Slide 1: December 2008 NASDAQ OMX 22nd Investor Program
December 2008 NASDAQ OMX 22nd Investor Program
Slide 2: Forward-looking statements
3 (c) 2008 InterDigital, Inc. All rights reserved. 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,
Slide 3: Shaping the Future of Digital Wireless Technologies
5 (c) 2008 InterDigital, Inc. All rights reserved. Shaping the Future of Digital Wireless Technologies Contribute to Standards License Patents Develop Wireless Products 35 Year Digital Cellular Technology Pioneer Thousands of patents worldwide Inventions used in every mobile device Key Contributor t
Slide 4: The Mobile Device Market Opportunity
7 (c) 2008 InterDigital, Inc. All rights reserved. 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 2012 Our Goal - Secure Cash Flow On Every 3G Mobile Device Millions of units Source: Strategy A
Slide 5: A History of Innovation...
9 (c) 2008 InterDigital, Inc. All rights reserved. A History of Innovation... Starting in the early 1980s, developed key inventions used in 2G systems today: Fundamental system architecture Roaming and handoff techniques Distributed base station technologies In the early 1990s, continued pioneering
Slide 6: ...Drives Solid Financial Results
11 (c) 2008 InterDigital, Inc. All rights reserved. ...Drives Solid Financial Results Solid Financial Performance - First Nine Months 2008 Net income of $22.4 million, or $0.48 per share $77 million free cash flow* Repurchased $73 million of common stock Recent Samsung Announcement Resolves 2G dispu
Slide 7: Global Reach
13 (c) 2008 InterDigital, Inc. All rights reserved. Global Reach These trademarks are the sole property of their respective owners. Sampling of customers, licensees, and strategic relationships
Slide 8: Solid Recurring Licensing Royalty Revenue
15 (c) 2008 InterDigital, Inc. All rights reserved. Solid Recurring Licensing Royalty Revenue ** ** Excludes revenues for past sales $ in Millions * Due to a transition in revenue recognition, includes only 3 quarters of per unit royalties
Slide 9: Strong Free Cash Flow Drives Shareholder Value
17 (c) 2008 InterDigital, Inc. All rights reserved. Strong Free Cash Flow* Drives Shareholder Value Solid Balance Sheet $ in Millions $ in Millions Returning Value to Shareholders & Investing in the Business * InterDigital defines "free cash flow" as operating cash flow less purchases of property an
Slide 10: SlimChip Family of Offerings for Distinct Market Segments
19 (c) 2008 InterDigital, Inc. All rights reserved. 2G 3G / Mobile Broadband Basic Mobile Phones Feature/Smart Phones Data-Centric Devices Projected Annual Mobile Device Shipments (M units) Emerging mobile broadband segment exceeds 400M units in 2012 Feature phones exceed 1B units and smart phones r
Slide 11: Enabling Mobile Broadband Devices
21 (c) 2008 InterDigital, Inc. All rights reserved. Enabling Mobile Broadband Devices 2006 2007 2008 High Performance Baseband ICs Reference Platforms 2G/3G dual mode baseband modem with HSDPA/HSUPA Mobile Broadband IP NXP (formerly Philips): 3G HSDPA IC design Infineon: WCDMA/HSDPA protocol stack G
Slide 12: Key InterDigital Takeaways
23 (c) 2008 InterDigital, Inc. All rights reserved. Key InterDigital Takeaways Leading Developer of Digital Wireless Technology Consistent track record of successful innovation and licensing programs with top tier OEMs Advanced family of SlimChip modem solutions Influential member of multiple standa
Slide 13: 3G Revenue Growth Potential
25 (c) 2008 InterDigital, Inc. All rights reserved. 3G Revenue Growth Potential $950 $700 $475 $240 $1.00 $1,425 $1,050 $700 $350 $1.50 $1,900 $1,425 $950 $475 $2.00 Potential Annual Revenue per 3G device in 2012 ($ millions) 25% 50% 75% 100% Patent position drives market penetration Product drives
Slide 14: Positioned to Capitalize on Growth in 3G Market
December 2008 Positioned to Capitalize on Growth in 3G Market
Slide 15: Appendix
interDigital’ Appendix
Slide 16: Licensees as of December 1, 2008
31 (c) 2008 InterDigital, Inc. All rights reserved. Licensees as of December 1, 2008 Alcatel Espana American Telephone and Telegraph Company (AT&T) Apple Inc. Arima Communications Corporation ASUSTeK Computer Danger Inc. Denso Corporation Giant Electronics, Ltd. High Tech Computer (HTC) Hitachi Ltd.
Slide 17: Cash Flow Reconciliation
33 (c) 2008 InterDigital, Inc. All rights reserved. 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