investor presentation overview
TRANSCRIPT
Corporate Overview
March 2012
Jim Skippen, President & CEO
TSX:WIN / NASD:WILN 2
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
expectations 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
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 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 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 March 9, 2012 Annual Information Form and its other
filings with the various Canadian securities regulators which are avail0able online at www.sedar.com and with 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
ABOUT WiLAN
• US $600M+ market capitalization (March 6, 2012)
• Revenues: licensing large patent portfolio
• Established business model
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Qualcomm
$4B
IBM
$2B
Annual Revenues
InterDigital
$300M
Tessera
$300M
WiLAN
$105M
RPX
$100MAcacia
$130M
Rambus
$300M
TSX:WIN / NASD:WILN
• Growing awareness of the value of patents
• Companies exploring how to unlock value
• Inefficient patent market
PATENTS AS AN ASSET CLASS
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July 2, 2011, Wall Street Journal August 15, 2011, National Post
TSX:WIN / NASD:WILN
WORLD CLASS TEAM – LEADERSHIP
• 25 years licensing, $1B patent licensing
• MOSAID, Borden Elliot
Jim Skippen
President & CEO
• 20 years financial and executive leadership
• Breconridge, Calian
Shaun McEwan
CFO
• 15 years of IP licensing experience
• MOSAID
Michael Vladescu
COO
• 25 years IP law and licensing
• GPC, Black & Decker, ABB
Paul Lerner
Senior 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 Henry
VP Business Development
• 14 years corporate and IP law
• AGA Medical, Sikorsky Aircraft, Martin Marietta
Matt Pasulka
VP Patent Litigation
• 15 years engineering, marketing and licensing
• Nortel, Communications Research Centre
Christian Dubuc
VP Licensing Technologies
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TSX:WIN / NASD:WILN
WORLD CLASS TEAM – MULTIPLE DISCIPLINES
• 54 employees, highest revenue/employee of any
Canadian public high-tech company ($2M)
Education and Designations*
Engineers 32
Masters/PhDs 27
Lawyers 9
MBAs 3
Patent Agents 6
Accountants 2
* Indicates # of employees with given education/designation, not # of employees serving in specific role
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TSX:WIN / NASD:WILN
GROWING AND DIVERSE PATENT PORTFOLIO
7
20
280 300
750970
3000+
2006 2007 2008 2009 2010 2011
Technology Patents*
Wireless Communication 1000+
Wireline Communication 300+
Digital TV and Display 1500+
Other 200
* Issued and pending patents
TSX:WIN / NASD:WILN
LICENSING EXCELLENCE
• Over 255 companies licensed
• Major litigations settled in 2011
• Signed license agreements worth 100s of $M
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TSX:WIN / NASD:WILN
STRONG REVENUE GROWTH
2006 2011
2,1
19,226,6
35,4
50,7
$105.8M
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30%+ Annual Cash Revenue
Growth
+ Cash revenues
M
M+M
M
M
$
$$
$
$
2007 2008 2009 2010
TSX:WIN / NASD:WILN
POSITIVE EARNINGS
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! Continuing operations
+ 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
2004 2005 2006 2007 2008 2009 2010 2011
($5.9M)
($23.9M)
($1.4M!)
$4.8M$9M
$2.5M $4.8M
$71.5M
Dramatic earnings+ growth in 2011 due to litigation settlements
TSX:WIN / NASD:WILN
STRONG FINANCIAL POSITION
Net cash* $200M+
Long-term debt $0
Deferred tax asset $24M
Annual dividend+ CDN $0.12
• At December 31, 2011, excluding net proceeds raised and accrued interest on convertible debenture closed on September 8, 2011. + Annual Dividend approved for 2012, first quarterly eligible dividend of CDN $0.03 per common share declared with release of W iLAN’s FY 2011 Financial Results
Listed on NASDAQ Global Select Market
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TSX:WIN / NASD:WILN
WILAN HAS JUST BEGUN – FIVE YEAR STRATEGY
• Realistic plan to increase revenue to $200M+
• Current programs
• Gladios IP – licensing partnerships
• New programs (acquisitions, R&D)
• Fair value of licenses has increased
• Larger portfolio, stronger patents
• US headquarters in Florida
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+ Considers many third party factors including volumes of infringing products and wholesale value of infringing products,
TSX:WIN / NASD:WILN
REVENUE DRIVERS – CURRENT PROGRAMS
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.
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2010 Device Sales:
Over $100B (WW)
2010 Device Sales:
Over $26B (NA)
2010 Device Sales:
Over $140B (WW)
2014 Device Sales:
Over $25B (WW)
2010 Device Sales:
Over $100B (WW)
3G
Today Future
TSX:WIN / NASD:WILN
REVENUE DRIVERS – LICENSE OPPORTUNITIES
New
Licenses
Products In Litigation
Cellular
infrastructure
Yes
Cellular
handsets
Yes
Cellular
infrastructure
Yes
Cellular
handsets
Yes
Cellular
handsets
Yes
Cellular
handsets
Yes
DSL
infrastructure
Digital televisions
Renewed/Expanded
Licenses
Products In Litigation
Digital
televisions
Yes
Cellular
handsets
Cellular
handsets
Yes
Cellular
handsets
Digital
televisions
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TSX:WIN / NASD:WILN
Technology Devices Remaining
Defendants
Agreements /
Settlements
Phase
V-Chip DTV LG
Summary
Judgment
3GPP Cellular
Base
Stations
Alcatel-Lucent,
Ericsson,
Sony Ericsson,
HTC
LG Discovery
Wi-Fi, CDMA Cellular
Handsets
Apple,
Alcatel-Lucent,
Dell, HP,
HTC, Kyocera,
Novatel Wireless,
Sierra Wireless
Initial
Pleadings
Bluetooth,
E-mail/Text
Editing
Cellular
Handsets
RIM Court Filing
REVENUE DRIVERS - SIGNIFICANT LITIGATIONS
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TSX:WIN / NASD:WILN
REVENUE DRIVERS – GLADIOS IP
• WiLAN subsidiary
• Partnerships to generate additional revenue
with limited risk and investment
• Seven partnerships to date
• Technologies include remote access and internet
advertising
• 1st partner litigation launched in January 2012
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TSX:WIN / NASD:WILN
NEW PROGRAMS – PATENT ACQUISITIONS
• Significant financial resources on hand –$200M+*
• Proven ability to acquire undervalued assets
DOCSIS patent
Bluetooth patents
Wireless patents
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* At December 31, 2011, excluding net proceeds raised and accrued interest on convertible debenture closed on September 8, 2011.
At December 31, 2011, excluding net proceeds from convertible debenture closed on September 8, 2011.
TSX:WIN / NASD:WILN
PATENT ACQUISITIONS
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TSX:WIN / NASD:WILN
RESEARCH AND DEVELOPMENT
• R&D drives future revenue prospects
and business opportunities
• Next generation wireless technology
• Spectrum sensing in Whitespace
• LTE in picocell networks
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TSX:WIN / NASD:WILN
FINANCIAL HIGHLIGHTS
• Annual dividend increased 20% to $0.12 per
common share+
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Q4 2011
Results
FY 2011
Results
Q1 2012
Revenues $24.2M,
up 120% y/y
$105.8M,
up 115% y/y
$21.6M^
Adjusted Earnings+ $17.8 M $71.5M $11M to $14M^
GAAP Earnings ($6.1M) $31.8M
+ 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.
Q1 2012 Financial Guidance
* $0.12 per share annual dividend approved for 2012, first quarterly eligible dividend of CDN $0.03 per common share declared with release of WiLAN’s FY 2011 Financial results
TSX:WIN / NASD:WILN
ANALYST COVERAGE
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Analyst Rating
Byron Capital Markets Buy
Canaccord Genuity Buy
Craig-Hallum Capital Buy
CIBC Sector Outperform
Davenport & Co Buy
Fraser Mackenzie Strong Buy
Northland Capital Sector Outperform
Paradigm Capital Buy
Versant Partners Buy
All analysts have buy recommendations
TSX:WIN / NASD:WILN
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
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VALUE GROWTH