HY1 2012 Results u-blox Holding AG · 2015. 9. 3. · Operational highlights H1/2015 •33.1% revenue increase as compared to the first half of 2014 •Strong expansion in automotive

locate, communicate, accelerate

H1/2015 Results

u-blox Holding AG

September 4, 2015

Thomas Seiler, CEO

Roland Jud, CFO

© u-blox Holding AG, Sep 4, 2015

Disclaimer

Slide 2

This presentation contains certain forward-looking statements. Such forward-looking

statements reflect the current views of management and are subject to known and

unknown risks, uncertainties, assumptions and other factors that may cause actual results, performance or achievements of the Group to differ materially from those

expressed or implied herein.

Should such risks or uncertainties materialize, or should underlying assumptions prove

incorrect, actual results may vary materially from those described in this presentation.

u-blox is providing the information in this presentation as of this date and does not undertake any obligation to update any forward-looking statements contained in it as a

result of new information, future events or otherwise.


Agenda

• Introduction

• Operational highlights H1/2015

• Financial results H1/2015

• Business review

• Outlook

• Q&A

Slide 3

Operational highlights H1/2015

• 33.1% revenue increase as compared to the first half of 2014

• Strong expansion in automotive sector

• Consumer market continued growth in volume and value

• Industrial markets good progress

• One acquisition

• January 2015: Lesswire (automotive short range modules business)

• Product innovation

• 6 new cutting-edge products launched

© u-blox Holding AG, Sep 4, 2015 Slide 4

u-blox group H1/2015


Change H1/2015

to H1/2014

Revenue 161.9m - 33.1%

Gross profit 72.8m 44.9% 26.3%

EBITDA 36.5m 22.6% 33.9%

Operating profit (EBIT ) 24.8m 15.3% 31.9%

Net profit, attributable to owners of

the parent 15.0m 9.2% 3.9%

Net cash generated from

operating activities 20.5m 12.7% 31.1%

Key figures Amount CHF In relation to

revenue

173.1

219.8

270.0

105.1

121.6

161.9

35.246.2

58.6

21.2 27.3

36.5

0

50

100

150

200

250

300

2012 2013 2014 H1/13 H1/14 H1/15

Revenue EBITDA

(million CHF)

Revenue and EBITDA


+ 33.1%

Comments Revenue and EBITDA

• Strong growth of revenues

• + 33.1% compared to H1/14 (+ 30.9% organic, +2.2% acquisitions)

• +30.0% at prior year exchange rates

• Strong +33.9% growth of EBITDA

Industrial

Consumer

Automotive

Markets trends


Note: Estimate

• Excellent expansion in automotive sector – navigation, telematics-box

• Consumer market growth with wearable devices

• Industrial markets strong progress in tracking applications

Comments Revenue split per market for H1/15

0

50

100

150

200

250

300

2012 2013 2014 H1/13 H1/14 H1/15

APAC Americas EMEA

25%

25%

46%

41%

28%

35% 48%

26%

26%

48%46%

25%

29%

43.7

27%

30%

42%

28%

24%

(million CHF)

Revenues by geography


Note: based on customers’ billing location

Growth in all geographic regions compared to H1/14

• Asia Pacific +29.9%

• EMEA: +24.3%

• Americas: +48.1%

Comments Revenues by geographic region

+ 33.1%

46.9% 46.0% 45.4%46.7%

47.4% 44.9%

0%

10%

20%

30%

40%

50%

60%

0

20

40

60

80

100

120

140

2012 2013 2014 H1/13 H1/14 H1/15

Gross Profit % of revenue

(million CHF) % of revenue

Gross profit


• Increase in gross profit to CHF 72.8m in H1/15 from CHF 57.6m

• Growth of gross profit of +26.3% compared to H1/14

• Gross profit margin in H1/15 declined compared to 2014 due to changes in the product mix

Comments Gross profit / Gross profit margin

+ 26.3%

0

1

2

3

4

5

6

7

0

5

10

15

20

25

30

2012 2013 2014 H1/13 H1/14 H1/15

Antaris u-blox 5 u-blox 6 u-blox 7 u-blox M8 ASP

(million pcs) (CHF)

0

2

4

6

8

10

12

0

5

10

15

20

25

2012 2013 2014 H1/13 H1/14 H1/15

Shipments modules ASP

(million pcs) (CHF)

Shipments and ASP development


• Growth of both module and chip volume

• Shipments of new positioning platform u-blox M8 has started

GNSS chips Modules

Note: incl. ANTARIS-Chipset sales by Atmel

+ 31.0% + 48.3%

Global customer base


• Strong and stable customer base

• More than 5000 customers worldwide

• Continued wide spread over different applications and geographical regions

• Small customer dependency: Largest customer accounts for 9% of total revenue in H1/15

• 10 biggest customers account for 40% of total revenue in H1/15

Comments Number of customers totaling 80% of revenue

0

10

20

30

40

50

60

70

2012 2013 2014 H1/13 H1/14 H1/15

17.8 21.2

24.5

10.4 11.5 13.3

10.3% 9.7%

9.1%

9.9%9.5%

8.2%

0%

2%

4%

6%

8%

10%

12%

0

5

10

15

20

25

30

2012 2013 2014 H1/13 H1/14 H1/15

D&M % of revenues

(% of revenues)(million CHF)

Distribution & marketing / Research & development


Research & development expenses Distribution & marketing expenses

32.7 38.9 49.9

20.1 22.7

29.9

18.9%

17.7%

18.5%19.2%

18.7%

18.5%

0%

5%

10%

15%

20%

25%

0

10

20

30

40

50

60

2012 2013 2014 H1/13 H1/14 H1/15

R&D % of revenues

(% of revenues)(million CHF)

Research & Development

69%

Sales, Marketing,

Support

19%

Logistics, Administration

12%

459

129

77

Total Headcount = 674

294

408

538

353

464

610

0

100

200

300

400

500

600

700

2012 2013 2014 H1/13 H1/14 H1/15

Employees


Average employee level (FTE based) Employee breakdown (end of H1/15, FTE based)

Note: 74% of employees based outside Switzerland (spread over 18 countries) Note: Average number of employees (FTE = full time equivalent)

Income statement


• Revenue increase of 33.1% from H1/14 to H1/15

• Increased gross profit by 26.3%

• Increased operational efficiency with OPEX 30.7% of revenue

• H1/15: costs for share based payments in the amount of CHF 2.2m

• EBITDA growth of 33.9% with margin of 22.6%

• EBIT growth of 31.9% with margin of 15.3%

• Finance costs contain realized and unrealized fx-loss of CHF 5.1m

• Tax rate of 19.1% compared to year end 2014 with 19.9%

• Net profit with margin of 9.2%

• EPS = CHF 2.25 (diluted EPS: CHF 2.17)

Comments Consolidated income statement (condensed)

January - June Jan. - Dec.

(in CHF 000s) 2015 2014 2014

(unaudited) (unaudited) (audited)

Revenue 161'912 121'625 270'045

Cost of sales -89'158 -64'031 -147'323

Gross profit 72'754 57'594 122'722

Operating expenses -49'647 -38'897 -84'515

Other income 1'686 101 868

Operating profit (EBIT) 24'793 18'798 39'075

Financial income 198 1'090 4'546

Finance costs -6'502 -385 -658

Profit before income tax (EBT) 18'489 19'503 42'963

Income tax expense -3'525 -5'100 -8'566

14'964 14'403 34'397

Operating profit (EBIT) 24'793 18'798 39'075

Depreciation and amortization 11'748 8'489 19'529

EBITDA 36'541 27'287 58'604

Net profit, attributable to owners

of the parent

Segment information


(in CHF 000s) 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014

Revenue third 161'760 121'532 152 93 161'912 121'625 161'912 121'625

Revenue intragroup 12'655 9'434 12'655 9'434 -12'655 -9'434 0 0

Total revenue 161'760 121'532 12'807 9'527 174'567 131'059 -12'655 -9'434 161'912 121'625

EBITDA 33'468 25'420 3'106 2'288 36'574 27'708 -33 -421 36'541 27'287

Depreciation -2'691 -2'122 -873 -801 -3'564 -2'923 - - -3'564 -2'923

Amortization -7'949 -4'902 -235 -664 -8'184 -5'566 - - -8'184 -5'566

EBIT

Financial income 198 1'090 198 1'090

Finance costs -6'502 -385 -6'502 -385

EBT -6'337 284 18'489 19'503

June 30 Dec 31 June 30 Dec 31 June 30 Dec 31 June 30 June 30 June 30 Dec 31

2014 2014 2014 2014 2014 2014 2014 2014 2014 2014

Assets 229'902 223'485 13'051 13'460 242'953 236'945 98'567 64'802 341'520 301'747

Positioning and

wireless products

Wireless services Total segments Non-allocated/

eliminations

Group

-33 -421 24'793 18'798

January - June January - June January - JuneJanuary - June January - June

19'21924'82622'828 18'396 1'998 823

Statement of financial position (1)


• Strong financial position with a liquidity (incl. marketable securities) of CHF 91.6m

• Inventory CHF 36.3m (Dec. 2014: CHF 33.3m)

• Increase of trade accounts receivable due to growing revenue

• Increased intangible assets due to acquisition and capitalization of R&D expenses

• Goodwill (June 2015: CHF 55.2m) net reduced by CHF 2.7m as result of exchange rate changes and the acquisition of Lesswire

Comments Consolidated Statement of financial position (condensed)

June 30, Dec. 31, June 30,

(in CHF 000s) 2015 2014 2014

(unaudited) (audited) (unaudited)

ASSETS

Current assets

Cash and cash equivalents 74'729 37'662 30'390

Marketable securities 16'862 21'730 24'920

Trade accounts receivable 39'767 38'842 35'179

Other current assets 52'847 54'862 38'558

Total current assets 184'205 153'096 129'047

Non-current assets

Property, plant and equipment 14'807 14'836 13'824

Goodwill 55'207 57'903 53'265

Intangible assets 79'823 70'502 58'864

Financial assets 592 584 480

Deferred tax assets 6'886 4'826 6'104

Total non-current assets 157'315 148'651 132'537

Total assets 341'520 301'747 261'584

Statement of financial position (2)


• Trade accounts payable of CHF 19.7m

• Short-term bank loan of CHF 20.0m paid back

• Bond of CHF 60m issued in April 2015 (6 years, interest rate 1.625%)

• Non-current liabilities contain in addition to the bond

• Deferred tax liabilities (CHF 4.2m),

• Employee benefits (pensions) (CHF 10.0m)

• Provisions (CHF 5.3m)

• Share capital increase due to exercise of options

Comments Consolidated Statement of financial position (condensed)

June 30, Dec. 31, June 30,

(in CHF 000s) 2015 2014 2014

(unaudited) (audited) (unaudited)

LIABILITIES AND EQUITY

Liabilities

Current liabilities 42'485 70'860 56'017

Non-current liabilities 80'644 18'011 14'615

Total liabilities 123'129 88'871 70'632

Shareholders’ equity

Share capital 6'034 5'930 5'899

Share premium 83'219 89'531 88'340

Retained earnings 129'138 117'415 96'713

218'391 212'876 190'952

Total liabilities and equity 341'520 301'747 261'584

Total equity

151

180

213

162

191

218

78.7%

79.7%

70.5%

77.9%

73.0%

63.9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0

50

100

150

200

2012 2013 2014 H1/13 H1/14 H1/15

Total Equity Equity ratio

(million CHF) (% of total assets)

Statement of financial position


• Strong capital base

• Equity ratio decreased due to increase of total assets and the issuance of a bond

Comments Total equity and equity ratio

Statement of cash flows


Comments Consolidated statement of cash flows (condensed)

Cash flow from investing activities:

• CHF -4.3m investments into property, plant and equipment (tools, furniture, equipment)

• CHF -16.0m investments into intangible assets (Software, capitalization of R&D)

• CHF 4.7m proceeds from marketable securities

Cash flow from financing activities:

• CHF -10.7m dividend 2014 paid in May 2015

• CHF +4.5m capital increase from options

• CHF +39.4m net cash flow from issuance of bond and repayment of bank loan

Jan. - June 2015 Jan. - June 2014

(in CHF 000s) (unaudited) (unaudited)

20'522 15'655

-15'751 -33'882

33'232 15'778

38'003 -2'449

37'662 33'163

-936 -324

74'729 30'390

Net increase/(decrease) in cash

and cash equivalents

Cash and cash equivalents at

end of period

Net cash generated from operating

activities

Net cash used in investing activities

Net cash provided by financing

activities

Cash and cash equivalents at

beginning of period

Effect of exchange rate fluctuations

on cash and cash equivalents


Business update

Acquisition of automotive short range modules business

from Lesswire

2009 2011

• NeonSeven • Geotate

• Fusion Wireless • SigNav assets

2012

• 4M Wireless • Cognovo • Fastrax

2014

• connectBlue • Antcor


lesswire • Acquisition of assets as of 1 Jan 2015: Bluetooth and Wi-Fi module products,

design IP and staff

• Both staff and products have been seamlessly integrated into u-blox’ operations

• Strong business traction

2015

• Lesswire assets


The future of automotive: A case study. How autonomous driving will change our lives.

01

01

Who will sit up front...

02

1. Lane departure warning

Driver only

2. Active lane keeping

Assisted

3. Traffic jam pilot

Partially automated

5. Highway pilot

Fully automated 4. Highway driving assistant

Highly automated

We are already well on the way to autonomous driving. And the final developments will soon be in place.

03

6. Robot taxi

Autonomous

Red step

Driver not required

Stolen vehicle tracking

Internet connectivity

Emergency call systems

In-car hotspot Hands-free telephony

Software upgrades Telematics

Navigation

Collision avoidance

Advanced driver assistance

Driving optimization

Autonomous cars need and generate lots of information. But they will be more than just connected:

they will be integrated.

Stolen Vehicle tracking

Internet connectivity

Emergency call systems In-car hotspot

Hands-free telephony

Software

upgrades

Telematics

Navigation

Collision avoidance

Advanced driver assistance

Driving optimization

04

05

What do we need for autonomous driving? u-blox provides the key technologies.

Concurrent multi-GNSS INTEGRATION

POSITIONING

SHORT RANGE CONNECTIVITY

CELLULAR CONNECTIVITY

LTE basestation

Next car status

Police and emergency vehicles

Local road conditions

Street signs

Map data

Traffic lights

Traffic information

Weather data

Positioning: always know where you are. A multitude of technologies at work.

3D Dead Reckoning

Kalman filters

Multipath suppression Multi-constellation GNSS

(GPS / GLONASS / BeiDou / Galileo)

Multi-frequency handling

06

communication: reliable wireless connectivity. Robust protocols for uninterrupted data streams.

Cellular LTE • Multipath detection

• Cell edge

• MIMO

• Carrier aggregation

Short Range Radio Bluetooth and Wi-Fi • RF link budget

• Immunity

• Error correction

07

Product launch highlights


TOBY-L280 One of the

world‘s fastet 4G

LTE modules in a

version for Asia-

Pacific area

ODIN-W2 & W262 Combined

Bluetooth/Wi-Fi

module for „Internet

of Things“

applications

CAM-M8C Positioning module with

build-in antenna

ELLA-W1 Multi-radio module BT

and Wi-Fi for industrial

and automotive use

EMMY-W1 Multi-radio module BT,

BTLE, Wi-Fi and NFC for

in-car use

Good mix of existing customers and new business wins

• All products (Cellular, Short Range, Positioning) experienced strong traction


Romteck, Australia

Remote monitoring systems and services catering to fire services, airports, defense organizations and mining companies

REYAX Technology, Taiwan

Telematics applications, in particular vehicle tracking, fleet management and insurance box.

Strategic alliances

Slide 31

M2m alliance

Joining M2M Alliance gives us immediate access to the industry leaders in the M2M and Internet of Things ecosystems.

CAR 2 CAR Communication Consortium

Development and deployment of Cooperative Intelligent Transport Systems (C-ITS). Their ultimate goal is to improve road traffic safety and efficiency


Launch of a redesigned website

• Quick and easy access to

essential product information

• Intuitive product selector

• Support portal

• Forum

• Improved responsive

functionality

• Expanded browsing

experience for investor

information


Strategic priorities 2015 (1)

Slide 33

Outlook 2015

• Expand 3G and 4G module portfolios with new variants addressing specific market regions and connectivity requirements

• Further develop our market-leading position in first-mount vehicle navigation systems based on new 3D Automotive Dead Reckoning technology

• Introduce new GNSS antenna modules based on the u-blox M8 and incorporating an integrated antenna

• Continue to develop products for the growing markets based on the Internet of Things and more connectivity solutions in the short range radio domain


Outlook 2015

• Take advantage of our expanded sales force and focus on specific market sectors to accelerate sales in vertical markets

• Build upon our leadership in global automotive markets by improving our navigation technology and automotive quality products

• Build market momentum with our LTE products

• Expand relationships with customers to allow them to deliver added value in their products

• Continue the growth trend in all regions through the cross selling between all product categories

Technology

and innovation

Market

Position

Strategic priorities 2015 (2)


Outlook 2015

• Optimize internal structures and processing capabilities

• Increase internal resources to support business growth

• Promote further innovation in all three technology categories

• Set and meet targets for higher operational efficiency

• Boost marketing capacity and expand marketing and sales tools

Outlook 2015

• Investigate new and complementary technologies that will allow us to maximize growth in both the positioning and wireless sectors

• Establish additional partnerships to give customers even easier access to our technologies

• Empower customers with improved design tools to speed time to market for attractive products

• Review new acquisition opportunities through which we can open up additional market segments

Operational

excellence

Strategic partnership and

acquisition opportunities

Outlook

• Continued strong business growth in 2015

• Some impact by product mix on relative gross margin

• Natural hedging maintains relative gross margin against foreign exchange variations

• Exchange rate assumptions for 2015: EUR/CHF: 1.065 USD/CHF: 0.974 GBP/CHF: 1.500

• FX-sensitivity against CHF on Guidance 2015

Outlook

Goals

• Grow business with new products

• Wireless

o Expansion of module product line

• Positioning

o Migration to u-blox 8

o Expansion of module product line

• Continued focus on strategic development

• Strengthening of the global presence

• Operational excellence for higher efficiency

Actual

FY 2014

Actual

HY 2015

Unchanged

Guidance 2015*)

Revenue 270.0m 161.9m 335 – 345m

EBIT 39.1m 24.8m 48 – 53m

CHF CHF CHF

Financial performance outlook 2015

*) This guidance is based on the absence of unforeseen economic adversity and exchange

rates assumed at budget level

+10% of USD EUR GBP

Revenue + 8.4% + 1.5% 0%

EBIT + 21.4% + 0.8% - 1.3%



Upcoming events

• Annual results 2015 March 18, 2016

• Annual General Meeting April 26, 2016

Slide 37

Thank you!


Documents

HY1 2012 Results u-blox Holding AG · 2015. 9. 3. · Operational highlights H1/2015 •33.1% revenue increase as compared to the first half of 2014 •Strong expansion in automotive