Sierra Wireless Corporate Overview August 2021
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Sierra Wireless Corporate Overview August 2021
Cautionary Note Regarding Forward-Looking Statements
• Certain statements and information in this presentation are not based on historical facts and constitute forward-looking o Forward-looking statements are based on our management’s current expectations and we caution investors that forward-looking
statements within the meaning of applicable securities laws (“forward-looking statements”). These forward-looking statements statements, particularly those that relate to longer periods of time are subject to substantial known and unknown material risks and
may include statements and information relating to our financial guidance for our first quarter and fiscal year 2021; the impact of uncertainties. Many factors could cause our actual results, achievements and developments in our business to differ significantly from
COVID-19 on customer demand, our supply chain, manufacturing capacity, our ability to meet customer demand and our financial those expressed or implied by our forward-looking statements, including, without limitation, the following factors, which are
results; expectations regarding post-COVID-19 recovery; our business outlook for the short and long term; statements regarding discussed in greater detail. These risk factors and others are discussed in our Annual Information Form and Management’s Discussion
our strategy, plans, goals, objectives, expectations and future operating performance; the Company's liquidity and capital and Analysis of Financial Condition and Results of Operations, which may be found on SEDAR at www.sedar.com and on EDGAR at
resources; the Company's financial and operating objectives and strategies to achieve them; general economic conditions; www.sec.gov and in our other regulatory filings with the Securities and Exchange Commission in the United States and the provincial
estimates of our expenses, future revenues, financial results and capital requirements; our expectations regarding the legal securities commissions in Canada:
proceedings we are involved in; statements with respect to the Company's estimated working capital; expectations with respect o prolonged negative impact from COVID-19;
to the adoption of Internet of Things ("IoT") solutions; expectations regarding trends and growth in the IoT market and wireless
module market; expectations regarding product and price competition from other wireless device manufacturers and solution o our access to capital if required;
providers; our ability to implement effective control procedures; expectations regarding the launch of fifth generation cellular o competition from new or established competitors or from those with greater resources;
embedded modules and corporate update. In particular, this presentation describes our revenue targets, which are forward- o natural catastrophes or public health epidemics could impact customer demand, result in production disruption and impact our
looking statements and are subject to the assumptions, risks and uncertainties described below. Forward-looking statements are ability to meet customer demand or capacity to continue critical operations;
provided to help you understand our current views of our short and long-term plans, expectations, and prospects. We caution you o risks that the Sale Transaction may fail to realize the expected benefits;
that forward-looking statements may not be appropriate for other purposes. We do not intend to update or revise our forward-
looking statements unless we are required to do so by securities laws.
o the loss of, or significant demand fluctuations from, any of our significant customers;
o our financial results being subject to fluctuation;
• Forward-looking statements typically include words and phrases about the future, such as: “target”, “outlook”, “will”, “may”, o our business transformation initiatives may result in disruptions to our business and may not achieve the anticipated benefits;
“estimates”, “intends”, “believes”, “plans”, “anticipates” and “expects”, and similar expressions are not promises or guarantees of
future performance. They represent our current views and may change significantly. In particular forward-looking statements
o our ability to respond to changing technology, industry standards and customer requirements;
that relate to longer periods of time, such as our revenue targets, are subject to substantial uncertainty and could prove to be o failures of our products or services due to design flaws and errors, component quality issues, manufacturing defects, network
significantly incorrect. Forward-looking statements are based on a number of material assumptions, including, but not limited to, service interruptions, cyber-security vulnerabilities or other quality issues;
those listed below, which could prove to be significantly incorrect: o deterioration in macro-economic conditions could adversely affect our operating results and financial conditions;
o our ability to attract or retain key personnel and the impact of organizational change on our business;
o the scope and duration of the COVID-19 pandemic and its impact on our business;
o our ability to return to normal operations after the COVID-19 pandemic has subsided;
o cyber-attacks or other breaches of our information technology security;
o expected component supply constraints and manufacturing capacity; o risks related to the transmission, use and disclosure of user data and personal information;
o customer demand and our ability to continue to sell our products and services in the expected quantities at the o disruption of, and demands on, our ongoing business and diversion of management's time and attention in connection with
expected prices and expected times; acquisitions or divestitures;
o our ability to realize the anticipated benefits of the recent divestiture of the automotive product line (the “Sale o risks that the acquisition of M2M Group and M2M New Zealand or our investments and partnerships may fail to realize the
Transaction”); expected benefits.
o our ability to effect and to realize the anticipated benefits of our business transformation initiatives, and the timing o risks related to infringement on intellectual property rights of others;
thereof; o our ability to obtain necessary rights to use software or components supplied by third parties;
o our ability to develop, manufacture and sell new products and services that meet the needs of our customers and gain o our ability to enforce our intellectual property rights;
commercial acceptance; o our reliance on single source suppliers for certain components used in our products;
o expected macro-economic business conditions; o our dependence on a limited number of third-party manufacturers;
o expected cost of sales; o unanticipated costs associated with litigation or settlements;
o our ability to win new business; o our dependence on mobile network operators to promote and offer acceptable wireless data services;
o our ability to integrate acquired businesses and realize expected benefits; o risks related to contractual disputes with counterparties;
o our ability to renew or obtain credit facilities when required; o risks related to governmental regulation;
o expected deployment of next generation networks by wireless network operators;
o risks inherent in foreign jurisdictions; and
o our operations not being adversely disrupted by other developments, operating, cyber security, litigation, or regulatory
risks; and
o risks related to tariffs or other trade restrictions.
Investors are cautioned not to place undue reliance on these forward-looking statements. No forward-looking statement is a guarantee
o expected tax and foreign exchange rates.
of future results.
USE OF NON-GAAP FINANCIAL MEASURES: this presentation contains references to certain non-GAAP financial
measures and should be viewed in conjunction with our press release, which contains further information regarding
our use of non-GAAP financial measures, including a reconciliation of such information to our GAAP results
2
Global Leader in IoT Solutions for Over 25 Years
Creating a Connected Economy of Exponential Value
Leader in cellular Fully integrated Innovation in Edge Accelerating the future Simplifying the
embedded modules Device-to-Cloud Intelligence, Data of IoT with leading Complexity and
& gateways/routers IoT connectivity Orchestration, and partnerships Deployment of
solutions → End-to-End Security IoT & Enterprise
LPWA to 5G Solutions
3
Global Leader in Cellular Device-to-Cloud Solutions
for the Internet of Things and People
DEVICES CONNECTIVITY CLOUD
Cellular modules Smart Connectivity Management Platform
Routers & Gateways 24/7/365 Edge Data
GNOC Orchestration
Integrated Solutions with End-to-End Security
4
Sierra Wireless Sierra Wireless enables rapid, secure IoT deployment at scale
provides IoT Stack
Device-to-Cloud Business domain (IT environment)
APPLICATION
solutions that TIER
Iot application domain
accelerate Application platform
IoT deployments
Big data analytics
Partnering with Big Data analytics and Cloud
DATA services infrastructure players
TIER
Cloud services infrastructure
Data ingestion
Connectivity services
EDGE
TIER
Edge gateways
Communication devices
Connected Devices
5
Our IoT edge modules are made to help you succeed
Simple Scalable Secure
Speed development time Design products for Reduce security risks of
and simplify integration longevity and take devices/systems, as well as
complexity advantage of latest delays in certification
innovations requirements
Rich set of edge & cloud APIs Global solutions to deploy Secure credentials and
to accelerate development anywhere edge-to-cloud security
Common Flexible Form Security experts driving
Connectivity built-in
Factor CF3® standard and best practices
From Edge to Cloud : Plug Trusted partner with 25+ Transparent vulnerability
your device and play in years of experience and risks management
the cloud
6
Low Power Wide Area (LPWA) – Cat M1 & Cat NB1 7
The most power efficient LTE-M
HL7845 – The Most Secure and Efficient
and NB-IoT module in the
market that supports the LTE
LTE 450MHz Module
450MHz frequency band for • Built for the 450MHz networks in Europe
smart metering and smart grid
• Dual mode LTE Cat-M1 and NB2 (Release 14)
applications.
• Best-in-class power consumption to reduce operational and device
maintenance costs
• Future-proof design with common form factor
Now
supports • Superior transmit power for reliable coverage in public carrier networks
450 MHz
bands • Enables utilities to operate their own private network for an added layer
of robust security, deeper area coverage and building penetration
8
Technology Solutions and Use Cases
TECHNOLOGY USE CASES SOLUTIONS
LPWA
Cat M1/NB1 +
Embedded Connectivity
Smart Smart Smart Industrial Mobile
50-300Kbps Meters Grid City/Building Asset
4G
Cat 1-4 +
10-50 Mbps Fleet Transit Public Security Enterprise
Safety Data Orchestration
DEVICES
4G/5G 5G DEVICES
50 Mbps-20 Gbps
Routers PC-OEM
9
5G: New Standards for High-Speed Cellular Connectivity
World’s First 5G module World's First 5G Multi-Network
NEW NEW
with mmWave support Vehicle Router
Sierra Wireless 5G modules will enable secure The AirLink® MG90 5G platform provides secure,
connectivity at the highest possible speeds with always-on mobile connectivity for mission-critical
ultra-low latency for mobile computing, routers, first responder, field service and transit
gateways, industrial automation, and many new applications.
Industrial IoT applications.
The AirLink® MG90 5G
delivers the best-in-class user
With support for mmWave,
experience, performance and
Sub-6 GHz and LTE, Sierra
reliability that the top public
Wireless modules will enable
safety agencies rely on to
OEM’s to securely deploy 5G
ensure safety and save lives.
worldwide.
10Connectivity Solutions focused on IOT
OUR DIFFERENCE THROUGH SIMPLE YET DIFFERENTIATED OFFERS:
Smart Connectivity
Simplify Global
Deployments
Maximize
QoS
Coverage
End-to-End Enhanced Carrier Connectivity
Security
One Point of
Accountability
11Sierra Wireless AirLink Networking Solutions
High Performance Cellular Router Solutions for Mission and Business-Critical Communications
• Complete edge & cloud solution portfolio
• Trusted in mission and business-critical deployments
• Designed for high performance
• Architected with end-to-end security
{REST:API}
Cloud Management
AirLink Services
AirLink XR90
The world’s most advanced 5G router solutions Modern OS
From Edge to Cloud, architected with End-to-End Security
12Why
WhySierra Wireless
Sierra Networking
Wireless Enterprise Solutions?
Solutions? AirLink®
If you are connecting vital corporate assets to your enterprise network,
whether it’s in an oil field, a branch office or your vehicle fleet, you want to
work with experts – people you can trust who understand that
connectivity is mission-critical and seconds count!
GET CONNECTED. STAY CONNECTED.
More than 3 Million routers & gateways deployed
4 out of 5 of the All of the Top 10 3 out of 4 More than 25% More than half
Top 20 utilities Oil & Gas producers High-performance of the Top 50 transit of the Top 100
use AirLink routers for smart rely on Sierra Wireless to keep EMS systems* agency vehicles police departments
grid deployments and vehicle their infrastructure running trust Sierra Wireless routers depend on Sierra Wireless rely on Sierra Wireless routers
fleets smoothly to support paramedics in the routers to improve passenger in cruisers and incident
field services and operations response vehicles
13Sierra Wireless Networking Solutions
Vehicle Networking Enterprise Networking Industrial Networking
Provide reliable connectivity and Provide backup connectivity to Remotely monitor and control
location-based services to mobile remote office locations, and remotely infrastructure, instrumentation, or
workforces in utilities, transit and manage networking equipment surveillance equipment
public safety
14A complete Sierra Wireless and its partners can provide all, or part of,
and flexible the solution
solution to fit Connected
devices and Big data
customers’ machines and enterprise
integration
organizations
and needs
15 INTERNAL ONLYXR Series: The World’s Most Advanced 5G Router Solutions
XR90 5G Router XR80 5G Router
ARCHITECTED FOR 5G OPERATIONAL END-TO-END
PERFORMANCE SIMPLICITY SECURITY
Sierra provides advanced software, cloud management, and connectivity services for all its cellular gateways & routers
16Sierra Wireless Vertical IoT Applications
Asset/Cargo Tracking Solutions Offender Monitoring Service Security Communicator Solutions
• Solutions that provide global • Market-ready solution for • The security industry’s most
visibility into where, what and agencies to track persons of trusted source for wireless
how cargo, assets and vehicles interest with industry leading alarm communicators and
are deployed. GPS ankle-worn device. connectivity services.
Combining hardware devices, software, cloud management, and connectivity services for complete solutions
17Octave: The Only All-in-One, Edge-to-Cloud Solution
for Connecting Industrial Assets to the Cloud
OVER 25 YEARS OF
IOT INFRASTRUCTURE DATA ORCHESTRATION
EXPERTISE
Edge Connectivity Connectivity
Devices Services & Device Edge and Cloud Use Cases Expertise &
Management Distributed Data Orchestration Engine Integration
18Sierra Wireless and Microsoft Announce
Unique IoT Strategic Collaboration
• Sierra Wireless becomes Microsoft’s preferred partner for cellular
modules, gateways and connectivity (Octave)
• Microsoft Azure/IoT Central becomes Sierra Wireless’ preferred cloud
supplier
19Increasing Product Investment
Accelerating Module
Refresh
Ultra low power RC Series EM74xx
LPWA modules LTE Cat 1/4 LTE Cat 7
Ready-to-Connect
Commercially Available Ready-to-Connect
Global IoT MVNO
First to 5G
20Driving Recurring Services Revenue
IoT SOLUTIONS - EXAMPLE OF LIFETIME VALUE CUSTOMER USE CASES
$8m
Girbau
Global Industrial
Integrated Washing Machines
Solution:
Recurring
Svcs @ 100k devices at
40%+ GM $20 per unit and Mann + Hummel
Connectivity & Preventative Maintenance
Cloud Services for Fleet Transport
$2m agreement
One-time One-time over 3-4 yrs at
HW @ $1.25/month
HW @ Chargepoint
30% GM 30% GM
EV Charging stations for
Embedded Integrated Public, Private & Fleet
Module IoT Solution
TIME TO REVENUE
Design Win Shipping Deployment Full Year Revenue
(9-12 months) (12-15 months) (15-18 months)
21Connected sensors &
IoT devices for global
asset tracking
“The advantages of the
HL7802, combined with Sierra
Wireless’s deep IoT expertise,
worldwide presence, and
willingness to work with us to
grow our business made the
decision to select Sierra
Wireless as our LPWA IoT
connectivity solution partner a
simple one.”
22Organic Waste and
Methanization
“Octave creates a link
between Cloud and
Hardware. Hence, it gives
our product an infinity of
potential applications for a
minimum of development.”
23Atlas Copco Selects Device-to-
Cloud Solution to Transform
Industrial Compressor Business.
FX30 Programmable Gateway, Legato®,
AirVantage® IoT Platform enable deployment
of Industrial IoT applications
– securely and reliably push data from
connected assets to enterprise systems
– increase machine intelligence, productivity
and efficiency by deploying applications at
the edge of the network
24Smart Grid Analytics
Solution
“The support and pricing
provided by Sierra Wireless
both contributed to our
selection, but the main
requirement to have one
module that works across
global cellular network
technologies was the most
critical factor in our decision.”
25IoT Monitoring –
Obstruction Lighting
“Sierra Wireless’ device-to-cloud
solution allows us to ensure flight
path hazards are always properly
marked and our customers are
compliant with FAA protocols. As
a result, we're able to greatly
reduce liability and risk to our
customers.”
Terry Zarnowski
Chief Technology Officer, Unimar
26Smart Technology for
Power Wheelchairs
Enabling collision
avoidance, drop off
protection, tip alerts and
secure cloud connectivity.
27Sierra Wireless - Global Operations
Sierra Wireless operates worldwide serving global OEMs and Enterprises
28Serviceable Addressable Market – SAM (2020-2023)
$12.2B
$10.3B $2.3 Gateways
00
$8.7B $1.8
$7.4B $1.5 $4.0 Modules
$1.2 $3.3
$2.7
$2.3
$5.9 Connectivity
$5.2
$4.5
$3.9
2020 2021 2022 2023
Source: Berg Insight, ABI Research, IDC, Sierra Wireless
29Connectivity, Software & Services Revenue (quarterly)
($ millions) $35.2
$33.7
$32.6
$29.8
$26.9
Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21
30Q2 2021: Summary of key financial metrics
(USD millions, except EPS and margin %) Q2 2021 Financial Results
GAAP Non-GAAP
Actual Actual(1)
Q2’21 Revenue
$132.8m
Total Revenue $132.8 $132.8
Gross margin (%) 34.8% 34.9%
Operating expenses $55.6 $46.4
Q2’21 Adj. EBITDA Adjusted EBITDA(2) n/a $4.3
$4.3m Operating Loss $(9.3) $(0.04)
Loss per share from continuing ops $(0.27) $(0.03)
(1) Non-GAAP financial measures adjust for the impact of stock-based compensation expense and related social taxes, phantom RSU expense which represents expenses related to compensation units settled in cash based on the stock price at vesting,
restructuring costs, acquisition-related and integration costs, government grants related to COVID-19 relief, CEO retirement/search, certain other non-recurring costs or recoveries, acquisition-related amortization, the impact of foreign exchange gains or
losses on translation of certain balance sheet accounts, foreign exchange gains or losses on forward contracts, and certain tax adjustments.
(2) Adjusted EBITDA as defined equates to net earnings from continuing operations adjusted for stock-based compensation expense and related social taxes, phantom RSU expense which represents expenses related to compensation units settled in cash
based on the stock price at vesting, restructuring costs, acquisition-related and integration costs, government grants related to COVID-19 relief, CEO retirement/search, certain other non-recurring costs or recoveries, acquisition-related amortization, the
impact of foreign exchange gains or losses on translation of certain balance sheet accounts, foreign exchange gains or losses on forward contracts, and certain tax adjustments.
.
31 Proprietary and ConfidentialQ2 2021 and 2020 – Non-GAAP results
Quarterly Revenue Gross Profit & Margin Adjusted EBITDA (1) (2)
(USD millions) (USD millions; percentage) (USD millions)
Ent Sol’ns
IoT Sol’ns Ent Sol’ns
IoT Sol’ns
(1) Adjusted EBITDA as defined equates to net earnings (loss) from continuing operations adjusted for stock-based compensation expense and related social taxes, phantom RSU expense which represents expenses related to
compensation units settled in cash based on the stock price at vesting, restructuring costs, acquisition-related and integration costs, government grants related to COVID-19 relief, CEO retirement/search, certain other non-
recurring costs or recoveries, amortization, the impact of foreign exchange gains or losses on translation of certain balance sheet accounts, foreign exchange gains or losses on forward contracts, and certain tax adjustments.
(2) Non-GAAP financial measures adjusts for the impact of stock-based compensation expense and related social taxes, phantom RSU expense which represents expenses related to compensation units settled in cash based on
the stock price at vesting, restructuring costs, acquisition-related and integration costs, government grants related to COVID-19 relief, CEO retirement/search, certain other non-recurring costs or recoveries, acquisition-
32 related amortization, the impact of foreign exchange gains or losses on translation of certain balance sheet accounts, foreign exchange gains or losses on forward contracts, and certain tax adjustments.Thank you 13811 Wireless Way :: Richmond, British Columbia, Canada, V6V 3A4 sierrawireless.com
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