Project Aardvark

Presentation to the Board of Directors

January 29, 2010
 Table Of Contents
Executive Summary
3
Aardvark Valuation
5
Potential Acquisitions
11
Process Recommendations
16
Appendix
19
Executive Summary
 Executive Summary
• As of January 29, 2010, Aardvark’s share price and valuation are at all-time highs,
having more than doubled since early 2009
• As Aardvark’s stock price has soared in value, it has also generated over $35B in
cash & cash-equivalents
• As Aardvark’s cash balance grows, it is likely to face shareholder pressure to re-
invest the cash in its business and to make significant acquisitions
• Given Aardvark’s strong currency and cash balance, it could easily make several
“tuck-in” acquisitions – or larger-scale acquisitions to acquire customers
• Such a strategy would allow Aardvark to capture more of the smartphone, laptop,
and desktop markets, and significantly improve its software offerings
• Given Aardvark’s cash position, such acquisitions could be made with 100% cash –
or in the case of a larger deal, stock could also be used
Aardvark Valuation
 Valuation Summary
• Aardvark’s current share price of $192.61 far exceeds the value implied by
comparable public companies
• Recent comparable transactions show higher implied valuation ranges due to
flurry of consolidation and hardware M&A activity over 2009
• Discounted Cash Flow Analysis under base-case assumptions shows implied
valuation on-par with Aardvark’s current share price, implying that share price is
justified
• All valuation analysis is based on “base-case” financial projections in line with Wall
Street analyst expectations
• Given Aardvark’s cash balance and high valuation multiples vs. similar public
companies, few competitors are well-positioned to make substantial acquisitions
Aardvark Valuation
Summary
Aardvark Valuation
Summary
Aardvark Comparable Public
Companies
Aardvark Precedent
Transactions
Aardvark Discounted Cash Flow
Analysis
DCF Assumptions:

Discount Rate: 12.5%

Terminal EBITDA Multiple: 7.0 x

Model Uses “Base Case” Financial

Projections

Mid-Year Convention Used For PV

Of Cash Flows
Aardvark Discounted Cash Flow
Analysis
DCF Assumptions:

Discount Rate: 12.5%

Terminal EBITDA Multiple: 7.0 x

Model Uses “Base Case” Financial

Projections

Mid-Year Convention Used For PV

Of Cash Flows
Potential Acquisitions

13
 Potential Acquisitions
• Given Aardvark’s large cash balance, it could make a wide variety of
acquisitions – ranging from small “tuck-in” deals to acquire technology
and IP to larger deals driven by customer or market share acquisition
• Tier 1 Potential Acquisitions
– “Tier 1” acquisition candidates are worth over $1 billion and would
significantly boost Aardvark’s market share or result in substantial revenue or
cost synergies
– Leading candidates include ARM, for its chipset technology and integration
with Aardvark’s existing products, and Research in Motion – to capture
additional share in the corporate smartphone market
• Tier 2 Potential Acquisitions
– “Tier 2” acquisition candidates are worth less than $1 billion and would
enhance Aardvark’s core technology and fill in gaps in existing products
– Potential acquisitions include specialized chipset and semiconductor
companies as well as Web 2.0, social media, and mobile software companies

14
 Potential Acquisition
Candidates
Tier 1 Acquisition Candidates

Tier 2 Acquisition Candidates

15
 Company Profile: ARM
Management Team:

Warren East CEO

Tudor Brown President
Graham Budd COO
Mike Muller CTO
ARM Holdings Tim Score CFO
Headquarters: Cambridge, UK
John Cornish EVP, Systems
Employees: 1700 Ian Drew EVP, Marketing
Founded: 1990 ARM Holdings is a supplier of semiconductor Antonio Viana EVP, Sales
intellectual property and components of digital
electronic products. It designs and licenses intellectual
Financial Information: Key Partners:
property rather than manufacturing and selling
semiconductor chips, and it licenses its IP to a wide
Market Cap: $2.5B Electronic Arts, LSI Logic, Microsoft,
Cash: $204M network of hardware, mobile, and networking
National Semiconductor, Nokia,
2009 Revenue: $490M companies. It also provides tools to optimize system-
NVIDIA, Rambus, Real Networks,
2009 EPS: $7.85 on-chip designs.
2010E Revenue: $531M Samsung,Products:
and Toshiba.
2010E EPS: $10.97
•Processors – ARM provides 32-bit embedded
microprocessors based on a common architecture that
delivers high-performance, power efficiency, and
reduced system cost.
•System IP – Serves as the connection between
processors, memory, and peripherals to ensure
optimum performance.
•Multimedia – ARM provides graphics processors that
enable embedded graphics, audio, and video
applications.
•Physical IP – Provides SoC integrated circuits and logic,
embedded memory, and interface IP.
•Tools – ARM subsidiaries provide compilers, 16
debuggers, simulators, and other optimization tools for
 Company Profile: Research In Motion
Management Team:
Research In Motion designs the BlackBerry smartphone
and creates solutions for the worldwide mobile Jim Balsillie Co-CEO
Research In Motion communications market, including a variety of software Mike Lazaridis Co-CEO
for the BlackBerry device. In addition to its line of Don Morrison COO
Headquarters: Waterloo, ON Robin Bienfait CIO
BlackBerry devices, the company also provides
Employees: 12,000 Brian Bidulka CFO
Founded: 1984 enterprise server software to support businesses using
the device. David Yach CTO

Financial Information:
Products:
Market Cap: $36B Key Partners:
Cash: $2.5B •BlackBerry Pearl 3G – Provides Trackpad and dedicated
2009 Revenue: $13B media keys as well as SureType technology and 3G
2009 EPS: $3.70
AT&T, Brightstar, Digital China, GPXS,
network support. Hewlett-Packard, IBM, Skype, Sprint,
2010E Revenue: $17B
2010E EPS: $5.03 •BlackBerry Bold – Provides extended battery life as Tata Indicom, T-Mobile, Verizon,
well as GPS, Wi-Fi, and 3G network support. Virgin, and Vodafone,
•BlackBerry Curve 8500 – Includes Trackpad and
dedicated media keys, easy media sharing, and 2.0 MP
camera.
•BlackBerry Tour 9630 – Provides GPS, worldwide
compatibility, and 3.2 MP camera.
•BlackBerry Storm – Features Wi-Fi, SurePress
technology, and 3G network support.
•BlackBerry Curve 8900 – Features thin, lightweight
design as well as GPS and Wi-Fi support and 3.2 MP
camera.

17
Process Recommendations

18
 Key Recommendations
• We recommend engaging in targeted discussions with the Tier 1 acquisition
candidates and assessing their receptiveness to M&A discussions
• At the same time, Goldman Stanley will reach out to Tier 2 candidates and
introduce Aardvark as a potential acquirer
• M&A process with Tier 1 candidates will take significantly longer due to the scale
of the companies, so we recommend conducting both processes simultaneously
• Depending on responses from Tier 1 and Tier 2 candidates, Goldman Stanley and
Aardvark may do additional research to determine other potential acquisitions and
then approach them

19
Process Recommendation

Broad
Marketing
Appendix

21
Aardvark Projected Income Statement

22
Aardvark Comparable Public
Companies

23
Aardvark DCF Analysis – WACC
Calculation

24