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Wireless Control Software and Technology
Nasdaq NM: UEIC
Safe Harbor Statement
Certain statements made over the course of this presentation may be
forward-looking in nature, involving known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance and achievements of the company to be materially
different from any future results, performance or achievements implied
by such forward-looking statements. To the extent that there are any
forward-looking statements made during this presentation, we wish to
refer you to the risk factors discussion in recent releases and forms
filed with the SEC.
Confidential Universal Electronics Inc © 2005
Universal Electronics Introduction
Management and Board
Paul Arling, Chairman and CEO
9 years UEI, Formerly President and COO, CFO, Formerly Lesco CFO
Rob Lilleness, President and COO
4 years UEI, Formerly Microsoft, Trilogy and Ernst & Young
Satjiv Chahil, Director since 2002
SVP Marketing, Personal Systems Group at HP; Palm, Sony, Apple,
IBM Experience
Bruce Henderson, Director since 1996
Chairman, CEO Imation; Former Invensys, TRW, McKinsey
Bill Mulligan, Director since 1992
Partner Primus Ventures; First Chicago, McKinsey
J.C. Sparkman, Director since 1998
Former COO TCI, Shaw Communications Director
Confidential Universal Electronics Inc © 2005
Universal Electronics Background
Global Leader in Wireless Control Software and
Technology
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Focus on unifying disparate technologies in the home and
simplifying a complex home
Enable consumers to control and interact with devices and systems
that deliver entertainment, information, and services
Provide “Intelligence Inside” Computers,
Consumer Electronics, and Remote Controls
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Software and licensing
Microcontroller chips
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Turnkey solutions
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Strong Financial Position and Operating Model
Positioned for Growth
„
Strong sales and earnings growth; $42.3 million in cash, equivalents
and short-term investments as of September 30, 2005
Confidential Universal Electronics Inc © 2005
Our Vision
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Become the interface for the connected home
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Network of devices/nodes
All nodes speak a different language
UEI to unify nodes in common language and
interface (infrared and radio frequency)
To Connect, Control, and Interact with entertainment,
information, and services
Confidential Universal Electronics Inc © 2005
Core Market: Audio/Video Control
Average American watches 45 Hours of T.V. per day
Cable VOD HH are estimated
to grow from 11 Million in 2004
to 20+ million in 2006
Personal Video Recording
(PVR) will reach more than 15
million HH next year
DVDs are in more than half of
US homes, Home Theater in
more than 40%
HDTV will more than double
between 2004 and 2006
There are 5.5 Remote
Controls in the home
Estimated $1+ Billion Market
Confidential Universal Electronics Inc © 2005
New Market: Networked Control
Consumers are taking 2-3
billion digital photos per
month
WIFI HH:
- 3.1MM HH in 2002
- Over 6MM HH in 2003
- 75MM WIFI Users by 2008
Consumers are transmitting
an estimated 5 billion digital
music files per month
Estimated $500 Million Market
Confidential Universal Electronics Inc © 2005
UEI Technology Overview
Consumer
Handhelds
Nevo®
Display
Devices
Windows®
PC
150 IP/Patents
Focused on consumer ease-of-use
Infrared/Wifi Control Software
230,000 control codes/Digital Media Stack
Interfaces
TM
Kameleon
Form Factors
Standard
Remotes
RETAIL COMPUTING
Core Technology
OEM/Cable/Sat
Confidential Universal Electronics Inc © 2005
Powering Global Leaders
Cable/Satellite
Consumer Electronics
Retail
Computing
Over 200 million touch our technology every week
Confidential Universal Electronics Inc © 2005
The Connected Home
UEI technology first powered A/V devices…
TV
AV Receiver
…now it powers the sharing and control of
digital media as well.
DVD Player
Digital
Set Top Box
Zensys, Zigbee
Music
Photos
Video
The
Internet
Personal Computer
Provisioned Services
Home
Automation:
Lighting/HVAC
Auto
Confidential Universal Electronics Inc © 2005
Nevo Digital Media Control
New Market: Custom Installer/CEDIA
2004 CEDIA Control Device Sales $200M*
*Parks and Associates
Confidential Universal Electronics Inc © 2005
Quarterly Net Sales
$51.7
$40.0
$35.5
$32.6
Q4
Q1
$30.3
$41.5
$44.3
Q1
Q2
$46.2
$34.0
$27.7
Q2
Q3
2003
Q3
Q2
2004
Q4
Q3
2005
(dollars in millions)
Confidential Universal Electronics Inc © 2005
Strong Balance Sheet
$58.5
•$137 million in Assets
•$99 million Net Assets
•Debt Free
$42.5
$40.6
$34.3
$20.8
$13.3
1997
1998
-$6.1
-$3.3
1999
2000
2001
2002
2003
2004
Cash, Equivalents, and Short-term Investments as of December 31 (dollars in
millions)
Confidential Universal Electronics Inc © 2005
Investment Highlights
„
Global Leader in Wireless Control Software and
Technology
„
Device code database de facto standard
Largest patent portfolio in space
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Broad customer base
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Expanding Market Opportunity
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Taking market share in core markets
Solid product pipeline
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Expanding technology to allow digital media access and control
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Strong Financial Position and Operating Model
Positioned for Growth
„
Strong sales and earnings growth; $42.3 million in cash, equivalents and
short-term investments as of September 30, 2005
Confidential Universal Electronics Inc © 2005
Nasdaq NM: UEIC
www.uei.com