Investor Presentation Overview - Canaccord Genuity 32nd Annual Growth Conference

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Corporate Overview Jim Skippen, President & CEO Canaccord Genuity 32 nd Annual Growth Conference August 15, 2012

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Investor Presentation Overview - Canaccord Genuity 32nd Annual Growth Conference

Transcript of Investor Presentation Overview - Canaccord Genuity 32nd Annual Growth Conference

Page 1: Investor Presentation Overview - Canaccord Genuity 32nd Annual Growth Conference

Corporate Overview

Jim Skippen, President & CEO Canaccord Genuity 32nd Annual Growth Conference August 15, 2012

Page 2: Investor Presentation Overview - Canaccord Genuity 32nd Annual Growth Conference

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.

August 15, 2012 2

Page 3: Investor Presentation Overview - Canaccord Genuity 32nd Annual Growth Conference

WiLAN

August 15, 2012

• Leader in IP licensing

• TSX (WIN) and NASDAQ (WILN) listed

• S&P/TSX Composite and Dividend Indexes

TSX: WIN

Recent Share Price * CDN $4.96

Market Capitalization * CDN $590M

Total Shareholder Return since 2006 550%

Cash $191M

Long-term Debt $0

Annual Dividend CDN $0.14 * Canadian Dollars

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Investment Highlights

August 15, 2012

Compelling Growth Opportunities

Experienced Management Team with a Proven Track Record of Success

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Diversified and High-Margin Recurring Subscription Business Model

Large, Attractive and Untapped Market Opportunity

Strong Financial Performance and Well Capitalized

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Large Corporations Actively Monetizing Patents

August 15, 2012

$4.5 Billion

Nortel Patent Sale – July 2011

$12.5 Billion

Google / Motorola Acquisition – August 2011

AOL / Microsoft / Facebook Sale – April 2012

$1.1 Billion

800 Patents

Samsung / Microsoft – September 2011

Royalties paid for all Android phones

Estimated $5-10 per handset

Pursuing Monetization Strategies

Over 17,000 patents

$550 Million 650 Patents sold,

300 licensed

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Annual U.S. Patent Licensing Revenue: $500B *

August 15, 2012

40% 60%

99%

Patent Ownership Revenues Generated 1%

Large corporations

Small companies, individual inventors, universities and research labs

* Sources: Deloitte, Intellectual Asset Management, July 2009, http://www.deloitte.com; Acacia Research; Intellectual Ventures

…BUT LARGEST OWNERSHIP GROUP IS NOT GENERATING FAIR SHARE OF REVENUES

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Business Model

August 15, 2012

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

• Heavy R&D investment • Owned patents

• Zero R&D investment • Partner owned patents

• Modest R&D investment • Owned and partner

patents

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Diversified Business

August 15, 2012

G L A D I O S License partner owned patents

C O R E License owned patents

Recurring subscription model

Ownership Partnership

R E V E N U E

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Wireless Access

TV and Digital Display

Cloud Computing

3,000 patents, 250 essential 7 partnerships

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Large, Untapped Market Opportunity

August 15, 2012

Wi-Fi, DSL, Bluetooth

TV and Display

Handsets

Cellular Infrastructure

Cloud Computing

$80B

$920B

$250B

$140B

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

$40B

Over $1.5 Trillion

Unlicensed Global Equipment Market 5 Years *

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Gladios

$100B

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Portfolio Growth

20 270 300

750 970

3,000+

2006 2007 2008 2009 2010 2011

CORE PATENTS Number of Issued and Pending Patents

WHERE DO OUR PATENTS

COME FROM? • R&D • Acquisitions

• Inbound inquiries • Brokers and

investment bankers • Proactive

identification

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Licensing Success

August 15, 2012

COMPANIES LICENSED AGREEMENTS WORTH 100’s OF $MILLIONS 260+

Agreement Types

80% 20%

Fixed Payments Running Royalties

4+ Years of Revenue Backlog

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Strong Track Record of Revenue Growth

August 15, 2012

ANNUAL REVENUE INCREASE

1 Cash Revenues

OVER $100M IN 5 YEARS

2006 2007 2008 2009 2010 2011 2005

$1.9M

$17.5M $25.9M

$30.6M

$49.2M

$105.8M

$0

1

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115% INCREASE

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Litigation Catalysts

August 15, 2012

Case Companies Recent Events Upcoming Events

3GPP

Markman Order • Believe constructions

enable demonstration of infringement

• All 10 of defendants’ constructions rejected

Trial – April 2013

Handset 2 Markman Hearing – February 2013 Trial – March 2014

HTC Markman Hearing – February 2013 Trial – August 2013

RIM Trial – February 2014

LG USPTO validated all claims in V-Chip patent, allowed 30 new claims

Appeal Hearing – Q4 2012 (estimated)

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World-Class Team

August 15, 2012

Michael Vladescu COO

Shaun McEwan CFO

Paul Lerner Senior Legal

Counsel

Dan Henry VP Business Development

Jim Skippen CEO

Education and Designations *

Engineers 32

Masters/PhDs 27

Lawyers 9

MBAs 3

Patent Agents 6

Accountants 2 * Indicates number of employees with given education/designation,

not number of employees serving in specific role

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ANALYSTS TSX: WIN NASD: WILN

Public Market Presence

August 15, 2012

Analyst Rating

Byron Capital Markets Buy

Canaccord Genuity Buy

CIBC World Markets Sector Outperform

Clarus Securities Buy

Craig-Hallum Capital Buy

Davenport & Co. Buy

Fraser Mackenzie Strong Buy

Northland Capital Sector Outperform

Paradigm Capital Buy

Versant Partners Buy

All Recommend “Buy”

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Conclusion

August 15, 2012

Value + Growth

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Just beginning to realize business potential

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August 15, 2012

APPENDIX

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August 15, 2012

Key Litigations

COURT: Texas 3GPP Case

HSPA

Defendants

Technology

2012 2013

Markman – April 2012

Trial – April 2013

Mediation

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Key Litigations

August 15, 2012

Wi-Fi, CDMA

Defendant

Technologies

2012 2013

Markman – February 2013

Trial – August 2013

HTC Case COURT: Texas

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August 15, 2012

Key Litigations

Wi-Fi, CDMA

2012 2013 2014

Markman – February 2013

Trial – March 2014

COURT: Texas Handset2 Case

Defendants

Technologies

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COURT: New York

August 15, 2012

Key Litigations

V-Chip

2012 2013

Appeal Hearing – Q4 2012 (estimated)

Trial – Q4 2013 (estimated)

Defendant

Technology

LG Case

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COURT: Florida

August 15, 2012

Key Litigations

Bluetooth, Email/Text Editing

2012 2013

Trial – February 2014

RIM Case

Defendant

Technologies

2014

Markman – February 2013

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