Company Overview

Innovative photonics accelerating the scale and speed of

cloud, networking, advanced manufacturing, and 3D sensing
By the numbers

$1.0B in FY17 revenue

~2,000 employees

10 offices around the globe

~1,000 patents
Global operations

Ottawa, Canada Switzerland

Milpitas, CA Japan
Slovenia

China
San Jose, CA

Thailand

Lumentum site Lumentum headquarters Lumentum wafer fab Contract manufacturer

© 2018 Lumentum Operations LLC | LUMENTUM CONFIDENTIAL AND PROPRIETARY INFORMATION 4

Lumentum Financial Overview

Revenue Trend FY17 Revenue Mix

$1,100
20%
$1,000

$900
Revenue ($M)

$800

$700
18%
$600 61%

$500
1%
$400
FY11

FY14

FY17
FY10

FY12

FY13

FY15

FY16

Telecom Datacom Industrial Consumer

Notes:
1. FY09-16 pro-forma consolidated Lumentum revenue shown. Lumentum was part of JDSU until August 1, 2015, approximately 5 weeks into Q1FY16.
2. Industrial revenue in revenue mix contains Lumentum Commercial Lasers and Industrial Diode Laser revenues

© 2018 Lumentum Operations LLC | LUMENTUM CONFIDENTIAL AND PROPRIETARY INFORMATION 5

Partner of choice in key markets

DATACOM TELECOM COMMERCIAL 3D SENSING

LASERS

Focused on Broad portfolio of Enabling high- Photonics for

leading the leading 100G+ value materials high-volume
100G optical processing consumer electronics
transition components and applications applications
subsystems growing faster
than the market

© 2018 Lumentum Operations LLC | LUMENTUM CONFIDENTIAL AND PROPRIETARY INFORMATION 6

Business Operation
 Telecom/Datacom operation

Vertical and functional integration core technology developed

in-house with assembly and test through internal
manufacturing and network of CMs

Internal Wafer Sub-Assemblies and Modules, Circuit Packs,

Fabrication Components and Whiteboxes

Indium Phosphide (InP) Lithium Niobate (LiNbO3)

Silica/Silicon (SiO2/Si) Gallium Arsenide (GaAs)

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Commercial Lasers and 3D Sensing operation

Vertical and functional integration core technology developed

in-house with assembly and test through internal
manufacturing and network of CMs

Internal Wafer Pump Sources Commercial Lasers

Fabrication (industrial diodes) and Modules

GaAs Wafer

Gallium Arsenide (GaAs)

© 2018 Lumentum Operations LLC | LUMENTUM CONFIDENTIAL AND PROPRIETARY INFORMATION 9

Market Trends
 Telecom trends
Internet and cloud data centers Rapid emergence of 100G
Driving enormous traffic in long haul and metro

200 700,000
12000
600,000
150 10000
500,000
EB of data

100G Ports
8000
100 EB of data 6000
400,000
Long Haul
4000 300,000
50 Metro
2000 200,000
- 0 100,000
2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019
-
Fixed Internet Managed IP Mobile data Cloud data center Traditional data center 2014 2015 2016 2017 2018 2019 2020
Source: Cisco VNI and Cloud Index Source: Ovum

Telecom providers retooling toward data Next generation network architectures

centric model – supply chain upheaval have high ROADM content

CDC
WHITEBOXES TRANSPORT
NETWORKS
NG Metro
DOMAIN 2.0 DIRECT PLUGGABLE
SALES TO CARRIER
FLEX SPECTRUM

© 2018 Lumentum Operations LLC | LUMENTUM CONFIDENTIAL AND PROPRIETARY INFORMATION 11

 Datacom trends
$4.5B
$4.5B inTotal
TotalAddressable
AddressableMarket
Market
Rapid Growth in 100G Market Fueled by
 Hyperscale data center buildouts  Enterprise, telecom and wireless infrastructure upgrades

Enterprise Data Centers Datacom TAM Hyperscale Data Centers

10G 40G 100G

XFP: SR, LR, DWDM, Tunable QSFP+: SR4, eSR4 CFP2/4: LR4
SFP+: SR, LR, ZR, DWDM, Tunable QSFP+: LR4, LR4-Lite QSFP28: SWDM4, SR4, eSR4, PSM4, CWDM4, LR4

Source: Based on LightCounting 2016 and Lumentum Estimates

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 Commercial Lasers trends

$3B SAM Opportunity Lumentum Served Market

kW Macromaterials Micromaterials Biomedical and Analytics

Processing Processing (Mechanical Instrumentation
(CO2 Replacement) Tool Replacement) (Long Lifecycle)

$1,600M $950M $400M

Source: Strategies Unlimited, Lumentum estimates Cutting Welding/other

~75% 25%

Gen2 6kW Fiber High power ns High power ps

Laser Engine UV Laser UV Laser

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 Laser micromaterials processing of consumer electronics

1.7B Smartphones and Tablets in 2017*

Si IC singulation
MEMS, RF and power devices
PCB via holes
Si/glass/other interposers
LED flash singulation
Ceramics cutting
Marking, cutting, drilling, welding
TFT annealing, AMOLED
Hydro/oleo-phobic surfaces

*Source: Gartner July 2017

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 3D Sensing trends

Gaming Mobile Computing Mobile Devices Virtual reality, Automotive

Gaming was an Applications Use in mobile New applications

early adopter extend to include consumer emerging
biometric electronic devices
authentication, 3D beginning with
scanning and major
printing manufacturers

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Financial Performance
Q1 FY18 results (non-GAAP)
$ millions except for EPS, % of revenue

Q1 FY18 Q4 FY17 Q1 FY17

Revenue $243.2 $222.7 $258.1

Gross Margin 82.7 34.0% 73.2 32.9% 88.2 34.2%

Operating Expenses 54.1 22.2% 52.8 23.7% 55.5 21.5%

Operating income 28.6 11.8% 20.4 9.2% 32.7 12.7%

Diluted EPS $0.43 $0.39 $0.49

Diluted Shares-M 64.5 63.8 62.4

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Strong balance sheet
$ millions

Selected Items
Q1 FY18 Q4 FY17

Cash and Short-term Investments $532.5 $555.3

Working Capital(1) 212.8 190.8

Property, Plant & Equipment, net 293.7 273.5

Total Assets 1,248.4 1,232.9

Total Liabilities 571.5 578.3

Shareholder’s Equity(2) 676.9 654.6

(1) Working capital excluding cash and short-term investments

(2) Includes convertible preferred stock of $35.8M

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www.lumentum.com