1 Top Management and Board of Directors; 2 Peer Comparison & Ranking of BB; 3 Patents; 4 Currency Synopsis: Canadian Dollar (CAD) Top Management and Board of Directors Top Management Top Management [Eight top executives with tenure > 7 yrs] Name Designation Since Appointment James Mackey Executive Vice President 7 Yrs, 9 Mos Sai Yuen Ho Executive Vice President 9 Yrs, 9 Mos John Chen Chief Executive Officer, Executive Chairman - Steve Capelli Chief Financial Officer - Marty Beard Chief Operating Officer - Nita White-Ivy Executive Vice President - Randall Cook Corporate Secretary, Chief Legal Officer - Mark Wilson Chief Marketing Officer - Board Of Directors Board Of Directors [One director with tenure > 11 yrs] Name Since Appointment Timothy Dattels 11 Yrs, 3 Mos Board Of Directors [Nine directors with tenure < 5 yrs] Name Designation Since Appointment Richard Lynch Director 4 Yrs, 3 Mos Michael A. Daniels Director 4 Yrs, 3 Mos Barbara Stymiest Director - Mike Daniels Director - Prem Watsa Director - Wayne Wouters Director - Laurie Smaldone Alsup Director - Lisa Disbrow Independent Director - V. Prem Watsa Lead Independent Director - Resignations in the past 4 years Name Designation Date of Resignation Steve Capelli Chief Operating Officer 28 January 2019 Sandeep Chennakeshu President 28 January 2019 Peer Comparison & Ranking of BB PEER COMPARISON: BB IN INDICES BlackBerry is a constituent of the following indices. Its market capitalisation is $3 billion and accounts for 0.2% of the combined MCap of the S&P/TSX 60 Index. Index Name MCap of Index ($ b) BB MCap as % of Index S&P/TSX 60 Index 1,496 0.2 S&P/TSX Composite Index 1,996 0.1 GLOBAL PEER COMPARISON: BB - SIZE (all figures in $) In its Global Peer Group of 9 companies BB is ranked BB is ranked fifth (5) by MCap, sixth (6) by Revenue, seventh (7) by Total Assets and ninth (9) by Net Profit. Name (Code) MCap Revenue Net Profit Total Assets Rank of BB 5 6 9 7 BlackBerry (BB) 2.8B 656M (734M) 1.7B Fujian Sunner Development (002299) 3.2B 2.3B 56.3M 2.6B Avicopter - A Share (600038) 3.1B 2.7B 53M 3.8B AviChina Industry & Technology - H Shares (02357) 3B 8.7B 683.3M 19.7B AeroVironment (AVAV) 2.9B 540.5M (176.2M) 824.6M Yuan Longping High-Tech Agriculture - A Share (000998) 2.7B 505.1M (120M) 2B Embraer (EMBR3) 2.5B 4.5B (185.4M) 10.1B Gaona Aero Material (300034) 2.4B 394.2M 46.1M 861.5M QinetiQ Group (QQ.) 2.2B 1.9B 187.3M 2.5B GLOBAL PEER COMPARISON: BB - RELATIVE VALUE INDICATORS In value terms, comparing relative value of its shares, BB is ranked + 6 out of 9 by Price/Sales per share [4.2] Name (Code) Currency Code Last Price Div Yld (%) P/E P/S P/Book Rank of BB by value 6 BlackBerry (BB) CAD 6.4 4.2 Fujian Sunner Development (002299) CNY 19.2 1.0 54.9 1.3 2.5 Avicopter - A Share (600038) CNY 37.9 0.5 57.4 1.1 2.4 AviChina Industry & Technology - H Shares (02357) HKD 3.7 2.4 12.1 0.3 AeroVironment (AVAV) USD 111.5 5.3 9.7 Yuan Longping High-Tech Agriculture - A Share (000998) CNY 15 5.4 10.6 Embraer (EMBR3) BRL 17.2 0.6 Gaona Aero Material (300034) CNY 24.3 0.5 88.4 6.2 6.8 QinetiQ Group (QQ.) GBX 318.8 2.4 12.0 1.1 8.4 USD 1= 1.347661 Canadian Dollar (CAD); 7.296 Chinese Yuan (CNY); 7.832 Hong Kong Dollar (HKD); 5.036 Brazilian Real (BRL) BUYSELLSIGNALS FUNDAMENTALS VALUATION RANKING: BlackBerry vs Canadian Market Out of 1,162 stocks and 44 units in the Canadian Market, BlackBerry is ranked 149th(149) by Market Cap in $, 201st(201) by Revenue, 844th(844) by Total Debt/Equity and 1140th(1140) by Premium to 52-Wk Low. Canadian Avg BB BB Rank Market Cap $ 2.1 B 2.8 B 149 Revenue $ 2.3 B 656 M 201 Total Debt/Equity (the lower the better) 1.02x 0.4x 844 Premium to 52-Wk Low (%) 7.5 49.2 1140 Discount to 52-Wk High (%) 10.7 17.8 1155 Net Profit $ 169.7 M (734 M) 2471 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 $ -544,647,818 119.9 B -0.5 -923,198,572 59.0 Revenue $ 486.8 M 819.8 B 0.1 2.5 B 19.9 Total Assets $ 1.2 B 8,571.6 B 0.01 4.4 B 28.3 MCap $ 2.8 B 1,496.3 B 0.2 5.8 B 48.2 Relative Valuation Indicators: Stock vs Index and Stock vs Sector Description BB S&P/TSX 60 Index Avg. Communication equipment sector Avg. Price/Earnings -3.8 14.2 -5.8 Price/Net Tangible Assets 184.66 2.38 102.92 Total Debt/Equity (the lower the better) 0.43x 1.34x 0.28x MARKET SHARE BlackBerry has a position of market dominance in the Communication Equipment sector. BlackBerry vs Communication Equipment sector [Communication Equipment sector Total in Brackets] Revenue of $884.1 million[55.3% of aggregate sector revenue of CAD3.3 billion; down from 67.2% in the previous year.] GLOBAL RANK [out of 46,830 stocks] AND RANK OF BLACKBERRY IN THE AMERICAN REGION [out of 10,095 stocks] Description Value Global Rank In Am Region MCap ($) 2.8B 4,402 1,610 Total Assets ($) 1.7B 8,345 2,726 Revenue ($) 656M 8,847 2,573 Net Profit ($) (734M) 42,755 8,427 Price to Book 185.6 35,711 5,910 PV1000 (1Year) $* 989 25,999 4,706 $* Change (1Year) % -4.7 25,257 4,555 * 1 year ago CAD 1 = $ 0.73 Sep 29, 2023: CAD 1 equals $ 0.74 RANK OF BLACKBERRY IN THE S&P/TSX 60 INDEX [out of 52 stocks], IN THE CANADIAN MARKET [out of 1746 stocks] AND IN THE COMMUNICATION EQUIPMENT SECTOR [out of 15 stocks] Description Value In S&P/TSX 60 Index In Canadian Market In Communication equipment sector MCap (CAD) 3.7B 53 165 1 Total Assets (CAD) 2.3B 53 416 1 Revenue (CAD) 884.1M 53 402 1 Net Profit (CAD) (989.2M) 52 1,890 17 PV1000 (1Year) CAD 976 45 827 9 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 CAD3.7 billion ($2.8 billion). Within its sector it has a relatively moderate Price/Sales of 4.2. 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 3,677 patents were issued to BlackBerry in the last nine years. In the past year 330 patents were issued, 0.8 times average of 409 patents per year. 12 months ended Sep 29 No. of Patents Issued 2023 330 2022 182 2021 280 2020 347 2019 382 2018 425 2017 583 2016 725 2015 423 Total 3,677 Rank by patents issued in the past 12 months: BlackBerry vs CANADA stocks BlackBerry is ranked 1 by patents issued in the past year out of 2,460 Canada listed companies. A total of 1,612 patents were issued to Canada listed companies in the past year, an average of 14.0 patents per company. BlackBerry received 330 patents in the past 12 months, 504 times average. Currency Synopsis: Canadian Dollar (CAD) % Change of CAD vs Currency Basket Period-Based In the past three years the Canadian Dollar fell 1.1% against the US Dollars. However, in the past year the Canadian Dollar rose 1.2% against the US Dollars. Last Country 1-day % 1-week % 1-Year % 3-Yrs % CAD1=0.739USD United States Of America -0.4 -0.5 1.2 -1.1 CAD1=5.438CNY China 0.4 0.1 4.1 6.8 CAD1=111.141JPY Japan 0.4 0.8 5.0 40.9 CAD1=0.703EUR European Union - 0.6 -6.0 9.7 CAD1=1,002.221KRW South Korea -0.2 1.0 -3.7 14.8 CAD1=1.016SGD Singapore - - -3.4 -1.0 CAD1=1.235NZD New Zealand -0.8 -0.9 -3.8 8.3 CAD1=0.608GBP United Kingdom - 0.1 -7.8 4.5 CAD1=1.146AUD Australia -1.2 -0.7 1.8 8.3 CAD1=5.834HKD Hong Kong 0.5 0.3 1.6 0.7 CAD1=0.68CHF Switzerland -0.2 0.8 -4.8 -1.6 CAD1=8.096SEK Sweden -0.8 -2.7 -1.8 19.7 CAD1=7.906NOK Norway -0.6 -1.1 0.5 11.7 CAD1=13.003MXN Mexico -0.7 1.9 -11.5 -23.0 1 Financials as Reported FY 2023, Past 10 Years Financials as Reported FY 2023, Past 10 Years Financials as reported (FY 2023 [year-ended 28 February 2023 ]) RESULTS OF OPERATIONS AND FINANCIAL CONDITION (In $ Million, except per share data and shares outstanding) INCOME STATEMENT AS REPORTED (FY 2023 [year-ended 28 February 2023 ]) Description $ Million $ Million Feb 28 2023 2022 Change % Revenue 656 718 Down 8.6 Cost of sales 237 251 Down 5.6 Gross margin 419 467 Down 10.3 Operating expenses Research and development 207 219 Down 5.5 Selling marketing and administration 340 297 Up 14.5 Amortization 96 165 Down 41.8 Impairment of goodwill 245 Impairment of long-lived assets 235 Gain on sale of property plant and equipment net -6 Debentures fair value adjustment -138 -212 Improved 34.9 Litigation settlement 165 1,144 469 Up 143.9 Operating loss -725 -2 Deterioration 36,150.0 Investment income (loss) net 5 21 Down 76.2 Income (loss) before income taxes -720 19 Deterioration Provision for (recovery of) income taxes 14 7 Up 100.0 Net income (loss) -734 12 Deterioration Earnings (loss) per share Basic -127.0c 2.0c Deterioration Diluted -135.0c -31.0c Deterioration 335.5 Weighted average number of ordinary share Basic 578,654,000 570,607,000 Up 1.4 Weighted average number of ordinary share Diluted 639,487,000 631,440,000 Up 1.3 BALANCE SHEET AS REPORTED (FY 2023 [year-ended 28 February 2023 ]) Description $ Million $ Million Feb 28 2023 2022 Change % Assets Current Cash and cash equivalents 295 378 Down 22.0 Short-term investments 131 334 Down 60.8 Accounts receivable net of allowance of 1 and 4 respectively 120 138 Down 13.0 Other receivables 12 25 Down 52.0 Income taxes receivable 3 9 Down 66.7 Other current assets 182 159 Up 14.5 743 1,043 Down 28.8 Restricted cash and cash equivalents 27 28 Down 3.6 Long-term investments 34 30 Up 13.3 Other long-term assets 8 9 Down 11.1 Operating lease right-of-use assets net 44 50 Down 12.0 Property plant and equipment net 25 41 Down 39.0 Goodwill 595 844 Down 29.5 Intangible assets net 203 522 Down 61.1 1,679 2,567 Down 34.6 Liabilities Current Accounts payable 24 22 Up 9.1 Accrued liabilities 143 157 Down 8.9 Income taxes payable 20 11 Up 81.8 Debentures 367 Deferred revenue current 175 207 Down 15.5 729 397 Up 83.6 Deferred revenue non-current 40 37 Up 8.1 Operating lease liabilities 52 66 Down 21.2 Other long-term liabilities 1 4 Down 75.0 Long-term debentures 507 822 1,011 Down 18.7 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 - 582157203 voting common shares (February 28 2022 - 576227898) 2,909 2,869 Up 1.4 Deficit -2,028 -1,294 Deterioration 56.7 Accumulated other comprehensive loss -24 -19 Deterioration 26.3 857 1,556 Down 44.9 1,679 2,567 Down 34.6 CASH FLOW AS REPORTED (FY 2023 [year-ended 28 February 2023 ]) Description $ Million $ Million Feb 28 2023 2022 Change % Cash flows from operating activities Net income (loss) -734 12 Deterioration Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Amortization 105 176 Down 40.3 Stock-based compensation 34 36 Down 5.6 Gain on sale of investment -22 Impairment of goodwill 245 Impairment of long-lived assets 235 Gain on sale of property plant and equipment net -6 Debentures fair value adjustment -138 -212 Improved 34.9 Operating leases -16 -16 Steady Other 5 -3 Recovery Net changes in working capital items Accounts receivable net of allowance 18 44 Down 59.1 Other receivables 13 Income taxes receivable 6 1 Up 500.0 Other assets -1 15 Deterioration Accounts payable 2 2 Steady Accrued liabilities -11 -16 Improved 31.2 Income taxes payable 9 5 Up 80.0 Deferred revenue -29 -50 Improved 42.0 Net cash provided by (used in) operating activities -263 -28 Deterioration 839.3 Cash flows from investing activities Acquisition of long-term investments -3 -1 Deterioration 200.0 Proceeds on sale maturity or distribution from long-term investments 35 Acquisition of property plant and equipment -7 -8 Improved 12.5 Proceeds on sale of property plant and equipment 17 Acquisition of intangible assets -34 -31 Deterioration 9.7 Acquisition of short-term investments -514 -916 Improved 43.9 Acquisition of restricted short-term investments Proceeds on sale or maturity of restricted short-term investments 24 Proceeds on sale or maturity of short-term investments 717 1,104 Down 35.1 Net cash provided by (used in) investing activities 176 207 Down 15.0 Cash flows from financing activities Issuance of common shares 6 10 Down 40.0 Payment of finance lease liability Repurchase of 3.75 Debentures Issuance of 1.75 Debentures Net cash provided by (used in) financing activities 6 10 Down 40.0 Effect of foreign exchange gain (loss) on cash cash equivalents restricted cash and restricted cash equivalents -3 -1 Deterioration 200.0 Net increase (decrease) in cash cash equivalents restricted cash and restricted cash equivalents during the period -84 188 Deterioration Cash cash equivalents restricted cash and restricted cash equivalents beginning of period 406 218 Up 86.2 Cash cash equivalents restricted cash and restricted cash equivalents end of period 322 406 Down 20.7 Download BLACKBERRY Financials Past 10 Years Description Feb 23 Feb 22 Feb 21 Feb 20 Feb 19 Income Statement Revenue per share 1.03 1.14 1.85 1.47 EBITDA (M) (624) 184 (931) 46 213 Depreciation (M) 96 165 182 194 136 Tax (M) 14 7 (9) 4 (16) Net profit (734 M) 12 M (1.1 B) (152 M) 93 M EPS (1.27) 0.02 (1.97) (0.27) 0.17 Balance Sheet Equity Share Capital 857 M 1.6 B 1.5 B 2.5 B 2.6 B Retained Earnings (2 B) (1.3 B) (1.3 B) (198 M) (32 M) Total Assets (B) 1.7 2.6 2.8 3.9 4 Current Asset 743 M 1 B 1 B 1.2 B 1.2 B Fixed Asset (M) 25 41 48 70 85 Working Capital (M) 14 646 577 75 723 Cash Flow Operating Cash Flow (M) (263) (28) 82 26 100 Investing Cash Flow (M) 176 207 (65) (188) (375) Financing Cash Flow (M) 6 10 (227) 7 5 Net Cash Flow (M) (81) 189 (210) (155) (270) Description Feb 18 Feb 17 Feb 16 Feb 15 Mar 14 Income Statement Revenue per share 1.71 4.1 6.24 12.97 EBITDA 559 M (1 B) (5 M) 607 M (5.3 B) Depreciation 153 M 186 M 277 M 992 M 1.9 B Tax 1 M (74 M) (81 M) (1.3 B) Net profit 405 M (1.2 B) (208 M) (304 M) (5.9 B) EPS 0.76 (2.3) (0.4) (0.58) (11.18) Balance Sheet Equity Share Capital (B) 2.5 2.1 3.2 3.4 3.6 Retained Earnings (55 M) (438 M) 768 M 1 B 1.4 B Total Debt 782 M 591 M 1.3 B 1.7 B 1.6 B Total Assets (B) 3.8 3.3 5.5 6.6 7.6 Current Asset (B) 2.5 1.7 3 4.2 4.8 Fixed Asset 64 M 91 M 412 M 556 M 1.1 B Working Capital (B) 2.1 1.1 2 2.8 2.6 Cash Flow Operating Cash Flow (M) 704 (224) 257 813 (159) Investing Cash Flow (630 M) 724 M (439 M) (1.2 B) (1 B) Financing Cash Flow (10 M) (722 M) (78 M) 16 M 1.2 B Net Cash Flow (M) 64 (222) (260) (344) 25