Coherent Corp. · NYSE:COHR
Coherent — II-VI — Merger or Acquisition (November 2021)
7 slides from Coherent's merger presentation, Nov 30, 2021
Slide 1: Snapshot of Combined Business
Exhibit 99.1 Snapshot of Combined Business 1 LTM 9/30/21 Combination Analysis LTM 9/30/21 Contribution Analysis II-VI Coherent Pro forma 1 Revenue Backlog Backlog Backlog 68% 32% $1.4B $0.7B $2.1B Revenue Revenue Revenue 76% 24% Adj. 4 $3.2B $1.5B $4.7B EBITDA + = 2 4 Adj. EBITDA Adj. EBITDA Adj. EB
Slide 2: Increased Diversification Mitigates End Market Cycles and Fuels Long-Term Growth
Increased Diversification Mitigates End Market Cycles and Fuels Long-Term Growth Diversification of + revenue by end-market Semiconductor Capital Equipment and geography Consumer 11% 17% Electronics 9% Aerospace Revenue by & Defense 45% 6% end market 16% Better immunity to Semiconductor 4% Industria
Slide 3: Increased Scale Expected to Drive Operating Leverage and Efficiencies in R&D and CAPEX
Increased Scale Expected to Drive Operating Leverage and 1 Efficiencies in R&D and CAPEX *Figures based on most recent publicly available data, as denoted in the footnotes Revenue R&D Capex n Largest PF player by revenue and capital spending $4,660 n Adds a services component to II-VI’s business $4,
Slide 4: Our Diligence, Experience with Finisar, and External Benchmarks Suggest our $250M Cost Synergy Target is Very Achievable
Our Diligence, Experience with Finisar, and External Benchmarks Suggest our $250M Cost Synergy Target is Very Achievable Scenarios for total cost synergies, Y3 % of Y3 cost baseline (combined spend baseline: $4.9B) X% $M 1 4.7% 6.8% 3.2% 4.8% 6.5% 337 322 250 235 Median: 250 157 II-VI / Coherent Bas
Slide 5: II-VI Adjusted EBITDA and Free Cash Flow Reconciliation
Reconciliations – II-VI Adjusted EBITDA reconciliation ($M) 2019 2020 2021 YTD Sep-19 YTD Sep-20 YTD Sep-21 LTM Sep-21 Net earnings (loss) on GAAP basis $108 ($67) $298 ($26) $46 $75 $326 + Income taxes (benefit) 21 3 55 ($5) 13 16 58 + Depreciation and amortization 92 221 270 $27 65 70 275 + Intere
Slide 6: Coherent Adjusted EBITDA and Free Cash Flow Reconciliation
Reconciliations – Coherent Adjusted EBITDA reconciliation ($M) Q4’19 Q4’20 Q4’21 2019 2020 2021 Net income (loss) $1 $8 $21 $54 ($414) ($107) + Income tax expense (benefit) 3 3 9 6 (29) (9) + Interest and other income (expense), net 7 4 6 24 19 22 + Depreciation and amortization 27 13 14 116 77 55 +
Slide 7: Combined Pro Forma LTM Sep-21 Reconciliation
Reconciliations – Combined Pro forma EBITDA reconciliation ($M) LTM Sep-21 II-VI Adj. EBITDA $815 Coherent Adj. EBITDA 258 - FX and other adjustments (4) + Expected synergies 250 PF Adj. EBITDA $1,318 Pro forma free cash flow reconciliation ($M) LTM Sep-21 PF Adj. EBITDA $1,318 - Combined capital ex