hy1 2012 results u-blox holding ag• ebit margin of 15.2% with growth of 6.1% compared to h1/2016...
Post on 07-Jul-2020
0 Views
Preview:
TRANSCRIPT
locate, communicate, accelerate
H1/2017 Results u-blox Holding AG
August 24, 2017
Thomas Seiler, CEO
Roland Jud, CFO
© u-blox Holding AG, August 25, 2017
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.
© u-blox Holding AG, August 25, 2017
Agenda
• Operational highlights H1/2017
• Financial results H1/2017
• Business review
• Outlook
• Q&A
Slide 3
Operational highlights H1/2017
• 7.9% revenue increase as compared to the first half of 2016
• EBIT margin increased in line with business growth
• Cash flow from operating activities declined
• Revenue and EBIT guidance maintained
• Strong product innovation
• 8 new cutting-edge products launched
• Continued investment in R&D
© u-blox Holding AG, August 25, 2017Slide 4
u-blox group H1/2017
© u-blox Holding AG, August 25, 2017Slide 5
Change H1/2017
over H1/2016
Revenue 193.9m - 7.9%
Gross profit 87.4m 45.1% 5.9%
EBITDA 40.3m 20.8% 2.8%
Operating profit (EBIT ) 29.5m 15.2% 6.1%
Net profit, attributable to owners of
the parent 18.0m 9.3% -2.6%
Net cash generated from
operating activities 22.1m 11.4% -16.0%
Key figures Amount CHF In relation to
revenue
Remark: All numbers are IFRS based. Adjusted numbers shown on slide 15
Revenue and EBITDA
© u-blox Holding AG, August 25, 2017Slide 6
CommentsRevenue and EBITDA
• Business managed to profitable growth
• Continued organic growth of revenues (+7.9% compared to H1/2016)
• Currency impact on revenue
• to H1/2016 rates: -0.3%
• to guidance rates: -1.8%
270.0
338.3
360.2
161.9 179.7
193.9
58.6
78.7 81.8
36.5 39.1 40.3
0
50
100
150
200
250
300
350
400
2014 2015 2016 H1/15 H1/16 H1/17
Revenue EBITDA
(million CHF)(million CHF)
7.9%
Markets trends
© u-blox Holding AG, August 25, 2017Slide 7
Note: Estimate
• Consumer market growth with wearables and smart bikes
• Good progress in Automotive
• Industrial markets expanding in all applications
CommentsRevenue split per market for H1/2017
IndustrialConsumer
Automotive
Revenues by geography
© u-blox Holding AG, August 25, 2017Slide 8
Note: based on customers’ billing location
Growth in two geographic regions compared to H1/2016
• Asia Pacific +25.3%
• EMEA: +8.5%
• Americas: -20.7%
Growth in all geographic regions compared to H2/2016
• Asia Pacific +8.0%
• EMEA: + 9.1%
• Americas: +3.9%
CommentsRevenues by geographic region
0
50
100
150
200
250
300
350
400
2014 2015 2016 H1/15 H1/16 H1/17
APAC Americas EMEA
25%
48%
27%
178.4
25%
50%
25%29%
48%
23%
(million CHF)
7.9%
26%
46%
28%
25%
47%
29%
26%
21%
53%
Gross profit
© u-blox Holding AG, August 25, 2017Slide 9
• Increase in gross profit to CHF 87.4m in H1/2017
• Growth of gross profit of +5.9% compared to H1/2016
• Gross profit margin in H1/2017 was slightly lower compared to H1/2016 due to changes in the product mix
CommentsGross profit / Gross profit margin
122.7
155.0167.1
72.882.5 87.4
45.4% 45.8%46.4%
44.9%45.9% 45.1%
0%
10%
20%
30%
40%
50%
60%
0
20
40
60
80
100
120
140
160
180
2014 2015 2016 H1/15 H1/16 H1/17
Gross Profit % of revenue
5.9%
Shipments and ASP development
© u-blox Holding AG, August 25, 2017Slide 10
• Growth of both module and chip volume
• Shipments of new positioning platform u-blox 8/M8 strongly growing
GNSS chipsModules
Note: incl. ANTARIS-Chipset sales by Atmel
0
1
2
3
4
5
6
7
0
10
20
30
40
50
60
2014 2015 2016 H1/15 H1/16 H1/17
Antaris u-blox 5 u-blox 6
u-blox 7 u-blox 8/M8 ASP
(million pcs) (CHF)
55.0%
18.6%
0
2
4
6
8
10
12
0
5
10
15
20
25
30
2014 2015 2016 H1/15 H1/16 H1/17
Shipments modules ASP
(million pcs) (CHF)
6.0%
Global customer base
© u-blox Holding AG, August 25, 2017Slide 11
• Strong and stable customer base, serving now 5700 customers worldwide
• Continued wide spread over different applications and geographical regions
• No important customer dependency: Largest customer accounts for less than 5.3% of total revenue in H1/2017
• 10 biggest customers account for 33.9% of total revenue in H1/2017
CommentsNumber of customers totaling 80% of revenue
69 65
71
63 63
74
0
10
20
30
40
50
60
70
2014 2015 2016 H1/15 H1/16 H1/17
Distribution & marketing / Research & development
© u-blox Holding AG, August 25, 2017Slide 12
Research & development expensesDistribution & marketing expenses
24.5 27.7
32.0
13.3 15.9 17.2
9.1% 8.2%8.9%
8.2%8.8% 8.8%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
0
5
10
15
20
25
30
35
2014 2015 2016 H1/15 H1/16 H1/17
Sales & Marketing % of revenues
49.9
65.0
63.5
29.9 32.1 32.0
18.5% 19.2% 17.6% 18.5%
17.9%
16.5%
0%
5%
10%
15%
20%
25%
0
10
20
30
40
50
60
70
2014 2015 2016 H1/15 H1/16 H1/17
Research & Development % of revenues
Research & Development
67%
Sales, Marketing,
Support
18%
Logistics, Administration
15%
(Total FTE = 895)
161
End of H1/2017, FTE based
Employees
© u-blox Holding AG, August 25, 2017Slide 13
Average employee level (FTE based)Employee breakdown (end of H1/2017, FTE based)
Note: 76% of employees based outside Switzerland (spread over 18 countries) Note: Average number of employees (FTE = full time equivalent)
538
671
786
610
729
839
0
100
200
300
400
500
600
700
800
900
2014 2015 2016 H1/15 H1/16 H1/17
Income statement - IFRS
© u-blox Holding AG, August 25, 2017Slide 14
• Revenue increase of 7.9% from H1/2016 to H1/2017
• Increased gross profit by 5.9%
• OPEX 30.3% of revenue
• H1/2017: costs for share based payments in the amount of CHF 4.1m
• EBITDA with margin of 20.8%
• EBIT margin of 15.2% with growth of 6.1% compared to H1/2016
• Finance costs contain mainly unrealized foreign exchange losses, and interests for the bonds
• Tax rate of 21.2% compared to year end 2016 with 25.1%
• Net Profit margin of 9.3%
• EPS = CHF 2.61 (diluted EPS: CHF 2.57)
CommentsConsolidated income statement (condensed)
January - June Jan. - Dec.
(in CHF 000s) 2017 2016 2016
Revenue 193'908 179'688 360'230
Cost of sales -106'518 -97'205 -193'123
Gross profit 87'390 82'483 167'107
% gross profit margin 45.1% 45.9% 46.4%
Operating expenses -58'707 -55'856 -110'136
Other income 845 1'216 2'033
Operating profit (EBIT) 29'528 27'843 59'004
Financial income 309 123 4'337
Finance costs -6'979 -3'016 -1'653
Profit before income tax (EBT) 22'858 24'950 61'688
Income tax expense -4'846 -6'453 -15'488
18'012 18'497 46'200
Operating profit (EBIT) 29'528 27'843 59'004
Depreciation and amortization 10'730 11'301 22'762
EBITDA 40'258 39'144 81'766
Net profit, attributable to owners
of the parent
Income statement – Adjusted
© u-blox Holding AG, August 25, 2017Slide 15
January - June Adjustements January - June January - June
(in CHF 000s)
2017
(IFRS)
Share based
payments
Pension impact
based on
IAS-19
Non-recurring
expenses
Amortization
intangible assets
acquired
2017
(adjusted)
2016
(adjusted)
Revenue 193'908 193'908 179'688
Cost of sales -106'518 387 -106'131 -96'873
Gross Profit 87'390 387 0 0 0 87'777 82'815% gross profit margin 45.1% 45.3% 46.1%
Operating expenses -58'707 3'670 666 827 1'218 -52'326 -49'705
Other income 845 845 1'216
Operating profit (EBIT) 29'528 4'057 666 827 1'218 36'296 34'326% margin 15.2% 18.7% 19.1%
Financial income 309 309 123
Finance costs -6'979 -6'979 -3'016
Profit before income tax (EBT) 22'858 4'057 666 827 1'218 29'626 31'433
Income tax expense -4'846 -1'079 -5'925 -6'287
18'012 2'978 666 827 1'218 23'701 25'146
Earnings per share in CHF 2.61 3.44 3.72
Diluted earnings per share in CHF 2.57 3.39 3.62
Operating profit (EBIT) 29'528 4'057 666 827 1'218 36'296 34'326
Depreciation and amortization 10'730 -1'218 9'512 10'022
EBITDA1) 40'258 4'057 666 827 0 45'808 44'348% EBITDA margin 20.8% 23.6% 24.7%
Net profit, attributable to owners of
the parent
1)Management calculates EBITDA (earnings before interest, taxes, depreciation and amortization) by adding back depreciation and amortization to operating profit
(EBIT), in each case determined in accordance with IFRS.
Segment information
© u-blox Holding AG, August 25, 2017Slide 16
(in CHF 000s) 2017 2015 2016 2015 2017 2015 2016 2015 2017 2015
Revenue third 193'815 179'546 93 142 193'908 179'688 193'908 179'688
Revenue intragroup 12'172 14'944 12'172 14'944 -12'172 -14'944 0 0
Total revenue 193'815 179'546 12'265 15'086 206'080 194'632 -12'172 -14'944 193'908 179'688
EBITDA 39'728 36'098 367 3'244 40'095 39'342 163 -198 40'258 39'144
Depreciation -3'397 -3'063 -1'056 -923 -4'453 -3'986 - -4'453 -3'986
Amortization -6'253 -7'292 -24 -23 -6'277 -7'315 - -6'277 -7'315
EBIT
Financial income 309 123 309 123
Finance costs -6'979 -3'016 -6'979 -3'016
EBT -6'507 -3'091 22'858 24'950
June 30 Dec 31 June 30 Dec 31 June 30 Dec 31 June 30 Dec 31 June 30 Dec 31
2017 2016 2017 2016 2017 2016 2017 2016 2017 2016
Assets 273'901 242'879 26'644 21'366 300'546 264'245 172'213 160'627 472'759 424'872
30'078 25'743 -713 2'298
January - June January - June
28'04129'365 163 -198 29'528 27'843
January - June January - June January - June
Positioning and
wireless products
Wireless services Total segments Non-allocated/
eliminations
Group
Statement of financial position (1)
© u-blox Holding AG, August 25, 2017Slide 17
• Strong financial position with a liquidity(incl. marketable securities) of CHF 168.6m
• Inventory CHF 37.9m (Dec. 2016: CHF 31.6m)
• Trade accounts receivable increase towards December 2016
• Increased intangible assets due to capitalization of R&D expenses
• Goodwill (CHF 54.6m) slightly increased by CHF 0.5m as result of exchange rate changes mainly in GBP and EUR
CommentsConsolidated Statement of financial position (condensed)
June 30, Dec. 31, June 30,
(in CHF 000s) 2017 2016 2016
(unaudited) (audited) (unaudited)
ASSETS
Current assets
Cash and cash equivalents 163'785 149'545 107'265
Marketable securities 4'831 7'573 10'150
Trade accounts receivable 46'084 39'792 42'579
Other current assets 52'102 42'670 53'821
Total current assets 266'802 239'580 213'815
Non-current assets
Property, plant and equipment 15'570 15'774 13'785
Goodwill 54'621 54'104 55'160
Intangible assets 132'169 111'905 97'520
Financial assets 1'139 1'074 787
Deferred tax assets 2'458 2'435 7'079
Total non-current assets 205'957 185'292 174'331
Total assets 472'759 424'872 388'146
Statement of financial position (2)
© u-blox Holding AG, August 25, 2017Slide 18
• Trade accounts payable of CHF 17.7m
• Second bond of CHF 60m issued in April 2017(6 years, interest rate 1.375%)
• Non-current liabilities contain in addition to the bonds
• Deferred tax liabilities (CHF 1.3m),
• Employee benefits (pensions) (CHF 12.8m)
• Provisions (CHF 7.3m)
• Share capital increase due to exercise of options
• Equity reduced because of treasury shares purchased for option program (CHF 24.4m)
CommentsConsolidated Statement of financial position (condensed)
June 30, Dec. 31, June 30,
(in CHF 000s) 2017 2016 2016
(unaudited) (audited) (unaudited)
LIABILITIES AND EQUITY
Liabilities
Current liabilities 57'307 59'098 46'070
Non-current liabilities 140'676 81'047 88'072
Total liabilities 197'983 140'145 134'142
Shareholders’ equity
Share capital 6'238 6'152 6'125
Share premium 65'180 74'387 73'345
Retained earnings 203'358 204'188 174'534
274'776 284'727 254'004
Total liabilities and equity 472'759 424'872 388'146
Total equity
Statement of financial position
© u-blox Holding AG, August 25, 2017Slide 19
• Strong capital base
• Equity ratio of 58.1%
• Treasury shares for option program decreased equity by CHF 24.4m
• Equity ratio without treasury shares: 63.3%
CommentsTotal equity and equity ratio
213
248
285
218
254275
70.5%
64.2%67.0%
63.9% 65.4%
58.1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0
50
100
150
200
250
300
2014 2015 2016 H1/15 H1/16 H1/17
Total Equity Equity ratio
(million CHF) (% of total assets)
Statement of cash flows
© u-blox Holding AG, August 25, 2017Slide 20
CommentsConsolidated statement of cash flows (condensed)
Cash flow from investing activities:
• CHF -4.3m investments into property, plant and equipment (equipment, tools)
• CHF -26.7m investments into intangible assets (Software, capitalization of R&D)
• CHF 2.7m net proceeds from marketable securities
Cash flow from financing activities:
• CHF -14.5m dividend 2016 paid in May 2017
• CHF +5.4m capital increase from options
• CHF +59.3m issued bond April 2017
• CHF -24.4m purchase of treasury shares for employee share option program
Jan. - June 2017 Jan. - June 2016
(in CHF 000s) (unaudited) (unaudited)
22'061 26'256
-27'914 -19'622
26'021 -11'581
20'168 -4'947
149'545 112'387
-5'928 -175
163'785 107'265
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
Product launches highlights
© u-blox Holding AG, August 25, 2017Slide 22
TOBY-L4The LTE module provides
a secure solution for automotive OEMs enabling data, voice, positioning, eCall and
advanced telematics.
SARA-S200This ultra small module offers significant size and cost savings for secure
and robust M2M and IoT
wireless applications.
VERA-P1The latest in a range of
automotive-grade transceiver modules that enables the next
generation of Advanced Driver
Assistance Systems.
UBX-M8230-CT Ground-breaking GNSS receiver chip for wearable applications offering a unique balance of performance and ultra-low power use.
NINA-W131 & NINA-W132Secure ultra low power Wi-Fi modules that efficiently integrate Wi-Fi connectivity into IoT
devices.
ZOE-M8GAn ultra-compact GNSS receiver module which
offers exceptionally high location accuracy especially designed for wearables, drones and
asset trackers.SARA-R410MThe world’s smallest quad-
band LTE module, ideal for diverse IoT and M2M
applications including smart cities, connected healthcare
and more.
JODY-W1
The automotive Wi-Fi & Bluetooth module enables real simultaneous dual band operation for faster Wi-Fi connectivity and is ideal for infotainment and telematics applications.
Customer highlights (1)
© u-blox Holding AG, August 25, 2017Slide 23
All products (Cellular, Short Range, Positioning) experienced strong traction
HMS Industrial Network,
Germany Wireless industrial bolt
Product: ODIN-W2 module
WHILL KK, Japan
Wheelchair featuring cloud
connectivity
Product: 3G Cellular
Module
HEX, Taiwan
Drone Navigation Kit
Product: NEO-M8P
Customer highlights (2)
© u-blox Holding AG, August 25, 2017Slide 24
Navilock, GermanyGNSS receiver series
Product: NEO-M8U
Digicom, ItalyNB-IoT products and solutions
Product: SARA-N2
Panasonic, JapanTablet
Product: NEO-M8
Strategic priorities 2017 (1)
Market position
Slide 25
Outlook 2017• Develop range of products aimed at replacing legacy
cellular technology in IoT applications calling for a long service life and low data rates.
• Introduce high-precision location technology to the mass market.
Outlook 2017• Develop low-data-rate NB1, M1 and RPMA modules for
IoT applications.• Offer tools and development environments that enable
shorter time to market.• Roll out u-blox’s principles for security across all products.
Technology & Innovation
© u-blox Holding AG, August 25, 2017
Strategic priorities 2017 (2)
Slide 26
Operational excellence
Outlook 2017• Use economies of scale to reduce cost-to-revenue ratio as
company expands.• Exploit multiple sourcing agreements to make supply chain
more robust.
Outlook 2017• Build on relations with major global cellular operators
around low-data-rate products.• Continue to review potential acquisitions that will
strengthen our product portfolio and technology base, and extend global reach.
Strategic partnerships & acquisitionopportunities
© u-blox Holding AG, August 25, 2017
Sapcorda (Safe And Precise CORrection DAta)
• Sapcorda Services GmbH is based in Berlin.
• Will distribute GNSS positioning services for high precision GNSS applications.
• Targeting mass market applications such as Automotive, Industrial & Consumer.
• Setup as a Joint Venture with u-blox, Bosch, Geo++, Mitsubishi Electric.
• Service to be sustained by the involved industry.
• No single partner has a majority share.
• Each partner has a strategic interest in Sapcorda’s services.
• Joint Venture announced on 8th August 2017.
• Closing expected for mid October 2017.
© u-blox Holding AG, August 25, 2017Slide 27
Sapcorda
• Sapcorda to distribute GNSS correction services to serve the mass market
• Global and continent wide coverage.
• One way communication (Broadcast) with satellite
& terrestrial internet communication channels.
• Open system: Available to all GNSS receiver
manufacturers.
• Targeted at OEMs and system integrators (B2B business model).
• Affordable for mass markets (e.g. Cars,
Surveying, Agriculture & Machine Control).
© u-blox Holding AG, August 25, 2017Slide 28
Communication
Satellite
GNSS receiver
Internet
SSR correction service
GNSS
Outlook
Financial performance and guidance 2017
Slide 30 © u-blox Holding AG, August 25, 2017
• Continued business growth in 2017 – unchanged guidance
• Impact by product mix on relative gross margin
• Natural hedging protects relative gross margin against foreign exchange variations
+10% of USD EUR GBP
Revenue + 8.6% + 1.3% 0%
EBIT + 21.1% + 1.0% - 2.0%
• Exchange rate assumptions for 2017:EUR/CHF: 1.07 USD/CHF: 1.02 GBP/CHF: 1.23
• FX-sensitivity against CHF on Guidance 2017
*) This guidance is based on the absence of unforeseen economic adversity and exchange rates assumed at budget level
Actual
FY 2015
Actual
FY 2016
Guidance 2017*)
Revenue 338.3m 360.2m 410m…425m
EBIT 51.3m 59.0m 60m… 65m
CHF CHF CHF
Upcoming events
• Investor and analyst day October 31, 2017
• 2017 annual results March 15, 2018
• Annual General Meeting April 24, 2018
© u-blox Holding AG, August 25, 2017Slide 31
locate, communicate, accelerate locate, communicate, accelerate
Thank you!
top related