wilan canacorrd genuity 31st annual growth conference...

Canaccord Genuity31st Annual Growth Conference31st Annual Growth Conference

August 10 2011August 10, 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 $930M+ market capitalization (Aug. 4, 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$

BUSINESS TRANSFORMED IN Q1 2011

• Signed agreements worth 100s of $Millions

Ottawa Citizen January 15 2011Ottawa Citizen, January 15, 2011

National Post, January 21, 2011

Ott Citi F b 11 2011


Ottawa Citizen, February 11, 2011

NASDAQ LISTED


WiLAN TEAM

• Experienced leadership – James Skippen, CEO25 years of licensing experience25 years of licensing experience

$1B in patent license agreements

Led Mosaid’s patent licensing business

Education and Designations* E i 23

Former partner with Borden Elliot (now Borden Ladner Gervais)

• 50 employees, multi-disciplinary team

Engineers 23Masters/PhDs 22Lawyers 7MBAs 3Patent Agents 5Accountants 2

Highest revenue per employee of any Canadian public high tech company - $2.5M+

TSX:WIN / NASD:WILN

Accountants 2* Indicates # of employees with given education/designation not # of employees serving in specific role

6

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 Q1 2010Q1 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.

10

Q2 2011 - HIGHLIGHTS

• Signed new license with Cisco, first renewal

• Entered two licensing partnerships • 01 Communique - remote access0 Co u que e o e access• Poynt Corporation - location-based advertising

• Acquired 60 U.S. patents Glenayre Electronics• Inventions pioneered critical aspects of modern mobile

t l htelephony

• Added to S&P/TSX Composite Index

TSX:WIN / NASD:WILN

Added to S&P/TSX Composite Index

Q2 2011 BALANCE SHEET

Cash, cash equivalents and short-term investments

$204.5MinvestmentsWorking capital $214.6M

Deferred tax asset $24 2MDeferred tax asset $24.2M

Patents and other intangibles $121.9M

Accounts payable and accrued liabilities $16.3M

Patent finance obligations $6.4M

Deferred 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

14

REVENUE DRIVERS – GLADIOS IP

• WiLAN subsidiary

• Licensing partnerships generate additional f tfuture revenues

• Limited downside risk and capital investment


REVENUE GROWTH

200Incremental Revenue Opportunity from

Current Programs: $700M to $1 3B*Current 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


ANALYST COVERAGE

All analysts have buy recommendationsAnalyst Rating Target

Canaccord Genuity Buy CDN $12

Craig-Hallum Capital Buy US $15

All analysts have buy recommendations

CIBC Sector Outperform CDN $10

Fraser Mackenzie Strong Buy CDN $14

Northland Capital Sector Outperform CDN $11

Paradigm Capital Buy CDN $11


CONCLUSION

Value + Growth

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


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