VC & CVC Stream: The Missing Piece

Michael DimelowVP Business Development, ARM

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 licenses Growing by ~100 every year

Over 330 potential royalty payers

8.7bn ARM-based chips in ‘12~25% CAGR over last 5 years

How many ARM’s Do You Have?

Average Selling Price of a Semiconductor Chip

Opportunity

>$25$10-15$3-6$1-2

Volu

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Strategic Investor: Semi & Software Investment Goals:

1. Direct involvement in ecosystem2. Window to technology3. Long-term group revenue4. Financial return

Investment strategies:5. Actively expand ARM ecosystem6. Seed markets with ARM Technology7. Explore new business models8. Appropriate return

Example – Calxeda Inc

EngagementsCompany Overview:• Developing server chips based on ARM technology• Fabless semiconductor companyARM Ownership:• UndisclosedStrategic Rationale for Investment:• Establish presence in low power server chipsRecent Events:• Significant customer traction for ultra low power compute• Closed $55 Million Funding Round Q4’2012

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

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

Thank you