PROPRIETARY NGC 2018 Investor Presentation_1PROPRIETARY

Intevac Investor PresentationNeedham Growth Conference

January 17, 2018

POWERING INNOVATION. DELIVERING VALUE.

Wendell T. BloniganChief Executive Officer

James P. MonizChief Financial Officer

PROPRIETARY NGC 2018 Investor Presentation_2

Cautionary Disclaimer

During the course of this presentation, we will comment upon future events andmay make projections about our future financial performance, includingstatements related to strategies, our expected sales, product shipments andacceptance, gross margin, operating expense, profit, cash flow, income taxexpense, and capital allocation. We will discuss our business strategy, ourproducts, the markets our products address, our position in those markets,expected market acceptance of those products and production capacity. Wewish to caution you that these are forward looking statements that are basedupon our current expectations, and that actual results could differ materially as aresult of various risks and uncertainties, including, without limitation, thefollowing: inability to develop and deliver new products as planned; inability toaccurately forecast the demand for our products and services; the possibility thatorders in backlog may be cancelled, delayed or rescheduled; inability to achievegross margin and expense goals; and other risk factors discussed in documentsfiled by us with the Securities and Exchange Commission, including our AnnualReport on Form 10-K and Quarterly Reports on Form 10-Q. We undertake noobligation to update the forward-looking statements made during thispresentation.

PROPRIETARY NGC 2018 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

~$1B Revenue Opportunity $1.4B+ Revenue OpportunityOver 5-Year Timeframe Revenue Opportunity Pipeline for Current Programs & Pursuits

PROPRIETARY NGC 2018 Investor Presentation_4

Thin-Film Equipment:Core Technologies and High Productivity Platforms

Op

200 Lean®

INTEVAC MATRIX®INTEVAC VERTEX®

Core Technology

• Small-Substrate Processing

• Precision Thin-Film Deposition

• High-Throughput

• Serving Ongoing Technology Needs as Market Share Leader in HDD Media

PVD – physical vapor depositionHDD – hard disk drive

• Horizontal Carrier-Based Platform for Precision Thin Film Deposition, Etch and Ion Implant

• Vertical Carrier-Based Platform for Precision Thin Film Deposition, Etch and Implant

Substrate Independent

PROPRIETARY NGC 2018 Investor Presentation_5

0102030405060708090

Glass Glass + Anti-Smudge Glass + oDLC

# Pa

sses

to S

crat

ch

oDLC Relative Scratch Protection

Market Drivers:• Increasing Need for Durability• New Casings & Features Require Scratch Protection

- 2.5D & 3D Cover Glass - Glass Back Cover- Protection of Additional Value-Added Coatings

• Extreme Cost Sensitivity

Advantages of Optical Diamond-Like Carbon (oDLC): • Lowest Cost Anti-Scratch Solution 20x Scratch Resistance 20% Increased Breakage Resistance 10x Haze Reduction Ability to Tune oDLC Coating for Each Application

VERTEX oDLCTM for Display Cover Panel

oDLC ApplicationsHigh-Volume / High-Growth

Markets

Mobile PhonesTablets

Wearables POS Stations

Auto -Infotainment

Stainless Steel Ball @ 7.5N Force – 10 Cycles per MinuteCS-17 (Taber) Scratch Test Results / 300 Cycles

oDLC 2.0oDLC 1.0

oDLC Version 2.0 Results:Improved Scratch Resistance

Bare Glass

PROPRIETARY NGC 2018 Investor Presentation_6

oDLC Demonstrating Capability to Protect Additional Film Stacks

Significant Drivers of New Customer oDLC Evaluations

Integrated Film Stacks

3D and Back Cover Glass

Market Drivers:• Wireless Charging• 5G • Improved Battery Life

oDLC Advantages: • Enables Decorative and Other Coatings

- Non-Conductive Vacuum Metallization (NCVM)- Anti-Reflective (AR)

• Improved Durability• Lowest CoO

oDLC

Cover Glass

AF

AR / NCVM

Anti-fingerprint; prevents fingerprints, dirt

oDLC improves hardness, resists scratches

AR: reduces reflection; NCVM: for color finish

PROPRIETARY NGC 2018 Investor Presentation_7

Display Cover Panel: Progress and Opportunity

Progress Multiple Systems at Truly Opto-electronics ~24M Units of Annual Smartphone Capacity in Production Anticipating First Production Ramp for Glass Back Covers in

Q1’18

VERTEX Installed at Additional Tier-1 CG Manufacturer Evaluations Ongoing; Performance Criteria Solidifying on

Several Applications

New Processing Source Technologies in Development- Enabling oDLC 2.0, Anti-Reflective and Decorative

Coatings• Patent Granted on Intevac’s oDLC Source

Opportunity• >$500M Revenue Opportunity over 5 Years

- Includes Smartphones / Tablets ‣ As well as Wearables, Automotive, Etc.

- Significant Growth Opportunity in a Green Field Application

Source – IHS Markit May 2017

oDLC 2.0New PVD Technology Opens Up New

Market Opportunities in AR and Decorative Coatings

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2014 2015 2016 2017 2018 2019 2020 2021

SHIP

MEN

T U

NIT

S (0

00S)

Cover Glass Shipments by Top 5 Volume Applicat ions

Automotive Monitor Mobile Phone Front Mobile Phone BackNotebook PC Smart Watch Tablet PC

PROPRIETARY NGC 2018 Investor Presentation_8

1.0

1.2

1.4

1.6

1.8

2.0

2.2

Tie Ratio (Average # of Disks per Drive)

-

200

400

600

800

1,000

1,200

1,400

1,600

2015 2016 2017 2018 2019 2020 2021

Exab

ytes

Exabytes Shipped on HDDs

200 Lean: Market Leadership in HDD Media

HDDs Dominate Storage in Exabytes Tie Ratio Increasing

Storage Shipped on HDDs by 2021 will be Approx. 2.3x 2017 Levels

HDDs to Comprise Vast Majority of Total Data Stored- >90% of Data Stored on HDDs in 2020- ~80% of Cloud Exabytes Stored on HDDs in 2025

Excess Media Capacity Remains Today• Shipped ~216M in Q3’17; Capacity ~265M (per Qtr)

Multi-System Orders Support Tech. Roadmap• 8 Tools Booked in 2016 (4 Each for 2016 and 2017 Revenue)• 5 Tools Booked in 2017 (2 for 2017 Revenue, 3 for 2018)

Source – TrendFocus Nov. 2017, IDC “Data Age 2025” Mar. 2017, Seagate at CES 2018.

PROPRIETARY NGC 2018 Investor Presentation_9

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Actual Actual Forecast Forecast Forecast Forecast Forecast

2015 2016 2017 2018 2019 2020 2021

Tie Ratio for Nearline (Cloud) Drives

0

50

100

150

200

250

300

350

400

450

1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00

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

Nearline HDDs for the Cloud Driving Tie Ratio Upward

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

Source – TrendFocus Dec. 2017

Growth in Media Driven by Nearline HDDs

• 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

• Media Demand Would Exceed Capacity, Even in a Flat HDD Market

• Crossover when Tie Ratio Increases to 2.5 – 3.0

Based on 100M Average Unit / Qtr HDD Market

Current 216

Capacity ~265

PROPRIETARY NGC 2018 Investor Presentation_10

MATRIX ENERGi®

Update on Solar Activity

Market Drivers: Demand for Increased Cell Efficiencies Continuous Cost Reduction Strategies

MATRIX Advantages: Advanced Metallization and Doping of High-

Efficiency Solar Cells Best-in-Class Target Utilization Highly Customizable, High-Productivity Platform Lowest CoO; Process Step Reduction;

Reduction in Capex

Progress to Date: Two Tier-1 Customers PVD Process Tool of Record for N-Type Cells Implant Tool Signed Off for Revenue Q2’17

Near-Term Opportunity: Minimal N-Type Capacity Build-Out Planned

Currently; Opportunities Reside in Existing Factory Retrofits

Solution: Low-Cost, Small-Footprint Implant for Solar PV

Customer in China: Plans to Build Out 1 GW of Capacity Through 2018 2 Pilot Tools Signed Off 1H 2017 Order for 12 Tools Booked Q2 2017 First 3 Tools Shipped Q3 2017 Remaining Delivery Schedule Being Determined

Near-Term Opportunity: Significant Delay in Factory Completion Driving

Uncertainty in Timing and Opportunities

PROPRIETARY NGC 2018 Investor Presentation_11

Market Drivers:• Need for Greater I/O per Square Area

- System-in-Package Replacing System-on-Chip• Mobile, Automotive, IoT, Followed by 5G• Cost-Down Move to Panel-Level Processing

MATRIX Advantages: • Outstanding Performance at Low CoO

- High-Throughput- Uniformity and Yield- Film Properties and Control

• Reduces Cost of RDL Seed Layer by 2/3• Solution for both Wafer-Level and Panel-

Level Packaging Applications

Progress to Date: • Engaged with Tier-1 OSATs• Development Work on Process Modules

Substantially Completed in 2017• Ongoing Wafer-Level and Panel-Level

Demonstrations and Evaluations• MATRIX Launch at Industry Conferences (IWLPC)

October 2017

Emerging MATRIX Application: Advanced Packaging

MATRIX Addresses RDL and UBM

Emerging Panel-Level Packaging Market Intensifies CoO Drivers

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

2017 2018 2019 2020 2021

Annual Wafers Annual Wafer Passes for Fan-Out and UBM PVD

Fan-Out PVD Passes UBM PVD Passes

Source –TechSearch International, Yole Developpement, and Company estimates

PROPRIETARY NGC 2018 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 Digital

Augmented Reality

• Apache Helicopter Pilotage Night Camera

• LIVAR Long-Range Target ID• UAV Camera in Development

• On Roadmap for ENVG-3 Digital Follow-on Program

• Increasing Content for Family of Weapon Sites Wireless HMDs

• HMDs for F-35 and Striker II• Enhanced Visual Acuity

(EVA) Initiative• DELTA-I Coalition Warfare

Fused Digital Goggle Apache Camera

LIVAR SWIR Camera

HMDs – head-mounted displaysLIVAR – laser illuminated viewing and rangingSWIR – short wave infra redUAV – unmanned aerial vehicle

PROPRIETARY NGC 2018 Investor Presentation_13

Advantages of Intevac’s Proprietary Digital Night Vision

Intevac’s Digital Night Vision Technology Enables:

- High-Definition Night Imagery- Complete Augmented Reality Capability

- Information Overlay - Image Enhancement and

Transmission- Fused Infrared and Low Light Imagery- Low-Halo Operation

Fused Night Vision and IR

Warfighter View, Image Enhancement, and

Transmission

Augmented Reality Overlay

Analog Point Source “Halo”

High-Definition Night Vision

PROPRIETARY NGC 2018 Investor Presentation_14

Digital Night Vision Cameras• Contract Award and Development Program in Place for Next-Generation Sensor ISIE-19• Pilot Cameras Deployed and in Service for US Apache Fleet (ISIE-11)• Development Program Kick Off For 2nd (Weapons Officer) Camera for Apache (ISIE-19)• Discussion Underway for Pilot Camera Upgrade Program (ISIE-19)

Integrated Night Vision• Joint Strike Fighter Production in Steady LRIP Production (ISIE-11)• Funded Development in Progress for BAE Striker II Helmet (ISIE-11)• Delta I Coalition Warfare Program Industry Survey Day Held

- Award Expected in Q2’18- 24 Fused Night Vision Goggle Deliverables for Field Evaluations (ISIE-11 >> ISIE-19)- 4 Nations and 6 Entities Funding Program

Soldier Night Vision and Head Mounted Displays• Contract Award and Development Program in Place for Next-Generation Sensor ISIE-19• In Final Stage of Development for Family of Weapon Sights – Crew Served and M2 Weapon

Sight Programs- Wireless Head-Mounted Display Prototypes Began Shipping in Q4 2017- Funding in Place for See-Thru Free-Form Prism Manufacturability

Progress: Photonics Products and Programs

PROPRIETARY NGC 2018 Investor Presentation_15

Major Programs, Significant Revenue Opportunity

Program Opportunity Pipeline $275M+

Current Production,

$140 Upgrades, $97

Pursuits, $39

Program Opportunity Pipeline $630M+

Current Production,

$218

Upgrades, $147

Pursuits, $273

Program Opportunity Pipeline $530M+

Current Production,

$57

Pursuits, $477

Joint Strike Fighter

Eurofighter

Apache Helicopter

LIVAR

F-35 HMD

Digital Night Vision Cameras Soldier Night Vision + HMDsIntegrated Night Vision

F-16 Falcon BAE STRIKER II HMD

NV Monocular Wireless HMD

Family of Weapon Sights

PROPRIETARY NGC 2018 Investor Presentation_16

In Summary:Two Businesses with Billion $ Revenue Opportunities

~$1B Revenue Opportunity for Equipment $1.4B+ Revenue Opportunity for Photonics

Display Cover Panel

$500M+

MATRIX for Adv. Packaging

and Solar

$250M+

HDD Media

$200-300M

5-Year Available Revenue Opportunity

Night Vision Cameras

$275M+

Integrated Night Vision

$630M+

Soldier Night Vision + HMDs

$530M+

Revenue Opportunity Pipeline for Current Programs & Pursuits

PROPRIETARY NGC 2018 Investor Presentation_17

Significant Revenue Growth and Return to Profitability

Strong Growth in 2017• Guidance for ~40% Revenue

Growth Over 2016*- 1st 9Mo. Revenues up 72% YoY- Q4’17 Revenue Guidance of

$24-$25M• 39-40% Gross Margin• ~$41M Operating Expenses• Profitable Operations

Solid Balance Sheet• $45M Cash, Restricted Cash &

Investments at Sept. 30, 2017- $2.06/shr

• $80M Tangible Book Value- $3.66/shr

• No Debt

* 2017 Guidance provided as of October 30, 2017. Chart shows midpoint of FY revenue guidance, 39.5% gross margin, and $41M OpEx.

14%

16%

18%

20%

22%

24%

26%

28%

30%

32%

34%

36%

38%

40%

42%

$(20)

$(10)

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

$110

$120

2014 2015 2016 2017 Guide*G

ross

Mar

gin

%

$M

Revenues Non-GAAP OpEx Operating Income (Loss) GM%

PROPRIETARY NGC 2018 Investor Presentation_18

Intevac: Solid Foundation, Large Growth Opportunities

Op

Solid Financial Foundation

Photonics:

Key Enabler for Military Night Vision

Thin-Film Equipment:

Leadership and Strategy for Growth

Intevac Value Proposition

• Technology and Market Share Leader in HDD Media

• Multiple VERTEX Customers Ordering and Evaluating for Display Cover Panel

• Substrate-Independent MATRIX Platform Offers Incremental Growth Potential

• Strong Balance Sheet• Improving Financial Performance• Strong Revenue Growth and a Return to

Profitability in 2017

• Major Programs with Apache and JSF• Developing Next-Generation Sensor ISIE-19• DELTA-I Funding In Progress

• Fused Goggle Development• FWS-CS, Prototype Wireless

HMD, w/ IVAC See Through Prism, To Begin Shipping

PROPRIETARY NGC 2018 Investor Presentation_19PROPRIETARY © 2017 INTEVAC, INC.