Samsung BBRY Pitch Book Eduard Biller Paul Dawson

Samsung / BBRY Pitch Book Eduard Biller Paul Dawson Mashada Kamal Simon Foucher

AGENDA 1 1 Deal Overview 2 Industry 3 Target Overview- Blackberry 4 Business Valuation 5 Synergies & Forecast

DEAL OVERVIEW

TERM SHEET Target- Black. Berry Ltd. (NASDAQ: BBRY) Acquirer- Samsung Electronics Co. Ltd (KRX: 005930) Purchase Price Total deal size: Implied price per share: Transaction fees: Reservation price: $5, 659 million $10. 72 $40 million $15. 76 Tax Considerations Form: Consideration: Purchase accounting 100% cash Legal Asset purchase Spin-off unused entities Synergy Value Combined synergy $14. 3 billion with payback period of 3 -4 years Deal Overview Industry Target Overview Valuation Synergy

TERM SHEET Transaction process requirements Termination penalties: Other: Shareholder vote: Closing Date: Regulatory: Cash penalty of $100 m plus out of pocket expenses up to $20 m No shop clause Blackberry and Samsung shareholders must approve the deal. March 1 st, 2016 Approval through Industry Canada Act required Social Issues Organization structure: Executives: Board seats: Headquarters: Name: Reduction in workforce: Deal Overview Blackberry assets acquired by Samsung. Blackberry dissolved. Executives responsible for security and R&D retained None Canada HQ closed but R&D functions to remain in Canada Blackberry brand kept for marketing purposes 6, 000 out of 7, 000 total employees. Retain R&D staff. Industry Target Overview Valuation Synergy

DEAL RATIONALE Patents • Thousands (44, 000+) of patents Security • Enterprise level security for their Android-based platform Competitiveness • Block competitors (Apple and others) from acquiring the most admired enterprise security platform Deal Overview Industry Target Overview Valuation Synergy

BIDDING STRATEGY RECOMMENDED INITIAL BID OF $10. 72 Bidding should be bound by the following: • Upper bound of $15. 76 • Lower bound of $10. 72 Blackberry is widely considered to be on the selling block • Current market share may already contain some acquisition premium • Samsung must bid high enough to win over Blackberry shareholders and avoid a bidding war with other acquirers that may jump in Deal Overview Industry Target Overview Valuation Synergy

ACCRETION/DILUTION Since this is essentially an asset purchase, the acquisition of Blackberry will have no immediate impact on EPS Deal Overview Industry Target Overview Valuation Synergy

INDUSTRY Global Mobility and Communication Equipment Manufacturing (CEM)

GLOBAL MOBILITY Industrial trends 10% CAGR industry growth 21% shipments to Chinese market Duopoly- Apple and Samsung captures 2/3 of revenue Rise of Chinese manufacturers o Established manufacturers are being squeezed The importance of intellectual property is paramount Deal Overview Industry Target Overview Valuation Synergy

CEM INDUSTRY IN CANADA Industrial trends – – – Deal Overview Industry Target Overview Strong competition Imports from China increasing at 6. 6% Exports from Canada declining at 9. 9% Industry profit is decreasing Increasing consolidation Experiencing increased import penetration Valuation Synergy

TARGET OVERVIEW BLACKBERRY

BLACKBERRY OWNERSHIP STRUCTURE PRIMECAP (Growth & agg Growth funds) 14% [CATEGORY NAME], [VALUE] FAIRFAX FINANCIAL 9% OTHER INSTITUTIONAL 37% Only 2 concentrated investors Deal Overview Industry Target Overview Valuation Synergy

BLACKBERRY BUSINESS FY 2015 Revenue trend 18, 000 1% 60. 00 16, 000 7% 50. 00 14, 000 49% 12, 000 40. 00 10, 000 30. 00 8, 000 6, 000 43% 20. 00 4, 000 10. 00 2, 000 0 0. 00 FY 2011 FY 2013 Services Deal Overview Hardware Industry Software Other Target Overview FY 2015 Hardware Software Valuation FY 2014 Number of Units Sold Synergy Millions Segment contribution

Black. Berry BUSINESS Profitability Liquidity & Solvency 60% 4. 50 3. 96 40% 4. 00 50% 3. 50 3. 06 20% 40% 3. 00 0% 2011 2012 2013 2014 2015 LTM 2015 -20% 30% 2. 06 2. 09 2. 15 2. 14 2. 50 2. 00 20% -40% -60% 1. 50 1. 00 10% 0. 50 -80% 0% - 2011 -100% Return on Assets % Deal Overview Return on Equity % Industry Net Income Margin % Target Overview Current Ratio Valuation 2012 2013 Total Debt/Equity Synergy 2014 2015 LTM 2015 Total Liabilities/Total Assets

BUSINESS VALUATION Comparables and Transaction Multiples

STOCK PERFORMANCE Deal Overview Industry Target Overview Valuation Synergy

COMPARABLES Deal Overview Industry Target Overview Valuation Synergy

TRANSACTION MULTIPLES Deal Overview Industry Target Overview Valuation Synergy

BUSINESS VALUATION Discounted Cash Flow (DCF)

DCF SCENARIO In US$ mill DCF Scenario Without Patents With patents Price in US$ 15. 76 8. 93 6. 22 5. 53 4. 16 Best Case Deal Overview 3. 3 Base Case Industry Target Overview Worst Case Valuation Synergy

VALUATION SUMMARY BID PRICE $10. 72 RESERVATION PRICE $15. 76 DCF 15. 76 5. 53 BID PREMIUM 35% [VALUE] Transaction Comparables 57. 46 66. 51 [VALUE] 0 Deal Overview 10 20 Industry 30 Target Overview 40 50 Valuation 60 70 Synergy

BLACKBERRY INTEGRATION WITH SAMSUNG Samsung division 22 Blackberry Fit with Samsung Smartphones Scrap it/Sell it Enterprises Gives a major market share since Android is insecure Mobile Devices Implementation/Selling possible Services and Support Software Implementation into their android version R&D Patents Major upsides possible, Implementation, royalties or partial sale possible Deal Overview Industry Target Overview Valuation Synergy

SYNERGIES AND FORECAST FOR SAMSUNG

LOSING MARKET SHARE WHILE ANDROID GAINS POPULARITY Samsung Apple Huawei Xiaomi 35% 80% 83% 69% 30% 25% 20% 15% 10% 5% 2012 2013 2014 0% 2015 17% 5% 3% 13% 3% 3% 2012 Android 2013 i. OS Industry Target Overview Valuation 2014 Windows Phone Present need to react Deal Overview 12% 1% 3% Synergy 14% 0% 3% 2015 Black. Berry OS

SYNERGIES Top line growth Bottom line savings • Leverage BBRY’s “secure” reputation and distribution network • Increased sales in enterprise segment • Integrate BBRY’s secured network infrastructure • Decommission expensive (and unsuccessful “KNOX” project • Significantly reduce spending in R&D • Also savings in Sales/Distribution 25 Deal Overview Industry Target Overview Valuation Synergy

Top line growth Initial 3 B$ sales from enterprise segment BBRY Historical Revenues $ 30 $ 25 Potential to reach $25 B (assuming 10% growth) $ 20 $ 15 $ 10 $5 $ 18 $ 16 $ 10 $6 $2010 2011 2012 Enterprise 26 2013 Consumer 2014 $3 2015 At 30% margins, additional profits 1 -8 B$

SYNERGIES FROM SAVINGS IN R&D Samsung’s Revenue Breakdown per BU 22% Prorated investment in IM (B$) $ 25 $ 20 49% $ 15 $ 10 11% $5 $ 10 $- 17% IM $6 Capex Semiconductor DP IM CE $5 $6 $5 R&D Sales Other BUs Retiring KNOX frees 1 B$ to re-invest in Sales 27 Deal Overview Industry Target Overview Valuation Synergy

SUMMARY Incremental Revenues Cogs Profits Transaction cost (6%) Integration Cost Savings R&D Increased sales mkt Impact on EBITDA Discounted CF (12%) 2015 A $ 3. 0 $ (2. 1) $ 0. 9 $ (0. 4) $ (0. 5) $ 1. 0 $ (1. 0) $ 0. 40 $ 0. 40 2016 E $ 5. 4 $ (3. 8) $ 1. 6 $ (0. 5) $ 1. 0 $ 2. 12 $ 1. 96 2017 E $ 8. 6 $ (6. 0) $ 2. 6 $ 1. 0 $ 3. 59 $ 3. 08 2018 E $ 12. 1 $ (8. 5) $ 3. 6 $ 1. 0 $ 4. 63 $ 3. 67 TV $ 20. 2 $ (14. 1) $ 6. 0 $ 1. 0 $ 7. 05 $ 5. 18 Looking at a 3 -4 year payback period and 14. 3 B$ NPV Deal Overview Industry Target Overview Valuation Synergy

Risks Regulatory approval • Form consortium with CND PE Firm FOREX fluctuations since cash deal • CND$ currently extremely favorable Potential proxy fight with large shareholders Ability to maintain key R&D staff amidst downsizing Unable to spin off unused acquired assets (HW division) 29 • BBRY depreciated to value trap status • BBRY technology already mature • Profitable deal regardless

Questions?

LIST OF REFERENCE 1. http: //www. gsmamobileeconomy. com/GSMA_Global_Mobile_Economy_Report_2015. pdf 2. http: //www. lenovo. com/transactions/pdf/CCS-Insight-Smartphone-Market-Analysis-Full-Report-07 -2014. pdf 3. http: //0 -clients 1. ibisworld. com. mercury. concordia. ca/reports/ca/industry/competitivelandscape. aspx? entid=746#IG 4. http: //0 -clients 1. ibisworld. ca. mercury. concordia. ca/reports/us/industry/default. aspx? entid=746 5. https: //home. kpmg. com/xx/en/home/services/tax-tools-and-resources/tax-rates-online. html 6. http: //pages. stern. nyu. edu/~adamodar/ 7. http: //pages. stern. nyu. edu/~adamodar/New_Home_Page/datafile/ctryprem. html 8. http: //www. idc. com/prodserv/smartphone-market-share. jsp 31

GOOD TECHNOLOGY’S REPORT q i. OS significantly outpaced Android in regulated industries such as education (83 percent), public sector (80 percent), and financial services (76 percent). q Android gained wider adoption in less regulated industries, increasing to 47 percent in high tech sectors and 44 percent in energy sectors. q Secure browsing led all app categories for the second quarter in a row, representing 21 percent of all apps deployed by organizations. q Due to the fact that RIM devices use only the Black. Berry® Enterprise Server for corporate email access, Good does not have insight into Black. Berry handset activation trends; and they are not reflected in this report. Deal Overview Industry Target Overview Valuation Synergy

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