Coherent Corp. · NYSE:COHR
Coherent — II-VI — Investor Presentation (November 2018)
17 slides from Coherent's investor presentation, Nov 1, 2018
Slide 1: II-VI Investor Presentation November 2018
IIVI INVESTOR PRESENTATION November 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 39% 22% 8% Europe North America China Japan ROW Q1 FY2019 Revenue 10% 21% Segments 34% 43% 23% II-VI Photonics II-VI Laser solutions II-VI Performance Products Q1 FY2019 Revenue Semi. Equip. Life Science Other Military 41% 28% 11% Markets Industrial Optical Communications Q1 FY2019 Revenue 1
Slide 4: Our Core & Growth Markets
New Growth Markets EUV Lithography SIC for Wireless SIC for EV 3D Sensing Core Markets Optical Communications Industrial Lasers Military Our Core & Growth Markets
Slide 5: Growth Applications I: Silicon Carbide (SiC) for EV Applications
SiC for High Power Electronics Market CAGR (‘17-’21): 23% Source: Yole A world leading supplier of SiC substrates DC-DC Converter Bi-Directional Converter/ Inverter/ Electric Motor HV Battery Electric Charger Growth Applications I Silicon Carbide (SiC) for EV Applications Electric cars (EV/HEV) Sola
Slide 6: Growth Applications I: Silicon Carbide (SiC) for Wireless
Growth Applications I Silicon Carbide (SiC) for Wireless SiC for High Frequency GaN Electronics Market CAGR (‘17-’22): 15% Source: Yole A world leading supplier of SiC substrates 5G WIRELESS Remote Radio Head Beam-forming Antenna For 4G & 5G Wireless Antennas For RF Devices in Wireless Handsets SiC
Slide 7: Growth Applications I: 3D Sensing & LiDAR
Components for 3D Sensing & LiDAR Semiconductor Lasers: VCSELs & edge emitting lasers Optics: Low angle shift filters & wide incidence angle mirrors Current market drivers: Finger Navigation, 3D sensing Emerging applications (2020): LiDAR, 3DS with Edge Emitters II-VI vertically integrated 6 inch Ga
Slide 8: Growth Applications I: EUV Lithography
Structural Ceramic Subsystems EUV Source System: Focusing Optics Beam Transport System CO2 System: Seed Laser, Power Amplifiers EUV Lithography System EUV Lithography already started for 7 nm node production Multiple II-VI products used in each EUV system, ~1-2% of total value Products leverage II-V
Slide 9: 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 strong secondary market Industrial laser components: 25-35% of worldwide revenue FIBER LASER OPTICS CO2 LASER OPTICS LASER BARS CUTTING HEADS DIRECT DIOD
Slide 10: Core Market I: Optical Communications
Industry leader in ROADM solutions, 40-50% of communication sales Small amplifiers for coherent transceivers via micro components Datacom increasing as a portion of communications sales, now ~20% Upcoming market drivers 5G & CATV “fiber deep” rollouts TUNABLE OPTICAL FILTERS EDFA MICRO PUMP Optical
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 World l
Slide 12: Segment Revenue by End Markets for Full Year FY18
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 ** $406M 9.5% 28% 67% (1%) 12% 3%* 7% 11% Photonics **
Slide 13: Segment Revenue by End Markets for Q1FY19
End Market Distribution of Q1FY19 Revenue Reported Segments Q1FY18 Revenue Q1FY19 Revenue Q1FY19 Op Margin – GAAP Q1FY19/ Q1FY18 Revenue Growth Industrial (Automotive) Fiber Optic & Wireless Comm. Military Semi Cap Life Science, Consumer, Other Laser Solutions $88M $106M 12 % 20% 61% (1%) 13% 4% 8%
Slide 14: Financial Trends
Expectations Cash and Equivalents Cash Flow from Operations Long-Term Debt (Including current portion) FY18 FY16 FY17 Shareholder’s Equity $247M $218M $271M $161M $123M $118M $439M $235M $342M $1,024M $782M $900M Cash and Liquidity Q1 FY19 $271M $19M $517M $1,044M FY18 FY19 Gross Margin 39.8% 38.5%-
Slide 15: Reconciliation Tables
Reconciliation Tables Three Months Ended Sep 30, 2018 Jun 30, 2018 Sep 30, 2017 Operating Income $37.2 $38.2 $29.8 Interest Expense 5.6 5.1 3.6 Other expense (income), net (0.7) (1.1) (0.7) Income taxes 6.2 7.0 5.8 Net Earnings $26.1 $27.2 $21.1 EBITDA $60.1 $62.0 $49.4 EBITDA margin 19.1% 19.3% 18.
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 Q1
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