APX Group Holdings, Inc.

2nd Quarter 2015 Results

August 11, 2015

2

APX Group Holdings, Inc. (the ”Company”, “Vivint”, “we”, “our”, or “us”) obtained the industry, market and competitive position data included in this

presentation from its estimates and research as well as from industry publications, surveys and studies conducted by third parties. Industry

publication studies and surveys generally state that the information contained therein has been obtained from sources believed to be reliable but

there can be no assurance as to the accuracy or completeness of such information. While APX Group, Inc. believes that each of the publications,

studies and surveys is reliable, We have not independently verified industry, market and competitive position data from third-party sources. While we

believe our internal business research is reliable and the market definitions are appropriate, neither such research nor these definitions have been

verified by any independent sources. Accordingly, you should not place undue weight on the industry and market share data in this presentation.

This presentation includes forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, including but not limited to,

statements related to the performance of our business, our financial results, our liquidity and capital resources, our plans, strategies and prospects,

both business and financial and other non-historical statements. Forward-looking statements convey the Company’s current expectations or

forecasts of future events. All statements contained in this earnings release other than statements of historical fact are forward-looking statements.

These statements are based on the beliefs and assumptions of our management. Although we believe that our plans, intentions and expectations

reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans,

intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. These statements may be

preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,”

“scheduled,” “anticipates” or “intends” or similar expressions.

Forward-looking statements are not guarantees of performance. You should not put undue reliance on these statements which speak only as of this

date hereof. You should understand that the following important factors, in addition to those discussed in “Risk Factors” in Amendment No. 1 on

Form 10K/A to the Company’s annual report on Form 10K for the year ended December 31, 2014, and other reports filed with the Securities

Exchange Commission (“SEC”), could affect our future results and could cause those results or other outcomes to differ materially from those

expressed or implied in our forward-looking statements: (1) risks of the security and home automation industry, including risks of and publicity

surrounding the sales, subscriber origination and retention process; (2) the highly competitive nature of the security and home automation industry

and product introductions and promotional activity by our competitors; (3) litigation, complaints or adverse publicity; (4) the impact of changes in

consumer spending patterns, consumer preferences, local, regional, and national economic conditions, crime, weather, demographic trends and

employee availability; (5) adverse publicity and product liability claims; (6) increases and/or decreases in utility and other energy costs, increased

costs related to utility or governmental requirements; and (7) cost increases or shortages in security and home automation technology products or

components. In addition, the origination and retention of new subscribers will depend on various factors, including, but not limited to, market

availability, subscriber interest, the availability of suitable components, the negotiation of acceptable contract terms with subscribers, local permitting,

licensing and regulatory compliance, and our ability to manage anticipated expansion and to hire, train and retain personnel, the financial viability of

subscribers and general economic conditions. These and other factors that could cause actual results to differ from those implied by the forward-

looking statements in this presentation are more fully described in the “Risk Factors” section of our annual report on Form 10-K for the year ended

December 31, 2014 as such factors may be updated from time to time in our periodic filings with the SEC. These risk factors should not be construed

as exhaustive. We disclaim any obligations to and do not intend to update the above list or to announce publicly the results of any revisions to any of

the forward-looking statements to reflect future events or developments. All forward-looking statements attributable to us or persons acting on our

behalf are expressly qualified in their entirety by the foregoing cautionary statements. We undertake no obligations to update or revise publicly any

forward-looking statements, whether a result of new information, future events, or otherwise.

forward-looking statements

3

non-GAAP financial measuresThis presentation includes Adjusted EBITDA and Steady-State Free Cash Flow (“SSFCF”), which are supplemental measures that are not required

by, or presented in accordance with, accounting principles generally accepted in the United States (“GAAP”). Adjusted EBITDA and SSFCF are not

measurements of our financial performance under GAAP and should not be considered as an alternative to net income or any other measure

derived in accordance with GAAP or as alternatives to cash flows from operating activities as a measure of our liquidity. We believe that Adjusted

EBITDA provides useful information about flexibility under our covenants to investors, lenders, financial analysts and rating agencies since these

groups have historically used EBITDA-related measures in our industry, along with other measures, to estimate the value of a company, to make

informed investment decisions, and to evaluate a company’s ability to meet its debt service requirements. Adjusted EBITDA eliminates the effect of

non-cash depreciation of tangible assets and amortization of intangible assets, much of which results from acquisitions accounted for under the

purchase method of accounting. Adjusted EBITDA also eliminates the effects of interest rates and changes in capitalization which management

believes may not necessarily be indicative of a company’s underlying operating performance. Adjusted EBITDA is also used by us to measure

covenant compliance under the indenture governing our senior secured notes, the indenture governing our senior unsecured notes and the credit

agreement governing our revolving credit facility.

We believe that SSFCF is a useful measure of pre-levered cash that is generated by the business after the cost of replacing recurring revenue lost

to attrition, but before the cost of new subscribers driving recurring revenue growth. The use of SSFCF is subject to certain limitations. For

example, SSFCF adjusts for cash items that are ultimately within management’s discretion to direct and therefore the measure may imply that there

is less or more cash that is available for the Company’s operations than the most comparable GAAP measure.

We caution investors that amounts presented in accordance with our definition of Adjusted EBITDA and SSFCF may not be comparable to similar

measures disclosed by other issuers, because not all issuers and analysts calculate Adjusted EBITDA and SSFCF in the same manner.

See Annex A of this presentation for a reconciliation of Adjusted EBITDA and SSFCF to net loss for the Company, which we believe is the most

closely comparable financial measure calculated in accordance with GAAP. Adjusted EBITDA and SSFCF should be considered in addition to and

not as a substitute for, or superior to, financial measures presented in accordance with GAAP.

4

participants

Todd Pedersen Chief Executive Officer

Alex Dunn President

Mark Davies Chief Financial Officer

Dale R. Gerard SVP, Finance & Treasurer

5

APX Group Second Quarter 2015 Highlights(1)

Delivering Strong Financial Growth

Revenue growth 17.7%

Adj. EBITDA growth 36.2%

SSFCF up 29.2% YOY

New Packages and Products

Customer Attrition Improving

Driving Operational Efficiencies net service margin73%

80% Adoption of Smart

Home services

12.0% LTM attrition rate

+89K net new originations

(1) For the quarter ended June 30, 2015, all subscriber and RMR data excludes wireless internet business unless specified

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The Vivint platform: defining Smart Home

284K+ subscribers

190+ million daily

inbound data points

125+ million daily

Smart Home analytics

Expandable platform

Cloud based

Sky Platform New Hardware New Services Customization

Cloud storage

350K pic/video

uploads/day

Integrated into

core offerings

Wireless Internet

4,218 new Q2

subscribers

17,580 total

subscribers

In-home solution

design

Customer Optionality

($5 add-ons)

Professional install

80% adoption rate

in 2Q15

“Vivint is the

closest a

company has

come to truly

automating a

home in a

meaningful and

harmonious

way.”

Only Vertically-integrated Smart Home technology in the market today

Vivint can introduce and ramp new products and services quickly and seamlessly, i.e. Doorbell

Camera, Nest Thermostat, etc…

DIY and Retail: insignificant volumes, customer don’t embrace self-install/maintenance

Non-integrated models, fragmented solutions (security/MSOs) do not deliver: functionality, ease of

use, uptime, serviceability, real-time system enhancements

Vivint Model; is an advantaged route to market for Smart Home products and services

Smart Thermostats: 281,000+ installed

Doorbell Camera: 42% adoption YTD / ~50K installed

Space Monkey: 50+ Petabytes of Cloud Storage in service

Record Sales Rep average and Smart Home adoption, Industry leading RMR

Regular customer usage drives value and retention

Doorbell

camera

Garage door

control

Outdoor

camera

Space

Monkey

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$238.7 $264.4 $310.1

2013 2014 2015

$68.8 $68.6 $93.4

2013 2014 2015

APX Group key operating results

Adjusted EBITDA

Quarter ended June 30,

16+% YOY Increase in Recurring Revenue

Negative FX impact in 2Q15 of $2.0M / $3.9M YTD

Adjusted EBITDA scaling faster than Revenues

Strong gains in YOY SSFCF

Revenue($ in Millions)

Growth: 17.4% 17.7%

Growth: (0.3%) 36.2%

Revenue

Adjusted EBITDA

YTD ended June 30,

$114.3 $134.2

$157.9

2013 2014 2015

($ in Millions)

$134.7 $146.5 $183.0

2013 2014 2015

$199.6 $198.5$256.5

2013 2014 2015

SSFCF

Growth: (0.6%) 29.2%

Growth: 10.8% 17.3%

Growth: 8.8% 24.9%

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2013 2014 20152013 2014 20152013 2014 2015

subscriber portfolio data(1)

$39.3

$45.8

$52.4

(1) All subscriber portfolio data presented excludes wireless internet business

(2) RMR is stated as of the end of each period

$54.86

$53.84

$52.12

754,304

851,129

955,162

($ in Millions)

Total RMR(2)Total Subscribers Avg. RMR Per Subscriber(2)

Growth: 16.5% 14.4% Growth: 12.8% 12.2% Growth: 3.3% 1.9%

Quarter ended June 30,

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2013 2014 20152013 2014 2015 2013 2014 2015

new subscriber originations(1)

11,858

11,27513,902

(1) All subscriber portfolio data presented excludes wireless internet business

(2) RMR is stated as of the end of each period

79.6%

73.2%

62.6%$58.70

$62.61$62.05

New Subscribers Adoption Rate

Growth: 6.7% (0.9%) Growth: 1060bps 640bps

Quarter ended June 30,

82,537 73,420 75,283

94,39584,695 89,185

Avg. RMR Per New

Subscriber(2)

Growth:

NIS (4.9%) 23.3%

DTH (11.0%) 2.5%

10

30.2x31.1x

2014 2015

service and creation costs(1)

Net Creation Cost Multiple

LTM Ended June 30,

Net Service Cost per Subscriber

For Periods Ended June 30,

(1) Excludes wireless internet business

Scaling of fixed cost base

Reduction in 3-party backend platform costs

Continuous focus on operational efficiencies

$16.16

$14.72

$15.70

$14.28

Q2 2014 Q2 2015 YTD 2014 YTD 2015

New Panel Cost: LTM 2015 (4Qtrs) vs.

LTM 2014 (1Qtr)

Reduction of entry level package from

$53.99 to $49.99

Improvement: Installations, Marketing,

Commissions, Overhead

0.3x improvement from LTM Q1 2015

Service

Margin 70.0% 73.2% 70.8% 74.0%

(1.6x)

(0.7x)

1.3x

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643,199

199,012 (87,907) 754,304

208,447 (2,185)(109,437) 851,129

209,759 2,185

(107,911) 955,162

12.0%

Annualized

Attrition

12.9%

Annualized

Attrition

(# of Subscriber Accounts)

13.7%

Annualized

Attrition

subscriber account attrition(1)

~15% of portfolio reaching initial end of

contract term during 2015

2011 42-mo contracts (completed 1Q15)

2012 42-mo contracts (4Q15 – 1Q16)

(1) All subscriber attrition data presented excludes the wireless internet business for all periods presented

LTM Quarterly Attrition

13.6% 13.7%

12.8%

12.5% 12.5%

12.0%

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015

170bps

Improvement

12

summary

Driving growth in revenue and Adjusted EBITDA

Redefining the summer selling curve… PRA/Rep Retention

Breakthrough products driving high adoption rates

Customer attrition performing as expected

Leading the industry as a Smart Home services provider

Q & A

APX Group Holdings, Inc.

Consolidated Financial Statements Three and Six Months Ended June 30, 2015 and 2014

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condensed consolidated balance sheetsAPX GROUP HOLDINGS, INC. and SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

June 30, December 31,

2015 2014

ASSETS (unaudited) (audited)

Current Assets:

Cash and cash equivalents 19,953$ 10,807$

Restricted cash and cash equivalents 14,214 14,214

Accounts receivable, net 7,547 8,739

Inventories 66,321 36,157

Prepaid expenses and other current assets 16,092 15,454

Total current assets 124,127 85,371

Property and equipment, net 73,684 62,790

Subscriber acquisition costs, net 687,067 548,073

Deferred financing costs, net 51,146 52,158

Intangible assets, net 632,691 703,226

Goodwill 839,644 841,522

Long-term investments and other assets, net 10,915 10,533

Total assets 2,419,274$ 2,303,673$

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:

Accounts payable 78,400$ 31,324$

Accrued payroll and commissions 74,069 37,979

Accrued expenses and other current liabilities 24,230 28,862

Deferred revenue 34,986 33,226

Current portion of capital lease obligations 5,638 5,549

Total current liabilities 217,323 136,940

Notes payable, net 1,862,619 1,863,155

Revolving line of credit 159,000 20,000

Capital lease obligations, net of current portion 9,286 10,655

Deferred revenue, net of current portion 39,282 32,504

Other long-term obligations 9,307 6,906

Deferred income tax liabilities 8,445 9,027

Total liabilities 2,305,262 2,079,187

Total stockholders’ equity 114,012 224,486

Total liabilities and stockholders’ equity 2,419,274$ 2,303,673$

16

consolidated statements of operationsAPX GROUP HOLDINGS, INC. and SUBSIDIARIES

Consolidated Statements of Operations

(In thousands)

(Unaudited)

2015 2014 2015 2014

Revenues:

Monitoring revenue 149,543$ 128,602$ 295,207$ 253,156$

Service and other sales revenue 6,992 4,719 12,216 9,553

Activation fees 1,378 878 2,685 1,644

Total revenues 157,913 134,199 310,108 264,353

Costs and expenses:

Operating expenses 58,623 47,216 109,952 88,533

Selling expenses 31,244 28,739 56,520 54,318

General and administrative expenses 12,864 35,326 41,098 60,461

Depreciation and amortization 60,070 53,364 117,127 103,716

Total costs and expenses 162,801 164,645 324,697 307,028

Loss from operations (4,888) (30,446) (14,589) (42,675)

Other expenses (income):

Interest expense 38,841 35,712 77,101 71,352

Interest income - (572) (2) (1,124)

Other (income) expenses, net (294) (52) (335) (297)

Total other expenses 38,547 35,088 76,764 69,931

Loss before income taxes (43,435) (65,534) (91,353) (112,606)

Income tax expense (benefit) 179 737 308 945

Net loss (43,614)$ (66,271)$ (91,661)$ (113,551)$

Three Months Ended June 30, Six Months Ended June 30,

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summary of consolidated statements of cash flowsAPX GROUP HOLDINGS, INC. and SUBSIDIARIES

Summary Cash Flow Data

(In thousands)

(Unaudited)

2015 2014

(Restated)

Net cash used in operating activities (89,690)$ (136,386)$

Net cash used in investing activities (31,307) (87,648)

Net cash provided by (used in) financing activities 130,720 (1,368)

Effect of exchange rate changes on cash (577) 458

Net increase (decrease) in cash 9,146 (224,944)

Cash:

Beginning of period 10,807 261,905

End of period 19,953$ 36,961$

Six Months Ended June 30,

APX Group Holdings, Inc.

Annex A

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reconciliation of non-GAAP financial measures – APX Group($ in Millions)

1. Adjustment based on management’s estimated G&A savings in Steady State is 50% of last quarter annualized G&A and excludes the $12.2 million gain on settlement of merger related escrow

2. 2015 2014 2013

RMR 52.4$ 46.0$ 39.3$

Normalized RMR Attrition Rate 11.0% 11.0% 11.0%

RMR Attrited 5.8 5.1 4.3

Normalized Net Creation Multiple 29.0x 29.0x 29.0x

Attrition Replacement Cost 167.2 146.6 125.4

2015 2014 2013 2015 2014 2013

Net loss (43.6)$ (66.3)$ (21.5)$ (91.7)$ (113.6)$ (52.4)$

Interest expense, net 38.8 35.1 27.0 77.1 70.2 52.6

Other (income) expense, net ( 0.3 ) ( 0.1 ) - ( 0.3 ) ( 0.3 ) 0.3

Income tax expense (benefit) 0.2 0.7 17.5 0.3 0.9 14.5

Depreciation and amortization (i) 38.3 40.4 42.6 75.9 80.5 87.3

Amortization of capitalized creation costs 21.8 12.9 3.7 41.2 23.2 4.9

Non-capitalized subscriber acquisition costs (ii) 43.7 33.9 31.3 78.6 60.7 52.5

Non-cash compensation (iii) 0.6 0.5 0.4 1.4 0.9 0.7

Gain on 2GIG Sale (iv) - - ( 46.6 ) - - ( 46.7 )

Transaction costs related to 2GIG Sale (v) - - 5.2 - - 5.5

Transaction related costs - - 0.1 - - 0.3

Other Adjustments (vi) ( 6.1 ) 11.5 9.1 0.5 23.9 15.2

Adjusted EBITDA 93.4$ 68.6$ 68.8$ 183.0$ 146.5$ 134.7$

LQA Adjusted EBITDA 373.6$ 274.4$ 275.2$

Add: G&A Pro Forma Adjustment (1)

50.1 70.7 49.8

Less: Attrition Replacement Costs (2)

(167.2) (146.6) (125.4)

Annualized SSFCF 256.5$ 198.5$ 199.6$

Three Months Ended June 30, Six Months Ended June 30,

20

reconciliation of non-GAAP continued - other adjustments

2015 2014 2013 2015 2014 2013

Other Adjustments

Non-cash gain on settlement of merger related escrow (12.2)$ -$ -$ (12.2)$ -$ -$

Product development 2.0 3.2 2.8 4.4 7.0 4.8

Fire related losses, net of probable insurance recoveries 0.2 1.0 - 0.2 2.7 -

Purchase accounting deferred revenue fair value adjustment 1.2 1.4 1.8 2.4 2.8 3.9

CMS technology impairment loss - ( 0.1 ) - 1.4 0.3

Information technology implementation 0.5 0.8 - 0.9 2.1 -

Subcontracted monitoring agreement - 1.1 - - 2.2 -

Monitoring fee 0.7 0.8 0.7 1.4 1.4 1.6

Start-up of new strategic initiatives 0.1 0.4 0.3 0.2 0.8 0.4

Non-operating legal and professional fees 0.3 1.1 3.1 1.3 1.1 3.6

One-time compensation-related payments 0.2 0.9 0.2 0.4 0.1 0.2

Excess inventory - - 0.7

One-time deferred revenue adjustement - - - ( 2.0 )

All other adjustments 1.0 0.9 0.2 2.7 2.3 0.4

Total other adjustments (6.1)$ 11.5$ 9.1$ 0.5$ 23.9$ 15.2$

Three Months Ended June 30, Six Months Ended June 30,

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certain definitionsTotal Subscribers – The aggregate number of active subscribers at the end of a given period

RMR – The recurring monthly revenue billed to a security and home automation subscriber

Total RMR – The aggregate RMR billed for all security and home automation subscribers

Average RMR per Subscriber – The Total RMR divided by Total Subscribers. This is also commonly referred to as Average Revenue per User, or

ARPU

Average RMR per New Subscriber – The aggregate RMR for new subscribers originated during a period divided by the number of new subscribers

originated during such period

Attrition – The aggregate number of canceled subscribers during a period divided by the monthly weighted average number of total subscribers for

such period. Subscribers are considered canceled when they terminate in accordance with the terms of their contract, are terminated by us, or if

payment from such subscribers is deemed uncollectible (120 days past due). Sales of contracts to third parties and moves are excluded from the

attrition calculation

Net Subscriber Acquisition Costs – Defined as direct and indirect costs to create a new security and home automation subscriber. These include

commissions, equipment, installation, marketing and other allocations (G&A and overhead), less activation fees and up sell revenue. These costs also

exclude residuals and long-term equity expenses associated with the direct-to-home sales channel.

Net Creation Cost Multiple – Defined as Net Subscriber Acquisition Costs, divided by the number of net new subscribers originated, and then divided

by the Average RMR per New Subscriber

Adjusted EBITDA – Net Income (loss) before interest expense (net of interest income), income and franchise taxes and depreciation and amortization

(including amortization of capitalized subscriber acquisition costs), further adjusted to exclude the effects of certain contract sales to third parties, non-

capitalized subscriber acquisition costs, stock-based compensation, the historical results of the Company’s Solar variable interest entity and certain

unusual, non-cash, non-recurring and other items permitted in certain covenant calculations under the indentures governing the notes

Last Quarter Annualized Adjusted EBITDA (“LQA Adjusted EBITDA”) – A common industry measure used to reflect the step-function in earnings

during the sales season related to the subscribers generated from April to August. LQA Adjusted EBITDA, calculated by multiplying Adjusted EBITDA

for the most recent fiscal quarter by 4, represents the ongoing earnings power of Vivint’s current subscriber base and is potentially a more relevant

metric than LTM due to the recurring nature of the revenue and expected earnings

Net Service Cost – Defined as total service costs, including monitoring, customer service, field service and other allocations (G&A and overhead)

costs, less total service revenue divided by total service subscribers

Net Service Margin – Defined as Average RMR per subscriber less Net Service Costs divided by Average RMR per subscriber