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					ab                                                                                                                                                Global Equity Research
                                                                                                                                                   Americas
                                                                                                                                                   Semiconductors
 UBS Investment Research
                                                                                                                                                   12-month rating                                                                          Neutral
 Marvell Technology Group Ltd.                                                                                                                                                                                                      Unchanged
                                                                                                                                                   12m price target                                                                          US$12.00
                                                                                                                                                                                                                                            Unchanged
 Storage & Mobile Hit by Macro Turbulence                                                                                                          Price                                                                                         US$12.28

     Lower than expected results due to computing and wireless weakness                                                                            RIC: MRVL.O BBG: MRVL US

 Marvell reported lower than expected F2Q sales as macro weakness impacted                                                                                                                                                   16 August 2012
 demand for Hard Drives and low-cost China TD smartphones. Guidance was weak
 as PC and smartphone trends continue to be tepid and wireless connectivity                                                                        Trading data
 demand from consumer electronics is also well below typical seasonality. Whilst                                                                   52-wk range                                                                        US$16.73-10.38
 margins and free cash flow remain resilient despite the lower revenue outlook, we                                                                 Market cap.                                                                                       US$6.91bn
 reiterate our Neutral due to: 1) below seasonal HDD and wireless connectivity                                                                     Shares o/s                                                                                 562m (COM)
 demand, 2) TD-SCDMA and 3G WCDMA competition continues to intensify.                                                                              Free float                                                                                                         84%
                                                                                                                                                   Avg. daily volume ('000)                                                                                   11,026
     F3Q storage and mobile & wireless demand to be well normal seasonality
                                                                                                                                                   Avg. daily value (m)                                                                               US$130.2
 F2Q sales/non-GAAP EPS of $816m/$0.24 was below our $855m/$0.27 on weak
 HDD and TD chipset sales. Storage sales grew 7% q/q whilst wireless declined 5%                                                                   Balance sheet data 01/13E
 (vs mid/high-single % growth forecast) due to RIM and China TD weakness. The                                                                      Shareholders' equity                                                                              US$5.10bn
 F3Q outlook of $800-850m (-2% to +4% q/q) was well below our +7% estimate,
                                                                                                                                                   P/BV (UBS)                                                                                                         1.4x
 and comprehends a mid-single % decline in wireless and slight growth in storage
 and networking.                                                                                                                                   Net Cash (debt)                                                                                   US$2.38bn


    Lower F13/14 sales by 6%/6%, non-GAAP EPS by 15%/14%                                                                                           Forecast returns
                                                                                                                                                   Forecast price appreciation                                                                                -2.3%
 Our F3Q sales estimate declines to $827m from $913m with EPS cut to $0.24 from
 $0.30 on the weak guidance. F13/14 sales decline 6%/6% to $3.28bn/$3.66bn on                                                                      Forecast dividend yield                                                                                      0.0%
 lower storage and wireless SoC unit assumptions. Along with lowered gross                                                                         Forecast stock return                                                                                      -2.3%
 margin assumptions, our EPS estimates fall 15%/14% to $0.95/$1.16.                                                                                Market return assumption                                                                                     5.3%
                                                                                                                                                   Forecast excess return                                                                                     -7.6%
    Valuation: $12 12-month price target, Neutral rating
 Our DCF-based $12 price target equates to 13x F13E non-GAAP EPS.                                                                                  EPS (UBS, US$)
                                                                                                                                                                                                          01/13E                                               01/12
                                                                                                                                                                                      From                    To                    Cons.                     Actual
                                                                                                                                                   Q1                                  0.16                 0.16                     0.23                       0.22
                                                                                                                                                   Q2                                  0.19                 0.16                     0.26                       0.31
                                                                                                                                                   Q3E                                 0.22                 0.16                     0.31                       0.32
 Highlights (US$m)                                       01/11               01/12              01/13E              01/14E               01/15E    Q4E                                 0.25                 0.19                     0.32                       0.13
 Revenues                                                3,612               3,393               3,283               3,662                3,904    01/13E                              0.82                 0.67                     1.13
 EBIT (UBS)                                                981                 654                 428                 602                  704    01/14E                              1.09                 0.93                     1.33
 Net Income (UBS)                                          904                 615                 389                 553                  647
 EPS (UBS, US$)                                           1.34                0.99                0.67                0.93                 1.06    Performance (US$)
 Net DPS (UBS, US$)                                       0.00                0.00                0.00                0.00                 0.00    30.0
                                                                                                                                                             Stock Price (US$)                                                                   Rel. S & P 500
                                                                                                                                                                                                                                                                       160
                                                                                                                                                                                                                                                                       140
                                                                                                                                                   25.0
 Profitability & Valuation                      5-yr hist av.                01/12              01/13E              01/14E               01/15E    20.0
                                                                                                                                                                                                                                                                       120
                                                                                                                                                                                                                                                                       100
 EBIT margin %                                          15.7                  19.3                13.0                16.4                 18.0    15.0                                                                                                                80
 ROIC (EBIT) %                                          18.0                  24.4                15.6                21.5                 23.5    10.0
                                                                                                                                                                                                                                                                       60
                                                                                                                                                                                                                                                                       40
 EV/EBITDA (core) x                                     10.9                   8.6                  8.4                 6.2                  4.7    5.0
                                                                                                                                                                                                                                                                       20
 PE (UBS) x                                             54.3                  15.2                18.4                13.2                 11.6     0.0                                                                                                                0
                                                                                                                                                          07/09

                                                                                                                                                                  10/09

                                                                                                                                                                          01/10

                                                                                                                                                                                  04/10

                                                                                                                                                                                          07/10

                                                                                                                                                                                                  10/10

                                                                                                                                                                                                          01/11

                                                                                                                                                                                                                  04/11

                                                                                                                                                                                                                            07/11

                                                                                                                                                                                                                                    10/11

                                                                                                                                                                                                                                             01/12

                                                                                                                                                                                                                                                      04/12

                                                                                                                                                                                                                                                              07/12




 Net dividend yield %                                     0.0                  0.0                  0.0                 0.0                  0.0
                                                                                                                                                                            Price Target (US$) (LHS)                      Stock Price (US$) (LHS)
 Source: Company accounts, Thomson Reuters, UBS estimates. (UBS) valuations are stated before goodwill-related charges and other adjustments for                            Rel. S & P 500 (RHS)
 abnormal and economic items at the analysts' judgement.                                                                                           Source: UBS
 Valuations: based on an average share price that year, (E): based on a share price of US$12.28 on 16 Aug 2012 18:41 EDT
                                                                                                                                                                                              www.ubs.com/investmentresearch
 Uche Orji                                                               Steven Chin
 Analyst                                                                 Analyst
 uche.orji@ubs.com                                                       steven.chin@ubs.com
 +1-212-713 4015                                                         +1-415-352 5675




 This report has been prepared by UBS Securities LLC
 ANALYST CERTIFICATION AND REQUIRED DISCLOSURES BEGIN ON PAGE 10.
 UBS does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may
 have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making
 their investment decision.
Marvell Technology Group Ltd. 16 August 2012


F2Q13 Results Review
F2Q sales/non-GAAP EPS of $816m/$0.24 was below our $855m/$0.27 on
weak HDD SoC and mobile chipset sales due to China Mobile TD smartphone
demand softness and competitive challenges at RIM. Storage sales disappointed
with 7% q/q growth (vs 10-15% q/q guide) wireless declined 5% (vs mid/high-
single % growth forecast) due to RIM and China TD weakness, however,
networking was in line with 4% q/q growth. Inventory days of 82 declined by 5
from the prior quarter and compare with 77 in F2Q12.

Table 1: Marvell Technology F2Q13 Results Summary

                                non-GAAP                                                                   F2Q13A                                          F2Q13E                                                 Delta          Consensus                                      F1Q13A                 Q/Q          F2Q12A            Y/Y

Revenues ($M)                                                                                                           816                                             855                                             -5%                                               853      796                  2%                898        -9%

Gross Profit ($M)                                                                                                       434                                             464                                             -6%                                               461      430                  1%                519    -16%

Gross Margin (%)                                                                                                 53.4%                                          54.8%                                            -1.3%                                              54.0%        54.3%                 -2%             58.1%         -8%

Operating Profit ($M)                                                                                                   137                                             166                                       -18%                                                    161      135                  1%                236    -42%

Operating Margin (%)                                                                                             16.7%                                          19.4%                                            -2.7%                                              18.8%        17.0%                 -2%             26.3%     -36%

EPS ($)                                                                                                                 0.24                                            0.27                                      -13%                                                0.26        0.23                  4%               0.38    -37%

                                    GAAP                                                                   F2Q13A                                          F2Q13E                                                 Delta          Consensus                                      F1Q13A                 Q/Q          F2Q12A            Y/Y

Gross Margin (%)                                                                                                 53.2%                                          54.3%                                            -1.1%                                                           54.0%                 -1%             57.9%         -8%

Operating Margin (%)                                                                                             11.1%                                          13.3%                                            -2.2%                                                           11.8%                 -6%             21.7%     -49%

EPS ($)                                                                                                                 0.16                                            0.19                                      -13%                                                0.20        0.16                  3%               0.31    -47%

Source: Company reports, Thomson One, and UBS estimates

During the quarter, Marvell repurchased 20m shares, using $150m of cash. Cash
Flow from Operations of $189m and Free Cash Flow of $178m were only down
slightly from the prior quarter despite the lower expected revenues. Marvell
estimates Free Cash Flow of $125m for F3Q.

Chart 1: Marvell Cash Flow Trend                                                                                                                                                                                                 Chart 2: RoCE vs Marvell Y/Y Share Trend
                  350                                                                                                                                                                                                                                              50%                                                          200%

                  300
                                                                                                                                                                                                                                                                   40%                                                          150%
                                                                                                                                                                                                                                  Return on Capital Employed (%)




                  250

                  200                                                                                                                                                                                                                                              30%                                                          100%
                                                                                                                                                                                                                                                                                                                                       Share Price Y/Y
 Cash Flow ($M)




                  150
                                                                                                                                                                                                                                                                   20%                                                          50%
                  100

                   50                                                                                                                                                                                                                                              10%                                                          0%

                    0
                                                                                                                                                                                                                                                                    0%                                                          -50%
                  -50

             -100                                                                                                                                                                                                                                                  -10%                                                         -100%
                                                                                                                                                                                                                                                                          F4Q13E
                                                                                                                                                                                                                                                                           F2Q02
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                                                                                                                                                                                                                                                                           F2Q11
                                                                                                                                                                                                                                                                           F4Q11
                                                                                                                                                                                                                                                                           F2Q12
                                                                                                                                                                                                                                                                           F4Q12
                                                                                                                                                                                                                                                                           F2Q13
                                                                                                                                                                                                                        F3Q13E
                        F3Q01
                                F1Q02
                                        F3Q02
                                                F1Q03
                                                        F3Q03
                                                                F1Q04
                                                                        F3Q04
                                                                                F1Q05
                                                                                        F3Q05
                                                                                                F1Q06
                                                                                                        F3Q06
                                                                                                                F1Q07
                                                                                                                        F3Q07
                                                                                                                                F1Q08
                                                                                                                                        F3Q08
                                                                                                                                                F1Q09
                                                                                                                                                        F3Q09
                                                                                                                                                                F1Q10
                                                                                                                                                                        F3Q10
                                                                                                                                                                                F1Q11
                                                                                                                                                                                        F3Q11
                                                                                                                                                                                                F1Q12
                                                                                                                                                                                                        F3Q12
                                                                                                                                                                                                                F1Q13




                                                                                                                FCF (GAAP)                              CFO                                                                                                                          RoCE (post-tax GAAP)    MRVL Price Y/Y


Source: Company reports and UBS estimates                                                                                                                                                                                        Source: Company reports and UBS estimates




                                                                                                                                                                                                                                                                                                                                  UBS 2
Marvell Technology Group Ltd. 16 August 2012


Marvell F3Q13 Outlook (non-GAAP)
Revenue: $800-860m (-2% to +4% q/q)

Gross Margin: 53.5% ± 50bps

Operating Expenses: $300m ± $5m (R&D $245m, SG&A $55m)

Interest & Other Income, net: $2m benefit

Tax: $2m

Share Count: 580m

EPS: $0.24 ± couple pennies (GAAP $0.08 ± $0.01 lower vs non-GAAP)

The midpoint of the outlook was below our +7% forecast and is driven by
expectations for a mid-single % decline in mobile & wireless sales, low-
single % growth in storage, and low-single % growth in networking.

Estimate Revisions
We lower our F3Q sales estimate to $827m from $913m with EPS cut to $0.24
from $0.30 on the weak revenue guidance. F13/14 sales decline 6%/6% to
$3.28bn/$3.66bn on lower storage and wireless SoC unit assumptions. Along
with lowered gross margin assumptions, our EPS estimates fall 15%/14% to
$0.95/$1.16.

Table 2: Marvell Technology Estimate Change Summary

                                            F3Q13E                                F2013E                                F2014E

       non-GAAP               New            Old          Change     New           Old          Change     New           Old          Change

Revenues ($M)                       827            913         -9%     3,283         3,480           -6%     3,662         3,902           -6%

Growth Y/Y                      -13.0%         -3.9%         -9.1%     -3.2%          2.6%         -5.8%    11.5%          12.1%         -0.6%

Gross Margin (%)                53.6%          54.7%         -1.2%    53.8%          54.6%         -0.8%    54.4%          55.0%         -0.6%

Operating Margin (%)            16.9%          21.2%         -4.3%    17.1%          20.0%         -2.9%    20.5%          23.3%         -2.8%

EPS ($)                             0.24           0.30       -22%         0.95          1.12       -15%         1.16          1.35       -14%

          GAAP                New            Old          Change     New           Old          Change     New           Old          Change

Gross Margin (%)                53.1%          54.3%         -1.2%    53.4%          54.2%         -0.7%    54.0%          54.6%         -0.6%

Operating Margin (%)            11.1%          15.7%         -4.6%    11.9%          14.7%         -2.9%    16.4%          18.9%         -2.5%

EPS ($)                             0.16           0.22       -30%         0.67          0.82       -19%         0.93          1.09       -15%

UBS EPS ($)                         0.16           0.22       -30%         0.67          0.82       -19%         0.93          1.09       -15%

Source: Company reports and UBS estimates




                                                                                                                                          UBS 3
        Chart 3: Marvell Technology (MRVL) – Income Statement




                                                                                                                                                                                                                                                           Marvell Technology Group Ltd. 16 August 2012
          Marvell Technology
          Income Statement
          Fiscal year ends Jan 31                                                       FY2012                                                  FY2013E                                                FY2014E
          ($ in millions, except EPS)         2010        2011        Apr-11      Jul-11     Oct-11     Jan-12      2012        Apr-12     Jul-12     Oct-12     Jan-13    2013E        Apr-13    Jul-13     Oct-13    Jan-14    2014E        2015E
                                                                       Q1A         Q2A         Q3A       Q4A                     Q1A        Q2A        Q3E        Q4E                    Q1E       Q2E        Q3E       Q4E
          Total Revenues                      2,807.7     3,611.9       802.4       897.5       950.4     742.7     3,393.0       796.4      816.1      827.1      843.8   3,283.4        852.1     903.2      965.5     940.9    3,661.7      3,903.7
             Cost of Goods Sold               1,227.1     1,473.3       334.5       378.1       412.1     341.1     1,465.8       366.3      381.8      387.9      392.4   1,528.5        392.0     413.6      444.1     434.7    1,684.5      1,767.2
          Gross Profit                        1,580.6     2,138.6       467.9       519.4       538.3     401.6     1,927.2       430.0      434.3      439.2      451.4   1,754.9        460.1     489.5      521.4     506.2    1,977.2      2,136.4
             R&D Expenses                       818.8       897.6       242.5       249.6       266.3     255.3     1,013.7       256.0      264.2      270.1      273.6   1,063.8        271.6     271.5      276.7     274.2    1,094.0      1,140.3
             SG&A Expenses                      234.8       260.3        62.9         64.0       69.5      63.6       260.1        65.8        66.8      66.0       65.0     263.5         67.2       69.8      71.7      72.9      281.6        291.7
             Unusual or Infrequent Items        192.8        79.5        14.3         11.1       11.2      12.7        49.4        14.4        13.0      11.0                 38.4                                                     -            -
          Total Operating Expenses            1,246.5     1,237.4       319.8       324.8       346.9     331.6     1,323.1       336.1      344.0      347.1      338.6   1,365.8        338.8     341.3      348.4     347.1    1,375.6      1,432.0
          Operating Income                      334.1       901.2       148.1       194.6       191.4      70.0       604.1        93.9        90.3      92.1      112.8     389.2        121.3     148.2      173.0     159.1      601.6        704.4
          Interest Income and Other, net          9.0         9.3         (0.2)        2.1        7.7        5.3       14.9          1.1        5.9        2.0       2.0      10.9          3.0       3.0        3.0       3.0       12.0         12.0
          Pretax Income                         343.1       910.5       147.9       196.7       199.1      75.3       619.1        95.0        96.2      94.1      114.8     400.1        124.3     151.2      176.0     162.1      613.6        716.4
          Income Tax Expense (Benefit)          (10.3)        6.3          1.0         4.3        4.0       (5.4)       4.0          0.4        3.1        2.8       4.6      10.9         12.9      15.1       17.0      15.9       60.9         69.2
          Pro Forma Net Income                  648.5     1,113.7       189.3       234.5       244.5     126.6       794.8       138.7      139.3      139.3      147.3     564.5        148.4     173.2      196.0     183.2      700.7        795.3
          GAAP Net Income                       353.5       904.1       146.9       192.4       195.1      80.7       615.1        94.5        93.1      91.2      110.3     389.1        111.4     136.2      159.0     146.2      552.7        647.3
          Pro Forma EPS                          0.99        1.64        0.29         0.38       0.40      0.21        1.27        0.23        0.24      0.24       0.25      0.95         0.25      0.29       0.32      0.30       1.16         1.28
          GAAP EPS                               0.54        1.34        0.22         0.31       0.32      0.13        0.99        0.16        0.16      0.16       0.19      0.67         0.19      0.23       0.27      0.24       0.93         1.06
          Stock-Based Compensation              126.6       118.4        27.5        30.4       30.6       31.4       119.9        27.2       33.2       37.0       37.0     134.4         37.0      37.0       37.0      37.0     148.0        148.0
          Adjusted EPS w/ SBC                    0.80        1.35        0.22        0.31       0.33       0.14        1.00        0.16       0.16       0.16       0.19      0.67         0.19      0.23       0.27      0.24      0.93         1.06
          Diluted Shares Outstanding (GAAP)     653.7       676.9       657.1       623.1      613.5      599.3       623.3       594.7      570.3      580.3      584.3     582.4        588.3     592.3      596.3     600.3     594.3        610.3
          Diluted Shares Treasury (PF)          656.9       680.6       662.9       624.8      615.1      605.7       627.1       605.6      587.0      591.0      595.0     594.6        599.0     603.0      607.0     611.0     605.0        621.0
                                              C2009       C2010                                                     C2011                                                  C2012                                                 C2013E       C2014E
          Calendar Revenues                   2,807.7     3,611.9                                                   3,393.0                                                3,283.4                                                3,661.7      3,903.7
          Calendar Pro Forma EPS                 0.99        1.64                                                      1.27                                                   0.95                                                   1.16         1.28
          Percentage of Revenues
          Gross Profit                          56.3%       59.2%       58.3%       57.9%      56.6%      54.1%       56.8%       54.0%      53.2%      53.1%      53.5%     53.4%        54.0%     54.2%      54.0%     53.8%     54.0%        54.7%
             R&D Expenses                       29.2%       24.9%       30.2%       27.8%      28.0%      34.4%       29.9%       32.1%      32.4%      32.7%      32.4%     32.4%        31.9%     30.1%      28.7%     29.1%     29.9%        29.2%
             SG&A Expenses                       8.4%        7.2%        7.8%        7.1%       7.3%       8.6%        7.7%        8.3%       8.2%       8.0%       7.7%      8.0%         7.9%      7.7%       7.4%      7.7%      7.7%         7.5%
          Operating Income                      11.9%       25.0%       18.5%       21.7%      20.1%       9.4%       17.8%       11.8%      11.1%      11.1%      13.4%     11.9%        14.2%     16.4%      17.9%     16.9%     16.4%        18.0%
          Operating Income (Pro Forma)          23.3%       30.4%       23.7%       26.3%      24.5%      15.4%       22.8%       17.0%      16.7%      16.9%      17.8%     17.1%        18.6%     20.5%      21.7%     20.8%     20.5%        21.8%
          Interest Income and Other, net         0.3%        0.3%        0.0%        0.2%       0.8%       0.7%        0.4%        0.1%       0.7%       0.2%       0.2%      0.3%         0.4%      0.3%       0.3%      0.3%      0.3%         0.3%
          Pretax Income                         12.2%       25.2%       18.4%       21.9%      21.0%      10.1%       18.2%       11.9%      11.8%      11.4%      13.6%     12.2%        14.6%     16.7%      18.2%     17.2%     16.8%        18.4%
             Income Tax Expense (Benefit)       -0.4%        0.2%        0.1%        0.5%       0.4%      -0.7%        0.1%        0.1%       0.4%       0.3%       0.5%      0.3%         1.5%      1.7%       1.8%      1.7%      1.7%         1.8%
             Tax rate                           -3.0%        0.7%        0.7%        2.2%       2.0%      -7.1%        0.6%        0.5%       3.2%       3.0%       4.0%      2.7%        10.4%     10.0%       9.7%      9.8%      9.9%         9.7%
          Net Income (GAAP)                     12.6%       25.0%       18.3%       21.4%      20.5%      10.9%       18.1%       11.9%      11.4%      11.0%      13.1%     11.9%        13.1%     15.1%      16.5%     15.5%     15.1%        16.6%
          Net Income (Pro Forma)                23.1%       30.8%       23.6%       26.1%      25.7%      17.1%       23.4%       17.4%      17.1%      16.8%      17.5%     17.2%        17.4%     19.2%      20.3%     19.5%     19.1%        20.4%
          Q-Q Growth
          Total Revenues                             --          --     -10.9%      11.9%        5.9%     -21.9%           --      7.2%       2.5%        1.4%      2.0%           --      1.0%      6.0%       6.9%     -2.6%           --           --
          Pro Forma Net Income                       --          --     -30.6%      23.9%        4.3%     -48.2%           --      9.5%       0.5%        0.0%      5.7%           --      0.8%     16.7%      13.2%     -6.5%           --           --
          Y-Y Growth
          Total Revenues                        -4.8%       28.6%        -6.2%       0.1%       -0.9%     -17.5%      -6.1%        -0.8%     -9.1%      -13.0%     13.6%     -3.2%         7.0%     10.7%      16.7%     11.5%     11.5%         6.6%
          Pro Forma Net Income                  34.5%       71.7%       -27.2%     -14.2%      -20.5%     -53.6%     -28.6%       -26.8%    -40.6%      -43.0%     16.3%    -29.0%         7.0%     24.3%      40.7%     24.4%     24.1%        13.5%

        Source: Company reports and UBS estimates
UBS 4
        Chart 4: Marvell Technology (MRVL) – Balance Sheet




                                                                                                                                                                                                                                             Marvell Technology Group Ltd. 16 August 2012
          Marvell Technology
          Balance Sheet Statement
          Fiscal year ends Jan 31                                                       FY2012                                              FY2013E                                            FY2014E
          ($ in millions, except EPS)               2010       2011      Apr-11    Jul-11    Oct-11     Jan-12     2012      Apr-12    Jul-12     Oct-12    Jan-13    2013E     Apr-13    Jul-13     Oct-13    Jan-14    2014E     2015E
                                                                          Q1A       Q2A        Q3A       Q4A                  Q1A       Q2A        Q3E       Q4E                 Q1E       Q2E        Q3E       Q4E
          Assets
              Cash and ST Investments               1,796.7    2,930.0   2,267.8   2,399.8   2,424.7     2,246.5   2,246.5   2,202.7   2,134.2    2,234.6   2,381.7   2,381.7   2,511.1   2,679.4    2,801.6   2,951.1   2,951.1   3,555.1
              Accounts Receivable, net                356.8      459.4     425.5     405.8     451.1       407.3     407.3     417.4     390.8      410.3     430.8     430.8     452.4     475.0      498.7     523.7     523.7     636.5
              Inventories                             241.5      245.4     299.1     322.0     310.0       354.1     354.1     353.4     345.7      363.0     373.9     373.9     373.9     358.9      376.9     388.2     388.2     403.0
              Deferred Income Taxes                     8.0       10.8      10.8      10.8       9.6        10.7      10.7      10.6      10.6       10.6      10.6      10.6      10.6      10.6       10.6      10.6      10.6      10.6
              Prepaid Expenses, Other Assets           62.5       66.9      69.3      60.0      52.1        60.4      60.4      57.5      48.3       48.3      48.3      48.3      48.3      48.3       48.3      48.3      48.3      48.3
            Total Current Assets                    2,465.5    3,712.6   3,072.6   3,198.4   3,247.5     3,079.0   3,079.0   3,041.6   2,929.6    3,066.8   3,245.3   3,245.3   3,396.2   3,572.2    3,736.1   3,921.9   3,921.9   4,653.6
              Property and Equipment, net             342.5      358.4     354.5     363.8     373.6       383.8     383.8     382.4     381.2      372.0     362.8     362.8     382.8     402.8      422.8     442.8     442.8     562.8
              Goodwill                              1,997.7    2,004.8   2,006.5   2,006.9   2,009.7     2,032.0   2,032.0   2,032.0   2,032.0    2,032.0   2,032.0   2,032.0   2,032.0   2,032.0    2,032.0   2,032.0   2,032.0   2,032.0
              Acquired Intangible Assets              179.1      124.6     123.9     112.7     102.4       141.5     141.5     127.2     114.1      103.1     103.1     103.1     103.1     103.1      103.1     103.1     103.1     103.1
              Other LT Assets                         186.1      137.6     135.2     146.8     134.1       131.4     131.4     135.4     127.7      127.7     127.7     127.7     127.7     127.7      127.7     127.7     127.7     127.7
          Total Assets                              5,170.9    6,338.2   5,692.6   5,828.6   5,867.4    5,767.62   5,767.6   5,718.5   5,584.6    5,701.6   5,871.0   5,871.0   6,041.9   6,237.9    6,421.8   6,627.5   6,627.5   7,479.2
          Liabilities
               Accounts Payable                      277.4      332.0      321.7     354.0     355.4      304.7     304.7      323.4     335.1      318.3     327.9    327.9      337.7     347.9      330.5     340.4    340.4     353.4
               Accrued Liabilities                    82.1       85.5       79.2      89.9      82.7       87.7      87.7      108.1      89.6       85.2      87.7     87.7       90.3      93.1       88.4      91.1     91.1      94.5
               Accrued Employee Compensation         125.8      146.5      131.6     117.3     154.4      137.2     137.2      136.6     133.9      133.9     133.9    133.9      133.9     133.9      133.9     133.9    133.9     133.9
               Income Taxes Payable (ST)              20.0         -                                                   -                               -         -        -          -         -          -         -        -         -
               Deferred Income                        59.4       76.2       80.9      67.8      69.2        60.0     60.0       65.4      67.8       67.8      67.8     67.8       67.8      67.8       67.8      67.8     67.8      67.8
               Capital Lease Obligations (ST)          1.9        0.5                                                  -                               -         -        -          -         -          -         -        -         -
            Total Current Liabilities                566.6      640.7      613.4     629.0     661.8      589.6     589.6      633.5     626.4      605.2     617.3    617.3      629.8     642.6      620.6     633.1    633.1     649.6
            Income Taxes Payable (LT)                117.2      136.3      138.8     139.7     132.1      131.6     131.6      130.7     130.7      130.7     130.7    130.7      130.7     130.7      130.7     130.7    130.7     130.7
            Capital Lease Obligations (net of ST)      0.5         -                                                   -                               -         -        -          -         -          -         -        -         -
            Other Long-Term Liabilities               68.6       39.3       37.0      33.8      34.2       32.5      32.5       31.7      24.3       24.3      24.3     24.3       24.3      24.3       24.3      24.3     24.3      24.3
          Total Liabilities                          753.0      816.3      789.2     802.4     828.1      753.6     753.6      796.0     781.4      760.2     772.3    772.3      784.8     797.6      775.6     788.1    788.1     804.6
          Shareholder Equity
            Common Stock                                1.3        1.3       1.2       1.2       1.2         1.2       1.2       1.1       1.1        1.1       1.1       1.1       1.1       1.1        1.1       1.1       1.1       1.1
            Additional Paid In Capital              4,607.8    4,805.6   4,034.9   3,966.0   3,790.2     3,683.1   3,683.1   3,495.6   3,317.6    3,364.6   3,411.6   3,411.6   3,458.6   3,505.6    3,552.6   3,599.6   3,599.6   3,787.6
            Accum. Deficit / Retained Earnings       (190.3)     713.9     860.7   1,053.1   1,248.2     1,329.0   1,329.0   1,423.5   1,483.0    1,574.3   1,684.6   1,684.6   1,796.0   1,932.2    2,091.1   2,237.3   2,237.3   2,884.6
            Accum. Comprehensive (Loss)/Income         (0.9)       1.1       6.6       5.8      (0.3)        0.8       0.8       2.3       1.4        1.4       1.4       1.4       1.4       1.4        1.4       1.4       1.4       1.4
            Shareholder Equity                      4,418.0    5,521.9   4,903.4   5,026.1   5,039.3     5,014.0   5,014.0   4,922.5   4,803.1    4,941.4   5,098.6   5,098.6   5,257.1   5,440.2    5,646.2   5,839.4   5,839.4   6,674.6
          Total Liabilities & Equity                5,170.9    6,338.2   5,692.6   5,828.6   5,867.4    5,767.62   5,767.6   5,718.5   5,584.6    5,701.6   5,871.0   5,871.0   6,041.9   6,237.9    6,421.8   6,627.5   6,627.5   7,479.2


          Operating Activity
          Day Sales Outstanding                        44.4      46.6       47.7      40.7      42.7        49.4     45.1       47.2      43.1       44.6      46.0     45.2       47.8      47.3       46.5      50.1     47.9      54.6
          Inventory Turns                               5.5       6.4        4.5       4.7       5.3         3.9      4.6        4.1       4.4        4.3       4.2      4.3        4.2       4.6        4.7       4.5      4.5       4.5
          Inventory Days                               65.9      56.0       80.5      76.6      67.7        93.4     78.5       86.8      81.5       84.2      85.8     84.5       85.8      78.1       76.4      80.4     80.0      79.2
          Payable Period                               74.8      82.9       86.6      84.3      77.6        80.4     82.2       79.5      79.0       73.9      75.2     76.9       77.5      75.7       67.0      70.5     72.7      71.8
          Cash Conversion Cycle                        35.5      19.7       41.6      33.1      32.8        62.4     41.4       54.5      45.6       55.0      56.5     52.9       56.1      49.7       55.9      60.0     55.3      62.0

        Source: Company reports and UBS estimates
UBS 5
        Chart 5: Marvell Technology (MRVL) – Cash Flow Statement




                                                                                                                                                                                                                                                                Marvell Technology Group Ltd. 16 August 2012
          Marvell Technology
          Cash Flow Statement
          Fiscal year ends Jan 31                                                                 FY2012                                             FY2013E                                                FY2014E
          ($ in millions, except EPS)                           2010       2011     Apr-11     Jul-11    Oct-11    Jan-12       2012     Apr-12    Jul-12    Oct-12      Jan-13     2013E      Apr-13     Jul-13    Oct-13      Jan-14     2014E      2015E
                                                                                      Q1A       Q2A        Q3A       Q4A                   Q1A      Q2A        Q3E          Q4E                  Q1E        Q2E       Q3E          Q4E
            Net Income                                        353.5      904.1      146.9      192.4     195.1       80.7      615.1      94.5      93.1      91.2        110.3     389.1      111.4      136.2     159.0        146.2     552.7      647.3
            Depreciation & Amortization                        99.2       93.2       24.0       22.4      20.2       21.8       88.5      21.2      21.3      20.0         20.0      82.5       20.0       20.0      20.0         20.0      80.0       80.0
            Stock-Based Compensation                          126.6      118.4       27.5       30.4      30.6       31.4      119.9      27.2      33.2      37.0         37.0     134.4       37.0       37.0      37.0         37.0     148.0      148.0
            Amortizationof Acquired Intangibles               107.5       79.5       14.3       11.1      11.2       12.7       49.4      14.4      13.0      11.0           -       38.4          -          -         -           -         -          -
            Other Operating Charges                            (2.1)       9.5        3.9        3.3       4.2        0.5       11.8       2.9       2.3         -           -        5.1          -          -         -           -         -          -
            Changes in Assets & Liabilities
              Accounts Receivable                             (134.7)    (102.6)       33.9      19.7     (45.4)     46.3       54.6      (10.1)     26.6      (19.5)     (20.5)    (23.6)      (21.5)     (22.6)     (23.7)     (24.9)    (92.8)     (112.9)
              Inventories                                       82.7       (1.3)      (53.1)    (22.9)     12.0     (37.1)    (101.1)       0.2       7.8      (17.3)     (10.9)    (20.1)         -        15.0      (17.9)     (11.3)    (14.3)      (14.8)
              Prepaid Expenses and Other Assets                 (4.3)      50.2         0.6      16.8      16.8      (3.5)      30.7        4.2      11.4         -          -       15.6          -          -          -          -         -           -
              Accounts Payable                                 136.0       42.5        (5.3)     12.3      (2.8)    (51.3)     (47.1)      21.2       6.3      (16.8)       9.6      20.3         9.8       10.1      (17.4)       9.9      12.5        13.0
              Accrued Liabilities and Other                     (4.2)     (38.1)       (5.5)      5.4     (17.9)     (3.6)     (21.6)      18.1      (4.2)      (4.5)       2.6      12.0         2.6        2.7       (4.7)       2.7       3.3         3.5
              Accrued Employee Compensation                     33.3       21.2       (14.9)    (14.4)     36.2     (19.5)     (12.6)      (0.6)    (24.0)        -          -      (24.7)         -          -          -          -         -           -
              Income Taxes Payable                             (22.1)        -                                                    -                               -          -         -           -          -          -          -         -           -
              Deferred Income                                   15.7       16.8         4.7     (13.1)      1.4      (9.3)     (16.2)       5.5       2.4         -          -        7.9          -          -          -          -         -           -
              Other Accrued Liabilities                         24.5         -                                                    -                                                    -                                                      -           -
          Cash Flow from Operating activities                  811.5    1,193.5      177.1     263.4     261.6      69.1       771.2     198.7     189.2      101.2      148.0      637.1      159.4      198.3      152.2      179.5      689.4       764.0
            Purchases of PPE                                   (39.8)     (90.2)     (17.0)     (25.2)    (20.1)   (26.4)      (88.8)    (18.9)     (10.8)     (10.8)     (10.8)    (51.4)      (40.0)     (40.0)     (40.0)     (40.0)    (160.0)    (200.0)
            Investments, net                                  (688.6)    (395.8)    (404.6)     (54.2)    (40.9)   110.1      (389.5)    137.1       97.3       (5.0)      (5.0)    224.4        (5.0)      (5.0)      (5.0)      (5.0)     (20.0)     (20.0)
            Purchase of Technology Licenses                    (15.6)     (23.1)      (3.3)      (3.3)     (3.0)    (4.2)      (13.8)     (2.0)      (4.4)                           (6.5)                                                     -          -
            Proceeds from Acquisitions, net of costs              -          -       (16.3)      (0.4)     (2.0)   (75.2)      (93.9)                                                  -                                                       -          -
            Acquisition Costs                                     -       (29.4)                                                  -                                                    -                                                       -          -
            Other Investing activities                            -         9.2       (1.8)      (0.5)     (1.3)     (0.5)      (4.0)     (5.0)     (0.8)                            (5.8)                                                     -          -
          Cash Flow from Investing activities                 (744.0)    (529.3)    (443.0)     (83.7)    (67.2)      3.8     (590.1)    111.2      81.3       (15.8)     (15.8)    160.8       (45.0)     (45.0)     (45.0)     (45.0)    (180.0)    (220.0)
            Proceeds - Common Sh Issuance, net                111.6      166.0         5.2       36.5       8.6      47.5        97.9      17.8      39.5      10.0       10.0        77.3      10.0       10.0       10.0       10.0       40.0       40.0
            Repurchases of Common Stock                          -       (87.5)     (803.5)    (135.7)   (215.2)   (186.5)   (1,340.9)   (223.2)   (250.3)                          (473.5)                                                   -          -
            Principal Pmt on Debt, Capital Lease Equipment     (1.8)      (1.9)       (0.5)        -         -         -         (0.5)                                                  -                                                     -          -
            Proceeds - Borrowings on Notes Payable to Ban        -          -                                                      -                                                    -                                                     -          -
            Other Financing activities                          0.7        0.9         0.0        0.0       0.1       0.1         0.2      (8.8)    (34.1)       -          -        (43.0)       -          -          -          -          -          -
          Cash Flow from Financing activities                 110.5       77.4      (798.8)     (99.2)   (206.4)   (139.0)   (1,243.4)   (214.2)   (244.9)     10.0       10.0      (439.1)     10.0       10.0       10.0       10.0       40.0       40.0
          Change in Cash                                       178.0      741.6    (1,064.7)    80.6     (12.0)    (66.0)    (1,062.2)    95.7      25.5        95.4      142.2      358.7      124.4      163.3      117.2      144.5      549.4      584.0
          Beginning Cash                                       927.4    1,105.4     1,847.1    782.4     863.0     850.9      1,847.1    784.9     880.6       906.1    1,001.5      784.9    1,143.6    1,268.0    1,431.3    1,548.5    1,143.6    1,693.0
          Ending Cash                                        1,105.4    1,847.1       782.4    863.0     850.9     784.9        784.9    880.6     906.1     1,001.5    1,143.6    1,143.6    1,268.0    1,431.3    1,548.5    1,693.0    1,693.0    2,277.0

          Additional Cash Flow Info
            CapEx ($M)                                        (39.8)      (90.2)     (17.0)    (25.2)    (20.1)     (26.4)     (88.8)    (18.9)    (10.8)     (10.8)     (10.8)     (51.4)     (40.0)     (40.0)     (40.0)     (40.0)     (160.0)    (200.0)
              CapEx/Sales                                     -1.4%       -2.5%      -2.1%     -2.8%     -2.1%      -3.6%      -2.6%     -2.4%     -1.3%      -1.3%      -1.3%      -1.6%      -4.7%      -4.4%      -4.1%      -4.3%       -4.4%      -5.1%
            FCF ($M)                                          771.7     1,103.4      160.1     238.2     241.5       42.6      682.5     179.8     178.4       90.4      137.2      585.7      119.4      158.3      112.2      139.5       529.4      564.0
              FCF/Sales                                       27.5%       30.5%      20.0%     26.5%     25.4%       5.7%      20.1%     22.6%     21.9%      10.9%      16.3%      17.8%      14.0%      17.5%      11.6%      14.8%       14.5%      14.4%
            EBITDA                                            433.3       994.4      172.2     217.1     211.6       91.8      692.6     115.1     111.6      112.1      132.8      471.7      141.3      168.2      193.0      179.1       681.6      784.4

        Source: Company reports and UBS estimates
UBS 6
Marvell Technology Group Ltd. 16 August 2012




                                               UBS 7
Marvell Technology Group Ltd.

  Income statement (US$m)                                    01/08                01/09               01/10                01/11                01/12              01/13E        % ch              01/14E         % ch              01/15E         % ch
  Revenues                                                    2,895                2,951                2,808               3,612                3,393                3,283        -3.2                3,662        11.5                3,904         6.6
  Operating expenses (ex depn)                              (2,575)              (2,356)              (2,074)             (2,458)              (2,602)              (2,735)         5.1              (2,980)         9.0              (3,119)         4.7
  EBITDA (UBS)                                                  320                  594                  734               1,153                  791                  548       -30.7                  682        24.3                  784        15.1
  Depreciation                                                (262)                (266)                (207)               (173)                (138)                (121)       -12.3                  (80)      -33.8                  (80)        0.0
  Operating income (EBIT, UBS)                                   58                  328                  527                 981                  654                  428       -34.6                  602        40.7                  704        17.1
  Other income & associates                                        0                    0                   0                 (80)                 (49)                 (38)      -22.2                     0          -                     0          -
  Net interest                                                   (3)                    4                   9                    9                   15                   11      -26.8                    12        9.9                    12        0.0
  Abnormal items (pre-tax)                                    (164)                (163)                (193)                    0                    0                    0          -                     0          -                     0          -
  Profit before tax                                           (108)                  170                  343                 910                  619                  400       -35.4                  614        53.4                  716        16.7
  Tax                                                            (6)                 (22)                  10                  (6)                  (4)                 (11)      175.9                  (61)      456.5                  (69)       13.5
  Profit after tax                                            (114)                  147                  353                 904                  615                  389       -36.7                  553        42.0                  647        17.1
  Abnormal items (post-tax)                                        0                    0                   0                    0                    0                    0          -                     0          -                     0          -
  Minorities / pref dividends                                      0                    0                   0                    0                    0                    0          -                     0          -                     0          -
  Net income (local GAAP)                                     (114)                  147                  353                 904                  615                  389       -36.7                  553        42.0                  647        17.1
  Net Income (UBS)                                               49                  310                  522                 904                  615                  389       -36.7                  553        42.0                  647        17.1

  Tax rate (%)                                                     0                  13                   (3)                   1                    1                   3       327.0                   10       262.8                   10         -2.8
  Pre-abnormal tax rate (%)                                       11                   7                     3                   1                    1                   3       327.0                   10       262.8                   10         -2.8

  Per share (US$)                                            01/08                01/09               01/10                01/11                01/12              01/13E        % ch              01/14E         % ch              01/15E         % ch
  EPS (local GAAP)                                            (0.19)                0.23                 0.54                 1.34                0.99                 0.67       -32.3                0.93         39.2                1.06         14.0
  EPS (UBS)                                                     0.08                0.49                 0.80                 1.34                0.99                 0.67       -32.3                0.93         39.2                1.06         14.0
  Net DPS                                                       0.00                0.00                 0.00                 0.00                0.00                 0.00           -                0.00            -                0.00            -
  Cash EPS                                                      0.53                0.95                 1.17                 1.66                1.24                 0.90       -27.7                1.09         21.8                1.22         11.9
  BVPS                                                          5.78                6.27                 7.09                 8.50                8.35                 8.95         7.2               10.06         12.4               11.19         11.2

  Balance sheet (US$m)                                       01/08                01/09               01/10                01/11                01/12              01/13E        % ch              01/14E         % ch              01/15E         % ch
  Cash and equivalents                                          631                  952               1,797                2,930                2,246                2,382          6.0              2,951         23.9               3,555         20.5
  Other current assets                                          873                  608                 669                  783                  832                  864          3.7                971         12.4               1,098         13.2
  Total current assets                                        1,504                1,560               2,466                3,713                3,079                3,245          5.4              3,922         20.8               4,654         18.7
  Net tangible fixed assets                                     416                  391                 342                  358                  384                  363         -5.5                443         22.0                 563         27.1
  Net intangible fixed assets                                 2,428                2,284               2,177                2,129                2,173                2,135         -1.8              2,135          0.0               2,135          0.0
  Investments / other assets                                    203                  179                 186                  138                  131                  128         -2.8                128          0.0                 128          0.0
  Total assets                                                4,551                4,414               5,171                6,338                5,768                5,871          1.8              6,627         12.9               7,479         12.9
  Trade payables & other ST liabilities                         581                  408                 565                  640                  590                  617          4.7                633          2.6                 650          2.6
  Short term debt                                                 2                    2                   2                    1                    0                    0            -                  0            -                   0            -
  Total current liabilities                                     583                  410                 567                  641                  590                  617          4.7                633          2.6                 650          2.6
  Long term debt                                                395                    2                   1                    0                    0                    0            -                  0            -                   0            -
  Other long term liabilities                                   161                  173                 186                  176                  164                  155         -5.5                155          0.0                 155          0.0
  Total liabilities                                           1,139                  585                 753                  816                  754                  772          2.5                788          2.0                 805          2.1
  Equity & minority interests                                 3,412                3,829               4,418                5,522                5,014                5,099          1.7              5,839         14.5               6,675         14.3
  Total liabilities & equity                                  4,551                4,414               5,171                6,338                5,768                5,871          1.8              6,627         12.9               7,479         12.9

  Cash flow (US$m)                                           01/08                01/09               01/10                01/11                01/12              01/13E        % ch              01/14E         % ch              01/15E         % ch
  Net income                                                  (114)                  147                  353                 904                  615                  389       -36.7                  553        42.0                  647        17.1
  Depreciation                                                  262                  266                  207                 173                  138                  121       -12.3                   80       -33.8                   80         0.0
  Net change in working capital                                (59)                  123                  127                 (11)               (113)                 (13)       -88.9                 (91)       628.9                (111)        21.9
  Other (operating)                                              90                  144                  124                 128                  132                  140         6.0                  148         6.1                  148         0.0
  Net cash from operations                                      177                  681                  812               1,194                  771                  637       -17.4                  689         8.2                  764        10.8
  Capital expenditure                                         (137)                 (78)                 (55)               (113)                (103)                 (58)       -43.6                (160)       176.6                (200)        25.0
  Net (acquisitions) / disposals                               (21)                   (5)                    0                (29)                (94)                    0           -                    0           -                    0           -
  Other changes in investments                                 (27)                   19                (689)               (387)                (394)                  219           -                 (20)           -                 (20)           -
  Cash from investing activities                              (185)                 (65)                (744)               (529)                (590)                  161           -                (180)           -                (220)        22.2
  Increase/(decrease) in debt                                  (11)                (397)                   (2)                 (2)                  (1)                   0           -                    0           -                    0           -
  Share issues / (repurchases)                                   66                   93                  112                   78             (1,243)                (396)           -                   40           -                   40           -
  Dividends paid                                                  0                     0                    0                   0                    0                   0           -                    0           -                    0           -
  Other cash from financing                                       0                     0                    1                   1                    0                (43)           -                    0           -                    0           -
  Cash from financing activities                                 55                (304)                  111                   77             (1,243)                (439)       -64.7                   40           -                   40         0.0

  Cash flow chge in cash & equivalents                            48                 312                  178                 742              (1,062)                  359            -                 549            -                 584           -
  FX / non cash items                                           (13)                   9                  667                 392                  379                (224)            -                  20            -                  20         0.0
  Bal sheet chge in cash & equivalents                            35                 321                  845               1,133                (684)                  135            -                 569            -                 604           -

  Core EBITDA                                                   320                  594                  734               1,153                  791                 548        -30.7                 682         24.3                 784         15.1
  Maintenance capital expenditure                               (10)                 (10)                  (9)                 (9)                 (10)                 (9)        -5.5                 (11)        22.0                 (14)        27.1
  Maintenance net working capital                                (3)                  (4)                  (9)                (23)                 (15)                (10)       -36.7                 (14)        42.0                 (16)        17.1
  Operating free cash flow, pre-tax                             306                  581                  716               1,122                  766                 530        -30.9                 657         24.0                 754         14.8
Source: Company accounts, UBS estimates. (UBS) valuations are stated before goodwill-related charges and other adjustments for abnormal and economic items at the analysts' judgement. Note: For some companies, the data represents an extract of the full
company accounts.




                                                                                                                                                                                                                                       UBS 8
Global Equity Research
Americas

Semiconductors                                                                                                                               Marvell Technology Group Ltd.
12-month rating                                                                           Neutral
12m price target                                                                           US$12.00           Valuation (x)                                              5Yr Avg           01/11          01/12        01/13E         01/14E         01/15E
                                                                                                              P/E (local GAAP)                                                  2.9           13.9           15.2           18.4          13.2           11.6
                                                                                                              P/E (UBS)                                                        54.3           13.9           15.2           18.4          13.2           11.6
                                                                                                              P/CEPS                                                           15.7           11.2           12.1           13.7          11.3           10.1
                                                                                                              Net dividend yield (%)                                            0.0            0.0            0.0            0.0           0.0            0.0
Company profile                                                                                               P/BV                                                              2.1            2.2            1.8            1.4           1.2            1.1
Marvell Technology is a leading designer and developer of                                                     EV/revenue (core)                                                 2.5            2.7            2.0            1.4           1.2            0.9
analog/mixed-signal and digital integrated circuits for the storage and                                       EV/EBITDA (core)                                                 10.9            8.3            8.6            8.4           6.2            4.7
communications markets. It was founded in 1995 with an initial focus                                          EV/EBIT (core)                                                   15.4            9.8           10.5           10.7           7.0            5.2
on the read-channel HDD market and has expanded into SoCs for the                                             EV/OpFCF (core)                                                  11.2            8.6            8.9            8.7           6.5            4.8
computing and consumer end markets, from which it derives 40-45%                                              EV/op. invested capital                                           2.8            3.7            2.5            1.7           1.5            1.2
of its revenue. The company's CMOS expertise combined with its
acquisitions over the years, has enabled it to expand its presence in                                         Enterprise value (US$m)                                                      01/11          01/12        01/13E         01/14E         01/15E
the Ethernet PHY and MAC/Switch markets, and the communications                                               Average market cap                                                           11,975           9,419         6,906          6,906          6,906
and applications processor markets targeting handsets and                                                     + minority interests                                                               0              0             0              0              0
smartphones.                                                                                                  + average net debt (cash)                                                    (2,362)        (2,588)       (2,314)        (2,666)        (3,253)
                                                                                                              + pension obligations and other                                                    0              0             0              0              0
                                                                                                              - non-core asset value                                                             0              0             0              0              0
                                                                                                              Core enterprise value                                                          9,614          6,831         4,592          4,239          3,653

                                                                                                              Growth (%)                                                 5Yr Avg           01/11          01/12        01/13E         01/14E         01/15E
Value (EV/OpFCF & P/E)                                                                                        Revenue                                                           4.1           28.6           -6.1           -3.2          11.5            6.6
   10.0x                                                                                            20.0x
                                                                                                              EBITDA (UBS)                                                     25.4           57.2          -31.4          -30.7          24.3           15.1
                                                                                                              EBIT (UBS)                                                       83.2           86.1          -33.4          -34.6          40.7           17.1
    8.0x
                                                                                                    15.0x     EPS (UBS)                                                        86.7           66.7          -27.4          -32.5          39.4           14.0
    6.0x
                                                                                                    10.0x
                                                                                                              Cash EPS                                                         23.9           42.2          -25.4          -27.7          21.8           11.9
    4.0x                                                                                                      Net DPS                                                             -              -              -              -             -              -
                                                                                                    5.0x
    2.0x                                                                                                      BVPS                                                              9.6           19.8           -1.7            7.2          12.4           11.2
    0.0x                                                                                            0.0x
           01/11              01/12              01/13E                01/14E                    01/15E       Margins (%)                                                5Yr Avg           01/11          01/12        01/13E         01/14E         01/15E
                                  EV/OpFCF (LHS)        P/E (RHS)
                                                                                                              EBITDA / revenue                                                 22.5           31.9           23.3           16.7          18.6           20.1
                                                                                                              EBIT / revenue                                                   15.7           27.2           19.3           13.0          16.4           18.0
                                                                                                              Net profit (UBS) / revenue                                       14.8           25.0           18.1           11.9          15.1           16.6
Profitability
   30.0%                                                                                            40.0%     Return on capital (%)                                        5Yr Avg          01/11          01/12        01/13E         01/14E         01/15E
   25.0%                                                                                            35.0%     EBIT ROIC (UBS)                                                 18.0           37.6           24.4          15.6           21.5           23.5
                                                                                                    30.0%     ROIC post tax                                                      -           37.3           24.2          15.2           19.3           21.2
   20.0%
                                                                                                    25.0%     Net ROE                                                         10.5           18.2           11.7            7.7          10.1           10.3
   15.0%
                                                                                                    20.0%
   10.0%                                                                                            15.0%
                                                                                                              Coverage ratios (x)                                          5Yr Avg          01/11          01/12        01/13E         01/14E         01/15E
    5.0%                                                                                            10.0%
                                                                                                              EBIT / net interest                                                -              -              -              -              -              -
                   01/11        01/12          01/13(E)         01/14(E)              01/15(E)
                                                                                                              Dividend cover (UBS EPS)                                           -              -              -              -              -              -
                                EBIT margin (LHS)         ROIC (RHS)
                                                                                                              Div. payout ratio (%, UBS EPS)                                     -              -              -              -              -              -
                                                                                                              Net debt / EBITDA                                                NM             NM             NM            NM             NM             NM
ROE v Price to book value
                                                                                                              Efficiency ratios (x)                                        5Yr Avg          01/11          01/12        01/13E         01/14E         01/15E
   20.0%                                                                                            2.2x
                                                                                                              Revenue / op. invested capital                                   1.1            1.4            1.3            1.2            1.3            1.3
                                                                                                    2.0x
   15.0%
                                                                                                              Revenue / fixed assets                                           1.2            1.4            1.3            1.3            1.4            1.5
                                                                                                    1.8x
                                                                                                              Revenue / net working capital                                   17.6           29.3           17.6          13.4           12.5             9.9
                                                                                                    1.6x
   10.0%
                                                                                                    1.4x
                                                                                                              Investment ratios (x)                                        5Yr Avg          01/11          01/12        01/13E         01/14E         01/15E
    5.0%                                                                                            1.2x
                                                                                                    1.0x
                                                                                                              OpFCF / EBIT                                                     1.4            1.1            1.2            1.2            1.1            1.1
    0.0%                                                                                            0.8x      Capex / revenue (%)                                              3.1            3.1            3.0            1.8            4.4            5.1
                   01/11        01/12          01/13(E)         01/14(E)              01/15(E)
                           ROE (LHS)                      Price to book value (RHS)
                                                                                                              Capex / depreciation                                             0.5            0.7            0.7            0.5            2.0            2.5

                                                                                                              Capital structure (%)                                        5Yr Avg          01/11          01/12        01/13E         01/14E         01/15E
Growth (UBS EPS)                                                                                              Net debt / total equity                                        (34.0)         (53.1)         (44.8)        (46.7)         (50.5)         (53.3)
                                                                                                              Net debt / (net debt + equity)                                 (58.0)           NM           (81.2)        (87.7)           NM             NM
    4000                                                                                            80%
                                                                                                              Net debt (core) / EV                                          -18.16          (24.6)         (37.9)        (50.4)         (62.9)         (89.1)
    3871                                                                                            60%
    3743
                                                                                                            Source: Company accounts, UBS estimates. (UBS) valuations are stated before goodwill-related charges and other adjustments for abnormal and economic
                                                                                                    40%
    3614
                                                                                                            items at the analysts' judgement.
                                                                                                    20%     Valuations: based on an average share price that year, (E): based on a share price of US$12.28 on 16 Aug 2012 18:41 EDT Market cap(E) may include
    3486
                                                                                                    0%      forecast share issues/buybacks.
    3357
    3229                                                                                            -20%

    3100                                                                                            -40%
                   01/11        01/12          01/13(E)          01/14(E)             01/15(E)
                                                                                                            Uche Orji                                                                 Steven Chin
                            Revenue (LHS)                 UBS EPS Growth (RHS)
                                                                                                            Analyst                                                                   Analyst
                                                                                                            uche.orji@ubs.com                                                         steven.chin@ubs.com
                                                                                                            +1-212-713 4015                                                           +1-415-352 5675




                                                                                                                                                                                                                                            UBS 9
Marvell Technology Group Ltd. 16 August 2012




    Marvell Technology Group Ltd.

Marvell Technology is a leading designer and developer of analog/mixed-signal
and digital integrated circuits for the storage and communications markets. It
was founded in 1995 with an initial focus on the read-channel HDD market and
has expanded into SoCs for the computing and consumer end markets, from
which it derives 40-45% of its revenue. The company's CMOS expertise
combined with its acquisitions over the years, has enabled it to expand its
presence in the Ethernet PHY and MAC/Switch markets, and the
communications and applications processor markets targeting handsets and
smartphones.




    Statement of Risk

Marvell Technology company-specific risks include: 1) the gain or loss of a key
customer, design win, or order; 2) the ability to design and produce products that
meet industry standards or market demand and requirements; 3) the ability to
timely and effectively transition to smaller geometry process technologies or
achieve higher levels of design integration; 4) significant customer or end
market revenue concentration such as the computing end market given approx
50% of sales from storage IC sales or approx 10% of sales from XScale
communications processor sales into RIM; 5) the effectiveness of expense and
product cost control and reduction efforts; 6) competitive pressures and resulting
impact on pricing concessions to customers on an ongoing basis; 7) the
effectiveness of merger and acquisition activity as it pertains to business growth.



    Analyst Certification

Each research analyst primarily responsible for the content of this research
report, in whole or in part, certifies that with respect to each security or issuer
that the analyst covered in this report: (1) all of the views expressed accurately
reflect his or her personal views about those securities or issuers and were
prepared in an independent manner, including with respect to UBS, and (2) no
part of his or her compensation was, is, or will be, directly or indirectly, related
to the specific recommendations or views expressed by that research analyst in
the research report.




                                                                                       UBS 10
Marvell Technology Group Ltd. 16 August 2012


Required Disclosures

This report has been prepared by UBS Securities LLC, an affiliate of UBS AG. UBS AG, its subsidiaries, branches and
affiliates are referred to herein as UBS.

For information on the ways in which UBS manages conflicts and maintains independence of its research product;
historical performance information; and certain additional disclosures concerning UBS research recommendations,
please visit www.ubs.com/disclosures. The figures contained in performance charts refer to the past; past performance is
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Commission.

UBS Investment Research: Global Equity Rating Allocations
                                                                                                     1                                2
 UBS 12-Month Rating                   Rating Category                                     Coverage                      IB Services
 Buy                                   Buy                                                       55%                             33%
 Neutral                               Hold/Neutral                                              37%                             31%
 Sell                                  Sell                                                        8%                            16%
                                                                                                     3                               4
 UBS Short-Term Rating                 Rating Category                                     Coverage                      IB Services
 Buy                                   Buy                                               less than 1%                             0%
 Sell                                  Sell                                              less than 1%                             0%
1:Percentage of companies under coverage globally within the 12-month rating category.
2:Percentage of companies within the 12-month rating category for which investment banking (IB) services were provided within
the past 12 months.
3:Percentage of companies under coverage globally within the Short-Term rating category.
4:Percentage of companies within the Short-Term rating category for which investment banking (IB) services were provided
within the past 12 months.

Source: UBS. Rating allocations are as of 30 June 2012.
UBS Investment Research: Global Equity Rating Definitions
 UBS 12-Month Rating                   Definition
 Buy                                   FSR is > 6% above the MRA.
 Neutral                               FSR is between -6% and 6% of the MRA.
 Sell                                  FSR is > 6% below the MRA.
 UBS Short-Term Rating                 Definition
                                       Buy: Stock price expected to rise within three months from the time the rating was assigned
 Buy
                                       because of a specific catalyst or event.
                                       Sell: Stock price expected to fall within three months from the time the rating was assigned
 Sell
                                       because of a specific catalyst or event.




                                                                                                                                UBS 11
Marvell Technology Group Ltd. 16 August 2012


KEY DEFINITIONS
 Forecast Stock Return (FSR) is defined as expected percentage price appreciation plus gross dividend yield over the next 12
months.
 Market Return Assumption (MRA) is defined as the one-year local market interest rate plus 5% (a proxy for, and not a
forecast of, the equity risk premium).
 Under Review (UR) Stocks may be flagged as UR by the analyst, indicating that the stock's price target and/or rating are
subject to possible change in the near term, usually in response to an event that may affect the investment case or valuation.
 Short-Term Ratings reflect the expected near-term (up to three months) performance of the stock and do not reflect any
change in the fundamental view or investment case.
Equity Price Targets have an investment horizon of 12 months.

EXCEPTIONS AND SPECIAL CASES
UK and European Investment Fund ratings and definitions are: Buy: Positive on factors such as structure, management,
performance record, discount; Neutral: Neutral on factors such as structure, management, performance record, discount; Sell:
Negative on factors such as structure, management, performance record, discount.
Core Banding Exceptions (CBE): Exceptions to the standard +/-6% bands may be granted by the Investment Review
Committee (IRC). Factors considered by the IRC include the stock's volatility and the credit spread of the respective company's
debt. As a result, stocks deemed to be very high or low risk may be subject to higher or lower bands as they relate to the rating.
When such exceptions apply, they will be identified in the Company Disclosures table in the relevant research piece.



Research analysts contributing to this report who are employed by any non-US affiliate of UBS Securities LLC are not
registered/qualified as research analysts with the NASD and NYSE and therefore are not subject to the restrictions contained in
the NASD and NYSE rules on communications with a subject company, public appearances, and trading securities held by a
research analyst account. The name of each affiliate and analyst employed by that affiliate contributing to this report, if any,
follows.
UBS Securities LLC: Uche Orji; Steven Chin.


Company Disclosures
 Company Name                                  Reuters     12-mo rating Short-term rating                 Price        Price date
                               6, 7,
 Marvell Technology Group Ltd.
 16                                            MRVL.O             Neutral                 N/A        US$12.28       16 Aug 2012

Source: UBS. All prices as of local market close.
Ratings in this table are the most current published ratings prior to this report. They may be more recent than the stock pricing
date

6.      This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-securities
        services are being, or have been, provided.
7.      Within the past 12 months, UBS Securities LLC has received compensation for products and services other than
        investment banking services from this company/entity.
16.     UBS Securities LLC makes a market in the securities and/or ADRs of this company.


Unless otherwise indicated, please refer to the Valuation and Risk sections within the body of this report.




                                                                                                                             UBS 12
Marvell Technology Group Ltd. 16 August 2012


Marvell Technology Group Ltd. (US$)
                                                                                                    Price T arget (US$)                             Stock Price (US$)
             30.0
             25.0
             20.0
             15.0
             10.0
              5.0
              0.0
                01-Jul-07

                            01-Oct-07

                                        01-Jan-08

                                                    01-Apr-08

                                                                01-Jul-08

                                                                            01-Oct-08

                                                                                        01-Jan-09

                                                                                                    01-Apr-09

                                                                                                                01-Jul-09

                                                                                                                            01-Oct-09

                                                                                                                                        01-Jan-10

                                                                                                                                                      01-Apr-10

                                                                                                                                                                  01-Jul-10

                                                                                                                                                                              01-Oct-10

                                                                                                                                                                                          01-Jan-11

                                                                                                                                                                                                      01-Apr-11

                                                                                                                                                                                                                  01-Jul-11

                                                                                                                                                                                                                              01-Oct-11

                                                                                                                                                                                                                                          01-Jan-12

                                                                                                                                                                                                                                                      01-Apr-12

                                                                                                                                                                                                                                                                  01-Jul-12
           Buy 2
        Neutral 2
             Buy
          Neutral
        No Rating


Source: UBS; as of 16 Aug 2012


Note: On August 4, 2007 UBS revised its rating system. (See 'UBS Investment Research: Global Equity Rating Definitions' table
for details). From September 9, 2006 through August 3, 2007 the UBS ratings and their definitions were: Buy 1 = FSR is > 6%
above the MRA, higher degree of predictability; Buy 2 = FSR is > 6% above the MRA, lower degree of predictability; Neutral 1 =
FSR is between -6% and 6% of the MRA, higher degree of predictability; Neutral 2 = FSR is between -6% and 6% of the MRA,
lower degree of predictability; Reduce 1 = FSR is > 6% below the MRA, higher degree of predictability; Reduce 2 = FSR is > 6%
below the MRA, lower degree of predictability. The predictability level indicates an analyst's conviction in the FSR. A
predictability level of '1' means that the analyst's estimate of FSR is in the middle of a narrower, or smaller, range of possibilities.
A predictability level of '2' means that the analyst's estimate of FSR is in the middle of a broader, or larger, range of possibilities.
From October 13, 2003 through September 8, 2006 the percentage band criteria used in the rating system was 10%.




                                                                                                                                                                                                                                                                              UBS 13
Marvell Technology Group Ltd. 16 August 2012




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                                                                                                                                                                     UBS 14
Marvell Technology Group Ltd. 16 August 2012




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