blackberry ir summary · blackberry 1 1 forward-looking statements in this presentation are made...
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BlackBerry 11
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", “could”, "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 22
OUR VISIONA connected world
OUR MISSIONTo be the world’s leading provider of end-to-end mobility solutions that are the
most secure and trusted
OUR VALUE PROPOSITIONWe enable you to confidently mobilize your infrastructure to be most competitive in
the new paradigm
BlackBerry 33
SECURING THE “CONNECTED WORLD”Securely connecting organizations, people and devices
to enable mission critical business processes.
BlackBerry 44
STRATEGYDelivering the only end-to-end and secure mobility platform
BlackBerry 55
SOFTWARE & SERVICES STRATEGY Increasing the total addressable market for software
2012 Projected 20192015
MDMEMM$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$4B
Solution Offerings Expanded
Tota
l Add
ress
able
Mar
ket
BlackBerry 66
MOBILITY SOLUTIONS STRATEGYFocus on profitable growth and expanding our addressable market
BlackBerry 10 Devices
• Gov’t / Regulated Industries
BlackBerry Android
• Secure Android for Enterprise
Device Software Licensing
BlackBerry Productivity and Security
Gro
wth
+
Prof
itabi
lity
BlackBerry 77
Our Management Team
Billy HoEVP, Enterprise Products and VAS
Steve E. ZippersteinChief Legal Officer
Guy MiasnikChief Strategy Officer
Nita White-IvyEVP, Human Resources
Steve CapelliChief Financial Officer
Alex ThurberSVP and GM, Mobility Solutions
Marty BeardChief Operating Officer
Sandeep ChennakeshuPresident, Technology Solutions
John ChenChief Executive Officer and Executive Chair
Iain KennedyChief Information Officer
Carl WiesePresident, Global Sales
BlackBerry 88
MOBILITY SOLUTIONS STRATEGYFocus on profitable growth and expanding our addressable market
BlackBerry 10 Devices
• Gov’t / Regulated Industries
BlackBerry Android
• Secure Android for Enterprise
Device Software Licensing
BlackBerry Productivity and Security
Gro
wth
+
Prof
itabi
lity
Financials
BlackBerry 1010
GAAP Income Statement ($M)Q1-16 Q2-16 Q3-16 Q4-16 FY 2016 Q1-17 Q2-17 Q3-17 Q4-17 FY 2017
Software & Services 137$ 73$ 155$ 131$ 496$ 142$ 138$ 160$ 182$ 622$ Mobility Solutions 269 206 220 190 885 152 105 62 55 374 Service Access Fee 252 211 173 143 779 106 91 67 49 313
Total GAAP Revenue 658 490 548 464 2,160 400 334 289 286 1,309
Cost of Sales 327 301 303 251 1,183 200 139 94 110 542 Inventory Write Down 21 4 9 3 36 46 97 2 4 150
Total Cost of Sales 348 305 312 254 1,219 246 236 96 114 692 Gross Profit 310 185 236 210 941 154 98 193 172 617
Research & Development 139 122 100 108 469 89 85 75 57 306 Selling, Marketing and Admin 161 157 170 166 653 129 138 141 144 553 Amortization 65 67 68 77 277 54 44 43 45 186 Impairment of goodwill - - - - - 57 - - - 57 Impairment of Long-lived Assets - - - - - 501 - - - 501 Loss on Sale, Disposal and Abandonment of Long-live Assets 13 34 7 140 195 3 124 46 (1) 171 Debentures Fair Value Adjustment (157) (228) (5) (40) (430) (24) 62 2 (16) 24 Total Operating Expenses 221 152 340 451 1,164 809 453 307 229 1,798
GAAP Operating Income (Loss) 89 33 (104) (241) (223) (655) (355) (114) (57) (1,181)
Investment Income (Loss), Net (16) (12) (16) (15) (59) (15) (16) (4) 8 (27) Income (Loss) before Income Taxes 73 21 (120) (256) (282) (670) (371) (118) (49) (1,208)
Income Taxes (Recovery) 5 (30) (31) (18) (74) - 1 (1) (2) (2) GAAP Net Income (Loss) 68$ 51$ (89)$ (238)$ (208)$ (670)$ (372)$ (117)$ (47)$ (1,206)$
Earning (Loss) per Share Basic 0.13$ 0.10$ (0.17)$ (0.45)$ (0.40)$ (1.28)$ (0.71)$ (0.22)$ (0.09)$ (2.30)$ Earning (Loss) per Share Diluted (0.10)$ (0.24)$ (0.17)$ (0.45)$ (0.86)$ (1.28)$ (0.71)$ (0.22)$ (0.10)$ (2.30)$
Weighted-average number of common shares outstanding (000's)
Basic 529,235 526,314 525,103 524,627 526,303 521,905 522,826 526,102 530,352 525,265Diluted 670,539 667,321 525,103 524,627 651,303 521,905 522,826 526,102 590,852 525,265
BlackBerry 1111
Non-GAAP Reconciliation ($M)Non-GAAP Adjustments (Pre-Tax and After-Tax) Q1-16 Q2-16 Q3-16 Q4-16 FY 2016 Q1-17 Q2-17 Q3-17 Q4-17 FY 2017
LLA Impairment Charges - - - - - 501 - - - 501 Goodwill Impairment Charges - - - - - 57 - - - 57 Inventory Write-down - - - - - 41 96 - 4 141 Debentures Fair Value Adjustment (157) (228) (5) (40) (430) (24) 62 2 (16) 24 Write-down of Assets Held for Sale - - - - - - 123 42 - 165 RAP Changes (Including Patent Abandonments) 52 79 33 180 344 25 24 24 25 99 CORE Program Changes (Recoveries) 9 6 (6) 2 11 (2) (2) (2) - (7) Software Deferred Revenue Acquired - 1 9 23 33 24 18 12 11 65 Stock Compensation Expense 14 14 14 17 60 12 18 15 15 60 Acquired Intangible Amortization 9 11 18 28 66 28 28 28 28 112 Business Acquisition Costs 1 - 11 10 22 7 4 5 3 19 Total Non-GAAP Adjustment (Pre-Tax and After-Tax) (72)$ (117)$ 74$ 220$ 106$ 669$ 371$ 126$ 70$ 1,236$
GAAP to non-GAAP Gross Profit Q1-16 Q2-16 Q3-16 Q4-16 FY 2016 Q1-17 Q2-17 Q3-17 Q4-17 FY 2017
GAAP Revenue 658$ 490$ 548$ 464$ 2,160$ 400$ 334$ 289$ 286$ 1,309$ Software Deferred Revenue Acquired - 1 9 23 33 24 18 12 11 65
Non-GAAP Revenue 658 491 557 487 2,193 424 352 301 297 1,374
GAAP Cost of Sales 348 305 312 254 1,219 246 236 96 114 692 Non-GAAP Adjustments to Cost of Sales (21) (15) (5) (4) (45) (48) (103) (5) (11) (167)
Non-GAAP Cost of Sales 327 290 307 250 1,174 198 133 91 103 525
Non-GAAP Gross Profit 331 201 250 237 1,019 226 219 210 194 849
BlackBerry 1212
Non-GAAP Reconciliation Cont.Adjusted EBITDA Q1-16 Q2-16 Q3-16 Q4-16 FY 2016 Q1-17 Q2-17 Q3-17 Q4-17 FY 2017
GAAP Operating Income (Loss) 89$ 33$ (104)$ (241)$ (223)$ (655)$ (355)$ (114)$ (57)$ (1,181)$ Non-GAAP Adjustments to Operating Income (72) (117) 74 220 106 669 371 126 70 1,236
Non-GAAP Operating Income 17 (84) (30) (21) (117) 14 16 12 13 55
Amortization 164 163 162 127 616 72 57 53 57 239 Acquired Amotization Intangibles (9) (11) (18) (28) (66) (28) (28) (28) (28) (112)
Adjusted EBITDA 172 68 114 78 433 58 45 37 42 182
Non-GAAP Net Income Reconciliation Q1-16 Q2-16 Q3-16 Q4-16 FY 2016 Q1-17 Q2-17 Q3-17 Q4-17 FY 2017
GAAP Net Income (Loss) 68$ 51$ (89)$ (238)$ (208)$ (670)$ (372)$ (117)$ (47)$ (1,206)$ Total Non-GAAP Adjustment (After-Tax) (72) (117) 74 220 106 669 371 126 70 1,236
Non-GAAP Net Income (Loss) (4) (66) (15) (18) (102) (1) (1) 9 23 30
Non-GAAP Basic Earning (Loss) per Share (0.01)$ (0.13)$ (0.03)$ (0.03)$ (0.19)$ (0.00)$ (0.00)$ 0.02$ 0.04$ 0.06$ Shares outstanding for Non-GAAP income (loss) per share reconciliation ('000) 529,235 526,314 525,103 524,627 526,303 521,905 522,826 526,102 530,352 525,265
Non-GAAP Revenue, non-GAAP Loss Before Income Taxes, non-GAAP Net Loss, non-GAAP Gross Profit, Adjusted EBITDA, and non-GAAP Loss Per Share do not have a standardized meaning prescribedby 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 andits 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-GAAPinformation 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 filingson SEDAR and EDGAR. The company makes no commitment to update the information above subsequently.
BlackBerry 1313
Amortization and Reconciliation Details $MCORE Charges Details Q1-16 Q2-16 Q3-16 Q4-16 FY 2016 Q1-17 Q2-17 Q3-17 Q4-17 FY 2017
Cost of Sales -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Research and Development 2 - - - 2 - - - - - Selling, General and Administration 7 6 (6) 2 9 (2) (2) (2) - (7) Total CORE Charges 9$ 6$ (6)$ 2$ 11$ (2)$ (2)$ (2)$ -$ (7)$
RAP Charges Details Q1-16 Q2-16 Q3-16 Q4-16 FY 2016 Q1-17 Q2-17 Q3-17 Q4-16 FY 2016
Cost of Sales 21$ 14$ 5$ 4$ 44$ 7$ 7$ 5$ 6$ 25$ Research and Development 13 14 2 18 47 2 - (1) 3 4 Selling, General and Administration 18 51 26 158 253 16 140 62 16 235 Total RAP Charges 52$ 79$ 33$ 180$ 344$ 25$ 147$ 66$ 25$ 264$
Amortization of Intangibles and PP&E Details Q1-16 Q2-16 Q3-16 Q4-16 FY 2016 Q1-17 Q2-17 Q3-17 Q4-16 FY 2016
In Cost of SalesProperty, Plan and Equipment 16$ 10$ 13$ 12$ 51$ 12$ 12$ 10$ 9$ 43$ Intangibles Assets 83 86 81 38 288 6 1 - 3 10
Total in Cost of Sales 99 96 94 50 339 18 13 10 12 53
In Operating ExpensesProperty, Plan and Equipment 20$ 22$ 16$ 15$ 73$ 12$ 8$ 6$ 7$ 33$ Intangibles Assets 45 45 52 62 204 42 36 37 38 153
Total in Operating Expenses 65 67 68 77 277 54 44 43 45 186
Total AmortizationProperty, Plan and Equipment 36$ 32$ 29$ 27$ 124$ 24$ 20$ 16$ 16$ 76$ Intangibles Assets 128 131 133 100 492 48 37 37 41 163
Total Amortization 164 163 162 127 616 72 57 53 57 239
Non-GAAP Revenue, non-GAAP Loss Before Income Taxes, non-GAAP Net Loss, non-GAAP Gross Profit, Adjusted EBITDA, and non-GAAP Loss Per Share do not have a standardized meaningprescribed 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 theCompany 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 theCompany's filings on SEDAR and EDGAR. The company makes no commitment to update the information above subsequently.