Paragraph 1

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

BlackBerry is securing a connected world, delivering innovative solutions across the entire mobile ecosystem and beyond. The Company secures the world’s most sensitive data across all endpoints – from cars to smartphones – making the mobile-first enterprise vision a reality. Founded in 1984 and based in Waterloo, Ontario, the Company operates offices in North America, Europe, Middle East and Africa, Asia Pacific and Latin America. The Company’s common shares are listed on the NASDAQ Global Select Market (“NASDAQ”) (NASDAQ: BBRY) and the Toronto Stock Exchange (“TSX”) (TSX: BB), and its Debentures are listed on the TSX (TSX: BB.DB.U).

The Mobile Communications Industry

Improvements in wireless network infrastructure and the rapid proliferation of mobile devices and applications in recent years are transforming the way that enterprises and individuals communicate and collaborate. In the enterprise, the mobile platform is becoming the primary computing platform and users now expect to be as productive on their mobile devices as they are on their desktop and laptop computers, with secure, reliable access to their data, applications and services. Enterprises are increasingly embracing mobility strategies by deploying devices internally and by enabling mobile-first interactions with external business partners and customers. In implementing these mobility strategies, organizations demand solutions that deliver a rich, flexible user experience without compromising on centralized management or enterprise-grade security.

Security is increasingly important in the mobile environment, with cybercriminals developing ever more sophisticated methods of gaining access to sensitive intellectual property and personal information. Recent data breaches have exposed the potential for hacking to cause significant financial and reputational damage and even to threaten national security. Enterprises, and governments in particular, require hardware and software that can protect their data, ensure privacy and demonstrate compliance with applicable security regulations.

From a hardware perspective, the enterprise market for smartphones has become increasingly characterized by a combination of enterprise-deployed devices and devices that are purchased by consumers and also used in the enterprise environment, commonly referred to as the Bring Your Own Device or BYOD model. Consumer device offerings are chosen by the individual user based on cost and an affinity for a certain user interface, form factor, and specific supported software features or capabilities, including third-party applications. These consumer devices are supported in the enterprise environment by information technology (“IT”) departments for access to corporate messaging and applications. As the market has evolved, IT departments now look for enterprise mobility solutions that can handle a variety of devices and a range of deployment models.

From a software perspective, EMM software solutions designed for centralized administration by enterprise IT departments typically include on-premise software products or cloud-based services that are deployed in conjunction with corporate messaging and application services. These products are used to manage and secure both company-issued and personally-owned devices within the enterprise environment. As this market continues to mature, these solutions have expanded beyond device management to include enhanced mobile enterprise applications and secure collaboration features.

Recently the “Internet of Things” or “IoT” has also emerged as a driving force for the expansion of new wireless applications, with many mobile communications industry participants establishing relationships, practices and partnerships focused around communication between devices. As the IoT continues to develop, companies enabling these connected devices will be faced with many of the same challanges faced by enterprises enabling devices in their workplaces.

Strategy

The Company’s operating unit organizational structure consists of the Devices business, Enterprise Solutions and Services (which includes the Company’s newest practice, Professional Cybersecurity Services), BTS, and Messaging. Across all businesses, BlackBerry products and services are widely recognized in the market for productivity and security, and the Company believes that it delivers the most secure end-to-end mobile enterprise solutions in the market. With these core strengths, the Company’s broad portfolio of products and services is focused on serving enterprise customers, particularly in regulated industries and select vertical markets, including government, financial services, legal and healthcare.

The Company has been executing a strategy to leverage its strengths in mobility management and security to refocus its business in the Enterprise Solutions and Services space, while maintaining a presence in the highly competitive smartphone and devices market. This strategy includes increasing the Company’s product and service offerings through strategic acquisitions and targeted growth in internal investments. The Company’s goal is to maintain its market leadership in the enterprise mobility segment by continuing to extend the functionality of its enterprise software infrastructure beyond EMM, to offer the most comprehensive and secure mobile platform and, on top of this extensive foundation, deliver vertical solutions and endpoint management in the IoT.

BlackBerry has aligned its businesses and operations around the following areas to drive greater efficiency and speed in bringing new offerings to market, while optimizing assets and capabilities across all businesses in support of the Company’s overall strategy and financial objectives.

Devices

Although the Company is refocusing its business on Enterprise Solutions and Services, the Devices business has historically been the focus of the Company’s operations, with the innovative and secure range of BlackBerry smartphones and other devices. The BlackBerry brand, design, security and other product features continue to have significant appeal to a wide range of smartphone users, particularly in the enterprise space. The Company’s Devices business strategy is focused on delivering smartphones that meet the needs of the modern user, including protecting personal privacy while enabling the user to securely conduct business. In support of this strategy, in fiscal 2016 the Company launched the PRIV, an Android-based device with strong security and privacy features and support of the full Android application ecosystem. The Company also offers and supports devices using the BlackBerry 10 operating system, the gold standard for mobile security, including the Classic, Passport and Leap.

Enterprise Solutions and Services

Security, reliability, productivity and collaboration are hallmark strengths of the Company’s platform and are instrumental to the Company’s success in the enterprise market. The Company intends to continue to strategically focus on regulated industries that rely on stringent security needs, as well as on the government market where the Company is the only MDM provider to obtain both ATO and FOC status with the DoD. The Company also intends to maintain and strengthen its position as an EMM leader by continuing to enhance its enterprise software offerings and long-term product strategy.

With the acquisitions of Good and Watchdox in fiscal 2016, the Company has expanded its ability to offer a unified, secure mobility platform with applications and services for any mobile device on any operating system, supported by security that has been certified by governments around the world, embedded in every component of the mobility infrastructure. The Good Dynamics platform and Good Work are being integrated with BES12. The initial integrated offering is now available to customers through the Good Secure EMM Suites. This offering provides support for both mobile and desktop operating system devices including BBOS and BlackBerry 10, iOS, Android OS and Windows. As a result of the combination of the BlackBerry and Good platforms, the Company believes it has the largest installed base in the EMM market.

In addition, the Company has expanded its enterprise software portfolio through the internal development of identity management and authentication solutions, as well as through acquisitions of companies focused on security and productivity, including Movirtu and WatchDox.

The acquisition of Encription in February 2016 led to the announcement of the Company’s new Professional Cybersecurity Services practice, which will further expand the Company’s security portfolio. The Company’s new cybersecurity consulting services and tools, combined with the Company’s existing security solutions, will help customers identify the latest cybersecurity threats, develop risk appropriate mitigation strategies, implement and maintain IT security standards and techniques and defend against the risk of future attacks. This new practice will address strategic security, technical security, automotive and IoT security and detection, testing and analysis.

The acquisition of Secusmart in fiscal 2015 supported the Company’s continued focus on the government market and regulated industries. With this acquisition, the Company strengthened its secure enterprise mobility portfolio by adding a leading secure voice and text messaging solution with Secusmart’s advanced encryption and anti-eavesdropping capabilities.

The Company plans to focus on additional value-added services to further enhance its enterprise offerings.

BlackBerry Technology Solutions

The BTS business is comprised of five units: QNX, Certicom, Paratek, the BlackBerry IoT Platform, and Intellectual Property and Patent Licensing (“IPPL”). The BTS unit was created to position BlackBerry’s technology licensing businesses together under one leadership umbrella with a view to creating new revenue streams and enhancing value from the Company’s technology.

The largest BTS business unit is QNX. QNX is a global provider of operating systems, development tools, and middleware for the automotive, medical, industrial, consumer, networking, and defense markets. QNX is the recognized leader in software for automotive electronics, with products deployed in digital instrument clusters and in the infotainment and telematics systems of more than 60 million vehicles worldwide. Over 40 automotive original equipment manufacturers (“OEMs”) use QNX technology, in brands such as Audi, Bentley, BMW, Buick, Chevrolet, Chrysler, Ford, GMC, Honda, Hyundai, Jaguar, Kia, Land Rover, Maserati, Mercedes-Benz, Porsche, Toyota, and Volkswagen. With its field-proven technology and suite of safety and security certifications, QNX is also a preferred supplier for companies building medical devices, train-control systems, industrial robots, hardware security modules, building automation systems, green energy solutions, and other mission-critical and safety-critical applications. QNX continues to attract new business through a growing portfolio of innovative products, including, an operating system for automotive safety, a platform for advanced driver assistance systems (“ADAS”) and automated driving, a comprehensive in-car acoustics solution, hypervisor software that manages safety-critical systems in real-time, and a wireless framework that enables customers to upgrade their cellular and Wi-Fi hardware without having to recode or modify applications.

Certicom specializes in applied cryptography and key management, offering both software components and end-to-end security solutions targeted at bandwidth and resource-constrained applications. Certicom’s asset management technology is deployed in over 400 million high value ASICs (application specific integrated circuit customized for a particular use) and its certificates are used in over 100 million IoT devices.

Paratek designs, develops and licenses its adaptive radio frequency (“RF”) antenna tuning technology. With the growth of RF bands to be covered and stringent performance requirements imposed, RF antenna tuning is becoming a key differentiator to improve the antenna performance of smartphones. Paratek technology has been adopted by numerous OEMs and has many handset design wins.

The BlackBerry IoT Platform connects data generators with data consumers via an intelligent platform and application service modules, all hosted on a global, scalable, multi-tenant network protected by BlackBerry’s recognized security features. The BlackBerry IoT Platform intends to focus initially on applications for asset tracking, such as BlackBerry Radar, a device and software interface for tracking trucks and containers, for reporting locations and sensor data, and for enabling custom alerts and fleet management applications.

The IPPL unit manages the Company’s extensive patent portfolio, which includes both standards-essential patents and implementation patents and has an average and median remaining life of over 11 years. The Company is monetizing its patent portfolio through an outbound licensing program, including, for example, through its patent cross-licensing agreement with Cisco entered into in fiscal 2016.

Messaging

In fiscal 2016, the Company expanded its focus and footprint in the messaging business with the acquisition of AtHoc, a secure, networked crisis communications solutions market leader. The acquisition of AtHoc enhances the Company’s mission to provide secure communication solutions and complements the Company’s enterprise portfolio of cross-platform solutions and trusted global network to enable new capabilities for safety, security and mission-critical business communications.

The Company has expanded the features and functionality of BBM through platform enhancements and innovative services. The Company monetizes the BBM platform through in-app advertising, a virtual goods store, and the subscription-based BBM Protected offering for secure enterprise messaging.

Strategic objectives

The following objectives are important to the success of the Company’s strategy in all areas of its business:

• Seeking strategic alliances and relationships. BlackBerry intends to continue developing new and existing strategic alliances, which may involve closer collaboration with other technology leaders to maintain and enhance the Company’s competitive position. Potential areas of strategic alliances and relationships include, but are not limited to, software application developers and companies, global telecommunications carriers, intranet and Internet applications and portal companies, Internet social networking providers, multimedia content providers, gaming platform vendors, consumer electronics retailers, OEMs, microchip and other manufacturers, and global systems integrators.
• Targeted acquisition and investment strategy. BlackBerry will continue to evaluate potential acquisitions and make investments in products that provide opportunities for growth or expansion of the BlackBerry value proposition. These may include acquisitions and investments related to software, wireless solutions, security and applications, among others. The Company also intends to continue to acquire rights in intellectual property in various forms and technologies when appropriate opportunities arise.
• Expanding distribution. The Company’s ability to grow its service and software revenue is dependent on its ability to expand its distribution capability, including by developing and expanding relationships with indirect partners, resellers and carriers. The Company is also focusing on building its direct enterprise sales force.
• Achieving best in class operational metrics. The Company has significantly improved its operational metrics through the Resource Alignment Program and its previous cost and management initiatives. BlackBerry intends to further simplify business processes and target areas of the business where greater efficiencies can be achieved. The Company is focused on driving best-in-class operational metrics across all of its businesses, with the goal of continuing to reduce organizational complexity while increasing individual and business unit accountability and aligning employees behind the BlackBerry vision, mission and values.
• Continuing to invest in highly qualified personnel. BlackBerry believes that the quality and skills of its employees are key factors in achieving success. The Company intends to continue its recruiting strategies and operations worldwide to support its product development and growth strategies and ensure the needed strategic capabilities are in place. BlackBerry intends to retain, attract and develop talented employees to drive organizational performance and foster an environment of innovation, learning and development within a cost effective organization.