IoT Conference Call December 18, :30 GMT

Transcription

1 Dial in details / Replay details: Are on the ARM website at If you have any questions: As we won t be taking questions on the call, please any questions ahead of time to Investor.relations@arm.com IoT Conference Call December 18, :30 GMT Charlene A. Marini 1

2 Cautionary Statement Concerning Forward-Looking Statements This presentation contains forward-looking statements as defined in section 102 of the Private Securities Litigation Reform Act of These statements are subject to risk factors associated with the semiconductor and intellectual property businesses. When used in this document, the words anticipates, may, can, believes, expects, projects, intends, likely, similar expressions and any other statements that are not historical facts, in each case as they relate to ARM, its management or its businesses and financial performance and condition are intended to identify those assertions as forward-looking statements. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a variety of variables, many of which are beyond our control. These variables could cause actual results or trends to differ materially and include, but are not limited to: failure to realize the benefits of our recent acquisitions, unforeseen liabilities arising from our recent acquisitions, price fluctuations, actual demand, the availability of software and operating systems compatible with our intellectual property, the continued demand for products including ARM s intellectual property, delays in the design process or delays in a customer s project that uses ARM s technology, the success of our semiconductor partners, loss of market and industry competition, exchange and currency fluctuations, any future strategic investments or acquisitions, rapid technological change, regulatory developments,arm s ability to negotiate, structure, monitor and enforce agreements for the determination and payment of royalties, actual or potential litigation, changes in tax laws, interest rates and access to capital markets, political, economic and financial market conditions in various countries and regions, including the commercial credit environment and uncertainties arising out of the financial market and liquidity crises, and capital expenditure requirements. ARM does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated. More information about potential factors that could affect ARM s business and financial results is included in ARM s Annual Report on Form 20- F for the fiscal year ended December 31, 2012 including (without limitation) under the captions, Risk Factors and Operating and Financial Review and Prospects, which is on file with the Securities and Exchange Commission (the SEC ) and available at the SEC s website at

3 The IoT Spans Sensor to Server Existing software and hardware paradigms are being disrupted The ARM architecture is the only architecture that can span end to end Billions of Nodes 3

4 Trends Driving IoT Cloud Mobile Internet Decreasing Hardware Costs App Culture 4

5 Low, low, hardware costs ARM Cortex-M0 microcontroller $0.49 <$0.30 Wi-Fi $1.30 $0.80 Bluetooth $0.75 $0.35 MEMS Sensor (vibration/accelerometer) $1.30 $0.95 Camera (1.8 MP CMOS image sensor) $1.70 $1.10 GPS $1.15 $0.65 Source: Gartner (2013), ARM Estimate 5

6 Intelligence is Emerging Everywhere Precision Agriculture Street light Efficiency Leak Detection Chronic Disease Management 6

7 The Internet of Things Key Enablers Will Be: Tiny, low-cost sensors Secure, standardized Internet and web to the tiniest of devices Authentication and trust Universal data model semantics Easy, open development Volume 26 Billion Installed Units by Gartner Device Categories 7

8 IoT Architecture Server nodes Security Data Storage & Analytics Gateway/AP Communication Management nodes Local Processing Discovery Applications Standards-based End-to-End Security, Web, Data Objects & Management Little Data BIG DATA 8

9 Efficient Sensor Nodes 9

10 ARM in Embedded Intelligence Today Relative growth in MCU & smartcard 2 billion ARM Cortex-M-based devices shipped in 2012 by leading semiconductor companies MCUs radios sensors Intelligence starting at $

11 Trends: Integration of MCU, sensor and radio IoT end nodes combine these three critical elements ARM is strong in current MCU and low power radio market Smart sensors is the next trend Trend to integrate into a single package Analog and Flash doesn t scale down as fast as logic separate dies Controller Radio Sensor 11

12 Breaking Down the Billions Devices will be increasingly connected Attachment rate dependent upon business models and end-to-end platform development Units(000s) 5,000,000 4,500,000 4,000,000 3,500,000 Embedded Intelligence Ensuring secure, capable nodes will require 32-bit intelligence 3,000,000 2,500,000 2,000,000 1,500,000 New connected automotive New connected industrial New connected medical New Connected Consumer Gateways, Controllers, Hubs Processing performance and unit volume will vary widely by deployment types and topology choices 1,000, , Source: IHS Inc. 12

13 Increasing Efficiencies in Cities Parking EV Charging Public Transportation Car Fitness Water Management Building Automation Lighting ~1M Smart Parking Spaces by 2020 Source: Navigant Research 13

14 Street Lighting Application 6LoWPAN mesh technology over sub GHz End-to-end solution with web integration and security Cellular NanoService Platform NanoService NanoStack Street Light M2M Nodes (( NanoRouter )) Internet customer-specific & reference apps 6LoWPAN, CoAP, JSON 6LoWPAN, CoAP, JSON IPv4/6, HTTP, JSON 14

15 Lighting Commercial Connected sensors and lighting control Units(000s) Potential Cortex-M Sockets Systems also incorporate control panels, and wireless repeater/hubs as needed Occupancy Sensors Environmental Sensors Connected Ballast Images Courtesy of PhotonStar LED Source: IHS Inc and ARM 15

16 In 2020 and the average family of four SOURCE: "Building Blocks for Smart Networks" (Organization for Economic Cooperation and Development, 2013) 16 The number of Internet-connected devices projected to be in the home of the average family of four (with two teenage children) in 2020 up from an average of about 10 connected devices in 2012.

17 In the Home Smoke alarms Security cameras Smart meters Toys Lighting Health monitoring 25B smart appliances shipping B installed smart meters by 2020 Sources: Pike Research, Gigaom 12.2M home automation systems shipping

18 For the Individual Smart Watches Health Monitoring Patches Smart Glasses Baby Monitors Fitness Clips Smart Jewelry Posture Monitors ~70 Million wearables shipping in 2017 Source: Juniper Research 18

19 Opening Up Embedded Low-cost, easy-to-use platforms enable broad experimentation and development 1,000,000s Platform 19

20 Opening Up Innovation 20

21 Summary Devices Shipped (Millions of Units) 2017 Devices CAGR Chips/Device 2017 Chips Chip CAGR Automotive 3,800 10% 1 3,800 10% Smart Card 8,500 10% 1 8,500 10% Microcontrollers 11,400 5% 1 11,400 5% Embedded 3,000 30% 1 3,000 30% Connectivity EBC/Hubs/ 20 10% % Intelligent Systems Wearables 70 46% % Others 3,000 10% 1-2 3,000 10% 21