S

Robots that make a difference

The road ahead

- 2 -Situation Analysis Alternatives Recommendations Implementation Conclusion

Our understanding

Overview

Business model

Your Business

Research/Design

Develop

Manufacture

Market

Jetta Kim Yat

Business of designing, developing and marketing robots


Innovation is important going forward

Time

Imp

ac

t

Innovatio

n

Overview “Vision led” approach

Business model

Business centered on innovation

Our understanding


Overview Business Segments

Business model


Business segments55%37%

8%

Chart Title

Military

Industrial

Home cleaning

Revenue concentrated in US

Our understanding

65%

35%

US

Non- US


Overview Your Position

Business model


Business segments

Position in industry

Our understanding

Home Cleaning Robots

Market Leader

CAGR 16%

Revenue Growth

Need to sustain market position


Overview What got you here

Business model


Business segments

Position in industry

Success factors

Our understanding

Blue ocean

strategy

Hedging through diversifi-

cation

`

Strategic alliances

R&D and innovation

Financialprudence


To provide a robust project output in a timely fashion requires expert knowledge across all the relevant adjacent industry segments.

Overall Objective

Where you want to be

Market share

Innovation

Low High

High



Overall Objective


Specific Objectives

Market share

Innovation

Low High

High



Overall Objective


Specific Objectives

Market Share Innovation

Market share

Innovation

Low High

High

Optimize market mix

Cement market leadership

Talent development

Strategic Alliances


Challenge

Home cleaning robots

Competition from strong players

Military robots

Volatility and unknown demand

of US government

Technology

Obsolescence of technology

Threats to Revenue Streams


Challenge



Military robots


of US government

Technology




Challenge

Challenges

Augmenting revenue streams

Managing talent and innovation

Optimizing market mix



Military robots


of US government

Technology




Winning Formula

Strategic Bets

TalentModel

StrategicAlliances

Challenges





Market

Share

Inn

ov

atio

n

Low High

High

Target

Strategic Bets

TalentModel

StrategicAlliances

Challenges




Address Challenges

Winning Formula


Market

Share

Inn

ov

atio

n

Low High

High

Target

Core Growth options

Strategic Bets

TalentModel

Supply Chain

Winning Formula


Analyzing the market mix

Alternatives

1 Consumer robots in US

2 Military robots in US

3 Consumer robots in non- US

4 Military robots in non- US

5 Aerospace in US

6 Alternative energy in US

7 New Segment in non-USGeographical Market

Segment

US Non US

New

Current

1

23

4

5

6 7



Consumer robots, US

Military robots, US

Market Growth

Market Size

Market Share

Regulation

Funding

Overall 4.75 2.25

Place Strategic Bets

Status Quo

Accessibility to iRobot

Core Growth Options

Do Not Invest

HighLow

Growth Options Prioritization

1

2

Unfavorable Magnitude Favorable

1 2

Ma

rke

t A

ttra

cti

ve

ne

ss

High



Alternatives

1 Consumer robots in US

2 Military robots in US

3 Consumer robots in non- US

4 Military robots in non- US

5 Aerospace in US

6 Alternative energy in US

7 New Segment in non-US


Status Quo

Ma

rke

t A

ttra

cti

ve

ne

ss


Core Growth Options

Do Not Invest

High

HighLow

Growth Options Prioritization

1

2

3

4

5

6

7


Winning Formula

Core growth options

Strategic Bets

TalentModel

StrategicAlliances

1.Consumer robots in US2.Consumer robots in non-US

Core growth options


Winning Formula

Core growth options

Strategic Bets

TalentModel

StrategicAlliances


Core growth options

Capture opportunities in consumer robots


Winning Formula

Core growth options

Strategic bets

TalentModel

StrategicAlliances


Core growth options

1.Alternative energy in US

Strategic bets


Your Winning Formula

Core Growth options

Strategic Bets

TalentModel

StrategicAlliances


Core growth options


Strategic bets

Diversification into new business segments


Winning Formula

Core growth options

Strategic bets

Talentmodel

Supply chain


Core growth options


Strategic bets


Winning Formula

Core growth options

Strategic bets

Talentmodel

Supply chain


Core growth options


Strategic bets

Twin support for strategic stability


i-home - Core growth(US)

Automating processes within a home

>Middle classhouseholds & innovators

Creating blue oceans in consumer markets

Concept

Aim

Reward

The

proc

ess

Segment

I- home

NPV:

65M



i- home

Pricing i-care

i-garden

i-vacuum

i-secure

i-sanitize

i-cook

Identifying and fulfilling

more consumer needs

Augmenting

Pioneering new leading

edge technologies

Innovating

Churning the blue oceans



i- home

Pricing i-care

i-garden

i-vacuum

i-secure

i-sanitize

i-cook

Identifying and fulfilling

more consumer needs

Augmenting

Pioneering new leading

edge technologies

Innovating

Churning the blue oceans

Cement leadership in consumer segment through innovation



Pricing

i-care

Growing silver-hair and disabled market

1. Needs and opportunities

2. Product features and development

3. To market strategy



Pricing





Rising cost of care-giving

i-care

2004 2007 Median household income$42

$44

$46

$48

$50

$52

$54

Average Annual Cost of Home Health Aide

US

$/00

0s

+ 2.7%

Source: Genworth Financial 2007 Cost of Care Survey




Rising cost of care-giving

Large market size

i-care




Total US population

89 million(29%)

307 million

Caregiving population

Source: US Census 2009



i-care




i-care

Product development

• Understand care needs from eldercare experts

•Leverage on Warrior robot (payload) technology

Product features

•Telepresence robots: Keep an eye, monitor medication adherence

•Bed lifting, grocery carrying

•Integrated health monitoring



i-care




Patient Identification

Eldercare Conference

Smart home exhibition

Social media

Existing retailers

i-home portal

Robot-linking App

Increased brand loyalty

Increased ease and flexibility

i-care



i-care







Social media

Existing retailers

i-home portal

Robot-linking App



i-care

i-Care for my mom without quitting my job


i-globe – Selling globally

Identify potential markets

Global Partnerships

Geographical diversification

Concept

Aim

Reward

The

proc

ess

Method

I- globe

NPV:

32 M



Countries2010 GDP per capital/$US Score

Labor costs Score

Population size/mil Score

Overall Score

Germany 40512 9.6 46.52 10.0 82 0.6 6.7France 40591 9.6 40.08 8.6 66 0.5 6.2Japan 42325 10.0 30.36 6.5 127.4 1.0 5.8Italy 33828 8.0 34.97 7.5 61 0.5 5.3United Kingdom 36298 8.6 30.78 6.6 62 0.5 5.2Spain 29875 7.1 27.74 6.0 46 0.3 4.5China 4520 1.1 1.36 0.3 1341 10.0 3.8India 1176 0.3 1.18 0.3 1196 8.9 3.2South Korea 20165 4.8 14.2 3.1 49 0.4 2.7Brazil 10471 2.5 8.32 1.8 191 1.4 1.9

High

La

bo

r C

os

t

Low

HighLowGDP per Capita

SK

IN

SP

UKIT

JP

FR

DE

CHBR

Timing & Expansion Schedule




Labor costs Score


Overall Score


High

La

bo

r C

os

t

Low


SK

IN

SP

UKIT

JP

FR

DE

CHBR

Tier 1

Tier 2

Tier 3

TIER 1 (1-2 years): Expand Now

Germany, France, JapanFavorable market conditions for

expansionSystematic expansion: Enter 1

market at the time





Labor costs Score


Overall Score


High

La

bo

r C

os

t

Low


SK

IN

SP

UKIT

JP

FR

DE

CHBR

Tier 1

Tier 2

Tier 3

TIER 1 (1-2 years): Expand Now

Germany, France, JapanFavorable market conditions for

expansionSystematic expansion: Enter 1

market at the time

TIER 2 (2- 4 years): Wait and see

Spain, Italy, United Kingdom, South Korea

Assess market conditionsSource for suitable partners

TIER 3: Do not invest for now

India, China, BrazilCurrent market statistics are not

extremely unfavorable for expansion



• Leveraging on the success of partnership model

• Providing superior product to retailers

• Helping retailers understand product

• Allowing global access to new products

Selecting partnership as a distributor model


• Distribution network and muscle

• Local knowledge

• Opportunity to cross-sell


i-shine – Strategic Bets in Solar

Method

Dividend

Aim

The

Pro

cess

Wafer manipulation expertise

i-shine

Concept

Joint- venture & strategic alliances

Precision robotics

Diversify

0

5

10

15

20

25

30

0

5

10

15

20

25

30

35

2009 2014

Revenue

Installation

US Solar Revenue and Installation Growth

+21% CAGR



Symbol Type

Polysilicon

Wafer

Cell

Module

Thin film

2005 – 2010 Investments in U.S. Solar by Component Product

Source: Announcements – fDiMarkets.comSite Selection Magazine

Industry Insights


Optimize production using new technology

Solar Wafer Manufacturer Precision Robotics

Penetrate Solar Power Segment

Strategic Fit

Technological know-how

Financial Capabilities

Strategic bets



Sowing the seeds

Key Components

i-home YouTube video competition to identify conceptualizers

Referral bonus for staff who recommend a valuable new hire

Attract solar researchers through a patent award programme

Intervarsity robotics competition Internship full-time

Hire on campus in India (IIT, BITS)

1

2

3

4

5

Talent model


Sowing the seeds

Key Components

Hitting the ground running+

Deep talent capabilities in innovation

+Develop expertise in solar

research+

Constant pool of analysts+

Global capability and perspective

=

International growth SUCCESS

i-home YouTube video competition to identify conceptualizers

Referral bonus for staff who recommend a valuable new hire

Attract solar researchers through a patent award programme

Intervarsity robotics competition Internship full-time

Hire on campus in India (IIT, BITS)

1

2

3

4

5

Talent model


Optimizing Quality

• Communicate anticipated production and component needs

• Assist in input selection

Pro

ce

ss

es

Development ManufacturingPost-Manufacturing/

Optimization

Phase 1 Phase 2 Phase 3

Prevent shortruns

Supply Chain


Optimizing Quality



Pro

ce

ss

es


Optimization


• Progress monitoring

• Interim production assessment

• Provide input clarification

Prevent shortruns

Anticipate shortruns

Supply Chain


Optimizing Quality



Pro

ce

ss

es


Optimization


• Progress monitoring

• Interim production assessment

• Provide input clarification

• Relaying optimization feedback for incorporation

• Quality assessment scorecard

Prevent shortruns

Anticipate shortruns

Manage quality

Supply Chain


NPV (i-Home) = US$65m

NPV (i-Globe) =US$38m

NPV (i-Shine) = US$32m

Expected Total NPV = US$134 million

Discount rate = 13%

Financial Impact

Key Points

Macro Economics- GDP- Industry MS- etc.

1

Business assumptions- Price- Penetration- Growth- Costs- etc.

2

Financial assumptions- Costs- Productivity- WACC

3

Sensitivity analysis

47

2010 2011 2012 2013 2014 2015 2016 2017 2018

-20

-15

-10

-5

0

5

10

15

20

25

i-Shine

i-Globe

i-HomeO

per

atin

g P

rofi

t (U

S$

m)

2010 2011 2012 2013 2014 2015 2016 2017 2018

-20

-15

-10

-5

0

5

10

15

20

25

Base

Down

Op

erat

ing

In

com

e (U

S$

m)

Financial Impact


2010 2011 2012 2013 2014 2015i-home Product development

MarketingLaunch IT Apps

i-globe Search for partnerNegotiate contractCommence operations

i-shine Search for partnerNegotiate contractCommence research & development

Talentmodel

You-Tube video competitionRobotics challengeRecruitment from Indian Universities

Supply chain Implement quality

monitoring

New Product New Market

Implementation Timeline

Germany France Japan

i-care i-garden i-cook

Solar


Monitoring risks of recommendations

Scenario Primary Drivers that Trigger the Scenario

Measurable Factors to Monitor Trigger Point

Delays in securing

distributor

Cost overruns in product

development

Below expected market

acceptance

Triggering options to address a scenario should focus on the underlying drivers of the scenario.


Monitoring risks of recommendations

Scenario Primary Drivers that Trigger the Scenario

Measurable Factors to Monitor Trigger Point

Delays in securing

distributor

1.Disagreements over partnership structure

1.Implementation schedule

1.Delay > 3 months

Cost overruns in product

development

1.Technology limitations necessitating increased R&D

2.Increase in skilled hires

1.Number of R&D hours

2.Budget variance

1. >50% increase in R&D hours

2. >50% cost overrun

Below expected market

acceptance

1.Immaturity of markets

2.Unproven research capabilities in new segments

1.Market share 1.Market share < 5% after 3 years

Triggering options to address a scenario should focus on the underlying drivers of the scenario.


Risk mitigation plans

Delays in securing distributor

i-Globe

Cost overruns in product development

i-Home

Look for alternative distributors

+

Adopt direct-to-retailers approach

Partner schools in R&D of

home-care products

Below expected market acceptance

i-Shine

Shelve partnership plans

+

Explore alternative industries


What we have delivered

Summary and payoffs Challenge addressed

• Blue oceans in consumer markets

• 65M NPV

• Optimizing market mix

• Augmenting revenue streams

• Managing Innovation • Marketing vacuums

internationally• 38M NPV



• Marketing vacuums internationally

• 32M NPV



• Managing Innovation • Dynamic management of

talent• Managing talent and

innovation

• Ensuring quality of products • Augmenting revenue streams

Market

Share

Inn

ov

atio

n

Low High

High

Target

i-home

i-globe

i-shine

TalentModel

SupplyChain

7% increase in USMarket Share

Lead industry in innovation

+

- 53 -

Appendix

Our understandingBusiness model

Innovation led approach

Business segments

Industry position

Success factors

Objectives

Challenges

Winning formula

Alternative analysis

Option matrix

Consumer vs Military

Market mix analysis

Core growth options

i-home strategic core

i-home options

i-home needs

i-home features

i-home to market

i-globe strategic core

i-globe schedule

i-globe partnerships

Strategic betsi-shine strategic core

i-shine US components

i-shine alliance

Talent model

Sowing the seeds

Optimizing Quality

Supply chain

Financial Impact

Financial performance

Implementation

Risk monitoring

Risk mitigation

Implementation timeline

Conclusion

Summary slide

i-RobotStock price

Managing PLC

Domestic distribution

International distribution

Patent breakdown

Third party developers

Military

Opportunity

Enabling technology

i-home

Consumer market selection

US Vacuum

Caregiver status

Opportunity cost

Cost of giving care

I phone app

Product company

I-garden

i-garden 1

i-garden 2

i-garden 3

i-Cooki-secure

i-sanitize

I-globe

Labor cost by country

Country analysis

Growth prioritization matrix

Germany Robotics Sector

I-Shine

Industry Analysis 1

Industry Analysis 2

Solar Sector Growth

Solar Sector Support

Talent Model

Total Rewards Strategy

Financial Impacts

Alternatives Analysis

I-home

I-globe

I-shine

Combined NPV

Combined revenue

- 54 -

i-Robot

- 55 -

iRobot Stock Price

- 56 -

Managing PLC

- 57 -

Domestic distribution model

- 58 -

International distribution model

- 59 -

Military opportunities

- 60 -

Military – enabling technologies

- 61 -

Patent breakdown

- 62 -

Third party developers

- 63 -

Why consumer markets

Revenue by Location 27-Dec-08 2-Jan-10

United States of America $ 233,860

$ 202,705

International $ 73,761

$ 95,912

Revenue by Segment 27-Dec-08 2-Jan-10

Consumer $ 158,589

$ 164,239

Military $ 113,512

$ 120,343

Segment Comparison

Market Size Market GrowthMarket Share Regulation Dependence on Funding

Global Consumer $2,318,181,818 23% 7.085%Low LowUS Military $11,000,000,000 18% 1.094%High High

- 64 -

Why not integrate along the value chain

Cyclical Demand

Higher fixed cost = higher risk

- 65 -

Why not expanding within US with Vacuum

Market saturation

Poor prospects of B2B(Fragmented)

Tough to achieve scale

Stagnant sales growth

Poor economic recovery Lower domestic demand

Situation Implication

- 66 -

i-home

- 67 -

Caregiver status

- 68 -

Opportunity cost of caretaking

- 69 -

i-home App developers

OptmizedApps.com is a mobile application consultancy and development company that is dedicated to assisting both global business and small to medium users in developing high quality, award-winning applications. We are not just your average order takers; as developers we bring over 15 years of development and application consulting experience to the table so we build what you need and what you want, as well as deliver it on time and in budget. Fast and cost effective service are our hallmark; we are the company you should turn to when you are looking for a partner in developing new ways to operate, and new ways to get things done.

Pricingi-care

i-garden

i-vacuum

i-secure

i-sanitize

i-cook

i-home

- 70 -

Product comparison within i-home

Market Opportunity

Market Accessibility

Technology compatibility

Overall ranking

i-care High High High 1

i-garden Med Low High 2

i-cook Med Low Low 3

i-vaccum Low High High 4

i-secure Low Low Low 5

i-sanitize Low Low Low 6

- 71 -


Pricing

i-garden

Large number of US house hold with lawn




A surprisingly high percentage (80%) of U.S. households has a private lawn. The potential collective effect on our daily lives is significant. Consumers annually spend around $40 billion per year to maintain and improve their yards, and the growth is accelerating as the U.S. population matures. Lawns, flower gardening, shrub care and general landscaping are important components of local economies. The personal and public benefits are well-documented.

Summer Winter

Lawn Mowing Snow Shovel

- 72 -


i-garden




i-garden

Product development

• Understand care needs from garden owners

•Leverage on existing technology

Product features

•Human Robot Interaction (Programming)

•Semi-Autonomous operations

•Snow shoveling/ Lawn mowing

- 73 -


i-garden







Social media

Existing retailers

i-home portal

Robot-linking App



i-garden

- 74 -


Pricing

i-cook

Automation of Kitchen appliances




- 75 -


Pricing

i-secure

Safety Concerns




- 76 -


Pricing

i-sanitize





- 77 -

i-globe

- 78 -

Table 1. Hourly compensation costs in manufacturing,

U.S. dollars, and as a percent of costs in the United States

Country or AreaHourly Compensation Costs

in U.S. dollars U.S.=1001997 (1) 2009 1997 (1) 2009

Norway 26.97 53.89 119 161Denmark 24.64 49.56 109 148Belgium 28.23 49.40 125 147Austria 27.38 48.04 121 143Germany 29.26 46.52 129 139Switzerland 28.33 44.29 125 132Finland 22.17 43.77 98 131Netherlands 23.44 43.50 103 130France 24.99 40.08 110 120Sweden 25.11 39.87 111 119Ireland 17.15 39.02 76 116Italy 19.67 34.97 87 104Australia 19.12 34.62 84 103United States 22.67 33.53 100 100United Kingdom 18.24 30.78 80 92Japan 22.28 30.36 98 91Canada 18.89 29.60 83 88Spain 13.91 27.74 61 83Greece NA 19.23 NA 57Israel 12.32 18.39 54 55Singapore 12.15 17.50 54 52New Zealand 12.37 17.44 55 52Korea, Republic of 9.42 14.20 42 42Portugal 6.38 11.95 28 36Slovakia 2.86 11.24 13 34Czech Republic 3.24 11.21 14 33Argentina 7.43 10.14 33 30NA=data not available.(1) With the exception of Estonia and Greece, 1997 is the first year data are available for all economies.

Hourly compensation costs

- 79 -

Country scores


Labor costs Score


Overall Score

Japan 42325 10.0 30.36 6.5 127.4 1.0 5.8

South Korea 20165 4.8 14.2 3.1 49 0.4 2.7

Germany 40512 9.6 46.52 10.0 82 0.6 6.7

France 40591 9.6 40.08 8.6 66 0.5 6.2United Kingdom 36298 8.6 30.78 6.6 62 0.5 5.2

Italy 33828 8.0 34.97 7.5 61 0.5 5.3

Spain 29875 7.1 27.74 6.0 46 0.3 4.5

China 4520 1.1 1.36 0.3 1341 10.0 3.8

India 1176 0.3 1.18 0.3 1196 8.9 3.2

Brazil 10471 2.5 8.32 1.8 191 1.4 1.9

- 80 -


Consolidate

Ma

rke

t A

ttra

cti

ve

ne

ss


Core Growth Options

Divest Holdings/Do Not Invest

High

HighLow

Growth Options Prioritization Select Attractiveness Considerations

Market Size Market Growth

Select Accessibility Considerations

Can iRobot adapt its current expertise in the new segment/market

Customer Characteristics

Growth Prioritization Matrix

- 81 -

Germany’s Robotics Sector

- 82 -

i-shine

- 83 -

Current R&D – Future Looking

Conclusion: Energy sector is a rapidly developing robotics sector

Consideration of Different Industries

Historical robot use – Size of current market

- 84 -

Industrial robot per 10,000 employed

- 85 -

0

5

10

15

20

25

30

0

5

10

15

20

25

30

35

2009 2014

Revenue

Installation

Industry growth will likely be driven by government incentives and public policies, such as production tax credits, feed-in-tariffs, and Renewable Portfolio Standards

ARRA allocated nearly $70B in funding to energy-related initiatives, including loan guarantees and tax credits for renewable energy manufacturers

Technological advances have driven cost improvements, increased output, and improved conversion efficiency

Price increases for traditional energy will likely bring solar closer to grid parity and increase demand

Traditional fossil fuel sources are prone to unpredictable price volatility whereas prices of renewable are more stable

Growing concern over environmental issues will likely maintain increased demand for solar

Growth Is Fueled by Government Funding and Technology Advances

Energy Demand, Price Volatility and Environmental Concern Also Propel

Solar Demand

6684

105140

220

357

2003 2004 2005 2006 2007 2008

+21% CAGR

Rev

enu

e (i

n B

illio

ns

US

D)

Inst

alla

tio

n (

in G

W)

US Solar Revenue and Installation Growth

Annual U.S. Installed Capacity (MW)

Solar Market justification

- 86 -

Growth Trends in Solar

- 87 -

Solar Wafer - Manual labour

- 88 -

Solar Wafers

- 89 -

Talent

- 90 -

“Total Rewards”Strategy

Career Opportunities• Career Planning• Mentoring Programs• Competency Modeling• Training Programs• Work Experience

Compensation• Base Pay• Annual Bonuses• Long-Term Incentives• Other Financial & Non-

Financial Rewards

Culture• Leadership Styles• Communication/

Decision-Making• Employee

Participation/Empowerment

• Internal or External Focus of Organization

Physical Environment• Nature of Work• Interaction with

Others• Flexibility

Benefits• Health, Dental• Vision Care• Paid Time Off• Life Insurance• Short/Long-Term

Disability• Retirement Plans• Spending Accounts• Other Benefits

Rewarding Employees

Increase Employee Retention

Motivate & Encourage Innovation

Enhance Employee Productivity

Total rewards strategy


Alternatives NPV $m

1 Consumer robots in US 65.1

2 Military robots in US 30.7

3 Consumer robots in non- US 37.7

4 Military robots in non- US 20.0

5 Aerospace in US 20.1

6 Alternative energy in US 31.6

7 New Segment in non-US 35.0

Alternatives Evaluation


i-Home NPV

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

-10

-5

0

5

10

15

20

i-Home

Op

erat

ing

In

com

e (U

S$

m)

Key AssumptionsAverage selling price $350 Market penetration 0.25%Initial Year (2011) Revenue $ 26152479 Revenue Growth 15%Gross Margin 31%Operating Expenses - R&D 2 000000 Operating Expenses - Marketing & Selling $3000000 Operating Expenses - General & Administrative $3 000000 Growth in Operating Expenses (Marketing & Selling + General & Administrative 3%


i-Globe NPV

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

-4

-2

0

2

4

6

8

10

12

i-Globe

Op

erat

ing

In

com

e (U

S$

m)

Key AssumptionsAverage selling price $350 Market penetration 10%Initial Year (2011) Revenue $7560000 Revenue Growth 23%Gross Margin 31%Operating Expenses - R&D $- Operating Expenses - Marketing & Selling $1500000 Operating Expenses - General & Administrative $1500000 Growth in Operating Expenses (Marketing & Selling + General & Administrative 5%


i-Shine NPV

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

-6

-4

-2

0

2

4

6

8

10

12

i-Shine

Op

erat

ing

In

com

e (U

S$

m)

Key AssumptionsAverage selling price $13 000 Market penetration 5%Initial Year (2011) Revenue $10000000 Revenue Growth 20%Gross Margin 30%Operating Expenses - R&D $ 1000000 Operating Expenses - Marketing & Selling $1000000 Operating Expenses - General & Administrative $2000000 Growth in Operating Expenses (Marketing & Selling + General & Administrative 5%


Combined NPV

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

-20

-10

0

10

20

30

40

50

i-Shine

i-Globe

i-Home

Op

erat

ing

Cas

hfl

ow

(U

S$

m)


Revenue Breakdown

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 $-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

i-Shine

i-Globe

i-Home

Organic Revenue

Revenue Breakdown 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Organic Revenue 100% 88% 88% 88% 89% 89% 89% 89% 89% 89% 89%i-Home 0% 7% 7% 7% 6% 6% 6% 6% 6% 6% 5%i-Globe 0% 2% 2% 2% 2% 2% 2% 3% 3% 3% 3%i-Shine 0% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3%


I-home

2010 2011 2012 2013 2014 2015

Revenue 0 $ 26 152 479

$ 30 075 351 $ 34 586 654

$ 39 774 652

$ 45 740 849

Cost of Revenue 0 $ 18 165 655

$ 20 890 503 $ 24 024 079

$ 27 627 690

$ 31 771 844

Gross Profit 0 $ 7 986 824

$ 9 184 848 $ 10 562 575

$ 12 146 961

$ 13 969 005

Operating Expenses

R&D $ 2 000 000

$ 2 000 000

$ 2 000 000 $ 2 000 000

$ 2 000 000

$ 2 000 000

Marketing & Selling $ 3 000 000

$ 3 090 000

$ 3 182 700 $ 3 278 181

$ 3 376 526

$ 3 477 822

General & Administrative $ 3 000 000

$ 3 090 000

$ 3 182 700 $ 3 278 181

$ 3 376 526

$ 3 477 822

Total Operating Expenses $ 8 000 000

$ 8 180 000

$ 8 365 400 $ 8 556 362

$ 8 753 053

$ 8 955 644

Operating Income (Loss) $ (8 000 000)

$ (193 176)

$ 819 448 $ 2 006 213

$ 3 393 908

$ 5 013 361


I-globe

2010 2011 2012 2013 2014 2015

Revenue 0 $ 7 560 000 $ 9 298 800

$ 11 437 524

$ 14 068 155 $ 17 303 830

Cost of Revenue 0 5251217.312 $ 6 458 997

$ 7 944 567

$ 9 771 817 $ 12 019 335

Gross Profit 0 $ 2 308 783 $ 2 839 803

$ 3 492 957

$ 4 296 338 $ 5 284 495

Operating Expenses

R&D $ - $ - $ -

$ -

$ - $ -

Marketing & Selling $ 1 500 000 $ 1 575 000 $ 1 653 750

$ 1 736 438

$ 1 823 259 $ 1 914 422

General & Administrative $ 1 500 000 $ 1 575 000 $ 1 653 750

$ 1 736 438

$ 1 823 259 $ 1 914 422

Total Operating Expenses $ 3 000 000 $ 3 150 000 $ 3 307 500

$ 3 472 875

$ 3 646 519 $ 3 828 845

Operating Income (Loss) $ (3 000 000) $ (841 217) $ (467 697)

$ 20 082

$ 649 819 $ 1 455 650


i-shine

2010 2011 2012 2013 2014 2015Revenue 0 $ 10 000 000 $ 12 000 000 $ 14 400 000 $ 17 280 000 $ 20 736 000 Cost of Revenue 0 7000000 $ 8 400 000 $ 10 080 000 $ 12 096 000 $ 14 515 200

Gross Profit 0 $ 3 000 000 $ 3 600 000 $ 4 320 000 $ 5 184 000 $ 6 220 800

Operating Expenses

R&D $ 1 000 000 $ 1 000 000 $ 1 000 000 $ 1 000 000 $ 1 000 000

$ 1 000 000

Marketing & Selling $ 1 000 000 $ 1 050 000 $ 1 102 500 $ 1 157 625 $ 1 215 506

$ 1 276 282

General & Administrative $ 2 000 000 $ 2 100 000 $ 2 205 000 $ 2 315 250 $ 2 431 013

$ 2 552 563

Total Operating Expenses $ 4 000 000 $ 4 150 000 $ 4 307 500 $ 4 472 875 $ 4 646 519

$ 4 828 845

Operating Income (Loss) $ (4 000 000)

$ (1 150 000)

$ (707 500)

$ (152 875) $ 537 481

$ 1 391 955


Financial Ratios

Profitability 2010 2011 2012 2013 2014 2015 Product Gross Profit Margin 40.85% 40.85% 40.85% 40.85% 40.85% 40.85%Contract Gross Profit Margin 89.69% 89.69% 89.69% 89.69% 89.69% 89.69%Average Gross Profit Margin 47.53% 47.45% 47.39% 47.33% 47.28% 47.23%EBIT Margin 14.19% 14.11% 14.52% 15.32% 16.38% 17.64%Net Income Margin 9.94% 9.87% 10.17% 10.72% 11.47% 12.35%Return on Equity 9.94% 9.87% 10.17% 10.72% 11.47% 12.35%


iRobot Financial Snapshot

2010 2011 2012 2013 2014 2015Revenue Product revenue $ 270 065 $ 321 879 $ 382 910 $ 454 821 $ 539 589 $ 639 557 Contract revenue $ 42 809 $ 50 322 $ 59 154 $ 69 536 $ 81 739 $ 96 084 Total revenue $ 312 874 $ 372 202 $ 442 064 $ 524 357 $ 621 328 $ 735 641 Cost of revenueCost of product revenue $ 159 743 $ 190 391 $ 226 490 $ 269 025 $ 319 165 $ 378 296 Cost of contract revenue $ 36 194 $ 42 546 $ 50 012 $ 58 790 $ 69 107 $ 81 235 Total cost of Revenue $ 195 936 $ 232 936 $ 276 502 $ 327 815 $ 388 272 $ 459 531 Gross Margin $ 109 506 $ 130 271 $ 154 722 $ 183 525 $ 217 465 $ 257 474 35% 35% 35% 35% 35% 35%Operating ExpensesResearch and Developmment $ 17 747 $ 20 747 $ 23 747 $ 26 747 $ 29 747 $ 32 747 Selling and marketing $ 48 447 $ 56 584 $ 65 353 $ 74 793 $ 84 947 $ 95 863 General and administrative $ 38 116 $ 46 786 $ 56 167 $ 66 305 $ 77 251 $ 89 059 Litigation and related $ - $ - $ - $ - $ - $ - Total Operating Expense $ 104 310 $ 124 118 $ 145 267 $ 167 845 $ 191 946 $ 217 669 Operating (Loss) Income $ 5 196 $ 6 153 $ 9 456 $ 15 680 $ 25 519 $ 39 805

Interests and Taxes (Income) Expense $ 1 559 $ 1 846 $ 2 837 $ 4 704 $ 7 656 $ 11 942 Net income $ 3 637 $ 4 307 $ 6 619 $ 10 976 $ 17 863 $ 27 864 Net income attributable to common stockholders $ 3 637 $ 4 307 $ 6 619 $ 10 976 $ 17 863 $ 27 864 Net income per common share

Basic $ 0.15 $ 0.17 $ 0.26 $ 0.44 $ 0.71 $ 1.11

Diluted $ 0.14 $ 0.17 $ 0.26 $ 0.43 $ 0.70 $ 1.09

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