1 Top Management; 2 Peer Comparison & Ranking of BB; 3 Patents; 4 Currency Synopsis: Canadian Dollar (CAD) Top Management Top Management Name Designation Richard Lynch Chairman Peer Comparison & Ranking of BB PEER COMPARISON: BB IN INDICES BlackBerry is a constituent of the following indices. Its market capitalisation is $1 billion and accounts for 0.1% of the combined MCap of the S&P/TSX 60 Index. Index Name MCap of Index ($ b) BB MCap as % of Index S&P/TSX 60 Index 1,694 0.1 S&P/TSX Composite Index 2,264 0.1 GLOBAL PEER COMPARISON: BB - SIZE (all figures in $) In its Global Peer Group of 9 companies BB is ranked fourth (4) by Revenue, fifth (5) by MCap, Total Assets and seventh (7) by Net Profit. Name (Code) MCap Revenue Net Profit Total Assets Rank of BB 5 4 7 5 BlackBerry (BB) 1.4B 853M (130M) 1.4B Vietnam Airlines JSC (HVN) 1.7B 27,904,364,912.7B (4,132,616,655.9B) 23,973,486,971.1B Yuan Longping High-Tech Agriculture - A Share (000998) 1.7B 508.1M (120.7M) 2B Gaona Aero Material (300034) 1.6B 396.6M 46.3M 866.6M Jihua Group (601718) 1.4B 2.1B 30.5M 3.8B Triumph Group (TGI) 1.3B 1.2B 512.4M 1.7B Archer Aviation Inc. Class A (ACHR) 1.3B (457.9M) 554.3M Shandong Denghai Seeds - A Share (002041) 963.4M 182.6M 34.9M 637.4M Colt CZ Group (CZG) 950.8M 631.3M 88M 843.9M GLOBAL PEER COMPARISON: BB - RELATIVE VALUE INDICATORS In value terms, comparing relative value of its shares, BB is ranked Name (Code) Currency Code Last Price Div Yld (%) P/E P/Book Rank of BB by value BlackBerry (BB) CAD 3.3 Vietnam Airlines JSC (HVN) VND 20,200 Yuan Longping High-Tech Agriculture - A Share (000998) CNY 9.6 0.5 6.6 Gaona Aero Material (300034) CNY 14.8 0.8 34.0 4.3 Jihua Group (601718) CNY 2.4 1.3 47.0 Triumph Group (TGI) USD 16.4 Archer Aviation Inc. Class A (ACHR) USD 4.4 3.5 Shandong Denghai Seeds - A Share (002041) CNY 8 0.5 27.6 2.2 Colt CZ Group (CZG) CZK 660 4.5 11.1 12.6 USD 1= 1.381151 Canadian Dollar (CAD); 25,000.0 Vietnamese Dong (VND); 7.236 Chinese Yuan (CNY) BUYSELLSIGNALS FUNDAMENTALS VALUATION RANKING: BlackBerry vs Canadian Market Out of 974 stocks and 26 units in the Canadian Market, BlackBerry is ranked 115th(115) by Premium to 52-Wk Low, 180th(180) by Market Cap in $, 202nd(202) by Revenue and 233rd(233) by P/Sales. Canadian Avg BB BB Rank Premium to 52-Wk Low (%) 21.7 10.3 115 Market Cap $ 3.3 B 1.4 B 180 Revenue $ 3.5 B 853 M 202 P/Sales 1.1x 1.7x 233 Discount to 52-Wk High (%) 1.8 57.4 247 EBITDA Margin% 16.2 (6.1) 791 Net Profit $ 228.9 M (130 M) 2444 Negative values are shown in brackets. Stock in Index and Stock in Sector Description BB S&P/TSX 60 Index % of S&P/TSX 60 Index Communication equipment sector % of Communication equipment sector Net Profit $ -94,124,420 97.4 B -0.1 -186,614,441 50.4 Revenue $ 617.6 M 794.1 B 0.1 2.2 B 27.5 Total Assets $ 1 B 8,429.1 B 0.01 3.4 B 29.4 MCap $ 1.4 B 1,694.2 B 0.1 4.7 B 30.4 Relative Valuation Indicators: Stock vs Index and Stock vs Sector Description BB S&P/TSX 60 Index Avg. Communication equipment sector Avg. Price/Earnings -11.0 17.7 -18.9 Price/Net Tangible Assets 50.91 3.03 24.72 MARKET SHARE BlackBerry vs Communication Equipment sector [Communication Equipment sector Total in Brackets] Revenue of $1.2 billion[38.2% of aggregate sector revenue of CAD3.1 billion; up from 36.0% in the previous year.] GLOBAL RANK [out of 47,149 stocks] AND RANK OF BLACKBERRY IN THE AMERICAN REGION [out of 9,671 stocks] Description Value Global Rank In Am Region MCap ($) 1.4B 8,844 2,296 Total Assets ($) 1.4B 10,817 2,844 Revenue ($) 853M 9,527 2,282 Net Profit ($) (130M) 41,416 7,473 Return on Equity % (16.8) 35,007 5,237 Net Profit Margin % (15.2) 33,010 4,439 Price to Book 50.8 36,134 5,476 PV1000 (1Year) $* 514 37,759 6,918 $* Change (1Year) % -50.4 38,243 7,042 * 1 year ago CAD 1 = $ 0.76 Jul 25, 2024: CAD 1 equals $ 0.72 RANK OF BLACKBERRY IN THE S&P/TSX 60 INDEX [out of 49 stocks], IN THE CANADIAN MARKET [out of 1292 stocks] AND IN THE COMMUNICATION EQUIPMENT SECTOR [out of 12 stocks] Description Value In S&P/TSX 60 Index In Canadian Market In Communication equipment sector MCap (CAD) 2B 51 226 1 Total Assets (CAD) 1.9B 51 420 1 Revenue (CAD) 1.2B 50 366 1 Net Profit (CAD) (179.5M) 47 1,742 15 Return on Equity % (16.8) 50 1,050 8 Net Profit Margin % (15.2) 49 806 10 PV1000 (1Year) CAD 539 48 986 12 LONG-TERM FUNDAMENTAL RANKING: 3 OUT OF 5 [5 is best] BlackBerry is ranked number 1 out of 19 listed communication equipment companies in the Canada with a market capitalization of CAD2 billion ($1.4 billion). Stocks are scored on a set of parameters reflecting fundamental analytical tools involving valuation, size and financial performance. They are ranked according to the average values of those parameters. The highest ranking is 5 and the lowest ranking is 1. Patents Number of Patents Issued to BlackBerry by the US Patent Office and the European Patent Office A total of 3,866 patents were issued to BlackBerry in the last ten years. In the past year 253 patents were issued, 0.7 times average of 387 patents per year. 12 months ended Jul 25 No. of Patents Issued 2024 253 2023 292 2022 209 2021 285 2020 359 2019 366 2018 457 2017 621 2016 674 2015 350 Total 3,866 Rank by patents issued in the past 12 months: BlackBerry vs CANADA stocks BlackBerry is ranked 2 by patents issued in the past year out of 2,441 Canada listed companies. A total of 1,714 patents were issued to Canada listed companies in the past year, an average of 14.8 patents per company. BlackBerry received 253 patents in the past 12 months, 360 times average. Currency Synopsis: Canadian Dollar (CAD) % Change of CAD vs Currency Basket Period-Based In the past year the Canadian Dollar fell 4.8% against the US Dollars; in the past three years the Canadian Dollar fell 9.1% against the US Dollars. Last Country 1-day % 1-week % 1-Year % 3-Yrs % CAD1=0.723USD United States Of America -0.3 -1.1 -4.8 -9.1 CAD1=5.217CNY China -1.0 -1.7 -3.6 1.2 CAD1=110.164JPY Japan -1.0 -3.7 3.0 25.3 CAD1=0.666EUR European Union -0.3 -0.4 -3.0 -1.4 CAD1=997.607KRW South Korea -0.3 -1.3 3.0 8.8 CAD1=0.97SGD Singapore -0.3 -1.0 -3.7 -10.3 CAD1=1.225NZD New Zealand 0.4 1.7 0.1 7.5 CAD1=0.561GBP United Kingdom 0.1 -0.3 -4.7 -2.9 CAD1=1.108AUD Australia 0.8 2.1 -1.2 2.7 CAD1=5.641HKD Hong Kong -0.4 -1.2 -4.8 -8.7 CAD1=0.635CHF Switzerland -1.0 -1.8 -3.2 -13.3 CAD1=7.82SEK Sweden 0.3 1.4 -0.7 13.2 CAD1=8.029NOK Norway 0.6 2.2 5.1 13.9 CAD1=13.378MXN Mexico 0.7 3.3 4.3 -16.1 1 Financials as Reported FY 2024, Past 10 Years Financials as Reported FY 2024, Past 10 Years Financials as reported (FY 2024 [year-ended 29 February 2024 ]) RESULTS OF OPERATIONS AND FINANCIAL CONDITION (In $ Million, except per share data and shares outstanding) INCOME STATEMENT AS REPORTED (FY 2024 [year-ended 29 February 2024 ]) Description $ Million $ Million Feb 29, 2024 Feb 28, 2023 Change % Revenue 853 656 Up 30.0 Cost of sales 333 237 Up 40.5 Gross margin 520 419 Up 24.1 Operating expenses Research and development 186 207 Down 10.1 Sales and marketing 171 176 Down 2.8 General and administrative 181 164 Up 10.4 Amortization 54 96 Down 43.8 Impairment of goodwill 35 245 Down 85.7 Impairment of long-lived assets 15 235 Down 93.6 Gain on sale of property plant and equipment net -6 Debentures fair value adjustment 3 -138 Recovery Litigation settlement 165 645 1,144 Down 43.6 Operating loss -125 -725 Improved 82.8 Investment income net 19 5 Up 280.0 Income (loss) before income taxes -106 -720 Reduced 85.3 Provision for income taxes 24 14 Up 71.4 Net income (loss) -130 -734 Improved 82.3 Earnings (loss) per share Basic -22.0c -127.0c Reduced 82.7 Diluted -22.0c -135.0c Improved 83.7 Weighted average number of ordinary share Basic 584,543,000 578,654,000 Up 1.0 Weighted average number of ordinary share Diluted 584,543,000 639,487,000 Down 8.6 BALANCE SHEET AS REPORTED (FY 2024 [year-ended 29 February 2024 ]) Description $ Million $ Million Feb 29, 2024 Feb 28, 2023 Change % Assets Current Cash and cash equivalents 175 295 Down 40.7 Short-term investments 62 131 Down 52.7 Accounts receivable net of allowance of 6 and 1 respectively 199 120 Up 65.8 Other receivables 21 12 Up 75.0 Income taxes receivable 4 3 Up 33.3 Other current assets 47 182 Down 74.2 508 743 Down 31.6 Restricted cash and cash equivalents 25 27 Down 7.4 Long-term investments 36 34 Up 5.9 Other long-term assets 57 8 Up 612.5 Operating lease right-of-use assets net 32 44 Down 27.3 Property plant and equipment net 21 25 Down 16.0 Intangible assets net 154 203 Down 24.1 Goodwill 562 595 Down 5.5 1,395 1,679 Down 16.9 Liabilities Current Accounts payable 17 24 Down 29.2 Accrued liabilities 117 143 Down 18.2 Income taxes payable 28 20 Up 40.0 Debentures 367 Deferred revenue current 194 175 Up 10.9 356 729 Down 51.2 Deferred revenue non-current 28 40 Down 30.0 Operating lease liabilities 38 52 Down 26.9 Other long-term liabilities 3 1 Up 200.0 Long-term notes 194 619 822 Down 24.7 Commitments and contingencies Shareholders' equity Capital stock and additional paid-in capital Preferred shares: authorized unlimited number of non-voting cumulative redeemable and retractable Common shares: authorized unlimited number of non-voting redeemable retractable Class A common shares and unlimited number of voting common shares Issued and outstanding - 589232539 voting common shares (February 28 2023 - 582157203) 2,948 2,909 Up 1.3 Deficit -2,158 -2,028 Deterioration 6.4 Accumulated other comprehensive loss -14 -24 Improved 41.7 776 857 Down 9.5 1,395 1,679 Down 16.9 CASH FLOW AS REPORTED (FY 2024 [year-ended 29 February 2024 ]) Description $ Million $ Million Feb 29, 2024 Feb 28, 2023 Change % Cash flows from operating activities Net income (loss) -130 -734 Improved 82.3 Adjustments to reconcile net income (loss) to net cash used in operating activities: Amortization 59 105 Down 43.8 Stock-based compensation 33 34 Down 2.9 Gain on sale of investment Impairment of goodwill 35 245 Down 85.7 Impairment of long-lived assets 15 235 Down 93.6 Intellectual property disposed of by sale 147 Gain on sale of property plant and equipment net -6 Debentures fair value adjustment 3 -138 Recovery Operating leases -13 -16 Improved 18.8 Other 3 5 Down 40.0 Net changes in working capital items Accounts receivable net of allowance -79 18 Deterioration Other receivables -9 13 Deterioration Income taxes receivable -1 6 Deterioration Other assets -53 -1 Deterioration 5,200.0 Accounts payable -7 2 Deterioration Accrued liabilities -21 -11 Deterioration 90.9 Income taxes payable 8 9 Down 11.1 Deferred revenue 7 -29 Recovery Net cash used in operating activities -3 -263 Improved 98.9 Cash flows from investing activities Acquisition of long-term investments -2 -3 Improved 33.3 Proceeds on sale maturity or distribution from long-term investments Acquisition of property plant and equipment -7 -7 Steady Proceeds on sale of property plant and equipment 17 Acquisition of intangible assets -14 -34 Improved 58.8 Acquisition of short-term investments -154 -514 Improved 70.0 Proceeds on sale or maturity of restricted short-term investments Proceeds on sale or maturity of short-term investments 223 717 Down 68.9 Net cash provided by investing activities 46 176 Down 73.9 Cash flows from financing activities Issuance of common shares 6 6 Steady Maturities of 2020 Debentures and Extension Debentures -515 Proceeds from issuance of Extension Debentures and Notes net 344 Net cash provided by (used in) financing activities -165 6 Deterioration Effect of foreign exchange loss on cash cash equivalents restricted cash and restricted cash equivalents -3 Net increase (decrease) in cash cash equivalents restricted cash and restricted cash equivalents during the period -122 -84 Deterioration 45.2 Cash cash equivalents restricted cash and restricted cash equivalents beginning of period 322 406 Down 20.7 Cash cash equivalents restricted cash and restricted cash equivalents end of period 200 322 Down 37.9 Download BLACKBERRY Financials Past 10 Years Description Feb 24 Feb 23 Feb 22 Feb 21 Feb 20 Income Statement Revenue per share 1.46 1.03 1.14 1.85 EBITDA (M) (52) (624) 184 (931) 46 Depreciation (M) 54 96 165 182 194 Tax (M) 24 14 7 (9) 4 Net profit (130 M) (734 M) 12 M (1.1 B) (152 M) EPS (0.22) (1.27) 0.02 (1.97) (0.27) Balance Sheet Equity Share Capital 776 M 857 M 1.6 B 1.5 B 2.5 B Retained Earnings (2.2 B) (2 B) (1.3 B) (1.3 B) (198 M) Total Assets (B) 1.4 1.7 2.6 2.8 3.9 Current Asset 508 M 743 M 1 B 1 B 1.2 B Fixed Asset (M) 21 25 41 48 70 Working Capital (M) 152 14 646 577 75 Cash Flow Operating Cash Flow (M) (3) (263) (28) 82 26 Investing Cash Flow (M) 46 176 207 (65) (188) Financing Cash Flow (M) (165) 6 10 (227) 7 Net Cash Flow (M) (122) (81) 189 (210) (155) Description Feb 19 Feb 18 Feb 17 Feb 16 Feb 15 Income Statement Revenue per share 1.47 1.71 4.1 6.24 EBITDA 213 M 559 M (1 B) (5 M) 607 M Depreciation (M) 136 153 186 277 992 Tax (16 M) 1 M (74 M) (81 M) Net profit 93 M 405 M (1.2 B) (208 M) (304 M) EPS 0.17 0.76 (2.3) (0.4) (0.58) Balance Sheet Equity Share Capital (B) 2.6 2.5 2.1 3.2 3.4 Retained Earnings (32 M) (55 M) (438 M) 768 M 1 B Total Debt 782 M 591 M 1.3 B 1.7 B Total Assets (B) 4 3.8 3.3 5.5 6.6 Current Asset (B) 1.2 2.5 1.7 3 4.2 Fixed Asset (M) 85 64 91 412 556 Working Capital 723 M 2.1 B 1.1 B 2 B 2.8 B Cash Flow Operating Cash Flow (M) 100 704 (224) 257 813 Investing Cash Flow (375 M) (630 M) 724 M (439 M) (1.2 B) Financing Cash Flow (M) 5 (10) (722) (78) 16 Net Cash Flow (M) (270) 64 (222) (260) (344)