Powi investor presentation july 2014

Power Integrations, Inc.
Nasdaq: POWI
July 2014

© Copyright 2014 Power Integrations 2
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.powerint.com (see “Historical Financials” data file).

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

 Ultra-simple power converters
• Fewer components
• Shorter design cycles
• Easier to manufacture
• Higher reliability
 BOM cost similar to discrete
designs
 Highly energy-efficient
Comprehensive Expertise in High-Voltage

Highly Integrated Power Converters
Replacing Legacy Technologies
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.

0
100
200
300
400
500
600
700
U.S.PatentsGranted
Relentless Innovation
609 U.S. Patents
492 Non-U.S. Patents
at 12/31/2013

Vast Addressable Market –
Power Conversion Is Needed Everywhere

Long-Term Secular Growth Drivers
1. 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
•Fairchild
•Sanken
•ST Micro
•ON Semi
•Infineon POWI
•iWatt/Dialog
•BCD/Diodes
•Active
•Leadtrend
•OnBright
•Fairchild
•Infineon
•ON Semi
•ST Micro
•NXP
PowerSupplyUnitVolume

2. 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 tightens federal
standards for external power supplies
 ENERGY STAR® “Most Efficient” label
rewards top performers
 New battery-charger standards in
California in 2013
 European standby power limitation
tightened to 0.5 W in 2013
 Traditional 40 W and 60 W light bulbs
banned in U.S. as of 2014

“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™

3. 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
2007 2008 2009 2010 2011 2012 2013
LED Lighting Revenue
>20% Growth in 2013

3. LED lighting
• Requires low-cost, efficient, reliable power supplies
4. 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%
 POWI is lead strategic partner on the charger side
 Higher dollar content than a standard charger
Conventional
Charging
Quick Charge 2.0
Quick Charge 2.0
PMIC
Charger Interface Chip +
Power Conversion Chip

Expanding Market with Mid-Power Products
0W 500W5W 50W2W 20W 200W
CAPZero™/SENZero™/Qspeed™
Hiper™ Family
TOPSwitch™
TinySwitch™
LinkSwitch™ / LinkZero™
LinkSwitch-PL/PH / LYTSwitch™
LED Products
LOW-POWER MID-POWER

Radically Simplifying Mid-Power Converters
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
CONCEPT drivers reduce component count, enhance efficiency, reliability
 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

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

Consistent Track Record of Growth
0
50
100
150
200
250
300
350
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Revenues ($M)

Outperforming the Peer Group
-10%
0%
10%
20%
30%
40%
2007 2008 2009 2010 2011 2012 2013 CAGR
Annual Revenue Growth
POWI
Analog Semis (SIA)

Well-Diversified Revenue Mix
25%
Consumer
23%
Computer
43%
Comms
2002
2013
21%
Comms
35%
Consumer
34% Industrial
10%
Computer
Higher-margin industrial & consumer markets now >2/3 of revenues;
cellphone chargers down from 40% to ~10%

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

Strong Balance Sheet
 $212M cash and investments
• Used $116M for Concept acquisition
 No debt
 Quarterly dividend of $0.12/share
 $286M of repurchases since 2004
• $26M in Q2 2014 (avg. price <$50/share)
• Diluted share count down 5% since 2008
0
50
100
150
200
250
Q3'08 Q2'14
Cash and Investments ($M)
10
15
20
25
30
35
Q3'08 Q2'14
Diluted Shares Outstanding (M)
At June 30, 2014

Power Integrations, Inc.
Nasdaq: POWI

Powi investor presentation july 2014

Recommended

Recommended

More Related Content

What's hot

What's hot (15)

Viewers also liked

Viewers also liked (20)

Similar to Powi investor presentation july 2014

Similar to Powi investor presentation july 2014 (20)

Recently uploaded

Recently uploaded (20)

Powi investor presentation july 2014