new annual results 2015 u-blox holding ag · 2016. 3. 18. · annual results 2015 u-blox holding ag...

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.


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


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


• 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


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


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


• 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


• 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


• 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


Distribution & marketing / Research & development


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


Research & development

69%

Sales, marketing,

support

19%

Logistics, admin 12%

Total = 736 FTE

509

140

87

Employees


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


• 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


*) 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)


• 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


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)


• 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


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


• 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


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


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


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

../../VIDEO/01_Ublox_Market_Consumer_V2.mp4


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


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


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


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.


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.


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 maintains a high degree of flexibility, adapting to changing market needs and demands


Strategy

Acquisition for accelerating business growth

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: BT and Wi-Fi products, designs and staff

2015

• Lesswire assets

Strategic priorities 2016 (1)

Market position


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)


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


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


*) 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


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!


new annual results 2015 u-blox holding ag · 2016. 3. 18. · annual results 2015 u-blox holding ag...

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