110919 win wiln m partners annual technology &...

M Partners Annual Technology & Communications Investor ConferenceCommunications Investor Conference

September 20 2011September 20, 2011

Jim Skippen Chairman & CEOJim Skippen, Chairman & CEO

SAFE HARBOUR

This presentation may include predictions, estimates or other information relating to Wi-LAN Inc and its affiliates that might be considered forward-looking, including statements constituting “forward-looking statements” or “forward-looking information” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other United States and Canadian laws. These forward-looking statements and forward-looking information are based upon current g g pexpectations and assumptions regarding anticipated developments and other factors affecting Wi-LAN Inc. and its affiliates. They are not historical facts, nor are they guarantees of future performance. Because these forward-looking statements and forward-looking information involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements and forward-looking information. There can be no assurance that any forward-looking statements and forward-looking information

t i d i thi d t ill t b t A t l lt d f t t ld diff t i ll f thcontained in this document will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements.

These and all subsequent written and oral statements containing forward-looking statements and forward-looking information are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice Except as required by applicable laws Wi-LAN Inc assumes no obligation toqualified in their entirety by this notice. Except as required by applicable laws, Wi-LAN Inc. assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change. Readers are cautioned not to place undue reliance on any statements of forward-looking information that speak only as of the date of this presentation. Additional information identifying risks and uncertainties relating to Wi-LAN Inc.’s business are contained under the heading “Risk Factors” in Wi-LAN Inc.’s June 3, 2011 Management’s Discussion and Analysis and its other filings with the various Canadian securities regulators which are available online at www.sedar.com and with g gthe U.S. Securities and Exchange Commission available at www.sec.com. Throughout today’s presentation, we will attempt to present some important factors relating to our business that may affect our predictions. You should also review our SEDAR and SEC filings for a more complete discussion of our risk factors.

Unless otherwise noted, all dollar amounts are in U.S. currency.

TSX:WIN / NASD:WILN 2

ABOUT WiLAN

• US $880M+ market capitalization (Sept. 16, 2011)

• Revenues: licensing large patent portfolio

• Established business model

Qualcomm$4B

Qualcomm$4B

IBM$2BIBM$2BAnnual

Revenues

InterDigital$300M

InterDigital$300M

Tessera$300M

Tessera$300M

WiLAN $110M*WiLAN $110M*

RPX$100MRPX

$100M


* Fiscal 2011 financial guidance in US$

WILAN TEAM – EXPERIENCED LEADERSHIP

• 25 years licensing, $1B patent licensing• Mosaid, Borden Elliot (Borden Ladner Gervais)

Jim SkippenChairman & CEO

• 20 years financial and executive leadership • BreconRidge, Calian

Shaun McEwanCFO

15 li i k ti i i• 15 years licensing, marketing, engineering• SiGE Semiconductor, Skywave, Nortel

Andrew Parolin Senior VP Licensing

• 35 years IP law and licensing Paul Lerner• General Patent, Black & Decker, ABBSenior Legal Counsel

• 15 years IP business and litigation• ICAP, Altitude Capital, Baker Botts

Daniel HenryVP Business Development ICAP, Altitude Capital, Baker BottsVP Business Development

• 14 years corporate and IP law • AGA Medical, Sikorsky Aircraft, Martin Marietta

Matt PasulkaVP Patent Litigation


WILAN TEAM – MULTI-DISCIPLINARY

Education and Designations*

E i 23Engineers 23

Masters/PhDs 22

L 10Lawyers 10

MBAs 3

Patent Agents 5

Accountants 2

Highest revenue per employee of any Canadian public high tech company

TSX:WIN / NASD:WILN

* Indicates # of employees with given education/designation not # of employees serving in specific role

5

OVER 250 LICENSEES

• Agreement types• Fixed payment for term (80%)• Running royalty per unit (20%)


ANNUAL REVENUE

$110M - $115M*30%+30%+ Annual Cash RevenueGrowth

50.7

Growth

M$

19.226.6

35.4

M+M

M

$$

$

2006 2011

2.1M$

2007 2008 2009 2010 FUTURE


+ Cash revenues* Fiscal 2011 financial guidance in US$

DRAMATIC EARNINGS GROWTH IN 2011

Adjusted Earnings+$75M - $80M*

Since 1992, last 4 only cash flow positive years

$4.8M$9M

$2.5M $5M

($5.9M)($1.4M!)

! Continuing operations* Fiscal 2011 financial guidance in US$

2004 2005 2006 2007 2008 2009 2010 2011

($23.9M)


Fiscal 2011 financial guidance in US$+ Adjusted Earnings equals earnings from continuing operations before stock-based compensation, unrealized gain or loss on foreign exchange contracts, depreciation & amortization, provision for income taxes and certain other one-time charges.

Q2 2011 – HIGHLIGHTS

• Revenue of $27.4M, up 137% year-over-year

• Adjusted earnings* of $20.8M, compared to a loss of $1.2M in Q2 2010

• Net earnings of $10.3M, compared to a loss of $5.6M in Q2 2010Q2 2010

• Quarterly dividend of CDN $0.025 per shareQuarterly dividend of CDN $0.025 per share

TSX:WIN / NASD:WILN

* Adjusted Earnings equals earnings from continuing operations before stock-based compensation, unrealized gain or loss on foreign exchange contracts, depreciation & amortization, provision for income taxes and certain other one-time charges.

9

Q2 2011 – HIGHLIGHTS

• Signed new license with Cisco, first renewal

• Entered two licensing partnerships • 01 Communique - remote access• Poynt Corporation - location-based advertising

A i d 60 U S t t Gl El t i• Acquired 60 U.S. patents Glenayre Electronics• Inventions pioneered critical aspects of modern mobile

telephonyp y

• Added to S&P/TSX Composite Index


Q2 2011 BALANCE SHEET

Cash, cash equivalents and short-term investments $204.5M

Working capital $214.6M

Deferred tax asset $24.2M

Patents and other intangibles $121.9M

Accounts payable and accrued liabilities $16.3MAccounts payable and accrued liabilities $16.3M

Patent finance obligations $6.4M

Deferred tax liability $9 6MDeferred tax liability $9.6M

Total shareholder equity $334.4M


1400

PATENT PORTFOLIO

970

1400

750

20

280 300

2006 20112007 2008 2009 2010


REVENUE DRIVERS – CORE BUSINESS

Current Programs Future Programs

2010 Device sales: 2010 Device sales:2010 Device sales: Over $100B (WW)

2010 Device sales: Over $140B (WW)


3G

2010 Device sales: Over $26B (NA)


TSX:WIN / NASD:WILN

Sources: Display Search, Dell’Oro, Strategy Analytics, IDC, WiLAN

13

REVENUE DRIVERS – GLADIOS IP

• WiLAN subsidiary

• Licensing partnerships generate additional future revenuesfuture revenues

• Limited downside risk and capital investment• Limited downside risk and capital investment


REVENUE GROWTH

Incremental Revenue Opportunity from Existing Programs: $700M to $1 3B*

200

Existing Programs: $700M to $1.3B*

150

100


* Estimate considers unit volumes of infringing products, wholesale value of infringing products, fair royalty rates, remaining patent lives. Not an estimate of potential annual revenues

PATENT ACQUISITIONS – PROVEN RETURNS

• Financial resources on hand - $200M+

• Proven ability to generate substantial returns

DOCSIS patent

Bluetooth patents

Wireless patents


PATENT ACQUISITIONS

Bluetooth, Wi-Fi 4G DSL

MIMO

Wireless Antenna

V-Chip

Security Mobile Telephony

3G p y


RESEARCH & DEVELOPMENT CONTINUES

• R&D drives future revenue prospects and business opportunitiesand business opportunities

Next generation wireless technology• Next generation wireless technology • Spectrum sensing in Whitespace

• LTE in picocell and femtocell networks


WILAN’S OFFER TO ACQUIRE MOSAID

• All cash C$38.00 per share offer (Total: C$480M)

• Larger world-class team

• Diversified portfolio of over 4,200 memory, internet, communication and semiconductor patents• De-risks business• Licensing single larger portfolio can drive higher rates

• Increased financial scale in capital markets


WILAN’S OFFER TO ACQUIRE MOSAID

• Immediately accretive to adjusted earnings

2011E

WiLAN MOSAID Pro Forma

$112 $87 $199Revenue1 $112

$70

$87

$40

$199

$1102011EEBITDA1

$57 $15 $722011EGAAP Earnings1

$78 $34 $1122011EAdj. Earnings1

TSX:WIN / NASD:WILN

1 Based on calendarized I/B/E/S consensusNote: MOSAID’s adj. earnings adds back expected depreciation and amortization and stock-based compensation

20

ANALYST COVERAGE

A l t R ti T t

All analysts have buy recommendationsAnalyst Rating TargetCanaccord Genuity Buy C$12

Craig-Hallum Capital Buy US$15

CIBC Sector Outperform C$10p

Davenport & Co Buy US$11

Fraser Mackenzie Strong Buy C$14

Northland Capital Sector Outperform C$11

P di C it l B C$11


Paradigm Capital Buy C$11

CONCLUSION

Value + Growth

TSX WINTSX WIN NASD WILNNASD WILNTSX:WINTSX:WIN NASD:WILNNASD:WILN


110919 win wiln m partners annual technology &...

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