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Power –OneLean six-Sigma path

Marco Monini - May 9th 2013

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Company at a glance

• Power-One Inc. Headquarters located in Camarillo, California

• Over 3,700 employees world-wide, US$ 1.02 Billion turnover in 2012

• Listed on NASDAQ under the ticker symbol PWER

• Structured into two separate Strategic Business Units:

– Renewable Energy Solutions Business Unit (74%)

Design and manufacturing of inverters for photovoltaic and wind applications

– Power Solutions Business Unit (26%)

Design and manufacturing of power conversion products for computer and office

applications, network and telecom solutions, industrial markets and custom

applications

• Sales offices, manufacturing and R&D operations in EMEA, APAC andthe Americas

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RE Areas of Coverage

GermanySales & Service Center

FranceSales & Service Center

GreeceSales & Service Center

SpainSales & Service Center UEA

Sales & Service Center

IndiaSales & Service Center

AustraliaSales & Service Center

USA - BostonSales & Service Center

USA – San JoseSales & Service Center

CanadaRE ManufacturingSales & Service Center

USA - PhoenixRE ManufacturingSales & Service Center

USA - CamarilloHeadquarter

UKSales & Service Center

China - ShenzhenRE ManufacturingSales & Service Center

China -Hong KongSales & Service Center

China - ShanghaiSales & Service Center

ItalyRE ManufacturingSales & Service Center

JapanSales & Service Center

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RE Product Portfolio

STRING

< 30 kW

CENTRAL

50 kW – 1MW

TURNKEY SOLUTIONS

440 kW – 1320 kW

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RE Power One Business Evolution

Historical Market Share

Maintain

Tech.

Leadership

Increase

Service

Activity

Strengthen

Customers

Loyalty

GAIN

MARKET

SHARE

Year MW Shipped WW Market Share WW Ranking

2008 246 4% 9

2009 532 7% 4

2010 2560 12% 2

2011 3063 13% 2

2012 3670 15% 2

Plans to grow

PAST

PRESENT&

FUTURE

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Arco SpA- VNO 30 people- Strategic location- Part of the Italian Industrial boom- Electromechanical

Plessey-Arco- English Holding- VNO 650 people- Local supply chain- Diversification- Electromechanical- Semiconductors- Revenue 85Mil$/y

Power-One- US Corporation- Renewable Division- VNO up to 604 heads - PV e Wind Inverters- VNO All functions present in the plant- Massive growth in all PV markets like Italy, Germany, Australia, Spain, France..- Leader into the market- High developed Local supply chain on RE- Revenue 730Mil$/y (2010)

Magnetek- US Corporation- PEG, Dept. 1800 heads- VNO up to 950 heads- Custom Power-Supply- High Tech Know-How - IT, automotive, TLC, home appliance lighting- Deep focused on energy saving products- De-localization in Hungary- Revenue 110Mil$/y

1969 1972 1991 2006

Power-One VNO: the history

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Lean Six-Sigma tools Integration

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Value stream mapping and

Implementation2009 - 2010

Value stream mapping and

Implementation2009 - 2010

Process improvement

Tools2011

Process improvement

Tools2011

People Involvement

2011Continuous

process

People Involvement

2011Continuous

process

Management orientation

Improvement focus

Technical tools short/medium term

results

People development

focus

Single process

Value stream

Power-OneApril 2009

Lean learning

organization

Lean learning

organization

Short/Medium term goal

Long term goal

TPSToyota Production

System

RE Power-One Lean path

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Year Path Projects Certifications Status

2009 Start-up Pilot project ( DPPM reduction) 1 Green Belt Closed

2010 Training/Metodologyextension

7 trained people + 2 GB Projects(MRB reduction + SMT Area)

- Closed

2011 Skills grownBlack Belt training

+ GB Project (RMA material recovery) 1 Black Belt Closed

2012 Methodologyconsolidation

7 Initiatives in Service dept. - Closed

2012 Methodologyextension

2 GB Projects(FPY improvement + RMA alert efficiency)

+ 2 Green Belt Closed

2013 Methodologyconsolidation

1 BB + 1 GB Project(Infant Mortality + Accrual modeling)

- Open

2013 Methodologyextension

7 GB training + 7 projects + 7 Green Belt Open

2013 Methodologyextension

9 trained people + 7 projects 9 Yellow Belt Open

2014 FutureFuture GB certification for all QE and ME

employes

RE Power-One Six-Sigma path