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November 13, 2014 BlackBerry Public BLACKBERRY INVESTOR SESSION Public

BLACKBERRY INVESTOR SESSION · 2019-05-16 · BlackBerry and related trademarks, names and logos are the property of BlackBerry Limited and are registered and/or used in the U.S

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Page 1: BLACKBERRY INVESTOR SESSION · 2019-05-16 · BlackBerry and related trademarks, names and logos are the property of BlackBerry Limited and are registered and/or used in the U.S

November 13, 2014

BlackBerry Public

BLACKBERRY INVESTOR SESSION

Public

Page 2: BLACKBERRY INVESTOR SESSION · 2019-05-16 · BlackBerry and related trademarks, names and logos are the property of BlackBerry Limited and are registered and/or used in the U.S

SAFE HARBOR 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", "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.

2 Public

Page 3: BLACKBERRY INVESTOR SESSION · 2019-05-16 · BlackBerry and related trademarks, names and logos are the property of BlackBerry Limited and are registered and/or used in the U.S

Public

• Current state and color

• Service Access Fees (SAF)

• BlackBerry Enterprise Server

(BES)

• Value Added Services (VAS)

• BBM

• Wrap up

3

AGENDA

Page 4: BLACKBERRY INVESTOR SESSION · 2019-05-16 · BlackBerry and related trademarks, names and logos are the property of BlackBerry Limited and are registered and/or used in the U.S

4 Public

• Nearly halfway through eight-quarter turnaround

• Near term revenue is challenging, however near a bottom

• Cash flow breakeven by the end of FY15

• Income statement non-GAAP profitability in FY16

• Software revenue of $250M in FY15, $500M in FY16

• BBM revenue of $100M in FY16

COLOR FROM THE FY2015 Q2 CALL

Page 5: BLACKBERRY INVESTOR SESSION · 2019-05-16 · BlackBerry and related trademarks, names and logos are the property of BlackBerry Limited and are registered and/or used in the U.S

5 Public

• $500M in software revenue

• $100M in BBM revenue

• Replace SAF decline that

occurs during FY16

MISSION: SOFTEN THE SAF TRAJECTORY

$2,698

about $1,600

mid-$800sService Access

Fee (SAF)

FY14 FY15 (E) FY16 (E)

$2,698

about $1,600

mid-$800sService Access

Fee (SAF)

$261

$250

$500 Software

$100 BBM

FY14 FY15 (E) FY16 (E)

Page 6: BLACKBERRY INVESTOR SESSION · 2019-05-16 · BlackBerry and related trademarks, names and logos are the property of BlackBerry Limited and are registered and/or used in the U.S

6 Public

• Nearly 670M business-use

smartphones worldwide in

2014, growing mid-teens Y/Y

through 2018 *

• BlackBerry serves roughly

6% of this market today

• EZ Pass (October end)

• 5.1M licenses

• Roughly 1/3rd from

competing EMM

platforms

• Bottom line: BES 12

significantly expands the

addressable market BBRY

can service

BES: EXPANDING THE ADDRESSABLE MARKET

* Source: Strategy Analytics, Mobile Workforce Strategies, October 2014

BES addressable market

Initial cross-platform

opportunity (EZ Pass)

BES

Page 7: BLACKBERRY INVESTOR SESSION · 2019-05-16 · BlackBerry and related trademarks, names and logos are the property of BlackBerry Limited and are registered and/or used in the U.S

Silver Gold and/or Premium

$2.00+

$6.00+

7 Public

BES: REVENUE OPPORTUNITIES

$0.67

List prices per device per month

• Improve tech support attach

rate

• Existing perpetual

license customers

• Going forward:

subscription licenses

bundle tech support

with license sale

• Upsell to Gold service and/or

Premium tech support $1.92 Subscription License

Technical Support

(Perpetual License)

Page 8: BLACKBERRY INVESTOR SESSION · 2019-05-16 · BlackBerry and related trademarks, names and logos are the property of BlackBerry Limited and are registered and/or used in the U.S

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• Identity and Access

• VPN Authentication

• Enterprise Identity

• Virtual SIM

• Communication and Collaboration

• Enterprise Blend

• SecuSUITE (Secusmart acquisition currently pending)

• Secure voice and text communications

• VAS Bundle: Secure Productivity ($6/device/month)

• VPN Authentication

• Enterprise Blend

• BBM Protected

NEW VALUE ADDED SERVICES AVAILABLE

Page 9: BLACKBERRY INVESTOR SESSION · 2019-05-16 · BlackBerry and related trademarks, names and logos are the property of BlackBerry Limited and are registered and/or used in the U.S

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CHANNELS

Direct

ISV

VAR

Carrier

Technology

Page 10: BLACKBERRY INVESTOR SESSION · 2019-05-16 · BlackBerry and related trademarks, names and logos are the property of BlackBerry Limited and are registered and/or used in the U.S

10 Public

BBM: MONETIZATION

BBM Subscriptions:

Bundle premium features

Available for purchase

*Coming soon*

BBM Shop:

Purchase stickers and

virtual goods

Carrier billing

integration

Payments:

International

remittances

Mobile top ups

BBM Money:

P2P money

transfer

Merchant

transactions

Bill payments

BBM Ads:

An engaged

mobile audience

3 native ad unit

formats

• Consumer

• BBM Ads

• BBM Shop

• Payments

• BBM Money

• Subscriptions – coming soon

• Enterprise

• BBM Meetings

• $12.50/device/month

• BBM Protected

• $2.50/device/month

• BBM Bundle: Enterprise Communicator

• $12.00/device/month

Page 11: BLACKBERRY INVESTOR SESSION · 2019-05-16 · BlackBerry and related trademarks, names and logos are the property of BlackBerry Limited and are registered and/or used in the U.S

11 Public

Bottom line: Overall

opportunity for software and

BBM revenue per device is

potentially 10x today’s SAF per

device

THE GROWTH OPPORTUNITY

BES ($0.67-$6.00/device/month)

Enterprise Blend

Enterprise Identity

Virtual SIM

SecuVoice

Service Access Fee (SAF) Software

BES ($0.67-$6.00/device/month)

Service Access Fee (SAF) Software

BES ($0.67-$6.00/device/month)

Enterprise Blend

Enterprise Identity

Virtual SIM

SecuVoice

Service Access Fee (SAF) Software

BES ($0.67-$6.00/device/month)

Enterprise Blend

Enterprise Identity

Virtual SIM

SecuVoice

BBM Protected ($2.50 /device/month)

BBM Meetings ($12.50

/device/month)

Service Access Fee (SAF) Software

Page 12: BLACKBERRY INVESTOR SESSION · 2019-05-16 · BlackBerry and related trademarks, names and logos are the property of BlackBerry Limited and are registered and/or used in the U.S

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• Current Color

• Software revenue of $250M in FY15, $500M in FY16

• BBM revenue of $100M in FY16

• Potential for continued sustainable software growth

• Many BES 12 Levers:

• Expands BBRY addressable market from roughly 40M business smartphones today to

670M units, supporting all mobile platforms

• Improve attach rate for tech support

• Move to subscription license contracts

• Raises monthly ASP

• Bundles support with license

• Upsell to higher value Gold service and Premium support

• Increase penetration/ARPU with VAS and BBM

RECAP

Page 13: BLACKBERRY INVESTOR SESSION · 2019-05-16 · BlackBerry and related trademarks, names and logos are the property of BlackBerry Limited and are registered and/or used in the U.S

November 13, 2014

BlackBerry Public

BLACKBERRY INVESTOR SESSION

Public