Annual General and Special meeting Jan 2018

Germain Lamonde, Founder and Executive Chairman

Philippe Morin, Chief Executive Officer

January 10, 2018

Annual Generaland Special Meeting

© 2018 EXFO Inc. All rights reserved. 2

Forward-looking statements

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 guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those projected in forward-looking statements 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 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 net earnings, refer to the Q1 2018 news release on EXFO’s website.

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

Smooth CEO transition© 2018 EXFO Inc. All rights reserved. 3

Germain LamondeFounder & Executive Chairman

Philippe MorinChief Executive Officer

FY 2017 results


*Adjusted EBITDA represents net earnings before interest, income taxes, depreciation and amortization, stock-based compensation costs, restructuring charges, change in fair value of cash contingent consideration and foreign exchange loss.

$22.0MAdj. EBITDA*

margin of 9.1%

$12.9MCash flows from

operations

$243.3MRevenue up 4.6%

Product family salesPhysical : +6.6% in 2017– Optical test leadership– 100G investment cycle

Protocol: -1.7% in 2017– Rationalized passive wireless SA portfolio

$144.1$151.9

$161.9

$80.6 $83.3 $81.9

FY 2015 FY 2016 FY 2017

Physical Protocol

In m

illion

s of U

S$

*Excludes losses on FX contracts. © 2018 EXFO Inc. All rights reserved. 5

Geographical salesAmericas: +5.6% in 2017– Leveraged 100G investment cycle– Headwind: consolidation tier-1 CSPs

EMEA: +8.6% in 2017– Catch-up spending among CSPs– Ontology revenue contribution

Asia-Pacific: -2.9% in 2017– Slowdown in China

$119.5

$57.3$45.3

$222.1

$127.5

$57.2$47.9

$232.6

$134.7

$62.1$46.5

$243.3

Americas EMEA Asia-Pacific Global

FY 2015 FY 2016 FY 2017

In m

illion

s of U

S$

*Excludes losses on FX contracts. © 2018 EXFO Inc. All rights reserved. 6

55% 26% 19%


M&Astrategy

Accelerate growth,critical mass

and profitability

in T&M and

Systems

- Optical RFoCPRI test capabilities for fiber-based radio access networks

- First all-in-one solution to combine optical, Ethernet and RF testing

- New remote RF interference monitoring for C-RAN

- Deal: US$5.0M in cash + US$3.5M in stock


FY’17

(November 2016)

- Automated network topology discovery and service-chain mapping

- With EXFO’s active system: real-time views of network services and related elements for root-cause analysis

- Deal: All-cash valued at US$7.8M, + minor earnout

(net of cash acquired)


FY’17

(March 2017)

- Complementary high-end optical test instruments for lab and manufacturing markets

- Includes OSAs, tunable lasers, filters, and passive optical component test system

- Deal: US$9.5M in cash (net of cash acquired)


FY’18

(October 2017)

- Provider of network and subscriber intelligence

- Leading passive service assurance, analytics and professional services

- Deal: 40.3% stake- Entire Astellia equity:

US$30.3M


FY’18

(Pending)

Astellia update

AMF green light to launch public tender offer (PTO) (Dec. 12, 2017)

- All hurdles passed before launching of PTO

EXFO announced opening of PTO(Dec. 15, 2017)

- Offer extends 25 trading days to January 23, 2018

AMF to disclose results of PTO(Jan. 29, 2018)

- EXFO seeking to acquire 100% of Astellia’s equity



C$70.0M (US$54.3M) and US$ 9.0M in revolving credit facilities

Usage- Astellia’s remaining equity- Working capital- General corporate purposes

M&A focus- Deliver value and synergies from recent

acquisitions- No meaningful acquisition in the short-term

New credit

facilities

Q1 2018 Results/Outlook Philippe Morin, CEO

Growth drivers


Fiber 5GNetwork virtualizationCloud

Major customer groups


Webscalecompanies

Communications service providers

Equipment manufacturers

Revenue

$63.4M


Bookings

$65.9M

IFRS netearnings

$2.7M

AdjustedEBITDA*

$6.1M

* Adjusted EBITDA represents net earnings before interest, income taxes, depreciation and amortization, stock-based compensation costs, change in the fair value of cash contingent consideration and foreign exchange gain.

Adjusted EBITDA margin of 9.6%

Q1 2018 results


Financial milestones

Short-term1

(FY 2018)Medium-term

(Three years)

Adj. EBITDA2of $26 M(18% growth YoY)

Adj. EBITDAmargin of 15%

1Short-term financial milestone excludes financial results from pending Astellia acquisition.2Adjusted EBITDA represents net earnings before interest, income taxes, depreciation and amortization, stock-based compensation costs, and foreign exchange gain or loss.

Questions?

Annual General and Special meeting Jan 2018

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