Challenge

Challenges

Augmenting revenue streams

Managing talent and innovation

Optimizing market mix

Home cleaning

robots

Competition from strong players

Military robots

Volatility and unknown demand of US government

Technology

Obsolescence of technology

Threats to Revenue Streams

Market

Share

Inn

ova

tio

n

Low High

High

Target

Core Growth options

Strategic Bets

TalentModel

Supply Chain

Winning Formula

Analyzing the market mix

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

Mar

ket

Att

ract

iven

ess

High

i-home - Core growth(US)

Automating processeswithin a home

>Middle classhouseholds & innovators

Creating blue oceans in consumer markets

Concept

Aim

Reward

Segment

I- home

NPV:

65M

i-home - Core growth(US)

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

• 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

i-globe – Selling globally

• Distribution network and

muscle

• Local knowledge

• Opportunity to cross-sell

Optimize production using new technology

Solar Wafer Manufacturer Precision Robotics

Penetrate Solar Power Segment

Strategic Fit

Technological know-how

Financial Capabilities

Strategic bets

i-shine – Strategic Bets in Solar

i-home - Core growth(US)

Pricing

1. Needs and

opportunities

2. Product features and

development3. To market strategy

Growing silver-hair and

disabled market

Rising cost of care-giving

i-care

$42

$44

$46

$48

$50

$52

$54

2004 2007 Median household income

US$

/00

0s

Average Annual Cost of Home Health Aide

+ 2.7%

Source: Genworth Financial 2007 Cost of Care Survey

Optimizing Quality

•Communicate anticipated production and component needs

•Assist in input selection

Pro

cess

es

Development ManufacturingPost-Manufacturing/

Optimization

Phase 1 Phase 2 Phase 3

•Progress monitoring•Interim production

assessment•Provide input

clarification

•Relaying optimization feedback for incorporation

•Quality assessment scorecard

Prevent shortrunsAnticipate

shortrunsManage quality

Supply Chain

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

•Optimizing market mix

•Augmenting revenue streams

•Marketing vacuums internationally

•32M NPV•Optimizing market mix

•Augmenting revenue streams

•Managing Innovation

•Dynamic management of talent •Managing talent and innovation

•Ensuring quality of products •Augmenting revenue streams

Market

Share

Inn

ova

tio

n

Low High

High

Target

i-home

i-globe

i-shine

Talent

Model

Supply

Chain

7% increase in USMarket Share

Lead industry in innovation

+