2012_Analyst_Day_Presentation_FINAL

Silicon Power Solutions™
September 18th, 2012
Volterra Semiconductor
2012 Analyst Day

Safe Harbor Statements
2
 This presentation contains forward-looking statements based on current
expectations of Volterra. The words “expect,” “will,” “should,” “would,”
“anticipate,” “project,” “outlook,” “believe,” “intend,” and similar phrases as they
relate to future events are intended to identify such forward-looking
statements.
 These forward-looking statements reflect the current views and assumptions of
Volterra but are subject to various risks and uncertainties that could cause
actual results to differ materially from expectations. Such risk factors are
detailed in our filings with the Securities and Exchange Commission, including
our most recent quarterly report on Form 10-Q filed on August 1, 2012 for the
quarter ended June 30, 2012.
 Volterra assumes no obligation to update these forward-looking statements.
 This presentation includes non-GAAP financial measures. You can find the
most directly comparable GAAP financial measures and a reconciliation of the
differences between these non-GAAP financial measures and the most directly
comparable GAAP financial measures on our website at www.volterra.com

Agenda
Company Overview Jeff Staszak
Financials Mike Burns
Server & Storage/Networking & Telecom Bill Numann
Notebook Craig Teuscher
Product Showcase & Break
Technology Anthony Stratakos
Sales Tom Truman
Q & A Volterra Team
3

4
Key Messages
 We remain healthy as the anemic economic
recovery continues.
 It has delayed but will not prevent Volterra from
achieving our long-term growth, market strategy and
goals
 Focus in-depth on Volterra’s opportunities and
technology

Reiterate Q3 guidance
Expect Q3 revenue, EPS and GM within guidance
Revenue $42M to $45M
Non-GAAP EPS 28 to 34 cents
Gross Margin 58.5% to 59%
Market end demand remains soft overall
5

Management Team Presenters
Jeffrey Staszak
President and Chief Executive Officer
Mike Burns
SVP, Finance &
CFO
William Numann
SVP, Server and
Storage &
Communications
Product Groups
Craig Teuscher
SVP, Notebook
Product Group
Anthony Stratakos
SVP, Advanced
R & D
Thomas Truman
VP, WW Sales
6

Volterra History
 1996: Founded in Berkeley, CA
• Original 4 technical founders still employed at VLTR
 1999: Introduced our first products
 2000: Enabled server, storage & communication markets
 2001: First full year of revenue
 2004: IPO & First year of profitability
 2006: First notebook revenue
 2008: First $100M revenue year
 2010: First $150M revenue year
 2012: More Records Projected
• 12th straight year of revenue growth
• 9th straight year of profitability
• ~ $1B in cumulative revenue since 2001
• > 600M units shipped since 2001
• Introducing 4th target market segment
7

2012 Another record year in revenue projected
8
$4
$16
$25
$44
$54
$75 $75
$104 $105
$154
$0
$50
$100
$150
In Millions
40% CAGR since 2001; 24% CAGR since 2003
2010
$155
2002 2004 2006 2008 2012

2013 to 2015: More of The Same
 2011 – Notebook drove growth
• ~$21M in 2010 to >$50M in 2011
 2012 – Revenue Growth Continues
• Servers: Intel Romley & AMD Ramps
• Notebooks: Intel Chief River
 2013/15 – Existing & New Growth Initiatives
• Servers, Notebooks, Communications & New Market
9
Our Next Revenue Milestone in Sight: $250M

Investment Highlights
10
Large, growing power management opportunity
Physics is driving adoption of our technology
Advanced power management leader
with proprietary technology
Diverse markets and applications
Blue chip customers
Attractive financial model

Mike Burns
CFO
Volterra Financial Performance:
Expanding Profits and Investing for Growth

Volterra 5-Year Financial Scorecard
12
Q2-07 Q2-12 Performance
Revenue:
Total $75M $166M  Up >2X
Server & Storage $55M $97M  Up ~2X
Notebook $3M $59M  Up ~20X
Networking & Comms $10M $10M ~Flat
Financials:
Gross Margin 55% 58-9%  Up 3-4%
Operating Margin 8% 20%  Up 12%
EPS $0.32 $1.28  Up 4X
Cash $50M $147M  Up 3X
Note: Q2 07 column based on trrailing12 months, excluding impact of one-time charge in Q2 07.
Q2 12 column revenue, %s & eps based on trailing twelve months as of Q2 2012. Notebook contains small amount of graphics revenue. Cash balance Q2 2012.
We will continue strong performance

Volterra Financial Agenda
• Consistent Profit Model
• Favorable Revenue Mix
• High Gross Margins
• Efficient Supply Chain
• Disciplined Tech Investments
• Market-Focused Organization
• World-Class Productivity
• Strong Cash Generation
13

Consistent Profit Model
14
Expand our profit margins
Note: 2012 is consensus analyst estimates. Model is company long-term operating model. %s are non-gaap.
• Gradual expansion
• Moderate leverage
• Spending discipline
• Positive outlook
% of Revenue Model 11 12*
Gross Margin 55-60% 58% 58-9%
R&D 18-22% 22% ~23%
SG&A 12-15% 15% ~13%
Litigation -- 3% ~2%
Operating Margin 22-26% 18% ~20%
Model

Favorable Revenue Mix
0%
100%
10 11 12 13
Desktop & Workstation
Portable & Consumer
New Market
Comms & Networking
Server & Storage
15
Target a favorable mix
Note: 2012-13 are forecasts. Desktop & workstation (graphics) included in portable & consumer starting 2011, minimal in 2012-13.
Mix
• Gradual shift
• Server ramp
• Share gains
• New market

High Gross Margins
40%
45%
50%
55%
60%
65%
07 08 09 10 11 12 13
Gross Margin
16
Sustain high gross margin
• Differentiated value
• Gen7 benefits
• Higher yields
• Reduced costs
model
Note: Non-gaap gross margin. 2012 and 2013 are forecasts. 2007 excludes one-time charge.

Efficient Supply Chain
17
Optimize our supply chain
• Multi-sourcing
• Cost savings
• Additional capacity
• Future opportunities
0%
100%
Q4 10 Q4 11 Q4 12 2013
Other
Lower-Cost
China
Note: Chart represents approximate % units back-end operation (bump, assembly, probe, test) performed in China. Q4 12 and 2013 are forecasts.
China Progress
target

Efficient Supply Chain
18
Optimize our supply chain
0
50
100
Q4 10 Q2 12
Finished Goods Work in Process
InventoryDays
• Consistent management
• Balanced control
• Upside support
• Product transitions
target

Disciplined Technology Investments
19
R&D
Next gen products Advanced R&D
New market vector Protection ICs
new
initiatives
• Performance boosts
• Breakthrough technologies
• Expanding SAM
• Strong ROI
Note: % of non-gaap R&D investment.
Fund innovative new products

Market-Focused Organization
20
Invest across four markets
Note: current org % includes those in dedicated market-focused groups (excludes corporate, operations, quality etc.
0%
100%
Current Revenue Current Org
New Market Vector:
expanding sam
Networking & Comms:
increasing investment
Consumer & Portable:
expanding products
Server & Storage:
extending leadership
Diversification

World-Class Productivity
21
SG&A Spending
Salaries Other Variable Discretionary
Note: % of non-gaap sales, general & admin expense excluding litigation.
Industry median is company estimate based on benchmarking of 40 leading semiconductor companies
flexibility
Improve productivity each year
$300
$400
$500
$600
$700
09 10 11 12
Revenue per Employee $K
industry median

Strong Cash Generation
22
Increase buyback this quarter
$0
$50
$100
$150
$200
Q2 07 Q2 12
Note: Chart represents cumulative stock buyback amount and cash & investments balance $M.
$M
$-
$15
$30
$45
$60
$75
Recent $15M
Increase
Prior
Q3
$M
Buyback
Authorization
Cash
3x cash
Q3: most buyback activity since Q4 08
$54m done thru Q2

Volterra Financial Summary
 Expand our profit margins
 Target a favorable mix
 Sustain high gross margin
 Optimize our supply chain
 Fund innovative new products
 Invest across four markets
 Improve productivity each year
 Increase buyback this quarter
23
Expanding profits and investing for growth

Bill Numann
Sr. VP, Product Groups
Server & Storage/Networking & Telecom
Infrastructure Market Segments

Our Business Strategy & Results
 Volterra's marketing strategy in 2001 was to focus on
infrastructure business
• Server & Storage
• Networking & Telecom
 We identified these markets where we could add value and
build a large, stable base of revenue
• 80 to 90% of our business between 2001 and 2007
 Infrastructure SAM was large enough to reach critical mass
 We became the fastest growing HPA company to $100M
• Linear Technologies: 13 years (1981-1993)
• Maxim Integrated Products: 11 years (1983-1993)
• Volterra: 8 years! (2001-2008)
25

Our Business Thesis Still Holds True
 Moore’s law will drive the need and market expansion
for voltage regulators with the following 3 qualities
• Higher Performance
• Higher Power Densities
• Higher Energy Savings
 This thesis has not changed in these market segments
for the foreseeable future
 We actually are seeing the need for our technology
accelerating in these market segments
• Memory in servers
• Wireless standard consolidation
• Networking ASICs
26

Server & Storage Market Segment

Server & Storage Overview
 Our largest market segment
 Market share gains with each server generation
 Romley ramp has been slower than normal
 SAM expansion on next gen servers
 Stable & growing business with large OEMs & ODMs
 Market share gains on Brickland
 Competitor landscape has not changed
 Positioned well for Grantley and future server trends
28

S&S Revenue History
~20% CAGR Rate 2003 to 2011
29
$0
$20
$40
$60
$80
$100
$120
ThurleyBensley
Boxboro
Clearwater
Caneland4 CPU(EX):
2 CPU(EP): Foster Romley
Brickland

Romley Ramp Status & Outlook
 Today’s mix is less than 50% Romley
• Romley ramps slower than previous Intel ramps impacted by
macro-economic environment
• OEMs have staggered release of their Romley platforms
 Market share gains will be more visible once our
customers are at full run rate
 Full run rate for Romley is expected to be achieved
during the 1st half of 2013
30

Volterra Market Share Gains on Romley at HP
Rack Servers
 Won Vcore and Memory on 2nd highest volume server
• 1U rack DL360
Blade Servers
 Won Vcore, Memory & POLs on 3rd highest volume server
• Blade BL460
Hyperscale Servers
 Won Vcore, Memory & POLs on HP’s fasting growing
servers
• Hyperscale (High density and scalable family)
• SL140 family(Formally SL170) and SL230 family(Formally SL390)
31

HP’s DL360 1U Romley Rack Server
20 VLTR ICs on HP’s 2nd highest volume server
32

OEM x86 Market Share Trends
33
0%
5%
10%
15%
20%
25%
30%
35%
40%
2003 2004 2005 2006 2007 2008 2009 2010 2011
HP
Dell
IBM
Cisco
Huawei
Others
Source: IDC
“Other OEM” category has been shrinking

0
2
4
6
8
10
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Global Server Shipments
34
Source: IDC
Millions
CAGR 2002 to 2008 ~12%
CAGR 2002 to 2011 ~ 8%
CAGR 2008 to 2011 ~ 1%

35
Server & Storage SAMs
SAM Analysis
Million
 Memory content continues to grow in servers
 Using 5% CAGR for server and storage SAM over next 5 years
$0
$200
$400
$600
2012 2017
2012 SAM > $400M

Our EP X86 Server SAM Expansion
Application Thurley Romley Grantley
Vcore Baseline Increase Decrease
Memory Baseline Increase Increase
POLs Baseline Increase Same
Protection ICs Not Applicable Not Applicable Increase
ASP per Server ~$40 ~$50 >$50
36

2012 Server Market Split by Platform
37
Intel EP/EN
IBM Power
Intel EP 4S / EX
Supercomputers
AMD
Intel 1S
Intel Itanium
Oracle SPARC
Source: IDC

Server Unit Volumes by Form Factor
Growth from 2002 to 2008 came from both Racks and Blades
38
0
1
2
3
4
5
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Racks
Blades
Towers
Million
Blades took 7 years to grow to 1M annual shipments
Source: IDC

Micro Servers
 What are they?
• Lower power( 10 to 20 watt), 32 bit quad core compute nodes
• Still in development stage
• Some OEMs announced proprietary solutions
 Competing with high power, virtualized compute nodes
• Well established, standardize infrastructure and software
• EP processors continue to improve performance/watt
• Intel has announced integration of a higher bandwidth fabric
 How long and how big will they get?
• Blades could be a good example to use as a model
 Volterra plans
• Working with customers & Intel on derivatives of existing products
39

Brickland & Grantley
Brickland: 4 CPU, x86 high end server
• Our opportunity is >$100 per server
• Uses 3 generations of CPU or about 5 year production life
• We have gained market share over previous generation
• Intel is forecasting 2H 2013 launch
Grantley: 2 CPU, x86 mainstream server
• Our opportunity is still >$50 per server with Haswell processor
• Supports 2 generations of CPUs or about 3 years production life
• Major OEMs and ODMs are evaluating our Gen 7 technology
• Intel is forecasting 2014 launch
40

2P Server Content
We support all embedded power functions in main stream servers
Integrated POLs Protection ICs
Multiphase Chipsets for Vcore & Memory

Next Generation Products
Brickland & Grantley
Multiphase Chipsets for Vcore & Memory
• Thermally enhanced package technology
• 65A per phase enabling highest power density
• ~6W of system energy savings over previous generation
Integrated POLs
• Programmable system configurations
• Peak efficiencies over 95% for system supplies
Integrated Protection ICs
• Multiple current ratings and scalable up to 1000 watts
• 25% board area of competing discrete solutions
42
All 3 product families are on our Gen 7 process technology

Our Main Competitors
43
Large power management companies
Server &
Storage

Our Value Propositions
Energy
Savings
Power
Density
Flexibility
and
Immunity
System
Protection
and
Telemetry
44
Our integrated power solutions lead in all 4 quadrants
>6 watt
power
savings
per server
Up to 40%
smaller
footprint
Integrated
current &
temperature
sensors
High bandwidth
regulator with a
digital interface

S&S Segment Outlook
 Over next 2 to 3 quarters Romley mix will increase and we
will see the results of our market share gains
 Brickland will launch at the second half of 2013 and provide
additional growth with our market share gains
 New Power PC and Grantley platforms will launch in 2014
providing us opportunity to grow our market share
 We expect continued Server and Storage growth
45

Networking & Telecom Market Segment

Networking & Telecom Overview
 Our smallest market segment
 Mobile data explosion drives wireless and networking
infrastructure investments
 Great future for our technology value proposition as density
becomes #1 challenge
 Small market share with a very large & fast growing SAM
 We doubled our investment in this segment to drive growth
 Our investment will start paying off in by end of 2013

N&T Revenue History
48
 Revenue has been basically flat over the past 5 years
 N&T segment has been recognized as a significant growth area
 Doubled our R&D investment and expanded business development activities
$0
$4
$8
$12
$16
$20
2007 2008 2009 2010 2011
Millions

Industry Trends in Wireless Network Architecture:
Servicing Data Hungry Smart Phones, Tablets & Notebooks
49
10X increase in bandwidth to keep pace with network traffic growth

50
Industry Trends in Wireless Network Protocols:
Multiple Standards Will Co-Exist
• Operators will continue to deploy and operate CDMA, GSM, UMTS (HSPA) and LTE
• UMTS (HSPA) and LTE will be dominant by 2016 in highest volume markets
Integrated multi-standard support drives density demands
GSM/WCDMA/
UMTS
CDMA
upgrade
CDMA

Antennae
Industry Trends In Wireless and DataComm Equipment:
High Performance, High Density Equipment
51
Voice Modem Cards
Data Modem Cards
Radio Controller Cards,
aka Baseband Controller
Digital Channel Cards:
BTS Cabinet,
aka Base Station
Controller (BSC)
Radio Transceivers
BTS Always Co-located
with Tower/Antennae
Data Modem, Voice Modem, Radio
Control, Multiple Fiber Interfaces, and
Multiple Backhaul Interfaces all
contained on a single PCB, sometimes
stacked two- or three-high.
More data processing in less space fuels the need for our technology
BBU

Industry Trends Favor Volterra Technology
Demand for Data Continues to Grow Exponentially
Devices: Smartphones, Tablets, PCs & Servers
Content: Streaming Video & Live TV
Data Processing Capability Doubles Every 2 Years
Integration at the board level–multiple functions per board
Integration at the ASIC level—multiple ASICS combined
Biggest Challenges:
Size, thermal management and accurate telemetry
Solution:
Our Integrated Power Technology
52

New Wireless Network Architecture
53RNC
-48V DC
power
Power cable
Power cable
Trunk cable
Fiber or CPRI high-speed
signal cable
RRU
BBU
Grounding cable
-48V/ 24V
DC power
Grounding cable
3 Key System Elements
• BBU: Base Band Unit
• RRU: Remote Radio Unit
• RNC: Radio Networking Controller

Router/Switch Architecture
Many different configurations and standards
• Large carrier class routers to 1RU switches
• Ports per board continue to grow in all systems
• Networking ASICs are increasing in power
• These trends also drive the need for high density regulators
54
Routers Switches

Future Growth Drivers
 Demand for mobile data will intensify over the next 5 years
• Global Smart Phone Penetration (2012) < 15%
• Global Tablet penetration (2012) <2%
 User market growth projections:
• Mobile broadband subscriptions CAGR (2011-2106): 32%
• Projected mobile voice/data traffic CAGR (2011-2016): 66%
 Equipment deployment projections
• Projected WCDMA/LTE RAN revenue CAGR (2011-2016): 14%
• Projected networking segment CAGR (2011-2016): 7%
55
Demand for mobile media will drive infrastructure build out

Networking & Telecom SAM
56
2012 SAM > $300M
New SAM Analysis
 SAM estimates doubled from last year
 System power requirements expanded based on new architectures
 Added China large OEMs to our SAM which had a large impact
 Conservatively estimating SAM will grow at a 5% CAGR
$0
$100
$200
$300
$400
$500
2011 2012 2017
Million

57
Server &
Storage
Networking &
Telecom

N&T Segment Outlook
 2012 market share is ~3% based on new SAM
• Plenty of room for strong growth over the next several years
 Focused on infrastructure equipment which takes 2 to 3
years for revenue generation
 Based on our 2011 business development investments
this segment will return to growth in 2013
 Both North America expansion and first China wins
 Our 2012 design ins are gaining momentum and will
translate into accelerated growth in 2014 & 2015
58

Notebook Market Segment
Craig Teuscher
Sr. VP, Product Group

60
Notebook Segment Overview
 We offer differentiated technology for integrated, high
frequency low-voltage power conversion in notebooks
 We have experienced rapid growth in this segment over
the past five years
 We see significant opportunities for future growth through
market share gains and expansion of our product portfolio
 6 of the top 10 notebook OEMs currently ship Volterra
products in production. Our 7th and 8th major OEMs will be
announced later today

61
Our Strategic Objectives
 Become the leading supplier of integrated low voltage
power solutions for
• Commercial notebook platforms
• Differentiated consumer notebook platforms
 Expand and drive adoption of full-platform integrated power
solutions including
• Regulators (Vcore, POLs, system supplies)
• Protection and distribution ICs (for battery and adaptor
interface)
• Other power management functions

62
Notebook Revenue Growth (2007-2011)
Over the past 5 years, revenues have grown from $3M to $50M
We are expecting a 6th year of record sales in 2012

Major Customers and Platforms
Commercial and Consumer
12”, 13”, 14”, 15”, and 17” models
2 new OEMs will be announced later today
63

64
Server &
Storage
Consumer &
Portable
(Notebook)
Networking &
Telecom

65
Key Market Trends
 The notebook market is currently experiencing a period of rapid
change driven by the emergence of tablets:
• New form factors (smaller, thinner, lighter, convertibles)
• New features (e.g. “Instant On”, “Turbo Mode”)
• Longer battery life
• Changing power requirements (new processors and platforms)
• Increased cost pressures

66
Impact of Key Market Trends
Market Trend Requirement Impact
New form factors Higher power density +
“Instant On”, “Turbo Mode” Higher performance +
Longer battery life Higher efficiency +
Lower power processors Fewer amps -
Cost pressures Lower cost solutions -
Overall impact on the commercial
notebook market is unclear at this time

67
Market Status & Opportunities
 Notebook revenue currently represents <10% market share
 Performance, density, and battery life drive adoption of our technology
 In 2012, we have sampled new system VR and protection IC products to our
customers
 We will expand our product portfolio with new power management functions in
2014 & 2015
A Large and Growing Market Opportunity

Enabling Industry-Leading Performance,
Density, and Battery Life
HP Pavilion 7000
7 VLTR IC’s power all functions
Lenovo Thinkpad X1 Carbon
Acer Aspire Timeline Ultra
Dell Inspiron 14Z Ultrabook

Summary
 Volterra is the technology leader high performance, low voltage
notebook power solutions
 We have experienced rapid growth in this segment during the
past five years
 The notebook market is undergoing a period of rapid change
driven by the emergence of tablets
 Our strategy for growth:
• Expand our list of major OEM customers
• Proliferate our solutions at existing customers
• Expand our product portfolio with new applications for
integrated power
74

Product Showcase & Break

Server & Storage
HP Proliant DL360
Rack Server
Dell PERC8
Raid Controller

Consumer & Portable (Notebook)
Acer Aspire
Timeline Ultra
Lenovo Thinkpad
X1 Carbon

Consumer & Portable (Notebook)
HP Pavilion
7000
Dell Inspiron 14z
Ultrabook

Anthony Stratakos
Chief Scientist & Sr. VP of Advanced R&D
Volterra Technology

Advanced R&D Responsibilities
 Drive core technology roadmap
• Innovation in process, package, architecture, topology
• Improve efficiency, performance, density and cost-per-amp
 Incubate new technologies to enable new markets
• Notebook incubated in 2003-5 to ~$50M in 2011 sales
• Incubating new market vector since 2010
80

Differentiated Technology in S/S & N/T
Smaller, higher performance and more energy efficient
Conventional discrete powerVolterra’s integrated power
82
+
 Still two alternatives to power high-performance digital IC’s
• Volterra integrated solution vs. discrete solutions

+
Differentiated Technology in Notebooks
Smaller, higher performance and more energy efficient
Conventional discrete powerVolterra’s integrated power
83
 Still two alternatives to power high-performance digital IC’s
• Volterra integrated solution vs. discrete solutions

Differentiated Technology
Similar Advantages in All Target Markets
S/S & N/T
 Integrated vs. discrete
 Smaller
 More efficient
 Energy cost savings
have <3-month ROI
compared to discrete
Notebooks
 Integrated vs. discrete
 Smaller
 More efficient
 Energy savings improve
battery run-time and
allow reduced battery
capacity
84
VLTR chips are paid for in energy cost savings alone

Aggressive Technology Roadmap
 Innovation of the entire solution
• Process, package, architecture, topology
85
~7x improvement in density in 7 generations
Gen 1 Gen 3 Gen 5 Gen 7
0
3
6
Normalized
Amps/Area
DENSITY

86
Discrete solutions require 1.5x-2.5x the space on Grantley
0
3
6
Competition
on Grantley
DENSITY
Normalized
Amps/Area

87
~4x improvement in power loss in 7 generations
0
Normalized
PowerLoss
2
4
POWER LOSS

88
VLTR has 30%-65% lower power dissipation on Grantley
0
2
4
Competition
on Grantley
POWER LOSS
Normalized
PowerLoss

89
~20x improvement in cost-per-amp in 7 generations
0
10
20
Normalized
Amps/$Mfg.Cost
COST-EFFECTIVENESS

90
VLTR has 20%-30% lower mfg. cost per amp on Grantley
0
10
20
Competition
on Grantley
Normalized
Amps/$Mfg.Cost
COST-EFFECTIVENESS

Continued Power Management Innovation
Required in Servers
 Per 2P Romley server
• >$2 in VR energy cost for every $1 in VR BOM
• VR’s account for 30%-40% of motherboard area
 For the entire industry-standard server market
• >$2B of energy cost due to VR power dissipation
• >50 acres of motherboard area devoted to VR
VR energy efficiency and density drive adoption
91

Gen 6 (Romley) to Gen 7 (Grantley) Improvements
 Technology improvements
• Migration from 0.35um to proprietary 0.18um process
• Thermally-enhanced packages
• Improved architecture and circuits
• 27% improvement in power dissipation
• 40% improvement in cost-per-amp
• 20% improvement in density
 Benefits
• Gen 7 energy cost savings has <3-mo ROI vs. discrete solution
• Gen 7 pays back in ~2 years vs. a cost-free discrete solution
92

Continued Power Management Innovation
Required in Notebooks
 Differentiated notebooks
• Portability & Battery run-time
 VR’s in thin & light Chief River notebooks
• 35-50% of motherboard area
• 10-20% of battery consumption
VR energy efficiency and density drive adoption
93

Gen 6 (Huron River) to Gen 7 (Chief River) Improvements
 Technology improvements
• Migration from 0.35um to proprietary 0.18um process
• Thermally-enhanced packages
• Improved architecture and circuits
• 60% improvement in energy dissipation
• 40% improvement in cost-per-amp
• 20% improvement in density
 Benefits
• Gen 6: substantial density & energy advantages compared to
discrete solutions
• Gen 7 decreases footprint up to 20% compared to Gen 6
• Gen 7 extends battery run-time up to 10% compared to Gen 6
94

Continued Innovation
 Gen 6 in production
 Gen 7 design-in on Brickland/Grantley & Shark Bay
 Gen 8 in product design
 Gen 9-11 in Advanced R&D
95

Continued Innovation
 Gen 6 in production
 Gen 7 design-in on Brickland/Grantley & Shark Bay
 Gen 8 in product design
 Gen 9-11 in Advanced R&D
5-year roadmap promises accelerated improvements
96
Gen 1 Gen 11
Density Power Dissipation
Cost-Effectiveness

Desired Characteristics for New Market Vector
 Large market experiencing critical problems that can be
solved through innovation in power IC’s
• Performance limitations
• Energy waste
• System cost
• Density
 Volterra’s core IP provides differentiation and value
• High integration in CMOS with flip-chip
 Opportunity for growth exceeding Volterra’s historical
98

New Market Vector: Energy
 Batteries
 Fuel cells
 Smart grid
 Solar
Many opportunities for innovation with integrated power to
improve performance, energy efficiency & cost
99

First Products: PV Energy Cost Reduction IC’s
 Fundamental architecture shift
• VLTR chips integrated within a solar panel produce more energy
• Granularity down to the solar cell level
 Reduces overall solar installation cost
• Chips can be paid for in installation cost savings alone
 Increases energy production
Improves cost per kWh (LCOE)
100
PV: Photovoltaics (solar)
LCOE: levelized cost of energy ($ per kilowatt-hour (kWh))

PV Cell Maximum Power Point
 Each PV cell has its maximum power point (MPP)
 The maximum power is achieved when the optimal
current is drawn from the cell
101
PV cell
Electrical
Load
I+
V
_
V, P
IP = V * I I=IMP
V=VMP
P=PMAX
V = voltage; I = current; P = power
Pmax = maximum power, also called MPP (maximum power point) of solar cell
Vmp, Imp = solar cell voltage and current at maximum power point

Conventional PV System Architecture
 Panel is comprised of many cells connected in series
 Installation is comprised of many panels
 One inverter performs MPPT on the entire array
102
….
MPPT: Maximum Power Point Tracking describes the function of the electrical load that
finds the maximum power from the solar power source

Limitations of Conventional Architecture
 Each cell has its own maximum power current
 Max power current varies among cells in the system
 A single current, I, flows through each PV cell
103
Current, I
….
Current, I
The weakest cell can limit the current of the entire system

Illustrative Example
104
Current capability
Cell 1: 7A
Cell 2: 5A
Cell 3: 3A
 3 cells with different current capabilities: 3A, 5A, 7A

Current capability
Cell 1: 7A
Cell 2: 5A
Cell 3: 3A
MPPT
105
 Cells connected in series with one MPPT
• Forces equal current through each cell
I
I
I
I

Current capability
Cell 1: 7A
Cell 2: 5A
Cell 3: 3A
MPPT
3A
Current delivered = capability of weakest cell
3A
3A
3A
106
 Cells connected in series with one MPPT
• Forces equal current through each cell
• Weakest cell chokes current of stronger cells

Power capability
Cell 1: 2V*7A = 14W
Cell 2: 2V*5A = 10W
Cell 3: 2V*3A = 6W
MPPT
3A
Power delivered: current limited by weakest cell
2V*3A=6W
2V*3A=6W
2V*3A=6W
Power = 18W
107
 With 2V solar cells
• 30W available
• 18W delivered
• 12W wasted

Improved PV System Architecture
 VLTR chips in panels extract MPP at the sub-panel level
• Isolate PV cells from each other
 Granularity down to the cell level
108
….
Weak cells no longer limit production of the system
VLTR chips within panels

Current capability
Cell 1: 7A
Cell 2: 5A
Cell 3: 3A
Current delivered = capability of each cell
Illustrative Example of Volterra’s Value
109
 VLTR chips extract maximum power of each cell
 PV cells are isolated from each other
 Weak cells no longer limit power of stronger cells
VLTR
VLTR
VLTR
+
7A
5A
3A

Power capability
Cell 1: 2V*7A = 14W
Cell 2: 2V*5A = 10W
Cell 3: 2V*3A = 6W
Power delivered = capability of each cell
Illustrative Example of Volterra’s Value
110
 With 2V solar cells
• 30W available
• 30W delivered
• 12W that would otherwise be wasted is recovered
VLTR
VLTR
VLTR
+
14W
10W
6W
Power = 30W

Volterra’s Value Proposition
 Reduced PV energy cost
• Reduced balance-of-system cost (installation, wiring, hardware)
• Increased energy harvest from system with same power rating
 Scalable to future PV roadmap
• As the efficiency of PV cells improves, VLTR solution is equally
effective
111

Competition
 No known competing IC solutions
 Conventional architecture is primary competition
• >98% of today’s volume
• Discrete panel-level MPPT “Microinverters” and “DC Optimizers”
address a niche market
 Volterra addresses ~35% of today’s PV market
112

VLTR Advantages vs. Panel-Level MPPT
 VLTR IC vs. discrete solution  smaller & lower cost
 Integrated in panel vs. separate box  lower cost
 >10x distribution of MPPT function  more energy
More than 2x the energy gain at 1/5th the cost
Volterra addresses ~35% of the global PV TAM
113

Defensible Technology Advantage
 New architecture and product class with no known IC
competition
 Leverages Volterra’s core IP
• Small, highly integrated power IC’s deliver high current & power
• Uses Volterra’s proprietary process and package technology
• Many architectures and circuits borrowed from existing Volterra
products
 New IP pending
114

Large PV System TAM
 VLTR opportunity is 5~10 cents per Watt
 >$1B TAM in 2012 and growing at >15% CAGR
 SAM estimated at 35% of TAM today
115
Source: EPIA average forecast, May, 2012
GWInstalled
Yearly New Installations
GW: Gigawatt = 1 billion watts of power

PV End-Market Characteristics
 PV panels are a commodity today
 Many PV panel suppliers with little differentiation
 2x capacity vs. demand  price competition & low PV
panel margins  faster end-market growth
• PV panel $/W has fallen by ~5x from 2008-12
• Explosive end-demand growth: 50% CAGR 2008-12
Volterra provides differentiation in a crowded solar market
116

Why We’ll Make Money in Solar
 VLTR provides value and differentiation for the customer
• Lower system cost & increased energy harvest
• Energy improvements = >5 yrs of cell efficiency gains
 Low manufacturing cost
• 0.18um CMOS process and low-cost flip-chip packaging
• Small die size (similar to 3-5A PoL)
• Several cents of external components
Expect gross margins at or above corporate model when
PV energy cost = cost of burning coal
117

Tracking to Plan
 Product development
 Customer development and qualification
First revenue expected in 2013
Excellent long-term growth prospects
118

Product Development Progress
 Talented R&D team with 15 engineers
 4 products sampling
 2 products qualified
 Executing to 3-year product roadmap
119

Customers
 Sampled nine customers
• PV panel manufacturers and system houses
 Five field trials in progress
 Value proposition proven
 First 2 customers aiming for production launch in 2H13
• Lengthy certification process prior to production launch
 On track for first revenue in 2013
120

Summary: Our Internal Investment Thesis
 Large and rapidly-growing market
• 2017 SAM forecast to be > $700M
 Compelling value proposition
• Cost reduction AND energy gain
• Gains are cumulative to future PV system improvements
 Attractive margins: Meets or exceeds corporate margin goals
• Even when PV energy costs have fallen to grid parity
 Differentiated and protected technology
• Leverages much of Volterra’s core IP & new IP pending
• Unique architecture with no known direct competition
121

Summary
 Rolling 5-year technology roadmap in place for our core
businesses
• Accelerating improvements in efficiency, density & cost
• We expect our technology advantages to widen
 New Energy Market Vector is tracking to plan
• Opportunity for continued growth with diversification at high
margins
122

Tom Truman
VP, Worldwide Sales
Sales

Sales Strategy
 Focus on Tier-1 OEMs/ODMs in large target markets
 Gain entry with technology, then execute
 Expand over successive product generations
 Repeat until we achieve top supplier status
 Sustain position with innovation & execution
125

126
Worldwide Sales Channels
 North America & Europe
• Direct sales force, strategic accounts
 Asia
• Direct sales force for strategic accounts
• Selective use of manufacturers reps in new
geographies (China & Korea)
• Stocking reps for logistics support:
 Taiwan & China
 Japan
 Southeast Asia

Key Customers Served – US
127
South Central
HP
IBM
Dell
Cray
Cisco
ALU
Western US
Cisco
Juniper
IBM
ALU (2)
Intel
Midwest
HP
IBM
ALU
LSI
Cray
Eastern US
IBM (2)
ALU (2)
Dell
Cray
Lenovo

Key Customers Served – Asia
128
Taiwan
HP
IBM
Dell
Foxconn
Inventec
Wistron
Quanta
Compal
China
Huawei (6)
ZTE (4)
Lenovo
Foxconn
Inventec
Japan
Lenovo
Sony
Fujtisu
Hitachi
IBM

Key Customers – Server & Storage
129

Key Customers – Mobile Computing
130

Key Customers – Communications
131

Growth Drivers – Server & Storage
 Virtualization
• Driving trend in DIMMs/CPU socket (4  8  12+)*
• Impact: increased total power, increased density
 Storage Localization
• Driving trend in HDDs/CPU socket (4  8  24+)*
• Impact: increased total power, increased density
 Scale-out Data Center Applications
• Driving trends: performance per watt per spend within a given
volume, plus storage localization
• Impact: density and energy efficiency matter
132*(Bensley  Thurley  Romley)

Opportunities – Server & Storage
 Growing significant share in Romley generation
 Added 2 new key customers in 2012 – impact 2H’13
 Gaining share in Brickland cycle
 Opportunities
• Platform cycles: Grantley, 2014-2015 impact
• New platforms
• New applications
• New customers
• We will have the broadest, most compelling offerings to date
133

Growth Drivers – Mobile Computing
Size, weight and battery life differentiation
accelerate adoption
134
Acer Aspire S5
Samsung Series 7 Slate
Lenovo X1

Opportunities: Notebook
 Platform Cycles: Shark Bay, Crescent Bay
(2H’13 - 2014)
 Growth strategy
• Continued share gain in existing applications
• New applications in battery management and other power
management functions
• New customer acquisition
135
Broad range of opportunities going forward

Networking and Telecom: Growth
 Increased investment and focus
 Focus on Infrastructure applications
 Outstanding business development progress
 First production programs in China OEMs – 1H’13
 Winning in routers, switches, and base stations
136
Diversification reduces exposure to market swings

137
Future Growth Plans
 Continued investment in regional leadership
 Expansion of global sales and applications team in line
with revenue growth
• Hiring focus in US and Asia
• Grow to support energy market
 Maintain key account focus
• Increase dollar content per application
• Proliferate onto more platforms with higher volumes
• Capture new large customers

Summary
 Core sales strategy is unchanged
 Wide range of opportunities in Server/Storage and
Mobile Computing
 Focused on large, high-growth opportunities in
Networking, Telecom and Energy
 Expect continued growth as we execute our plan
138

2012_Analyst_Day_Presentation_FINAL

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