Interdigital, Inc. · NASDAQ:IDCC
Interdigital — Sidoti & Company Fall 2019 Conference
19 slides from Interdigital's conference presentation, Sep 25, 2019
Slide 1: InterDigital Sidoti Conference
InterDigital Sidoti Conference September 25, 2019 © 2019 InterDigital, Inc. All Rights Reserved.
Slide 2: Forward-Looking Statements
Forward-Looking Agenda Statements 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 current beliefs, plans and expectati
Slide 3: Why InterDigital, More than Ever
Why InterDigital, More than Ever One of the largest pure research, innovation and licensing companies in the world Over four decades of pioneering wireless innovation Now expanded to consumer electronics with a world-class video and AI research team Brought to market through substantial contribution
Slide 4: InterDigital Research & Innovation
InterDigital Research & Innovation A world-class R&D lab In Our Labs that drives InterDigital’s • 5G & Beyond Cellular Standards technology development • Mobile Edge Computing • Spectrum Sharing & Unlicensed Spectrum and is a respected participant in international • Advanced Video Standards\ & Platf
Slide 5: 2019: A Global Footprint
2019: A Global Footprint • California • New York • Pennsylvania • Montreal • Berlin • Brussels • Delaware • Washington, D.C. • London • Shanghai • New Jersey • Paris • Indiana • Rennes 5 © 2019 InterDigital, Inc. All Rights Reserved.
Slide 6: Contributing Technology Worldwide
Unquestioned research Contributing leadership Technology in wireless… and video Worldwide on Two Major ~5,000 >50/yr journal and contributions $1B+ conference Fronts to 3GPP & IETF invested papers published in R&D >100/yr in past 20 years since 2000 ~100 contributions to standards bodies technical p
Slide 7: A Recent History of 5G Innovation
A Recent History of 5G Innovation 2018 World’s 1st 2014 2016 2016 2017 2017 demonstration of service-based 5G World’s 1st World’s 1st World’s 1st Invited by GSMA World’s 1st control plane WiGig-based long-term demo successful trial of to present on successful mobile mesh backhaul of integrated IP-ov
Slide 8: Consistent Leadership in Major Cellular Standards
Consistent Leadership in Major Cellular Standards In studies by third-party analysts we’re aware of since 2012 that have evaluated the share of patents and applications that are likely essential to 3G and/or 4G standards... 7% – InterDigital’s share of likely 4G InterDigital’s share of likely 3G 10%
Slide 9: Video Innovation Captured in Today's Standards… and Tomorrow's Solutions
Video Innovation Captured in Today’s Standards… and Tomorrow’s Solutions With the acquisition of the Research & Innovation organization from global video and production services leader Technicolor, InterDigital is immediately a key player in light field and immersive technology, point cloud compress
Slide 10: A Portfolio that Combines Depth and Breadth Across Technologies
A Portfolio that Combines Depth and Breadth Across Technologies IDCC The InterDigital portfolio now brings together >34,000 patent assets that show enormous strength in key wireless and video technologies but also broad diversity across the entire gamut of technology needs. Cellular (incl. 3G, 4G, a
Slide 11: With the expansion into video technologies
With the expansion into video technologies, InterDigital joins a select group with major standards positions in both wireless and video – perfectly aligned with converged wireless/video WIRELESS VIDEO devices © 2019 InterDigital, Inc. All Rights Reserved. 11
Slide 12: Two Tech Footprints, Driving Three Interconnected Licensing Opportunities
Two Tech Footprints, Driving Three Interconnected Licensing Opportunities CONNECTED CONSUMER DEVICES ELECTRONICS INTERNET OF THINGS 12 © 2019 InterDigital, Inc. All Rights Reserved.
Slide 13: Revenue Base Built on a Broad Range of Customer Relationships
Revenue Base Built on a Broad Range of Customer Relationships ~$0.6B Currently license 9 of the OF CONTRACTED CASH Including the top 20 RECEIPTS THROUGH 2022 smartphone brands TOP 2 not including additional licenses or per-unit worldwide VENDORS payments of the 60+ licenses & amendments ~90% we’ve s
Slide 14: Wearables and 5G Penetration Drive New Volume
Wearables and 5G Penetration Drive New Volume Historically each generation of air interface technology has unlocked new user experiences on mobile. 5G will 1980s 1990s 2000s 2010s 2020s enable enhanced mobile broadband Analog Digital Phone Digital calls, messaging All IP-based across multiple device
Slide 15: Consumer Electronics: With New Scale Comes New Opportunity
Consumer Electronics: With New Scale Comes New Opportunity Vision Audio IoT / Other • TV Displays and Computer • Wireless Speakers / Smart • Wearable Devices Display Monitors Assistants • Imaging • Set Top Boxes, Media • Soundbars • Cameras / Camcorders Adaptors, Streamers • Hi-Fi, AV Receivers, • D
Slide 16: IoT Connectivity – An Expanding Market
IoT Connectivity – An Expanding Market Despite slower-than-expected start, IoT market expected to reach installed base of >62B devices by 2022… Average with cellular technologies topping 7B devices including: 2017-2022 CAGR • 585M connected cars, 22% CAGR (2017-2022) of all cellular IoT • 345M retai
Slide 17: Growth Drivers that Build Logically Over Several Years
Growth Drivers that Build Logically Over Several Years LTE CYCLE + VIDEO CONSUMER ELECTRONICS 2018 IoT Revenue Drive core smartphone of recurring 5G $307.4M annual Build licensing revenue base base in ~$400B to $500M+ market An installed base of >62B devices by A new market 2022, of which paradigm,
Slide 18: Continuing Our Practice of Returning Value to Shareholders
Continuing Our Practice of Returning Value to Shareholders 2018-2019 Buyback Activity • Since July 1, 2018, we have 100,000 90 bought back more than $270 90,000 80 million in shares, totaling 3.9 80,000 70 million shares 70,000 60 60,000 • We announced another 50 50,000 $100 million increase to the
Slide 19: © 2019 InterDigital, Inc. All Rights Reserved.
© 2019 InterDigital, Inc. All Rights Reserved.