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Making Money With HD RadioTM Technology Presented to Rising Through The Ranks

August 16, 2017

Joe D’Angelo Senior Vice President Xperi, Inc.

Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY AGENDA Who we are at Xperi

What Is HD RadioTM Technology

HD Radio Technology by the Numbers

The Battle for the Dashboard

Programming, Promotions & ROI

Summary

1 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc.

Machine Learning

SiP Image Sensor Connected Radio Wafer Bonding Virtualization Semiconductor IP Product Product Technologies & Licensing Licensing

Licensing Biometrics IP Licensing

Semiconductor Wireless Audio

Packaging Digital

Radio

Iris Recognition Memory 2.5D/3 DMS

Interconnect Technologies Interconnect Stacking D IC Audio Compression

MEMS Imaging

2 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. Machine Learning Product Licensing Solutions • Xperi Technologies are Integrated in More Than 5B Devices Worldwide

Automotive Mobile Home

Auto-head units Smartphones TVs Broadcast Tablets Blu-ray players infrastructure PCs AVRs Driver assistance Gaming headsets Soundbars technology Drones Wireless speakers Activity cameras Game consoles Mobile applications Set-top-boxes

HD Radio™ FotoSavvy™ DTS HD Master Audio™ DTS HD Master Audio™ FacePower™ DTS X™ / Virtual X™ DTS Neural Surround™ DTS HeadphoneLX IMAX Home Automotive DMS DTS Sound Play-Fi™

TAM = ~230B units

3 *TAM: Total addressable market Source: IHS, IDC, Parks Associates, Sensian Research, Prisemark LLC Nov 2016 report and DTS internal data Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY HOW IT WORKS 1 Analog and digital signals sent separately 1 2

3 2 Audio combined prior to transmission

3 Composite signal transmitted by station 4 4 Multipath distortion only affects analog signal

Broadcast is compatible with both analog and 5 digital radios — only digital radios receive digital multicast channels 5

4 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY AUDIO FEATURES

HD RADIO AUDIO PROGRAMMING IS 100% SUBSCRIPTION FREE!

Program Info displays information such as artist, song title and album name.

FM stations can divide the digital signal offering up to 3 additional digital only audio programs on HD2/HD3/HD4 multicast channels. Across the US there are over 2,100 AM and FM stations now with HD Radio Technology, and over 1,800 extra local HD2/HD3/HD4 channels also available.

HD Radio Technology offers crystal clear, static free sound with none of the clicks, hisses

or pops associated with traditional analog radio. FM sounds like CD quality and AM

sounds like FM stereo.

Images related to the broadcast can be displayed on the radio display, including items such as album cover art and station or advertiser logos.

5 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY DIGITAL AUDIO FEATURES Digital 1 of analog signal ADULT CONTEMPORARY DEMOGRAPHICS: WOMEN 25-54

Targeted 2 Smooth Jazz SMOOTH JAZZ FM STATIONS CAN DIVIDE THEIR DEMOGRAPHICS: ADULTS 35-64 DIGITAL SIGNAL OFFERING INTO UP TO 3 ADDITIONAL DIGITAL-ONLY AUDIO PROGRAMS ON HD2 / 3 / 4 Simulcast of MULTICAST CHANNELS 3 co-owned AM ALL NEWS All-News station DEMOGRAPHICS: MEN 25-54

Network 4 Programming NETWORK DEMOGRAPHICS: MEN 18+

6 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY HONDA AUTO IMPLEMENTATION

Images related to the broadcast can be displayed on the radio screen, such as album cover art and station logos.

FM stations can divide the digital signal offering up to 3 additional digital only audio programs on HD2-HD3-HD4 multicast channels.

Program Info displays information such as artist, song title and album name.

HD Radio Technology offers crystal clear, static free sound with none of the static, hiss or pops associated with traditional analog radio. FM sounds like CD quality and AM sounds like FM stereo.

13 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY BY THE NUMBERS

95%+ of all Americans are able to receive an HD Radio signal 79% of radio listening is to stations broadcasting via HD Radio Technology Virtually 100% coverage of top 100 Nielsen Metros Weekly reach of HD2-HD3-HD4 channels alone is almost 8.4 million 41%+ of cars sold in 2016 in the U.S. came with HD Radio Technology All 36 popular vehicle brands in the U.S. offer HD Radio Technology 200+ U.S. vehicle models offer HD Radio Technology; 100+ as standard

As of April 2017

8 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY BY THE NUMBERS

HD Radio multicast-only listening (Total U.S.) (HD2 / HD3 / HD4 channels only)

Weekly Reach in Thousands

Source: Nielsen Audio NRD Database Persons 12+ Total U.S. Includes analog translator listening 9 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY BY THE NUMBERS

U.S. Stations Converted: 2,410

Stations On-Air / HD2-HD3-HD4 Digital Channels: 2,148 / 1,905

Total HD Radio Audio Services (Digital Channels): 4,053

Total HD Radio Artist Experience Stations / Channels: 866 / 1,565

Stations Delivering Digital Traffic Services (iHeart and BTC): ~700

TSL to digital audio services in HD Radio-Equipped Cars: 103M hours/wk

As of April 2017

10 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY BY THE NUMBERS

Almost 36 million HD Radio-equipped cars on the road in North America + Over 4 million consumer HD Radio home and portable receivers = Over 40 million HD Radio receivers in U.S., Canada & Mexico HD Radio auto penetration over 15% in the 25 largest U.S. cities: : 23.4% of all cars on the road City: 22.8% of all cars on the road : 21.1% of all cars on the road West Palm Beach: 21.0% of all cars on the road : 18.3% of all cars on the road

As of April 2017

11 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. THE BATTLE FOR THE DASHBOARD All major auto brands offer factory-installed HD Radio Technology

216 212 Vehicle Brands (Chevy, Ford etc.) 198 Vehicle Models (Malibu, Focus etc.) HD Radio Technology Standard 166 154

109 114 109 86 92 76 67 61 36 33 36 36 36 16 21 28 2010 2011 2012 2013 2014 2015 2016 Y-T-D

9 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY PROGRAMMING, PROMOTIONS & ROI . Programming Strategy: . Flanking a competitor . Company: . CBS Radio - . Station: . WLIF New Country 101.9 HD2 / 106.1 FM . Approach . “New Country 106.1” is a translator fed from the HD 2 channel of CBS Radio's 101.9 FM . The programming strategy is to challenge perennial country leader WPOC . The translator signal of New Country 106.1 targets country hot zips in the Baltimore market for a direct selling approach

15 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY PROGRAMMING, PROMOTIONS & ROI . Programming Strategy: . Rounding out a cluster . Company: . Apex Broadcasting - Charleston, SC . Station: . WMXZ HD2 99.3 The Box . Approach . The Box features a locally-targeted Urban Contemporary format . Apex’s strategy is to develop ROI with Urban and Hip Hop listeners in the market . The HD2 channel complements the Hot AC main channel . Both content offerings are well branded and targeted for the market

16 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY PROGRAMMING, PROMOTIONS & ROI . Programming Strategy: . Introducing a niche brand . Company: . Saga Broadcasting – Springfield, MA . Station: . WLZX 99.3 HD2 / Hits 94.3 FM . Approach . CHR formatted “Hits 94.3” targets the 5 major colleges of Hampshire County MA. . “Super serves” the student population of the area with 2 specific brands. . Rock-formatted main channel serves the rock audience. . The HD2 channel is niche programmed CHR to appeal to area’s student population and establish a new brand for the station.

17 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY PROGRAMMING, PROMOTIONS & ROI . Programming Strategy: . Rounding out content offering in the market . Company: . Minnesota Public Radio . Station: . KNOW 91.1 / 91.1 HD2 / 91.1 HD3 . Approach . 91.1 KNOW is an NPR affiliate station offering full NPR/APM content . The HD2 channel has a well-regarded classical format . The HD3 channel offers a special musical service called “The Current”. . Listeners can support the station with the purchase of HD Radio receivers through a link to Amazon directly from the station’s website.

18 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY PROGRAMMING, PROMOTIONS & ROI . Station: . KNDE Candy 95.1 / Rock Candy HD2 / Play By Replay HD3 . Main Marketing Premises: . All 3 HD Radio channels targeted at market’s 46,000 college students . HD2 has heavy local emphasis on indie and local band scene . HD3 is “Play by Replay”, with local High School & College sports . Key Selling Propositions: . Create artificial scarcity (“shortage”) with only 2 min/hour of spots, & only 5 sponsors . Creative packages - Sold local apartment complex 6 month schedule (spots & mousepads) . Gave their prospective advertisers HD Radio receivers so they could hear the station . Unique Sales Opportunity: . Local high school & college sports play-by-play guarantees advertisers & listenership

19 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY PROGRAMMING, PROMOTIONS & ROI . Station: . WXCY HD2 Graffiti Radio . Main Marketing Premises: . Recognize paying attention to listener’s wants, needs and desires key to growth . Getting young consumers when buying are being formed . Crafting advertising vehicle listeners & advertisers both wanted to be involved with . Key Selling Propositions: . Positioning the station like FM was positioned in the late 60’s; young, hip, underground . Selling sponsors annual campaigns emphasizing creating young consumer loyalty . Filling need in marketplace for their unique alt rock music mix . Unique Sales Opportunity: . Station-specific spots that speak directly to their audience

20 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY PROGRAMMING, PROMOTIONS & ROI . Station: . WCKT 107.1 / HD2 . Main Marketing Premises: . Create new NTR (Non-traditional Revenue) stream . Use HD2 to generate new dollars via annual event . Take advantage of all station’s digital on-air assets . Key Selling Propositions: . Create event to fill restaurants, hotels and local businesses during off season . Involved BMI to get songwriters to appear; hotels comp’d rooms, station promoted event . Involve multiple market/cluster stations to maximize revenue potential . Unique Sales Opportunity: . Local convention & visitors bureau was anchor sponsor & provided volunteers to work

21 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. HD RADIO TECHNOLOGY ARTIST EXPERIENCE Images related to the broadcast can be displayed on the radio screen, such as album cover art and advertiser or station logos

14 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. Monetizing HD Radio Channels Artist Experience Images related to the broadcast can be displayed on the in-car display, such as album cover art, station logos and of course advertiser logos

21 Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. Monetizing HD Radio Channels

IN-VEHICLE DISPLAYS LIFT MESSAGE RECALL FOR ADS

Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. Monetizing HD Radio Channels LISTENERS REMEMBER MORE BRANDS WITH ENHANCED ADS

Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. Monetizing HD Radio Channels LISTENERS REMEMBER MORE BRANDS WITH ENHANCED ADS

Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc. Information on this slide is confidential property of DTS. Any unauthorized copying is strictly prohibited. © 2016 DTS, Inc.