Company Presentation

Power Integrations, Inc.
Nasdaq: POWI
February 2015

Forward-Looking Statements/Non-GAAP Metrics
These slides accompany an oral presentation by Power Integrations, Inc., which
contains forward-looking statements. Each statement relating to events that will or
may occur in the future is a forward-looking statement. The Company’s actual results
may differ materially from those suggested in the presentation. Information
concerning factors that could cause such a difference is contained in the Company’s
most recent reports on Form 10-K and 10-Q.
This presentation may also contain certain non-GAAP financial information.
Reconciliations of non-GAAP financial metrics to GAAP results are available at the end
of this presentation and/or on the investor page of the Power Integrations website,
http://investors.power.com (see “Historical Financials” data file).
©2015 Power Integrations | www.power.com 2

Secular Growth Story in Analog Semis
Leader in energy-efficient high-voltage
power conversion
Clean-tech enabler: efficient
appliances, LED lighting, DC motor
drives, renewable energy, electric
transportation
Expanding market opportunity with
higher-power products, rapid-charging
for mobile devices
Double-digit revenue CAGR since 2001

Comprehensive Expertise in High-Voltage
Systems &
Applications
Know-How
Integrated
Process
Technology
High-
Voltage
Technology
Ultra-simple power converters
Fewer components
Shorter design cycles
Easier to manufacture
Higher reliability
BOM cost similar to discrete
designs
Highly energy-efficientPower
Package
Innovations

Discrete power supply: 70 components
Equivalent power supply with POWI:
36 components, smaller board
Linear transformer:
weighs 12 oz.
Adapter with POWI:
weighs 2 oz.
Highly Integrated Power Converters
Replacing Legacy Technologies

0
100
200
300
400
500
600
700
800
U.S.PatentsGranted
Relentless Innovation
677 U.S. Patents
at 12/31/2014

Vast Addressable Market –
Power Conversion Is Needed Everywhere

Long-Term Secular Growth Drivers
Ongoing transition to IC-based power supplies
Integration saves labor and materials, improves reliability

Leading Transition to IC-Based Power Supplies
Linear Transformers
1970 1994
Discretes
1994 Today1970
Integrated
POWI
• iWatt/Dialog
• BCD/Diodes
• Active
• Leadtrend
• OnBright
• Fairchild
• Infineon
• ON Semi
• ST Micro
• NXP
PowerSupplyUnitVolume
Fairchild
Sanken
ST Micro
ON Semi
Infineon

InnoSwitch™
: A New Level of Integration
First IC to integrate primary and
secondary sides of power supply
across safety barrier
Enables drastic reduction in
component count, complexity
Highly energy-efficient
Secondary Primary

Energy-efficient electronics & appliances
Driven by standards and consumer awareness

Recognized Leader in Clean Technology
Member of clean-tech stock indices
The Cleantech Index (CTIUS)
Nasdaq Clean Edge Green Energy (CELS)
Ardour Global Index (AGIGL)
Twice named a top 20 sustainable stock
by SustainableBusiness.com
ENERGY STAR® award recipient
Star of Energy Efficiency award recipient

Energy Specs Continue to Tighten
U.S. Dept. of Energy tightening federal standards
for external power supplies
ENERGY STAR® “Most Efficient” label rewards top
performers
SEAD competition to recognize most efficient TVs
European standby power limitation tightened to
0.5 W in 2013
Traditional 40 W and 60 W bulbs banned in U.S.

“Zero” Series Zeroes Out Standby Waste
CAPZero™ eliminates waste from
X-cap bleed resistors
SENZero™ disconnects sense
resistors in main power supply
LinkZero™ cuts waste to 0.00 W in
chargers and auxiliary power
supplies

Energy Vampire vs. LinkZero™

LED lighting
Requires low-cost, efficient, reliable power supplies

Well-Positioned in LED Lighting
Traditional bulbs phasing out
LEDs need efficient, reliable drivers
Integration brings reliability, efficiency,
size advantage
LYTSwitch™ products offer highest level of
integration available

LED lighting
Requires low-cost, efficient, reliable power supplies
Expanding market opportunity
Rapid charging for mobile-device market
Higher-power products add ~$1B to addressable market

Rapid Charging: Emerging Trend in Mobility
Larger batteries causing extended downtime for charging
Qualcomm Quick Charge 2.0 cuts charge time up to 75%
Requires greater integration and efficiency vs. standard
chargers; higher dollar content
Conventional
Charging
Quick Charge 2.0
Quick Charge 2.0 PMIC
InnoSwitch™ + ChiPhy™
Interface Chip

Expanding Reach to Higher Power Levels
0W 500W5W 50W2W 20W 200W
CAPZero™/SENZero™/Qspeed™
Hiper™ Family
TOPSwitch™
TinySwitch™
LinkSwitch™ / InnoSwitch™
LYTSwitch™
LED Products

Radically Simplifying Power Supplies for PCs, TVs
HiperPFS™ and HiperTFS™ replace up to 100 components
HiperTFS + HiperPFS

More Silicon Content at Higher Power Levels
EMI Filter PFC Stage Main and Standby Stage
Main &
Standby
Controller
Boost Inductor
PFC
Controller
EMI Filter
Standby
Output
AC
Gate
Drive
SR
Main
Output
TNY
Before: Single IC for standby power supply

More Silicon Content at Higher Power Levels
EMI Filter PFC Stage Main and Standby Stage
Main &
Standby
Controller
Boost Inductor
PFC
Controller
EMI Filter
Standby
Output
AC
HiperPFS
HiperTFS
CpZ
Gate
Drive
SnZ
QSpeed
SR
Main
Output
HiperTFS™ main + standbyCapZero™ HiperPFS™ SenZero™ Qspeed™
Now: Up to five components, potential dollar content >5x higher

Acquisition Extends Power Range Further
Acquired CT-Concept in 2012
IGBT drivers for industrial
motors, renewable energy,
locomotives, DC transmission
Addressable market ~$500M;
now >10% of POWI revenue
Broadens POWI opportunity in
clean-power applications
SCALE™ drivers reduce component count, enhance efficiency, reliability

Spanning the Clean-Power Ecosystem
Energy Ecosystem
Energy
Generation
Energy
Transmission
Energy
Consumption
Wind Turbines
Solar Power
HVDC
Transmission
Motor Control
Hybrid Vehicles
Locomotive
Medical
End Markets
Power Semiconductors
IGBT module: Transistors
arranged in parallel to increase
switching capacity at very high
currents and high voltages
Driver optimizes
efficiency, operating
performance and lifespan
of the IGBT module
IGBT
ModuleDriver

Higher-Power Products Expand SAM to $2.5B
Consumer
Comms
Computer
Industrial
Mid-power applications in orange
High-power applications in green
● Desktop/server standby
● Desktop main
● Notebook adapters
● LCD monitors
● Printers
● LED general lighting
● LED street lights
● Smart meters
● Industrial control
● UPS
● Industrial motor drives
● Wind/solar inverters
● Electric trains/cars
● DC transmission
● White goods
● Air conditioners
● TV standby / TV main
● Small appliances
● Set-top boxes
● DVD players
● Game consoles
● Mobile phone chargers
● Cordless phone adapters
● Broadband modems
● VoIP phones
● Wireless routers

Well-Diversified Revenue Mix
23%
Computer
43%
Comms
2002 2014
18%
Comms
37%
Consumer
35%
Industrial
10%
Computer
Higher-margin industrial & consumer markets now >70% of revenues
24%
Consumer
9%
Industrial

Strong Cash Generation
0
10
20
30
40
50
60
70
80
90
100
2008 2009 2010 2011 2012 2013 2014
Cash Flow from Operations ($M)
One-time tax
payment

Strong Balance Sheet
10
15
20
25
30
35
Q3'08 Q4'09 Q1'11 Q2'12 Q3'13 Q4'14
Diluted Shares Outstanding (M)
At December 31, 2014
$175M cash and investments
Used $116M for Concept acquisition,
$23M for CamSemi acquisition
No debt
Quarterly dividend of $0.12/share
Diluted share count down 8% since
2008 on share repurchases
0
50
100
150
200
250
Q3'08 Q4'09 Q1'11 Q2'12 Q3'13 Q4'14
Cash and Investments ($M)

Power Integrations, Inc.
Nasdaq: POWI

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