2018 Analyst Day March 1, 2018 Agenda 10:00 – 10:30 Continental Breakfast 10:30 – 10:45 Welcome | Colin Angle, Chairman & CEO 10:45 – 11:15 Christian Cerda, COO 11:15 – 11:45 Jennifer Lichtenheim, VP Sales - Americas 11:45 – 12:00 Q&A | Break 12:00 – 12:15 Glen Weinstein, EVP & CLO 12:15 – 12:45 Alison Dean, CFO 12:45 – 1:00 Q&A 1:00 – 2:00 Lunch with iRobot Management March 1, 2018 | 2 Forward Looking Statements • Certain statements made in this presentation that are not based on historical information are forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. • These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. • Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. iRobot Corporation undertakes no obligation to update or revise the information contained in this presentation, whether as a result of new information, future events or circumstances or otherwise. • For additional disclosure regarding these and other risks faced by iRobot Corporation, see the disclosure contained in our public filings with the Securities and Exchange Commission. March 1, 2018 | 3 01 Colin Angle Chairman & CEO March 1, 2018 | 4 Growth & Technology March 1, 2018 | 5 Four Growth Drivers Proven U.S. Marketing Programs; 1 Direct Control in Japan and 50% of EMEA 2 Low Household Penetration 3 Accelerating Global RVC Category Growth 4 Product and Technology Leadership March 1, 2018 | 6 Global Growth U.S. Revenue EMEA Revenue APAC Revenue 500 500 500 450 450 450 400 400 400 350 350 350 300 300 300 250 250 250 200 200 200 150 150 150 100 100 100 Rest of Asia Japan 50 50 50 - - - FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 FY17 Sales and Marketing investment in U.S. | Apply proven model globally March 1, 2018 | 7 What’s Driving this Growth? Christian Cerda Jennifer Lichtenheim Chief Operating Officer VP Sales – Americas Global U.S. March 1, 2018 | 8 Current Product and Technology Leadership Camera vs. Laser Debris Extractors Dirt Detect Smart Simple Clean Delivering consumer benefit and value through patented technology March 1, 2018 | 9 Technical Leadership: Near Term Future Several New Products Advanced Mapping Ecosystem of Robots March 1, 2018 | 10 02 Christian Cerda COO March 1, 2018 | 11 Opportunity: Low Household Penetration Significant Opportunity for Expanded Robot Vacuum Adoption in U.S. 86MM HH’s 125MM HH’s ~13MM HH’s 26MM ~10% of Total HH’s Installed Base Incremental Potential Longer Term Potential Total U.S. HH's Immediate addressable market ~2X current installed base Source: iRobot, iRobot Demand Landscape Survey 2016, TCG Analysis. Updated with 2017 Actuals March 1, 2018 | 12 RVC Adoption Curve* U.S. U.S. RVC 2017 • #1 Brand of robotic vacuum ~10% • >80% segment share • High consumer satisfaction U.S. RVC 2016 and net promoter scores ~9% U.S. RVC 2015 ~8% Mainstream Innovators Early Adopters Early Majority 2.5% 13.5% 68% 13.5% 2.5% U.S. household Adoption (%) Even more opportunity with international household penetration of ~2-3% *Based on Everett Rogers Product Adoption Curve March 1, 2018 | 13 RVC Segment Continues to Grow Now 23% of Total Vacuums* Global Vacuum Cleaner Market >$200 ($ Retail)* 2012: ~$5B Market 2017: $7.5B Market 8.6% CAGR RVC: 22% CAGR RVC 13% RVC 23% Non-RVC Non-RVC 87% Non-RVC: 77% 6% CAGR RVC segment (>$200) growth expected to significantly outpace overall vacuum cleaner market growth (>$200) *Source: Global market size for vacuum cleaners >$200 (NPD, GfK, and iRobot internal estimates) March 1, 2018 | 14 Many Brands have Launched into the RVC Segment 2015 2016 2017 Dyson 360 eye Neato Botvac Neato Botvac Panasonic Rulo Dyson 360 eye Samsung Neato Botvac Xiaomi Mi Bosch Roxxter Neato D7 Samsung R7070 (Japan) D Series Connected (Japan) (U.S.A-EMEA) POWERbot Turbo D3/D5 (China) LG Hombot Square Dirt Devil Spider Haier SWR-T320 Bissell SmartClean bObsweep Ecovacs DT85g (China) ILIFE A4 (NA) Hoover Quest Turbo+ Shark Ion Robot V1 Ecovacs N79 Neato (EMEA) (China) (NA) bObi (NA) (NA) iRobot continues to lead in robot vacuum segment in spite of increased competition March 1, 2018 | 15 iRobot Roomba Share in the RVC Segment Global $ Segment Share 12% Others 19% LG 11% Samsung 17% Panasonic 10% Neato 10% Mi 62% Ecovacs 64% 63% iRobot CY15 CY16 CY17 iRobot continues to hold 60+% share despite new competition Source: NPD, GfK, iRobot internal estimates, RVC > $200 retail prices; incl. China Online March 1, 2018 | 16 Note: Year-on-Year Exchange Rates are applied in this update Drivers of Growth Marketing Activities are Impactful Marketing Generates Consumer Sales We research each stage of the customer journey to drive RVC category interest, iRobot brand preference and Roomba/Braava product selection Customer RVC Purchase Journey Interest Brand Awareness Product Familiarity Purchase Triggers RVC Category iRobot – Roomba/Braava Roomba 690 vs 980 Eg. Dual Multi-surface Rollers iRobot knows what to say/show, to whom and how at each stage of the customer journey March 1, 2018 | 17 Drivers of Growth Marketing Activities Drive Incremental Revenue & Profit iRobot performs an independent marketing audit of all marketing activities and consumer touchpoints in USA and major international Roomba Marketing Optimization markets (Illustration) • Roomba marketing investments – in total, individually and by geography - drive incremental sales and profit. We also optimize our marginal ROI above iRobot’s Operating Margin. • Braava – a newer, less established category than Roomba - delivers a lower ROI but is rapidly approaching positive territory as it grows • We use the learnings to continuously optimize future campaigns March 1, 2018 | 18 Roomba Continuous Innovation and Value to Consumers Advanced Mapping Advanced Cleaning Ecosystem of Robots Performance Future Roomba Models iAdapt® 2.0 Navigation Intelligent Cleaning Cloud Connectivity Carpet Boost R980 R960 $899 $699 AeroForce® Cleaning System Virtually no Maintenance R890 $499 Introduce Innovation in premium product; Flow innovation across lower price point products over time March 1, 2018 | 19 Operational Efficiencies and Continuous Cost Focus to Improve GM in Competitive Environment Gross Margin 51% 50% 49% 48% • Dedicated costing team 47% • Best-in-class Contract Manufacturers, dual sourcing • Improved efficiency: strategic sourcing and negotiation of component pricing 46% • Driving automation: robots-making-robots and robots-inspecting-robots • Established and growing iRobot Supply Chain team in China: Manufacturing, Quality, Supply Chain and Strategic Sourcing 45% • Continuous improvement in product quality FY13 FY14 FY15 FY16* FY17 FY18** Operational efficiencies have driven improved GMs in a competitive environment *Defense business sold in Q1 March 1, 2018 | 20 **Midpoint of Expectations provided 2/7/18 Braava Family - Developing a Second Revenue Stream Global Braava Family Revenue Growth FY2017 • U.S. revenue growth 65% • Braava family made up 14% of total robots shipped globally • Leverage marketing to Roomba FY15 FY16 FY17 installed base Floor mopping category continues to be a viable and complementary product to Roomba March 1, 2018 | 21 Continuous Global Growth - Domestic and International Revenue International Forward Integrations 48% 49% 51% 58% 52% 51% 49% 42% EMEA Japan FY15 FY16 FY17 FY18* U.S. International Direct control over >75% of global revenue following recent acquisitions enables better execution *Midpoint of Expectations provided 2/7/18 March 1, 2018 | 22 2018 Global Growth Drivers Proven U.S. Marketing Programs; 1 Direct Control in Japan and 50% of EMEA 2 Low Household Penetration 3 Accelerating Global RVC Category Growth 4 Product and Technology Leadership March 1, 2018 | 23 03 Jennifer Lichtenheim VP Sales - Americas March 1, 2018 | 24 U.S. Competitive Landscape 20%* 43%* 2015 2016 2017 *Year over year category growth March 1, 2018 | 25 Source: 2015 - 2017 NPD and iRobot internal estimates; RVC>$200 retail 2017 U.S. Floor Care Performance* RVC *Source: NPD Retail Tracking Services: 2017 March 1, 2018 | 26 2017 Floor Care Performance* *Source: NPD Retail Tracking Services: 2017 March 1, 2018 | 27 Awareness Catalysts Increased Trade Marketing Continued & New Category Media 500+ New & Expanded Competition Retailer Investment March 1, 2018 | 28 iRobot Roomba Driving Segment Growth US $ Segment Share 3% 2% 4% 5% 3% 2% 6% 1%2% All Others 10% Samsung Shark 85% Neato 88% iRobot 88% CY15 CY16 CY17 Source: NPD, iRobot internal estimates, RVC > $200 retail prices. Note: Year-on-Year Exchange Rates are applied in this update March 1, 2018 | 29 2017 U.S. Growth Drivers: Products Driving Technology Down Through Product Lines March 1, 2018 | 30 2017 U.S. Growth Drivers: Technology Advanced Mapping & App Capabilities March 1, 2018 | 31 2017 U.S. Growth Drivers: Integration Smart Home Integration March 1, 2018 | 32 2017 U.S. Growth Drivers: Retail Engagement Increase in Media Investments 2.3B media impressions Field Marketing Expansion Maintained National Promotion Cadence Targeted Distribution Expansion March 1, 2018 | 33 2017 U.S. Growth Drivers: Merchandising March 1, 2018 | 34 2017 U.S. Growth Drivers: Holidays SOLD OUT <16 +100% +60 hours vs. ‘16 Retailer TV Commercials Featuring iRobot 3B media impressions