H1 2021 Results u-blox Holding AG

Thomas Seiler, CEO

Roland Jud, CFO

20 August 2021

u-blox Holding AG2

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.

H1 2021 financial results

H1 2021 business review

Strategy

Outlook

Q&A

u-blox Holding AG3

Agenda

u-blox Holding AG4

H1 2021 financial results summary

1) Excl. Share-based payments, impacts based on IAS-19, amortization of intangible assets acquired, impairments and non-recurring expenses

H1 2021 H1 2020

IFRS

reported adjusted1 adjusted1

Revenue 10.8%

(at constant exchange rates) (16.5%)

Gross Profit 89.7m 89.9m 79.4m 13.3%

Gross margin (%) 46.6% 46.7% 45.6%

EBITDA 25.4m 28.7m 24.1m 19.0%

EBITDA margin (%) 13.2% 14.9% 13.9%

Operating Profit (EBIT ) 5.6m 10.5m 13.2m -20.5%

EBIT margin (%) 2.9% 5.5% 7.6%

Net Profit 2.3m 6.3m 4.7m 34.5%

Cash Flow from operating activities 43.0m 43.0m 13.9m 210.1%

Free Cash Flow 27.7m 27.7m -21.9m 226.3%

EPS in CHF, fully diluted 0.32 0.89 0.67

(CHF millions, except EPS and margins)

Change 2021

to 2020

192.7m 192.7m 174.0m

u-blox Holding AG5

Financial highlights

• Financial results reflect solid growth driven by expansion of demand, but highly limited by

component constraints

• Total revenues of CHF 192.7m, an increase of 10.8% (16.5% at constant exchange rates)

• APAC revenues increased by 5.4% to CHF 73.9m

• EMEA revenues increased by 15.0% to CHF 59.4m

• AMEC revenues increased by 22.4% to CHF 59.9m

• Gross profit contribution (adjusted) of CHF 89.9 million, growth of 13.3%

• Gross margin (adjusted) 46.7%, highest gross margin since H1 2018

• EBITDA (adjusted) was CHF 28.7m, compared to CHF 24.1m last year

• Cash flow from operating activities of CHF 43.0m in H1 2021, compared to CHF 13.9m

last year

• Free cash flow of CHF 27.7m (H1 2020: CHF -21.9m)

u-blox Holding AG6

Revenue and EBITDA

Comments

• H1 2021 revenue growth year-over-year

(10.8% compared to H1 2020)

• Negative currency impact revenue

growth at H1 2020 rates 16.5%

• EBITDA (adjusted) margin of 14.9%

Revenue and EBITDA (adjusted)

393.3 385.1

333.5

190.6174.0

192.7

81.271.7

42.232.7

24.1 28.7

0

50

100

150

200

250

300

350

400

450

2018 2019 2020 H1.19 H1.20 H1.21

Revenue EBITDA (adjusted)

(million CHF)

48.9 59.9

55.0

59.0

70.1

73.9

H 1 . 2 0 H 1 . 2 1

Revenue( C H F m i l l i o n s )

Americas EMEA (incl. HQ) APAC

174.0

40.3%

31.6%

28.1%

38.3%

30.6%

31.1%

192.7

u-blox Holding AG7

Revenues by geography

Comments

• APAC revenue increased by 5.4%

• Strong continued business in Japan and Korea, flat in

China

• Some countries yet to fully recover from COVID-19

• EMEA revenue increased by 15.0%

• Increased demand for automotive, smart city,

infrastructure and consumer tracking applications

• Stagnant in industrial applications

• Americas revenue increased by 22.4%

• Growth with automotive, telematics, medical and

wearable applications

• Reduced demand for industrial infrastructure

Note: based on reporting area

63.4%

23.8%

7.3%

5.5%

u-blox Holding AG8

Market trends

Comments

Growth patterns:

• Industrial markets stable

• Tracking and telematics

• Automation

• Automotive market strong growth

• In-car navigation

• Telematics

• Consumer markets very strong

expansion

• Wearables and tracking

Revenue split per market

Note: Estimate

H1 2021

H1 2020

57.4%26.8%

12.6%

3.2%

Industrial Automotive Consumer Not assigned

u-blox Holding AG9

Shipments and ASP development

Comments

• Module business strongly

increased with decline in

ASP due to product mix

• Very strong increase

overall chipset volume due

to increase in consumer

and automotive markets

• ASP changes with product

mix, with positive impact

on gross margin

Modules GNSS chips Revenue

0.00

2.00

4.00

6.00

8.00

10.00

0

10

20

30

40

2018 2019 2020 H1.19 H1.20 H1.21

Shipments modules ASP

(million units) (CHF)

29.1%

0

50

100

150

200

250

300

350

400

450

2018 2019 2020 H1.19 H1.20 H1.21

Modules Chips Other

(million CHF)

385.1

190.6

393.3

192.7

333.5

78%

20%

25%

75%

23%74%74%

24%24%

76%

174.0

20%

78%

0.00

0.50

1.00

1.50

2.00

2.50

0

10

20

30

40

50

60

70

2018 2019 2020 H1.19 H1.20 H1.21

u-blox 6 u-blox 7

u-blox 8/M8 u-blox 9

u-blox 10 ASP

(million units) (CHF)

43.5%

u-blox Holding AG10

Gross profit

Comments

• Gross profit (adjusted) of CHF 89.9m

• Gross profit margin (adjusted) increased

to 46.7%

• H1 2021 margin reflects positive

impacts from product mix and revenue

growth

Gross profit (adjusted) Gross profit margin (adjusted)

177.9 175.1

150.9

86.1 79.489.9

45.2% 45.5% 45.3% 45.2% 45.6% 46.7%

0%

10%

20%

30%

40%

50%

0

20

40

60

80

100

120

140

160

180

200

2018 2019 2020 H1.19 H1.20 H1.21

Gross Profit (adjusted) % of revenue

(million CHF) (in % of revenue)

u-blox Holding AG11

Distribution & Marketing / Research & Development

R&D expenses* (adjusted)D&M expenses* (adjusted)Comments

• D&M expenses* (adjusted)

increased due to increased

revenues and margins with

effects on bonus accruals

• R&D expenses* (adjusted)

increased due to we brought

products earlier into

amortizations, and lower

capitalizations as a result of

• more R&D effort carried in agile

processes

• strong efforts for re-designing

modules with better available

components

67.8

78.9 82.4

39.8 39.5

52.3

17.2%

20.5%

24.7%

20.9%

22.7%

27.1%

0%

5%

10%

15%

20%

25%

30%

0

10

20

30

40

50

60

70

80

90

2018 2019 2020 H1.19 H1.20 H1.21

R&D expense (adjusted) R&D expense % of revenues

(million CHF) (in % of revenue)

34.8 35.231.9

17.815.8

18.1

8.8%9.1%

9.6%9.3%

9.1%9.4%

0.0%

2.5%

5.0%

7.5%

10.0%

0

5

10

15

20

25

30

35

40

2018 2019 2020 H1.19 H1.20 H1.21

D&M (adjusted) % of revenues

(million CHF) (in % of revenue)

*) expenses including depreciation and amortization

u-blox Holding AG12

Income statementAdjusted and IFRS numbers

Comments

• Adjustments are share-based payments of CHF 1.8m,

pension impact of IAS-19 of CHF 0.7m, amortization of

intangible assets acquired of CHF 1.6m and non-

recurring expenses of CHF 0.8m

• R&D expenses increased due to lower capitalization (CHF 15.2m), higher amortization (CHF 11.8m) of newly launched products, and full consolidation of Sapcorda

• Financial costs consists primarily of foreign exchange losses, the interest for the two bonds, and the result of reversal of equity consolidation of Sapcorda GmbH

• Financial income is mainly driven by unrealized foreign exchange gains

• For group adjustments corporate tax rate of 18.1% applied as in H1 2021

(in CHF 000s) (IFRS) % revenue

Adjustments2)

(adjusted) % revenue (adjusted) % revenue

Revenue 192’734 100.0% 192’734 100.0% 173’957 100.0%

Cost of sales -103’008 -53.4% 207 -102’801 -53.3% -94’565 -54.4%

Gross Profit 89’726 46.6% 207 89’933 46.7% 79’392 45.6%

Distribution and marketing expenses -18’831 -9.8% 765 -18’066 -9.4% -15’805 -9.1%

Research and development expenses -54’430 -28.2% 2’152 -52’278 -27.1% -39’482 -22.7%

General and administrative expenses -12’004 -6.2% 1’806 -10’198 -5.3% -11’373 -6.5%

Other income 1’137 0.6% 1’137 0.6% 505 0.3%

Operating Profit (EBIT) 5’598 2.9% 4’930 10’528 5.5% 13’237 7.6%

Finance income 5’090 2.6% 5’090 2.6% 87 0.1%

Finance costs -6’594 -3.4% -6’594 -3.4% -3’533 -2.0%

-1’456 -0.8% -1’456 -0.8% -1’907 -1.1%

Profit before income tax (EBT) 2’638 1.4% 4’930 7’568 3.9% 7’884 4.5%

Income tax expense -383 -0.2% -894 -1’277 -0.7% -3’207 -1.8%

Net Profit 2’255 1.2% 4’036 6’291 3.3% 4’677 2.7%

Minority interests 21 0.0% 21 0.0% -69

2’234 1.2% 4’036 6’270 3.3% 4’746 2.7%

Earnings per share in CHF 0.32 0.89 0.67

Diluted earnings per share in CHF 0.32 0.89 0.67

Operating Profit (EBIT) 5’598 2.9% 4’930 10’528 5.5% 13’237 7.6%

Depreciation and amortization 19’813 10.3% -1’617 18’196 9.4% 10’905 6.3%

EBITDA 1)25’411 13.2% 3’313 28’724 14.9% 24’142 13.9%

1)

2) Adjustments are impacts of share based payments, Pension calculation according to IAS-19, Non-recurring expenses, impairments and

amortization of intangible assets acquired

Share of profit of equity-accounted investees,

net of taxes

Jan-Jun 2021 Jan-Jun 2021 Jan-Jun 2020

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.

Net Profit, attributable to equity holders of the

parent

u-blox Holding AG13

Statement of financial position

0

100

200

300

400

500

600

700

2017 2018 2019 2020 H1.2021

Fixed Assets

Inventory

Accounts Receivable

Other current assets

Cash (incl. marketable

securities)

(mill

ion

CH

F)

Total Assets

0

100

200

300

400

500

600

700

2017 2018 2019 2020 H1.2021

Short Term Debt

Long Term Debt

Shareholders' Equity

Total Liabilities

(mill

ion

CH

F)

Comments

• Strong financial position with a liquidity (incl. marketable

securities) of CHF 85.6m (Dec. 2020: CHF 94.4m)

• Inventory CHF 23.8m (Dec. 2020: CHF 33.6m) decreased due

to high demand

• Trade receivables CHF 41.3m (Dec. 2020: CHF 34.0m)

• Capitalized R&D now CHF 166.0m (Dec. 2020: CHF 162.5m)

• Current liabilities contain among others trade payables of

CHF 18.6m (Dec. 2020: CHF 17.8m) and bridge loan from the

bond repayment of CHF 25.0m

• Non-current liabilities contain bond of CHF 60.8m, deferred

tax liabilities CHF 1.8 m, employee benefits (IAS-19)

CHF_21.3m, provisions CHF 7.8m and leasing liabilities

based on IFRS-16 of CHF 29.2m

u-blox Holding AG14

Global customer base

Comments

• Widespread across different

applications and geographical regions

• Strong and growing customer base,

serving 10’300 customers worldwide in

2021 (2020: 9’000 customers)

• Low customer dependency

• 74 customers total 80% of revenue

• Largest customer accounts for 5.6% of

total revenue in H1 2021

• 10 biggest customers account for 31.7%

of total revenue in H1 2021

Number of customers totaling 80% of revenue

104 108

93 94 97

74

0

20

40

60

80

100

120

2018 2019 2020 H1.19 H1.20 H1.21

(# Customers)

u-blox Holding AG15

Employment

Average number of employees (FTE based)Employee breakdown (end of June 2021, FTE based)

Note: 76% of employees based outside Switzerland (spread across 18 countries) Note: FTE = full time equivalent

893993 1’043

1’124 1’136

0

200

400

600

800

1000

1200

2017 2018 2019 2020 H1.21

(Average FTE)

Research &

development

67%(2020: 798)

Sales,

marketing,

support 16%

(2020: 189)

Logistics,

admin

16%(2020: 173)

756183

184

Total = 1'123 FTE (2020: 1'161 FTE)

u-blox Holding AG16

Statement of financial position

Comments

• Strong equity base maintained

• Equity ratio of 58.1% (2020: 54.6%)

• Treasury shares for option program

CHF 32.0m (Dec. 2020: CHF 32.0m)

• Equity ratio without treasury shares:

60.6% (2020: 57.2%)

• Equity ratio without IFRS 16:

62.3% (2020: 58.2%)

• No minority interests in 2021 (2020:

CHF 0.1m)

Total equity and equity ratio

319349 351

283 292

60.7% 63.1% 60.0%

54.6% 58.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

50

100

150

200

250

300

350

400

2017 2018 2019 2020 H1.21

Equity Equity ratio

(million CHF) (% of total assets)

u-blox Holding AG17

Segment informationIFRS numbers

(in CHF 000s) 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020

Revenue third parties 192’680 173’795 54 162 192’734 173’957 0 192’734 173’957

Revenue intragroup 0 17’405 16’519 17’405 16’519 -17’405 -16’519 0 0

Total revenue 192’680 173’795 17’459 16’681 210’139 190’476 -17’405 -16’519 192’734 173’957

EBITDA*) 23’836 18’336 1’575 1’525 25’411 19’861 0 0 25’411 19’861

Depreciation -4’082 -4’636 -1’414 -1’385 -5’496 -6’021 0 0 -5’496 -6’021

Amortization -12’990 -5’144 -1’260 -382 -14’250 -5’526 0 0 -14’250 -5’526

Impairment -67 -74’104 0 -67 -74’104 0 0 -67 -74’104

Operating profit (EBIT)

Finance income 5’090 87 5’090 87

Finance costs -6’594 -3’533 -6’594 -3’533

Share of profit of equity-accounted investees, net of taxes -1’456 -1’907 -1’456 -1’907

EBT -1’504 -3’446 2’638 -71’143

-242 5’598 -65’790

January - June January - June January - June

0 06’697 -65’548

January - June January - June

-65’7905’598-1’099

Positioning and

wireless products

Wireless services Total segments Non-allocated/

eliminations

Group

u-blox Holding AG18

Consolidated statement of cash flows

Comments

• Cash flow from operating activities

positively impacted by net working

capital of CHF 8.9m

(H1 2020: CHF -5.8m)

• Maintained investment activities

• Free Cash Flow (before acquisitions &

participations in capital increase)

CHF 25.8m (H1 2020: CHF -8.4m)

• Cash-in through acquisition of 100% of

Sapcorda GmbH CHF 1.8m

For the period ended For the period ended

(in CHF 000s) June 30, 2021 June 30, 2020

Net Profit 2’255 -60’022

Depreciation & Amortization 19’813 85’651

Other non-cash transactions 2’942 3’312

Financial income & financial expense 2’960 5’353

Income tax expense 383 -11’121

Change in net working capital and provision 8’901 -5’825

Income tax paid/(repaid) 5’711 -3’493

Net cash generated from operating activities 42’965 13’855

Net investment into property, plant and equipment -1’893 -2’855

Net investment into intangibles -15’541 -19’855

Net investments into financial assets 315 467

Acquisition of subsidiairies, net of cash acquired & participations 1’831 -13’518

Net cash used in investing activities -15’288 -35’761

25’846 -8’388

Free Cash Flow 27’677 -21’906

Proceeds from issuance of ordinary shares 0 0

Par value reduction / Dividends paid to owners of the parent 0 0

Net proceeds from borrowings -34’962 1’076

Payment of lease liabilities -2’563 -2’313

Purchase of treasury shares 0 0

Non-controlling interests 82 125

Interest paid -2’323 -2’566

Net cash used in financing activities -39’766 -3’678

Net decrease in cash and cash equivalents -12’089 -25’584

Cash and cash equivalents at beginning of year 93’874 127’424

Exchange gains/(losses) on cash and cash equivalents 3’314 -1’735

Cash and cash equivalents at end of the period 85’099 100’105

Free Cash Flow (before Acquisition & participations

in capital increase)

u-blox Holding AG19

H1 2021 Business Review

u-blox Holding AG20

Business highlights

• Strong financial results driven by broad-based expansion of demand, highly limited by

component constraints

• Bookings accelerated throughout the first half of 2021 with bookings exceeding

FY_2020 revenue by far, current orderbook 7x the amount recorded in summer 2020

• Acquired full ownership in the Sapcorda Joint Venture, the leading provider of

advanced GNSS augmentation services serving the high precision GNSS mass market

• Aligns with company’s strategic goal of driving innovation and growth of GNSS augmentation

services

• Expands company’s suite of location services and complements existing data services,

including assistance data and communication service offerings

21

Product launches H1 2021

CloudLocateA service that offloads the position calculation from IoT devices into the cloud.

CloudLocate is ideally suited for Industrial IoT tracking applications that must survive in the field for months or years without battery replacement and only need a few position updates per day.

LEA-F9T and ZED-F9TThese timing modules and antenna make it easy to develop high precision solutions for network and other time and frequency critical applications.

ALEX-R5A miniature cellular module that integrates low power wide area (LPWA) connectivity and GNSS technology into an ultra-small system-in-package (SiP) form factor.

Its tiny dimensions make it a perfect fit for size constrained applications.

Cellular communication

Short range radiocommunication Positioning

20+ new products launched providing additional solution capabilities

Services

u-blox Holding AG

MAYA-W1The module is tailored to a wide range of fast-growing, future-oriented professional applications, such as power management, electric vehicle charging, professional appliances, tracking, telematics, and fleet management.

u-blox Holding AG22

Customer relationships: iGPSPORTLatest cycling computer uses u-blox M10 to deliver ultra-long performance

• As the cycling scene diversifies,

longevity and performance in complex

signal environments are gaining

importance as key differentiators.

• The cycling computer leverages the

u-blox M10 platform’s ultra-low power

consumption, compact size, and its

ability to track four global navigation

satellite systems (GNSS) to offer

endurance athletes a superior user

experience.

• Adopting the u-blox M10 positioning platform in their iGS320 cycling computer brought iGPSPORT an 80 percent increase the power autonomy to deliver 72 hours of continuous tracking, up from 40 hours in their previous solution.

u-blox Holding AG23

Customer relationships: Xpeng Motors

• Xpeng Motors has chosen u-blox’s F9

technology for its P7 Super-long range

sports EV sedan.

• u-blox F9 has been incorporated into the

vehicle’s XPILOT 3.0 advanced driver

assistance system (ADAS) used for

navigation-guided driving, automated

parking, and autonomous driving.

• For instance, once a navigation

destination is set on a specific highway,

the car will follow the route guidance to

execute autonomous lane changing,

switching to high-speed routes, and

selecting the optimal route in real-time.

• Dead reckoning technology based on inertial sensors extends high precision performance to otherwise challenging urban environments.

Xpeng Motors selects u-blox high precision GNSS technology for Smart Electric Vehicle

24

Strategy

u-blox Holding AG

u-blox Holding AG25

Inorganic growth18 acquisitions in 11 years

• Strong acceleration via

acquisitions

• Sapcorda the latest

acquisition

• 15 technology and

service focused deals,

driving expansion of

technology and

product portfolio

• 3 business add-ons

adds scale and

expands customer

base

• Successful, fast

integrations

• Key people still on

board

18

u-blox Holding AG26

Outlook

u-blox Holding AG27

Guidance 2021

• Strong recovery of demand and record bookings since

late 2020

• Content extension in automotive

• Expansion of industrial IoT

• Rapid ramp-up with new products

• Efficiency measures fully implemented

• Revenues lag bookings due to supply constraints for

electronic components

• Only short visibility on obtainable output capacity

• Additional costs expected related to Sapcorda

acquisition integration

• Lower R&D capitalization expected due to increased

R&D efforts with agile processes, and to re-designing

of modules with better available components

• Newly launched products increase amortizations

+10% of USD EUR GBP

Revenue + 9% + 1% 0%

EBITDA + 16% 0% -2%

EBIT + 22% - 1% - 3%

• Exchange rate assumptions for 2021: Average rates of 2020

(USD: 0.939, EUR: 1.075, GBP: 1.204)

• FX-sensitivity against CHF:

CHFActual HY

2021(adjusted)

Guidance 2021 (June)

(adjusted)

Guidance 2021 (Aug)(adjusted)

Revenue growth at 2020 exchange rates

16.5% 11…19% 15…19%

EBITDA margin 14.9% 16…22% 16….20%

EBIT margin 5.5% 9…12% 6…9%

• Analyst day 23 November, 2021

• 2021 full year results 11 March, 2022

• Annual General Meeting 20 April, 2022

u-blox Holding AG28

Upcoming events

u-blox Holding AG29

Thank you for your attention