PROPRIETARY B Riley May 2018 Investor Presentation_1PROPRIETARY

Intevac Investor Presentation19th Annual B. Riley FBR Investor Conference

May 24, 2018

POWERING INNOVATION. DELIVERING VALUE.

Wendell T. BloniganChief Executive Officer

James P. MonizChief Financial Officer

PROPRIETARY B Riley May 2018 Investor Presentation_2

Cautionary Disclaimer

During the course of this presentation, we will comment upon future events andmay make projections about our future financial performance, includingstatements related to strategies, our expected sales, product shipments andacceptance, gross margin, operating expense, profit, cash flow, income taxexpense, and capital allocation. We will discuss our business strategy, ourproducts, the markets our products address, our position in those markets,expected market acceptance of those products and production capacity. Wewish to caution you that these are forward looking statements that are basedupon our current expectations, and that actual results could differ materially as aresult of various risks and uncertainties, including, without limitation, thefollowing: inability to develop and deliver new products as planned; inability toaccurately forecast the demand for our products and services; the possibility thatorders in backlog may be cancelled, delayed or rescheduled; inability to achievegross margin and expense goals; and other risk factors discussed in documentsfiled by us with the Securities and Exchange Commission, including our AnnualReport on Form 10-K and Quarterly Reports on Form 10-Q. We undertake noobligation to update the forward-looking statements made during thispresentation.

PROPRIETARY B Riley May 2018 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 OpportunityOver 5-Year Timeframe Revenue Opportunity Pipeline for Current Programs & Pursuits

PROPRIETARY B Riley May 2018 Investor Presentation_4

Thin-Film Equipment:Core Technologies and High Productivity Platforms

Op

200 Lean®

INTEVAC MATRIX®INTEVAC VERTEX®

Core Technology

• Small-Substrate Processing

• Precision Thin-Film Deposition

• High-Throughput

• Serving Ongoing Technology Needs as Market Share Leader in HDD Media

PVD – physical vapor depositionHDD – hard disk drive

• Horizontal Carrier-Based Platform for Precision Thin Film Deposition, Etch and Ion Implant

• Vertical Carrier-Based Platform for Precision Thin Film Deposition, Etch and Implant

Substrate Independent

PROPRIETARY B Riley May 2018 Investor Presentation_5

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

- 2.5D & 3D Cover Glass - Glass Back Cover- Protection of Additional Value-Added Coatings

• Extreme Cost Sensitivity

Advantages of Optical Diamond-Like Carbon (oDLC): • Lowest Cost Anti-Scratch Solution 20x Scratch Resistance 20% Increased Breakage Resistance 10x Haze Reduction Ability to Tune oDLC Coating for Each Application

VERTEX oDLCTM for Display Cover Panel

oDLC ApplicationsHigh-Volume / High-Growth

Markets

Mobile PhonesTablets

Wearables POS Stations

Auto -Infotainment

Stainless Steel Ball @ 7.5N Force – 10 Cycles per MinuteCS-17 (Taber) Scratch Test Results / 300 Cycles

oDLC 2.0oDLC 1.0

oDLC Version 2.0 Results:Improved Scratch Resistance

Bare Glass

PROPRIETARY B Riley May 2018 Investor Presentation_6

oDLC Demonstrating Capability to Protect Additional Film Stacks

Significant Drivers of New Customer oDLC Evaluations

Integrated Film Stacks

3D and Back Cover Glass

Market Drivers:• Wireless Charging• 5G • Improved Battery Life

oDLC Advantages: • Enables Decorative and Other Coatings

- Non-Conductive Vacuum Metallization (NCVM)- Anti-Reflective (AR)

• Improved Durability• Lowest CoO

oDLC

Cover Glass

AF

AR / NCVM

Anti-fingerprint; prevents fingerprints, dirt

oDLC improves hardness, resists scratches

AR: reduces reflection; NCVM: for color finish

PROPRIETARY B Riley May 2018 Investor Presentation_7

Display Cover Panel: Progress and Opportunity Progress Multiple Systems at Truly Opto-electronics ~24M Units of Annual Smartphone Capacity in Production oDLC Deployed on First Top-3 Handset Maker in Mar. 2018

VERTEX also Installed at Additional Tier-1 Customer Evaluations Ongoing; Performance Criteria Solidifying on

Several Applications

VERTEX to be Installed at Top-3 Cover Glass Manufacturer by Mid-Year New Processing Source Technologies in

Development- Enabling oDLC 2.0, Anti-Reflective and Decorative

Coatings• Patent Granted on Intevac’s oDLC Source

Opportunity• >$500M Revenue Opportunity over 5 Years

- Includes Smartphones / Tablets ‣ As well as Wearables, Automotive, Etc.

- Significant Growth Opportunity in a Green Field Application

Source – IHS Markit May 2017

oDLC 2.0New PVD Technology Opens Up New

Market Opportunities in AR and Decorative Coatings

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2014 2015 2016 2017 2018 2019 2020 2021

SHIP

MEN

T U

NIT

S (0

00S)

Cover Glass Shipments by Top 5 Volume Applicat ions

Automotive Monitor Mobile Phone Front Mobile Phone BackNotebook PC Smart Watch Tablet PC

PROPRIETARY B Riley May 2018 Investor Presentation_8

200 Lean: Market Leadership in HDD Media

Source – TrendFocus Feb. 2018

Storage Shipped on HDDs by 2022 will be Approx. 3x 2017 Levels HDDs will continue to dominate storage landscape

- ~2000 EB on HDD in 2022 (24% CAGR)- ~ 160 EB on SSD in 2022 (20% CAGR)

HDD Exabyte growth driven by Nearline segment• Media growth drives Intevac equipment business• Tie ratio of average # of disks per Nearline HDD will

increase from ~4 today to >7 by 2022

0

500

1000

1500

2000

2500

2015 2016 2017 2018 2019 2020 2021 2022

Exab

ytes

Desktop HDD Mobile HDD Traditional Enterprise HDD Nearline HDD CE HDD Client SSD Enterprise SSD

PROPRIETARY B Riley May 2018 Investor Presentation_9

Capacity Crossover Forecast for 2020

Approx. 15 to 20% media production overcapacity today• The increase in disks used in high-capacity

drives must offset reduction of disks shipped in lower tie-ratio mobile and desktop drives

• Crossover is forecast to occur in 2020• Near term tool sales will be for system level

technology upgrade programs

Until new media capacity is required, Intevac’s HDD business will be driven by technology upgrades• Next-generation media is and will be made

using more complex structures that require more processing stations

• Intevac works closely with customers to provide technology enabling process solutions

0

50

100

150

200

250

300

350

400

450

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

Based on 100M Average Unit / Qtr HDD Market

Current 221

Capacity ~265

PROPRIETARY B Riley May 2018 Investor Presentation_10

MATRIX ENERGi®

Update on Solar Activity

Market Drivers: 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

Progress to Date: Two Tier-1 Customers PVD Process Tool of Record for N-Type Cells Implant Tool Signed Off for Revenue Q2’17

Near-Term Opportunity: Minimal N-Type Capacity Build-Out Planned

Currently; Opportunities Reside in Existing Factory Retrofits

Solution: Low-Cost, Small-Footprint Implant for Solar PV

Customer in China: Plans to Build Out 1 GW of Capacity Through 2019 2 Pilot Tools Signed Off 1H 2017 Order for 12 Tools Booked Q2 2017 First 3 Tools Shipped Q3 2017

Near-Term Opportunity: Significant Delay in Factory Completion Expect First 3 Tools to Begin Install in Q2 Expect 3 Additional Tools to Ship In 2018 Remaining Six Tools Expected to Ship 1H 2019

PROPRIETARY B Riley May 2018 Investor Presentation_11

Market Drivers:• Need for Greater I/O per Square Area

- System-in-Package Replacing System-on-Chip• Mobile, Automotive, IoT, Followed by 5G• Cost-Down Move to Panel-Level Processing

MATRIX Advantages: • Outstanding Performance at Low CoO

- High-Throughput- Uniformity and Yield- Film Properties and Control

• Reduces Cost of RDL Seed Layer by 2/3• Solution for both Wafer-Level and Panel-

Level Packaging Applications

Progress to Date: • Engaged with Tier-1 OSATs• Development Work on Process Modules

Substantially Completed in 2017• Ongoing Wafer-Level and Panel-Level

Demonstrations and Evaluations• MATRIX Launch at Industry Conferences (IWLPC)

October 2017

Emerging MATRIX Application: Advanced Packaging

MATRIX Addresses RDL and UBM

Emerging Panel-Level Packaging Market Intensifies CoO Drivers

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

2017 2018 2019 2020 2021

Annual Wafers Annual Wafer Passes for Fan-Out and UBM PVD

Fan-Out PVD Passes UBM PVD Passes

Source –TechSearch International, Yole Developpement, and Company estimates

PROPRIETARY B Riley May 2018 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

• On Roadmap for ENVG-3 Digital Follow-on Program

• Increasing Content for Family of Weapon Sites Wireless HMDs

• HMDs for F-35 and Striker II• Enhanced Visual Acuity

(EVA) Initiative• DELTA-I Coalition Warfare

Fused Digital Goggle Apache Camera

LIVAR SWIR Camera

HMDs – head-mounted displaysLIVAR – laser illuminated viewing and rangingSWIR – short wave infra redUAV – unmanned aerial vehicle

PROPRIETARY B Riley May 2018 Investor Presentation_13

Advantages of Intevac’s Proprietary Digital Night Vision

Intevac’s Digital Night Vision Technology Enables:

- High-Definition Night Imagery- Complete Augmented Reality Capability

- Information Overlay - Image Enhancement and

Transmission- Fused Infrared and Low Light Imagery- Low-Halo Operation

Fused Night Vision and IR

Warfighter View, Image Enhancement, and

Transmission

Augmented Reality Overlay

Analog Point Source “Halo”

High-Definition Night Vision

PROPRIETARY B Riley May 2018 Investor Presentation_14

Digital Night Vision Cameras• Contract Award and Development Program in Place for Next-Generation Sensor ISIE-19• Pilotage Cameras Deployed and in Service for US Apache Fleet (ISIE-11)• Discussion Underway for Next Generation 3 Camera Pilotage Camera System for Apache

- Stitched cameras replace single camera on rotating turret (ISIE-19)

Integrated Night Vision• Joint Strike Fighter in LRIP Production (ISIE-11); rate temporarily reduced• Additional Funded Development for BAE Striker II Helmet (ISIE-11) in Process• Delta I Coalition Warfare Program Industry Survey Day Held

- Award Expected in Q3’18- 16 Fused Night Vision Goggle Deliverables for Field Evaluations (ISIE-11 >> ISIE-19)- 4 Nations and 6 Entities Funding Program

Soldier Night Vision and Head Mounted Displays• Contract Award and Development Program in Place for Next-Generation Sensor ISIE-19• In Final Stage of Development for Family of Weapon Sights – Crew Served and M2 Weapon

Sight Programs- Wireless Head-Mounted Display Prototypes Began Shipping in Q4 2017- See-Thru Free-Form Prism Manufacturability effort complete

Progress: Photonics Products and Programs

PROPRIETARY B Riley May 2018 Investor Presentation_15

Major Programs, Significant Revenue Opportunity

Program Opportunity Pipeline $275M+

Current Production,

$140 Upgrades, $97

Pursuits, $39

Program Opportunity Pipeline $630M+

Current Production,

$218

Upgrades, $147

Pursuits, $273

Program Opportunity Pipeline $530M+

Current Production,

$57

Pursuits, $477

Joint Strike Fighter

Eurofighter

Apache Helicopter

LIVAR

F-35 HMD

Digital Night Vision Cameras Soldier Night Vision + HMDsIntegrated Night Vision

F-16 Falcon BAE STRIKER II HMD

NV Monocular Wireless HMD

Family of Weapon Sights

PROPRIETARY B Riley May 2018 Investor Presentation_16

In Summary:Two Businesses with Billion $ Revenue Opportunities

~$1B Revenue Opportunity for Equipment $1.4B+ Revenue Opportunity for Photonics

Display Cover Panel

$500M+

MATRIX for Adv. Packaging

and Solar

$250M+

HDD Media

$200-300M

5-Year Available Revenue Opportunity

Night Vision Cameras

$275M+

Integrated Night Vision

$630M+

Soldier Night Vision + HMDs

$530M+

Revenue Opportunity Pipeline for Current Programs & Pursuits

PROPRIETARY B Riley May 2018 Investor Presentation_17

Pause in 2018 After 3 Years of Growth

Three Straight Years of Revenue Growth and Improved Operating Results 2015-2017

2018 Will be a Pause in Growth Trajectory• Guidance of 10-12% YoY

Revenue Decline*• Expect Profitable 2H• Focus on Managing Cash

above $40M Level

Solid Balance Sheet• $41M Cash, Restricted Cash &

Investments at March 31, 2018• $77M Tangible Book Value• No Debt

* 2018 Guidance provided as of April 30, 2018.

14%

16%

18%

20%

22%

24%

26%

28%

30%

32%

34%

36%

38%

40%

42%

$(20)

$(10)

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

$110

$120

2014 2015 2016 2017G

ross

Mar

gin

%

$M

Revenues Non-GAAP OpEx Operating Income (Loss) GM%

PROPRIETARY B Riley May 2018 Investor Presentation_18

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

• Technology and Market Share Leader in HDD Media Equipment

• Multiple VERTEX Customers • in Evaluations for Display Cover

Panel Films• Substrate-Independent MATRIX

Platform Offers Incremental Growth Potential

• Strong Balance Sheet• 2018 Pause in Growth Trajectory

• Long Term Growth Strategy Intact

• Major Programs with Apache and JSF• Developing Next-Generation Sensor ISIE-19• DELTA-I Funding In Progress

• Fused Goggle Development• FWS-CS, Prototype Wireless

HMD, w/ IVAC See Through Prism, Began Shipping

PROPRIETARY B Riley May 2018 Investor Presentation_19PROPRIETARY © 2018 INTEVAC, INC.