Blackberry Limited · TSX:BB
Blackberry — Investor Presentation (January 2021)
39 slides from Blackberry's investor presentation, January 2021
Slide 1: Investor Presentation Winter 2020/21
INVESTOR PRESENTATION WINTER 2020/21
Slide 2: Safe Harbor Statement
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
Slide 3: BlackBerry Secures 96%+ of the Enterprise: Threat Landscape
70% of companies Over 50% of IoT Over 6K vendors, 30% of employees allow BYOD endpoints have creating point-to- have opened a BLACKBERRY SECURES been attacked point security gaps phishing email Human error is the cause of 90% of data breaches A new hacking attempt every 39 seconds 96%+ OF THE ENTERP
Slide 4: BlackBerry: An Internet of Things Market Leader
BlackBerry: An Internet of Things Market Leader 500M+ 175M+ 19/25 38K+ Endpoints protected1 Cars protected by QNX1 Top EV Automakers1 Patents & Applications1 AI/ML 26% 76% 7% (+29 pts) (+12 pts) Industry-leading Y/Y Software & FY20 Gross Margin (and FY20 Operating Margin AI/ML-driven Cyber software
Slide 5: Business Transformation: From Hardware to Software
Business Transformation: From Hardware to Software HARDWARE SOFTWARE & SERVICES 5 BlackBerry Has Undergone a Significant Shift in Its Business Model and Financial Profile. © 2020 BlackBerry. All Rights Reserved. 5
Slide 6: Business Transformation: From Hardware to Software
Business Transformation: From Hardware to Software FY141 FY201 Revenue (% YoY) $6.8B $1.1B (38% Y/Y decline) (20% Y/Y increase) GM %2 36% 76% Adjusted EBITDA $194M $149M %2 3% 14% FCF %2 ($393M) $14M (6%) 1% M&A 6 BlackBerry Has Undergone a Significant Shift in Its Business Model and Financial Profi
Slide 7: Journey To Date
Journey To Date Exited smartphone Completed pivot to software Strategic TAM expansion business & services in cybersecurity 2015 2016 2017 2018 2019 2020 • Re-focused strategy on software • Developed new strategy focused on • Executing on endpoint security and services securing endpoints strategy • B
Slide 8: What We Do
What We Do Revenue is reported in two groupings: SOFTWARE & SERVICES LICENSING & OTHER BlackBerry Spark IP Patent Licensing Unified Endpoint Security + Portfolio of 38,000+ patents Unified Endpoint Management Technology Licensing BlackBerry QNX E.g., Mobility licensing arrangements Safety-Critical R
Slide 9: BlackBerry IVY
BlackBerry IVY
Slide 10: 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 10 © 2020 BlackBerry. All Rights Reserved. 10
Slide 11: BlackBerry IVY's Digital Ecosystem
BlackBerry IVY’s Digital Ecosystem Enabling a cross-brand, cross-model app & services ecosystem 11 © 2020 BlackBerry. All Rights Reserved. 11
Slide 12: BlackBerry IVY's Addressable Market
BlackBerry IVY’s Addressable Market Access to standardized, intelligent insights leads to endless possibilities Automakers / Suppliers App Developers Consumer Services Smart Cities EV charging providers Insurance Companies 12 Vehicle maintenance providers © 2020 BlackBerry. All Rights Reserved. 12
Slide 13: 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? • Trusted leader in automotive safety and • Leading global cloud provider with a culture security of innovation • Deep knowledge of embedded automotive • Unmatched mac
Slide 14: BlackBerry Spark
Black Berry Spalikg
Slide 15: Spark Suite
Spark Suite INTERACTION LAYER APPS + AGENTS + CONSOLES + MICRO-SERVICES Spark Suite Unified Endpoint Security Unified Endpoint Management Endpoint Endpoint Detection & SDK/API & Digital Rights Regulated Protection Response Custom Apps Management Controls Identity & Access Management UEM Express Suit
Slide 16: Why Unify Endpoint Security & Endpoint Management?
Why Unify Endpoint Security & Endpoint Management? TOO MANY VENDORS MOBILE IS VULNERABLE ENDPOINTS ARE CHANGING 70% 50% 40% of organizations will have of organizations will have of workers use wearables a unified console mobile threat defense as primary devices By 2024, the adoption of Windows 10, B
Slide 17: What is Zero Trust?
What is Zero Trust? AI SECURITY Behavioral Constant Analytics Monitoring HUMAN MACHINE Continuous Adaptive Authentication ZERO TRUST Policy The components work in concert as a foundation for a Zero Trust enterprise security architecture. 17 © 2020 BlackBerry. All Rights Reserved. 17
Slide 18: BlackBerry QNX
#2 BlackBerry QINX.
Slide 19: Secure Embedded OS to Secure the 'Edge'
Secure Embedded OS to Secure the ‘Edge’ SMART HOME SMART CAR SMART CITY Artificial Intelligence‒based Security Complex Domain Telematics Controllers Acoustics Secure Gateways Infotainment V2X CLOUD SERVICES Control Systems Instrument • OTA Clusters • Jarvis Digital Traditional 19 Cockpit ADAS, Activ
Slide 20: BlackBerry QNX
BlackBerry QNX AUTOMOTIVE CONVERGING TRENDS IMPACT • Cars are becoming ‘smarter.’ • Software is reaching more safety- critical parts of the car. Autonomous Digitization • An increasing portion of new cars have (Levels 2‒5) (Via connectivity) a significant software component. • Commoditization of har
Slide 21: Slide 21
Slide 22: Critical Event Management
Critical Event Management 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 if automatically communicate and coordinate a there is an incident? response and short-term workarounds to redu
Slide 23: 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. 23 © 2020 BlackBerry. All
Slide 24: Critical Event Management
Critical Event Management END-TO-END CRISIS MANAGEMENT Plan Respond Collaborate Alert Collect Account Connect 24 Secure Unified Mobile Flexible © 2020 BlackBerry. All Rights Reserved. 24
Slide 25: BlackBerry SecuSUITE
a <=> BlackBerry. SecuSUITE
Slide 26: BlackBerry SecuSUITE
BlackBerry SecuSUITE Secure Voice & Messaging Sovereign Network Built to meet national security standards; Uses a closed virtual network, so you will offering end-to-end security for voice calls never be bothered by adware or spam and messages on standard iOS and calls. Android devices. Control of M
Slide 27: 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 It can also be easily integrated into your enterprise telephony system, making it the perfect addition to a secure working environme
Slide 28: Investment Highlights
Investment Highlights
Slide 29: Investment Highlights
Investment Highlights Our mission is to enable security from IT to Internet of Leading software platform for the automotive industry Things (IoT) in large, critical markets Installed in over 175M cars across 45+ automakers Unique portfolio in a $38B TAM that is organically Unrivaled, broad and diver
Slide 30: BlackBerry Customers and Partners
BlackBerry Customers and Partners TOP-TIER CUSTOMERS1 TOP-TIER PARTNERS1 18/20 G20 GOVERNMENTS 9/10 LARGEST GLOBAL BANKS 9/10 TOP AUTO 30 MAKERS 2,000+ Partners Across Our Ecosystem Notes: 1. As at Q3 FY21. © 2020 BlackBerry. All Rights Reserved. 30
Slide 31: Strategic Priorities
Strategic Priorities FY21 AND BEYOND – FOCUSED ON GROWTH Unlock synergies from Close pipeline Drive Professional Gain market share in Successfully bring integration of UEM and opportunities, grow Services both automotive new product Cylance and deliver on partnerships and expansion safety systems an
Slide 32: Opportunities for Long-Term Growth
Opportunities for Long-Term Growth We have the right strategy, the right technology and are playing in the right markets. Accelerate Growth • Investing in growth • Sustainable revenue Opportunities • Opportunities to lead in growth large markets • Innovating and investing • Long-term value Capture t
Slide 33: Timeless Model Goals
Timeless Model Goals Goals Recurring Software Product Revenue2 (%) ~90% Gross Margin1 (%) ~80–85% Operating Income1 (%) ~20–25% Adjusted EBITDA1 (%) ~25–30% 33 1. See appendix for detail and reconciliation of non-GAAP measures to U.S. GAAP. 2. See Form 10-Q for definitions of key metrics. © 2020 Bla
Slide 34: Appendix (Financials)
Appendix (Financials)
Slide 35: GAAP Income Statement ($M)
GAAP INCOME STATEMENT ($M) Q1-20 Q2-20 Q3-20 Q4-20 FY 2020 Q1-21 Q2-21 Q3-21 Software & Services $ 168 $ 168 $ 185 $ 170 $ 691 $ 148 $ 151 $ 162 Licensing and Other 79 76 82 112 349 58 108 56 Total GAAP Revenue 247 244 267 282 1,040 206 259 218 Cost of Sales 70 68 69 70 277 63 60 69 Gross Profit 177
Slide 36: Non-GAAP Reconciliation ($M)
NON-GAAP RECONCILIATION ($M) Non-GAAP Adjustments (Pre-Tax and After-Tax) Q1-20 Q2-20 Q3-20 Q4-20 FY 2020 Q1-21 Q2-21 Q3-21 Debentures Fair Value Adjustment (28) (23) (20) 5 (66) 1 18 95 Restructuring Charges 1 1 7 1 10 1 1 - Software Deferred Revenue Acquired 20 17 13 9 59 8 7 6 Software Deferred C
Slide 37: Non-GAAP Reconciliation ($M) (Cont.)
NON-GAAP RECONCILIATION ($M) (CONT.) Adjusted EBITDA Q1-20 Q2-20 Q3-20 Q4-20 FY 2020 Q1-21 Q2-21 Q3-21 Non-GAAP Revenue, non-GAAP Operating Income, non-GAAP Net Income, non-GAAP Gross Profit, GAAP Operating Loss $ (36) $ (43) $ (29) $ (41) $ (149) $ (645) $ (22) $ (127) Adjusted EBITDA, and non-GAAP
Slide 38: Amortization and Reconciliation Details ($M)
AMORTIZATION AND RECONCILIATION DETAILS ($M) The information above is Restructuring Charges Details (Pre-Tax) Q1-20 Q2-20 Q3-20 Q4-20 FY 2020 Q1-21 Q2-21 Q3-21 supplied to provide meaningful supplemental Cost of Sales $ 1 $ 1 $ 3 $ - $ 5 $ - $ - $ - information regarding the Company's operating resu
Slide 39: Thank you.
Thank you. # 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