Clearfield : Investor Presentation – January 2023

NASDAQ: CLFD

January 2023

Important Notice and Disclaimer

Important Cautions Regarding Forward-Looking Statements

Forward-looking statements contained herein and in any related presentation or in the related Earnings Release are made pursuant to the safe harbor provisions of the Private Litigation Reform Act of 1995. Words such as "may," "will,"

"expect," "believe," "anticipate," "estimate," "outlook," or "continue" or comparable terminology are intended to identify fo rward-looking statements. Such forward looking statements include, for example, statements about the Company's future revenue and operating performance, anticipated shipping on backlog and future lead times, future availability of components and materials from the Company's supply chain, the impact of the Rural Digital Opportunity Fund (RDOF) or other government programs on the demand for the Company's products or timing of customer orders, the Company's ability to add capacity to meet expected future demand, and trends in and growth of the FTTx

markets, market segments or customer purchases and other statements that are not historical facts. These statements are based upon the Company's current expectations and judgments about future developments in the Company's business. Certain important factors could have a material impact on the Company's performance, including, without limitation: adverse global economic conditions and geopolitical issues could have a negative effect on our business, and results of operations and financial condition; our planned growth may strain our business infrastructure, which could adversely affect our operations and financial condition; the acquisition of Nestor Cables and integration activities could adversely affect our operating results; the COVID-19 pandemic has significantly impacted worldwide economic conditions and could have a materialadverse effect on our business, financial condition and operating results; we rely on single-source suppliers, which could cause delays, increases in costs or prevent us from completing customer orders; fluctuations in product and labor costs which may not be able to be passed on to customers that could decrease margins; we depend on the availability of sufficient supply of certain materials, such as fiber optic cable and resins for plastics, and global disruptions in the supply chain for these materials could prevent us from meeting customer demand for our products; we rely on our manufacturing operations to produce product to ship to customers and manufacturing co nstraints and disruptions could result in decreased future revenue; a significant percentage of our sales in the last three fiscal years have been made to a small number of customers; further consolidation among our customers may result in the loss of some customers and may reduce sales during the pendency of business combinations and related integration activities; we may be subject to risks associated with acquisitions; product defects or the failure of ou r products to meet specifications could cause us to lose customers and sales or to incur unexpected expenses; we are dependent on key personnel; cyber-security incidents on our information technology systems, including ransomware, data breaches or computer viruses, could disrupt our business operations, damage our reputation, and potentially lead to litigation; our business is dependent on interdependent management information systems; to compete effectively, we must continually improve existing products and introduce new products that achieve market acceptance; changes in government funding programs may cause our customers and prospective customers to delay, reduce, or accelerate purchases, leading to unpredictable and irregular purchase cycles; intense competition in our industry may result in price reductions, lower gross profits and loss of market share; our success depends upon adequate protection of our patent and intellectual property rights; if the telecommunications market does not expand as we expect, our business may not grow as fast as we expect; we face risks associated with expanding our sales outside of the United States; a nd other factors set forth in Part I, Item IA. Risk Factors of Clearfield's Annual Report on Form 10-K for the year ended September 30, 2021 as well as other filings with the Securities and Exchange Commission. The Company undertakes no obligation to update these statements to reflect actual events unless required by law.

Trademarks

The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of such products or services.

Financial and Other Information

Certain historical financialinformation contained in this Presentation has been taken from or prepared based on unaudited historical financial statements of the Company. Accordingly, such financial information may not be included in, may be adjusted in, or may be presented differently in the registration statement filed by the Company with the SEC, or any a mendment or supplement thereto.

NASDAQ:CLFD 2

OUR MISSION:

Enabling the lifestyle better broadband provides

WHAT WE DO:

Clearfield provides fiber protection, fiber management and fiber delivery solutions that enable rapid and cost- effective fiber-fed deployment throughout the broadband service provider space

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Clearfield at a Glance

Company Overview and Key Investment Highlights

Leading provider of fiber protection, fiber management and fiber delivery solutions that enable rapid and cost-effective broadband deployment

• Multi-billionBroadband Fiber Market with Strong Near-Term Tailwinds
• Market Leadership Position in Underserved Rural Broadband
• Differentiated, Scalable Platform For End-to-End Fiber Management & Delivery
• Strong History of Accelerating Growth and Profitability
• Seasoned Management Team With Deep Cable and Telecom Expertise

Strong Growth and Profitability in Massively Expanding Market

Annual Revenue ($M)

		$270.9M
	$140.8M
$93.1M
FY2020A	FY2021A	FY2022A

41.7% 23.6% 18.2%

Gross Margin	Operating Margin	Net Margin
(2022A)	(2022A)	(2022A)

14 Years of Internally Funded Growth and Profitability

Select Customers:

(1,200+ customer base)

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Why We Win

• Singularly Focused on Serving the Fiber Market
• Attractive Total Cost of Ownership through Reduced Installation Cost and Maintenance Time
• Our Testing Shows FastPassTM Approach Cuts Install Time Required for Homes Passed by 50%
• Ease, Speed and Cost of Deployment
• Delivery of a Comprehensive Solution
• Commitment to Quality and Customers
• Recent Acquisition of Nestor Cables Highlights Investment to Integrate and Optimize Solutions and Mitigate Supply Chain Risk

Providing Optimized Price Performance and Deep Technical Expertise

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