Transcript Slide 1

The Leader in Photonics
Superior Reliability & Performance
Forward-Looking Statements & Non-GAAP Measurement
Forward-Looking Statements
The statements in this presentation that relate to future plans, events or performance are forward-looking statements
that involve risks and uncertainties, including risks associated with business and economic conditions, customer and/or
supplier contract cancellations, manufacturing risks, competitive factors, successful introductions of new products,
uncertainties pertaining to customer orders, demand for products and services, growth and development of markets for
the Company's products and services, and other risks identified in our filings made with the Securities and Exchange
Commission, including, most recently, our Registration Statement on Form S-3. Actual results, events and performance
may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date hereof. The Company undertakes no obligation to release publicly the result of any revisions to
these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events. Readers are encouraged to refer to the risk disclosures described in the the
Company’s registration statement on Form S-3 filed with the SEC on October 10, 2006 and reports on Forms 10-K, 10-Q
and 8-K, as applicable.
Non-GAAP Measurement
The Company’s statement regarding its adjusted EBITDA percentage target is a non-GAAP financial measure. The most
comparable GAAP measurement is net income, which is not currently accessible on a forward-looking basis. Adjusted
EBITDA reflects earnings before interest, taxes, depreciation, amortization, stock compensation expenses and other
non-operating income and expense items. These items, which are required to determine GAAP net income, are subject
to significant change by end of fiscal 2010, given the impact of potential acquisitions, tax rate changes and other
operational factors which will heavily impact these items and are also impacted by the Company’s historical stock option
investigation and the effect of any compensation charges arising from future equity grants.
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The Photonics Company
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The Photonics Company
Provider of Photonics* Solutions - Primarily Lasers - for
Commercial and Scientific Research Applications
 Founded in 1966
 Sales $600.4 Million (ttm)
 Orders $579.4 Million (ttm)
 ~2400 Employees
 Sales 31% U.S.; 69% International (ttm)
As of 6/30/07
*Photonics is the Merger of Lasers, Optics and Electronics
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Comparison of Cumulative Ten-Year Sales Return Indexed
$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
$0.00
1996
1997
1998
1999
2000
Non-diode Lasers
2001
Global Semi
2002
2003
Global GDP
Coherent
2004
2005
2006
Sources: Coherent, LFW, Deere & Co., SEMI, IMF-World Economic Outlook Database
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Our Strategy and Objectives
 Leverage the depth & breadth of our technology portfolio to
optimize growth and performance
 Create new markets through internal and independent application
development
 Continue to lead the revolution in commercial lasers
 Complement internal product/market development through
acquisitions
 Deliver superior financial performance through EBITDA
expansion and continued strong cash flows
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Competitive Landscape: Lasers and Electro-optic
Components (non-telecom and consumer electronics)
$3 Billion Global Market
Coherent
20%
~$600 million
~200 additional
companies
44%
$1.3 billion
IPG
5%
~$150 million
SP
6%
~$160 million
JDSU
Excel
3%
4%
~$100 million
~$125 million
Cymer
18%
~$544 million
Public data and Company estimates
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2006 Industry Map
($3B minus telecom, CE)
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Superior Reliability & Performance
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Geographic Sales Distribution
$600.4 Million (ttm as of 6/30/07)
Europe
29%
United States
31%
34%
6%
Asia Pacific
R.O.W.
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Order Mix
$579.4 Million (ttm as of 6/30/07)
Materials Processing
16%
OEM Components
& Instrumentation
26%
35%
Microelectronics
20%
Scientific Research
& Gov. Programs
Superior Reliability & Performance
3%
Graphic Arts & Display
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Microelectronics
Flat Panel Display Capital Equipment
TFT-LCD, PDP & Next Generation Fabs
Enabling Manufacture of High End Displays (Low Temperature Polycrystalline
Si-TFTs)
Color Filter Processing
Driving Next Generation Technology for Thin Flexible Displays (OLEDs)
Printed Circuit Board & Packaging Equipment
Transitioning from Conventional Tools to Improve Yields
and Reduce Feature Sizes
Laser Microvia Drilling
Laser Direct Imaging
Solar Cell Manufacturing
Semiconductor Capital Equipment
Primarily 193 nm and Below and 300 mm Fabs
Metrology/Inspection Tools
Photomask Tools
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OEM Components & Instrumentation
OEM Components
Enabling Laser Components to Industries such as Medical,Thermal
Imaging, and Defense
Leading Supplier of Excimer Lasers to OEM System Integrators for
Ophthalmic Surgery
Bioinstrumentation Market
Proteomics, Genomics and Drug Discovery
New Architectures with Ultimate Goal of Portable Diagnostic Tools
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Materials Processing
Miniaturization and Yields are Major Drivers
Cutting and Welding
Processing of Plastics
Marking and Coding
Cladding and Hardening
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Graphic Arts & Display
Conversion to Digital Work Flow Paradigm and
“Green” (i.e., Environmental) Motivation
Computer-to-Plate
Digital Offset Presses
Large Format Projection & Digital Media
Laser TV and Consumer Electronics– Non-exclusive license to Osram
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Scientific Research & Government Programs
Scientific Laser Market
University, Industrial and Government Laboratories
Incubating Many Emerging Applications and Technologies
Establishing Customer Relationships and Brand Equity
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Technology
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Optically Pumped Semiconductor (OPS):
The Power of Platforms
Electrical Input: 40W400W (up to10X more
efficient than other laser
sources)
Output Power:
10 mW-10W
Output Wavelengths:
460 nm-1060 nm
Characteristics:
Reliable, Efficient,
Compact,
Air-Cooled
Units Shipped to Date:
>10,000
MTBF:
>27,000 hours
A Versatile & Revolutionary Technology
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The Power of Platforms: Future Developments

Microelectronics and materials processing represent the two
largest core market growth opportunities for Coherent

Over the next 12-18 months, we plan to introduce at least two
new platforms into these markets

The key attributes are:

Configurable packages to serve multiple customers/applications

Modular design for performance and cost evolution – estimate up to 10
years of runway

Higher contract manufacturing/low cost region compatibility
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Financial Priorities
and Progress
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Sales, Bookings & Backlog ($M)
$700
$600
$500
$400
$300
$200
$100
$0
2002
Sales
2003
2004
Backlog
2005
2006
Bookings
TTM'07*
*Trailing Twelve Months as of 6/30/07
As of 6/30/07
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Cash Net of Debt ($M)
$600.00
$500.00
$400.00
$300.00
$200.00
Convertible debt
of $200M was
repaid in August
2007 at par plus
accumulated
interest
$100.00
$0.00
2002
2003
Cash & S-T Investments
As of 6/30/07
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2004
2005
Debt
2006
Q3'07
Cash Net of Debt
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Financial Priorities and Progress

Special Committee concluded its voluntary review of historical
stock option practices

Announced restatement range of $22-28 million

Significant majority of charges stem from the period of 1995-2001

More than half the charge is from 2000
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Financial Priorities and Progress

EBITDA targets of 19-23% exiting fiscal year 2010


Material cost reductions, expanded use of contract manufacturers, SG&A
leverage, introduction of more flexible and cost-effective platform designs
and continued yield and reliability improvements
Continued emphasis on capital structure

Choices under consideration include accretive acquisitions and a share
repurchase program
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Why Coherent

Photonics is the enabling solution; Coherent is the enabling
provider

Coherent is the Photonics Leader with multiple growth
opportunities in existing and emerging markets

Coherent has a track record of innovation, execution and
financial strength
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