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Annual Report 2013


Message from the CEO CEO Mike Lazaridis

Fiscal 2013 was another year of exceptional growth and accomplishment with consistent, strong financial performance, further expansion of global market share, and record shipments of over 52 million BlackBerry® smartphones. These achievements are a direct reflection of the dedication and hard work of more than 17,000 employees and the strength of our business partnerships around the world.

The phenomenal success of the BlackBerry solution began in the enterprise market and this segment remains important to RIM’s growth strategy for the future. The unique security architecture of the BlackBerry platform is valued by corporations and governments around the world and continues to stand out in the marketplace.

Our confidence in the year ahead is made stronger by the talented people in our organization, the groundwork we laid in Fiscal 2011, and our continued commitment to innovation and growth. We believe the new BlackBerry® PlayBook™ tablet and will redefine the limits of mobile computing as one of the world’s Leading mobile platforms for both businesses and consumers.

Blackberry delivered record revenue and earnings growth in Fiscal 2013. Revenue grew 33.1% over the prior year to a record $19.9 billion and net income grew 38.8% to $6.34 per share fully diluted. We continue to invest in innovation with Research and Development expenses representing approximately 6.8% of revenue for the year.

We are entering fiscal 2014 with a clear direction and set of priorities that will leverage our strong competitive advantages in order to capitalize on what we believe will be another year of tremendous opportunities for Research In Motion.

Sales and marketing expense represented 12.1% of revenue as we expanded these efforts to drive growth in international markets and new market segments. RIM continues to have a strong balance sheet and generated approximately $4 billion from cash operations during fiscal 2011, exiting the year with approximately $1.8 billion in cash and equivalents.

Mike Lazaridis CEO and President

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Blackberry Annual Report


Amplified Blackberry

2013 and beyond As we move into the new fiscal year, we believe the uncompromised user experience delivered by the BlackBerry PlayBook tablet will also win over new consumers as they see the benefits and advantages of the product. RIM has designed the BlackBerry PlayBook tablet to be both professional grade and consumer friendly since so many customers use mobile devices for both work and personal purposes. In fiscal 2013, the number of registered application developers grew by more than 100,000 to over 350,000 and Blackberry remains committed to delivering a powerful software and services platform to enable these developers to create, distribute and monetize innovative and compelling offerings for BlackBerry smartphones.

Leveraging more than 25 years of experience and a strong brand for wireless solutions in both business and consumer segments, Blackberry is set to expand the parameters of mobile innovation yet again.

52

million

22

Billion

37

Million

Number of smartphone shipments

Dollars in annual revenue

Devices sold in the US

To further extend the flexibility in payment options for BlackBerry subscribers we are also introducing the BBM Mobile Gifting platform which will integrate with BlackBerry App World and carrier billing systems to allow BlackBerry subscribers to seamlessly and instantaneously gift airtime, applications and other carrier services from one subscriber to another.

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Financial Highlights

The Company’s sales and marketing efforts include collaboration with strategic partners and distribution channels, as well as its own supporting sales and marketing teams, to promote the sale of its products and services.

Summary Through the development of integrated hardware, software and services that support multiple wireless network standards, Blackberry provides platforms and solutions for seamless access to information, including email, voice, Instant messaging, Internet based applications and browsing.

Statement of Operations data

Revenue Gross Margin Research and development and selling, marketing and administration Amortization Litigation Investment income Income before income taxes Provision for income taxes Net income

Blackberry’s portfolio of award-winning products, services and embedded technologies are used by thousands of organizations and millions of consumers around the world and include the BlackBerry» wireless solution, software development tools and other software and hardware.

Febuary 26, 2012

Febuary 27, 2011

Febuary 28, 2009

$19,907 $8,825

$14,953 $6,584

$11,065 $5,097

3,751 438

2,180 195

8 4,644 1,233 $3,411

2,872 310 164 28 3,226 809 $2,457

79 2,801 908 $1893

$6.36 $6.34

$4.35 $4.31

$3.35 $3.30

44.3% 6.8% 12.1%

44.0% 6.5% 12.8%

46.1% 6.2% 13.5%

$2,698 $12,875 $8,938

$2,870 $10,205 $7,603

$2,239 $8,101 $5,874

Earnings per share Basic Diluted Operating data [percentage of revenue] Gross Margin Research and development Selling, marketing and administration Balance Sheet Data Cash, cash equivalents, short term investments and long term investments Total Assets Shareholders’ equity

(in millions of U.S. dollars, except per share amounts)

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Blackberry Annual Report


Fiscal 2013 Geographical Revenue Mix

Canada 7.1% UK

11.1%

US

39.3%

Other

42.5%

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295 Phillip Street, Waterloo, Ontario Canada Tel: (519) 888-7465 Fax: (519) 888-7884 www.rim.com www.blackberry.com


Annual report