Marketing with NB Financial

Germain LamondeChairman, President & CEOJanuary 10, 2013

2© 2013 EXFO Inc. All rights reserved..

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 Q1 2013 press release or

“Non-IFRS Financial Measures” section on EXFO’s website.

Forward-Looking Statements

3© 2013 EXFO Inc. All rights reserved.

EXFO at a Glance

Who We Are› No.2 supplier in portable

telecom testing and innovation leader in IP service assurance

› Helping network operators and equipment manufacturers design, deploy and monitor IP fixed and mobile networks

What We’ve Done› Gained market share year-in

and year-out for past 27 years

› Ten-year sales CAGR of 20%

› Difficult market in FY 2012

› EXFO sales: -7% YoY

› End-markets: Double-digit decreases

Where We’re Going› Increase wireless presence

› Enable network operators to reduce operating expenses

› Expand share of wallet with Tier-1 operators

› Accelerate profitability through execution

4© 2013 EXFO Inc. All rights reserved.. 4© 2013 EXFO Inc. All rights reserved..

Segmented Sales — FY 2012

› Protocol-layer sales increased 4.4% YoY

› Physical-layer sales decreased 14.5% YoY

BOTH PRODUCT GROUPS TO GROW IN FY 2013 IF END-MARKETS REMAIN STABLE

Americas

›FY 2012 Sales: $130.6 M›Growth YoY: -4.6%›Sales Split: 52%

EMEA

›FY 2012 Sales: $71.0 M›Growth YoY: -16.4%›Sales Split: 29%

Asia-Pacific

›FY 2012 Sales: $47.3 M›Growth YoY: +1.2%›Sales Split: 19%

5© 2013 EXFO Inc. All rights reserved. 5© 2013 EXFO Inc. All rights reserved.

Global IP trafficUp 4X from 2011-2016

Mobile IP traffic Up 18X (Cisco)

Bandwidth Demand

DESPITE STRONG FUNDAMENTAL DRIVERS, PAUSE IN CARRIER SPENDING

6© 2013 EXFO Inc. All rights reserved..

US Carrier CAPEX

4G/LTE AND COMPETITION TO DRIVE INVESTMENTS

2010 2011 2012E 2013E 2014E0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Capital Intensity

AT&T Verizon Sprint T-Mobile Average

12.7% 13.3%

14.6%15.6% 15.1%

Sou

rce:

Mor

gan

Sta

nley

7© 2013 EXFO Inc. All rights reserved..

Growth Strategy

Wireless sales to continue growing

(~24% of sales in FY 2012)

Increase WirelessPresence

Expand Share of Wallet with Tier-1

Operators

Doing business with ~80% of top-100 operators worldwide

Accelerate Profitability via

Execution

Combining revenue growth with a tight

control on expenses

Enable Operators to Reduce OPEX

Key productivity differentiators,

FTB Ecosystem and EXFO Connect

Growing market share for 27 consecutive years

8© 2013 EXFO Inc. All rights reserved..

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

9© 2013 EXFO Inc. All rights reserved..

Revenue Mix/Gross Margin Evolution

FY 2006 | FY 2012

Protocol Other

89%

11%

Sales: $250.0 MSales: $107.4 M

55%

45%

MOVING TOWARD HIGHER-MARGIN, PROTOCOL-LAYER SALES

Gross Margin

40%

50%

55%

60%

65%

70%

45%

In %

of s

ales

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

10© 2013 EXFO Inc. All rights reserved.

Telecom Market

TAM

SAM

Major competitors

Sales growth ― FY ’12/’11

Five-year sales CAGR

Annual growth rate

Sales ― FY 2012

Gross margin profile

$700 M

$550 M

JDSU, Anritsu, Sunrise

-14.5%

3.9%

~5%

$135.1 M

Low-60s (%)

$3.2 B

$1.8 B

JDSU, IXIA, Tektronix

4.4%

46.1%

~15%

$113.7 M

Mid-70s (%)

PH

YS

ICA

LPROTOCOL BUSINESS IS KEY GROWTH VECTOR

PR

OT

OC

OL

11© 2013 EXFO Inc. All rights reserved.

Telecom Market

TAM

SAM

Major competitors

Sales growth ― FY ’12/’11

Five-year sales CAGR

Annual growth rate

Sales ― FY 2012

Gross margin profile

$700 M

$550 M

JDSU, Anritsu, Sunrise

-14.5%

3.9%

~5%

$135.1 M

Low-60s (%)

$3.2 B

$1.8 B

JDSU, IXIA, Tektronix

4.4%

46.1%

~15%

$113.7 M

Mid-70s (%)

PH

YS

ICA

LPROTOCOL BUSINESS IS KEY GROWTH VECTOR

PR

OT

OC

OL

12© 2013 EXFO Inc. All rights reserved.

Physical-Layer Business

COPPER ACCESS

› New MaxTester series approved by three Tier-1 NA carriers

› Supports pair bonding & vectoring (100 Mb/s)

PORTABLE OPTICAL

› Market leader with >35% market share

› Market dominance in FTTH testing

13© 2013 EXFO Inc. All rights reserved.

Protocol-Layer Business

WIRELESS

• Protocol analyzers: 4G/LTE and 3G test solutions for deploying and troubleshooting applications

• Network simulators: Large-scale emulation of subscriber sessions to test routers, gateways and session border controllers

• Stratgic partnership with Artiiza Networks for eNode B wraparound testing (air interface to EPC)

TRANSPORT AND DATACOM

› Multi-service analyzers for SONET/SDH, OTN and Ethernet rates from 10M to 100G

› Pioneered new standard for Ethernet testing (EtherSam)

› Comprehensive portfolio for wireless backhaul

SERVICE ASSURANCE

› Probe-based systems targeted at medium to large network operators

› Primary focus on active testing to validate service-level agreements

› Monitoring multi-play services on a single platform is key differentiator

14© 2013 EXFO Inc. All rights reserved.

Protocol-Layer Business

WIRELESS

• Protocol analyzers: 4G/LTE and 3G test solutions for deploying and troubleshooting applications

• Network simulators: Large-scale emulation of subscriber sessions to test routers, gateways and session border controllers

• Stratgic partnership with Artiiza Networks for eNode B wraparound testing (air interface to EPC)

TRANSPORT AND DATACOM

› Multi-service analyzers for SONET/SDH, OTN and Ethernet rates from 10M to 100G

› Pioneered new standard for Ethernet testing (EtherSam)

› Comprehensive portfolio for wireless backhaul

SERVICE ASSURANCE

› Probe-based systems targeted at medium to large network operators

› Primary focus on active testing to validate service-level agreements

› Monitoring multi-play services on a single platform is key differentiator

15© 2013 EXFO Inc. All rights reserved.

Key Differentiator

PUTTING INTELLIGENCE INTO OUR PLATFORMS!

16© 2013 EXFO Inc. All rights reserved..

FTB Ecosystem

Asset management software› Test data pushed and stored in the Cloud› Units traced via GPS › Customized test reports

Applications that make life easier› Software releases and upgrades› Utilities for full operability› How-to videos

FTB-1, FTB-200 & FTB-500› ~40,000 smart platforms› Windows architecture› Multiple connectivity (3G, Wi-Fi, Bluetooth)

REDUCES CARRIER OPEX

17© 2013 EXFO Inc. All rights reserved..

FTB Ecosystem + EXFO Connect + EXFO Apps Store

› Test Equipment Manager› Test Data Manager› GPS/Route Optimization› Work Ticket Management› License sharing or rental› Training Management› Etc (from EXFO or 3rd parties)

Search and request custom configuration

Download applications and configurations onto platform

Load configuration and immediately start testing

Automatically upload test results

Pass results

› Notification› Billing› Signature› Next work

order› Etc.

Automatically close job ticket

FTB Ecosystem(20+ optical, transport, datacom and copper acces test modules)

Corporate OSS

EXFO Apps StoreContains: S/W releases & updates, new applications, training material,

productivity tools, etc

REDUCES Op/Ex for Operators & NEMs

› Established base of ~40,000 compliant platforms

18© 2013 EXFO Inc. All rights reserved..Revenue Adjusted EBITDA Margin

In U

S$ M

illion

s 0.0%

20.0%

50.0%

10.0%

30.0%

40.0%

70.0%

60.0%

-10.0%

$50

$100

$150

$200

$250

$300

Gross Margin

Sales CAGR of 20% over last 10 Years

Revenue

› $250 M (-7% YoY)› Gained market share› FY’13: 6-10% growth

(estimate)

Gross Margin

› Improved to 63.3%› Up 9X out of 10 years› FY’13-15: Trending up

Adjusted EBITDA Margin

› From 3.0% to 7.3%› Mid-term goal: 15%

Financial Snapshot

36% 34% 21% 24% -5% 32% 33% -7%

2004 2005 2006 2007 2008 2009 2010 2011 2012

19© 2013 EXFO Inc. All rights reserved.

Germain LamondeEXFO CEO

We plan on increasing our sales volume to better absorb the cost of

being a global player, thus leveraging

economies of scale.

20© 2013 EXFO Inc. All rights reserved..

Generates EBITDAMargin of 15%

WITHIN3-4 YEARS

Annual Run-Rateof $350-$400M

21© 2013 EXFO Inc. All rights reserved..

Annual Financial Results1

(in US$ millions, except gross margin)

Sales

Gross Margin

Net R&D 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.

Net Earnings/Loss2

SG&A Expenses

22© 2013 EXFO Inc. All rights reserved..

Q1 2013 Highlights

› Sales reached

› Bookings attained $XX.X M, (B/B ratio of 1.0X)

› Gross margin* improved to XX.X%

› Adjusted EBITDA** amounted to $X.X M (X.X% of sales)

› Signed partnership with Artiza Networks to offer the industry’s highest-capacity, end-to-end 4G/LTE simulation solution

› Announced contract wins at three tier-1 North American operators for MaxTester copper/DSL series

› Introduced floating test licenses for FTB Ecosystem

23© 2013 EXFO Inc. All rights reserved.

Strong Value Proposition5 Good Reasons to Invest in EXFO

1. Excellent track record of sales growthSales CAGR of 20% in last 10 years

2. Well-positioned for key growth driversBandwidth expansion and IP network convergence

3. Balancing sales growth and profitabilityTargeting 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 teamDeep 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.