Dolby Laboratories, Inc. (DLB)’s First Quarter 2015 Earnings Conference Call Transcript

Page 4 of 11

In China, we continue to see an increase in both the amount of local Chinese content and the number of channels on air in Dolby. This quarter, China Telecom included Dolby Digital Plus in its Internet Smart TV specification. Dolby is also well positioned in Africa to be a part of the transition to digital broadcast throughout the region. Dolby Digital Plus is currently included in broadcast standards in South Africa, Ghana, Kenya and Nigeria. Recently, Multichoice, one of the largest pay TV operators across Africa, adopted Dolby and its HD platform.

Now let me touch on our mobile segment. Dolby Technology enriches the mobile entertainment experience with premium sound which significantly enhances the overall experience. This month, HTC announced that they will be adopting Dolby Technologies on their new Desire 826 smartphone. Additionally, Lenovo has continued to adopt Dolby on its line of tablets. This quarter, the Yoga 2 and Yoga 2 Pro tablets which both includes Dolby audio have started shipping. Dolby was also included in the ZTE Grand SII and the Tesco Hudl 2 both of which launched this quarter. In addition Amazon Fire HDX 8.9, which is the first tablet to include Dolby Atmos has received excellent reviews for its audio quality.

We also saw a lot of momentum around Dolby Atmos for the home with CES just a few weeks ago. Nearly a dozen existing and new partners demonstrated Dolby Atmos for the home and their products, many of which were available over the recent holiday shopping season. This includes AVRs from Denon, Onkyo, Marantz, Pioneer, Integra and Yamaha as well as Dolby Atmos-enabled speakers from Pioneer, KEF, Triad, Atlantic Technology, Definitive Technology and Onkyo. This is just the beginning, and we expect more products to launch this year supporting Dolby Atmos for the home. The content ecosystem meanwhile for Dolby Atmos in the home continues to grow. Paramount, Warner Bros. and Lions Gate have publicly committed to release Dolby Atmos Blu-ray titles, the first have already been released.

Additionally, VUDU is the first streaming service to support Dolby Atmos for the home. We also continue to see an increase in the adoption of Dolby Atmos into cinema. We have great momentum with studios, content creators, post-production facilities and exhibitors. Currently there are around 900 screens committed globally and more than 230 titles released or announced in Dolby Atmos. 13 of the 15 highest grossing titles in 2014 were in Dolby Atmos. Recent releases include The Hobbit: The Battle of the Five Armies, American Sniper and Unbroken. Just last week, all of three of these were nominated for Academy Awards in the Sound Categories.

Within the cinema market we see the highest growth coming from the premium large format segment. Exhibitors are making large investments in this space to create new and more exciting venues that will attract more moviegoers. In recognition of this, we introduced Dolby Cinema this quarter, a solution that uniquely incorporates our leading audio and imaging technologies. Dolby Cinema is a highly differentiated experience. It combines Dolby Atmos for immersive of audio, Dolby Vision laser projectors for an unparalleled visual experience as well as inspired design.

Page 4 of 11