Blackberry Limited · TSX:BB
Blackberry — Investor Day (2021)
78 slides from Blackberry's investor day presentation, 2021
Slide 1: Safe Harbor Statement
SAFE HARBOR STATEMENT SAFE HARBOR STATEMENT Some of the statements we'll be making today constitute forward-looking statements and are made pursuant to the safe harbor provisions of applicable U.S. and Canadian securities laws. We'll indicate forward-looking statements by using words such as expect,
Slide 2: Agenda
Questions? AGENDA Event Agenda & Links: globalevents@blackberry.com Investor Relations: investorinfo@blackberry.com Industry Analysts: ligoldberg@blackberry.com 8:00 – 9:20am PT / 11:00am – 12:30pm ET KEYNOTE SESSION 9:20 – 10:30am PT / 12:20 – 1:30pm ET CYBERSECURITY PANEL IoT PANEL DISCUSSIONS DIS
Slide 3: BlackBerry IVY
Analyst Summit 2021 BLACKBERRY IVY Vito Giallorenzo Senior Vice President, Corporate Development and Chief Operating Officer, BlackBerry Technology Solutions
Slide 4: The Future of Mobility Is Here
THE FUTURE OF MOBILITY IS HERE Modern HW & SW High-speed architectures connectivity Monetizable data Vehicle Operations In-Vehicle Safety & Smart Mobility, EV Infrastructure & Business & Lifecycle Experiences Security Fleet & Autonomy Smart City Services Analyst Summit 2021 © 2021 BlackBerry. All Ri
Slide 5: The Customer Challenges
THE CUSTOMER CHALLENGES Automakers: Developers: Drivers & Passengers: Must evolve architectures and No standard development and Limited availability of apps and business model to deliver new data platform solutions monetizable services Fragmentation across vehicle Sub-optimal user experiences Simpli
Slide 6: Accelerating Digital Transformation with IVY
ACCELERATING DIGITAL TRANSFORMATION WITH IVY Data Access & Consistency Consistent and Greater Data Access Global Scale Vehicle data access and ML consistency at scale create valuable business insights More Developers, Innovation & Data Increased Vehicle Intelligence Create and share valuable insight
Slide 7: Why BlackBerry Is Poised to Win
WHY BLACKBERRY IS POISED TO WIN Largest Footprint in Extensive Track Record in Electric Vehicles Automotive Software Leader in Safety and Embedded Device & Security for Both IT & OT Mobility Know-How Automaker-Friendly AWS Strategic Independent Vendor Partnership & Focus on Ecosystem Analyst Summit
Slide 8: Thank you.
Thank you. Copyright © 2021 BlackBerry Limited. Trademarks, including but not limited to BLACKBERRY, EMBLEM Design, BLACKBERRY IVY, IVY, and BLACKBERRY SPARK are the trademarks or registered trademarks of BlackBerry Limited and the exclusive rights to such trademarks are expressly reserved. All othe
Slide 9: BlackBerry IVY
Analyst Summit 2021 BLACKBERRY IVY Charles Eagan Chief Technology Officer
Slide 10: The BlackBerry IVY Platform
THE BLACKBERRY IVY PLATFORM Layered development allows BlackBerry and AWS to take advantage of individual strengths while providing a single, unified product for the automotive market. Layered Platform Development – Single, Unified Product Offering OEM Telemetry OEM IT LANDSCAPE IVY EDGE APIs APIs D
Slide 11: The BlackBerry IVY Platform
THE BLACKBERRY IVY PLATFORM Layered development allows BlackBerry and AWS to take advantage of individual strengths while providing a single, unified product for the automotive market. Layered Platform Development – Single, Unified Product Offering Cloud On-Premises OEM Telemetry OEM IT Data Lake ML
Slide 12: BlackBerry Advantage – Leveraging BTS OEM Experience
BLACKBERRY ADVANTAGE – LEVERAGING BTS OEM EXPERIENCE Design with Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved. 1 2
Slide 13: BlackBerry IVY – Enabling the AWS Portfolio
BLACKBERRY IVY – ENABLING THE AWS PORTFOLIO Back End for Data Plane on AWS IVY Edge Catalog Management Web Console SYNTHETIC SENSOR Deployment Management IVY Cloud Metrics and Log Management Management SERVICES Locally Process with Updatable Code & Share Vehicle Insights IVY Console Communications V
Slide 14: The IVY Community
THE IVY COMMUNITY • Monitor IVY deployment health and metrics • Configure IVY policies and permissions • Deploy synthetic sensors • Govern development of sensors and vehicle services o Sensor definition, catalog, and conformance test • Control synthetic sensors – submit/review/accept/deploy/update O
Slide 15: Thank you.
Thank you. © 2021 BlackBerry Limited. Trademarks, including but not limited to BLACKBERRY and EMBLEM Design are the trademarks or registered trademarks of BlackBerry Limited and the exclusive rights to such trademarks are expressly reserved. All other trademarks are the property of their respective
Slide 16: Go-to-Market Strategy
Analyst Summit 2021 GO-TO-MARKET STRATEGY Tom Eacobacci President & Chief Operating Officer
Slide 17: Amplify Brand, GTM Execution, Customer Success
Amplify Brand GTM Execution Customer Success Build Talent Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved. 17
Slide 18: Analyst Summit 2021
Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved. 18
Slide 19: Automotive Synergistic Markets
Automotive Synergistic Markets 23.5 17.9 % Aerospace % & Defense Other 11.1 IoT % 15% 2.8 over 4 yrs. % Medical Market CAGR… Industrial Infotainment Rail & Automation Transport Data Sources: VDC Research, McKinsey & Company, and Berg Insight Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved
Slide 20: Design with
Design with Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved. 20
Slide 21: Analyst Summit 2021
Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved. 21
Slide 22: IoT Growth Initiatives
IoT Growth Initiatives Automotive Embedded Systems BlackBerry Ivy • Increase revenue per vehicle • Invest in GTM resources for • Connected & autonomous through broader systems Medical, Industrial & Rail vehicle design wins adoption • High-touch OEM strategy • Design workshops for OEM • Security-focu
Slide 23: Cyber Security Challenge
Cyber Security Challenge 100M 97% 3M pieces of malware of attacks are cybersecurity skills released each year at the endpoint gap globally Data Sources: BlackBerry Research and (ISC)2 Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved. 23
Slide 24: Cyber Security Opportunity
Cyber Security Opportunity Endpoint Endpoint Critical Security Management Event Mgt $14B $4B $3B Data Sources: IDC and Gartner Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved. 24
Slide 25: Cyber Growth Initiatives
Cyber Growth Initiatives Customer Segments Routes to Market Services • Accelerate commercial business • Invest in OEM business • Lead with Guard managed with new Sales structure (growing 30+% YoY) services for all customer sizes • Increase GTM investments • Invest in MSSP business • Drive awareness
Slide 26: Prepare • Prevent • Detect • Respond
Prepare • Prevent • Detect • Respond Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved. 26
Slide 27: 2X Portfolio in 6 Months
2X portfolio in 6 months BlackBerry UEM BlackBerry Protect for mobile BlackBerry Protect BlackBerry Persona BlackBerry Optics BlackBerry Alert BlackBerry Guard BlackBerry Gateway Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved. 27
Slide 28: Cylance AI
Cylance AI Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved. 28
Slide 29: BlackBerry Cyber Security
BlackBerry Cyber Security Land and expand with suite and modular solutions Prepare • Prevent • Detect • Respond Cylance AI BlackBerry BlackBerry BlackBerry BlackBerry BlackBerry BlackBerry Alert Protect Persona Optics Gateway UEM Critical Event Endpoint Behavior & Risk Threat Detection Network Secur
Slide 30: Thank you.
Thank you. © 2021 BlackBerry Limited. Trademarks, including but not limited to BLACKBERRY and EMBLEM Design are the trademarks or registered trademarks of BlackBerry Limited and the exclusive rights to such trademarks are expressly reserved. All other trademarks are the property of their respective
Slide 31: BlackBerry Platform
Analyst Summit 2021 BLACKBERRY PLATFORM Ryan Permeh Senior Vice President & Chief Security Architect
Slide 32: Data Is the Future
DATA IS THE FUTURE We have a natural exhaust of data We can mine data for new sources of value • New products • New features • New services We gain benefits from multiple sources External data sources Crowdsourcing Analytics AI/ML Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved. 32
Slide 33: Platform Is Data
PLATFORM IS DATA Platform Data Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved. 33
Slide 34: A New Normal
A NEW NORMAL Console Integrations Auto Laptop Mobile Ecosystem IoT Pipeline API Server Platform Data Data Infrastructure Data Lake Analytics AI Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved. 34
Slide 35: Common Approaches, Multiple Value Streams
COMMON APPROACHES, MULTIPLE VALUE STREAMS Collect Sensor Data BlackBerry Spark BlackBerry Ivy Endpoints Automobiles Analyze Take Action On the Edge, In the Cloud On Edge, In Cloud Sensor Data AI, Decision Support, AI, Decision Support, Analytics Analytics Protect, Detect Enable, Inform Make Decision
Slide 36: Empowering Zero Trust and XDR
EMPOWERING ZERO TRUST AND XDR Zero Trust is built from a real-time risk model • Broader sensors improve reliability • Comprehensive visibility • Complete forensics • Understand real risk across an organization Enables high-order use cases • On-the-fly authentication • Cross pillar investigation • Pr
Slide 37: Redefining Connected Vehicles
REDEFINING CONNECTED VEHICLES Automotive is shifting towards a data centric platform • Vehicle platform refresh • EV • Sensor rich environment • Autonomous drive • Smart cities • 5G Enables whole new business models • Mobile as a template • Improved safety, security, reliability • Data aggregation/e
Slide 38: Enabling Ecosystem
ENABLING ECOSYSTEM A key part of data is adaptability • Consuming partner data • Consuming organizational data • Deep integrations with existing products and services Customers own data, platform enables them to use it to produce unique value • Secure third-party applications • Deep connection to ex
Slide 39: Thank you.
Thank you. Copyright © 2021 BlackBerry Limited. Trademarks, including but not limited to BLACKBERRY, EMBLEM Design, BLACKBERRY IVY, IVY, and BLACKBERRY SPARK are the trademarks or registered trademarks of BlackBerry Limited and the exclusive rights to such trademarks are expressly reserved. All othe
Slide 40: BlackBerry Cyber Security
Analyst Summit 2021 BLACKBERRY CYBER SECURITY AI that works smarter, not harder Anthony Ricco SVP Product & Demand Marketing
Slide 41: Cyber Threats & Business Risks Are Growing Exponentially
CYBER THREATS & BUSINESS RISKS ARE GROWING EXPONENTIALLY 100M 97% 3M pieces of malware cyberattacks are at cybersecurity skills released each year the endpoint gap globally 60% 79% 70% users targeted users use security companies use by cyber attacks workarounds BYOD 90% 30% 90% breaches from users o
Slide 42: IT Transformations: PC Era, Cloud Era, Cyber Era
IT TRANSFORMATIONS PC Era Cloud Era Cyber Era 1980 2000 2020 2040 Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved. 42
Slide 43: Cylance AI
Endpoints Data Mobile Cylance AI Network Humans Cloud
Slide 44: Cylance AI
CYLANCE AI AI/ML Cyber Security Patent Families SOPHISTICATED 7th GENERATION ML MODEL 1.1M CrowdStrike 11% SentinelOne 0.6% FEATURES EXTRACTED FAST 1.4T FILES ANALYZED 50ms Carbon Black 26% TIME TO CONVICTION BlackBerry 63% LIGHT WEIGHT 20B FEATURES MAPPED 0-1% CPU UTLIZATION Data based on industry
Slide 45: BlackBerry Protect Q4'20
BLACKBERRY PROTECT Q4’20 EDGE AI PROTECTION BLOCK SOCIAL ENGINEERING SELF REMEDIATION Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved. 45
Slide 46: BlackBerry Persona Q4'20
BLACKBERRY PERSONA Q4’20 Geo-Location REAL TIME RISK Grant access SCORING Time & usage anomalies Issue challenge Network trust & reputation Adapt policy CYLANCE AI Device, keyboard, mouse Alert & remediate usage characteristics Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved. 46
Slide 47: BlackBerry Optics 3 Q2'21
BLACKBERRY OPTICS 3 Q2’21 New and expanded cloud data lake architecture with a new search engine, advanced query language, and flexible data storage options that threat hunters will love. CYLANCE AI CLOUD NATIVE DEEP INSIGHT Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved. 47
Slide 48: BlackBerry Gateway Q2'21
BLACKBERRY GATEWAY Q2’21 ZERO TRUST NETWORK ACCESS OPTIMIZED REMOTE WORKERS HIGHLY CONFIGURABLE Enable Zero Trust Network BYOD, and WFH made easy with Granular network access Access to all major SaaS and flexible policies that separate controls at the app level with on-prem apps – no VPN needed work
Slide 49: BlackBerry Cyber Security
BLACKBERRY CYBER SECURITY AI-powered security that works smarter, not harder Cylance AI Desktop Mobile Behavior & Threat Detection Network Protection Protection Risk Analytics & Response Analytics Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved. 49
Slide 50: BlackBerry Cyber Security
BLACKBERRY CYBER SECURITY AI-powered security that works smarter, not harder Cylance AI Desktop Mobile Behavior & Threat Detection Network Endpoint Protection Protection Risk Analytics & Response Analytics Control Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved. 50
Slide 51: BlackBerry UEM
BLACKBERRY UEM STRONGER RESPONSE DEVICE & APP CONTROL SECURE APPS DATA PROTECTION Quarantine, block Advanced app, network Secure mobile email, Supports all desktop and access, and even wipe & device controls calendar, browser, and mobile OSs and includes data to remediate allows for higher productiv
Slide 52: BlackBerry Cyber Security
BLACKBERRY CYBER SECURITY AI-powered security that works smarter, not harder Cylance AI Desktop Mobile Behavior & Threat Detection Network Endpoint Protection Protection Risk Analytics & Response Analytics Control Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved. 52
Slide 53: BlackBerry Cyber Security
BLACKBERRY CYBER SECURITY AI-powered security that works smarter, not harder Cylance AI Critical Event Desktop Mobile Behavior & Threat Detection Network Endpoint Management Protection Protection Risk Analytics & Response Analytics Control Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved.
Slide 54: Critical Event Management
CRITICAL EVENT MANAGEMENT PLAN ALERT COLLECT ASSESS ACT AUDIT Plan communications Notify anyone, Capture critical Gain real-time Collaborate & Performance, & workflows for anywhere, via information to status & risk of coordinate across accountability, situational response multiple channels achieve s
Slide 55: Many Types of Critical Events
MANY TYPES OF CRITICAL EVENTS “During any crisis, the biggest worry for CEOs is gathering accurate information quickly and knowing how data will flow during this crisis.” Gartner 2020 CYBER ATTACKS DISRUPTIONS & TRAVEL & WEATHER PUBLIC SAFETY & IT OUTAGES SITE CLOSURES EVENTS INCIDENTS Analyst Summi
Slide 56: BlackBerry Alert Q1'21
BLACKBERRY ALERT Q1’21 Managed Service or SaaS 2-Day Quick Setup Business Integration ▪ 24/7 access to our team of ▪ Crisis communication playbook ▪ Ongoing updates with latest org experienced BC/DR practitioners and messaging templates plans, structure and contacts ▪ BlackBerry history of security,
Slide 57: BlackBerry Alert Is Based on the BlackBerry AtHoc Platform
BLACKBERRY ALERT IS BASED ON THE BLACKBERRY ATHOC PLATFORM ADOPTED BY ORGANIZATIONS WORLDWIDE Commercial Government US Dept. US Dept. of US Dept. of US Dept. of US Senate US House of Federal Aviation Parliament of of Energy Treasury Agriculture Veterans Affairs Representatives Administration Canada
Slide 58: BlackBerry Cyber Security
BLACKBERRY CYBER SECURITY AI-powered security that works smarter, not harder Cylance AI Critical Event Desktop Mobile Behavior & Threat Detection Network Endpoint Management Protection Protection Risk Analytics & Response Analytics Control Security Services Analyst Summit 2021 © 2021 BlackBerry. All
Slide 59: SOC X
SOC X brings together 50 of the best Security Operations Center (SOC) and Incident Response (IR) teams from around the globe to compete against one another and prove their real-life response capabilities during authentic, advanced persistent threat (APT) attacks. More info at SOCX.io
Slide 60: BlackBerry Guard Mobile Persona Q2'21
BLACKBERRY GUARD MOBILE PERSONA Q2’21 Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved. 60
Slide 61: BlackBerry Cyber Security
BLACKBERRY CYBER SECURITY AI-powered security that works smarter, not harder Cylance AI Critical Event Desktop Mobile Behavior & Threat Detection Network Endpoint Management Protection Protection Risk Analytics & Response Analytics Control Security Services Analyst Summit 2021 © 2021 BlackBerry. All
Slide 62: BlackBerry Protects Your Business
BLACKBERRY PROTECTS YOUR BUSINESS A modern approach to cyber security and risk management Prepare • Prevent • Detect • Respond Prepare for IT outages, ransomware lockouts, and business disruptions before they happen. Prevent cyber attacks, internal threats, and data security risks effectively and ef
Slide 63: BlackBerry Cyber Security
BLACKBERRY CYBER SECURITY AI-powered security that works smarter, not harder Prepare • Prevent • Detect • Respond Cylance AI BlackBerry BlackBerry BlackBerry BlackBerry BlackBerry BlackBerry Alert Protect Persona Optics Gateway UEM Critical Event Endpoint Behavior & Risk Threat Detection Network Sec
Slide 64: Thank you.
Thank you. Copyright © 2021 BlackBerry Limited. Trademarks, including but not limited to BLACKBERRY, EMBLEM Design, BLACKBERRY IVY, IVY, and BLACKBERRY SPARK are the trademarks or registered trademarks of BlackBerry Limited and the exclusive rights to such trademarks are expressly reserved. All othe
Slide 65: Financial Discussion
FINANCIAL DISCUSSION Steve Rai Tim Foote Chief Financial Officer Investor Relations
Slide 66: Session Overview
SESSION OVERVIEW Review of FY21 Financials and Key Achievements Outlook for FY22 and Beyond Expected Reporting Changes FY22 Capital Allocation and Investment Priorities Q&A Analyst Summit 2021 © 2021 BlackBerry. All Rights Reserved. 3
Slide 67: FY21 Financial Highlights
FY21 FINANCIAL HIGHLIGHTS $804M $74M $240M 73% [$439M] [$16M] [+11 pts] Ending Cash & Free Cash Flow Reduction in Debt Gross Margin Investments [29% increase YoY] [Interest expense saving] [improvement 2017 — 21] 1 [Net Cash] ~90% $468M $450M $167M of Software Product Annual Recurring QNX Royalty Re
Slide 68: FY21 Highlights
FY21 HIGHLIGHTS Launched Launched IVY Partnership 23 / 25 BlackBerry Spark Cyber Suite with AWS Suite Intelligent Vehicle UEM + UES UES Suite Top EV Automakers Data Platform Launched Alert Govt. Certifications 175M+ QNX Design Wins Enterprise-focused Critical NSA CSfC, DoDIN and Vehicles Protected C
Slide 69: FY22 Revenue Reporting and Outlook
FY22 REVENUE REPORTING AND OUTLOOK SOFTWARE & SERVICES LICENSING & OTHER CYBER SECURITY IoT IP Patent Licensing Portfolio of 38,000+ patents Unified Endpoint Security + Safety-Critical Real-Time Unified Endpoint Management Operating System Technology Licensing (e.g. mobility licensing arrangements)
Slide 70: FY22 Growth Drivers: Cyber Security
FY22 GROWTH DRIVERS: CYBER SECURITY Upgrade UEM Install Base to Spark • UEM → UEM + UES • Powerful, fully integrated offering • AI-driven prevention & detection • Momentum building (e.g. USAF) New Logos Through Cyber Suite • UEM-agnostic UES • Desktop, servers & mobile • Zero Trust continuous authen
Slide 71: FY22 Growth Drivers: IoT - QNX
FY22 GROWTH DRIVERS: IOT - QNX Two Main Components: Continuing Auto Recovery Design Phase Production Phase • Return of Design activity • Recovery in Production volumes • Global Chip Shortage – H1 headwind Dev Seats Pro Serv Royalties Continuing Design Wins • Leading EV position (23/25) • Strong OEM
Slide 72: BlackBerry IVY
BLACKBERRY IVY Continuing Product Development • Targeting Early Access version by Oct 21 • Targeting Shipping product by Feb 22 Ongoing Discussions with OEMs and Tier 1s • Positive response from OEMs • IVY workshops Launched IVY Innovation Fund • Accelerate expansion of IVY ecosystem • Investment in
Slide 73: Capital Allocation & Investment Priorities
CAPITAL ALLOCATION & INVESTMENT PRIORITIES FY22 Primary Focus: Software & Services Growth Organic Investment in G2M Continued Investment in Growth Drivers BlackBerry IVY™ Sales Hiring Brand Marketing M&A Considerations © 2021 BlackBerry. All Rights Reserved. 73
Slide 74: Total Addressable Market (TAM)
TOTAL ADDRESSABLE MARKET (TAM) Large, growing market opportunities IoT ~$45bn IoT 2025: ~$15bn 2021: $89bn 1 2020: $45bn1 Cyber ~$44bn $38bn Cyber ~$30bn 1. Sources include IDC, Gartner, McKinsey & Company, Data Bridge Market Research, VDC Research and Berg Insight © 2021 BlackBerry. All Rights Rese
Slide 75: Timeless Model Goals
TIMELESS MODEL GOALS FY21 actuals Goals ~90% ~90% 73% ~80-85% 8% ~20-25% 16% ~25-30% 1. See form 10-K for detail and reconciliation of non-GAAP measures to U.S. GAAP. 2. See Form 10-K for definitions of key metrics. © 2021 BlackBerry. All Rights Reserved. 75
Slide 76: Key Takeaways
KEY TAKEAWAYS Key focus for FY22 is Software & Services growth • We are investing to drive growth Both Cyber Security (New Suites building momentum) & IoT (Leadership position & QNX recovery) are ready to grow in FY22 • Growth building as year progresses FY23 & beyond - very strong opportunities • I
Slide 77: Q&A
Q&A
Slide 78: Thank you.
Thank you. Copyright © 2021 BlackBerry Limited. Trademarks, including but not limited to BLACKBERRY, EMBLEM Design, BLACKBERRY IVY, IVY, and BLACKBERRY SPARK are the trademarks or registered trademarks of BlackBerry Limited and the exclusive rights to such trademarks are expressly reserved. All othe