Marketing with BMO Capital Markets Oct 2013

1. Marketing with BMO Capital Markets
Germain Lamonde
Chairman, President & CEO
October 10, 2013

2. 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. For a reconciliation of adjusted
EBITDA to net earnings (loss), refer to the Q4 2013 press release or the “Non-IFRS Measures”
section on EXFO’s website.
Forward-Looking Statements

3. 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
› Enabling network operators
and equipment manufacturers
to design, deploy and monitor
IP fixed and mobile networks
What We’ve Done
› Gained market share year-in
and year-out for past 28 years
› Ten-year sales CAGR of 17.4%
› Difficult markets in FY 2012-13
› Sales down 3% in FY’13
› Cost savings of $9 M in FY’13
› Adjusted EBITDA1 margin flat
year-over-year at 7.2%
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
1Adjusted EBITDA represents net earnings before interest, income taxes, depreciation and amortization, restructuring charges, stock-based compensation
costs and foreign exchange gain.

4. 4© 2013 EXFO Inc. All rights reserved.. 4© 2013 EXFO Inc. All rights reserved..
Global Organization
› No.1 in portable optical testing
› No.2 in portable telecom testing
>2000 CUSTOMERS IN 100 COUNTRIES
>1600 EMPLOYEES IN 25 COUNTRIES
Americas
›FY 2013 Sales: $128.1 M
›Growth YoY: -2.3%
›Sales Split: 53%
EMEA
›FY 2013 Sales: $67.0 M
›Growth YoY: -6.0%
›Sales Split: 28%
Asia-Pacific
›FY 2013 Sales: $47.0 M
›Growth YoY: -1.0%
›Sales Split: 19%

5. 5© 2013 EXFO Inc. All rights reserved. 5© 2013 EXFO Inc. All rights reserved.
Global IP traffic
Up 3X from 2012-2017
Mobile IP traffic
Up 13X from 2012-2017
(Cisco)
Bandwidth Demand
STRONG FUNDAMENTAL DRIVERS,
MARKED BY INCREASED MOBILE TRAFFIC AND VIDEO

6. 6© 2013 EXFO Inc. All rights reserved..
Headwinds & Tailwinds
Tailwinds
›3G, 4G/LTE deployments
›Mobile backhaul upgrades
›Network density initiatives
(Small cells, DAS, RRH)
›100G network rollouts
›Pair bonding and vectoring on
copper links (100 Mbit/s)
Headwinds
›Uncertain economic conditions
›Challenging markets in EMEA

7. 7© 2013 EXFO Inc. All rights reserved..
Global Mobile Devices Forecast
4G/LTE: 10% OF CONNECTIONS BUT 45% OF TRAFFIC IN 2017
4G
2G
3G
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Millions
2012 2013 2014 2015 2016 2017
Source:CiscoVNIMobileForecast,2013

8. 8© 2013 EXFO Inc. All rights reserved..
Growth Strategy
Sales to wireless
customers on the rise
(~28% of sales in FY’13)
Increase Wireless
Presence
Expand Share of
Wallet with Tier-1
Operators
Doing business
with ~80 of top-100
operators worldwide
Accelerate
Profitability
Combining revenue
growth with a tight
control on expenses
Enable Operators
to Reduce OPEX
Key productivity
differentiator:
FTB Ecosystem
STAY THE COURSE AND EXECUTE FLAWLESSLY

9. 9© 2013 EXFO Inc. All rights reserved.
Focus on Execution
Innovation
Operational
Excellence
Profitable
Growth
•First-to-market with
game-changing solutions
•Leveraging higher-margin
SW solutions
•Cost savings of $9 M in
FY 2013
•Focus on gross margin
improvement
•Balance between sales
growth & profitability
•Targeting 15% adjusted
EBITDA1 margin
1Adjusted EBITDA represents net earnings before interest, income taxes, depreciation and amortization, stock-based compensation costs and foreign exchange gain or loss.

10. 10© 2013 EXFO Inc. All rights reserved.
Telecom Market
TAM*
SAM*
Major competitors
Sales growth ― FY ’13/’12
Five-year sales CAGR
Annual growth rate
Sales ― FY 2013
Gross margin profile
$820 M
$685 M
JDSU, Anritsu
4.3%
2.7%
0-5%
$140.9 M
55-60%
$3.8 B
$1.8 B
JDSU, IXIA, Tektronix
-11.3%
24.5%
10-15%
$100.8 M
70-75%
PHYSICAL
(Optical&Access)
PROTOCOL TO DRIVE REVENUE & EARNINGS GROWTH
PROTOCOL
(Wireless,Serv.Assurance,
Transport&Datacom)
*Total available market (TAM) and serviceable available market (SAM) were raised in 2013 due to more accurate market intelligence, not necessarily because these markets increased in size.

11. 11© 2013 EXFO Inc. All rights reserved.
Physical-Layer Business
COPPER ACCESS
› Most advanced product portfolio for
high-speed copper links
› New MaxTester secured contract
wins with several tier-1 operators
› Supports pair bonding & vectoring
(100 Mb/s)
PORTABLE OPTICAL
› No. 1 player with >35% market share
› Market dominance in OTDR testing
› Key differentiator: iOLM software
› Market leader in dispersion testing
› Unmatched product breadth & depth

12. 12© 2013 EXFO Inc. All rights reserved.
Protocol-Layer Business
WIRELESS
› Protocol analyzers: 4G/LTE and
3G test solutions for deployment
and troubleshooting applications
› Network simulators: Large-scale
emulation of subscriber sessions
to test routers, gateways and
session border controllers
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 with
a single platform is key differentiator
TRANSPORT AND DATACOM
› Multi-service analyzers for
SONET/SDH, OTN and Ethernet
rates from 10M to 100G
› Comprehensive portfolio for wireless
backhaul
› Pioneered new standard for Ethernet
testing (EtherSam)

13. 13© 2013 EXFO Inc. All rights reserved..
Innovation That Makes A Difference
TravelHawk Pro FTB-88100NGE EXFO Connect
Portable, multiservice
test solution supports
transmission rates
from 100M to 100G
4G/LTE troubleshooting
tool selected by three of
top-5 LTE operators
Cloud-based software
suite leverages FTB
platform connectivity to
enhance productivity
ENABLING OPERATORS TO INCREASE EFFICIENCY & REDUCE OPEX

14. 14© 2013 EXFO Inc. All rights reserved..
Revenue Adjusted EBITDA Margin
InUS$Millions
0%
20%
50%
10%
30%
40%
70%
60%
-10%
$50
$100
$150
$200
$250
$300
Gross Margin
Financial Snapshot
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
36% 34% 21% 24% -6% 32% 33% -7% -3%
Sales CAGR of 17.4%
over last 10 Years
Revenue
› $242.2 M in FY’13
› Operators delayed
spending in FY’12-13
› FY’14: Targeting growth
Gross Margin
› 61.8% in FY’13
› Up 9X in last 11 years
› FY’14-15: Expected to rise
Adjusted EBITDA Margin
› 7.2% in FY’13 (flat YoY)
› Cost savings of $9 M YoY
› Targeting 15%PercentageofSales

15. 15© 2013 EXFO Inc. All rights reserved..
Annual Financial Results1
(in US$ millions, except gross margin)
1 All financial results from continuing operations, except net earnings/loss and adjusted EBITDA.
2 Fiscal 2011-2013 financial results according to IFRS; prior years according to Canadian GAAP.
3 Gross margin is a non-IFRS financial measure and represents sales less cost of sales, excluding depreciation and amortization.
4 Adjusted EBITDA represents net earnings (loss) before interest, income taxes, depreciation and amortization, restructuring charges, R&D tax credits recovery, changes in the fair value of the cash contingent consideration,
impairment of goodwill, stock-based compensation costs, gain from the disposal of discontinued operations and foreign exchange gain or loss.
Sales
Gross Margin3
Net R&D Expenses Adjusted EBITDA4
Net Earnings/Loss2
SG&A Expenses

16. 16© 2013 EXFO Inc. All rights reserved..
Q4 2013 Highlights
› Sales totaled $60.9 M, up 6.5% YoY and 3.4% sequentially
› Bookings attained $54.0 M (book-to-bill ratio of 0.89)
› Gross margin1 reached 62.9%, highest level in last 6 quarters
› IFRS net earnings amounted to $3.8 M, $0.06 per diluted share
› Adjusted EBITDA2 totaled $7.1 M, 11.6% of sales
1Gross margin is a non-IFRS financial measure and represents sales less cost of sales, excluding depreciation and amortization.
2Adjusted EBITDA represents net earnings before interest, income taxes, depreciation and amortization, stock-based compensation costs
and foreign exchange gain.

17. 17© 2013 EXFO Inc. All rights reserved.
Strong Value Proposition
5 Good Reasons to Invest in EXFO
1.Proven track record of sales growth
Sales CAGR of 17.4% in last 10 years
2.Well positioned for key growth drivers
3G, 4G/LTE, wireless backhaul, small cells, DAS, RRH, FTTx, 100G
3.Balancing sales growth and profitability
Targeting adjusted EBITDA
1
margin of 15% on revenue of $350 to $400 M
4.Solid balance sheet
Cash position of $50.3 M and no debt — as at August 31, 2013
5.Experienced and disciplined management team
Deep knowledge of managing business in growth and downward markets
1Adjusted EBITDA represents net earnings before interest, income taxes, depreciation and amortization, stock-based compensation costs and foreign exchange gain or loss.