Slide 1: NVIDIA to Acquire Arm
NVIDIA TO ACQUIRE ARM September 13, 2020
Slide 2: Forward Looking Statements
Forward Looking Statements All statements included or incorporated by reference in this communication, other than statements or characterizations of historical fact, are forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are based on NVIDIA
Slide 3: NVIDIA Full-Stack Computing for the Age of AI
NVIDIA FULL-STACK COMPUTING FOR THE AGE OF AI
Slide 4: The Age of AI
THE AGE OF AI From Cloud to Edge Internet Internet of People of Things Cloud Data Centers Edge Data Centers Thousands of DC Millions of Edge DC Each with Millions of Nodes Each with Thousands of Nodes PERSONAL COMPUTING AUTONOMOUS MACHINES Billions of People Trillions of Devices
Slide 5: NVIDIA + Arm
NVIDIA + ARM Creates the premier computing company for the age of AI — combining NVIDIA’s leading AI computing platform with Arm’s vast CPU ecosystem Expands Arm’s IP licensing portfolio with NVIDIA’s technology in large end markets — including Mobile and PCs Turbocharges Arm’s server CPU roadmap pa
Slide 6: Arm's Computing Architecture
ARM’S COMPUTING ARCHITECTURE A Vast CPU Ecosystem Arm-Based Chips Reported as Shipped 70% of the World’s Population uses Arm Technology 25 22.8bn 20 180bn Arm-based 15 Billions 10 5 0 1991 Fiscal Years (FY2019 is 12M ended 3/31/2020) 2019
Slide 7: Expand Arm's IP Licensing Portfolio with NVIDIA's Technology
EXPAND ARM’S IP LICENSING PORTFOLIO WITH NVIDIA’S TECHNOLOGY Arm’s Successful IP Licensing Model… …Turbocharged with NVIDIA IP and Scale Leading energy-efficiency Leading AI, HPC and graphics performance Business Development 1) Arm licenses technology 2) Partners develop chips to chip Partners and s
Slide 8: Boost Arm's Vast Ecosystem with NVIDIA Accelerated Computing
BOOST ARM’S VAST ECOSYSTEM WITH NVIDIA ACCELERATED COMPUTING Arm CPU Ecosystem NVIDIA Accelerated Computing Platform Gaming HPC Healthcare Smart City/IoT Client Pro Viz AI Transportation Robotics Infrastructure CUDA-X AI/ML CUDA IoT and Embedded Automotive ARCHITECTURE SYSTEMS DATA CENTER
Slide 9: Expand Arm's R&D Capacity
EXPAND ARM’S R&D CAPACITY Turbocharge Investments and Execution Pace NVIDIA leads in R&D intensity… …and will boost Arm’s R&D capacity $3.2B 24% 21% 17% 13% 12% 8% 8% 8% 7% 5% ~$0.5B NVIDIA Facebook Google Microsoft Amazon Tencent TSMC Alibaba Apple Tesla NVIDIA Arm Trailing Twelve Months R&D as % o
Slide 10: Accelerate Data Center, Edge & IoT Opportunity
ACCELERATE DATA CENTER, EDGE & IoT OPPORTUNITY Data Center Edge & IoT Arm-based Servers Arm-based Edge Compute Amazon launched Arm-based Graviton2 Automotive: Audi, Daimler, Mediatek, NXP, processors for AWS Qualcomm, Samsung Marvell’s ThunderX2 Arm-based server Marvell OCTEON TX2 family of multi-co
Slide 11: Benefits to Customers
BENEFITS TO CUSTOMERS Offer Arm’s customers access to NVIDIA’s AI and GPU IP Boost Arm’s vast software ecosystem with NVIDIA’s AI and accelerated computing platform Offer cloud data center customers and the broader computer industry a strong server CPU roadmap Offer server OEMs a fully optimized pla
Slide 12: $250B Target Addressable Market by 2023
$250B TARGET ADDRESSABLE MARKET BY 2023 Accelerated Computing, Energy-Efficiency, and AI will Revolutionize All Industries DEVICES DATA CENTER AUTO, EDGE & IoT $95B $80B $75B Computer Graphics for Gaming PCs, NVIDIA Accelerated Computing Platform, Auto, Robotics, Edge AI Workstations, Game Consoles
Slide 13: Arm's Financial Profile
ARM’S FINANCIAL PROFILE High Margin, Recurring Revenue Business Model Strong Financial Profile High Quality Business Model Pro forma revenues of ~$1.8B Contract-based, recurring revenues Pro forma gross margin of ~94% 1,765+ licenses, growing by 100+ per year Adjusted EBITDA margin of ~35% 500+ lice
Slide 14: Transaction Summary
TRANSACTION SUMMARY Up to $40B purchase price: • $21.5B in NVIDIA shares TRANSACTION • $12B in cash, with $2B paid at signing CONSIDERATION • $1.5B employee equity for post-closing retention • $5B performance based earn-out paid in cash or NVIDIA shares FINANCIAL Expected to be immediately accretive
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