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Corporate OverviewMay 30, 2012
Safe HarbourCertain statements in this presentation, other than statements of historical fact, may includeforward-looking ...
WiLAN• Leader in IP licensing• TSX (WIN) and NASDAQ (WILN)• Corporate headquarters in Ottawa, Canada  US headquarters in M...
Monetizing patents is becoming “business as usual”• Growing awareness of the value of patents• Companies exploring how to ...
Business Model                            REVENUE          INTELLECTUAL PROPERTY LICENSING           CORE                 ...
Business Model   Licenses owned patents   Licenses partner owned patents                                                  ...
Licensing Success FY 2011 Settled all major litigations from 2007 to 2010 19 COMPANIES LICENSED6 Years of Backlog   5 YEAR...
Licensing Success255 +     COMPANIES LICENSED        AGREEMENTS WORTH 100’s OF MILLIONS                       Agreement Ty...
Revenue Growth  ANNUAL REVENUE INCREASE                                          $105.8M OVER $100M                       ...
Positive Earnings                                  Adjusted Earnings+                                                     ...
Strong Balance Sheet  Net cash*                                                                                   $200M  L...
Q1 2012 Highlights• Revenue of $24.7M, 14% above guidance• Adjusted earnings of $15.4M, up 46% year  over year•   Quarterl...
Q1 2012 Highlights• Launched litigation against Research in Motion• Partner, 01Communique, launched litigation  against Bo...
Q2 Financial Guidance  Revenue+                                                                                           ...
Number of Patents and ApplicationsCore Programs                                         3,000+ Large and Growing   Patent ...
Core ProgramsGlobal Equipment Market - Percentage Unlicensed Cellular infrastructure          70% Handset                 ...
Core Programs                                                              Over $1.5 Trillion                             ...
License OpportunitiesProspects     Products       In Litigation   Prospects   Products        In Litigation               ...
Gladios IP             • Established in 2010 as a               subsidiary of WiLAN             • Mandate:               •...
Gladios IP7 PARTNERSHIPS ADDRESSING LARGE MARKETS             REMOTE             ACCESS             NETWORKING            ...
Strengthening Our Business                  • Reduce agreement term                  • US headquarters – Florida          ...
World-Class Team                                                  Education and Designations*                             ...
Key Litigations                                                COURT: Texas 3GPP Case Defendants Technology       HSPAMedi...
Key Litigations                                         COURT: TexasHTC CaseDefendantTechnology     Wi-Fi, CDMA      Markm...
Key Litigations                                         COURT: TexasHandset2 CaseDefendantTechnology         Wi-Fi, CDMA  ...
Key Litigations                                           COURT: New YorkLG CaseDefendantTechnology          V-Chip   Appe...
Key Litigations                                                  COURT: FloridaRIM CaseDefendantTechnology    Bluetooth,  ...
Key Litigations                              COURT: VirginiaBomgar (01 Communique) CaseDefendantTechnology    Remote Acces...
Public Market PresenceTSX: WIN   NASD: WILN                    ANALYSTS                            All Recommend “Buy”    ...
Conclusion• Licensing success has driven strong financial  performance• Beginning to realize business potential• Robust gr...
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Investor Presentation Overview

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  1. 1. Corporate OverviewMay 30, 2012
  2. 2. Safe HarbourCertain statements in this presentation, other than statements of historical fact, may includeforward-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”,“anticipate”, “believe”, “estimate”, “expect” and similar expressions, and may be based onmanagement’s current assumptions and expectations related to all aspects of the wireless andwireline telecommunications industries and the global economy. There can be no assurance thatany statements of forward-looking information contained in this document will prove to beaccurate. Actual results and future events could differ materially from those anticipated in suchstatements. These and all subsequent written and oral statements containing forward-lookinginformation are based on the estimates and opinions of management on the dates they are madeand expressly qualified in their entirety by this notice. Except as required by applicable laws, theCompany assumes no obligation to update forward-looking statements should circumstances ormanagements estimates or opinions change. Readers are cautioned not to place unduereliance on any statements of forward-looking information that speak only as of the date of thisrelease. Additional information identifying risks and uncertainties relating to the Company’sbusiness are contained under the heading “Risk Factors” in WiLAN’s current Annual InformationForm and its other filings with the various Canadian securities regulators which are availableonline at www.sedar.com.Unless otherwise noted, all dollar amounts are in United States currency. 5/30/2012 2
  3. 3. WiLAN• Leader in IP licensing• TSX (WIN) and NASDAQ (WILN)• Corporate headquarters in Ottawa, Canada US headquarters in Miami, Florida 5/30/2012 3
  4. 4. Monetizing patents is becoming “business as usual”• Growing awareness of the value of patents• Companies exploring how to unlock value 5/30/2012 4
  5. 5. Business Model REVENUE INTELLECTUAL PROPERTY LICENSING CORE GLADIOS IP License owned patents License partner owned patents WIRELESS ACCESS STRATEGIC/LARGE TV & DIGITAL DISPLAY MEDIUM CLOUD COMPUTING SMALL 5/30/2012 5
  6. 6. Business Model Licenses owned patents Licenses partner owned patents 5/30/2012 6
  7. 7. Licensing Success FY 2011 Settled all major litigations from 2007 to 2010 19 COMPANIES LICENSED6 Years of Backlog 5 YEARS OF BACKLOG 5/30/2012 7
  8. 8. Licensing Success255 + COMPANIES LICENSED AGREEMENTS WORTH 100’s OF MILLIONS Agreement Types • 80% Fixed Payments • 20% Running Royalties 5/30/2012 8
  9. 9. Revenue Growth ANNUAL REVENUE INCREASE $105.8M OVER $100M 115% INCREASE IN 5 YEARS $49.2M $30.6M $25.9M $17.5M + $0 $1.9M 2005 2006 2007 2008 2009 2010 2011+ CASH REVENUES 5/30/2012 9
  10. 10. Positive Earnings Adjusted Earnings+ $71.5M 2011: 5th consecutive cash flow positive year $4.8M $9M $4.8M $2.5M ($5.9M) ($1.4M!) ($23.9M) 2004 2005 2006 2007 2008 2009 2010 2011+ Adjusted Earnings are earnings from continuing operations before stock-based compensation expense, depreciation and amortization expense, interest expense, unrealized foreign exchange gains or losses, provision for income taxes and certain other non-cash, one-time, or non-recurring charges! Continuing operations 5/30/2012 10
  11. 11. Strong Balance Sheet Net cash* $200M Long-term debt $0 Deferred tax assets $22M Annual dividend CDN $0.12 Share buyback (2011 and 2012) + CDN $14.6M * At December 31, 2011, net of the cash required to retire the debenture in January 2012 + Expenditure in FY 2011 and to date in FY 2012 5/30/2012 11
  12. 12. Q1 2012 Highlights• Revenue of $24.7M, 14% above guidance• Adjusted earnings of $15.4M, up 46% year over year• Quarterly dividend of CDN $0.03 per share 5/30/2012 12
  13. 13. Q1 2012 Highlights• Launched litigation against Research in Motion• Partner, 01Communique, launched litigation against Bomgar Corporation• Hired Chief Operating Officer, Michael Vladescu• Established US Headquarters in Miami, Florida 5/30/2012 13
  14. 14. Q2 Financial Guidance Revenue+ $19.7M Operating Expenses $11M to $13.5M Adjusted Earnings $6.6M to $9.1M + Actual revenues reported may exceed the guidance provided due to the receipt of royalty reports, signing of new license agreements and completion of licensee audits, all after the guidance is provided. 5/30/2012 14
  15. 15. Number of Patents and ApplicationsCore Programs 3,000+ Large and Growing Patent Portfolio 970 750 270 300 20 2006 2007 2008 2009 2010 2011 5/30/2012 15
  16. 16. Core ProgramsGlobal Equipment Market - Percentage Unlicensed Cellular infrastructure 70% Handset 80% Cloud computing 95% TV & Display 70% Wi-Fi, DSL, Bluetooth, other 15% 5/30/2012 16
  17. 17. Core Programs Over $1.5 Trillion Unlicensed Global Equipment Market - 5 Years* Handsets $920B Cloud Computing TV & Cellular $250B Display Wi-Fi, DSL, Infrastructure $140B Bluetooth $80B $40B* Estimated using market research data from various sources including Display Search, Dell’Oro, Strategy Analytics, IDC, WiLAN 5/30/2012 17
  18. 18. License OpportunitiesProspects Products In Litigation Prospects Products In Litigation Cellular Digital Yes No infrastructure televisions Cellular Yes Cellular No handsets handsets Cellular Cellular Yes No infrastructure handsets Digital Cellular No Yes televisions handsets Digital Cellular No Yes televisions handsets Digital Cellular No Yes televisions handsets Cellular Yes handsets Digital Yes televisions 5/30/2012 18
  19. 19. Gladios IP • Established in 2010 as a subsidiary of WiLAN • Mandate: • Form strategic licensing partnerships with large, medium and small IP holders • Establish customized licensing programs • Generate significant licensing revenues without necessarily requiring transfer of title on assets 5/30/2012 19
  20. 20. Gladios IP7 PARTNERSHIPS ADDRESSING LARGE MARKETS REMOTE ACCESS NETWORKING TECHNOLOGY ANNUAL MARKET $100B+ ONLINE GAMING GAMBLING INTERNET NETWORK ADVERTISING ACCESS 5/30/2012 20
  21. 21. Strengthening Our Business • Reduce agreement term • US headquarters – Florida • Continue to invest in R&D • Divest non-core assets 5/30/2012 21
  22. 22. World-Class Team Education and Designations* Engineers 32 Masters/PhDs 27Jim Skippen Michael Vladescu Shaun McEwan CEO COO CFO Lawyers 9 MBAs 3 Patent Agents 6 Accountants 2Matt Pasulka Paul Lerner Dan Henry VP Patent Senior Legal VP Business Litigation Counsel Development 5/30/2012 22
  23. 23. Key Litigations COURT: Texas 3GPP Case Defendants Technology HSPAMediation Markman – April 2012 Trial – April 2013 2012 2013 5/30/2012 23
  24. 24. Key Litigations COURT: TexasHTC CaseDefendantTechnology Wi-Fi, CDMA Markman – February 2013 Trial – August 2013 2012 2013 5/30/2012 24
  25. 25. Key Litigations COURT: TexasHandset2 CaseDefendantTechnology Wi-Fi, CDMA Markman – February 2013 Trial – March 2014 2012 2013 2014 5/30/2012 25
  26. 26. Key Litigations COURT: New YorkLG CaseDefendantTechnology V-Chip Appeal Hearing – Q4 2012 (estimated) Trial – Q4 2013 (estimated) 2012 2013 5/30/2012 26
  27. 27. Key Litigations COURT: FloridaRIM CaseDefendantTechnology Bluetooth, Email/Text Editing Trial – Q1 2013 (estimated) 2012 2013 5/30/2012 27
  28. 28. Key Litigations COURT: VirginiaBomgar (01 Communique) CaseDefendantTechnology Remote Access Trial – August 2012 2012 5/30/2012 28
  29. 29. Public Market PresenceTSX: WIN NASD: WILN ANALYSTS All Recommend “Buy” Analyst Rating Byron Capital Markets Buy Canaccord Genuity Buy CIBC World Markets Sector Outperform Craig-Hallum Capital Buy Davenport & Co. Buy Fraser Mackenzie Strong Buy Northland Capital Sector Outperform Paradigm Capital Buy Versant Partners Buy 5/30/2012 29
  30. 30. Conclusion• Licensing success has driven strong financial performance• Beginning to realize business potential• Robust growth strategy• Foundation necessary to deliver results 5/30/2012 30
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