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Jefferies 2017 Global Healthcare ConferenceJune 2017

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This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of

1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to the Company’s current expectations,

beliefs, projections and similar expressions concerning matters that are not historical facts and are not guarantees of future performance. Forward-looking statements

involve uncertainties, risks, assumptions and contingencies, many of which are outside the Company’s control and which may cause actual results to differ materially from

those described in or implied by any forward-looking statement. Such statements include, but are not limited to, information provided regarding expected revenues,

earnings and growth in fiscal 2017 and thereafter. For a further discussion of factors that could cause the Company's future results to differ materially from any forward-

looking statements, see the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2016 and other risks

described therein and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. All forward-looking statements

are based on currently available information and speak only as of the date on which they are made. The Company assumes no obligation to update any forward-looking

statement made in this investor presentation that becomes untrue because of subsequent events, new information or otherwise, except to the extent it is required to do so

in connection with its ongoing requirements under federal securities laws.

This presentation includes a presentation of certain non-GAAP financial measures. The presentation of these non-GAAP figures is provided to allow for the comparison of

the underlying performance of the Company, net of impairment, restructuring and other charges and the amortization of intangible assets acquired through business

acquisitions, non-cash interest expense related to convertible debt, gain from the disposition of a business and their associated tax effects when applicable. Management

believes that these non-GAAP financial measures provide (i) additional insight into the ongoing operations of the Company, (ii) meaningful supplemental information

regarding the Company's results excluding amounts management does not view as reflective of ongoing operating results for planning and forecasting and for assessing

the performance of the business, and (iii) a meaningful comparison against results for past periods of results for current periods and guidance for future periods.

Management also believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating the Company’s

operating results and future prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies.

Non-GAAP financial measures should not be considered in isolation or as a substitute for measures of financial performance prepared in accordance with GAAP.

Safe Harbor

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Winning competitive advantage in technology leadership, cost-effective specialized

design, turnkey solutions, breadth of offering, global reach, vertical integration and

flexible cost structure

Multiple attractive value propositions: systems, solutions and turnkey service

Serving large and growing worldwide customer base

TECHNOLOGY LEADERSHIP, BROAD OFFERING & LARGE CUSTOMER BASE

OPTOELECTRONICS

SECURITY

Track record of delivering strong revenue, earnings and Adjusted

EBITDA growth

Expansive installed base of security systems throughout the world

Well-positioned for future growth with a robust pipeline of highly

competitive offerings in attractive markets

Leadership in growing and higher margin turnkey screening solutions

business

Solid cash generation and balance sheet providing flexibility for

future investment

HEALTHCARE

RESULTS

OSI Systems is a Leading Provider of Advanced, High-Reliability

Electronics Solutions for Critical Applications in Large Addressable Markets

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Attractive Markets Provide Considerable Growth OpportunitiesS

OL

UT

ION

SG

RO

WT

H O

PP

OR

TU

NIT

IES

Patient Monitoring and Connectivity

Anesthesia Delivery and Ventilation

Diagnostic Cardiology

Supplies and Accessories

► New product introductions

► Multi-year contracts with major

Group Purchasing Organizations

(GPOs)

► Well-positioned in emerging

markets with growing middle-class

populations and developed

countries with aging populations

HEALTHCARE

Custom Design and Manufacturing

for Military, Aerospace, Healthcare,

Security, Telecommunications,

Industrial and Other Markets

OEM Contract Manufacturing

► Competitive manufacturing cost

structure

► Large customer base with new

customers and higher margin

opportunities across multiple

industries

► Customers actively seeking

versatile partners

OPTOELECTRONCS

Checked Baggage Screening

Cargo and Vehicle Inspection

Baggage and Parcel Inspection

People Screening, Radiation and

Trace Detection

► Large addressable market for

turnkey security screening

solutions

► Global demand for high

performance threat detection

screening solutions spurred by

public and private sector mandates

► Government certifications and

pipeline of advanced cost-effective

solutions

SECURITY

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OSI’s Technology Leadership Is A Primary Competitive Advantage

Deep expertise in critical technologies and a proven track record of

delivering strong solutions generates first-to-market advantages

Recognized for high quality, specialized electronic systems, components

and solutions

Broad technology platforms and product lines provide one-stop-shop

advantage

Numerous dedicated engineers and scientists

Recently-acquired, industry-leading Z Backscatter® X-ray technology for

security screening solutions provides new R&D platform

Current pipeline & patents offer significant opportunity

Multiple new product introductions with sizeable revenue potential

Next-gen CT technology (RTT®) for hold-baggage screening

targets large global market opportunity

Pending patents to significantly expand existing key patent portfolio

SIGNIFICANT INVESTMENT IN R&D TO GROW PRODUCT

PIPELINE

“…the best equipment we have out there.” - U.S. Customs and Border Protection

Expert advisor to U.S. Department of

Homeland Security on advanced

technology development initiatives

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Large Elite Global Customer Base

Kremlin

Vatican

Ben Gurion International Airport, Israel

United States Department of

Defense

Abu DhabiCustoms

Taiwan Aviation

Police

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Driving Growth Across Balanced Portfolio

* Based upon LTM 3/31/2017 third party net sales

SALES BY

GEOGRAPHY*

DIVISION

SALES AS A %

OF OSI*

Security

56%

Healthcare

22%

Optoelectronics 22%

U.S.

49%

EMEA

24%

APAC

13%

Other Americas

14%

Security, Defense, Healthcare, Optical

Communications, Consumer Products,

Industrial Applications

Comprehensive product & service offerings

Global reach with strong international presence

Strong, diversified customer base

Systems, solutions and turnkey model

Product portfolio, engineering & manufacturing

expertise, vertical integration, global sales

channel & service excellence

END MARKETS

PRODUCTS &

SERVICES

GEOGRAPHIC

CUSTOMERS

MULTIPLE

REVENUE MODELS

COMPETITIVE

STRENGTHS

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2 R&D

5 Manufacturing

10 Sales/Service

6 R&D

9 Manufacturing

10 Sales/Service

AMERICAS EMEA ASIA 2 R&D

4 Manufacturing

6 Sales/Service

Expanding, Vertically Integrated Footprint of Engineering,

Manufacturing, Sales and Service Facilities

9

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

FY 2016 FY 2017

Double Digit Projected FY 2017 Revenue and EPS Growth

REVENUE EARNINGS PER SHARE 2

$ in millions (June 30 fiscal year)

1) Revenue guidance inclusive of approximately $95 million attributable to the acquisition of AS&E for a partial period in Q1 FY17 as well as the remainder of the year.

2) Excludes impairment, restructuring, other charges and the amortization of intangible assets acquired through business acquisitions, non-cash interest expense related to

convertible debt, gain from the disposition of a business, net of tax.

FY17

Guidance

$950 - $970

15 -17%1

Strong backlog, turnkey projects, significant cargo opportunities and expanded

product portfolio projected to drive strong topline and earnings growth

$830

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

FY 2016 FY 2017

FY17

Guidance

$2.85 - $3.05

29 - 38%

$2.21

10

$ in millions

$115

$250

$0

$50

$100

$150

$200

$250

FY 2012 FY 2016

SERVICE REVENUE

$37

$105

$0

$20

$40

$60

$80

$100

FY 2012 FY 2016

SERVICE GROSS PROFIT

Delivering Higher Visibility Service Revenue

Large increase in higher visibility service sales, up 118% over FY 2012 driven primarily by turnkey business.

Q1 FY17 acquisition of AS&E significantly grows base of highly profitable recurring services revenue.

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Generating Strong Operating Cash Flow

* Uses of cash includes cash generated from operations and proceeds from stock options, warrants and ESPP

Share

repurchases

28%

Capex

42%

M&A

30%

Over $500 million

of Operating Cash

Flow from

FY 2012 to YTD

Q3 2017

USES OF

CASH*

2012-Q3 2017

Cash generation invested to drive future growth and shareholder value

12

Strong Cash Flow and Balance Sheet Provide Excellent Flexibility for Investment

CAPEX and M&A

$0

$50

$100

$150

$200

$250

FY12 FY13 FY14 FY15 FY16 YTD Q3 FY17*

Acquisitions

Capex

$77

$163

$67

$31$38

$203

LEVERAGE RATIO

Disciplined cash management and investment approach.

High margin, large-scale turnkey ramp-ups require large upfront capex but offer rapid payback.

$287.5M million 1.25% convertible notes issued in February 2017.

$ in millions

* includes acquisition of AS&E in 9/16

0.0

0.6

0.20.1

1.0

2.2

(1.0)

(0.5)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

FYE12 FYE13 FYE14 FYE15 FYE16 Q3FY17

Gross Leverage

Net Leverage

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OSI SECURITY DIVISION

GLOBAL LEADER IN SECURITY SCREENING SOLUTIONS

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Global Leader in Security Screening Market

Baggage &

Parcel

Inspection

Cargo & Vehicle

Inspection

Hold Baggage

Screening

Radiation

DetectionTrace

Detection

People

Screening

A leading global provider of security inspection solutions, equipment and services for

aviation, ports, customs and border protection defense, event security, critical infrastructure

and law enforcement

Significantly increased scale and position with Q1 FY 2017 acquisition of AS&E

Strong customer base including U.S. and international government agencies

Leadership in higher margin, recurring revenue, large turnkey projects

Growing multi-billion dollar worldwide market

Security

56%DIVISION

SALES AS A

% OF OSI*

Rapiscan Systems l AS&E l S2 Global

* Based upon LTM 3/31/17 third party net sales

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AS&E ACQUISITION SUMMARY

Large provider of cutting-edge detection

systems and services for cargo, parcel,

and personnel inspection

Broadens OSI leadership position in global

cargo and vehicle inspection market

Track record of innovative technology with

premier customers in strategic end markets

Expands OSI’s security product portfolio

with addition of attractive Z Backscatter®

X-ray technology

Profitable aftermarket services revenue

significant portion of business

WELL-POSITIONED

Enhanced our competitive position and expanded our customer base and

industry-leading technology portfolio with recent AS&E acquisition

Significant opportunities across our entire security screening portfolio

Strong and growing order demand

HIGH PERFORMANCE FOCUS

Expanding our high margin, high visibility recurring revenue mix

Aggressively pursuing additional large-scale turnkey opportunities

Significantly expanded higher margin, recurring service revenue base

with acquisition of AS&E

Focused on fiscal discipline and delivering run-rate cost synergies with

integration of AS&E – approximately 2/3 of cost synergy goals have been

achieved to date

OSI Security Division: Well-Positioned to Capitalize on Growing

Security Screening Opportunities in FY 2017 and Beyond

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Wide range of state-of-the-art screening solutions utilizing multiple

technologies and advanced threat identification algorithms for the

detection of solid and liquid explosives, weapons, nuclear and

radiological threats, narcotics, dangerous goods and other contraband

High-reliability at high-throughput, cost efficient and industry-

leading image quality

End-to-end solutions-based approach with leading global service

and support capabilities and local expertise

Strong, proprietary software systems integration capabilities

Common platforms for improved data sharing, networking and training

Multiple revenue models facilitate customer contracting

TECHNOLOGY LEADERSHIP

Proven R&D team with deep expertise in dual

energy X-ray, Z Backscatter®, high speed computed tomography imaging, ion mobility

spectrometry, nuclear material detection and

other technologies

Expert advisor to U.S. Department of Homeland

Security Science and Technology Directorate on

advanced technology development initiatives

Long track record delivering winning

breakthrough technologies

Robust product pipeline

BROAD OFFERING

Broad Portfolio of High-Performance, Cost-Efficient Screening Solutions

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DEPT OF DEFENSE

Pentagon

Air Force

Army

Navy

Marines

DEPT OF AGRICULTURE

DEPT OF COMMERCE

U.S. Census Bureau

DEPT OF ENERGY

DEPT OF HEALTH & HUMAN

SERVICES

DEPT OF HOMELAND

SECURITY

TSA

Customs and Border

Protection (CBP)

Federal Protective Service

FEMA

Secret Service

DEPT OF JUSTICE

ATF

DEA

U.S. Attorney’s Office

INDEPENDENT AGENCIES

CIA

Federal Reserve

FDIC

National Archives

NASA

Smithsonian

U.S. Postal Service

FORTUNE 500 COMPANIES

NUCLEAR FACILITIES

LAW ENFORCEMENT

AGENCIES

A Top Provider of Certified Compliant Technology with Large and

Growing U.S. Installed Base

DEPT OF LABOR

DEPT OF STATE

NAS

DEPT OF

TRANSPORTATION

DEPT OF TREASURY

U.S. Mint

IRS

DEPT OF VETERANS

AFFAIRS

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AMERICAS (EXCLUDING U.S.)

Servicio de Administración

Tributaria Mexico (SAT)

Puerto Rico Ports Authority

(PRPA)

Canada Border Services

Agency (CBSA)

Canadian Air Transport

Security Authority (CATSA)

Brazil Federal Police

Chilean Customs

Colombian Customs

Peru Ministry of Interior

MIDDLE EAST AND AFRICA

Israel Airports Authority

Abu Dhabi Customs

Dubai Police

Saudi Arabia Customs

Qatar Petroleum

Iraqi Government

Egyptian Customs

Tunisian Customs

Ghana Port Authority

South Africa Customs

ASIA PACIFIC

• China Customs

• Civil Aviation Administration

of China

• Airport Authority Hong Kong

• Hong Kong SAR Customs

• Taiwan Aviation Police

• Royal Thai Police

• Singapore Jurong Town Corp

• Australian Customs Service

• New Zealand

• Japan Customs

• Korea Customs Service

• Airport Authority of India

EUROPEAN UNION

North Atlantic Treaty

Organization (NATO)

European Civil Aviation

Conference (ECAC)

Albania

Bulgaria

Vatican

Kremlin

Buckingham Palace

UK Department for

Transport (DfT)

UK Border Agency

Dutch Customs

Large and Growing International Customer Base (partial list)

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Growing global demand for large-scale, state-of-the-art cargo screening

solutions with potentially fewer initial outlays and efficient operating cost

Potential to capitalize on leading position

Potential to expand beyond cargo segment over long term

Significant opportunity pipeline

GROWTH OPPORTUNITIES

CHARACTERISTICS

Flexible, service-based win-win revenue model – scanning industry first

Large-scale, multi-year projects with recurring revenue providing increased

visibility

Initial contract wins (Mexico, Puerto Rico and Albania); a meaningful portion of

division revenues

Higher margin sales

Significant capex requirement in initial build-out phase with rapid return on

investment

Longer sales cycle

First-mover advantage in developing, integrating and operating

comprehensive large-scale, cutting-edge screening systems,

staffing, systems integration and support

Leader in Large-scale Turnkey Screening Solutions with

Significant Global Expansion Opportunities

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GLOBAL HOLD CHECKED BAGGAGE SCREENING MARKET OVERVIEW

RAPISCAN RTT ®

Rapiscan RTT ®

Hold Baggage Screening Market: Significant Replacement Opportunity

with Patented High Performance Next-gen CT Technology – RTT®

Regulations moving to require Computed Tomography (CT) technology globally

EU mandatory transition from conventional multi-view X-ray (EDS Standard 2) to CT (EDS Standard 3): large market growth opportunity

Current EU baggage conveyors – 1,800 bags per hour (bph)

Airports desire “drop-in” replacement for current MVXR

Large international market

U.S. replacement CT market

Patented CT system utilizing breakthrough Real Time Tomography (RTT ®)

technology

Significant wins include Paris, Rome and Oslo airports

Standard 3 EU EDS Certification received

Enables high quality 3D imaging at high-speed (1,800 bph)

Low life-cycle cost – low maintenance; energy efficient

Highly reliable, no classical CT moving parts

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Significant Global Penetration Opportunity for Cargo and Vehicle

Inspection Systems Broadened with New Portfolio Additions

INDUSTRY LEADERSHIP

GROWTH OPPORTUNITIES

Eagle® R60 Rail Car Scanning System

Eagle® M60 Car and Cargo Scanning System

Strong market share of wide range of scanning technologies enhanced

with newly acquired Z Backscatter® cargo and vehicle scanning systems

Significant contract wins in the U.S., Middle East and Latin America

FY 2017 – two multi-year IDIQ U.S. Customs and Border Protection

contract awards for newly acquired Z-Backscatter ZBV ® and Z

Portal ® systems valued at up to $140 million

High image quality with flexible configuration (mobile, portal, gantry,

ruggedized)

Proven screening services business model (industry-first): low upfront cost to

outsource service; full benefit without cost of ownership

Demand in U.S. and international markets for customs enforcement,

border and force protection and narcotics trafficking

Government and private port, border and rail sector applications

U.S. Government capability today to inspect only low percentage of inbound

containers

ZBV® Mobile Car and Cargo Scanning System

Z Portal® Multi-view Car and Cargo Scanning System

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GROWTH OPPORTUNITIES

INDUSTRY LEADERSHIP

Expanding Government and Private Markets for High

Performance Baggage and Parcel Inspection Systems

Checkpoint X-ray system – strong worldwide market share

>20,000 systems sold

Dual view technology, superior imaging and high efficiency

Pipeline of competitive products with industry leading image

quality

Global regulatory approvals

Approved air cargo screening systems

EU Cabin Baggage EDS – new requirement moving away from single

view X-ray

Replacement life cycle business

U.S. and international government business

Emerging market opportunities: Latin America, India & China

Non-aviation (sports/public venues, government, critical

infrastructure)

Well-positioned to provide integrated checkpoint solutions

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People Screening, Trace, Contraband and Radiation Detection:

Industry Leadership in a Growing Market

Metal Detectors

Rapiscan Metor ® product line – tens

of thousands of systems sold

Aviation, courthouses, office buildings,

events

Portable Z Backscatter Detection

MINI Z ® handheld Z Backscatter ®

on-the-go solution

New affordable product category –

orders in 30 countries

Integrated Checkpoint Solutions

Checkpoint solutions for commercial

and government applications

Strong domestic and international

market base

Radiation Detection

Large global installed base

Leveraging installed base for service

and maintenance contracts

Strong sales to U.S. Federal and

commercial markets

Trace Detection

Patented technology

Rapiscan DETECTRA® HX

Portable, lightweight with high

sensitivity

Critical infrastructure, events,

transportation hubs, borders

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OSI HEALTHCARE DIVISION

MEDICAL MONITORING SYSTEMS & DEVICES

25

DIVISION

SALES AS A %

OF OSI*

Healthcare

22%

Broad portfolio of medical technology healthcare solutions for patient monitoring and connectivity, anesthesia delivery and ventilation, diagnostic cardiology and supplies/accesories

Multi-year contracts with major healthcare GPOs, IDNs and ACOs

Targeting large market opportunities aligned with value-based healthcare

Highest gross margin OSI division

Multiple new product introductions with strong pipeline of future products

Large installed base of monitoring products

Global distribution channels

Recurring revenue through services and supplies

Highly rated in U.S. overall service in past IMV ServiceTrak Reports (Reputation for superior service – a competitive advantage)

OSI Healthcare: Leading Global Supplier of Medical Monitoring Systems & Devices

Well Positioned to Capitalize on Growing Market Opportunities

* Based upon LTM 3/31/17 third party net sales

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Market Penetration Opportunity with Expanding Portfolio in

Patient Monitoring & Connectivity

INDUSTRY LEADERSHIP

GROWTH OPPORTUNITIES

A leading full-range supplier

Technology innovator

Solutions that inspire clinical efficiency

Best-in-class integration

Unique open architecture platform for faster time to market

Implementation on customized existing network resulting inbetter economic outcomes for the customer

GPO/IDN/ACO contracts

Upgrades to large installed base

Emerging markets

Multiple customer touchpoints through supplies and accessories

Launching portfolio enhancements: Xhibit®, XTR telemetry, SaaS

products: Spacelabs TeleCom and Spacelabs SafeNSound

Multiple new product launches – expanding portfolio

Flexibility to interact with 3rd party EHR providers

27

New Anesthesia Delivery System Launch Provides Significant

Opportunity in Anesthesia & Ventilation Market

BleaseDatum

Vaporizers

Multigas

Module

CUSTOMERS

GROWTH OPPORTUNITIES

U.S. market – largest market globally for anesthesia systems

Distribution channel

New product launches

Surgery centers, clinics, hospitals

OEMs – Leading players (vaporizers and ventilators)

BleaseFocus

with Qube® Monitor

Arkon

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Broad range of cardiology products and solutions:

Improved clinical outcomes through cardiac ECG recorders and analyzers

“Gold Standard” ambulatory blood pressure monitoring

Web-based scalable cardiology information management solutions

INDUSTRY LEADERSHIP

GROWTH OPPORTUNITIES

Expansion Opportunity in Cardiology Market

Leverage existing sales / distribution channels

Data management solutions becoming mandatory to connect devices

Enhanced diagnostic parameters in Pathfinder SL® holter analyzer and new

ABP recorders

New product introductions updating portfolio, increasing competitiveness

and providing upgrade opportunities

Sentinel ®

Ambulatory Blood

Pressure

Lifecard ® CF

CardioExpress ® SL12 and SL18A

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OSI OPTOELECTRONICS AND MANUFACTURING DIVISION

INDUSTRY-LEADING PHOTODIODE & OPTICAL SENSORS

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A leading global developer and manufacturer of custom semiconductor-based

optoelectronic components and value-added sub-systems for over 40 years

Sought-after innovative partner with efficient global manufacturing footprint

Targeting higher margin market for highly engineered, high quality sub-assemblies

serving significant technology electronics markets

Broad applications-driven focus; primary industry focus: aerospace and defense,

homeland security, medial, clinical diagnostics, bio-chemistry and industrial

Intercompany sales to Security and Healthcare divisions enhance consolidated margin

Optoelectronics 22%

DIVISION

SALES AS A %

OF OSI*

OSI Optoelectronics and Manufacturing: Industry-leading Photodiode & Optical Sensors

Well Positioned to Capitalize on Growing Market Opportunities

* Based upon LTM 3/31/17 third party net sales

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OSI Summary

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OSI: Technology Leader Well Positioned for Growth

Competitive strengths in technology leadership, turnkey solutions experience

and vertically-integrated, low-cost manufacturing

Q1 FY 2017 acquisition of AS&E enhances leadership in security business

Expanding global footprint and customer base

Contract wins increasing competitive position

Recent product launches anticipated to contribute to future growth

Scale and momentum to enable profitable growth

Robust product pipeline

delivering next-gen solutions

Strong balance sheet

and significant backlog

Significant Adjusted

EBITDA growth

Operating margin

improvement

Expanding global terrorism threat

Large security government contracts

Security division turnkey service model

Higher margin electronics customer sales

New markets for existing technologies

CATALYSTS FOR GROWTH

IN PLACE

RTT® new product sales

Healthcare division new product sales

Expanded security portfolio with AS&E

33

Thank you!

Appendix

35

Reconciliation of GAAP to Non-GAAP EPS

FY16 EPS (DILUTED)

GAAP basis $ 1.30

Impairment, restructuring and other charges 1.10

Amortization expense related to acquisitions 0.13

Tax impact of above (0.32)

Non-GAAP basis $ 2.21