1 | © 2016 Infinera

Infinera OFC 2016 Technology Briefing

Dave Welch, President and Co-founder22 March 2016

2 | © 2016 Infinera

This presentation contains "forward-looking" statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, any projections of financial information; any statements about historical results that may suggest trends for our business; any statements of the plans, strategies, and objectives of management for future operations; any statements of expectation or belief regarding future events, potential markets or market size, technology developments, or enforceability of our intellectual property rights; and any statements of assumptions underlying any of the items mentioned.

These statements are based on estimates and information available to us at the time of this presentation and are not guarantees of future performance. Actual results could differ materially from our current expectations as a result of many factors, including but not limited to: aggressive business tactics by our competitors, our dependence on a single product, our reliance on single-source suppliers, our ability to protect our intellectual property, claims by others that we infringe their intellectual property, and our ability to respond to rapid technological changes, and other risks that may impact our business are set forth in our annual reports on Form 10-K filed with the Securities and Exchange Commission, as well as subsequent reports filed with or furnished to the SEC. These reports are available on our website at www.infinera.com and the SEC’s website at www.sec.gov. We assume no obligation to, and do not currently intend to, update any such forward-looking statements.

Safe Harbor

3 | © 2016 Infinera

Aggregation or Disaggregation or Both?

Standardized Specifications

Device/Solution Performance

Why? Examples When?

Disaggregation Cost, Density, Simplicity

Software (cloud),Digital hardware

Cost becomes significant, Virtualized resources, Rapid deployment and product lifecycle

Aggregation Cost, Density, Simplicity

Analog hardware Cost / power benefit, Max performance need, Network accountability, Future-proof capacity

4 | © 2016 Infinera

The Complexity of Analog Technology (Optical Transport)

Capacity-Reach factor paramount at system and fiber level

Photonic integration optimizes baud rate, modulation, channel count

Integration and parallelization improves cost, density, reliability

Baud

Rat

e

Channel Count

- 33G

- 44G

- 66G

1 -

2-

4-

10 -

5 | © 2016 Infinera

Industry’s first 2.4 Tb/s transport technology

Breaking Through: Multi-Terabit Optical Subsystem

Advanced electronics (DSP/ASIC): Next-gen FlexCoherent™ processor

Cutting-edge photonics: Fourth-gen Photonic Integrated Circuit (PIC)

The next step function in optical with Infinite Capacity Engine

DSPPIC

Infinera Infinite Capacity Engine

6 | © 2016 Infinera

Bandwidth Demand Grows Exponentially

Source: Gartner, Ericsson, IBM

• IoT growth 3x, 21B devices• Mobile video use 13x • 70% business cloud-enabled

By 2020

• 3x YoY• 315 million minutes online

Super Bowl2016

7 | © 2016 Infinera

Transport Bandwidth Step Functions

Pre-Infinera

10G

Discrete10G

Non Coherent180nm

500G

2011

500G PICCoherent SC

HD-FEC → SD-FEC

FlexCoherent™ DSP40nm, 16GBaud

2005

100G

100G PICNon Coherent

Non Coherent130nm, 10GBaud

8 | © 2016 Infinera

Pre-Infinera

10G

Discrete10G

Non Coherent180nm

500G

2011

500G PICCoherent SC

HD-FEC → SD-FEC

FlexCoherent™ DSP40nm, 16GBaud

2005

100G

100G PICNon Coherent

Non Coherent130nm, 10GBaud

It’s Time for a Quantum Leap to Multi-terabits

Introducing the Infinera Infinite Capacity Engine

Bigger Industry’s first 2.4T super-channels Proven monolithic InP technology Industry’s first multi-terabit

L1 encryption, bulk + per service

Smaller 82% lower power in a tiny

subsystem vs. nearest competitor 4x more capacity per mm3

Better Sliceable photonics 53% lower TCO Advanced Coherent Toolkit (ACT)

including Nyquist subcarriers Instant Bandwidth flexibility

Multi-Terabit Photonics

FlexCoherent™ Electronics

9 | © 2016 Infinera

Competition200G/400G/500G Metro

Up to 12x Bigger: Multi-terabit Super-channels

More Capacity

Incr

ease

d Re

ach

Infinera500G Super-channelLong-haul

Infinera Infinite Capacity EngineUp to 2.4T Super-channelUp to 26.4T / fiberBPSK, ME-PSK, 3QAM, QPSK, 8QAM, 16QAMUp to 12000km

10 | © 2016 Infinera

Nyquist SubcarriersSD-FEC Gain SharingME-PSK modulationHigh Gain SD-FECFlexible Channel Spacing

Better Distance x Capacity Performance: 40-60%

Infinera Advanced Coherent Toolkit (ACT)

Subsea Capacity-Reach increase: BPSK → ME-PSK + 3QAM mix & Margin Q-value increase via SD-FEC enhancements, 40-60% better

Regional/Metro Move to higher-order modulation on existing fiber QPSK (1.2T) → 8QAM (1.8T), 50% increase

11 | © 2016 Infinera

Infinite Flexibility: Sliceable Photonics, Time-Based Instant Bandwidth

F

A

B

C

DE

Multi-terabit Super-channelActivate Inst. BW (1.5T)

Slice, Route, Modulate

Pre-Deploy (up to 2.4T)

Use Time-Based Inst. BW Subsea100G

SDN

Plan

12 | © 2016 Infinera

53% Lower TCO With Sliceable Photonics

Comparable designs for Infinera and nearest competitor

Standard US Collector NetworkClient: 10G heavy, 100G later

Traffic Growth: 3 Time PeriodsMix of QPSK & 16QAM

Mix of Switched & Muxponder

0

50

100

150

200

250

300

350

400

450

500

Modules Power Space TCO

Competition INFN

340%more

53%lowerN

orm

alize

d

56%more 37%

more

113%more

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Customizable per network location Infinite Capacity Engine 600G → 2.4T

The Infinera Unified End-to-End Portfolio

FlexILS MTC-9

DTN-XFamily

TM-Series

Cloud Xpress XTC-10XTC-4XTC-2EXTC-2TM-3000TM-301TM-102

TM-SeriesNID

EDU

LONG HAUL / SUBSEAMETRO DC INTERCONNECT

TG-Series

AGGREGATIONACCESS CORE

Mobile Front/Backhaul

BusinessEthernet

CableBroadband

Triple PlayBroadband

PHOTONIC LEADERSHIP

SDN and INFINERA NMS

XT Series

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Crushes Industry Benchmarks – Subsystems

Electronics Photonics

Competition

82% lower power

Comparable Subsystems for 1.2Tb/s

Infinera Infinite Capacity Engine

PhotonicsElectronics

Comparable designs for Infinera and nearest competitor

15 | © 2016 Infinera

Crushes Industry Benchmarks – Systems

75% of racks are 12KW or less in data centersSource: Telegeography 2015

42URack

12KW8 Tb/s

12KW8 Tb/s

12KW8 Tb/s

Nearest Competitor Reference Design

12KW24 Tb/s

InfineraReference Design

16 | © 2016 Infinera

A Quantum Leap in Optical Transport to Terabits

Infinera Infinite Capacity

Engine

Bigger Multi-terabit super-channels,

up to 12x bigger Multi-terabit wire-rate L1 encryption

Smaller One of world’s smallest multi-terabit

subsystem Lower power: 82%↓ vs. competition

Better Sliceable photonics, 53% lower TCO Advanced coherent, 40-60% improved

capacity-reach performance

17 | © 2016 Infinera