May 8, 2024

Q4 FYE24: Highlights
$928m
Total revenue up 47% yoy
$414m
License and other revenue up 60% yoy
$514m
Royalty revenue up 37% yoy
42.1% Non-GAAP operating margin
$391m(1)
Non-GAAP Operating Income
$907m
Trailing 12 Months FCF up 50% yoy
287.4bn Cumulative chip shipments
7.0bn
Chips reported as shipped

1. Non-GAAP Operating Income for Q4 FYE23 showed a $1m loss, not allowing for a sensible year-over-year comparison
   5 © 2024 Arm
   Full Year FYE24: Highlights
   $3,233m
   Total revenue up 21% yoy
   $1,431m
   License and other revenue up 43% yoy
   $1,802m
   Royalty revenue up 8% yoy
   43.6% Non-GAAP operating margin
   $1,408m
   Non-GAAP Operating Income up 80% yoy
   $907m
   Trailing 12 Months FCF up 50% yoy
   287.4bn Cumulative chip shipments
   28.6bn
   Chips reported as shipped
   6 © 2024 Arm
   Q4 FYE24: From Revenues to Profits to Cash
   Notes:
2. Depreciation and amortisation for Q4 FYE24 was $38m
3. Non-GAAP Operating Income and Free Cash Flow are non-GAAP metrics. Please see the end of this presentation for a reconciliation of each to the most directly comparable GAAP metric
4. Free Cash Flow includes $573m change in working capital benefit that is primarily related to cash held for payroll taxes expected to be paid in Q1 FYE25.
   $928m $26m $902m $511m
   $391m
   $637m
   Revenue Non-GAAP
   Cost of Sales
   Non-GAAP
   Gross Profit
   Non-GAAP
   Operating Expenses
   Non-GAAP
   Operating Income
   Non-GAAP
   Free Cash Flow
   97%
   Non-GAAP
   Gross Margin
   42%
   Non-GAAP
   Operating
   Margin
   69%
   Revenue
   to Cash
   Conversion
   Royalty
   Revenue
   License
   Revenue
   7 © 2024 Arm
   Q4 FYE24: Revenue
   Total revenue: $928m up 47% yoy – Highest ever!
   License and other revenue: $414m up 60% yoy driven by multiple new ATA agreements and the increased demand
   for Arm’s power-efficient and high-performance technology in applications from AI to datacenters to edge computer
   Royalty revenue: $514m up 37% yoy with strong smartphone sales and Arm v9 penetration
   $424m $434m $442m $425m $374m $400m $418m $470m $514m
   $233m $258m $188m $299m
   $259m $275m
   $388m $354m
   $414m
   $928m
   Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
   FYE22 FYE23 FYE24
   Royalty License and Other Revenue
   8 © 2024 Arm
   Q4 FYE24: Royalty Revenue
   Record royalty revenue up 37% yoy and 9% sequentially
   Arm is benefitting from Armv9 adoption in smartphones and market share gains in automotive and cloud hyperscalers
   Semiconductor industry grew strongly in the second half of Calendar 2023, with some weakness expected in industrial
   and automotive markets; given our high share in many markets, Arm can be impacted by broad industry trends
   $424m $434m $442m $425m
   $374m $400m $418m
   $470m
   $514m
   19% 17% 8% (12%) (8%) (5%) 11% 37%
   8% 10%
   2%
   (4%)
   (12%)
   7% 4%
   12% 9%
   (30%)
   (10%)
   10%
   30%
   50%
   70%
   $0m
   $100m
   $200m
   $300m
   $400m
   $500m
   $600m
   Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
   FYE22 FYE23 FYE24
   Royalty revenue Y/Y Growth / (Decline) Q/Q Growth / (Decline)
   9 © 2024 Arm
   Q4 FYE24: Annualized Contract Value
   Annualized contract value increased during Q4 driven by multiple high-value, long-term ATA agreements
   $233m $258m
   $188m
   $299m
   $259m $275m
   $388m
   $354m
   $414m
   $1,030m $1,052m $1,080m $1,009m $1,030m $1,048m $1,108m $1,160m $1,182m
   $0m
   $100m
   $200m
   $300m
   $400m
   $500m
   $600m
   $700m
   $0m
   $200m
   $400m
   $600m
   $800m
   $1,000m
   $1,200m
   $1,400m
   Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
   FYE22 FYE23 FYE24
   License and other revenue Annualized Contract Value (ACV)
   10 © 2024 Arm
   Q4 FYE24: Remaining Performance Obligation (RPO)
   Remaining performance obligations represent revenue that will be recognized in future periods
   RPO is up 45% year-over-year and up slightly sequentially driven by multiple high-value, long-term agreements
   $233m $258m
   $188m
   $299m
   $259m $275m
   $388m
   $354m
   $1,751m $414m $1,773m $1,751m $1,758m $1,712m $1,681m
   $2,414m $2,433m $2,484m
   $0m
   $100m
   $200m
   $300m
   $400m
   $500m
   $600m
   $700m
   $0m
   $500m
   $1,000m
   $1,500m
   $2,000m
   $2,500m
   $3,000m
   Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
   FYE22 FYE23 FYE24
   License and other revenue Remaining Performance Obligations (RPO)
   11 © 2024 Arm
   Q4 FYE24: Non-GAAP Cost of Sales and Operating Expenses
   Q4 Total Non-GAAP Operating Expense was $511m, down 16% yoy
   Headcount increased 19% yoy, but this was more than offset by the change in mix of share-based compensation
   cost from liability settled to equity-settled and a favorable year-over-year comparison in legal and bonus costs
   $336m
   $217m $250m $270m
   $358m
   $241m $281m $280m $326m
   $315m
   $153m
   $158m $138m
   $251m
   $138m $115m $157m

$185m

$100m
$200m
$300m
$400m
$500m
$600m
$700m
$800m
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FYE22 FYE23 FYE24
COGS R&D SG&A
12 © 2024 Arm
Q4 FYE24: Non-GAAP gross and operating profit
Q4 gross profit and operating profit margins remaining over 95% and 40%, respectively
$620m $669m
$606m
$697m
$608m $651m
$780m $798m
$902m
94.4%
96.7% 96.2% 96.3% 96.1% 96.4% 96.8% 96.8% 97.2%
70.0%
75.0%
80.0%
85.0%
90.0%
95.0%
100.0%
$0m
$200m
$400m
$600m
$800m
$1,000m
$1,200m
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FYE22 FYE23 FYE24
Gross Profit
($31m)
$297m
$198m
$289m
($1m)
$272m
$384m $361m $391m
(4.7%)
42.9%
31.4%
39.9%
(0.2%)
40.2%
47.6% 43.8% 42.1%
(10 0.0%)
(80 .0%)
(60 .0%)
(40 .0%)
(20 .0%)
0.0%
20.0%
40.0%
60.0%
($2 00m)
$0m
$200m
$400m
$600m
$800m
$1,000m
$1,200m
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FYE22 FYE23 FYE24
Operating Profit
13 © 2024 Arm
Q4 FYE24: Chips reported as shipped
Chip shipments relate to the October to December
quarter
Down 10% year-over-year and 9% sequentially
mainly due to the impact of inventory correction in
industrial IoT
IoT chips are very high volume, but relatively low
value, so the decline has not had a material impact
on revenue
Chips Reported as Shipped
6.9bn 7.0bn
7.5bn
7.8bn
7.3bn
7.5bn
7.9bn 7.8bn
6.8bn
7.1bn
7.7bn
7.0bn
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FYE22 FYE23 FYE24
14 © 2024 Arm
Q4 FYE24: Non-Financial Metrics
Arm Total Access at 31, up 4 sequentially

• Target markets for these licensees include AIenabled smartphones, servers and embedded
  computing
• ATA licensees are typically long-term Arm partners
  and include more than half of our top 30
  customers
  Arm Flexible Access at 222, up 4 sequentially
• Targeting early-stage companies developing
  products for: AI accelerators, automotive
  applications, consumer electronics, robotics and
  smart sensors
  Arm Flexible Access Arm Total Access
  129
  191
  203 211 212 218 222
  Q4 Q4 Q4 Q1 Q2 Q3 Q4
  FYE21 FYE22 FYE23 FYE24
  4
  8
  18
  20
  22
  27
  31
  Q4 Q4 Q4 Q1 Q2 Q3 Q4
  FYE21 FYE22 FYE23 FYE24
  15 © 2024 Arm
  Armv9 is expected to replace most Armv8-based chips
  Armv9 is expected to replace most of the Armv8-based chips in smartphones, servers,
  consumer electronics and most automotive applications
  Chips based on Armv9 can command a substantially higher royalty per chip
  than previous generation architectures.
  0%
  10%
  20%
  30%
  40%
  50%
  60%
  70%
  80%
  90%
  100%
  FYE14
  FYE15
  FYE16
  FYE17
  FYE18
  FYE19
  FYE20
  FYE21
  FYE22
  FYE23
  Q1FYE24
  Q2FYE24
  Q3FYE24
  Q4FYE24
  Arm v7 & older Arm v8 Arm v9
  Royalty revenue by architecture
  16 © 2024 Arm
  Guidance
  Q1 FYE 25 FYE 25
  Revenue ($m) $875m – $925m $3,800m – $4,100m
  Non-GAAP Operating Expense ($m)1 ~$475m ~$2,050m
  Non-GAAP fully diluted earnings per share ($)1 $0.32 – $0.36 $1.45 – $1.65
  (1) For more information and definitions of the non-GAAP measures see the “Key Financial and Operating Metrics” section of our most recent Shareholder Letter, available at https://investors.arm.com/. A reconciliation of
  each of the projected non-GAAP operating expense and non-GAAP fully diluted earnings per share, which are forward-looking non-GAAP financial measures, to the most directly comparable GAAP financial measure, is not
  provided because Arm is unable to provide such reconciliation without unreasonable effort. The inability to provide each reconciliation is due to the unpredictability of the amounts and timing of events affecting the items
  we exclude from the non-GAAP measure.
  © 2024 Arm
  Q4 FYE24
  Background on Arm
  18 © 2024 Arm
  Arm is Building the Future of Computing
  Arm is the world’s most pervasive CPU
  architecture
  18M+
  28.6 Billion
  285+ Billion
  Everything today is a computer
  – CPUs needed everywhere
  Strong growth, highly profitable and cash
  generative company Software Developers on Arm
  Arm-based chips shipped since inception
  Arm-based chips reported as shipped in FYE24
  19 © 2024 Arm
  Arm CPU – The Brain of Everything
  The Foundation of the Semiconductor Industry
  Chip Designers
  Products
  Foundries
  EDA
  Software
  20 © 2024 Arm
  Then1
  What Have We Done Since 2016?
  Mobile
  Auto
  Consumer
  Electronics
  IoT
  Cloud &
  Networking
  MARKET
  SPECIFIC
  STRATEGY
  Total Compute
  (Mobile)
  Neoverse
  (Cloud)
  Automotive
  Enhanced
  IoT
  Solutions
  AI Enabled
  Arm Platform Approach
  Now1
  Mobile Other
  General Purpose CPU
  1 Reflects revenue as of FYE16 and FYE24 for Then and Now accordingly.
  21 © 2024 Arm
  CPU and subsystems for every target end-market
  Increasing performance Power efficiency Software ecosystem
  Mobile – Total Compute Subsystem
  DSU-120
  TOOLS
  ARMv9 ARCHITECTURE
  SOFTWARE
  SUPPORT
  ARM PHYSICAL IP
  Cortex
  -X4 CortexA720 CortexA520
  Immortalis-G720
  Mali-G720
  Mali-G620
  CoreLink CI-700/NI-700, MMU-700
  Automotive Enhanced Subsystem
  40%
  Price/Performance
  Infrastructure – Neoverse Compute Subsystem
  TOOLS
  ARMv9 ARCHITECTURE
  SOFTWARE
  SUPPORT
  ARM PHYSICAL IP
  Neoverse-V2
  32-192 CPUs
  NI-700, MMU-700, GIC-700
  CMN-700
  Up to
  TOOLS
  ARM ARCHITECTURE
  SOFTWARE
  SUPPORT
  ARM PHYSICAL IP
  CortexA78AE
  Cortex-R52
  CoreLink AE System IP
  Mali-G78AE
  Cortex-M85 Mali-C78AE
  Safety Island / Certification
  IoT Solutions Subsystem
  Smart Speakers Smart Cameras Drones Autonomous
  vehicles
  Consumer IoT
  Edge
  server Industrial PC Network
  Hub
  Smart
  display
  Industrial
  display
  Industrial IoT
  SUPPORT
  Customer Application Code
  Ecosystem Middleware
  Libraries, reference stacks,
  tools
  Operating System/Firmware
  Cortex-A
  CPU
  Mali
  GPU
  Cortex-M
  CPU
  Ethos-U
  NPU
  22 © 2024 Arm
  Infrastructure – Progressing our Strategy
  Arm continues to gain market share within the cloud compute market as our customers increasingly adopt and deploy Arm CPUs into
  cloud server chips driven by the need for power efficient computing.
  Two new CPUs and platforms for
  AI acceleration, cloud servers & HPC
  Google announce Arm-based
  chip for Cloud Compute
  NVIDIA announce
  Grace Blackwell Superchip (GB200)
  Arm Neoverse CSS V3 targeting HPC & AI
  with 50% higher performance vs CSS N2
  Arm Neoverse CSS N3 for cloud compute
  with 20% higher performance vs CSS N2
  Recent announcements
  Google announced Axion, their first Armbased chips for internal and GCP workloads
  Based on Arm Neoverse V2
  Delivers 60% better energy efficiency and
  50% more performance than x86-based chips
  NVIDIA announced the Grace Blackwell
  Superchip combining Grace chip with
  72 Arm Neoverse CPU cores with two
  NVIDIA GPU chips
  Delivers significantly faster AI for training
  and inference
  23 © 2024 Arm
  Automotive – Progressing our Strategy
  Arm announces next generation
  of automotive technologies
  Arm partnership reducing
  development time by up to two years
  Level 4 autonomous driving
  with Nuro on Arm
  Recent announcements
  Nuro is collaborating with Arm to create
  Nuro Driver a scalable autonomous platform
  for commercial and consumer applications
  This technology is on roads today being
  used for local goods delivery
  The automotive semiconductor market is one of Arm’s fastest growing opportunities and where we have been rapidly gaining market share
  Arm Neoverse V3AE: Data center levels of
  performance for autonomous driving
  Arm Cortex-A720AE: Armv9 CPUs for
  S/W defined vehicle applications
  Arm Cortex-R82AE: 64-bit computing for
  embedded applications
  Arm is partnering with Amazon AWS,
  Cadence, Correllium and Siemens to create
  virtual cloud-based platform for s/w defined
  vehicles
  Enables hardware and software to be
  developed in parallel reducing total time by
  up to two years
  24 © 2024 Arm
  IoT/Embedded – Progressing our Strategy
  New Arm NPU for AI at the Edge New Arm NPU enabled MCU New Arm enabled MPU for Edge AI
  Recent announcements
  STMicroelectronics introduces their first
  64-bit Arm-based MPU for AI accelerated
  applications such as machine-vision systems,
  scanners, medical wearables, network
  gateways, smart appliances, and industrial
  and domestic robots
  Arm is already the leading CPU architecture for IoT devices and embedded computers. Billions of IoT and embedded devices are in use today
  gathering and analyzing vast new sources of data. Billions more will be deployed to help us solve complex issues, such as the managing the
  impact of climate change, improving urban infrastructure, accelerating supply chains, and making healthcare accessible to all
  Arm announced Ethos-U85 NPU delivering
  4x performance uplift compared with
  previous generation for edge AI applications
  such as factory automation and commercial
  or smart home cameras
  Transformer acceleration bringing LLMs to
  deeply embedded devices
  Alif announced Balletto family of Bluetooth
  Low Energy MCUs based on Arm Cortex-M55
  and Arm Ethos-U55 for wide range of AI
  enabled applications such as door-locks,
  toys, smart sensors and digital assistants
  25 © 2024 Arm
  Client – Progressing our Strategy
  AI Smartphones Generative AI for edge devices Energy-efficient virtual assistant
  Recent announcements
  Meta announced that it has incorporated
  one of the most widely used AI frameworks,
  PyTorch/ExecuTorch, with Arm’s software,
  enabling on-device inference capabilities to
  run efficiently on mobile devices
  Arm revealed “Cookie” an energy efficient
  LLM that can run on 90% of current
  smartphones on just the CPU
  On a mid-range smartphone, Cookie runs at
  faster than the average human reading
  speed and can run on 90% of smartphones
  Our strategy is to develop and license more advanced technology such as CPUs based on its Armv9 architecture, and platforms that deliver
  additional functionality, higher performance, and higher energy efficiency in mobile and consumer computing devices.
  Arm’s customers and end device consumers continue to demand these latest and greatest advances
  AI enabled smartphones based on the latest
  Arm Cortex-X4 are changing how we
  interact with our mobile devices
  Arm Cortex-X4 enables on phone learnings,
  generative AI and LLM capabilities including
  image creation, live translation, and
  computational photography
  Samsung
  Galaxy S24
  Vivo
  iQoo 12
  Xiaomi
  14 Pro
  Cookie demo can be found at: https://newsroom.arm.com/generative-ai-on-mobile
  26 © 2024 Arm
  AI on Arm is Everywhere
  Mobile Automotive IoT &
  Embedded Cloud Compute
  Smart
  Home
  Generative AI Autonomous
  Driving
  AI for all
  applications
  Optimized
  for AI
  27 © 2024 Arm
  Unparalleled Software Ecosystem
  18M
  1.5Bn
  10M+
  30M+
  Developers on Arm,
  for Arm
  Ecosystem hours
  Developer hours
  1st decade of Armv8
  Developer hours
  1st decade of Armv9
  28 © 2024 Arm
  Ability to license
  Arm is the Ubiquitous Choice
  Energy efficiency
  Compute performance
  Software ecosystem
  End-market solutions
  Standardization
  All PC / Server Low-end embedded
  X86 RISC – V
  29 © 2024 Arm
  More Complexity More Chips More Arm Per Chip
  Why Arm Continues to Grow
  8
  192
  FYE16
  FYE24
  1.7x More
  Number of cores per “high end” Arm-based chip
  Increase in number of Arm-based chips shipped
  Mobile
  Auto
  Consumer
  Electronics
  IoT
  Cloud &
  Networking
  30 © 2024 Arm
  Royalty: Gaining Share in a Massive and Growing Market
  1 Based on chip value
  NETWORKING
  EQUIPMENT
  Market Value1 (2020 to 2022)
  MOBILE
  APPLICATIONS $22bn $30bn
  CLOUD
  COMPUTE
  AUTOMOTIVE
  $14bn $18bn
  IoT & EMBEDDED
  $11bn $19bn
  $31bn $42bn
  TOTAL
  OPPORTUNITY $166bn $203bn
  OTHER
  INFRASTRUCTURE $11bn $13bn
  $16bn $17bn
  OTHER
  MOBILE
  CONSUMER
  ELECTRONICS
  69%
  $46bn $47bn
  $14bn $18bn
  Client Infrastructure Auto IoT
  Calendar Years
  Market Share1 (2020 to 2022)

99% >99%
7% 10%
33% 41%
58% 65%
42% 49%
9% 16%
19% 26%
69% 64%
25% 32%
Note: As Arm receives royalty reports one quarter in arrears,
market share data for FYE24 will be provided in July following Q1 results
31 © 2024 Arm
Royalty Revenue: Arm is Gaining Share
Market Share by Chip Value
Other includes legacy and niche architectures such as:

• Proprietary architectures (68000, 80×51, AVR, Coldfire, PIC, PowerPC, RH850, etc.)
• Licensable and open-source architectures (Arc, Andes, Leon, MIPS, OpenPower, OpenRISC, RISC-V, Sparc, Tensilica, etc.)
  Calendar Years
  $0m
  $50m
  $100m
  $150m
  $200m
  $250m
  2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
  Arm x86 Other
  2014: 39%
  2023: 51%
  2020: 42%
  Note: As Arm receives royalty reports one quarter in arrears,
  market share data for FYE24 will be provided in July following Q1 results
  32 © 2024 Arm
  $0m
  $200m
  $400m
  $600m
  $800m
  $1,000m
  $1,200m
  $1,400m
  $1,600m
  $1,800m
  2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
  1990-2008 2009-2013 2014-2018 2019-2023
  CONFIDENTIAL
  Royalty Revenue Provides a Platform for Long-Term Growth
  Royalty revenue can continue for many years or decades
  Royalty revenue from Arm products launched during Fiscal Year Ending
  Still collecting
  royalties on
  products
  developed in the
  early 1990’s
  Long term
  visibility, near
  term
  predictability
  Based on year chip was shipped Note: Based on data derived from royalty reports provided by Arm’s
  customers. As Arm receives royalty reports one quarter in arrears,
  market share data for FYE24 will be provided in July following Q1 results
  33 © 2024 Arm
  Royalty-led Subscription Business Model
  Arm Total Access
  Long term subscription-based access to an extensive portfolio of more than 300 CPUs, GPUs and other IP including Arm’s latest products
  Partner Access
  Package IP
  Select, Evaluate,
  Experiment, Design
  Develop
  SoC
  Tape Out &
  Manufacture Ship
  DESIGN WIN
  REPORTED
  UNIT PER
  ROYALTY
  SUBSCRIPTION FEE
  Partner Access
  Package IP
  Select, Evaluate,
  Experiment, Design
  Develop
  SoC
  Tape Out &
  Manufacture Ship
  DESIGN WIN
  REPORTED
  UNIT PER
  ROYALTY
  MEMBERSHIP FEE
  PER PRODUCT
  LICENSE
  Arm Flexible Access
  Low / no-cost subscription-based access to ~100 of Arm’s most popular CPUs, GPUs and other IP
  Customers are free to experiment with products contained in the package
  34 © 2024 Arm
  Arm’s Financial Opportunity
  Revenues:
  47% growth
  Non-GAAP
  operating profit
  and margin
  Non-GAAP FCF and
  cash conversion from
  revenue
  Q 4
  FYE23
  Q 4
  FYE24
  $928m
  $633m
  ($1m)
  $391m
  42%
  $454m
  $637m
  71% 69%
  Strong revenue growth opportunity
  Balancing investing for long term growth
  with best-in-class margins
  Robust cash generation
  Q 4
  FYE23
  Q 4
  FYE24
  Q 4
  FYE23
  Q 4
  FYE24
  © 2024 Arm
  Appendix
  36 © 2024 Arm
  Environmental, Social and Governance
  Using the power of technology to build a better world for everyone
  Decarbonising compute
  Arm’s high performance, energy-efficient technology has the potential to help reduce emissions from
  billions of devices from sensors to servers
  Arm is committed to achieving net-zero carbon emissions by 2030
  Closing the digital divide
  Extending the benefits of technology to people and areas not currently prioritized
  Arm Flexible Access is enabling 100’s of companies to gain access to Arm technology at lower costs
  Arm Education helps to close the skills gap by supporting more than 10,000 computer engineering
  courses at over 2,500 universities since 2013
  Intending to lead in corporate responsibility
  Demonstrated through our values and responsible business practices
  Continuously developing our sustainability strategies