AXT Presentation

Morris S. Young Chief Executive Officer

Raymond Low

Chief Financial Officer

May 2013

2 AXT, INC. 2013

Safe Harbor Statement

This presentation contains forward-looking information about the Company ’ s business and financial outlook. Forward-looking information addresses matters that are subject to risks and uncertainties. In addition to the risks associated with developing complex technology, the Company’s future results will depend on a variety of factors, including the cancellation or modification of major contracts; the timing of significant orders; the cancellation of orders and returns of product; the ability of the Company to bring new products to market; the timing of product releases; product announcements by the Company ’ s competitors and other competitive factors. For further discussion of risks and uncertainties relating to the Company, please see the Company’s filings with the SEC

3 AXT, INC. 2013

AXT is a substrate provider for the fast-growing smartphone, Light

Emitting Diode (LED) and Concentrated Photo Voltaic (CPV) solar cell industries

We are a low-cost manufacturer based in China

We have a differentiated capability in Vertical Gradient Freeze (VGF) technology

We aim to increase market share with existing customers while adding new customers

Our Joint Ventures (JVs) in China provide additional value, leverage cost and supply expansion advantages

Consolidation in the wireless supply chain has created business opportunities/uncertainties

Brief Synopsis

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HB LEDs

Wireless

Raw Substrates Epi-layer Epi-layer + Devices Systems Materials

Compound Semiconductor Value Chain

Photo voltaics

Ga

As

Ge

pBN (Crucible)

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Product And Market Applications

Product Market % of AXT Revenue

Growth Rate 2012/2016

Market Size 2012/2016

AXT Share 2012

GaAs Gallium Arsenide

Handset

LED, Lasers

27%

31%

CAGR 10%

CAGR 12%

$140M / $205M

$160M / $252M

17%

17%

InP Indium Phosphide Fiber Optics 7% CAGR 15% $52M / $91M 11%

Ge Germanium Solar Cell 10% CAGR 13% $59M / $98M 15%

In 2012 Raw Material sales, primarily 99.99% Gallium, made up approx. 25% of AXT’s revenue.

Source: Strategy Analytics and Management estimates

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Smartphones are projected to grow >25% CAGR through 2016, other wireless devices such as phone tablets may provide future growth opportunities

Smartphones and phone tablets will need 4-6 x GaAs content versus voice-only phones

3G, 3G+, 4G phones are heavily promoted by industry giants, such as Apple, Samsung, Google, Microsoft, Verizon, AT&T

GaAs Semi-Insulating (S.I.) Substrate

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GaAs substrates still dominate the wireless PA/switch market

4 suppliers in GaAs SI substrates: AXT, 2 in Japan, 1 in Germany SOI devices are making inroad into the GaAs switch market Power efficiency, linearity, higher speed capability and faster turn around

design cycle are the forte of GaAs technology Consolidation in the GaAs supply chain may create business opportunities

GaAs S.I. Substrate Competitive Landscape

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GaAs makes red and yellow LEDs

Applications are very diverse and include: traffic lights, automobile instrumentation, automobile tail lights, cell phone backlighting, signage, display, printers/copy machines, remote controls, novelty products, direct lit LED TVs and solid state lighting

Recent price reduction in LED industry will accelerate LED light bulb adoption

New applications are emerging, including CPV applications for terrestrial solar cells

GaAs Semi-Conducting (S.C.) Substrate

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4 suppliers in GaAs SC substrates: AXT, 2 in Japan, 1 in China Strong price pressure in certain mass markets leads to lower prices

with large market size

Certain niche markets require high precision high quality products which lead to higher prices with moderate market opportunities

GaAs S.C. Substrate Competitive Landscape

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Germanium (Ge) Majority of Ge requirements is for the satellite solar cell market AXT is qualified through epitaxial device houses that supply the

US, European, Russian and Chinese satellite solar cell markets

CPV terrestrial solar cell market is poised to begin meaningful growth in 2013

Ge Substrate Business

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Indium Phosphide (InP) AXT VGF InP has low dislocation density and low internal strain The major application is in long wavelength optoelectronic devices

for optical fiber communications

AXT InP is poised to grow market share in laser diodes, photodetectors and InP based high speed electronics applications

InP Substrate Business

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Source: Strategy Analytics and Management estimates

Total Market Opportunity

154 169 186 205

179200

225251

6776

86

97

60

69

79

91

460

515

576

644

0

100

200

300

400

500

600

700

0

100

200

300

400

500

600

700

2013 2014 2015 2016

$ Mill

ions

SI GaAs SC GaAs Ge InP Total

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Six JV operations - Supply critical raw materials

Ga, As, Ge, PBN, B2O3

Give insight into pricing trends and provide volume guarantees Provide gross margin protection during periods of significant raw

material pricing increases 3 more JV’s were created by AXT’s JVs in China JVs have increased capacities in the last business cycle Ga price have declined but the demand volume is still strong

Joint Ventures Provide Additional Value and Market Advantages

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AXT’s Compelling Business Model

Key material supplier to fast growing materials market

Low cost in labor, facilities, and raw material

Expansive capacity to gain market share

VGF technology that AXT pioneered with 26 years experience

JVs provide advantages in capacity, pricing visibility, & ability to hedge against raw material pricing fluctuations

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Financial Overview

AXT, Inc.

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Statement Of Operations

(In millions – except margins and EPS) Q1 ‘12 Q2 ‘12 Q3 ‘12 Q4 ‘12 Q1 ’13

Revenue $23.5 $25.2 $20.8 $18.9 $22.4

Gross Profit $8.2 $7.5 $5.5 $3.7 $3.5

Gross Margin 34.9% 29.8% 26.3% 19.5% 15.6%

Net Income (loss) $1.6 $1.3 $0.9 ($0.8) ($2.4)

Diluted EPS (loss) $0.05 $0.04 $0.03 ($0.02) ($0.08)

Note – Reported under US GAAP

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Balance Sheet

2010 2011 2012 Mar ‘13 Cash and investments

$41.0 $40.6 $50.1 $49.4

Net Acct. Receivable

$23.1 $18.0 $17.9 $17.0

Net Inventory $36.0 $46.0 $40.4 $38.8

Total Assets $140.6 $162.5 $167.6 $166.3

Total Debt/Credit Line $ - $ - $ - $ -

NOTE: Reported under US GAAP

(in millions)

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THANK YOU!