1 confidential | Sigma Designs Inc. confidential | Sigma Designs Inc.

Sigma Corporate Overview

Q2 FY18

September 7, 2017

2 confidential | Sigma Designs Inc.

Safe Harbor Statement

During the course of this presentation, we will provide projections and other forward

looking statements regarding future events or the future financial performance of

Sigma Designs, Inc., including expectations concerning our business strategy and

our Q3 FY18 financial outlook. Such statements are only current expectations and

actual events or results may differ materially. We refer you to Sigma’s filings with the

SEC, particularly our most recent Reports on Forms 10-K, 10-Q and 8-K. These

documents identify important risk factors that could cause actual results to differ

materially from our projections or other forward looking statements.

3 confidential | Sigma Designs Inc.

Sigma Designs

• Founded in 1982

• 35 Years of Innovation

• HQ in Fremont, CA

• ~680 Employees

• Fabless Manufacturing

• NASDAQ: SIGM

A Leading Supplier of Technologies Enabling

Smart Home and IoT Convergence

Connected Smart TV Platforms

IoT Devices

Mobile IoT

Smart Home IoT

Smart Streaming Boxes

Video Connectivity

Smart TV

4 confidential | Sigma Designs Inc.

World Class Customers

5 confidential | Sigma Designs Inc.

Consumer interest creates demands

Connected Smart TV Platforms

Smart City

LTE & Z-Wave

Smart Televisions

- SoC

- FRC

- OTT Software

4K Smart Streaming Boxes

- SoC

- OTT Software

- IPTV Solutions

Video Connectivity

- Powerline

- Coax

Cloud Platforms

- Roku

- Google CAST TV

- Android

6 confidential | Sigma Designs Inc.

11.8

17.620.1

21.3

0.0

5.0

10.0

15.0

20.0

25.0

2016 2017E 2018E 2019E

North America UHD 4K Units (M)

Connected Smart TV

Leading 4K SmartTV Innovator

Source: IHS

Industry First Innovations:

• OS integration for Roku and Google Cast

TVs

• HDR including Dolby Vision

• Dolby ATMOS integrated in SoC, 3D sound

• Single Chip 4K TV SoCs

• Best in class picture quality

Strong penetration In SmartTV Platforms

~20% percent share of North American

SmartTV in FY 2017

• Supporting all VIZIO 4K TVs

• >5 million TVs shipped

VIZIO UHD SKUs grew 100% Y/Y 2015-2016

• >3M units connected streaming 4K content

• Supplier of SoCs for Roku TVs

• >5 million units shipped

7 confidential | Sigma Designs Inc.

Smart Streaming Box Opportunities

- Leveraging STB IP in smart streaming

boxes with very lower power

- Leveraging software that is used in

SmartTVs

- Carrier-Class IP Streaming

- Proven with 12 years of tier-1

deployment

- Strong incumbent position in

IPTV ecosystem

- Pathways To Future TV Convergence

- ONLY provider in NA offering

DTV & STB SoC

Source: IHS, industry estimates

0

5

10

15

20

25

30

35

40

2015 2016 2017 2018

Global OTT Set-top Box ShipmentsUnits Shipped (M)

8 confidential | Sigma Designs Inc.

Home Connectivity

Product Portfolio Business Trends

Extending multimedia content

distribution through any wire in the

Smart Home

− Dominating HPNA market for

IPTV

− Engaged with the largest

power line providers Americas,

Europe and Asia

− Engaged in evaluation of G.hn

with worldwide service

providers

Tier one

service

providers

Cuts install

time by 50%

Over 50M

shipped

Revolutionary

powerline

with

ClearPath™

In

deployment

with service

providers

AT&T

deploying

Industry’s

first

Highest

performance

over coax,

phone or

powerline

Award-

winning

technology

In trials

HomePNA HomePlug AV G.hn

9 confidential | Sigma Designs Inc.

Mobile IoT

IoT Growth Opportunities

Smart Home IoT

10 confidential | Sigma Designs Inc.

Z-Wave – The Leader In IoT Smart Home

• 70% market-share in IoT smart-home

• ~$1B in product sales 2016

• (20M units x $50 ASP)

• ~3B services market in 2016

• (12M panels & GW’s x 12 months

x $20/month

• >70 Million Z-Wave chipsets deployed

• >90% US Market share in traditional

security monitoring providers

• >14% of US homes have Z-Wave

powered products

11 confidential | Sigma Designs Inc.

Smart Home Revenue Expansion

Smart Home Market Revenue Forecast

12 confidential | Sigma Designs Inc.

Z-Wave Leads At Service Providers

25 Service providers

3 Service providers

13 confidential | Sigma Designs Inc.

Industry Leading Product Position

244

CERTIFIED INTEROPERABLE

PRODUCTS

>2100CERTIFIED INTEROPERABLE PRODUCTS

Data as of: [insert date]

14 confidential | Sigma Designs Inc.

Largest Smart Things Ecosystem

5

Devices

45

Devices

94

Devices

15 confidential | Sigma Designs Inc.

Significant Global Footprint

16 confidential | Sigma Designs Inc.

Using standard LTE networks

Complete solution covering Tag to Cloud to end user application

Sigma’s unique patented architecture is designed for:

• An order of magnitude lower power for very long battery life

• Ultra-sensitive geo-location ability – for short range uses

• Smaller size and lower cost – to suit any tracking application

Product introductions

• Formal market entry targeted for late CY17

LTE

GPS

Cloud IoT Manager

End Users

Mobile IoTPenetrating New Markets

17 confidential | Sigma Designs Inc.

Mobile IoTTelecom Carrier’s Driving Mobile Adoption

Carriers facing inescapable commoditization

Must leverage existing, massive LTE investment for growth

Significant Profit Potential

IoT could increase gross profit 50X per Terabyte served

Smartphones ~$5K IoT devices ~$500K

(Typical IoT device uses ~ 0.5Mbyte/mo @ $0.25 ARPU. Smart phone 1GByte @ $10 ARPU)

Unlimited

SMS

Unlimited

Or Cheap

Data

Unlimited

Voice

18 confidential | Sigma Designs Inc.

- Multi-band LTE

- Ultra-low power

- GPS receiver

- Embedded SIM

Mobile IoT Platforms

Tracker End- to- End Solution

4G LTE

OTT DATA

Secure Messaging

Sigma Cloud Core• LTE Stack Control

• GPS Location Engine

• Power Management

• Database Control

• Optional Modules

Devices Users

Modem/TagGPS

Zero Network Changes: OTT Technology, Mass Scalability

CLOUD

End Users

VPN Tunnel

or proprietary

OEM Accounts

Billing Engine

Abstraction Layer

Sigma Provides

Skin-able

End User App

End Users

19 confidential | Sigma Designs Inc.

Satellite

RFID

Industry DrivenDisruption: Lower cost

Sigma Power AdvantageDisruption: Long battery life + small size

+

Asset V

alu

e

100k

Units

100M

units

10B units

10T Units

Cellular

Mobile IoTSigma’s Low Cost/Low Power Solution

Sigma offers the industry lowest power LTE solution

20 confidential | Sigma Designs Inc.

Mobile IoT – Increasing Served Market

0

500

1000

1500

2000

2500

3000

3500

4000

4500

1/1/2016 1/1/2017 1/1/2018 1/1/2019 1/1/2020 1/1/2021

Mobile IoT – Served Market (millions of units)

Health

Auto

Commercial

Backhaul

Tags

Initial focus Tag locators

Telematics market to

reach $80B by 2020

Subsequent configs to

serve more M2M:

− Backhaul (meters,

security, ATM, etc)

− Commercial

− Automotive

− Tele-Health

Total Market 4B units

Source: ABI research

21 confidential | Sigma Designs Inc.

Competitive Advantage

Cat 3 LTE Single or Triple Band

High sensitivity GPS

250 km/hour mobility

Instant real time accessibility

WiFi Location services

Programmable update times

12+ months battery life

24x7 location updates every 25 mins

Onboard sensor support

Aggressive OEM price

Around 38 x 38 x 10mm

22 confidential | Sigma Designs Inc. confidential | Sigma Designs Inc.

Sigma Designs Inc.Financial Summary

23 confidential | Sigma Designs Inc.

Q2 FY18 Results Summary (Non-GAAP)

Revenue

• $39.5M compared with $39.6M in Q1 FY18

• Connected SmartTV $26.1M or 66%

• IoT Devices $13.4M or 34%

Non-GAAP Gross Margin

• 48.1% vs. 47.6% in Q1 FY18

Non-GAAP Operating Loss

• ($7.1M) vs. ($7.9M) in Q1 FY18

Non-GAAP EPS

• ($0.23) vs. ($0.25) in Q1 FY18

Cost Reduction Plan In Place

Executing on plan announced earlier this year. Plan is to reduce cost structure by

~10% on a quarterly run rate basis compared with the prior fiscal year.

Q2 FY18 results reported September 7, 2017

24 confidential | Sigma Designs Inc.

Trended Financial Performance(Non-GAAP)

49.9%

51.0%50.6%

47.6%48.1%

44.0%

46.0%

48.0%

50.0%

52.0%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Gross Margin %

$3.4

$5.3

($4.4)

($7.9)($7.1)($8.0)

($6.0)

($4.0)

($2.0)

$0.0

$2.0

$4.0

$6.0

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Operating Income ($M)

$0.07 $0.09

($0.16)

($0.25)($0.23)

($0.30)

($0.20)

($0.10)

$0.00

$0.10

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

EPS

$8.1 $9.0

($1.3)

($4.8) ($4.5)($6.0)

($4.0)

($2.0)

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

EBITDA ($M)

25 confidential | Sigma Designs Inc.

$51.7 $50.0

$29.7 $27.9 $26.1

$9.5 $12.7

$13.0$11.7 $13.4

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Revenue By Business Unit ($M)

Connected Smart TV Plaforms IoT Devices

Trended Revenue By Market(GAAP)

$62.7

$39.6$42.7

$61.3*

$39.5

*Q2’17 included $0.2M in License revenue

26 confidential | Sigma Designs Inc.

Balance Sheet Summary

Q2 FY17

($M)Metrics

Q2 FY18

($M)Metrics

Cash and Marketable Securities $74.0 $67.5

Accounts Receivable $45.9 68 days $24.9 58 days

Inventory $21.5 5.6 turns $16.1 5.9 turns

Accounts Payable $23.1 $15.6

27 confidential | Sigma Designs Inc.

Q3 FY18 Financial Guidance

* Guidance ranges provided on September 7, 2017 for the period ending October 28, 2017

$ Millions Guidance Ranges*

Revenues $37 million - $40 million

Non-GAAP Gross Margin % 47% – 50%

Non-GAAP Operating Expenses Approximately $25 million

28 confidential | Sigma Designs Inc. confidential | Sigma Designs Inc.

Sigma Corporate Overview

Q1 FY18

June 6, 2017

29 confidential | Sigma Designs Inc.

Reconciliation of GAAP Net Income/(Loss) to Non-GAAP Net Income/(Loss)

July 29, April 29, July 30,

2017 2017 2016

GAAP Net Revenue $ 39,508 $ 39,564 $ 61,316

Items reconciling GAAP Net Revenue to Non-GAAP:

Reversal of rebate - - -

GAAP to Non-GAAP adjustments - - -

Non-GAAP Net Revenue $ 39,508 $ 39,564 $ 61,316

GAAP Cost of Revenue $ 20,688 $ 20,940 $ 31,734

Items reconciling GAAP Cost of Revenue to Non-GAAP:

Stock based compensation expense (54) (57) (74)

Amortization of acquired intangibles (145) (145) (940)

GAAP to Non-GAAP adjustments (199) (202) (1,014)

Non-GAAP Cost of Revenue $ 20,489 $ 20,738 $ 30,720

GAAP Gross Profit $ 18,820 $ 18,624 $ 29,582

GAAP Gross Margin % 47.6% 47.1% 48.2%

Non-GAAP Gross Profit $ 19,019 $ 18,826 $ 30,596

Non-GAAP Gross Margin % 48.1% 47.6% 49.9%

Three months ended

30 confidential | Sigma Designs Inc.

Reconciliation of GAAP Net Income/(Loss) to Non-GAAP Net Income/(Loss) 2 of 2

July 29, April 29, July 30,

2017 2017 2016

GAAP Operating Expenses $ 29,774 $ 32,001 $ 29,895

Items reconciling GAAP Operating Expenses to Non-GAAP:

Stock based compensation expense (1,180) (1,472) (1,677)

Amortization of acquired intangibles (431) (431) (696)

Impairment of IP, mask sets and design tools - (3,006) (300)

Legal and other professional expenses (305) (139) -

Restructuring charges (1,723) (243) -

GAAP to Non-GAAP adjustments (3,639) (5,291) (2,673)

Non-GAAP Operating Expenses $ 26,135 $ 26,710 $ 27,222

GAAP Other Income (Expense) and Tax $ (1,723) $ (1,482) $ (1,409)

Items reconciling GAAP Other Income (Expense) and Tax to Non-GAAP:

Impairment (gain on sale) of privately held instruments, net - - 584

GAAP to Non-GAAP adjustments - - 584

Non-GAAP Other Income (Expense) and Tax $ (1,723) $ (1,482) $ (825)

Non-GAAP Net (loss) income $ (8,839) $ (9,366) $ 2,549

Non-GAAP Net (loss) income per share:

Basic (0.23)$ (0.25)$ 0.07$

Diluted (0.23)$ (0.25)$ 0.07$

Shares used in computing Non-GAAP net (loss) income per share:

Basic 38,289 38,156 37,182

Diluted 38,289 38,156 37,527