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Corporate Overview September 19, 2013 Jim Skippen, President and CEO

130919 WILN WIN Investor Presentation Overview Final

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Page 1: 130919 WILN WIN Investor Presentation Overview Final

Corporate Overview

September 19, 2013Jim Skippen, President and CEO

Page 2: 130919 WILN WIN Investor Presentation Overview Final

Safe HarbourCertain 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.

September 19, 2013 2

Page 3: 130919 WILN WIN Investor Presentation Overview Final

September 19, 2013 3

Page 4: 130919 WILN WIN Investor Presentation Overview Final

Vital Stats

• TSX (WIN) andNASDAQ (WILN) listed

• S&P/TSX Composite and Dividend Indexes

September 19, 2013

TSX: WINTotal Shareholder Return Since 2006 + 410%

Market Capitalization ~ $440M

Cash *$159M

($1.31/share)

Long-term Debt $0

Annual Dividend CDN $0.16

+ May 15, 2006 to September 16, 2013 * At June 30, 2013

4

Page 5: 130919 WILN WIN Investor Presentation Overview Final

Diversified Business Model

September 19, 2013 5

Core

• Large Portfolios• 3,000+ Patents, 250 Essential• Wireless, Digital TV and Display• Emerging – Semiconductor,

Medical, Data Management • Research and Acquisition

CoreLicensing

Page 6: 130919 WILN WIN Investor Presentation Overview Final

Diversified Business Model

September 19, 2013 6

• 13 Partnerships Signed

• Markets – DRM, IPTV, Gaming, Data Security

Licensing Partnerships

Page 7: 130919 WILN WIN Investor Presentation Overview Final

Competitive Positioning

September 19, 2013

P A T E N T A G G R E G A T O R P A T E N T L I C E N S I N G P A T E N T A G G R E G A T O R

• R&D + Partnership

• Heavy R&D • No R&D • Defensive Acquisitions

7

Page 8: 130919 WILN WIN Investor Presentation Overview Final

Leading Global Innovator

September 19, 2013

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

GLOBAL INNOVATOR

IEEE PATENT POWER 2012 RANKING

8

Page 9: 130919 WILN WIN Investor Presentation Overview Final

Portfolio Growth

September 19, 2013

2006 2007 2008 2009 2010 2011

CORE PATENTSNumber of Issued and Pending Patents WHERE DO OUR

PATENTS COME FROM?

• R&D• Acquisitions

• Proactive identification

• Inbound inquiries• Brokers• Investment

Bankers

970750

300270

9

2012 2013

20

3,000 3,0103,150

Page 10: 130919 WILN WIN Investor Presentation Overview Final

~80% ~20%

Licensing Track Record

September 19, 2013

COMPANIES LICENSED

AGREEMENTS WORTH 100s OF $MILLIONS

Revenue by Agreement Type

Quarterly SubscriptionPayments

Running Royalties

10

Page 11: 130919 WILN WIN Investor Presentation Overview Final

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

11September 19, 2013

Page 12: 130919 WILN WIN Investor Presentation Overview Final

High Margin Business

September 19, 2013

$105.8M

+ Adjusted Earnings = EBITDA + interest

$88.0M68% of Revenue

47% of Revenue

2011 2012

Revenue Revenue

$71.5M

Adjusted Earnings +

$41.8M

Adjusted Earnings

12

Page 13: 130919 WILN WIN Investor Presentation Overview Final

Focused Capital Allocation

% of Cash Flow Target (approx.)

Dividend 40

Investment (e.g. patent acquisitions) 40

Share buyback/other 20

13September 19, 2013

Page 14: 130919 WILN WIN Investor Presentation Overview Final

Increasing Dividend

$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

14September 19, 2013

Page 15: 130919 WILN WIN Investor Presentation Overview Final

Wireless Market Opportunity

September 19, 2013 15* Estimated using market research data from Dell’Oro, Strategy Analytics, WiLAN

Portfolio 1200+ Issued and Pending Patents

Technologies 4G, 3G, 2G, Bluetooth, Wi-Fi

Unlicensed Global Market (5 Years) * $1+ Trillion

Major Prospective Licensees (New/Renewal)

Apple, Blackberry, Ericsson, HTC, Nokia

Page 16: 130919 WILN WIN Investor Presentation Overview Final

Digital TV and Display Market Opportunity

September 19, 2013 16* Estimated using market research data from Display Search

Portfolio 1400+ Issued and Pending Patents

Technologies V-Chip, Video Processing, Display Technology, IPTV

Unlicensed Global Market (5 Years) * $200+ Billion

Major Prospective Licensees (New) LG, Samsung, Sony, Toshiba

Page 17: 130919 WILN WIN Investor Presentation Overview Final

• Most companies take licenses voluntarily• Over 90% of WiLAN licenses negotiated without litigation

• Some refuse to take licenses on reasonable terms• Demand portfolio license on unreasonable terms• Litigation only option

Licensing Methodology

September 19, 2013 17

Litigation Phase1 or more Patents

Meeting PhaseUsually 2 to 4 years

Ongoing Negotiations Until License Signed

LicenseSignedLicenseSigned

LicenseSignedLicenseSigned

Page 18: 130919 WILN WIN Investor Presentation Overview Final

Upcoming Trials – 2013 to 2014

September 19, 2013 18

Oct 2013 Jan 2014

Wi-Fi, CDMA,LTE, HSPA Bluetooth

Nov 2014

Bluetooth

Digital TV

April 2014

LTE

Page 19: 130919 WILN WIN Investor Presentation Overview Final

World-Class Team

September 19, 2013 19

Jim Skippen President and CEO

Shaun McEwan CFO

Michael Vladescu COO

Andrew Parolin SVP, Business Unit Leader

Mark Schneider SVP, Business Unit Leader

Marc Frechette VP, Business Unit Leader

Deepak Sharma VP, Business Development

Page 20: 130919 WILN WIN Investor Presentation Overview Final

World-Class Team

September 19, 2013

Education and Designations * Engineers 25Masters/PhDs 16Lawyers 10MBAs 4Patent Agents 3Accountants 3

59 Employees

2012 Revenue/Employee+: $1.8M+* Indicates number of employees with given education/designation,

not number of employees serving in specific role+ Average number of employees in fiscal 2012: 48

20

Page 21: 130919 WILN WIN Investor Presentation Overview Final

Conclusion

September 19, 2013 21

Value Growth

Compelling Business

Model

Large Market Opportunity

Strong Financial

Performance

Solid Balance Sheet

World-Class Team

Track Record