Slide 1: Transaction update May 6, 2020
Transaction update May 6, 2020
Slide 2: Important Information and Where to Find It
Important Information and Where to Find It In connection with the proposed transaction, Holdco has filed with the Securities and Exchange Commission (“SEC”), and the SEC has declared effective on April 22, 2020, a registration statement on Form S-4 (File No. 333-236492) that includes a joint proxy s
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements
Slide 4: Creating Scale and Diversification
Creating Scale and Diversification Creating a Leader in Consumer & Entertainment Technology and IP Licensing Xperi creates innovative technology solutions that enable extraordinary experiences for people around the world TiVo brings entertainment together, making it easy to find, watch, and enjoy Se
Slide 5: Xperi + TiVo Key Transaction Highlights
Xperi + TiVo Key Transaction Highlights Combined businesses at the forefront of secular trends, reach hundreds of millions of consumers and license technology into billions of devices Fast growing markets driven by adoption of streaming, auto infotainment / ADAS and AI Attractive and Growing End Mar
Slide 6: A Transformative Merger Creating a Leader in Consumer & Entertainment Technology & IP Licensing
Two Product Businesses poised to benefit from fast evolving entertainment content marketplace Two IP Businesses critical to modern entertainment and electronic economy A Transformative Merger Creating a Leader in Consumer & Entertainment Technology & IP Licensing
Slide 7: Two Technology Innovators, Together
Two Technology Innovators, Together Combining Two Industry-Leading Platforms
Slide 8: Transformative Scale
Transformative Scale Compelling Financial Profile and Market Opportunity $1B+ Revenue/Billings 1 11K Patents and Applications 30M Households 150M Licensed Subscribers 400M Radio Listeners 100M TVs 70M Metadata Assets $420M+ Adj. EBITDA 2 $280M Operating Cash Flow 3 1 Xperi evaluates the Company’s fi
Slide 9: Xperi Who We Are Today
Xperi Who We Are Today Delivering Innovative Technologies in Sight, Sound and Beyond In-Cabin Monitoring Connected Radio US Digital Radio Standard AI Edge-Based Platform Audio Codecs and Post Processing IMAX at Home 3D Packaging Semiconductor Solutions Foundational Semiconductor Chip Packaging ZiBon
Slide 10: Xperi By The Numbers
Xperi By The Numbers Strong Cash Flow, Broad Technology Portfolio, Expansive Footprint 100M Annual TVs 400M Radio Listeners $204M IP Billings1 3,000+ Patents and Applications for IP Business $210M Product Billings1 Billions of Devices 1 Xperi evaluates the Company’s financial performance in part bas
Slide 11: TiVo Who We Are Today
TiVo Who We Are Today Making Entertainment Easy to Find, Watch and Enjoy Interactive Programming Guide Voice interactivity Video on Demand Over-the-Top Second Screen PCD & Metadata Data & Advertising TiVo Stream Next-Gen Platform Content & TiVO+ Search and Recommendations Social 1 DVRs
Slide 12: TiVo By The Numbers
TiVo By The Numbers Strong Innovation and Improving Financial Profile 150M Licensed Subscribers 70M Metadata Assets 30M Subscriber Households $351M Product Revenue1 $317M IP Revenue1 5,400 Patents and Applications 1 Year-end December 31, 2019
Slide 13: Xperi + TiVo Product Licensing Business
Xperi + TiVo Product Licensing Business TiVo cuts through the chaos, brings all content together, and makes it easy to find watch and enjoy Xperi enhances the entertainment experience with a service platform that reaches the majority of home consumer electronic and automotive brands
Slide 14: Product Business A Changing Market
Product Business A Changing Market Endless Options across many devices make it increasingly difficult to find, playback and enjoy content
Slide 15: Optimize Entertainment for Consumers
Optimize Entertainment for Consumers Instead of Optimizing Consumers for Entertainment Winning the War for Attention Reaching Hundreds of Millions of Customers
Slide 16: TiVo Revenue Drivers in Home
Impactful, data-driven advertising solutions that are targeted to the right audiences TiVo Revenue Drivers in Home Products & Services That Have Powered Best-in-Class Entertainment Experiences for Decades Intelligent user experience platforms that provide viewers with access to the content they love
Slide 17: Xperi Revenue Drivers in Home
Xperi Revenue Drivers in Home Xperi Brings Technical Expertise, Channel and Reach to TiVo’s Business Partnerships with all major ICs 100M annual TV unit volume Existing relationships with all top 10 TV brands
Slide 18: Xperi + TiVo Revenue Synergies in Home
Transform home entertainment discovery and presentation through integrated, intelligent user experience, audio, imaging, and wireless solutions providing expanded channel, and larger TAMs with opportunities for ad monetization Xperi Existing Relationships with major ICs and all top 10 TV brands Xper
Slide 19: TiVo Revenue Drivers in Auto
TiVo Revenue Drivers in Auto Leading Content Aggregation, Metadata, & Discovery Cloud powered device-agnostic platform with seamless integration across devices Dynamic, descriptive video and music metadata Content discovery technology to power personalized music playlists
Slide 20: Xperi Revenue Drivers in Auto
Xperi Revenue Drivers in Auto Xperi Brings Channel and Reach to TiVo’s Business Partnerships with all major Tier 1s 52% HD Radio penetration rate in US autos Business with all 41 auto brands sold in North America Partnerships with all major broadcasters
Slide 21: Xperi + TiVo Revenue Drivers in Auto
Xperi + TiVo Revenue Drivers in Auto Combined Platform Enhances and Simplifies Customer Experience 52% HD Radio penetration rate in US autos Xperi’s Partnerships with all major Tier 1s, Broadcasters and 41 auto brands sold in North America TiVo Metadata TiVo’s Metadata 70M rich metadata assets Xperi
Slide 22: Xperi + TiVo Looking Ahead
Xperi + TiVo Looking Ahead Advanced Security Image Identification Smart Home/IoT Intelligent Speakers Advanced Home Theater Personalization Smart Appliances Connected Radio Rear Seat Entertainment Content Personalization Data Analytics Advanced Audio/Image Detection and Car Security Solutions Connec
Slide 23: Xperi + TiVo IP Licensing Business
Xperi + TiVo IP Licensing Business Creates Leading Pure-Play IP Licensing Business TiVo has licensed its fundamental intellectual property to leading video providers across Pay-TV, OTT, CE, Mobile and Social markets Xperi has licensed its fundamental intellectual property to leading semiconductor co
Slide 24: Leading IP Portfolio: 8K+ Patents and Applications
Leading IP Portfolio: 8K+ Patents and Applications Strengthens and Diversifies IP Licensing Business Foundational IP in multiple large markets Limited Licensee Overlap Increased Diversification, Scale and Reduced Volatility Combines two businesses with strong track records in patent monetization and
Slide 25: Growth Drivers: Growing Markets, Growing Businesses
Drivers Growing Markets, Growing Businesses IMAX Enhanced / DTS Codec Licensing Perceive’s Edge-based AI Platform In-cabin Monitoring Connected Radio UX4 Upgrade Cycle TiVo 4K Stream / TiVo+ Embed TiVo Stream 4K on Connected TVs Enhance Automotive Entertainment through Connected Radio / TiVo Metadat
Slide 26: Perceive: Xperi Additional Growth Driver
Has substantial potential in edge inferencing markets. It looks like we are beginning to see some avenues that could lead to a pretty large pot of gold. Perceive Xperi Additional Growth Drivers Transforming Sensing into Perceiving A breakthrough hardware and software solution to bring intelligence t
Slide 27: Xperi + TiVo ProForma Financials
Xperi + TiVo ProForma Financials OJ Greater Scale, Cash Flow, Diversification, and Visibility Paes XPERI. | # TIVO XPERI.+# TIVO’ Impact ’ Significant Scale sm ene esa and Synergies High Margin $208M / 50% $211M / 32% $419M / 39% Profile Operating Cash 9 0 Significant Cash Flow 2 (% Ma $169M / 41% $
Slide 28: Synergies and Strong Balance Sheet
Revenue Synergies Strong Balance Sheet Cost Synergies Drivers Operational Discipline Strong Track Record of Successful Integration $50M Annual Cost Synergies by year-end 20211 1 Incremental savings from TiVo’s transformation plan 2 Depends on level of OID required to place Term Loan B into the marke
Slide 29: Combination Unlocks Powerful Advantages
Combination Unlocks Powerful Advantages Compelling Future Financial and Business Opportunities Reach 2 Combined businesses will reach hundreds of millions of consumers across multiple large and growing entertainment content markets Scale 1 Combined top line is greater than $1 billion, before the lon
Slide 30: New Board of Directors
New Board of Directors Experienced Board With Diversity of Experience Chris Seams CEO of Deca Technologies 23 years senior management at Cypress Semiconductors Director at Onto Innovation Darcy Antonellis CEO of VUBIQUITY and Division President of Amdocs Media Former CTO of Warner Bros (10 years sen
Slide 31: Transaction Update: Key Transaction Milestones
Transaction Update Key Transaction Milestones Integration planning underway Planning to operate the combined IP and Product licensing businesses as two business segments upon closing Received early termination of the waiting period under HSR Form S-4 combined registration statement and joint proxy f
Slide 32: Appendix
APpendix
Slide 33: Xperi Deal Process
Management and Centerview consider a range of strategic options Management and Centerview contact TiVo to explore a range of strategic options Xperi Deal Process Xperi’s investment bank and management team explore options, contact 20 potential buyers and execute NDAs with 11 TiVo contacts Xperi abou
Slide 34: Xperi Board Unanimously Supports This Transaction
Xperi Board Unanimously Supports This Transaction The Xperi Board engaged in an extensive evaluation of Xperi’s strategy and opportunities Hired financial advisor to review strategic options and to approach potential buyers of IP licensing business in late 2018 and early 2019; concluded there were n
Slide 35: Xperi Board of Directors
Rick Hill (Chair) Chairman of Marvell Technology and Director at Arrow Electronics Former CEO and Chairman of Novellus Systems Former Director at LSI Corporation, Autodesk, Planar Systems, Yahoo! Xperi Board of Directors Darcy Antonellis CEO of VUBIQUITY and Division President of Amdocs Media Former