PROPRIETARY Q3 2016 Investor Presentation_1 PROPRIETARY

Intevac Investor Presentation

Q3 2016 Update

POWERING INNOVATION. DELIVERING VALUE.

Wendell T. Blonigan Chief Executive Officer

James P. Moniz Chief Financial Officer

PROPRIETARY Q3 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 Q3 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

$1B Revenue Opportunity $1B Revenue Opportunity Over Next 5 Years Revenue Opportunity Pipeline for Current Programs & Pursuits

PROPRIETARY Q3 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 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 • Process Tool of Record for

Advanced Solar Cell Architectures

• Multi-Layer Optical Coatings

PROPRIETARY Q3 2016 Investor Presentation_5

Optical-Grade DLC

Mobile Device Scratch Protection

VERTEX 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

# pa

sses

to sc

ratc

h

0102030405060708090

AS Glass AS Glass + AFS AS Glass + oDLC

Scratch Protection

Rela

tive

pric

e

PROPRIETARY Q3 2016 Investor Presentation_6

Display Cover Panel: Market Opportunity

Progress System in Production at Truly

Opto; Capacity Order for 3 Additional Systems Booked Q2’16 Under Evaluation with Multiple

Top-Tier Phone Manufacturers • Broad Engagement with Tier 1

Cover Glass Manufacturers • 100s of Samples Processed at

In-House Coating Operation

Opportunity • 510 VERTEX Tools Required to

Coat All Glass in 2020 • 25% Adoption Rate = $500M

Revenue Opportunity Through 2020

Thou

sand

s 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 Q3 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

Cel

l Effi

cien

cy %

15%

25%

20%

2017

Advanced Metallization and Doping of High-Efficiency N-type Solar Cells

MATRIX PVD Advantage Best-in-Class Target Utilization Lowest CoO Copper Interconnects Backside Reflectors

MATRIX Implant Advantage Boron Doping Simplification Selective and Patterned Doping Process Step Reduction Reduction in Capex

PROPRIETARY Q3 2016 Investor Presentation_8

Solar Market Opportunity

Progress • MATRIX PVD

- Order in Backlog with Tier 1 Customer - Process Tool of Record for N-type Cells

• MATRIX Implant - Order in Backlog with Tier 1 Customer - Investigating Adjacent Applications

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

Opportunity • N-type Cell Installations up 2.5x

- 5GW of New Capacity by 2020 • 65 MATRIX PVD & Implant Tools Required

to Support Incremental 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 Q3 2016 Investor Presentation_9

1.0

1.2

1.4

1.6

1.8

2.0

2.2

Actual Actual Actual Actual Actual Actual Actual Forecast

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

Tie Ratio (Average # of Disks per Drive)

-

200

400

600

800

1,000

1,200

1,400

2014 2015 2016 2017 2018 2019 2020

Exab

ytes

Exabytes Shipped on HDDs

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

4-System 200 Lean Order Announced Q2’16 Supports Technology Roadmap

Source – TrendFocus Feb. and May 2016

PROPRIETARY Q3 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

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 Feb 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 Unit / Qtr HDD Market

Current 225

Capacity 300

PROPRIETARY Q3 2016 Investor Presentation_11

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 Volume Production

• LIVAR Long-Range Viewing • Airborne/UAV Camera in Development

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

• 15-Year Tech Roadmap Established

• HMDs for F35 and Striker II • Digital Aviation Goggle in

Development

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 Q3 2016 Investor Presentation_12

Photonics Application: Night Vision Cameras

LIVAR – Airborne Target ID Camera

Apache Helicopter Night Vision Camera

• Rotary Pilotage Programs • US Army’s Apache Program • Transitioned to Foreign Military Sales

• Target ID and Ranging

• LIVAR - Longest Range Targeting and Ranging

Capability – up to 20KM • Northrup Grumman LITENING Pod

Intevac’s Digital Night Vision Technology Enables:

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

PROPRIETARY Q3 2016 Investor Presentation_13

Photonics Opportunity: Night Vision Cameras

• Progress • 500+ Apache Cameras Sold • 780+ LIVAR Cameras Sold • “Digital Night Vision Gold Standard”

- ISIE-11 • High Resolution Camera in Evaluation

- ISIE-4000

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

- Apache Co-Pilot / Gunner - Next-Gen (ISIE-12) for Apache Upgrade - Next-Gen SWIR for LIVAR Upgrade - Navy Enhanced Visual Acuity Program - Drone / UAV Opportunities

Program Opportunity Pipeline $250M+

Current Production,

$126 Upgrades, $84

Pursuits, $40

F-16 Falcon

Apache Helicopter

PROPRIETARY Q3 2016 Investor Presentation_14

Photonics Opportunity: Integrated Night Vision

Progress • Sole-Source for F-35 JSF (12,000 Sockets) • 500 Gen 1s (ISIE-10) Fielded • >2000 Gen 2s (ISIE-11) Contracted • In Qualification for BAE’s Typhoon • High-Resolution Goggle Prototypes Shipped Q1

Opportunity • F-35 to Full Rate Production

- ~2700 baseline aircraft • New

- Next-Gen Camera (ISIE-12) for F-35 Upgrade - BAE Opening Opportunities in Europe

‣ Also Marketing to Aircraft beyond Typhoon - US Navy Program for Enhanced Visual Acuity - 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

JSF HMDS

BAE STRIKER II

High-Resolution Digital Night

Vision Goggle

PROPRIETARY Q3 2016 Investor Presentation_15

Photonics Application: Ground Forces

• Enhanced Night Vision Goggle (ENVG4) (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:

Enhanced Night Vision Goggle: - 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 Q3 2016 Investor Presentation_16

Photonics Opportunity: Ground Forces

• Progress • $25 Million Funding Vehicle in Place for Next-

Gen Sensor Development • Ground Forces

• Wireless Monocular Goggle Demonstrator Delivered Q2’16

• Family of Weapons Sights • Prototypes Qualified • Selected by Majority of Primes • USG Requirements for Wireless HMD Built

Around Intevac Demonstrator

• Opportunity • Over 100K Digital Night Vision Monoculars

to be Fielded for US Army Soldiers • Family of Weapons Sights Applications

Program Opportunity Pipeline $400M+ Current

Production, $17

Pursuits, $388

Image Enhancement Data Overlay

Analog Point Source “Halo”

Intevac Digital “Low Halo”

PROPRIETARY Q3 2016 Investor Presentation_17

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 Q3 2016 Investor Presentation_18

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 Q3 2016 Investor Presentation_19

Improving Financial Performance

2015 Exceeded Expectations Entering the Year • Revenues Up 15% Over 2014 • Increased Full-Year Guidance

Each Quarter in 2015 • Improved GM and Reduced Opex

2016 Guidance • Revenue Growth of Up to 10%

from 2015 • 35-36% Gross Margin • $37.5-38.5M Operating Expenses

Equipment Backlog at Highest Level Since Q2’10

Positioned for Cash Flow Positive Operations in 2016 • Majority of System Backlog Will Be

Converted to Cash During 2016

-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 2015G

ross

Mar

gin

%

$M

Revenues Non-GAAP OpEx Operating Loss GM%

PROPRIETARY Q3 2016 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

Maintaining Strong Balance Sheet Strategically Deploying Capital

Returning Capital to Shareholders through $30M Stock Repurchase Program • $28.5M Purchased as of Year-End 2015

Only $6M Use of Cash and Investments 2014-2015, Net of Stock Repurchases

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

2013 2014 2015

$ in

Mill

ions

Cumulative Cash Utilized for Stock Repurchases

Balance of Cash and Investments at Qtr/Year End

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$-

$10

$20

$30

$40

$50

$60

$70

At July 2, 2016$

per S

hare

$ in

Mill

ions

Tangible Book Value Cash and Investments

TBV/Share Cash/Share

PROPRIETARY Q3 2016 Investor Presentation_21

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

• Tier 1 Customer in Production for VERTEX Display Cover Panel

• MATRIX PVD Process Tool of Record for Advanced Solar Cells

• Technology and Market Share Leader in HDD

• Strong Balance Sheet • Improving Financial Performance • Positioned for Revenue Growth and Cash Flow

Positive Operations in 2016

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

Generation Sensor Development

• Current Programs ~$500M; Ground Force Applications Grow Revenue Opportunity to ~$1B

PROPRIETARY Q3 2016 Investor Presentation_22

PROPRIETARY © 2016 INTEVAC, INC.