Network and Service Enablement David Heard President, CommTest
2013 JDS Uniphase Corporation JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 39
5 4,300 $755M #1 2,300 Areas of Market Focus Customers Globally Annual Revenue (FY12) Market Positions Employees Cloud & Data Center Ethernet * Media Access & Content Fiber Cable TV Mobility Broadband & Network Infrastructure Network Visibility & Control Telco Cable NEM Ent/Gov Field Test L&P Service Assurance xdsl IPTV IP/Router Transmission Storage Americas APAC EMEA * Post-deployment Source: Frost & Sullivan, Prime Data 2013 JDS Uniphase Corporation JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 40
We are the world s leading network and service enablement company, providing unparalleled visibility and control Cloud Enabled Instruments Intelligent Probes Network Optimization Software Customer Experience Management Nano & Virtual Software Defined Big Data to manage and monetize the soaring growth of traffic, devices and applications. 2013 JDS Uniphase Corporation JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 41
2013 JDS Uniphase Corporation JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 42
Media Access & Content Mobility A wireless world with Ethernet everywhere Applications drive customer experience Software defining networks for cloud & big data Customers need end-to-end solutions Broadband & Network Infrastructure Cloud & Data Center Network Visibility and Control 2013 JDS Uniphase Corporation JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 43
Cloud & Data Center SAM $100M CAGR 9%+ Media Access & Content SAM $700M CAGR 3-4% Mobility Broadband & Network Infrastructure SAM $1.3B CAGR 8%+ SAM $800M CAGR 7-8% Source: JDSU Internal Data 2013 JDS Uniphase Corporation JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 44
Cloud & Data Center SAM $100M CAGR 9%+ Media Access & Content SAM $700M CAGR 3-4% Mobility Broadband & Network Infrastructure Network Visibility & Control SAM $1.3B CAGR 8%+ SAM $800M CAGR 7-8% SAM $1.4B CAGR 10%+ Source: JDSU Internal Data 2013 JDS Uniphase Corporation JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 45
Cloud & Data Center SAM $100M CAGR 9%+ Revenue Growth Mobile Data: 19.0% U-verse: 38.6% Business Services: 14.5% Project VIP Incremental 3-year Investment: $14B U-verse Expands 33% 4G LTE Covers 300M people Media Access & Content Mobility Broadband & Network Infrastructure Network Visibility & Control SAM $700M CAGR 3-4% SAM $1.3B CAGR 8%+ SAM $800M CAGR 7-8% SAM $1.4B CAGR 10%+ Source: ATT Analyst Conference and news release, 11/7/12 2013 JDS Uniphase Corporation JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 46
Cloud & Data Center SAM $100M CAGR 9%+ Mobile Growth 9% Base Station Construction Growth 125% Net Additions 2.37M Media Access & Content Mobility Broadband & Network Infrastructure Network Visibility & Control SAM $700M CAGR 3-4% SAM $1.3B CAGR 8%+ SAM $800M CAGR 7-8% SAM $1.4B CAGR 10%+ Source: SoftBank earnings results reported 1/31/13 2013 JDS Uniphase Corporation JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 47
Broadband Leadership, Moving Up the Stack Ethernet Everywhere It s a Wireless World Network Visibility & Control 2013 JDS Uniphase Corporation JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 48
TrueSpeed Software 2013 JDS Uniphase Corporation JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 49
Market Share $ Carrier Ethernet Landscape Packet Instruments Activation Assurance Learning Curve Penetration: Early Innings time 20% YoY * Growth * JDSU Revenue compared between Q2FY12 and Q2FY13 2013 JDS Uniphase Corporation JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 50
* JDSU Revenue compared between Q2FY12 and Q2FY13 CommTest Revenue Capacity Test Drive Test Base Station Test Ethernet Backhaul Fiber to the Antenna Small Cell Coverage Protocol Test Active Test Mobility Assurance 2013 JDS Uniphase Corporation JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 51
Network Appliance for Big Data Served Market Business Model Impact Last Year Now Customers 0 10 Trials 2 14 Funnel X 5X 2X LARGER Storage Capacity 2-3X FASTER Capture Data 400X FASTER Search & Extraction 2013 JDS Uniphase Corporation JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 52
Smart Network Application Platform Last Year Now Customers 2 14 Trials 6 36 Applications 5 8 NEMs Engaged First 7 Funnel X 8X Revenue 0 First 2013 JDS Uniphase Corporation JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 53
Big Data Created & Shared 8,000 6,000 Smartphones & Tablets Shipments 1,600 1,200 50B By 2020 4,000 800 2,000 400 0 0 Zettabytes 2005 2012 2013 2015 Millions 2005 2011 2012 2015 Estimated Estimated Signaling Messages for One Mobile Session GSM 3G /GPRS LTE Source: KPCB Internet Trends 12/3/12 2013 JDS Uniphase Corporation JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 54
Big Data Created & Shared 8,000 6,000 Smartphones & Tablets Shipments 1,600 1,200 50B By 2020 4,000 800 2,000 400 0 0 Zettabytes 2005 2012 2013 2015 Millions 2005 2011 2012 2015 Estimated Estimated Signaling Messages for One Mobile Session GSM 3G /GPRS LTE Source: KPCB Internet Trends 12/3/12 2013 JDS Uniphase Corporation JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 55
Core IP Network or MSC Metro Network Access Network Premises Network 2013 JDS Uniphase Corporation JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 56
Core IP Network or MSC Metro Network Access Network Premises Network Cloud & Data Center Media Access & Content Mobility Broadband & Network Infrastructure Network Visibility & Control JDSU in the best position to integrate solutions across the network 2013 JDS Uniphase Corporation JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 57
Q2FY12 Organic Growth M&A Portfolio Pruning No Budget Flush 26% YoY * Operating Income Growth Q2FY13 YoY Growth* Data Center 16% Mobility 11% Ethernet 20% Cloud & Data Center Media Access & Content Mobility Broadband Network Network Visibility & Control Target Model Invested in Segments Growing Faster Than Market * Revenue compared between Q2FY12 and Q2FY13 2013 JDS Uniphase Corporation JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 58
Quarterly Revenue Gross Margin Operating Margin Achieve Sustainable Model >$215M 64-66% 20-23% Q2FY13 $195M 64.4% 18.1% Q2FY12 $196M 60.2% 14.3% 26%+ growth in operating income YoY * Gross margin improvement Portfolio pruning Supply chain leverage Mix M&A accretive Growth in focus areas Leverage innovation PacketPortal scales in FY14 Complete supply chain & optimization efficiencies * Revenue compared between Q2FY12 and Q2FY13 2013 JDS Uniphase Corporation JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 59
* Revenue compared between Q2FY12 and Q2FY13 2013 JDS Uniphase Corporation JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 60