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## Chairman’s statement 

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## From left: 

Dialog is focusing on cross-selling a wider range of more complex power management, audio and wireless solutions into a broader range of portable computing devices, including tablets. 

Dialog views Ultrabooks™ as one of the next growth markets for its technologies. 

## 2012 has been another great year for Dialog Semiconductor Plc, with revenue up 47% year-on-year to US$774 million. 

The Company continues its strategy of deepening and broadening relationships with existing and new customers. Dialog is focusing on cross-selling a wider range of more complex power management, audio and wireless solutions into a broader range of portable computing devices. This includes high-end and low-end smartphones, tablets and, in the future, Ultrabooks™, which we view as one of the next growth markets for Dialog. 

People are doing more and more computing on the go using smartphones and tablets. Around 700 million smartphones are believed to have been shipped in 2012, and this is forecast to rise to 1.5 billion by 2016; while tablet purchases are forecast to continue to snowball with unit shipments likely to be around 300 million by 2016 according to the analyst firm IDC. Dialog is well positioned to help its customers meet this market demand. 

Dialog remains committed to outpacing its competitors – not only in terms of the level of innovation and quality control but also financially, where profitability has to be managed carefully, given the competing pressures of the price expectation of volume customers and supply constraints. 

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Dialog’s management team have aspirations to achieve a mid-term goal of over US$1 billion in annual revenues. Despite continued economic uncertainty Dialog continues to see strong demand for its technologies and is making good progress to this target. 

The Company continues to put in place the necessary infrastructure to support high levels of growth on a global basis. In this context there is considerable competition for the top talent that Dialog needs to achieve these goals. Accordingly, ever mindful of its needs to be corporate governance compliant, Dialog has to be best-in-class in performance-driven remuneration schemes. 

The Board recognises, with the increasing scale and value of the business, the importance of seeking to achieve best practice in corporate governance. This has seen a much greater focus for the Board in 2012 and will continue to be so in 2013. A review of the Corporate Governance statement and Directors’ remuneration report in this annual report, of themselves of greater detail and transparency over previous years, set out the enhanced focus in this area and the greater professionalism being brought to the subject. 

Despite the troubled economic environment, I remain confident about the future growth prospects of the Company in 2013 and thank you for your continued support. 

Greg Reyes Chairman 

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