At EXFO, we make networks smarter

1. August 9, 2018
Germain Lamonde
Founder and Executive Chairman
Canaccord Genuity Growth Conference
At EXFO, we make networks smarter

2. © 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 IFRS net loss attributable to the parent
interest, refer to the Q3 2018 press release on EXFO’s website.
All amounts in millions of US dollars, except otherwise noted.

3. © 2018 EXFO Inc. All rights reserved. 3
No.1
in optical test
equipment market
Top 5
in communications
monitoring market
2000
employees in
25+ countries
The test,
monitoring
and
analytics
experts.

4. $0.9M
IFRS
net earnings
EXFO by numbers
© 2018 EXFO Inc. All rights reserved. 4
* 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.
$22.0M
Adjusted EBITDA*
margin of 9.1%
$243.3M
Revenue
increase of 4.6%
in FY 2017
$12.9M
Cash flows from
operations

5. Revenue
$72.2M
(+23.4% YoY)
© 2018 EXFO Inc. All rights reserved. 5
Bookings
$73.1M
Adjusted
EBITDA*
$2.5M
Cash flows from operations of $4.7M
Q3 2018 results
* Adjusted EBITDA represents net loss attributable to the parent interest before interest, income taxes, depreciation and amortization,
stock-based compensation costs, change in fair value of cash contingent consideration, acquisition-related deferred revenue fair value
adjustment, share in net loss of an associate, gain on the deemed disposal of the investment in an associate and foreign exchange gain.
IFRS net loss
-$6.0M

6. Major customer groups
© 2018 EXFO Inc. All rights reserved. 6
Webscale
companies
Communications
service providers
Equipment
manufacturers

7. Bandwidth: Growing almost 3X in 5 years
Connected
devices
27.1 Billion
(>3X world population
by 2021)
Broadband
networks
53 Mbit/s
(average speed to nearly
double by 2021)
Video
82% of
IP traffic
(from 73% in 2016)
Source: Cisco VNI, June 2017
Annual IP traffic: 1.2 ZB in 2016 to 3.3 ZB in 2021
© 2018 EXFO Inc. All rights reserved. 7

8. Growth drivers
© 2018 EXFO Inc. All rights reserved. 8
Fiber 5G
Network
virtualization
Cloud

9. © 2018 EXFO Inc. All rights reserved. 9
Test
instruments
Built-in intelligence,
automation and
ease-of-use across
entire optical,
transport and
copper test portfolio.

10. Monitoring
and analytics
Offering end-to-end
network performance,
service reliability and
subscriber insights for
fixed and mobile
networks.
© 2018 EXFO Inc. All rights reserved. 10

11. © 2018 EXFO Inc. All rights reserved. 11
EXFO
markets
* Excludes losses on FX contracts
Market size $600M $2.0B $2.6B
EXFO sales―FY 2017 $161.9M $81.9M $243.8M*
Growth rate―FY 2017 6.6% -1.7% 4.6%
Gross margin profile 55-60% 70-75% 60-65%
Major competitors Viavi, Anritsu Viavi, NetScout
PROTOCOL
(T&D, SA, analytics, wireless)
PHYSICAL
(Optical and copper)
TOTAL

12. 12
Astellia
acquisition
– Global leader in performance
analysis of mobile networks
and subscriber experience
– EXFO gained full control of
Astellia’s share capital in late
February after successful
public tender offer in France
– Astellia’s total equity valued
at US$32.1M
– Multi-phased integration plan
with initial focus on sales to
maximize revenues ($8.6M
contribution in Q3 2018)
What they do
--Passive monitoring for 3G/4G/LTE
--Virtualized monitoring solutions
--Rich subscriber analytics
--Strong professional services

13. Brings significant scale to EXFO within mobile service assurance market
- Astellia posted IFRS revenue of US$45.7M in CY 2017, 120 customers and 400 employees
Acquisition rationale
13
Complements EXFO’s service assurance offering, customers and end-markets
- Creates unique platform with active and passive SA, network topology discovery and rich analytics
- No overlap with EXFO’s technology portfolio, customer footprint and geographic focus
Positions EXFO for upcoming virtualization and 5G investment cycles
- Largest European virtualization contract under deployment ($10M+)
- Standalone standards for 5G NR ratified in June 2018 with commercial deployments in 2019-20
- Timing of acquisition aligned with next wave of spending by communications service providers

14. 1 Leveraging cross-selling opportunities
(between $10M and $20M of additional
revenue in FY 2019)
2 Combining active and passive technology
platforms for comprehensive monitoring
solution with big data analytics
3 Extending Astellia’s professional services
offering across EXFO’s customer base
© 2018 EXFO Inc. All rights reserved. 14
Deal
synergies

15. Why invest?
2. Strong innovation
engine
– History of launching
disruptive solutions
(iOLM, EtherSAM,
SkyRAN, etc.) that
provide a first-mover
advantage
3. Robust cash flows
– Generated $12.9 M in
cash flows from
operations in FY 2017
– Delivered $24.4 M in
cash flows from
operations in FY 2016
4. Dynamic leadership
team
– One-two tandem of
Executive Chairman
Germain Lamonde and
CEO Philippe Morin
– Stable and experienced
– Deep telecom knowledge
1. Well positioned
for growth drivers
– Fiber
– Cloud
– Network virtualization
– 5G
© 2018 EXFO Inc. All rights reserved. 15