mellanox corporate deck

© 2018 Mellanox Technologies

Enabling The Use of DataFebruary 2018

Corporate Update

© 2018 Mellanox Technologies 2

Safe Harbor StatementThese slides and the accompanying oral presentation contain forward-looking statementsand information. The use of words such as “may”, “might”, “will”, “should”, “expect”,“plan”, “anticipate”, “believe”, “estimate”, “project”, “intend”, “future”, “potential” or“continued”, and other similar expressions are intended to identify forward-lookingstatements. All of these forward-looking statements are based on estimates andassumptions by our management that, although we believe to be reasonable, areinherently uncertain. Forward-looking statements involve risks and uncertainties,including, but not limited to, economic, competitive, governmental and technologicalfactors outside of our control, that may cause our business, industry, strategy or actualresults to differ materially from the forward-looking statement. These risks anduncertainties may include those discussed under the heading “Risk Factors” in theCompany’s most recent 10K and 10Qs on file with the Securities and ExchangeCommission, and other factors which may not be known to us. Any forward-lookingstatement speaks only as of its date. We undertake no obligation to publicly update orrevise any forward-looking statement, whether as a result of new information, futureevents or otherwise, except as required by law.


We Live in a World of DataMore DevicesMore ApplicationsMore Data


Cloud andWeb 2.0

Big Data

Enterprise

Business Intelligence

HPC

Storage

Security

Machine Learning

Internet of Things

Exponential Data Growth Everywhere

source: IDC


Data is Growing Faster Than EverAutonomous vehicle generates 4000GByte per day

SONAR~10-100KB Per/Sec

CAMERA~20-40MB Per/sec

GPS~50KB Per/Sec

Data will grow by a factor of 10 over the next decade to 160 Zeta Bytes in 2025 (source: IDC)Faster Data processing requires faster Interconnect speeds

RADAR~10-100KB Per/Sec

Light Detection & Ranging~10-70MB Per/Sec


Finance, Fraud & Insurance Fraud Detection Credit/Risk Analysis High Frequency Trading

Automotive & Transportation Self Driving Image / Facial Recognition Logistics & Mapping

Medicine & Genomics Drug Discovery Diagnostic Assistance Cancer Cell Detection

Oil & Gas Seismic Imaging Reservoir Characterization Subsurface Fault Detection

Cloud, Web, Mobile, Retail Image Tagging Speech Recognition Sentiment Analysis

Security & Safety Surveillance Image Analysis Facial Recognition and Detection

Artificial Intelligence: Sparking The Next Industrial Revolution


Data Drives a Better Future: Smart Cities

SMARTHealthcare

SMARTBuildings

SMARTTransportation

SMARTCommunications

SMARTTraffic

SMARTEducation

SMARTSensors

SMARTParking

SMARTEnergy

SMARTInfrastructure


Higher Data SpeedsFaster Data ProcessingBetter Data Security


source: IDC


Higher Data SpeedsFaster Data ProcessingBetter Data Security

Adapters SwitchesCables &

Transceivers

SmartNIC System on a Chip



Data Growth is Mellanox Growth

11© 2018 Mellanox Technologies

Mellanox Leads Across IndustriesDelivering Highest Data Center Return on Investment

10 of Top 10 Automotive Manufacturers

3 of Top 5 Pharmaceutical Companies

9 of the Top 10 Oil and Gas Companies

5 of Top 6 Global Banks

9 of Top 10 Hyperscale Companies


Enabling Most Efficient Machine Learning PlatformsAllowing AI to Perform Critical & Real Time Decisions

Real Time Fraud Detection

18X Speedup For Image Recognition

4X Speedup For Image Recognition

Data Analytics Image Recognition

OCP Big Sur Artificial Intelligence Platform

Machine Learning System with 400Gb/s

World Record For Data Sort, 3X Faster

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=kqGHk2rZStg0MM&tbnid=3uvyYV6a0huhCM:&ved=0CAgQjRwwAA&url=http://armsaroundthechild.org/ways-to-give/ways-to-give-usa/paypal/&ei=qn1VUZHFBcusrAelxoHIBw&psig=AFQjCNElUWNfaMlajpQ6OMT7WuBwrAmcoQ&ust=1364643626243740

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=kqGHk2rZStg0MM&tbnid=3uvyYV6a0huhCM:&ved=0CAgQjRwwAA&url=http://armsaroundthechild.org/ways-to-give/ways-to-give-usa/paypal/&ei=qn1VUZHFBcusrAelxoHIBw&psig=AFQjCNElUWNfaMlajpQ6OMT7WuBwrAmcoQ&ust=1364643626243740


Yosemite Platform with Multi-Host Technology Lowers Total Cost of Ownership

Higher Performance While Reducing System Footprint by 50%

Concurrent Streams From a Single Server For the Highest Quality Viewing Experience

Business Success Depends on MellanoxDeliver the Highest Data Center Return on Investment

Reduction in Database Recovery Time97%

ReductionOf Latency

Military Systems

Tier-1 Fortune100 Web 2.0 Company

Tier-1 Trading Institution 10X

4X

100K


InfiniBand Connects 60% of the TOP500 HPC PlatformsAnd 77% of new TOP500 HPC systems (June’17-Nov’17)

Mellanox Connects All of 25G, 40G and 100G Ethernet Systems On the TOP500 List

Mellanox enable highest ROI for Machine Learning, High-Performance, Cloud, Storage, Big Data and more applications

InfiniBand to Connect Future #1 HPC Systems (Coral)

The Smart Choice for HPC Platforms

InfiniBand Leadership

EthernetLeadership

Accelerates the #1 Supercomputer & Connects 39% of Overall TOP500 Systems (192 Systems)

Deliver the Highest Data Center Return on Investment


Leadership in Storage PlatformsDelivering the Highest Data Center Return on Investment

SMB Direct

http://www.b4bschwaben.de/nachrichten/augsburg_artikel,-Fujitsu-praesentiert-sich-auf-der-CeBIT-2011-_arid,60375.html

http://www.b4bschwaben.de/nachrichten/augsburg_artikel,-Fujitsu-praesentiert-sich-auf-der-CeBIT-2011-_arid,60375.html

http://blog.executivebiz.com/2013/02/teradata-discovery-platforms-applications-to-help-define-big-data-in-2013/

http://blog.executivebiz.com/2013/02/teradata-discovery-platforms-applications-to-help-define-big-data-in-2013/


Software-Defined Network Intelligence

Mellanox Enables Data Centers of the Future - Today

Security Data Insights Real-Time

Highest-Performance 100Gb/s, 200Gb/s and 400Gb/s Interconnect Solutions

Performance Efficiency Scalability


Comprehensive End-to-End PortfolioInfiniBand and Ethernet

Metro / WAN

Cables/Modules

Adapter Cards

ICs

Software

NPU & Multicore

Switches/Gateways


Leading Supplierof End-to-End Interconnect Solutions

StorageFront /

Back-EndServer /

Compute

Switch /Gateway

56/100/200G InfiniBand

10/25/40/50/100/200/400GbE

Virtual Protocol Interconnect

56/100/200G InfiniBand

10/25/40/50/100/200/400GbE

Virtual Protocol Interconnect


Highest Performance 100, 200 and 400Gb/s Interconnect Solutions

TransceiversActive Optical and Copper Cables (10 / 25 / 40 / 50 / 56 / 100 / 200Gb/s)

40 HDR (200Gb/s) Ports 80 HDR100 (100Gb/s) Ports 16Tb/s Throughput, 15.6 Billion msg/sec

Interconnect

Switch

Adapters200Gb/s, 0.6us Latency 200 Million Messages per Second(10 / 25 / 40 / 50 / 56 / 100 / 200Gb/s)

Switch16 400GbE Ports, 32 200GbE Ports64 100GbE Ports, 128 25/50GbE PortsThroughput of 6.4Tb/s


Enabling the Future of Machine Learning

HPC and Machine Learning Share Same Interconnect Needs

Storage

High PerformanceComputing

Financial

EmbeddedAppliances

Database

Hyperscale

Machine Learning

IoT

Healthcare

Manufacturing

Retail

Self-Driving Vehicles


Significant Growth of Ethernet Market at 25Gb/s and Above25G and above growing to 64% of the market @45% 5Y CAGR

Crehan Research: Long Range Forecast – Server-class Adapters & LOM (Jul 2017)

17%Of TotalMarket

10G 83%13%

1%1%

2%

High Speed Adapters

2016 ($1.2B)

10G

25G14%40G

2%

50G15%

100G27%

200G6%

36%High Speed Ethernet

Adapter Forecast2021 TAM ($2.0B)

10GbE 25GbE 40GbE 50GbE 100GbE

64%17% →200GbE

40G


Spectrum Delivers Highest Data Center ROI

Flexibility

Scalability

Programmability

TCO

Performance

10, 25, 40, 50, 100, 200 and 400 Gigabit Speeds, variety of port configurations

10X better scalability, optimized data center utilization and end-user experienceProgrammable flexible parser and packet modifier, support user defined protocols 1.3X lower power consumption versus competition1.4X lower latency versus competition, enable real-time data analysis and insights

Open Ethernet


SecurityData Center Infrastructure Protection

NFV Performance and Flexibility at Lower Cost

Storage Enabling the Path to NVMe-over-Fabric Storage Platforms

Machine Learning The Most Efficient Machine Learning Systems

Bluefield - Combining Mellanox’sBest-in-Class ConnectX Technology with ARM v8 Multicore Processors

BlueField Enables Growing Market Segments


End-to-End Solutions for All Platforms

Highest Performance and Scalability for Intel, AMD, IBM Power,NVIDIA, Qualcomm, ARM and FPGA-based Compute and StoragePlatforms at 10, 20, 25, 40, 50, 100, 200 and 400Gb/s Speeds

Unleashing the Power of all Compute Architectures

X86 OpenPOWER GPU ARM FPGA


Company Headquarters

Mellanox Overview

Ticker: MLNX

Yokneam, IsraelSunnyvale, CaliforniaWorldwide Offices

~2,950 Employees worldwide


2017 Revenue of $863.9M

2017 non-GAAP GM of 70.4%

2017 non-GAAP EBIT Margin of 13.7%

2017 non-GAAP EPS of $2.28

Cash & Investments of $273.8M as of 4Q’17

Solid financial position

Mellanox Overview

A reconciliation of GAAP to non-GAAP condensed consolidated statements of operations is presented in the financial statements of our most recent earnings release located on the "Investor Relations" page on our website


Leader in End-to-End InfiniBand and Ethernet Technologies

Introducing New Products to Accelerate Future Growth (Switch Systems/Silicon, Acq. EZchip Technology)

Well Positioned to Benefit from Market Transition from 10Gb to 25/50/100Gb

Technology and Product Leadership

Mellanox Overview


Annual Revenue ($M)

2013

$390.4

2014

463.6

658.1

2015 2016

857.5 4-Year (2013-2017) CAGR 22%

Approaching $1 Billion in Annual Revenues

Source: Company financial statements

2017

863.9


Strong Outlook for First Quarter and Full Year 2018FIRST QUARTER 2018 OUTLOOK:• Revenues of $240-$250 million• Non-GAAP gross margin range of 68.5-69.5 percent• Non-GAAP operating expenses of $120-$122 million • In the first quarter of 2018 we expect to recognize remaining restructuring

charges related to discontinuation of 1550nm silicon photonics activities in amount of $9 million to $12 million

FULL YEAR 2018 OUTLOOK:• Revenues of $970-$990 million• Non-GAAP gross margins of 68.0-69.0 percent• Non-GAAP operating margin of 18.0-19.0 percent• Non-GAAP operating margin > than 20.0 percent exiting 2018


Investment Highlights Summary

Interconnect technology is critical for business performanceIncreases application productivity and ROI

End markets have shown consistent growth Mellanox’s TAM forecasted to reach ~$15B by 2018

Mellanox uniquely positioned to continue market leadershipProviding compelling technology benefits to multiple, high growth markets

Well positioned as industry transitions to 25Gb+ technologyShipping 25/40/50/100Gb technology today (end-to-end solution)

Demonstrated revenue growth, strong cash flow and increasing profitability with attractive gross marginsSolid revenue growth (~22% CAGR) over the last 4 years

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