Slide 1: Positioned to Capitalize on Growth in 3G Market
Vision Innovation Speed Performance July 2007 Positioned to Capitalize on Growth in 3G Market
Slide 2: Forward-looking statements
This presentation contains forward-looking statements regarding InterDigital’s current beliefs, plans and expectations as to: (i) our strategy; (ii) our future growth potential in cash flow; (iii) our projected second quarter 2007 recurring revenues; (iv) future global mobile device sales and market
Slide 3: Shaping the Future of Digital Wireless Technologies
Shaping the Future of Digital Wireless Technologies Invent Wireless Technologies Contribute to Standards License Patents Develop Wireless Products 30+ Year Digital Cellular Technology Pioneer Thousands of patents worldwide Inventions used in every mobile device Key Contributor to Standards 2G, 3G, a
Slide 4: The Mobile Device Market Opportunity
The Mobile Device Market Opportunity 0 200 400 600 800 1,000 1,200 1,400 2006 2007 2008 2009 2010 2011 2012 2G/2.5G 3G 0 100 200 300 400 500 600 700 800 900 1,000 2006 2007 2008 2009 2010 2011 2012 3G (CDMA) 3G (WCDMA) 3G (HSxPA) Over 1.3 Billion Mobile Devices Expected to Ship by 2012 70% to be 3G
Slide 5: Innovation Drives Patent Licensing Success
Innovation Drives Patent Licensing Success Strong Patent Portfolio - 2G/3G Cellular and Emerging Technologies 3,000+ Patents Issued in U.S and Worldwide and growing Ranked 94 among companies worldwide with patents issued from USPTO Major Accomplishments for 2006 LG Electronics – $285 million – new 2
Slide 6: Solid Recurring Revenue Base
Solid Recurring Revenue Base * Excludes revenues for past sales $0 $10 $20 $30 $40 $50 $60 $70 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Est. Recurring Royalties * Tech Solutions Q2 Forecast $ in Millions 2006 2005 2007 $52.5 - $54million
Slide 7: Strong Free Cash Flow Drives Shareholder Value
Strong Free Cash Flow * Drives Shareholder Value $0 $50 $100 $150 $200 $250 $300 2003 2004 2005 2006 2007 Cash & Short-term Investments Solid Balance Sheet $0 $50 $100 $150 $200 $250 $300 2003 2004 2005 2006 Q1 2007 Share Repurchases Development Expense $ in Millions $ in Millions * As of April 30,
Slide 8: Moving IP to Silicon Brings New Opportunities
Moving IP to Silicon Brings New Opportunities IP Blocks Full Modem Solution ASICs NXP (formerly Philips): 3G HSDPA ASIC design Infineon: WCDMA and HSDPA terminal unit protocol stack Provides Validation Broadens Market Opportunity Can Drive Significant Value General Dynamics: 3G WCDMA modem InterDigi
Slide 9: Mobile Device Market Opportunity
0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2G 3G / Wireless Broadband Basic Mobile Phones Basic Mobile Phones Feature/Smart Phones Feature/Smart Phones Data Data-Centric Devices Centric Devices Projected Annual Mobile Device Shipments
Slide 10: Optimized solutions for distinct market segments
0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Optimized solutions for distinct market segments High Performance Modem Technology High Performance Modem Technology Baseband Designs Dual Mode Modem Technology (IP) Protocol Software Basic M
Slide 11: Future Growth Potential in Cash Flow
Future Growth Potential in Cash Flow $800 $600 $400 $200 $1.00 $1,200 $900 $600 $300 $1.50 $1,600 $1,200 $800 $400 $2.00 Annual Gross Margin Potential in 2011 ($ millions) 25% 50% 75% 100% Essential patent position drives market penetration Product drives value per device Today we derive cash flow o
Slide 12: What to Look for in 2007
What to Look for in 2007 3G licenses Add new 3G licensees Build momentum for 2008 and beyond Product development initiative goals IP Agreements Engineering samples by end of summer Commercial offering by end of year Leveraging capital Future technology development for 4G and beyond Product developme
Slide 13: Appendix
Vision Innovation Speed Performance Appendix
Slide 14: Licensees as of June 2007
Licensees as of June 2007 Toshiba Corporation Telefonaktiebolaget LM Ericsson Sony Ericsson Mobile Communications AB Sierra Wireless, Inc. Option NV Oki Electric Industry Co. Ltd. Nokia Corporation NEC Corporation Nakayo Telecommunications, Inc. Mitsubishi Electric Corporation Matsushita Communicati