#1ciena Ciena Corporation Earnings Presentation. Period ended October 30, 2021 December 9, 2021 Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information.#2#3#4FY 2021 key achievements ■ ■ We are driving the pace of innovation WL5 Extreme (WL5e) total number of customers of 140 including 75 in 2021 41 wins in our Routing and Switching portfolio and expanded our portfolio of offerings Blue Planet revenue grew 23% YoY Commercially shipped our first 400 ZR pluggables, WL5 Nano ■ ■ Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. ■ We have a durable business and financial model Despite headwinds from COVID-19 our profitability and cash metrics remained strong Adj. operating margin* was 16.8% Our balance sheet represents a competitive advantage ● ● Ended the year with approx. $1.7B in cash and investments Leverage remains below our target level A reconciliation of the se non-GAAP measures to our GAAP results is included in the press release for the relative period. ● ● We are committed to our people and communities Published an updated Sustainability Report highlighting programs that create a more sustainable and connected future Launched Digital Inclusion Commitment initiative with a goal to provide opportunities for 100,000 underserved students in our global communities As COVID-19 challenges vary around the world, we remain vigilant and committed to our customers and employees Surpassed FY21 corporate goal of 20,000 volunteer hours in the communities where our employees live and work ciena 4#5FY 2021 comparative financial highlights Revenue Adjusted Gross Margin* Adjusted Operating Expense* Adjusted Operating Margin* Adjusted EBITDA* Adjusted EPS* FY 2021 Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. $3.62B 47.9% $1.13B 16.8% $703M $2.91 *A reconciliation of these non-GAAP measures to our GAAP results is included in the press release for the relative period. FY 2020 $3.53B 47.4% $1.06B 17.6% $714M $2.95 ciena | 5#6#7#8Market leadership OMPIA #1 GLOBALLY DATA CENTER INTERCONNECT DATA CENTER INTERCONNECT FOR ICP/CNPS O 0 O O 0 O 0 0 #1 N. AMERICA TOTAL OPTICAL NETWORKING DATA CENTER INTERCONNECT TOTAL WDM LH WDM METRO WDM SLTE WDM ACCESS SWITCHING O O O O O O 0 #2 GLOBALLY TOTAL OPTICAL NETWORKING TOTAL WDM LH WDM METRO WDM O PURPOSE-BUILT/COMPACT MODULAR DCI OPTICAL NETWORKING FOR ICP/CNPs OPTICAL NETWORK HARDWARE VENDOR SCORECARD OPTICAL EQUIPMENT VENDOR LEADERSHIP SP SURVEY SLTE WDM ACCESS SWITCHING 0 O Optical Networking Report, 3Q21 Data Center Interconnect Market Share Report, 3Q21 Optical Network HW Vendor Scorecard, Jun 2020 Optical Equipment Vendor Leadership Global Service Provider Survey, Dec 2019 Service Provider Switching & Routing Report, 3Q21 Copyright Ciena Corporation 2021. All rights reserved. Proprietary information. #1 GLOBALLY PURPOSE-BUILT/COMPACT MODULAR DCI OPTICAL FOR CLOUD & COLO SLTE WDM PACKET ACCESS O 0 O O #1 N. AMERICA TOTAL OPTICAL NETWORKING PURPOSE-BUILT/COMPACT MODULAR DCI OPTICAL FOR CLOUD & COLO TOTAL WDM LH WDM O O O O O O O O O Cignal AI Active Insight #2 GLOBALLY TOTAL OPTICAL NETWORKING TOTAL WDM LH WDM METRO WDM O O O METRO WDM SLTE WDM PACKET ACCESS Transport Hardw are Report, 3Q21 Transport Customer Markets Report, 2Q21 Transport Applications Report, 2Q21 I #1 GLOBALLY DATA CENTER INTERCONNECT O O O O O 0 #1 N. AMERICA DATA CENTER INTERCONNECT TOTAL OPTICAL NETWORKING OPTICAL PACKET TOTAL WDM LH WDM METRO WDM O 0 O O O O DELL'ORO GROUP #2 GLOBALLY TOTAL OPTICAL NETWORKING OPTICAL PACKET TOTAL WDM METRO W DM O 0 PURPOSE-BUILT/COMPACT MODULAR DCI INTERNET CONTENT PROVIDER CUSTOMERS CABLE MSO CUSTOMERS LH WDM O Optical Transport Report, 3Q21 ciena 8#9Six mega trends driving network investment Cloud & Edge Digital Transformation Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Data Center Mobility & 5G (A) loT & Connected Objects ----- Virtual & Hybrid Lifestyles ciena 9#10Q4 Fiscal 2021 results Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. ciena 10#11Q4 FY 2021 key highlights Achieving balanced growth Non-telco represented 39% of total revenue Direct web-scale contributed 18% of total revenue APAC contributed 12% of total revenue Blue Planet was up 19% QOQ Driving the pace of innovation R&D investment was $147M or 14% of revenue 15 new wins on Wave Logic Ai and 34 new wins on Wave Logic 5e in Q4 Shipped our first 400 ZR pluggables, WL5 Nano Copyright Ciena Corporation 2021. All rights reserved. Proprietary information. I ■ 1 Source: Capital IQ 12/31/20-11/30/21 * A reconciliation of these non-GAAP measures to our GAAP results is included in the appendix to this presentation. Delivering shareholder value ■ ■ ■ ■ YTD¹ total stockholder return of 14% Adjusted EPS* growth of 42% YoY Adjusted operating margin* improved by 100bps YoY Balance sheet ■ strength: FCF was $243M - Cashflow from operations was $255M ciena: 11#12Q4 FY 2021 financial highlights* Revenue Adjusted Gross Margin* Adjusted Operating Expense* Adjusted Operating Margin* Adjusted EBITDA* Adjusted EPS* * A reconciliation of these non-GAAP measures to our GAAP results is included in the appendix to this presentation. Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q4 FY 2021 $1,041 M 46.3% $307M 16.8% $199M $0.85 Q4 FY 2020 $828M 49.5% $279M 15.8% $155M $0.60 ciena | 12#13#141,000.0 800.0 600.0 400.0 200.0 0.0 Revenue by segment (Amounts in millions) 49.5% 15.8% 48.0% 14.6% Q4 FY 2020 Q1 FY 2021 Networking Platforms Platform Software and Services Adj. Operating Margin* 49.2% 15.8% 48.5% 19.1% 46.3% Q2 FY 2021 Q3 FY 2021 Q4 FY 2021 -Adj. Gross Margin* 16.8% BP Automation Software and Services Global Services Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. 55.0% 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% -% Networking Platforms Converged Packet Optical Routing and Switching Total Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services A reconciliation of the se non-GAAP measures to our GAAP results is included in the appendix to this presentation. ** Denotes % of total revenue Maintenance Support and Training Installation and Deployment Consulting and Network Design Total Global Services Total Q4 FY 2021 Revenue 754.6 74.2 828.8 66.1 19.8 71.3 47.2 8.3 126.8 $1,041.5 %** 72.5 7.1 79.6 6.3 1.9 6.9 4.5 0.8 12.2 100.0% Q4 FY 2020 Revenue 579.3 56.0 635.3 54.5 20.9 67.0 43.0 7.8 117.8 $828.5 % ** 69.9 6.8 76.7 6.6 2.5 8.1 5.2 0.9 14.2 100.0% ciena | 14#15Continued strength derived from non-telco revenue Q4 FY 2021 Non-telco revenue 21.1% 33.1% 45.8% *represents 39% of total revenue in Q4 FY 2021 * Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Direct Webscale Cable Gov't, R&E, Enterprise 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% -% 12% 5% 22% Non-telco as a % of Total Revenue Direct Webscale Cable Gov't, R&E, & Enterprise Q4 FY 2020 12% 7% 20% Q1 FY 2021 10% 9% 24% Q2 FY 2021 9% 8% 25% Q3 FY 2021 8% 13% 18% Q4 FY 2021 ciena | 15#16#17Q4 FY 2021 balance sheet and operating metrics Cash and Investments Cash Flow from Operations Free Cash Flow Inventory Turns Gross Leverage Net Cash Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. $1.67B $255M $243M 5.0 1.1x $927M ciena | 17#18Delivering consistent financial performance 1.60 1.40 1.20 1.00 0.80 2016 Normalized Revenue 2017 Ciena 2018 Peer Avg 2019 2020 2021 Copyright Ciena Corporation 2021. All rights reserved. Proprietary information. 2.50 2.00 1.50 1.00 0.50 0.00 Source: Company filings Peer Average: ACIA¹, ADTN, ADVA, ANET, CSCO, INFN2, JNPR and NOKIA Infrastructure segment *FY 2021 includes Q4 consensus for industry average and midpoint of Ciena's Q1 FY22 guide 1. ACIA has been removed from the list since 2021 after acquisition 2. INFN represents INFN+ Coriant from the time the acquisition closed 2016 Normalized Adjusted OM Peer Avg 2017 Ciena 2018 2019 2020 2021 ciena 18#19#20Business outlook Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. 1. KOMBI ciena | 20#21Business Outlook ¹ Revenue Adjusted Gross Margin Adjusted Operating Expense Revenue Growth Adjusted Gross Margin Adjusted Operating Expense Q1' 22 $870M to $910M 43% to 46% Approximately $290M FY 2022 11% to 13% 43% to 46% $300M average per quarter Adjusted Operating Margin 1 Projections or outlook with respect to future operating results are only as of December 9, 2021, the date presented on the related earnings call. Actual results may differ materially from these forward-looking statements. Ciena assumes no obligation to update this information, whether as a result of new information, future events or otherwise. Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. 15% -16% ciena | 21#221 Long-term Business Outlook ¹ Revenue Approximately 6% to 8% annual growth beginning. in 2023 Adj. Operating Margin Targeting 17% to 18% for 2024 Free Cash Flow Approximately 75% to 85% of adjusted operating income beginning in 2024 Adj. EPS Approximately 10% annual growth over the next three years Projections or outlook with respect to future operating results are only as of December 9, 2021, the date presented on the related earnings call. Actual results may differ materially from these forward-looking statements. Ciena assumes no obligation to update this information, whether as a result of new information, future events or otherwise. Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. ciena | 22#23Considerations in our outlook ● Revenue Assumptions Economic conditions remain strong Industry growth rates return to historical levels of low to mid single digits Customers prioritize new architecture deployments, which enable us increasingly to monetize our wins We continue to manage supply chain issues well and there is some improvement in supply lead times Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. ● ● ● Profitability Assumptions Supply chain constraints and inflationary pressures impacting gross margin As conditions improve and revenue reflects a more typical mix of existing and new business, gross margin moderates Strategic investments in our people and portfolio, and operating expense returns to pre-pandemic levels ● Business Assumptions Because of our distinct competitive advantages, we expect to benefit from strong demand dynamics in our industry Despite unprecedented supply chain. challenges, we continue to drive profitability and have capacity for continued innovation investment Longer-term fundamental demand drivers - including increasing network traffic, demand for bandwidth and adoption of cloud architectures - remain strong • COVID-19 headwinds do not worsen ciena | 23#24#25#26Operating Expense Reconciliation (Amounts in thousands) GAAP operating expense Share-based compensation-research and development Share-based compensation-sales and marketing Share-based compensation-general and administrative Canadian Emergency Wage Subsidy-research and development Canadian Emergency Wage Subsidy-sales and marketing Canadian Emergency Wage Subsidy-general and administrative Significant asset impairments and restructuring costs Amortization of intangible assets Acquisition and integration costs Total adjustments related to operating expense Adjusted (non-GAAP) operating expense Income from Operations Reconciliation (Amounts in thousands) GAAP income from operations Total adjustments related to gross profit Total adjustments related to operating expense Total adjustments related to income from operations Adjusted (non-GAAP) income from operations Adjusted (non-GAAP) operating margin percentage Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q4 FY 2021 $339,710 5,684 6,192 7,466 5,700 5,836 1,712 32,590 $307, 120 Q4 FY 2021 $137,409 5,016 32,590 37,606 $175,015 16.8 % Q3 FY 2021 $326,027 5,541 6,534 8,237 (596) (53) (46) 9,789 5,967 259 35,632 $290,395 Q3 FY 2021 $148,523 5,068 35,632 40,700 $189,223 19.1 % Q2 FY 2021 $278,790 5,844 6,610 6,743 (28,923) (2,551) (2,161) 8,209 6,019 294 84 $278,706 Q2 FY 2021 $133,629 (2,034) 84 (1,950) $131,679 15.8 % Q1 FY 2021 $282,096 4,794 5,816 6,358 5,867 5,910 307 29,052 $253,044 Q1 FY 2021 $75,795 5,890 29,052 34,942 $110,737 14.6 % Q4 FY 2020 $310,866 4,030 5,137 5,982 7,854 5,851 3,127 31,981 $278,885 Q4 FY 2020 $93,483 5,424 31,981 37,405 $130,888 15.8 % ciena | 26#27Net Income Reconciliation (Amounts in thousands) GAAP net income Exclude GAAP provision (benefit) for income taxes Income before income taxes Total adjustments related to income from operations Unrealized (gain) loss on equity investment Adjusted income before income taxes Non-GAAP tax provision on adjusted income before income taxes Adjusted (non-GAAP) net income Weighted average basic common shares outstanding Weighted average diluted potential common shares outstanding (¹) Net Income per Common Share Q4 FY 2021 Copyright Ciena Corporation 2021. All rights reserved. Proprietary information. $103,499 25,826 129,325 37,606 166,931 34,221 $132,710 155,232 156,689 Q4 FY 2021 0.66 $ Q3 FY 2021 0.85 $ $238,232 (96,690) 141,542 40,700 182,242 37,360 $144,882 155,271 156,744 Q3 FY 2021 1.52 $ Q2 FY 2021 $103,117 21,453 124,570 (1,950) 165 122,785 25,171 $97,614 155,331 156,876 Q2 FY 2021 Q1 FY 2021 GAAP diluted net income per potential common share 0.66 $ 0.92 $ 0.62 $ Adjusted (non-GAAP) diluted net income per potential common share 1. Weighted average diluted potential common shares outstanding used in calculating Adjusted (non-GAAP) diluted net income per potential common share for the fourth quarter of fiscal 2021 includes 1.5 million shares underlying certain stock option and stock unit awards. $55,348 11,966 67,314 34,942 102,256 20,962 $81,294 155,174 156,583 Q1 FY 2021 0.35 $ 0.52 $ Q4 FY 2020 $65,041 20,798 85,839 37,405 (2,681) 120,563 26,042 $94,521 154,706 156,563 Q4 FY 2020 0.42 0.60 ciena | 27#28Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) (Amounts in thousands) Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Net income (GAAP) Add: Interest expense Less: Interest and other income (loss), net Add: Provision (benefit) for income taxes Add: Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements Add: Amortization of intangible assets EBITDA Less: Canadian Emergency Wage Subsidy Add: Share-based compensation cost Add: Significant asset impairments and restructuring costs Add: Acquisition and integration costs Adjusted EBITDA Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q4 FY 2021 $103,499 7,916 (168) 25,826 24,315 8,692 $170,416 21,366 5,700 1,712 $199,194 Q3 FY 2021 $238,232 7,776 795 (96,690) 24,623 8,824 $181,970 836 22,471 9,789 259 $213,653 Q2 FY 2021 $103,117 7,785 (1,274) 21,453 24,107 8,875 $166,611 40,444 21,535 8,209 294 $156,205 Q1 FY 2021 $55,348 7,360 (1,121) 11,966 23,188 9,642 $108,625 18,964 5,867 307 $133,763 Q4 FY 2020 $65,041 7,395 (249) 20,798 23,538 9,584 $126,605 16,920 7,854 3,127 $154,506 ciena 28#29