Lumentum Holdings Inc. · NASDAQ:LITE
Lumentum — Investor Day (March 2022)
19 slides from Lumentum's investor day presentation, Mar 8, 2022
Slide 1: Investor & Analyst Briefing OFC 2022
Investor & Analyst Briefing OFC 2022 March 8, 2022
Slide 2: Today's Speakers
Today’s Speakers Alan Lowe Chris Coldren Kathy Ta President & Chief Senior Vice President, Chief Vice President, Executive Officer Strategy and Corporate Investor Relations Development Officer © 2022 Lumentum Operations LLC 2
Slide 3: Forward Looking Statements and Financial Presentation
Forward Looking Statements and Financial Presentation This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include any anticipation or guidance as to future finan
Slide 4: Three Key Drivers of Double-Digit Annual Growth
Three Key Drivers of Double-Digit Annual Growth Relentless bandwidth growth driving record network and cloud capex New technology upgrades touch every part of the network and data center New opportunities in the automotive, industrial and consumer markets © 2022 Lumentum Operations LLC 4
Slide 5: Relentless Bandwidth Growth Driving Record Networking Capex
Relentless Bandwidth Growth Driving Record Networking Capex ~20% YoY Growth US-Based Telecom & Datacom Capex $280B Internet Traffic US Fed Stimulus N. America Cable 30% CAGR Capex N. America Service Provider Accelerating Capex Demand Top Telecom customers citing backlog over Internet Content 2X Prov
Slide 6: New Technology Upgrades Touch Every Part of the Network
New Technology Upgrades Touch Every Part of the Network ~75% ~20% 400G+ Port CAGR 1.9M WSS Unit CAGR 2021 - 2025 400G+ 2021 – 2025 Ports ROADM-related opportunity Pandemic-related delays Pandemic-related delays CY19 CY20 CY21 CY22 CY23 CY24 CY25 CY19 CY20 CY21 CY22 CY23 CY24 CY25 Note: 400G+ include
Slide 7: Hyperscale Data Center Shift to 200/400/800G
Hyperscale Data Center Shift to 200/400/800G Shift to 200/400/800G Modules ~40% Unit CAGR 2021 - 2025 High-speed datacom lasers used by Top 5 hyperscale data Primarily center customers 100G Modules CY19 CY20 CY21 CY22 CY23 CY24 CY25 Source: LightCounting high-speed datacom unit opportunities, exclud
Slide 8: New 3DS Applications in Automotive, Industrial & Consumer
New 3DS Applications in Automotive, Industrial & Consumer Smartphones & Security & Automobiles AR/VR Wearables Machine Vision Tablets Access Control • Biometric security • Number of lasers • Payment kiosks • Eye tracking • Proximity sensing • 3D metrology is architecture- (~4 lasers) tools • Proximi
Slide 9: Expanding Industrial Lasers Applications
Expanding Industrial Lasers Applications Key Products Key Applications CURRENT • Sheet metal cutting and welding • Surface treatment kW Fiber Lasers • Electric Vehicle production • Additive manufacturing • Semiconductor manufacturing Pulsed Solid-State Lasers • Microelectronics manufacturing • Addit
Slide 10: Multi-Year Secular Trends Create Tailwinds for Growth
Multi-Year Secular Trends Create Tailwinds for Growth Expanding Applications for Commercial Lasers • New Materials and Precision in Microelectronics • Bioinstrumentation and Life Sciences • Energy Efficiency and Climate Change • LCD→OLED - 4G→5G - Flex, Glass, PCB Lasers Cloud Compute and Content St
Slide 11: We Expect Double-Digit Revenue Growth for Multiple Years
We Expect Double-Digit Revenue Growth for Multiple Years Estimated 3-Yr Lumentum Revenue Specific Lumentum Growth Drivers CAGR Bandwidth growth combined with technology inflections: Telecom & • 400G+ Datacom and Transmission products Datacom 15% – 25% • 10G+ Tunable edge network products • ROADM, Pu
Slide 12: Industry Leading Target Financial Model (Non-GAAP)
Industry Leading Target Financial Model (Non-GAAP) FY20 FY21 LTM Targets (Annual) >10% Revenue (M) $1,679 $1,743 $1,707 Growth Gross Margin % 46.5% 50.9% 51.0% 50% Opex % of Revenue 19.9% 20.2% 20.9% 20% Operating Margin % 26.6% 30.8% 30.1% 30% Note: LTM is 12 months from Q3FY21 through Q2FY22 and i
Slide 13: NeoPhotonics Transaction Addresses Large and Growing Markets
NeoPhotonics Transaction Addresses Large and Growing Markets Announced November 4, 2021 + Revenue mix: Revenue mix: 60% Cloud and Networking 100% Cloud and Networking ▪ ROADM and amplification components and modules ▪ Ultra-pure light external cavity tunable lasers ▪ InP photonic integrated circuit
Slide 14: Recent Capital Allocation Developments (March 3, 2022)
Recent Capital Allocation Developments (March 3, 2022) ▪ Board increased share repurchase authorization to $1B – Extended to May 2024 – Through December 2021, repurchased a total of 4.5M shares for $363M ▪ Announced $750M convertible notes offering – Concurrently purchased ~$200M stock – Balance for
Slide 15: New Products at OFC Highlight End-to-End Product Leadership
New Products at OFC Highlight End-to-End Product Leadership Datacom DWDM Coherent Pluggable Coherent Pump Optical Networking ROADMs Lasers Access Components Transceivers Lasers Amplifiers Subsystems DFB Tunable 100G/200G 400G 980 nm DML EML VCSEL HB-ICR ITLAs HB-CDM HB-ICT EDFAs WSS Circuit Packs Tr
Slide 16: Three Key Drivers of Double-Digit Annual Growth
Three Key Drivers of Double-Digit Annual Growth Relentless bandwidth growth driving record network and cloud capex New technology upgrades touch every part of the network and data center New opportunities in the automotive, industrial and consumer markets © 2022 Lumentum Operations LLC 16
Slide 17: Thank you
Thank you ZLUMENTUM
Slide 18: Question & Answer Session
Question & Answer Session Alan Lowe Chris Coldren Kathy Ta President & Chief Senior Vice President, Chief Vice President, Executive Officer Strategy and Corporate Investor Relations Development Officer © 2022 Lumentum Operations LLC 18
Slide 19: GAAP to non-GAAP Reconciliation
GAAP to non-GAAP Reconciliation LUMENTUM HOLDINGS INC. GAAP to NON GAAP RECONCILIATION FY18 FY19 FY20 FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 LTM Net revenue 1,247.7 1,565.3 1,678.6 1,742.8 452.4 478.8 419.5 392.1 448.4 446.7 1,706.7 Gross profit on GAAP basis 432.1 425.9 650.2 783.1 20