Slide 1: Illumina 2015 Proxy Roadshow
Illumina 2015 Proxy Roadshow May 5 – 7, 2015 © 2015 Illumina, Inc. All rights reserved. Illumina, 24sure, BaseSpace, BeadArray, BlueFish, BlueFuse, BlueGnome, cBot, CSPro, CytoChip, DesignStudio, Epicentre, ForenSeq, Genetic Energy, GenomeStudio, GoldenGate, HiScan, HiSeq, HiSeq X, Infinium, iScan,
Slide 2: Safe Harbor Statement
Safe Harbor Statement This communication may contain statements that are forward-looking. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected o
Slide 3: Executive Summary of Proposal 4
Executive Summary of Proposal 4 New plan reflects best practices in equity compensation Request approval of the 2015 Plan Replaces the current 2005 Illumina and the 2008 Verinata plans Authorizes an additional 2.7 million shares Shares are expected to last a minimum of 5 years; plan term is 10 years
Slide 4: Illumina's Equity Compensation Philosophy
Illumina’s Equity Compensation Philosophy Program is based on guiding principles Equity Compensation Philosophy Used to attract, retain and motivate new and existing employees Aligns employee and stockholder interests Granted to our high-performing employees and executives to generate long-term shar
Slide 5: Share Balance by Year
Share Balance by Year New plan will fund the program for more than 5 years 7,500 5M shares added 5,000 2,500 - 2010 2011 2012 2013 2014 Available Shares to Grant (M) 5
Slide 6: Net Grants by Year
Net Grants by Year Decreasing share grants track stock price increase 4,000 3,000 2,703 2,444 2,189 2,169 2,000 1,470 1,000 0 2010 2011 2012 2013 2014 Net Grants (M) Employees 1. Grant volumes declined in 2014 due to the increase in stock price 2. Grant figures include RSUs, PSUs and options, net of
Slide 7: Gross Burn Rate
Gross Burn Rate Disciplined annual share granting practice 3.0% 2.7% 2.6% 2.0% 1.8% 1.6% 1.1% 1.0% 0.0% 2010 2011 2012 2013 2014 Gross Burn Rate (%) 1. Gross burn rate is defined as the number of shares granted divided by weighted average shares outstanding illumina 7
Slide 8: Capital Deployment Strategy for Long-Term Growth
Capital Deployment Strategy for Long-Term Growth Equity buybacks partially offset dilution from shares granted Equity Repurchases New $150M 10b5-1 authorization1 $96M discretionary authorization remaining Committed to managing share dilution Invest for Growth Prioritize R&D investment ERP and busine
Slide 9: Superior Revenue & non-GAAP EPS Growth
Superior Revenue & non-GAAP EPS Growth Innovation drives profitable growth Revenue ($millions) $2,000 $1,500 $1,000 $500 $0 Revenue CAGR: 20% EPS CAGR: 27% 2010 2011 2012 2013 2014 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 Non-GAAP EPS Revenue Non-GAAP EPS1 1. Non-GAAP diluted EPS 9 illumina
Slide 10: Five-Year Stock Performance
Five-Year Stock Performance Strong history of outperformance 600% 500% 400% 300% 200% 100% 0% -100% HiScanSQ Begins Shipping HiSeq 2000 and Genome Analyzer IIe Launched MiSeq & BaseSpace Launched HiSeq 2500 Announced HiSeqX Ten & NextSeq Launched 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/201
Slide 11: Financial Outlook
Financial Outlook Delivering strong growth for the foreseeable future 2015 Revenue Non-GAAP EPS +20% YoY $3.36 – $3.42 1. Revenue guidance assumes 300 bps of Fx headwind assuming current exchange rates as of April 21, 2015 2. Non-GAAP EPS includes stock based compensation 3. Guidance given via press
Slide 12: Conclusion
Conclusion A yes vote enables continued shareholder value creation Board of Directors recommends a yes vote We use equity compensation to align employee and shareholder interests We have a disciplined annual share granting practice We have a strong track record of performance stemming from our overa
Slide 13: GAAP to non-GAAP Reconciliations
GAAP to non-GAAP Reconciliations Statement regarding use of non-GAAP financial measures The Company reports non-GAAP results for diluted net income per share, net income, gross margins, operating expenses, operating margins, other income, and free cash flow in addition to, and not as a substitute fo