Coherent Corp. · NYSE:COHR
Coherent — II-VI — OFC 2018
25 slides from Coherent's conference presentation, Mar 13, 2018
Slide 1: Investor Presentation: OFC 2018 Update
INVESTOR PRESENTATION OFC 2018 Update San Diego, California, USA March 13-15, 2018 Booth 2313 Exhibit 99.1
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: Origins of Our Company Name
Origins of Our Company Name Refers to groups II and VI of the Periodic Table of Elements. “TWO SIX” S Sulfur Se Selenium Zn Zinc Te Tellurium Cd Cadmium
Slide 4: Engineered materials portfolio
PMN-PT Lead Magnesium Niobate-Lead Titanate ZnS Zinc Sulfide ZnSe Zinc Selenide KNbO3 Potassium Niobate CaF2 Calcium Fluoride YVO4 Yttrium Vanadate TGG Terbuim Gallium Garnet YAG Yttrium Aluminum Garnet Bi2Te3 Bismuth Telluride RBSiC Reaction Bonded SiC KNS Potassium Nickel Sulfate Hexahydrate YLF Y
Slide 5: Our Footprint
Our Footprint 14 Countries 45 Worldwide Locations 10,000+ Worldwide employee World Headquarters Manufacturing and R&D Facilities Global Sales Offices North America Europe Asia 2,000+ 500+ 7,500+
Slide 6: Our Company Structure
Our Company Structure Laser Solutions Photonics Performance Products
Slide 7: Over Decades of Continuous Growth
Over 4 Decades of Continuous Growth Micro-optics Vergo Optics Micro-optics Lighting Optical ZnSe Growth Laser Power Corp Silicon Carbide Litton SIC Group UV Filters Laser Power Corp Thermo-electric Coolers Marlow Industries Selenium Refinery Pacific Rare Metals Laser Processing Heads Highyag Micro-o
Slide 8: Recent Platform Acquisitions
Recent Platform Acquisitions COMPOUND SEMICONDUCTOR LASERS COMPOUND SEMICONDUCTOR DEVICES: AIMING BEYOND LASERS VERTICAL INTEGRATION & SCALE OPTICAL COMMUNICATIONS & ACCESS TO CHINA MARKET 2010 2013 2016 2017
Slide 9: Differentiation: Markets, Platforms, Business Model
Markets Differentiation Performance Infrastructure Business Model Products Diversified per Platforms Engineered Materials Valued By Customers Process Intensive Capital Intensive Vertical Integration Innovation Strategy
Slide 10: Differentiated Product Portfolio for Industrial Lasers
Differentiated Product Portfolio for Industrial Lasers CO2 & CO Lasers I Fiber Lasers I Direct Diode Lasers I Disk Lasers I UV Lasers I Ultrafast Lasers Fiber Lasers Market CAGR (‘17-‘22): +8% Direct Diode Market CAGR (‘17-‘22): +7% Source: Strategies Unlimited Freeform Beam Shaping Laser Optics For
Slide 11: Vertically Integrated Products for ROADMs
Vertically Integrated Products for ROADMs Optics OTDR Micro optics Optical Communications Market CAGR (’15-’21): +12% Source: Ovum Tunable thin film filter technology High Resolution Optical Channel Monitor (OCM) In-house 4 inch amorphous silicon technology platform II-VI product content is 20-40% o
Slide 12: Pump laser and amplifier shipment milestones
“We estimate that II-VI’s high performance gallium arsenide semiconductor lasers and leading EDFA capability enable as much as 50% of global internet traffic running through the optical transport network.” Sunny Sun, President, Photonics Segment, II-VI Incorporated. 3 Million Pump Lasers 500 K Ampli
Slide 13: Enabling Amplification in Coherent Pluggable Optics
Enabling Amplification in Coherent Pluggable Optics Ultra-Low Profile Tunable Filter FlexSOM EDFA Miniature Tunable filter with Variable Optical Attenuator Micro-pump 1RU Faceplace Density 400Gb/s 800Gb/s 3.2Tb/s CFP CFP4 CFP2 Optical Isolator Announced at OFC 2018 Announced at ECOC 2017
Slide 14: Bi-Di OLS for Direct Detect DWDM
Bi-Di OLS for Direct Detect DWDM up to 25 km Data Center Interconnect 4TB/S over 25 km Optical Line Subsystem Bi-Di Optical Line Subsystem 2 Fibers 1 Fiber Demo with Inphi COLORZ™ Lite in Booth #2313
Slide 15: Optoelectronics, Micro-Optics & Magneto-Optic Materials for Datacom
Optoelectronics, Micro-Optics & Magneto-Optic Materials for Datacom Datacom Optical Components Market CAGR (’17-‘22): +25% Z-Block BIG 25G VCSELs 25G Detectors Garnet Materials For active optical cables (AOCs) For CWDM & LAN-WDM transceivers For optical isolators and circulators IPI Acquisition 2017
Slide 16: Product Portfolio for Wireless Communications
Product Portfolio for Wireless Communications SiC for High Frequency GaN Electronics Market CAGR (‘17-’22): +15% Source: Yole SiC Substrates GaAs Epiwafers For 4G and 5G Wireless Base Stations For RF Devices in Wireless Handsets Dr. Jing Wang - Advanced Research Thin-Film Diamond on Silicon for 5G W
Slide 17: Optics & Opto-Electronics for LiDAR
Optics & Opto-Electronics for LiDAR Laser Diodes for LiDAR Market (’17-’22): +20% Source: Strategies Unlimited Wide Incidence Angle Mirrors Enable folded laser beam geometries to achieve compact LiDAR designs Laser Diodes Scanning Mirrors Announced at Photonics West 2018
Slide 18: Laser & Micro-optics for 3D Sensing
Laser & Micro-optics for 3D Sensing DFB Lasers: Distributed Feedback Lasers Low Angle Shift Filters VCSEL Arrays DFB Lasers Announced at OFC 2018
Slide 19: New Products in 2018
New Products in 2018 DFB Lasers OFC 2018 Freeform Beam Shaping Laser Optics Scan Lenses Combining ZnS and Fused Silica High Resolution Optical Channel Monitor (OCM) Ultra-Low Profile Tunable Filter Wide Incidence Angle Mirrors Photonics West 2018
Slide 20: San Diego, California, USA, Booth 2313
San Diego, California, USA March 13-15, 2018 Booth 2313
Slide 21: How We Use Our Platforms to Serve Our End Markets
How We Use Our Platforms to Serve Our End Markets Industrial Materials Processing Optical & Wireless Communications Advanced Materials & Military 3D Sensing & IoT Emerging Technologies Reported Segments FY17 Revenue Q2FY18 Revenue Q2FY18 Op Margin – GAAP Q2FY18/ Q2FY17 Revenue Growth Industrial (Aut
Slide 22: Expectations: Cash, Liquidity and Financial Trends
Expectations Cash and Equivalents Cash Flow from Operations Long-Term Debt (Including current portion) FY17 FY15 FY16 Shareholder’s Equity $271M $174M $218M $118M $129M $123M $342M $176M $235M $900M $729M $782M Cash and Liquidity 6M FY18 $254M $60M $463M $964M Page 15 details typical industry EPS ad
Slide 23: Returns to the Shareholders / Accelerating Growth
Returns to the Shareholders Accelerating Growth Military Compound Semiconductors 3D Sensing LiDAR EUV Lithography SiC Wireless Industrial Laser Datacom Optical Transport 9% 8% 16% 19% 20% 12% 25% 8% 15% EPS Growth R&D CAP EX 1.5-2.0X Revenue Growth Rate Including Platform Investments 7-11% of Sales
Slide 24: Reconciliation Tables
Reconciliation Tables Three Months Ended Year Ended Dec 31, 2017 Sept 30, 2017 Dec 31, 2016 Dec 31, 2017 Dec 31, 2016 Operating Income $32.5 $29.8 $27.1 $62.3 $50.8 Interest Expense 4.7 3.6 1.4 8.3 2.6 Other expense (income), net (2.0) (0.7) (6.1) (2.7) (7.5) Income taxes 20.2 5.8 7.9 26 15.5 Net Ea
Slide 25: Typical Industry Non-GAAP Adjustments
II-VI Reports GAAP EPS II-VI Consolidated Summary of Typical Industry Non-GAAP Adjustments Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Amortization 3.2 3.2 3.2 3.2 3.6 3.8 Share Based Comp 4.1 3.9 4.5 3.5 6.3 4.7 One Time Costs - - - 0.4 1.2 - Operation Dilution(Inv roll through) - - - 0.2 2.0 1