ACCURATE RELIABLE RESPONSIVE

Corporate OverviewAugust 8, 2019

(Denominated in Canadian dollars, unless otherwise noted)

Forward Looking Statements

This Presentation contains “forward-looking statements” within the meaning of applicable Canadian securities legislation. These statements generally can be identified by use of forward-looking words such as “may”, “will”, “could”, “would”, “should”, “might”, “expect”, “estimate”, “anticipate”, “intend”, “consider”, “believe”, “plan”, “project”, “assume”, “strategy”, “goals”, “objectives”, “potential”, “possible”, “confident” or “continue” or the negative thereof or similar variations. Such forward-looking statements concern the business and anticipated financial performance of the Company and include, without limitation, the Company’s outlook on the long-term prospects of the market and the Company, the Company’s expectations with respect to the overall order activity for the balance of the year, projections of the Company’s revenue, EBITDA, cash position, share buyback, growth in the etch market, timing of the semiconductor industry cycle, cost structure, and the Company’s ability to build on its financial and operational foundation in the future.

These forward-looking statements are based on certain factors and assumptions, including, without limitation: the Company’s ability to develop, manufacture and sell new products that meet the needs of its customers and gain commercial acceptance; the Company’s ability to continue to sell its products in line with expected quantity, price and delivery times; the Company’s ability to attract new business; continued and future demand for the Company’s products; continued sales to the Company’s major customers; the Company’s operations not being adversely affected by supply, operating, cyber security, litigation or regulatory risks; the Company’s ability to react to the cyclical nature of the semiconductor industry; and, the Company’s expectations regarding market risk, including interest rate changes, tax changes and foreign currency fluctuations.

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without limitation: additional measures and controls may not be implemented as expected or along the timelines anticipated; uncertainties relating to the market for the Company’s products and maintaining a stable level of orders; fluctuations in revenue as a result of volatility in the markets and product mix; risks relating to the Company’s present reliance on its major customers for the majority of its sales; risks relating to the Company’s reliance on the financial health of and timing of cycles in the semiconductor industry; risks relating to the development of competing technologies and the possibility of increased competition; the effect of slow growth in the United States, the Company’s principal market, as well as other economies and other economic trends and conditions in the markets that the Company and its customers serve; risks associated with technical difficulties or delays in product introductions, improvements, implementation; uncertainties in product pricing or other initiatives of the Company and its competitors; uncertainties in factors that may result in a reduction in capital expenditures and/or delayed buying decisions affecting demand for the Company’s products; risks relating to currency fluctuations, particularly between the Canadian and United States dollars; risks in pursuing additional development projects to support existing customers or pursue other business opportunities; and such other risks as are identified in the Company’s Annual Information Form and other disclosure documents filed on SEDAR at www.sedar.com.

The foregoing assumptions, risks and uncertainties are not exhaustive of the items that may affect our forward-looking statements. Should underlying assumptions prove to be incorrect or one or more of these risks and uncertainties materialize, actual results may vary materially from those described in the forward-looking statements. The Company’s forward-looking statements are based on beliefs, expectations and opinions of management on the date the statements are made.

For the reasons set forth above, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements included herein if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.

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(Denominated in Canadian dollars, unless otherwise noted)

Photon Control

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1 A global critical subsystems supplier of fiber optic sensors for process monitoring of wafer fabrication equipment (WFE)

Continued investments in innovation and new product development to serve our customers and grow organically

Deeply integrated with customers, with locations in Vancouver, Canada; San Jose, California; and Asia

Strong balance sheet to manage through semiconductor cycles, whilst supporting corporate priorities to create long-term shareholder value

A growing installed base of over 100,000 fiber optic sensors for process monitoring applications

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3

4

5

(Denominated in Canadian dollars, unless otherwise noted)

Aligned New Product programs to ensure long-term growth

Our high-accuracy fiber optic sensors enable improved process monitoring, uniformity, and repeatability in harsh environments, which provides value throughout the supply chain.

PhotonControl

Wafer Fabrication Equipment

Manufacturers(OEMs)

SemiconductorChip

Manufacturers

ElectronicsManufacturers

Increasedyield and

productivity

Photon Control is a Critical, Integrated Supplier

High-accuracy Fiber Optics

Sensors

Well controlled semiconductor

equipment

Improved process monitoring,

uniformity and repeatability

Servers, 5G, IoT, AI, VR/AR

Greater accessibility of technology

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Higher performance and

lower cost

Logic and Memory chips

Deep Integration in Semiconductor Supply Chain

(Denominated in Canadian dollars, unless otherwise noted)5

Head Office• Vancouver, BC, Canada

• Sales

• Engineering and R&D

• State-of-the-art and scalable manufacturing facility with Class 1,000 cleanroom

• ISO 9001:2015 certified

Photon Control is a Worldwide Company

Asia Distribution Network• Japan - Japan Laser Corporation

• China - Crowntech Photonics

• South Korea - QSP Co., Ltd.

Silicon Valley Office• Sales

• Engineering and R&D

(Denominated in Canadian dollars, unless otherwise noted)

Financial Snapshot

Q2 2019 YTD 2019

Revenue $7.1M $15.1M

Gross Margin 55% 54%

EBITDA Margin 17% 18%

As at June 30, 2019

Cash $31.4M

Order Backlog $10.7M

$12.0$11.0

$13.9$14.6

$10.1

$8.2 $8.0$7.1

$0

$5

$10

$15

$20

Q32017

Q42017

Q12018

Q22018

Q32018

Q42018

Q12019

Q22019

Rev

en

ue

6

(in $ millions)

Management Delivering Operational Efficiencies

Q3 2019 Guidance

Revenue $6.5M - $8.5M

Gross Margin 50% to 55%

EBITDA Margin 17% to 21%

Markets & Technology Drivers

(Denominated in Canadian dollars, unless otherwise noted)

Global Semiconductor Market Is Large

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Source:IC Insights (2018), The Robot Report (2018), Statistica (2018, Technvio (2017))Labeling convention: “Market”: IC Revenue in 2020 (CAGR 2016-2020)

Growth in these end markets and the trend toward smart semiconductor manufacturing will lead to growing demand for Photon Control’s products

(In $USD)

Artificial Intelligence

Exponentialgrowth

ConsumerVR / AR Digital

displays

Industrial/Medical

Smart Grid/Mobile Medical

Big Data/Cloud

Bandwidth/Memory

AutomotiveAutonomous

driving

Internet of Things

200B connected devices by 2020

MobilityTransition to 5G

Autos: $28B (9%)

Robotics $10B (30%)

IoT $21B (15%)

Phones: $90B (4%)

Servers: $17B (6%)

VR/AR: $10B (15%)

Medical: $5.9B (11%)

(Denominated in Canadian dollars, unless otherwise noted)

Deposition24%

Litho & Track20%

Automation5%

Inspection & Met.11%

Other 4%

Thermal & doping

5%

Other clean & removal10%

Plasma Etch 21%

Global WFE Market by Process

(in $USD)

Lam Research

$47%

Tokyo Electron

$26%Applied Materials

19%

Hitachi $4%

Others4%

Source: Gartner, Market Share: Semiconductor Wafer Fab Equipment, Worldwide, 2017

Plasma Etch Equipment Market = $10.8BTotal WFE Market = $51B

Dry Etch Equipment Market Share

(In $USD)

Photon Control’s Served Market Segments

Plasma Etch and Deposition accounted for ~45% of the WFE market

Photon Control supplies to the largest WFE suppliers

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(Denominated in Canadian dollars, unless otherwise noted)

Semiconductor Manufacturing Process Steps

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Significant Opportunity For Growth in Deposition

(Denominated in Canadian dollars, unless otherwise noted)

Device Scaling Trends & the Role of Sensors

Increased manufacturing challenges as device scale and process windows shrink:

• More sensors used to monitor and control critical process parameters

• More accurate sensors

• Smarter sensors

Trends toward “smart” factories which use more sensors for process monitoring to:• Accelerate time to market• Increase yield • Increase uptime• Expand data analysis

Logic

3D NAND

ProcessWindow

7nm 5nm 3nm

64L 96L 128L

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ChuckWaferEdgeRing

Centered (using position sensors)

Higher Yield

Off-center (no position sensors)

Lower Yield

Yield Loss

(Denominated in Canadian dollars, unless otherwise noted)

Market Potential

There is an opportunity to expand Photon Control’s fiber optic sensors into other markets with these attributes:

• Harsh environments

• Strict manufacturing tolerances

• High cost of yield, uptime and efficiency

Capitalize on Photon Control’s successful market penetration in the semiconductor industry by extending our product reach

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Medical

Military

Aerospace

?

Transformers

Power Generation

Food ProcessingLife Sciences

Products & Differentiators

(Denominated in Canadian dollars, unless otherwise noted)

Building World-Class Products For Advanced WFE

Accurate fiber optic sensors

Uniform process in plasma etch and deposition

Improved uniformity on final wafer out of fab

Greater Chip Yieldand higher fab uptime ($$$)

Photon Control’s Fiber Optic Temperature

Probes and Converter

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Improved Uniformity Enables Higher Chip Yields and Fab Efficiency

Our solutions become “designed in” to our customers’ products, producing stable growing revenue streams with multi-year life cycles.

Aligned New Product programs to ensure long-term growth

(Denominated in Canadian dollars, unless otherwise noted)

Photon Control’s Fiber Optic Temperature Sensors

Our fiber optic temperature sensors are used to measure the electrostatic chuck temperature in plasma etch systems

• The measured temperature is used to maintain a uniform wafer temperature during processing

Why does temperature uniformity matter?

• The performance of an individual chip is very sensitive to the local wafer temperature

• More sensors and higher accuracy sensors enable better wafer temperature control which produces higher yield

• Photon Control’s current accuracy specification is +/-0.5oC

Process Gases

Plasma

ChuckWafer

Photon Control

converter

Process Chamber

Photon Control fiber optic temperatureprobes

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Controller

Plasma Etch Chamber (with strong RF electromagnetic fields)

Plasma

(Denominated in Canadian dollars, unless otherwise noted)

Photon Control’s Temperature Sensor Products

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Single Channel Temperature Converters

MC5 Multi-Channel Temperature Converters

Fiber Optic Contact and Immersion Probes

• Reduced cost and form factor for multi-probe applications

• FLEXGLOTM technology improves long-term stability and lifetime

• Added self-diagnostic capabilities for predictive maintenance

• EtherCAT communication option

• Highly accurate, stable, and reliable converter

• Field-proven - Over 100,000 in the field for semiconductor manufacturing

• Proprietary optical materials and manufacturing process enables high accuracy and stability within a temperature range of -100°C to +450°C

• In-house calibration expertise ensures tight probe-to-probe repeatability

(Denominated in Canadian dollars, unless otherwise noted)

Photon Control’s Position Sensor Systems

We custom design, develop, and manufacture optical position and displacement sensors that can accurately measure wafer/chuck edge and center locations

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Accurate and repeatable wafer placement and wafer leveling in the process chamber are critical for achieving high yield

Wafer on Chuck in a Generic Process Chamber

ChuckWaferEdgeRing

Centered (using position sensors)

Higher Yield

Off-center (no position sensors)

Lower Yield

Yield loss

• Precise wafer placement for processing is a critical requirement for high yield

• Photon Control’s position sensors improve precision and repeatability of wafer placement

(Denominated in Canadian dollars, unless otherwise noted)

Competitive Advantages

Customer knowledgeProduct expertise, fast response time, relationship focused, local support

Product performance Best accuracy and long-term stability in harsh environments NPI to deliver high performance and achieve cost down

Proven in high volume semiconductor manufacturing >100,000 sensors in semiconductor fabs worldwide

Rapid prototypingRapid prototyping helps our customers quickly develop process monitoring solutions

World-class manufacturingNew scalable manufacturing facility, in-house phosphor lab, calibration expertise, ISO clean room, on-time delivery

Thermal Couple /

RTD

Pyrometer, IR detector (non-contact)

Fiber Optic: GaAs bandgap

detection

Fiber Optic: Phosphor

Thermometry

Ability to perform on harsh environments

Acc

ura

cy a

nd

per

form

ance

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Advantages of phosphor fiber optic technology:

High accuracy → process control and improved yield

Long term stability → wafers will not be misprocessed

Immune to magnetic fields → No interference from RF plasma or microwave sources

Advantages vs. Competing Technologies Our Advantages vs. Direct Competitors

Low value

High value

Financial Information

(Denominated in Canadian dollars, unless otherwise noted)

Key Financial Metrics

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Proven Business Model Strong Cash Position

(in $ millions) (in $ millions)

$25.1$27.0

$34.3 $33.4

$40.8$42.7 $42.4

$37.3

$31.4

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2018 2019

$11.9

$8.9

$12.0

$11.0

$13.9 $14.6

$10.1

$8.2 $8.0

$7.1

60%

53%54%

45%

57% 57%

52% 52%53%

55%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2017 2018 2019

Revenue

Gross Margin

(Denominated in Canadian dollars, unless otherwise noted)

Stock Information

TSX: PHOClosing Share Price (August 7/19) $1.05

# of Shares Outstanding (Basic) 105M

# of Shares (Fully Diluted) 109M

52-Week High $2.40

52-Week Low $0.84

Market Capitalization (@August 7/19) $110M

Enterprise Value (“EV”) (@August 7/19) $79M

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Valuation MetricsPrice-to-Earnings ratio (TTM) 26.3x

EV-to-Revenue ratio (TTM) 2.4x

EV-to-EBITDA ratio (TTM) 9.6x

Cash/Share $0.30

(Denominated in Canadian dollars, unless otherwise noted)

Key Takeaways

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1Continuing to invest in product development and innovation in anticipation of improving industry trends

2Investing with customers on joint development provides organic growth from etch and deposition product lines

3 Managing the business through the cyclical downturn

4 Opportunities for growth within high tech industries

www.photoncontrol.comTSX: PHO