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Power Electronics for Green Energy

II-VI Historical GAAP EPS and Adjusted EPS Equivalent To calculate EPS comparable to some peers, below are the values of typical adjustments used by other companies II-VI Consolidated Q1 Q2 Q3 Q4 Q1 Q2 Q3 Summary of Typical Industry Non- GAAP Adjustments FY17 FY17 FY17 FY17 FY18 FY18 Q4 FY18 FY18 Q1 Q2 FY19 FY19 Q3 Q4 FY19 FY19 Amortization 3.2 3.2 3.1 3.2 3.6 3.8 3.6 3.6 3.7 4.1 4.2 4.6 Share Based Comp - COGS 0.7 0.6 0.7 0.5 1.0 0.8 0.4 0.6 1.0 0.5 0.9 0.8 Share Based Comp - SGA 3.4 3.3 3.8 3.0 5.3 4.5 3.2 3.8 4.3 4.5 7.0 6.0 M&A Related Expenses 0.3 2.0 1.9 8.6 4.1 4.8 7.3 7.1 7.6 7.0 11.9 9.1 7.2 8.0 10.9 17.7 16.2 16.2 Tax (8.4) (0.1) (0.2) (0.1) (0.2) (0.4) Impact of the "Tax Cuts and Jobs Act" and Company Actions 15.8 (6.5) (1.3) PAT 7.3 7.1 7.6 (1.4) 11.9 24.9 0.6 6.5 10.9 17.7 16.0 15.8 Outstand Shares 63.6 64.4 65.0 65.0 65.3 65.0 72.4* 65.1 66.2 65.7 65.7 65.7 EPS Impact of Typical Industry Non- GAAP Adj. 0.11 0.11 0.12 (0.02) 0.18 0.38 0.01 0.10 0.16 0.27 0.24 0.24 * Average Shares Outstanding - Diluted for the Three Months Ended March 31, 2018 was calculated under the If-Converted method to account for the Company's convertible debt. Reference Table 7: Earnings Per Share Reconciliation from the Q3 FY2018 Earnings Release. IIVI Page 33
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