 A Global Leader in Engineered Materials & Opto-electronic Components NASDAQ Global Select: IIVI B. Riley 15 th Annual Investor Conference Francis J. Kramer, President and Chief Executive Officer May 20, 2014 Exhibit 99.1 |
 2 • 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 forward-looking statements, you should specifically consider the “Risk Factors” in the Company’s most recent Form 10-K and Form 10-Q. Forward-looking statements are only estimates and actual events or results may differ materially. • II-VI Incorporated disclaims any obligation to update information contained in any forward-looking statement. • This presentation contains certain non-GAAP financial measures. Reconciliations of non-GAAP financial measures to their most comparable GAAP financial measures are presented at the end of this presentation. Safe Harbor Statement |
 Financial information for all periods presented reflects Pacific Rare Specialty Metals & Chemicals Inc.’s tellurium product line as a discontinued operation. Non U.S. 56% Infrared Optics 37% Near – Infrared 28% Military & Materials Advanced Products Group Geography Segments FY13 Revenues of $551M by Markets, Geography and Segments Founded: 1971 Headquarters: Saxonburg Pennsylvania, USA Profitability: 41 consecutive years since 1973, and counting Listing: October 1987 on NASDAQ: IIVI Locations: Worldwide presence in over 14 countries Businesses: 14 businesses organized into 5 reportable segments Focus: Growth; AACGR of 17% in revenues and 18% in earnings since 1987 EBITDA Margin: 21% to 26%, FY10-FY13 History and Overview 18% 17% U.S. 44% At a Glance 3 Industrial 46% Military Optical Communication Life Sciences: 4% Markets 20% 22% Semi. Cap. Equip.: 4% All Other: 4% |
 FY15 Planned Business Reorganization Forecasted FY14 Revenues Under Current Structure $M Forecasted FY14 Revenues Under New Structure $M Reasons for Reorganization 1. 2. 3. Performance Products Photonics Laser Solutions 4 APG M&M NIR IR AOP 205 145 100 120 110 250 215 215 Better focus on end markets and customers Better align business and technical processes Improve line of sight on profitability and cash usage |
 Financial information for all periods presented reflects Pacific Rare Specialty Metals & Chemicals Inc.’s tellurium product line as a discontinued operation. Growth History Organic Growth + Timely Acquisitions = Strong Financial Results 5 Fiscal Year Revenues ($M) Fiscal Year Cash Flow from Operations ($M) Forecast Forecast |
   Financial information for all periods presented reflects Pacific Rare Specialty Metals & Chemicals Inc.’s tellurium product line as a discontinued operation. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Margin History and Expectations FY15 FY16 Gross Margin % 35% to 38% 37% to 40% EBITDA Margin % 15% to 18% 19% to 21% Operating Margin % 7% to 10% 9% to 12% Expectation Ranges: Current Margin FY15-16 Gross Margin % 36% to 40% EBITDA Margin % 18% to 21% Operating Margin % 11% to 13% Previous Margin Expectation Ranges • Acquisitions have delayed our margin improvement by one year FY11 FY12 FY13 FY14 Q3 FY14 YTD 41.6% 39.0% 36.9% 31.5% 33.2% 26.0% 23.9% 21.7% 13.6% 14.9% 19.6% 15.8% 13.0% 5.0% 6.4% Gross Margin % EBITDA Margin % Operating Margin % 6 |
 Financial information for all periods presented reflects Pacific Rare Specialty Metals & Chemicals Inc.’s tellurium product line as a discontinued operation. Quarterly Revenue & Earnings Per Share ($M except per share data) 7 $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 Quarterly Revenues Diluted Earnings Per Share $0.12 $0.13 $0.15 $0.22 $0.20 $0.25 $0.23 |
 FY14 Integration of Acquisitions FY14 Integration of Acquisitions Ongoing Integration Tasks to Help Achieve Positive Earnings of These Acquisitions: • Eliminate reliance on Oclaro for certain transition and manufacturing services, • Negotiating our own supply agreements with our contract manufacturers, • Reduce Laser Enterprise workforce by 20%; close Tucson, AZ operations, • Execute cost reduction plans to ensure product cost competitiveness, • Increase Fab utilization focusing on large addressable markets, and • Evaluate product portfolio from a standpoint of profitability. 8 |
 ($ in thousands) As of June 30, 2013 As of March 31, 2014 Cash and cash equivalents 185,433 $ 185,691 $ Total assets 863,802 1,090,064 Long-term debt, including current portion 114,036 263,907 Shareholders' equity 636,108 665,241 Strong Cash and Liquidity Position Strong Cash and Liquidity Position • Growing cash flow position, • Investments in product and manufacturing technology development and capacity expansion, and • $20 million open share repurchase program. As of March 31, 2014, purchased 750,000 shares for $12 million. 9 |
  ZnS & ZnSe Material Growth Laser Tools Current Business FY13 Revenues: $203M End Markets: Industrial 95% Military 5% Est. Market Size: $560M Infrared Optics Infrared Optics 10 • Fiber-coupled beam delivery systems and processing tools for industrial lasers at 1 micron wavelength, including fiber lasers • CVD Diamond Optics for EUV Lithography systems Technology Innovations • 85% - 90% of revenues come from replacement optics needed for the worldwide installed base of over 70,000 high power (>1kW) CO 2 lasers • Leading supplier of optics, components and materials to manufacturers and users of infrared/CO 2 lasers |
  Near-Infrared Optics Near-Infrared Optics FY13 Revenues: $155M End Markets: Optical Comm. 70% Industrial 20% Other 10% Est. Market Size: $1.6B 11 Current Business Technology Innovations Tunable Optical Devices Micro-Optics and Components Manufacturer of crystal material, optics, microchip lasers, opto-electronic modules, tunable optical channel monitors, fiber couplers, fiber combiners and thin film filters for optical communications Products include passive optical components such as WDM modules, dispersion compensation modules, switches, isolators and wavelength lockers for wired (10G/40G/100G) and wireless applications Development of 40G and 100G transmission modules |
 Military & Materials Military & Materials 12 Financial information for all periods presented reflects Pacific Rare Specialty Metals & Chemicals Inc.’s tellurium product line as a discontinued operation. FY13 Revenues: $97M Current Businesses Technology Innovations Sapphire and IR Window Assemblies / Dome Assemblies / Optical Assemblies Infrared Search &Track (IRST) Precision optical systems and components for targeting pods, thermal imaging systems, space telescopes, medical systems and laser- based systems Leader in sapphire based products, including panels for Joint Strike Fighter’s Optical Targeting System Produces frequency selective micro grids enabling EMI protection and stealth for military aircraft, land vehicles and missiles “Snap Together” precision optical alignment Conformal windows and domes |
  Advanced Products Group SiC Wafer Growth & Fabrication Ceramic & Metal Matrix Composite Components Thermoelectric Devices Current Businesses Technology Innovations 13 FY13 Revenues: $96M End Markets: Semiconductor 25% Industrial 15% Military 20% Consumer 10% Optical Comm. 20% Life Sciences 10% Est. Market Size: $1B • Leader in thermoelectric cooling and power generation solutions • Manufacturer of advanced materials and Metal Matrix Composites and Reaction Bonded Silicon Carbide • Manufactures single crystal silicon carbide substrates for wireless infrastructure, RF electronics and power switching industries • Diameter expansion for single crystal silicon carbide • Product development for 300mm and 450mm diameter lithography systems |
  Active Optical Products Active Optical Products II-VI Network Solutions II-VI Laser Enterprise End Markets: Optical Communication 70% Industrial 30% Est. Market Size: $6B 14 Current Businesses • Purchased from Oclaro, Inc. in September and November 2013 • Manufacturer of GaAs semiconductor lasers with industry leading reliability and power performance and fiber amplifiers and micro-optics • Products include: fiber coupled multi-emitter pumps for fiber lasers, high power direct diode bars and stacks, high- speed VCSELs, 980 nm terrestrial and submarine pumps and Erbium Doped and Raman Fiber Amplifiers serving both industrial and optical communications markets Technology Innovations • High-power, high-speed vertical cavity surface emitting lasers (VCSELs) • Low dollar per watt fiber laser pump modules • Amplifier Arrays |
 • Diverse End Markets • Leading Market Positions • Global Manufacturing Footprint • Proven Financial Success • Growth via Organic and Acquisitions II-VI Advantages 15 |
 ($000’s, except %’s; all periods fiscal year) Non-GAAP Reconciliations Non-GAAP Reconciliations 16 Reconciliation of EBITDA to Net Earnings 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 EBITDA 33,974 46,389 55,156 67,539 79,699 61,531 72,304 126,609 123,213 119,438 Interest expense 412 945 1,790 1,007 242 178 87 103 212 1,160 Depreciation and amortization 9,632 12,705 15,784 15,849 15,474 15,292 20,954 28,313 34,523 40,792 Income taxes 7,080 8,525 10,541 12,241 24,867 7,378 12,515 18,517 17,760 18,766 Goodwill impairment - - 17,630 - - - - - - - Gain on sale of equity investment - - - - (26,455) - - - - - Loss (earnings) on discontinued operations, net of taxes (487) 959 (1,383) 476 (122) (228) 13 (3,342) 9,443 6,789 Net earnings 17,337 23,255 10,794 37,966 65,693 38,911 38,735 83,018 61,275 51,931 Revenues 142,679 187,242 223,626 254,684 309,747 280,040 333,046 486,638 516,403 551,075 Reconciliation of EBITDA Margin to Return on Sales 2009 2010 2011 2012 2013 EBITDA margin 22.0% 21.7% 26.0% 23.9% 21.7% As a % of revenues: Interest expense 0.0% 0.0% 0.0% 0.1% 0.2% Depreciation and amortization 5.5% 6.3% 5.8% 6.7% 7.4% Income taxes 2.6% 3.8% 3.8% 3.4% 3.4% Goodwill impairment - - - - - Gain on sale of equity investment 0.0% - - - - Loss on discontinued operations, net of taxes 0.0% - -0.7% 1.8% 1.3% Return on sales 13.9% 11.6% 17.1% 11.9% 9.4% Reconciliation of Free Cash Flow to Cash Flow from Operations 2009 2010 2011 2012 2013 Free cash flow 35,705 58,487 38,157 47,781 85,267 Capital expenditures 15,439 13,665 40,186 42,797 25,205 Cash flow from operations 51,144 72,152 78,343 90,578 110,472 |