monolithic power systems_2016-11-02 e motion analog power systems and positioning breakthroughs

November 2, 2016

Michael Hsing, CEO

Forward-Looking Statements

Simple, Easy Solutions

This presentation includes forward-looking statements that involve risks and uncertainties, including our

belief in continued expansion of our product lines, advances in our technology, anticipated market

opportunities, gross margin targets, net & operating margin targets, inventory targets, continuing business

diversification, growth and opportunities in China and Taiwan, and increasing sales penetration in Japan,

Korea, the U.S., Singapore and Europe. Other forward-looking statements can be identified by terms

such as “would,” “could,” “may,” “will,” “should,” “expect,” “Wall Street estimates,” “intend,” “plan,”

“anticipate,” “believe,” “estimate,” “predict,” “potential,” “targets,” “target ranges”, “seek,” or “continue,” the

negative of these terms or other variations of such terms. These statements are only predictions based

on our current expectations and projections about future events. Because these forward-looking

statements involve risks and uncertainties, there are important factors that could cause our actual results,

level of activity, performance or achievements to differ materially from the results, level of activity,

performance or achievements expressed or implied by the forward-looking statements. In this regard, you

should specifically consider the risks identified in our most recent 10-K in the section entitled “Risk

Factors,” including the risks, uncertainties and cost of litigation and risks related to fluctuations in our

operating results.

Outstanding Organic Revenue Growth ($M)

$5 $8 $12

$24

$48

$99 $105

$134

$161 $165

$192 $197

$214

$238

$283

$333

Korean TV Biz

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$219

15.9%Analog 3 Yr CAGR 8.3% (SIA)

2015: MPS 17.9%

vs. Analog 1.9%

MPS 3 Yr CAGR


TXN

ONNN

ADI

VSH

MXIM

FCS

LLTC

ISIL

SLAB

SMTC

IXYS

POWI

OIIM

MPWROrganicGrowth

AOSL

DIOD

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

10% 20% 30% 40% 50% 60% 70% 80%CY

20

14

-C

Y2

01

5 R

eve

nu

e G

row

th

2015 Gross Margin%

2015 Analog Industry Landscape


Growth Strategy

% of Revenue 2011 2012 2013 2014 2015 16Q3 LTModel

Consumer 55.0% 44.8% 42.0% 43.4% 43.6% 41.0% *

Communications 22.8% 23.8% 23.5% 22.9% 19.5% 15.2%

Storage /

Computing15.5% 19.4% 20.1% 16.3% 17.0% 22.0%

Industrial /

Other6.7% 12.0% 14.4% 17.4% 19.9% 21.8%

* Revenue from newer high value consumer markets expected to grow as % of revenue


Market New Market SAM

Server $500M

Networking / Telecom $600M

Battery Management $750M

Modules $1B

SSD $100M

ACDC $1B

Automotive $6B

Motion Control $2B

Total New Market SAM $12B


SAM Expansion 2010 – September 2015

% 2012 2013 2014 2015 16Q3Long Term

Model

Revenue, YoY 8.8% 11.4% 18.7% 17.9% 16.7% 20-25%

Rev $ $213.8M $238.1M $282.5M $333.1M $106.5M

Gross Margin

**53.2% 54.0% 54.6% 55.0% 55.3% 53-58%

R&D ** 19.6% 18.3% 17.6% 16.5% 15.3% 14-16%

SG&A ** 18.1% 17.1% 15.0% 13.7% 12.2% 13-15%

Op. Margin ** 16.8% 18.7% 21.5%┼ 24.5% 27.7% 25-30%

Net Margin ** 15.8% 17.3% 20.2%┼ 23.2% 25.8% 22-27%

┼ Excluding the $9.5m payment received from O2 Micro in Q1 2014

** Non GAAP

Long Term Model (Non-GAAP) – 2013


Long Term Model (Non-GAAP) September 2015

%L-T Model

September 2015

Revenue, YoY 20+%

Gross Margin ** Mid to High 50’s%

Operating Expenses **Increase 50 – 60%

of revenue growth%

%L-T Model

September 2015

Revenue, YoY 20+%

Gross Margin ** Mid to High 50’s%

R&D & SG&A **50 – 60% of

revenue growth%


Why is MPS Winning?

BCDHVBCDH

Input Supply Voltage

Ou

tpu

t C

urr

en

t

5V 100V30V

10A

200V 1200V

20A

40A

80A

60A

500V

BCDH: 800kHz Integrated

Sync Driver and

Controller with up

to 95% Efficiency

BCDHV: Fast Slew Sync

Gate Driver and

Controller

0.8V to 3.5V

Operation

BCD4: 8MHz Integrated

Sync Driver and

Controller with up

to 96% Efficiency

BCD3: 5MHz Integrated

Sync Driver and

Controller with up

to 96% Efficiency

BCDLV

BCD4: 20% to 50% Reduction

of BCD3.

BCD3: 20% Smaller Than the

Best in Industrial.

+ Memory

+ Digital = BCD5

Best-in-Class Performance: Single Chip Solution


MPS is Growing in

Automotive

The Semiconductor Value in a Vehicle


End Customers

MPS Customers and Deeply Engaged Auto Suppliers


Where MPS Can Win

Infotainment• Dashboard

• Car Audio

• Connectivity

Audio

• Entertainment

• ITS/GPS2

• Car Navigation

DisplayPowertrain

• Engine Control

-Engine

-Fuel Injection

-Knock Control

• HEV/EV motor

• Entertainment

• Transmission

Safety

• Steering/EPS

• Brake/ABS

• Transaction

Control

• Transmission

Safety

• Airbag

• TPMS

• Collision

Warning

• Parking

Assistant

• Back Monitor

• Night Vision

Networking

• CAN

• LIN

• FlexRay

• SAFE-BY-WIRE

• MOST

• Bluetooth

Body• Power Door

• Power Window

• Climate Control

• Seat Controls

• Mirror and Wiper Control

• Lighting

• Diagnostics

• Alternator, Battery, and

Starter

Body

Infotainment

Powertrain

Safety

Safety

Networking


Where MPS Has Won

Puddle light

Fog light

Radio & navigation

USB hub/charger

Trunk light

Camera module

Telematics module

Gateway

module Keyless access

Wireless chargerDay run light

Audio system

Body control

module


How MPS wins in

Battery Management

Drawbacks of using this solution

• Battery pack configuration not very flexible for space

• Need three IC’s high cost, large footprint, low performance

• Battery life Optimization Very Poor battery life

Advantages of MPS Solution

• Single IC for complete battery management solution Low BOM Cost

• Battery Pack Configuration Optimized for space saving and flexibility

• Battery Life Optimization Excellent with prolonged battery life

Existing Solution

MPS

Solution


Battery Management System Solution

Electric Vehicles/Battery Bank

• Battery Management content in EV is increasing rapidly

• Employment of many lithium ion batteries cells that are stacked together

to provide the required power output

• Cells need to be properly monitored, balanced and measured for safe

operation and optimal performance


New Market Opportunities

e.MotionTwo Billions $ Expansion

Where is e.Motion Applicable

Typical

Conventional

Solution

Gears

Motor

3 Hall Sensors

Optical

Encoder

DSP and Discrete Power Driver

Motor

< 20W Servo Motor < 200W Servo Motor

(Seat Position

Control)

< 2000W Servo Motor

Industrial

< 2000W Servo Motor

(Assembly Line)


Traditional Solution…

How it works

Optical

Encoder

$1 Encoder$100 Encoder

3 Hall Sensors

Digital Signal

Processor

+ Communication

Discrete Power

Driver


What e.Motion Does

How does it work?

DSP and

Discrete

Power Driver

Gears

Motor Optical

Encoder

3 Hall sensors

If Applicable

e.Motion brings

• Gearless drive

• No Hall sensors

• No Encoder

• No DSP

• 30% more efficient

<150W

Single Chip

>150W

Controller + Power Drive

?


MPS Integrated Motor Drivers High Efficiency

Low Heat

High Current

High Torque

Compact Size

e.Motion Platform

Accurate Rotor Position Sensor

Best Motor Control (FOC)

Torque

Speed

Position

(Power & Communication)

Cable to System


Example of Complete Solution

e.Motion opportunities $2B+ SAM

>$6 /Printers

3 to 15 Motors

3 to 7 Sensors

>$30/Car

>10 Motors

>20 Sensors

>$40/ Industrial

Robot

>10 Motors &

Sensors

>$5/Conveyor Belt

>1 Motor & Sensor

>1 Motors & Sensors

>$3/Security Camera

>$20/Robots

>10 Motors &

Sensors

>$10/ Sewing

Machine

>2 to 8 Motors &

Sensors

$6-$30?/Drones

4 to 7 Motors

3 to 7 Sensors78 Motors

180 Sensors

>$20K/ Surgical Robot

>1 Motors

>2 Sensors

>$5/Elevator


How MPS wins with Modules

How MPS Is Winning in Modules


MPS Monolithic Power Modules are

simple to build, demonstrate higher performance,

and are easy to use

Lead Frame Monolithic Regulator

Passive Components

Including InductorMold Compound

One chip inside

Using Standard IC package

Highly reliable

Low noise and EMI

High efficiency

Market-Leading MPM Roadmap, $1B+ SAM

60V

35V

24V

12V

5V

1A 2A 5A 10A 15A 20A 30A

Released

Soon to be

released


60V

35V

24V

12V

5V

0.5A 1A 2A 5A 10A 15A 20A 30A

Field Programmable Power Module –

The Next Leap ForwardMPS Algorithm

BCD 5 Technology

Packaging Technology

Every Design

Customized!

Programmability


• Digital

• Memory

• Power

• Analog

How MPS wins in Servers

Connected Devices = High Computing Demand!

Tablets

Connected Devices

Switch/Router

Notebooks

Smart TV’s

Medical Devices

Smart Phones

In 2014, 16B IoT

By 2020, 40.9B IoT*ABIresearch

Cloud

Servers

Servers


VR12.5 Grantley VR13 Purley

Customers Tier 1 Tier 2 Tier 1 Tier 2

POL

EFUSE

CORE/DDR

MPS Proves itself in Grantley and Wins in Purley

MPS wins 100+ sockets and continues to grow

Tier 1: Enterprise Server OEM

Tier 2: All Others


VR12.5 Grantley VR13 Purley

Configuration # of ICs Cost # of ICs Cost

1 CPU 18 $15 35 $28

2 CPU 41 $35 58 $49

4 CPU 61 $53 100 $85

Well Positioned with

Excellent Financial

Strength

Q3 2016 Balance Sheet Metrics

Total Metric

Cash $264M $6.31 $/share

A/R $33.3M 28 Days

Inventory $70.7M 133 Days

Debt $0 - $/share

Equity $416M $9.94 $/share


$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

$550

$600

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Actual Cash Cash adjusted for Stock Buybacks and Dividends

52%

Cash

returned

to share-

holders

through

stock

buybacks

and

dividends

Strong Cash Generation: History of Capital Allocation


Closing Summary


• Proven Analog Model Focused on Power Management

• Superior Technologies: Dramatic Increase in Process

Technology and Product Breadth over the Past 2 Years

• New Products Making Rapid Progress

• Strong Balance Sheet - $264M in Cash, $6.3 per Share

• Expanding Market Opportunities with New Product Lines!

monolithic power systems_2016-11-02 e motion analog power systems and positioning breakthroughs

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