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BlackBerry 1
1
Forward-looking statements in this presentation are made pursuant to the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used herein,
words such as "expect", "anticipate", "estimate", "may", "will", "should", "intend", "believe", and similar
expressions, are intended to identify forward-looking statements. Forward-looking statements are based on
estimates and assumptions made by BlackBerry Limited in light of its experience and its perception of historical
trends, current conditions and expected future developments, as well as other factors that BlackBerry believes
are appropriate in the circumstances. Many factors could cause BlackBerry's actual results, performance or
achievements to differ materially from those expressed or implied by the forward-looking statements, including
those described in the "Risk Factors" section of BlackBerry's Annual Information Form, which is included in its
Annual Report on Form 40-F (copies of which filings may be obtained at www.sedar.com or www.sec.gov).
These factors should be considered carefully, and readers should not place undue reliance on BlackBerry's
forward-looking statements. BlackBerry has no intention and undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information, future events or otherwise, except as
required by law.
BlackBerry and related trademarks, names and logos are the property of BlackBerry Limited and are registered
and/or used in the U.S. and countries around the world. All other marks are the property of their respective
owners. BlackBerry is not responsible for any third-party products or services
Safe Harbor
BlackBerry 2
2
OUR VISION A connected world
OUR MISSION To be the world’s leading provider of end-to-end mobility solutions that are the
most secure and trusted
OUR VALUE PROPOSITION We enable you to confidently mobilize your infrastructure to be most competitive in
the new paradigm
BlackBerry 3
3
STRATEGY Delivering the only end-to-end and secure mobility platform
BlackBerry 4
4
BUSINESS ACCOMPLISHMENTS The past 12 months
Delivering Innovation & Security
• Autonomous Vehicles: QNX Platform for ADAS
• IoT Platform: BlackBerry Radar
• Voice Encryption: SecuSUITE for Enterprise Soft
war
e &
Lic
en
sin
g Delivering Innovation & Security
• BlackBerry 10: Enhanced security release; NIAP certification submitted; Passport Silver
• First BlackBerry-secured Android: PRIV
• Secure Tablet for Gov’t: SecuTABLET
Mo
bili
ty S
olu
tio
ns
Trust and Credibility
• Forrester Wave Leader: EMM
• Forrester Wave Leader: EFSS
• Gartner MQ Visionary: EFSS
• First and only: To achieve highest level of certification on ISO std, EAL4+, on iOS and Android
Mar
ket
Lead
ersh
ip
Expanding Addressable Market
• Cross-platform Software: Good Technology products fully integrated into suite offerings
• Secure Messaging: AtHoc and Enterprise BBM
• New Cybersecurity Consulting services
• Cloud Opportunity: BlackBerry Enterprise Solutions on Microsoft Azure Marketplace
Stra
tegi
c In
itia
tive
s
BlackBerry 5
5
PROGRESS We are progressing toward the growth phase of our turnaround
Laying the foundation for the turnaround Formulated a strategy
around the company’s core strength
Healthy financial position Free cash flow positive Non-GAAP profitability Ability to execute on acquisitions
Sustainable Profitability • Channel expansion • IoT & messaging traction • Overall revenue growth
Stabilize revenue Grow software revenue to offset
SAF decline • Make the Device (Mobility
Solutions) business profitable
BlackBerry 6
6
SOFTWARE & SERVICES STRATEGY Increasing the total addressable market for software
2012
Projected 2019 2015
MDM
EMM $1.7B
EMM $2.6B
Secure Communications
$5B
Technology Solutions $6B
TAM $525 M
TAM $4.9 B
TAM $17.6B
Technology Solutions $1.6B
Enterprise Solutions $1.6B
Enterprise Solutions $4B
Solution Offerings Expanded
Tota
l Ad
dre
ssab
le M
arke
t
BlackBerry 7
7
MOBILITY SOLUTIONS STRATEGY Focus on profitable growth and expanding our addressable market
BlackBerry 10 Devices
• Gov’t / Regulated Industries
BlackBerry Android
• Secure Android for Enterprise
Device Software Licensing
BlackBerry Smartphones
BlackBerry Productivity and Security
Gro
wth
+ P
rofita
bili
ty
BlackBerry 8
8
GO-TO-MARKET TRACTION Key success factors
366 channel partners ending FY15
1,500+ total channel partners ending FY16
New Enterprise Licenses: Increasing Mix of Cross-Platform
Cross-platform / agnostic
BlackBerry only
Re-allocating and Increasing resources in Growth Areas
• Quota-carrying sales headcount up 29% in Q1’17 vs. Q1’16
• 1,485 new employees, through hiring and acquisitions, in FY16;
80% in sales and engineering
FY15 FY16
BlackBerry 9
9
Our Management Team
Billy Ho
EVP, Enterprise
Products and VAS
Steve E.
Zipperstein
Chief Legal Officer
Carl Wiese
President, Global
Sales
Nita White-Ivy
EVP, Human
Resources
James Yersh
Chief Financial
Officer
Ralph Pini
Chief Operating
Office, Acting
General Manager
Mobile Solutions
Marty Beard
Chief Operating
Officer
Sandeep Chennakeshu
President, Technology
Solutions
John Chen
Chief Executive
Officer and
Executive Chair
James Mackey
EVP, Corporate
Development and
Strategic Planning
Guy Miasnik
President, AtHoc
BlackBerry 10
10
Financial Highlights • Expect positive free cash flow and positive EBITDA for the full 2017 fiscal year
>56% reduction in non-GAAP OpEx
from Q1-15 to Q1-17
Expect full year EPS to be
approximately ($0.15)
Stable Cash &
Equivalents balance
($200)
($100)
$0
$100
$200
$300
$400
$500
$0
$100
$200
$300
$400
$500
$600
Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17
Non-GAAP OpEx Non-GAAP Gross Margin
Non-GAAP Operating Margin
($0.50)
($0.30)
($0.10)
$0.10
$0.30
$0.50
$0
$200
$400
$600
$800
$1,000
$1,200
Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17
Non-GAAP Revenue Non-GAAP Earning/(Loss)
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17
Cash, Cash Equivalents, and Investments
BlackBerry 11
11
• Record Software & Services
revenue for Q1-17
• Q1-17 Software and Services
Revenue $166m, up 21% year on
year
• Q1-17 Total Revenue $424m
Non-GAAP Revenue Details
$393 $433 $370
$284 $269 $206 $221 $191 $152
$518 $421
$365
$301 $252
$211 $173 $143
$106
$54 $62
$57
$74 $138
$74 $162
$153
$166
$966 $916
$793
$660 $658
$491
$557
$486 $424
-
200
400
600
800
1,000
1,200
Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17
Re
ven
ue
(Mill
ion
s)
Mobility Solutions Service Access Fee Software & Services Total Non-GAAP Revenue
BlackBerry 12
12
Non-GAAP Operating Segments
$106
$26
$80
$2
$78
$0
$20
$40
$60
$80
$100
$120
Revenue Cost ofGoodsSold
GrossMargin
OperatingExpenses
OperatingIncome
Mill
ion
s
Service Access Fee
$166
$32
$134
$98
$37
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
Revenue Cost ofGoodsSold
GrossMargin
OperatingExpenses
OperatingIncome
Mill
ion
s
Software & Services
$152 $140
$12 $33
-$21 -$40
-$20
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
Revenue Cost ofGoodsSold
GrossMargin
OperatingExpenses
OperatingIncome
Mill
ion
s
Mobility Solutions
• Expect software and services growth of around 30 percent • Objective is to achieve operating profitability in Mobility Solutions in Q3 of the current fiscal year • Expect quarterly software and services growth to offset the decline in SAF cumulatively for the full fiscal year
BlackBerry 13
13
-$800
-$600
-$400
-$200
$0
$200
$400
$600
$800
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17
Free
Cas
h F
low
$m
illio
ns
Bal
ance
s $
mill
ion
s
Cash & Cash Equivalents Short-term Investments
Long-term Investments & Restricted Cash Free Cash Flow
$2,532
• Cash balance of $2.53B
• Net cash position of $1.3B
Financial Discipline
$3,071 $3,192
$2,658
$3,087 $3,098 $3,110
$3,266 $3,316 $3,353
$2,706 $2,624 $2,569
Financials
BlackBerry 15
15
GAAP Income Statement $millions Q1-15 Q2-15 Q3-15 Q4-15 FY 2015 Q1-16 Q2-16 Q3-16 Q4-16 FY 2016 Q1-17
Software & Services 56$ 62$ 58$ 75$ 251$ 137$ 73$ 155$ 131$ 496$ 142$
Mobility Solutions 392 433 370 284 1,479 269 206 220 190 885 152
Service Access Fee 518 421 365 301 1,605 252 211 173 143 779 106
Total GAAP Revenue 966 916 793 660 3,335 658 490 548 464 2,160 400
Cost of Sales 502 491 365 311 1,669 329 301 304 251 1,186 200
Inventory Write Down 23 7 24 41 95 21 4 9 3 36 46
Supply Commitment (Recovery) (10) (7) (6) (10) (33) (2) 0 (1) 0 (3) 0
Total Cost of Sales 515 491 383 342 1,731 348 305 312 254 1,219 246
Gross Profit 451 425 410 318 1,604 310 185 236 210 941 154
Research & Development 237 186 154 134 711 139 122 100 108 469 89
Selling, Marketing and Admin 400 195 171 138 904 173 186 175 179 712 129
Amortization 81 75 74 68 298 65 67 68 77 277 54
Impairment of goodwill 0 0 0 0 0 0 0 0 0 0 57
Impairment of long-lived assets 0 0 0 0 0 0 0 0 0 0 501
Abandonment of long-lived assets 0 0 0 34 34 1 5 2 127 136 3
Debentures Fair Value Adjustment (287) 167 150 50 80 (157) (228) (5) (40) (430) (24)
Total Operating Expenses 431 623 549 424 2,027 221 152 340 451 1,164 809
GAAP Operating Income (Loss) 20 (198) (139) (106) (423) 89 33 (104) (241) (223) (655)
Investment Income (Loss), Net (26) (20) (21) 105 38 (16) (12) (16) (15) (59) (15)
Income (Loss) before Income Taxes (6) (218) (160) (1) (385) 73 21 (120) (256) (282) (670)
Income Taxes (Recovery) (29) (11) (12) (29) (81) 5 (30) (31) (18) (74) 0
GAAP Net Income (Loss) 23$ (207)$ (148)$ 28$ (304)$ 68$ 51$ (89)$ (238)$ (208)$ (670)$
Earning (Loss) per Share Basic 0.04$ (0.39)$ (0.28)$ 0.05$ (0.58)$ 0.13$ 0.10$ (0.17)$ (0.45)$ (0.40)$ (1.28)$
Earning (Loss) per Share Diluted (0.37)$ (0.39)$ (0.28)$ 0.05$ (0.58)$ (0.10)$ (0.24)$ (0.17)$ (0.45)$ (0.86)$ (1.28)$
Weighted-average number of common shares outstanding (000's)
Basic 526,742 527,218 528,090 528,685 527,684 529,235 526,314 525,103 524,627 526,303 521,905
Diluted 658,228 527,218 528,090 543,556 527,684 670,539 667,321 525,103 524,627 651,303 521,905
BlackBerry 16
16
Non-GAAP Reconciliation Non-GAAP Adjustments (Pre-Tax) Q1-15 Q2-15 Q3-15 Q4-15 FY 2015 Q1-16 Q2-16 Q3-16 Q4-16 FY 2016 Q1-17
Rockstar Sale Adjustment -$ -$ -$ (115)$ (115)$ -$ -$ -$ -$ -$ -$
Goodwill Impairment Charges - - - - - - - - - - 57
LLA Impairment Charges - - - - - - - - - - 501
Inventory Write-down - - - - - - - - - - 41
Debentures Fair Value Adjustment (287) 167 150 50 80 (157) (228) (5) (40) (430) (24)
CORE Program Changes 226 33 5 58 322 9 6 (6) 2 11 (2)
RAP Changes - - - - - 52 79 33 180 344 25
Software Deferred Revenue Acquired - - - - - - 1 9 23 33 24
Stock Compensation Expense 13 8 14 14 49 14 14 14 17 60 12
Acquired Intangible Amortization 9 10 10 9 38 9 11 18 28 66 28
Business Acquisition Costs - - 2 1 3 1 - 11 10 22 7
Total Non-GAAP Adjustment (Pre-Tax) (39)$ 218$ 181$ 17$ 377$ (72)$ (117)$ 74$ 220$ 106$ 669$
Non-GAAP Adjustments (After-Tax) Q1-15 Q2-15 Q3-15 Q4-15 FY 2015 Q1-16 Q2-16 Q3-16 Q4-16 FY 2016 Q1-17
Rockstar Sale Adjustment -$ -$ -$ (115)$ (115)$ -$ -$ -$ -$ -$ -$
Goodwill Impairment Charges - - - - - - - - - - 57
LLA Impairment Charges - - - - - - - - - - 501
Inventory Write-down - - - - - - - - - - 41
Debentures Fair Value Adjustment (287) 167 150 50 80 (157) (228) (5) (40) (430) (24)
CORE Program Changes 204 29 4 57 294 9 6 (6) 2 11 (2)
RAP Changes - - - - - 52 79 33 180 344 25
Software Deferred Revenue Acquired - - - - - - 1 9 23 33 24
Stock Compensation Expense 13 8 14 14 49 14 14 14 17 60 12
Acquired Intangible Amortization 9 10 10 9 38 9 11 18 28 66 28
Business Acquisition Costs - - 2 1 3 1 - 11 10 22 7
Total Non-GAAP Adjustment (After-Tax) (61)$ 214$ 180$ 16$ 349$ (72)$ (117)$ 74$ 220$ 106$ 669$
GAAP to non-GAAP Gross Profit Q1-15 Q2-15 Q3-15 Q4-15 FY 2015 Q1-16 Q2-16 Q3-16 Q4-16 FY 2016 Q1-17
GAAP Revenue 966$ 916$ 793$ 660$ 3,335$ 658$ 490$ 548$ 464$ 2,160$ 400$
Software Deferred Revenue Acquired - - - - - - 1 9 23 33 24
Non-GAAP Revenue 966 916 793 660 3,335 658 491 557 487 2,193 424
GAAP Cost of Sales 515 491 383 342 1,731 348 305 312 254 1,219 246
Non-GAAP Adjustments to Cost of Sales (13) (10) - (2) (25) (21) (15) (5) (4) (45) (48)
Non-GAAP Cost of Sales 502 481 383 340 1,706 327 290 307 250 1,174 198
Non-GAAP Gross Profit 464 435 410 320 1,629 331 201 250 237 1,019 226
BlackBerry 17
17
Non-GAAP Reconciliation Cont.’
Adjusted EBITDA Q1-15 Q2-15 Q3-15 Q4-15 FY 2015 Q1-16 Q2-16 Q3-16 Q4-16 FY 2016 Q1-17
GAAP Operating Income (Loss) 20$ (198)$ (139)$ (106)$ (423)$ 89$ 33$ (104)$ (241)$ (223)$ (655)$
Non-GAAP Adjustments to Operating Income (39) 218 181 132 492 (72) (117) 74 220 106 669
Non-GAAP Operating Income (19) 20 42 26 69 17 (84) (30) (21) (117) 14
Amortization 191 171 170 162 694 164 163 162 127 616 72
Acquired Amotization Intangibles (9) (10) (10) (9) (38) (9) (11) (18) (28) (66) (28)
Adjusted EBITDA 163 181 202 179 725 172 68 114 78 433 58
Non-GAAP Net Income Reconciliation Q1-15 Q2-15 Q3-15 Q4-15 FY 2015 Q1-16 Q2-16 Q3-16 Q4-16 FY 2016 Q1-17
GAAP Net Income (Loss) 23$ (207)$ (148)$ 28$ (304)$ 68$ 51$ (89)$ (238)$ (208)$ (670)$
Total Non-GAAP Adjustment (After-Tax) (61) 214 180 16 349 (72) (117) 74 220 106 669
Non-GAAP Net Income (Loss) (38) 7 32 44 45 (4) (66) (15) (18) (102) (1)
Non-GAAP Basic Earning (Loss) per Share (0.07)$ 0.01$ 0.06$ 0.08$ 0.08$ (0.01)$ (0.13)$ (0.03)$ (0.03)$ (0.19)$ 0.00$
Shares outstanding for Non-GAAP income (loss) per
share reconciliation ('000) 526,742 537,959 540,400 543,556 542,123 529,235 526,314 525,103 524,627 526,303 521,905
Non-GAAP Revenue, non-GAAP Loss Before Income Taxes, non-GAAP Net Loss, non-GAAP Gross Profit, Adjusted EBITDA, and non-GAAP Lost Per Share do not have
a standardized meaning prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes that the
presentation of these non-GAAP measures enables the Company and its shareholders to better assess the Company's operating results relative to its operating
results in prior periods and improves the comparability of the information presented. This non-GAAP information should not be considered as a substitute for, or
superior to, measures of financial performance prepared in accordance with GAAP. You are encouraged to review the Company's filings on SEDAR and EDGAR.
The company makes no commitment to update the information above subsequently.
BlackBerry 18
18
Amortization and Reconciliation Details CORE Charges Details (Pre-Tax) Q1-15 Q2-15 Q3-15 Q4-15 FY 2015 Q1-16 Q2-16 Q3-16 Q4-16 FY 2016 Q1-17
Cost of Sales 12$ 10$ -$ 1$ 23$ -$ -$ -$ -$ -$ -$
Research and Development 41 19 4 6 70 2 - - - 2 -
Selling, General and Administration 173 4 1 51 229 7 6 (6) 2 9 (2)
Total CORE Charges (Pre-Tax) 226$ 33$ 5$ 58$ 322$ 9$ 6$ (6)$ 2$ 11$ (2)$
RAP Charges Details (Pre-Tax) Q1-15 Q2-15 Q3-15 Q4-15 FY 2015 Q1-16 Q2-16 Q3-16 Q4-16 FY 2016 Q1-17
Cost of Sales -$ -$ -$ -$ -$ 21$ 14$ 5$ 4$ 44$ 7$
Research and Development - - - - - 13 14 2 18 47 2
Selling, General and Administration - - - - - 18 51 26 158 253 16
Total RAP Charges (Pre-Tax) -$ -$ -$ -$ -$ 52$ 79$ 33$ 180$ 344$ 25$
Amortization of Intangibles and PP&E Details Q1-15 Q2-15 Q3-15 Q4-15 FY 2015 Q1-16 Q2-16 Q3-16 Q4-16 FY 2016 Q1-17
In Cost of Sales
Property, Plan and Equipment 27$ 16$ 14$ 16$ 73$ 16$ 10$ 13$ 12$ 51$ 12$
Intangibles Assets 83 80 82 78 323 83 86 81 38 288 6
Total in Cost of Sales 110 96 96 94 396 99 96 94 50 339 18
In Operating Expenses
Property, Plan and Equipment 33$ 28$ 27$ 23$ 111$ 20$ 22$ 16$ 15$ 73$ 12$
Intangibles Assets 48 47 47 45 187 45 45 52 62 204 42
Total in Operating Expenses 81 75 74 68 298 65 67 68 77 277 54
Total Amortization
Property, Plan and Equipment 60$ 44$ 41$ 39$ 184$ 36$ 32$ 29$ 27$ 124$ 24$
Intangibles Assets 131 127 129 123 510 128 131 133 100 492 48
Total Amortization 191 171 170 162 694 164 163 162 127 616 72
Non-GAAP Revenue, non-GAAP Loss Before Income Taxes, non-GAAP Net Loss, non-GAAP Gross Profit, Adjusted EBITDA, and non-GAAP Lost Per Share do not have
a standardized meaning prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes that the
presentation of these non-GAAP measures enables the Company and its shareholders to better assess the Company's operating results relative to its operating
results in prior periods and improves the comparability of the information presented. This non-GAAP information should not be considered as a substitute for, or
superior to, measures of financial performance prepared in accordance with GAAP. You are encouraged to review the Company's filings on SEDAR and EDGAR.
The company makes no commitment to update the information above subsequently.
BlackBerry 19
19
BlackBerry’s stock continues
to outperform publicly traded
EMM competition since Jan
2015
BlackBerry Stock