Slide 1: InterDigital
InterDigital Sidoti Conference | March 22, 2023
Slide 2: Disclaimers
Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Exchange Act. Such statements include information regarding our current beliefs, plans and expectations, including, without limitation, the matters set forth below. W
Slide 3: We Invent the Technologies That Make Life Boundless
Market Opportunity $650M+ recurring revenue opportunity in device markets (smartphones and CE, IoT & Auto). Significant growth opportunity into new markets (e.g., content and cloud services) Deep Industry Knowledge and Expertise Five decades of pioneering wireless and visual technologies innovation.
Slide 4: Strong Financial Performance
Strong Financial Performance Revenue Expenses +13% $458M $425M $359M -13% $319M $354M $281M $304M $307M 2019 2020 2021 2022 2019 2020 2021 2022 Diluted EPS / Adj. EBITDA PS* Adjusted EBITDA / Adj. EBITDA Margin %* $8.35 56% $300M 60% $6.65 49% $250M 43% 50% 41% $4.99 $200M 40% $4.12 $150M 30% $3.07
Slide 5: Revenue Growth
Revenue Growth Double-digit growth in both Smartphone and CE, IoT/Auto Revenue by Licensing Program Revenue by Recurring & Catch-up $458M $458M $426M $426M $54M $104M 37% CAGR $68M $359M $74M $359M $319M $24M $22M $319M $40M $21M $404M $323M $352M $353M 10% CAGR $338M $352M $267M $298M 2019 2020 202
Slide 6: Stock Performance vs Indices
Stock Performance vs Indices IDCC up 82% since renewing Apple at end Q3 ‘22 Currently trading at ~6.5x Adj. EBITDA Multiple* 15% 10% 5% 0% -5% -10% -15% -20% -25% -30% -35% -40% Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- 22 22 22 22 22 22 22 22 22 22 23 23 23 InterDigital Russe
Slide 7: InterDigital Business Model
InterDigital Business Model We are a foundational R&D company. We share our innovation through standard process and monetize our technology through IP licensing. ©2023 InterDigital, Inc. All Rights Reserved. 3/22/23 7
Slide 8: Management Team of Industry Veterans
Management Team of Industry Veterans Liren Chen Rajesh Pankaj President & Chief Executive Officer EVP, Chief Technology Officer Joined April 21 after 25 years Qualcomm Inc., most Joined July 2022 after 25 years at Qualcomm Inc., recently as SVP, Global Head of IP most recently as SVP of Engineer and
Slide 9: Revenue Targets
Revenue Targets MARKETS SMARTPHONES CE, IoT/AUTO CONTENT & CLOUD SERVICES $500M Per Year $150M+ Per Year Large Growth Opportunity PORTFOLIO >28,000 PATENT ASSETS AND GROWING RESEARCH WIRELESS RESEARCH: VIDEO ARTIFICIAL INTELLIGENCE CELLULAR & WI-FI RESEARCH & MACHINE LEARNING ©2023 InterDigital, Inc
Slide 10: A History of Long-Term & New Customers
A History of Long-Term & New Customers Many of our largest customers have been licensed for 15 years or more Very strong history of renewals. Once licensed, key OEMs tend to stay licensed Years As InterDigital Licensee * * * * ** 0 5 10 15 20 25 30 0 5 10 20 25 30 Apple and Samsung have been license
Slide 11: 50 Years of Research and Innovation
50 Years of Research and Innovation Of our Engineers… Pioneering research integral to the evolution of ~40% hold doctorate cellular wireless and video degrees, another ~50% innovation since 1972 hold other advanced degrees We reinvest ~half our recurring revenue into ~90% are inventors research and
Slide 12: Recognized Global Innovation Leader
Recognized Global Innovation Leader For the 2nd year in a row, LexisNexis recognized InterDigital amongst the World’s 100 Most Innovative Businesses Innovation Momentum 2023: The Global Top 100, “represents the world’s leading patent owners with the highest innovation momentum.” ©2023 InterDigital,
Slide 13: 5G & Video Enabling Growth Across Industries
5G & Video Enabling Growth Across Industries 5G Video By 2030, 5G adoption projected to boost global GDP by $1.3 trillion1 Metaverse, the next frontier, enabled by media technologies 5G mobile subscriptions to reach 5 billion in 20282 Video is forecasted to increase from 70% of mobile traffic to 80%
Slide 14: Increasingly Diverse Patent Portfolio
Increasingly Diverse Patent Portfolio Our patent portfolio grew >50% between 2017 & 2022 with the addition of video & DTV related technologies and continuing growth of wireless assets 2017 2022 ~19,000 Assets >28,000 Assets Wireless Video Implementation DTV Broadcast & Home Network ©2023 InterDigita
Slide 15: InterDigital Ranks Highest in Patent Quality for 5G and Video Codec Patents
InterDigital Ranks Highest in Patent Quality for 5G and Video Codec Patents1 Average Competitive Impact 5G Patent Holders Video Codec Patent Holders 0 4 8 12 0 2 4 6 8 InterDigital Company #1 Company #1 Company # 2 Company #2 InterDigital Company #3 Company # 4 Company #4 Company # 5 Company #5 Comp
Slide 16: Accelerating Execution
Accelerating Execution Over 20 licensing deals driving >$1.75B of contract value 2021 2022 2023 August September January May August September December March * ** * Currently in binding arbitration ** UK’s High Court issued decision ©2023 InterDigital, Inc. All Rights Reserved. 3/22/23 16
Slide 17: Robust Return of Capital
Robust Return of Capital $241M Shares Repurchased Cash Returned to Shareholders Dividends Paid $210M ~$684M since 2019 Stock Buyback $196M ~$500M in share repurchases since 2019 $117M ~20% net reduction in basic share count $200M $73M $74M Dividends $30M $43M ~$184M in dividends paid since 2019 Abov
Slide 18: We Invent the Technologies That Make Life Boundless
Market Opportunity $650M+ recurring revenue opportunity in device markets (smartphones and CE, IoT & Auto). Significant growth opportunity into new markets (e.g., content and cloud services) Deep Industry Knowledge and Expertise Five decades of pioneering wireless and visual technologies innovation.
Slide 19: Appendix
Appendix ©2023 InterDigital, Inc. All Rights Reserved. 3/22/23 19
Slide 20: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation For The Year Ended December 31, (In Millions) 2019 2020 2021 2022 Net income (loss) attributable to InterDigital, Inc. $ 21 $ 45 $ 55 $ 94 Add: Net loss attributable to non-controlling interest (6) (7) (13) (2) Add: Income tax (provision) benefit 11 (7) 15 26 Add: Othe
Slide 21: We invent the technologies that make life boundless.
We invent the technologies that make life boundless. ©2023 InterDigital, Inc. All Rights Reserved.