Slides
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1 Arm Holdings plc SoftBank Group Corp. Building the future of computing on Arm investor.relations@arm.com https://investors.arm.com Tokyo / March 17, 2025 Ian Thornton, VP Investor Relations
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2 Agenda • How to design a computer chip • Arm’s products, ecosystem, and markets • Where Arm is investing for long-term growth • Q&A
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3 Chip design –then and now 1961 100 billion transistors Thousands of engineers Four transistors One engineer Today
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4 A system-on-chip contains multiple blocks of IP • Main processor for running the operating system, applications and user interface • Graphics processor for generating images • Accelerators for frequently-used compute workloads, e.g. image processing, encryption, vision • Radio controllers for mobile, wifi, Bluetooth, GPS • Hardware controllers for the display, memory, image sensors, power supply, etc • Interconnect to network all the internal functional blocks together • Input/Output interfaces for USB, Ethernet, etc
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5 Arm CPU – The Brain of Everything Arm is the Foundation of the Semiconductor Industry Chip Design Products Foundries Software
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6 Arm is the world’s most pervasive CPU architecture +20% 28.6 Billion 310+ Billion Everything today is a computer – CPUs needed everywhere Strong growth, highly profitable and cash generative company Y/Y revenue growth (mid-point of latest guidance) Arm-based chips shipped since inception Arm-based chips reported as shipped in FYE24 Arm is Building the Future of Computing
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7 Arm’s Unparalleled Ecosystem of Developers >50% 1.5Bn +20M 30M+ Arm’s market share of chips with CPUs Ecosystem hours Developers on Arm, for Arm Developer hours 1st decade of Armv9
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8 All major technology companies are Arm’s customers Most have been Arm’s customers for over 20 years
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9 Arm technology is used everywhere PCs & Consumer Electronics Smartphones Data center Networking & Comms Automotive IoT & Embedded
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10 Arm is investing in new technologies today to enable long-term revenue growth
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11 Investing in AI – From the Data Center to the Edge Mobile Automotive IoT & EmbeddedCloud Compute Smart Home Generative AI Autonomous Driving AI for all applications Optimized for AI
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12 Investing in Armv9 – Increasing capability drives increasing royalty Armv8.2-A Enhanced security 2014 Products announced: 2017-2020 Cortex-A77 Cortex-A78 Cortex-A55 Cortex-A78AE Neoverse-N1 Armv9.0-A Armv9.2-A Armv9.4-A Armv9.6-A 2016 Armv8.4-A Enhanced security Scalable Vector improvements (SVE) 2019-2020 Cortex-X1 Neoverse-V1 2018 2020 2022 2024 2021-2022 Cortex-X2 Cortex-A710 Cortex-A715 Cortex-A510 Neorverse-N2 2022-2024 Cortex-X3 Cortex-X4 Cortex-X925 Cortex-A720 Cortex-A520 Neoverse N3 Neoverse V3 Neoverse V3AE 2025+ First products announced this year 2026+ Products in development Realms for confidential compute Scalable Vector Extensions (SVE2) for AI/ML Enhanced realms Expanded SVE2 for more AI/ML use cases Optimised memory and caching Advanced virtualisation Cryptography optimisations Improved AI/ML performance Secure AI processing Further improved memory security Greater power efficiency Accelerating Machine Learning on Arm Delivering Artificial Intelligence Everywhere on Arm Strengthen Security Accelerating AI Higher Performance
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13 Investing in CSS – A better starting point for a chip design Compute Subsystem (CSS) is based on Arm latest CPU and systems technology It is pre-integrated, optimised for high- performance, energy-efficiency and size. It has been fully tested. Delivers fastest time to market for a new chip design Partner Innovation System control Security Memory I/O Arm Neoverse CSS Power Control Partner specific on- chip acceler ators
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14 Investing in CSS – A better starting point for a chip design 5GEdge Edge Edge Cloud Data Centers Scale-Out Cloud Networking and Infrastructure 5G Infrastructure Accelerated Compute IO MC MC IO Custom Accelerator IO MC SmartNIC NIC and Acceleration Smart Switch Switch Edge w/ML ML Cloud Compute IO MC MC IO Compute Subsystem Customer’s own IP CSS can be used standalone
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15 Investing in Ecosystem – Accelerates entry into new areas DESIGN SERVICE PROVIDERS & OEMs FOUNDRY PARTNERS 3RD PARTY IP, EDA, & FIRMWARE PROVIDER Arm’s CSS combined with products and services from other companies enables any company to develop Arm-based chips Arm Total Design
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16 Investing in Ecosystem – Accelerates entry into new areas Neoverse N2 Test chip for AI on TSMC Neoverse CSS N- Series Networking & Edge Chiplet Neoverse N3 Chiplet for Networking / data centers on TSMC Neoverse CSS V3 Chiplet on TSMC Neoverse CSS V3 Chiplet for AI on Samsung Foundry Neoverse CSS V3 Test chip on Intel Foundry Neoverse N2 Chiplet for DPUs on TSMC Neoverse CSS V3 Chiplet for Edge Servers on TSMC Arm Total Designs partners are developing chiplets and tests chips based on CSS to demonstrate what can be achieved. Arm has also partnered with +60 companies to develop Chiplet System Architecture to make each chiplet reusable between different chip designs.
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17 Increased investment today can yield higher future revenues R&D Investments License revenues Royalty revenues through chip deployments and increased percentage (Years) The more Arm invests in R&D today; the higher the potential return in the future 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Extra Investments Extra Revenues
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18 Increasing revenues today allows for increasing R&D investment • Revenue and headcount have grown at a 17% CAGR for past two years • >80% of employees are engineers • Non-GAAP operating margin grown from 44% in Q3 FYE24 to 45% in Q3 FYE25 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 $m $200m $400m $600m $800m $1,000m $1,200m Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FYE23 FYE24 FYE25 Total revenue Non-GAAP Total Costs Non-GAAP operating income Total number of employees
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19 More Chips More ArmMore Complexity Per Chip Revenue Growth from Rising Complexity, Volume Expansion
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20 The future is built on Arm