Company Presentation

Power Integrations, Inc.
Nasdaq: POWI
November 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
Ultra-simple power converters
Fewer components
Shorter design cycles
Easier to manufacture
Higher reliability
BOM cost similar to discrete
designs
Highly energy-efficient
Systems &
Applications
Know-How
High-Voltage
Semiconductor
Technology

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
748 U.S. Patents
at 9/30/2015

Power Everywhere – A Vast Addressable Market

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 effective 2016
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 incandescent bulbs banned in U.S.

“Zero” Series Eliminates Waste
CAPZero™ removes 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™

Energy-efficient electronics & appliances
Driven by standards and consumer awareness
Expanding market opportunity
Rapid charging for mobile-device market
LED lighting – requires efficient, reliable power supplies
Higher-power products add ~$1B to addressable market

Rapid Charging – Emerging Trend in Mobility
More power needed to charge bigger batteries faster
Demands ICs with high integration and maximum efficiency
InnoSwitch™ + ChiPhy™ Interface Chip = More POWI content
Conventional
Charging
With PI chipset

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

Expanded Power Range = Larger TAM
0W 500W5W 50W2W 20W 200W
TOPSwitch™
TinySwitch™
LinkSwitch™ / InnoSwitch™
LED Driver Products – LYTSwitch™
AC/DC
LED
IGBT
50kW 1MW100W
CAPZero™ SENZero™Qspeed
SCALE™ IGBT Drivers
Hiper™ Family

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

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

IGBT Drivers for High-Power Market
Acquired CT-Concept in 2012
Addressable market ~$500M; now
accounts for ~10% of POWI revenues
Addressing applications of 30 KW to 1 GW
Broadens POWI opportunity in clean-
power applications
High-efficiency industrial motors, renewable
energy, electric transportation, DC transmission
SCALE™ drivers reduce component count, enhance efficiency, reliability

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

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

Worldwide Field Support and Operation
Headquartered in San Jose, California
Design Centers in San Jose, Ottawa, Switzerland, UK
16 field labs worldwide, each with in-house EMI test capability
Excellent field technical support worldwide
Assembly Subcontractor
Wafer Foundry (Oki, EPSON, XFAB)
PI Locations
All Vendors and PI Are ISO9000 Certified

Well-Diversified Revenue Mix
23%
Computer
43%
Comms
2002 2015
(Nine Months)
23%
Comms
37%
Consumer
33%
Industrial
7%
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 Q4'10 Q1'13 Q2'15
Diluted Shares Outstanding (M)
At September 30, 2015
$151M cash and investments
Used $116M for Concept acquisition,
$23M for CamSemi acquisition
No debt
Quarterly dividend of $0.12/share
Diluted share count down 10% since
2008 on share repurchases
0
50
100
150
200
250
Q3'08 Q1'12 Q3'15
Cash and Investments ($M)

Power Integrations, Inc.
Nasdaq: POWI

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