The Conceptual Design Activity (CDA) for the International Fusion Materials Irradiation Facility (IFMIF) has entered its second and final year, and an outline design has been developed. Initial evaluations of the potential of this high flux, high intensity D-Li source have shown that the main materials testing needs can be fulfilled. According to the materials testing needs, Vertical Test Assemblies will accommodate test modules for the high flux (0.5 liter, 20 dpa/a, 250-1000 °C), the medium flux (6 liter, 1-20 dpa/a, 250-1000 °C), the low flux (7.5 liter, 0.1-1 dpa/a), and the very low flux (> 100 liter, 0.01-0.1 dpa/a) regions. Detailed test matrices have been defined for the high and medium flux regions, showing that on the basis of small specimen test technologies, a database for an engineering design of an advanced fusion reactor (DEMO) can be established for a variety of structural materials and ceramic breeders. The design concepts for the Test Cell, including test assemblies, remote handling equipment and Hot Cell Facilities with capacity for investigating all irradiation specimens at the IFMIF site are described.