Marketing Day with BMO Capital Markets Philippe Morin Chief Executive Officer January 2020

1. Philippe Morin
Chief Executive Officer
January 8, 2020
Marketing Day with BMO Capital Markets

2. © 2020 EXFO Inc. All rights reserved. 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.
For a reconciliation of adjusted EBITDA to IFRS net loss, refer to the Q1 2020
news release and 2019 Annual Review on EXFO’s website.
All amounts in millions of US dollars, except otherwise noted.

3. © 2020 EXFO Inc. All rights reserved. 3
The test,
monitoring
& analytics
experts.
No.1in optical test
equipment market
Top 5in communications
monitoring market
1,900employees in
25+ countries

4. FY 2019 results1
$297.8M
Bookings grew
11.2% YoY
1Astellia contributed a full year to EXFO’s financial results in fiscal 2019 compared to seven months in 2018.
-$2.5M
IFRS net loss
reduced 79.8% YoY
$286.9M
Revenue increased
6.4% YoY
$17.2M
Cash flows from
operations improved
20.0% YoY
© 2020 EXFO Inc. All rights reserved. 4

5. © 2020 EXFO Inc. All rights reserved. 5
Profitability target
Adjusted EBITDA1
Result: $25.6M
1Adjusted EBITDA is a non-IFRS measure and represents net loss before interest and other expense, income taxes, depreciation and amortization, stock-
based compensation costs, restructuring charges, acquisition-related deferred revenue fair value adjustment, and foreign exchange loss.
2This adjusted EBITDA target is a forward-looking statement and is based on the newly adopted IFRS 16 accounting standard which adds ~$4 million to
adjusted EBITDA in fiscal 2020. In addition, as it excludes items that pertain to future events that are not currently estimable with a reasonable degree of
accuracy, such as foreign exchange gain or loss and income taxes, no corresponding IFRS measure has been provided.
Goal: $24M
Adjusted EBITDA2
$33M
FY 2019 FY 2020

6. © 2020 EXFO Inc. All rights reserved. 6
Revenue
$73.6M
+6.3% YoY
Bookings
$69.9M
IFRS
net loss
$0.1M
Adjusted
EBITDA*
$7.5M
Adjusted EBITDA margin of 10.3%
Q1 2020 results
*Adjusted EBITDA is a non-IFRS measure and represents net loss before interest and other expense, income taxes,
depreciation and amortization, stock-based compensation costs and foreign exchange loss.

7. Customer
pain point #1
Business
model
under
pressure
Revenue
growth flat
Bandwidth
demand
soaring
Need to
reduce costs
(OPEX/CAPEX)

8. Customer
pain point #2
Unseen level
of complexity
Major paradigm
shift with 5G
Virtualization
increases
complexity
Little visibility
into subscriber
experience

9. CSPs
losing
visibility1
65%46% 3%
Increase in “critical”
network outages since
rollout of NFV in 2016
Percentage of
network outages in
virtualized domains
Percentage of subscriber-
impacting events that
are detected
1 Source: Heavy Reading and EXFO, July 2019.

10. Industry transformations
Fiber
buildouts
Closer to network edge
5G
deployments
Multiple use cases
Inside/between data centers
Connecting small cells
Enabled by network slicing
Stringent requirements

11. Smarter insights
across entire network lifecycle
LAB TO LIVE
PIC testing
Passive component testing
Transceiver manufacturing
400G & beyond
Load testing & simulation
(EPC, IMS, 5G, IoT)
FIELD TEST
AUTOMATION
Broadband access
FTTH/PON
Residential services
Data centers
Small cell rolloutWIRELESS CORE
TO SUBSCRIBERS
Backhaul & fronthaul
RF interference
RAN optimization
Service & infrastructure
PHYSICAL
TO VIRTUAL
End-to-end
Layer 0 to 7
Fiber monitoring
RAN & RF monitoring
NFV service
assurance
Dynamic topology
AUTOMATED
REAL-TIME INSIGHTS
Closed-loop automation
Network, service &
subscriber analytics
Advanced use cases
CEM
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12. © 2020 EXFO Inc. All rights reserved. 12
Test and
measurement
Built-in intelligence,
automation and
ease-of-use across
entire optical,
transport and
copper test portfolio.

13. SA, systems
and services
Offering end-to-end
network performance,
service reliability and
subscriber insights for
fixed and mobile
networks.
© 2020 EXFO Inc. All rights reserved. 13

14. EXFO’s playground
1 Based on EXFO’s estimates.
2 Reported bookings for FY 2019.
3 Excludes losses on FX contracts.
4 Benefited from full-year contribution from Astellia in 2019 vs. seven months in 2018.
Market1
$2.9B
Bookings2
$298M
T&M SASS
Market size $900M $2.0B
Market growth 3-5% 13-15%
Growth drivers
FTTx, 100/400G,
small cells
5G, NFV/SDN,
IoT
EXFO bookings
—2019
$210.1M3 $88.3M3
EXFO bookings
growth—2019
8% 21%4
Key competitors Anritsu, Viavi Netscout, Viavi
© 2020 EXFO Inc. All rights reserved. 14

15. Growing T&M
market share
Multiple orders
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Expanded presence at tier-1 NEM
Installing & troubleshooting core and
metro networks—field services team
– Complete test solution with high-speed Ethernet,
OSA, OTDR and fiber inspection probe
– 100G-ready portfolio with floating licenses
– Trusted advisor for methods of procedure (MoP)
– Generated >$5M in orders at NEM in FY 2019
(directly and via channel partner)

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Early 5G monitoring deal
Challenge: Leading mobile operator in EMEA
required customer-centric approach to deploy
5G services
Solution: Nova platform, enriched analytics,
and professional services team provided …
1) Area prioritization
2) Customer targeting
3) Adoption insights
4) Issue identification and resolution
Result: Successful 5G launch
Building scale
Multi-year, multi-
million-dollar order

17. Disciplined
capital
allocation No major acquisitions
for the short-term
Leverage normal course
issuer bid (NCIB)
Replenish balance sheetInvest in organic growth

18. 2. Strong innovation
engine
– History of launching
disruptive solutions
(Optical Explorer, iOLM,
EtherSAM, etc.) that
provide a first-mover
advantage
3. Robust cash flows
– Generated $17.2M in cash
flows from operations in
FY 2019
4. Seasoned
management team
– Mix of new managers
with fresh ideas and
experienced executives
– Deep telecom knowledge
– Focused on profitable
growth
1. Well positioned
for growth drivers
– Fiber buildouts
– 5G deployments
Why invest?
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$

19. Q&A
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