This document discusses EXFO's position in the network test, monitoring and analytics market. It highlights that EXFO is the number one provider of portable optical test equipment and has the largest active service assurance deployment worldwide. The document summarizes EXFO's financial results, growth drivers in the industry around 100G, network virtualization and 5G/IoT, and EXFO's positioning to benefit from these trends through its product portfolio and recent acquisitions. Finally, it outlines reasons for investing in EXFO including its positioning for key growth drivers, target of growing earnings faster than sales, strong leadership team, and healthy balance sheet with no debt.

1. June 1, 2017
Philippe Morin
Chief Executive Officer
Cowen & Co. TMT Conference
At EXFO, we make networks smarter

2. © 2017 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 net earnings, refer to the Q2 2017
press release or the “Non-IFRS Measures” section on EXFO’s website.
All amounts in millions of US dollars, except otherwise noted.

3. © 2017 EXFO Inc. All rights reserved. 3
No.1
in portable optical
test equipment market
Largest
active service assurance
deployment worldwide
1500+
employees in
25 countries
The
network
test,
monitoring
and
analytics
experts.

4. EXFO by numbers
© 2017 EXFO Inc. All rights reserved. 4
* Adjusted EBITDA represents net earnings before interest, income taxes, depreciation and amortization, stock-based compensation costs and foreign exchange gain.
$22.0M
Adjusted EBITDA*
growth of 60%
$24.4M
Cash flows
from operations
$232.6M
Revenue
increase of 5%
in FY 2016

5. © 2017 EXFO Inc. All rights reserved. 5
Test
instruments
Built-in intelligence,
automation and
ease-of-use across
entire optical,
transport and
copper test portfolio

6. Monitoring
and
analytics
Deep visibility of
real-time services like
VoLTE, VoWiFi and
OTT video on hybrid
and virtual networks
© 2017 EXFO Inc. All rights reserved. 6

7. Growth drivers
© 2017 EXFO Inc. All rights reserved. 7
100G 5G/loT
Network
virtualization

8. © 2017 EXFO Inc. All rights reserved. 8
Customer investments
Communications service providers (CSPs) deploying fiber
everywhere and upgrading transmission rates to 100G to
handle ongoing bandwidth explosion
Web-scale operators building data centers in large cities
and interconnecting them with fiber to improve service
quality
EXFO positioning
Market leadership in portable optical testing and shared
lead
in high-speed Ethernet testing
100G

9. © 2017 EXFO Inc. All rights reserved. 9
Network
virtualization
Customer investments
CSPs virtualizing network functions to accelerate
introduction of new services and reduce operating costs
EXFO positioning
Technology leadership in active monitoring and real-time
analytics, combined with automated network topology
discovery, for virtual and hybrid networks

10. © 2017 EXFO Inc. All rights reserved. 10
5G/loT
Customer investments
CSPs rolling out fiber and small cells to prepare for
stringent capacity, latency and reliability requirements of
next-generation networks
EXFO positioning
Lab-to-field testing and real-time monitoring/analytics
supported by 30+ years of telecom expertise

11. Full coverage of network lifecycle
© 2017 EXFO Inc. All rights reserved. 11
Operations.
High-growth opportunity
Labs.
Early insights into
CSP plans
Field.
Core competency

12. Game-changers
© 2017 EXFO Inc. All rights reserved. 12
Real-time 3D analytics
Real-time visibility of all three dimensions:
network, service and subscriber.
Test automation
Automated test routines to improve network
reliability and efficiency. Data mined in the cloud.
Network
Subscriber
Service

13. Partner program
Standardize program across all geographies
© 2017 EXFO Inc. All rights reserved. 13
Key account management
Strengthen focus on top 20 CSPs
Branding
Expand reach into monitoring and analytics
Go-to-market

14. © 2017 EXFO Inc. All rights reserved. 14
EXFO
markets
* Excludes losses on FX contracts
TAM $845M $4.2B $5.0B
SAM $545M $2.2B $2.7B
EXFO sales―FY 2016 $151.9M $83.3M $235.2M*
Growth rate―FY 2016 5.4% 3.4% 4.7%
Gross margin profile 55-60% 70-75% 63-65%
Major competitors Viavi, Anritsu Viavi, NetScout
PROTOCOL
(T&D, SA, analytics, wireless)
PHYSICAL
(Optical and copper)
TOTAL

15. © 2017 EXFO Inc. All rights reserved. 15
Financial target
* Adjusted EBITDA represents net earnings before interest, income taxes, depreciation
and amortization, stock-based compensation costs and foreign exchange gain or loss.
FY 2017
$26M
in adjusted EBITDA*
+18% YoY
FY 2016
$20M
+40% YoY
$22M
+60% YoY
Target
Result

16. Revenue
$60.0M
+12.0% YoY
© 2017 EXFO Inc. All rights reserved. 16
Bookings
$55.9M
IFRS net
earnings
$1.0M
Adjusted
EBITDA*
$4.9M
* Adjusted EBITDA represents net earnings before interest, income taxes, depreciation
and amortization, stock-based compensation costs and foreign exchange loss.
Double-digit revenue growth
for third consecutive quarter
Q2 2017 financial results

17. © 2017 EXFO Inc. All rights reserved. 17
Absolute Analysis
asset acquisition
– Technology leader in optical RF testing
of fiber-based radio access networks (RANs)
– Acquired technology, expertise and solutions
– Software integrated into EXFO’s
hardware/software solution
– Cash-and-stock deal: $5M in cash and
$3.5M in stock
FTB-1 Pro: Only all-in-one
Optical, Ethernet and RF
test solution on the market

18. © 2017 EXFO Inc. All rights reserved. 18
Acquisition of
Ontology
Systems
– UK technology firm specializing in
network topology discovery and
service-chain mapping of virtual
and hybrid environments
– Uses graph-data and semantic
searches to deliver real-time views
of network services and related
network elements
– Strengthens EXFO’s offering for
end-to-end monitoring and
real-time analytics
– All-cash deal for a consideration of
US$7.6M, net of cash, plus
earnout based on future sales

19. © 2017 EXFO Inc. All rights reserved. 19
Why invest?
2.Growing earnings
faster than sales
– Targeting at least 18%
adjusted EBITDA*
growth in FY 2017
– Delivered $22.0M in
adjusted EBITDA in
FY 2016 (up 60% YoY)
3.Healthy
balance sheet
– Cash position of $52.4M
– No debt
4.Strong leadership
team
– Stable and experienced
– Deep telecom knowledge
– One-two tandem of
Executive Chairman
Germain Lamonde and
CEO Philippe Morin
1.Well positioned
for growth drivers
– 100G optical cycle
– Network virtualization
– 5G and IoT
* Adjusted EBITDA represents net earnings before interest, income taxes, depreciation and
amortization, stock-based compensation costs and foreign exchange gain or loss.