IoT Conference Call
December 18, 2013
16:30 GMT
Charlene A. Marini
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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 1995. 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 20-Factors” and “Operating and 20-Financial Review and Prospects,” which is on file with the Securities and Exchange Commission (the “SEC”) and available at the SEC’s website at www.sec.gov.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
Trends Driving IoT
Decreasing
Hardware Costs
App Culture
Mobile Internet
Cloud
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
Intelligence is Emerging Everywhere
Precision
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
26 Billion Installed Units by 2020 - Gartner
Vo
lu
m
e
IoT Architecture
BIG DATA
Little Data
Local
Processing
Standards-based End-to-End Security, Web, Data Objects & Management
Security
Communication
Discovery
Data Storage & Analytics
Management
Applications
nodes
Server
nodes
Gateway/AP
2 billion
ARM Cortex-M-based devices shipped in 2012
by leading semiconductor companies
Intelligence starting at $0.50
Relative growth in MCU & smartcard
MCUs
radios
sensors
Trends: Integration of MCU, sensor and radio
Sensor
Radio
Controller
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
Breaking Down the Billions
Devices will be increasingly connected
Attachment rate dependent upon business
models and end-to-end platform
development
Embedded Intelligence
Ensuring secure, capable nodes will require
32-bit intelligence
Gateways, Controllers, Hubs
Processing performance and unit volume will
vary widely by deployment types and
Units(000s)
Source: IHS Inc.
0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 2013 2014 2015 2016 2017
New connected automotive New connected industrial New connected medical New Connected Consumer
Increasing Efficiencies in Cities
~1M Smart
Parking
Spaces by
2020
Source: Navigant Research
Parking
EV Charging
Public Transportation
Car Fitness
Water Management
Building Automation
Lighting
Street Lighting Application
6LoWPAN mesh technology over sub GHz 802.15.4
End-to-end solution with web integration and security
Street Light M2M Nodes
6LoWPAN, CoAP, JSON
NanoService
NanoStack
((
NanoRouter))
IPv4/6, HTTP, JSON
customer-specific &
reference apps
6LoWPAN, CoAP, JSON
NanoService Platform
Internet
Cellular
Lighting – Commercial
Connected sensors and lighting
control
Systems also incorporate control
panels, and wireless repeater/hubs as
needed
0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 2013 2014 2015 2016 2017 Occupancy Sensors Environmental Sensors Connected BallastPotential
Cortex-M
Sockets
Source: IHS Inc and ARM
