Communications and Commercial Optical Products (CCOP) Overview

Alan Lowe Executive Vice President and President, CCOP

Agenda

What is Communication & Commercial Optical Products (CCOP) Optical Communications Business & Differentiation The Future of Networking Emerging Growth Opportunities Expanding the TAM
Business Model Summary and Q&A

2011 JDS Uniphase Corporation

JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION

Its All About the Experience

You know us because you depend on our technology every day

2011 JDS Uniphase Corporation

JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION

Communications and Commercial Optical Products

Optical Communications

Optical Communications

Commercial Lasers & Solar CPV

Commercial Lasers & Solar CPV

Global Footprint with over 1,200 Employees

Established Optical Communications Leader

$8B TAM that grew 30-35% over the past year
JDSU provides: Optical communications products used by network operators and equipment manufacturers for telecommunications and enterprise data communications Lasers for a wide variety of OEM and consumer applications Photovoltaic components for the energy industry
| JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION

2011 JDS Uniphase Corporation

Optical Communications Business

Optical Communications
Transport Transmission Datacom Differentiated Product Portfolio In High Growth Markets
Product Market Position FY11 Q1 to Q2 Growth

ROADMS
Tunable XFP Super Transport Blade

#1

40%

#1
#1

70%
75%

Source: JDSU estim ates & Ovum Market share report Calendar Q3 Dec 2010

Broad Optical Portfolio

Telecom Transport T elecom Transmission Datacom Transmission Industrial Lasers Consumer Electronics
2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION

60% of Q2 2011 revenue from new products less than 2 years old Growth and profitability driven by differentiated products Wafer processing and photonic integration is a key foundation of innovation Leadership at the component, module, and sub system level
5

Demand for Optical Communications Products Continues to Grow

1,600

Optical Communications Market CAGR of 17%

1,200

Market TAM ($M)

800

400

0
Q3 2003 Q3 2004 Q3 2005 Q3 2006 Q3 2007 Q3 2008 Q3 2009 Q3 2010
Source: Ovum Global Market share report Q3CY10
2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION

JDSU The ROADM Leader

ROADM TAM Growing Rapidly as Switching Penetrates the Network Edge

Drives more demand for optical transport and transmission equipment in the network ULH / Long Haul Core IP Network Metro Network Access Network

ROADM Penetration
ROADM ROADM ROADM
ROADM

ROADM

ROADM

ROADM

ROADM

ROADM

ROADM

ULH / LH ROADM

Regional / Metro Core

ROADM

ROADM

Metro ROADM

ROADM

ROADM

ROADM ROADM ROADM ROADM ROADM

ROADM

ROADM

Cell Site

Mobile Device

Video applications such as Netflix and YouTube are driving over 37% of peak-time internet traffic
Source: Techcrunch Nov 2010
2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION

Mobile data traffic: 108% CAGR 2009-14

Source: Cisco Feb 1, 2011

3 & 4G wireless applications driving significant data traffic in wireline network

8

JDSU ROADMs are Deployed in the Vast Majority of Major Networks Worldwide
Performance
Carrying 100Gb today 24+ node capability High isolation

Delivery
First to market Thousands/per quarter

Reliability
Telcordia+ qualified >100M field hours

Quality
ISO qualified Excellent FIT values

Next Gen Solutions

Colorless Directionless Contentionless 100Gb and beyond
ROADM revenue grew 40% in FQ2 2011 and represented >30% of optical communications revenue
2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION

Driving Network Efficiency: Super Transport Blade and Tunable XFP

Pre Super Transport Blade node is a 3 full chassis solution
40-WSS-CE
40 DMX - CE

Super Transport Blade

With Super Transport Blade and Tunable XFP three chassis become one
40-WSS-CE
40 DMX - CE

OPT BST

OPT PRE

10E MR TXP 1530.33 1532.68

TCC 2

OSCM

OSCM

TCC 2

10E MR TXP 1530.33 1532.68

40 DMX - CE

40-WSS-CE

OPT PRE

OPT BST

10E MR TXP 1530.33 1532.68

10E MR TXP 1530.33 1532.68

10E MR TXP 1530.33 1532.68

10E MR TXP 1530.33 1532.68

10E MR TXP 1530.33 1532.68

10E MR TXP 1530.33 1532.68

TCC 2

TCC 2

10E MR TXP 1530.33 1532.68

10E MR TXP 1530.33 1532.68

10E MR TXP 1530.33 1532.68

10E MR TXP 1530.33 1532.68

10E MR TXP 1530.33 1532.68

10E MR TXP 1530.33 1532.68

FAIL

FAIL

FAIL
ACT/

FAIL ACT/STBY
SF

FAIL
ACT/

FAIL ACT/ STBY

SF

FAIL
FAIL ACT SF FAIL ACT SF

FAIL ACT/STBY SF

FAIL ACT/STBY SF

FAIL ACT/STBY SF

FAIL ACT/STBY SF

FAIL ACT/STBY SF
FAIL PWR B A ACT/STBY FAIL PWR B A ACT/STBY

FAIL ACT/STBY SF

FAIL ACT/STBY SF

FAIL ACT/STBY SF

FAIL ACT/STBY SF

FAIL ACT/STBY SF

FAIL ACT/STBY SF

FAIL ACT SF

FAIL ACT SF

ACT/ STBY SF

FAIL FAIL PWR B A ACT/STBY ACT SF

FAIL ACT SF B A ACT/STBY FAIL PWR

ACT/STBY SF

ACT/STBY SF

SF

SF

HAZARD LEVEL 1M

HAZARD LEVEL 1M

HAZARD LEVEL 1

HAZARD LEVEL 1

HAZARD LEVEL 1M

HAZARD LEVEL 1M

HAZARD LEVEL 1
30.7 36.2

HAZARD LEVEL 1

HAZARD LEVEL 1

HAZARD LEVEL 1

HAZARD LEVEL 1

HAZARD LEVEL 1

HAZARD LEVEL 1

HAZARD LEVEL 1

HAZARD LEVEL 1

HAZARD LEVEL 1

HAZARD LEVEL 1

HAZARD LEVEL 1

30.7 36.2

MX

MX
HAZARD LEVEL 1M HAZARD LEVEL 1M

TX 30.7 36.2

UC

MON

UC

MAJ MIN REM SYNC

MAJ MIN REM

TX 30.7 36.2

HAZARD LEVEL 1M

HAZARD LEVEL 1M

CRIT

CRIT

CRIT MAJ

CRIT MAJ MIN REM SYNC ACO

MON

RX

RX

TX

TX

MIN REM

MON

37.0 42.5

MX
TX 37.0 42.5

HAZARD LEVEL 1M

HAZARD LEVEL 1M

SYNC ACO
TX 37.0 42.5

37.0 42.5

MON

MX

SYNC ACO

ACO

RX

RX

TX

RX

RX

TX

ADD RX

COM

COM

43.3 48.9

MX
TX 43.3 48.9

43.3 48.9

MX

LAMP

LAMP

TX 43.3 48.9

COM

COM

ACO

ACO

ADD RX

TX

TX

ACO

ACO

LAMP

LAMP
40 DMX - CE

RX

RX

TX

RX

RX

TX

TX

TX

40-WSS-CE

TX

49.7 55.3

TX

OPT BST

OPT PRE

TX 49.7 55.3

TX 49.7 55.3

MX

MX

49.7 55.3

MX
DROP

MX

10E MR TXP 1530.33 1532.68

SD

DC

RX

DC

SD

TCC 2

OSCM

OSCM

TCC 2

10E MR TXP 1530.33 1532.68

OPT PRE

OPT BST

10E MR TXP 1530.33 1532.68

10E MR TXP 1530.33 1532.68

10E MR TXP 1530.33 1532.68

10E MR TXP 1530.33 1532.68

10E MR TXP 1530.33 1532.68

10E MR TXP 1530.33 1532.68

RX LINE

TX

LINE

DROP

RX

RX

TX

TX

!
56.1 61.8

!
RS-232
TX 56.1 -61.8

TX

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
TX RX

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
TX RX

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
TX RX

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
TX RX

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
TX RX

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
TX RX

!
RS-232 RS-232
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
TX RX

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
TX RX

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
TX RX

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
TX RX

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
TX RX

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
RX TX

RX

TX

RX

TX 56.1 -61.8

EXP

EXP

MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm

TX RX
RX

MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm

RX TX

56.1 61.8

MX

MX

TX

RS-232

MX

MX

FAIL

FAIL

FAIL
ACT/

FAIL ACT/STBY
SF

FAIL
ACT/

FAIL ACT/ STBY

SF

FAIL
FAIL ACT SF FAIL ACT SF

FAIL ACT/STBY SF

FAIL ACT/STBY SF

FAIL ACT/STBY SF

FAIL ACT/STBY SF

FAIL ACT/STBY SF

RX

RX

FAIL ACT SF

FAIL ACT SF

ACT/ STBY SF

FAIL FAIL PWR B A ACT/STBY ACT SF

FAIL ACT SF B A ACT/STBY FAIL PWR

ACT/STBY SF

ACT/STBY SF

TX

RX

MX
COM

MX
MX
COM

TX

MX

MX

MX

MX

MX

MX

MX

MX

MX

MX

MX

MX

MX
CO M

SF

SF

TCP/IP
MAX INPUT POWER LEVEL -8 dBm MAX INPUT POWER LEVEL -8 dBm

TCP/IP

CO M

TCP/IP

TCP/IP

HAZARD LEVEL 1M

HAZARD LEVEL 1M

HAZARD LEVEL 1

HAZARD LEVEL 1

HAZARD LEVEL 1M

HAZARD LEVEL 1M

HAZARD LEVEL 1
30.7 36.2

HAZARD LEVEL 1

HAZARD LEVEL 1

HAZARD LEVEL 1

HAZARD LEVEL 1

HAZARD LEVEL 1

30.7 36.2

MX

MX
HAZARD LEVEL 1M HAZARD LEVEL 1M

TX 30.7 36.2

UC

MON

UC

MAJ MIN REM SYNC

MAJ MIN REM

TX 30.7 36.2

HAZARD LEVEL 1M

HAZARD LEVEL 1M

CRIT

CRIT

MON

RX

TX

RX MON RX COM RX SD RX LINE

MON

37.0 42.5

MX
TX 37.0 42.5

HAZARD LEVEL 1M

HAZARD LEVEL 1M

SYNC ACO
TX 37.0 42.5

37.0 42.5

MX

ACO

RX

TX

RX

RX

TX

ADD RX

COM

ACO
43.3 48.9

ACO

COM

ADD RX

MX
TX 43.3 48.9

43.3 48.9

MX

LAMP

LAMP

TX 43.3 48.9

RX

TX

COM

TX

RX

RX

TX

SD

DC

TX

49.7 55.3

TX

TX 49.7 55.3

TX 49.7 55.3

MX

MX

49.7 55.3

MX
DROP

MX

RX

TX

DC

TX

LINE

DROP

RX

RX

TX

TX

!
56.1 61.8

!
RS-232
TX 56.1 -61.8

TX

TX

TX

TX

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
TX RX

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
TX RX

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
TX RX

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
TX RX

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
TX RX

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
RX TX

RX

TX

RX

TX 56.1 -61.8

EXP

CLIENT: +1 dBm DWDM : 0 dBm

TX RX
RX

CLIENT: +1 dBm DWDM : 0 dBm

RX TX

RX

RX

SLOT

STATUS

PORT

SLOT

STATUS

PORT
TX

EXP

MAX INPUT POWER LEVEL

MAX INPUT POWER LEVEL

RX

MX
COM

MX
COM

TX

56.1 61.8

MX

MX

TX

RS-232

MX

MX

MX

MX

MX

MX

MX

MX

MX
CO M

MX

TCP/IP
MAX INPUT POWER LEVEL -8 dBm MAX INPUT POWER LEVEL -8 dBm

TCP/IP

FAN FAIL CRIT

MAJ

MIN

FAN FAIL CRIT

MAJ

MIN

15454-PP-MESH-4= PATCH PANEL

CISCO

PID/VID PN SN CLEI CODE

10E MR TXP 1530.33 1532.68 10E MR TXP 1530.33 1532.68 10E MR TXP 1530.33 1532.68
TCC 2 TCC 2

10E MR TXP 1530.33 1532.68

10E MR TXP 1530.33 1532.68

10E MR TXP 1530.33 1532.68

SLOT
FAIL ACT/STBY SF FAIL ACT/STBY SF FAIL ACT/STBY SF
FAIL PWR B A ACT/STBY FAIL PWR B A ACT/STBY

STATUS

PORT

FAIL ACT/STBY SF

FAIL ACT/STBY SF

FAIL ACT/STBY SF

FAN FAIL CRIT

MAJ

MIN

HAZARD LEVEL 1

HAZARD LEVEL 1

HAZARD LEVEL 1

HAZARD LEVEL 1

HAZARD LEVEL 1

HAZARD LEVEL 1

15454-PP-MESH-4= PATCH PANEL

CRIT MAJ MIN REM

CRIT MAJ MIN REM SYNC ACO

CISCO

PID/VID PN SN

SYNC ACO

CO M

15454-PP-MESH-4= PATCH PANEL

ACO

ACO

CLEI CODE

CISCO
LAMP LAMP

PID/VID PN SN CLEI CODE

10E MR TXP 1530.33 1532.68 10E MR TXP 1530.33 1532.68 10E MR TXP 1530.33 1532.68

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
TX RX

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
TX RX

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
TX RX

!
RS-232 RS-232
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
TX RX

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
TX RX

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
RX TX

FAIL ACT/STBY SF

FAIL ACT/STBY SF

FAIL ACT/STBY SF

MX

MX

MX

MX

MX

MX

20x 10G tunable XFPs 40Channel ROADMs

TCP/IP

TCP/IP

HAZARD LEVEL 1

HAZARD LEVEL 1

HAZARD LEVEL 1

15454-PP-MESH-4= PATCH PANEL

CISCO

PID/VID PN SN CLEI CODE

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
TX RX

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
TX RX

!
MAX INPUT POWER LEVEL CLIENT: +1 dBm DWDM : 0 dBm
RX TX

SLOT

STATUS

PORT

MX

MX

MX

FAN FAIL CRIT

MAJ

MIN

JDSUs Super Transport Blade solution helped deliver 66% savings in density and power consumption
Major Network Equipment Provider

ROADM Optical Amplifier Optical Channel Monitor Control electronics Backplane interface software

Two complete chassis eliminated >66% Power consumption reduction Significant CAPEX savings

2011 JDS Uniphase Corporation

JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION

10

JDSU Providing Differentiated Transmission Solutions

11

Transmission Portfolio

Tunable XFPs
Opening opportunities for other transmission products

Full solutions available for major market applications in:

Local and storage area networks Metro and Long Haul transmission

40G and 100G transponders and components

Line and client-side solutions

Source: Ovum Global Market Share Report Dec 2010 Optical Com ponents
2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION

12

Tunable XFP A Revolution in Tunable Transmission

Before

Now

Tunable XFP functional integration drives:

85% smaller size 75% less power consumption Cost leadership

JDSU T-XFP technology replaces: Discrete Tunable Laser and Modulator

Fixed XFPs in 2009 Metro/Regional transponders in CQ3 2010 Long Haul transponders in CQ1 2011

ILMZ Chip

70% growth FQ1 2011 to FQ2 2011

Accounted for >10% of optical communications revenue

No competitor yet shipping in production volumes

Shipped over 25,000 Tunable XFPs into over 44 customer applications

300 PIN MSA

Tunable XFP

2011 JDS Uniphase Corporation

JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION

13

Self Aware Networks

A Future View of Transport Solutions

The Self Aware Network

Transport Network Connections
Sacramento Reno San Francisco

Network Management
Hi, operator, we are seeing heavy traffic between San Jose and Las Vegas. Should I resolve it for you ?

Yes
San Jose
Las Vegas

No

Los Angeles

San Diego
2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION

15

The Self Aware Network

Transport Network Connections
Sacramento Reno San Francisco

Network Management
The traffic in this network domain is now optimized. Congratulations!

Yes
San Jose
Las Vegas

No

Los Angeles

The Network monitors its own health and knows how to optimize performance when bandwidth demands change.
San Diego
2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION

16

JDSU Optical Solutions to Enable a Self Aware Network

Enabling Optical Products

Multi-degree ROADM Technology Tunable XFP for metro and Long Haul

JDSU

Integrated optical amplifiers including Raman Super Transport Blade for space and Power reduction 40G and 100G portfolio

2011 JDS Uniphase Corporation

JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION

17

CCOP Emerging Growth Opportunities

18

Optical Core Competencies Support New Growth

Leading filter deposition technology Vertical integration skills Macro & Micro Machining High reliability design and manufacturing Gesture Recognition

Key enabling technologies

High volume assembly in low cost locations Laser Enabled Magnetic Recording Established ASIC partnerships

Solar CPV
2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION

19

Entering the Fiber Laser Market

Commercial Lasers
1,000 800
$ Millions

Fiber Laser Market TAM

600
400

200 0 2009 2010 2011 2012 2013 2014 2015

Source: World Markets for Industrial Lasers + com pany estim ates

Macro-machining Platform
Higher cutting speed & lower cost 70% reduction in power consumption 60% reduction in operating costs No free-space beams or optics No laser gas (consumable) compared to CO2 lasers
2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION

Enabled by JDSU high power laser diodes Ability to cut highly reflective materials Multiple innovations within JDSU & with Amada Japan for next generations systems New solutions for micro-machining & material marking applications
20

Gesture Recognition Expanding into Consumer Electronics

Today: Gaming Future: Computing300M units/year

Gesture Recognition TAM by 2015

$500M $800M
Source: JDSU Estim ate

Future: Television250M units/year

Future: Mobile Handsets1.6B units/year

Gesture recognition in FQ2 represented <4% of total JDSU Revenue

2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION

21

Laser Enabled Magnetic Recording Advancing Hard Disk Drive Performance

Magnetic Recording Head

Suspension

Laser

Magnetic Head

Moving Magnetic Disk

TAM by 2015

Laser mounts to recording head to deliver targeted heat to the disk

300-400C temperature increase at disk surface >50% increase in storage density
22

$200M $500M
Source: JDSU Estim ate

2011 JDS Uniphase Corporation

JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION

Solar Concentrating Photovoltaics

Solar
Bare Cells

Concentrating optics

Module Assembly: Placed on tracker

Key enabling technology in concentrating photovoltaic cells Working with leading solar CPV system providers Improving manufacturability and cost via 6 wafer fabrication Optical to electrical cell efficiencies above 40% in 2011 Ideally suited for utility scale power generation

Receiver

Solar CPV TAM by 2015

$800 $1B
Source: JDSU Estim ate
2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION

23

CCOP Business Profile: Growth and Portfolio Expansion

Broadband build out ROADM / vertical integration leadership Lasers for materials processing Growing gesture recognition applications Transmission products including Tunable XFP
Self Aware Networks New gesture recognition applications Laser enabled magnetic recording Solar Smart Grid Optical interfaces for consumer electronics

Cloud computing
400G Other high speed optical solutions

Today

Tomorrow

Future

2011 JDS Uniphase Corporation

JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION

24

The Operating Model

Revenue and Margin Trend by Fiscal Quarter
$250 ($-millions)
$200 $150 $100 $50

CCOP Revenue

40% 35% 30% 25% 20% 15% 10%

5%

Gross Margin

Operating Margin

0% $0 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 -5% Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11

CCOP Target Operating Model

CCOP Revenue CCOP Operating Income

FQ2 2011 Results $191M 17.8%

Prior Business Model >$150M 10-15%

Current Business Model >$190M 16-20%

2011 JDS Uniphase Corporation

JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION

25

Key Takeaways

Differentiated products Singular leader in ROADMs, Super Transport Blade and Tunable XFP
Strong in transmission products led by success of the Tunable XFP, 40/100G components & modules Established in commercial markets such as gesture recognition and fiber lasers
New revenue streams Growing TAM and SAM

New business model with continuous improvement

2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION

26