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RBC Capital Tech Conference

Tom Waechter Chief E ec ti e OfficerTom Waechter, Chief Executive OfficerJune 10, 2010

© 2008 JDSU. All rights reserved. JDSU CONFIDENTIAL & PROPRIETARY INFORMATION1

Safe Harbor Statement

Certain statements in this presentation constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1934. “Forward-looking” statements are all statements made by us, other than those dealing specifically with historical matters and any statements we make about the conduct of our business or finances up to this moment. All other statements made by us are forward-looking statements which include any information provided on future business operations and guidance regarding our future financial performance. Actual results may differ materially from those projected in the forward-looking statements. Factors that could cause actual results to materially differ from those in the forward-looking statements are discussed in the Company’s Securities and Exchange Commission Filings, particularly the risk factors section of our most recent form 10-K.This presentation includes Non-GAAP financial measures where indicated. These non-GAAP financial measures complement the Company’s consolidated financial statements presented in a c a easu es co p e e e Co pa y s co so da ed a c a s a e e s p ese edaccordance with GAAP. However, these non-GAAP financial measures are not intended to supersede or replace the Company’s GAAP results. A detailed reconciliation of historical GAAP results to the historical non-GAAP results is provided in the “Non-GAAP Condensed Consolidated Statement of Operations” schedule to our news release announcing our most p grecent quarterly financial results. A discussion of the GAAP measures excluded from the forward-looking non-GAAP measures is provided in the “Business Outlook” paragraph of the news release. The news release is located in the Investor Relations section of our web site at www.jdsu.com.


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JDSU Strategy

Execute as a diversified technology company focused on optical and broadbandcompany focused on optical and broadband innovation

Enable customers’ innovation in broadband and optical marketsDiversify our customer base and product portfolioShape product portfolio: profitability followed by p p p p y yrevenue growthFocus on best-in-class operating metrics


Enabling Broadband & Optical InnovationC i ti & C i ti Ad d O ti l

Business Segments

Communications & Commercial Optical Products

Communications Test & Measurement

Advanced Optical Technologies

Total Market Size (Annual)* $4.3B $2.8B $1.5B(Annual)

Annual Growth Rate* 5-15% 6-12% 5-10%

JDSU Market P iti * #1-4 #1-2 #1-2Position* # # #

Markets

Telecom, Datacom, Submarine, Long Haul, Metro, Access, Biotech,

Microelectronics,

Telecom/Cable Access, Metro, Core & Home

Networking, SAN

Currency, Defense Authentication, Instrumentation

Semiconductors and Materials Processing

Sample

Alcatel-Lucent, ASML, Becton Dickinson, Ciena,

Cisco, Ericsson, ESI,,

Alcatel-Lucent, AT&T, British Telecom, China Telecom, Comcast, Telmex, Verizon

Astra-Zeneca, Peoples Bank of China, HP, ITT, Lockheed

Martin, Pfizer, SICPA


pCustomers

, , ,,Tellabs, Huawei, Nortel, NSN,

Fujitsu

, , , ,

* Sources: Central Banks, Frost & Sullivan, Infonetics Research, Ovum-RHK, PIRA Research, Prime Data, US Chamber of Commerce, and internal analysis.

Q3 FY10 Summary

R d d 3% t t t $332 9 illi 19%Revenue decreased 3% quarter-over-quarter to $332.9 million, up 19% year-over-year

Gross margins of 44.1%, third consecutive quarter at or above 44%

Operating margins of 6 6% highest non-December quarter operating marginOperating margins of 6.6%, highest non-December quarter operating margin

Net income of $23.2m compared to $26.6m a quarter ago

EPS of $0.10, above Wall Street expectations

$420 50%

$ , p

Free cash flow positive $7.9 million, 14th consecutive quarter of positive cash flow from operations

$300$320$340$360$380$400$420

25%30%35%40%45%50%

$200$220$240$260$280$300

6 6 7 7 7 7 8 8 8 8 9 9 9 9 0 0 0

0%5%10%15%20%


Q30

Q40

Q10

Q20

Q30

Q40

Q10

Q20

Q30

Q40

Q10

Q20

Q30

Q40

Q11

Q21

Q31

Revenue ($M) Gross Margin (%)

Enabling Broadband & Optical Innovation

Communications Test & Measurement

Product Groups Lab & Production, Field Service, Service Assurance

T&M Highlights Fiscal Q3 revenue down 17.6% Q/Q, up 14.1% Y/YBook to bill >1Typical seasonality and material supply constraintsGross margin of 54 9% due to product mix and ASP trendsGross margin of 54.9% due to product mix and ASP trendsCompleted acquisition of NSD business from Agilent

InnovationInnovation

Market Position Market leader in served addressable markets #1 market position in optical transport and storage network test

for the lab and production marketfor the lab and production market#1 field test positions in the Ethernet, fiber field, xDSL and cable

networking markets.• Gross Margins: 57%-61%


Operating Model • Operating Margins: 20%-23%at ≥ $175 million of revenue

JDSU Acquires NSD – 3 Lines of Business

Service Assurance– Largest business line by revenue– Complements JDSU solutions by adding carrier-class OSS with

probe based signaling test including LTE testing capability

Service Assurance– Largest business line by revenue– Complements JDSU solutions by adding carrier-class OSS with

probe based signaling test including LTE testing capabilityprobe-based signaling test, including LTE testing capability– Market-leading carrier solutions for network deployment,

management and operation

probe-based signaling test, including LTE testing capability– Market-leading carrier solutions for network deployment,

management and operation

Network Protocol Test– Largest installed customer base for network protocol analyzers– Used for both lab and field testing by NEMs and wireless service

providers

Network Protocol Test– Largest installed customer base for network protocol analyzers– Used for both lab and field testing by NEMs and wireless service

providersproviders– Supports protocols such as WiMAX, Bluetooth, 3G and emerging

LTE technologies

providers– Supports protocols such as WiMAX, Bluetooth, 3G and emerging

LTE technologies

Wi l D i T tWi l D i T tWireless Drive Test– Drive test network optimization platform– Vehicle-mounted mobile test solution– Measures performance and troubleshoots network coverage in

Wireless Drive Test– Drive test network optimization platform– Vehicle-mounted mobile test solution– Measures performance and troubleshoots network coverage in


p gsupport of all wireless technologies including LTE and WiMAX

p gsupport of all wireless technologies including LTE and WiMAX

JDSU vs. The Competition

Access Points Transport Signaling

• JDSU is the only vendor with end to end solutions for LTE • Won award for Best LTE Test Product at 2010 LTE World Summit

Access Points Transport Signaling

Drive Test Active Service Testing

Portables System(s) Protocol Analyzers

System(s)

JDSU NSD In process JDSUCommTest

JDSUCommTest

NSD NSD

OtherLeading LTE PlayersPlayers


No solution Some advantage Leadership position


Communications & Commercial Optical Products

Innovation

Optical Communications

highlights

Innovation focus on functional integrationQ3 revenue grew by 15% Q/Q; book to bill >1Gross margins improved to 26%; hit target 25-30% 1 qtr earlyROADM 22% Q/Q t 25% f OCROADM revenue grew 22% Q/Q to over 25% of OC revenue9 of 11 product lines grew; record bookings in at least 2 yrs

Lasers Nearly 12% sequential revenue growthhighlights Gross margins improved to 41.3%, also hitting target

Pipeline for new products expected to increase SAM by more than 3X

Operating Model 10% 15% at ≥ $150 million of revenue


Operating Model 10%-15% at ≥ $150 million of revenue


Advanced Optical Technologies

Solutions Security solutions: brand protection, anti counterfeiting y p gfor currency, transaction card authentication

Custom optics for aerospace and defenseCustom color solutions

Innovation

Hi hli ht R d fit ti fit dHighlights Record revenue, gross profit, operating profit and bookings in Q3Strength in currency including new US $100 billBegan shipping filter for gesture recognitiong pp g g g

Trends Customers seeking more complex integrated design features to combat counterfeiting

Increased custom optic applications


Operating Model Operating Margins: 34%-37% at current revenue levels

JDSU Quarterly Operating Model

Revenue (mil) Operating Margin

CommTest $175 20‐23%

NSD $40 20‐23%

CCOP $150 10‐15%CCOP (Optical Components/Lasers)

$150 10 15%

AOT $50 34‐37%

TOTAL $415‐425 11%


Fiscal Year 2010 Strategic Priorities

Focus on profitable, market-based innovation

Increase our global market presence

Focus on lean

Maximize the utilization of our assets


JDSU Investment Thesis

An Investment in Broadband and Optical Innovation

An Evolving Business ModelClearly Defined Near-Term and Longer-Term Targets


Q&A


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