PROPRIETARY January 2016 Investor Presentation_1 PROPRIETARY

Intevac Investor Presentation

18th Annual Needham Growth Conference

January 13, 2016

POWERING INNOVATION. DELIVERING VALUE.

Wendell T. Blonigan Chief Executive Officer

James P. Moniz Chief Financial Officer

PROPRIETARY January 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 January 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 January 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 January 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

# p

asse

s to

scr

atch

0

10

20

30

40

50

60

70

80

90

AS Glass AS Glass + AFS AS Glass + oDLC

Scratch Protection

Rel

ativ

e p

rice

PROPRIETARY January 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

Thousands 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 January 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

Ce

ll E

ffic

ien

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 January 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 2H ‘16

• 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 IBC & 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 January 2016 Investor Presentation_9

200 Lean PVD Application: HDD Media

-

200

400

600

800

1,000

1,200

1,400

1,600

2014 2015 2016 2017 2018 2019

Exabyte

s

Exabytes Shipped on HDDs

TrendFocus August'15 Est. Gartner August'15 Est.

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

1.0

1.2

1.4

1.6

1.8

2.0

2.2

Actual Actual Actual Actual Actual Forecast Forecast

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

Tie Ratio (Average # of Disks per Drive)

Source – TrendFocus Nov. 2015

PROPRIETARY January 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

Media

Units (

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

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Actual Actual Forecast Forecast Forecast Forecast Forecast

2013 2014 2015 2016 2017 2018 2019

Tie Ratio for Nearline (Cloud) Drives

Source – TrendFocus Aug. 2015

Growth in Nearline HDDs Increases Media

Demand

• Nearline HDD Unit Volumes Growing in Otherwise

Stagnant HDD Unit Environment

• Nearline Tie Ratio Also Increasing – from 4.0 to 6.0+

Forecasts Estimate Media Growth at ~5%

CAGR (TrendFocus Aug. 2015)

Even if HDD Units Remained Flat, Media

Demand Will Exceed Capacity

• When Tie Ratio Increases to 2.5 – 2.75

Based on 117M Unit / Qtr HDD Market

Current

220

Capacity

300

PROPRIETARY January 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 January 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 January 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 January 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 January 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 January 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 January 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 January 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 January 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 January 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 January 2016 Investor Presentation_21

Improving Financial Performance

-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 2015 E

Gro

ss M

arg

in %

$M

Revenues OpEx Operating Loss GM%

Raised Revenue Guidance for

2015 on Nov. 2

• Growth Up 12-15% Over 2014

• Increased Guidance 3 Straight

Quarters

Improved Performance vs. 2014

• Higher Gross Margin

• Lower OpEx

• Reduced Operating Loss

Positioned to Return to Cash Flow

Positive Operations in 2016

At Midpoint of Guidance Provided Nov. 2, 2015

PROPRIETARY January 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 Nov 12, 2015

• <$5M Usage of Cash Forecast for 2015

• Net of Stock Repurchases

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

At October 3, 2015$ p

er

Sh

are

$ in

Millio

ns

Tangible Book Value Cash and Investments

TBV/Share Cash/Share

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

2013 2014 Q3'15

$ in

Millio

ns

Cumulative Cash Utilized for Stock Repurchases

Balance of Cash and Investments at Qtr/Year End

PROPRIETARY January 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; $56M in Cash and Investments at Q3’15

• $28.5M in Share Repurchases Completed as of Nov 12, 2015

• 2015 Cash Use Limited to <$5M, Net of Share Repurchases

• Positioned to Become Cash Flow Positive 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 January 2016 Investor Presentation_24

PROPRIETARY © 2016 INTEVAC, INC.