Sequans Investor Presentation

July 2020 Dr. Georges Karam, CEO

MKT-FM-015-R05

©2020 Sequans Communications

Safe Harbor

©2020 Sequans Communications 2

This presentation contains projections and other forward-looking statements regarding future events or our future financial performance and potential financing sources. All statements other than present and historical facts and conditions contained in this presentation, including any statements regarding our expected revenue for the third and fourth quarter of 2020, future results of operations and financial positions, business strategy and plans, expectations for Massive IoT and Broadband and Critical IoT sales, the ability to continue to operate remotely (as required) at high levels of productivity, increasing backlog of orders, the impact of the coronavirus on our manufacturing operations, and on customer demand, and our objectives for future operations, are forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). These statements are only predictions and reflect our current beliefs and expectations with respect to future events and are based on assumptions and subject to risk and uncertainties and subject to change at any time. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. Actual events or results may differ materially from those contained in the projections or forward-looking statements. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: (i) the contraction or lack of growth of markets in which we compete and in which our products are sold, (ii) unexpected increases in our expenses, including manufacturing expenses, (iii) our inability to adjust spending quickly enough to offset any unexpected revenue shortfall, (iv) delays or cancellations in spending by our customers, (v) unexpected average selling price reductions, (vi) the significant fluctuation to which our quarterly revenue and operating results are subject due to cyclicality in the wireless communications industry and transitions to new process technologies, (vii) our inability to anticipate the future market demands and future needs of our customers, (viii) our inability to achieve new design wins or for design wins to result in shipments of our products at levels and in the timeframes we currently expect, (ix) our inability to enter into and execute on strategic alliances, (x) our ability to meet performance milestones under strategic license agreements, (xi) the impact of natural disasters on our sourcing operations and supply chain, (xii) our ability to remediate material weaknesses in our internal controls relating to the impact of accounting changes relating to deferred tax assets and deferred tax liabilities related to the application of IFRS to deferred taxes on debt instruments with equity components, (xiii) the impact of the coronavirus on the ability to operate our business and research, production of our products, or demand for our products by customers whose supply chain is impacted or whose operations have been impacted by government shelter-in-place or similar orders, and (xiv) other factors detailed in documents we file from time to time with the Securities and Exchange Commission. This presentation also contains estimates and other statistical data obtained from independent third parties related to market size and growth. You are cautioned not to give undue weight to such estimates and data.

Sequans Overview

Copyright © 2020 Sequans Communications Proprietary and Confidential 3

Sequans (NYSE: SQNS) is the only company offering a complete range of cellular IoT solutions fully-optimized for non-smartphone applications

We focus on cellular connectivity for the Internet of Things (IoT) :

• Massive IoT

• Broadband & Critical IoT

Enterprise Router

Gateway Indoor / Outdoor CPE

Vertical Applications

Health & Wellness

Smart Homes

Smart Cities

Smart Mobility & Logistics

Investment Highlights

©2020 Sequans Communications 4

Mature, comprehensive 4G LTE product portfolio with a growing

pipeline of opportunities reflecting technology leadership

1

2

3

4

5 Unique cellular connectivity assets and knowhow position Sequans well

in a consolidating industry

Expecting revenue growth in 2020 driven by accelerating Massive IoT

business, augmented by improving Broadband IoT business

Pursuing aggressive 5G product roadmap partially funded by a premier

strategic partner

New go-to-market channels with microcontroller and distribution partners

will have game-changing implications for Sequans over the next several

years

Technology & Product Leadership

Copyright © 2020 Sequans Communications Proprietary and Confidential 5

Mature, comprehensive portfolio for IoT From low-power to high-throughput apps

Exposure to entire value chain: IP/chips/modules Expertise and scarce know-how in all areas

Advanced 5G road map 5G-compatible products sampling now

Cutting-edge technology collaboration SiP is world’s smallest/thinnest LTE solution

Unique next-gen Cat 1 solution For apps requiring higher throughput, voice and audio, plus low power

Optimized solution for new U.S. CBRS market Proven technology for new market opportunity

Rapidly Growing Market – Reaching >$4 Billion by 2024

6 © 2020 Sequans Communications

2019-2024 Unit Shipment = 38% CAGR Total 5G/4G IoT Market (millions of units)

Massive IoT Market

Approximately 50% is captive Chinese market (mainly NB); also includes high-end smartwatches

Growth driven by low-power applications

Average ASP expected to decline as proportion of low-power devices grows

Broadband/Critical IoT Market

Includes long-design cycle applications such as automotive

Growth driven by growing acceptance of single-mode 4G in emerging markets and 5G use cases

Average ASP expected to increase as proportion of high-performance 5G devices grows

Massive IoT Broadband/Critical IoT

130

48

240

650

2019 2024

Source: Ericsson Mobility Report 2019

Technology Leadership Foundation for Key Strategic Partnerships

7 ©2020 Sequans Communications

Strong, in-depth relationships with carriers

High-value strategic relationships

Strong technology collaborations

Strategic investor supporting 5G roadmap

Long-standing, supportive relationship with TSMC

NEW: Signed multi-year non-exclusive agreement with strategic partner: • Fortune Global 500 company • Estimated value exceeds $35M over 3+ years beginning

in Q4 2019, subject to milestone achievements

Carrier Relationships Include Strategic Partnerships in U.S., Japan and Europe

©2020 Sequans Communications Images denote locations of select active evaluations, certification activities, trials or

deployments as of 2Q19. Not an exhaustive listing, subject to change.

Massive IoT Business – Product & End Markets

©2020 Sequans Communications 9

Cat 1

LTE-M/NB-IoT (Cat M1/NB1/NB2)

NB-IoT Optimized

Module Partners

Direct OEM/ODM

Platform Partners

Low Power + Low Cost Go-to-Market* End Markets

Traditional M2M (Replaces 2G/3G)

New and Emerging IoT Applications

Consumer Applications

Security Smart Meters Telematics

Tracker Speaker Watch

Payment

E-Health Asset Trackers Smart Cities Smart Home

* Examples of announced partners and customers

Distribution Partners

Massive IoT Business – Growth Drivers

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Traditional M2M (Replaces 2G/3G)

New and Emerging IoT Applications

Consumer Applications

ATM Kiosk Fleet Management Tracker

Electricity Meter

Parking Meter Pallet Tracker

Wearable Pet Tracker Battery Charger

Market growth poised to accelerate in 2020 and beyond

New Cat 1 opportunities for wearables and applications requiring voice and audio

Cat M/NB ramp in 2020 after long delay

Multiple design wins close to launch

Strong pipeline of opportunities

Expanding go-to-market through distributors

Massive IoT Revenue End Markets Growth Drivers

Refarming of 2G/3G spectrum and expansion of Cat M1/NB networks in U.S., Japan, then Europe and worldwide

Increasing focus on health and wellness products post COVID-19

Development of new low-power cellular IoT applications

Cat 1 expansion with new markets (Europe) and apps requiring more than Cat M speed, e.g. voice, audio streaming

Agricultural Monitor

Broadband IoT Business – Products & End Markets

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Cat 4 / Cat 6

Cat 18 / 5G NR

Partners

Devices

Speed + Features Worldwide Deployment* End Markets*

Emerging Markets, Tier 2/3 Carriers

Developed Markets, Tier 1 Carriers

Enterprise, Private Networks, CBRS

Millions of CPE, Gateways, and Mobile Routers are Deployed Worldwide

Enterprise Router Gateway Indoor / Outdoor CPE

* Examples of announced partners and carriers

Broadband IoT Business – Growth Drivers

©2020 Sequans Communications 12

Long-lived 4G portable router in U.S. with strong demand being driven by reaction to COVID-19 mandates

4G in emerging markets resuming growth with new customers

Strong position in CBRS with many design wins; engaged with Tier1 carriers

Strategic customer engagement on 5G broadband IoT

5G use cases driving long-term broadband IoT revenue growth potential

Broadband IoT Revenue End Markets* Growth Drivers

Customer diversification in emerging markets

Improving 4G single-mode demand in developed markets due to network coverage improvement and switch-off of 3G

Increasing focus on working, studying and operating remotely post COVID-19

Enterprise, CBRS applications

Cellular fallback for wired home gateways

5G fixed wireless and industrial IoT (IIoT) low latency apps

Emerging Markets, Tier 2/3 Carriers

Developed Markets, Tier 1 Carriers

Enterprise, Private Networks, CBRS

* Examples of announced partners and carriers

Vertical Market Business

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Adaptation of Technology

Adaptation of Cellular Technology to Meet Requirements of Vertical Market Applications

Satellite

Avionics

Public Safety, Military

Primarily high-margin service revenue

Series of projects with existing and new customers

Vertical Revenue End Markets

Recap of Q2 Developments

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Revenue increased in all businesses sequentially and year-over-year

Significantly reduced operating loss

Raised $32.6M in equity to strengthen the balance sheet

Secured major new design wins in each area, include a major platform win in Massive IoT

Increased pipeline of new opportunities in all businesses, mostly with Tier 1 customers

Expanded go-to-market partnerships with distributors and microcontroller vendors

Achieved important technical and business milestones for strategic 5G project

Advanced additional strategic discussions with one deal in active negotiating stage

©2020 Sequans Communications

Revenue Trends – Reacceleration of Annual Growth Expected in 2020

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$6.0$6.5$7.0$7.5$8.0$8.5$9.0$9.5

$10.0$10.5$11.0$11.5$12.0$12.5$13.0$13.5$14.0

Q3:19 Q4:19 Q1:20 Q2:20 Q3: 20G

Quarterly Revenues ($MM) Annual Revenues ($MM)

0

10

20

30

40

50

60

2017 2018 2019

IoT Vertical Broadband

(1)

(unaudited)

$48.3

$40.3

$30.9

(2)

(1) 4G broadband decline reflects decision to focus resources on Massive IoT (2) Massive IoT decline reflects delay in Cat M market ramp/temporary Cat 1 inventory issue (3) Q3:20 guidance of at least 10% sequential revenue growth

(3)

Key Financial Metrics and Long-term Model (non-IFRS)

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At End of Period ($millions) 2018 2019 June 30,

2020

Cash & Equivalents, Short-term Deposits $12.1 $14.1 $35.5

Short-term and Long-term Debt Obligations(3) $48.9 $54.7 $67.2 (3)

% of Revenue 2018 2019 YTD 2020 At Scale

Gross Margin 39%(1) 40%(1) 50% 50%(2)

Research & Development 68.0% 75.5% 68.5% 15-20%

SG&A 45.3% 49.4% 38.5% 10-15%

Operating Income (Loss) Margin (73.8%) (84.8%) (57.4%) >20%

(1) Reflects higher proportion of modules in product revenue mix (2) Assumes >80% of product revenue from chips (3) Includes $32.9M of convertible debt issued in 2015, 2016, 2018, and $9.9M of venture debt issued in 2018 (payable over 3.5

years); $9.6M of short-term financing of accounts receivable and $14.8M in government advances and loans, and excludes IFRS 16 “lease liabilities”

Summary

17

Technology and market leader in 5G/4G for massive, broadband & critical IoT

Most mature, comprehensive product portfolio; valuable IP and scarce know-how

Strong design win momentum; broadband market recovering as IoT is accelerating

Long-standing relationships with carriers and top-tier enterprises

Attractive as a strategic and/or technology partner to capitalize on high-growth market

Increasing demand for Massive and Broadband IoT coupled with decreasing dependence on China

Unique company well-positioned during significant industry consolidation

©2020 Sequans Communications

Appendix

©2020 Sequans Communications 18

(millions) 2017 2018 2019 YTD 2020

IFRS operating income (loss) (19,525) (31,517) (27,958) (13,346)

Stock-based compensation expense 1,638 1,812 1,797 1,292

Non-IFRS operating income (loss) (17,887) (29,705) (26,161) (12,054)

IFRS to Non-IFRS Reconciliations

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