VC & CVC Stream: The Missing Piece Michael Dimelow VP 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? Volume Opportunity $1-2 $3-6 $10-15 >$25 Average Selling Price of a Semiconductor Chip

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

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

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

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