1

ARM Holdings plcQ1 2011 Results

ROADSHOW SLIDES

v1

2

ARM OverviewARM is the world’s leading semiconductor IP company

Licensing and royalty business model delivers operational leverage and robust cash generation

Gaining share in long-term secular growth markets

Strong competitive position for long-term sustainable growth

3

ARM Introduction Global leader in the development of semiconductor IP R&D outsourcing for semiconductor companies

Innovative business model yields high margins Upfront license fee – flexible licensing models Ongoing royalties – typically based on a percentage of chip price Technology reused across multiple applications

Long-term, secular growth markets

Approximately 770 licensesGrows by 60-90 every year

More than 250 potential royalty payers

>6bn ARM-based chips in ’10>25% CAGR over last 5 years

4

$0m

$50m

$100m

$150m

$200m

$250m

$300m

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

2006-10

2001-05

Pre-2001

Cumulative Licensing Drives Royalties Licensing base typically grows by 60-90 licenses every year Internet-connected consumer electronics from smartphones to DTV Embedded applications such as microcontrollers and hard disk drives

Growing base yields royalty revenues over long period Leading semiconductor companies have made long-term, strategic

commitments to ARM technology Applicability of ARM technology broadens over time

Significant Royalty Potential from Recent Licenses

~300 Licenses

~350 Licenses

~100 Licenses

+62

+61

+87

+91

+39

2006 2007 2008 2009 2010 Q1-2011

~770

Processor Licenses

5

Growth Opportunities

Key Growth Drivers

Increasing the ARM valueper device

Growth in non-mobile applications

Extending IP Outsourcing

Growth in mobile applications Increasing value of ARM technology per device More chips and higher priced chips

Growth beyond mobile Increasing ARM penetration into broader

range of digital products

Growth into new technology outsourcing Physical IP, graphics IP and video IP increase

ARM’s value per device and penetration

6

1.6 1.9 2.0

2.5 2.5

-

0.5

1.0

1.5

2.0

2.5

3.0

2007 2008 2009 2010 Q1 2011 -

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2006 2007 2008 2009 2010

Mobile Embedded

Enterprise Home

Increasing Value and PenetrationPC & Peripherals MicrocontrollersARM technology can be found in many products in the home office Disk drives (85% share) Printers (65%) Networking (25%) such as

broadband router, WiFi, BT and femto cell

As these products become more capable and more efficient, they create more opportunity for ARM

Microcontroller market is very large with mainly low-cost chips

ARM’s market share ~10% but growing rapidly

ARM processors used in: Electric motor controllers Monitors and sensors Medical applications Industrial robotics Toys

Digital TV & STBARM market share ~35% in brands such as Samsung, Sony Bravia and Vizio

Digital TV becoming more internet connected, requiring web-browsers, plug-ins and PC-class OS. Driving need for smarter processor such as ARM

ST is market leader and recently announced they are moving to ARM

Mobile ComputersSmartphones are evolving into mobile computers 230m unit market in 2010 Forecast 750m units in 2015

ARM in applications processor used to run: User interface, operating

system, browser and plug-ins, email, gaming

ARM processors also used in: Hard disk drive controller WiFi, Bluetooth, WiMAX 2G/3G baseband connection

Mobile PhonesARM processors can be found in more than 95% of mobile phones

Average of 2.5 ARM-based chips per mobile phone, with smart-phones containing between 2 and 5 ARM-based chips

Typical smartphone drives six times more royalty than typical “dumb-phone”

ARM processors used in: 2G/3G baseband connection Applications processor GPS, WiFi, Bluetooth Touchscreen, camera

Royalty Unit Split

15%

62%Mobile

38%Non-Mobile

5%

16%

Average number of ARM-based chipsper phone

9%17%

8%66%

7

Extending the Model Physical IP and multimedia IP markets represent further

outsourcing opportunity Technology complexity increasing, drives cost and risk ARM develops technology and amortises costs over many licenses Additional royalty streams per chip

Physical IP Leading-edge physical IP available

from 250nm to 20nm Foundries licensing ARM technology

for next generation processes >30% of PIPD royalties generated from

technology at 65nm or below 12 of top 20 semis are

driving ARM royalties from foundries

13 POP licenses signed

Multimedia IP 46 licenses for graphics and video Samsung, ST and Mediatek licensees First licenses now delivering royalties Volume expected to grow 2H 2011

8

£0m

£20m

£40m

£60m

£80m

£100m

£120m

£140m

£160m

£180m

£200m

2007 2008 2009 2010 2011

Cash Generated in First 3 Months of the Year

Cash Generated in Last 9 Months of the Year

Strong Balance Sheet and Cash Generation Healthy margins drive strong

cash generation in Q1 Generated £63m of cash in Q1 Net cash of £344.3m at end Q1

Total cash returned of £402m over 5 years £140m via dividend £262m via share buybacks

Progressive dividend policy 2010 dividend increased by 20%

Strong Cash Generation

Q1

Dividend Growth

Inte

rim

0.0p

0.5p

1.0p

1.5p

2.0p

2.5p

3.0p

2006 2007 2008 2009 2010

9

Summary ARM business model reduces chip development cost Turns large fixed cost into smaller variable cost Yields high margins for ARM

ARM’s technology is needed as growing complexity is increasing cost and risk for chip designers

ARM is gaining share in structural growth markets Global proliferation of the internet Low power in battery-powered products and in consumer electronics Smart, low-cost devices in everything we use during the day

10

Mob

ileSegments for ARM in 2010

* Including tablets, netbooks and laptops * * Includes other applications not listed such as headsets, DVD, game consoles, etc

Non

-Mob

ile

Devices Shipped(Million of Units)

2010Devices

Chips/Device

TAM 2010Chips

2010 ARM

2010 Share

Smart Phone 280 2-5 1,200 1,100 90%

Feature Phone 760 1-3 1,900 1,700 90%

Low End Voice 570 1 570 540 95%

Portable Media Players 150 1-3 300 220 70%

Mobile Computing* (apps only) 230 1 230 25 10%

Desktop PCs & Servers (apps) 220 1 220 0 0%

Digital Camera 130 1-2 200 160 80%

Digital TV & Set-top-box 350 1-2 450 160 35%

Networking 670 1-2 750 185 25%

Printers 120 1 120 75 65%

Hard Disk & Solid State Drives 670 1 670 560 85%

Automotive 1,800 1 1,800 180 10%

Smart Card 5,400 1 5,400 330 6%

Microcontrollers 5,800 1 5,800 560 10%

Others ** 1,700 1 1,800 270 15%

Total 19,000 22,000 6,100 28%

Source: ABI, Gartner, Semico, Instat, IDC, and ARM estimates

11

Mob

ileSegments for ARM in 2015

* Including tablets, netbooks and laptops * * Includes other applications not listed such as headsets, DVD, game consoles, etc

Non

-Mob

ile

Devices Shipped(Million of Units)

TAM 2010Chips

10 ARMShare

TAM 2015Devices

Chips/Unit

TAM 2015Chips

Smart Phone 1,200 90% 1,100 3-5 4,000

Feature Phone 1,900 90% 650 2-3 2,000

Low End Voice 570 95% 700 1-2 1,300

Portable Media Players 300 70% 120 1-3 250

Mobile Computing* (apps only) 230 10% 750 1 750

Desktop PCs & Servers (apps) 220 0% 250 1 250

Digital Camera 200 80% 150 1-2 250

Digital TV & Set-top-box 450 35% 500 1-4 1,200

Networking 750 25% 800 1-2 1,400

Printers 120 65% 200 1 200

Hard Disk & Solid State Drives 670 85% 1,100 1 1,100

Automotive 1,800 10% 2,200 1 2,200

Smart Card 5,400 6% 7,700 1 7,700

Microcontrollers 5,800 10% 9,000 1 9,000

Others ** 1,800 15% 2,000 1 2,000

Total 22,000 28% 27,000 34,000

Source: ABI, Gartner, Semico, Instat, IDC, and ARM estimates

Key Growth Areas for ARM

12

Average Selling Price of a Semiconductor Chip

ARM’s Opportunity at all Price Points

Opportunity

ARM Usage Today

>$25$10-15$3-6$1-2

Volu

me

13

-30%

-20%

-10%

0%

10%

20%

30%

40%

0

50

100

150

200

250

300

350

2006 2007 2008 2009 2010 Q1 2011

Q1 ARM Royalty RevenueARM Royalty RevenueIndustry Growth Rate**ARM Growth Rate

Mobile61%

Embedded18%

Enterprise16%

Home5%

Processor Royalties

*2010 excludes $9m of royalty catch-up* *Source: SIA February 2011Offset 1 quarter to align with ARM’s royalty revenue

Q1 2011: ARM Outperforms Industry

Grow

th Rate (%

)

ARM

Roy

alty

Rev

enue

($M

)

Industry units (ex-memory) up ~10%

ARM mobile shipments up ~30%End market shipments up ~30%

ARM STB/DTV shipments up ~15%End market shipments broadly flat

ARM hard disk shipments ~flatHDD shipments impacted as PC market slowed

ARM MCU shipments up ~60%Overall MCU market up ~20%

Q1 2011: 1.85bn units (up ~30%)

ARM $ Royalty CAGR (06-10) = 12%Industry $ Revenue CAGR (06-10) = 3%

Sources: SIA, February 2011Gartner, January 2011

Non-mobile 39%

Q1 2011 royalty revenue up 32%* Industry up 13% over the relevant period

14

Growing the Licensing Base

97 (+15)

68 (+8)

21(+1)

Cumulative licenses(Q1 2011 licensing shown in parenthesis*)

Cortex-AFamily

Cortex-RFamily

Cortex-MFamily

Others = 20 (+2) *Note: Licensing numbers adjusted for licenses that are no longer expected to start generating royalties.

Smartphone, feature phone, and digital TV Initial lead licensee signed up

Kingfisher

Dual-core embedded processors for storage, baseband & engine management Initial lead licensees signed up

Cortex-R5 & R7

Accelerating system designfor Cortex-M processors

Cygnet

Processor Roadmap in 2011 Estimated Royalty Opportunity

for 2015

Real-timeEmbedded12bn unitsper year

Micro-controllers18bn unitsper year

ApplicationProcessors4bn unitsper year

ARM7TM

Family

ARM11TM

Family 81

172 (+1)

268 (+5)ARM9TM

Family

46 (+7) MaliGraphics

Mobile computing, phones and consumer electronics

Mali T604 & “NG”

15

Q4 2010

Q1 2011

Licensing Increases Market Opportunity

Application Penetration of Key Companies’ Products

2010 ShareShipments

Smartphone – Apps >95%

Mobile Computer – Apps* 10%

Mobile – Modems 100%

Mobile – BT 70%

Mobile – WiFi 65%

Digital Camera** 80%

Digital TV / Set-Top-Box 35%

Networking 25%

Printers** 65%

Disk Drives (HDD & SSD) 85%

Automotive 10%

Smart Card 6%

Microcontrollers 10%

3D Graphics <1%

Public ARM design wins, but not yet shipping

Shipping mainly ARM-based chips

Shipping some ARM-based chips

No ARM design win or not yet public

* Includes handheld computers, tablets, and laptops**Based on OEM market share rather than semiconductor vendor

To gain share ARM works to win designs at market leading semiconductor companies

Based on current market sharesand ARM’s view of how these markets may develop.ARM will update the chart on the left only as design wins become public

3 company re-equipped

2 companies re-equipped

3 companies re-equipped

1 company re-equipped

2 new design wins

16

Latest Technology Drives Royalty Growth

17

ARM’s 2020 Vision ARM is growing into new markets and product categories From sensors to servers, from 50c to $200, from <50MHz to >2GHz

Today’s processor licenses drive shipments beyond 2015 Expect over 100 billion cumulative ARM based chips by 2020

The Architecture for the Digital World

BasebandMicrocontrollers SSD Mobile Computing Server

BT WiFi PCHDD

HPCSmartcardsSensors

Royalty opportunitygrows with volume and scope

>$200>2GHz

<50c<50MHz

18

Mobile: Growing Royalties Per Device ARM chips per phone 2.5 in Q1-11 Smartphones have increasing

number of ARM based chips Basic phones often have

baseband, camera & Bluetooth

More ARM-based mobile computing devices announced by leading OEMs in a wide range of form factors Semiconductor partners have

announced over 100 design wins Dual and quad core Cortex-A9 and

Mali 400 in next generation processors for 2011

Mobile computing market expected to grow to 750m units by 2015*

Some of the ARM-based Products Recently Announced

More AnnouncementsExpected Through 2011

SamsungGalaxy Tab

* Apps processors only. Gartner and ARM forecasts

Acer Iconia Tab A500

Lenovo LePad Hand-cranked OLPC

LG Optimus

SharpGalapalos

19

Opportunity for ARM

$ = Unit of Royalty

Ultra Low Cost

Baseband Modem - $

1 x $

Low Cost PhonesUltra Low Cost

Apps Processorand baseband - $$$WiFi / BT /GPS - $

Touchscreen/Camera - $5 x $

Feature PhonesUltra Low Cost

Apps Processor - $$$3G/LTE BB - $$$

WiFi / BT /GPS - $Touchscreen/Camera - $

8 x $

SmartphoneUltra Low Cost

Apps Processor - $$$$3G/LTE BB - $$$

WiFi / BT / GPS - $Touchscreen - $

Camera - $Storage - $

11 x $

Mobile Computer

650mdevices in 2015

700mdevices in 2015

1.1bndevices in 2015

750mdevices in 2015

20

$0m$100m$200m$300m$400m$500m$600m$700m$800m

2010 2011 2012 2013 2014 2015

ARM Opportunity in Mobile ComputingARM Opportunity per

Mobile Computer

Touch screen

3G Baseband

BT/Wi-Fi/GPS

Storage

Camera

Applications Processor

Opportunity Relative Royalty ARM Market Share

Apps Processor $$$$ TBD

3G/LTE BB $$$ 100%

Storage $ 50%

BT/Wi-Fi/GPS $ 50%

Touch screen $ <10%

Camera $ <5%

Mobile ComputerMarket Growth Forecast

Source: Gartner, ARM estimates

ARM Royalty Opportunity in 2015

$ = Relative unit of royalty

Assumption: ARM receives a 20c royalty for each ARM-based applications processor and another 20c for the other chips in device

ARM share of applicationsprocessor shipments

1% 33% 66% 100%

ARM based apps processors 5m 250m 500m 750m

Royalty from apps processor $1m $50m $100m $150m

Royalty from other chips $150m $150m $150m $150m

Total royalty contribution $151m $200m $250m $300m

~750M

21

Technology: Multi-GHz, multi-core processors and graphics processors delivering unmatched low-power for multi-day battery life

Business model: Multi-sourcing enables a collaborative industry of many players enabling differentiation for OEMs

Ecosystem: Multiple providers supply complete internet software and broadest range of OSes

ARM’s High Performance Computing

Marketsize*

ARM’s 2010Market share

ARM Cortex-A family are used as applications processors in a wide range of computing products

20102015

Mobile**Computers

10%

230m750m

Servers***

0%

70m110m

DTVs/STBs

35%

350m500m

Desktops

0%

150m140m

* Estimates based on forecastsfrom Gartner, SIA and ARM

** Includes tablet, netbooks and laptops

*** Opportunity for ARM-basedapplication processors in server market

Smartphones

280m1100m

>95%

22

ARM’s Opportunity in MicrocontrollersAnalyst Day 2007

End-MarketTAM(m)

2015Automotive 2,200Smartcards 7,700Microcontrollers 9,000

Total 19 billionABI Research, IDC, Gartner and ARM forecasts

Energy Efficient

Appliances

Intelligent Vending

IR Fire Detector

Tele-parking

Utility Meters

Exercise Machines

Intelligent toys

Plus lots of other companies developing MCUs & sensors

23

Gathering MomentumAnalyst Day 2006Full Year 2010 Cortex-M is ARM’s fastest ever licensing

family of processors 97 licensees as of Q1 2011 30% sequential increase in Cortex-M

shipments in Q1 2011 Cortex-M now 13% of all units shipped

Many companies selling devices ≤ $1 Broad set of devices on market Freescale: Over 200 devices, Atmel (60),

NXP (120), ST (135), TI (170), Toshiba (25)

ARM technology being broadly designed into smart-grid and smart-meters

Companies with announced ARM MCU product lines

24

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2006 2010

EmbeddedHomeEnterpriseMobile

200m220m430m

Impact of Microcontroller Growth Embedded products such as

microcontrollers have been ARM’s fastest growing market Low-cost MCUs typically in $1-2 range

As ARM gains share in the lower cost microcontroller market, so ARM’s average royalty per chip declines

Royalty Unit Split(million units)

1600m

Royalty per ARM-based microcontroller

-30% value CAGR

60% volume CAGR

Royalty per ARM-based chip ex-MCUs

-5% value CAGR

20% volume CAGR

Royalty per ARM-based chip6.7c 4.7c

-9% value CAGR

25% volume CAGR

Total ARM Royalties

$164.1m $282.5m15% value CAGR

1050m300m970m

3800m

Excluding catch-up

25

Impact of Functional Integration Integration of multiple functions into a single chip has limited overall

impact on ARM total royalty revenue Chips containing multiple ARM processors yield higher royalties

Function X

$5$2.50

Function Y

$6

CombinationFunction X & Y

Integrated chip reduces cost for OEM and increases profitability for the semiconductor manufacturer

ARM royalty rate at2% per chip

ARM royalty rate at 2% for 1st processor1% for 2nd processor

For this high volume application example:ARM gets full royalty for first processor per chip;

discounted royalty for subsequent processors

15croyalty

18c royalty

($5@2%)+ ($2.50@2%)

Average of 7.5c royalty per chip

$6@(2% + 1%)

Average of 18c royalty per chip

OEM, semi and ARM all benefit from integrationChips with multiple ARM-based processors

expected to increase

26

Impact of New ARM Technologies ARM is introducing new technologies that generate additional

royalties per chip – often alongside an ARM processor

$+$

Mali technology has been licensed 46 times by 40 companies Generates a similar per chip royalty

as an ARM processor Mali typically found in higher priced

chips such as applications processors

Mali Graphics and Video

Both CPU and GPU generate a full royalty per chip - no discounts

$

Physical IP has been licensed to allthe major foundries Royalty is paid by the foundry on a per

wafer basis

Physical IP

4 billion consumer electronics devices in 2015 will have screens – all are an opportunity for Mali

All chips need physical IP. ARM’sopportunity grows as companies increasingly outsource to reduce cost

Wafer royalties and chip royalties are paid by different

entities in the value chainWafer

$ARMCPU

MaliGPU

27

Average Royalty Percentage Per Chip Average royalty percentage per chip is beginning to increase Cortex-A family of processors command higher percentage royalty Increasing number of chips contain multiple ARM-based processors ARM Mali and Physical IP generate additional royalties per chip

Increasing percentage per chip is likely to grow over timeHigher Royalties forCortex-A Processors

Multiple ARM Processors Per Chip

Multiple Royalty Sources Per Chip

Combochip

0m10m20m30m40m50m60m70m80m90m

1Q10 2Q10 3Q10 4Q10 1Q11

Cortex-A Shipments

Cortex per chip royalties typically higher than historic royalty rates

When multiple ARM processors areintegrated into a single chip, higherroyalty rates typically apply

Q410

Q111

25% increase in chips with multiple ARM processors per chip

M0 A9

MaliPhysical IP

Mali and Physical IP generate additional royalties per chipThere are chip designs based on ARM processors and/or Mali and physical IP

28

Physical IP Licensing Base ARM develops and licenses physical IP for

leading ASIC, foundry and fabless semis 32/28nm licenses signed with all

advanced foundries Working on 20nm Over 30 foundries have licensed 78

platforms on process nodes from 250nm to 20nm

Nine new platforms licensed in 2010 Higher than historical average

Over 30 platforms yielding royalties 6 platforms driving royalties at

advanced nodes at 65nm or below 12 of top 20 semis are driving ARM

royalties from foundries

Collaboration with IBM to 14nm

Fabless, ASIC and IDM Customers

Platforms Licensed by Foundry

22/20 32/28 45/40 65nm 90nm 130nm 180nm-250nm

Chartered

Dongbu

GlobalFoundries

Grace

HHNEC

IBM (CMOS &SOI)

Magnachip

Samsung

SMIC

Tower

TSMC

UMC

Vangaurd

X-Fab

29

Advanced Roadmap is Moving to 20nm

Leading foundrieslicense 32/28 nmphysical IP

32nm engineering work starts

Next StepsCommercial activity- Focus on 32/28nmdesign wins to driveroyalties

Engineering execution- Multiple customertape-outs at 32nm

2008 Q110 Q210 Q310 Q410

GLOBALFOUNDRIESlicenses28nmphysical IP

On going activity

TSMC licenses28nm & 20nmphysical IP

Optimised Cortex-A9/A5 on 32nm

3rd 20nm R&Dtape-out

28nm alpha deliverablesreleased to customers

Fresecalechooses ARMphysical IP

2009

ARM processor functional on 32nm

IBM & ARMcollaborateon 20 to 14nm

Q111

30

0

20

40

60

2010 2015

Mar

ket S

ize

(m o

f waf

ers)

Forecast by Node≥ 90 nm65 nm≤ 45 nm

0102030405060

2010 2015

Mar

ket S

ize

(m o

f waf

ers)

Foundry Market Forecast

PIPD’s Market Development PIPD market share has grown steadily All major foundries licensed physical IP

Foundry wafer volume expected to grow significantly as IDMs continue to outsource

ARM well positioned for long-termroyalty growth Advanced foundries signed up for

geometries at 45nm and below Leading fabless semis starting to make

outsourcing decisions

Creates opportunity for growth as advanced nodes are forecast to become fastest growing nodes

x1.5

X1.5x4

* 200mm equivalent wafers

Gartner, ARM estimates

16%19% 20% 21%

0%5%

10%15%20%25%

2007 2008 2009 2010

PIPD Market Share by No of Wafers*

Gartner, ARM estimates

31

Physical IP – Building Better Processors Processor Optimisation Packages (POPs) Optimised physical IP that will deliver a pre-

determined processor implementation Different options for higher performance or

lower power Range of Cortex processors, process nodes and

foundries supported

Combination of processor and physical IP delivers multiple royalties per chip 13 POPs licensed for Cortex-A family processors 5 licensees for Cortex-M family ultra low leakage

libraries

Dual Core Cortex-A9Speed Optimised1

2GHz1.9W

Speed Optimised1Dual Core Cortex-A9Power Optimised2

800MHz0.5W

Dual Core Cortex-A5Speed Optimised3

500MHz80mW

Cortex-M0Ultra Low Leakage4

50MHz

1. Speed Optimised: Dual Core Cortex-A9, TSMC 40nm G, typical silicon, 85C Tj Overdrive2. Power Optimised: Dual Core Cortex-A9, TSMC 40nm G, slow silicon, 125C Tj, Worst case Vdd

3. Speed Optimised: Dual Core Cortex-A5, TSMC 40nm G, typical silicon, 85C Tj Overdrive4. Cortex-M0 implemented with TSMC 180ULL with ARM physical IP library at 1.8V

5mW

32

Extending IP Outsourcing: MediaGrowing the Media Processor

Licensing BaseGrowing Shipments in Mobileand Non-Mobile Applications

46

46 licenses for graphics and video 7 licenses added in Q1 2011

More Mali-based chips shipping into mobile and consumer electronics devices

Licenses Partners RoyaltyPayers

40

6

Pre-2007, 24

8

14

2007

2008

2009

2010 11

Samsung announced that Mali-based Orion delivered 5 times more graphics performance than their previous design

STMicroelectronics announced 10 major STB design wins for Mali-based STi7108

Q1 2011 7

33

Processor Ecosystem Development ARM’s processor ecosystem gets broader and richer with

every OEM design win or software/tools/content developer porting their product to run on ARM-processor based chips

Microsoft Announced Future Windows on ARM

Internet explorer 10 demo on NVIDIA Tegra 2 at Microsoft developer conf.

Microsoft announced that future versions of their Windows operating systems and Office application software is available on ARM

Leading baseband providers using ARM for LTE

Leading baseband modem providers declared that they would be using ARM processors for their LTE and LTE-advanced modems

Digital TV Design Wins

Infinite TV is a global B2B over-the-top content marketplace

NDS, Skyworth and Hisensedemonstrated their STB/DTV products based on ARM Cortex-A9 processor and Mali 400 graphics

Major Content Providers Supporting Mali

Autodesk, Gameloft and Polarbit optimised some of their premium UI and gaming content to run on Mali in high definition 3D graphics Autodesk's Scaleform User

Interface is used in many PC and console games

34

FY2010 Revenues $m £m %revsLicensing 208.2 132.5 33%Royalty 335.3 217.7 53%Other 87.8 56.4 14%Total 631.3 406.6 100%

COGS 23.3Gross Margin 94.3%

Operating Costs 219.0Operating Margin 40.4%

Profit Before Tax 167.4EPS 9.34p

Free Cash Flow £290.1

From Revenue to Profits and Cash95% of revenues earned in US dollars

Cash generative, debt free

Operating margins and earnings will increase as royalties grow

Royalties approximately 50% of revenues

R&D expensed as incurred

Approximately 50% of costs in USD10% move in $/£ impacts EPS by ~15%

35

ARM Holdings plcQ1 2011 Results

36

Licensing positions ARM for further gains in multiple markets ARM technology increasingly chosen by market leaders Computers and servers becoming new markets for ARM-based technology

ARM gaining share in end markets with structural growth drivers Several consumer electronics companies chose ARM technology for

the first time during Q1

Physical IP developing optimisation packages at 20nm Additional royalty per chip for Cortex-A family processors

Group backlog up over 100% year-on-year Expect FY11 group revenues at least in-line with

market expectations

Q1 2011 Highlights

Growth Opportunities

Increasing the ARM valueper device

Growth in non-mobile applications

Extending IP Outsourcing

Q1 Group Revenues $185m

13%

12%

Processor Division

Physical IP Division

Dev. Sys. & Services

75%

37

Outlook Q2 outlook Expect normal seasonality for royalty revenues in the second quarter Normalised operating expenses, assuming constant currency, to be in

the range £58m to £60m

Looking further ahead ARM has made an encouraging start to 2011 Notwithstanding current uncertainty as to the economic impact of

Japanese earthquake, we expect group dollar revenues for the full-year 2011 to be at least in line with current market expectations

38

Q1 2011 – Revenue Summary ($)Q1 2011

$mQ1 2010

$mPD

Licensing 51.3 34.2 50%Royalties 87.9 66.7 32%

PD Total 139.2 100.9 38%PIPD

Licensing 12.6 8.8 43%Royalties* 10.7 10.8 -1%

PIPD Total 23.3 19.6 19%

Development Systems 13.3 14.8 -10%

Services 9.7 8.0 21%

Total Revenue 185.5 143.3 29%* Includes catch-up royalties in Q1 2011 of $0.6m and $0.5m in Q1 2010

39

Q1 2011 – Revenue Summary (£)Q1 2011

£mQ1 2010

£mPD

Licensing 32.3 21.8 48%Royalties 54.6 43.2 26%

PD Total 86.9 65.0 34%PIPD

Licensing 7.9 5.7 39%Royalties* 6.6 6.9 -4%

PIPD Total 14.5 12.6 15%

Development Systems 8.4 9.7 -13%

Services 6.2 5.0 24%

Total Revenue ** 116.0 92.3 26%* Includes catch-up royalties in Q1 2011 of £0.4m and £0.3m Q1 2010** ARM’s $/£ effective rate of $1.60 in Q1 2011 and $1.55 in Q1 2010

40

73%

12%

15%

ProcessorsPhysical IPSupport, Maintenance & Other

Backlog Analysis – End Q1 2011

Backlog by Maturity Profile Backlog Composition

24%

22%54%

Q2/Q311 Q411/Q112 2012+

41

Revenue Split Analysis

0%

25%

50%

75%

100%

2007 2008 2009 2010 Q1-2011

% o

f $ R

even

ues

Services Development SystemsPIPD Licensing PD LicensingPIPD Royalties PD Royalties

40%

43%

11%

6%

53%

35%

7%5%

Royalties

Licensing

42

Processor Licensing Revenues at $51.3m up 50% year on year Group backlog up over 100%

Base of licenses grows to over 770 with 39 licenses signed in Q1 2011 Two subscription licenses signed by Broadcom

and LG Electronics Eight licenses for Cortex-A class processors One license for Cortex-R class processor Fifteen licenses for Cortex-M class processors Seven licenses for Mali graphics processors

Non-mobile licensing strong in all target markets Several companies making chips for DTV or STB

license ARM processor technology for the first time 13 companies licensing Cortex-M for microcontrollers

Mobile opportunity increasing too Applications processors for smartphones

and mobile computing

Number of licenses signed in Q1 2011

27%group $revs

7

27

5

Mobile Non-mobile Both

+62

+61

+87

+91

+39

2006 2007 20078 2009 2010 Q1-2011

~770

Processor Licenses

43

Q1 Financial HighlightsStrong financial performance Q1 dollar revenues up 29% YonY to $185.5m Normalised PBT at £50.8m Normalised EPS at 2.73p

Financial discipline balances investment with margin expansion Operating margin at 42.5% year-to-date Headcount up 33 since end of 2010

Robust balance sheet Strong net cash generation of £62.9m Net cash at end of Q1 at £344.3m

44

Summary Balance Sheet

IFRS31 Mar 11 31 Dec 10

£MM £MMAssets

Cash (net of accrued interest) 344.3 290.1

Accounts receivable (net of AROC)Amounts recoverable on contracts (AROC)

68.56.7

97.08.7

Other debtors, inventory and investments 139.5 130.7

Property and equipment 15.6 13.8

Goodwill 520.5 532.3

Other intangibles 11.2 12.1

Total assets 1,106.3 1,084.7Liabilities & shareholders’ equity

Deferred revenue 99.8 92.7

Other creditors 64.8 97.1

Shareholders’ equity 941.7 894.9

Total liabilities & shareholders’ equity 1,106.3 1,084.7

45

Normalised Cash Flow Summary£MM Q1 11 Q1 10Operating activities 59.7 44.0

Interest received 1.2 0.4

Tax (6.7) (4.2)

Capital expenditure (4.2) (1.8)

Investments and acquisitions (net of disposals) - (1.0)

Share options 3.9 15.7

Other (forex, loans) 0.3 1.1

Cash flow 54.2 54.2

Opening cash (net of accrued interest) 290.1 141.8

Closing cash (net of accrued interest) 344.3 196.0

Profit before tax 50.8 37.6

Interest income, depreciation and amortisation 0.7 1.5

Cash flows from items excluded from normalised profits (12.5) (4.4)

Movements in working capital 20.7 9.3

Operating activities 59.7 44.0

46

Contact Information If you have any questions please contact Ian Thornton, VP of Investor Relations ian.thornton@arm.com +44 1223 400796

To get onto our distribution list www.arm.com/ir