The document discusses EXFO's Q4 2017 financial results and outlook. It notes that EXFO reported $63 million in revenue and $8.5 million in adjusted EBITDA for Q4 2017. The document also highlights several growth drivers for EXFO including fiber deployment, cloud computing, network virtualization and 5G networks. Finally, it summarizes why EXFO represents a good investment opportunity due to its positioning for growth, healthy profitability, strong balance sheet and leadership team.

1. November 1, 2017
Philippe Morin
Chief Executive Officer
Marketing with National Bank Financial
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 Q4 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 optical test
equipment market
Largest
active service assurance
deployment worldwide
1600+
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, restructuring charges, change in fair value of cash contingent consideration and foreign exchange loss.
$22.0M
Adjusted EBITDA*
margin of 9.1%
$12.9M
Cash flows
from operations
$243.3M
Revenue
increase of 4.6%
in FY 2017

5. Revenue
$63.0M
© 2017 EXFO Inc. All rights reserved. 5
Bookings
$66.3M
IFRS net
earnings
$0.8M
Adjusted
EBITDA*
$8.5M
* Adjusted EBITDA represents net earnings before interest, income taxes, depreciation and amortization,
stock-based compensation costs, restructuring charges, change in fair value of cash contingent
consideration and foreign exchange loss.
Adjusted EBITDA margin of 13.6%
Q4 2017 financial results

6. © 2017 EXFO Inc. All rights reserved. 6
Test
instruments
Built-in intelligence,
automation and
ease-of-use across
entire optical,
transport and
copper test portfolio

7. 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. 7

8. Growth drivers
© 2017 EXFO Inc. All rights reserved. 8
Fiber 5G
Network
virtualization
Cloud

9. © 2017 EXFO Inc. All rights reserved. 9
Customer investments
– Communications service providers (CSPs) deploying fiber
everywhere and upgrading transmission rates to 100G to
handle ongoing bandwidth explosion
EXFO positioning
– Market leadership in optical testing and shared lead
in high-speed Ethernet testing
Fiber

10. © 2017 EXFO Inc. All rights reserved. 10
Customer investments
– Web-scale operators building data centers in large cities and
interconnecting them with fiber to improve service quality
– Web-scale operators also deploying fiber inside data centers
to add capacity and reliability
EXFO positioning
– Market leadership in optical testing and shared lead
in high-speed Ethernet testing
– Real-time performance assurance of Ethernet services
Cloud

11. © 2017 EXFO Inc. All rights reserved. 11
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

12. © 2017 EXFO Inc. All rights reserved. 12
5G
Customer investments
– CSPs rolling out fiber and small cells to prepare for
stringent capacity, latency and reliability requirements of
next-generation mobility networks
EXFO positioning
– Lab-to-field testing and real-time monitoring/analytics
supported by 30+ years of telecom expertise

13. Full coverage of network lifecycle
© 2017 EXFO Inc. All rights reserved. 13
Operations.
High-growth opportunity
Labs.
Early insights into
CSP plans
Field.
Core competency

14. Game-changers
© 2017 EXFO Inc. All rights reserved. 14
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

15. © 2017 EXFO Inc. All rights reserved. 15
EXFO
markets
* Excludes losses on FX contracts
Market size $600M $2.0B $2.6B
EXFO sales―FY 2017 $161.9M $81.9M $243.8M*
Growth rate―FY 2017 6.6% -1.7% 4.6%
Gross margin profile 55-60% 70-75% 60-65%
Major competitors Viavi, Anritsu Viavi, NetScout
PROTOCOL
(T&D, SA, analytics, wireless)
PHYSICAL
(Optical and copper)
TOTAL

16. © 2017 EXFO Inc. All rights reserved. 16
Astellia
transaction
– Global leader in performance
analysis of mobile networks
and subscriber experience
– EXFO acquired 33.1% stake
in Astellia and intends to
purchase remaining equity
via public tender offer
– If transaction is successful,
it would provide EXFO with
scale and differentiation in
SA and analytics market
– Astellia reported sales of
48.9 M euros and net loss of
0.7 M euros in 2016

17. © 2017 EXFO Inc. All rights reserved. 17
Yenista
Optics
acquisition
– Supplier of high-end optical
test equipment for the lab
and manufacturing markets
– Optical spectrum analyzers,
tunable lasers and filters,
passive optical component
test system
– Revenue of US$5.8 M
in 2016 and profitable
– All-cash deal for US$9.7 M,
net of cash acquired, closed
in early October

18. © 2017 EXFO Inc. All rights reserved. 18
Why invest?
2.Generating healthy
profitability
– Reported adjusted
EBITDA* of $22.0 M in
FY 2017
– Targeting adjusted
EBITDA of $26 M in
FY 2018
3.Solid balance sheet
– Cash position of $39.2 M
– No debt
4.Strong leadership
team
– One-two tandem of
Executive Chairman
Germain Lamonde and
CEO Philippe Morin
– Stable and experienced
– Deep telecom knowledge
1.Well positioned
for growth drivers
– Fiber
– Cloud
– Network virtualization
– 5G
* Adjusted EBITDA represents net earnings before interest, income taxes, depreciation and amortization, stock-based
compensation costs, restructuring charges, change in cash contingent consideration and foreign exchange loss.