EMCORE : Corporate Investor Presentation March 2024

Investor Presentation

March 2024

emcore.com

Safe Harbor Statement

Forward-Looking Statements:

The information provided herein may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 ("Exchange Act"). These forward-looking statements are largely based on EMCORE Corporation's (the "Company") current expectations and projections about future events and financial trends affecting the financial condition of the Company's business. Such forward-looking statements include, in particular, statements about the Company's future results of operations, financial position, plans, strategies, targets, focus, goals, opportunities and business prospects; expectations regarding the Company's customer contracts, long-term programs, backlog and pipeline; expectations with respect to operating leverage; expectations and estimates with respect to the market and industry in which the Company operates; expectations regarding the timing, size and completion of the proposed offering; expectations regarding the sale or shutdown of certain products, businesses and facilities, including the expected timeframe thereof and benefits therefrom; and assumptions relating to the inertial navigation operating model.

These forward-looking statements may be identified by the use of terms and phrases such as "anticipates", "believes", "can", "could", "estimates", "expects", "forecasts", "intends", "may", "plans", "projects", "targets", "will", and similar expressions or variations of these terms and similar phrases. Statements regarding matters that are not historical are forward-looking statements. These forward-looking statements relate to future events or the Company's future financial performance and are subject to business, economic, and other risks and uncertainties, both known and unknown, that may cause actual results, levels of activity, performance, or achievements of the Company's business or its industry to be materially different from those expressed or implied by any forward-looking statements.

These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected, including without limitation, the following: (a) risks related to our ability to obtain capital; (b) disruptions to our operations as a result of our restructuring activities; (c) costs and expenses incurred in connection with restructuring activities and anticipated operational cost savings arising from the restructuring actions; (d) the effects of personnel losses; (e) risks related to the sale of our Broadband and defense optoelectronics businesses, including without limitation (i) the failure to fully realize the anticipated benefits of such transaction, (ii) third party costs incurred by the Company related to any such transaction, (iii) risks associated with liabilities related to the transaction that were retained by the Company, and (iv) risks and uncertainties related to the transfer to the buyer of our manufacturing support and engineering center in China; (f) risks related to shutdown or potential sale of our Chips business and wafer fabrication facility, including without limitation (i) the failure to successfully negotiate or execute definitive transaction agreements, (ii) termination of any definitive agreement prior to closing, (iii) failure to achieve any anticipated proceeds from any such sale or to fully realize the anticipated benefits of such a transaction, even if the potential transaction occurs, (iv) diversion of management's time and attention from our remaining businesses to the sale of such businesses, (v) third party costs incurred by the Company related to any such transaction, and (vi) risks associated with any liabilities related to the transaction or any such assets or business that are retained by the Company in any sale transaction; (g) rapidly evolving markets for the Company's products and uncertainty regarding the development of these markets; (h) the Company's historical dependence on sales to a limited number of customers and fluctuations in the mix of products and customers in any period; (i) delays and other difficulties in commercializing new products; (j) the failure of new products: (i) to perform as expected without material defects, (ii) to be manufactured at acceptable volumes, yields, and cost, (iii) to be qualified and accepted by our customers, and (iv) to successfully compete with products offered by our competitors; (k) uncertainties concerning the availability and cost of commodity materials and specialized product components that we do not make internally; (l) actions by competitors; (m) risks and uncertainties related to the outcome of legal proceedings; (n) risks and uncertainties related to applicable laws and regulations; (o) acquisition-related risks, including that (i) the revenues and net operating results obtained from our recent acquisitions may not meet our expectations, (ii) the costs and cash expenditures for integration of our recent acquisitions may be higher than expected, may take longer than expected to implement and may result in fewer efficiencies and improvements to the operation of our business and our financial results than currently expected, (iii) we may not recognize the anticipated synergies from our recent acquisitions, (iv) there could be losses and liabilities arising from these acquisitions that we will not be able to recover from any source, and (v) we may not realize sufficient scale from these acquisitions and will need to take additional steps, including making additional acquisitions, to achieve our growth objectives; (p) the effect of component shortages and any alternatives thereto; (q) risks and uncertainties related to manufacturing and production capacity; (r) risks related to the conversion of order backlog into product revenue; and (s) other risks and uncertainties discussed under Item 1A - Risk Factors in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023, as such risk factors may be amended, supplemented, or superseded from time to time by the Company's subsequent periodic reports it files with the Securities and Exchange Commission ("SEC").

Forward-looking statements are based on certain assumptions and analysis made in light of the Company's experience and perception of historical trends, current conditions, and expected future developments as well as other factors that the Company believes is appropriate under the circumstances. While these statements represent the Company's judgment on what the future may hold, and the Company believes these judgments are reasonable, these statements are not guarantees of any events or financial results. All forward-looking statements in this presentation are made as of the date hereof, based on information available to the Company as of the date hereof, and subsequent facts or circumstances may contradict, obviate, undermine, or otherwise fail to support or substantiate such statements. The Company cautions you not to rely on these statements without also considering the risks and uncertainties associated with these statements and the Company's business that are addressed in its filings with the SEC that are available on the SEC's web site located at www.sec.gov, including the sections entitled "Risk Factors" in the Company's Annual Report on Form 10-K. Certain information included in this presentation may supersede or supplement forward-looking statements in its other Exchange Act reports filed with the SEC. The Company does not intend to update any forward-looking statement to conform such statements to actual results or to changes in the Company's expectations, except as required by applicable law or regulation.

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Safe Harbor Statement

Non-GAAP Financial Measures:

This presentation includes non-GAAP financial measures where indicated. Management believes these non-GAAP financial measures reflect the Company's core ongoing operating performance and facilitates comparisons across reporting periods. The Company uses these measures when evaluating its financial results and for planning and forecasting of future periods. The Company believes that these non-GAAP measures are also useful to investors in assessing its operating performance. While the Company believes in the usefulness of these non-GAAP measures, there are limitations. Non-GAAP measures may not be

reported by other companies in the Company's industry and/or may not be directly comparable to similarly titled measures of other companies due to potential differences in calculation. Further, the Company

believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP. These measures should only be used to evaluate the Company's results of operations in conjunction with the corresponding GAAP measures and investors should consult the appendix of this presentation for reconciliations of these non-GAAP financial measures to their most directly comparable U.S. GAAP measure.

Trademarks:

EMCORE and the EMCORE logo are trademarks of EMCORE Corporation. All other trademarks and service marks are the property of their respective owners. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

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The New EMCORE: A&D Inertial Navigation Solutions (INS)

Founded in 1986, IPO in 1997

INERTIAL NAVIGATION SOLUTIONS

• Largest independent supplier of Inertial Navigation solutions with vertically integrated operations
• Pure Play in Aerospace and Defense in the $3B+1 Inertial Navigation Market
• $605M of Estimated Lifetime Contract Value in Production and Awarded with the leading Prime Contractors world-wide

(1) Estimated global market size for high-end inertial sensors in 2021 per Yole High End Sensors Market Research Report 2022.

FACILITIES

Budd Lake, NJ (HQ):

FOG and RLG

(acquired April 2022)

Alhambra, CA:

Wafer Fab, FOG, Admin

Concord, CA:

QMEMS

(acquired June 2019)

Tinley Park, IL:

FOG and TACNAV

(acquired August 2022)

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The New EMCORE: A&D Inertial Navigation Solutions (INS)

LARGEST INDEPENDENT SUPPLIER OF INERTIAL NAVIGATION SOLUTIONS

WARFIGHTERS DEPEND ON EMCORE FOR MISSION CRITICAL INERTIAL NAVIGATION PRODUCTS

~$3B	COMMERCIAL
$394M
	TAM

ADDRESSABLE MARKET -

A SIGNIFICANT GROWTH

OPPORTUNITY

EMCORE's inertial navigation

systems are vital in GPS-denied environments and crucial for the U.S. Military's resilient PN&T capabilities

		TACTICAL		NAVIGATION		STRATEGIC
		$898M	$845M		$687M
				TAM	TAM		TAM

EMCORE ADVANTAGE(a)

Lower Cost	Smaller
Lighter	Less Power

ESTABLISHED, LONGSTANDING RELATIONSHIPS WITH LEGACY AND EMERGING PRIME CONTRACTORS

35 years	35 years		35 years	35 years	25 years	20 years
20 years	15 years	15 years	16 years	12 years	11 years	10 years
7 years	5 years	5 years	4 years	3 years	3 years	3 years

(a) Compared to competing products.

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The New EMCORE: A&D Inertial Navigation Solutions (INS)

WIDE RANGE OF PRODUCTS AND TECHNOLOGIES WITH VERY HIGH BARRIERS TO ENTRY

ROBUST BACKLOG, LARGE AND GROWING PIPELINE ON KEY LONG-TERM AND WELL- FUNDED PROGRAMS

IMPROVING GROSS MARGIN PROFILE WITH SIGNIFICANT OPERATING LEVERAGE

• From Drilling Rigs to Satellites, EMCORE offers unique FOG, RLG and QMEMS products and technologies
• Component engineering and manufacturing drive superior cSWAP and Margins

TAC440

TAC460 GEO FOG

TAC480

NAV600*

NAV820

STRAT950

STRAT1000

MK48	LRHW	HIMARS	MTSB	CMSP	MK54

BA777X

AMPV

BQM-177A /XQ-58 Valkyrie

CROWS V

• Operational improvements and restructuring initiatives continue to improve gross margins
• Reducing internally funded R&D costs with customer funded NRE
• Significant operating leverage of business will drive margin enhancement as revenue continues to grow

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Building the Leading Inertial Navigation Solutions Company

August 2022

Acquired KVH FOG

and Inertial

Navigation Business

Acquired KVH's FOG and Inertial Navigation Business for ~$55M

• Added 100, 384 ft2 Tinley Park facility
• ~$30m annual revenue business
• Further product line expansion

Products Acquired

• FOGs
• FOG IMUs
• INS
• TACNAV

May 2022

Acquired L3Harris

Space and

Navigation Business

Acquired L3Harris' Space and Navigation Business for ~$5M

• Expanded EMCORE's product portfolio
• Key partnership opportunities for future business

Products Acquired

• CIRUS IRUs and IMUs
• IPADS systems
• PNU systems

June 2019

Acquired

Systron Donner

Inertial

Acquired Systron Donner Inertial for ~$26M

• Scalable quartz chip-based platform for higher volume gyro applications
• Broadened EMCORE's tactical and navigation grade market reach

Products Acquired

• MEMS Gyroscopes
• MEMS IMUs

Patented Fiber Optic Gyroscope technology

• Integrated InP chip-based platform delivers strong price/performance
• First production in 2015, Raytheon Premier Supplier award

Programs Won

• Raytheon MTSB
• FLIR
• MiNAV

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Successfully Exited Broadband & Defense-Opto Businesses

April 2023

Restructuring announced to shutdown Broadband & Defense-Opto product

lines following months of discussions

with interested buyers

August 2023

LOI signed for the sale of Broadband (excluding Chips) and Defense-Opto product lines

October 2023

Successfully completed sale of Broadband (excluding Chips) and Defense-Opto businesses to

Photonics Foundries

Future

Exploring sale of Chips business and Indium Phosphide (InP) wafer

fabrication facility in Alhambra

Focus on growing A&D revenue and returning to profitability

Revenue

$34.1		$5.9	$5.0	$2.6
	$25.0
	$13.8
				$26.7	$26.8
		$19.7	$20.0	$24.3	$24.1

$8.1 $7.6 $9.9

Q1'2022 Q2'2022 Q3'2022 Q4'2022 Q1'2023 Q2'2023 Q3'2023 Q4'2023 Q1'2024

	Inertial Navigation		Broadband & Def-Opto

Note: Historical financials are not pro forma for the acquisitions of KVH and L3S&N.

1. Non-GAAPmeasure.
2. Q4'2023 and Q1'2024 do not include Non-GAAP Gross Profit contribution from Broadband & Def-Opto.

Non-GAAP Gross Profit & Margin(1)

38%

	30%
					16%
		18%		15%	16%
42%
33%			30%	31%
				29%
		26%	2%		22%
		25%

(2) (2)

Q1'2022 Q2'2022 Q3'2022 Q4'2022 Q1'2023 Q2'2023 Q3'2023 Q4'2023 Q1'2024

Inertial Navigation		Broadband & Def-Opto

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Positioned to Capitalize On

Large & Growing TAM

EMCORE is positioned to benefit from increased U.S. defense spending:

❯ Modernization and sustainment is a key focus of the U.S. military as geopolitical threats

are increasing - specifically in Eastern Europe and the Indo-Pacific regions

❯ Relevant modernization focus areas include space and GPS, hypersonic weapons &

missile defense and unmanned aircraft - all which require sophisticated defense

electronics systems and positioning units

❯ Increasing FMS and DCS spending is driven by increased global demand for sophisticated

$3B+ Global Inertial

Navigation Market(1)

$845M		$687M

weapons systems that require inertial navigation solutions

U.S. National Defense Budget(2)

(US$ in billions)

	$886	~$110B	$30B+
	$859	FY23 US FMS	FY24 DOD BUDGET
		NOTIFICATIONS	FOR MUNITIONS
	$782
$738	$742	$185B+	$280B
		GLOBAL MILITARY	US CHIPS ACT
		UAS SPENDING	SPENDING (10

Navigation Grade

(e.g., unmanned vehicles)

$898M

Strategic Grade

(e.g., nuclear weapons)

$394M

					(10 YEARS)	YEARS)
FY2020	FY2021	FY2022	FY2023	FY2024

1. Estimated global market size for high-end inertial sensors in 2021 per Yole High End Inertial Sensors Market Research Report 2022.
2. Per historical U.S. DoD budget documents, Fiscal Year 2023 National Defense Authorization Act and FY2024 President's Budget Request.

Tactical Grade	Industrial Grade
(e.g., platform stabilization)	(e.g., industrial robots)

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$605M of Est. Lifetime Contract Value in Production and Awarded + Additional ~$300M of Identified New Opportunities

• Estimated $160M of total Lifetime Contract Value of programs in production
• Selected and awarded development and qualification contracts on an additional estimated $440M of Lifetime Contract Value
• Long lived, high priority programs provide strong visibility on future growth
• Pursuing additional ~$300M in program pipeline

Major Current Programs

			Initial		Estimated	Expected
Program	Customer	End User	Contract	Stage	Lifetime
Duration
			Date		Value
BoRG	L3 Harris	ULA	2022	Production	$25M	6 Years
MK54	Raytheon	US Navy	2020	Production	$20M	4 Years
Torpedo
IRST	Lockheed	USAF	2019	Production	$20M	5 Years
AMPV	BAE	US Army	2018	Production	$40M	10 years
MK48	Lockheed	US Navy	2014	Production	$50M	10 Years
Torpedo
MMS	Raytheon	US Navy	2018	Dev/Qual	$70M	5 Years
"Jaguar"	Raytheon	USAF	2018	Development	$180M	10 Years

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