Annual Report and Accounts 2010

Financial KPIs

Revenue $m

06
199.0
202.5
82.1
483.6

07
208
217.9
87.6
514.3

08
266.8
189.7
89.7
546.2

09
244.3
164.1
81.1
489.5

10
335.3
208.2
87.8
631.3

Royalty
Licensing
Other

ARM's revenue growth is sustained by our customers incorporating ARM technology in more of their product lines.

Sterling revenues £m

06
107.8
110.6
44.9
263.3

07
104.1
110.7
44.4
259.2

08
147.7
103.5
47.7
298.9

09
155.4
98.5
51.1
305.0

10
217.7
132.5
56.4
406.6

Royalty
Licensing
Other

About 95% of ARM's revenues are in US dollars, but only about half of our costs are US dollar-based.

Profit from operations £m

06
49.2
81.8

07
39.7
82.1

08
59.9
97.7

09
45.6
95.1

10
107.0
164.3

Profit under IFRS
Normalised profit

Growing revenues and continued financial discipline drive ARM's profitability.

Operating margin %

06
18.7
31.1

07
15.3
31.7

08
20.1
32.7

09
15.0
31.2

10
26.3
40.4

Operating margin under IFRS
Normalised operating margin

ARM's financial discipline balances long-term R&D investment with cost control to improve operating margins over time.

Earnings per share pence

06
3.43
5.02

07
2.59
4.79

08
3.39
5.66

09
3.11
5.45

10
6.36
9.34

Diluted EPS under IFRS
Normalised diluted EPS

Revenue growth and margin expansion drive higher earnings per share.

Dividend pence

06
1.00

07
2.00

08
2.20

09
2.42

10
2.90

ARM has a progressive dividend policy, growing the dividend through industry cycles.

Normalised net cash generation £m

06
52.2

07
60.2

08
95.3

09
86.1

10
179.9

Net cash at the end of 2010 was £290 million. Regular licences and robust royalties deliver a reliable cash flow.

Cumulative cash returned £m

06
31
93
124

07
50
222
272

08
77
261
338

09
106
261
367

10
141
261
402

Dividends
Share buybacks

Reliable cash generation allows for cash to be returned to shareholders.