PROPRIETARY March 2016 Investor Presentation_1 PROPRIETARY

Intevac Investor Presentation

2016 Northland Growth Conference

March 2016

POWERING INNOVATION. DELIVERING VALUE.

Jim Moniz Chief Financial Officer

Greg Swyt Global Operations Controller

PROPRIETARY March 2016 Investor Presentation_2

Cautionary Disclaimer

During the course of this presentation, we will comment upon future events and may make projections about our future financial performance, including statements related to strategies, our expected sales, product shipments and acceptance, gross margin, operating expense, profit, cash flow, income tax expense, and capital allocation. We will discuss our business strategy, our products, the markets our products address, our position in those markets, expected market acceptance of those products and production capacity. We wish to caution you that these are forward looking statements that are based upon our current expectations, and that actual results could differ materially as a result of various risks and uncertainties, including, without limitation, the following: inability to develop and deliver new products as planned; inability to accurately forecast the demand for our products and services; the possibility that orders in backlog may be cancelled, delayed or rescheduled; inability to achieve gross margin and expense goals; and other risk factors discussed in documents filed by us with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We undertake no obligation to update the forward-looking statements made during this presentation.

PROPRIETARY March 2016 Investor Presentation_3

Providing Enabling Technology to Important Markets

Thin-Film Equipment Photonics

Mobility and the

Internet of Things

Clean Energy / Solar Power

Cloud Computing and Storage

Addressing Multiple Large Growth Industries

Night Vision and Target ID

Cameras Systems

Integrated Night Vision Systems for Gen 5 Heads Up Displays

Night Vision and Head Mounted

Displays for Soldiers

Critical Supplier of Digital Vision Systems

PROPRIETARY March 2016 Investor Presentation_4

Thin-Film Equipment: Core Technologies and Production-Proven Platforms

Op

200 Lean Platform

MATRIX Platform VERTEX Platform

Core Technology

• Small-Substrate Processing

• Precision Thin-Film Deposition

• High-Throughput

• Today: Display Cover Panel • Optical Diamond-Like Carbon Protective Coatings (oDLC) • Future: ARC, TFB

• Technology and Market Share Leader for HDD Media

• Process Tool of Record for Next Generation Technology Node - HAMR

• Solid Upgrade and Service Business

ARC – anti-reflective coatings TFB – thin-film batteries PVD – physical vapor deposition HDD – hard disk drive HAMR – heat-assisted magnetic recording

• PVD and Implant for Solar • Positioned as Process Tool of

Record for Advanced Solar Cell Architectures

• Multi-Layer Optical Coatings

PROPRIETARY March 2016 Investor Presentation_5

High-Volume Production Systems Deposit Optical-Grade DLC

Application for Mobile Device Scratch Protection

Intevac Advantages • Lowest Cost Anti-Scratch Solution 20x Scratch Resistance 20% Increased Breakage Resistance 10x Haze Reduction

VERTEX oDLC Applications: Display Cover Panel

oDLC Applications

High Volume – High Growth Markets

Mobile Phones Tablet PCs

Wearables POS Stations

Auto - Infotainment

oDLC Competitive Advantage

oDLC Alternative A

Alternative B 7.5N @ 10cyc/min SS Ball

# pa

sses

to sc

ratc

h

0102030405060708090

AS Glass AS Glass + AFS AS Glass + oDLC

Scratch Protection

Rela

tive

pric

e

PROPRIETARY March 2016 Investor Presentation_6

Display Cover Panel: Market Opportunity

Progress To Date 2nd System Shipped to Tier 1

Customer; Production-ready 1H ’16 Currently Under Evaluation with

Multiple Top-Tier Phone Manufacturers • Broad Engagement with Tier 1 Cover

Glass Manufacturers • Established In-House Coating Service

to Accelerate Product Adoption

Intevac’s Opportunity • 510 VERTEX Tools Required to Coat

All Glass in 2020 • 25% Adoption Rate = $500M Revenue

Opportunity Through 2020

Thou

sand

s m

2

Total material (in m2) for Cover Glass

Source – IHS Technology + Company Estimates

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2015 2016 2017 2018 2019 2020

Cover Glass m2 Per Market Segment

Mobile Phone Tablet PC Wearable Other

PROPRIETARY March 2016 Investor Presentation_7

MATRIX PVD and Implant Application: N-Type Solar

PERT, Bifacial

IBC

n-type Mono HJT

Mono PERT, PERL, Bifacial

Mono PERC

p-type Mono

Multi PERC

Al BSF

p-type Multi

2014 2013 2015 2016

Cel

l Effi

cien

cy %

15%

25%

20%

2017

High-Volume Production Systems for Advanced Metallization and Doping of High-Efficiency N-type Solar Cells

Intevac PVD Advantage Best-in-Class Target Utilization

Delivers Lowest CoO Copper Interconnects Reduced Series Resistance Backside Reflectors

Intevac Implant Advantage Boron Doping Simplification Selective and Patterned Doping Process Step Reduction Reduction in Capex

PROPRIETARY March 2016 Investor Presentation_8

N- Type Solar Market Opportunity

Progress To Date – MATRIX PVD • Positioned as Process Tool of Record for

N-type Cells • Two Tier 1 Customers

- 1st Customer in 24X7 Production - 2nd Customer Ships in 1H ‘16

Progress To Date – MATRIX Implant • 1st System Order in Backlog with Tier 1

Customer; Ships Mid-2016 • Investigating Adjacent Applications

Intevac’s Opportunity • Installations of N-type Cells up 2.5x by

2020 – 5GW of New Capacity Forecast • 65 MATRIX PVD & Implant Tools Required

to Support IncrementalIBC & PERT Capacity

• Intevac’s Estimated Revenue Opportunity is $175M Through 2020

Source: LONGJi Silicon Materials ’15-’18; Growth Rate Projections ‘19, ‘20

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2015 2016 2017 2018 2019 2020

MW

N-type Cell Capacity

N-IBC (MW) N-PERT (MW) N-HIT (MW)

PROPRIETARY March 2016 Investor Presentation_9

-

200

400

600

800

1,000

1,200

1,400

2014 2015 2016 2017 2018 2019 2020

Exab

ytes

Exabytes Shipped on HDDs

1.0

1.2

1.4

1.6

1.8

2.0

2.2

Actual Actual Actual Actual Actual Actual Forecast Forecast

Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

Tie Ratio (Average # of Disks per Drive)

200 Lean PVD Application: HDD Media

HDDs Dominate Storage in Exabytes Tie Ratio Increasing

Storage Needs by 2020 will be Approx. 2x 2015 • 60% in the Cloud • 90% on HDDs

- SSDs Growing but Still <10% of Stored Data

Excess Media Capacity Remains Today

Positive Fundamentals for Return to Capacity Additions

Source – TrendFocus Feb. 2016

PROPRIETARY March 2016 Investor Presentation_10

0

100

200

300

400

500

600

1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50

Med

ia U

nits

(M)

Tie Ratio (Average Disks per Drive)

Media Unit Demand per Quarter Based on Flat HDD Market and Increasing Tie Ratio

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Actual Forecast Forecast Forecast Forecast Forecast

2015 2016 2017 2018 2019 2020

Tie Ratio for Nearline (Cloud) Drives

Nearline HDDs for the Cloud Driving Tie Ratio Upward

High-Capacity Drives Growing Disks/Drive Key for Capacity Adds

Source – TrendFocus Feb 2016

Growth in Nearline HDDs Increases Media Demand • Nearline HDD Unit Volumes Growing in Otherwise

Stagnant HDD Unit Environment • Nearline Tie Ratio Also Increasing – from <4 to >7

Increasing Tie Ratio Positive for Media Units

• Even if HDD Units Remained Flat, Media Demand Will Exceed Capacity

• Crossover when Tie Ratio Increases to 2.5 – 3.0

Based on 110M Unit / Qtr HDD Market

Current 225

Capacity 300

PROPRIETARY March 2016 Investor Presentation_11

Expanding Opportunity in Thin-Film Equipment

INTEVAC VERTEX PVD – Protective Coatings Pursuing Mainstream Applications Engaged with Tier 1 Cover Glass Manufacturers and

Top-Tier Cell Phone Makers Increased Revenue Opportunity from $300M to $500M

INTEVAC MATRIX PVD – Solar Cell Application 5GW of N-type Forecasted by 2020 Two Tier 1 Customers Adopting + Multiple Engagements Revenue Opportunity Forecast at $100M

INTEVAC MATRIX Implant – Solar Cell Application Joint Technology Development Program Success

Resulted in New System Order Increased Revenue Opportunity from $50M to $75M

HDD – Hard Drive Media Installed Base Upgrades to Latest 200 Lean technology Steady Service and Spares Business Revenue Opportunity Forecast at $300M

HDD $300

MATRIX $175

VERTEX$500

5-Year Revenue Opportunity ($M)

Total Opportunity = $975M+

PROPRIETARY March 2016 Investor Presentation_12

Photonics: The Supplier of Digital Night Vision to Military

Op

Soldier Night Vision + Head Mounted Displays

Integrated Night Vision Systems

Night Vision + Target ID Cameras

Core Technology

• Patented Digital Night Vision Technology

• Image Processing • Enables Augmented

Reality

• Apache Helicopter Cameras in Full-Rate Production

• LIVAR SWIR Fielded, Pursuing Technology Upgrades • Airborne/UAV Camera in Development

• Funded for Next-Gen Sensor – Future Ground Goggle

• $25M Funding Vehicle in Place • 15-Year Tech Roadmap Established • Incumbent for Family of Weapons

Sights – Rifle Sight

• Helmet-Mounted Displays (HMDs) Designed-In: • F35 Joint Strike Fighter • BAE Striker II “Typhoon”

• Digital Aviation Goggle in Development

Apache Camera

LIVAR SWIR Camera

LIVAR – laser illuminated viewing and ranging SWIR – short wave infra red UAV – unmanned aerial vehicle

PROPRIETARY March 2016 Investor Presentation_13

Photonics Application: Night Vision Cameras

LIVAR – Airborne Target ID Camera

Apache Helicopter Night Vision Camera

• Rotary Pilotage Night Vision Cameras • US Army Fielding for the Apache • Transitioning to Foreign Military Sales

• Target ID and Ranging Cameras

• LIVAR SWIR - Longest Range Targeting and Ranging

Capability – up to 20KM • Northrup Grumman LITENING Pod

- Program Fielded - Assessing International Sales

Intevac’s Digital Night Vision Technology Enables:

- High-Definition Night Vision Imagery - Nighttime Information Overlay Capability - Digitally-Fused Infrared and Low Light Imagery - Low-Halo Operation - Digital Image Enhancement and Transmission - Elimination of Bulky Analog NV Goggles

PROPRIETARY March 2016 Investor Presentation_14

Photonics Opportunity: Night Vision Cameras

• Progress To Date • Over 500 Apache Cameras Sold • Over 780 LIVAR SWIR Cameras Sold • “Digital Night Vision Gold Standard” (ISIE-11) • High Resolution Camera (ISIE-4000) Undergoing

Customer Evaluation

• Intevac’s Opportunity • Contracted Deliveries of Apache Pilotage and

LIVAR cameras • Apache Co-Pilot / Gunner (2nd Camera) • Next-Gen Camera (ISIE-12) for Apache

Technology Upgrade • Next-Gen SWIR Camera for LIVAR Technology

Upgrade • Drone / UAV Opportunities Leveraging Apache

Camera Technology

Program Opportunity Pipeline $250M+

Current Production,

$126 Upgrades, $84

Pursuits, $40

F-16 Falcon

Apache Helicopter

PROPRIETARY March 2016 Investor Presentation_15

Photonics Application: Integrated Night Vision

• F35 Helmet Mounted Display • 3.5 Cameras per Aircraft

• BAE Striker II Helmet Mounted Display

• In Flight Qualification Phase (Typhoon)

• High-Resolution (ISIE-4000) Digital Goggle • Prototype Delivery in 2016

JSF HMDS

BAE STRIKER II

High Resolution Digital Night

Vision Goggle

Intevac’s Digital Night Vision Technology Enables:

- High-Definition Night Vision Imagery - Nighttime Information Overlay Capability - Digitally-Fused Infrared and Low Light Imagery - Low-Halo Operation - Digital Image Enhancement and Transmission - Elimination of Bulky Analog NV Goggles

+ High-Resolution Digital Goggle = Ultra-HD for

Enhanced Visual Acuity

PROPRIETARY March 2016 Investor Presentation_16

Photonics Opportunity: Integrated Night Vision

Progress To Date • Sole-Sourced Solution for F-35 JSF • 500 Gen 1 Sensors (ISIE-10) Fielded • >2000 Gen 2 Sensors (ISIE-11) Contracted • Replaced BAE Analog Goggle Solution • In Qualification Phase for BAE’s Typhoon • High-Resolution Goggle Prototypes Ship Q1

- USG $12M Enhanced Visual Acuity Program

Intevac’s Opportunity • F-35 Moves to Full Rate Production Fielding

~2700 baseline aircraft (ISIE-11) • Next-Gen Camera (ISIE-12) for F-35 Technology

Upgrade • BAE Opening Opportunities in Europe • BAE Marketing to Aircraft beyond Typhoon • US Navy Acquisition Program for Enhanced

Visual Acuity Starts 2016 - High-Resolution Digital Goggle (ISIE-4000)

Program Opportunity Pipeline $325M+

Current Production,

$156 Upgrades,

$140

Pursuits, $30

F-35 Joint Strike Fighter

Euro Fighter Typhoon

PROPRIETARY March 2016 Investor Presentation_17

Photonics Application: Ground Forces

• Fused Vision Mobility Device (Monocular) for US Army Ground Forces • Program of Record to Replace Analog Night Vision

• Family of Weapons Sights • Rifle Sight Eyepiece (Individual) • Wireless Helmet Mounted Display (Crew)

Fused Goggles Augmented Reality

Family of Weapons Sights Wireless Helmet Mounted Display

Intevac’s Digital NV Technology Enables:

Fused Vision Mobility Devices: - Low-Halo Operation - Augmented Reality

- Proven IR and Low-Light Fusion

Family of Weapons Sights: - Proprietary Optical Design - Proven Low-Cost Solution

Strongly Supported by US Government

PROPRIETARY March 2016 Investor Presentation_18

Photonics Opportunity: Ground Forces

• Progress To Date • Fused Vision Mobility Device Demonstrator

Delivery Scheduled for Q2’16 • Next-Gen Sensor (ISIE-12) in Development • $25 Million Funding Vehicle in Place • Family of Weapons Sights – Individual

• Prototypes Qualified • Selected by 1 of 2 Primes

• Family of Weapons Sights – Crew • Prototypes in Qualification • Selected by 2 of 3 Primes • USG Requirements for Wireless HMD Built

Around Intevac Demonstrator

• Intevac’s Opportunities • Over 100K Digital Night Vision Monoculars

to be Fielded for US Army Soldiers • Family of Weapons Sights

• Individual - 36.5K units program total • Crew - 25K units program total

Program Opportunity Pipeline $400M+ Current

Production, $17

Pursuits, $388

Image Enhancement Data Overlay

Analog Point Source “Halo”

Intevac Digital “Low Halo”

PROPRIETARY March 2016 Investor Presentation_19

Expanded Program Opportunity Pipeline for Photonics

• Next-Gen Sensor Upgrades Expand Program Opportunity Pipeline to >$500M • For programs that are already designed-in and in production • An increase from total engagement pipeline of ~$350M previously

• Programs Currently in Pursuit Grow Program Opportunity Pipeline to Nearly $1B • Largest US Military opportunity is for Ground Forces

$350M

>$500M

~$1B

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

Previous Program OpportunityPipeline

Revised Program OpportunityPipeline: Current Production +

Upgrades

Total Program OpportunityPipeline, Including Pursuits

$M

Ground Forces

Integrated Night Vision

Night Vision Cameras +Target ID

PROPRIETARY March 2016 Investor Presentation_20

In Summary: Two Businesses with Billion-$ Revenue Opportunities

$1B Revenue Opportunity for Equipment $1B Revenue Opportunity for Photonics

Display Cover Panel

$500M+

Solar PVD and Implant

$175M+

HDD

$300M+

5-Year Available Revenue Opportunity

Night Vision Cameras

$250M+

Integrated Night Vision

$325M+

Ground Force Night Vision

$400M+

Revenue Opportunity Pipeline for Current Programs & Pursuits

PROPRIETARY March 2016 Investor Presentation_21

Improving Financial Performance

2015 Exceeded Expectations Entering the Year • Revenues Up 15% Over 2014 • Increased Full-Year Guidance

Each Quarter in 2015 • Improved GM and Reduced Opex

2016 Guidance • Revenue Growth of Up to 10%

from 2015 • 34-36% Gross Margin • $37-38M Operating Expenses

Positioned for Cash Flow Positive Operations in 2016 -15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

$(30)

$(20)

$(10)

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

2014 2015G

ross

Mar

gin

%

$M

Revenues Non-GAAP OpEx Operating Loss GM%

PROPRIETARY March 2016 Investor Presentation_22

Strong Foundation and Capital Deployment Strategy

Structuring and Managing the Company for Profitability Across Business Cycles

Pursuing Organic Growth Initiatives

Strong Foundation with No Debt

Maintaining Strong Balance Sheet Strategically Deploying Capital

Returning Capital to Shareholders through $30M Stock Repurchase Program • $28.5M Purchased as of Year-End 2015

Only $6M Use of Cash and Investments Since 2013, Net of Repurchases

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

2013 2014 2015

$ in

Mill

ions

Cumulative Cash Utilized for Stock Repurchases

Balance of Cash and Investments at Qtr/Year End

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$-

$10

$20

$30

$40

$50

$60

$70

$80

At Jan 2, 2016$

per S

hare

$ in

Mill

ions

Tangible Book Value Cash and Investments

TBV/Share Cash/Share

PROPRIETARY March 2016 Investor Presentation_23

Intevac: Solid Foundation, Strong Growth Trajectory

Op

Solid Financial Foundation

Photonics: Key Enabler for Military Night Vision

Thin-Film Equipment:

Leadership and Strategy for Growth

Intevac Value Proposition

• Meaningful Traction with Tier 1 Customers • Tier 1 Customers for both VERTEX Display Cover Panel and MATRIX PVD for Solar • New Order for MATRIX Implant • Technology and Market Share Leader in HDD When Capacity Buys Resume

• Strong Balance Sheet; $48M in Cash and Investments at Q4’15 • $28.5M in Share Repurchases Completed as of Year-End 2015 • Positioned for Cash Flow Positive Operations in 2016

• Apache at Full-Volume Production • JSF Production Ramping • Funding Vehicle Awarded for Next-

Generation Sensor Development

• Current Programs ~$500M; Ground Force Applications Grow Revenue Opportunity to ~$1B

PROPRIETARY March 2016 Investor Presentation_24

PROPRIETARY © 2016 INTEVAC, INC.