VC & CVC Stream: The Missing Piece

2. VC & CVC Stream: The Missing Piece Michael DimelowVP Business Development, ARM

3. ARM Introduction • Global leader in the development of semiconductor IP - R&D outsourcing • Innovative business model yields high margins - license, royalties, technology reuse • Long-term, secular growth markets Approximately 1000 licensesGrowing by ~100 every year Over 330 potential royalty payers 8.7bn ARM-based chips in ‘12~25% CAGR over last 5 years

4. How many ARM’s Do You Have? Volume Opportunity $1-2 $3-6 $10-15 >$25 Average Selling Price of a Semiconductor Chip

5. Strategic Investor: Semi & Software • Investment Goals: • Direct involvement in ecosystem • Window to technology • Long-term group revenue • Financial return • Investment strategies: • Actively expand ARM ecosystem • Seed markets with ARM Technology • Explore new business models • Appropriate return

6. Example – Calxeda Inc Company Overview: • Developing server chips based on ARM technology • Fabless semiconductor company ARM Ownership: • Undisclosed Strategic Rationale for Investment: • Establish presence in low power server chips Recent Events: • Significant customer traction for ultra low power compute • Closed $55 Million Funding Round Q4’2012 Engagements

7. Working with Financials • Actively seek co-investors that: • Keep the company focused on the day job • Have a history of building businesses • Healthy debate with strategic’s for the benefit of the company • Visibility of complementary deal flow • Jointly qualify business model and technology fields • Identify portfolio collaboration opportunities • ARM is an active investor • Where an investment continues to serve a strategic purpose

8. Thank you Contacts: michael.dimelow@arm.com or +44 77 1000 5575 adam.bastin@arm.com or +44 79 8030 2218