The document discusses a robotics company's business model, segments, position in the industry, and factors for its past success. It then considers where the company wants to be in the future, including overall and specific objectives. It analyzes challenges the company faces, provides a winning formula framework, and makes recommendations around core growth options, strategic bets, talent management, and strategic alliances.

1. Robots that make a difference
The road ahead

2. Our understanding
Overview Your Business
 Business model Market
Manufacture
Develop
Research/ Jetta
Design
Kim Yat
Business of designing, developing
and marketing robots
Situation Analysis Alternatives Recommendations Implementation Conclusion
-2-

3. Our understanding
Overview “Vision led” approach
 Business model
 Business centered on innovation
Impact
Time
Innovation is important going
forward
Situation Analysis Alternatives Recommendations Implementation Conclusion
-3-

4. Our understanding
Overview Business Segments
 Business model Industrial
Non-
8% 35% US
 Business centered on innovation
 Business segments 37%
55%
65% US
Home
Military cleaning
Revenue concentrated in US
Situation Analysis Alternatives Recommendations Implementation Conclusion
-4-

5. Our understanding
Overview Your Position
 Business model Market Leader
Home Cleaning Robots
 Business centered on innovation
 Business segments Revenue Growth
CAGR 16%
 Position in industry
Need to sustain market position
Situation Analysis Alternatives Recommendations Implementation Conclusion
-5-

6. Our understanding
Overview What got you here
 Business model
 Business centered on innovation
`
Blue Hedging
 Business segments ocean through Financial
strategy diversifi- prudence
cation
 Position in industry
 Success factors Strategic alliances
R&D and innovation
Situation Analysis Alternatives Recommendations Implementation Conclusion
-6-

7. Where you want to be
Overall Objective
High
To provide a robust project output in a timely fashion requires expert knowledge across all the
Innovation
relevant adjacent industry segments.
Low High
Market share
Situation Analysis Alternatives Recommendations Implementation Conclusion
-7-

8. Where you want to be
Overall Objective
High
To provide a robust project output in a timely fashion requires expert knowledge across all the
Innovation
relevant adjacent industry segments.
Low High
Market share
Specific Objectives
Situation Analysis Alternatives Recommendations Implementation Conclusion
-8-

9. Where you want to be
Overall Objective
High
To provide a robust project output in a timely fashion requires expert knowledge across all the
Innovation
relevant adjacent industry segments.
Low High
Market share
Specific Objectives
Market Share Innovation
Optimize market Cement market Talent Strategic
mix leadership development Alliances
Situation Analysis Alternatives Recommendations Implementation Conclusion
-9-

10. Challenge
Threats to Revenue Streams
Home cleaning
Military robots
robots
Volatility and
Competition from unknown demand
strong players of US
government
Technology
Obsolescence of technology
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 10 -

11. Challenge
Threats to Revenue Streams
Home cleaning
Military robots
robots
Volatility and
Competition from unknown demand
strong players of US
government
Technology
Obsolescence of technology
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 11 -

12. Challenge
Threats to Revenue Streams Challenges
Home cleaning
Military robots
robots
Optimizing market mix
Volatility and
Competition from unknown demand
strong players of US
government
Augmenting revenue streams
Technology
Obsolescence of technology Managing talent and innovation
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 12 -

13. Winning Formula
Challenges
Strategic
Bets
Optimizing market mix
Strategic Talent
Augmenting revenue streams
Alliances Model
Managing talent and innovation
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 13 -

14. Winning Formula
Target
Challenges
Strategic
Bets High
Optimizing market mix
Innovation
Address Challenges
Strategic Talent
Augmenting revenue streams
Alliances Model
Low Market High
Share
Managing talent and innovation
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 14 -

15. Winning Formula
Target
Strategic
Bets High
Innovation
Core
Growth
options
Supply Talent
Chain Model
Low Market High
Share
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 15 -

16. Analyzing the market mix
Alternatives
New
6
1 Consumer robots in US
7
2 Military robots in US
5
Consumer robots in non-
3
US
Segment Military robots in non-
4
US
2
3 5 Aerospace in US
1 4
6 Alternative energy in US
Current
US Geographical Market Non US 7 New Segment in non-US
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 16 -

17. Analyzing the market mix
Growth Options Prioritization
High
Consumer Military Place Strategic Bets Core Growth Options
robots, US robots, US
1 2
Market
Market Attractiveness
Growth 1
Market Size
Market
Share
Regulation
2
Funding
Do Not Invest Status Quo
Overall 4.75 2.25
Low High
Accessibility to iRobot
Unfavorable Magnitude Favorable
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 17 -

18. Analyzing the market mix
Alternatives Growth Options Prioritization
High
Place Strategic Bets Core Growth Options
1 Consumer robots in US
2 Military robots in US 6
Market Attractiveness
Consumer robots in non- 1
3 3
US
Military robots in non-
4
US
5
5 Aerospace in US 7
2
6 Alternative energy in US 4
Do Not Invest Status Quo
7 New Segment in non-US
Low High
Accessibility to iRobot
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 18 -

19. Winning Formula
Core growth options
1.Consumer robots
in US
2.Consumer robots in
non-US
Strategic
Bets
Core
growth
options
Strategic Talent
Alliances Model
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 19 -

20. Winning Formula
Core growth options
1.Consumer robots
in US
2.Consumer robots in
non-US
Strategic
Bets
Core
growth
options
Strategic Talent
Alliances Model
Capture opportunities in consumer robots
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 20 -

21. Winning Formula
Strategic bets Core growth options
1.Consumer robots
1.Alternative energy in in US
US 2.Consumer robots in
non-US
Strategic
bets
Core
growth
options
Strategic Talent
Alliances Model
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 21 -

22. Your Winning Formula
Strategic bets Core growth options
1.Consumer robots
1.Alternative energy in in US
US 2.Consumer robots in
non-US
Strategic
Bets
Core
Growth
options
Strategic Talent
Alliances Model
Diversification into new business segments
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 22 -

23. Winning Formula
Strategic bets Core growth options
1.Consumer robots
1.Alternative energy in in US
US 2.Consumer robots in
non-US
Strategic
bets
Core
growth
options
Supply Talent
chain model
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 23 -

24. Winning Formula
Strategic bets Core growth options
1.Consumer robots
1.Alternative energy in in US
US 2.Consumer robots in
non-US
Strategic
bets
Core
growth
options
Supply Talent
chain model
Twin support for strategic stability
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 24 -

25. i-home - Core growth(US)
I- home
Creating blue oceans in
consumer markets Aim
Automating processes
within a home Concept
>Middle class
households Segment
& innovators
NPV:
65M Reward
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 25 -

26. i-home - Core growth(US)
i- home
Churning the blue oceans
i-secure
Augmenting
i-vacuum i-sanitize Identifying and fulfilling
more consumer needs
Innovating
i-garden i-cook Pioneering new leading
edge technologies
Pricing i-care
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 26 -

27. i-home - Core growth(US)
i- home
Churning the blue oceans
i-secure
Augmenting
i-vacuum i-sanitize Identifying and fulfilling
more consumer needs
Innovating
i-garden i-cook Pioneering new leading
edge technologies
Pricing i-care
Cement leadership in consumer segment through innovation
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 27 -

28. i-home - Core growth(US)
i-care
1. Needs and 2. Product features and 3. To market strategy
opportunities development
Growing silver-hair and
disabled market
Pricing
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 28 -

29. i-home - Core growth(US)
i-care
1. Needs and 2. Product features and 3. To market strategy
opportunities development
Average Annual Cost of Home Health Aide
$54 Growing silver-hair and
$52
disabled market
+ 2.7%
$50
US$/000s
$48
Rising cost of care-giving
Pricing
$46
$44
$42
2004 2007 Median household
income
Source: Genworth Financial 2007 Cost of Care Survey
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 29 -

30. i-home - Core growth(US)
i-care
1. Needs and 2. Product features and 3. To market strategy
opportunities development
Growing silver-hair and
disabled market
307 million
Rising cost of care-giving
89 million
(29%)
Large market size
Total US population Caregiving population
Source: US Census 2009
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 30 -

31. i-home - Core growth(US)
i-care
1. Needs and 2. Product features and 3. To market strategy
opportunities development
• Understand care needs from eldercare experts
Product
development •Leverage on Warrior robot (payload) technology
i-care •Telepresence robots: Keep an eye, monitor
medication adherence
Product
features •Bed lifting, grocery carrying
•Integrated health monitoring
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 31 -

32. i-home - Core growth(US)
i-care
1. Needs and 2. Product features and 3. To market strategy
opportunities development
Existing i-home
retailers portal
Robot-
Social linking
media App
Increased
Smart home
brand
exhibition
loyalty
Eldercare i-care
Patient Increased ease
Conference Identification and flexibility
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 32 -

33. i-home - Core growth(US)
i-care
1. Needs and 2. Product features and 3. To market strategy
opportunities development
Existing i-home
i-Care for my mom without quittingSocial
media
retailers portal
Robot-
linking
App
my job Smart home
Increased
brand
exhibition
loyalty
Eldercare i-care
Patient Increased ease
Conference Identification and flexibility
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 33 -

34. i-globe – Selling globally
I- globe
Geographical diversification Aim
Identify potential
markets Concept
Global
Partnerships Method
NPV:
32 M Reward
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 34 -

35. i-globe – Selling globally
Timing & Expansion Schedule
High
DE
FR
JP
Labor Cost
SP
IT
UK
SK
CH
BR
IN
Low
Low High
GDP per Capita
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 35 -

36. i-globe – Selling globally
Timing & Expansion Schedule
TIER 1 (1-2 years): Expand Now
High
Germany, France, Japan
DE
 Favorable market conditions for
expansion
FR 1
Tier
 Systematic expansion: Enter 1
market at the time
JP
Labor Cost
SP
Tier 2UK IT
SK
CH
Tier 3
BR
IN
Low
Low High
GDP per Capita
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 36 -

37. i-globe – Selling globally
Timing & Expansion Schedule
TIER 1 (1-2 years): Expand Now
High
Germany, France, Japan
DE
 Favorable market conditions for
expansion
FR 1
Tier
 Systematic expansion: Enter 1
market at the time
JP
Labor Cost
SP TIER 2 (2- 4 years): Wait and see
Tier 2UK IT Spain, Italy, United Kingdom, South
Korea
SK  Assess market conditions
 Source for suitable partners
CH
Tier 3 TIER 3: Do not invest for now
BR
IN India, China, Brazil
Low
 Current market statistics are not
Low High extremely unfavorable for
GDP per Capita
expansion
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 37 -

38. i-globe – Selling globally
Selecting partnership as a distributor model
• Leveraging on the success • Distribution network and
of partnership model muscle
• Providing superior product
to retailers
• Local knowledge
• Helping retailers
understand product
• Opportunity to cross-sell
• Allowing global access to
new products
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 38 -

39. i-shine – Strategic Bets in Solar
i-shine
US Solar Revenue and Installation
Growth
35 30
Revenue
30
Aim Installation 25
Diversify 25
20
20
15
15
Concept Precision 10
10
robotics
5 +21% 5
CAGR
0 0
Method Joint- venture & 2009 2014
strategic alliances
Dividend Wafer manipulation
expertise
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 39 -

40. Industry Insights
i-shine – Strategic Bets in Solar
2005 – 2010 Investments in U.S. Solar by Component Product
Symbol Type
Polysilicon
Wafer
Source:
Cell Announcements – fDiMarkets.com
Site Selection Magazine
Module
Thin film
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 40 -

41. i-shine – Strategic Bets in Solar
Strategic bets
Precision Robotics Solar Wafer Manufacturer
Penetrate Solar Power Optimize production
Segment using new technology
Financial Capabilities Technological know-
how
Strategic Fit
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 41 -

42. Sowing the seeds
Talent model
Key Components
1
i-home YouTube video competition to
identify conceptualizers
2
Referral bonus for staff who
recommend a valuable new hire
3
Attract solar researchers through a
patent award programme
4
Intervarsity robotics competition 
Internship full-time
5
Hire on campus in India (IIT, BITS)
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 42 -

43. Sowing the seeds
Talent model
Key Components
1
i-home YouTube video competition to
Hitting the ground running
identify conceptualizers
+
2 Deep talent capabilities in
Referral bonus for staff who innovation
recommend a valuable new hire +
3 Develop expertise in solar
Attract solar researchers through a research
patent award programme +
Constant pool of analysts
4
Intervarsity robotics competition  +
Internship full-time Global capability and
perspective
5 =
Hire on campus in India (IIT, BITS) International growth SUCCESS
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 43 -

44. Optimizing Quality
Supply Chain
Phase 1 Phase 2 Phase 3
Processes
Post-Manufacturing/
Development Manufacturing
Optimization
• Communicate
anticipated
production and
component needs
• Assist in input
selection
Prevent
shortruns
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 44 -

45. Optimizing Quality
Supply Chain
Phase 1 Phase 2 Phase 3
Processes
Post-Manufacturing/
Development Manufacturing
Optimization
• Communicate • Progress
anticipated monitoring
production and • Interim production
component needs assessment
• Assist in input • Provide input
selection clarification
Prevent Anticipate
shortruns shortruns
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 45 -

46. Optimizing Quality
Supply Chain
Phase 1 Phase 2 Phase 3
Processes
Post-Manufacturing/
Development Manufacturing
Optimization
• Communicate • Progress • Relaying
anticipated monitoring optimization
production and • Interim production feedback for
component needs assessment incorporation
• Assist in input • Provide input • Quality
selection clarification assessment
scorecard
Prevent Anticipate
Manage quality
shortruns shortruns
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 46 -

47. Financial Impact
Financial Impact
25
20 Key Points
Operating Profit (US$ m)
15
10
1 i-Shine
Macro Economics 5
-GDP i-Globe
-Industry MS 0  NPV (i-Home) =
i-Home US$65m
-etc. -5 2010 2011 2012 2013 2014 2015 2016 2017 2018
-10  NPV (i-Globe)
2
Business assumptions -15 =US$38m
- Price -20
- Penetration  NPV (i-Shine) =
- Growth
- Costs
Sensitivity analysis
US$32m
- etc.
25
 Expected Total NPV =
20
US$134 million
Operating Income (US$ m)
3
Financial assumptions 15
- Costs
- Productivity 10  Discount rate = 13%
- WACC
5 Base
0 Down
-5 2010 2011 2012 2013 2014 2015 2016 2017 2018
-10
-15
-20
Situation Analysis Alternatives Recommendations Implementation Conclusion
4 - 47 -
7

48. Implementation Timeline
New Product New Market
2010 2011 2012 2013 2014 2015
i-home Product development i-care i-garden i-cook
Marketing
Launch IT Apps
Germany France
i-globe Search for partner Japan
Negotiate contract
Commence operations
i-shine Search for partner Solar
Negotiate contract
Commence research &
development
Talent You-Tube video
model competition
Robotics challenge
Recruitment from Indian
Universities
Supply
chain Implement quality
monitoring
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 48 -

49. Monitoring risks of recommendations
Triggering options to address a scenario should focus on the underlying drivers of the scenario.
Scenario Primary Drivers that Trigger Measurable Factors to
Trigger Point
the Scenario Monitor
Delays in
securing
distributor
Cost overruns
in product
development
Below expected
market
acceptance
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 49 -

50. Monitoring risks of recommendations
Triggering options to address a scenario should focus on the underlying drivers of the scenario.
Scenario Primary Drivers that Trigger Measurable Factors to
Trigger Point
the Scenario Monitor
1.Disagreements over 1.Implementation 1.Delay > 3 months
Delays in
partnership structure schedule
securing
distributor
1.Technology limitations 1.Number of R&D hours 1. >50% increase in R&D
necessitating increased 2.Budget variance
hours
Cost overruns R&D
in product 2. >50% cost overrun
development 2.Increase in skilled hires
1.Immaturity of markets 1.Market share 1.Market share < 5%
Below expected after 3 years
2.Unproven research
market
acceptance capabilities in new
segments
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 50 -

51. Risk mitigation plans
i-Globe
Look for alternative distributors
Delays in securing distributor +
Adopt direct-to-retailers approach
i-Home
Cost overruns in product development Partner schools in R&D of
home-care products
i-Shine
Shelve partnership plans
Below expected market acceptance +
Explore alternative industries
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 51 -

52. What we have delivered
Summary and payoffs Challenge addressed Target
i-home
• Blue oceans in consumer •Optimizing market mix High
markets
•Augmenting revenue streams
• 65M NPV
Innovation
•Managing Innovation
i-globe •Marketing vacuums •Optimizing market mix
internationally
•Augmenting revenue streams
• 38M NPV
i-shine
•Marketing vacuums •Optimizing market mix Low Market High
internationally
•Augmenting revenue streams Share
•32M NPV
•Managing Innovation
Talent
Model •Dynamic management of talent •Managing talent and
innovation
7% increase in US
Market Share
Supply
+
•Ensuring quality of products •Augmenting revenue streams
Chain Lead industry in
innovation
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 52 -

53. Appendix
Our understanding Strategic bets i-Robot i-Cook
Business model i-shine strategic core Stock price i-secure
Innovation led approach i-shine US components Managing PLC i-sanitize
Business segments i-shine alliance Domestic distribution
Industry position International distribution I-globe
Success factors Talent model Patent breakdown Labor cost by country
Objectives Sowing the seeds Third party developers Country analysis
Challenges Growth prioritization matrix
Winning formula Optimizing Quality Military Germany Robotics Sector
Supply chain Opportunity
Alternative analysis Enabling technology I-Shine
Option matrix Financial Impact Industry Analysis 1
Consumer vs Military Financial performance i-home Industry Analysis 2
Market mix analysis Consumer market selection Solar Sector Growth
US Vacuum Solar Sector Support
Core growth options Implementation Caregiver status
i-home strategic core Risk monitoring Opportunity cost Talent Model
i-home options Risk mitigation Cost of giving care Total Rewards Strategy
i-home needs Implementation timeline I phone app
i-home features Product company Financial Impacts
i-home to market Conclusion Alternatives Analysis
Summary slide I-garden I-home
i-globe strategic core i-garden 1 I-globe
i-globe schedule i-garden 2 I-shine
i-globe partnerships i-garden 3 Combined NPV
Combined revenue
- 53 -

54. i-Robot
- 54 -

55. iRobot Stock Price
- 55 -

56. Managing PLC
- 56 -

57. Domestic distribution model
- 57 -

58. International distribution model
- 58 -

59. Military opportunities
- 59 -

60. Military – enabling technologies
- 60 -

61. Patent breakdown
- 61 -

62. Third party developers
- 62 -

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
Market Size Market Growth Share Regulation Dependence on Funding
Global Consumer $2,318,181,818 23% 7.085% Low Low
US Military $11,000,000,000 18% 1.094% High High
- 63 -

64. Why not integrate along the value chain
Cyclical Demand
Higher fixed cost = higher risk
- 64 -

65. Why not expanding within US with Vacuum
Situation Implication
Market saturation Stagnant sales growth
Poor economic recovery Lower domestic demand
Poor prospects of B2B
Tough to achieve scale
(Fragmented)
- 65 -

66. i-home
- 66 -

67. Caregiver status
- 67 -

68. Opportunity cost of caretaking
- 68 -

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.
i-secure
i-vacuum i-sanitize
i-home
i-garden i-cook
Pricing
i-care
- 69 -

70. Product comparison within i-home
Market Market Technology Overall
Opportunity Accessibility compatibility 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
- 70 -

71. i-home - Core growth(US)
i-
garden
1. Needs and 2. Product features and 3. To market strategy
opportunities development
A surprisingly high percentage (80%) of U.S. households
has a private lawn. The potential collective effect on our Large number of US house
daily lives is significant. Consumers annually spend around
$40 billion per year to maintain and improve their yards, and hold with lawn
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.
Pricing Summer Winter
Lawn Mowing Snow Shovel
- 71 -

72. i-home - Core growth(US)
i-
garden
1. Needs and 2. Product features and 3. To market strategy
opportunities development
• Understand care needs from garden owners
Product
development •Leverage on existing technology
i-
garden •Human Robot Interaction (Programming)
Product
•Semi-Autonomous operations
features
•Snow shoveling/ Lawn mowing
- 72 -

73. i-home - Core growth(US)
i-
garden
1. Needs and 2. Product features and 3. To market strategy
opportunities development
Existing i-home
retailers portal
Robot-
Social linking
media App
Increased
Smart home
brand
exhibition
loyalty
Eldercare i-garden
Patient Increased ease
Conference Identification and flexibility
- 73 -

74. i-home - Core growth(US)
i-cook
1. Needs and 2. Product features and 3. To market strategy
opportunities development
Automation of Kitchen
appliances
Pricing
- 74 -

75. i-home - Core growth(US)
i-
secure
1. Needs and 2. Product features and 3. To market strategy
opportunities development
Safety Concerns
Pricing
- 75 -

76. i-home - Core growth(US)
i-
sanitize
1. Needs and 2. Product features and 3. To market strategy
opportunities development
Growing silver-hair and
disabled market
Pricing
- 76 -

77. i-globe
- 77 -

78. Hourly compensation costs
U.S. dollars, and as a percent of
Table 1. Hourly compensation costs in costs in the United States
manufacturing,
Hourly Compensation Costs
Country or Area in U.S. dollars U.S.=100
1997 (1) 2009 1997(1) 2009
Norway 26.97 53.89 119 161
Denmark 24.64 49.56 109 148
Belgium 28.23 49.40 125 147
Austria 27.38 48.04 121 143
Germany 29.26 46.52 129 139
Switzerland 28.33 44.29 125 132
Finland 22.17 43.77 98 131
Netherlands 23.44 43.50 103 130
France 24.99 40.08 110 120
Sweden 25.11 39.87 111 119
Ireland 17.15 39.02 76 116
Italy 19.67 34.97 87 104
Australia 19.12 34.62 84 103
United States 22.67 33.53 100 100
United Kingdom 18.24 30.78 80 92
Japan 22.28 30.36 98 91
Canada 18.89 29.60 83 88
Spain 13.91 27.74 61 83
Greece NA 19.23 NA 57
Israel 12.32 18.39 54 55
Singapore 12.15 17.50 54 52
New Zealand 12.37 17.44 55 52
Korea, Republic of 9.42 14.20 42 42
Portugal 6.38 11.95 28 36
Slovakia 2.86 11.24 13 34
Czech Republic 3.24 11.21 14 33
Argentina 7.43 10.14 33 30
NA=data not available.
(1) With the exception of Estonia and Greece, 1997 is the first year78 - are available for all economies.
- data

79. Country scores
2010 GDP per Labor Population Overall
Countries capital/$US Score costs Score size/mil Score 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 6.2
United
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
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80. Growth Prioritization Matrix
Growth Options Prioritization Select Attractiveness Considerations
High  Market Size
Place Strategic Bets Core Growth Options
 Market Growth
Market Attractiveness
Select Accessibility Considerations
 Can iRobot adapt its current expertise in the new
segment/market
 Customer Characteristics
Divest Holdings/Do Not
Invest Consolidate
Low High
Accessibility to iRobot
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81. Germany’s Robotics Sector
- 81 -

82. i-shine
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83. Consideration of Different Industries
Historical robot use – Size of current
Current R&D – Future Looking
market
Conclusion: Energy sector is a rapidly developing robotics sector
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84. Industrial robot per 10,000 employed
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85. Solar Market justification
US Solar Revenue and Installation Growth Is Fueled by Government
Growth Funding and Technology Advances
35 30  Industry growth will likely be driven by government
Revenue (in Billions USD)
Revenue incentives and public policies, such as production tax
30 25
Installation credits, feed-in-tariffs, and Renewable Portfolio
Installation (in GW)
25 Standards
20
20  ARRA allocated nearly $70B in funding to energy-
15 related initiatives, including loan guarantees and tax
15 credits for renewable energy manufacturers
10
10  Technological advances have driven cost
5 +21% 5 improvements, increased output, and improved
CAGR conversion efficiency
0 0
2009 2014
Annual U.S. Installed Capacity (MW) Energy Demand, Price Volatility and
Environmental Concern Also Propel
357 Solar Demand
 Price increases for traditional energy will likely bring
220 solar closer to grid parity and increase demand
 Traditional fossil fuel sources are prone to
140
105 unpredictable price volatility whereas prices of
84
66 renewable are more stable
 Growing concern over environmental issues will likely
2003 2004 2005 2006 2007 2008
maintain increased demand for solar
- 85 -

86. Growth Trends in Solar
- 86 -

87. Solar Wafer - Manual labour
- 87 -

88. Solar Wafers
- 88 -

89. Talent
- 89 -

90. Total rewards strategy
Rewarding Employees
Career Opportunities
Compensation •Career Planning
•Base Pay •Mentoring Programs
•Annual Bonuses •Competency Modeling
•Long-Term Incentives •Training Programs Increase Employee
•Other Financial & Non- •Work Experience
Financial Rewards Retention
Culture Motivate & Encourage
•Leadership Styles “Total Rewards” Innovation
•Communication/
Decision-Making
Strategy Physical Environment
•Nature of Work
•Employee Participation/ •Interaction with Others
Empowerment •Flexibility
•Internal or External
Focus of Organization
Benefits Enhance Employee
•Health, Dental
•Vision Care
Productivity
•Paid Time Off
•Life Insurance
•Short/Long-Term Disability
•Retirement Plans
•Spending Accounts
•Other Benefits
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91. Alternatives Evaluation
Alternatives NPV $m
1 Consumer robots in US 65.1
2 Military robots in US 30.7
Consumer robots in non-
3 37.7
US
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
Situation Analysis Alternatives Recommendations Implementation Conclusion
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92. i-Home NPV
Key Assumptions
Average selling price $350
Market penetration 0.25% i-Home
Initial Year (2011) Revenue $ 26152479 20
Revenue Growth 15%
Operating Income (US$ m)
15
Gross Margin 31%
Operating Expenses - R&D 2 000000 10
Operating Expenses - Marketing
5
& Selling $3000000
Operating Expenses - General & 0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Administrative $3 000000 -5
Growth in Operating Expenses
-10
(Marketing & Selling + General
& Administrative 3%
Situation Analysis Alternatives Recommendations Implementation Conclusion
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93. i-Globe NPV
Key Assumptions
Average selling price $350
Market penetration 10%
Initial Year (2011) Revenue $7560000 i-Globe
12
Revenue Growth 23%
10
Gross Margin 31%
Operating Income (US$ m)
8
Operating Expenses - R&D $-
6
Operating Expenses -
Marketing & Selling $1500000 4
Operating Expenses - General 2
& Administrative $1500000 0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Growth in Operating -2
Expenses (Marketing & -4
Selling + General &
Administrative 5%
Situation Analysis Alternatives Recommendations Implementation Conclusion
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94. i-Shine NPV
Key Assumptions
Average selling price $13 000
Market penetration 5%
Initial Year (2011) i-Shine
Revenue $10000000 12
10
Revenue Growth 20%
Operating Income (US$ m)
8
Gross Margin 30%
6
Operating Expenses -
4
R&D $ 1000000 2
Operating Expenses - 0
Marketing & Selling $1000000 -2 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Operating Expenses - -4
General & Administrative $2000000 -6
Growth in Operating
Expenses (Marketing &
Selling + General &
Administrative 5%
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 94 -

95. Combined NPV
50
40
Operating Cashflow (US$ m)
30
20 i-Shine
i-Globe
10 i-Home
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
-10
-20
Situation Analysis Alternatives Recommendations Implementation Conclusion
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96. Revenue Breakdown
$1,800
$1,600
$1,400
$1,200
i-Shine
$1,000
i-Globe
$800
i-Home
$600
Organic Revenue
$400
$200
$-
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Revenue
Breakdown
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Organic
Revenu
e 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%
Situation Analysis Alternatives Recommendations Implementation Conclusion
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97. I-home
2010 2011 2012 2013 2014 2015
$ 39 774 $ 45 740
Revenue 0$ 26 152 479 $ 30 075 351 $ 34 586 654 652 849
$ 27 627 $ 31 771
Cost of Revenue 0$ 18 165 655 $ 20 890 503 $ 24 024 079 690 844
$ 7 986 $ 9 184 $ 12 146 $ 13 969
Gross Profit 0 824 848 $ 10 562 575 961 005
Operating Expenses
$ 2 000 $ 2 000 $ 2 000 $ 2 000 $ 2 000
R&D 000 000 000 $ 2 000 000 000 000
$ 3 000 $ 3 090 $ 3 182 $ 3 376 $ 3 477
Marketing & Selling 000 000 700 $ 3 278 181 526 822
$ 3 000 $ 3 090 $ 3 182 $ 3 376 $ 3 477
General & Administrative 000 000 700 $ 3 278 181 526 822
$ 8 000 $ 8 180 $ 8 365 $ 8 753 $ 8 955
Total Operating Expenses 000 000 400 $ 8 556 362 053 644
$ (8 000 $ (193 $ 819 $ 3 393 $ 5 013
Operating Income (Loss) 000) 176) 448 $ 2 006 213 908 361
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 97 -

98. I-globe
2010 2011 2012 2013 2014 2015
$ $ 14 068
Revenue 0 $ 7 560 000 $ 9 298 800 11 437 524 155 $ 17 303 830
$ $ 9 771
Cost of Revenue 0 5251217.312 $ 6 458 997 7 944 567 817 $ 12 019 335
$ $ 4 296
Gross Profit 0 $ 2 308 783 $ 2 839 803 3 492 957 338 $ 5 284 495
Operating Expenses
$ $
R&D - $ - $ - - $ - $ -
$ 1 500 $ $ 1 823
Marketing & Selling 000 $ 1 575 000 $ 1 653 750 1 736 438 259 $ 1 914 422
$ 1 500 $ $ 1 823
General & Administrative 000 $ 1 575 000 $ 1 653 750 1 736 438 259 $ 1 914 422
$ 3 000 $ $ 3 646
Total Operating Expenses 000 $ 3 150 000 $ 3 307 500 3 472 875 519 $ 3 828 845
$ (3 000 $ $ 649
Operating Income (Loss) 000) $ (841 217) $ (467 697) 20 082 819 $ 1 455 650
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 98 -

99. i-shine
2010 2011 2012 2013 2014 2015
Revenue 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
$ 6 220
Gross Profit 0 $ 3 000 000 $ 3 600 000 $ 4 320 000 $ 5 184 000 800
Operating Expenses
$ 1 000
R&D $ 1 000 000 $ 1 000 000 $ 1 000 000 $ 1 000 000 $ 1 000 000 000
$ 1 276
Marketing & Selling $ 1 000 000 $ 1 050 000 $ 1 102 500 $ 1 157 625 $ 1 215 506 282
$ 2 552
General & Administrative $ 2 000 000 $ 2 100 000 $ 2 205 000 $ 2 315 250 $ 2 431 013 563
$ 4 828
Total Operating Expenses $ 4 000 000 $ 4 150 000 $ 4 307 500 $ 4 472 875 $ 4 646 519 845
$ (4 000 $ (1 150 $ (707 $ (152 $ 1 391
Operating Income (Loss) 000) 000) 500) 875) $ 537 481 955
Situation Analysis Alternatives Recommendations Implementation Conclusion
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100. 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%
Situation Analysis Alternatives Recommendations Implementation Conclusion
- 100 -