U-blox Investor Presentation - September 2018
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u-blox Investor Presentation September 2018
Disclaimer 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. 2 @ u-blox Holding AG
3 © u-blox Holding AG
Our vision
We deliver leading
wireless technology to
reliably locate and
connect people and
devices.
We are convinced that the
Internet of Things will
change every aspect of
our societies, our
businesses, and our
everyday lives.
That’s why we develop
reliable and innovative
positioning and wireless
communication solutions
that securely connect
vehicles, industries,
things, and millions of
people around the world.
4 @ u-blox Holding AG
Expanding the global reach
5900 66 15
CUSTOMERS COUNTRIES
SALES OFFICES
WORLDWIDE WORLDWIDE
• Broad customer base with more than 5900 customers and significant market share
• Expanding customer base: customers in more than 66 countries worldwide
• Customer diversity: Top 60 customers in 25 countries
• No single customer responsible for more than 6% of total sales
• 15 sales offices; 14 R&D locations
5 @ u-blox Holding AG
Billions of things waiting to be connected
Drones ~5 million Hospital beds ~14 million
Street lights 1 billion
Parking spaces ~1.2 billion
Kids ~2.2 billion
Cars ~0.5 billion
Laptops ~0.9 billion
Power tools ~1.3 billion Pets ~0.5 billion
Bicycles ~1.3 billion
Source: Geeny.io
6 @ u-blox Holding AG
u-blox plays in high growth markets
• IoT markets predicted to strongly grow IoT connected devices
18 35%
• Various wireless technologies allow for IoT
connected devices 16
30% 30% 30%
14
• All these wireless technologies are our 25%
12
heartland
10 20%
m units
CAGR
17%
8 15%
6
10%
4
5%
2
0 0%
Wide area IoT - Wide area IoT -
Short Range IoT
Cellular others
2017 0.8 0.7 6.2
2023 4.1 3.5 15.7
CAGR 30% 30% 17%
Connected devices [billion]
7 @ u-blox Holding AG Source: Ericsson Mobility Report 2018
u-blox:
Unique technology and product line-up
• u-blox wireless and
positioning
technologies are
Cellular Short Range
Positioning
available in a unique
Communication Communication
combination of chips
and modules
Integrated
Circuits • Combining
technologies provides
for solutions that
deliver extra value not
Modules available otherwise
• This strategic core
delivers our inimitable
CellLocate® (modem based positioning)
market placement and
AssistNowTM (world wide GNSS assistance service)
Services and drives our profitability
GNSS Correction Data (for high precision)*
Solutions FOTA (Firmware over the air)
Lifetime Security
*through Sapcorda, a Joint Venture with industry partners
8 @ u-blox Holding AG
Strong competitive advantage
• Important strategic
benefits from the
unique u-blox line-up
Cellular Short Range
Positioning Communication Communication • Long-term sustained
competitive position
Integrated • Strong synergies
Circuits between the
technologies
Modules
CellLocate® (modem based positioning)
AssistNowTM (world wide GNSS assistance service)
Services and
GNSS Correction Data (for high precision)*
Solutions FOTA (Firmware over the air)
Lifetime Security
*through Sapcorda, a Joint Venture with industry partners
9 @ u-blox Holding AGWireless technologies connect things to the cloud
5G NR 5G LTE
Positioning (Cat-M, NB-IoT) 5G NR IoT
5G NR V2X GNSS
802.11p WiFi
Bluetooth
Sensor Networks Industrial IoT
10 @ u-blox Holding AGOur Focus 11 @ u-blox Holding AG
Four IoT focus areas for u-blox
Connected vehicle Connected city Connected industry Connected consumer
Adaptive cruise control 600 million smart home device Goods tracking market to swell Massive use of smart phones:
shipments to reach 80 million by shipments by 2021 to $5.6 billion in 2021 3.9 billion connected consumers in
2025 2016 will grow to 6.8 billion in 2022,
Home care robotics revenue to Number of connected industrial with many regions having more
7.7 million truck platoon systems quadruple to $6 billion by 2025 controllers to triple from 2014 to subscriptions than people
to ship by 2025 2020, growing at an average rate
46 million connected street lights of 20% 100 million BT connected sports and
Over 246 million connected auto by 2021 wellness devices and 250 million
infotainment systems to ship Global wireless sensor network Wi-Fi connected flat screen TVs and
between 2015-2020 Smart meter connections to market expected to grow to $1 set-top boxes by 2020
exceed 789 million by 2021 billion by 2020
(Source: ABI research, 2016)
Global wearable market expected to
(Source: ABI research, 2016) Source: (Technavio 2016)
grow to $5.8 billion by 2018
Source: (Ericsson Mobility Report November
2016, ABI Wireless IoT and Cellular 2016 &
Statista 2016 )
12 @ u-blox Holding AGIoT and Industry 4.0
Industry 4.0 represents the opportunity Internet of Things represents the opportunity
Internet of
for manufacturing businesses to reinvent available to companies to leverage smart, connected
their processes by using new technologies Industry Things devices to build, distribute, and manage their
in the process of building their products 4.0 products and services for customers
”Internet of Things” Smart Devices, Personal Area Networks
Industrial Automation ”Industrial Internet”/ Industry 4.0
Connected Connected Connected Connected
Consumer City Car Industry
13 @ u-blox Holding AGEnabling the Internet of Things (IoT)
u-blox at the core
Our three technologies –
Positioning, Cellular, and
Short Range – transform
a wide range of products
and devices into the
Things of the IoT.
We distinguish three
applications sectors:
• Automotive
• Industrial
• Consumer
14 @ u-blox Holding AGAutomotive market High quality and robustness Typical applications • Vehicle telematics • Emergency call systems • Insurance boxes • Autonomous vehicles u-blox advantages • Automotive quality • Dead reckoning solutions • Seamless integration of positioning and wireless • Robust performance • Long product lifetime 15 @ u-blox Holding AG
Industrial market Versatile and reliable technology Typical applications • Asset tracking • Automation • Precision timing • Smart metering • POS terminals u-blox advantages • Excellence in product features • High reliability • Form factor roadmap • Seamless integration of positioning and wireless • Short time to market 16 @ u-blox Holding AG
Consumer market Mass market solutions Typical applications • Wearables • Drones • People and animal tracking • Car accessories • Mobile hotspots and routers u-blox advantages • High performance solutions • Small size chip and module solutions • Very low power consumption • Cost effectiveness • Short time to market 17 @ u-blox Holding AG
Innovation for the IoT
LTE Cat 1 Precise positioning (GNSS) Bluetooth BR / EDR
18.5%
OF SALES
INVESTED IN
LTE Cat M1 R&D Bluetooth low energy
LTE Cat NB1 Wi-Fi
V2X
18 @ u-blox Holding AGWireless standards offer an ever increasing capability
u-blox cellular product evolution toward 5G
2G – 3G - 4G 4G LTE-Advanced Pro 5G
Rel-13 Rel-14 Rel-15 Rel-16
Enhanced Mobile
Broadband
High bandwidth
eMBB High cost
High mobility
Ultra Reliable Low
Latency Communication
Ultra low latency
uRLLC
Highly reliable
Highly secure
Massive Machine-
Type Communication
High device density
mMTC Low bandwidth
Low cost
Low power
2017 2018 2019 2020
19 @ u-blox Holding AGWhat is 5G for?
Enhanced Mobile Broadband
• 20/10 Gbps DL/UL
UHD Video • 4ms user plane latency
eMBB • Mobility up to 500 km/h
Video Mobile Cloud Fixed
Monitoring Computing Wireless
Virtual 3D Gaming
Reality
Ultra Reliable Low
Unmanned Vehicles Latency Communication
• 1ms user plane latency
Public Safety uRLLC • Highly secure / resilient
• 0ms mobile
interruption time /
always available
V2X Connected Industrial Massive Machine-Type
Smart City
Health Automation Communication
• 1M devices per km2
mMTC • 10+ years battery life
• 20 dB coverage
Sensor Networks Smart Home
Wearables
20 u-blox AG
20 @ u-blox Holding AGWireless standards offer an ever increasing capability
Wi-Fi evolution toward multiple use cases High bandwidth
High High frequencies
Through-
put
802.11ay
Various bandwidths
802.11ad Timing
802.11az General
802.11n Positioning
purpose
802.11g
802.11ac
802.11ax
Dual band
802.11p High reliability
V2X
802.11ah 802.11p xx
Low bandwidth
802.11ba Low Power
2010 2014 2018 2022
21 @ u-blox Holding AGWireless standards offer an ever increasing capability
Bluetooth progression toward more capabilities
High bandwidth
Long range
High data
rate
BT1.2 BT5.1 Low energy
BT5.0 Long range
BT2.0 BT2.1 Low data
rate
BT 3.0 BT4.0 BT4.1 BT4.2
Mesh 1.0
Mesh networks
Mesh 1.x
Mesh 1.x Mesh
2010 2014 2018 2022
22 @ u-blox Holding AGWireless standards offer an ever increasing capability
Expanding satellite constellations Meter-level accuracy
High tracking
Standard sensitivity
Precision Low power
Beidou consumption
Galileo
Centimeter- to
decimeter-level
GLONASS High accuracy
Precision
GPS
Time or frequency
Time & synchronization
Frequency
100% positioning
Dead coverage incl. tunnels
and urban canyons
Reckoning
2010 2014 2018 2022
23 @ u-blox Holding AGProduct launch highlights in H1 2018
Cellular Short Range Radio Positioning
Communication Communication
SARA-R410M UBX-P3 u-blox F9 platform
The world’s smallest multi-mode The industry’s smallest V2X High precision positioning
LTE Cat M1, NB-IoT module, communication chip takes solutions for mass market
ideal for diverse IoT and M2M u-blox’s commitment to shaping industrial and automotive
applications including smart the future of active safety and applications.
cities, connected healthcare, and autonomous driving
more. technologies to the next level.
SARA-R412M ANNA-B1 ZED-F9P
The world’s smallest multi-mode Ultra-compact Bluetooth 5 module First high precision GNSS
LTE Cat M1 module with 2G designed for tough environments, module based on u-blox F9
fallback , ideal for diverse IoT and ANNA-B1 is fully tailored to technology delivering
M2M applications in EMEA. applications for the Industrial centimeter-level accuracy in
Internet of Things (IoT). seconds.
NINA-B2
Ultra-compact NINA-B2 dual
mode Bluetooth stand-alone
module featuring strong security
for the Industrial IoT.
24 @ u-blox Holding AGFinancial Perspectives 25 @ u-blox Holding AG
Continuous revenue growth
Revenue and EBITDA H1 2018 Revenue split per market H1 2018
(million CHF)
450 5.5%
CAGR 9.2%
403.7
400
360.2
350 338.3
28.9%
300
CAGR 5.2%
250 55.1%
193.9 199.0
200 179.7
150 10.5%
100 81.8 87.4
78.7
50 39.1 40.3 40.1
0 Industrial Consumer Automotive Not assigned
2015 2016 2017 H1/16 H1/17 H1/18
Revenue EBITDA
26 @ u-blox Holding AGContinuous strong profitability
Gross profit/ Gross profit margin H1 2018 EBITDA trend
Maintained EBITDA margin of 21...23%
(million CHF) (in % of revenue)
200 50.3% 50.3% 51%
(million CHF) (in % of revenue)
180 50%
100 23.3% 24%
21.7% 22.7%
160 49% 90 21.6%
21.0% 22%
140 80
48%
46.4% 47.0% 20%
120 70
CAGR 17.3%
47%
60
100 18%
184.0 46% 50
80 167.1 45.1%
155.0 81.8
87.4 16%
40 78.7
45.6% 45%
60
30 58.6 14%
87.4 93.6 44% 46.2
40 82.5 20
12%
20 43% 10
0 10%
0 42%
2013 2014 2015 2016 2017
2015 2016 2017 H1/16 H1/17 H1/18
EBITDA EBITDA-Margin
Gross Profit % of revenue
27 @ u-blox Holding AGSolid balance sheet
A result of continued strong profitability and tight OPEX
management
600
Comments
500 Fixed Assets
• Strong financial position with a liquidity (incl. marketable
Inventory
securities) of CHF 150.2m (Dec. 2017: CHF 172.4m)
(million CHF)
400
Accounts Receivable
• Inventory CHF 56.7m (Dec. 2017: CHF 44.2m) increased due 300
to tight supply chain 200
Other current assets
• Trade receivables CHF 58.6m (Dec. 2017: CHF 50.4m) 100
Cash (incl. marketable
securities)
increased with accelerated business at end of H1.2018
0
• Increased intangible assets due to capitalization of R&D 0
2014
2014 2015
2015 2016
2016 2017
2017 H1/2018
H1/2018
expenses
100
• Non-current liabilities contain bonds of CHF 119.0m,
Deferred tax liabilities (CHF 7.5m), Employee benefits (IAS-
(million CHF)
200
Short Term Debt
19) (CHF 15.7m) , Provisions (CHF 6.8m) 300 Long Term Debt
Shareholder's Equity
• Share capital increase due to exercise of options 400
500
600
28 @ u-blox Holding AGStrategic Goals • Grow business with new products • Continued focus on strategic development • Strengthening of the global presence • Operational excellence for higher efficiency 29 @ u-blox Holding AG
Financial performance and guidance 2018
• Guidance amended reflecting H1.2018 Actual Actual
Updated
Guidance 2018*)
FY 2016 FY 2017
• Stronger H2 but cannot fully compensate slow (IFRS)
first half year 2018 Revenue 360.2m 403.7m 435m…445m
EBITDA 81.8m 87.4m 90m…100m
• R&D efforts maintained for supporting new
EBIT 59.0m 65.1m 60m… 65m
platforms
CHF CHF CHF
• Impact by product mix on gross margin *) This
guidance is based on the absence of unforeseen economic adversity and
exchange rates assumed at budget level.
• Natural hedging protects gross margin against
foreign exchange variations
Exchange rate assumptions for 2018:
• EUR/CHF: 1.11 USD/CHF: 0.98 GBP/CHF: 1.27
• FX-sensitivity against CHF on Guidance 2018
+10% of USD EUR GBP
Revenue + 9% + 1% 0%
EBITDA + 16% 0% -1%
EBIT + 22% - 1% - 2%
30 @ u-blox Holding AGOur promise Competent technical support Low risk through all phases of the Quick time to market worldwide design cycle High quality Outstanding performance Security 31 @ u-blox Holding AG
Corporate Information 32 @ u-blox Holding AG
Legal structure u-blox group
u-blox Holding AG
Thalwil, Switzerland
Sapcorda GmbH 43% u-blox AG (Headquarter)
Berlin Thalwil, Switzerland
100% u-blox Cork 100% u-blox San Diego Inc.
Ireland USA
100% 100% 100% 100%
100% u-blox Luton Ltd.
100% u-blox UK Ltd.
u-blox Singapore UK UK
u-blox America, Inc. u-blox Japan K.K. u-blox Asia Pacific Ltd.
Pte. Ltd.
USA Japan Hong Kong
Singapore
u-blox Lahore
100% u-blox Espoo Oy (Private) Pty.
Finland Pakistan
Representative office of u-blox AG Beijing
u-blox Singapore Pte. Ltd. representative office
Taipei Beijing
100% u-blox Italia S.p.A. 100% u-blox Malmö
u-blox Singapore Pte. Ltd. u-blox AG Shenzen Italy Sweden
(Branch office) representative office
Seoul Shenzen
100% u-blox Melbourn Ltd. 100% u-blox Athens
Representative office of u-blox AG Shanghai UK Greece
u-blox Singapore Pte. Ltd. representative office
Bangalore Shanghai
Representative office of u-blox Melbourn Ltd.
u-blox AG Chongqing 100% u-blox Berlin
u-blox Singapore Pte. Ltd. Leuven Branch
representative office Germany
Sydney Belgium
Chongqing
100% u-blox Wireless
u-blox Electronics Ltd Technology Ltd.
Shanghai Shanghai
100%
Sales organization R&D entities
33 @ u-blox Holding AGBoard of directors
André Müller
Chairman
Member AC
Dr. Paul van Iseghem Prof. Gerhard Tröster Gina Domanig Ulrich Looser Thomas Seiler Jean-Pierre Wyss
Vice-chairman Chairman NCC Member NCC CEO COO
Chairman AC
Additional information – see Corporate Governance and Financial Report 2017 p. 8 - 13
34 @ u-blox Holding AGExecutive Committee
Thomas Seiler
CEO
Head of Marketing and Sales
Jean-Pierre Wyss Roland Jud Daniel Ammann Andreas Thiel
Executive Vice President CFO Executive Vice President Executive Vice President
Head of Production and Logistics Positioning Products Wireless Products
Co-founder u-blox AG Co-founder u-blox AG Co-founder u-blox AG
Additional information – see Corporate Governance and Financial Report 2017 p. 14 - 16
35 @ u-blox Holding AGShares Stock Exchange SIX Swiss Exchange Swiss Security Number / ISIN 3336167 / CH0033361673 Ticker UBXN Nominal value CHF 0.90 Shares issued 7’081’689 (June 30, 2018) Market cap 1’394 Mio (June 30, 2018) High / Low, 01.01.2018 – 30.06.2018 CHF 220.00 / CHF 162.50 (June 30, 2018) 36 @ u-blox Holding AG
Analyst Coverage & Market making
Analysts Please note that any
opinions, estimates, or
Zürcher Kantonalbank Andreas Müller forecasts regarding
Credit Suisse
u-blox‘s performance
Michael Inauen
made by these analysts
Vontobel Michael Foeth are theirs alone and do not
represent opinions,
MainFirst Schweiz Jürgen Wagner forecasts or predictions of
u-blox or its management.
Kepler Chevreux Torsten Sauter
Baader/Helvea Günther Hollfelder
Julius Bär Bruno Winiger
Mirabeau Mark Diethelm
BRYAN, GARNIER & CO Dorian Terral
UBS François-Xavier Bouvignies
Market making Zürcher Kantonalbank
37 @ u-blox Holding AGUpcoming events • Investor and Analyst Day November 21, 2018 • 2018 Annual Results March 15, 2019 • Annual General Meeting April 25, 2019 38 @ u-blox Holding AG
Investor relations contact Thomas Seiler Roland Jud Chief Executive Officer Chief Financial Officer u-blox Holding AG u-blox Holding AG Zürcherstrasse 68 Zürcherstrasse 68 8800 Thalwil, Switzerland 8800 Thalwil, Switzerland Phone: +41 44 722 74 44 Phone: +41 44 722 74 44 Fax: +41 44 722 74 99 Fax: +41 44 722 74 99 E-mail: thomas.seiler@u-blox.com E-mail: roland.jud@u-blox.com 39 @ u-blox Holding AG
Thank you for your attention 40 @ u-blox Holding AG
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