Lumentum Holdings Inc. · NASDAQ:LITE

Lumentum — Lumentum Investor Briefing at OFC 2025

37 slides from Lumentum's conference presentation, Apr 1, 2025

Slide 1: Innovating for the Era of AI-Optimized Networking
Innovating for the Era of AI-Optimized Networking Lumentum Investor Briefing at OFC 2025 April 1, 2025
Slide 2: Cautionary Note Regarding Forward-Looking Statements and Non-GAAP Measures
Cautionary Note Regarding Forward-Looking Statements and Non-GAAP Measures This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These include statements regarding our belief and e
Slide 3: Today's speakers
Today’s speakers MICHAEL HURLSTON WUPEN YUEN WAJID ALI President and CEO President EVP and CFO Cloud and Networking KATHY TA CHRIS COLDREN VP, Investor SVP, Chief Strategy Relations and Corp. Dev. Officer © 2025 Lumentum Operations LLC 3
Slide 4: Innovating for the Era of AI-Optimized Networking
Innovating for the Era of AI-Optimized Networking MICHAEL HURLSTON PRESIDENT AND CEO © 2025 Lumentum Operations LLC 4
Slide 5: The Virtuous Cycle Driving AI Power Scaling
The Virtuous Cycle Driving AI Power Scaling Improved power efficiency Higher photonics Lower power per intensity bit of data Increased ability to scale AI © 2025 Lumentum Operations LLC 5
Slide 6: Photonic Solutions: The Key to Unlocking AI Growth
Photonic Solutions: The Key to Unlocking AI Growth © 2025 Lumentum Operations LLC 6
Slide 7: Broad Expertise in Foundational Technologies Critical to AI
Broad Expertise in Foundational Technologies Critical to AI Gallium Arsenide Indium Phosphide (GaAs) LCoS Photonic ICs MEMS Experts in materials and device physics Indium Phosphide Silica on Silicon Design Process Know-How Wafer Production (InP) Silicon Photonic ICs © 2025 Lumentum Operations LLC 7
Slide 8: Photonics Evolution Sparks a Rapidly Growing AI Market
Photonics Evolution Sparks a Rapidly Growing AI Market $30B+ Market opportunity growing over 25% Served Market Focus for AI: CAGR while delivering ▪ High-speed datacom transceivers, power efficiencies InP lasers, and optical components >25% ▪ Custom CPO and LPO solutions CAGR ▪ Optical Circuit Switc
Slide 9: End-to-End Cloud and Networking Leadership
End-to-End Cloud and Networking Leadership CLOUD-DRIVEN MARKETS SUB-SEA LONG-HAUL & METRO DATA CENTER ACCESS & 5G HIGH-RELIABILITY PUMP COHERENT COMPONENTS & MODULES DML & EML TRANSMITTERS TUNABLE ACCESS LASER & AMPLIFIER ZR+ MODULES VCSEL TRANSMITTERS MODULES COMPONENTS ROADMs & AMPLIFIERS CW LASER
Slide 10: Key Takeaways
Key Takeaways 1 2 3 Lower power per bit Served cloud market AI photonics leadership to architectures drive expanding >25% CAGR in a drive >$3B annual revenue increased data center rapidly evolving ecosystem at >20% operating margin* photonics intensity *Note: This is a target model and is not intend
Slide 11: Operating at Cloud Velocity
Operating at Cloud Velocity WUPEN YUEN President, Cloud and Networking © 2025 Lumentum Operations LLC 11
Slide 12: Innovating with Photonics to Keep Data Center Power in Check
Innovating with Photonics to Keep Data Center Power in Check ESTIMATED GLOBAL DATA CENTER POWER USE ESTIMATED OPTICAL LANE GROWTH IN DATA CENTERS Aggregate Power [GW] Millions of Lanes Lane 160 1,200 Speeds 1,000 120 ~20% >45% CAGR AI 800 CAGR 200G+ InP 80 600 400 Non-AI 100G 40 200 200G 100G GaAs 0
Slide 13: Accelerating to Faster Optical Lane Speeds: Why InP is the Future
Accelerating to LANES IN 2024 LANES IN 2029F Faster Optical Lane Speeds: VCSEL 39% VCSEL InP Why InP is the 61% 19% Future InP Higher data rate lane 81% speeds improve power- per-bit efficiency and demand more single- mode fiber InP solutions Source: LightCounting: Optics for AI, Jan 2025 © 2025 Lum
Slide 14: Lumentum's Decades of InP Leadership
Lumentum’s Data Rate (Gb/sec) Decades of 400G PAM4 InP Leadership 384G PAM8 224G 226G PAM4 PAM4 Differential 200G Drive PAM4 225G PAM4 10km Paving the way for 106G Cloud data center PAM4 106G PAM4 Differential Drive success 56G PAM4 43G NRZ 25G NRZ 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2
Slide 15: 400G PAM4 InP Transmitter Demonstrations
400G PAM4 InP Transmitter Demonstrations: Lumentum Booth #2119 InP Chip Innovations Enabling Range of High-Speed Interconnect Needs 448G InP EML 450G InP DFB-MZI Partner announcement: “Keysight, NTT Innovative Devices, and Live demonstration in Lumentum’ s booth #2119 Lumentum Achieve New Benchmark
Slide 16: Power Savings at 200G+ Lane Speed
Laser Comparison Power at 200G Lane Speeds Savings at Normalized Switch Power-per-Bit 200G+ Lane 10-15% power reduction Speed EML CW-SiPho Differential-drive EML reduces power 200G Lane Speed consumption and Differential Drive EML improves signal integrity 200G Lane Speed in 1.6T Fully Retimed Trans
Slide 17: Power Scaling with an Advanced InP Laser Roadmap
Power Scaling with an Advanced InP Laser Roadmap Multiple pathways to reduce power consumption Laser Options Within Pluggable, Ultra-High-Power Pluggable Transceivers External Light Source CPO Solution Network Power-per-Bit ~15% ~40% ~45% power power power reduction reduction reduction UHP InP LASER
Slide 18: Lumentum Enabling CPO in NVIDIA's Spectrum-X Switch
Lumentum Enabling CPO in NVIDIA’s Spectrum-X Switch Enabled by Lumentum’s high-reliability, ultra-high- power laser Lumentum positioned to win in CPO with laser differentiation © 2025 Lumentum Operations LLC 18 © 2024 Lumentum Operations LLC | LUMENTUM CONFIDENTIAL 18
Slide 19: What Does it Take to Develop a Winning CPO Laser Source?
What Does it Take to Develop a Winning CPO Laser Source? (Answer: leadership in the most demanding ultra-long-haul and sub-sea network applications Image Source: https://spie.org/ © 2025 Lumentum Operations LLC 19 © 2024 Lumentum Operations LLC | LUMENTUM CONFIDENTIAL 19
Slide 20: Lumentum's Power-Efficient Photonics Roadmap for AI Scaling
Lumentum’s Power-Efficient Photonics Roadmap for AI Scaling 2024-2025 2026 2027 2028 2029 Leading Scale-Out Speed 800G 1.6T 3.2T Scale-Out Transceiver Specs (DR, FR, PSM) CPO CPO Gen 1 Gen 2 ELS PLUGGABLE ▪ 200G EML & Diff. EML ▪ 400G EML & Diff. EML ▪ 100G EML Key Scale-Out Optical ▪ 200G Photodete
Slide 21: What It Takes to Develop Optical Switching (OCS) Products for AI
What It Takes to ▪ 25+ years of expertise in optical switching ▪ 200+ patents: reliability, design & applications Develop Optical ▪ 130,000+ MEMS-based WSS* units shipped Switching (OCS) ▪ Over 1 trillion MEMS-hours of proven field reliability Products for AI ▪ Large-scale, highly automated manufact
Slide 22: 25 Years of Leadership in MEMS Optical Switching Reliability
25 Years of Leadership in MEMS Optical Switching Reliability 2000 2008 2010 2019 2022 MEMS team formed Low drift MEMS Comb drive Reduced drive voltage Protected comb drive LONG TERM STABILITY ENHANCE MEMS + high reliability DAC FURTHER STABIILITY AND ENHANCED PROTECTION 2002 RANGE OF MOTION ELECTRON
Slide 23: Breakthrough Power Savings Through Optical Switching
Breakthrough Power Savings Through Optical Switching FRONT-END NETWORK OCS OCS >65% power reduction in SCALE-UP 100K-scale GPU deployments with NETWORK (COPPER BUS) optical switching* >$1.5B market opportunity by 2029** OCS OCS SCALE-OUT NETWORK Sources: (BACK-END) *Lumentum: Energy-Efficient AI Net
Slide 24: Securing Grid Power Now Requires Spreading Out Data Centers
LUMENTUM’S LEADING CLOUD DWDM COMPONENT & OPTICAL COMPONENTS TRANSCEIVER MARKET FORECAST Securing Grid Integrated Coherent 400G and 800G $7.5B Power Now TROSA, 200 Gbaud Symbol Rate Coherent Pluggable Transceivers >25% Requires CAGR 1.6T Ultra-Narrow Spreading Out Linewidth nITLA Data Centers $2.5B
Slide 25: Cloud Laser Chips at High Manufacturing Scale
Cloud Laser Chips at High Manufacturing Scale CHIP UNIT CAPACITY 2X in 18-mo period More InP capacity expansions in process Q4 FY24 Q4 FY25 Q2 FY26 © 2025 © 2024 Lumentum Lumentum Operations Operations LLC LLC 25 25 © 2024 Lumentum Operations LLC | LUMENTUM CONFIDENTIAL 25
Slide 26: World-Class Manufacturing at Lumentum's Thailand Campus
▪ Expanding state-of-the-art cleanroom World-Class Manufacturing campus to support AI growth at Lumentum’s ▪ Scaling production for 800G and 1.6T optical transceivers Thailand Campus ▪ Proprietary process with custom equipment, wafer-level testing, and bare-die packaging © 2025 Lumentum Operations L
Slide 27: A Full Suite of Optical Capabilities to Serve Cloud and AI/ML Needs
A Full Suite of Optical Capabilities to Serve Cloud and AI/ML Needs INSIDE THE DATA CENTER Connectivity for High- Speed Ethernet and Intra-Data Center InfiniBand Applications Switching 200–800G transceivers and AOCs with 1.6T in qualification New opportunities for optical switching Full suite of pho
Slide 28: Cutting-Edge Photonic Innovations at OFC 2025
Cutting-Edge Photonic Innovations at OFC 2025: Lumentum Booth #2119 Superior Photonic Connectivity from AI Racks to Cloud Interconnects to Long-Haul Networks DCI & LONG-HAUL NETWORKING RACK ▪ TrueFlex® Micro Twin 2x34 integrated C + L WSS DATA CENTER ▪ 800G ZR/ZR+ pluggable modules INTERCONNECT ▪ Tr
Slide 30: Operating Strategy to Optimize Profitability
Operating Strategy to Optimize Profitability Invest for Growth Expand Operating Margin ▪ Investments in R&D for product differentiation ▪ Grow top line revenue ▪ CapEx to support cloud growth ▪ Optimize manufacturing footprint ▪ Expand wafer fab scale and efficiency ▪ Reduce fixed costs Profitabilit
Slide 31: Customer and Product Mix Shift to Cloud
Customer and Product Mix Shift to Cloud Datacom Industrial Tech 8% 10% Industrial Tech 24% Datacom 45% Q2FY23 Future quarter Revenue: $505.9M Revenue > $500M Telecom (incl. DCI) Telecom (incl. DCI) 68% 45% ©©2025 2025 Lumentum Lumentum Operations Operations LLC LLC 3131 © 2024 Lumentum Operations LL
Slide 32: Incremental Revenue Growth Scenario to >$3B
Incremental Revenue Growth Scenario to >$3B >$3.0B Majority of Revenue Growth from Cloud & $1.6B AI customers FY25 Consensus Datacom Datacom Telecom Industrial Tech $3B Annual Revenue* Components Tranceiver & OCS Incl. DCI & Consumer Run Rate (EML, CW & UHP) *Source: FactSet, March 26, 2025, consens
Slide 33: Operating Margin Progression to >20%
Operating Margin Progression to >20% >20% > 1,100 bps Operating Margin Expansion, Primarily Driven by Cloud & AI 8.4% FY25 Consensus Datacom Datacom Telecom Industrial Tech Op Margin at Op Margin* Components Tranceiver & OCS Incl. DCI & Consumer >$3B Annual (EML, CW & UHP) Revenue *Source: FactSet,
Slide 34: Target Financial Model
Target Financial Model Non-GAAP Model FY25 Consensus $600M Quarterly $750M Quarterly Estimates* Revenue Revenue Annualized Revenue $1.6B $2.4B $3.0B Gross Margin 33.8% 37 – 40% 39 – 42% Operating Expenses ~25% ~20% ~18% Operating Margin 8.4% 17 – 20% >20% Driving Non-GAAP EPS to Expand Faster than R
Slide 35: Key Takeaways
Key Takeaways Funding manufacturing Structural cost savings & Driving to >$3B annual capacity and R&D for cloud growth will drive revenue at >20% cloud opportunities op margin expansion operating margin © 2025 Lumentum Operations LLC 35 © 2024 Lumentum Operations LLC | LUMENTUM CONFIDENTIAL 35

Lumentum Holdings — Lumentum Investor Briefing at OFC 2025 on 6ix

Lumentum — Lumentum Investor Briefing at OFC 2025

Slide 1: Innovating for the Era of AI-Optimized Networking

Slide 2: Cautionary Note Regarding Forward-Looking Statements and Non-GAAP Measures

Slide 3: Today's speakers

Slide 4: Innovating for the Era of AI-Optimized Networking

Slide 5: The Virtuous Cycle Driving AI Power Scaling

Slide 6: Photonic Solutions: The Key to Unlocking AI Growth

Slide 7: Broad Expertise in Foundational Technologies Critical to AI

Slide 8: Photonics Evolution Sparks a Rapidly Growing AI Market

Slide 9: End-to-End Cloud and Networking Leadership

Slide 10: Key Takeaways

Slide 11: Operating at Cloud Velocity

Slide 12: Innovating with Photonics to Keep Data Center Power in Check

Slide 13: Accelerating to Faster Optical Lane Speeds: Why InP is the Future

Slide 14: Lumentum's Decades of InP Leadership

Slide 15: 400G PAM4 InP Transmitter Demonstrations

Slide 16: Power Savings at 200G+ Lane Speed

Slide 17: Power Scaling with an Advanced InP Laser Roadmap

Slide 18: Lumentum Enabling CPO in NVIDIA's Spectrum-X Switch

Slide 19: What Does it Take to Develop a Winning CPO Laser Source?

Slide 20: Lumentum's Power-Efficient Photonics Roadmap for AI Scaling

Slide 21: What It Takes to Develop Optical Switching (OCS) Products for AI

Slide 22: 25 Years of Leadership in MEMS Optical Switching Reliability

Slide 23: Breakthrough Power Savings Through Optical Switching

Slide 24: Securing Grid Power Now Requires Spreading Out Data Centers

Slide 25: Cloud Laser Chips at High Manufacturing Scale

Slide 26: World-Class Manufacturing at Lumentum's Thailand Campus

Slide 27: A Full Suite of Optical Capabilities to Serve Cloud and AI/ML Needs

Slide 28: Cutting-Edge Photonic Innovations at OFC 2025

Slide 29: Investing for Rapid Growth

Slide 30: Operating Strategy to Optimize Profitability

Slide 31: Customer and Product Mix Shift to Cloud

Slide 32: Incremental Revenue Growth Scenario to >$3B

Slide 33: Operating Margin Progression to >20%

Slide 34: Target Financial Model

Slide 35: Key Takeaways

Slide 36: Q&A

Slide 37: Thank You