Blackberry Limited · TSX:BB
Blackberry — Q2 FY2022 Earnings Presentation
42 slides from Blackberry's earnings presentation, September 2021
Slide 1: Investor Presentation Q2 FY2022
INVESTOR PRESENTATION S85 Q2 FY2022
Slide 2: Safe Harbor Statement
Safe Harbor Statement Some of the statements made within this presentation constitute forward-looking statements and are made pursuant to the safe harbor provisions of applicable U.S. and Canadian securities laws. Forward-looking statements are indicated by using words such as expect, will, should,
Slide 3: At the Heart of the Smart City
At the Heart of the Smart City IMAGINE THE POSSIBILITIES
Slide 4: Q2 FY22 Financial Summary
Q2 FY22 Financial Summary % $ $ $175M 65% ($0.06) ($14M) Revenue Non-GAAP Non-GAAP Adjusted Gross Margin‘ Earnings per Share’ EBITDA'2 $ $ % © $772M $12M 95% $89M Total ending Operating Cash Flow Cyber Security DBNRR?2 loT ARR2 Cash & Investments 1. See appendix: for detail and reconciliation of non
Slide 5: FY22 Revenue Reporting
FY22 Revenue Reporting SOFTWARE & SERVICES r Ne \ loT CYBER SECURITY BlackBerry. QNX x) BlackBerry Spark. Safety-Critical Real-Time Unified Endpoint Security + Operating System Unified Endpoint Management BlackBerry IVY™ @ BlackBerry. AtHoc Intelligent Vehicle Data Platform Critical Event Management
Slide 6: Q2 FY22 Financial Summary
Q2 FY22 Financial Summary loT CYBER SECURITY 32 38 130 43 Q2 a4 FY: FY21 Segment revenue (SM) 2 31 40 Segment revenue (SM) 122 491 107 120 6 6 b 5 23 7 7 ‘Segment cost of sales ($M) 46 «192 46 49 2B 25 26 33 «107 36 33 ‘Segment gross margin ($M) 72 74 7 76 299 61 n Segment gross margin % 79% 81% 81%
Slide 7: Q2 FY22 Achievements
Q2 FY22 Achievements BlackBerry has design wins with 24 of the world’s leading 25 EV automakers, who represent 82% of global EV volumes. Increased from 23 of the top 25 last quarter Nobo Technologies selects BlackBerry QNX® Neutrino® as foundation for new Digital Cockpit Controller for Great Wall Mo
Slide 8: Investment Highlights
Investment Highlights
Slide 9: Our Journey
Alin EPP & EDR Our Journey From ireless Security to (8) Intelligent Cybersecurity \ UEM \ y! UES App I ¢ f — Containerization ES Smartphone NOC 2. YY OF app» BD BD Becwary 2 (Oy le i Vig |: \@ ee pe a fe: Age A i] ‘ ° QNX® Secure EB OS in Autos Mobile Device Management — ao -------@
Slide 10: BlackBerry: An Internet of Things Market Leader
BlackBerry: An Internet of Things Market Leader a24 —> ivi it 0 SOOM+ 195M+ 24/25 38K+ Endpoints protected Vehicles protected by QNX Top EV Automakers Patents and applications ® fu ce Al/ML 18/G20 45% Fortune 100 Frost & Sullivan Industry-leading Governments connected & Customers across BlackBerry I
Slide 11: BlackBerry Customers and Partners
BlackBerry Customers and Partners Lal TOP-TIER CUSTOMERS & PARTNERS' oO = DP aws B® Microsoft nvioia. vodafone intel. DENSO © BOSCH Psamsungd Panasonic *APTIV: verizon’ ise7 @ic ZPD carahsoft. Google movius Batten TELUS kPmG CACI wetobleay OPTIV Alik@ servicenow EVER VIGILANT 2,200+ Partners Across
Slide 12: Total Addressable Market (TAM)
Total Addressable Market (TAM) Large, growing market opportunities loT ~$45bn, loT ~$15bny \ Cyber ~$44bn Cyber ~$30bn 1. Sources include IDC, Gartner, McKinsey & Company, Data Bridge Market Research, VDC Research and Berg Insight
Slide 13: Timeless Model Goals
Timeless Model Goals Recurring Software Product Revenue? (%) ~90% ~90% Gross Margin’ (%) 73% ~80-85% Operating Income’ (%) 8% ~20-25% Adjusted EBITDA! (%) 16% ~25-30% 1. See form 10- for detail and reconciliation of non-GAAP measures to U.S. GAAP. 2. See Form 10K for definitions of key metrics.
Slide 14: BlackBerry QNX
low "== BlackBerry. QINX.
Slide 15: Enabling Safety-Critical Embedded Systems
Enabling Safety-Critical Embedded Systems "3 BlackBerry, QNNX. QNX provides foundational software that accelerates customers’ safety certification efforts QNX Neutrino RTOS QNX Hypervisor QNX Software Development Platform A deterministic, yet flexible foundation for next-generation products. Its uni
Slide 16: Safety Certified to the highest level
Safety Certified to the highest level SRG EN PN Pa ® TUVRheinland CERTIFIED = mC) Streamline Certification ° 20 |@ oro Protect Critical Functionality QNX OS for Safety Pre-certified to ASIL-D, the highest Automotive Safety Integrity Level defined by the ISO 26262 standard for functional safety of ro
Slide 17: Addressing Automotive Secular Trends
Addressing Automotive Secular Trends "3 BlackBerry, QNNX. AUTOMOTIVE SECULAR TRENDS IMPACT D> i.) Autonomous Digitization (Levels 2-5) (Via connectivity) ) i ECU consolidation (Higher powered chips) Electrification (New everything) Cars are becoming ‘smarter.’ ECUs are consolidating to higher-powere
Slide 18: Addressing Automotive Secular Trends
Addressing Automotive Secular *= BlackBerry, QUINX. Trends QNX enables safety-critical software in the car (ag Acoustics Digital Cockpit Secure Infotainment OTA, Jarvis, Gateways @ Instrument Connected Services Clusters OTA Telematics (> ADAS, Active Safety High Performance Controllers Control Syste
Slide 19: BlackBerry IVY
lol BlackBerry IVY
Slide 20: BlackBerry IVY - Opportunity to harness data in the car
BlackBerry IVY - Opportunity to harness data in the car Diverse sensors generate huge amounts of data in unique formats Vehicle Data Vehicle Applications ke?) Wipers © vo ~~ an BlackBerry IVY es" Qo soos E Monitoring = Temperature a Customized SX dio : cop Charging ai Hyper-targeted Gi % — Recalls A
Slide 21: BlackBerry IVY's Digital Ecosystem
BlackBerry IVY’s Digital Ecosystem Enabling a cross-brand, cross-model app & services ecosystem Digital Ecosystem BlackBerry IVY Developer © Vehicle Data SDK — a — Vehicle Sensors key) Camera GPs Odometer Other Sensor BlackBerry IVY Cloud Testing & Standardized Data/Insight Simulation Development Ac
Slide 22: BlackBerry IVY's Addressable Market
BlackBerry IVY’s Addressable Market Access to standardized, intelligent insights leads to endless possibilities Sey Automakers / Suppliers CIS OX6 (©) fil EV charging providers SI / Nola App Developers Oe A Consumer Services BlackBerry IVY — ap Yor G6 erry Smart Cities SS Wey YS Q% D ys GS Eff . Ins
Slide 23: BlackBerry IVY — Strategic Alliance for Co-Development
BlackBerry IVY — Strategic Alliance for Co-Development Why did we co-invest in this partnership to jointly build a single solution? “2° BlackBerry. GQnDC Trusted leader in automotive safety and security Deep knowledge of embedded automotive software systems Exceptional track record of delivery, inte
Slide 24: Cyber Security
Cyber Security Black Berry Spark,
Slide 25: Spark Suite
Spark Suite Al-powered, prevention-first security that works smarter, not harder ea BlackBerry Spark, Prepare + Prevent Detect Respond ur Cylance Al BlackBerry BlackBerry BlackBerry BlackBerry BlackBerry BlackBerry Alert Protect Persona Optics Gateway UEM Critical Event Endpoint Behavior & Risk Thre
Slide 26: Strong performance in independent tests
Strong performance in independent tests Gp BisckBery Spark oe Lag © yy JULY 2021 BlackBerry® Protect (EPP) and BlackBerry® Optics (EDR) provided Complete prevention, complete detection and zero false positives in recent breach testing performed by SE Labs SE Labs is a private, independently-owned an
Slide 27: BlackBerry's Prevention-first technology
BlackBerry’s Prevention-first technology BlackBerry Prevents Raccoon infostealer BlackBerry Prevents RansomEXX Ransomware BlackBerry Prevents Clop Ransomware BlackBerry Prevents BlackBerry Prevents Hancitor Malware BlackBerry Prevents Conti Ransomware BlackBerry Prevents LockBit 2.0 Ransomware Black
Slide 28: What is Zero Trust?
BlackBi Spark, What is Zero Trust? oO eee Zero Trust architecture delivers continuous threat protection while maximizing user productivity Al SECURITY c= CA MACHINE Continuous Adaptive Authentication ZERO TRUST Policy The components work in concert as a foundation for a Zero Trust enterprise securit
Slide 29: Cyber Security
Cyber Security @ BlackBerry. AtHoc
Slide 30: Critical Event Management
Critical Event Management + Notify anyone, anywhere, on any device. * Gather critical information from your people to achieve situational awareness. * Gain real-time visibility into your personnel status and location. * Communicate and collaborate with other organizations. lll BlackBerry. Alert @ Bl
Slide 31: Critical Event Management
iti il{}|I) BlackBerry. Alert BlackBerry. AtH Critical Event Management Ili: BlackBerry alt GH BlackBerry attioc KEEP YOUR PEOPLE SAFE REDUCE IT DOWNTIME How do you communicate to your staff, In the event of a system outage, can you contractors, visitors and students quickly automatically communicat
Slide 32: Cyber Security
Cyber Security A <=> BlackBerry. SecuSUITE
Slide 33: BlackBerry SecuSUITE
BlackBerry SecuSUITE Secure Voice & Messaging Built to meet national security standards; offering end-to-end security for voice calls and messages on standard iOS and Android devices. Encrypted Communication Protects the content of your communication with strong encryption. Contact Verification Cont
Slide 34: BlackBerry SecuSUITE
Sp BlackBerry. SecuSUITE BlackBerry SecuSUITE | EASY & INTUITIVE TO USE > The app is easy and intuitive to use and offers high-quality voice on both Wi-Fi and cellular data | ENTERPRISE INTEGRATION i> It can also be easily integrated into your enterprise telephony system, making it the perfect addit
Slide 35: Appendix (Q2 FY22 Financials)
Appendix (Q2 FY22 Financials)
Slide 36: GAAP Income Statement ($M)
GAAP Income Statement ($M) Ql-21 Q2-21 Q3-21 a421 | FY2021 | Qi-22 222 Cyber Security $ 119 $ 120 $ 130 $ 122}$ 491/$ 107 $ 120 loT 29 31 32 38 130 43 40 Software & Services 148 151 162 160 621 150 160 Licensing and Other 58 108 56 50 272 24 15 Total Revenue 206 259 218 210 893 74 175 Cost of Sales
Slide 37: Non-GAAP Income Statement ($M)
Non-GAAP Income Statement ($M) Qi-21 Q2-21 Q3-21 Q4-21 Fy 2021 Q1-22 Q2-22 Cyber Security $ 119 $ 120 $ 130 $ 122]/$ 4911$ 107 $ 120 loT 29 31 32 33 130 43 40 Software & Services 148 151 162 160 621 150 160 Licensing and Other 58 108 56 50 272 24 15 Total Revenue 206 259 218 210 893 174 175 Cost of
Slide 38: Non-GAAP Reconciliation ($M)
Non-GAAP Reconciliation ($M) Non-GAAP Adjustments (Pre-Tax and After-Tax) Q1-21 Q2-21 Q3-21— Q421 | FY2021| Q1-22 Q2-22 Debentures Fair Value Adjustment $ 1 $ 18 $ 95 $ 258]$ 372]$ (4) $67 Restructuring Charges 1 1 - - 2 - - Stock Compensation Expense 14 9 12 17 52 7 12 Acquired Intangible Amortizat
Slide 39: Non-GAAP Reconciliation ($M) (Cont.)
Research and development GAAP research and development expense Stock compensation expense Non-GAAP research and development expense Selling, marketing and administration GAAP selling, marketing and administration expense Restructuring expense Stock compensation expense Non-GAAP selling, marketing an
Slide 40: Non-GAAP Reconciliation ($M) (Cont.)
Non-GAAP Reconciliation ($M) (Cont.) Adjusted EBITDA Qi-21 Q2-21 Q3-21 Q4-21 FY 2021 | Q1-22 Q2-22 GAAP Operating Loss $ (645) $ (22) $ (127) $ (313)| $(1,107)}$ (58) $ (141) Non-GAAP Adjustments to Operating Loss 643 81 139 329 1,192 35 111 Non-GAAP Operating Income (Loss) (2) 59 12 16 85 (23) (30)
Slide 41: Amortization And Reconciliation Details ($M)
Amortization And Reconciliation Details ($M) Amortization of Intangibles and PP&E Details | Q1-21 Q2-21 Q3-21 Q4-21 | FY2021 | Q1-22 Q2-22 Cost of Sales Amortization Property, Plant and Equipment s 1$ 1$ 1 $ 1/$ 4|s 1 $ 1 Intangibles Assets 3 3 3 3 12 2 2 Total in Cost of Sales Amortization 4 4 4 4
Slide 42: BlackBerry
"== BlackBerry. investorinfo@blackberry.com #BLACKBERRYTRUST #SECURITY #PRIVACY #CONTROL