XPERI Q2 2020 INVESTOR DECK August 10, 2020
Safe Harbor This document contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Xperi Holding Corporation’s (the “Company”) current expectations, estimates and projections about the Company’s financial results, forecasts, and business outlook, the benefits of the merger with TiVo, expected cost and revenue synergies in connection with the merger with TiVo, anticipated timing of the separation of the Company’s IP and Product businesses, growth expectations of the Company’s businesses, projected benefits of the Company’s products and services, the achievement of the Company’s IP revenue baseline and growth opportunities, the projected growth of the end markets applicable to the Company’s intellectual property, products and services, and the Company’s anticipated capital allocation strategy. In this context, forward- looking statements often address expected future business, financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “see,” “will,” “may,” “would,” “might,” “potentially,” “estimate,” “continue,” “expect,” “target,” similar expressions or the negatives of these words or other comparable terminology that convey uncertainty of future events or outcomes. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond our control, and are not guarantees of future results, such as statements about the anticipated benefits of the transaction. These and other forward- looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: challenges in integration of Xperi and TiVo operations after the merger, anticipated tax treatment, unforeseen liabilities, future capital expenditures, revenues, cost savings, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business strategies, and expansion and growth of the Company’s businesses; failure to realize the anticipated benefits of the recent merger with TiVo; the Company’s ability to implement its business strategy; pricing trends, including the Company’s ability to achieve economies of scale; the ability of the Company to retain and hire key personnel; potential adverse reactions or changes to business relationships resulting from the merger with TiVo; uncertainty as to the long-term value of the Company’s common stock; legislative, regulatory and economic developments affecting the Company’s business; general economic and market developments and conditions; the evolving legal, regulatory and tax regimes under which the Company operates; unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or hostilities, natural disasters, the outbreak of coronavirus (COVID-19) or similar outbreaks or pandemics, and their effects on economic and business environments in which the Company operates, as well as the Company’s response to any of the aforementioned factors; the extent to which the COVID-19 pandemic and related events continue to have an adverse impact on our business, results of operations, and financial condition will depend on future developments, including measures taken in response to the pandemic, which are highly uncertain and cannot be predicted; and any plans regarding a potential separation of the combined business. These risks, as well as other risks associated with the transaction, are more fully discussed in the Company’s filings with the U.S. Securities and Exchange Commission (“SEC”), including the Company’s Quarterly Report on Form 10-Q. While the list of factors presented here is, and the list of factors presented in the Company’s filings with the SEC are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on the Company’s consolidated financial condition, results of operations, liquidity or trading price of common stock. The Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. 2
One Company, Two Businesses Product IP Licensing Product business that delivers end-to-end Leading IP Licensing business with improved entertainment in the home and on-the-go visibility, customer diversification and scale Seamless end-to- end entertainment experience from 11,000+ patents and applications choice to consumption Media portfolio covering fundamental Enhances automotive in-cabin aspects of the video experience entertainment experience across all platforms Semiconductor portfolio covering Offers TV and car manufacturers fundamental packaging and additional ways to monetize processing technology consumption A Leader in Consumer & Entertainment Technology and IP Licensing 3
The New Xperi Delivering Innovative Technologies in Sight, Sound, and Beyond Headquartered in 2000+ employees 11,000+ patents and Listed on Nasdaq San Jose, CA worldwide applications XPER 4
Transformative Initiatives to Drive Shareholder Value Integration Separation Separate Business Operations Revenue Synergies • Spin off Product business from IP • Roadmap for TiVo Stream embedded business in ~12 months in TVs and integrated product solutions Focus • Roadmap for connected car media Areas solutions Cost Synergies • Drive synergies of at least $50M annually by the end of 2021 5
Consumer Experience Product Markets Connected Car Pay-TV 6
Products Markets Consumer Experience Find/Watch Enjoy Monetize Understand • Audience Viewership Data • Intelligence on • TiVo Stream • DTS Audio Solutions the Edge • Advertising • TiVo DVR • Imaging • AVOD, vMVPD, SVOD, TiVo+ • IMAX Enhanced • Content ID, Search & Discovery Pay-TV Connected Car Find/Watch/Listen/Enjoy Sense Find/Watch/Enjoy • Digital Radio • Driver Monitoring • Classic Guides • TiVo Legacy • Connected Media • Occupancy Monitoring • IPTV • Infotainment Monetization 7
Products Path to Drive Long-Term Growth Consumer Experience Connected Car Pay-TV • Drive Stream footprint • Deliver fully immersive • New UX design wins Connected Media Platform • Monetization of media • IPTV conversions consumption & engagement • Deliver Occupancy and Driver Monitoring Solutions • IMAX Enhanced growth • Perceive chip penetration Growth through enhanced Growth through connected Drive platform conversions entertainment experiences and safe in-car experiences to help MSOs offset churn 8
Consumer Experience Find, Watch, Enjoy Disruptive Platform for Monetization Monetize TiVo Stream Transform home entertainment discovery and presentation media consumption & through integrated, intelligent user experience, audio, imaging, and wireless solutions providing expanded channel, and larger engagement for TV OEMs TAMs with opportunities for ad monetization and Content Providers 100M+ TVs Existing OEM Relationships with ICs and all top 10 TV brands Integrated solutions for TV OEMS 30M Households 9
TiVo Stream Roadmap to Revenue Synergies 2020 2021 - 2022 2023 Footprint Conversion Engagement Footprint + $ $$ $$$$ Engagement Monetization Phase 1 Phase 2 Phase 3 Stream as an May 2020 Stream as a embedded application Stream 4K Launch comprehensive Smart for Smart TVs TV platform 10
Connected Car Platform for Entertainment & Safety Revolutionizing the in-cabin automotive experience through highly personalized, connected infotainment (information, safety, entertainment) solutions for the global automotive market Building an ecosystem that delivers an in-car entertainment experience to consumers, and recurring revenue opportunities for Xperi, car manufacturers, and content owners Infotainment Partnerships 52 % HD Radio In-cabin Leader with all major Tier 1s, penetration rate Monitoring Broadcasters and 41 in U.S. autos / Leading Global digital supporting safety auto brands sold in Connected Radio radio database and 70M standards launch Q4’20 North America rich music assets 11
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