Slide 1: Xperi Q3 2020 Investor Deck
XPERI Q3 2020 INVESTOR DECK November 9, 2020
Slide 2: Safe Harbor
Safe Harbor This document 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 are based on Xperi
Slide 3: One Company, Two Businesses
One Company, Two Businesses Product IP Licensing Product business that delivers end-to-end Leading IP Licensing business with improved entertainment in the home and on-the-go visibility, customer diversification and scale Seamless end-to- end entertainment experience from 11,000+ patents and applica
Slide 4: The New Xperi
The New Xperi Delivering Innovative Technologies in Sight, Sound, and Beyond Headquartered in 1900 employees 11,000+ patents and Listed on Nasdaq San Jose, CA worldwide applications XPER 4
Slide 5: Product Markets
Consumer Experience Product Markets Connected Car Pay-TV 5
Slide 6: Products Markets
Products Markets Consumer Experience Find/Watch Enjoy Monetize Understand • TiVo Stream • DTS Audio Solutions • Audience Viewership Data • Intelligence on • TiVo DVR • Imaging • Advertising the Edge • IMAX Enhanced • AVOD, vMVPD, SVOD, TiVo+ • Content ID, Search & Discovery Connected Car Pay-TV Find
Slide 7: Products Path to Drive Long-Term Growth
Products Path to Drive Long-Term Growth Consumer Experience Connected Car Pay-TV • Drive TiVo Stream footprint • Deliver fully immersive • New UX design wins • Monetization of media Connected Media Platform • IPTV conversions consumption & engagement • Deliver Occupancy and • IMAX Enhanced growth Dr
Slide 8: Consumer Experience Find, Watch, Enjoy
Consumer Experience Find, Watch, Enjoy Disruptive Platform for Monetization Transform home entertainment discovery and presentation Monetize TiVo Stream through integrated, intelligent user experience, audio, imaging, media consumption & and wireless solutions providing expanded channel, and larger
Slide 9: TiVo Stream Roadmap to Revenue Synergies
TiVo Stream Roadmap to Revenue Synergies 2020 - 2021 2022 - 2023 2024 Footprint Conversion Engagement Footprint + Engagement Monetization $ $ $$ Phase 1 Phase 2 Phase 3 May 2020 Launch Stream as an Stream as a of TiVo Stream 4K embedded application comprehensive for Smart TVs Smart TV platform 9
Slide 10: Connected Car Platform for Entertainment & Safety
Connected Car Platform for Entertainment & Safety Revolutionizing the in-cabin automotive experience through highly personalized, connected infotainment (information, safety, entertainment) solutions for the global automotive market Building an ecosystem that delivers an in-car entertainment experie
Slide 11: Connected Car Roadmap to Revenue Synergies
Connected Car Roadmap to Revenue Synergies Near-term Mid-term Long-term Expand Connected Radio Add preference engine Add video and additional services Platform to include metadata capabilities and advertising in to create connected MEDIA connected AUDIO platform, platform, expand platform reach Cont
Slide 12: Pay-TV Platform for Service Providers
Pay-TV Platform for Service Providers Support the long tail of Pay-TV and reduce churn by developing solutions that help attract, retain and engage subscribers Delivering joy with easy access to live TV, Next-Gen Platform video on demand and streaming in one amazing experience Personalized Content D
Slide 13: IP Licensing
IP Licensing Media Semiconductor 13
Slide 14: Media and Semiconductor IP Licensing Platform
Media and Semiconductor IP Licensing Platform Long History of Developing Relevant IP, Meeting the Evolving Needs of Customers and End Markets Media Digital Video Recorder Video on Demand Over the Top Early Tech Digital Cable Multi-Screen Cloud/Apps 2000 2005 2010 2015 2020 Chip Scale Package (CSP) W
Slide 15: IP Extend Large and Profitable Platform
IP Extend Large and Profitable Platform IP Licensing Long-term Cash Flow Generation Focus Media Semiconductor Areas • Increase penetration in new • Push beyond Moore’s Law Growth media video platforms with 3D integration technology Opportunities • License remaining North in Image Sensors, RF, NAND,
Slide 16: Consistent Baseline of Significant Media Revenue
Consistent Baseline of Significant Media Revenue Increasing to ~$350M1 Media Revenue Annually ~$350M1 ~$300M Average Annual Revenue Revenue Ranges from $275M - $318M2 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E3 2021+ Long-term agreements with New or renewed Agreements with leading the larges
Slide 17: IP Platform + Growth Opportunities
IP Platform + Growth Opportunities Large Remaining Significant growing unlicensed industry trend addressable NA Pay-TV toward use of Expanding market in OTT subscribers hybrid bonding and New Media currently the for memory and Patent Platform subject of logic chips ongoing litigation New Media North
Slide 18: Financial Summary
18 Financial Summary XPERI.
Slide 19: Q3 Financial Highlights
Q3 Financial Highlights • Revenue of $202.8 million • Cash Flow from Operations of $62.2 million • Adjusted Free Cash Flow1 of $66.4 million • Bought back $35 million of common stock at an average price of $12.39 • Finished the quarter with $203 million in cash and investments The Comcast license ag
Slide 20: 2H 2020 Outlook
2H 2020 Outlook GAAP Outlook Non-GAAP Outlook Category New Outlook Prior Outlook New Outlook Prior Outlook Revenue1 $625M to $645M $390M to $410M $625M to $645M $390M to $410M COGS $73M to $76M $72M to $75M $73M to $76M $72M to $75M Operating Expense excl COGS2 $421M to $431M $380M to $395M $275M to
Slide 21: 2H 2020 Free Cash Flow Outlook
2H 2020 Free Cash Flow Outlook Free Cash Flow 2H 2020 Outlook Operating Cash Flow $330-350M Less: Purchases of Property and Equipment ($12M) Free Cash Flow $318-338M Add Back: Merger and Separation Related Costs $17M Adjusted Free Cash Flow $335-355M 21
Slide 22: Strong Historical FCF Generation and Capital Return
Strong Historical FCF Generation and Capital Return Historical FCF Capital Allocation Capital Allocation Framework (in millions) (Cumulative 2017-2019) Phase 1: Balanced $166.2 $138.5 $131.8 42.8% 58.7 • Debt Paydown Xperi • Reinvest in Business 67.3% • Share Repurchase Plan: $100M remaining authori
Slide 23: Appendix
Appendix XPERI.
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures In addition to disclosing financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP), the Company’s earnings release contains non-GAAP financial measures adjusted for either one-time or ongoing non-cash acquired intangibles amorti
Slide 25: GAAP to Non-GAAP Reconciliation Table
GAAP to Non-GAAP Reconciliation Table 25