PROPRIETARY November 2015 Investor Presentation_1 PROPRIETARY

Intevac Investor Presentation

Needham Next-Gen Storage/Networking Conference

November 2015

POWERING INNOVATION. DELIVERING VALUE.

Michael A. Russak, PhD Executive Advisor

PROPRIETARY November 2015 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 November 2015 Investor Presentation_3

Multiple Avenues for Growth

Thin Film Equipment

Intevac

LIVAR – Airborne

Target ID

Joint Strike Fighter

Helmet Night Vision Apache Helicopter

Night Vision

PV Metallization &

Ion Implant

Mobile Display

Protective Coatings

Photonics

Digital Night Vision and Target ID

Hard Drive

Media

PROPRIETARY November 2015 Investor Presentation_4

Significant Opportunity in Display Cover Panel

oDLC Bare CG

Two Major Customers Engaged

• First Pilot Tool Shipped Q3’14; Successful Sign-off Q1’15

• Second VERTEX Tool Order Q3’15; Revenue in 2016

• Both Customers are Tier 1 Cover Panel Manufacturers in Asia

Optical Diamond-Like Carbon (oDLC) Protective Coating

for Scratch Resistance

• Rigorous “Torture” Testing

• Outstanding Scratch Protection Results

Important Validation of End-Market Value Proposition

• 2nd Customer Order Driven by Mobile Device Mfr

• Compelling Protection Benefit for Low Mfg Cost

• Accelerating Seeding Market with Sample Production

PROPRIETARY November 2015 Investor Presentation_5

Thin Film Markets Leveraging Core Capabilities

Core Capabilities

Flexible Platforms Suited to a Variety of Substrate

Sizes and Process Technologies

High Throughput and Productivity

Vacuum-Based Thin Film Coatings

PVD and Ion Implant

Strategy

Leverage into Multiple Vacuum Process Applications

Focus on High-Productivity, Innovative Process Solutions

Multiple Areas for Growth

Two VERTEX Display Cover Panel Customers; Mainstream

Mobile Device Applications

Becoming Process Tool of Record for Advanced Metallization of

High-Efficiency Solar Cells with Two MATRIX PVD Customers

Moving Swiftly Through Milestones for Solar Implant Joint

Technology Development Program with Tier 1 Customer

Market Leader in HDD Media When Capacity Buys Resume

INTEVAC MATRIX

PROPRIETARY November 2015 Investor Presentation_6

Opportunity in New Thin Film Applications

INTEVAC VERTEX PVD – Protective Coatings

Adoption for Half of Incremental Growth =

$300M SAM over 5 Years

Mainstream Mobile Device Adoption Would Enable

Much Larger Opportunity

Various opportunities include: •Mobile Phone Cover Panel and Camera Lens

•Tablets and Touch Screen Notebooks

•Automotive and Aviation

INTEVAC MATRIX PVD – Solar Cell Application

>$100M SAM for PV Metallization over 5 Years

Leverageable into Additional Thin-Film Applications

Becoming Process Tool-of-Record for Advanced Metallization of High-Efficiency Solar Cells

Two Tier 1 Customers Adopting + Multiple Engagements

INTEVAC MATRIX Implant – Solar Cell Application

Joint Technology Development Approach Offsets Investment Level as Technical Risk is Retired

Niche Application with Initial Customer = ~$50M Opportunity over 5 Years

First System Order Booked Q3’15

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5YR Opportunity

SA

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Solar Implant JDA

MATRIX PVD forSolar

Mobile DisplayCover Panel

PROPRIETARY November 2015 Investor Presentation_7

Photonics: Digital Night Vision for U.S. Military

LIVAR® Camera for Northrop Grumman

LITENING Pod

> $90M Program

Multi-Year Purchase

Agreement in Place

Apache Night Vision Camera

~ 1600 Apache Helicopters

~$110M Program

Current Generation

Deliveries Through 2017

ISIE-14 Upgrades 2018+

Joint Strike Fighter Night Vision Camera

Integrated Night Vision

Solution for Visor-Only

Heads-Up Display

Total Opportunity >$250M

PROPRIETARY November 2015 Investor Presentation_8

Intevac’s Photonics Business Provides:

Digital Night Vision Sensors and Cameras

- Offering Superior Performance to Analog “Green Glow” Night Vision

- Avionics and Ground Force Applications

- Deployed on:

Rotary and Fixed Wing Military Aircraft

Military Rifle Sights with NATO Partner

Goggles and Helmets

LIVAR Long Range Target ID Sensors and Cameras

- Target Identification Imagery at Distances Up to 20KM

Proprietary Enabling Technology for Digital Night Vision

PROPRIETARY November 2015 Investor Presentation_9

Providing Multiple Meaningful Benefits over Analog

Inherent Benefits of Digital Enables Halo Reduction

Enables Fusion of Night Vision and

Infrared Imagery with Symbology

Enables Data Sharing: Recording

and Transmitting of Images

Enables Remote Viewing (Soldier

Safety)

PROPRIETARY November 2015 Investor Presentation_10

2015: An Investment Year after Strong 2014

Photonics Business Environment

Highly Differentiated Technology

Sole Source Provider

Military’s Transition to Digital Underway

Multiple Programs in Pipeline

Financial Performance:

• 30+% Revenue Growth in 2014

• Revenue and Profits Moderating in 2015

- Profitability Moving toward Long-Term Model

- Investing Profits for Future Growth

Photonics Strategy and Outlook

Continue to Add Additional Programs to Build Upon Existing Revenue Base 2016+

Significant Opportunities Include Ramping of the F35 Joint Strike Fighter Program

Investing in Next-Generation Sensor Technology in Preparation for Largest Future

Opportunity: Military Ground Forces

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Photonics Revenue Photonics Operating Profit

PROPRIETARY November 2015 Investor Presentation_11

Business Environment

Technology and Market Share Leader

Exabyte Demand Expected to Strengthen

with Growing Cloud-Based Storage Market

Return to Growth for Media Projected

Excess Capacity Remains

Improved Environment for Strategic Upgrades

Improved HDD Demand Expected 2H’15

Intevac Strategy

Maintain Technology Leadership

Focus on Variable Cost Structure

Pursue Opportunities to Expand Upgrade Business

Position for Market Share Gains

• Leveraging our technology leadership, at the next media inflection point

World’s Leading Supplier of HDD Media Equipment

200 Lean Platform

Leading Magnetic Media

Manufacturing System

PROPRIETARY November 2015 Investor Presentation_12

Structuring and Managing the

Company for Profitability Across

Business Cycles

Pursuing Organic Growth Initiatives

Strong Foundation with No Debt

Strong Foundation and Capital Deployment Strategy

Maintaining Strong Balance Sheet Strategically Deploying Capital

Returning Capital to Shareholders through

$30M Stock Repurchase Program

• $21M Purchased as of Nov 2 Conf. Call

<$5M Decline in Cash, Net of Stock

Repurchases, Expected for 2015

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At October 3, 2015$ p

er

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are

$ in

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ns

Tangible Book Value Cash and Investments

TBV/Share Cash/Share

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Cumulative Cash Utilized for Stock Repurchases

Balance of Cash and Investments at Qtr/Year End

PROPRIETARY November 2015 Investor Presentation_13

Investment Rationale

Solid Financial Foundation

Strong Balance Sheet; $56M in Cash

and Investments at Q3’15

$30M Share Repurchase Announced

November 2013; $21M thru Nov 2’15

2015 Operating Cash Burn Limited to

<$5M; Turn CF Positive in 2016

Large New Equipment Opportunities

Meaningful Traction with Tier 1

Customers for Thin Film Applications

Second Major Customer Won for

both Display Cover Panel Coating

Solution and MATRIX PVD for Solar

New Order for MATRIX Implant from

Tier 1 Solar Customer

Profitable Photonics Business

>$500M Business Opportunity

Pipeline over Life of Current Programs

2015 Milestones: Apache at Full-

Volume Production, Financials

Moving Toward LT Target, Funding

Vehicle Awarded for Next-Generation

Sensor Development

HDD Media Leadership

Technology and Market Share Leader

Media Units Forecasted to Return to

Growth, Driven by Cloud Storage

Significant Capacity Needs Projected

Longer Term

PROPRIETARY November 2015 Investor Presentation_14

PROPRIETARY © 2015 INTEVAC, INC.