Post on 16-Jul-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
©2015 Power Integrations | www.power.com 3
Comprehensive Expertise in High-Voltage Systems &
Applications Know-How
Integrated Process
Technology
High- Voltage
Technology
©2015 Power Integrations | www.power.com 4
Ultra-simple power converters Fewer components Shorter design cycles Easier to manufacture Higher reliability
BOM cost similar to discrete designs
Highly energy-efficient
Power
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
©2015 Power Integrations | www.power.com 5
0
100
200
300
400
500
600
700
U.S
. Pat
ents
Gra
nted
Relentless Innovation
609 U.S. Patents 492 Non-U.S. Patents
at 12/31/2013
©2015 Power Integrations | www.power.com 6
Vast Addressable Market – Power Conversion Is Needed Everywhere
©2015 Power Integrations | www.power.com 7
Long-Term Secular Growth Drivers Ongoing transition to IC-based power supplies
Integration saves labor and materials, improves reliability
©2015 Power Integrations | www.power.com 8
Leading Transition to IC-Based Power Supplies
Linear Transformers
1970 1994
Discretes
1994 Today 1970
Integrated POWI
• iWatt/Dialog • BCD/Diodes • Active • Leadtrend • OnBright
• Fairchild • Infineon • ON Semi • ST Micro • NXP
Pow
er S
uppl
y U
nit V
olum
e
Fairchild Sanken ST Micro ON Semi Infineon
©2015 Power Integrations | www.power.com 9
Long-Term Secular Growth Drivers
Ongoing transition to IC-based power supplies Integration saves labor and materials, improves reliability
Energy-efficient electronics & appliances Driven by standards and consumer awareness
©2015 Power Integrations | www.power.com 10
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
©2015 Power Integrations | www.power.com 11
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
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
©2015 Power Integrations | www.power.com 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
©2015 Power Integrations | www.power.com 13
Long-Term Secular Growth Drivers Ongoing transition to IC-based power supplies
Integration saves labor and materials, improves reliability
Energy-efficient electronics & appliances Driven by standards and consumer awareness
LED lighting Requires low-cost, efficient, reliable power supplies
©2015 Power Integrations | www.power.com 15
Well-Positioned in LED Lighting Traditional bulbs phasing out LEDs need efficient, reliable drivers
Integration brings reliability, efficiency, size advantage
2007 2009 2011 2013
LED Lighting Revenue >20% Growth in 2013
©2015 Power Integrations | www.power.com 16
Long-Term Secular Growth Drivers Ongoing transition to IC-based power supplies
Integration saves labor and materials, improves reliability
Energy-efficient electronics & appliances Driven by standards and consumer awareness
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
©2015 Power Integrations | www.power.com 17
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
©2015 Power Integrations | www.power.com 18
Expanding Reach to Higher Power Levels
0W 500W 5W 50W 2W 20W 200W
CAPZero™/SENZero™/Qspeed™
Hiper™ Family
TOPSwitch™
TinySwitch™
LinkSwitch™ / LinkZero™
LinkSwitch-PL/PH / LYTSwitch™ LED Products
©2015 Power Integrations | www.power.com 19
Radically Simplifying Power Supplies for PCs, TVs
HiperPFS™ and HiperTFS™ replace up to 100 components
HiperTFS + HiperPFS
©2015 Power Integrations | www.power.com 20
More Silicon Content at Higher Power Levels EMI Filter PFC Stage Main and Standby Stage
Main & Standby Controller
Boost Inductor
PFC Controller
EMI Filter StandbyOutput
ACGate Drive
SR
Main Output
TNY
Before: Single IC for standby power supply
©2015 Power Integrations | www.power.com 21
More Silicon Content at Higher Power Levels EMI Filter PFC Stage Main and Standby Stage
Main & Standby Controller
Boost Inductor
PFC Controller
EMI Filter StandbyOutput
AC
HiperPFS
HiperTFS
CpZ
Gate Drive
SnZ
QSpeed
SR
Main Output
HiperTFS™ main + standby CapZero™ HiperPFS™ SenZero™ Qspeed™
Now: Up to five components, potential dollar content >5x higher
©2015 Power Integrations | www.power.com 22
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
©2015 Power Integrations | www.power.com 23
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 Module
Driver
©2015 Power Integrations | www.power.com 24
Higher-Power Products Expand SAM to $2.5B
Consumer
Comms Computer
Industrial
Mid-power applications in orange High-power applications in green
● Desktop/server standby ● Desktop main ● Notebook adapters ● LCD monitors ● Printers
● LED general lighting ● LED street lights ● Smart meters ● Industrial control ● UPS ● Industrial motor drives ● Wind/solar inverters ● Electric trains/cars ● DC transmission
● White goods ● Air conditioners ● TV standby / TV main ● Small appliances ● Set-top boxes ● DVD players ● Game consoles
● Mobile phone chargers ● Cordless phone adapters ● Broadband modems ● VoIP phones ● Wireless routers
©2015 Power Integrations | www.power.com 25
0
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100
150
200
250
300
350
2001 2003 2005 2007 2009 2011 2013
Reve
nues
($M
)
©2015 Power Integrations | www.power.com 26
Consistent Track Record of Growth
Outperforming the Peer Group
-10%
0%
10%
20%
30%
40%
2007 2008 2009 2010 2011 2012 2013 CAGR
Annual Revenue Growth POWIAnalog Semis (SIA)
©2015 Power Integrations | www.power.com 27
Well-Diversified Revenue Mix
23% Computer
43% Comms
2002 2014 (nine months)
17% Comms
37% Consumer
35% Industrial
11% Computer
Higher-margin industrial & consumer markets now >70% of revenues; cellphone chargers down from 40% to ~10%
24% Consumer
9% Industrial
©2015 Power Integrations | www.power.com 28
Growing Cash Flow
0102030405060708090
100
2008 2009 2010 2011 2012 2013
Cash Flow from Operations ($M)
One-time tax payment
©2015 Power Integrations | www.power.com 29
Strong Balance Sheet
050
100150200250
Q3'08 Q3'11 Q3'14
Cash and Investments ($M)
10
15
20
25
30
35
Q3'08 Q3'11 Q3'14
Diluted Shares Outstanding (M)
At Sept. 30, 2014
$214M cash and investments Used $116M for Concept acquisition
No debt
Quarterly dividend of $0.12/share
>$300M of repurchases since 2004 Diluted share count down 6% since 2008