Blackberry Limited · TSX:BB
Blackberry — Corporate Update (February 2024)
9 slides from Blackberry's corporate update, Feb 13, 2024
Slide 1: Investor Update
Investor Update TUESDAY, FEBRUARY 13, 2024 Intelligent Security. Everywhere.
Slide 2: Safe Harbor Statement
Safe Harbor Statement Some of the statements made during 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: Recap on our Corporate Objectives
Recap on our Corporate Objectives Full separation of IoT and Cybersecurity divisions • Standalone divisions with thin Corporate layer • Greater optionality for enhancing shareholder value Move quickly to profitability and positive cash flow • Optimize cost profile Estimated Q4 FY24 opex as % of reve
Slide 4: Progress Made on Path to Profitability
Progress Made on Path to Profitability Prior quarter: ~$50M annualized cost savings actioned ✓ • Majority in Cybersecurity division • Included: ~200 HC reductions • Facilities rationalization Target: Additional $100M annualized net profit improvements • Predominantly cost reductions, but some operat
Slide 5: Expected Return to Positive Cash Flow
Expected Return to Positive Cash Flow Operating cash flow usage: Q2 FY24: -$56M Q3 FY24: -$31M • Further sequential improvement expected in current quarter (Q4 FY24) Return to positive operating cash flow in FY25: • First fiscal quarter is seasonal low point for BlackBerry • Sequential improvements
Slide 6: Progress Made in Separating the Divisions
Progress Made in Separating the Divisions Establishment of Divisional Leadership Teams • Appointed Divisional CFOs, CPOs and General Counsel • Work in progress to establish divisional G&A teams Leveraging expertise of leading consultancy firm: Alvarez and Marsal © 2024 BlackBerry. All Rights Reserve
Slide 7: Solid Balance Sheet
Solid Balance Sheet Successfully raised long-term, debt financing • As previously communicated, replaced expiring debt with longer-term debt • Pleased with strong level of interest: Raised $200M 45% reduction in level of debt compared to $365M that expired November 2023 Company well-positioned with
Slide 8: Key takeaways
Key takeaways • Significant progress made in path to profitability • ~$50M of annualized savings enacted in prior quarter • Additional $100M target set for annualized improvements • ~$55M of which identified and to be actioned this quarter • Expect positive operating cash flow in Q4 FY25 • Solid bal
Slide 9: Q&A
# B L A C K B E R R Y T R U S T | # S E C U R I T Y | # P R I V A C Y | # C O N T R O L Q&A investorrelations@blackberry.com