Slide 1: Positioned to Capitalize on Growth in 3G Market
1London December 4, 2007 Positioned to Capitalize on Growth in 3G MarketNASDAQ 20th Investor Program
Slide 2: Forward-Looking Statements
2This 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 (“InterDigital”) current beliefs, plans and expectations as to: (i)
Slide 3: Shaping the Future of Digital Wireless Technologies
3 Shaping the Future of Digital Wireless Technologies (Gp:) InventWirelessTechnologies(Gp:) Contribute toStandards(Gp:) LicensePatents(Gp:) DevelopWirelessProducts(Gp:) 35 Year Digital Cellular Technology PioneerThousands of patents worldwideInventions used in every mobile device(Gp:) Key Contributo
Slide 4: The Mobile Device Market Opportunity
4 The Mobile Device Market Opportunity Over 1.3 Billion Handsets Expected to Ship by 2012 70% to be 3G Sixty Percent of 3G Handsets Expected to be HSxPA by 2012Our Goal - Secure Cash Flow On Every 3G Mobile DeviceMillions of unitsSource: Strategy Analytics, July 2007
Slide 5: A History of Innovation
5 Title:A History of Innovation… Body:Starting in the early 1980s, developed key inventions used in 2G systems today:Fundamental system architectureRoaming and handoff techniquesDistributed base station technologiesIn the early 1990s, continued pioneering work with 3G systems and developed key inven
Slide 6: Drives Solid Financial Results
6.Drives Solid Financial ResultsBody:Approximately $1.5 billion in cash from patent licensing over past 7 yearsStrong results for the first nine months of 2007Net income of $22 million, or $0.44 per share$85 million free cash flow*Expanding recurring royaltiesNew $100 million stock repurchase progra
Slide 7: Leading Brands License Our 3G Patents
7 Leading Brands License Our 3G PatentsAll trademarks are the sole property of their respective owners.30 - 35% of WCDMA and cdma2000® mobile devices licensed
Slide 8: Solid Recurring Royalty Revenue
8 Solid Recurring Royalty Revenue *** *** Excludes revenues for past sales $ in Millions ** Due to a transition in revenue recognition, includes only 3 quarters of per unit royalties *Includes estimate for Q4
Slide 9: Strong Free Cash Flow Drives Shareholder Value
9 Strong Free Cash Flow* Drives Shareholder Value Solid Balance Sheet$ in Millions$ in MillionsReturning Value to Shareholders& Investing in the BusinessInterDigital defines “free cash flow” as operating cash flow less purchases of property and equipment and investments in patents
Slide 10: Leveraging Technology Portfolio to Build Value
10 Leveraging Technology Portfolio to Build Value20052006200720082G/3G Modem IPGeneral Dynamics: 3G WCDMA modemBaseband Chips 2G/3GDual Mode baseband with HSDPA/HSUPAIntegrationIP BlocksNXP (formerly Philips): 3G HSDPA ASIC designInfineon: WCDMA and HSDPA protocol stackEnabling high-volume semicondu
Slide 11: Optimized Solutions for Distinct Market Segments
112G 3G / Wireless BroadbandBasic Mobile PhonesFeature/Smart PhonesData-Centric DevicesProjected Annual Mobile Device Shipments (M units) Emerging data-centric segment exceed 400M units in 2012Feature phones exceed 1B units and smart phones reach 250M units in 2012Plays to our strengths in high- per
Slide 12: Key InterDigital Takeaways
12 Key InterDigital TakeawaysLeading Developer of Digital Wireless TechnologyConsistent track record of successful innovation and licensing programs with top tier OEMsInfluential member of multiple standards bodiesLarge, diversified and high value patent portfolio: 3,000+ patents issued and nearly 9
Slide 13: 3G Revenue Growth Potential
13 3G Revenue Growth Potential$950 $700 $475$240$1.00$1,425 $1,050 $700$350$1.50$1,900 $1,425 $950$475$2.00Potential Annual Revenue per 3G device in 2012($ millions) 25% 50% 75% 100%Patent position drives market penetration Product drives value per deviceToday we derive cash flow on 30 - 35% of 3G m
Slide 14: Positioned to Capitalize on Growth in 3G Market
14 London December 4, 2007 Positioned to Capitalize on Growth in 3G Market NASDAQ 20th Investor Program
Slide 15: Appendix
15 Appendix
Slide 16: Licensees as of November 2007
16 Licensees as of November 2007
Slide 17: Cash Flow Reconciliation
17 Cash Flow Reconciliation This presentation includes free cash flow, a non-GAAP financial item. The table above presents a reconciliation of this non-GAAP line item to net cash provided by operating activities. Management believes that investors may find this non-GAAP financial measure useful in u