LSI has transformed strategically to focus on storage and networking technologies for datacenters, mobile networks, and client computing. It is benefiting from growth in flash storage and mobile networks. LSI provides silicon and software solutions across server and storage connectivity, networking, hard disk drives, and flash storage. It aims to bridge the growing gap between increasing data and network traffic growth and limited IT spending increases.

1. LSI Corporate Overview
May 2012

2. The New LSI
 LSI has completed a vast strategic transformation in almost every dimension
 Centered within persistent secular trends: Data & Traffic Growth
 Focused on bringing acceleration and intelligence to storage and networking
for datacenters, mobile networks and client computing
 LSI’s Flash and Mobile Network opportunities add to exciting growth
 Strong financial performance, zero debt and focused on driving outstanding
growth and expansion of operating performance
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3. Executive Leadership Team
President & CEO
Abhi Talwalkar
Chief Operating
Officer
Jeff Richardson
CFO & Chief Human
General Resources &
Counsel & Administrative
Corp. Marketing
Secretary Officer Gautam
Jean Rankin Bryon Look Srivastava
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4. Key Takeaways from Q1’12 Earnings Call
Financials
Financials
 Revenues: $622M from continuing operations
Q1 2012 Product Revenue
 Non-GAAP Gross Margins: 52.4%
 Non-GAAP Operating Expenses: $224M IP
 Non-GAAP EPS from continuing operations: $0.20 5%
 Cash & Short-term Investments: $623M Networking
17%
 No Debt
Business Highlights Server & Storage
78%
 Networking: Secured Axxia multi-core processor
wins at two top base station OEMs and in a
Datacenter Switch application
 Flash: FSP wins in Intel 520 & 330 series of SSDs
 Flash: PCIe Flash Adapter wins with Oracle & IBM
 SAS: Awarded the industry’s first 12Gb SAS RoC
design wins with 2 top tier server OEMs
 HDD: Set a new record in Q1 for SoCs shipped to
our largest customer
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5. Focused on Storage and Networking
Businesses End Markets Product Lines 2011 Revenue
$2.044B
HDD: SoC & Preamps
37%
HDD/Flash $751M
Flash Storage Processors
Storage
Semi RAID Adapters
Server & Server
36%
Storage SAS
External Storage $736M
Connectivity
SAN Fabric
Invest- Standard Products
ment
Networking areas Custom Products 22%
Networking
Semi PC Connectivity $454M
Networking Legacy
5%
IP IP IP Licensing
$103M
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6. LSI Benefiting from Numerous Inflections
Social The new consumer portal (shopping, email, entertainment)
Platforms Enterprise increasingly adapting for e-collaboration
Smart Clients & Rise of smart phones, tablets and other intelligent clients
Mobile Internet Connectivity explosion reshaping the network
Rapid proliferation across consumer and enterprise platforms
Video
Massive increase in storage capacity and network bandwidth
Collection & real time analysis of massive amounts of data
Big Data
Datacenter architecture evolving to support Big Data analytics
Rapid evolution of DCs for TCO, agility & growing demand
Cloud
Clouds of all shapes, sizes, and business models
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7. The Result: The “Data Deluge” Gap
2011-2015
Network Traffic CAGR ~ 32%
Storage Capacity Needs CAGR ~50%
Source: Cisco VNI 2011, IDC 2011
“Bridging the Gap”
Growth
Technology Scaling e.g., Moore’s law
“Acceleration Through Intelligence”
But…IT Spending CAGR ~ 5%
Telecom Equipment Spending CAGR ~ 7%
Source: Gartner Dec 2011
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Time

8. LSI’s Competitive Foundation
Silicon and Broad multi-segment offerings
Software Solutions Complete and hardened FW and SW solutions
How We Sustain Our Leadership
Time-to-Market Accelerating product cadence
Advantage Leading on critical industry transitions
Broad IP Comprehensive storage and networking IP
Portfolio Accelerating process technology
Silicon Continuing to drive greater integration
Integration Unique and flexible engagement model
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9. Our Software and Firmware Advantage
Advanced Software Options Advanced Software Options
Predictor Profiling SW
Multiple generations of
hardened and trusted firmware and
Multi-Server Protection FastPath software stacks
High Availability CacheCade Pro
Networking Layer
Data Protection Layer Direct Drive Firmware SSD Firmware Networking Stacks
Enterprise Grade OEM Specific
MegaRAID Stack Acceleration APIs
Drivers Firmware
Fusion MPT Firmware Fusion MPT Firmware DuraClass Enterprise Run Time & OS
OS Drivers OS Drivers & Client Firmware Drivers
SAS PCIe Flash Adapters SandForce Flash Axxia Platform
MegaRAID Application Acceleration Storage Processors
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10. Broad Product Offerings: Silicon and Software Solutions
Server & Storage
Networking HDD Flash
Connectivity
Axxia™Standard
Product Family
SAS HBAs
Custom Silicon PCIe® Flash
MegaRAID HBAs Adapters
Software Software Software
2015 SAM = $4.6B 2015 SAM = $2.4B 2015 SAM = $4B 2015 SAM = $2.8B
’11-’15 SAM CAGR = 12% ’11-’15 SAM CAGR = 8% ’11-’15 SAM CAGR = 10% ’11-’15 SAM CAGR = 31%
Source: LSI estimates
LSI 2015 SAM = $13.8B, ’11-’15 CAGR = 13%
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11. Networking Product Categories
Network Aggregation & Service
Access Control Gateways
Axxia™ Processor Family Custom Silicon Solutions
Mobile
Networks
Control and Data Plane Baseband
Enterprise/
Datacenter Media Processing Switching and Routing
Security and Content Ethernet Connectivity
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12. Flash
Growing Gap between System Requirements and Flash
Filled by Flash Storage Processors
 Increasing Writes
 Higher Reliability
 More Performance
System
Requirements
Increasing Dependence on
Flash Storage Processors
 All flash is different and changes
every 18 months!
– Per bit cost dropping 30% YoY
– Endurance, Reliability,
Performance, Interface
Program / Erase Cycles
100K
Error Correction
Requirements (per KB)
60-bit
Flash 10K
40-bit
 Fewer Writes
24-bit
 Lower Reliability
3K
Cell Geometries Previous Current Next 12-bit
Generation Generation Generation
 30% Cost Reduction Y-Y
5x nm 3x nm 2x nm 3-bit per
MLC MLC MLC cell
Time
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13. Why LSI in Flash Storage Processors
Industry Recognized
Leader in Flash  Only vendor supporting flash from ALL 6 flash suppliers
Storage Processors  Only vendor supplying custom FSPs to multiple flash suppliers
Client
 Best-in-class performance and reliability
Enterprise
Complete
Product Portfolio Reference Manufacturing
Designs Tools and Kits
FW FW
Client Enterprise
 Standard through full-custom engagement models
Flexible
Engagement Model  Ability to customize to specific flash technology (per generation)
 Only company that provides complete solution including firmware
Strong Technology
 Leading Intellectual Property (i.e. Interfaces, Processors, etc)
base in Custom &
Storage Silicon  Strong leadership in Industry Standards
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14. Flash
Why LSI in Enterprise PCIe Flash Adapters
Uniquely Positioned  Fully offloaded architecture does not tax server CPU
in PCIe Flash  Low-host memory footprint
Solutions  Based on industry-leading SandForce Flash Storage Processor
Complete PCIe
PCIe
Flash Solution Flash MegaRAID +
Caching
Portfolio Adapters CacheCade
Software
Proven Enterprise  Key supplier to all major OEMs for servers and storage
Experience  Generations of successful validation in server ecosystem
 9 of the top 10 server OEMs run on LSI’s MegaRAID software
Technologies and
 Nytro portfolio offers full range of flash capacity with seamless
Capabilities for
caching & acceleration software  Unique in the industry
Sustained
Advantage  Full portfolio for storage ecosystem (HDD, SSD, RAID, Flash)
 Industry-leading LDPC error correction - key for future Flash
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15. Flash
Well-Positioned to Lead in Flash
Complete Portfolio
Flash Storage
 Industry-Leading Technology Processors (FSPs)
Manufacturing
FW
Tools and Kits
 Complete Portfolio of Products SSD Evaluation
Units
• Ultrabook/Notebook Flash Storage Processors
• Enterprise Flash Storage Processors Flash Solutions Caching Reference
Software Designs
• Enterprise Flash Solutions
 Flexible Engagement Model Flexible Engagement Model
• Standard Product Flash Storage Processors
for quick TTM
Flexible
• Custom Flash Storage Processors for Engagement
Firmware
highly-tailored solutions Model
 Large and Growing Customer Base
• Flash Suppliers
All Customer Segments / All Product Segments
• Server and System OEMs
• Datacenter/Cloud
• Ultrabook Notebook Manufacturers
 Fast Growing Market
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16. LSI is a Solid Business with New Growth Drivers
Core Business
 HDD: Leading the technology migration curve in HDD SoCs; #2 supplier
Strength
 SAS: Broadest portfolio of SAS silicon & RAID software in the industry; #1 supplier
 Networking: Investment areas growing at a 28% CAGR over the past 5 years
 Flexible business model: Able to provide standard or integrated custom products
New Product
 SandForce Flash Storage Processors in Computing and Enterprise
Cycles
 PCIe at Server and Web2.0 customers
 Axxia Multi-core processors in Base Stations & Enterprise applications
 Custom products in Wireless & Enterprise
Share Gain
 HDD SoC shipments to new customers and Preamp expansion
Opportunities
 Enterprise HDD SoC volume at existing customers
 Romley and 12Gb SAS inflection points for Server silicon & software
 Growth in the Channel for Server solutions
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