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Tuesday, April 23, 2013 – 10:00 AM Ottawa, Ontario Annual and Special Meeting of Shareholders

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Page 1: Annual and Special Meeting of Shareholderss1.q4cdn.com/.../2013/WiLAN-2013-AGM-Presentation-FINAL.pdf · Strong Earnings And Cash Flow • 6th Year of Positive Cash Flow • $34M

Tuesday, April 23, 2013 – 10:00 AM

Ottawa, Ontario

Annual and Special Meeting of Shareholders

Page 2: Annual and Special Meeting of Shareholderss1.q4cdn.com/.../2013/WiLAN-2013-AGM-Presentation-FINAL.pdf · Strong Earnings And Cash Flow • 6th Year of Positive Cash Flow • $34M

Safe Harbour

Certain statements in this presentation, other than statements of historical fact, may include forward-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 on management’s current assumptions and expectations related to all aspects of the wireless and wireline telecommunications industries and the global economy. There can be no assurance that any statements of forward-looking information contained 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 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, the Company 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 release. Additional information identifying risks and uncertainties relating to the Company’s business are contained under the heading “Risk Factors” in WiLAN’s current Annual Information Form and its other filings with the various Canadian securities regulators which are available online at www.sedar.com.

Unless otherwise noted, all dollar amounts are in United States currency.

April 23, 20132

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Business Environment

Page 4: Annual and Special Meeting of Shareholderss1.q4cdn.com/.../2013/WiLAN-2013-AGM-Presentation-FINAL.pdf · Strong Earnings And Cash Flow • 6th Year of Positive Cash Flow • $34M

Patent Monetization Is Big BusinessNokia Sees Patent Portfolio as Increasing Source of RevenueNokia Sees Patent Portfolio as Increasing Source of Revenue

Samsung to pay Microsoft Royalties for All Android Phones it sells

Samsung to pay Microsoft Royalties for All Android Phones it sells

Microsoft, Facebook Strike$550M Patent Deal

Microsoft, Facebook Strike$550M Patent Deal

* Source: Arora, A, Fosfuri,A, Gambardella, A. 2009. Managing licensing in a market for technology, June 2009,

$200BANNUAL GLOBAL

LICENSING REVENUE *

April 23, 20134

Page 5: Annual and Special Meeting of Shareholderss1.q4cdn.com/.../2013/WiLAN-2013-AGM-Presentation-FINAL.pdf · Strong Earnings And Cash Flow • 6th Year of Positive Cash Flow • $34M

Large Corporations Want To Monetize Patents

April 23, 20135

Page 6: Annual and Special Meeting of Shareholderss1.q4cdn.com/.../2013/WiLAN-2013-AGM-Presentation-FINAL.pdf · Strong Earnings And Cash Flow • 6th Year of Positive Cash Flow • $34M

40%

Large CorporationsSmall Companies, Inventors,

Universities

99%60%

Small Portfolio Owners Want Their Fair Share

April 23, 20136

Page 7: Annual and Special Meeting of Shareholderss1.q4cdn.com/.../2013/WiLAN-2013-AGM-Presentation-FINAL.pdf · Strong Earnings And Cash Flow • 6th Year of Positive Cash Flow • $34M

WiLAN Today

Page 8: Annual and Special Meeting of Shareholderss1.q4cdn.com/.../2013/WiLAN-2013-AGM-Presentation-FINAL.pdf · Strong Earnings And Cash Flow • 6th Year of Positive Cash Flow • $34M

Diversified Business Model

• 3,000+ Patents, 250 Essential• Wireless, Digital TV and Display• Active Technology Research

Core Licensing

• Gladios IP• 12 Partnerships

Partner Licensing

April 23, 20138

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Licensing Success

COMPANIES LICENSED

April 23, 20139

Page 10: Annual and Special Meeting of Shareholderss1.q4cdn.com/.../2013/WiLAN-2013-AGM-Presentation-FINAL.pdf · Strong Earnings And Cash Flow • 6th Year of Positive Cash Flow • $34M

Strong Revenues

1 Cash Revenues

2006 2007 2008 2009 2010 2011 2012

1

$30.6M

$49.2M

$105.8M

$25.9M$17.5M

$1.9M

$88MANNUAL REVENUE

2006 to 2012

April 23, 201310

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Strong Earnings And Cash Flow

• 6th Year of Positive Cash Flow

• $34M Cash Generated

$88M

FY 2012

Revenue

$41.8M

Adjusted Earnings +

47% of Revenue

April 23, 201311+ 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.

Page 12: Annual and Special Meeting of Shareholderss1.q4cdn.com/.../2013/WiLAN-2013-AGM-Presentation-FINAL.pdf · Strong Earnings And Cash Flow • 6th Year of Positive Cash Flow • $34M

Solid Balance Sheet

Cash *$176.9

($1.46/share)Deferred Tax Assets * $20.8M

Long-Term Debt $0

* at December 31, 2012

April 23, 201312

Page 13: Annual and Special Meeting of Shareholderss1.q4cdn.com/.../2013/WiLAN-2013-AGM-Presentation-FINAL.pdf · Strong Earnings And Cash Flow • 6th Year of Positive Cash Flow • $34M

Increasing Dividend

13 April 23, 2013

$0.05 *

$0.10$0.12

$0.14

June2009

March2010

March2012

September2012

$0.16

March2013

ANNUAL ELIGIBLE

IN LESS THAN 4 YEARS

* All annual dividend amounts in Canadian currency

Page 14: Annual and Special Meeting of Shareholderss1.q4cdn.com/.../2013/WiLAN-2013-AGM-Presentation-FINAL.pdf · Strong Earnings And Cash Flow • 6th Year of Positive Cash Flow • $34M

Returning Capital

April 23, 201314

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Acquisitions Strengthen Portfolio

150 Patents and Applications40 Patents and Applications

Network Management and Mobile Media

April 23, 201315

Page 16: Annual and Special Meeting of Shareholderss1.q4cdn.com/.../2013/WiLAN-2013-AGM-Presentation-FINAL.pdf · Strong Earnings And Cash Flow • 6th Year of Positive Cash Flow • $34M

Partnerships Gaining Momentum

7

10

12

2011 2012 2013

April 23, 201316

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Focused Research

GLOBAL INNOVATOR

IEEE PATENT POWER 2012 RANKING

Source: http://spectrum.ieee.org/at-work/innovation/patent-power-2012

April 23, 201317

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World-Class Team

Education and Designations *

Engineers 25

Masters/PhDs 16

Lawyers 10

MBAs 4

Patent Agents 3

Accountants 3

* Indicates number of employees with given education/designation, not number of employees serving in specific role

+ Average number of employees in fiscal 2012: 48

55 Employees

April 23, 201318

2012 Revenue/Employee+: $1.8M+

Page 19: Annual and Special Meeting of Shareholderss1.q4cdn.com/.../2013/WiLAN-2013-AGM-Presentation-FINAL.pdf · Strong Earnings And Cash Flow • 6th Year of Positive Cash Flow • $34M

WiLAN Future

Page 20: Annual and Special Meeting of Shareholderss1.q4cdn.com/.../2013/WiLAN-2013-AGM-Presentation-FINAL.pdf · Strong Earnings And Cash Flow • 6th Year of Positive Cash Flow • $34M

Core Licensing Strategy

April 23, 201320

Build Portfolio

Acquisitions Research

Wireless WirelessDigital TV

and Display

EmergingAreas

Page 21: Annual and Special Meeting of Shareholderss1.q4cdn.com/.../2013/WiLAN-2013-AGM-Presentation-FINAL.pdf · Strong Earnings And Cash Flow • 6th Year of Positive Cash Flow • $34M

Core Licensing Strategy

April 23, 201321

Get the Right Agreement

Royalty Rate

Patents

Products

Term

Page 22: Annual and Special Meeting of Shareholderss1.q4cdn.com/.../2013/WiLAN-2013-AGM-Presentation-FINAL.pdf · Strong Earnings And Cash Flow • 6th Year of Positive Cash Flow • $34M

Core Licensing Strategy

April 23, 201322

If Negotiation Fails, Litigate

Page 23: Annual and Special Meeting of Shareholderss1.q4cdn.com/.../2013/WiLAN-2013-AGM-Presentation-FINAL.pdf · Strong Earnings And Cash Flow • 6th Year of Positive Cash Flow • $34M

Partner Licensing Strategy

23 April 23, 2013

ex·per·tisejudgment, etc. of an expert

PartnerPatentsCash and Expertise

Page 24: Annual and Special Meeting of Shareholderss1.q4cdn.com/.../2013/WiLAN-2013-AGM-Presentation-FINAL.pdf · Strong Earnings And Cash Flow • 6th Year of Positive Cash Flow • $34M

Partner with Patent Owner

Partner Licensing Strategy

24 April 23, 2013

Partner with Law Firm

Page 25: Annual and Special Meeting of Shareholderss1.q4cdn.com/.../2013/WiLAN-2013-AGM-Presentation-FINAL.pdf · Strong Earnings And Cash Flow • 6th Year of Positive Cash Flow • $34M

Large, Untapped Market

Wi-Fi, DSL, Bluetooth

TV andDisplay

Handsets

CellularInfrastructure

Emerging Areas

* Estimated using market research data from various sources including Display Search, Dell’Oro, Strategy Analytics, IDC, WiLAN

Gladios

$80B

$920B

$250B

$140B$40B $100B

April 23, 201325

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Increasing Pressure

10 New Litigations

April 23, 201326

INVESTED IN LITIGATION

Page 27: Annual and Special Meeting of Shareholderss1.q4cdn.com/.../2013/WiLAN-2013-AGM-Presentation-FINAL.pdf · Strong Earnings And Cash Flow • 6th Year of Positive Cash Flow • $34M

NovemberOctober

Setting The Stage

July August September

April 23, 201327

3GPP HSPA LTE Wi-Fi, CDMA,LTE, HSPA

Digital TV V-Chip

Bluetooth

Page 28: Annual and Special Meeting of Shareholderss1.q4cdn.com/.../2013/WiLAN-2013-AGM-Presentation-FINAL.pdf · Strong Earnings And Cash Flow • 6th Year of Positive Cash Flow • $34M

Focused Capital Allocation

% of Cash Flow Target (approx.)

Dividend 40

Investment (e.g. patent acquisitions) 40

Share buyback/other 20

April 23, 201328

Page 29: Annual and Special Meeting of Shareholderss1.q4cdn.com/.../2013/WiLAN-2013-AGM-Presentation-FINAL.pdf · Strong Earnings And Cash Flow • 6th Year of Positive Cash Flow • $34M

Conclusion

Value and Growth

April 23, 201329

Page 30: Annual and Special Meeting of Shareholderss1.q4cdn.com/.../2013/WiLAN-2013-AGM-Presentation-FINAL.pdf · Strong Earnings And Cash Flow • 6th Year of Positive Cash Flow • $34M

Tuesday, April 23, 2013 – 10:00 AM

Ottawa, Ontario

Annual and Special Meeting of Shareholders