ARM Holdings PLC · NASDAQ:ARM
ARM — Investor Presentation (June 2017)
31 slides from ARM's investor presentation, Jun 8, 2017
Slide 1: The route to a trillion devices
The route to a trillion devices The outlook for IoT investment to 2035 June 8 2017 View the full webinar @ http://bit.ly/2uRZDLQ
Slide 2: Presenters: Philip Sparks and Francois Meunier
Philip Sparks Senior Manager, Investor Relations, ARM ARM Francois Meunier MD Technology Research, Morgan Stanley
Slide 3: Philip Sparks
Philip Sparks Senior Manager Investor Relations, ARM ARM = Engineer in the nineties = Analyst in the noughties = IRO in the teenies
Slide 4: Connected Device Forecast
Slide 5: The macroeconomics of IoT
The macroeconomics of IoT 5 © ARM 2017
Slide 6: Four decades from now
Four decades from now… Global population Life expectancy 10 billion people 100 years Infrastructure Energy Agriculture Health Care © ARM 2017 * Projected life expectancy for females born in the UK in 2055.
Slide 7: Malthus vs Technology
Malthus vs Technology © ARM 2017
Slide 8: Game-changing tech in the 19th Century
Malthus vs Technology Game-changing tech in the 19th Century ▪ Factories, blast furnaces, oil drilling ▪ Internal combustion engines, automobiles ▪ Railways, cruise liners ▪ Vaccines ▪ Information Technology ▪ Electricity ▪ Morse code / transatlantic telegrams ▪ Telephones ▪ Radio © ARM 2017
Slide 9: Game-changing tech in the 20th Century
Malthus vs Technology Game-changing tech in the 20th Century ▪ Assembly lines, consumerism ▪ Jet engines, aeroplanes ▪ Space exploration ▪ Antibiotics ▪ Information Technology ▪ Television ▪ Transistor / silicon chip ▪ Personal computer / Internet ▪ Mobile phone © ARM 2017
Slide 10: Game-changing tech in the 21st Century
Malthus vs Technology Game-changing tech in the 21st Century ▪ 3D printing, nanotechnology ▪ Renewable energy, electric vehicles ▪ Genetic science ▪ Personalised medicine ▪ Information Technology ▪ Smartphone ▪ Artificial Intelligence ▪ Internet of Things ▪ Autonomous vehicles and robots © ARM 2017
Slide 11: Technology adoption boosts productivity
Technology adoption boosts productivity The 1990s Goldilocks Economy 6% 5% 4% 3% 2% 1% 0% 1991 1993 1995 1997 1999 US GDP Growth US Inflation © ARM 2017 Source: World Bank, US Bureau of Labour Statistics
Slide 12: IoT will boost economic output
IoT will boost economic output Food Heavy Industry ▪ IoT could add Government 3% to global GDP Leisure Manufacturing +5% by 2035 Media ▪ Equivalent to Healthcare Retail $5 trillion +0% of additional output Professional Transport Services Finance Real Estate Sector contribution to GDP by value add Ba
Slide 13: The microeconomics of IoT
The microeconomics of IoT 13 © ARM 2017
Slide 14: Value of Data > Cost of Data
The Information Profit Margin Value of Data > Cost of Data ▪ Revenue growth ▪ Device electronics ▪ Customer loyalty ▪ Device installation ▪ Operational efficiency ▪ Device management ▪ Waste reduction ▪ Network access ▪ Risk control ▪ Data centre hosting ▪ Analytics software © ARM 2017
Slide 15: As the cost of data falls, the opportunity for IoT expands
As the cost of data falls, the opportunity for IoT expands 1997 Unit price: $10m Production: <80 pa Source Rick Dikeman - Own work, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=24471 © ARM 2017
Slide 16: As the cost of data falls, the opportunity for IoT expands
As the cost of data falls, the opportunity for IoT expands 2017 Unit price: $10k Production: >80m pa Source: Skoda, Verisk Data Exchange © ARM 2017
Slide 17: Whole-life costs of a typical IoT system
Whole-life costs of a ‘typical’ IoT system Electronic components Assembly IT services Distribution Installation Financial services Telecoms services © ARM 2017
Slide 18: Whole-life costs of a typical IoT system
Whole-life costs of a ‘typical’ IoT system © ARM 2017
Slide 19: Whole-life costs of a typical IoT system
Whole-life costs of a ‘typical’ IoT system © ARM 2017
Slide 20: 65% cost reduction by 2035
Whole-life costs of a ‘typical’ IoT system IoT Hardware 65% cost reduction by 2035 IoT Services © ARM 2017
Slide 21: A trillion devices, a trillion dollars per annum by 2035
A trillion devices, a trillion dollars per annum by 2035 Annual production of IoT devices ▪ Deployment of IoT systems adds 200 bn 3% to global output by 2035 equivalent to $5 trillion pa 150 bn I trillion cumulative ▪ Spending on IoT systems to reach 100 bn $1tn pa by 2035 50 bn ▪ Cumulative spendin
Slide 22: The route to a trillion devices
The route to a trillion devices
Slide 23: The route to a trillion devices
The route to a trillion devices In the 1990s, rapid adoption of Internet technologies led to strong GDP growth with low inflation
Slide 24: The route to a trillion devices
The route to a trillion devices Sectors that consume physical resources and have logistical complexity have much to gain from IoT
Slide 25: The route to a trillion devices
The route to a trillion devices There are thousands of use cases for IoT, and a great diversity in solutions
Slide 26: The route to a trillion devices
The route to a trillion devices Our definition of IoT investment covers spending on IoT electronics and data services
Slide 27: The route to a trillion devices
The route to a trillion devices More IoT systems will be deployed as the cost comes down, and systems evolve from bespoke to standardised
Slide 28: The route to a trillion devices
The route to a trillion devices In the last three years, executives have discovered IoT security is a complex issue, but appetite for IoT is as strong as ever
Slide 29: The route to a trillion devices
The route to a trillion devices Some IoT devices run sophisticated AI and be ‘always-on’, others will be ultra-low cost and communicate intermittently
Slide 30: The route to a trillion devices
The route to a trillion devices In 2035, hardware, software and telecoms companies will generate $1 trillion of revenue from IoT
Slide 31: www.arm.com / company / investors
For more content from ARM’s IR team, visit: www.arm.com / company / investors The trademarks featured in this presentation are registered and/or unregistered trademarks of ARM Limited (or its subsidiaries) in the US and/or elsewhere. All rights reserved. All other marks featured may be trademarks of