Coherent Corp. · NYSE:COHR
Coherent — II-VI — Investor Presentation (November 2017)
16 slides from Coherent's investor presentation, Nov 8, 2017
Slide 1: November 2017
November 2017 Exhibit 99.2
Slide 2: Introductions
Company: II-VI Incorporated Presenting:Dr. Vincent D. (Chuck) Mattera, Jr President and CEO Mary Jane Raymond Chief Financial Officer INTRODUCTIONS
Slide 3: 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 4: Reported Segments
Reported Segments FY17 Revenue Q1FY18 Revenue Q4FY17 Op Margin - Non GAAP Q1FY18/ Q1FY17 Revenue Growth Industrial (Automotive) Fiber Optic & Wireless Comm. Military Semi Cap Life Science, Consumer, Other Laser Solutions $339M $93M 6% 18% 70% (7%) 12% 4% 7% 7% Photonics $419M $111M 18% 15% 11% 80% 0
Slide 5: Fiber Optics and Wireless Communications
Fiber Optics and Wireless Communications Enabling growing demand for intelligent networks Optical Components for Communications Market CAGR (’16-’20): 11% - Source: Ovum Key drivers: China Broadband Metro in several regions worldwide Data center growth including subsea CATV Sources of Competitive Ad
Slide 6: High Power Lasers and Optics
High Power Lasers and Optics Leader in industrial material processing Laser Processing Heads & Beam Delivery Components Market CAGR (‘14-’19): 22% Source: Strategies Unlimited Experts in development of new materials for diodes and optics for lower cost of ownership Industrial laser components 25-35%
Slide 7: EUV Lithography
EUV Source System Beam Transport System CO2 System Structural Ceramic Subsystems Seed Laser Power Amplifiers Focusing Optics EUV Lithography System 1500 nm 800 nm 90 nm 65 nm 45 nm 22 nm 20nm 14 nm 10 nm 7 nm 5 nm Evolution of Semiconductor Technology 1982 1993 2003 2009 2010 2012 2014 Future Source
Slide 8: Semiconductor Laser Technology Enabling Opto-electronic Devices
Optical Communications Internet of Things Semiconductor Laser Technology Enabling Opto-electronic Devices for advanced functionality e.g. 3D sensing II-VI supplying 3D sensing VCSEL and related technologies to consumer electronics, automotive, etc II-VI’s vertically integrated capacity for VCSELs an
Slide 9: Silicon Carbide in Electric Vehicles and Wireless Networks
II-VI is a world leading supplier of SiC substrates Large diameter (150mm) wafers enable economies of scale SiC for High Power Electronics Market CAGR (‘17-’21): 23% Source: Yole Other High Power Applications Photovoltaic Grid Switching Electric Trains SiC for High Frequency GaN Electronics Market C
Slide 10: Vertically Integrated Manufacturing
Products on an Optical Line Card Laser Chip-on-Carrier Assembly Thermoelectric Cooler Optics Vertically integrated manufacturing - Key to Scale, Quality, Functionality and Profitability 980 nm pump laser Optical channel monitor OTDR Passive Components Optical Amplifier
Slide 11: 2017 Acquisitions
World leader in Faraday rotator crystals Spun from AT&T Bell Labs Murray Hill in 2000 Size: ~100 people located in Hillsborough, NJ Applications: Tunable & DFB lasers, amplifiers, fiber lasers Pro Forma Expectations: Revenue: < 5% incremental annually with GM higher than Corporate average and CAGR e
Slide 12: Financial Trends
www.ii-vi.com Financial Trends Financials Expectations Gross Margin 40.0% 38.5%-41% EBITDA 19.5% 18.5%-22% Operating Margin 11.9% 11%-14% FY17 FY18 Cash and Equivalents Cash Flow from Operations Long-Term Debt (Including current portion) FY17 FY15 FY16 Shareholder’s Equity $271M $174M $218M $118M $1
Slide 13: Key Investment Considerations
Industry-Experienced Team with Deep Innovation Skills Leading Market Positions in Diverse End Markets 1 Vertically-Integrated and Scalable Manufacturing Successful Return on Investment Within 12-24 months 3 4 Significant Competitive Strengths and Differentiation for Emerging Markets 5 2 www.ii-vi.co
Slide 14: Reconciliation Tables
Reconciliation Tables Three Months Ended Year Ended Sept 30, June 30, Sept 30, June 30, June 30, 2017 2017 2016 2017 2016 Adjusted operating income $ 31.8 $ 35.7 $ 23.7 $ 115.5 $ 91.8 Acquired business's one-time expenses (2.0) - - - - Operating income $ 29.8 $ 35.7 $ 23.7 $ 115.5 $ 91.8 Interest ex
Slide 15: II-VI Reports GAAP EPS
II-VI Reports GAAP EPS To calculate EPS comparable to some peers, below are the values of typical adjustments used by other companies
Slide 16: Materials That Matter
IVI MATERIALS THAT MATTER