Slide 1: Executing a Multi-Year Transformation to Drive Long-Term Shareholder Value
Executing a Multi-Year Transformation to Drive Long-Term Shareholder Value APRIL 30, 2024 Exhibit 1
Slide 2: What Is This Proxy Fight About?
Xperi recommends that shareholders vote for the incumbent slate of directors at the 2024 Annual Meeting What is This Proxy Fight About? Xperi is a leading product-focused entertainment technology company, creating extraordinary media experiences at home and on the go for millions of consumers around
Slide 3: Table of Contents
Table of Contents I Executive Summary 4 II We Have Transformed Our Business in Response to Industry Disruption 16 III We Have the Right Strategy to Drive Growth and Value 31 IV Our Growth Strategy Is Delivering Results 41 V Our Board and Management Team Are Best Positioned to Oversee Our Strategy 53
Slide 4: Section One: Executive Summary
Section One Executive Summary
Slide 5: Executive Summary
Executive Summary Xperi’s predecessor, Tessera, was facing industry-driven challenges; long-term prospects had diminished The Board took action to transform, reconfigure and reposition the Company The separation of Xperi and Adeia in 2022 provided the businesses the best opportunity to thrive For de
Slide 6: Executive Summary (Continued)
Executive Summary (Continued) Xperi’s business is gaining momentum and growing Rubric’s candidates do not bring any skills that are not already well represented; their election would weaken the Board Shareholders should support Xperi’s incumbent Board and leadership team Xperi is focused on leveragi
Slide 7: Overview of Xperi Inc.
Xperi invents, develops and delivers technologies that enable extraordinary entertainment experiences Overview of Xperi Inc. (NYSE: XPER) 2023 Revenue by Product Category ($M)1 2023 Revenue by Geography ($M)1 Summary Data1,2 Through a series of transactions, including a transformative merger with Ti
Slide 8: History of Xperi Inc. and Its Predecessors
Xperi today is the result of several mergers, acquisitions and separations intended to complement and strengthen product offerings and reposition the Company for long-term growth History of Xperi Inc. and Its Predecessors 1990 Tessera, Inc. founded as a developer of semiconductor packaging technolog
Slide 9: We Have Transformed and Strengthened the Company
We have continued to take action to reposition Xperi as we prepared for and executed the separation We Have Transformed and Strengthened the Company 2020 2021 2022 2023 2024 Xperi Holding Xperi Inc. Strategic Changes Completed the merger with TiVo to create a global leader in entertainment technolog
Slide 10: Our Actions Are Driving Growth and Strong Performance
We are continuing to make progress on increasing revenue and improving profitability Our Actions Are Driving Growth and Strong Performance Year-Over-Year Revenue Growth1 Adjusted EBITDA1,2 EV/FY+1 Multiple3 Through Q4 2023, we have delivered five consecutive quarters of year-over-year revenue growth
Slide 11: Our Actions Are Driving Growth and Outperformance
Our recent total shareholder returns generally exceed those of our peers Our Actions Are Driving Growth and Outperformance (Continued) Source: FactSet. Data as of April 29, 2024. “ISS Peers” include A10 Networks, Adeia, Appian, Blackbaud, BlackBerry, Commvault Systems, Everbridge, InterDigital, OneS
Slide 12: We Expect Our Momentum to Continue
We are expecting continued growth and margin expansion in 2024 as we advance our business transformation We Expect Our Momentum to Continue Revenue ($M)1,2 Adjusted EBITDA Margin1,2 Excluding the impact from the sale of our AutoSense/Imaging business, we expect to grow revenue for the second consecu
Slide 13: Rubric Has No New Substantive Suggestions for Improving Xperi
Rubric Has No New Substantive Suggestions for Improving Xperi Although Rubric is seeking to replace half of our independent directors, it has yet to present a meaningful idea for improving our business that Xperi is not already pursuing Category of Rubric’s Suggestions Rubric’s Suggestions that Xper
Slide 14: Rubric's Nominees Will Not Add Value
Rubric’s nominees would not bring any relevant experience that our incumbent directors do not already possess Rubric’s Nominees Will Not Add Value Deborah Conrad Retired Thomas Lacey Private Semiconductor Company Director Marketing experience is duplicative of current director Chris Seams (former he
Slide 15: Shareholders Should Support Xperi's Board of Directors
Shareholders Should Support Xperi’s Board of Directors Our Board Has Driven Change Our Board Is Best Positioned to Continue to Oversee Our Strategy Our Board has been executing a multi-year transformation to reposition Xperi’s business in response to shifting industry dynamics Over the course of thi
Slide 16: Section Two: We Have Transformed Our Business in Response to Industry Disruption
Section Two We Have Transformed Our Business in Response to Industry Disruption
Slide 17: Tessera's IP Business Was Facing Challenges Under Prior Management
Legal, regulatory and other developments rendered Tessera’s IP business less viable than it once was Tessera’s IP Business Was Facing Challenges Under Prior Management The legal environment shifted and IP licensing became more challenging ASC 606 significantly changed revenue recognition standards M
Slide 18: Tessera's IP Business Was Facing Challenges (Cont'd)
After the IP licensing outlook changed dramatically, companies needed to adapt to ensure long-term viability Tessera’s IP Business Was Facing Challenges Under Prior Management (Cont’d) [The] golden age of public patent licensing companies was short lived largely because of the implementation of the
Slide 19: We Are Executing Multi-Year Transformation to Strengthen the Business
We have been executing a transformation to ensure the Company’s long-term viability We Are Executing Multi-Year Transformation to Strengthen the Business Accelerated the Shift (2017) Transformed the Business (2017-2022) Optimized the Business (2022-Present) Completed integration of Tessera and DTS t
Slide 20: We Transitioned Leadership Amid a Challenged Environment
By the end of Mr. Lacey’s tenure, and afterward, our core IP licensing business was under pressure and our financial performance was deteriorating; the new CEO, Mr. Kirchner, was tasked with repositioning the business We Transitioned Leadership Amid a Challenged Environment Mr. Lacey was appointed C
Slide 21: We Merged with TiVo to Create a Stronger Foundation
The merger of Xperi and TiVo combined two leading product businesses and created a foundation for the IP licensing business with TiVo’s media IP to create a scaled, diversified company that was better positioned to compete in an evolving market We Merged with TiVo to Create a Stronger Foundation Sta
Slide 22: Mr. Lacey Tried (Unsuccessfully) to Disrupt this Important Transaction
Mr. Lacey made a highly conditional, unfinanced and unsolicited bid to buy our predecessor company after we had already announced the TiVo merger and were subject to a no-shop clause Mr. Lacey Tried (Unsuccessfully) to Disrupt this Important Transaction As the unsolicited acquisition proposal from M
Slide 23: Our Separation Helped Optimize Xperi as a Standalone Business
The separation of Adeia and Xperi created two focused companies better positioned for long-term growth Our Separation Helped Optimize Xperi as a Standalone Business The combination of Legacy Xperi and TiVo expanded the product and IP licensing businesses, but having both businesses under one umbrell
Slide 24: Our Separation Helped Maximize Overall Value
The separation was supported by a compelling strategic rationale and has driven value for shareholders Our Separation Helped Maximize Overall Value Simplified operations and enhanced strategic clarity and management focus of each entity Facilitated the development of capital allocation strategies ba
Slide 25: Analysts Understood the Potential Value of the Separation
Analysts Understood the Potential Value of the Separation The separation of the two businesses should allow the markets to appropriately price each stock. This should lead to a higher overall valuation compared to when the companies were together.…”1 Overall, we see this separation as a positive ste
Slide 26: We Have Optimized Our Business Configuration Over Time
We shifted our business configuration to adapt to industry transitions; as a result, Xperi today is very different from the Tessera that Mr. Lacey led as CEO We Have Optimized Our Business Configuration Over Time Businesses Mr. Lacey led Now part of Xperi Now part of Adeia Subsequently sold or disco
Slide 27: It Took Time for Our Stock to Season Post-Separation
There was a natural period of volatility before the relative values of each company settled following the spin-off It Took Time for Our Stock to “Season” Post-Separation… Source: FactSet. Data runs from October 3, 2022 to December 31, 2022. Xperi did not have any sell-side research coverage until a
Slide 28: We Continue to Strengthen and Reposition the Company: AutoSense
In January 2024, we divested AutoSense after the long-term opportunity of that business in our hands had diminished We Continue to Strengthen and Reposition the Company We began developing AutoSense in 2017 as a means of leveraging our imaging expertise and capturing the emerging opportunity in auto
Slide 29: Evaluating Strategic Alternatives for Perceive
We are evaluating strategic alternatives for Perceive to help ensure that we are maximizing the opportunity of this valuable asset We Continue to Strengthen and Reposition the Company (Cont’d) In Q1 2020, we announced a new subsidiary, Perceive, which was created to develop edge AI solutions Perceiv
Slide 30: Analysts Are Supportive of Our Recent Strategic Initiatives
Analysts Are Supportive of Our Recent Strategic Initiatives The sale of AutoSense and the imaging product should enhance the business focus and operating structure.”1 [The] divestiture of AutoSense improves the profit profile… While the return for the asset requires patience, it’s logical to remove
Slide 31: Section Three: We Have the Right Strategy to Drive Growth and Value
Section Three We Have the Right Strategy to Drive Growth and Value
Slide 32: Today, We Have Four Attractive and Growing Businesses
Our technology powers smart devices, connected cars, entertainment experiences and more, driving value for our partners, customers and consumers Today, We Have Four Attractive and Growing Businesses Pay-TV Consumer Electronics Connected Car Media Platform Provides user experience solutions for TV co
Slide 33: Our Customers Include the World's Most Recognized Brands
We serve many of the world’s leading automobile manufacturers and consumer audio, video and gaming technology companies, and we are continuing to grow our customer base Our Customers Include the World’s Most Recognized Brands Pay-TV Consumer Electronics Connected Car Media Platform 1 2 3 4
Slide 34: We Are Focused on Augmenting Our Solution Set
We are prioritizing growth opportunities where we see strong potential and differentiation We Are Focused on Augmenting Our Solution Set… Core Solutions Growth Solutions Search & Discovery Classic Guides Consumer Hardware & Subs TiVo Video-Over-Broadband (IPTV Streaming) DTS:X IMAX® Enhanced Audio H
Slide 35: Which We Believe Will Drive Significant Growth
We expect our most attractive opportunities to accelerate significant revenue growth over the next few years …Which We Believe Will Drive Significant Growth Customer shift to Streaming Proliferation of AutoStage automotive solutions Monetization revenue growth from TiVo OS Core products and services
Slide 36: Key Growth Opportunity: IPTV Streaming
Key Growth Opportunity: IPTV Streaming A Global Market for IPTV ($B)1 Consumer preferences for video content delivery are rapidly shifting from linear broadcast to over-the-top platforms The proliferation of streaming services, growing availability of high-speed internet and increasing demand for vi
Slide 37: Key Growth Opportunity: In-Cabin Entertainment
Key Growth Opportunity: In-Cabin Entertainment B Infotainment Market ($B)1 The in-vehicle infotainment market is expanding rapidly as more vehicles connect to the Internet, turning the cabin into a personal entertainment space and driving sustained demand for infotainment More than 70% of new vehicl
Slide 38: Key Growth Opportunity: Connected TV Advertising
Key Growth Opportunity: Connected TV Advertising C Global Ad Spend on CTV In-stream Ads ($B)1 There is still a significant gap between viewership and ad spend on streaming, but that gap is expected to narrow Large technology companies see smart TVs and the Connected TV (“CTV”) advertising opportunit
Slide 39: We Expect These Markets to Drive Long-Term Growth
We expect our key markets to deliver approximately $200 million in incremental revenue in 2026 We Expect These Markets to Drive Long-Term Growth A B C IPTV Streaming In-Cabin Entertainment Connected TV Advertising / Media Platform FY 2023 2026E FY 2023 2026E FY 2023 2026E Active Footprint 1.9M >2.8M
Slide 40: We Expect Growth to Lead to Higher Margins
We believe that operating leverage from increased growth along with reduced burn and cost savings from the completion of transformation and separation activities will drive margin expansion We Expect Growth to Lead to Higher Margins Reduced burn on high-growth initiatives Completion of cost transfor
Slide 41: Section Four: Our Growth Strategy Is Delivering Results
Section Four Our Growth Strategy Is Delivering Results
Slide 42: We Are Delivering Results Across Each of Our Businesses
We are executing well across our organization, and our recent strategic milestones position Xperi for future growth We Are Delivering Results Across Each of Our Businesses Recently launched TiVo Broadband and TiVo+ free ad-supported TV and signed four new operators: Buckeye Broadband, Blue Stream Fi
Slide 43: Offsetting the Secular Decline of Core Pay TV with IPTV Growth
We Are Offsetting the Secular Decline of Core Pay TV with IPTV Growth 1 Video-Over-Broadband Subscribers (M)1 Video-Over-Broadband Revenue ($M)1 Our core Pay TV business is expected to decline at a predictable rate of low-single digits every year Consumer preference has shifted away from linear TV t
Slide 44: We Are Leveraging Our Core Audio Expertise
We Are Leveraging Our Core Audio Expertise 2 Consumer Electronics Revenue ($M)1 With the proliferation of streaming platforms, consumers are showing increased demand for cinematic-quality home viewing experiences We enable top-tier entertainment at home with DTS, Play-Fi and IMAX® Enhanced, leveragi
Slide 45: Capturing Strong In-Cabin Infotainment Growth in Connected Car
We Are Capturing Strong In-Cabin Infotainment Growth in Connected Car 3 Installed Base for DTS AutoStage (M) Consumers and regulators have increasing expectations for technology-enabled vehicles, driving growth in the projected connected car market 90%+ of new vehicles are projected to be broadband-
Slide 46: Building Scale for Our Independent Media Platform, TiVo OS
We Are Building Scale for Our Independent Media Platform, TiVo OS 4 2023 TV Production by Manufacturer (M)1 Number of OEMs Integrating TiVo OS2 Xperi Customer Our independent media platform is core to our Pay TV and Connected Car products, powering the entertainment offerings across our portfolio Ti
Slide 47: We Have Set Ambitious Strategic Goals for 2024
We are challenging our business leaders to deliver on key growth initiatives and continue driving our business transformation efforts in 2024 We Have Set Ambitious Strategic Goals for 2024… IPTV Streaming In-Cabin Entertainment Connected TV Advertising Our goal is to deliver more than 10 additional
Slide 48: And We Expect Our Momentum to Continue
…And We Expect Our Momentum to Continue We are expecting continued growth and margin expansion in 2024 as we advance our business transformation Revenue ($M)1,2 Adjusted EBITDA Margin1,2 Excluding the impact from the sale of our AutoSense/Imaging business, we expect to grow revenue for the second co
Slide 49: Apart from the First Quarter Post-Spin, Xperi Has Outperformed
Apart from the First Quarter Post-Spin, Xperi Has Outperformed Source: FactSet. Data runs from October 3, 2022 to December 31, 2022. Total shareholder return is indexed to 100. Source: FactSet. Data runs from December 31, 2022 to April 29, 2024. “Performance Peers” refer to the comparable public com
Slide 50: The Market Has Recognized Our Progress
We have generally outperformed our peers as we have advanced our transformation as an independent company The Market Has Recognized Our Progress Source: FactSet. Data as of April 29, 2024. “ISS Peers” include A10 Networks, Adeia, Appian, Blackbaud, BlackBerry, Commvault Systems, Everbridge, InterDig
Slide 51: We Have Been One of the Best-Performing Companies in Our Peer Group
We have been one of the best-performing companies in our peer group The Market Has Recognized Our Progress (Continued) Year-to-Date Total Shareholder Return1 1-Year Total Shareholder Return1 Total Shareholder Return Since 12/31/221 Source: FactSet. Data as of April 29, 2024. Peers refer to the compa
Slide 52: Analysts Have Been Supportive of Our Transformation
Analysts have been supportive of our transformation and have noted our momentum The Market Has Recognized Our Progress (Continued) Source: BWS Financial Research Note, February 29, 2024. Source: Craig-Hallum Capital Group Research Note, February 29, 2024. Source: Maxim Group Research Note, February
Slide 53: Section Five: Our Board and Management Team Are Best Positioned to Oversee Our Strategy
Section Five Our Board and Management Team Are Best Positioned to Oversee Our Strategy
Slide 54: We Have a Skilled Management Team
We Have a Skilled Management Team Jon Kirchner Robert Andersen Geir Skaaden Matt Milne Chief Executive Officer Chief Financial Officer Chief Products and Services Officer Chief Revenue Officer International business, M&A, accounting, media technology and business integration expertise CEO of Xperi s
Slide 55: We Have a Highly Experienced and Engaged Board
We Have a Highly Experienced and Engaged Board David Habiger Chair Jon Kirchner CEO Darcy Antonellis Independent Director CEO of J.D. Power Former CEO of Textura Corporation, NDS Group and Sonic Solutions Board Chair and Director at Reddit Director on Chicago Federal Reserve Board CEO of Xperi Forme
Slide 56: Our Board Has the Right Skills and Experience to Direct Our Strategy
Our directors bring a balanced mix of skills, backgrounds and perspectives to oversee the execution of our strategy Our Board Has the Right Skills and Experience to Direct Our Strategy David Habiger Jon Kirchner Darcy Antonellis Laura Durr Christopher Seams Public Board Experience P P P P P 5 of 5 N
Slide 57: Our Corporate Governance Profile Supports Effective Oversight
We are continuing to evolve our governance framework to promote accountability Our Corporate Governance Profile Supports Effective Oversight Diverse, Experienced and Independent Board Accountability To Shareholders Alignment With Shareholders Directors have deep executive-level experience in media a
Slide 58: Executive Compensation is Aligned with Performance
Executive Compensation is Aligned with Performance Pay-for-Performance Alignment Annual and long-term incentive compensation subject to pre-established performance goals Goals are aligned with key corporate, operational and strategic objectives Corporate performance goals for 2023 reflected key fina
Slide 59: Executive Compensation is Aligned with Performance (Continued)
Executive Compensation is Aligned with Performance (Continued) Source: Xperi Definitive Proxy Statement, filed with the SEC on April 17, 2024; Company documents. Summary Compensation Table vs. Realized Compensation1 In 2023, 89% of our CEO’s target compensation was variable / at-risk PSUs represent
Slide 60: Executive Compensation is Aligned with Performance (Continued)
Executive Compensation is Aligned with Performance (Continued) Source: SEC filings. Based on last fiscal year as of April 17, 2024. “ISS Peers” include A10 Networks, Adeia, Appian, Blackbaud, BlackBerry, Commvault Systems, Everbridge, InterDigital, OneSpan, Rimini Street, SecureWorks, SolarWinds, Up
Slide 61: Our Dilution Has Been In-Line with or Below Our Peers
Our Dilution Has Been In-Line with or Below Our Peers Source: FactSet and Xperi Inc. Form 10-Ks for the years ended December 31, 2022 and December 31, 2023. 2022-2023 Diluted Share Count Growth1 XPER
Slide 62: Section Six: Rubric's Proxy Contest Is Unnecessary and Distracting
Section Six Rubric’s Proxy Contest Is Unnecessary and Distracting
Slide 63: Rubric's Campaign Is Unnecessary and Distracting
Rubric’s Campaign Is Unnecessary and Distracting Despite our efforts to engage constructively, Rubric refuses to accept a reasonable resolution and is pressing forward with a disruptive proxy contest Members of our Board and leadership team have engaged constructively with Rubric and its predecessor
Slide 64: We Have Engaged Extensively with Rubric
We have been engaging regularly with Rubric for many years; it was only recently that they demanded changes to Board composition We Have Engaged Extensively with Rubric Oct. 1, 2022 Legacy Xperi completed its separation into two businesses, Xperi and Adeia Feb. 11, 2015 The Tessera management team f
Slide 65: Rubric Has Not Negotiated in Good Faith
Rubric Has Not Negotiated in Good Faith Rubric has refused to accept reasonable resolutions that would have accomplished its aim of Board change Rubric’s Initial Proposal Xperi’s Initial Proposal Rubric’s Second Proposal Xperi’s Second Proposal New Rubric Candidates 2 0 2 1 (Deborah Conrad) New Boar
Slide 66: Rubric Has No New Substantive Suggestions for Improving Xperi
Rubric Has No New Substantive Suggestions for Improving Xperi Although Rubric is seeking to replace half of our independent directors, it has yet to present a meaningful idea for improving our business that Xperi is not already pursuing Category of Rubric’s Suggestions Rubric’s Suggestions that Xper
Slide 67: We Are Already Addressing Many of Rubric's Concerns
We Are Already Addressing Many of Rubric’s Concerns Rubric’s Concern / Goal Xperi’s Action “[S]ell a partial stake in Perceive in order to provide investors with a metric by which to value Perceive’s potential, while derisking some of the financial drag.” We announced that we have engaged a financia
Slide 68: Rubric's Nominees Are Not Additive to the Board
Rubric’s Nominees Are Not Additive to the Board Concerns Key Questions Tom Lacey Oversaw significant deterioration in EBITDA, EPS and ROIC during his tenure as CEO at Tessera / Legacy Xperi1 Majority of professional experience is in semiconductor technology; the businesses that Mr. Lacey ran are no
Slide 69: Rubric's Nominees Are Former Colleagues and Close Friends
Rubric’s Nominees Are Former Colleagues and Close Friends Ms. Conrad and Mr. Lacey have a close personal and professional relationship that goes back many years to their time together at Intel Source: Interview Between Deborah Conrad and Xperi Directors, February 16, 2024. Mr. Lacey served as a nomi
Slide 70: Rubric's Nominees Are Underinvested
Rubric’s Nominees Are Underinvested Rubric claims Mr. Lacey would “bring an owner’s perspective to the boardroom,” but he owns little stock relative to the incumbent directors, and Ms. Conrad owns no stock at all Source: Rubric Definitive Proxy Statement, filed with the SEC on April 17, 2024; Xperi
Slide 71: Rubric Has Disrupted Our Efforts to Augment Our Board
The Board has identified two new highly qualified candidates with deep digital media and capital allocation expertise, but we have been unable to appoint them due to Rubric’s proxy contest Rubric Has Disrupted Our Efforts to Augment Our Board In connection with and following the separation, the Boar
Slide 72: Board-Identified Candidates Are Superior to Rubric's
Xperi’s Board-Identified Candidates Are Superior to Rubric’s Background Diverse CEO/ Senior Leadership Experience R&D Experience M&A Experience Finance & Accounting Technology & Innovation Media & Entertainment Content Monetization Sales & Marketing Public Board Experience Board-Identified Candidate
Slide 73: Rubric's Campaign Risks Displacing Key Board Experience: David Habiger
Rubric’s Campaign Risks Displacing Key Board Experience David Habiger Independent Chair Compensation Committee _____ Seasoned consumer and technology sector executive with expertise in digital media and automotive software Appointed Chair of the Board of Xperi in October 2022 Previously, Mr. Habiger
Slide 74: Rubric's Campaign Risks Displacing Key Board Experience: Darcy Antonellis
Rubric’s Campaign Risks Displacing Key Board Experience Darcy Antonellis Independent Director Nom/Gov Committee (Chair) Audit Committee Compensation Committee _____ Adept media executive with decades of experience in entertainment technology, operations and content monetization Appointed director of
Slide 75: The Election of Rubric's Nominees Would Not Be Additive
The Election of Rubric’s Nominees Would Not Be Additive Diverse CEO/ Senior Leadership Experience R&D Experience M&A Experience Finance & Accounting Technology & Innovation Media & Entertainment Content Monetization Sales & Marketing Public Board Experience Candidates Targeted by Rubric Darcy Antone
Slide 76: Rubric's Claims Are Misleading
Rubric’s Claims Are Misleading Rubric’s Misleading Claim1 Xperi’s Response “Since the completion of the Spin-Off, Xperi shares have materially underperformed any comparable benchmark.” Although Xperi has underperformed for the 19-month period since the Spin-Off, the underperformance was in the first
Slide 77: Rubric's Claims Are Misleading (Continued)
Rubric’s Claims Are Misleading (Continued) Rubric’s Misleading Claim1 Xperi’s Response “Xperi did not see fit to provide a peer group… seemingly the beginning of an unfortunate trend of the Company’s apparent aversion to any sort of performance-based evaluation.” Rubric mischaracterizes the reason f
Slide 78: Rubric's Claims Are Misleading (Continued)
Rubric’s Claims Are Misleading (Continued) Rubric’s Misleading Claim1 Xperi’s Response “Unbeknownst to stockholders, Xperi’s former parent had been spending upwards of $20 million per year to incubate an AI startup, apparently without regard to cost of capital.” Xperi’s former parent communicated th
Slide 79: Rubric's Claims Are Misleading (Continued)
Rubric’s Claims Are Misleading (Continued) Rubric’s Misleading Claim1 Xperi’s Response “[Mr. Lacey’s] tenure [at Tessera] was marked by fiscal discipline and careful capital allocation, the result of which was annual stockholder returns that were double the rate of the Russell 3000 (20% vs. 10% CAGR
Slide 80: Rubric's Claims Are Misleading (Continued)
Rubric’s Claims Are Misleading (Continued) Rubric’s Misleading Claim Xperi’s Response “In 2023, the Company issued approximately 9% of its diluted share count to insiders in the form of RSUs.”1 Xperi’s fully diluted share count increased by 2.3% in 2023, which is below the median of our peer group o
Slide 81: Rubric's Claims Are Misleading (Continued)
Rubric’s Claims Are Misleading (Continued) Rubric’s Misleading Claim1 Xperi’s Response “Xperi’s ‘constructive’ engagement… consists of offering no Board consideration to either of Rubric’s qualified candidates” Every one of our directors interviewed each of Rubric’s candidates; each of the discussio
Slide 82: Rubric's Claims Are Misleading (Continued)
Rubric’s Claims Are Misleading (Continued) Rubric’s Misleading Claim1 Xperi’s Response “Xperi has spent at least $100 million funding Perceive with no apparent return to date” Our cumulative investment in Perceive is significantly less than $100 million We announced in the third quarter of 2023 that
Slide 83: Rubric's Claims Are Misleading (Continued)
Rubric’s Claims Are Misleading (Continued) Rubric’s Misleading Claim1 Xperi’s Response “Our director slate has direct experience evaluating novel technology… Many current directors do not” Rubric wildly understates the experience of Ms. Antonellis and Mr. Habiger, which includes decades of experienc
Slide 84: Section Seven: Conclusion
Section Seven Conclusion
Slide 85: Xperi Shareholders Should Support the Board's Nominees
Xperi Shareholders Should Support the Board’s Nominees Our Board Has Transformed and Repositioned the Business Our Strategy Is Delivering Results, and the Market Is Recognizing Our Progress Rubric’s Campaign Is Unnecessary and Risks Weakening the Board Tessera’s core IP licensing business faced sign
Slide 86: Vote the BLUE Proxy Card for Xperi's Director Nominees
Vote the BLUE Proxy Card for Xperi’s Director Nominees We strongly urge shareholders to vote the BLUE proxy card for our highly qualified and experienced nominees and withhold on Rubric’s candidates to support the continued execution of our strategy that is delivering results Brokers and Banks: (203
Slide 87: Appendix: Peer Group and Public IP Sector
Appendix Peer Group and Public IP Sector
Slide 88: Performance Peer Group
Performance Peer Group We compare our performance against a peer group of publicly-traded companies with similar operations, end markets and customers Company Market Cap ($M)1 Enterprise Value ($M)1 Employees1 Xperi Inc $475 $411 2,100 Amdocs Limited $9,888 $10,134 30,695 Brightcove Inc. $72 $75 671
Slide 89: Public IP Sector
Public IP Sector Company Market Cap ($M)1 Enterprise Value ($M)1 Notes Universal Display $7,686 $7,228 Has benefitted from significant growth in OLED screens over the last decade Rambus $6,567 $6,311 Increasing demand in data center has driven consistent revenue growth Marathon Patent (n/k/a Maratho
Slide 90: Appendix: Director Biographies
Appendix Director Biographies
Slide 91: Director Biographies: David Habiger
Director Biographies DIRECTOR CURRENT & PAST AFFILIATIONS EXPERIENCE David Habiger Independent Chair Since 2022 Seasoned consumer and technology sector executive with particular expertise in digital media and automotive software Track record of leading technology companies through strategic transact
Slide 92: Director Biographies: Jon Kirchner
DIRECTOR CURRENT & PAST AFFILIATIONS EXPERIENCE Jon Kirchner CEO and Director Since 2022 Leader in the technology space for 30 years, with extensive experience building licensing and international growth businesses Recognized as a “Leader in Emerging Entertainment” by the Producers Guild of America
Slide 93: Director Biographies: Darcy Antonellis
DIRECTOR CURRENT & PAST AFFILIATIONS EXPERIENCE Darcy Antonellis Independent Director Since 2022 Experienced public and private company director and adept leader with decades of experience in media technology, operations and content monetization Three-time Emmy award-winner for achievements in platf
Slide 94: Director Biographies: Laura Durr
DIRECTOR CURRENT & PAST AFFILIATIONS EXPERIENCE Laura Durr Independent Director Since 2022 Decades of experience managing complex financial strategy and accounting for various sized technology companies Extensive executive leadership, board service, operational and advisory experience at a range of
Slide 95: Director Biographies: Christopher Seams
DIRECTOR CURRENT & PAST AFFILIATIONS EXPERIENCE Christopher Seams Independent Director Since 2022 Experienced public company director and electronics industry executive with deep expertise in product management, sales and marketing and operations Senior Member, Institute of Electrical and Electronic
Slide 96: Appendix: Non-GAAP Reconciliations and Revenue Information
Appendix Non-GAAP Reconciliations and Revenue Information
Slide 97: Statement About Non-GAAP Financial Measures
Statement About Non-GAAP Financial Measures In addition to disclosing financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company’s presentation contains non-GAAP financial measures adjusted for either one-time or ongoing non-cash acquired inta
Slide 98: Reconciliation of Adjusted EBITDA Q4 2022-Q4 2023
Reconciliation of Adjusted EBITDA Q4 2022-Q4 2023 Fiscal Quarter ($ in millions) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 GAAP Net Loss ($298.0) ($32.9) ($39.4) ($42.1) ($25.3) Adjustments: (+) Interest Expense 0.8 0.8 0.8 0.8 0.8 (+/-) Income Tax Provision (Benefit) 1.1 (0.3) 5.1 9.7 (4.4) (+) Depre
Slide 99: Reconciliation of Adjusted EBITDA FY 2022-2023
Reconciliation of Adjusted EBITDA FY 2022-2023 Fiscal Year ($ in millions) 2022 2023 GAAP Net Loss ($761.2) ($139.7) Adjustments: (+) Interest Expense 1.6 3.1 (+/-) Income Tax Provision (Benefit) 13.6 10.0 (+) Depreciation Expense 20.5 16.6 (+) Amortization Expense 64.1 61.5 EBITDA ($661.4) ($48.4)
Slide 100: Revenue Information
Revenue Information As Reported Revenue Fiscal Year ($ in millions) 2022 2023 Pay TV $249.5 $244.7 Consumer Electronics 128.4 132.4 Connected Car 84.2 94.9 Media Platforms 40.2 49.4 Total Revenue $502.3 $521.3 Revenue Excluding AutoSense/Imaging Fiscal Year ($ in millions) 2022 2023 Pay TV $249.5 $2
Slide 101: Appendix: Important Information
Appendix Important Information
Slide 102: Important Information
Important Information Xperi Inc. (the “Company”), its directors and certain of its executive officers are participants in the solicitation of proxies from the Company’s stockholders in connection with its 2024 Annual Meeting of Stockholders (the “Annual Meeting”). The Company filed its definitive pr
Slide 103: Cautionary Note Regarding Forward Looking Statements
Cautionary Note Regarding Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of historical fact should be considered
Slide 104: Thank You
Thank You Exhibit 2