BMO Capital Markets provides marketing services to EXFO, a telecommunications testing company. EXFO tests physical and protocol layers of networks and sees higher growth in protocol testing. EXFO aims to increase its wireless presence, help operators reduce costs, expand with top operators, and accelerate profitability through execution. EXFO has a strong value proposition as the #2 supplier in portable telecom testing with a track record of sales growth, positioning in key growth areas, focus on balancing growth and profits, a solid cash position, and experienced management.

1. Marketing with BMO Capital Markets
Germain Lamonde
Chairman, President & CEO
October 11, 2012
© 2012 EXFO Inc. All rights reserved. 1

2. Forward-Looking Statements
Certain statements in this presentation, or given in response to your questions, may constitute
forward-looking statements within the meaning of the Securities Act of 1934. The Private
Securities Litigation Reform Act of 1995 provides “safe-harbors” for such forward-looking
statements and we intend that any forward-looking statements made today be subject to the
safe harbors. We caution you that any forward-looking statements are just predictions. They
are not guarantees of future performance and involve risks and uncertainties. Actual results
may differ materially from those projected in forward-looking statements and we invite you to
review the company’s most recent filings with the Securities and Exchange Commission or
Canadian securities commissions for a discussion of the factors at risk. These forward-looking
statements speak only as of the date of this presentation and, unless required by law or
applicable regulations, we will not be reviewing or updating the material that is contained
herein.
Annual financial data in this presentation is prepared in accordance with international financial
reporting standards (IFRS) and Canadian generally accepted accounting principles (GAAP).
Quarterly financial data is prepared in accordance with IFRS standards. For a reconciliation of
EBITDA and adjusted EBITDA to net earnings (loss), refer to the Q4 2012 press release or
“Non-GAAP Financial Measures” section on EXFO’s website.
© 2012 EXFO Inc. All rights reserved.
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3. EXFO at a Glance
Who We Are What We’ve Done Where We’re Going
› No.2 supplier in portable › Gained market share year-in › Increase wireless presence
telecom testing and innovation and year-out for past 27 years
› Enable network operators to
leader in IP service assurance
› Ten-year sales CAGR of 20.5% reduce operating expenses
› Helping network operators and
› Difficult market in FY 2012 › Expand share of wallet with
equipment manufacturers
› EXFO sales: -7% YoY Tier-1 operators
design, deploy and monitor IP
fixed and mobile networks › End-markets: Double-digit › Accelerate profitability through
decreases execution
© 2012 EXFO Inc. All rights reserved. 3

4. World-Class Organization
› No. 1 in portable optical testing
› No. 2 in portable telecom testing
› 2000 customers in >100 countries
› 1700 employees in >25 countries
© 2012 EXFO Inc. All rights reserved. 4

5. Bandwidth Demand
Global IP traffic
Up 4X from 2011-2016
Mobile IP traffic
Up 18X (Cisco)
Despite strong fundamental drivers, pause in carrier spending
© 2012 EXFO Inc. All rights reserved.
© 2012 EXFO Inc. All rights reserved. 5
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6. HD TV Internet
Convergence to
IP Networks
Telephony Mobile
Operator Focus: Increase network capacity and reduce OPEX
© 2012 EXFO Inc. All rights reserved. 6

7. Growth Strategy
Increase Wireless Enable Operators Expand Share of Accelerate
Presence to Reduce OPEX Wallet with Tier-1 Profitability via
Operators Execution
› Wireless sales to › Key productivity › Doing business with › Combining revenue
continue growing differentiators, focus ~80% of top-100 growth with a tight
(23-25% of sales in on FTB Ecosystem & operators worldwide control on expenses
FY 2012) EXFO Connect
Growing market share for 27 consecutive years
© 2012 EXFO Inc. All rights reserved. 7

8. RIDING THE
RIGHT WAVES
Market-Driven Innovation
› Wireless backhaul
› 4G/LTE, 3G
› FTTH, VDSL2
› 40G/100G upgrades
Focus on Execution
› Unmatched customer
experience
Innovation and execution enable market-share gains
© 2012 EXFO Inc. All rights reserved. 8

9. Revenue Mix/Gross Margin Evolution
FY 2012 Gross Margin
FY 2006
11% 70.0%
65.0%
60.0%
45%
55%
55.0%
89% 50.0%
In % of sales
45.0%
Sales: $107.4 M Sales: $250.0 M 40.0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Protocol Other
Moving toward higher-margin, Protocol-layer sales
© 2012 EXFO Inc. All rights reserved. 9

10. Telecom Market
PROTOCOL
PHYSICAL
TAM $700 M $3.2 B
SAM $550 M $1.8 B
Annual growth rate ~5% ~15%
Sales ― FY 2012 $135.1 M $113.7 M
Sales growth ― FY ’12/’11 -14.5% 4.4%
Five-year sales CAGR 3.9% 46.1%
Gross margin profile Low-60s (%) Mid-70s (%)
Major competitors JDSU, Anritsu, Sunrise JDSU, IXIA, Tektronix
Telecom sales CAGR of 20.5% in last 10 years
© 2012 EXFO Inc. All rights reserved. 10

11. FTB Ecosystem + EXFO Connect + EXFO Apps Store
EXFO Apps Store ›
›
Test Equipment Manager
Test Data Manager
Contains: S/W releases & updates, › GPS/Route Optimization
new applications, training material,
› Work Ticket Management
productivity tools, etc
› License sharing or rental
› Training Management
› Etc (from EXFO or 3rd parties)
FTB Ecosystem Download applications and
(20+ optical, transport, datacom configurations onto platform Automatically
and copper acces test modules)
close job ticket › Notification
Corporate › Billing
OSS › Signature
Search and
Pass › Next work
request custom
results order
configuration
› Etc.
Automatically upload
test results REDUCES Op/Ex for
Load configuration and
immediately start testing
Operators & NEMs
› Established base of ~40,000 compliant platforms
© 2012 EXFO Inc. All rights reserved. 11

12. Financial Snapshot
$300
Revenue
70.0%
• $250 M (-7% YoY)
• Gained market share
$250 60.0%
• FY’13: 6-10% growth
(estimate)
20.5% Sales CAGR
50.0%
$200
over last 10 Years
40.0%
Gross Margin
$150 30.0% • Improved to 63.3%
• Up 9X out of 10 years
• FY’13-15: Trending up
20.0%
$100
10.0%
$50
0.0%
In US$ Millions
36% 34% 21% 24% -5% 32% 33% -7%
-10.0%
2004 2005 2006 2007 2008 2009 2010 2011 2012
Revenue Gross Margin Adjusted EBITDA Margin
© 2012 EXFO Inc. All rights reserved. 12

13. Annual Financial Results1
(in US$ millions, except gross margin)
Sales Net R&D Expenses Net Earnings/Loss2
Gross Margin SG&A Expenses Adjusted EBITDA3
1 All financial results from continuing operations, except net earnings/loss and adjusted EBITDA.
2 Fiscal 2011 and 2012 financial results according to IFRS; prior years according to Canadian GAAP.
3 EBITDA is defined as net earnings (loss) before interest, income taxes, depreciation of property, plant and equipment, amortization of intangible assets, impairment of goodwill and extraordinary gain.
Adjusted EBITDA represents EBITDA excluding the change in the fair value of the cash contingent consideration and the gain from the disposal of discontinued operations.
© 2010 EXFO Inc. All rights reserved.
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14. Financial Highlights
Q4 2012 FY 2012
› Sales: $57.2 M › Sales: $250.0 M (-7% YoY)
› Bookings: $55.2 M › Bookings: $244.8 M
(book-to-bill ratio of 0.97) (book-to-bill ratio of 0.98)
› Gross margin*: 62.8% › Gross margin*: 63.3%
› IFRS net loss: $3.7 M › IFRS net loss: $3.6 M
› Restructuring plan: Annual › Cash flows from
savings of $9 million operations: $25.3 M
*Gross margin is a non-IFRS financial measure and represents sales less cost of sales, excluding depreciation and amortization.
© 2012 EXFO Inc. All rights reserved.
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15. Strong Value Proposition
1. Excellent track record of sales growth
Sales CAGR of 20.5% in last 10 years
2. Well-positioned for key growth drivers
Bandwidth expansion and IP network convergence
3. Balancing sales growth and profitability
Targeting EBITDA* margin of 15% on revenue of $350 to $400 M
4. Solid balance sheet
Cash position of $67.1 M and negligible debt ― as at August 31, 2012
5. Experienced and disciplined management team
Deep knowledge of managing business in growth and downward markets
* EBITDA is defined as net earnings before interest, income taxes, depreciation of property, plant and equipment, and amortization of intangible assets.
© 2012 EXFO Inc. All rights reserved.
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