Annual Needham Growth Conference

14th Annual Needham Growth Conference

January 11, 2012

Jim Skippen, Chairman & CEO

SAFE HARBOUR

This presentation may include predictions, estimates or other information relating to Wi-LAN Inc and its affiliates that might be considered forward-looking, including statements constituting “forward-looking statements” or “forward-looking information” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other United States and Canadian laws. These forward-looking statements and forward-looking information are based upon current g g pexpectations and assumptions regarding anticipated developments and other factors affecting Wi-LAN Inc. and its affiliates. They are not historical facts, nor are they guarantees of future performance. Because these forward-looking statements and forward-looking information involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements and forward-looking information. There can be no assurance that any forward-looking statements and forward-looking information

t i d i thi d t ill t b t A t l lt d f t t ld diff t i ll f thcontained in this document will prove to be 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 statements and 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 Wi-LAN Inc assumes no obligation toqualified in their entirety by this notice. Except as required by applicable laws, Wi-LAN Inc. assumes no obligation to update forward-looking statements should circumstances or management'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 presentation. Additional information identifying risks and uncertainties relating to Wi-LAN Inc.’s business are contained under the heading “Risk Factors” in Wi-LAN Inc.’s August 3, 2011 Management’s Discussion and Analysis and its other filings with the various Canadian securities regulators which are available online at www.sedar.com and g gwith the U.S. Securities and Exchange Commission available at www.sec.com. Throughout today’s presentation, we will attempt to present some important factors relating to our business that may affect our predictions. You should also review our SEDAR and SEC filings for a more complete discussion of our risk factors.

Unless otherwise noted, all dollar amounts are in U.S. currency.

TSX:WIN / NASD:WILN 2

PATENTS AS AN ASSET CLASS

• Growing awareness of the value of patents

C i l i h t l k l

July 2, 2011, Wall Street Journal August 15, 2011, National Post

• Companies exploring how to unlock value

July 19, 2011, ReutersJuly 21, 2011, Wall Street Journal


ABOUT WiLAN

• US $730M market capitalization (Jan. 6, 2012)

• Revenues: licensing large patent portfolio

• Established business modelAnnual Revenues

Qualcomm$4B

Qualcomm$4B

IBM$2BIBM$2B

InterDigital$300M

InterDigital$300M

Tessera$300M

Tessera$300M

WiLAN $105M*WiLAN $105M*

RPX$100MRPX

$100MAcacia$130MAcacia$130M

Rambus$300M

Rambus$300M


* Fiscal 2011 financial guidance in US$

WORLD CLASS TEAM – LEADERSHIP

• 25 years licensing, $1B patent licensing• Mosaid, Borden Elliot

Jim SkippenCEO

• 20 years financial and executive leadership Shaun McEwan• Breconridge, CalianCFO• 25 years IP law and licensing • GPC, Black & Decker, ABB

Paul LernerSenior Legal Counsel

• 17 years engineering, marketing and licensing• SIGE Semiconductor, Nortel

Andrew Parolin SVP Licensing

• 15 years IP business and litigation• ICAP Altitude Capital Baker Botts

Daniel HenryVP Business Development • ICAP, Altitude Capital, Baker BottsVP Business Development

• 14 years corporate and IP law • AGA Medical, Sikorsky Aircraft, Martin Marietta

Matt PasulkaVP Patent Litigation

• 15 years international patent lawRob Scott • 15 years international patent law• Registered U.S. Patent Attorney

Rob ScottVP Patent Administration

• 15 years engineering, marketing and licensing• Nortel, Communications Research Centre

Christian Dubuc VP Licensing Technologies


WORLD CLASS TEAM – MULTIPLE DISCIPLINES

Education and Designations* Engineers 32Engineers 32Masters/PhDs 27Lawyers 9Lawyers 9MBAs 2Patent Agents 6Patent Agents 6Accountants 2

• 55 employees, highest revenue/employee of any Canadian public high-tech company ($2M+)

TSX:WIN / NASD:WILN

* Indicates # of employees with given education/designation not # of employees serving in specific role, at October 25, 2011

6

GROWING & DIVERSE PATENT PORTFOLIO3000

Technology Patents*

750970

Technology PatentsWireless Communication 1000+

Wireline Communication 300+

20280 300

750

2006 2007 2008 2009 2010 2011

Digital TV & Display 1500+

Other 2002006 2007 2008 2009 2010 2011

* Issued and pending patents


LICENSING EXCELLENCE

• Over 250 companies licensed

• Major litigations settled in early 2011• Signed license agreements worth 100s of $M

WiLAN h d t t d it liti ti t• WiLAN has demonstrated it can use litigation to enforce its rights


STRONG REVENUE GROWTH

$105M* 30%+30%+ Annual Cash RevenueGrowth

50.7

Growth

M$

19.226.6

35.4

M+M

M

$$

$

2006 2011

2.1M$

2007 2008 2009 2010


+ Cash revenues* Fiscal 2011 financial guidance in US$

POSITIVE EARNINGS

$70M*

Dramatic earnings+ growth in 2011 due to litigation settlements

$4.8M $9M$2 5M $5M

($5.9M) ($1.4M!)

$4.8M $2.5M $5M

! Continuing operations* Fiscal 2011 financial guidance in US$

2004 2005 2006 2007 2008 2009 2010 2011

($23.9M)


Fiscal 2011 financial guidance in US$+ Adjusted Earnings are earnings from continuing operations before stock-based compensation expense, depreciation & 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.

STRONG FINANCIAL POSITION

Net cash* $ 197 M

Long-term debt+ $ 0Long term debt $ 0

Deferred tax asset $25 M

Annual dividend CDN $0.10Listed on NASDAQ Global Select Market

Annual dividend CDN $0.10

All figures in $US unless otherwise indicated* At September 30, 2011

TSX:WIN / NASD:WILN

+ Excludes net proceeds from convertible debenture scheduled to be repaid 01/31/12 which was listed as long-term debt in Wi-LAN Inc. 2011 Third Quarter Consolidated Financial Results Interim Report

11

WILAN HAS JUST BEGUN – FIVE YEAR STRATEGY

• Increase revenue to $200M+• Current programs• Current programs• Gladios IP – licensing partnerships• New programs (acquisitions R&D)• New programs (acquisitions, R&D)


WILAN HAS JUST BEGUN – FIVE YEAR STRATEGY

• Deliver strong earnings while investing in:• Enforcement• Enforcement• Portfolio growth• Operations and team• Operations and team• Research and development• Licensing programs and capability• Licensing programs and capability


REVENUE DRIVERS - CURRENT PROGRAMSToday Future

2010 Device Sales: Over $100B (WW)


2014 Device Sales: Over $25B (WW)Over $100B (WW) Over $140B (WW)

3G

2010 Device Sales: Over $26B (NA)


Incremental Revenue Opportunity: $700M to $1.3B*

TSX:WIN / NASD:WILN

Sources: Display Search, Dell’Oro, Strategy Analytics, IDC, WiLAN* Estimate considers unit volumes of infringing products, wholesale value of infringing products, fair royalty rates, remaining patent lives. Not an estimate of potential annual revenues

14

REVENUE DRIVERS - LICENSE OPPORTUNITIES

New Licenses Products

Cellular infrastructure

Renewed/Expanded Licenses Products

Digital televisions

Cellular handsets

g

Cellular handsets

Cellular handsetsCellular infrastructure

Cellular handsets

Cellular handsets

Cellular handsets

Digital televisionsCellular handsets

Cellular handsets

Digital televisions

DSL infrastructure

Digital televisions


SIGNIFICANT LITIGATIONS

Technology Devices RemainingDefendants

Agreements / Settlements

Phase Timeline

2011 2012 2013 2014

V-Chip DTV LGSummary Judgment

-

(Expected June 2012)

3GPP CellularBaseStations

Alcatel-Lucent,Ericsson, Sony Ericsson, HTC

LG Discovery

(April 8, 2013)

Wi-Fi, CDMA Cellular Handsets

Apple, Alcatel-Lucent, Dell, HP, HTC, Kyocera,Novatel Wireless

Initial Pleadings (March 10, 2014)

Novatel Wireless, Sierra Wireless


REVENUE DRIVERS – GLADIOS IP

• WiLAN subsidiary

• Partnerships to generate additional revenue with limited risk and investmentwith limited risk and investment

S• Six partnerships to date Remote Access Internet Advertising

On-line Gambling Networking Technology

On-line Gaming Internet Connectivity


NEW PROGRAMS - PATENT ACQUISITIONS

• Significant financial resources on hand – $190M+

• Proven ability to acquire undervalued assets

DOCSIS patent

Bluetooth patents

Wireless patents


PATENT ACQUISITIONS


RESEARCH AND DEVELOPMENT

• R&D drives future revenue prospects and business opportunitiesand business opportunities

Next generation wireless technology• Next generation wireless technology • Spectrum sensing in Whitespace

• LTE in picocell networks


Q3 2011 – HIGHLIGHTS

• Revenue of $27.8M, up 147% year-over-year

• Adjusted earnings* of $22.8M, compared to $0.9M in Q3 2010

• Quarterly dividend of CDN $0.025 per share

TSX:WIN / NASD:WILN

* Adjusted Earnings are earnings from continuing operations before stock-based compensation expense, depreciation & 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.

21

ANALYST COVERAGE

All analysts have buy recommendationsAnalyst Rating TargetByron Capital Markets Buy CDN$7

C d G it B CDN$10

All analysts have buy recommendations

Canaccord Genuity Buy CDN$10

Craig-Hallum Capital Buy $15

CIBC Sector Outperform CDN$10

Davenport & Co Buy $11

Fraser Mackenzie Strong Buy CDN$14

Northland Capital Sector Outperform CDN$11

Paradigm Capital Buy CDN$11

Versant Partners Buy CDN$8 40


Versant Partners Buy CDN$8.40

CONCLUSION

• Significant value generated over last five years

• Just beginning to realize business potential

• Five year growth strategy to drive long-term and sustained increase in shareholder value

VALUEVALUE GROWTHGROWTHTSX:WIN / NASD:WILN 23

Date post:	19-Jun-2015
Category:	Investor Relations
Upload:	wilancorporation
View:	543 times
Download:	0 times

Annual Needham Growth Conference

Investor Relations