Webinar with Intevac Hosted by Intro-Act John Chen June 18, 2020 - PowerPoint PPT Presentation

Webinar with Intevac Hosted by Intro-Act John Chen June 18, 2020 June 2020

HDD Capacity Shipments Fueled by Nearline 2019-2024 Nearline HDD Exabyte CAGR: 32% 2019-2024 HDD Exabyte CAGR: 23% 3000 2000 2024 Nearline Revenue: $21.5 Billion 5-Yr CAGR = 19% Nearline Exabytes HDD Exabytes 2020 Y-Y growth upgraded from 37% to 45% 0 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Actual Forecast Actual Forecast Client/PE EB NL EB Feb '20 Forecast 2020 Rev (May '20) • >50% of capacity shipped in 2019 was nearline • COVID-19 and WFH accelerating cloud growth • By 2024, nearline will capture more than • 2020 nearline capacity outlook upgraded due to three-quarters of all HDD capacity shipped the stronger growth of the cloud • Longer-term shift to WFH and economic recovery may further accelerate move to cloud June 2020

Nearline Critical for Cloud/Enterprise Storage 2000 2000 9 1800 1800 8 Performance Storage Exabytes Nearline and NAND Exabytes 1600 1600 7 Disk-per-Drive Ratio 1400 1400 6 1200 1200 5 1000 1000 4 800 800 3 600 600 2 400 400 200 200 1 0 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Nearline DT/CE Mobile/CE Perf. Ent eSSD Self-Built eSSDs Nearline Exabytes Total NAND • Nearline capacity growth dwarfs SSDs in enterprise storage • New recording technologies will still require high disk-per-drive ratios to deliver the • Even if new flash technologies enable some nearline needed capacity to the cloud cannibalization, there will not be enough overall NAND to significantly replace nearline HDDs • Nearly 40% of all HDD units shipped in 2024 will be nearline • SSDs for cloud applications will remain 8X to 10X higher in $/GB compared to nearline through 2024 June 2020

Media Forecast: Units by Type 1,400 • Media growing at 8% CAGR (Feb. ‘20 pre-COVID forecast) 1,200 • New recording technologies such as HAMR and MAMR will improve areal 1,000 density at increased costs • High disk-per-drive ratios for Media Units, M 800 nearline will drive maximum capacity and lowest $/GB with these new 600 technologies • Demand for media expected to cross 400 over industry capacity by 2023 • Faster cloud growth or a push to 200 >nine disks-per-drive could outpace production capacity sooner, 0 accelerating media growth rates 2019 2020 2021 2022 2023 2024 beyond 8% CAGR (Feb ‘20 forecast) Actual Forecast DT/CE Mobile/CE Performance Ent Nearline Mfg. Capacity June 2020

Intevac Webinar with TrendFocus Hosted by Intro-Act June 18, 2020 Wendell T. Blonigan James P. Moniz Chief Executive Officer Chief Financial Officer POWERING INNOVATION. DELIVERING VALUE. PROPRIETARY PROPRIETARY June 2020 1

Cautionary Disclaimer During the course of this presentation, we will comment upon future events and may make projections about our future financial performance, including statements related to strategies, our expected sales, product shipments and acceptance, gross margin, operating expense, profit, cash flow, income tax expense, and capital allocation. We will discuss our business strategy, our products, the markets our products address, our position in those markets, expected market acceptance of those products and production capacity. We wish to caution you that these are forward looking statements that are based upon our current expectations, and that actual results could differ materially as a result of various risks and uncertainties, including, without limitation, the following: inability to develop and deliver new products as planned; inability to accurately forecast the demand for our products and services; the possibility that orders in backlog may be cancelled, delayed or rescheduled; inability to achieve gross margin and expense goals; and other risk factors discussed in documents filed by us with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We undertake no obligation to update the forward-looking statements made during this presentation. PROPRIETARY June 2020 2

Q1’20 Data Center/Nearline Demand Drove Record Tie Ratio Strong Data Center in COVID-19 Era Drove Sharp YoY Increase in Media Units Average # of Disks per Drive Total Industry Exabyte Shipments vs. Forecasted Media Units 3.5 3,000 1,300 1,200 3.0 2,500 Additional Additional Exabytes Shipped on HDDs and SSDs 1,100 2.5 Capacity Capacity Required Required >80% >80% 2,000 Capacity Capacity 1,000 by Q4 by Q4 HDD Media Units 2.0 1,500 900 1.5 800 1,000 1.0 700 500 0.5 600 - - 500 2014 2015 2016 2017 2018 2019 Q1 2020 2019 2020E 2021E 2022E 2023E 2024E Actual Total HDD Exabytes Total SSD Exabytes Media Forecast Current Media Capacity Source – Q1 2020 actual media units and CY 2020 media unit est. from TrendFocus May 8, 2020. Long-Range media unit estimates, and HDD and SSD exabytes, from TrendFocus February 2020. PROPRIETARY June 2020 3

HDD Media Capacity Cycles 200 Leans Shipped To Date and Estimate 2020-2023 98 100 90 80 70 60 50 40 29 30 20 17 17 15 12 10 4 0 2003-2004 2005-2007 2008-2009 2010-2011 2012-2013 2014-2018 2019-2023E Beginning of Technology Global Response to Beginning of Technology Beginning of HDD Media Change and Recession Supply SSD Penetration Upgrades and Capacity Technology Capacity Needs Constraints and Shift to Legacy Tool Additions Change Collide Exiting 2009 Cloud-Based Retirement Storage Market 5-year estimate for 2019-2023 period provided in all 2019 and 2020 Investor Presentations PROPRIETARY June 2020 4

How to Look at Potential Upside to HDD Media Business  Expectation to Date: Intevac’s Revenues from HDD Media Market in 2019-2023E Time Period at Least TFE Revenue Drivers * Equal To, Or Will Slightly Exceed, Prior 5-Year Period $500 • 17 Tools Shipped 2014-2018 (No Capacity Added) + Technology Upgrades, Spares and Field Service $450 • 6 Tools to Ship 2019-2020E (Adding Capacity) • ~11 (+/-) Systems Expected in 2021-2023 Based on ~8% CAGR $400 Forecast for Media Units $350  Upside Scenario Based on Secular Shift in Data TFE REVENUE ($M) Center / Nearline Spending $300 • Each 1% Increase in Media CAGR Adds Need for ~1.5 Additional $250 200 Leans Per Year • If Media CAGR Increases to 10-12% Range, Result Could be $200 Upside of 10 to 12 Additional Systems in 2021-2023 Timeframe $150  Potential Upside in 200 Lean Shipments 2021-2023 Subject to a Number of Caveats $100 ~17 Tools in Both 5-Yr Periods • Our customers are still running at modest utilization rates; supply $50 constraints exist for substrates • Current media capacity levels appear to be sufficient for several $- quarters 2014-2018 2019-2023 • Current forecast for ~17 tools is an estimate subject to risk and Last 5 Years Next 5 Years potential revision at any time HDD Media VERTEX • Sustained upside in nearline spending will need to be evident for Solar (MATRIX+ENERGi) Emerging Market Opportunities 2H’21 in order to drive upside in tool orders for the next 3 years * TFE Revenue Drivers and 5-year estimate for 2019-2023 period provided in all 2019 and 2020 Investor Presentations PROPRIETARY June 2020 5