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© Sierra Wireless 2014 1 
Sierra Wireless Corporate Overview 
November 2014
© Sierra Wireless 2014 2 
Safe harbor statement 
Certain statements and information in this presentation are not based on historical facts and constitute forward-looking statements within the meaning of applicable securities laws (“forward-looking statements”) including statements and information relating to our financial guidance summary for Q1 2014, our guidance drivers for 2014 and our business outlook for 2014 and beyond. Forward-looking statements are provided to help you understand our views of our short and longer term prospects. We caution you that forward-looking statements may not be appropriate for other purposes. We will not update or revise our forward-looking statements unless we are required to do so by securities laws. 
Forward-looking statements: 
• 
typically include words and phrases about the future, such as: “outlook”, “may”, “estimates”, “intends”, “believes”, “plans”, “anticipates” and “expects”; 
• 
are not promises or guarantees of future performance. They represent our current views and may change significantly; 
• 
are based on a number of material assumptions, including those listed below, which could prove to be significantly incorrect: 
• 
Our ability to develop, manufacture and sell new products and services that meet the needs of our customers and gain commercial acceptance; 
• 
Our ability to continue to sell our products and services in the expected quantities at the expected prices and expected times; 
• 
Expected cost of goods sold; 
• 
Expected component supply constraints; 
• 
Our ability to “win” new business; 
• 
Expected deployment of next generation networks by wireless network operators; 
• 
Our operations are not adversely disrupted by component shortages or other development, operating or regulatory risks; and 
• 
Expected tax rates and foreign exchange rates. 
• 
are subject to substantial known and unknown material risks and uncertainties. Many factors could cause our actual results, achievements and developments in our business to differ significantly from those expressed or implied by our forward-looking statements, including, without limitation, the following factors, which are discussed in greater detail. These risk factors and others are discussed in our Annual Information Form and Management’s Discussion and Analysis of Financial Condition and Results of Operations, which may be found on SEDAR at www.sedar.com and on EDGAR at www.sec.gov and in our other regulatory filings with the Securities and Exchange Commission in the United States and the Provincial Securities Commissions in Canada. 
• 
Actual sales volumes or prices for our products and services may be lower than we expect for any reason including, without limitation, the continuing uncertain economic conditions, price and product competition, different product mix, the loss of any of our significant customers, competition from new or established wireless communication companies; 
• 
The cost of products sold may be higher than planned or necessary component supplies may not be available, are delayed or are not available on commercially reasonable terms; 
• 
We may be unable to enforce our intellectual property rights or may be subject to litigation that has an adverse outcome; 
• 
The development and timing of the introduction of our new products may be later than we expect or may be indefinitely delayed; 
• 
Transition periods associated with the migration to new technologies may be longer than we expect; and 
• 
We may experience higher than anticipated costs; disruption of, and demands on, our ongoing business; diversion of management’s time and attention; adverse effects on existing business relationships with suppliers and customers and employee issues in connection with the divestiture of the AirCard assets and operations. 
Investors are cautioned not to place undue reliance on these forward-looking statements. No forward-looking statement is a guarantee of future results. 
USE OF NON-GAAP FINANCIAL MEASURES 
•This presentation contains references to certain non-GAAP financial measures and should be viewed in conjunction with our press release and supplementary information on our website (www.sierrawireless.com), which present a complete reconciliation of GAAP and Non-GAAP results.
© Sierra Wireless 2014 3 
• 
Global leader in devices and cloud services for the Internet of Things 
• 
Industry’s most comprehensive offering 
• 
Proven technology innovators and trusted partner 
Sierra Wireless Corporate Profile 
R&D 
R&D 
R&D 
Head office: Vancouver, BC 
Founded in 1993 
LTM revenue: $518 million 
Publicly listed: NASDAQ (SWIR) TSX (SW) 
Approx. 925 employees worldwide 
Customers in 130+ countries
© Sierra Wireless 2014 4 
By providing intelligent wireless solutions 
Enabling the Internet of Things
© Sierra Wireless 2014 5 
2020 
1.4B 
Long-term growth opportunity 
Billions of connected devices 
2012 
12B 
Connected 
devices (ABI) 
50B 
Connected devices 
(Ericsson) 
Connected devices (ABI) 
2022 
$14.4T 
Value from M2M 2013-2022 (Cisco) 
7B* 
Human population growth: *(US Census Bureau) ** (UN) 
7.7B**
© Sierra Wireless 2014 6 
#1 in machine-to-machine market globally 
Blue-chip customers and partners 
Sierra Wireless is the market leader 
(1) Source: ABI Research - 2014 
34% 
22% 
19% 
25% 
Cellular M2M Embedded Module Revenue Market Share in 2013(1) 
Sierra Wireless
© Sierra Wireless 2014 7 
Innovative device-to-cloud offering 
Leading-edge intelligent devices 
Secure cloud services platform 
Faster time to market and lower costs 
+ 
=
© Sierra Wireless 2014 8 
Machine-to-machine vertical markets
© Sierra Wireless 2014 9 
Sierra’s Business Segments 
Gateways and Cloud Services 
- 
AirLink: intelligent gateways and program- mable modems for Enterprise, Mobility and Industrial applications providing mission- critical connectivity 
- 
AirVantage M2M Cloud Services: provides seamless connectivity and end-to-end data security so customers can collect and deliver valuable field data 
• 
AirVantage Enterprise Platform 
• 
AirVantage Management Services 
OEM Solutions 
Embedded Wireless Modules 
- 
AirPrime: the industry’s broadest portfolio of 2G, 3G, and 4G LTE wireless modules 
- 
Smart Modules: entire M2M ecosystem on a module, including processing capabilities, integrated software (Legato and OpenAT) and cloud-based services 
- 
Essential Modules: easy integration, upgradeable, and reliable connectivity 
- 
Industry leaders at 4G LTE 
Enterprise Solutions
© Sierra Wireless 2014 10 
Wireless modules, software and services for OEMs 
AirPrime® Embedded Wireless Modules 
• 
4G LTE 
• 
3G HSPA/HSPA+ 
• 
3G EVDO 
• 
2G 1xRTT 
• 
2G GPRS/EDGE 
• 
GPS 
Embedded SIM 
AirVantage Management Services 
Embedded Applications 
Embedded Modules 
Software Solutions and Services 
Development Tools
© Sierra Wireless 2014 11 
Legato: Open source platform built on Linux 
Ready-to-run Integrated, tested, validated 
Ready-to-build Open source, flexible foundation 
Ready-to-connect Any cloud, network, peripheral 
Designed to simplify and accelerate embedded M2M development
© Sierra Wireless 2014 12 
Communications system that extends the enterprise network to the vehicle 
Out-of-the-box connectivity linking remote assets to the enterprise 
Platform for creating cellular wireless enabled products and services 
AirLink Product Portfolio 
Programmable Modems 
Intelligent Gateways 
InMotion Solutions 
Application Framework
© Sierra Wireless 2014 13 
AirVantage® M2M Cloud
© Sierra Wireless 2014 14 
Customer case study: Nespresso 
M2M Cloud 
Programmable 
Modem 
Custom Web Application 
Web APIs 
• 
Asset Data Management 
• 
Device Management 
• 
Subscription Management 
Hardware Integration 
ERP 
Network 
Operator 
Accelerating M2M Application Development & Deployment
© Sierra Wireless 2014 15 
Vancouver, Canada 
Corporate Headquarters 
San Diego 
Melbourne 
Tokyo 
London 
Munich 
= R&D, Marketing, Sales, Operations 
= Manufacturing 
= Sales and Support 
Beijing 
Shenzhen & 
Hong Kong 
Flextronics & USI (Shanghai) 
Toulouse 
Paris 
Johannesburg 
Bangalore 
Taipei 
Jabil (Brazil) 
Sierra Wireless operates worldwide serving global network operators, OEMs, enterprises 
Strong presence around the world 
Seoul
© Sierra Wireless 2014 16 
• 
Hundreds of platforms certified and launched, worldwide 
• 
Deep knowledge about individual carriers’ unique requirements 
• 
Services offering and relationships to get OEM products certified 
• 
AirVantage M2M Cloud connected to operator infrastructure 
Partnered with network operators globally
© Sierra Wireless 2014 17 
Global leader in M2M devices and cloud services 
 
Well positioned to capture the M2M growth opportunity 
 
The clear market share and innovation leader 
 
Driving revenue growth and expanding earnings 
 
Financial strength: $196 million cash, no debt 
 
Track record of accelerating growth and value through M&A
© Sierra Wireless 2014 18 
Q3 2014 Financial Results
© Sierra Wireless 2014 19 
Q3 2014 Highlights 
• 
Record quarterly revenue 
•Revenue increased 27.6% year-over- year to $143.3 million 
–Organic revenue growth of 18.8% 
•Adjusted EBITDA doubled year-over- year to $11.8 million 
•Non-GAAP earnings from operations increased 249% year-over-year to $8.4 million 
•Strong cash generation 
Global Leader in M2M 
100 Million Devices Shipped
© Sierra Wireless 2014 20 
Q3 Revenue of $124.3M ↑29.7% YoY (Non-GAAP GM: 29.8%) 
OEM Solutions 
• 
Strong year-over-year revenue growth 
• 
Continued robust design win activity 
– 
Automotive, Energy, Insurance telematics, Mobile computing 
• 
Continued strong growth in 3G/4G LTE 
– 
Well positioned as market transitions 
• 
New products gaining market traction 
– 
Flexible, scalable HL series 
– 
Smart modules with Legato
© Sierra Wireless 2014 21 
Enterprise Solutions 
Intelligent Gateways 
In Motion Solutions 
Programmable 
Modems 
Q3 Revenue of $19.0M ↑ 15.4% YoY (Non-GAAP GM: 53.8%) 
• 
Solid year-over-year revenue growth 
– 
Strong contribution from In Motion 
– 
Strength in the Public Safety, Utility and Regional Transit markets 
• 
In Motion integration materially complete 
– 
Product roadmap and sales integrated 
– 
R&D and Marketing teams co-located 
• 
Growth in AirVantage customer base 
– 
Launch of AirLink Enterprise Connect
© Sierra Wireless 2014 22 
Q3 2014 – Non GAAP Operating Results(1) 
Q3 2013 
Q3 2014 
$112.3 
$143.3 
Quarterly Revenue 
($USD millions) 
$16.4 
$95.9 
$124.3 
$19.0 
$5.9 
$11.8 
Adjusted EBITDA(2) ($USD millions) 
Q3 2013 
Q3 2014 
$2.4 
$8.4 
Earnings from Operations 
($USD millions) 
Q3 2013 
Q3 2014 
Enterprise Solutions 
OEM Solutions 
(1) Non-GAAP financial measures exclude the impact of: stock-based compensation expense and related social taxes, acquisition and disposition costs, acquisition amortization, impairment, integration costs, restructuring costs, foreign exchange gains or losses on translation of balance sheet accounts, and certain tax adjustments. 
(2) Adjusted EBITDA as defined equates to earnings (loss) from operations plus stock-based compensation expense and related social taxes, acquisition costs, restructuring costs, integration costs, impairment and amortization. 
28% 
101% 
249%
© Sierra Wireless 2014 23 
Cash, Cash Equivalents & Short-Term Investments ($USD millions) 
Q3 '13 
Q2 '14 
Q3 '14 
$168.4 
$196.1 
Strong Cash Position and Debt Free 
Cash provided by operations $ 28.7* 
Capital expenditures $ (2.3) 
Free cash flow $ 26.4 
Cash provided by other activities $ 1.3 
Q3 2014 increase in cash balance: $ 27.7 
$188.4 
($US mill) 
(* includes a $13.9 million reduction in prepaid inventory advances in Q3’14)

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Sierra Wireless Corporate Overview - November 2014

  • 1. © Sierra Wireless 2014 1 Sierra Wireless Corporate Overview November 2014
  • 2. © Sierra Wireless 2014 2 Safe harbor statement Certain statements and information in this presentation are not based on historical facts and constitute forward-looking statements within the meaning of applicable securities laws (“forward-looking statements”) including statements and information relating to our financial guidance summary for Q1 2014, our guidance drivers for 2014 and our business outlook for 2014 and beyond. Forward-looking statements are provided to help you understand our views of our short and longer term prospects. We caution you that forward-looking statements may not be appropriate for other purposes. We will not update or revise our forward-looking statements unless we are required to do so by securities laws. Forward-looking statements: • typically include words and phrases about the future, such as: “outlook”, “may”, “estimates”, “intends”, “believes”, “plans”, “anticipates” and “expects”; • are not promises or guarantees of future performance. They represent our current views and may change significantly; • are based on a number of material assumptions, including those listed below, which could prove to be significantly incorrect: • Our ability to develop, manufacture and sell new products and services that meet the needs of our customers and gain commercial acceptance; • Our ability to continue to sell our products and services in the expected quantities at the expected prices and expected times; • Expected cost of goods sold; • Expected component supply constraints; • Our ability to “win” new business; • Expected deployment of next generation networks by wireless network operators; • Our operations are not adversely disrupted by component shortages or other development, operating or regulatory risks; and • Expected tax rates and foreign exchange rates. • are subject to substantial known and unknown material risks and uncertainties. Many factors could cause our actual results, achievements and developments in our business to differ significantly from those expressed or implied by our forward-looking statements, including, without limitation, the following factors, which are discussed in greater detail. These risk factors and others are discussed in our Annual Information Form and Management’s Discussion and Analysis of Financial Condition and Results of Operations, which may be found on SEDAR at www.sedar.com and on EDGAR at www.sec.gov and in our other regulatory filings with the Securities and Exchange Commission in the United States and the Provincial Securities Commissions in Canada. • Actual sales volumes or prices for our products and services may be lower than we expect for any reason including, without limitation, the continuing uncertain economic conditions, price and product competition, different product mix, the loss of any of our significant customers, competition from new or established wireless communication companies; • The cost of products sold may be higher than planned or necessary component supplies may not be available, are delayed or are not available on commercially reasonable terms; • We may be unable to enforce our intellectual property rights or may be subject to litigation that has an adverse outcome; • The development and timing of the introduction of our new products may be later than we expect or may be indefinitely delayed; • Transition periods associated with the migration to new technologies may be longer than we expect; and • We may experience higher than anticipated costs; disruption of, and demands on, our ongoing business; diversion of management’s time and attention; adverse effects on existing business relationships with suppliers and customers and employee issues in connection with the divestiture of the AirCard assets and operations. Investors are cautioned not to place undue reliance on these forward-looking statements. No forward-looking statement is a guarantee of future results. USE OF NON-GAAP FINANCIAL MEASURES •This presentation contains references to certain non-GAAP financial measures and should be viewed in conjunction with our press release and supplementary information on our website (www.sierrawireless.com), which present a complete reconciliation of GAAP and Non-GAAP results.
  • 3. © Sierra Wireless 2014 3 • Global leader in devices and cloud services for the Internet of Things • Industry’s most comprehensive offering • Proven technology innovators and trusted partner Sierra Wireless Corporate Profile R&D R&D R&D Head office: Vancouver, BC Founded in 1993 LTM revenue: $518 million Publicly listed: NASDAQ (SWIR) TSX (SW) Approx. 925 employees worldwide Customers in 130+ countries
  • 4. © Sierra Wireless 2014 4 By providing intelligent wireless solutions Enabling the Internet of Things
  • 5. © Sierra Wireless 2014 5 2020 1.4B Long-term growth opportunity Billions of connected devices 2012 12B Connected devices (ABI) 50B Connected devices (Ericsson) Connected devices (ABI) 2022 $14.4T Value from M2M 2013-2022 (Cisco) 7B* Human population growth: *(US Census Bureau) ** (UN) 7.7B**
  • 6. © Sierra Wireless 2014 6 #1 in machine-to-machine market globally Blue-chip customers and partners Sierra Wireless is the market leader (1) Source: ABI Research - 2014 34% 22% 19% 25% Cellular M2M Embedded Module Revenue Market Share in 2013(1) Sierra Wireless
  • 7. © Sierra Wireless 2014 7 Innovative device-to-cloud offering Leading-edge intelligent devices Secure cloud services platform Faster time to market and lower costs + =
  • 8. © Sierra Wireless 2014 8 Machine-to-machine vertical markets
  • 9. © Sierra Wireless 2014 9 Sierra’s Business Segments Gateways and Cloud Services - AirLink: intelligent gateways and program- mable modems for Enterprise, Mobility and Industrial applications providing mission- critical connectivity - AirVantage M2M Cloud Services: provides seamless connectivity and end-to-end data security so customers can collect and deliver valuable field data • AirVantage Enterprise Platform • AirVantage Management Services OEM Solutions Embedded Wireless Modules - AirPrime: the industry’s broadest portfolio of 2G, 3G, and 4G LTE wireless modules - Smart Modules: entire M2M ecosystem on a module, including processing capabilities, integrated software (Legato and OpenAT) and cloud-based services - Essential Modules: easy integration, upgradeable, and reliable connectivity - Industry leaders at 4G LTE Enterprise Solutions
  • 10. © Sierra Wireless 2014 10 Wireless modules, software and services for OEMs AirPrime® Embedded Wireless Modules • 4G LTE • 3G HSPA/HSPA+ • 3G EVDO • 2G 1xRTT • 2G GPRS/EDGE • GPS Embedded SIM AirVantage Management Services Embedded Applications Embedded Modules Software Solutions and Services Development Tools
  • 11. © Sierra Wireless 2014 11 Legato: Open source platform built on Linux Ready-to-run Integrated, tested, validated Ready-to-build Open source, flexible foundation Ready-to-connect Any cloud, network, peripheral Designed to simplify and accelerate embedded M2M development
  • 12. © Sierra Wireless 2014 12 Communications system that extends the enterprise network to the vehicle Out-of-the-box connectivity linking remote assets to the enterprise Platform for creating cellular wireless enabled products and services AirLink Product Portfolio Programmable Modems Intelligent Gateways InMotion Solutions Application Framework
  • 13. © Sierra Wireless 2014 13 AirVantage® M2M Cloud
  • 14. © Sierra Wireless 2014 14 Customer case study: Nespresso M2M Cloud Programmable Modem Custom Web Application Web APIs • Asset Data Management • Device Management • Subscription Management Hardware Integration ERP Network Operator Accelerating M2M Application Development & Deployment
  • 15. © Sierra Wireless 2014 15 Vancouver, Canada Corporate Headquarters San Diego Melbourne Tokyo London Munich = R&D, Marketing, Sales, Operations = Manufacturing = Sales and Support Beijing Shenzhen & Hong Kong Flextronics & USI (Shanghai) Toulouse Paris Johannesburg Bangalore Taipei Jabil (Brazil) Sierra Wireless operates worldwide serving global network operators, OEMs, enterprises Strong presence around the world Seoul
  • 16. © Sierra Wireless 2014 16 • Hundreds of platforms certified and launched, worldwide • Deep knowledge about individual carriers’ unique requirements • Services offering and relationships to get OEM products certified • AirVantage M2M Cloud connected to operator infrastructure Partnered with network operators globally
  • 17. © Sierra Wireless 2014 17 Global leader in M2M devices and cloud services  Well positioned to capture the M2M growth opportunity  The clear market share and innovation leader  Driving revenue growth and expanding earnings  Financial strength: $196 million cash, no debt  Track record of accelerating growth and value through M&A
  • 18. © Sierra Wireless 2014 18 Q3 2014 Financial Results
  • 19. © Sierra Wireless 2014 19 Q3 2014 Highlights • Record quarterly revenue •Revenue increased 27.6% year-over- year to $143.3 million –Organic revenue growth of 18.8% •Adjusted EBITDA doubled year-over- year to $11.8 million •Non-GAAP earnings from operations increased 249% year-over-year to $8.4 million •Strong cash generation Global Leader in M2M 100 Million Devices Shipped
  • 20. © Sierra Wireless 2014 20 Q3 Revenue of $124.3M ↑29.7% YoY (Non-GAAP GM: 29.8%) OEM Solutions • Strong year-over-year revenue growth • Continued robust design win activity – Automotive, Energy, Insurance telematics, Mobile computing • Continued strong growth in 3G/4G LTE – Well positioned as market transitions • New products gaining market traction – Flexible, scalable HL series – Smart modules with Legato
  • 21. © Sierra Wireless 2014 21 Enterprise Solutions Intelligent Gateways In Motion Solutions Programmable Modems Q3 Revenue of $19.0M ↑ 15.4% YoY (Non-GAAP GM: 53.8%) • Solid year-over-year revenue growth – Strong contribution from In Motion – Strength in the Public Safety, Utility and Regional Transit markets • In Motion integration materially complete – Product roadmap and sales integrated – R&D and Marketing teams co-located • Growth in AirVantage customer base – Launch of AirLink Enterprise Connect
  • 22. © Sierra Wireless 2014 22 Q3 2014 – Non GAAP Operating Results(1) Q3 2013 Q3 2014 $112.3 $143.3 Quarterly Revenue ($USD millions) $16.4 $95.9 $124.3 $19.0 $5.9 $11.8 Adjusted EBITDA(2) ($USD millions) Q3 2013 Q3 2014 $2.4 $8.4 Earnings from Operations ($USD millions) Q3 2013 Q3 2014 Enterprise Solutions OEM Solutions (1) Non-GAAP financial measures exclude the impact of: stock-based compensation expense and related social taxes, acquisition and disposition costs, acquisition amortization, impairment, integration costs, restructuring costs, foreign exchange gains or losses on translation of balance sheet accounts, and certain tax adjustments. (2) Adjusted EBITDA as defined equates to earnings (loss) from operations plus stock-based compensation expense and related social taxes, acquisition costs, restructuring costs, integration costs, impairment and amortization. 28% 101% 249%
  • 23. © Sierra Wireless 2014 23 Cash, Cash Equivalents & Short-Term Investments ($USD millions) Q3 '13 Q2 '14 Q3 '14 $168.4 $196.1 Strong Cash Position and Debt Free Cash provided by operations $ 28.7* Capital expenditures $ (2.3) Free cash flow $ 26.4 Cash provided by other activities $ 1.3 Q3 2014 increase in cash balance: $ 27.7 $188.4 ($US mill) (* includes a $13.9 million reduction in prepaid inventory advances in Q3’14)