Turtle Beach Corporation · NASDAQ:TBCH
Turtle Beach — ICR XChange Conference 2015
30 slides from Turtle Beach's conference presentation, Jan 13, 2015
Slide 1: Turtle Beach Corporation at ICR XChange Conference
Exhibit 99.1 TurtleXChange ICR Beach Corporation Conference| |NASDAQ: January 13,HEAR 2015
Slide 2: Safe Harbor
Safe Harbor This Securities opportunities, materially Turtle 2014 undue 1statements presentation and Beach reliance in Litigation from toTurtle Statement Corporation’s reflect future on the includes these Beach’s forward-looking events Reform products forward-looking “forward-looking most or results
Slide 3: Company Snapshot
Company Snapshot Dominant 2Disruptive console technology gaming withheadset demonstrated brand in success early stages in commercial of once-in-a-decade markets andindustry pendinggrowth launch cycle of product for $5 billion hearing health category
Slide 4: Highlights / Company Overview
Brand Console PC Mobile Dominant Licensing Consumer Healthcare Commercial market At expected Company products, Additional headset Roughly margins Unique, HIGHLIGHTS Patented Viability Preparing Future Strong 3Unique the Gaming and front opportunities and share Headsets combination category breakthro
Slide 5: Headsets
Headsets
Slide 6: Dominant Brand in Gaming Headsets
Dominant #1 Overview 49% 53% Broad Headsets 44 Brand Leading 2013 Turtle 2.9%2.6%1.5% Sources: 11.1% 10.6% 8.8% 5.7% 54.9% gaming countries of U.S. Beach portfolio onU.S. U.K. Market U.S. in the Gaming headset 27,000 at market market accounted 49.1% rise, data year-end of 2.8% Share with console fro
Slide 7: Global Console Sales and Transition Cycle
Global Dollars 2003 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 In Today Sixth-Gen Fifth-Gen Console New Cumulative 81% 19% 2013 Current 6*Cycle Percentage each of Generation 2006 2014 isConsole past expected sales in cycle less Transition hardware billions 2009 2015 Xbox transition, than completed* of is
Slide 8: Impact of Console Transition on Headsets
2015round Active 2013 Millions Crossover Xbox Source: PROJECTED 2013: Specs 2014: Sales Last 2015: 2016-2017: 2nd Next 2018: 7Normal Gen: Gen Gen: Gen Marks 2014 of One, timing Installed DFC industry first headset product console ramp headset installed Xbox360, point: of 2015 PS4 Expected models Nex
Slide 9: Multiplayer Titles Drive Headset Sales
Multiplayer 3The An Major 4M 8launch Major ajor increase limited multiplayer console inmultiplayer 1H15 number Gaming in multiplayer (delayed titles of titles Drives AAA tofrom launched launch titles Headset multiplayer 4Q14) to released between from Salesvideo January inOctober lategame 2014 to and
Slide 10: Turtle Beach Differentiating Technology
Turtle A Dual-pairing Bluetooth DTS Digital Advanced Active The Superhuman 9Provides suite first Headphone:X Beach Noise Signal ofgaming achat Chat DSP competitive Hearing Bluetooth Has Cancellation Processing technology for headsets headset Differentiating game advantage into audio (DSP) with most
Slide 11: Leading Product Portfolio
Leading Red Digital Universal EQ P12 Single In-Line Elite Flagship Active Charging Planned Stealth Wireless First DTS Genre-Specific XO Wired Game/Mic Mic Introduced 10 Presets FOUR = Monitoring true 800 800X Surround 7.1 First Stereo to USB Noise 500P 400 Stereo 500X Amplifier May Products Headphon
Slide 12: Exceptionally Strong Retail Distribution
Exceptionally Over distribution 3x America 5x Added U.K. Points North Latin 128,000 240,000 Asia International 370,000 EOY ~18,000 Interactive Kiosks 11 increase and 370,000 2011 America America of Chinese drive interactive since Distribution Europe EOY Kiosks retail in (POD) asince points North Str
Slide 13: Unparalleled Strategic Relationships
Unparalleled The Consoles Software Partnerships Entertainment of entertainment Gaming Official 12 theonly world’s audio and gaming andStreaming with Strategic brands leading partner headset someof Relationships the brand world’s that is largest officially professional licensed gaming for all three l
Slide 14: Growth Opportunities: PC Gaming and International
Growth PC Growing Expanded Beach products, More more China 227 by 33. 2. Source: 20163 Gaming Source: million than sales represents inOpportunities the market including Turtle PC doubled The of DFC gamers Headsets U.S. next-gen gaming NPD Beach opportunity growth Intelligence for the mice, inGroup,
Slide 15: HyperSound
Wy TURTLE BEACH ‘OHYPERSOUND
Slide 16: Disruptive New Audio Technology
Disruptive New Fundamentally Standard HyperSound Patent-protected Digital Electronics Innovations Advances 15 Sound signal Speaker inand advancements Delivery in emitter processing emitter Unique new innovations approach manufacturing Mechanism panel HyperSound has have design provide significantly
Slide 17: Multiple HyperSound Commercial Market Opportunities
Multiple HyperSound’s BENEFIT MARKET Pre-defined 20M 900 In STATUS America 1. 2. Research, 4. Association, BUNN Self-Service 2013 November casinos digital Survey Pursuing Commercial Research, March OPPORTUNITY sound and signs October 2014 ability Markets: of 850,000 2011. currently Casino multiple z
Slide 18: Significant HyperSound Hearing Health Opportunity
Significant HyperSound BENEFIT MARKET Targeting 360M $4B Received STATUS expected 1. 17 Johns U.S. worldwide Hopkins to hearing-aid FDA living OPPORTUNITY Hearing ship provides clearance room inand School 2015 Health market, 48M TV/audio significant for ofin Opportunity Medicine, HyperSound with the
Slide 19: Future HyperSound Consumer and Licensing Opportunities
Future theater Consumer Home Entertainment Pursuing BENEFIT: Licensing MARKET Automotive Actively STATUS 18 Opportunities engaged consumer OPPORTUNITY HyperSound and systems and other ingaming product initial transportation allows cansoundbars licensing development be integrated for immersive discus
Slide 20: Steady Application of HyperSound Strategy
Steadythe Application Become Commercial Create applications Hearing Health Apply Consumer consumer Leverage Licensing Continued products Research capabilities 19 an people Stream ultrasonic the technology broad entirely products HyperSound unique HyperSound R&D and Strategy market audio with ofappli
Slide 21: Strong Intellectual Property Portfolio
Strong2012 EOY 46 121 Headset Audio Gaming HyperSound Emitter Ultrasound Digital Market 20 processing and signal uses construction innovations specific November Rapidly and of innovations processing ultrasound emitter features Growing on: 2014 electronics techniques on: audio Pending Portfolio 20of8
Slide 22: 2014 Performance and 2015-2016 Milestones
2014 Performance Strengthen Improve Achieve Complete Accelerate 2015 Grow Increase Launch Expand Continued 2016 Accelerated Roll-out Strategic 21 market newly broad HyperSound share large HyperSound PC Acquisitions transition growth console retail growth gaming established share portfolio scale of r
Slide 23: Financial Summary
Financial Summary 22
Slide 24: 2014 First and Second Quarter Operational Review
2014 First Refinanced Launched Realized Second Completed to Signaled 23 pack Quarter Operational and Quarter higher overall first-to-market merger equity term shipthan market MSFT loan Review offering with normal and headset Parametric headset new ABL and revenue Xbox used with adapter attach Sound
Slide 25: 2014 Third Quarter and Fourth Quarter Review
2014 Turtle Third Reported Reiterated Announced Fourth New West Strong 24 Coast Operational Quarter Quarter growth lower that port Beach thatin industry than West delays key Review products expected European Coast continued attach performed port revenue rates markets delays tocontinue drive due well
Slide 26: Key Financial Takeaways: Revenue
Key Financial 50% Revenue 2013 Multiple Turtle discounting Strong Expecting HyperSound 25 CAGR highly Beach international industry growing disrupted between expected headset Takeaways headwinds demand growth revenue 2010 by to contribute start and for iningrowth of 2014 2012 new 2014 console increas
Slide 27: Key Financial Takeaways: Margins and Expenses
Key Financial Gross 2013 2015 Operating Targeting Expecting HyperSound 26 &Margin margins 2014 roughly Expenses modest margins operating margins expected Takeaways 30% 20% increases targeted negatively expenses range to benefit infor at staff 50% begin headset impacted from and and to fuller marketi
Slide 28: Key Financial Takeaways: Balance Sheet
Keyoutstanding Balance Signed Raised Repaid All ~$8 Cash Capital 27 million Financial interest net new all expenditures Sheet $17.0 proceeds that global on Takeaways debt TTM is million at $60 of now run LIBOR basis $35.6 million of approximately concentrated outstanding approximately plus million A
Slide 29: Investment Summary
Investment Audio Multiple Dominant Significant Margin Growing Positioned Strong 28 technology cash and near portfolio console to market Summary EBITDA flows leverage and long-term to company gaming of share fund new Expansion operating opportunities business generation headset with growth cost Poten
Slide 30: Contact Information
Contact Corporate David Turtle 100 Investor Anne +1 Anne.Rakunas@icrinc.com ICR 12400 COMPANY www.turtlebeachcorp.com 29 619-887-4327 310-954-1113 Summit Rakunas Beach Lowey Wilshire Information Relations Communications WEBSITES Lake Corporation Boulevard, Drive, Suite david.lowey@turtlebeach.com ww