30 TH ANNUAL NASDAQ OMX LONDON

Transcription

1 30 TH ANNUAL NASDAQ OMX LONDON DECEMBER 4, InterDigital, Inc. All rights reserved.

2 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 to: (i) future results, projections and trends; (ii) our strategy and business plan; (iii) the company s revenue growth potential; (iv) future global mobile device sales and other market opportunities; and (v) targeted patent sales, joint ventures and other potential revenue opportunities. Such statements are subject to the safe harbor created by those sections. Words such as anticipate, believe, estimate, expect, project, intend, plan, forecast, "will," variations of any such words or similar expressions, and graphical timelines representing future estimates or events are intended to identify such forward-looking statements. Forward-looking statements are subject to risks and uncertainties. Actual outcomes could differ materially from those expressed in or anticipated by such forward-looking statements due to a variety of factors, including, without limitation: (i) the market relevance of our technologies; (ii) changes in the needs, availability, pricing and features of competitive technologies as well as those of strategic partners or consumers; (iii) unanticipated technical or resource difficulties or delays related to further development of our technologies; (iv) our ability to enter into additional patent license agreements on expected terms, if at all; (v) our ability to enter into sales and/or licensing partnering arrangements for certain of our patent assets; (vi) our ability to enter into strategic relationships or complementary investment opportunities on acceptable terms; (vii) changes in the market share and sales performance of our primary licensees, delays in product shipments of our licensees and timely receipt and final reviews of quarterly royalty reports from our licensees and related matters; (viii) the resolution of current legal proceedings, including any awards or judgments relating to such proceedings, additional legal proceedings, changes in the schedules or costs associated with legal proceedings or adverse rulings in such legal proceedings; (ix) changes in the company s strategy going forward; and (x) changes or inaccuracies in market projections, as well as other risks and uncertainties, including those detailed in our Annual Report on Form 10-K for the year ended December 31, 2012, our Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 and from time to time in our other Securities and Exchange Commission filings. We undertake no duty to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law, regulation or other competent legal authority InterDigital, Inc. All rights reserved.

3 InterDigital Snapshot Invention, Collaboration, Contribution Four decades of discovery and innovation in wireless Pioneer in digital wireless technologies Key contributions to global wireless standards Inventing solutions for more efficient broadband networks ~175 engineers (80% of whom hold advanced degrees) Silicon Valley, CA (R&D) San Diego, CA (R&D) London, UK (R&D) Montreal (R&D) Melville, NY (R&D) King of Prussia, PA (R&D) Wilmington, DE (HQ) InterDigital, Inc. All rights reserved.

4 Years of Investment and Development, Driving a Global Portfolio > 650 M In Cumulative R&D Investment over Past Decade > 4 M Engineering Person-hours since 2000 > 20,000 Granted and Pending Applications 94% Of Patent Portfolio Developed In-House Data as of 05/ InterDigital, Inc. All rights reserved.

5 InterDigital s Under-appreciated Portfolio Area Of Innovation KNOWN TO MARKET, VALUED Applying To 2G/3G/4G CELLULAR CONNECTIVITY CELLULAR TERMINALS BANDWIDTH MANAGEMENT FUTURE WIRELESS WiFi SECURITY M2M/IoT WHITE SPACE VIDEO OPERATOR SERVICES CELLULAR INFRASTRUC. CONTEXT CONTENT ADVER- TISING Data as of 05/13 UNKNOWN TO MARKET, UNDER/UNVALUED InterDigital, Inc. All rights reserved.

6 InterDigital s Under-appreciated Portfolio MARKET & LICENSING OPPORTUNITY CELLULAR CONNECTIVITY M2M/ IoT BANDWIDTH MANAGEMENT WiFi WHITE SPACE CELLULAR DEVICES CONTENT SERVICES CONTEXT IoT SECURITY VIDEO InterDigital, Inc. All rights reserved.

7 InterDigital Research: Responding to Market Need 2009: Expanding the 4G presence Bandwidth Management Apps, Services and Security M2M FW (Future Wireless) WiFi 2G/3G Other 4G 2013: A Diversified Approach to 5G and Future Growth Drivers of Video, Wi-Fi and M2M Bandwidth Mgmt. Apps, Services and Security M2M Video Other FW (Future Wireless) 4G WiFi 3G Charts show invention activity within InterDigital R&D focus areas for each respective year and include many activities that have resulted in patent applications and some that have not InterDigital, Inc. All rights reserved.

8 Diversified Capital Management RESEARCH (included in Free Cash Flow) $562M FREE CASH FLOW 1 ~$1B From Jan through Q INCREASE IN CASH $650M DIVIDENDS $109M ACQUI- SITIONS $28M SHARE BUYBACKS 22M shares for $640M 2 1 Free cash flow is a supplemental non-gaap financial measure that InterDigital believes is helpful in evaluating the company's ability to invest in its business, make strategic acquisitions and fund share repurchases, among other things. 2 From January 1, 2006 until November 29, 2013, InterDigital repurchased 22 million shares for $640 million, including the repurchase of 0.4M shares for $12M between Oct 1, 2013 and Nov 29, InterDigital, Inc. All rights reserved.

9 4G Licensing: Early Momentum on Strong Terms Contract Expansions / Extensions Since 2012 SIERRA WIRELESS Added 4G CINTERION Added 4G, Product Coverage, Extended Term ACER Added Product Coverage (2013) PANTECH Added Product Coverage (2012) QUANTA Added 4G SII MOBILE Added 4G, Product Coverage, Extended Term BLACKBERRY Added 4G, Extended Term PANASONIC MOBILE Added 4G New Patent Licensing Agreements Since 2012 U-BLOX 2G, 3G, 4G WISTRON 2G, 3G, 4G SONY 3G, 4G TELTRONIC S.A. 4G InterDigital, Inc. All rights reserved.

10 Anticipated Market Growth Drives Opportunity Our plan to drive sustainable annual revenue to or above our $800M goal is driven by: 1. Extending the length or scope of licenses with existing licensees, and 2. Resolving current licensing disputes by entering into new licenses 3. at revenue rates comparable to current agreements 1,400 1,200 1, Rest of Market Companies in Litigation Existing Licensees SEE IMPORTANT EXPLANATORY NOTES ON NEXT SLIDE InterDigital, Inc. All rights reserved.

11 Important Explanatory Notes All unit volumes are based on the IHS isuppli (isuppli) Design Forecast Tool Mobile Forecast H This graph on the prior slide is intended to approximate our licensing opportunity and does not represent a forecast. Existing Licensees are limited to terminal unit providers that both have licenses at March 31, 2013 and are covered by isuppli (i.e., Apple, Sony, Blackberry, HTC, Sharp, Panasonic, NEC and Pantech). As a result, the Existing Licensees caption does not include all licensees under contract. We have included total 3G and LTE units for Existing Licensees for all periods based on isuppli estimates, irrespective of i) whether or not all such units are covered under existing license agreements and ii) the scheduled termination of some agreements prior to Revenue does not necessarily reflect the full value of royalties received or the actual royalty rate InterDigital, Inc. All rights reserved.

12 ITC Litigation Posture International Trade Commission (ITC) Investigation No. 337-TA-613 v. Nokia: Successful appeal of 2009 decision at the U.S. Court of Appeals of the Federal Circuit (CAFC), which reversed ITC finding of non-infringement Supreme Court denied Nokia petition to appeal in October 2013 Case has been remanded back to ITC for decision ITC Investigation No. 337-TA-800 v. Nokia, Huawei, ZTE: ALJ decision in late June split on several issues 4 patents valid but not infringed, 1 infringed but invalid, and 2 invalid and not infringed Full Commission granted both sides petitions for review, deciding to review the decision in its entirety decision anticipated by December 19, 2013 ITC Investigation No. 337-TA-868 v. Nokia, Huawei, ZTE and Samsung: Evidentiary hearing scheduled to begin February 10, 2014, with Initial Determination due in mid-may and investigation slated for completion in September 2014 Case includes two key patents from 613 investigation v. Nokia InterDigital, Inc. All rights reserved.

13 Steered by an Industry-leading Team BILL MERRITT President & CEO Joined InterDigital in 1996 President and CEO since 2005 Named in Bloomberg s Tech s Top Turnaround Artists in 2013 LARRY SHAY EVP Intellectual Property and Chief IP Counsel Ten-year InterDigital veteran 20+ years of licensing experience SCOTT McQUILKIN Senior EVP Innovation Former Senior EVP, Finance and Strategy 25+ years of public company executive experience ALLEN PROITHIS EVP Solutions Group Former Head of Strategy & Business Development for the Handheld business unit of Hewlett-Packard InterDigital, Inc. All rights reserved.

14 Steered by an Industry-leading Team JIM NOLAN EVP R&D (Labs) Senior engineering officer, R&D lead at InterDigital since 2006 Recognized industry expert, columnist and speaker RICH BREZSKI Chief Financial Officer Major firm tech & telecom industry audit experience at PWC More than a decade leading transformational Finance initiatives at InterDigital Dr. TODD SIMPSON EVP Innovation Partners Former Chief of Innovation, Mozilla Inc., CEO of Ditech Networks, founder of multiple technology companies DON DINELLA Chief Licensing Officer and Chief Licensing Counsel Former Chief IP Counsel, Alcatel-Lucent InterDigital, Inc. All rights reserved.

15 INVESTOR CONTACT PATRICK VAN DE WILLE InterDigital, Inc. All rights reserved.