ACQUISITION OF COHERENT slide image

ACQUISITION OF COHERENT

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES Reconciliation of GAAP Segment Operating Income (Loss) to Segment Non-GAAP Operating Income (Loss)* $ Millions (Unaudited) Dec 31, 2022 Three Months Ended Sept 30, 2022 Six Months Ended Dec 31, Dec 31, Dec 31, 2021 2022 2021 Networking GAAP Operating Income Share-based compensation $ 90.0 $ 91.0 $ 50.4 S 181.0 $ 109.9 8.9 10.2 9.4 19.1 19.0 Amortization of acquired intangibles 16.4 16.5 16.4 32.9 33.4 Reconciliation of GAAP Measures to non-GAAP Measures* Integration and other(!) 2.5 1.1 2.5 2.0 $ Millions (Unaudited) Non-GAAP Networking Operating Income $ 117.8 $ 117.7 77.3 $ 235.5 $ 164.3 Three Months Ended Dec 31, 2022 Sept 30, Dec 31, Six Months Ended Dec 31. Dec 31, Materials GAAP Operating Income $ 81.5 S 75.3 S 56.5 S 156.8 103.3 2022 2021 2022 2021 Share-based compensation 12.8 17.2 9.3 30.0 22.5 Gross profit on GAAP basis $ 411.2 $ 443.6 S 311.2 $ 854.8 S 617.8 Amortization of acquired intangibles 33 3.2 3.6 6.5 7.0 Integration and other(1) 2.8 1.1 1.2 3.8 1.2 Share-based compensation 6.2 5.3 1.4 11.5 2.9 Start-up costs(3) 11.3 11.3 Amortization of acquired intangibles 15.3 47.4 9.7 62.7 19.3 Non-GAAP Materials Operating Income $ 100.3 S 96.8 $ $1.9 S 197.1 $ 145.3 Preliminary fair value adjustment on acquired inventory 112.0 45.5 - 157.5 Start-up costs(3) 1.2 1.2 Lasers GAAP Operating Income (Loss) $ (163.3) $ (123.8) $ $ (287.1) $ Share-based compensation 13.2 25.8 39.0 Integration and other(1) 1.2 0.4 1.2 1.6 1.2 Amortization of acquired intangibles 85.7 62.8 148.5 Gross profit on non-GAAP basis $ 545.9 S 542.2 $ 324.8 $ 1,088.1 S 642.4 Integration and other(1) 12.0 23.0 35.0 Transaction fees and financing(2) 38.7 38.7 Operating income on GAAP basis $ 8.2 $ 42.5 $ 98.2 $ 50.7 $ 193.3 Preliminary fair value adjustment on acquired inventory Non-GAAP Lasers Operating Income 112.0 45.5 - 157.5 $ 59.7 $ 71.9 $ $ 131.6 $ Share-based compensation 34.9 53.2 18.7 88.1 41.4 Amortization of acquired intangibles 105.4 82.5 20.0 187.9 40.4 Unallocated and Other GAAP Operating Income (Loss) $ S S Preliminary fair value adjustment on acquired inventory 112.0 45.5 157.5 Transaction fees and financing(2) (8.7) 8.7 in $ (19.9) 19.9 Start-up costs) 11.3 11.3 Non-GAAP Unallocated and Other GAAP Operating Income (Loss) $ $ $ $ Transaction fees and financing 38.7 7.9 38.7 19.9 Integration and other() 17.2 24.1 3.1 41.3 3.2 Total GAAP Operating Income $ 8.2 S 42.5 $ 98.2 $ 50.7 $ 193.3 Operating income on non-GAAP basis S 277.8 S 286.4 $ 159.2 $ 564.2 S 309.6 Non-GAAP Operating Income $ 277.8 S 286.4 S 159.2 S 564.2 S 309.6 COHERENT Copyright 2023, Coherent. All rights reserved. 40 40
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