2. VC & CVC Stream: The Missing Piece
Michael Dimelow VP 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 licenses Growing 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 5575or