIENCY Merchant Wavelength Blocker OCM Disaggregated Dual Chip POLS Multi-Rail Uncooled µPump EDFA DGE Subsystems Pump Nano EDFA Embedded OTDR • Best-in-class GaAs pump laser chip design and INDUSTRY efficiency for over 20 years FIRST • Multi-gen
Slide 46: Powering Datacenter and Communications Networks
POWERING DATACENTER AND COMMUNICATIONS NETWORKS Satellite Datacenter Large and Rapidly Innovation Leader with Growing Markets Many Industry Firsts Submarine Long Haul Transmission Metro Broad and Deep Multi-Gen Relationships Backbone Technology Portfolio with Top Customers Transport Copyright 2025,
Slide 47: Industrial Segment
ANALYST & INVESTOR DAY 2025 Industrial Segment Dr. Christopher Dorman EVP, Lasers Copyright 2025, Coherent. All rights reserved. NY NYS SE E I I CO COHR HR 47
Slide 48: Large Market Opportunity
LARGE MARKET OPPORTUNITY Precision Mfg Instrumentation and Other $6B $8B $23B 2030 SAM Auto & Energy Semi Cap & Display $5B $4B Copyright 2025, Coherent. All rights reserved. NYSE I COHR 48
Slide 49: Industrial Photonics – Innovation Across Three Parameters
INDUSTRIAL PHOTONICS – INNOVATION ACROSS THREE PARAMETERS Power Wavelength Pulse Length Copyright 2025, Coherent. All rights reserved. NYSE I COHR 49
Slide 50: Higher Power: Means Faster Delivery of Precise Heat
HIGHER POWER: MEANS FASTER DELIVERY OF PRECISE HEAT Power Increasing Over Time (½ inch Mild Steel Cutting Comparison) 5 kW 20+ kW CO Laser 2 Fiber Laser 6 inch/min 30 feet/min POWER 2000s Today 20 kW FIBER Higher Power • More heat per second The Width of a Hair • Faster melting • Faster welding, cut
Slide 51: Shorter Wavelength: Means Finer Feature Manufacturing
SHORTER WAVELENGTH: MEANS FINER FEATURE MANUFACTURING Wavelength Decreasing over Time 532 nm 266 nm 2000s Today Shorter Wavelengths • Focusing to a smaller spot • Finer feature manufacturing • Imaging smaller objects Modern wafer inspection is equivalent to scanning Manhattan in 20 seconds to find a
Slide 52: Shorter Pulses: Means Cutting Without Heat
SHORTER PULSES: MEANS CUTTING WITHOUT HEAT >100 MW Pulse Shortening Over Time of Peak Power 10 ps 300 fs 2000s Today Shorter Pulses • Higher peak power for less time • Heat travels at electron speed, a few atoms in 300 fs • Cutting without heat 40 W of Power Compressed to 300 fs Copyright 2025, Cohe
Slide 53: Full Portfolio of Laser Technology = Full Range of Applications
FULL PORTFOLIO OF LASER TECHNOLOGY = FULL RANGE OF APPLICATIONS Excimer Laser Ion Laser Solid State Fiber Laser CO Laser 2 Wavelength UV UV UV – IR IR Far IR Power High Low All High High Continuous, Long, Continuous, Pulse Long Continuous Continuous Ultrafast Long Copyright 2025, Coherent. All right
Slide 54: Broad Portfolio of Products, Wide Spectrum of Markets
BROAD PORTFOLIO OF PRODUCTS, WIDE SPECTRUM OF MARKETS Market Excimer Ion Solid State Fiber CO 2 Semi Capital Equipment ◉◉◉◉◉ n/a Precision Manufacturing ◉◉◉◉ n/a n/a Display Manufacturing ◉◉◉ n/a Instrumentation ◉◉◉◉ n/a = Not applicable Copyright 2025, Coherent. All rights reserved. NYSE I COHR 54
Slide 55: Lasers Make Modern Smartphone Manufacturing Possible
LASERS MAKE MODERN SMARTPHONE MANUFACTURING POSSIBLE Camera Module / Sensor Case Sapphire Lens Cutting Cutting / Engraving Welding / Soldering Laser Marking / Coding Legend: 3D Molded Interconnects Display Module OLED Excimer IC Logic / Memory / Modem Ion LTPS Annealing Photolithography Solid state
Slide 56: Deepest Portfolio of Photonic Technologies: Ultrafast Laser
DEEPEST PORTFOLIO OF PHOTONIC TECHNOLOGIES EXAMPLE: ULTRAFAST LASER Nonlinear Crystals Optics Diffraction Gratings Fiber Processing Acousto-optic Modulators Gallium Arsenide Pump Diodes Fiber Bragg Gratings Integrated Software for onboard control electronics, external control, Gallium Arsenide Subst
Slide 57: Advanced Materials Are Our Key Foundational Elements
ADVANCED MATERIALS ARE OUR KEY FOUNDATIONAL ELEMENTS Transceivers Lasers Industrial Indium Gallium Crystals/ Zinc Diamond/SiC/ Phosphide Arsenide Garnet Selenide Composites Copyright 2025, Coherent. All rights reserved. NYSE I COHR 57
Slide 58: Advanced Materials Make Semiconductors Possible
ADVANCED MATERIALS MAKE SEMICONDUCTORS POSSIBLE Ion Epitaxy Deposition CMP Inspection Lithography Etch Implantation Back End Epi Susceptors Baseplates CMP Discs Wafer Chucks Wafer Tables Baseplates Wafer Carriers TCB Nozzles Showerheads Stages Stages Showerheads Back-end Stages Mirrors Via Drilling
Slide 59: Key Growth Drivers in Our Industrial End Markets
KEY GROWTH DRIVERS IN OUR INDUSTRIAL END MARKETS $ Coherent Industrial Growth (5-10%) Wavelength Semi Capital Equipment Power Pulse Precision Manufacturing Industrial Market Growth (3-5%) Next 3-4 years Power Wavelength Display Capital Equipment § Increasing laser processes Wavelength Instrumentatio
Slide 60: Increasing Use and Complexity of Semi Cap Inspection Lasers
INCREASING USE AND COMPLEXITY OF SEMI CAP INSPECTION LASERS Smaller node size increases Node 250 nm 3 nm≤2 nm process intensity and complexity Optical Steep increase in number of 3 85 100+ inspection steps Inspection Steps Shorter wavelengths Wavelength 532 nm 266 nm≤266 nm Increasing complexity Cop
Slide 61: Today's Semi Cap Inspection Lasers Are 5X More Complex
TODAY’S SEMI CAP INSPECTION LASERS ARE 5X MORE COMPLEX • Atomic-level mirror position control Equivalent of Entire Laser in 2002 • 20 years of internal crystal development Cutting-Edge Software • Materials expertise enabling 20,000-hour Software lifetime Copyright 2025, Coherent. All rights reserved
Slide 62: Increasing Laser Content in Precision Manufacturing
INCREASING LASER CONTENT IN PRECISION MANUFACTURING Example: EV Manufacturing Example: Mobile Phone Manufacturing Ultra-Precise Heat Ultrafast, Power Without Heat Year 2000s Today Future 2000s Today Future Laser Process 1-2 40 50+ 1-2 40 50+ Steps Laser 5 kW 10 kW kW, Pulsed 30 ns 300 fs fs UV Copyr
Slide 63: Deep Tech Stack Enables Precision Manufacturing Leadership
DEEP TECH STACK ENABLES PRECISION MANUFACTURING LEADERSHIP Power: Speed- and Cost-Driven Ultrafast: Capability-Driven Software Beam Delivery Systems Advanced Fiber Nonlinear Crystals Complex Optic Coatings GaAs Epi Wafers Specialty Fiber Optics Combiner Components Pump Assemblies Copyright 2025, Coh
Slide 64: Product Launch: Precision Manufacturing
PRODUCT LAUNCH: PRECISION MANUFACTURING AIM FL Series of Single-Mode Fiber Lasers • Rack-mounted industrial, multi-kilowatt single-mode fiber lasers • For automotive, EV, medical device, and consumer goods manufacturing • Single-mode for superior beam quality, stability, and precision • Leverages Co
Slide 65: Display Market: Enabling OLED Area Growth and microLED Adoption
DISPLAY MARKET: ENABLING OLED AREA GROWTH AND MICROLED ADOPTION Area Vol/year Today Outlook 55% 1X 1.4 Billion 90% OLED OLED OLED 2X Expansion in Total OLED 5% 4X 440 Million 25% OLED Surface Area OLED microLED 10% of TV Market 0% 100X 230 Million Penetration microLED Future Content Expansion = $1B
Slide 66: Unrivalled UV Photon Power for OLED Display Processing
UNRIVALLED UV PHOTON POWER FOR OLED DISPLAY PROCESSING 2010s Today Future Area of OLED 2 0.01 10 20 (million m ) Panel Size Gen 4.5 Gen 6 Gen 8 2 kW UV anneals the silicon backplane Process of record 1 kW 2 kW 2 kW Laser Power Sophisticated software stack for excimer, solid state annealing Software
Slide 67: Product Launch: Display
PRODUCT LAUNCH: DISPLAY • World’s first high-throughput turnkey system for inline UVTRANSFER microLED production, more than 50k LED per second • MicroLED for TV-sized panels • Brightest display, tiles for size flexibility, long lifetime, robust • Highest power of UV photons for production-ready thro
Slide 68: Health Sciences Require Increasing Photonic Complexity
HEALTH SCIENCES REQUIRE INCREASING PHOTONIC COMPLEXITY 2000s Today Future Cells / s 10,000 50,000 150,000 Colors 1-2 6 9+ • Flow Cytometry: Laser-based analysis to rapidly count thousands of cells • Detects cancers, detects diseases, assesses vaccines Contents • Growth driven by an aging population
Slide 69: Product Launch: Instrumentation – Axon FL
PRODUCT LAUNCH: INSTRUMENTATION – AXON FL Picture • 140 fs 920 nm pulses for 3D imaging of brains to neuron-level accuracy • Enables real-time laser imaging of neural activity on mobile subjects, providing real-world feedback • Neuroscience, disease research, drug discovery, and moving toward clinic
Slide 70: Expanding Recurring Service Revenue Streams
EXPANDING RECURRING SERVICE REVENUE STREAMS Example: Solid State Laser $$$$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 20 Years Industrial System Sale Service and Consumables Revenues Revenue Revenue $1X 25% $5X Growing Service and Consumables Revenue Enduring Service Revenue Copyright 2025, Coherent. Al
Slide 71: Growing Complexity and Content
GROWING COMPLEXITY AND CONTENT Faster than Market Unmatched Product Deep Technology Long Life, High Growth Portfolio Stack Margin Revenue Copyright 2025, Coherent. All rights reserved. NYSE I COHR 71
Slide 72: Financials
ANALYST & INVESTOR DAY 2025 Financials Sherri Luther CFO Copyright 2025, Coherent. All rights reserved. NY NYS SE E I I CO COHR HR 72
Slide 73: Key Financial Priorities
KEY FINANCIAL PRIORITIES Strong Margin & Profit OpEx Disciplined Revenue Growth Expansion Efficiency Capital Allocation Copyright 2025, Coherent. All rights reserved. NYSE I COHR 73
Slide 74: Financial Progress to Date
FINANCIAL PROGRESS TO DATE OPEX REVENUE ($M) GROSS MARGIN 1,498 38.5% 1,435 38.2% 1,348 21.0% 1,314 1,209 36.7% 20.6% 35.9% 20.4% 19.9% 33.6% 19.7% Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 24% Revenue Growth + 490 bps Exp
Slide 75: Driving Double-Digit Revenue Growth
DRIVING DOUBLE-DIGIT REVENUE GROWTH Revenue Growth Drivers DATACENTER and COMMUNICATIONS TARGET: 10-15%+ CAGR • AI datacenter market growth • SAM expansion, e.g., optical switching • Share gain opportunity DATACENTER 15-20%+ CAGR and COMMS INDUSTRIAL • Industrial market growth INDUSTRIAL 5-10% CAGR
Slide 76: Gross Margin Expansion
GROSS MARGIN EXPANSION Gross Margin Expansion Strategies Product Volume >42% • Improved absorption on higher volumes is a tailwind • Potential headwinds from mix Cost Price Pricing Optimization 37.9% Vol • New pricing tools & analytics • Depth & breadth of product offerings Cost Reductions • Operati
Slide 77: Investments for Long-Term Growth
INVESTMENTS FOR LONG-TERM GROWTH Operating Expenses Investment Strategy R&D SG&A OPEX % SG&A • Disciplined G&A expense management 21.2% 20.0% • Drive efficiencies & leverage with low-cost geos 18.0% • Operational leverage as revenue grows 11.6% 10.4% 8.0% R&D • Scale with revenue & invest in long-te
Slide 78: Profitability Growth
PROFITABILITY GROWTH Operating Margin Profitability Expansion >24% • Double-digit revenue growth • Gross margin expansion 18% • Disciplined SG&A spend 13% • R&D investments for long-term growth FY24 FY25 Target Note: See appendices for non-GAAP financial measures and the GAAP to non-GAAP reconciliat
Slide 79: Strengthening the Balance Sheet
STRENGTHENING THE BALANCE SHEET Leverage Ratio Cash Allocation Debt Balance TTM EBITDA Leverage Ratio 2.5x • Maintain strong liquidity • Excess cash used to pay down debt 2.1x <2.0x • Reduced interest rate by 75 bps through debt repricing • Drive leverage ratio to <2.0x • Debt payments of $386M made
Slide 80: Capital Allocation
CAPITAL ALLOCATION Capital Allocation in Q1-Q3 FY25 ($M) Go-Forward Strategy (FY25) Organic Investment R&D $405 Investment Invest in the product portfolio Capex investment to support revenue growth Capex $310 Investment Debt Paydown & Interest Reduction $386 Debt Paydown Reduce leverage ratio to <2.
Slide 81: Financial Target Model
FINANCIAL TARGET MODEL Target Model FY24 FY25 (Next 3 to 4 years) Revenue Growth (YoY) (9%) +23% 10-15%+ Sustainable double-digit growth Gross Margin 34.3% 37.9% >42% Pricing optimization & cost reduction strategy Investing in long-term product portfolio OpEx 21.2% 20.0% 18% (10% R&D, 8% SG&A) Opera
Slide 82: Tariffs
TARIFFS • Based on the current tariff policy, the impact of tariffs to our business in Q4 FY25 is not expected to be significant • Any changes to this current landscape could change the expected impact • We believe we have a resilient & flexible supply chain highly valued by our customers • Global m
Slide 83: New Reporting Segmentation Beginning in FY26
NEW REPORTING SEGMENTATION BEGINNING IN FY26 Revenue Distribution New Segments • New reporting segmentation will be effective FY26 New Current Segmentation Segmentation • Reflects better alignment with end markets Lasers Industrial INDUSTRIAL • Semiconductor and Display Capital Equipment Materials •
Slide 84: Key Financial Priorities
KEY FINANCIAL PRIORITIES Strong Margin & Profit OpEx Disciplined Revenue Growth Expansion Efficiency Capital Allocation Copyright 2025, Coherent. All rights reserved. NYSE I COHR 84
Slide 85: Appendix: GAAP to Non-GAAP Reconciliations
APPENDIX: GAAP TO NON-GAAP RECONCILIATIONS Non-GAAP financial measures on these slides include gross margin, operating expense percentage, operating margin, operating income percentage and earnings per share. See appendices for GAAP to non-GAAP reconciliations. Debt leverage ratio as defined by cred
Slide 86: Gross Margin Reconciliation
GROSS MARGIN RECONCILIATION (Millions, except percentages) Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 FY24 GAAP Gross Margin $366 $432 $460 $509 $528 $1,456 GAAP Gross Margin % 30.3% 32.9% 34.1% 35.5% 35.2% 30.9% Share-based compensation 5 5 6 6 5 23 Amortization of acquired intangibles 31 30 30 30 44 122 Integr
Slide 87: Operating Expenses Reconciliation
OPERATING EXPENSES RECONCILIATION (Millions, except percentages) Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 FY24 $344 $369 $385 $372 $456 $1,360 GAAP Operating Expenses % of Revenue 28.5% 28.1% 28.6% 26.0% 30.4% 28.9% Share-based compensation (21) (24) (30) (35) (35) (104) Amortization of acquired intangibles (4
Slide 88: R&D % and SG&A % Reconciliation
R&D % AND SG&A % RECONCILIATION Q1 25 Q2 25 Q3 25 FY24 10.1% GAAP R&D Expense % 9.8% 10.0% 10.2% (0.4%) Share-based compensation (0.4%) (0.4%) (0.5%) (0.3%) Amortization of acquired intangibles (0.1%) - (0.1%) 9.4% Non-GAAP R&D Expense % 9.3% 9.6% 9.6% Q1 25 Q2 25 Q3 25 FY24 GAAP SG&A Expense % 17.0
Slide 89: Operating Income Reconciliation
OPERATING INCOME RECONCILIATION (Millions, except percentages) Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 FY24 GAAP Operating Income $22 $63 $75 $137 $72 $96 GAAP Operating Income % 1.8% 4.8% 5.6% 9.5% 4.8% 2.0% Share-based compensation 26 29 36 41 40 127 Amortization of acquired intangibles 72 72 72 72 87 288 R
Slide 90: Earnings Per Share Reconciliation
EARNINGS PER SHARE RECONCILIATION Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 FY 24 GAAP net income per share - diluted $(0.29) $(0.52) $ (0.04) $0.44 $ (0.11) $ (1.84) Share-based compensation 0.17 0.19 0.23 0.26 0.25 0.83 Amortization of acquired intangibles 0.46 0.47 0.45 0.45 0.55 1.89 Restructuring and other