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Corporate OverviewCorporate Overview
Jim Skippen, President & CEO
September 20, 2012
Safe Harbour
Certain statements in this presentation, other than statements of historical fact, may include forward-looking information that involves various risks and uncertainties that face the Company; such statements may contain such words as “may”, “would”, “could”, “will”, “intend”, “plan”, such statements may contain such words as may , would , could , will , intend , plan , “anticipate”, “believe”, “estimate”, “expect” and similar expressions, and may be based on management’s current assumptions and expectations related to all aspects of the wireless and wireline telecommunications industries and the global economy. There can be no assurance that any statements of forward-looking information contained in this document will prove to be
t A t l lt d f t t ld diff t i ll f th ti i t d i h 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 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, the Company assumes no obligation to update forward-looking statements should circumstances or p y g p gmanagement'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 release. Additional information identifying risks and uncertainties relating to the Company’s business are contained under the heading “Risk Factors” in WiLAN’s current Annual Information Form and its other filings with the various Canadian securities regulators which are available Form and its other filings with the various Canadian securities regulators which are available online at www.sedar.com.
Unless otherwise noted, all dollar amounts are in United States currency.
September 20, 2012 2
WiLAN
• Leader in IP licensingNASD: WILN
Total Shareholder Leader in IP licensing
• TSX (WIN) and NASDAQ
Total Shareholder Return since 2006
550%
Recent Share Price $5.46
(WILN) listed
S&P/TSX C it d
Market Capitalization $660M
C h *$191M• S&P/TSX Composite and
Dividend IndexesCash *
$($1.58/share)
Long-term Debt $0
Annual Dividend CDN $0.14
* June 30, 2012
September 20, 2012 3
Investment Highlights
Generating Shareholder Value through Monetizing IP Generating Shareholder Value through Monetizing IP
Diversified and HighDiversified and High--Margin Recurring Subscription Business ModelMargin Recurring Subscription Business Model
Strong Financial Performance and Well CapitalizedStrong Financial Performance and Well Capitalized
Large, Attractive and Untapped Market OpportunitiesLarge, Attractive and Untapped Market Opportunities
Experienced Management Team with a Proven Track Record of SuccessExperienced Management Team with a Proven Track Record of Success
September 20, 2012 4
Large Corporations Actively Monetizing Patents
Nortel Patent Sale – July 2011 Google / Motorola Acquisition – August 2011
$4 5 Billion $12 5 Billion
Samsung / Microsoft – September 2011 Pursuing Patent Monetization
17,000 patents6,000 patents$4.5 Billion $12.5 Billion
$5 - $10 (Est.) paid per Android handset
AOL / Microsoft / Facebook Sale – April 2012
$1 1 Billi $550 Milli$1.1 Billion
800 Patents
$550 Million650 Patents sold,
300 licensed
September 20, 2012 5
Annual U.S. Patent Licensing Revenue: $500B *
…BUT LARGEST OWNERSHIP GROUP IS NOT GENERATING FAIR SHARE OF REVENUES
Patent Ownership Revenues Generated1%
40%60%
99%99%
Large corporationsg p
Small companies, individual inventors, universities and research labs
* S D l itt I t ll t l A t M t J l 2009 htt // d l itt A i R h I t ll t l V t
September 20, 2012
* Sources: Deloitte, Intellectual Asset Management, July 2009, http://www.deloitte.com; Acacia Research; Intellectual Ventures
6
Diversified Business Model
OwnershipOwnershipOwnershipOwnership PartnershipPartnershipPartnershipPartnership
G L A D I O SLicense partner owned patents
C O R ELicense owned patents
Recurring subscription model
Wireless A
Digital TV d Di l
Cloud C ti
3,000 patents, 250 essential 8 partnerships
Access and Display Computing
R E V E N U ER E V E N U E
September 20, 2012 7
Competitive Positioning
P A T E N T L I C E N S I N GP A T E N T
A G G R E G A T O R
• Heavy R&D investment• Owned patents
• Zero R&D investment• Partner owned patents
• Modest R&D investment• Owned and partner
owned patents
September 20, 2012 8
Licensing Success
COMPANIES LICENSEDAGREEMENTS WORTH 100's OF $MILLIONS260+260+ AGREEMENTS WORTH 100 s OF $MILLIONS260260
Agreement TypesAgreement Types
80% 20%
Quarterly Subscription Payments Running Royalties
4+ Years of Revenue Backlog4+ Years of Revenue Backlog4+ Years of Revenue Backlog4+ Years of Revenue Backlog
September 20, 2012 9
Strong Revenue Growth
ANNUAL REVENUE INCREASE
OVER $100M $100M IN 5 YEARS$105.8M
OVER $100M $100M IN 5 YEARS
115% INCREASE
115% INCREASE
$49.2M
$17.5M$25.9M
$30.6M1
1 C h R
2006 2007 2008 2009 2010 20112005
$1.9M$0
September 20, 2012
1 Cash Revenues
10
High Margin Business
• Adjusted earnings ~60% of revenue
$105.8M
Adjusted revenue Adjusted Earnings
$71.5M
• Cash flow from operations
$$45.5M
Cash flow from operations• 2011 – $57M• 2012 YTD – $18.3M *
$25.5M
$
2011 2012 YTD ** Q1 2012 and Q2 2012 financial results reported
September 20, 2012 11
Q1 2012 and Q2 2012 financial results reported
Large, Untapped Market Opportunity
Over $1.5 Trillion
Unlicensed Global Unlicensed Global Equipment MarketEquipment Market5 5 Years Years **
Handsets
Cloud
$920B
Wi-Fi, DSL,
TV andDisplayCellular
Infrastructure
Cloud Computing
$250B
$140BGladiosWi Fi, DSL,
BluetoothInfrastructure
$80B
$140B
* Estimated using market research data from various sources including Display Search Dell’Oro Strategy Analytics IDC WiLAN
$40B$100B
September 20, 2012
Estimated using market research data from various sources including Display Search, Dell Oro, Strategy Analytics, IDC, WiLAN
12
Litigation Catalysts
Case Companies Recent Events Upcoming Events
3GPP Markman Order Trial – April 2013
Handset 2Markman Hearing – February 2013
Trial – August 2013 (estimated)
Markman Hearing – February 2013HTC
Markman Hearing February 2013Trial – August 2013
RIM Trial – February 2014
LGUSPTO validated all claims in V-Chip patent, allowed 30 new claims
Appeal Hearing – Q4 2012 (estimated)
September 20, 2012 13
Portfolio and Opportunity Growth
CORE PATENTSCORE PATENTSNumber of Issued and Pending PatentsNumber of Issued and Pending Patents
WHERE DO OUR WHERE DO OUR PATENTS PATENTS
CO OCO O3,000+
Number of Issued and Pending PatentsNumber of Issued and Pending Patents COME FROM?COME FROM?
•• R&DR&D•• AcquisitionsAcquisitions
•• Inbound inquiriesInbound inquiriesB k d B k d
750970
•• Brokers and Brokers and investment bankersinvestment bankers
•• Proactive Proactive
20 270 300
2006 2007 2008 2009 2010 2011
Proactive Proactive identificationidentification
2006 2007 2008 2009 2010 2011
14September 20, 2012
World-Class Team
50 Employees
Education and Designations *
Engineers 32Michael Vladescu
COOShaun McEwan
CFOJim Skippen
CEO
Engineers 32
Masters/PhDs 27
Lawyers 9
MBAs 3
Patent Agents 6
Paul Lerner Senior Legal
Counsel
Dan HenryVP Business Development
Accountants 2
* Indicates number of employees with given education/designation, not number of employees serving in specific role
September 20, 2012 15
Public Market Presence
ANALYSTSANALYSTSTSX: WINTSX: WIN NASD: WILNNASD: WILN
Analyst Rating
BMO Capital Markets Market Perform
Byron Capital Markets Buy
Canaccord Genuity Buy
Cantor Fitzgerald Canada Buy
CIBC World Markets Sector Outperform
Cl S iti BClarus Securities Buy
Craig-Hallum Capital Buy
Davenport & Co. Buy
Fraser Mackenzie Strong BuyFraser Mackenzie Strong Buy
Northland Capital Sector Outperform
Paradigm Capital Buy
September 20, 2012 16
Conclusion
Highly Successful IP BusinessHighly Successful IP Business
Significant PotentialSignificant Potential
Value + Dividend + GrowthValue + Dividend + Growth
September 20, 2012 17
APPENDIXAPPENDIX
September 20, 2012 18
Key Litigations
COURT: Texas3GPP Case
Defendants
HSPATechnology
Markman – April 2012 Trial – April 2013Mediation
2012 2013
Markman April 2012 Trial April 2013Mediation
September 20, 2012 19
Key Litigations
HTC CaseCOURT: Texas
Defendant
Wi-Fi, CDMATechnologies
Markman – February 2013 Trial – August 2013
2012 2013
Markman February 2013 Trial August 2013
September 20, 2012 20
Key Litigations
COURT: TexasHandset2 Case
D f d t
Wi-Fi, CDMA
Defendants
Technologies
Markman – February 2013 Trial – August 2013 (estimated)
2012 2013
Markman February 2013 Trial August 2013 (estimated)
September 20, 2012 21
Key Litigations
COURT: New YorkLG Case
Defendant
V-ChipTechnology
Appeal Hearing – Q4 2012 (estimated) Trial – Q4 2013 (estimated)
2012 2013
Appeal Hearing – Q4 2012 (estimated) Trial Q4 2013 (estimated)
September 20, 2012 22
Key Litigations
COURT: FloridaRIM Case
Defendant
Bluetooth, Email/Text Editing
Technologies
Trial – February 2014 Markman – February 2013
2012 2013
Trial February 2014
2014
Markman February 2013
September 20, 2012 23
