PROPRIETARY Q3 2017 Investor Presentation_1PROPRIETARY

Intevac Investor PresentationQ3 2017 Update

POWERING INNOVATION. DELIVERING VALUE.

Wendell T. BloniganChief Executive Officer

James P. MonizChief Financial Officer

PROPRIETARY Q3 2017 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 Q3 2017 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 Q3 2017 Investor Presentation_4

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

Op

200 Lean®

INTEVAC MATRIXTMINTEVAC VERTEXTM

Core Technology

• Small-Substrate Processing

• Precision Thin-Film Deposition

• High-Throughput

• Addressing Display Cover Panel Market with Optical Diamond-Like Carbon (oDLCTM)Protective Coatings

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

PVD – physical vapor depositionHDD – hard disk drive

• Enabling Advanced Solar Cell Architectures with PVD and Implant Technology

PROPRIETARY Q3 2017 Investor Presentation_5

2016: Pivotal Year Executing Thin-Film Equipment Growth Strategy

• Establish Target Markets & Applications

• Develop Platforms

2014• Launch

Platforms• Engage Tier-1

Foundation Customers

• Initial Orders & Shipments

2015• Multi-System,

Capacity & Follow-On Orders

• Engage New Customers

2016

MATRIX Introduced

Booked Pilot oDLC System Order

Won 1st Tier-1 MATRIX PVD Customer Order in Solar

VERTEX Introduced

Won 1st Tier-1 VERTEX Customer in Display Cover Panel

Won 2nd Tier-1 MATRIX PVD Customer Order in Solar

Won 1st Tier-1 MATRIX Implant Customer Order in Solar

VERTEX oDLC Launched in Production

Won Multi-System VERTEX Capacity Order in Display Cover Panel

Won 2nd Tier-1 VERTEX Customer

Won Multi-System ENERGiTM

Order with New Solar Customer

Won Multi-System Orders for Eight 200 Leans in HDD

PROPRIETARY Q3 2017 Investor Presentation_6

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

- 2D, 2.5D & 3D Cover Glass (CG); Back-Case (BC)

• Protection of Additional Value-Added Coatings• Extreme Cost Sensitivity

oDLC Advantages: • Lowest Cost Anti-Scratch Solution 20x Scratch Resistance 20% Increased Breakage Resistance 10x Haze Reduction Ability to Tune oDLC Coating for Each Application

VERTEX oDLC Applications: Display Cover Panel

oDLC ApplicationsHigh-Volume / High-Growth

Markets

Mobile PhonesTablets

Wearables POS Stations

Auto -Infotainment

Cover Glass After 10K Cycles of Sand Oscillation

Wearables

Stainless Steel Ball @ 7.5N Force – 10 Cycles per Minute

PROPRIETARY Q3 2017 Investor Presentation_7

Display Cover Panel: Smartphone Market Opportunity

Progress Multiple Systems at Truly Opto-electronics ~24M Units of Annual Smartphone Capacity in

Production VERTEX Installed at Additional Tier-1 CG

Manufacturer Progressing through Exhaustive Qualification

Process for Both oDLC Films and Tool Production-Worthiness

Multiple Top-Tier Phone Mfrs. Evaluating • 1000s of Samples Processed at In-House

Coating Operation

Opportunity• >$500M Revenue Opportunity over 5 Years

- Assumes ~25% Adoption for Smartphones / Tablets Display CG by 2020

- Additional Revenue Opportunity for Wearables, Automotive, POS, and Back Casings

Milli

ons

of U

nits

Source – IDC + Company Estimates for Interim Periods

1,300

1,350

1,400

1,450

1,500

1,550

1,600

1,650

1,700

1,750

1,800

2015 2016 2017 2018 2019 2020

2015-2020 SmartPhone Sales

Display CGNow

Camera Lens (CL)Future

Back-Case (BC) Future

Home ButtonFuture

PROPRIETARY Q3 2017 Investor Presentation_8

MATRIX PVD and Implant Application: N-Type Solar

PERT, Bifacial

IBC

n-type MonoHJT

Mono PERT, PERL, Bifacial

Mono PERC

p-type Mono

Multi PERC

Al BSF

p-type Multi

20142013 2015 2016

Cel

l Effi

cien

cy %

15%

25%

20%

2017

Market Drivers: Extreme Cost Sensitivity Space-Constrained Applications 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

Al BSF – aluminum back surface fieldMulti PERC – multi-crystalline passive emitter rear contactMono PERC – mono-crystalline passive emitter rear contactMono PERT– mono-crystalline passive emitter rear totally (diffused)Mono PERL – mono-crystalline passive emitter rear locally (diffused)HJT – heterojunction technologyIBC – interdigitated back contact

PROPRIETARY Q3 2017 Investor Presentation_9

Solar Market Opportunity

Progress• MATRIX Platform

- PVD Process Tool of Record for N-type Cells- Implant Tool Signed Off for Revenue Q2’17

• ENERGi Implant System- Order for 2 Pilot Systems Booked Q2’16 and

Revenued Q2’17- Follow-On Order for 12 Systems Booked Q1’17;

Shipping 2H’17 for 2018 Revenue

Opportunity• N-type Cell Installations up 2.2x

- >4GW of New Capacity by 2020• >$175M Revenue Opportunity Over 5 Years

- MATRIX PVD- MATRIX Implant- ENERGi Implant

Source: LONGJi Silicon Materials ’15-’18; SPV Market Research ’19-‘20

-

5,000

10,000

15,000

20,000

25,000

2016 2017 2018 2019 2020

P-Type Mono N-HJT N-PERT N-IBC

Total Installed Mono-Crystalline Solar Cell Manufacturing Capacity (MW)

PROPRIETARY Q3 2017 Investor Presentation_10

1.0

1.2

1.4

1.6

1.8

2.0

2.2

2.4

Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

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

Exab

ytes

Exabytes Shipped on HDDs

200 Lean PVD Application: HDD Media

HDDs Dominate Storage in Exabytes Tie Ratio Increasing

Storage Shipped on HDDs by 2020 will be Approx. 2.3x 2016 Levels• 60% in the Cloud• HDDs to Comprise >90% of Total Data Stored

- SSDs Still <10% of Stored Data by 2020

Excess Media Capacity Remains Today• Shipped 216M in Q1’17; 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 Feb. and May 2017, IDC “Data Age 2025” March 2017, Company Estimates

PROPRIETARY Q3 2017 Investor Presentation_11

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Actual Actual Forecast Forecast Forecast Forecast

2015 2016 2017 2018 2019 2020

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 Feb. 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 Q3 2017 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 Q3 2017 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 Q3 2017 Investor Presentation_14

Progress: Next-Generation Night Vision Systems

2016 Milestones• Next-Generation Digital Night Vision Requirements of US Army and Navy Merged - ISIE-19• 2k-by-2k High Resolution Digital Goggle Successfully Demonstrated for NAVAIR’s EVA –

Enhanced Visual Acuity Program- Increased Program Potential; All Digital EVA Competitors Utilizing Intevac Sensors

• Digital Night Vision Monocular Successfully Demonstrated for the US Army’s Enhanced Night Vision Goggle ENVG-3 Digital Follow-on Program- Generated Significant Interest for US and Foreign Special Operations Forces

• Total Revenue Opportunity Pipeline Increased, to over $1.4B

Continued Progress To Date in 2017• Launch and Award of the Department of Defense’s Coalition Warfare Program - DELTA-I

- Funded by 3 US and 3 Foreign Coalition Partners- Fully Funds the ISIE-19 Sensor Development - Deliverables include 24 Digitally-Fused Enhanced Night Vision Goggles

• Increasing Content for the US Army’s Family of Weapon Sights – Crew Served Program- Adding Intevac’s Proprietary Free-Form Prism into our Wireless Head-Mounted Displays

PROPRIETARY Q3 2017 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 Q3 2017 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+

Solar PVD and Implant

$175M+

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 Q3 2017 Investor Presentation_17

Improving Financial Performance

Positive Performance in 2016• Improved Operating P&L• Positive Cash Flow from

Operations• Net Increase in Total Cash and

Investments

Strong Growth in 2017 *• Guidance for 40% Revenue

Growth Over 2016- $61.4M in Revenues 1H’17- Q3’17 Revenue Guidance of

$25-$26M• ~39% Gross Margin• ~$41M Operating Expenses• Profitable Operations

* 2017 Guidance Provided as of July 31, 2017. Chart shows 40% revenue growth, ~39% gross margin, and ~$41M OpEx.

12%

14%

16%

18%

20%

22%

24%

26%

28%

30%

32%

34%

36%

38%

40%

$(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 OpExOperating Income (Loss) GM%

PROPRIETARY Q3 2017 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

• Providing Cost and Efficiency Benefits in Solar

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

Profitability in 2017

• Major Programs with Apache and JSF

• DELTA-I Funding Awarded• Next-Generation Sensor and

Fused Goggle Development

• Current Programs >$650M; Pursuits Bring Total Pipeline Opportunity to $1.4B+

PROPRIETARY Q3 2017 Investor Presentation_19PROPRIETARY © 2017 INTEVAC, INC.