PROPRIETARY Q1 2017 Investor Presentation_1 PROPRIETARY

Intevac Investor Presentation

First Quarter 2017 Update

POWERING INNOVATION. DELIVERING VALUE.

Wendell T. Blonigan Chief Executive Officer

James P. Moniz Chief Financial Officer

PROPRIETARY Q1 2017 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 Q1 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 Opportunity Over 5-Year Timeframe Revenue Opportunity Pipeline for Current Programs & Pursuits

PROPRIETARY Q1 2017 Investor Presentation_4

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

Op

200 Lean®

INTEVAC MATRIXTM INTEVAC 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 deposition HDD – hard disk drive

• Enabling Advanced Solar Cell Architectures with PVD and Implant Technology

PROPRIETARY Q1 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 Q1 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 Applications

High-Volume / High-Growth Markets

Mobile Phones Tablets

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 Q1 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 by Mid-2017 Vertex Now Installed at Additional Tier-1

CG Manufacturer 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 CG Now

Camera Lens (CL) Future

Back-Case (BC) Future

Home Button Future

PROPRIETARY Q1 2017 Investor Presentation_8

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

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 field Multi PERC – multi-crystalline passive emitter rear contact Mono PERC – mono-crystalline passive emitter rear contact Mono PERT– mono-crystalline passive emitter rear totally (diffused) Mono PERL – mono-crystalline passive emitter rear locally (diffused) HJT – heterojunction technology IBC – interdigitated back contact

PROPRIETARY Q1 2017 Investor Presentation_9

Solar Market Opportunity

Progress • MATRIX PVD

- Process Tool of Record for N-type Cells • MATRIX Implant

- Order in Backlog with Tier 1 Customer - Investigating Adjacent Applications

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

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 Q1 2017 Investor Presentation_10

1.0

1.2

1.4

1.6

1.8

2.0

2.2

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

Tie Ratio (Average # of Disks per Drive)

200 Lean PVD Application: HDD Media

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 • Shipping ~230M in Q4’16; Capacity ~300M (per Qtr)

Multi-System Orders Support Tech. Roadmap • 4-System 200 Lean Order Announced Q2’16 • 4 Additional Systems Booked in Second Half 2016

Source – TrendFocus Nov. 2016 and Feb. 2017

-

200

400

600

800

1,000

1,200

1,400

2015 2016 2017 2018 2019 2020

Exab

ytes

Exabytes Shipped on HDDs

PROPRIETARY Q1 2017 Investor Presentation_11

0

50

100

150

200

250

300

350

400

450

500

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

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Actual Forecast Forecast Forecast Forecast Forecast

2015 2016 2017 2018 2019 2020

Tie Ratio for Nearline (Cloud) Drives

Nearline HDDs for the Cloud Driving Tie Ratio Upward

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

Source – TrendFocus Aug. 2016

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 110M Average Unit / Qtr HDD Market

Current ~230

Capacity 300

PROPRIETARY Q1 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

• $25M Funding Vehicle for Next-Gen Sensor – Future Ground Force Goggle

• 15-Year Tech Roadmap Established

• HMDs for F-35 and Striker II • Digital Aviation Goggle in

Development • Enhanced Visual Acuity

(EVA) Initiative

Apache Camera

LIVAR SWIR Camera

HMDs – helmet-mounted displays LIVAR – laser illuminated viewing and ranging SWIR – short wave infra red UAV – unmanned aerial vehicle

PROPRIETARY Q1 2017 Investor Presentation_13

Photonics Application: Night Vision Cameras

LIVAR – Airborne Target ID Camera

Apache Helicopter Night Vision Camera

• Rotary Pilotage Programs • US Army’s Apache Helicopter

• Fixed Wing Gen 5 HUD • F-35 Joint Strike Fighter • BAE Striker II Helmet for Eurofighter NAVAIR Enhanced Visual Acuity (EVA) Target ID and Ranging

• LIVAR (SWIR) - Northrup Grumman LITENING Pod

Intevac’s Digital Night Vision Technology Enables:

- High-Definition Night Imagery - Information Overlay Capability (AR) - Fused Infrared and Low Light Imagery - Low-Halo Operation - Image Enhancement and Transmission - Elimination of Bulky Analog NV Goggles

Fused Night Vision and IR

PROPRIETARY Q1 2017 Investor Presentation_14

Photonics Opportunity: Night Vision Cameras

• Progress • 875+ Apache Cameras Fielded • 1100+ LIVAR Cameras Fielded • “Digital Night Vision Gold Standard”

- ISIE-11 Sensor • High Resolution Camera in Evaluation

- ISIE-4000 Sensor

• Opportunity • Contracted Deliveries of Apache and LIVAR • Pursuits:

- Apache Co-Pilot / Gunner - Next-Gen (ISIE-19) for Apache Upgrade - Next-Gen ISIE-11-Based SWIR for LIVAR Upgrade - UAV Applications

Program Opportunity Pipeline $275M+

F-16 Falcon

Apache Helicopter

Current Production,

$140 Upgrades, $97

Pursuits, $39

PROPRIETARY Q1 2017 Investor Presentation_15

Photonics Opportunity: Integrated Night Vision

Progress • In Production for F-35 JSF (~12,000 Sockets) • 500 Gen 1s (ISIE-10) Fielded • >2000 Gen 2s (ISIE-11) Contracted • In Qualification for BAE’s Striker II Helmet • High-Resolution ISIE-4000 Binocular Goggle

Prototypes Completing US Navy Evaluation for EVA

Opportunity • F-35 to Full Rate Production

- ~2950 baseline aircraft • Pursuits:

- Next-Gen Camera (ISIE-19) for F-35 Upgrade

- Opportunities in Europe Beyond Typhoon - US Navy Program for EVA ‣ High-Resolution Digital Goggle

Program Opportunity Pipeline $630M+

Joint Strike Fighter

Eurofighter Typhoon

F-35 HMD

BAE STRIKER II HMD

High-Resolution Digital Night

Vision Goggle

Current Production,

$218

Upgrades, $147

Pursuits, $273

PROPRIETARY Q1 2017 Investor Presentation_16

Photonics Application: Ground Forces

• Enhanced Night Vision Goggle (ENVG4) (Monocular) for US Army Ground Forces • Program of Record to Replace Analog Night Vision

• Wireless Helmet-Mounted Display • US Army Family of Weapon Sights – Crew Served • US Navy M2 Weapon Sights

Enhanced Night Vision Goggle Fused Goggles – Augmented Reality

Wireless Helmet-Mounted Display Intevac’s Digital Technology Enables:

Enhanced Night Vision Goggle: - Low-Halo Operation - Augmented Reality - Proven IR and Low-Light Fusion

Wireless Helmet-Mounted Display: - Proprietary Optical Design - Proven Low-Cost Solution - Strong Support by US Government

PROPRIETARY Q1 2017 Investor Presentation_17

Photonics Opportunity: Ground Forces

• Progress • ENVG4 Digital Monocular Goggle

• Successfully Demonstrated to US and Foreign Services

• Generating Funding for ISIE-19 Development • Transitioning Demonstrator to Product • $25 Million Funding Vehicle in Place for

Next-Gen Sensor Development • Wireless Head Mounted Displays

• Prototypes Qualified • Selected by Multiple Primes • USG Requirements for Wireless HMD Built

Around Intevac Demonstrator

• Opportunity • FWS – CS and M2WS Transitioning from

Prototypes to Production • Pursuits:

• Over 66K Digital Night Vision Monoculars to be Fielded for US Army Soldiers

• Binocular Goggle for Special Operation Forces – US and Foreign

• Soldier Visual Interface Technology (SVIT) • Fused Vision Mobility Device (Day)

Program Opportunity Pipeline $530M+

Augmented Reality Overlay

Analog Point Source “Halo”

Intevac Digital “Low Halo”

Current Production,

$57

Pursuits, $477

PROPRIETARY Q1 2017 Investor Presentation_18

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

$200-300M

5-Year Available Revenue Opportunity

Night Vision Cameras

$275M+

Integrated Night Vision

$630M+

Ground Force Night Vision

$530M+

Revenue Opportunity Pipeline for Current Programs & Pursuits

PROPRIETARY Q1 2017 Investor Presentation_19

Improving Financial Performance

Positive Performance in 2016 • Revenues Up 7% Over 2015 • Improved GM and Operating

P&L • Positive Cash Flow from

Operations • Net Increase in Total Cash and

Investments

2017 Guidance* • Revenue Up 25%+ Over 2016

- Q1’17 Revenues of $28-$29M • 37-38% Gross Margin • $37-$38M Operating Expenses

Positioned for Profitability in 2017

* 2017 Guidance Provided as of February 1, 2017.

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

$(20)

$(10)

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

2014 2015 2016G

ross

Mar

gin

%

$M

Revenues Non-GAAP OpEx Operating Loss GM%

PROPRIETARY Q1 2017 Investor Presentation_20

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

Strong Balance Sheet Strategically Deploying Capital

Returned Capital to Shareholders through $30M Stock Repurchase Program • $28.5M Purchased as of YE 2016 • $50M Balance Aligned with Cash Needs

Net Increase in Total Cash and Investments During FY2016

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

2013 2014 2015 2016

$ in

Mill

ions

Cumulative Cash Utilized for Stock Repurchases

Balance of Cash and Investments at Year End

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$-

$10

$20

$30

$40

$50

$60

$70

$80

At Dec. 31, 2016$

per S

hare

$ in

Mill

ions

Tangible Book Value Cash and Investments

TBV/Share Cash/Share

PROPRIETARY Q1 2017 Investor Presentation_21

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

• Multiple VERTEX Display Cover Panel Systems Booked 2016

• MATRIX PVD Provides Cost Advantages for Advanced Solar Cells

• Technology and Market Share

Leader in HDD

• Strong Balance Sheet • Improving Financial Performance • Cash Flow Positive Operations in 2016 • Positioned for 25%+ Revenue Growth and Profitability in 2017

• Major Programs with Apache and JSF • Funding Vehicle Awarded for Next-

Generation Sensor Development

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

PROPRIETARY Q1 2017 Investor Presentation_22

PROPRIETARY © 2017 INTEVAC, INC.