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ANNUAL GENERAL MEETINGJohn Chen, Executive Chairman & CEOJune 20th, 2018
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
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
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
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%)
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
OUR STRATEGY IS WORKINGExpanded reach in all operating segments in FY18
Endpoint Management (referenceable wins in FY18)
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)
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
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
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
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
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
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
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