Annual Report ProjectAnnual Report Project

Research In Research In MotionMotion

AboutAboutFounded:

Type of Business:

Founder:

Current CEO(s):

Headquarters:

Area served:

Slogan:

1984

Manufacturing & Services

Mike Lazaridis

Mike Lazaridis & Jim Balsillie

Waterloo, Ontario, Canada

Worldwide

"Always On, Always Connected"

Co-CEOs letter to the Co-CEOs letter to the shareholdersshareholders

RIM had exceptional growth in 2010

Blackberry’s growth was 80% in 2010

“At RIM, we build groundbreaking wireless technology. We pioneered push email & made smartphones before most people knew what a smartphone was.”

How interesting was the How interesting was the report?report?

Got interested as it is one of the Got interested as it is one of the leading smartphone brands in the leading smartphone brands in the world nowworld now

Really interesting as it was my first Really interesting as it was my first time experience in learning in detail time experience in learning in detail an annual report of a companyan annual report of a company

Everything were displayed clearly Everything were displayed clearly with adequate informationwith adequate information

For Potential InvestorsFor Potential Investors

• Exceptional growth of revenue

• Revenue growth was 35%, from approximately 11 billion to approximately 15 billion

• BlackBerry subscriber account base grew by almost 80% in fiscal 2010.

• International subscriber rate nearly doubled.

• BlackBerry was the number one selling smartphone brand in North America in 2010 fiscal year.

Social ResponsibilitiesSocial Responsibilities

Corporate PhilanthropyCorporate Philanthropyo RIM believes that it is important to give back to the local,

national and global communities in which they operate.

o The primary focus of RIM’s corporate philanthropy program is outreach to students in science, engineering and business programs.

o Donated 4% of its gross sales to help feed families.

Environment - Environment - BlackBerry BlackBerry Recycling ProgramRecycling Programo Reduce the amount of electronic waste that ends up in landfills. 

o Uses reusable plastic and leather on phones

Financial HighlightsFinancial Highlights

Total RevenueTotal Revenue Gross Profit:Gross Profit: Net Income:Net Income: Total Assets: Total Assets: Total Liabilities:Total Liabilities: Shareholder’s Shareholder’s

Equity:Equity:

$14,953,224,000$14,953,224,000 $6,584,266,000$6,584,266,000 $2,457,144,000$2,457,144,000 $10,204,409,000$10,204,409,000 $2,601,746,000$2,601,746,000 $7,602,663,000$7,602,663,000

CalculationsCalculationsRate of Return on Net Sales = (Net Profit ÷ Total Revenue) x 100= ($3,237,870 / $14,953,224) x 100 = About 21.7%($3,237,870 / $14,953,224) x 100 = About 21.7%

Gross Profit Percentage = (Gross Profit ÷ Total Revenue) x 100= ($6,584,266 / $14,953,224) x 100 = About 44%($6,584,266 / $14,953,224) x 100 = About 44%

Average Owner’s Equity = (Total Owner's Equity for 2009 + Total Owner's Equity for 2010) ÷ 2= ($7,602,663 + $5,874,128) / 2 = $6,738,395.5 ($7,602,663 + $5,874,128) / 2 = $6,738,395.5

Rate of Return on Average Owner’s Equity = (Net Profit ÷ Average Owner's Equity) x 100= ($3,237,870 / $ 6,738,395.5) x 100% = About 48.1%($3,237,870 / $ 6,738,395.5) x 100% = About 48.1%

DividendsDividends

• Hasn’t paid a dividend in the Hasn’t paid a dividend in the previous 3 fiscal yearsprevious 3 fiscal years

• Has no expectation of paying cash Has no expectation of paying cash dividends in the immediate futuredividends in the immediate future

Is the company profitable?Is the company profitable?

Highly profitable for 2010 fiscal yearTotal Revenue and Gross profit increased substantially compared to the previous yearThere is an increase of $564.5 million in net profit compared to last year which mainly came from the sale of devices.Averaged 80% annual growth in the subscriber base since the launch of blackberry

Spent a lot of money on playbooks, but it’s not a success yetBlackBerrys are a passing fadDemand may decrease in the future Competition is increasing as many new brands are coming out now

ReflectionReflection I tried to understand annual reports a few times in the I tried to understand annual reports a few times in the

past but got bored within a few minutes. The problem past but got bored within a few minutes. The problem was simply that I didn’t understand anything. But was simply that I didn’t understand anything. But during this project, it was entirely vice-versa. So it during this project, it was entirely vice-versa. So it wasn’t a big task overall. The annual report was long wasn’t a big task overall. The annual report was long but the check list that was given helped me to but the check list that was given helped me to systematically learn the report. Before, I knew about systematically learn the report. Before, I knew about blackberry only like anyone else but this project blackberry only like anyone else but this project allowed me to know more about the company and its allowed me to know more about the company and its statistics.statistics.

During the preparation, I wanted a different layout for every slide which in turn made it difficult for me to choose contrast colors so that the slides will be easily visible to read.

What did I learn?What did I learn?

• Studying an annual report, will help to understand about the growth and future prospects of a company very well.

• Got more familiar with the terms that were discussed in the financial scenario.