This document provides an overview of Power Integrations, Inc. It discusses Power Integrations' focus on energy-efficient power conversion, the secular growth drivers in their markets including the transition to IC-based power supplies and increasing demand for energy efficiency. It also outlines their product portfolio and technology leadership in areas such as LED lighting, mobile device charging, and industrial motor drives. Financial details are provided showing Power Integrations' consistent revenue growth and cash generation as well as their strong balance sheet position.

1. Power Integrations, Inc.
Nasdaq: POWI
January 2014

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).
© Copyright 2014 Power Integrations
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3. Secular Growth Story in Analog Semis
 Focused on 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
© Copyright 2014 Power Integrations
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4. 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
© Copyright 2014 Power Integrations
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5. Highly Integrated Power Converters
Replacing Legacy Technologies
Equivalent power supply with POWI:
36 components, smaller board
Discrete DVD power supply:
70 components
Linear
transformer:
weighs 12 oz.
© Copyright 2014 Power Integrations
Adapter with POWI:
weighs 2 oz.
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6. Relentless Innovation
600
534 U.S. Patents
390 Non-U.S. Patents
U.S. Patents Granted
500
at 12/31/2012
400
300
200
100
0
© Copyright 2014 Power Integrations
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7. Vast Addressable Market –
Power Conversion Is Needed Everywhere
© Copyright 2014 Power Integrations
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8. Long-Term Secular Growth Drivers
1. Ongoing transition to IC-based power supplies
•
Integration saves labor and materials, improves reliability
© Copyright 2014 Power Integrations
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9. Leading Transition to IC-Based Power Supplies
Power Supply Unit Volume
• Fairchild
• Sanken
• ST Micro
• ON Semi
• Infineon
Integrated
POWI
20%
Discretes
• Fairchild
• Infineon
• ON Semi
• ST Micro
• NXP
• iWatt/Dialog
• BCD/Diodes
• Active
• Leadtrend
• OnBright
Linear Transformers
1970
© Copyright 2014 Power Integrations
1994
9
1994 Today
80%

10. Long-Term Secular Growth Drivers
1. Ongoing transition to IC-based power supplies
• Integration saves labor and materials, improves reliability
2. Energy-efficient electronics & appliances
• Driven by standards and consumer awareness
© Copyright 2014 Power Integrations
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11. Energy Specs Continue to Tighten
 ENERGY STAR® “Most Efficient” label
rewards top performers
 New CEC battery-charger standards
in 2013; U.S. to tighten federal
standards for external power supplies
 European standby power limitation
tightened to 0.5 W in 2013
 Traditional 40 W and 60 W light bulbs
banned in U.S. starting 2014
© Copyright 2014 Power Integrations
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12. “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
© Copyright 2014 Power Integrations
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13. Energy Vampire vs. LinkZero™
© Copyright 2014 Power Integrations
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14. Long-Term Secular Growth Drivers
1. Ongoing transition to IC-based power supplies
• Integration saves labor and materials, improves reliability
2. Energy-efficient electronics & appliances
• Driven by standards and consumer awareness
3. LED lighting
• Requires low-cost, efficient, reliable power supplies
© Copyright 2014 Power Integrations
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15. Well-Positioned in LED Lighting
 Traditional bulbs phasing out
 LEDs need efficient, reliable drivers
 Integration brings reliability, efficiency,
size advantage
LED Lighting Revenues ($M)
25
20
15
10
5
0
2007
2008
2009
© Copyright 2014 Power Integrations
2010
2011
2012
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16. Long-Term Secular Growth Drivers
1. Ongoing transition to IC-based power supplies
• Integration saves labor and materials, improves reliability
2. Energy-efficient electronics & appliances
• Driven by standards and consumer awareness
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
© Copyright 2014 Power Integrations
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17. Rapid Charging: Emerging Trend in Mobility
Charger Interface Chip +
Power Conversion Chip
Conventional
Charging
Quick Charge 2.0
PMIC
 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
© Copyright 2014 Power Integrations
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Quick Charge 2.0

18. Expanding Market with Mid-Power Products
LOW-POWER
MID-POWER
Hiper™ Family
CAPZero™/SENZero™/Qspeed™
TOPSwitch™
TinySwitch™
LinkSwitch™ / LinkZero™
LED Products
LinkSwitch-PL/PH / LYTSwitch™
0W
2W
© Copyright 2014 Power Integrations
5W
20W
50W
18
200W
500W

19. Radically Simplifying Mid-Power Converters
HiperTFS + HiperPFS
HiperPFS™ and HiperTFS™ replace up to 100 components
© Copyright 2014 Power Integrations
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20. More Silicon Content at Higher Power Levels
EMI Filter
PFC Stage
Main and Standby Stage
Boost Inductor
Main
Output
Gate
Drive
EMI Filter
AC
Standby
Output
SR
Main &
Standby
Controller
PFC
Controller
TNY
Before: Single IC for standby power supply
© Copyright 2014 Power Integrations
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21. More Silicon Content at Higher Power Levels
EMI Filter
PFC Stage
Boost Inductor
Main and Standby Stage
QSpeed
HiperTFS
CpZ
Main
Output
SnZ
Gate
Drive
EMI Filter
AC
SR
Main &
Standby
Controller
PFC
Controller
HiperPFS
CapZero™
HiperPFS™ SenZero™ Qspeed™
HiperTFS™ main + standby
Now: Up to five components, potential dollar content >5x higher
© Copyright 2014 Power Integrations
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Standby
Output

22. Concept Deal Extends High-Voltage Leadership
 Acquired CT-Concept in 2012
 IGBT drivers for industrial
motors, renewables,
locomotives, DC transmission
 Addressable market ~$500M;
now ~10% of POWI revenue
 Broadens POWI opportunity in
clean-power applications
CONCEPT drivers reduce component count, enhance efficiency, reliability
© Copyright 2014 Power Integrations
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23. Spanning the Clean-Power Ecosystem
Energy
Ecosystem
Energy
Generation
Energy
Transmission
Energy
Consumption
End Markets
Wind Turbines
Solar Power
Power
Semiconductors
HVDC
Transmission
Driver
Motor Control
Hybrid Vehicles
Locomotive
Medical
Driver optimizes efficiency,
operating performance and
lifespan of the IGBT module
© Copyright 2014 Power Integrations
IGBT
Module
23
IGBT module: Transistors arranged
in parallel to increase switching
capacity at very high currents and
high voltages

24. Higher-Power Products Expand SAM to $2.5B
● LED general lighting
● LED street lights
● Smart meters
● Industrial control
● UPS
● Industrial motor drives
● Wind/solar inverters
● Electric trains/cars
● DC transmission
Consumer
Comms
Industrial
Computer
● Desktop/server standby
● Desktop main
● Notebook adapters
● LCD monitors
● Printers
© Copyright 2014 Power Integrations
● White goods
● Air conditioners
● TV standby / TV main
● Small appliances
● Set-top boxes
● DVD players
● Game consoles
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● Mobile phone chargers
● Cordless phone adapters
● Broadband modems
● VoIP phones
● Wireless routers
Mid-power applications in orange
High-power applications in green

25. Consistent Track Record of Growth
Revenue ($M)
320
280
240
200
160
120
80
40
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
© Copyright 2014 Power Integrations
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26. Outperforming the Peer Group
Annual Revenue Growth
POWI
Analog Semis (SIA)
40%
30%
20%
10%
0%
-10%
2007
© Copyright 2014 Power Integrations
2008
2009
2010
26
2011
2012 6-year
CAGR

27. Recent Outperformance Masked by EndCustomer Mix in Cellphone Chargers
Year/Year Revenue Growth
10%
9%
5%
5%
2%
0%
2%
-7%
0%
0%
POWI
POWI ex-cellphone
POWI organic ex-cellphone
Analog Semis (SIA)
-10%
2011
© Copyright 2014 Power Integrations
2012
27

28. Well-Diversified Revenue Mix
2013 (Nine Months)
2002
35%
Consumer
25%
Consumer
23%
Computer
43%
Comms
34% Industrial
21%
Comms
10%
Computer
Higher-margin industrial & consumer markets now >2/3 of revenues;
cellphone chargers down from 40% to ~10%
© Copyright 2014 Power Integrations
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29. Consistent Cash Flow Generation
Cash Flow from Operations ($M)
100
90
Effect of onetime tax
payment
80
70
60
50
40
30
20
10
0
2008
© Copyright 2014 Power Integrations
2009
2010
2011
29
2012

30. Strong Balance Sheet
At September 30, 2013
Cash and Investments ($M)
 $180M cash and investments
250
• Used $116M for Concept acquisition
200
150
 No debt
100
50
 Quarterly dividend increasing to
$0.10 in Q1 2014
0
Q3'08
Q1'11
Q3'13
Diluted Shares Outstanding (M)
 $260M of repurchases since 2004
• Average price of $23
• 6% net reduction in shares outstanding
35
30
25
(Feb. 2004 – Feb. 2013)
20
15
10
Q3'08
© Copyright 2014 Power Integrations
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Q1'11
Q3'13

31. 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
© Copyright 2014 Power Integrations
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32. Power Integrations, Inc.
Nasdaq: POWI