www.ii-vi.com NASDAQ: IIVI Investor Presentation May 2015 Our Technologies for Tomorrow’s Innovations A global leader powered by engineered material solutions that fully satisfy our customers Exhibit 99.1 ********************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************** |
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 ~ 8,000 Employees in 14 Countries FY14: $683M Revenue, 5.6% ROS 9 mos YTD: $545M Revenue, 7.7% ROS 2% insider ownership 4 4 CONSECUTIVE DECADES OF PROFITABILITY AND COUNTING Fiscal Year Revenues 2005 $187 $224 $255 $310 $280 $333 $487 $516 $551 $683 2006 2007 2008 2009 2010 2011 2012 2013 2014 About II-VI |
5 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 Rev. TAM Share $214M $254M $218M $1,000M $900M $555M 30% 28% 39% FY15YTD FY14 FY13 |
6 Laser Solutions Segment Vertical Cavity Surface Emitting Laser (VCSEL) Market CAGR (‘13-’18): 33% Source: BCC Research Laser Processing Heads & Beam Delivery Components Market CAGR (‘14-’19): 22% Source: Strategies Unlimited |
7 Photonics Segment Worldwide supplier of cutting edge amplification, pump, and transmission products for optical communication networks Leading Supplier of crystals, fiber optics, precision optics, and optical assemblies for multiple applications Leverage vertical integration synergies to enable a cost structure for market penetration and growth Erbium Doped Fiber Amplifiers Undersea & Terrestrial 980nm Pumps Optical Switches Transceivers Industrial Lasers Semiconductor Instrumentation Optical Communication Life Sciences Rev. TAM Share $189M $217M $141M $2.5B $2.0B $1.5B 10% 11% 9% FY15YTD FY14 FY13 |
8 Photonics Segment EDFA/Raman Amplifiers Market CAGR (‘14-’19): 30% Source: Ovum 40G/100G Transceivers for Datacom Market CAGR (‘14-’19): 45% Source: Ovum |
9 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 Rev. TAM Share FY15YTD FY14 FY13 $143M $213M $192M $2.4B $2.3B $2.1B 8% 10% 9% |
10 Performance Products Segment Sapphire Material and Optics Market CAGR (‘14-’19): 10% Source: Internal Power Generation Products Market CAGR (‘14-’19): 30% Source: Internal |
11 Gross Margin EBITDA Operating Margin Expectations Margin Performance Profitability and Expectations Expect FY15 to exceed FY14 by 250bps in all 3 margin categories FY11 FY12 FY13 FY14 9mos YTD FY15 41.6% 39.0% 36.9% 33.2% 36.1% 26.0% 23.9% 21.7% 15.1% 16.7% 19.6% 15.8% 13.0% 6.8% 9.8% FY15 FY16 35%-38% 15%-18% 7%-10% 36%-40% 17%-21% 9%-12% |
12 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 FY15YTD $155M $86M $188M $711M |
13 Company Position Positive Profit Outlook Leading Market Positions In Diverse End Markets Investing In Fast Growing Markets Strong Cash Position Global Manufacturing Footprint Growth Via Organic And Acquisitions Ongoing $50M Stock Buyback Program |
14 Non-GAAP Reconciliations 2011 2012 2013 2014 Nine Months Ended March 31, 2015 Reconciliation of EBITDA to Net Earnings EBITDA 126,609 123,213 119,438 103,218 91,257 Interest expense 103 212 1,160 4,479 3,086 Depreciation and amortization 28,313 34,523 40,792 53,098 39,242 Settlement Agreement (7,650) Income taxes 18,517 17,760 18,766 7,325 7,673 Loss (earnings) on discontinued operations, net of taxes (3,342) 9,443 6,789 (133) Net earnings 83,018 61,275 51,931 38,449 48,906 Revenues 486,638 516,403 551,075 683,261 545,278 Reconciliation of EBITDA Margin to Return on Sales EBITDA margin 26.0% 23.9% 21.7% 15.1% 16.7% As a % of revenues: Interest Expense 0.0% 0.0% 0.2% 0.7% 0.6% Depreciation and amortization 5.8% 6.7% 7.4% 7.8% 7.2% Settlement Agreement - - - - (1.4%) Income taxes 3.8% 3.4% 3.4% 1.1% 1.4% Loss (earnings) on discontinued operations, net of taxes (0.7%) 1.8% 1.2% (0.0%) - Return on Sales 17.1% 11.9% 9.4% 5.6% 9.0% ($000's, except %'s; all periods fiscal year) |
www.ii-vi.com I NASDAQ: IIVI 15 * * * * * * * ************************* |
16 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 |