Welcome to 2017 Analyst Day - s22.q4cdn.coms22.q4cdn.com/909968316/.../09/...Analyst-Day-2017.pdf · Analyst Day September 21, 2017. 2. 3 ... Advanced memory for the future of data

Welcome to 2017

Analyst Day

September 21, 2017

2

3

This presentation contains forward-looking statements regarding our financial prospects, including financial

guidance for 3Q-2017, markets, demand for our products, and product development, among other things.

Such forward-looking statements are based on current expectations, estimates and projections about the

Company’s industry and management’s beliefs and assumptions. These statements are subject to risks and

uncertainties which are more fully described in the documents that we file with the SEC, including our 10-Ks,

10-Qs and 8-Ks, and these statements may differ materially from our actual results.

This presentation contains non-GAAP financial measures such as non-GAAP operating Income, margin and

EPS, and Adjusted EBITDA and EBITDA margins. We believe the presentation of these non-GAAP

measures provide management and investors with meaningful information to understand and analyze our

financial performance. Reconciliations of these non-GAAP measures to their most directly comparable

GAAP measures can be found in the Appendix to the presentation. However, this presentation should not be

considered in isolation or as a substitute for the comparable GAAP measurements, when available.

Safe Harbor for Forward-Looking Statements

4

Video

6

8:30 - 9:15 Check-in & Breakfast

9:15 - 9:45 Company Overview and Update - Data.Faster.Safer…

9:45 -10:00 Emerging Solutions - Data.Smarter…

10:00 - 10:30 Data Center Update - Data.Faster…

10:30 - 10:45 Break

10:45 - 11:15 Mobile Edge Update - Data.Safer…

11:15 - 11:40 Financial Overview

11:40 - 12:00 Q&A with Exec Team

12:00 - 1:00 Lunch

Welcome

7

From IP to High-Value Hosted Services

Patent

Licenses

Architecture

Licenses

IP Cores

Infrastructure

Software

&

SaaS

Hosted

Services

Chips &

Products

Expanding beyond Semiconductor IP

8

Serving Two Key High-Growth Markets

Data

Cen

ter

Mo

bile E

dg

e

Architecture

License+

Cores

DDRx PHYs

SerDes PHYs

Chips

Buffers

Networking

Historic Business Near-term Growth

Architecture

License+

Secure

Smart Cores

Provisioning

Mobile Payments

Smart Transport

IoT Device

Management

9

From Chip to Cloud to CrowdMaking data faster, safer and smarter

10

Cores

SerDes PHYsMove data from chip to chip

Memory PHYsMove data between chips and memory

Chips

Server DIMM ChipsetsEnables more capacity at high performance

The Data Center

11

The Mobile EdgeData・Safer

Embedded SecuritySecure Cores

Embedded device protection

CryptoManager PlatformSecure provisioning and key management

Secure ServicesCryptoManager Trusted Services

Device security management

Secure SoftwareMobile Payments

Secure payments and trusted transactions

Smart TicketingSimplified travel with mobile ticketing

12

Data Center

Mobile Edge

13

The Past 12 Months …

• Licensing beyond

DRAM – WD for Flash

• 24% YoY growth

• Accelerating growth

through acquisitions

• Recasting business

model to ship

products (semi

micro- hardware to

SaaS software) with

supporting IP

innovation

• Nvidia licensed DPA

Countermeasures

• Xilinx licenses memory,

SerDes, and security tech

Q4 Q1 Q2 End Q3End Q3

• Functional silicon

targeted at DDR5 buffer

chips

• Demonstrated IDM

security service on

leading cloud platform

Product

Licensing

Revenue

• Buffer Chip and high-

speed SerDes

Programs enhanced

• Secure provisioning for

Payments and Smart

Ticketing (launched

HCE Ticketing)

• HBM2 PHY Solution

• Launched Unified

Payment Platform (UPP)

• 56G SerDes PHY with

Samsung

• 34% YoY growth

• Launched turn-key,

CryptoManager™ IoT

Device Management

service, demoed

with Qualcomm and

STMicroelectronics

• Key partnerships with

CyberTrust, Synopsys,

Google and Interac

• 27% YoY growth

14

Growth metrics. Leading indicators.

• Maintain leadership in IP Cores

• Buffer chips – revenue growth and

leadership in DDR5

• Pilots and commercial sales for Payment

and Ticketing

• Adoption of CryptoManager IoT device

management

Focus on…

• Licensing and renewals

• Product execution and introductions

• SaaS services (tokenization, IoT

security,…)

• Continued cost management and cash

generation

The Next 12 Months…

15

• Emerging Solutions

Bridging to product through research

Advanced memory for the future of data center

• The Data Center

Historic perspective and next-gen opportunity

Cores and chips

• The Mobile Edge

In-field services for IoT and commerce

Foundational security for trusted transactions

• Financial Overview

Status and expectations

Investment thesis

What’s Next…

16

Emerging Solutions

Laura StarkGeneral Manager,

Emerging Solutions Division

17

Emerging SolutionsInnovating future solutions

Emerging SolutionsData・Smarter

18

500+ patents & apps

related related to:

• Serial link architectures

and circuits

• SerDes Interfaces

including PCIe, 10GbE,

SATA, USB, etc.

Worldwide Patent Portfolio in Strategic Areas

130+ patents & apps

related to:

• DPA/side-channel attack

countermeasures

• Anti-counterfeiting and

anti-piracy technology

• Key protection and secure

software loading for SoCs

and FPGAs

1500+ patents & apps

related to:

• DRAM, NAND Flash, and

RRAM memory system

architectures and circuits

• Memory interfaces

including DDR2/

DDR3/DDR4

19

Relevance with Industry Leaders

Source: Innography (Aug-2017)

20

Challenges Facing the Industry…

Limits of DRAM scaling

Number of CPU cores

scaling faster than

memory can support

Low CPU UtilizationBig Data Analytics

Cost per bit of DRAM

no longer scaling

with process

Massive and growing

data sets are straining

data center architecture

90nm

0.25um

0.18um

0.13um65nm 45nm

0.35um

1990 1995 2000 2005

Gate

Oxid

e T

hic

kness (

nm

) 10

1

The end of traditional scaling

These challenges are opportunities for the types of

innovation that Rambus excels at

21

• Exploring alternatives to accelerate

the delivery and computation of

data

• Utilizing our acceleration platform

to develop new advanced memory

systems

• Integrating DRAM and Storage

Class Memory

New Memory Architectures for Future Data Center

Processing

Memory

Storage

CPU

SSD

HDD

DRAM

SCM

New Alternatives?

22

Driving the Next Big Changes in Memory

High-speed Interfaces

• DIMM Extension

• GenZ

• OpenCAPI

Module Buffer Architectures

• RDIMM

• LRDIMM

• NVDIMM

• Hybrid DIMM

Memory Architectures• DRAM

• Flash

• RRAM

• MRAM

• PCM

23

Exploring avenues to

surpass the slowing of

Moore's Law and meet the

needs of next-generation

data centers through

cryogenic research

24

• Focused on cryogenic temperature to

enable new memory solutions

Lower operating temperature allows

lower operating voltages with improved

energy efficiency and cost of ownership

(COO) for memory systems

Optimized architectures are required to

reap these benefits for cryogenic and

quantum computers

Reestablishing DRAM Scaling - Cryogenic Technology

Exploring avenues to overcome the

slowing of Moore’s Law for future-

generation data centers

25

Cryogenic ResearchPartner

FAB Partner

ModelingDevelopment

DRAM Partner

Expanding to Prototypes

26

Data Center

Luc SeraphinGeneral Manager,

Memory & Interfaces Division

27

Cores



Chips


The Data CenterData・Faster

28

Building Momentum

Rambus, PLDA and Avery Design

Announce Comprehensive

PCIe 4.0 Solution

Rambus Introduces High Bandwidth

Memory PHY on GLOBALFOUNDRIES

FX-14™ ASIC Platform using 14nm LPP

Process Technology

Rambus Partners with Samsung to

Develop 56G SerDes PHY on 10nm LPP

Process

GLOBALFOUNDRIES Demonstrates

2.5D High-Bandwidth Memory Solution

for Data Center, Networking, and Cloud

Applications

Rambus Launches JEDEC-Standard

DDR4 NVRCD for Emerging NVDIMM

Applications

29

Real-time Applications Demand More Memory

Telecom

& Cloud

More customer

transactions

Business

Intelligence

Better insights

and more

opportunities

Financial

Services

Faster

transactions and

more accurate

assessments

Health & Life

Sciences

Solve complex

problems with

better, faster

results

High-bandwidth memory capacity is critical for real-time applications

30

Exponential data growth is driving

performance requirements and new

architectures

High-speed interconnects are key to

data center performance and growth

Exponential Data Growth Mandates Increased Speed

0

20

40

60

80

100

120

140

160

180

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Zeta

byt

es

Source: IDC's Data Age 2025 Study Data Created

Size of Global Data Creation Cloud Services

IoT Devices

Streaming Video

Social MediaeCommerce

Wireless Networks

Big Data

Data

Center

Servers Storage

31

Cores



Chips



32

Rambus High-speed IP Ecosystem

Technology

Foundry

Design/

Validate IP

License IP

Direct License IP

Sell ASIC

Networking

Data Center

Communications

ASIC House/

SOC Integrators

33

High-speed Interface IP: The Data Center’s Backbone

Largest data centers require millions of

high-speed memory and SerDes cores

• Large Data Centers exceed 100,000

servers

• More than a dozen high-speed interfaces

required per server

Exponential growth

• Total data center market expected to

double in size between 2015 and 2020*

• Data center cloud usage 30% expected

CAGR through 2020*

*http://www.cisco.com/c/dam/en/us/solutions/collateral/service-provider/global-cloud-index-gci/white-paper-c11-738085.pdf

Typical server

line card

34

Rising design cost and complexity promotes using proven,

high performance margin IP solutions

Source: SEMICO Research

IP Integration cost based on node, not date

In-house design cost increasing

• Approaching ~200 IP blocks per SoC

• Over $160M in design implementation costs

• $10M+ potential revenue loss if late to market

due to re-spin

Low risk solutions ➡ Reduce time-to-market

• Validated, tested, and silicon proven

• Qualified with industry Fab partners

• Robust and high-margin solutions

More than a PHY vendor

• History of industry leading memory solutions

• Integrated customer IP

• System and packaging design capabilities

SoC Cost and Complexity on the Rise

0

50

100

150

200

250

0

50

100

150

200

250

SOC IP Cores and IP Integration Cost Trend

IP C

ore

s p

er

So

C

IP In

teg

ratio

n C

osts

in $

M

Cores

Costs

35

Complete Solutions: SerDes PMA+ PCS, MAC (Partners)

Rambus High-Speed SerDes PHY Solutions

Lead

Customers

Integrated tools for easy bring-up and

characterization

Validated solutions with partners

• PCIe 4/3/2

• CEI 11/6

• XFI/XAUI

• SATA

• SAS

16G28nm & 14nm

• CEI-

28/25/11/6

• 100/50/25Gb

E

• 10G-KR

• FC28

• XFI/XAUI

28G14nm & 7nm*

• CEI-56G MR

• CEI-56G LR

• CEI-28/25/11

• 400GbE

• PAM-4/NRZ

LEAD

CUSTOMERS

56G10nm

• 112G Single

Lane

• CEI-56G MR

• CEI-56G LR

• CEI-28/25

• PAM-4/8

IN

DEVELOPMENT

112G7nm

*In Development

36

Integrated tools for easy bring-up and

characterization

Rambus Memory PHY Solutions

Lead

Customers

• 3200Mbps

• x16 –

x72-bits

• 1-4 Ranks

• DFI 4.0

DDR4/328nm & 14nm

• 2000Mbps

• 1024-bit

• 2.5D design

architecture

HBM214nm & 7nm*

• Expected

4000Mbps

• Complex

design

architectures

IN

DEVELOPMENT

HBM37nm

• Expected

4800 –

6400Mbps

IN

DEVELOPMENT

DDR57nm


LabStation Platform On-chip Noise Monitor

Memory PHY Solutions for Networking and Data Center

*In Development

37

Cores

SerDes PHYsMove data between chips and memory

Memory PHYsMove data chip and memory

Chips



38

Server DIMM Chipset Ecosystem

DRAM/Module Mfrs

Support

Services

Chip Validation List

RDIMMs &

LRDIMMsServer DIMM

Chipset

DIMM

Validation

Chip/DIMM

Validation

Data Center

Enterprise

39

• Server DIMM chipsets continue to expand

the potential capacity and performance of

DRAM

• Rambus is also continuously exploring

alternatives to accelerate the delivery and

computation of data to close the latency

gap between SCM and storage.

Extend and Expand Current Technology’s Range

Processing

Memory

Storage

CPU

SSD

HDD

DRAM

NVDIMM

SCM

Memory Hierarchy

Size: 1x

Latency: 1x

Size: 10x

Latency: 100x

Size: 100x

Latency: 1,000x

Size: 10,000x

Latency: 10,000,000x

Size: 100x

Latency: 100,000x

40

Boost Memory Capacity at Peak Bandwidth

Server DIMM Chipsets enable

increased capacity at peak DRAM

performance

Registered DIMM (RDIMM) - RCD

Load Reduced DIMM (LRDIMM) – RCD + DB

Load Reduced NVDIMM (LRDIMM) – NVRCD

DRAM DRAM DRAM DRAM DRAM DRAM DRAM DRAM DRAM

NVRCD

NVDIMM

Controller

Persistent

Memory

Persistent 12V Power RailClock Command/

Address


RCD

Data

Clock Command/

Address

DBDBDBDBDBDBDBDBDB


RCD

Data

Clock Command/

Address

41

Smart tools for easy integration

and reduced time to market

Rambus Server DIMM Chipset Solutions

Lead

Customers

• JEDEC

compliant

• Speeds up

to 2133

• Multiple

OEM

qualification

s

AVAILABLE IN

PRODUCTION

DDR3DB & RCD

• JEDEC

compliant

• Speeds up

to 3200

• Multiple

OEM

qualification

s

AVAILABLE IN

PRODUCTION

DDR4DB & RCD

• JEDEC

compliant

• Speeds up

to 3200

• Ongoing

qualifications

AVAILABLE IN

PRODUCTION

DDR4NVRCD

• Consistent

with JEDEC

direction

IN

DEVELOPMENT

DDR5DB & RCD


LabStation Platform Buffer Bios Integration Tool

Server DIMM Chipsets: Delivering performance and

capacity

42

Introducing DDR5 Server DIMM Chips

Rambus Announces Industry’s First

Functional Silicon of Server DIMM Buffer

Chipset Targeted for Next-generation DDR5

Memory Technology

Provides data center architects early path to next-

generation memory speeds

SUNNYVALE, Calif. – Sept. 20, 2017 – Rambus Inc. (NASDAQ:

RMBS) today announced functional silicon of a double data rate

(DDR) server DIMM (dual inline memory module) buffer chip

prototype for the next generation DDR5 memory technology. This

represents a key milestone for Rambus and the industry’s first

silicon-proven memory buffer chip prototype capable of achieving

the speeds required for the upcoming DDR5 standard.

http://www.rambus.com/

43

Growing Opportunity in Data Center

$M

Source: IHS, Gartner, Semico Research, and Rambus estimates

0

200

400

600

800

1,000

1,200

1,400

2016 Rev 2016 SAM 2018 SAM 2021 SAM

Revenue Architecture Licensing and Cores Chips

Break

45

Mobile Edge

Dr. Martin ScottGeneral Manager,

Security Division

46










47

Security from Chip to Cloud to Crowd

Trust by Design Secure Assets

& Clusters

Device

Configurations &

Customer Demands

Applications &

Services

Customer Data &

Intelligence

Manufacturing In-field

Moving Data Faster & More Securely

Over 9

billion

chips/year

with DPA

license

CryptoManager

Cores and

Infrastructure

with Qualcomm

and others

Over 1.5

billion chips

configured

since 2016

Recently announced

CryptoManager IoT

Device Management

Service

100s of billions of

payment and

ticketing transactions

secured

Security

Management

48










49

CryptoManager Platform Ecosystem

Chip Maker

CryptoManager

Platform

Sell hosted service

Platform as a Service

(PaaS) Provider

Service

Provider

OEM

Connected

Devices

License cores + sell appliances

License software + sell appliances

CM Core

and Infra

CM SDK

and Infra

IoT Security

Service

50

Expanding the CryptoManager Platform Ecosystem

Rambus and Synopsys Collaborate to

Deliver Provisioning Services for

Hardware Secure Modules

Solution enables secure, remote lifecycle

management for automotive, IoT and mobile

applications

Rambus and Cybertrust Partner to Secure

Connected Devices

Cybertrust selects Rambus CryptoManager™

Infrastructure for secure device management and

software updates

Rambus to Demonstrate CryptoManager

IoT Device Management with

STMicroelectronics

Joint demonstration at IoT World showcases secure

IoT device connectivity, monitoring and provisioning

Rambus to Demonstrate IoT Security

Technology in Qualcomm Booth at CES

Demonstration showcases ability to minimize DDoS

attacks through secure connectivity, monitoring and

provisioning of IoT endpoints

51

IoT Security

52

• Key Management and

Disaster Recovery

• Device Decommission and

Re-assignment

• Device Attestation

Simple, Secure, IoT Device Management

• Application Level DDoS

Protection

• Anomaly Detection and

Quarantine

• End-to-end Secure

Connectivity

• Device Identification and

Mutual Authentication

• Access Control

Secure

Connectivity

Security Lifecycle

Management

Service High

Availability

53

Device

Security

Management

54










55

Merchant

Acquirers Retailers

Issuing

Banks

OEM

Pay

Card

Schemes

Mobile

Wallet

HCE & Tokenization

Software

UPP Software

& App

UPP Software

& App

License software and implementation services

License software and apps

License software and apps

Mobile Payments Ecosystem

56

Unified

Payment

Platform

57

Scan and Go with In-aisle Check Out

• Create account

with retailer

• Load CC info

• Chose an item, photo/

scan to add to virtual cart

• Place item in cart or

collect on check-out

• Receive in-store coupons and

recommendations based on

cart items or geo-beacons

• Order-ahead goods or

services

• Check out on mobile

device and skip the lines

• Automatically accrue

loyalty points

• Print or show mobile

receipt

• Collect items

• Go home happy

• Enable account-

based retail

• Create integrated

online-to-in store

experience

• Gather customer

purchasing data,

shopping trends

• Reduce CC transaction fess

with integrated retail CC

payments

• Reduce staff requirements

for check-out lines

• Free up more in-store sq.

footage for product

Consumer

Retailer

• Increase upsell and cross-

sell opportunities

• Better user experience

drives customer loyalty and

brand equity

New Account In-Aisle Purchase In-store Advertising Complete ShoppingMobile Check Out

Mobile

Ticketing

59

Smart Ticketing Ecosystem

Ticket Delivery

Service

Ticket Management

Software and Services

Mobile Ticket Wallet

Service + App

Operator

Local

Government

Ticket

Retail

License software + sell hosted service

Sell hosted service + license app

Sell hosted service

+

+

60

Going Ticketless with Frictionless Travel

• Create account

• Add CC info

• Go to train & get on – no

ticket required

• Receive updated

schedules automatically

• Receive location-based

coupons

• Pay In-app

• Get off train and go – fare

automatically debited

• Lowest fare automatically

selected

• Auto-updated with travel

times of frequently-traveled

routes

• Receive loyalty/frequent

rider discounts

• Enable account-

based ticketing

to capture

metadata for

every user

• Enable mobile GPS, tap

on/off or geo beacons

track fare

• Reduce/eliminate ticketing

machines and monetize

new rental space

• Optimize routes and

dispatch fleet based on

traveler traffic

Operator

• Increase revenue from

ancillary services

• Better user experience

drives customer loyalty and

frequency of travel

Use Coupon

Consumer

New Account Ticketless Travel In-transit Services Travel AssistanceEasy Payment

61

Getting Smarter with Data

• Create a centralized database of

customer trends and travel

patterns

• Improve cost-effectiveness and

operational efficiency with real-

world travel data analysis

• Enable operators to optimize

services, fee structures and

promotions using detailed travel

data

63

Protecting Digital Value with Tokens

Tokenization enhances confidentiality and privacy of data by replacing

important credentials with a dynamic value unique to each use

Use Cases:

• Mobile payments

• Ticketing

• E-commerce

• Medical records

• Connected device IDs

298471834109872309

027846592026509283692

92459657983420205872364

245002834098761982370

734271249590712340

64

Growing Opportunity in Mobile Edge

$M

Source: ABI Research, Gartner, IHS, The Linley Group, MarketsMarch, Markets and

Markets, Office of Rail and Road, Strategy Analytics, and Rambus estimates

0

500

1,000

1,500

2,000

2,500

3,000

2016 Rev 2016 SAM 2018 SAM 2021 SAM

RSD Revenue

Smart Ticketing

Mobile Payment

Architecture Licensing and Cores

Provisioning IoT

65

Financial Outlook

Rahul Mathur

Chief Financial Officer

66

• High margin, predictable licensing and cores businesses

• Delivered on expectations while improving business fundamentals

• Compelling growth drivers in Data Center and Mobile Edge markets

• Continued and increased collaboration with the industries we serve

• Advancing leadership position in relevant IP and products,

leveraging our core competencies

Key Themes from Today

67

3Q17 Guidance Update

3Q17 GuidanceJuly 2017 Today

Revenue $96 – $102M $97 – $101M

Pro forma operating costs

and expenses (1) $71 – $67M $71 – $67M

Pro forma operating

income (1) $25 – $35M $26 – $34M

EPS (1) $0.14 – $0.20 $0.15 – $0.19

• Revenue guidance indicates performance

across legacy and acquired businesses

• Continued investment in R&D – larger

revenue base provides scale, efficiencies

• Maintain expense controls with focus on

profit and cash generation

• 4Q17 tracking in line with previous

expectations

(1) Assumes a non-GAAP adjustment to interest income and other income

and expense of $1M, tax rate of 35% and share count of 113M. Excludes

stock-based compensation expense ($7.5M), amortization expense ($11M),

and non-cash interest expense on convertible notes ($1.7M). Please refer to

reconciliations of non-GAAP financial measures included below, in our

earnings release and on our investor website.

68

Growing Revenue BaseLarge portion of our revenue is fixed & predictable

• Q2’17 revenue up 24% Y/Y

• Q2’17 down 3% from Q1’17,

better than typical seasonality of

down 5%

• Q1’17 flat from Q4’16, better

than typical seasonality of down

2%

• Q3’17 Guidance reflective of

growth initiatives

Revenue ($M); Q4’16 includes revenue contribution from acquisitions that closed midway through Q3’16

54.563.1

68.7 70.6 67.4

16.4

22.523.2 23.2

23.45.6

4.2

5.7 3.64.0

76.5

89.9

97.6 97.494.7

97 - 101

0

20

40

60

80

100

Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17G

MID RSD RLD

Certain amounts may be off $0.1M due to rounding. Q3’17G represents guidance presented today.

69

Revenue Growth and Cost Management

¹Please refer to reconciliations of non-GAAP financial measures included in this presentation and in our earnings release

Non-GAAP Income

Statement ($M) Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017G

Revenue $76.5 $89.9 $97.6 $97.4 $94.7 $97 – $101M

Growth from product

revenue, royalties,

incremental license

agreements and

acquisitions

Total Operating Expenses1 $50.5 $60.8 $67.5 $66.8 $69.3 $71 – $67MActively manage

expenses through

effective cost

management

Operating Income

consistently in line with

expectations

Operating Income1 $26.0 $29.0 $30.1 $30.6 $25.4 $26 – $34M

Operating Margin1 34% 32% 31% 31% 27% 27% – 34%

Diluted Earnings Per

Share1 $0.15 $0.16 $0.16 $0.17 $0.14 $0.15 – $0.19

Certain amounts may be off $0.1M due to rounding . Q3 2017G represents guidance presented today.

70

• Continued performance on base licensing and cores business

• Growth initiatives provide leverage to operating model

• Incremental revenue at operating margins higher than long term model

• Model supports improved cash flow generation

Long Term Model Unchanged

LT Operating Model

Revenue 12-15% Growth

Pro Forma Operating Margin 37-40%

Pro Forma EBITDA Margin 40-43%

30%

32%

34%

36%

38%

40%

.5B 1B

Pro

fo

rma

Op

era

ting

Ma

rgin

Revenue

71

Strong Balance Sheet for Growth

¹Please refer to reconciliations of non-GAAP financial measures included in this presentation and in our earnings release

In Millions Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017

Total Cash &

Marketable Securities$259.3 $150.8 $172.2 $187.6 $167.9

$122M used for

acquisitions in Q3’16;

$50M used for accelerated

share repurchase in Q2’17

Total Assets $765.8 $800.3 $783.5 $826.2 $806.0Strong balance sheet with

limited debt

Shareholder Equity $542.4 $552.8 $552.8 $601.6 $570.2

Adjusted EBITDA¹ $29.0 $32.5 $33.6 $34.0 $28.7Solid cash generation

continues

72

• Utilized Cash Wisely –

Strategic Acquisitions &

Buyback

• Licensing base provides

stable, predictable cash

flows

• Low CapEx model

Strong Cash Flow from Operations

-17

51

76 76

93 100

-40

-20

0

20

40

60

80

100

120

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

Cash from Operations ($M)

FY2017 represents Analyst estimates.

73

Tech Licensing

• CEVA

• Dolby Laboratories

• Imagination

• Intermolecular

• Nuance Communications

• Cadence

• Synopsys

Company Comparables

Semi Products

• Broadcom Limited

• GSI Technology

• Inphi

• Integrated Device

Technology

• Lattice Semiconductor

• MACOM

• Marvell Technology Group

• Maxim Integrated Products

• MaxLinear

• Microchip Technology

• Microsemi

• Monolithic Power Systems

• NVIDIA

• NXP

• Power Integrations

• QUALCOMM

• Semtech

• Silicon Laboratories

• Silicon Motion

• Texas Instruments

Patent Licensing

• InterDigital

• Universal Display

• Xperi

Systems Software

• Callidus Software

• eGain

• Bottomline Technologies

• Five9

• Jive Software

• Kinaxis

• LivePerson

• Marin Software

• Mitek Systems

• Model N

• PROS Holdings

74

Rambus Valuation not Aligned with Cash Generation

2016 Enterprise Value/Operating Cash Flow Multiples

10 15 20 25 30 35 40 45 50

Patent Licensing

Tech Licensing

Semi Products

Systems Software

Source: FactSet. 2016 Operating Cash Flow and ending 2016 Enterprise Value.

Mean High

16.7

24.6 40.4

17.1 23.1

29.224.2

17.6 23.5

75

Investment Summary

Compelling growth drivers in Data Center and Mobile Edge markets

Large portion of our revenue is fixed, and committed long-term with high, predictable margins

Strong balance sheet to support strategic initiatives in exciting markets

Accelerating our growth through strategic acquisitions & execution on key programs

Growth initiatives provide leverage to operating model and improved cash flow

76

Closing Comments

77

• Rambus moves data fast and keeps it safe

• We serve two high growth markets Data Center

Mobile Edge

• Our IP portfolio is strong and relevant Monetized directly; continued licensing

Differentiates our products

• We’ve transitioned to a ”Product

Company” Infrastructure and go-to-market

Established channels and ecosystem

• We expect revenue growth through 2018

and beyond

In Summary…

79

Reconciliation of non-GAAP Financial Measures

Certain amounts may be off $1M due to rounding.

Net Income 2013 2014 2015 2016

GAAP Net Income (Loss) (34) 26 211 7

Adjustments:

Stock-based compensation 15 15 15 21

Acquisition-related transaction costs & retention bonus 10 2 - 3

Amortization 29 27 25 37

Restructuring 6 - 4 -

Other one-time events 10 - - 14

Non-cash interest expense 19 15 6 7

Provision for (benefit from) income taxes (6) (15) (191) (21)

Pro Forma Net Income 50 70 71 68

EBITDA 2013 2014 2015 2016

GAAP Operating Income 22 75 71 34

Adjustments:

Stock-based compensation 15 15 15 21

Acquisition-related transaction costs & retention bonus 10 2 - 3

Amortization 29 27 25 37

Restructuring 6 - 4 -

Other one-time events 10 - - 14

Pro Forma Operating Income 92 119 115 109

Depreciation 15 14 12 13

Pro Forma EBITDA 107 133 127 122

80Certain amounts may be off $1M due to rounding.

Reconciliation of Non-GAAP Financial MeasuresNet Income Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017

GAAP Net Income (Loss) 4 4 (3) 3 3

Adjustments:

Stock-based compensation 5 5 6 7 7

Acquisition-related transaction costs & retention bonus 1 1 0 0 0

Purchase accounting adjustment for inventory fair value step-up 1 1

Amortization 8 10 11 10 10

Impairment of long-lived assets 18

Adjustment to contingent consideration (7)

Non-cash interest expense 2 2 2 2 2

Provision for (benefit from) income taxes (3) (5) (9) (3) (6)

Non-GAAP Net Income 17 18 19 19 16

Operating Income Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017

GAAP Operating Income 12 12 1 13 8

Adjustments:

Stock-based compensation 5 5 6 7 7

Acquisition-related transaction costs & retention bonus 1 1 0 0 0

Purchase accounting adjustment for inventory fair value step-up 1 1

Amortization 8 10 11 11 10

Impairment of long-lived assets 18

Adjustment to contingent consideration (7)

Non-GAAP Operating Income 26 29 30 31 25

Depreciation 3 3 4 3 3

Adjusted EBITDA 29 32 34 34 29

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