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ANNUAL GENERAL MEETING John Chen, Executive Chairman & CEO June 20 th , 2018

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Page 1: ANNUAL GENERAL MEETING - BlackBerry › content › dam › blackberry... · mobility management report Named BlackBerry the highest scoring vendor in workforce productivity & centralized

ANNUAL GENERAL MEETINGJohn Chen, Executive Chairman & CEOJune 20th, 2018

Page 2: ANNUAL GENERAL MEETING - BlackBerry › content › dam › blackberry... · mobility management report Named BlackBerry the highest scoring vendor in workforce productivity & centralized

OUR VISION A connected world, in which you are safe and your data is yours

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 BlackBerry provides the secure and trusted foundation for the Enterprise

of Things

Page 3: ANNUAL GENERAL MEETING - BlackBerry › content › dam › blackberry... · mobility management report Named BlackBerry the highest scoring vendor in workforce productivity & centralized

OUR STRATEGY Four synergistic growth engines, delivering the most secure and comprehensive Enterprise of Things (EoT)

Endpoint management

Embedded software

Appliances

Technology & IP licensing

1

2

3

4

Page 4: ANNUAL GENERAL MEETING - BlackBerry › content › dam › blackberry... · mobility management report Named BlackBerry the highest scoring vendor in workforce productivity & centralized

OUR STRATEGY IS WORKINGWe delivered on our FY18 promises

Deliver total non-GAAP revenue between $900M to $950M

Deliver non-GAAP operating profit every quarter

Grow software billings at or faster than the market rate

Deliver non-GAAP software revenue growth between 10% to 15%

Deliver positive non-GAAP EPS

Deliver positive free cash flow*

$967M

ü

15.1%

14%

$0.14

$47M

Increase market reach & ecosystem engagement (ISV partners growth) 25%

*Before considering the costs related to restructuring and transition from the hardware business as well as the net impact of arbitration awards and damages

Page 5: ANNUAL GENERAL MEETING - BlackBerry › content › dam › blackberry... · mobility management report Named BlackBerry the highest scoring vendor in workforce productivity & centralized

OUR STRATEGY IS WORKINGRecord breaking financial achievements

Record software & services revenue ($782M)

0

1 0 0

2 0 0

3 0 0

4 0 0

5 0 0

6 0 0

7 0 0

8 0 0

F Y 1 6 F Y 1 7 F Y 1 8

Softw are and Services ($M )

E n te r p r is e

B T S

L ic e n s in g , IP

& O th e r

$530

$687

$782

3-year CAGR 15%

46%

62%

75%

0 %

1 0 %

2 0 %

3 0 %

4 0 %

5 0 %

6 0 %

7 0 %

8 0 %

F Y 1 6 F Y 1 7 F Y 1 8

G ro s s M a rg in (N o n -G A A P )

2,900 Basis Points Improvement

Record non-GAAP gross margin (75%)

Page 6: ANNUAL GENERAL MEETING - BlackBerry › content › dam › blackberry... · mobility management report Named BlackBerry the highest scoring vendor in workforce productivity & centralized

OUR STRATEGY IS WORKINGGrowth in shareholder value

$6. 00

$7. 00

$8. 00

$9. 00

$10. 00

$11. 00

$12. 00

$13. 00

$14. 00

Feb- 17 M ar- 17 Apr - 17 M ay-17 Jun- 17 Jul- 17 Aug- 17 Sep- 17 Oct - 17 Nov- 17 Dec- 17 Jan- 18 Feb- 18

F e d R A M P la u n c h

E a r n in g s

Q u a lc o m m a w a r d

A G M & E a r n in g s

S e c S U IT E N IA P c e r t i f ie d

T im e x l ic e n s in g d e a l

D e lp h i w in

E a r n in g s & N T D l ic e n s in g d e a l

B L U l ic e n s in g d e a l

G D P R s e r v ic e s la u n c h e d

T a t a w in

T e le t r y l ic e n s in g d e a l

Q u a lc o m m p a r t n e r s h ip e x p a n s io n

D e n s o w inB a id u w in

E a r n in g s

J a r v is la u n c h

BB: 76% GROWTH YOY

Nasdaq Composite: 23% growth YoY NYSE Composite: 9% growth YoY

Page 7: ANNUAL GENERAL MEETING - BlackBerry › content › dam › blackberry... · mobility management report Named BlackBerry the highest scoring vendor in workforce productivity & centralized

OUR STRATEGY IS WORKINGExpanded reach in all operating segments in FY18

Endpoint Management (referenceable wins in FY18)

Page 8: ANNUAL GENERAL MEETING - BlackBerry › content › dam › blackberry... · mobility management report Named BlackBerry the highest scoring vendor in workforce productivity & centralized

OUR STRATEGY IS WORKINGExpanded reach in all operating segments in FY18

Embedded Software & Asset Tracking (referenceable wins in FY18)

Technology & IP Licensing (referenceable wins in FY18)

Page 9: ANNUAL GENERAL MEETING - BlackBerry › content › dam › blackberry... · mobility management report Named BlackBerry the highest scoring vendor in workforce productivity & centralized

OUR STRATEGY IS WORKINGExpanded & engaged the ecosystem

CUSTOMERS

Over 120 Million cars 7/G7 governments

16/G20 governments

100% of F100 largest commercial banks

100% of F100 largest aerospace & defense companies

100% of F100 largest media & entertainment companies

89% of F100 medical companies

77% of F100 insurance companies

Page 10: ANNUAL GENERAL MEETING - BlackBerry › content › dam › blackberry... · mobility management report Named BlackBerry the highest scoring vendor in workforce productivity & centralized

OUR STRATEGY IS WORKINGExpanded & engaged the ecosystem

GO TO MARKET

Channels32% YoY growth in enterprise

channels

18% YoY growth in BTS channels

Expansion of reach into new

industries including construction, robotics & subsea

Developers25% YoY growth in ISV partners

29% YoY growth in BlackBerry enterprise apps marketplace

2.6M BlackBerry Dynamics apps

licenses

Engagement167% growth in BlackBerry

Security Summit attendance

BlackBerry Analyst Day sold-out

First BlackBerry Secure world

tour

Page 11: ANNUAL GENERAL MEETING - BlackBerry › content › dam › blackberry... · mobility management report Named BlackBerry the highest scoring vendor in workforce productivity & centralized

OUR STRATEGY IS WORKINGOur security & mobility leadership is recognized by the industry

Named BlackBerry the highest scoring vendor in all six categories of their critical capabilities for high-security mobility management report

Named BlackBerry the highest scoring vendor in workforce productivity & centralized content protection, in their content collaboration critical capabilities report

Named BlackBerry a leader in their Magic Quadrant for EMM Suites. BlackBerry is the only vendor with positive movement in both vision & ability to execute

Named BlackBerry a leader in their Market Guide for Information-Centric Endpoint & Mobile Protection. BlackBerry is the only vendor they recognized in all eight categories with a single-platform offering

Page 12: ANNUAL GENERAL MEETING - BlackBerry › content › dam › blackberry... · mobility management report Named BlackBerry the highest scoring vendor in workforce productivity & centralized

OUR STRATEGY IS WORKINGOur security & mobility strategy is industry acclaimed

In FY18, Google named BlackBerry an “Enterprise Recommended” vendor.

“BlackBerry has completed a difficult strategy pivot while delivering improving financial performance. BlackBerry is considered a leader.”

“BlackBerry is establishing its position as a broad level supplier for security capabilities for the future of the Enterprise of Things.”

“Enhanced by solid execution BlackBerry is now the posterchild for how to pivot to success.”

“Software & services is BlackBerry’s future. And it looks like a bright one.”

“BlackBerry’s work is key to making Canada a go-to source for self-driving car software.”

J. GoldAssociates

Page 13: ANNUAL GENERAL MEETING - BlackBerry › content › dam › blackberry... · mobility management report Named BlackBerry the highest scoring vendor in workforce productivity & centralized

WE ARE WELL POSITIONED FOR GROWTHThe Enterprise of Things era is upon us

C o n su m e r

E o T$1.29T by 2020

C onnected Things

B y 2021

51.5B56% C A G R

Exabytes data

B y 2020

52,00051% C A G R

… & SECURITY IS THE #1 TECHNICAL BARRIER TO SUCCESS

TH E N U M B ER O F C O N N EC TED ‘TH IN G S’ IS G R O W IN G R A PID LY …

… M O ST O F TH E SPEN D O N ‘TH IN G S’ W ILL B E IN EO T ...

Sources: Juniper Research, McKinsey Global Institute, IDC, Gartner

Page 14: ANNUAL GENERAL MEETING - BlackBerry › content › dam › blackberry... · mobility management report Named BlackBerry the highest scoring vendor in workforce productivity & centralized

BlackBerry Secured Things

Secure End Point Management (UEM)Secure Data Transfer (NOC, BSCP)Organizational Connectivity (AtHoC)

Secure Collaboration (BBMe, Dynamics)Identity Management (EID)Secure Connectivity (BSCP)

BlackBerry Intelligent EoT PaaS

• E oT P rov is ion ing S e rv ice

• B lockcha in S erv ice• A na ly tics S e rv ice

• A ud iting S e rv ice• F irm w are M anagem en t

• R em ote M on ito ring• A pp lica tion M anagem en t

• O T A S e rv ice

UEM UI

• R en ta l C a r A pp

• F ac to ry A u tom a tion A pp• F lee t M anagem en t A pp

• H osp ita l A pp

Partner/ISV AppsVertical Solutions

• C onnec ted C a r

• P red ic tive M a in tenance• C onnec ted F ac to ry

• R ada r

• S ecu rity C reden tia l M anagem en t S ys tem

• T ranspo rta tion M anagem en t S ys tem s• R en ta l M anagem en t

• F ac to ry A u tom a tion• In te lligen t F lee t M anagem en t

• H osp ita l M anagem en t

Safety certified for mission critical appsCluster & Infotainment platformsGateway platformADAS platform

Secure Embedded Software

OTA, V2X, TelematicsManaged PKI authenticationFIPS certified toolkitsStatic binary code scan

Intelligent Security (AI)Certicom (CA)Event Processing

CloudAWS IoT Azure IoT

• S ecu re m anu fac tu ring (A sse t M anagem en t)

• H ea lth C onnec t• S ta tic A pp lica tion S ecu rity T es ting (S A S T )

• C onnec ted G ove rnm en t

INNOVATION TO EXTEND OUR LEADERSHIPThe BlackBerry Secure EoT Platform

Cloud ServicesBackend Services

Internet of Things

Page 15: ANNUAL GENERAL MEETING - BlackBerry › content › dam › blackberry... · mobility management report Named BlackBerry the highest scoring vendor in workforce productivity & centralized

FY19 THEMESIn FY19 we will continue to make progress towards our mission of a securely mobilized and connected world

CONTINUE TO DELIVER DOUBLE DIGITS BILLINGS GROWTH IN SOFTWARE & SERVICES

DELIVER FULL YEAR NON-GAAP PROFITABILITY

DELIVER A SINGLE, COMPREHENSIVE, SECURE, EOT SYSTEM

POSITIVE FREE CASH FLOW FOR THE FISCAL YEAR*

*Before considering the costs related to restructuring and legal proceedings

Page 16: ANNUAL GENERAL MEETING - BlackBerry › content › dam › blackberry... · mobility management report Named BlackBerry the highest scoring vendor in workforce productivity & centralized