Slide 1: Q1 2016 Investor Presentation
Q1 2016 INVESTOR PRESENTATION MAY 9, 2016
Slide 2: Safe Harbor
|SAFE HARBOR During this presentation, management may make forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, Words such as “expects,” ‘anticipates intends,” “plans,” “b
Slide 3: DTS, Inc. 3/31/16 Snapshot
DTS, INC. 3/31/16 SNAPSHOT tacloss staton nine US Forhon-GAAP pupeses. te Compa sua a ormaized at of 0% in 2016, 2018, 2014 and 2018 esos $48 man n even, $88 men operting expense a 09 len cnt of oad Slt aut i Revenue 2018A vs, 2016E Stock/Financial 2016E Revenue Breakdown by Market Information $180M
Slide 4: DTS Market Drivers
DTS MARKET DRIVERS Drives
Slide 5: Core Revenue Markets
CORE REVENUE MARKETS as Home TVs Blu-ray stand alone players AVRs Soundbars Wireless speakers Game consoles Set-top-boxes = Mobile LJ Smartphones Tablets PCs Gaming Headsets oa Note: See Appendix A for old-to-new market definitions Automotive Auto-head units oooo 0000
Slide 6: Home
HOME @) = (TVs, Wireless Speakers, Soundbars, Consoles, Blu-ray, etc.) ( Expansion Advanced cm (es eee Target Opportunity $110M-$120M Ecosystem DTS:X/Headphone:X enable advanced functionality Play-Fi modules dri ASP Expansion higher revenue Licensed Units Lapa a hen: Targeting 10% penetration Broade
Slide 7: Mobile
MOBILE @ aE (Phone, Tablet, Accessories and PC) ‘em, Virtual Reality eS Products Target Opportunity ggoy.g70m Headphone:X for VR adds key functionality “aS ~~ Growth in VR drive: $20M demand for mobil Taiuet OD ail row | ‘ASP Expansion solitons ofr higher 5 DTS enabled content Licensed Units Sonia T
Slide 8: Automotive
AUTOMOTIVE == | Auto Head Units Geographic j Expansion & Target Opportunity ggoM.s110M Hybrid Radio DTS portfolio adds DTS portfolio adds Increased functionality Increased functionality Value-added services Value-added services Expand into Canada, Inits Continued design wins agkiea tend aver s2omr A
Slide 9: DTS Long-Term Model
DTS LONG-TERM MODEL 2020E Non-GAAP* Financial Targets Revenue $270- $300M Operating Income $105M - $135M Operating Margin 40% - 45% EPps** $4.50 - $5.85 ‘~Assumest8M outstanding share count " Operating Cash Flow $100M+ Attractive Effective Tax Rate (20-25%) Minimal Capex Requirements *Please refer t
Slide 10: 2016 Non-GAAP Results and Outlook
2016 NON-GAAP* RESULTS AND OUTLOOK Annual Quarterly FY 2016E FY 20154 { YoY Change ) Qt 2016 Q1 2015 { YoY Change ) Revenue $180M$190M —$138.2M 30%-37% $45.2M $33.9M 33% Operating Income $54M - $67M $325M 66%-106% $11.5M $73M 58% Operating Margin 30%-35% 23% 30%-52% 25% 21% 19% EPS $2.10-$2.25 $1.47
Slide 11: Appendix A: Revised Markets
APPENDIX A: REVISED MARKETS Previous Market Definitions New Market Definitions Broadcast less speakers nsoles jop-boxes undbars Mobil artphon Network-Connected P TV nartphon Pe Wireless Head units
Slide 12: Q1 2016
Q1 2016 INVESTOR PRESENTATION MAY 9, 2016