Exhibit 99.2
StockerYale Acquires Photonic Products Ltd.
October 31, 2006
Safe Harbor Disclaimer
The statements set forth in this presentation include forward-looking statements that involve risk and uncertainties. The Company wishes to caution that a number of factors could cause actual results to differ materially from those in the forward-looking statements. These and other factors which could cause actual results to differ materially from those in the forward-looking statements are discussed in the Company’s filings with the Securities and Exchange Commission.
Agenda
Overview
Transaction Structure
Rationale for Acquisition
Financial Impact of Transaction
Looking to the Future
Photonic Products — Overview
Located in Hertfordshire, United Kingdom
Founded in 1995 and has 45 employees.
Leading distributor of high performance industrial laser diodes from Sanyo, Sony and Opnext, and high performance optical lenses from Panasonic.
Manufactures custom designed electro-optical sub-assemblies and optoelectronic components, based on semiconductor laser diode technology, for leading OEM manufacturers.
2006 estimated sales: $9.5 million
Over the last five years, the company’s revenues have grown at a CAGR of 32% in response to worldwide customer demand for its laser diodes, laser modules and optical components.
| | |
Structure of Transaction | | |
Common Stock | | $2.75 million shares 2,680,311 newly issued |
Cash | | $4.25 million |
Three-year bond | | $2.4 million Sellers’ bond; LIBOR plus 1% |
Earn-out agreement | | Three-year agreement |
Total Consideration | | $9.4 million |
Rationale for Merger
Access to laser diode designers and manufacturers
Complementary laser modules, yet distinctive and not overlapping
Cross-selling opportunities
Joint marketing and sales efforts
Coordinated R&D efforts
Manufacturing synergies
Margin improvement
Financial Impact of Transaction
Higher margins from
Manufacturing synergies
Diode purchases
Laser revenues double
EBIDTA swings to positive for combined company
Modest shareholder dilution
Looking to the Future
StockerYale and Photonic Products lead the low-power laser industry
Organic growth will be improved with merger
Photonics industry ripe for consolidation
StockerYale is looking for strategic acquisitions
Synergistic
Profitable
Reasonable purchase multiple
Add shareholder value
Thank you!
