Sequans Investor Presentation · predictions and reflect our current beliefs and expectations with respect to future events and are based on assumptions and subject to risk and uncertainties

Sequans Investor Presentation

March 2020Dr. Georges Karam, CEO

MKT-FM-015-R05

©2020 Sequans Communications

Safe Harbor

©2020 Sequans Communications2

This presentation contains projections and other forward-looking statements regarding future events or our future financial performance and potential financingsources. All statements other than present and historical facts and conditions contained in this release, including any statements regarding our future results ofoperations and financial positions, business strategy and plans, expectations for Massive IoT and Broadband and Critical IoT sales, the expected value of a recentstrategic agreement, the potential for new strategic transactions, the potential impact of the coronavirus on our manufacturing operations in China and oncustomer demand, and our objectives for future operations, are forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of1995, 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 onlypredictions and reflect our current beliefs and expectations with respect to future events and are based on assumptions and subject to risk and uncertainties andsubject 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 anduncertainties, you should not place undue reliance on these forward-looking statements. Actual events or results may differ materially from those contained in theprojections or forward-looking statements. Some of the factors that could cause actual results to differ materially from the forward-looking statements containedherein include, without limitation: (i) the contraction or lack of growth of markets in which we compete and in which our products are sold, (ii) unexpectedincreases 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 revenueand operating results are subject due to cyclicality in the wireless communications industry and transitions to new process technologies, (vii) our inability toanticipate 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 ofour 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 meetperformance milestones under strategic license agreements, (xi) the impact of natural disasters on our sourcing operations and supply chain, (xii) our ability toremediate material weaknesses in our internal controls relating to the impact of accounting changes relating to deferred tax assets and deferred tax liabilitiesrelated to the application of IFRS to deferred taxes on debt instruments with equity components, (xiii) the potential impact of the coronavirus on the production ofour products in China or demand for our products by customers whose supply chain is impacted, and (xiv) other factors detailed in documents we file from time totime with the Securities and Exchange Commission. We have not yet filed our Form 20-F for the year ended December 31, 2019. As a result, all financial results forfiscal year 2019 described in this presentation should be considered preliminary, and are subject to change to reflect the completion of our audit and any necessaryadjustments or changes in accounting estimates that are identified prior to the time we file the Form 20-F. This presentation also contains estimates and otherstatistical 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 Confidential3

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

Focused Investment in Massive IoT and Broadband/Critical IoT


(3) Intended to portray anticipated order-of-magnitude shift in business model; does not represent guidance since IoT ramp is highly dependent on timing factors beyond Sequans’ control.

Massive IoT Broadband IoT/Verticals

▪ 5G/4G for Massive IoT Business

▪ Shifted resources toward IoT in 2015

▪ Massive IoT represented 42%(1) of revenue in 2019

▪ 5G-compatible products are sampling now

▪ Massive IoT market CAGR (units) expected to be 68%(2)

▪ 5G/4G for Broadband IoT + Verticals

▪ Broadband demand is improving due to acceptance of single-mode 4G, CBRS/industrial opportunities

▪ Future broadband IoT growth driven by 5G use cases; broadband IoT market CAGR (units) expected to be 13%(2)

▪ Advanced 5G road map for enhanced mobile broadband (eMBB)

▪ Vertical markets (satellite, avionics, public safety) represent steady flow of high-margin services business

(1) Preliminary

(2) Source: Ericsson Mobility Report 2019

2014 Preliminary 2019 2023 Target (3)

Dramatic Growth Driven by IoT Market

Rapidly Growing Market – Reaching >$4 Billion by 2024

5 © 2020 Sequans Communications | Proprietary and Confidential

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

(Source: Ericsson Mobility Report 2019)

130

48

240

650

2019 2024

Technology & Product Leadership

Copyright © 2020 Sequans Communications Proprietary and Confidential6

▪ Mature, comprehensive portfolio for IoTFrom low-power to high-throughput apps

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

▪ Advanced 5G road map5G-compatible products sampling now

▪ Cutting-edge technology collaborationSiP is world’s smallest/thinnest LTE solution

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

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

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

©2020 Sequans CommunicationsImages 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


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

Next Generation LTE-M/NB-IoT Platforms

9

▪ Supports Both LTE-M/NB-IoT

▪ Low PowerEnables battery life of 1 month for consumer tracker, up to 15 years for smart meter

▪ Low CostHigh level of integration, simple BOM, Single SKU™ RF front end serving all frequency bands worldwide

▪ Easy IntegrationWith pre-certified modules; application specific platforms, and native support of cloud


▪ 5G Ready*Both release 14/15

▪ Reduced Power Consumption60 percent

▪ Reduced CostHigher integration, operation on dry batteries, cheaper BOM

▪ Added FeaturesIntegrated MCU, Voice Codec, Secure Element, iUiCC, GNSS

▪ Optimized for NB-IoT onlySingle-chip Cat NB1/NB2 platform (Monarch N)

1st Generation Monarch: 2nd Generation Monarch:

* Expect Monarch N to be ready to ship in Q2:20 and Monarch 2 in Q4:20

Massive IoT Business – Growth Drivers


Traditional M2M (Replaces 2G/3G)

New and Emerging IoT Applications

Consumer Applications

ATM Kiosk Fleet ManagementTracker

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 Trend End Markets Growth Drivers

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

▪ 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

AgriculturalMonitor

Broadband IoT Business – Products & End Markets


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 GatewayIndoor / Outdoor CPE

* Examples of announced partners and carriers

Broadband IoT Business – Growth Drivers


▪ Long-lived 4G portable router in U.S.

▪ 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

▪ 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


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

Technology Leadership Foundation for Key Strategic Partnerships

14 ©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

Revenue Trends – Reacceleration of Annual Growth Expected in 2020


$6.0

$6.5

$7.0

$7.5

$8.0

$8.5

$9.0

$9.5

Q1 Q2 Q3 Q4

2019 Quarterly Revenues ($MM)Annual Revenues ($MM)

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

2015 2016 2017 2018 2019

IoT Vertical Broadband

(1)

(2)

(1) 4G broadband decline reflects decision to focus resources on Massive IoT(2) Massive IoT decline reflects delay in Cat M market ramp and temporary Cat 1 inventory issue(3) 2019 results are preliminary(4) Q3 reflects Cat 1 customer inventory issue; expected to be resolved in Q1:20

(unaudited)

$32.5

$45.6$48.3

$40.3

$30.9

(4)

(3)

(3)

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


At End of Period ($millions) 2016 2017 2018 2019

Cash & Equivalents, Short-term Deposits $20.5 $3.3 $12.1 $14.1

Short-term and Long-term Debt Obligations(3) $28.4 $30.7 $48.9 $54.7(3)

% of Revenue 2016 2017 2018Prelim 2019 At Scale

Gross Margin 44% 44% 39%(1) 40%(1) 50%(2)

Research & Development 56.7 % 51.3% 68.0% 75.5% 15-20%

SG&A 28.0% 29.6% 45.3% 49.4% 10-15%

Operating Income (Loss) Margin (40.9%) (37.1%) (73.8%) (84.8%) >20%

(1) Reflects higher proportion of modules in product revenue mix(2) Assumes >80% of product revenue from chips(3) Includes $30.7M of convertible debt issued in 2015, 2018, and 2019 (due in 2021), and 2016 (due in 2020) which was extended to mature in 2021 subsequent to the balance sheet date; $12.2M of venture debt issued in 2018 (payable over 3.5 years); $4.1M of short-term financing of accounts receivable and $7.6M 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

▪ Unique company well-positioned during significant industry consolidation


Documents

Sequans Investor Presentation · predictions and reflect our current beliefs and expectations with respect to future events and are based on assumptions and subject to risk and uncertainties