Slide 1: Annual Shareholder Meeting
Annual Shareholder Meeting June 7, 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: Liren Chen, President & Chief Executive Officer
Liren Chen President & Chief Executive Officer ©2023 InterDigital, Inc. All Rights Reserved. 6/13/2023 3
Slide 4: We invent the technologies that make life boundless
Market Opportunity $650M+ recurring revenue target in device markets. Expanding into content and cloud services licensing opportunities Deep Industry Knowledge and Expertise WE INVENT THE Five decades of pioneering wireless and visual technologies innovation. Highest concentration of inventors in th
Slide 5: 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. 6/13/2023 5
Slide 6: Management Team of Industry Veterans
Management Team of Industry Veterans Liren Chen Richard Brezski President & Chief Executive Officer EVP, Chief Financial Officer and Treasurer Joined in 2021 after 25 years at Qualcomm Joined in 2003, CFO since 2012. Previously audit Inc., most recently as SVP, Global Head of IP manager in Technolog
Slide 7: Our Technology Enables Multiple Verticals
Our Technology Enables Multiple Verticals MARKETS SMARTPHONES CE, IoT/AUTO CONTENT & CLOUD SERVICES $500M Per Year* $150M+ Per Year* Large Growth Opportunity PORTFOLIO >28,000 PATENT ASSETS RESEARCH WIRELESS RESEARCH: VIDEO ARTIFICIAL INTELLIGENCE CELLULAR & WI-FI RESEARCH * Recurring Revenue Target
Slide 8: Over Five Decades of Wireless & Video Innovation
Over Five Decades of Wireless & Video Innovation Of our engineers… Pioneering research ~90% integral to the evolution of cellular wireless and video innovation since 1972 hold advanced degrees We reinvest ~half our recurring revenue into research and portfolio ~90% Over half are inventors developmen
Slide 9: Innovation Momentum
Innovation Momentum Invention Disclosures +27% 2019 2020 2021 2022 ©2023 InterDigital, Inc. All Rights Reserved. 6/13/2023 9
Slide 10: 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 11: 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 12: 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 13: Accelerating Execution
Accelerating Execution Over 20 licensing deals driving >$2B of contract value in past 2 years 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. 6/13/2023
Slide 14: Strong Financial Performance
Strong Financial Performance Revenue Expenses +13% CAGR $458M $425M $359M -13% $319M $354M $281M $304M $307M 2019 2020 2021 2022 2019 2020 2021 2022 Diluted EPS Adjusted EBITDA / Adj. EBITDA Margin %* $300M 56% 60% 49% $250M 43% 50% 41% $200M 40% +67% $150M 30% $3.07 $255M CAGR $208M $100M 20% $1.44
Slide 15: 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 $352M $353M 10% CAGR $323M $338M $352M $267M $298M 2019 2020 202
Slide 16: Robust Return of Capital
Robust Return of Capital $249M $241M Shares Repurchased Cash Returned to Shareholders Dividends Paid ~$723M since 2019 Buybacks $196M ~$530M in share repurchases since 2019 $117M ~20% net reduction in basic share count $229M $73M $74M Dividends $30M $43M ~$193M in dividends paid since 2019 Above ave
Slide 17: Stock Performance vs Indices
Stock Performance vs Indices 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% -30% -35% -40% May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- 22 22 22 22 22 22 22 22 23 23 23 23 23 InterDigital Russell 2000 Index Nasdaq Composite Index As of 5/31/23 ©2023 InterDigital, Inc. All
Slide 18: Our Approach to ESG
We focus on the things that matter Our Approach most to our business, our employees, to ESG and our stakeholders. MCSI: A Rating Human Capital and DEI Creating a healthy, inclusive, and safe work environment where Sustainalytics: Top 1/3 all colleagues feel valued, respected, and enabled to achieve
Slide 19: We invent the technologies that make life boundless
Market Opportunity $650M+ recurring revenue target in device markets. Expanding into content and cloud services licensing opportunities Deep Industry Knowledge and Expertise WE INVENT THE Five decades of pioneering wireless and visual technologies innovation. Highest concentration of inventors in th
Slide 20: We invent the technologies that make life boundless.
We invent the technologies that make life boundless. ©2023 InterDigital, Inc. All Rights Reserved.
Slide 21: Appendix
Appendix ©2023 InterDigital, Inc. All Rights Reserved. 6/13/2023 21
Slide 22: Non-GAAP Reconciliation
Non-GAAP 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 in (6) (7) (13) (2) Add: Income tax (provision) benefit 11 (7) 15 26 Add: Other expense & i