Jefferies 13th Annual Industrials Conference August 2017 1 Safe Harbor This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to the Company’s current expectations, beliefs, projections and similar expressions concerning matters that are not historical facts and are not guarantees of future performance. Forward-looking statements involve uncertainties, risks, assumptions and contingencies, many of which are outside the Company’s control and which may cause actual results to differ materially from those described in or implied by any forward-looking statement. Such statements include, but are not limited to, information provided regarding expected revenues, earnings and growth in fiscal 2017 and thereafter. For a further discussion of factors that could cause the Company's future results to differ materially from any forward- looking statements, see the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2016 and other risks described therein and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. All forward-looking statements are based on currently available information and speak only as of the date on which they are made. The Company assumes no obligation to update any forward-looking statement made in this investor presentation that becomes untrue because of subsequent events, new information or otherwise, except to the extent it is required to do so in connection with its ongoing requirements under federal securities laws. This presentation includes a presentation of certain non-GAAP financial measures. The presentation of these non-GAAP figures is provided to allow for the comparison of the underlying performance of the Company, net of impairment, restructuring and other charges and the amortization of intangible assets acquired through business acquisitions, non-cash interest expense related to convertible debt, gain from the disposition of a business and their associated tax effects when applicable. Management believes that these non-GAAP financial measures provide (i) additional insight into the ongoing operations of the Company, (ii) meaningful supplemental information regarding the Company's results excluding amounts management does not view as reflective of ongoing operating results for planning and forecasting and for assessing the performance of the business, and (iii) a meaningful comparison against results for past periods of results for current periods and guidance for future periods. Management also believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating the Company’s operating results and future prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies. Non-GAAP financial measures should not be considered in isolation or as a substitute for measures of financial performance prepared in accordance with GAAP. 2 OSI Systems Is a Leading Provider of Advanced, High-Reliability Electronics Solutions for Critical Applications SECURITY HEALTHCARE OPTOELECTRONCS Why OSI? ► Addressing large, global market Long track record delivering strong opportunities revenue, earnings and EBITDA growth ► Winning with competitive advantages in breadth of offering, turnkey solutions, Well-positioned for continued technology leadership, cost-effective growth with a robust and expanding specialized design, vertical integration, pipeline of highly competitive flexible cost structure, and global reach offerings ► Large, marquee customer base in each Excellent cash generation and end market liquidity provide flexibility for continued strategic investment 3 Attractive Markets Provide Considerable Growth Opportunities SECURITY HEALTHCARE OPTOELECTRONCS . Checked Baggage Screening . Patient Monitoring and Connectivity . Custom Design and Manufacturing . Cargo and Vehicle Inspection . Anesthesia Delivery and Ventilation for Military, Aerospace, Healthcare, Security, Telecommunications, . Baggage and Parcel Inspection . Diagnostic Cardiology Industrial and Other Markets SOLUTIONS . People Screening, Radiation and . Supplies and Accessories . OEM Contract Manufacturing ExplosiveTrace Detection ► Large addressable market for ► New product introductions ► Competitive manufacturing cost turnkey security screening structure ► Multi-year contracts with major solutions Group Purchasing Organizations ► Large customer base with new ► Global demand for high (GPOs) customers and higher margin performance threat detection opportunities across multiple ► Well-positioned in emerging screening solutions spurred by markets with growing middle-class industries public and private sector mandates populations and developed ► Customers actively seeking ► Government certifications and countries with aging populations versatile partners GROWTH OPPORTUNITIES GROWTH pipeline of advanced cost-effective solutions 4 OSI’s Technology Leadership Is A Primary Competitive Advantage Deep expertise in critical technologies and a proven track record of delivering strong solutions generates first-to-market advantages Recognized for high quality, specialized electronic systems, components and solutions Broad technology platforms and product lines provide one-stop-shop advantage SIGNIFICANT INVESTMENT IN R&D TO GROW PRODUCT PIPELINE . Numerous dedicated engineers and scientists Expert advisor to U.S. Department of . Recently-acquired, industry-leading Z Backscatter® X-ray technology for Homeland Security on advanced security screening solutions provides new R&D platform technology development initiatives . Current pipeline & patents offer significant opportunity . Multiple new product introductions with sizeable revenue potential . Next-gen CT technology (RTT®) for hold-baggage screening targets large global market opportunity “…the best equipment we have out there.” . Pending patents to significantly expand existing key patent portfolio - U.S. Customs and Border Protection 5 Large Elite Global Customer Base United States Department of Defense Ben Gurion International Airport, Israel Taiwan Vatican Aviation •Police Abu Dhabi Customs Kremlin 6 Driving Growth Across Balanced Portfolio Security, Defense, Healthcare, Optical END MARKETS Communications, Consumer Products, Industrial Applications Healthcare 22% DIVISION CUSTOMERS Strong, diversified customer base Security SALES AS A % 56% OF OSI* Optoelectronics 22% PRODUCTS & Comprehensive product & service offerings SERVICES Product portfolio, engineering & manufacturing COMPETITIVE expertise, vertical integration, global sales Other Americas STRENGTHS 14% EMEA channel & service excellence 24% SALES BY GEOGRAPHIC Global reach with strong international presence U.S. 49% GEOGRAPHY* APAC 13% MULTIPLE Systems, solutions and turnkey model REVENUE MODELS * Based upon LTM 3/31/2017 third party net sales 7 Expanding, Vertically Integrated Footprint of Engineering, Manufacturing, Sales and Service Facilities AMERICAS 7 R&D EMEA 2 R&D ASIA 2 R&D 10 Manufacturing 5 Manufacturing 4 Manufacturing 11 Sales/Service 10 Sales/Service 6 Sales/Service 8 Double Digit Projected FY 2017 Revenue and EPS Growth Strong backlog, turnkey projects, significant cargo opportunities and expanded product portfolio projected to drive strong topline and earnings growth FY17 $ in millions (June 30 fiscal year) FY17 Guidance Guidance REVENUE EARNINGS PER SHARE 2 $950 - $970 $2.85 - $3.05 1 29 - 38% $1,000 15 -17% $3.00 $900 $830 $2.50 $800 $2.21 $700 $2.00 $600 $500 $1.50 $400 $1.00 $300 $200 $0.50 $100 $0 $0.00 FY 2016 FY 2017 FY 2016 FY 2017 1) Revenue guidance inclusive of approximately $95 million attributable to the acquisition of AS&E for a partial period in Q1 FY17 as well as the remainder of the year. 2) Excludes impairment, restructuring, other charges and the amortization of intangible assets acquired through business acquisitions, non-cash interest expense related to convertible debt, gain from the disposition of a business, net of tax. 9 Delivering Higher Visibility Service Revenue Large increase in higher visibility service sales, up 118% over FY 2012 driven primarily by turnkey business. Q1 FY17 acquisition of AS&E significantly grows base of highly profitable recurring services revenue. $ in millions SERVICE REVENUE SERVICE GROSS PROFIT $250 $250 $105 $100 $200 $80 $150 $60 $115 $100 $40 $37 $50 $20 $0 $0 FY 2012 FY 2016 FY 2012 FY 2016 10 Generating Strong Operating Cash Flow Cash generation invested to drive future growth and shareholder value Share Over $500 million repurchases 28% M&A of Operating Cash 30% USES OF CASH* Flow from 2012-Q3 2017 FY 2012 to YTD Capex Q3 2017 42% * Uses of cash includes cash generated from operations and proceeds from stock options, warrants and ESPP 11 Strong Cash Flow and Balance Sheet Provide Excellent Flexibility for Investment Disciplined cash management and investment approach. High margin, large-scale turnkey ramp-ups require large upfront capex but offer rapid payback. $287.5M million 1.25% convertible notes issued in February 2017. $ in millions CAPEX and M&A LEVERAGE RATIO $250 3.0 Gross Leverage Acquisitions Capex Net Leverage $203 2.5 $200 2.2 2.0 $163 $150 1.5 1.0 1.0 $100 0.6 $77 0.5 $67 0.2 0.0 0.1 $50