Marvell Investor Day October 16, 2018

Transcription

1 Marvell Investor Day 2018 October 16, 2018

2 Agenda Becoming an Infrastructure Leader Revolutionizing Storage Networking the Future Driving Growth Creating Long-Term Shareholder Value Matt Murphy Dan Christman Raghib Hussain Tom Lagatta Jean Hu I N V E S T O R D AY

3 Forward-looking statements This presentation contains forward-looking statements (within the meaning of the federal securities laws) that involve risks and uncertainties. Words such as anticipates, expects, intends, plans, projects, believes, seeks, estimates, can, may, will, would and similar expressions identify such forward-looking statements. These statements are not guarantees of results and should not be considered as an indication of future activity or future performance. Actual events or results may differ materially from those described in this presentation due to a number of risks and uncertainties, including, but not limited to those detailed in Marvell s SEC filings from time to time. For other factors that could cause Marvell s results to vary from expectations, please see the risk factors identified in Marvell s Quarterly Report on Form 10-Q for the fiscal quarter ended August 4, 2018 as filed with the SEC on September 12, 2018 and other factors detailed from time to time in Marvell s filings with the SEC. Marvell undertakes no obligation to revise or update publicly any forward-looking statements. I N V E S T O R D AY

4 Non-GAAP financial measures These slides provide financial measures on a U.S. GAAP as well as a non-gaap basis. We believe that the presentation of non-gaap financial measures provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations. While we use non-gaap financial measures as a tool to enhance our understanding of certain aspects of our financial performance, we do not consider these measures to be a substitute for, or superior to, the information provided by GAAP financial measures. A reconciliation in accordance with SEC Regulation G for the non-gaap financial measures used in these slides is available in the financial statements section of this presentation and/or in the Investor Relations section of our website at I N V E S T O R D AY

5 Becoming an Infrastructure Leader M A T T M U R P H Y P R E S I D E N T A N D C E O October 16, 2018 I N V E S T O R D AY

6 I N V E S T O R D AY

7 Meeting our commitments six quarters early Revenue ($M) Non-GAAP Gross Margin % Non-GAAP Operating Margin % $ % 30.1% 60.6% $ % Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Fiscal quarter financial results do not include the results of Cavium. Revenue, Gross Margin and Operating Margin are presented on a non-gaap basis and exclude special items. A reconciliation can be found at the end of the presentation. I N V E S T O R D AY

8 Data-driven approach to managing the business Aligning to the right markets Time-to-market counts Data drives business decisions Market Share Project Plan Price Curve I N V E S T O R D AY

9 Creating a high-performance culture Act with integrity and treat everyone with respect Innovate to solve customer needs Execute with thoroughness and rigor Help others achieve their objectives I N V E S T O R D AY

10 Marvell s mission We develop and deliver semiconductor solutions that move, store, process and secure the world s data faster and more reliably than anyone else. I N V E S T O R D AY

11 Infrastructure is an attractive long-term market 12-month design cycles Price sensitive 3-4 year product lifespan Multi-sourced 3-5 year design cycles Value partnership year product lifespan Single-sourced I N V E S T O R D AY

12 Marvell s engineering DNA is perfect for infrastructure 2 0 Y E A R S O F E T H E R N E T KNOW- HOW D E E P C P U C O R E E X P E R I E N C E IN- H O U S E I P D E V E L O P M E N T S O F T W A R E P L A T F O R M S S O C D E S I G N E X P E R T I S E >10,000 patents across technologies and markets I N V E S T O R D AY

13 Becoming an infrastructure leader Classic Marvell With Cavium 2017 Investor Day Today Today Marvell Estimates Infrastructure Revenue Other Revenue I N V E S T O R D AY

14 The new Marvell combines the best of two companies Cavium + Marvell Nimble start-up mentality Technology leadership Strength in Data Center & Carrier End-to-end technology development Execution & scale Strength in Enterprise I N V E S T O R D AY

15 Marvell offers the most complete infrastructure portfolio Storage Networking Processors Security Connectivity I N V E S T O R D AY

16 Marvell has a diverse business, positioned for growth C U S T O M E R S E N D M A R K E T S R E D U C E D N O T E B O O K H D D E X P O S U R E Notebook HDD ~7% Marvell Estimates I N V E S T O R D AY

17 Diverse portfolio driving long-term success STRATEGIC INVESTMENTS New markets Significant growth potential Products leverage existing IP in adjacent markets GROWTH Growing markets Leadership/strong position Gaining share ESTABLISHED Market leader Technology differentiation Highly profitable I N V E S T O R D AY

18 Scale matters now more than ever T E C H N O L O G Y C O S T S A R E R I S I N G E C O N O M I E S O F S C A L E N E E D E D $M $M Marvell Estimates 40nm 28nm 16nm 7nm Number of chips 40nm 28nm 16nm 7nm I N V E S T O R D AY

19 To build or not to build: Scale matters Marvell Build Buy Partner Full ASIC Merchant silicon Marvell IP Customer IP I N V E S T O R D AY

20 Partnering to create differentiated solutions DSP Cores HW Accelerator Baseband, Security Memory Controllers Scalable Cache/ Core Interconnect ARM Partner Marvell IP Customer IP System I/O PCI, CPRI Customer IP SerDes Focus on differentiation Time-to-market Total R&D cost I N V E S T O R D AY

21 How we are going to grow I N V E S T O R D AY 2018

22 Market forces Explosion of data and bandwidth demand Compute is moving to the data End-to-end security required Need for power efficiency I N V E S T O R D AY

23 Multiple drivers for growth Enabling disruptions in storage Enterprise upgrade cycle under way Capitalizing on 5G rollout Emerging opportunities in Data Center & Edge I N V E S T O R D AY

24 A large addressable market $16B $18B $8B Upside 5G Automotive Gartner, Dell Oro, Crehan, ABI Research; Marvell estimates 2017 Investor Day Cavium announcement Today I N V E S T O R D AY

25 Strong core market growth $23.5B $18B $18B 14% $6B $17B 9% CAGR CY18-21 $4B $14B 9% 7% CAGR CY18-21 $13.5B $10.5B $3.5B 3% $3.9B CY18 Gartner, Dell Oro, Crehan, ABI Research; Marvell estimates CY18 Storage Networking Arm Server CY21 I N V E S T O R D AY

26 Marvell is positioned for growth Leading infrastructure provider Meaningful scale and diversification Enabling 5G and other market disruptions Track record of strong execution I N V E S T O R D AY

27 Revolutionizing Storage D A N C H R I S T M A N E V P, S T O R A G E October 16, 2018 I N V E S T O R D AY 2018

28 Enabling disruptions in the Storage market Leading from a position of strength Shifting from PC to infrastructure Pioneering new architectures Expanding products to architecture solutions I N V E S T O R D AY

29 Leading the way in Storage solutions F I B R E C H A N N E L H D D S O L U T I O N S F L A S H S O L U T I O N S Fibre Channel Adapters HDD Controllers Preamps SSD Controllers Aggregators, Accelerators & Converters I N V E S T O R D AY

30 The opportunity in Storage is changing $3.5B Storage SAM $3.9B 3% CAGR -5% 1% 9% CY18 CY21 Data Center Edge/Other Desktop & Notebook Gartner and Marvell estimates. I N V E S T O R D AY

31 Pivoting to the Data Center Classic Marvell Storage Revenue 36% 48% 36% 37% 36% 24% 16% 27% 40% Before Today Future Marvell estimates Data Center Edge/Other Desktop & Notebook I N V E S T O R D AY

32 Pivoting to the Data Center Classic Marvell Storage Revenue With Cavium 36% 48% 36% 37% 30% 20% 16% 27% 50% Before Today Future Marvell estimates Data Center Edge/Other Desktop & Notebook I N V E S T O R D AY

33 Leading innovation in Fibre Channel We are the market leader Leading the transition from 32G 64G 128G Investing in inline security Enabling new use cases with NVMe over FC I N V E S T O R D AY

34 Not all HDD opportunities are created equal $1.9B HDD SAM -7% CAGR $1.6B -25% CAGR Stable Gartner and Marvell estimates CY18 Data Center/Edge/Other CY21 Desktop & Notebook I N V E S T O R D AY

35 Not all HDD opportunities are created equal $1.9B HDD SAM -7% CAGR Nearline HDD SAM $630M 13% CAGR $1.6B -25% CAGR $440M Stable CY18 CY21 CY18 CY21 Gartner and Marvell estimates Data Center/Edge/Other Desktop & Notebook I N V E S T O R D AY

36 We are now providing HDD solutions Preamp SAM $450M $440M Unique market opportunity Expanding beyond controllers Marvell is shipping in volume Data Center Gartner and Marvell estimates CY18 Edge/Other CY21 Desktop & Notebook I N V E S T O R D AY

37 Pivoting to infrastructure in HDD 100% Marvell HDD Revenue by Market 75% 50% Notebook % declining with market 25% 0% Before Today Future Data Center Edge/Other Desktop Notebook Marvell estimates Maintaining our share in Edge/Other Investing to lead in Data Center Preamps are kicking in I N V E S T O R D AY

38 Moving beyond SSD controllers to Flash solutions I N V E S T O R D AY

39 The Flash Storage market continues to evolve HDD replacement New form factors & interfaces New architectures & business models Optimized platform solutions I N V E S T O R D AY

40 Enabling Flash system innovations & flexibility: DIY model SSD Controller + NAND Flash + Customized Firmware = Custom features Optimized form factors New architectures Supply chain flexibility I N V E S T O R D AY

41 Marvell is disrupting new Flash platform solutions NEW FORM FACTORS ( E D S F F, N F 1, C U S TO M ) DATA CENTER FLASH OPTIMIZATIONS ( O P E N - C H A N N E L & D E N A L I ) ETHERNET BUNCH OF FLASH ( E B O F ) NVMe SSD Controllers + NVMe Aggregators NVMe SSD Controllers + NVMe Accelerators NVMe SSD Controllers + NVMe Converters + Ethernet Switches I N V E S T O R D AY

42 New differentiating solutions expand our Flash SAM Flash Solutions Expanded SAM $1.9B $1.1B 19% Flash Solutions CAGR 17% SSD Controller CAGR Gartner and Marvell estimates SSD Controllers CY18 CY21 Aggregators, Accelerators & Converters I N V E S T O R D AY

43 Pivoting to infrastructure in Flash solutions 100% Marvell Flash Solutions Revenue by Market 75% 50% Non-PC % of revenue growing 25% 0% Before Today Future Shift to Data Center continues Solutions focus increases opportunity Marvell estimates Data Center/Edge/Other Desktop Notebook I N V E S T O R D AY

44 Positioned for steady growth Leading from a position of strength Shifting from PC to infrastructure Pioneering new architectures Expanding products to architecture solutions I N V E S T O R D AY

45 Networking the Future R A G H I B H U S S A I N E V P & C H I E F S T R A T E G Y O F F I C E R October 16, 2018 I N V E S T O R D AY 2018

46 Volume of data is disrupting networking infrastructure CLOUD COMPUTING IoT 5G NETWORKS SMART CITIES AUTONOMOUS CARS BY B connected devices 163 zettabytes 30% critical IDC Data Age 2025, Statista I N V E S T O R D AY

47 Requiring new computing models Heterogeneity one size does not fit all ARM SoC ACCELERATORS High performance/efficiency Low-power profiles FPGA GPU End-to-end security I N V E S T O R D AY

48 Marvell has the broadest networking portfolio Processors Ethernet Wi-Fi ax Baseband processors Multi-core embedded processors Security processors Ethernet switches PHYs Ethernet adapters Wi-Fi access points Wi-Fi clients ARM Arm server processors I N V E S T O R D AY

49 Marvell is aligned to end market needs E N T E R P R I S E C A R R I E R D ATA C E N T E R E D G E / O T H E R I N V E S T O R D AY

50 A large and growing opportunity $14.5B With Arm Server $10.5B Core Markets 14% 11% 8% 9% CAGR CY % CAGR CY % ABI, Dell Oro, Crehan, IDC and Marvell estimates CY18 CY21 Wi-Fi Ethernet Processor Arm Server I N V E S T O R D AY

51 Business diversity across a $10.5B addressable market ENTERPRISE CY18 SAM CARRIER ~34% ~21% EDGE/OTHER ~21% ~24% DATA CENTER Enterprise Carrier Data Center Edge/Other ABI, Dell Oro, Crehan, IDC and Marvell estimates I N V E S T O R D AY

52 Enterprise I N V E S T O R D AY 2018

53 Well-positioned to grow in the Enterprise ~$2B CY18 SAM $10.5B Marvell has ~30% of addressable Enterprise market today Ethernet switches & PHYs Multi-core embedded processors Wi-Fi access points Security processors ABI, Dell Oro, Crehan, IDC and Marvell estimates I N V E S T O R D AY

54 Enterprise IT upgrade cycle is underway I N V E S T O R D AY 89% of companies expect their IT budgets to grow or stay steady in 2019 Leading reasons 64% 56% upgrade outdated IT infrastructure address security concerns Spiceworks: 2019 State of IT Annual Report I N V E S T O R D AY

55 Marvell serves the entire Enterprise A C C E S S A G G R E G AT I O N CORE I N V E S T O R D AY

56 Enterprise growth drivers for Marvell M O V E F U R T H E R I N T O E N T E R P R I S E G R O W S H A R E AT L E A D I N G O E M s CORE AGGREGATION ACCESS I N V E S T O R D AY

57 Complete network appliance solution F I R E WA L L S S W I T C H E S R O U T E R S SD-WANS PHYs Switch Processor Complete software platform I N V E S T O R D AY

58 Switching solutions optimized for Enterprise A C C E S S A G G R E G AT I O N C O R E Processor Switch PHYs Complete software platform I N V E S T O R D AY

59 Positioned for growth in the Enterprise Broadest product portfolio serving the entire network from access to the core Optimized for the Enterprise Multiple drivers for growth Infrastructure upgrade cycle underway Expansion into aggregation and core Pull-through of other products Becoming a strategic partner I N V E S T O R D AY

60 Data Center I N V E S T O R D AY 2018

61 Opportunity for growth in Data Centers CY18 SAM $10.5B Marvell has ~10% of addressable Data Center market today Security & offload processors ~$2.5B Ethernet Switches, PHYs, Adapters ARM Arm server processors +$4B SAM ABI, Dell Oro, Crehan, IDC and Marvell estimates I N V E S T O R D AY

62 Emerging compute architectures for the Data Center S E C U R I T Y A N D N E T W O R K O F F L O A D A R M S E R V E R S F O R C L O U D A P P L I C AT I O N S A R T I F I C I A L I N T E L L I G E N C E I N V E S T O R D AY

63 Marvell is the leader in Data Center security & network offload D E D I C A T E D A P P L I A N C E ( C H I P S A N D A D A P T E R S ) C L O U D S O L U T I O N S ( A D A P T E R S ) I N V E S T O R D AY

64 Liquid Security in deployment with cloud companies I N V E S T O R D AY

65 ThunderX2 the first Xeon-class Arm server processor I N V E S T O R D AY

66 ThunderX2 in the news In short, ThunderX2 is the first SoC that is able to compete with Intel and AMD in the general purpose server CPU market. And that is a pleasant surprise: at last, an Arm server solution that delivers! John DeGalas, AnandTech I N V E S T O R D AY

67 Artificial Intelligence TRAINING CLOUD INFERENCE ENTERPRISE INFERENCE CARRIER INFERENCE EDGE INFERENCE I N V E S T O R D AY

68 AI processors Marvell s next frontier A R T I F I C I A L I N T E L L I G E N C E P R O C E S S O R Small form factor Performance efficiency Low power Programmability Software ecosystem I N V E S T O R D AY

69 Growing momentum in AI inference ecosystem I N V E S T O R D AY

70 Edge & Other I N V E S T O R D AY 2018

71 Edge & Other market opportunity CY18 SAM $10.5B Marvell has ~15% of addressable Edge & Other market today Ethernet switches & PHYs Embedded processors ~$2B Wi-Fi clients ABI, Dell Oro, Crehan, IDC and Marvell estimates I N V E S T O R D AY

72 What s included in Edge & Other Automobiles Surveillance Printers Cameras Gaming systems Home gateways Smart assist Set-top boxes I N V E S T O R D AY

73 Automobiles are becoming data centers on wheels Rear Entertainment Console Infotainment Telematics Control Units (TCUs) + Smart Antenna(s) Rear View Cameras Audio System/Amplifier Forward View Cameras Advanced Driver Assistance System (ADAS) Central Gateway Motor Drives (i.e., Wheel, Door) Cluster Display Side View Cameras Infotainment Telematics ADAS Body I N V E S T O R D AY

74 Marvell is revolutionizing the in-car network Secure Ethernet switches & PHYs Strong customer adoption Wireless connectivity I N V E S T O R D AY

75 Carrier I N V E S T O R D AY 2018

76 Large addressable Carrier market CY18 SAM $10.5B ~$3.5B Marvell has ~10% of addressable Carrier market today Baseband processors Multi-core embedded processors Ethernet switches & PHYs Security processors ABI, Dell Oro, Crehan, IDC and Marvell estimates I N V E S T O R D AY

77 Core technology to advance Carrier infrastructure Digital signal processing Data plane acceleration Multi-core scaling Arm SoC Security In-house SerDes Ethernet Software platforms I N V E S T O R D AY

78 Marvell powers a wide range of Carrier products W I R E L E S S W I R E D enodeb gnodeb EPC CRAN Core Router Border Controller DSLAM CMTS GPON OLT I N V E S T O R D AY

79 Marvell has a growing position in Carrier infrastructure >7M base station processors shipped Full 5G base station platform Baseband & full 4G processor Backhaul encryption Air encryption & transport G G 5G I N V E S T O R D AY

80 Marvell provides the engine that makes 5G run 3G content BASE STATION FUNCTIONALITY Packet processing and backhaul 4G content Higher layer processing Baseband processing Switching Digital 5G content Beamforming & MIMO Transform Digital radio Analog-Digital conversion Analog radio Analog Antenna I N V E S T O R D AY

81 Marvell has significantly more content in 5G base stations Main Card Main Card Line Card 4X $ CONTENT Line Card Line Card I N V E S T O R D AY

82 Changing Carrier landscape Worldwide RAN Infrastructure Market Share OTHER SAMSUNG ZTE ZTE ALCATEL-LUCENT HUAWEI HUAWEI NORTEL MOTOROLA ALCATEL-LUCENT MOTOROLA SAMSUNG NOKIA NOKIA NOKIA ERICSSON ERICSSON ERICSSON Dell Oro Q18 I N V E S T O R D AY

83 5G is here September 18, 2018 SK Telecom taps Samsung, Ericsson, January 3, 2018 Verizon selects Samsung for 5G commercial launch November 17, 2017 China Mobile to Deploy 10,000 5G Base stations by 2020 Nokia for 5G network deployment January 19, 2018 T-Mobile US signs $3.5 billion 5G deployment deal With Ericsson February 26, 2018 Sprint to deploy Samsung's new 5G-ready M-MIMO solutions to increase gigabit speeds & capacity July 30, 2018 T-Mobile signs $3.5 billion deal with Nokia for 5G technology Reliance February 28, 2017 Reliance Jio to bring 5G to India with Samsung September 12, 2018 AT&T 5G deal marks a first for Samsung in U.S. January 19, 2018 NTT Docomo taps Nokia for Japan s 5G launch in 2020 I N V E S T O R D AY 2018

84 5G is a great long-term business for Marvell $M $30,000 RAN Infrastructure Revenue $25,000 $20,000 $15,000 $10,000 $5,000 $ Dell Oro 2G 3G 4G 5G I N V E S T O R D AY

85 5G will be a major growth driver for Marvell Proven track record in Carrier Full 5G base station platform 4X $ content increase Well-positioned to grow share I N V E S T O R D AY

86 Summary Positioned for continued growth in Enterprise Driving new compute models in the Data Center & Edge Leading silicon supplier for 5G rollout Investing in disruptive technology I N V E S T O R D AY

87 Driving Growth T O M L A G A T T A E V P, S A L E S & M A R K E T I N G October 16, 2018 I N V E S T O R D AY 2018

88 Aligning Sales and Marketing for success C O V E R A G E MAP S A L E S S T R A T E G Y ACCOUNT P E N E T R A T I O N W O R L D - C L A S S M A R K E T I N G B U S I N E S S D E V E L O P M E N T Team Analytics/Metrics Maintained top accounts Digital marketing Built auto BD Relationships Channel Tools/Process Solution selling Hybrid Grow new accounts Very healthy top 10 Complementary top 10 Website PR/trade show strategy BU coordination Building service provider Cultivating strategic partnerships I N V E S T O R D AY

89 Sales integration status Created a complementary mix of talents from both companies Americas product cross-training complete online for EMEA & Asia Tools and systems merging now Complete merger of pay plans and incentive structures Q1/FY20 Hauled Murphy all over the globe I N V E S T O R D AY

90 The new Marvell Company positioning Focused infrastructure powerhouse with the broadest portfolio A pragmatic, experienced partner for our valued customers Targeted IP deployed in customers solutions from ASIC to SP Experienced in moving, storing, processing and securing data Apply our IP to create next-gen learning machines We think ahead, so our customers can too I N V E S T O R D AY

91 Last year If You Want to Catch Big Fish. You Have to Fish Where the Big Fish Are! I N V E S T O R D AY

92 Aligned to catch the big fish across our target markets 8 CUSTOMERS OVER $100M TOP ACCOUNTS ARE ALL DIRECT INVESTING IN CHANNEL FOR FLEXIBILITY E N T E R P R I S E C A R R I E R D ATA C E N T E R E D G E / O T H E R I N V E S T O R D AY

93 Transitioning from supplier to partner for the future IP PORTFOLIO COMPLETE PLATFORM BUSINESS MODELS FOCUS & SUPPORT I N V E S T O R D AY

94 Our platform enables cross-selling opportunities E N T E R P R I S E C A R R I E R D ATA C E N T E R E D G E / O T H E R Processors Storage Networking Security Connectivity I N V E S T O R D AY

95 Cross-selling our Data Center platform SERVERS & SYSTEMS STORAGE NETWORKING ARM Server processors ARM High-capacity HDD Switches & PHYs Network offload High-speed SSD Security processors Security offload Flash systems solutions Multi-core embedded processors I N V E S T O R D AY

96 Cross-selling our Carrier platform RAN SOLUTIONS CORE SOLUTIONS Baseband processors ARM Arm server processors Multi-core embedded processors Switches & PHYs Security processors Switches & PHYs I N V E S T O R D AY

97 Cross-selling our Enterprise platform ACCESS AGGREGATION CORE Switches & PHYs Multi-core embedded processors Wi-Fi ax Switches & PHYs Multi-core embedded processors Security processors Switches, PHYs, adapters Multi-core embedded processors Security processors I N V E S T O R D AY

98 Sales & Marketing are aligned to drive growth We have been on a journey Integration completed Creating an infrastructure powerhouse THE NEW MARVELL 4 5 Portfolio creating leverage across markets Our future s so bright, you gotta wear shades! I N V E S T O R D AY

99 Creating Long-Term Shareholder Value J E A N H U C H I E F F I N A N C I A L O F F I C E R October 16, 2018 I N V E S T O R D AY 2018

100 Powerful business model delivers long-term shareholder value Revenue growth Margin expansion Capital allocation Focused on growing infrastructure markets Breadth and depth of product portfolio Strong customer partnerships Technology differentiation & product mix Economies of scale Operational excellence Organic investment M&A Return cash to shareholders Focus on generating long-term growth and cash flow I N V E S T O R D AY

101 Strong execution on our financial model Revenue ($M) Non-GAAP Gross Margin % Non-GAAP Operating Margin % $605 $616 $615 $605 $ % 61.2% 61.6% 62.3% 62.5% 63.5% 25.8% 28.4% 26.9% 27.4% 30.1% $ % Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Fiscal quarter financial results do not include the results of Cavium. Revenue, Gross Margin and Operating Margin are presented on a non-gaap basis and exclude special items. A reconciliation can be found at the end of the presentation. I N V E S T O R D AY

102 Driving margin expansion and operating leverage 63.5% 53.6% Gross Margin 30% Operating Margin Operating Expenses % Q Q Q Q Q Q Q Q Q Q Gross margin and operating expenses % do not include Cavium and are presented on a non-gaap basis and exclude special items. A reconciliation can be found at the end of the presentation. I N V E S T O R D AY

103 Returned ~100% of free cash flow to shareholders ~ $ 1 B C A P I TA L R E T U R N S S I N C E Q 2 F Y 1 7 $1,000 Cumulative share repurchase & dividends ($M) $800 $600 $400 $200 $- Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18-Q2FY19 Share repurchase Dividends Marvell 10Qs and 10-K Share repurchase resumed In Q3FY17 Share repurchase was paused due to Cavium merger I N V E S T O R D AY

104 Cavium merger strengthens our business model SAM expansion from $8B $18B Long-term top-line growth Infrastructure as % of revenue ~2/3 Long product cycle Gross Margin expansion Significant & sustainable cash flow generation Scale and diversification $200M Synergies Business model leverage I N V E S T O R D AY

105 Focused on infrastructure market opportunities Marvell long-term revenue CAGR: 6-8% UPSIDE Storage UP low single-digit Data Center opportunities Flash solutions Revenue synergies Networking UP low teens Enterprise upgrade cycle 5G adoption with existing customers Data Center presence Moderate server processor revenue Additional 5G customer wins Hyper-scale Arm server adoption Other Down high single-digit Printer and legacy products with long life I N V E S T O R D AY

106 Raised synergy target to $200M COGS $50M Wafer / Assembly / Testing Economies of scale Operational efficiency Total synergy $200M R&D $150M SG&A Roadmap consolidations of Switch and Embedded Processor businesses Exit MontaVista Duplicate SG&A functions Distribution channel optimization Facility and IT consolidation I N V E S T O R D AY

107 Synergy execution timeline $50M gross margin synergy and margin expansion Operating expense synergy plan > 66% $325M 63.5% ~ $290M Q2 FY19 Marvell Stand-alone Cavium mix shift $50M COGS Synergy and Operation efficiency Target GM Quarterly combined opex baseline Expected Payroll tax and $90M Synergy merit increase realized in Q3FY19 Remaining $60M synergy Q4FY20 Opex run rate Disclaimer: Charts are not to scale, for illustration purposes only. 2H FY19 FY20 Q1FY21 2H FY19 1H FY20 2H FY20 I N V E S T O R D AY

108 Disciplined allocation of SG&A and R&D Driving operational excellence SG&A: 6-7% OF SALES Rationalize sales coverage Leverage scale Streamline and optimize G&A Consolidate facility enabling growth investment R&D: 24-25% OF SALES Established business: < target Growth business: > target Strategic investments: Create future growth opportunities Invest to deliver long-term profitable growth I N V E S T O R D AY

109 Compelling long-term financial model End of FY22 Non-GAAP* Target model Commentary Revenue growth CAGR 6-8% Storage: Low single-digit Networking: Low teens GM% >66% Product mix, scale and $50M synergy R&D% 24-25% Invest to drive long-term value creation SG&A% 6-7% Operational excellence Operating margin % >35% Grow operating income faster than revenue FCF% >30% ~100% of non-gaap net income *Revenue and financials represented on a non-gaap basis. Assumes capex to be 2-3% sales. I N V E S T O R D AY

110 Capital structure supports long-term growth strategy A M P L E A C C E S S T O L I Q U I D I T Y K E Y C R E D I T O B J E C T I V E S Cash balance (Q2FY19) = $524M Undrawn credit facility = $500M Strong free cash flow Current leverage ratio 2.0X 1.5X Investment-grade credit rating Access to debt capital markets Strong financial flexibility Expect to pay down debt to achieve 1.5X gross debt leverage ratio within 12 months Gross debt/pro forma EBITDA Net debt / Pro forma EBITDA Current leverage ratio is based on Q2FY19 balance sheet metrics and pro forma Marvell+Cavuim EBITDA for LTM ending Q2FY19. $524M cash includes cash on hand plus short term investments. I N V E S T O R D AY

111 Balanced capital allocation strategy I N V E S T I N B U S I N E S S S H A R E H O L D E R R E T U R N S Focus on disciplined organic investment to drive long-term revenue growth R&D as % of sales: 24-25% Long-term target return: At least 50% of free cash flow to shareholders Return cash through dividend and share repurchase Strategic M&A Increased Share Repurchase Plan to $1B I N V E S T O R D AY

112 Creating long-term shareholder value Marvell is well-positioned in the growing infrastructure market Powerful business model delivers long-term profitable growth and cash flow generation Strong financial position and flexibility supporting growth and capital returns I N V E S T O R D AY

113 Thank you

114 Unaudited GAAP to Non-GAAP reconciliations ($K) Fiscal Quarter Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Apr 30, Jul 30, Oct 29, Jan 28, Apr 29, Jul 29, Oct 28, Feb 3, May 5, Aug 4, Fiscal Quarter ending: GAAP Net income (loss) $(22,679) $51,305 $72,616 $(80,091) $106,621 $165,259 $200,188 $48,763 $128,612 $6,759 Less: Income (loss) from discontinued operations (15,387) (11,161) (10,557) (16,563) 7,029 29,809 50,851 GAAP net income (loss) from continuing operations (7,292) 62,466 83,173 (63,528) 99, , ,337 48, ,612 6,759 (1) Cost of goods sold Share-based compensation 1,784 2,720 2,189 1,641 1,426 1,810 1,747 1,662 1,905 4,748 Amortization of acquired intangible assets 18,984 Other costs of goods sold 3,000 8,000 22,933 (2) Research and development: Share-based compensation 21,633 24,851 17,261 11,063 13,990 12,371 12,713 13,053 14,285 26,859 Other operating expenses (49) ,160 1,790 (268) 301 (3) Selling, general and administrative: Share-based compensation (1,989) 5,508 5,780 8,958 6,323 7,186 6,179 6,662 7,662 41,816 Amortization and write-off of acquired intangible assets 2,298 2,299 2,299 1,480 1,071 1,065 1, ,955 Other operating expenses 1,291 (187) (103) ,579 15,252 27,928 (4) Restructuring and other exit related costs in Operating Expense 4, ,164 90, ,285 3,284 (3,205) 1,567 35,415 (5) Luna settlement and related charges in Operating Expense 74,385 (6) Interest and other (income) loss, net Restructuring related items (3,085) (2,286) 1,355 (1,512) (121) Issuance cost related to terminated standby loan 6,104 (7) Provision for income taxes: Tax-related adjustments (1,071) 67,989 (64) (10,298) (398) 3,170 (3,098) (36,720) Non-GAAP Net income from continuing operations $21,046 $98,552 $111,866 $118,393 $125,527 $153,471 $171,772 $164,782 $164,673 $161,961 Non-GAAP Operating income $15,192 $86,445 $121,919 $114,969 $127,424 $155,767 $175,015 $165,505 $165,750 $177,648 I N V E S T O R D AY