locate, communicate, accelerate
u-blox Analyst day 2017
31 October 2017
UBX-17058225
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
Agenda
9.45 Registration & Coffee
10.00 Welcome: Thomas Seiler
10.10 Company overview & strategy: Thomas Seiler
10.30 Operations: Jean-Pierre Wyss
11.00 Introduction to the Connected Industry: Thomas Seiler
11.10 Positioning: Daniel Ammann
11.40 Coffee break
12.00 Short Range: Herbert Blaser
12.30 Cellular: Andreas Thiel
13.00 Key takeaways: Thomas Seiler
13.10 Lunch
Slide 3 © u-blox Holding AG
Company Overview and Strategy
Thomas Seiler, CEO
Enabling the Internet of Things (IoT) – u-blox at the core
© u-blox Holding AGSlide 5
u-blox: Unique technology and product line-up
© u-blox Holding AGSlide 6
PositioningCellular
Communication
Short Range
Communication
Integrated Circuits
Modules
Services
CellLocate® (modem based positioning)AssistNowTM (world wide GNSS assistance service, on- and off-line)Correction DataFOTA (Firmware update over the air)Lifetime Security
• u-blox wireless and positioning technologies are available in a unique combination of chips and modules
• The combination of technologies provides for solutions that deliver extra value not available otherwise
• This strategic core delivers the inimitable market placement and drives our profitability
PositioningCellular
Communication
Short Range
Communication
Integrated Circuits
Modules
Services
CellLocate® (modem based positioning)AssistNowTM (world wide GNSS assistance service, on- and off-line)Correction DataFOTA (Firmware update over the air)Lifetime Security
Strong competitive advantage
© u-blox Holding AGSlide 7
• Important strategic benefits from the unique u-blox line-up
• Long-term sustained competitive position
Strong synergies between the technologies
High cross selling effect
Full
ow
ners
hip
of
tech
nolo
gy
Maxim
um
com
pete
nce
Marg
in e
xpansi
on
Cro
ss f
unct
ional v
alu
e
Serv
ices
on
top o
f H
W
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%
Continuous growth and strong profitability (1)
© u-blox Holding AGSlide 8
Geographical revenue mix Application revenue mix
IndustrialConsumer
Automotive
Continuous growth and strong profitability (2)
© u-blox Holding AGSlide 9
Gross Profit trend EBITDA trend
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%
(million CHF)
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%
Solid balance sheet – a result of
continued strong profitability
Slide 10
• Tight control of OPEX
• Well balanced OPEX allocation between R&D, Marketing/Sales and Administration
• R&D financed from available free cash flow
• R&D capitalization follows IFRS
© u-blox Holding AG
Innovation
Slide 11
New applications
Core technology
Solutions
Security
Robustness
Size and cost reduction
18% OF SALES INVESTED IN R&D
© u-blox Holding AG
Highly diversified global customer base
© u-blox Holding AGSlide 12
5700CUSTOMERSWORLDWIDE
15SALES
OFFICES
66COUNTRIES
WORLDWIDE
• Broad customer base with more than 5700 customers and significant market share
• Expanding customer base: Customers in more than 66 countries worldwide
• Customer diversity: Top 65 customers in 24 countries
• No single customer responsible for more than 5.3% of total sales
• 15 sales offices and 14 R&D locations
Operations
Wyss Jean-Pierre, EVP, Head of Production & Quality
100% Fabless operations: Our manufacturing partners / main suppliers
Slide 14
Chip manufacturing for u-blox
technology
Wafer fabsISO/TS 16949
ISO 14001
IC packaging and testingISO/TS 16949
ISO 14001
Chip suppliers for cellular
technology
ISO 9001
ISO 14001
Chip suppliers for short range
technology
ISO 9001
ISO 14001
Module assembly and testing
for all technologies
ISO/TS 16949
ISO 9001
ISO 14001
© u-blox Holding AG
Our 1st class main manufacturing partners
Slide 15
Used Technology nodes: 180 nm … 28 nm
All our manufacturing partners continually invest in manufacturing capacity and capabilities to help ensure adequate supply – so we can stay ahead of demand and can meet tight market windows and keep technological leadership
Revenue not public
Capacity 10 m wafer (200 mm equivalents)
Employees 18,000
Investments per year
not public
Revenue USD 29.4 billion
Capacity 20 m wafer (200 mm equivalents)
Employees 47,000
Investments per year
USD 10 billion
Revenue USD 3.9 billion
Capacity 3 billion MLF packages
Employees 21,900
Investments per year
USD 600 million
Revenue USD 24 billion
Capacity 550 smd-lines
Employees 200,000
Investments per year
USD 450 million
Used Technology nodes: 180 nm … 28 nm
© u-blox Holding AG
Our 1st class main manufacturing partners (locations and ranking)
Slide 16
# = global ranking of manufacturing partners in their segment
#3
#2
#2
#1
© u-blox Holding AG
Manufacturing strategy
• Long-term relationship with our manufacturing partners, all for more than 10 years
• Using purchasing power and technological expertise of our manufacturing partners
• Strong collaboration and continuous improvement programs established
• Tight relationships with our R&D, to support stable manufacturing processes and designs conceived for manufacturing
• Low capex required for growth of capacity business
• No capacity limitations and high flexibility
• Automotive-qualified fabs
• Fully automated production setup, to stay competitive with manufacturing costs
Slide 17 © u-blox Holding AG
Logistics as a strategic advantage in our business
High customer service focus – KPIs:
• Service level (availability of our
products of the shelf with no
lead time)
• Delivery reliability: Fulfilment of
delivery date requirements
Performance figures:
• 20,000 deliveries per year
• 500 active products (including
different versions and variants)
• 30% turn-business (delivered
within same month)
Slide 18
80.00%
82.00%
84.00%
86.00%
88.00%
90.00%
92.00%
94.00%
96.00%
98.00%
100.00%
CDR
Target
Customer delivery reliability in %
© u-blox Holding AG
Logistics as a strategic advantage in our business
• Logistics outsourced to our partners includes
• In-bound & out-bound logistics
• Direct shipment from our manufacturing partners to our customers world-wide
• EDI connections between our ERP system and our manufacturing partners optimize logistics flow
• Supply chain operations continually monitor KPIs and define improvement actions
• Full traceability through the whole supply chain
Slide 19 © u-blox Holding AG
High manufacturing yield
• Continuous yield improvement
programs in place
• Production engineering monitors
the performance of manufacturing
setup and defines improvement
programs against targets
• Fully automated lines guarantee stable production figures and
excellent quality levels
• No repairs allowed, which
guarantees high outgoing quality
level
Slide 20
Sample GNSS module final yield in %
Horizontal Line:
FY Target
Product, tmonth
FY
© u-blox Holding AG
Quality system
• In-house Quality department
• Long-lasting experience with Tier 1 automotive customers
• Excellent audit results from leading customers
• Extensive reliability know-how and quality lab for analyzing chips and modules
• Selected suppliers are first class and have an excellent quality reputation and system in place
• Program for supplier audits and development programs
Slide 21 © u-blox Holding AG
Different quality standards & product grading for different market
requirements
Slide 22
Standard Grade Professional Grade Automotive Grade
Environmental conditions
Consumer environment Industrial environment Automotive environment
Temperature -20 … +65 °C -40 … +85 °C -40 … +85 °C or extended
Product Qualification JESD47 (ICs)
Subset of ISO 16750 (modules)
AEC-Q100 (ICs)
ISO 16750 (modules)
AEC-Q100 (ICs)
Extended ISO 16750 (modules)
Process levels for design, manufacturing and testing
• 100% outgoing test
• product traceability
• PCN process
• Failure analysis
Standard grade, plus:
• 100% Automatic X-Ray and Optical Inspection on modules
Professional grade, plus:
• PPAP
• ISO/TS 16949 manufacturing
• automotive test flow
• component traceability
• 8D failure reporting
• automotive PCN process
• long product life cycles
• 0-ppm program
© u-blox Holding AG
Excellent field reliability data – examples of customers
Slide 23
* 2017: up to Q2
0
5
10
15
20
25
2014 2015 2016 2017
pp
m
GNSS Chip, professional grade chip
Production
0km
Field
Target
ppm trend (total)
0
10
20
30
40
50
60
2014 2015 2016 2017
pp
m
GNSS module, professional grade module
Production
0km
Field
Target
ppm trend (total)
0
1
2
3
4
5
2015 2016 2017
pp
m
GNSS Chip, automotive grade chip
Production
0km
Field
Target
ppm trend (total)
YearQuantity
[millions]
Changeable fails Changeable fails ppmTotal
ppmProduction 0km Field Production 0km Field
2015 0.13 0 0 0 0.0 0.0 0.0 0.0
2016 0.45 0 0 0 0.0 0.0 0.0 0.0
2017 0.35 0 0 0 0.0 0.0 0.0 0.0
© u-blox Holding AG
Established Process Management System (ISO 9001)
Slide 24
• Continuous improvement initiatives (different methods like Six Sigma, Kaizen, EFQM) ensure our competitiveness in a demanding environment
CorporateStrategy
ManagementSystem
RiskManagement
InvestorRelations
Lead
Management
Opportunity
Management
Design-in
Management
Customer
Services
Customer
Development
Product
Definition
Product
Development
Product
Ramp-up
Product
Maintenance
Product
Phase-out
Forecast &
Planning
Production
Steering
Inventory
Management
Shipment
Management
HRManagement
ITManagement
LegalManagement
Marketing CommunicationsDocument
ManagementFinance
LaboratoryManagement
MANAGEMENT PROCESSES
CRM: CUSTOMER RELATIONSHIP MANAGEMENT
PLC: PRODUCT LIFECYCLE
SCM: SUPPLY CHAIN MANAGEMENT
SUPPORT PROCESSES
Sourcing
Enabler
InnovationManagement
ProgramManagement
Enabler
© u-blox Holding AG
The connected Industry
Slide 25 © u-blox Holding AG
The Connected Industry
Thomas Seiler, CEO
Focus topic: The Connected Industry
• The connected industry focuses on Industry 4.0, the fourth revolution
• This will make fundamental changes to the market
• Wireless & positioning technologies are key
Slide 26 © u-blox Holding AG
Internet ofThings
IoT and Industry 4.0
Slide 27
Industry4.0
Industry 4.0 represents the opportunity for manufacturing businesses to reinvent their processes by using new technologies in the process of building their products
Internet of Things represents the opportunity available to companies in leveraging smart, connected, devices in building, distributing, and managing their products and services for customers
Industrial Automation ”Industrial Internet”/ Industry 4.0
”Internet of Things” Smart Devices, Personal Area Networks
Connected
CityConnected
Consumer
Connected
Car
Connected
industry
© u-blox Holding AG
The future of the connected industry
Slide 28 © u-blox Holding AG
2015 2020 2025 2030
Cloud and agility
• Smart service
• Customer feedback
• Self learning
Smart Engineering
• Digital collaboration
• Digital modeling
Smart Factory
(Industry 4.0)
• Integrated planning
• Proactive maintenance
• Process automation
• Product lifecycle
Digital Marketing
• CRM
• Omni channel presence
• Self service portals
• Dynamic pricing
Agility Fast loop Closed loop Cooperative loop
Wireless technology makes the things that matter connected
The Connected industry
© u-blox Holding AGSlide 29
Goods tracking market to swell to
$5.6 billion in 2021
From 2014 to 2020, the number
of connected industrial controllers will triple; growing at an average
rate of 20%
Global wireless sensor network
market expected to grow to $ 1 billion by 2020
Source: (Technavio 2016)
u-blox applications
• Mobility
• Asset tracking
• Fleet management systems
• Aviation & UAV
• Farming
• Infrastructure
• Industrial terminal
• Automation & control
• Monitoring
• Router and gateway
• Security
• Healthcare
Key benefits of a connected industry
Traceability
• Each asset to be tracked in real-time, tagged with
position, and time-stamped data information
• Trace data, track alerts, solve issues and rectify
potential errors with no downtime
Connectivity and remote control
• More efficient operation by fully connecting each
element of the complete industrial system;
sensors, HMI devices, resource planning systems
(ERP, MRP, APS)
• Transfer data back and forth all the way
• Save on resources with remote monitoring and
controlling
Slide 30
Operator mobility
• Wirelessly connected terminals for staying
close to the operations
• Increase the operator flexibility and efficiency
and offer them mobility
Resource effectiveness
• Resource conscious, saving time and money
Optimization and flexibility
• Preventative maintenance and organizational
planning
• Seamlessly move a device within your
operations
© u-blox Holding AG
Connect Industry – a wide range of applications
Slide 31
Farming
Machine Control
Security
Healthcare
Industrial Terminals
Monitoring Routers and Gateways
© u-blox Holding AG
Technologies ideal for the connected industry
• Large variety of connectivity bandwidth
• Robust topologies
• Mesh technologies
• Low Power Wide Area (LPWA)
• ATEX explosion proof
Longevity
• Long-term availability
• Easy migration to new technologies
Wireless connectivity – the nerve system of the Connected Industry
Slide 32
Key wireless technology in the form of
integrated circuits and modules
• Cellular communications technologies
• Short range radio technologies
• Satellite based positioning technologies
Security focus
• Secure boot
• Interface security
• API control
• Spoofing/jamming detection
© u-blox Holding AG
Unique market positioning of u-blox
• Three product centers deliver products for the Connected Industry markets
Slide 33
CEL SHO POS
© u-blox Holding AG
Connected Industry – The Positioning Story
Daniel Ammann, Executive Director of Positioning Products
Table of contents
• Market position, trends
• Innovation & future potential
• Offers connected industry
• Q&A
Slide 35 © u-blox Holding AG
Market position of u-blox Positioning products
Slide 36
• Market leader in GNSS for
• In-car navigation systems
• Time synchronization for cellular base stations
• Unmanned Aerial Vehicles (drones)
• People trackers
• Asset tracking
• Benchmark in performance and cost-effectiveness
• Innovator in accuracy, anti-spoofing, power efficiency, small size, and low cost
u-blox market share by volume excluding smartphones and tablets. Source: u-blox
estimate based on ABI research data 2017
© u-blox Holding AG
Positioning technology
• Standard precision products
• Meter level accuracy
• Suitable for most applications
• High tracking sensitivity
• Low power consumption
• High precision products
• Centimeter to decimeter level accuracy
• Suitable for a range of new applications
• Dead Reckoning products
• 100% positioning coverage incl. tunnels and urban
canyons
• For road-vehicle applications
• Timing & Frequency products
• For stationary and time, or frequency synchronization
Slide 37
LEA
17 x 22.4 mm2
CAM
9.6 X 14 mm2
NEO
12.2 x 16 mm2
EVA
7 x 7 mm2
MAX
9.7 x 10.1 mm2
u-blox module form factors – de-facto industry standards
High precision for the mass market
Communication link
Base
NEO-M8P-2
Rover
NEO-M8P-0
ZOE
4.5 x 4.5 mm2
© u-blox Holding AG
Market trends
• Consumer markets: Wearable devices, Smart/Shared Bikes
• Low cost, low power, good accuracy
• Industrial: Drones, Cellular base stations, Asset management
• Accuracy, Reliability, Integrity, Long-term availability
• Automotive: In-car navigation, ADAS, Autonomous road vehicles
• Accuracy, Integrity, Safety & Security
Slide 38 © u-blox Holding AG
Strong innovation pipeline in 2017
• New products:
• ZOE family – Ultra small, high performance, super low power
SiPs
• M8230-CT – Super low power GNSS receiver for portable
applications
• New business initiative
• Joint Venture Sapcorda to bring high precision GNSS
positioning to the mass market
Slide 39 © u-blox Holding AG
High Precision GNSS system view
• High-precision applications require measurement correction services
• Typical systems consist of
• Multi-band GNSS antenna
• Multi-band GNSS receiver
• Correction service provider
• Correction service receiver
• L-band satellite receiver – and/or -
• Cellular modem
Slide 40
Cellular
Accurate Position
Velocity
Time
GNSS Correction
Services
(Broadcast)
GNSS Reference
Station Network
Internet
L-Band Geostationary
Satellite
© u-blox Holding AG
High Precision GNSS system view
• High-precision applications require measurement correction services
• Typical systems consist of
• Multi-band GNSS antenna
• Multi-band GNSS receiver
• Correction service provider
• Correction service receiver
• L-band satellite receiver – and/or -
• Cellular modem
Slide 41
Cellular
Accurate Position
Velocity
Time
GNSS Correction
Services
(Broadcast)
GNSS Reference
Station Network
Internet
L-Band Geostationary
Satellite
© u-blox Holding AG
Slide 42
Sapcorda (Safe And Precise CORrection Data)
• Setup as a Joint Venture with u-blox, Bosch, Geo++, Mitsubishi Electric.
• Sapcorda Services GmbH will distribute GNSS positioning services for high precision GNSS applications.
• Targeting OEM, System Integrators for mass market applications (i.e. Automotive, Industrial & Consumer).
• Sapcorda to distribute GNSS correction services to serve the mass market
• Global and continent wide coverage.
• One way communication (Broadcast) with L-Band satellite & Internet distribution.
• Open system: available to all receiver manufacturers.
• Such services do not exist today and are required to bring high precision product to the mass market
© u-blox Holding AG
The GNSS technology evolution
Slide 43
From minutes to 26s From -130dBm
(outdoor) to -
167dBm (indoor)
From GPS to
GLONASS, QZSS,
BeiDou and
Galileo (multi
constellation)
From meters
to centimeters
AccuracyMulti GNSSSensitivityTTFF
2000 2005 2010 2015 2020
TTFF = Time to first fix (the first position determination)
© u-blox Holding AG
Further innovation potential for positioning products
• New GNSS launched in Europe (Galileo), China (BeiDou), Japan (QZSS), India (IRNSS), and add new signals (e.g. L2C, L5, L6) with improved characteristics are added
• Silicon technology advances allow for smaller sizes and other innovation
• Integrity and Functional Safety become important differentiation features
• Growth in volumes makes it possible to develop application specific products with the benefits of economy of scale
u-blox has a strong and well filled innovation pipeline
1575
L5 L2
12271176 MHz
BeiDou IRNSSGLONASSGPS Galileo Correction Services
L6 L1
© u-blox Holding AGSlide 44
Positioning products for
Connected Industry
Robust positioning for industrial use cases
• Great variety of use cases need versatile but robust receiver design
• Small size solutions yet high performance
• Battery operation
• GNSS satellite signals complemented by inertial sensor information
• Module the ideal form factor
Application Examples
Security – car alarmInsurance telematics Road tolling Fleet management
Slide 46 © u-blox Holding AG
Ultra small position solution with superior performance
ZOE module family
• Aimed for UAV, vehicle tracking, telematics
• Ultra small size form factor 4.5 x 4.5mm x 1.0mm
• Fully integrated, complete solution, reducing design and test efforts
• Ideal for passive antennas, due to built-in filters and signal amplifier
Slide 47
ZOE
4.5
mm
© u-blox Holding AG
High precision for autonomous vehicles
NEO-M8P module
• High precision solution (centimeter level)
• Increases productivity at a disruptive price point for the mass market
Slide 48
Autonomous Systems
Guidance Systems
© u-blox Holding AG
High precision in UAVs
NEO-M8P module
• High precision solution (centimeter level)
• Improved flight trajectory
Slide 49
Communication link up to 0.5 kbps
Base station GNSS receiver
Moving rover
GNSS receiver
Remote MonitoringInfrastructure Inspection
© u-blox Holding AG
High precision in surveying & mapping
NEO-M8P module
• Delivers Real-Time-Kinematics-level accuracy on a small, low power platform
Slide 50
Moving Rover GNSS Receiver
RTCM Corrections
SurveyingGIS Handhelds
RTK = Real Time Kinematics
© u-blox Holding AG
Summary & Q&A’s
u-blox
• is the leading supplier of Satellite based Positioning products
• has a well filled innovation pipeline
• has a selection of modules and chips to fit each customers’ needs
• delivers into most connected industry use cases, with a diversified portfolio of technologies
Slide 51 © u-blox Holding AG
Short Range Radio – Connecting the Things around us
Herbert Blaser, Senior Director of Short Range Products
Table of contents
• Key facts
• Offer for the connected industry and the connected car
• Market trends & future perception
• Demo
• Q&A
Slide 53 © u-blox Holding AG
Product center short range radio at a glance
• The Short Range product center was set up in 2014 on the basis of three acquisitions
• 5 R&D locations
• The products provide connectivity solutions for
• High-performance systems in automotive and industrial markets
• Embedded systems mainly for industrial markets
• Car-to-car interaction
Slide 54 © u-blox Holding AG
Connectivity for high-performance systems
• Complete portfolio for short range radio connectivity in cars and high-end industrial applications
• The main software runs on the host processor – mostly under Linux
• Many in-car applications are to connect phones, rear seat infotainment system, and cameras
Slide 55
EMMY-W114 x 20 mm
JODY-W14 x 20 mm
ELLA-W115 x 15 mm
LILY-W110 x 14 mm
New! High-end Wi-Fi 11ac / BTSimultaneous 2.4 / 5 GHz operation
Wi-Fi 11ac / BT2.4 / 5 GHz
Wi-Fi 11n/ BT2.4 / 5 GHz
Wi-Fi 11n2.4 GHz only
© u-blox Holding AG
Connectivity for embedded systems
• Typically our modules add connectivity to a simple micro-controller by using u-blox proven connectivity software
• Alternatively, customers can integrate their whole applicationon our modules with development tools from u-blox and partners
• The main applications are in industrial markets
• Our modules are optimized for mission critical applications
• They are exceptionally reliable
• Support a high level of security requirements
• Allow for efficient large scale deployments
Slide 56
ODIN-W215 x 22 mm
High-end gateway Wi-Fi 11n / BT2.4 / 5 GHzNew functionalityATEX certification
NINA-B110 x 14 mm10 x 10 mm
Bluetooth Low Energy2.4 GHzUpdate with BT 5.0
NINA-W110 x 14 mm10 x 10 mm
New productWi-Fi 11n2.4 GHz
NINA-B310 x 15 mm10 x 11 mm
New productBluetooth 5.0 long range2.4 GHz
© u-blox Holding AG
Connectivity between cars and infrastructure
• VERA-P1 is the leading module for car-to-car and car-to-infrastructure communications (V2X)
• Technology is at an inflection point:
• US mandate for use of 802.11p technology proposed; Korea to follow
• GM and VW are in the lead as first adopters of the technology
• Other interesting applications emerging: e.g. for truck platooning
on roadways, for off-road earth-moving vehicles in open mines and quarries
Slide 57
New product
802.11pDual/single antenna
VERA-P125 x 30 mm
© u-blox Holding AG
Bluetooth 5 and Mesh - enabling new applications
Bluetooth 5
• Double throughput
• 4 times the range, now up to 1000 meters
Bluetooth mesh becomes available
• It will open up new opportunities for new applications, especially in combination
with the long range of Bluetooth 5
• Standard has been released; chip suppliers are starting to support the features
Strong market traction
• Bluetooth 5 has geared up interest for this standard
• Bluetooth standardization organization has expanded
Slide 58 © u-blox Holding AG
u-blox has introduced Bluetooth 5
Slide 59
NINA-B1
Supports feature 1
Available
NINA-B3
Supports features 1, 2 and 3
AnnouncedAvailable for key customers
The Bluetooth 5 specification offers significant updates – feature highlights:
1. Higher data rates - doubling of maximum speed - from 1 Mbps to 2 Mbps
2. More data - eight times increase in broadcast messaging capacity
3. Longer range – four times the range of reach
© u-blox Holding AG
Today’s topology of IoT networks
Slide 60
• Star-topology: each device is
connected to one gateway• Many gateways needed to cover
a large network
• The data always follows the
same path to the cloud
Bluetooth / Wi-Fi
Gateways
NodesSensors, actuators
Cloud applicationsStorage, data analysis
Wi-Fi / Ethernet / Cellular
© u-blox Holding AG
Today’s topology of IoT networks
Slide 61
• Star-topology: each device is
connected to one gateway• Many gateways needed to cover
a large network
• When a gateway stops working,
the system fails
Bluetooth / Wi-Fi
Gateways
NodesSensors, actuators
Cloud applicationsStorage, data analysis
Wi-Fi / Ethernet / Cellular
© u-blox Holding AG
Today’s topology of IoT networks
Slide 62
• Gateway nodes are connected to
the cloud
• Nodes can be added and
removed dynamically
Bluetooth / Wi-Fi
Gateways
NodesSensors, actuators
Cloud applicationsStorage, data analysis
Wi-Fi / Ethernet / Cellular
© u-blox Holding AG
Today’s topology of IoT networks
Slide 63
• Gateway nodes are connected to
the cloud
• Nodes can be added and
removed dynamically• The system is self-healing: if a
component fails, the data is
routed via a different path
Bluetooth / Wi-Fi
Gateways
NodesSensors, actuators
Cloud applicationsStorage, data analysis
Wi-Fi / Ethernet / Cellular
© u-blox Holding AG
Demo: Bluetooth mesh networks as an enabler for Smart Buildings:
Reading sensors
• Example application: individual heat cost
allocation is based on sensors that are connected via a Bluetooth mesh in a building
• Data finds its way to the cloud even whena node does not work anymore – similar to
how data finds its destination on the Internet
• Secure communication among the cooperating
nodes protects privacy and prevents intrusion
from nearby similar networks
• Inherent robustness by frequency-hopping
algorithms allows coexistence with other 2.4 GHz
technologies
Slide 64 © u-blox Holding AG
Strong growth of Wi-Fi and Bluetooth module market
• u-blox market share in industrial and automotive module markets in 2016 is still <10%
• Comprehensive portfolio and global sales organization will drive growth more quickly than the market
Slide 65
Company estimate
Consumer market
1700 M. units in 2020
© u-blox Holding AG
Key takeaways: Short Range Radio
• Short range radio connects things in the neighborhood, without the need for
a central supporting infrastructure
• Bluetooth low energy and Wi-Fi are the dominant short range radio
technologies driving high market growth
• New applications will take off thanks to new Bluetooth Mesh and the
Bluetooth 5 standard with its long range
• u-blox offers a complete range of short-range modules for Bluetooth, Wi-Fi
and V2X
• u-blox is well-positioned to increase its share of this fast growing market
Slide 66 © u-blox Holding AG
Connected Industry – The Cellular Story
Andreas Thiel, Executive Vice President of Cellular Product Development and IC Design
Table of contents
• Key facts
• Market position
• Offer connected industry
• Market trends & future perception
• Demo
• Q&A
Slide 68 © u-blox Holding AG
Cellular at a glance
• Only IoT supplier with chipset and module know-how
• Broad portfolio of cellular technologies
• Technology leader in NB-IoT and LTE Cat M1
• Focus on industrial and automotive grade products
Slide 69 © u-blox Holding AG
Connected Industry market potential
By 2021
• Expecting 25%+ growth p.a.
• Reaching 100M+ connections
Key Applications
• Security & surveillance monitoring
• Remote monitoring & control
• Asset tracking
Slide 70
-
20
40
60
80
100
120
2016 2017 2018 2019 2020 2021
Industrial Automation(in M Cellular Connections)
Source: ABI Research
© u-blox Holding AG
Cellular and LPWA technologies for the Connected Industry
Slide 71
High bandwidth
High cost
High power
Low latency
Low bandwidth
Low cost
Low power
Higher latency
Time
Broadband
Narrowband
2G
3G
4G LTE
Cat 3/4
Cat 6Cat 9
Cat 1
Cat M1
Cat NB1
RPMA
Cat 12Cat 16
5G
Evolution to high speed cellular
Evolution to cellular LPWA
Unlicensed spectrum technologies
5G / Cat 19
Cat M2 / NB2
Connected Industry Focus
Today
© u-blox Holding AG
u-blox cellular product focus for the Connected Industry
Slide 72
High bandwidth
High cost
High power
Low latency
Low bandwidth
Low cost
Low power
Higher latency
Time
Broadband
Narrowband
2G
3G
4G LTE
Cat 3/4
Cat 6Cat 9
Cat 1
Cat M1
Cat NB1
RPMA
Cat 12Cat 16
5G
Evolution to high speed cellular
Evolution to cellular LPWA
Unlicensed spectrum technologies
5G / Cat 19
Cat M2 / NB2
Connected Industry Focus
TOBY-R2
LARA-R2
SARA-G3
SARA-R4
SARA-N2
SARA-S2
SARA-U2
LARA-R3
UBX-R3
Today
© u-blox Holding AG
Innovation stream for industrial connectivity
Slide 73
LARA-R3
1st module based on u-blox LTE chipset for Cat 1
SARA-R410M-01B
Smallest quad band LTE Cat M1 module certified on AT&T
TOBY-L4
Cat 6 with most powerful application CPU in the industry
SARA-R410M-02B
Ultra-compact LTE Cat M1 / NB1 modules with global coverage
SARA-R404M
Smallest LTE Cat M1 module certified on Verizon
LARA-R2 / TOBY-R2
Voice support via VoLTE
on Cat 4
SARA-S2
Ultra-small RPMAmodule in u-bloxform factor
2016
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
2017
TOBY-R2
1st LTE Cat 1 VoLTE module certified on AT&T
© u-blox Holding AG
Key Cellular Products
LARA-R3 with UBX-R3 chip inside for security and video surveillance
Slide 75
Designed for IoT Hybrid Positioning End-to-End Security
Feature prioritization for IoT
applications
Long term availability for long IoT
/ M2M lifecycles
Built for industrial and vehicle use
Robust communication in harsh
environments
Integrated u-blox 8 GNSS receiver on chip for outdoor positioning
u-blox CellLocate for indoor / outdoor positioning
Safe, fast and always available
u-blox end-to-end trusted domain security between module and chip
All possible attack surfaces secured
Ensures safety and operational reliability of IoT applications
u-blox is the only IoT module vendor producing its own chipsets and
the only IoT chipset maker with the sales and support reach of a tier 1 module maker
© u-blox Holding AG
“Network Side”
Demo: LARA-R3 – Video Streaming
Slide 76
“Device Side”
Laptop / Tablet /
Smartphone
Uplink Data (Control)
Downlink Data (Video streaming)
UBX-R3Plattform
www.
© u-blox Holding AG
LPWA Features:
Long battery life Extended range Low data rates Narrowband
operation
Connected Industry Benefits:
Ideal for remote
locationsDeep in-building use
Suitable for the
industrial IoT
Reduced system
complexity
SARA-R4 for remote monitoring / control and asset tracking
Slide 77
Maintain LPWA leadership position
• Global band configurability with single hardware in small form factor
• Flexible selection: M1, NB1, 2G only / preferred
High reliability for industrial use cases
• Update firmware via uFOTA with LWM2M
• Extended temperature range of -40 to +85 ºC
© u-blox Holding AG
TOBY-L4 Series – High Speed LTE Cat 6 for mobile Gateways
Slide 78
High speed mobile gateway
• LTE Cat 6
• Most powerful CPU in the industry
• Configurable and open Linux application environment
Capture high end OEM market
• Dual basebands LTE Cat 6 / 9 / 19
• Dual SIM / dual active
• Seamless scalability to 5G
MIMO 2x2
© u-blox Holding AG
Demo: TOBY-L4 wireless solution
The most powerful application CPU in the industry
Wi-Fi
Ethernet
LTE Cat 6
Connected by
iPhone app
Cloud Network
NGTP
© u-blox Holding AGSlide 79
Thank you!
Today’s Key Takeaways
Thomas Seiler, CEO
Key takeaways
Dependable
• Public company financially very solid with strong growth track record
• Full control over value chain and product road map
• Highly reliable logistics with short & long term delivery capacity
• Proven automotive quality for 15 years, and environmentally friendly
Competent
• The only company developing both chips and modules for wireless technology
• High R&D spending: 18% of revenues invested every year into technology development
• Very competent technical and commercial support from 25 locations world-wide
Agile
• Very dynamic company developing products and processes for maintaining a
leading position
Slide 81
Revenue history and guidance
-
50
100
150
200
250
300
350
400
450
2012 2013 2014 2015 2016 Guidance2017**
(million USD) *
u-blox is a listed at
the Swiss stock exchange.
Market capitalization: USD 1.3b
© u-blox Holding AG
Thank you!
locate, communicate, accelerate