Slide 1: Positioned to Capitalize on Growth in 3G Market
1 February 5, 2008 Positioned to Capitalize on Growth in 3G Market THOMAS WEISEL PARTNERS TECHNOLOGY, TELECOM & INTERNET CONFERENCE
Slide 2: Forward-Looking Statements
2 This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding InterDigital, Inc.’s (“InterDigital”) current beliefs, plans and expectations as to: (i
Slide 3: Shaping the Future of Digital Wireless Technologies
3 Shaping the Future of Digital Wireless Technologies (Gp:) Invent Wireless Technologies (Gp:) Contribute to Standards (Gp:) License Patents (Gp:) Develop Wireless Products (Gp:) 35 Year Digital Cellular Technology Pioneer Thousands of patents worldwide Inventions used in every mobile device (Gp:) K
Slide 4: The Mobile Device Market Opportunity
4 Title: The Mobile Device Market Opportunity Over 1.3 Billion Handsets Expected to Ship by 2012 70% to be 3G Sixty Percent of 3G Handsets Expected to be HSxPA by 2012 Our Goal - Secure Cash Flow On Every 3G Mobile Device Millions of units Source: Strategy Analytics, July 2007
Slide 5: A History of Innovation
5 Title: A History of Innovation… Body: Starting in the early 1980s, developed key inventions used in 2G systems today: Fundamental system architecture Roaming and handoff techniques Distributed base station technologies In the early 1990s, continued pioneering work with 3G systems and developed key
Slide 6: Drives Solid Financial Results
6 Title: ..Drives Solid Financial Results Body: Approximately $1.5 billion in cash from patent licensing over past 7 years Strong results for the first nine months of 2007 Net income of $22 million, or $0.44 per share $85 million free cash flow* Expanding recurring royalties New $100 million stock r
Slide 7: Leading Brands License Our 3G Patents
7 Title: Leading Brands License Our 3G Patents All trademarks are the sole property of their respective owners. 30 - 35% of WCDMA and cdma2000® mobile devices licensed
Slide 8: Solid Recurring Royalty Revenue
8 Title: Solid Recurring Royalty Revenue *** *** Excludes revenues for past sales $ in Millions ** Due to a transition in revenue recognition, includes only 3 quarters of per unit royalties * * Includes estimate for Q4
Slide 9: Strong Free Cash Flow Drives Shareholder Value
Slide: 9 Title: Strong Free Cash Flow* Drives Shareholder Value Body: Solid Balance Sheet $ in Millions $ in Millions Returning Value to Shareholders & Investing in the Business * InterDigital defines “free cash flow” as operating cash flow less purchases of property and equipment and investments in
Slide 10: Enabling Mobile Broadband Devices
10 Title: Enabling Mobile Broadband Devices 2006 2007 2008 High Performance Baseband ICs Reference Platforms 2G/3G dual mode baseband modem with HSDPA/HSUPA Mobile Broadband IP NXP (formerly Philips): 3G HSDPA IC design Infineon: WCDMA/HSDPA protocol stack General Dynamics: 3G WCDMA modem Enabling h
Slide 11: Flexible Solutions for Distinct Market Segments
11 2G 3G / Mobile Broadband Basic Mobile Phones Feature/Smart Phones Data-Centric Devices Projected Annual Mobile Device Shipments (M units) Emerging mobile broadband segment exceeds 400M units in 2012 Feature phones exceed 1B units and smart phones reach 250M units in 2012 Plays to our strengths in
Slide 12: Key InterDigital Takeaways
12 Title: Key InterDigital Takeaways Body: Leading Developer of Digital Wireless Technology Consistent track record of successful innovation and licensing programs with top tier OEMs Advanced family of SlimChip modem solutions Influential member of multiple standards bodies Large, diversified and hi
Slide 13: 3G Revenue Growth Potential
13 Title: 3G Revenue Growth Potential $950 $700 $475 $240 $1.00 $1,425 $1,050 $700 $350 $1.50 $1,900 $1,425 $950 $475 $2.00 Potential Annual Revenue per 3G device in 2012 ($ millions) 25% 50% 75% 100% Patent position drives market penetration Product drives value per device Today we derive cash flow
Slide 14: Positioned to Capitalize on Growth in 3G Market
14 February 2008 Positioned to Capitalize on Growth in 3G Market
Slide 15: Appendix
15 Title: Appendix
Slide 16: Licensees as of January 15, 2008
16 Title: Licensees as of January 15, 2008
Slide 17: Cash Flow Reconciliation
17 Title: Cash Flow Reconciliation This presentation includes free cash flow, a non-GAAP financial item. The table above presents a reconciliation of this non-GAAP line item to net cash provided by operating activities. Management believes that investors may find this non-GAAP financial measure usef