Slide 1: Needham Growth Conference
Needham Growth Conference New York City January 14, 2016
Slide 2: Forward-Looking Statements
Forward-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 expectations, as
Slide 3: What’s Our Business Model?
What’s Our Business Model? Develop core Contribute those Secure a very fair technologies, with a technologies to license from market focus on mobile broadly horizontal participants for use and standards markets of technologies InterDigital develops InterDigital was a leader With less than 50% of the
Slide 4: How We Differ From Other Licensing Cos.
How We Differ From Other Licensing Cos. • We don’t rely on portfolio acquisition Our team of almost 200 engineers is constantly working to expand our technology footprint in mobile. It’s a supply chain, not a portfolio we buy. • As a result, our business is self-sustaining Our research success creat
Slide 5: Upside Potential Layered on a Stable Recurring Revenue Base
Upside Potential Layered on a Stable Recurring Revenue1 Base Recurring Revenue 120.0 100.0 Q4 2015 Guidance High Range 2 80.0 Q4 2015 Guidance Low Range 2 60.0 Current Technology Solution Revenue 40.0 Per-unit Royalty Revenue 20.0 Fixed-fee Amortized Royalty Millions $ Revenue - Total Recurring Reve
Slide 6: Coupled with Carefully Managed Expenses
Coupled with Carefully Managed Expenses IP enforcement and non-patent Pro Forma Operating Expense* litigation expenses $40.0 $25.0 $36.0 $32.0 $20.0 $28.0 $24.0 $20.0 $15.0 $16.0 $12.0 $10.0 $8.0 $4.0 $5.0 Millions $- Millions Q1 '13 Q3 '13 Q1 '14 Q3 '14 Q1 '15 Q3 '15 $0.0 *Pro forma operating expen
Slide 7: So Where’s the Growth Opportunity?
So Where’s the Growth Opportunity? Needham, January 14, 2016 7
Slide 8: Immediate Focus: Grow Our Licensing Revenue
Immediate Focus: Grow Our Licensing Revenue 9% Substantial growth opportunity 6% Huawei Xiaomi remains in simply 5% Lenovo LG extending current 5% ZTE MMO - Nokia 3G/4G licensing 4% OPPO TCL- Alcatel program Top 10 Global Handset Vendors 3% vivo Coolpad not Contributing Revenue* 3% 3% 3% 2% *Source:
Slide 9: While the Handset Market Continues to Grow
While the Handset Market Continues to Grow Worldwide 3G/4G Handset Shipments* 2,500 The market has matured, but higher-end units 2,000 LTE with stronger 3G ASPs continue to 1,500 see strong growth, with LTE 1,000 dominating the market until the 500 likely advent of Millions 5G in the 2020s 0 2013 20
Slide 10: Longer Term: License the IoT Connections
Longer Term: License the IoT Connections IoT Connected Devices by Industry 25,000 20,000 Military & Aerospace Medical 15,000 Industrial 2020 Consumer 10,000 Computers Communications 5,000 Automotive 2025 Millions 2G 3G 0 2015 2017 2019 2021 2023 2025 Highspeed LTE LTE for M2M Source: IHS IoT Connect
Slide 11: Longer Term: Licensing the IoT Platform
Longer Term: Licensing the IoT Platform • We’ve helped drive standards-based IoT since the start The first meeting of the ETSI TC M2M Committee was in January 2009. We were there. In 2010, InterDigital unveiled a prototype M2M system that was used as a platform for the first multi-company M2M standa
Slide 12: Ongoing: Return Value to Shareholders
Ongoing: Return Value to Shareholders InterDigital Share Buybacks, 2012 – 2015 Q3 $60.00 2.500 $50.00 2.000 We don’t just buy back – we buy back Shares Repurchased (M's) $40.00 intelligently. Since Q1 Average Price 1.500 $30.00 2012, our Buyback 1.000 ROI* is 17%. $20.00 0.500 $10.00 *Buyback ROI is
Slide 13: Reconciliation of Pro Forma Operating Expense to Total Operating Expense
Reconciliation of Pro Forma Operating Expense1 to Total Operating Expense 2013 2014 2015 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Operating Expenses Patent administration and licensing $ 36.9 $ 33.2 $ 36.8 $ 36.2 $ 33.7 $ 31.3 $ 33.9 $ 34.9 $ 31.6 $ 31.2 $ 28.4 De
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