Interdigital, Inc. · NASDAQ:IDCC
Interdigital — Shareholder Meeting (June 2022)
18 slides from Interdigital's shareholder meeting presentation, Jun 1, 2022
Slide 1: Annual Shareholder Meeting
Annual Shareholder Meeting June 1, 2022
Slide 2: Disclaimers
Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Securities Act”). Such statements include information regarding our current beliefs, plans and expectations, includi
Slide 3: Liren Chen, President & Chief Executive Officer
Liren Chen President & Chief Executive Officer ©2022 InterDigital, Inc. All Rights Reserved. 6/17/2022 3
Slide 4: Market Opportunity and Investment Highlights
Market Opportunity ~$650M recurring revenue opportunity in existing markets (smartphones and consumer electronics) and horizontal technologies enable growth into new markets (automotive, IoT and cloud services) with connectivity & video applications Deep Industry Knowledge and Expertise WE INVENT TH
Slide 5: 50 Years of Research and Innovation
50 Years of Research and Innovation Pioneering research integral to the evolution of cellular wireless and video innovation since 1972 Consistently invested >20% of recurring revenue in R&D Over 55% of our employees are engineers, ~90% of whom hold advanced degrees (including ~45% of whom hold docto
Slide 6: Ongoing Licensing Momentum
Ongoing Licensing Momentum 13 ~800M >6B New licenses in ‘21, Estimated licensed Licensed devices more than double ‘20 devices in 2021 in the past 10 years © 2022 InterDigital, Inc. All Rights Reserved. 6/17/2022 6
Slide 7: Recognized Global Innovation Leader
Recognized Global Innovation Leader LexisNexis placed InterDigital amongst the World’s 100 Most Innovative Businesses. Innovation Momentum 2022: The Global Top 100, specifically recognized companies with “exceptional technology relevance for the future and those outperforming their peers” ©2022 Inte
Slide 8: A Patent Portfolio That Combines Breadth and Depth
A Patent Portfolio That Combines Breadth and Depth >28,000 Assets Wireless Video Product Features & Apps DTV Broadcast & Home Network ©2022 InterDigital, Inc. All Rights Reserved. 6/17/2022 8
Slide 9: Recognized Leader in 5G Patent Strength
Recognized Leader in 5G Patent Strength InterDigital ranks highest among the leading 5G patent holders for Patent Quality by an independent third party1 1 Patentsight Mar 2022 ©2022 InterDigital, Inc. All Rights Reserved. 6/17/2022 9
Slide 10: A History of Long-Term & New Customers
A History of Long-Term & New Customers Many of our ~80 customers have been licensed for 15 years or more Very strong history of renewals, once licensed key OEMs tend to stay licensed * * * * 0 0 5 8 10 YEARS AS INTERDIGITAL 15 LICENCEE 20 23 25 30 30 Apple and Samsung have been licensed since before
Slide 11: Recent Revenue Growth
Recent Revenue Growth $425M $359M $319M $307M 2018 2019 2020 2021 Our revenue has grown steadily, driven by increasing business momentum ©2022 InterDigital, Inc. All Rights Reserved. 6/17/2022 11
Slide 12: 2021 Highlights
2021 Highlights $425M 13 $359M $208M 6 $155M $71M $55M 2020 2021 2020 2021 2020 2021 2020 2021 New Licenses Revenue Operating Income Adjusted EBITDA* >2X 19% 29% 34% * Please see Appendix for Adjusted EBITDA reconciliation ©2022 InterDigital, Inc. All Rights Reserved. 6/17/2022 12
Slide 13: Q1 2022 Highlights
Q1 2022 Highlights $101M $82M $55M $30M $34M $12M Q1 ‘21 Q1 ‘22 Q1 ‘21 Q1 ‘22 Q1 ‘21 Q1 ‘22 Revenue Operating Income Adjusted EBITDA* 23% 152% 63% * Please see Appendix for Adjusted EBITDA reconciliation ©2022 InterDigital, Inc. All Rights Reserved. 6/17/2022 13
Slide 14: Robust Return of Capital
Robust Return of Capital ~$97 Million YTD 2022 Cash Returned to Shareholder Cash Returned to Shareholders $250 $241 > $612M since 2018 $188 $159 Stock Buyback 196.2158 ~ $412M in share repurchases since 2018 $125 > 14% net reduction in basic share count 110.5055 ~$97 $73 $63 29.9908 74.4453 $43 0.34
Slide 15: 2022 ESG/Sustainability Highlights
2022 ESG/Sustainability Highlights ENVIRONMENT Activities in carbon footprint reduction, environmental impact assessments for vendor relationships, etc. SOCIAL Continue to impact communities through contributions to charities; including Zip Code Wilmington, Temple University, etc. HUMAN CAPITAL DE&I
Slide 16: We invent the technologies that make life boundless.
We invent the technologies that make life boundless. ©2022 InterDigital, Inc. All Rights Reserved.
Slide 17: Appendix
interdigital. U> Appendix WE INV
Slide 18: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation For the Three Months For the Year Ended Ended March 31, December 31, Q1 2021 Q1 2022 FY2020 FY2021 Net Income attributable to InterDigital, Inc. $ 5,571 $ 17,994 $ 44,802 $ 55,295 Net loss attributable to non-controlling interest (1,613) (290) (6,860) (13,107) Income t