CIBC Technology & Innovation Conference

The test, monitoring and analytics experts

Philippe Morin
Chief Executive Officer
May 14, 2019
 Certain statements in this presentation, or given in response to your questions,
may constitute forward-looking statements within the meaning of the Securities
Act of 1934. The Private Securities Litigation Reform Act of 1995 provides “safe-
harbors” for such forward-looking statements and we intend that any forward-
looking statements made today be subject to the safe harbors. We caution you
that any forward-looking statements are just predictions. They are not
Forward- guarantees of future performance and involve risks and uncertainties. Actual
results may differ materially from those projected in forward-looking statements

looking and we invite you to review the company’s most recent filings with the Securities
and Exchange Commission or Canadian securities commissions for a discussion

statements of the factors at risk. These forward-looking statements speak only as of the date
of this presentation and, unless required by law or applicable regulations, we will
not be reviewing or updating the material that is contained herein.

For a reconciliation of adjusted EBITDA to IFRS net earnings, refer to the

Q2 2019 news release on EXFO’s website.

All amounts in millions of US dollars, except otherwise noted.

© 2019 EXFO Inc. All rights reserved. 2

The test,
monitoring No.1 Top 5 1,900
in optical test in communications employees in
& analytics equipment market monitoring market 25+ countries

experts.

© 2019 EXFO Inc. All rights reserved. 3

 EXFO by numbers

$269.5M $11.9M $17.2M $14.4M

Revenue IFRS net loss Adjusted EBITDA2 Cash flows from
increase of 10.8% attributable to margin of 6.4% operations
parent interest1

in FY 2018

1Represents net loss excluding share of the net loss attributable to Astellia’s minority shareholders.
2Adjusted EBITDA is a non-IFRS measure and represents net loss attributable to the parent interest before interest, income taxes, depreciation and amortization, stock-based compensation costs, restructuring charges,
acquisition-related deferred revenue fair value adjustment, change in the fair value of the cash contingent consideration, share in net loss of an associate, gain on the deemed disposal of the investment in an associate,
and foreign exchange gain.
© 2019 EXFO Inc. All rights reserved. 4
 Q2 2019 results
Revenue Bookings IFRS Adjusted
net earnings EBITDA*

$73.9M $76.1M $5.2M $8.8M

+14.2% YoY
Cash flows from operations of $18.7M

*Adjusted EBITDA is a non-IFRS measure and represents net earnings before interest and other income, income taxes, depreciation and
amortization, stock-based compensation costs, restructuring charges, acquisition-related fair value adjustment of deferred revenue, and
foreign exchange loss.
© 2019 EXFO Inc. All rights reserved. 5
Test and
measurement
Built-in intelligence,
automation and
ease-of-use across
entire optical,
transport and
copper test portfolio.

© 2019 EXFO Inc. All rights reserved. 6

SA, systems
and services
Offering end-to-end
network performance,
service reliability and
subscriber insights for
fixed and mobile
networks.

© 2019 EXFO Inc. All rights reserved. 7

Unique END USERS

platform Field operations Network operations Service operations Customer care Marketing

architecture
PLATFORMS
BIG DATA FRAMEWORK

Artificial intelligence FIBER TROUBLESHOOTING/ MOBILE ACTIVE WIRELINE

MONITORING ASSURANCE TOPOLOGY ASSURANCE
EXFO Astellia Ontology EXFO

Machine learning DATA SOURCES

NETWORK AND
FIELD TEST DATA THIRD-PARTY
SERVICE MONITORING

Portable Third-party Fiber Active Passive Virtual Network OSS/BSS, Inventory/

instruments instruments probes probes probes probes elements CRM data topology

© 2019 EXFO Inc. All rights reserved. 8

 EXFO’s playground
T&M SASS

Market1 Market size $900M $2.6B

Market growth 3-5% 8-10%

$3.5B Growth drivers

FTTx, 100/400G,
small cells
5G, NFV/SDN,
IoT
EXFO sales—’18 $197.4M3 $71.2M3
EXFO growth—’18 2% 43%4
Sales2
Key competitors Anritsu, Viavi Netscout, Viavi
$269.5M
1 Based on EXFO’s estimates.
2 Reported sales for FY 2018.
3 Excludes gains on FX contracts.
4 Annual growth of 10% excluding Astellia.

© 2019 EXFO Inc. All rights reserved. 9

Accelerating digital
transformations
Fiber buildouts
Closer to network edge

Connecting small cells

Inside/between data centers

© 2019 EXFO Inc. All rights reserved. 10

Accelerating digital
transformations
5G deployments

Multiple use cases Stringent Enabled by

Enhanced mobile broadband (eMBB):
requirements network slicing
1
smartphones, UHD video, AR, VR Peak data rate: 20 Gbit/s Multiple virtual networks
sharing a common
2 Massive machine type communications Connection density: physical infrastructure
(mMTC): smart meters, IoT 1M devices/km2

3 Ultra-reliable, low latency communications Latency: 1 ms

(URLLC): self-driving cars, industrial
automation
© 2019 EXFO Inc. All rights reserved. 11
 5G Solution Portfolio
LABS FIELD OPERATIONS
Network
simulation

Network
densification

RAN
optimization
Network
topology

Network
monitoring

2018 2019 2020 2021

© 2019 EXFO Inc. All rights reserved. 12

 FTB-1 Pro Increased footprint at tier-1 CSP
Dual-Carrier
Testing of ROADMs and dark fiber to
Platform
support macrocell and C-RAN rollouts
– Provides OTDR testing with award-winning
iOLM solution
– Future-proofed for Ethernet and CPRI testing
– Order valued at approximately $1.5 million
– Potential for additional business

© 2019 EXFO Inc. All rights reserved. 13

Beware of water buffalo,
snakes and mozzies!
– Fiber Guardian remote units rolled out
nationwide across NBN’s transit network

– Fiber monitored 24/7 from NOC

in Melbourne

– Drastically reduces response time and costs

EXFO’s fiber monitoring solution

deployed Down Under

© 2019 EXFO Inc. All rights reserved. 14

 ‟
We decided to go
with EXFO’s probe-
based, big data
analytics solution as
we feel the company
has the right
mindset and
Fully virtualized Using NFV and Improves network Key multi- approach to NFV.
monitoring and cloud-based performance, million dollar Prasath
analytics solution technologies service agility, contract win Jagathrakshakalu
cost effectiveness OSS Technical Design
Authority, 3UK

© 2019 EXFO Inc. All rights reserved. 15

 Major Accelerates network transformation
at tier-1 service provider
contract win
Real-time network topology solution
– Unique software maps network resources
Valued at (legacy and next-gen) with related services
– Delivers millions of dollars in cost savings
$4.9M – High-margin deal recognized in Q2 2019
– Related multi-million-dollar customer support
plan over three years

© 2019 EXFO Inc. All rights reserved. 16

 Why invest?

1. Well positioned 2. Strong innovation 3. Robust cash flows 4. Seasoned

for growth drivers engine management team
– Generated cash flows
– Fiber buildouts – History of launching from operations of – Mix of new managers
disruptive solutions $16.2M in H1 2019 with fresh ideas and
– 5G deployments
(iOLM, EtherSAM, – Delivered cash flows experienced executives
SkyRAN, etc.) that from operations of – Deep telecom knowledge
provide a first-mover $14.4M in FY 2018
advantage – Focused on profitable
growth

© 2019 EXFO Inc. All rights reserved. 17

Q&A

© 2019 EXFO Inc. All rights reserved. 18