#1II-VI INVESTOR DAY November 8th, 2017 ' WN Nasdaq IIVI MATERIALS THAT MATTER™ 200 1#2Agenda IIVI INVESTOR DAY November 8th, 2017 Welcome Introduction Strategic Overview Innovation Financial Outlook Mark Lourie, Director of Corporate Communications Fran Kramer, Chairman of the Board Dr. Chuck Mattera, President & Chief Executive Officer Dr. Giovanni Barbarossa, Chief Technology Officer and President, Laser Solutions Segment Mary Jane Raymond, Chief Financial Officer MATERIALS THAT MATTER™ | 2#3Safe Harbor Statement IIVI 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. MATERIALS THAT MATTER™ | 3#4IIVI INVESTOR DAY November 8th, 2017 Introduction Fran Kramer, Chairman of the Board 100 MATERIALS THAT MATTER™ | 4#5Origins of Our Company Name IIVI II-VI "TWO SIX" Refers to groups II and VI of the Periodic Table of Elements. S Sulfur Zn Zinc Se Selenium Cd Te Cadmium Tellurium MATERIALS THAT MATTER™ | 5#6Since 1971 1971 We Started In Saxonburg, PA 1987 II-VI Pittsburgho Saxonburg Francis J. Kramer(Left) and Dr. Carl J. Johnson (Right) Saxonburg Campus in 1997 INVESTOR DAY November 8th, 2017 2017 IPO 30th Anniversary since the IPO MATERIALS That MatteR™ | 6#7II-VI Worldwide Values IIVI Customers First Open Communications IIVI Worldwide Values Honesty and Integrity Teamwork Continuous Improvement and Learning Manage by the Facts A Safe, Clean, and Orderly Workplace MATERIALS THAT MATTER™ | 7#8IIVI INVESTOR DAY November 8th, 2017 Strategic Overview Dr. Chuck Mattera, President & Chief Executive Officer 100 MATERIALS That MatteR™ | 8#9Our Company Structure IIVI II-VI Laser Solutions Photonics Performance Products IOT DNA -NE FLUE 00x B IIVI MATERIALS THAT MATTER™ | 9#10IIVI Vertically Integrated Manufacturing Platforms Industrial Materials Processing Optical & Wireless Communications | Advanced Materials & Military | 3D Sensing & IoT Emerging Technologies TTY II-VI Sub Systems Components Materials Znse c ZnS YLF Ge Al2O3 SiC YAIOS YVO4 SIB4C Si AlSiC KNbO Sicic PMN-PT CaF2 YAG Sisic CSIC AIBIC BisTes IoT M IIVI MATERIALS THAT MATTER™ | 10#11Our Footprint IIVI North America World Headquarters $2,000+ Manufacturing and R&D Facilities Global Sales Offices Europe ↑ 500+ Asia 17,500+ 10,000+ Worldwide employee 44 Worldwide Locations 14 Countries MATERIALS THAT MATTER™ | 11#12Our Strategic House IIVI Strategic Areas of Focus Collective Outcomes Quality Driven Vision Metrics Desired State Why Stakeholders Invest CORS and Goals Mission Values Near-Term Focus Purpose Foundation Stakeholders' Demands that Drive Long-Term Thinking and Actions Long-Term Focus MATERIALS THAT MATTER™ | 12#13Over 4 Decades of Continuous Growth 7% Average Organic Revenue Growth over the last 10 years Over $1B* $972 FY1987-FY2017 Cumulative Revenue $7.4B PAT $0.8B Cash Flow from Ops $1.2B R&D $0.4B Cap Ex $0.6B $827 $742 $683 $551 $516 $487 $316 $333 $292 $224 $225 $187 $123 $114 $128 $143 $28 $38 $61 $53 $62 $74 IPO 1987 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Micro-optics Vergo Optics ZnSe Growth Laser Power Corp UV Filters Laser Power Corp Selenium Refinery Micro-optics Photop Technologies Optical Channel Optical Amplifiers Monitors Oclaro Optical Amplifier Pacific Rare Metals Aegis Lightwave Compound Semi. Wafer Fab Kaiam Laser Limited (U.K. Fab) Micro-optics Lighting Optical Silicon Carbide Litton SIC Group Thermo-electric Coolers Metal Matrix Marlow Industries Acquisition History Laser Processing Heads Max Levy Autograph Highyag Components M Cubed Technologies Conformal Patterning Semiconductor Lasers Oclaro Semiconductor Laser Faraday Rotator Integrated Photonics Epiwafer Foundry Epiworks II-VI Nasdaq IIVI Military & Aerospace Optical Systems LightWorks Optics Advanced Coatings Oclaro Optical Coatings Direct Diode High Power Lasers Direct Diode GaAs Wafer Fab Anadigics MATERIALS THAT MATTER™ | 13#14Diversified Customer Base Across 7 End Markets Serving Over 1000 Customers laserline AAurubis CORNING SUMITOMO ELECT Device Innovati Ford FUJITSU QE ST life augmented SAMSUNG Communications Automotive TRUMPF 1245M COHERENT. 11.11. CISCO. SPI Lasers Consumer Infineon Electronics Materials Processing Military CKHEED TARTIN BECKMAN COULTER Nikon 当 Bystronic ASML Semiconductor Equipment Life Science BAE SYSTEMS KLĄ Tencor SHOWA DENKO DNA ZEISS HAN'S LASER A ACACIA *Sampling of representative customers based on approvals for public release IIVI Complete Raycus GENOMICS™ A Company MATERIALS THAT MATTER™ | 14#15Megatrends IIVI Ubiquitous Connectivity Robotics SIMO HONDA Industry 4.0 Big Data Consumer Electronics Renewable Energy Next Generation Defense Systems IOT Internet of Things Low Emission Vehicles MATERIALS THAT MATTER™ | 15#16SiC Substrates for Wireless Communications IIVI Share of the Projected Annual $200 Billion Investment In 5G by Country Starting Around Year 2020 US China Japan Germany U.K. Source: Bloomberg Business Week 28% 23% 11% 4% 3% ש ש SiC for High Frequency GaN Electronics Market IM CAGR ('17-'22): +15% Source: Yole MATERIALS That MatteR™ | 16#17SiC Substrates for Power Electronics Electric Car Announcements IIVI GM 20 all electric cars by 2023 Ford 13 models by 2023 Toyota & Mazda U.S.-based plant by 2021 Daimler/Mercedes-Benz Electrify entire portfolio by 2022 Renault/Nissan/Mitsubishi 12 All-Electric cars by 2022 Jaguar Land Rover Volvo VW/Audi/Porsche Source: Mashable Electrify (HEV/EV) all lineup by 2020 Electrify entire line by 2019 300 EV/HEV by 2030 +9 TESLA SiC for High Power Electronics Market CAGR ('17-'21): +23% Source: Yole MATERIALS THAT MATTER™ | 17#18Laser & Micro-optics for 3D Sensing II-VI * VCSEL: Vertical Cavity Surface Emitting Lasers 2115 VCSEL Market CAGR ('15-'22): +19% Source: Markets & Markets Logitech MATERIALS That MatteR™ | 18#19Opto-Electronics for LiDAR II-VI Self-driving car availability by car manufacturer Tesla 2017 Volvo 2020 GM 2018 Daimler 2020 Hyundai 2020 BMW 2021 Renault-Nissan 2020 Ford 2021 Toyota 2020 Honda 2025 Source: AXIOS Laser Diodes for LiDAR Market ('17-'22): +20% Source: Strategies Unlimited MATERIALS That MatteR™ | 19#20Laser Optics & Precision Ceramics for Extreme Ultraviolet (EUV) Lithography PRI IIVI EUV Lithography System L A Front/Back End Processing System EUV Source System Beam Transport System CO2 System EUV Lithography Systems Market CAGR ('16-'22): 9% Source: Allied Market Research MATERIALS THAT MATTER™ | 20#21Differentiated Product Portfolio for Industrial Lasers IIVI Laser Remote Welding Head Direct Diode Laser Engine ENERG RLSK D ☐ Fiber Lasers Direct diode Lasers Broad portfolio of components including: pump lasers, high power combiners, acousto-optic modulators, high power isolators, gratings and micro-optics. Fiber Lasers Market CAGR ('17-'22): +8% Direct Diode Market CAGR ('17-'22): +7% Source: Strategies Unlimited MATERIALS THAT MATTER™ | 21#22II-VI Optics & Optoelectronics for Datacenters Z-Block ******** 2222 222R 0000 UUU คกก UUU 000 0000 000 800 008 353 000 000. 333 BBB 200 Datacom Optical Components Market CAGR (17-22)+25% MATERIALS THAT MATTER™ | 22#23Leading Edge Subsystems for Intelligent Communications Networks North Facific Ocean (4 IIVI South Pacific Ocean TAT OTDR+ 0:11 IN U 86 Optical Amplifier Passive Components OTDR Optical channel monitor Chilp South Atlantic O Ocean 800 Laser Chip-on-Carrier Assembly Thermoelectric Cooler Optics 1150 Angals Zonda Cozomi quo Namibia Zimbabwe Baitkwankk Maslagitsour O South Af Optical Communications Market CAGR ('15-'21): +12% Source: Ovum MATERIALS THAT MATTER™ | 23 88#24Engineered Materials, High Energy Laser and Optics for Military & Aerospace IIVI World leader in large sapphire panel output 24,000 sf dedicated facility F-35 Electro-Optical Targeting System (EOTS) Infrared Countermeasure Systems Market CAGR ('17-'22): +8% Source: Strategies Unlimited MATERIALS THAT MATTER™ | 24#25IIVI Strategy for Growth by Acquisition Dr. Chuck Mattera, President & Chief Executive Officer INVESTOR DAY November 8th, 2017 MATERIALS THAT MATTER™ | 25#26Recent Platform Acquisitions IIVI OPTICAL COMMUNICATIONS & ACCESS TO CHINA MARKET COMPOUND SEMICONDUCTOR LASERS A VERTICAL INTEGRATION & SCALE COMPOUND SEMICONDUCTOR DEVICES: AIMING BEYOND LASERS 2010 2013 2016 loT 2017 MATERIALS That Matter™ | 26#27Optical Communications & Access to China Market Jan. 2017: "China unveils $170 billion telecoms investment" 35% Solutions FY2017 Revenue by Segments So 24% Photonics 41% China 30% Industrial tical & Wireless 44% Communications 8% Semi. Cap. Equip FY2017 Revenue by Markets 7% 11% Life Science, Consumer, Other Chinese government plans to lay 90,000km of fiber cables and deploy around two million 4G wireless base stations over the next three years Source: Global Telecoms Business II-VI MATERIALS THAT MATTER™ | 27#28Compound Semiconductor Lasers IIVI Automotive Life Sciences Military Material Processing Communications Consumer Electronics 169 109 MATERIALS THAT MATTER™ | 28#29Vertical Integration & Scale IIVI 150mm epi wafers Scaling up to 6 Inch Wafers 150mm VCSEL wafers MATERIALS That MatteR™ | 29#30Compound Semiconductors: Aiming Beyond Lasers IM - RIXTRON G4 MOCVD Reactor Newton Aycliffe, U.K. IIVI Part of a broader strategic move to provide a versatile 6" wafer fab for GaAs, SiC and InP-based devices. "I skate to where the puck is going, not where it has been" Wayne Gretzky MATERIALS That MatteR™ | 30#31IIVI INVESTOR DAY November 8th, 2017 Innovation Dr. Giovanni Barbarossa, Chief Technology Officer and President, Laser Solutions Segment MATERIALS THAT MATTER™ | 31#32II-VI Innovation Strategy Diversified per Platforms Engineered Materials 1929 197 5 SURG التالي Markets Differentiation 1 μm Customers Valued By BEST PRODUCT Performance JMa Process Intensive H owle. H T Products Set Capital Intensive $ Infrastructure Vertical Integration Business Model MATERIALS That MatteR™ | 32#333D Sensing ananananan Power Breadth 197 IIVI .. Breadth of Applications Technology Breadth Wavelength Breadth MATERIALS That MatteR™ | 33#34Innovative Optical Connectivity IIVI 000 100G Switch Intra Data Center TX RX Transceiver e.g. 300m Links Transceiver RX TX TX Transceiver IIVI RX RX IIVI Transceiver TX Inter Data Center IIVI 100G Switch IIVI 4TB/S over 20 km ☑ MATERIALS THAT MATTER™ | 34#35Enabling Through Miniaturization II-VI B-UNK .. as DOM - E-VI COR CFP2 CFP4 MATERIALS That MatteR™ | 35#36Silicon Carbide Compound Semiconductor Innovating in substrate and compound semiconductor epitaxial growth Current Market World First 200mm SiC Wafer In 2015 1.3" 2" 3" 100mm 150mm 200mm 300mm (In development) IIVI ROTRON 58% 5G ヤ MATERIALS THAT MATTER™ | 36#37INVESTOR DAY November 8th, 2017 Financial Outlook Mary Jane Raymond, Chief Financial Officer Over $1B* $972 $827 $742 $683 $551 $516 $487 $316 $333 $292 $224 $225 $187 $123 $114. $128 $143 $28 $38 $61 $53 $62 $74 IPO 1987 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 II-VI 2013 2014 2015 2016 2017 2018 MATERIALS That MatteR™ | 37#38Capital Allocation Goals For II-VI Deliver Superior Shareholder Returns Be One Of The Best Managed Growth Companies Select investments and acquisitions to Accelerate Growth Over $1B* $972 $827 $742 $683 $551 $516 $487 $316 $333 $292 $224 $225 $187 $123 $114. $128 $143 $28 $38 $61 $53 $62 $74 IPO 1987 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 TI-VI 2013 2014 2015 2016 2017 2018 MATERIALS THAT MATTER™ | 38#39Investment Parameters Diversified Growth Markets Strict Investment Returns Required Above 20% Engineered Materials Over $1B* $972 $827 Multiple Applications $742 $683 $551 $516 $123 $114 CIRC $28 $38 $61 $53 $62 $74 IPO 1987 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 TI-VI 2013 2014 2015 2016 2017 2018 MATERIALS THAT MATTER™ | 39#40Our Capital Allocation Priorities Align to our Strategy Going Forward INVESTMENT DELIVERED GROWTH 30 Years through FY17 16% 30Yr. CAGR on Revenue R&D 16% 30Yr. CAGR on Net Income $972 $827 CAP EX 23% ROIC - Last 10 Year Average* 24% Revenue From New Products - 3Yr. SOURCES OF CASH Earnings Cash from Operations $333 $487 $516 $551 Capital Markets Asset Monetization 2010 2011 2012 2013 2014 2015 2016 2017 M&A $551 $516 $487 $316 $333 $292 $224 $225 * Defined as trailing 12 months of net income divided by the sum of capital (common stock, APIC, treasury shares) and debt $123 $114. $128 $143 (current and long-term portion). $74 $28 $38 $53 IPO 1987 1995 1996 1997 1998 1999 2000 IIVI 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 MATERIALS THAT MATTER™ | 40#41Returns to the Shareholders $972 $827 $742 $683 $551 $516 $487 $316 $333 $292 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 * FY2016 FY2017 Accelerating Growth Targeting Revenue Growth 2.5-4.0X GDP Across the Cycle EPS Growth 1.5-2.0X Revenue Growth Rate Including Platform Investments ROIC R&D CAP EX 18-25% 7-11% of Sales 10-15% of Sales 20% of 30 Years Cum. Total FY2018 Run Rate 12% of 31 Years Cum. Total 25% 20% 19% 16% 15% 12% 9% 8% 8% Datacom LiDAR 3D Sensing Compound Semiconductors SiC Wireless Optical Transport EUV Lithography Industrial Laser Military Defined as trailing 12 months of net income divided by the sum of capital (common stock, APIC, treasury shares) and debt MATERIALS THAT MATTER™ | 41 IIVI#42IIVI MATERIALS THAT MATTER WN Nasdaq IIVI | www.ii-vi.com 42 42#43IIVI Reconciliation Tables Sept 30, 2017 Three Months Ended Year Ended June 30, 2017 Sept 30, June 30, June 30, 2016 2017 2016 35.7 $ 23.7 $ 115.5 $ 91.8 Adjusted operating income $ 31.8 $ Acquired business's one-time expenses Operating income (2.0) $ 29.8 $ 35.7 $ 23.7 $ 115.5 $ 91.8 Interest expense 3.6 2.3 1.2 6.8 3.1 Other expense (income), net (0.7) (0.4) (1.4) (10.1) (1.3) Income taxes 5.8 1.2 7.6 23.5 24.5 Net Earnings $ 21.1 $ 32.6 $ 16.3 $ 95.3 $ 65.5 Adjusted EBITDA Adjusted EBITDA margin Acquired business's one-time expenses Acquired depreciation and amortization EBITDA EBITDA margin Interest expense Depreciation and amortization Income taxes Net Earnings Sept 30, 2017 Three Months Ended June 30, 2017 Sept 30, 2016 June 30, 2017 Year Ended June 30. 2016 $ 50.4 $ 19.3% 55.0 20.1% $ 40.0 $ 189.2 149.8 18.1% 19.5% 18.1% (2.0) 1.0 $ 49.4 $ 18.9% 55.0 20.1% $ 40.0 $ 189.2 149.8 18.1% 19.5% 18.1% 3.6 2.3 1.2 6.8 3.1 18.9 18.9 14.9 63.6 56.7 5.8 1.2 7.6 23.5 24.5 $ 21.1 $ 32.6 $ 16.3 $ 95.3 65.5 MATERIALS That MatteR™ | 43#44IIVI II-VI Reports GAAP EPS To calculate EPS comparable to some peers, below are the values of typical adjustments used by other companies II-VI Consolidated Summary of Typical Industy Non-GAAP Adjustments Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Amoritization 3.2 3.2 3.2 3.2 3.6 3.8 Share Based Comp 4.1 3.9 4.5 3.5 6.3 4.7 One Time Costs 0.4 1.2 - Operation Dilution (Inv roll through) - 0.2 2.0 1.0 7.3 7.1 7.7 7.3 13.1 9.5 Tax PAT Outstanding Shares EPS Impact of Typical Industry Non-GAAP Adj. 2.3 1.8 1.8 0.3 2.8 1.2 5.0 5.3 5.9 7.0 10.3 8.3 65.3 65.3 65.3 65.3 65.3 65.3 0.08 0.08 0.09 0.11 0.16 0.13 MATERIALS That MatteR™ | 44#45Biographies Francis J. Kramer. IIVI Mr. Kramer joined the Company in 1983 and served as its President from 1985 to 2014, its Chief Executive Officer from 2007, and its Chairman and CEO from 2014 to 2016. He now serves as the Company's Chairman of the Board of Directors. Mr. Kramer holds a B.S. degree in Industrial Engineering from the University of Pittsburgh and an M.S. degree in Industrial Administration from Purdue University. Mr. Kramer had served as director of Barnes Group Inc., a publicly traded aerospace and industrial manufacturing company (NYSE: B), from 2012 to 2016. Mr. Kramer provides our Board and the Company with guidance on our growth strategy, in particular on the profitable execution of the strategy to achieve sustainable competitive advantage. He contributes considerable business development experience. He also has significant operations experience that is relevant to the Company's strategy. Vincent D. Mattera, Jr. Dr. Mattera initially served as a member of the II-VI Board of Directors from 2000-2002. Dr. Mattera joined the company as Vice President in 2004 and served as Executive Vice President from January of 2010 to November of 2013, when he became the Chief Operating Officer. In November of 2014, Dr. Mattera became the President and Chief Operating Officer, and was reappointed to the Board of Directors. In November of 2015, he became the President of II-VI. In September of 2016, Dr. Mattera became the Company's third President and Chief Executive Officer in 45 years. During his career at II- VI he has assumed successively broader management roles, including as a lead architect of the company's diversification strategy. He has provided vision, energy and dispatch to the company's growth initiatives including overseeing the acquisition-related integration activities in the US, Europe, and Asia- especially in China-thereby establishing additional platforms. These have contributed to a new positioning of the company into large and transformative global growth markets while increasing considerably the global reach of the company, deepening the technology and IP portfolio, broadening the product roadmap and customer base, and increasing the potential of II-VI. Prior to joining II-VI as an executive, Dr. Mattera had a continuous 20 year career in the Optoelectronic Device Division of AT&T Bell Laboratories, Lucent Technologies and Agere Systems during which he led the development and manufacturing of semiconductor laser based materials and devices for optical and data communications networks. Dr. Mattera has 34 years of leadership experience in the compound semiconductor materials and device technology, operations and markets that are core to II-VI's business and strategy. Dr. Mattera holds a B.S. in chemistry from the University of Rhode Island (1979), and a Ph.D. degree in chemistry from Brown University (1984). He completed the Stanford University Executive Program (1996). His 14 year tenure at II-VI underpins a valuable historical knowledge about the Company's operational and strategic issues. We believe that Dr. Mattera's expertise and experience qualifies him to provide the board with continuity and a unique perspective about on the Company. MATERIALS THAT MATTER™ | 45#46IIVI Biographies Giovanni Barbarossa Giovanni Barbarossa joined II-VI in 2012 and has been the President, Laser Solutions Segment, since 2014, and the Chief Technology Officer since 2012. Dr. Barbarossa was employed at Avanex Corporation from 2000 through 2009, serving in various executive positions in product development and general management, ultimately serving as President and Chief Executive Officer. When Avanex merged with Bookham Technology, forming Oclaro, Dr. Barbarossa became a member of the Board of Directors of Oclaro and served as such from 2009 to 2011. Previously, he had management responsibilities at British Telecom, AT&T Bell Labs, Lucent Technologies, and Hewlett-Packard. Dr. Barbarossa graduated from the University of Bari, Italy, with a B.S. in Electrical Engineering, and a Ph.D. in Photonics from the University of Glasgow, U.K. Mary Jane Raymond Mary Jane Raymond has been Chief Financial Officer and Treasurer of the Company since March 2014. Previously, Ms. Raymond was Executive Vice President and Chief Financial Officer of Hudson Global, Inc. (NASDAQ: HSON) from 2005 to 2013. Ms. Raymond was the Chief Risk Officer and Vice President and Corporate Controller at Dun and Bradstreet, Inc., from 2002 to 2005. Additionally, she was the Vice President, Merger Integration, at Lucent Technologies, Inc., from 1997 to 2002 and held several management positions at Cummins Engine Company from 1988 to 1997. Ms. Raymond holds a B.A. degree in Public Management from St. Joseph's University, and an MBA from Stanford University. MATERIALS That MatteR™ | 46