Investor Presentaiton

Diode Chips Produced Diodes: the Power Behind the Fiber Laser 12 Million 100% 90% 10 Million -85% COST 80% 70% 8 Million 60% 6 Million 50% 40% 4 Million 30% Diode Cost Reduction 20% 2 Million 10% 0 Million 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Tested Chip Production ••••Cost/Watt Decrease (2009 Base Year) Source: IPG Photonics Corporation IPG diodes are the lowest cost in the industry, empowering our Customers with © 2020 IPG Photonics • the HIGHEST power fiber lasers for the LOWEST cost per Watt In 2019 IPG transitioned to a new higher power chip reducing cost per watt and the level of required production to support a given level of revenue G PHOTONICS 16 A

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