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

Silicon Power Solutions™

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-CostChina

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

Inventory Days

• 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 $15MIncrease

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

Silicon Power Solutions™

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

Silicon Power Solutions™

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

Thurley Bensley

Boxboro

Clearwater

Caneland 4 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

Silicon Power Solutions™

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

Millio

ns

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

53 RNC

-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

Our Main Competitors

57 Large power management companies

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

Silicon Power Solutions™

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

Our Main Competitors

64 Large power management companies

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

8 VLTR IC’s power all functions

Acer Aspire Timeline Ultra

6 VLTR IC’s power all functions

Dell Inspiron 14Z Ultrabook

6 VLTR IC’s power all functions

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

Silicon Power Solutions™

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

Silicon Power Solutions™

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

81

Core Technology Roadmap

Differentiated Technology in S/S & N/T

Smaller, higher performance and more energy efficient

Conventional discrete power Volterra’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 power Volterra’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

Norm

aliz

ed

Am

ps/A

rea

DENSITY

Aggressive Technology Roadmap

Innovation of the entire solution

• Process, package, architecture, topology

86

Discrete solutions require 1.5x-2.5x the space on Grantley

Gen 1 Gen 3 Gen 5 Gen 7 0

3

6

Competition

on Grantley

DENSITY

Norm

aliz

ed

Am

ps/A

rea

Aggressive Technology Roadmap

Innovation of the entire solution

• Process, package, architecture, topology

87

~4x improvement in power loss in 7 generations

Gen 1 Gen 3 Gen 5 Gen 7 0

Norm

aliz

ed

Pow

er

Loss

2

4

POWER LOSS

Aggressive Technology Roadmap

Innovation of the entire solution

• Process, package, architecture, topology

88

VLTR has 30%-65% lower power dissipation on Grantley

Gen 1 Gen 3 Gen 5 Gen 7 0

2

4

Competition

on Grantley

POWER LOSS

Norm

aliz

ed

Pow

er

Loss

Aggressive Technology Roadmap

Innovation of the entire solution

• Process, package, architecture, topology

89

~20x improvement in cost-per-amp in 7 generations

Gen 1 Gen 3 Gen 5 Gen 7 0

10

20

Norm

aliz

ed

Am

ps/$

Mfg

. C

ost COST-EFFECTIVENESS

Aggressive Technology Roadmap

Innovation of the entire solution

• Process, package, architecture, topology

90

VLTR has 20%-30% lower mfg. cost per amp on Grantley

Gen 1 Gen 3 Gen 5 Gen 7 0

10

20

Competition

on Grantley

Norm

aliz

ed

Am

ps/$

Mfg

. C

ost 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

Gen 1 Gen 11 Gen 1 Gen 11

Cost-Effectiveness

97

New Market Vector

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

I P = 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

Illustrative Example

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

Illustrative Example

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

Illustrative Example

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

GW

Insta

lled

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

Silicon Power Solutions™

Tom Truman

VP, Worldwide Sales

Sales

The Power of Focus

124

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

The Flywheel Effect

139

Q & A

140