A Global Leader in Engineered Materials & Opto-Electronic Components Exhibit 99.1 Furey Research Partners Hidden Gems Conference November 20, 2014 New York City Our Technologies for Tomorrow’s Innovations www.ii-vi.com NASDAQ: IIVI |
www.ii-vi.com I NASDAQ: IIVI 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 |
3 Our Core – Material Excellence |
Global Leader in Engineered Materials Headquartered in Saxonburg, PA ~ 7,000 Employees in 14 Countries FY14: $683M Revenue, 5.6% ROS 4 4 consecutive decades of profitability and counting Fiscal Year Revenues 56% 44% 46% 22% 20% 4% 4% 4% About II-VI 31% 32% 37% |
5 Organization Photonics Performance Products Laser Solutions M&A / Integration Tech Management Trade Compliance Operation Metrics Quality SCM Legal Strategic Resources Corporate G&A R&D NPI |
6 Revenue TAM Share FY14 FY13 $254M $218M $885M 29% Laser Solutions Segment Leading merchant supplier of CO 2 , Fiber, and Direct Diode industrial laser components Leading supplier of CO 2 optics for an install base of >70,000 high power lasers First to service EUV Lithography CVD Diamond optics demand — Laser Optics — Cutting Heads — Semiconductor Laser Chips — Ultra-hard Material Processing — Laser Source Solutions Focused on expanding our fiber and direct diode laser footprint as markets grow |
7 Laser Solutions Segment Vertical Cavity Surface Emitting Laser (VCSEL) CO 2 Laser Optics Laser Cutting Heads Laser Diode Bar Green Laser Diode Module |
8 Revenue TAM Share FY14 FY13 $217M $141M $2.0B 11% Photonics Segment Worldwide supplier of cutting edge amplification, pump, and transmission products for optical communication networks Service both intercontinental (undersea) and transcontinental (terrestrial) applications Leverage vertical integration synergies to enable a cost structure for market penetration and growth — Precision Optics — 980nm Pumps — Erbium Doped Fiber Amplifiers — Optical Switches — Optical Coatings and Filters |
9 Source: Worldbank.org - Based on data from the World Telecommunication/ICT Indicators database Worldwide Fiber Optic Penetration |
10 Arrayed Amplifiers Dual Laser Chip 980nm Pumps 40G & 100G Quad Small Form-factor Pluggable (QSFP) Transceivers High Performance Optical Coatings and Filters Optical Switches Photonics Segment |
11 Revenue TAM Share FY14 FY13 $213M $192M $2.1B 10% Focus on strategic markets where II-VI material expertise and technology enables growth and new functionality — Free Standing Diamond — Precision Optical Systems — High Value Material Reclamation — Reaction Bonded SiC Tools — Thermal Management Target military platforms and applications with growth potential Identify emerging markets early and enable the underpinning materials and technology Performance Products Segment |
12 Water Cooled Silicon Carbide Optics Energy Harvesting Pipe Strap CVD Polycrystalline Diamond Large Panel Sapphire Windows Opto-mechanical Assemblies Performance Products Segment |
13 Gross Margin EBITDA Operating Margin FY15 FY16 35% - 38% 37% - 40% 15% - 18% 19% - 21% 7% - 10% 9% - 12% Expectations Margin Performance Profitability and Expectations Exiting FY15 200 BPS > Q3 FY14 |
14 Cash and Liquidity Cash and Equivalents Cash Flow from Operations Long-Term Debt (Including current portion) Shareholders' Equity FY13 $185M $108M $114M $636M FY14 $175M $95M $241M $675M Cash and Liquidity |
15 Company Position Strong Cash Position Positive Profit Outlook Leading Market Positions Diverse End Markets Global Manufacturing Footprint Growth via Organic and Acquisitions Ongoing $50M Stock Buyback Program |
www.ii-vi.com I NASDAQ: IIVI 16 ************************* |