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Corporate OverviewAugust 6, 2020

photoncontrol.com

Forward Looking StatementThis Presentation contains “forward-looking statements” within the meaning of applicable Canadian securities legislation. These statements generally can be identified by use of forward-looking words such as “may”, “will”, “could”, “would”, “should”, “might”, “expect”, “estimate”, “anticipate”, “intend”, “consider”, “believe”, “plan”, “project”, “assume”, “strategy”, “goals”, “objectives”, “potential”, “possible”, “confident” or “continue” or the negative thereof or similar variations. Such forward-looking statements concern the business and anticipated financial performance of the Company and include, without limitation, the Company’s outlook on the long-term prospects of the market and the Company, the Company’s expectations with respect to the overall order activity for the balance of the year, projections of the Company’s revenue, EBITDA, cash position, share buyback, growth in the etch market, timing of the semiconductor industry cycle, cost structure, and the Company’s ability to build on its financial and operational foundation in the future.

These forward-looking statements are based on certain factors and assumptions, including, without limitation: the Company’s ability to develop, manufacture and sell new products that meet the needs of its customers and gain commercial acceptance; the Company’s ability to continue to sell its products in line with expected quantity, price and delivery times; the Company’s ability to attract new business; continued and future demand for the Company’s products; continued sales to the Company’s major customers; the Company’s operations not being adversely affected by supply, operating, cyber security, litigation or regulatory risks; the Company’s ability to react to the cyclical nature of the semiconductor industry; the Company’s ability to enhance revenue diversification and open new market opportunities; and, the Company’s expectations regarding market risk, including interest rate changes, tax changes and foreign currency fluctuations.

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without limitation: additional measures and controls may not be implemented as expected or along the timelines anticipated; uncertainties relating to the market for the Company’s products and maintaining a stable level of orders; fluctuations in revenue as a result of volatility in the markets and product mix; risks relating to the Company’s present reliance on its major customers for the majority of its sales; risks relating to the Company’s reliance on the financial health of and timing of cycles in the semiconductor industry; risks relating to the development of competing technologies and the possibility of increased competition; the effect of slow growth in the United States, the Company’s principal market, as well as other economies and other economic trends and conditions in the markets that the Company and its customers serve; risks associated with technical difficulties or delays in product introductions, improvements, implementation; uncertainties in product pricing or other initiatives of the Company and its competitors; uncertainties in factors that may result in a reduction in capital expenditures and/or delayed buying decisions affecting demand for the Company’s products; risks relating to currency fluctuations, particularly between the Canadian and United States dollars; risks in pursuing additional development projects to support existing customers or pursue other business opportunities; and such other risks as are identified in the Company’s Annual Information Form and other disclosure documents filed on SEDAR at www.sedar.com.

The foregoing assumptions, risks and uncertainties are not exhaustive of the items that may affect our forward-looking statements. Should underlying assumptions prove to be incorrect or one or more of these risks and uncertainties materialize, actual results may vary materially from those described in the forward-looking statements. The Company’s forward-looking statements are based on beliefs, expectations and opinions of management on the date the statements are made.

For the reasons set forth above, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements included herein if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.

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photoncontrol.com

Photon Control –A Global Supplier of Optical Sensors

Experienced management team that understands semiconductor and other markets

Ability to leverage a strong balance sheet ($41m in cash) to broaden market presence through acquisitions and partnerships

Investing in innovation and new product development to serve our customers and expand our markets

An established profitable business with excellent margins which is delivering consistent results

All the fundamentals in place – poised for growth

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photoncontrol.com

Photon Control – What We Do

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Our fiber-optic sensors enable improved process monitoring, uniformity, and repeatability in harsh environments, which provides value throughout the semiconductor supply chain.

Deep Integration in the Semiconductor Supply Chain

Wafer Fabrication

Equipment (WFE)Manufacturers

SemiconductorDevice

Manufacturers

ElectronicsManufacturers

Increased process yield andproductivity

Higher performance and lower cost devices

PhotonControl

Improved process monitoring, uniformity and repeatability

Greater accessibility of technology (5G, data centers, IoT)

photoncontrol.com

Photon Control is a Global Company

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Canada (Headquarters)• Richmond, BC• Manufacturing, Engineering and Sales• ISO 9001: 2015 certified

USA• San Jose, CA: Sales & Engineering• Camarillo, CA : Micronor

South KoreaDistribution

JapanDistribution• Japan Laser Corporation

ChinaDistribution• Crowntech Photonics

SwitzerlandDistribution • Micronor AG

AustraliaDistribution • Quality In Control

We are a Global Company, with 136 employees

photoncontrol.com

Management

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Nigel HuntonPRESIDENT & CEO

30+ years of executive experience in the semi industry with a proven track record of increasing

shareholder value and delivering results

Damian TownsCFO & CORPORATE SECRETARY25+ years of finance experience, extensive public company experience with 10+ years in senior executive roles

Eva ValenciaVP, SEMICONDUCTOR SALES

25+ years in the semiconductor industry as a key account director with a demonstrated history of delivering sales

growth

Dillan FernandoVP, BUSINESS DEVELOPMENT

25+ years of executive management experience in high technology and business transactions including strategic

partnerships and acquisitions

Phil SchickVP, TECHNOLOGY & OPERATIONS

20+ years of engineering and manufacturing experience, including 19 years of photonics

“A seasoned leadership team with in-depth experience in the high-tech industries”**

photoncontrol.com

Board of Directors

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Neil McDonnell Independent Chair

Chuck CargileIndependent Director

Michele Klein Independent Director

Ronan McGrathIndependent Director

Nigel Hunton President & CEO

A recognized leader in the Canadian technology space.

Has an extensive background in financial and strategic planning, public company

M&A, operations, information technology and capital structure management.

Extensive semi industry experience, founded 4 technology start ups and led

2 optical inspection companies from inception to acquisition.

Investor and corporate director who also consults on strategic issues to

major technology companies.

30+ years of executive experience in the semi industry with a proven track

record of increasing shareholder value and delivering results.

“A group of recognized and established technology & business leaders, well-positioned to support management”

photoncontrol.com

Deposition 22% Litho & Track 23%

Automation 5%

Inspection & Metrology 11%

Other 4%

Thermal & Doping5%Other clean &

removal 10%

Plasma Etch 20%

Photon Control’s Current Market

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Today, Photon Control is a critical supplier to the largest Wafer Fabrication (WFE) manufacturers in the Semi Conductor Industry – a $58 billion industry

Source: Gartner, Market Share: Semiconductor Wafer Fab Equipment, Worldwide, 2018

Lam Research 46%

Tokyo Electron30%

Applied Materials18%

Others 6%

Global WFE Market by Process ($USD)

Total WFE Market: $58B Plasma Etch Equipment Market: $12.2B

Deposition Equipment Market: $13.2B

Applied Materials 38%

Lam Research 21%

Tokyo Electron 13%

Kokusai Electric 7%

ASM 5%

Other 16%

(In United States dollars)

photoncontrol.com

Competitive Advantages

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Customer knowledgeProduct expertise, fast response time, relationship-focused, and local support

Proven quality>150,000 high-quality sensors in semiconductor fabs worldwide

World-class manufacturingScalable manufacturing facility, calibration expertise, ISO clean room, on-time delivery, “Copy Exact” manufacturing

Leading TechnologyInnovative and agile development of technology to grow market share and penetrate new applications and segments

Thermocouple

Pyrometer, IR detector

Fiber Optic: GaAs bandgap

detection

Fiber Optic: Phosphor

Thermometry

Ability to perform on harsh environments

Accu

racy

and

per

form

ance

Advantages of phosphor fiber-optic technologyHigh accuracy (±0.25 °C) improved process control

Long term stability wafers will not be misprocessed

Immune to magnetic fields No interference from RF plasma or microwave sources

Technology Differentiation Company Differentiation

Low value

High value

photoncontrol.com

Photon Control’s Growth Strategy

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Customized optical sensor solutions for Semi

Drive market leadershipin Semi

Expand markets with new products and technologies

Create growth opportunities that go beyond

• Continued engagement and partnership with semi OEMs

• Organic growth in Etch• Penetration and growth in Deposition

• Leverage existing technology to penetrate new markets (Flat Panel Display, Medical, etc.)

• Growth in new markets through innovation and M&A

• Long-term investment in R&D• Develop and acquire disruptive technologies

through M&A

Current Business Growth Strategy

photoncontrol.com

Growth Opportunities – Inside of Semi

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Artificial Intelligence

Exponentialgrowth

ConsumerVR / AR Digital

displays

Industrial/Medical

Smart Grid/Mobile Medical

Big Data/Cloud

Bandwidth/Memory

AutomotiveAutonomous

driving

Internet of Things

200B connected devices by 2020

MobilityTransition to 5G

Autos: $28B(9%)

Robotics: $10B(30%)

IoT: $21B(15%)

Phones: $90B(4%)

Servers: $17B(6%)

VR/AR: $10B(15%)

Medical: $5.9B(11%)

Market size USD(CAGR)

Growth in these end markets and the trend toward smart semiconductor manufacturing will lead to growing demand for Photon Control’s products

Source: IC Insights (2018), The Robot Report (2018), Statistica (2018, Technvio (2017))Labeling convention: “Market”: IC Revenue in 2020 (CAGR 2016-2020)

(In United States dollars)

Growth within the Semi Industry

• Semiconductors have become embedded into nearly every industry

• The Etch segment ($12b) has been a key focus and will remain so

• But a significant opportunity exists to grow into the Deposition segment ($13b) as well

photoncontrol.com

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Capitalize on Photon Control’s successful market penetration in the semiconductor industry by extending our product reach

Medical

Aerospace

?

Transformers

Power Generation

Life Sciences

Food Processing

Electrical Vehicles

Flat PanelDisplay

Growth outside of the Semiconductor Industry

Focus our product and applications development in targeted markets

• Flat Panel Display (e.g. OEMs)

• Medical (e.g. Union Medical)

• Research (e.g. Universities)

All industries are requiring the need for greater accuracy and precision and Photon is well placed to assist

Growth Opportunities – Outside of Semi

Renewable Energy

photoncontrol.com

Photon Control Growth Strategy - Micronor Asset Acquisition

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Micronor Assets acquired in April 2020 for CA$844,000

Assets include: Inventory, fully equipped manufacturing facility, trademarks and two patents

• Expansion into new markets including energy, industrial, aerospace and transportation

• Diversification of Photon product portfolio• Highly complementary technologies, products, and shared core

competencies in optics• Patents to deepen Photon’s intellectual property• Second ISO certified Manufacturing Facility in Camarillo, California

Absolute Rotary and Linear Encoder Incremental Rotary and Linear Encoder

Based on an innovative and patented technology, which offers immunity to lightning, EMI/RFI, radiation and magnetic fields.

Absolute Rotary and Linear Encoder Incremental Rotary and Linear Encoder E-Stop, Microswitch, and Signaling Sensors

Rationale:Expand markets with new products and technologies

photoncontrol.com

Photon Control Growth Strategy – FiSens Partnership

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Exclusive worldwide license and distribution agreement (June 2020)

RationaleA strategic partnership to expand product portfolio for Semi and enter new markets

• Expand product portfolio in semi with FiSens technology

• Leverage Photon’s experience in semiconductor and sensing

• Offer differentiated multipoint sensing products

• FiSens develops and manufacturers Fiber Bragg Grating (FBG) sensors capable of measuring temperature, strain, and pressure over multiple points and long distances

• The sensors are rugged, miniature, and immune to RF and electromagnetic fields and high voltage, providing reliable measurements in harsh environments

• Their disrupted patented technology enables their products to achieve the smallest form factor in the market reducing the product footprint at the end user

• Distribute FBG sensors used for temperature, strain, and pressure

• Expand into new applications in the infrastructure, utilities, renewable energy, automotive, and industrial sectors

SemiExclusive worldwide license for FiSens products and patented technology

Non-semiNon-exclusive distribution agreement in select regions including North America

photoncontrol.com

Financial Summary

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(in $ millions)

$10.1

$8.2 $8.0 $7.1

$8.7 $8.9

$17.3

$16.1

30% 31%

19%17%

28%

24%

40%

37%

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2018 2019 2020

Revenue

EBITDA

Management Delivering Operational Efficiencies

Q2 2020

Revenue $16.1M

Gross Margin 60%

EBITDA Margin 37%

As of June 30, 2020

Cash $41.1M

Order Backlog $29.7M

Q3 2020 Guidance

Revenue $13M to $15M

Revenue

(In Canadian dollars)

photoncontrol.com

Photon – Capital Structure @ July 31, 2020

16(In millions of Canadian dollars)

Share Performance

Analyst Coverage

Common Shares Outstanding 104.6m

Dilutive Securities - Options 4.0m

Fully Diluted Shares Outstanding 108.6m

Share Price $2.32

Market Capitalization $242.5m

Cash on Hand $41.1m

Deemed Enterprise Value $201.4m

Share Structure

TICKER SYMBOLS:TSX: PHO OTC: POCEF

photoncontrol.com

Key Takeaways

Experienced management team that understands semiconductor and other markets

Ability to leverage a strong balance sheet ($41m in cash) to broaden market presence through acquisitions and partnerships

Investing in innovation and new product development to serve our customers and expand our markets

An established profitable business with excellent margins which is delivering consistent results

All the fundamentals in place – poised for growth

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photoncontrol.comTSX: PHO