Interdigital, Inc. · NASDAQ:IDCC
Interdigital — 31st Annual ROTH Conference (March 2019)
21 slides from Interdigital's conference presentation, Mar 19, 2019
Slide 1: InterDigital 31st Annual ROTH Conference
InterDigital 31st Annual ROTH Conference March 19, 2019 © 2019 InterDigital, Inc. All Rights Reserved.
Slide 2: Forward-Looking Statements
AgendaForward-Looking 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 expectatio
Slide 3: Why InterDigital, More than Ever
Why InterDigital, More than Ever Invention, Collaboration & Contribution Over four decades of pioneering wireless innovation Now combined with a portfolio reflecting decades of fundamental video expertise Brought to market through substantial contributions to global standards That drive a more power
Slide 4: InterDigital Labs
InterDigital Labs In Our Labs A world-class R&D lab • 5G & Beyond Cellular Standards that drives InterDigital’s • IoT Standards & Platforms technology development • Advanced Video Standards & Platforms • Mobile Edge Computing and is a respected • Service-based Architectures participant in internatio
Slide 5: 2018: A Global Footprint
2018: A Global Footprint • California • New York • Pennsylvania • Montreal • Berlin • Brussels • Delaware • Maryland • Washington, D.C. • London • Shanghai • New Jersey • Paris • Indiana • Rennes • Seoul 5 © 2019 InterDigital, Inc. All Rights Reserved.
Slide 6: Contributing Technology Worldwide
Contributing Deep wireless + a video portfolio Technology engagement… that reflects: Worldwide >50/yr journal and on Two Major 1,000+ conference contributions $1B+ papers published Fronts invested in to 3GPP R&D since 2000 >100/yr ~100 contributions to technical papers standards bodies & presentatio
Slide 7: A Recent History of 5G Innovation
A Recent History of 5G Innovation 2018 World’s 1st demonstration of 2014 2016 2016 2017 2017 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: 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 9: Two Tech Footprints, Driving Three Interconnected Licensing Opportunities
Two Tech Footprints, Driving Three Interconnected Licensing Opportunities CONNECTED CONSUMER DEVICES ELECTRONICS INTERNET OF THINGS 9 © 2019 InterDigital, Inc. All Rights Reserved.
Slide 10: 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 LTE InterDigital’s share of likely 3G 10
Slide 11: 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 12: The Rise of the Synchronized Device Landscape Extends Wireless Opportunity
The Rise of the Synchronized Device Landscape Extends Wireless Opportunity Source: Jefferson Wang, IBB Consulting, 9/18/17 12 © 2019 InterDigital, Inc. All Rights Reserved.
Slide 13: 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 Assistants Display Monitors • Imaging • Soundbars • Set Top Boxes, Media • Cameras / Camcorders Adaptors, Streamers • Hi-Fi, AV Receivers, • D
Slide 14: Mobile + Consumer Electronics: An ~$800B Market
Mobile + Consumer Electronics: An ~$800B Market That We’ve Already Begun to License Computer Displays TV Set-Top Box Mobile OTT Devices PCs Loudspeaker Network Equip. Game H/W Consumer Wearables Cameras Drones Wireless Speakers Wireless Active Program Program Launched Program Under Eval. Smart Home
Slide 15: 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 16: Revenue Base Built on a Broad Range of Customer Relationships
Revenue Base Built on a Broad Range of Customer Relationships Currently license ~$660M 9 of the OF CONTRACTED CASH Including the RECEIPTS THROUGH 2022 top 20 not including additional smartphone brands TOP 2 licenses or per-unit worldwide VENDORS payments of the 60+ licenses & amendments ~90% we’ve s
Slide 17: Growth Drivers that Build Logically Over Several Years
Growth Drivers that Build Logically Over Several Years LTE CYCLE + VIDEO 2018 CONSUMER ELECTRONICS Revenue Drive core IoT of smartphone 5G recurring $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: Diligent Goal-Tracking Across All Our Programs
Diligent Goal-Tracking Across All Our Programs LTE CYCLE + VIDEO CONSUMER ELECTRONICS IoT Currently at 5G recurring licensing A new effort at the revenue of company, but based Stated goal of $75- on historical revenues 100M by late 2021. >$300M, with a Growing ability to of the sector we’re Currentl
Slide 19: A Post-TCH Transition to Regain Full Operating Leverage
A Post-TCH Transition to Regain Full Operating Leverage Q4 2018 Total Operating Expenses $ 71.5 With the anticipated closing Plus: Capitalized patent costs on internal patents 8.2 of the acquisition of Less: Depreciation & amortization (19.1) Technicolor’s R&I team, we Less: Intellectual property en
Slide 20: Continuing Our Practice of Returning Value to Shareholders
Continuing Our Practice of Returning Value to Shareholders • Since July 1, 2018, we have bought back more than $201 million in shares, totaling 2.8 million shares at an average price of $71.88 per share • We announced another $100 million increase to the authorization in December 2018 • As of 03/15/
Slide 21: © 2019 InterDigital, Inc. All Rights Reserved.
© 2019 InterDigital, Inc. All Rights Reserved.
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