M&A in IT Sector and ICAP OverviewIgor Kaloshin

July 2014

Strategic, Long Term Investor

Intel’s Global Investment and M&A Organization

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Our Mission

Enhance Intel’s strategic

objectives by making and

managing financially

attractive investments. Strategic Financial

Intel

Capital

Global Investment Footprint

$11 billion+ in over 1350 Companies across 55 Countries

Intel Offices and Intel Capital

Invested

Intel Capital Invested

$100m China Smart Device Innovation Fund

$500m China Technology Fund II

$250m India Technology Fund

$50m Brazil Technology Fund

$50m Middle East and Turkey Fund

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*Other marks and brands are property of their respective owners

Innovative technology and usage models

Strategic interest to Intel

Strong management teams

Addresses rapidly growing and sizable markets

Transparent Offshore holding structure

Exit opportunity or consolidation into Intel Corp.

Investment Criteria

When making investments, we look for:

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Investing in a World of Possibilities

Datacenter, Cloud Infrastructure and Network Storage

Smartphone and Tablets

Datacenter Software

Internet of Things Solutions

New Devices and Wearables

Security

Services, Open Source, and Machine to Machine

Ultrabook™ and Perceptual Computing

Internet, Digital Media and Education

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Consistent Investor

2013

M*$333

IPOS6

Acquired27

Companies

Historical

1,351

B$11

Countries55

37

IPOS207

Acquired349% Dollars

Outside N. America

New Investments

Outside N. America28

49% Dollars

Outside N. America

63New

Investments

* Number Includes New and Follow-on Deals Data as of April 14, 20146

A Proven Track Record of Engagement

Investments ranging from

$250,000 to $250 million+

Any stage of funding

Lead or supporting investor

Agile decision-making

Unparalleled network of Global

2000 companies

Resources beyond capital

Active board participation

New & follow-on rounds

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Investing $300 - $500 million per year in innovative companies

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M&A Process

Initial Contact and Preliminary Due

Diligence

Term Sheet Negotiations

Due Diligence Closing

• 2-4 weeks

• Determine whether project is of strategic or financial interest to Intel

• 3-4 weeks

• Agree on main terms of the potential deal –valuation, governance, exit provisions, etc.

• 4-8 weeks

• Business, Legal, financial, tax

• 2-4 weeks

BindingNon-binding

Normally process takes 3-5 months

VCA – June 2014 Individual topic here © here9

Key Factors of Success

Customer tested and sellable product with traction (Pilot Program – R&D engagement)

Driven by Serial entrepreneur OR Intrepreneur

Strong Product Development Focus – Not a research project!

Focus on clean code development and documentation (ease of integration)

Not just time to market, but, Time to Exit. Speed and Execution Critical

Business Execution to Exit:18 – (max) 36 months

Active Market Engagement . Creating conditions for a Bidding War

Interest for acquiring Company:

Ease of Acquisition

Stopping Pain: Avoiding loss of customers or loss of revenue

Causing Pain: Stealing Market Share (hurting competition)

Enhancing Story with Wall Street

Intel Confidential — Do Not Forward

Building Technology Ecosystems

Data Center &

Cloud Services

Investing Across Computing to Build Ecosystems for New User Experiences

PC, 2in1 Ultrabook™ Tablet &

Smartphone

Intelligent

Systems, New

Devices &

Wearables

$300m Ultrabook™

Fund $100m Connected Car Fund

$100m Experiences and Perceptual Computing Fund

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*Other marks and brands are property of their respective owners

Intel Corp Strategic Acquisitions

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