Dialog at a glance and our markets 800 600 400 200 0 08 09 10 11 12 Total revenue  (US$m) +47%* 70 60 50 40 30 20 10 0 08 09 10 11 12 Net profit  (US$m) +9%* 100 80 60 40 20 0 08 09 10 11 12 Operating profit  (US$m) +48%* 1.00 0.75 0.50 0.25 0 08 09 10 11 12 Basic EPS  (US$) +6%* * Year-on-year growth 2011-12 2012 financial highlights – a record year Our markets Mobile:  Automotive and industrial:  Connectivity:  2012 operational highlights ■ Single chip transceivers for DECT-based wireless microphones,  headsets and gaming consoles  ■ SmartPulse™ short-range wireless ICs, based on the Ultra Low  Energy DECT standard, for smart home applications ■ Energy-efficient multicore Voice-over IP (VoIP) processors, audio codecs  and amplifiers, interfacing with Bluetooth, Wi-Fi and DECT, to enable  headset and handset connectivity ■ Sustained high demand for our power management technologies  from leading smartphone and tablet customers ■ Momentum in our connectivity portfolio with the selection of our  short-range wireless audio ICs, VoIP and DECT solutions by leading  microphone, gaming and professional headset and cordless phone  customers, including VTech and Jabra ■ Continued success in broadening our Processor Partner Programme  with companies including Intel, NVIDIA and Freescale. This includes  the selection of our Power Management ICs (PMICs) by Freescale  for a reference board using its i.MX series of multicore application  processors to enable the rapid development of tablets, infotainment  systems, media hubs and other smart devices ■ Continuous innovation in our standard and custom product portfolios: – Our latest PMIC, featuring an innovative multiphase buck converter  architecture to support the high currents increasingly required in  multicore application processors for smartphones and tablets was  sampled to key customers – Dialog continued partnering with TSMC on state-of-the-art 0.13  micron bipolar-CMOS-DMOS (BCD) technology to integrate higher  voltage components into a smaller form factor, single-chip power  management IC to support next generation smartphones  and tablets – We licensed the ARM® Cortex™ M0 32-bit multicore processor for  use in our next generation PMICs, targeting multicore smartphones,  tablets and other embedded devices. The first of these PMICs was  sampled in 2012 ■ US$774 million revenue in 2012, up 47% over 2011 ■ Full year gross margin of 37.8% ■ Full-year 2012 net profit of US$62.5 million or 8.1% of sales,  completing five years of successive profitable growth ■ Closing year cash balance of US$312 million ■ Basic and diluted 2012 IFRS earnings per share (EPS) of 0.97 cents and 0.93 cents respectively ■ Power management ICs and audio CODECs for smartphones,  tablets and Ultrabooks™ ■ Custom motor control ICs for windscreen wipers and companion  processor integrated power management and clock ICs for automotive  infotainment systems ■ Electronic ballasts for fluorescent or high-intensity industrial lighting  and energy-efficient retrofit bulb LED lighting solutions Dialog Semiconductor Plc | Annual report and accounts 2012 |  Section 1 | Overview 02