new annual results 2015 u-blox holding ag · 2016. 3. 18. · annual results 2015 u-blox holding ag...
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Annual results 2015 u-blox Holding AG
March 18, 2016
Thomas Seiler, CEO
Roland Jud, CFO
locate, communicate, accelerate
© u-blox Holding AG, March 18, 2016
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, March 18, 2016
Agenda
• Introduction
• Operational highlights 2015
• Financial results 2015
• Business review
• Outlook
• Q&A
Slide 3
Operational highlights 2015
• Revenue up strongly: both revenue and EBIT surged upward in all regions, taking us another significant step towards our intermediate goal of half-billion-dollar annual revenues.
• Acquisition of Lesswire: takeover of automotive-grade Bluetooth and Wi-Fi module products and team of key engineers, strengthening our position as a supplier to the in-car and V2V communications markets.
• Strategic new products: launch of nine products in all three product areas: cellular, short range and positioning.
• First V2X module: Licensing of the manufacturing and marketing of the Cohda Wireless based design for quick access to emerging markets
• New offices worldwide: to expand R&D team and make customer contact easier, new offices in Chongqing, Tampere, Berlin and Osaka were opened.
© u-blox Holding AG, March 18, 2016 Slide 4
u-blox group
© u-blox Holding AG, March 18, 2016 Slide 5
Change 2015
to 2014
Revenue 338.3m - 25.3%
Gross profit 155.0m 45.8% 26.3%
EBITDA 78.7m 23.3% 34.3%
Operating profit (EBIT ) 51.3m 15.2% 31.3%
Net profit, attributable to owners of
the parent 37.1m 11.0% 7.9%
Net cash generated from
operating activities 74.7m 22.1% 39.1%
Payout of a dividend of CHF 1.90 per share from capital reserves proposed
Key figures Amount CHF In relation to
revenue
Revenue and EBITDA
© u-blox Holding AG, March 18, 2016 Slide 6
• Solid revenue growth of 25.3% compared to 2014
• Organic growth of 23.2%
• Acquisition related growth of 2.1%
• At constant exchange rate: Revenue growth of 21.8%
• Growth of EBITDA of 34.3% compared to 2014
Comments Revenue and EBITDA
124.7
173.1
219.8
270.0
338.3
29.1 35.2 46.2
58.6 78.7
0
50
100
150
200
250
300
350
2011 2012 2013 2014 2015
Revenue EBITDA
(million CHF)
Industrial
Consumer
Automotive
Markets trends
© u-blox Holding AG, March 18, 2016 Slide 7
Note: Estimate
Comments Revenue split per market for 2015
• Redefined sector definitions (only factory fitted by the car manufacturer are classified as automotive)
• Growth in all markets
• Automotive sales grew faster than the market
• Growth in industrial with fleet management, usage based insurance, timing, POS-terminals
• Notable progress in consumer through children and pet tracking, drones (UAVs), wearables
Industrial
Consumer
Automotive
Comparable 2014
0
50
100
150
200
250
300
350
2011 2012 2013 2014 2015
Americas EMEA APAC
(million CHF)
48%
23%
29%
48%
25%
27%
46%
25%
28%
35%
24%
41%
45%
26%
29%
Revenues by geography
© u-blox Holding AG, March 18, 2016 Slide 8
Note: based on customers’ billing location
Growth of business in all regions.
Revenue development according to billing location:
• Strong increase of 32.6 % in the Americas
• Strong growth of 26.3% in APAC
• Continued growth of 15.3% in EMEA
Fx-impact in growth was + 3.5% on total revenues:
• Negative impact of EUR: - 2.4%
• Positive impact of USD: + 5.9%
Comments Revenues by geographic region
+ 25.3%
62.881.2
101.2122.7
155.0
34.5%
47.2% 50.3%
45.4%
45.8%
0%
10%
20%
30%
40%
50%
60%
0
20
40
60
80
100
120
140
160
180
2011 2012 2013 2014 2015
Gross Profit % of revenue
(million CHF) (in % of revenue)
Gross profit
© u-blox Holding AG, March 18, 2016 Slide 9
• Increase in gross profit to CHF 155.0m in 2015
• Strong growth of gross profit of 26.3% compared to 2014
• Gross profit margin in 2015 of 45.8%, slightly increased due to changes in the product mix
Comments Gross profit / Gross profit margin
+ 26.3%
0
2
4
6
8
10
12
0
5
10
15
20
25
30
2011 2012 2013 2014 2015
Shipments modules ASP
(million units) (CHF)
0
1
2
3
4
5
6
0
5
10
15
20
25
30
35
40
45
50
2011 2012 2013 2014 2015
Antaris u-blox 5 u-blox 6
u-blox 7 u-blox M8 ASP
(million units) (CHF)
Shipments and ASP development
© u-blox Holding AG, March 18, 2016 Slide 10
• Continued growth of chips and modules volume
• Shipments of u-blox M8 chip ramping -up
GPS/GNSS chips Modules
Note: incl. Atmel-Chipset sales
+ 21.6% + 55.9%
Global customer base
© u-blox Holding AG, March 18, 2016 Slide 11
• Strong and stable customer base
• More than 5’200 customers worldwide
• Good spread over different applications and geographical regions
• Largest customer accounts for less than 7% of total revenue
• 10 biggest customers account for 39.7% of total revenue
Comments Number of customers totaling 80% of revenue
65 57
67 69 65
0
10
20
30
40
50
60
70
2011 2012 2013 2014 2015
14.2 17.8
21.2 24.5
27.7
11.4%
10.3%9.7%
9.1%
8.2%
0%
2%
4%
6%
8%
10%
12%
0
5
10
15
20
25
30
2011 2012 2013 2014 2015
D&M % of revenues
(million CHF) (in % of revenue)
Distribution & marketing / Research & development
© u-blox Holding AG, March 18, 2016 Slide 12
Research & development expenses Distribution & marketing expenses
22.1 32.7
38.9
49.9
65.0
17.7%18.9%
17.7% 18.5% 19.2%
0%
5%
10%
15%
20%
25%
0
10
20
30
40
50
60
70
2011 2012 2013 2014 2015
R&D % of revenues
(million CHF) (in % of revenue)
Research & development
69%
Sales, marketing,
support
19%
Logistics, admin 12%
Total = 736 FTE
509
140
87
Employees
© u-blox Holding AG, March 18, 2016 Slide 13
Average employee level (2011 – 2015, FTE based) Employee breakdown (end of 2015, FTE based)
Note: 74.8% of employees based outside Switzerland (spread over 17 countries) Note: Average number of employees (FTE = full time equivalent)
215 294
408
538
671
0
100
200
300
400
500
600
700
2011 2012 2013 2014 2015
(Average FTE)
Income statement
© u-blox Holding AG, March 18, 2016 Slide 14
• Revenue increase 98% organic
• Increased gross profit by 26.3%
• Higher absolute OPEX due to expansion of activities; stable relative OPEX to revenue
• EBITDA margin of 23.3%
• EBIT margin of 15.2%
• Share based payment cost in the amount of CHF 4.4m
• Finance costs contains unrealized/realized foreign exchange losses of CHF 2.9m and costs for bond issue
• Tax rate of 21.2%
Comments Consolidated income statement (condensed)
*) 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.
for the year ended December 31, June 30,
(in CHF 000s) 2015 2014 2015
(audited) (audited) (unaudited)
Revenue 338'341 270'045 161'912
Cost of sales -183'323 -147'323 -89'158
Gross profit 155'018 122'722 72'754
Operating expenses -106'201 -84'515 -49'647
Other income 2'474 868 1'686
Operating profit (EBIT) 51'291 39'075 24'793
Finance income 996 4'546 198
Finance costs -4'674 -658 -6'502
Profit before income tax (EBT) 47'613 42'963 18'489
Income tax expense -10'515 -8'566 -3'525
37'098 34'397 14'964
Operating profit (EBIT) 51'291 39'075 24'793
Depreciation and amortization 27'421 19'529 11'748
EBITDA*) 78'712 58'604 36'541
Net profit, attributable to owners
of the parent
Segment information
© u-blox Holding AG, March 18, 2016 Slide 15
*) 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.
(in CHF 000s) 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
Revenue third 337'956 269'799 385 246 338'341 270'045 338'341 270'045
Revenue intragroup 25'732 23'827 25'732 23'827 -25'732 -23'827 - -
Total revenue 337'956 269'799 26'117 24'073 364'073 293'872 -25'732 -23'827 338'341 270'045
EBITDA*) 73'184 54'889 6'707 4'436 79'891 59'325 -1'179 -721 78'712 58'604
Depreciation -6'192 -4'602 -1'835 -1'670 -8'027 -6'272 -8'027 -6'272
Amortization -16'232 -12'238 -404 -1'019 -16'636 -13'257 -16'636 -13'257
Impairment -2'758 -2'758 - -2'758 -
Operating profit (EBIT)
Finance income 996 4'546 996 4'546
Finance costs -4'674 -658 -4'674 -658
EBT -4'857 3'167 47'613 42'963
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
Assets 240'232 223'485 14'956 13'460 255'188 236'945 131'655 64'802 386'843 301'747
Liabilities 126'695 79'835 5'705 4'931 132'400 84'766 6'122 4'105 138'522 88'871
additions to
non-current assets 48'936 45'434 1'535 1'099 50'471 46'533 - - 50'471 46'533
Positioning and
wireless products
Wireless services Total segments Non-allocated/
eliminations
Group
51'291 39'075
January - December January - December January - December
48'002 38'049
January - December January - December
39'79652'4704'468 1'747 -1'179 -721
Statement of financial position (1)
© u-blox Holding AG, March 18, 2016 Slide 16
• Very strong financial position with a liquidity (incl. marketable securities) of CHF 124.0m
• Inventory CHF 37.4m (thereof WIP CHF 13.4m)
• Goodwill reduced due to lower EUR/CHF rate
• Increase of intangible assets due to capitalization of R&D expenses
Comments Statement of financial position (condensed)
Dec. 31, Dec. 31, June 30,
(in CHF 000s) 2015 2014 2015
(audited) (audited) (unaudited)
ASSETS
Current assets
Cash and cash equivalents 112'387 37'662 30'390
Marketable securities 11'659 21'730 24'920
Trade accounts receivable 43'790 38'842 35'179
Other current assets 51'933 54'862 38'558
Total current assets 219'769 153'096 129'047
Non-current assets
Property, plant and equipment 14'708 14'836 13'824
Goodwill 56'716 57'903 53'512
Other Intangible assets 88'042 70'502 58'864
Financial assets 678 584 480
Deferred tax assets 6'930 4'826 6'104
Total non-current assets 167'074 148'651 132'784
Total assets 386'843 301'747 261'831
Statement of financial position (2)
© u-blox Holding AG, March 18, 2016 Slide 17
• Short-term bank borrowing of CHF 20m from 2014 was repaid with bond money
• Trade accounts payable of CHF 24.2m
• Non-current liabilities contains bond, provisions, deferred tax liabilities and pension liabilities
• Bond issued in the amount of CHF 60m (6 years, interest 1.625%) for providing financial flexibility
• Share capital increase due to exercise of options
Comments Statement of financial position (condensed)
Dec. 31, Dec. 31, June 30,
(in CHF 000s) 2015 2014 2015
(audited) (audited) (unaudited)
LIABILITIES AND EQUITY
Current liabilities 55'405 70'860 56'017
Non-current liabilities 83'117 18'011 14'615
Total liabilities 138'522 88'871 70'632
Shareholders’ equity
Share capital 6'053 5'930 5'899
Share premium 84'006 89'531 88'340
Retained earnings 158'262 117'415 96'960
248'321 212'876 191'199
Total liabilities and equity 386'843 301'747 261'831
Total equity, attributable to
owners of the parent
Statement of financial position
© u-blox Holding AG, March 18, 2016 Slide 18
• Strong equity ratio with 64.2% now including issued bond
• Payout of a dividend of CHF 1.90 per share proposed to the Annual General Meeting
• Increase by 18.8% from 2014
• Dividend payout ratio: 34.6% of net profit
Comments Total equity and equity ratio
138 151180
213248
84.3%
78.7%79.7%
70.5%
64.2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
50
100
150
200
250
300
2011 2012 2013 2014 2015
Equity Equity ratio
(million CHF) (% of total assets)
Statement of cash flows
© u-blox Holding AG, March 18, 2016 Slide 19
Comments Consolidated cash flow Statement (condensed)
• Strong operational cash flow with 22.1% of revenues (increase by 39.1% from 2014)
• Investing activities:
• CHF 34.6m investments into intangible assets, mainly capitalized R&D expenses and intellectual property
• CHF 8.4m investments into fixed assets
• CHF 9.7m net proceeds from marketable securities
• CHF 0.4m invested for acquisitions
• CHF 0.3m interest received
• Financing activities:
• CHF 10.7m dividend 2014 payment
• CHF 5.3m proceeds from issuance of ordinary shares
• CHF 20.0m used for repayment of short-term borrowings
• CHF 59.2m net proceeds from bond issue
Condendsed consolidated statement of cash flows
(in CHF 000s) 2015 2014
Net cash generated from operating activities 74'659 53'686
Net cash used in investing activities -33'367 -65'400
Net cash provided by / used in financing activities 33'776 14'991
Net increase in cash and cash equivalents 75'068 3'277
Cash and cash equivalents at beginning of year 37'662 33'163
Exchange gains/(losses) on cash and cash equivalents -343 1'222
Cash and cash equivalents at end of year 112'387 37'662
For the year ended
December 31,
Business review
CONNECTIONS THAT COUNT
© u-blox Holding AG, March 18, 2016 Slide 21
In the Internet of Things, everything from washing machines and light switches to pacemakers and running shoes is smart and connected. • u-blox plays a central role in
making it happen. • We have a team of dedicated
and talented specialists who are personally involved in developing solutions that count.
Pelle Svensson
Senior Principal Product Strategy
© u-blox Holding AG, March 18, 2016 Slide 22
CONNECTED CONSUMERS
MY JOB IS TO ENSURE MAXIMUM PRECISION IN DEVICES WHERE ACCURACY IS KEY
One of the products Alex had a hand in is the NEO-M8P. This is a small and easy-to-integrate navigational product that enables the down-to-the-centimeter precision required in unmanned aerial vehicle applications, such as Infrastructure inspection and mapping, for which drones are the ideal solution.
Alexander Somieski
Senior Manager, Navigation Development
© u-blox Holding AG, March 18, 2016 Slide 23
CONNECTED CARS
MY TEAM HELPS CAR MANUFACTURERS DELIVER OUTSTANDING CONNECTIVITY
Jasna is currently working on the powerful TOBY-L3 platform, which is an in-vehicle LTE cellular communications gateway, enabling vehicles to connect to the Internet. TOBY-L3 is a platform for telematics applications such as eCall, diagnostics, concierge services, stolen vehicle tracking and many others
Jasna Mrcarica
Senior IC Design Engineer
CONNECTED CITIES
© u-blox Holding AG, March 18, 2016 Slide 24
OUR OBJECTIVE IS CLEAR: ENABLE THINGS TO COMMUNICATE WITH EVERYTHING ELSE
Hanna is part of a team that develops and perfects components like NINA-B1, a short-range device that makes cities more intelligent. Installed in streetlights that react automatically to traffic density and lighting up as frequency increases, NINA-B1 transmits a signal that activates the next lamp. As a result, energy costs can be significantly reduced. Hanna Winberg
Senior engineer
Product launches
© u-blox Holding AG, March 18, 2016 Slide 25
TOBY-L201
The world’s first 4G Cat 4 module with 3G WCDMA fall-back.
TOBY-L280
The fastest 4G module in an ultra-small package.
ELLA-W1 & EMMY-W1
Automotive grade for multi-radio standards, able to handle Wi-Fi, Bluetooth and NFC in automotive environments.
CAM-M8C
Offers simultaneous GNSS operation for GPS/GLONASS, GPS/BeiDou or GLONASS/BeiDou and delivers precise, jamming-resistant and reliable positioning.
THEO-P1
Compact, automotive grade module. Ideal for V2X trials and early deployments.
TOBY-R2 & LARA-R2
Two low-data-rate products with 4G technology.
ODIN-W262
features an integrated antenna and is designed specifically for IoT applications that need advanced multi-radio capabilities.
u-blox M8
Ramped up production of u-blox M8, a new GPS/GLONASS receiver platform for low-power devices
Expanded relationships with 5200 customers
Romteck, Australia
Fire monitoring services
© u-blox Holding AG, March 18, 2016 Slide 26
Liverock Technologies, Japan
Smart IoT gateway
Large diversification by geography, market and applications
REYAX Technology, Taiwan
3G GNSS tracking platform
Continued high customer satisfaction
• Xirgo Technologies is a leading provider of innovative products for M2M markets (mobile monitoring and control, fleet management, and container and trailer tracking)
• Xirgo’s challenge is customization.
• Xirgo want to design products using the chips and modules available that will answer all their customers’ needs.
• Xirgo want to be able to adapt to changing market conditions
and supplying the kind of quality that keeps customers loyal.
• Why did Xirgo choose u-blox?
• u-blox meets Xirgo’s expectations regarding turnaround and delivers products that are easy to adapt to a particular
customer need.
• u-blox supplies technology that meets all Xirgo’s expectations, and comes up with top-quality products suitable for all their
markets.
© u-blox Holding AG, March 18, 2016 Slide 27
Tracking box for usage based car insurance
New strategic partnerships
• CAR 2 CAR Communication Consortium
• Dedicated to the development and deployment of Cooperative Intelligent
Transport Systems (C-ITS).
• Develop roadmaps for vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I)
communications to improve road traffic safety and efficiency.
• M2M Alliance
• Drive innovation in M2M solutions and Internet of Things (IoT).
• Develop next generation M2M applications and solutions, in particular in the
automotive and industrial markets.
© u-blox Holding AG, March 18, 2016 Slide 28
Laying the foundations for the leading-edge innovations of
the future • The past year saw a 19% increase in the
R&D engineering team, bringing it to 517 employees.
• Addition of new R&D centers in Berlin and Tampere brought the total in the USA, Europe and Pakistan to 517 employees.
• Spending on R&D in 2015 accounted for 19.2% of revenues.
• The growth process is ongoing, and we continue to recruit R&D talents for our locations in 11 different countries.
© u-blox Holding AG, March 18, 2016 Slide 29
u-blox maintains a high degree of flexibility, adapting to changing market needs and demands
locate, communicate, accelerate
Strategy
Acquisition for accelerating business growth
2009 2011
• NeonSeven
• Geotate
• Fusion Wireless
• SigNav assets
2012
• 4M Wireless
• Cognovo
• Fastrax
2014
• connectBlue
• Antcor
© u-blox Holding AG, March 18, 2016 Slide 31
Lesswire
• Acquisition of assets as of 1 Jan 2015: BT and Wi-Fi products, designs and staff
2015
• Lesswire assets
Strategic priorities 2016 (1)
Market position
© u-blox Holding AG, March 18, 2016 Slide 32
Outlook 2016
• Put our enlarged sales force to work to focus on specific market sectors and accelerate growth in specific markets
• Improve navigation technology and automotive quality products to consolidate our leading position in global automotive markets
Outlook 2016
• Adding new features with outstanding performance
• Add value and performance by allowing customers to use several u-blox components side by side
Technology & Innovation
Strategic priorities 2016 (2)
© u-blox Holding AG, March 18, 2016 Slide 33
Operational excellence
Outlook 2016
• Adoption of lean processes for the management of innovation and creativity (new products)
• Cost-effective ways of developing hardware and software compatible with international functional safety standards (ISO 26262)
Outlook 2016
• Establish partnerships with companies offering services that augment performance and add value to our components
• Review acquisition opportunities through which we can acquire technologies that broaden our existing portfolio
Strategic partnerships & acquisition opportunities
locate, communicate, accelerate
Outlook
• Continued strong business growth in 2016
• Impact by product mix on relative gross margin
• Natural hedging protects relative gross margin against foreign exchange variations
• Exchange rate assumptions for 2016: EUR/CHF: 1.08 USD/CHF: 0.97 GBP/CHF: 1.42
• FX-sensitivity against CHF on Guidance 2016
Outlook
Goals
• Grow business with new products
• Wireless
o Expansion of module product line for 3G and 4G
• Positioning
o Business growth based on u-blox M8
o Announcement of new products
• Short Range
o Launch continually new products
o Expand with trend for many IoT* applications
• Continued focus on strategic development
• Strengthening of the global presence
• Operational excellence for higher efficiency
Slide 35
Financial performance outlook 2016
© u-blox Holding AG, March 18, 2016
*) 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 + 23.6% + 1.2% - 2.0%
Actual
FY 2014
Actual
FY 2015
Guidance 2016*)
Revenue 270.0m 338.3m 395m…405m
EBIT 38.3m 51.3m 56m… 60m
CHF CHF CHF
*) Internet of Things
© u-blox Holding AG, March 18, 2016
Upcoming events
• Latest registration date for AGM: April 19, 2016
• Annual General Meeting: April 26, 2016
• Shares traded ex dividend: April 28, 2016
• Dividend payout: May 3, 2016
• Half-year results 2016: August 26, 2016
Slide 36
Thank you!
locate, communicate, accelerate
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