locate, communicate, accelerate
u-blox January 2016
u-blox at a glance
• A global technology company providing embedded wireless
communication and positioning solutions
• Broad customer base with more than 5’000 customers and significant
market share
• The only company focusing on wireless and positioning, delivered as
both integrated circuits and modules
• High product quality, comprising excellent reliability and environmental
friendliness, ensured because we design the chips and software ourselves
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.
© u-blox Holding AG Slide 2
u-blox at a glance
• Swiss semiconductor company
• Founded in 1997
• Listed on the SIX Swiss Exchange since 2007 (SIX:UBXN)
• Core competencies
• Cellular communications technologies
• Satellite based positioning technologies
• Short range radio technologies
• Product offering
• Integrated circuits – the foundation of our solutions
• Modules – fully implemented, drop-in solutions
• Services – delivering added value to our solutions
• Market focus
• Automotive – robust, automotive grade products
• Industrial – durable components for professional electronics
• Consumer – mass market ICs and modules
• Business model
• Fabless operation
• Commercial, off-the-shelf products
© u-blox Holding AG Slide 3
Strong combination of technology and product offerings
Positioning Cellular
Communication Short Range
Communication
Integrated Circuits
Modules
Services and
Solutions
CellLocate® eCall Reference Designs
AssistNow™ Hotspot Maker boards
© u-blox Holding AG Slide 4
u-blox organization world-wide
© u-blox Holding AG Slide 5
Product Center Cellular
Sgonico, Italy San Diego, USA Melbourn, UK
Leuven, Belgium Lahore, Pakistan
Cork, Ireland
Product Center Positioning
Thalwil, Switzerland Reigate, UK
Espoo, Finland Tampere, Finland
Production / Logistics / Quality / IT / HR / Finance / Legal Worldwide
Sales & Marketing Worldwide
Corporate Management Thalwil, Switzerland
Product Center Short Range
Malmö, Sweden Athens, Greece Berlin, Germany
IC Design Center Thalwil, Leuven, Cork, Malmö, Athens
Worldwide presence – 24 locations
Irvine, USA
San Diego, USA
Beijing, China
Seoul, Korea
Tokyo, Japan
APAC head office Application engineering center
Singapore
Shanghai, China
Americas head office Sales, warehouse, application engineering, Reston, Virginia, USA
Shenzhen, China
Corporate headquarters Thalwil, Switzerland
Regional offices
Sgonico, Italy
Melbourn, Reigate, UK
Taipei, Taiwan
Bangalore, India
Leuven, BE
Lahore, Pakistan
Espoo and Tampere, Finland
Sales office
R&D center
Sydney, Australia Cork, IR
Malmö, Sweden
Athens, Greece
© u-blox Holding AG Slide 6
Berlin, Germany
Osaka, Japan
Chongqing, China
Our history 2015 Short Range Product Center established >700
2014 First 4G multi-mode cellular module 625
2013 First LTE module, and u-blox M8 concurrent multi-GNSS platform launched 450
2012 u-blox 7 multi GNSS platform launched; in-house cellular chip development 390
2011 CDMA cellular modules launched 220
2010 LISA 3G cellular modules launched 204
2009 First cellular module launched: LEON (2G) 190
2007 IPO on the Swiss Exchange 73
2006 u-blox 5 GPS platform launched 53
2003 Dead reckoning solution completed for the automotive industry 40
2002 Development of own GPS chip ANTARIS 30
1998 World‘s first surface-mount GPS module 15
1997 Founding of u-blox 6
Employees
© u-blox Holding AG Slide 7
Vision and Strategy
To be the leading, industry-quality, supplier of communications and positioning components in
the Internet of Things that Really Matter
© u-blox Holding AG Slide 9
© u-blox Holding AG Slide 10
(examples)
locate, communicate, accelerate
u-blox Market
Mobility and the Internet of Things drive our markets
Internet of Things
Sensors & Actuators Content
Mobility
Rover
Infrastructure
© u-blox Holding AG Slide 12
A wealth of applications
Internet of Things
Sensors & Actuators Content
Mobility
Rover
Automation
Security
Safety
Entertainment
Maintenance
Automation
Infrastructure
Installation
Management
Energy supply
Data transmission
Displays
Signage
© u-blox Holding AG Slide 13
Where u-blox technology plays
Internet of Things
Sensors & Actuators Content
Mobility
Rover
Infrastructure
© u-blox Holding AG Slide 14
IoT drives markets for connectivity technology
© u-blox Holding AG Slide 15
Source: McKinsey Institute, 2015; u-blox
Many application sectors diversify our business
Internet of Things
Sensors & Actuators Content
Mobility
Rover
Infrastructure
© u-blox Holding AG Slide 16
Consumer
• Portable devices
• Mobile computing
• Wireless access
• Entertainment
Industrial
• Fleet management
• Asset tracking
• Network infrastructure
• Professional radios
• Smart utility metering
• Payment
• Security
• Healthcare
Automotive
• Infotainment
• Vehicle-to-vehicle communications
• Security
• Insurance
Automotive applications
© u-blox Holding AG Slide 17
Internet of Things
Sensors & Actuators Content
Mobility
Rover
Applications:
In-car navigation, Automatic assistance in
accidents, Stolen vehicle recovery, eCall, Road
pricing, Connected car (Infotainment)
Infrastructure
u-blox brings best in class location
performance, V2X components, automotive
quality communications modules, and continuty
of supply through control of the core
technology
Industrial applications
© u-blox Holding AG Slide 18
Internet of Things
Sensors & Actuators Content
Mobility
Rover
Applications:
Fleet management, Payment, Asset tracking,
Usage-based insurance, Metering, Precision
timing
Infrastructure
u-blox has the broadest range of compatible
location and communication modules, with
price/performance matched to business-critical
applications
Consumer applications
© u-blox Holding AG Slide 19
Internet of Things
Sensors & Actuators Content
Mobility
Rover
Applications:
Toys, Wearables, Watches, Child and Pet
locators, Golfing equipment, Routers/Gateways
Infrastructure
u-blox products are chosen in these price-
competitive markets for reliable, safe operation
at competitive prices, with unique features
enabled by ownership of the core technology
locate, communicate, accelerate
u-blox Technology
u-blox Technology for Automotive
© u-blox Holding AG Slide 21
Business Model Drivers
• Disintermediation: allowing new businesses to connect the consumer with the provider directly
• Example: Uber (trip requests go direct to owner/driver taxis)
• Pay to use: connecting users to services charged on a specific usage model
• Example: UBI (Usage Based Insurance)
• Collective ownership: capital items shared by owners through location and communication
• Example: car sharing schemes with dynamic allocation of vehicles to users
• Safety: connecting and locating vehicles so that safety is improved
• Example: V2V (Vehicle-to-Vehicle) communication
The Automotive sector recognises and appreciates u-blox’ values and DNA
© u-blox Holding AG Slide 22
u-blox products cover a broad spectrum of applications
Rear Seat Entertainmaint
V2X Communication
Rear View
Camera
In-car Hotspot
Hands-free Telephony
GUI
Mirroring
& Simple Pairing
In-car Navigation
Vehicle
Diagnostics Internet
Connectivity
Emergency
Call
Slide 23 © u-blox Holding AG
V2X Technology and Market Highlights
• Vehicle to Everything (V2X) allows vehicles to communicate with each other and with the infrastructure, improving road safety
• It operates in unlicensed frequency bands and is based on IEEE 802.11p
• Embraced by US governmental authorities as the preferred technology for
Cooperative Intelligent Transportation Systems (C-ITS)
• Pilot and infrastructure V2X networks deployed in US and EU
• First US-OEM to be in production in 2017
Slide 24 © u-blox Holding AG
u-blox: the leading V2X product in a strongly growing
market
“V2X is quickest growing domain in Automotive – also at Delphi” Jeff Owens, CTO Delphi (Automobil Elektronik, 09-10/2015)
© u-blox Holding AG Slide 25
THEO-P1 is a compact, embedded transceiver module
for Vehicle-to-Everything (V2X) communication systems.
Most Mature V2X Module in the market
Best in world performance
Automotive grade
Compliance with WAVE and ETSI ITS G5 for US and
Europe operation
V2X Fused with autonomous implementations
© u-blox Holding AG Slide 26
Source: Gartner
Sensor-based solution • Cannot sufficiently mimic human sensors
• Not cost efficient for mass adoption
• Lack of adequate 360 deg mapping of environment in urban areas
Connected-vehicle solution • Does not work currently work with pedestrians, bicyclists, etc
• Might require significant infrastructure investment
• Need high market penetration to deliver value reliably
Converged solution • Convergence will facilitate adequate mimicking of human sensors • Convergence will reduce need for expensive mix of sensors and
reduce need for infrastructure
• Convergence will provide the necessary level of redundancy
Positioning
• Positioning is the most critical sensor for Highly Automated Driving
• High level of integrity required
• Needs aiding data services
© u-blox Holding AG Slide 27
Change of
lane
Repeated track
Roadmap to Highly Automated Driving
Slide 28
2015 2020 2025 2030
V2X Basis Data Fusion Collective Perception
Basic V2X Communication
• Roadwork warning
• Emergency Vehicle Warning
• Traffic-jam warning
• Post-crash warning
Fusion of V2X and Sensor Data
• ACC-Adjustment
• Lane Change Warning
• Simple Merge-In warning
Fully Developed Situation Analysis
• Advanced Merge-in assistance
• Hazardous Area Warning
• Platoon start at intersection
Cooperative Agreements
Active Coordination
• Highly Automated Driving
• Cooperative Merging
• Overtaking Assistance
GNSS Lane-level accurate positioning will be required to support applications from 2020
© u-blox Holding AG
u-blox expertise for the automotive industry
• 15 years experience with the sector
• Leader and reference in positioning
• Highly convincing offer for automotive market
• High product reliability over lifetime
• Top positioning performance
• Sensor fusion (dead reckoning)
• Long product availability
• Automotive quality system
• Deeply connected globally at OEM and Tier 1 level
© u-blox Holding AG Slide 29
u-blox Technology for Internet of Things that Really Matter
© u-blox Holding AG Slide 30
Business Model Drivers
• Low cost wireless connectivity: allowing anything to connect to the cloud
• Example: POS terminals
• Low power wireless connectivity: connecting devices that run from batteries for
years
• Example: Gas meters
• Cheap data storage and powerful analytics in the cloud: no hurdle for collecting data, analyze data and disseminate results from analysis
• Example: Fleet management
u-blox is leading new developments for the IoT market with low whole-life cost
© u-blox Holding AG Slide 31
Cellular connectivity growth
• Number of connected devices strongly growing
• M2M “non-cellular” the largest contributor
• Cellular M2M to grow substantially with NB-IoT technology
Source: Ericsson
© u-blox Holding AG Slide 32
LTE Technology is diverging, and enabling the IoT
Slide 33
WCDMA
384 kbps
LTE Cat 4
150 Mbps
LTE Cat 6/CA
600 Mbps
LTE Cat 0
1 Mbps LTE R13 Cat 00/MTC
125 kbps – 1 Mbps
Pe
rfo
rman
ce
Time
5G
20 Gbps
Traditional M2M Applications
Automotive Infotainment,
High-end routers
Mid-end routers, tablets etc
NB-IoT
48-360 kbps Low Power Wireless Access
today
© u-blox Holding AG
GPRS
86 kbps
u-blox supporting and driving new cellular standards
• 2013: Part of the Vodafone
Special Interest Group
• 2014/5: Cooperated with
Vodafone and Huawei to
develop and demo the new
NB-IoT standards
• 2016: At the center of early
deployment and
commercialisation
© u-blox Holding AG Slide 34
Huawei: early 2015
GSMA: Dec 2015
u-blox leading connectivity technology for IoT
• Strong intellectual property in LTE
• Driving connectivity for adoption for IoT
• Positioning an important function for IoT
• BT(LE) and Wi-Fi complementary in many cases
• Low bandwidth LTE forecast to deliver
substantial volume, and opening new
applications
© u-blox Holding AG Slide 35
Financials H1.2015
0
50
100
150
200
250
300
2012 2013 2014 H1/13 H1/14 H1/15
APAC Americas EMEA
25%
25%
46%
41%
28%
35% 48%
26%
26%
48%46%
25%
29%
43.7
27%
30%
42%
28%
24%
(million CHF)
Revenues by geography
© u-blox Holding AG, March 19, 2015 Slide 37
Note: based on customers’ billing location
Growth in all geographic regions compared to H1/14
• Asia Pacific +29.9%
• EMEA: +24.3%
• Americas: +48.1%
Comments Revenues by geographic region
+ 33.1%
Revenue by markets
Note: Estimate
Comments Revenue split per market for H1.2015
© u-blox Holding AG, March 19, 2015 Slide 38
• Excellent expansion in automotive sector – navigation, telematics-box
• Consumer market growth with wearable devices
• Industrial markets strong progress in tracking applications
Industrial
Consumer
Automotive
46.9% 46.0% 45.4%46.7%
47.4% 44.9%
0%
10%
20%
30%
40%
50%
60%
0
20
40
60
80
100
120
140
2012 2013 2014 H1/13 H1/14 H1/15
Gross Profit % of revenue
(million CHF) % of revenue
Gross profit
© u-blox Holding AG, March 19, 2015 Slide 39
• Increase in gross profit to CHF 72.8m in H1/15 from CHF 57.6m
• Growth of gross profit of +26.3% compared to H1/14
• Gross profit margin in H1/15 declined compared to 2014 due to changes in the product mix
Comments Gross profit / Gross profit margin
+ 26.3%
0
1
2
3
4
5
6
7
0
5
10
15
20
25
30
2012 2013 2014 H1/13 H1/14 H1/15
Antaris u-blox 5 u-blox 6 u-blox 7 u-blox M8 ASP
(million pcs) (CHF)
0
2
4
6
8
10
12
0
5
10
15
20
25
2012 2013 2014 H1/13 H1/14 H1/15
Shipments modules ASP
(million pcs) (CHF)
Shipments and ASP development
© u-blox Holding AG, March 19, 2015 Slide 40
• Growth of both module and chip volume
• Shipments of new positioning platform u-blox M8 has started
GPS/GNSS chips Modules
Note: incl. Atmel-Chipset sales
+ 31.0%
+ 48.3%
Global customer base
© u-blox Holding AG, March 19, 2015 Slide 41
• Strong and stable customer base
• More than 5000 customers worldwide
• Continued wide spread over different applications and geographical regions
• Small customer dependency: Largest customer accounts for 9% of total revenue in H1/15
• 10 biggest customers account for 40% of total revenue in H1/15
• Strong market and technology position with further potential for profitable growth
Comments Number of customers totaling 80% of revenue
68 65 57
67 69
0
10
20
30
40
50
60
70
2010 2011 2012 2013 2014
0
10
20
30
40
50
60
70
2012 2013 2014 H1/13 H1/14 H1/15
Distribution & marketing / Research & development
© u-blox Holding AG, March 19, 2015 Slide 42
Research & development expenses Distribution & marketing expenses
17.8 21.2
24.5
10.4 11.5 13.3
10.3% 9.7%
9.1%
9.9%9.5%
8.2%
0%
2%
4%
6%
8%
10%
12%
0
5
10
15
20
25
30
2012 2013 2014 H1/13 H1/14 H1/15
D&M % of revenues
(% of revenues)(million CHF)
32.7 38.9 49.9
20.1 22.7
29.9
18.9%
17.7%
18.5%19.2%
18.7%
18.5%
0%
5%
10%
15%
20%
25%
0
10
20
30
40
50
60
2012 2013 2014 H1/13 H1/14 H1/15
R&D % of revenues
(% of revenues)(million CHF)
Income statement
© u-blox Holding AG, March 19, 2015 Slide 43
• Revenue increase of 33.1% from H1/14 to H1/15
• Increased gross profit by 26.3%
• Increased operational efficiency with OPEX 30.7% of revenue
• H1/15: costs for share based payments in the amount of CHF 2.2m
• EBITDA growth of 33.9% with margin of 22.6%
• EBIT growth of 31.9% with margin of 15.3%
• Finance costs contain realized and unrealized fx-loss of CHF 5.1m
• Tax rate of 19.1% compared to year end 2014 with 19.9%
• Net profit with margin of 9.2%
• EPS = CHF 2.25 (diluted EPS: CHF 2.17)
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.
January - June Jan. - Dec.
(in CHF 000s) 2015 2014 2014
(unaudited) (unaudited) (audited)
Revenue 161'912 121'625 270'045
Cost of sales -89'158 -64'031 -147'323
Gross profit 72'754 57'594 122'722
Operating expenses -49'647 -38'897 -84'515
Other income 1'686 101 868
Operating profit (EBIT) 24'793 18'798 39'075
Financial income 198 1'090 4'546
Finance costs -6'502 -385 -658
Profit before income tax (EBT) 18'489 19'503 42'963
Income tax expense -3'525 -5'100 -8'566
14'964 14'403 34'397
Operating profit (EBIT) 24'793 18'798 39'075
Depreciation and amortization 11'748 8'489 19'529
EBITDA 36'541 27'287 58'604
Net profit, attributable to owners
of the parent
Reportable segments
• We report two segments according to IFRS 8:
• Positioning and Wireless products
Development and distribution of GNSS receivers and wireless communication products. They are sold by u-blox sales organization and produced by third
parties.
• Wireless services
Delivery of reference designs and software in the wireless communication
technology.
© u-blox Holding AG, March 19, 2015 Slide 44
Segment information
© u-blox Holding AG, March 19, 2015 Slide 45
*) 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 161'760 121'532 152 93 161'912 121'625 161'912 121'625
Revenue intragroup 12'655 9'434 12'655 9'434 -12'655 -9'434 0 0
Total revenue 161'760 121'532 12'807 9'527 174'567 131'059 -12'655 -9'434 161'912 121'625
EBITDA 33'468 25'420 3'106 2'288 36'574 27'708 -33 -421 36'541 27'287
Depreciation -2'691 -2'122 -873 -801 -3'564 -2'923 - - -3'564 -2'923
Amortization -7'949 -4'902 -235 -664 -8'184 -5'566 - - -8'184 -5'566
EBIT
Financial income 198 1'090 198 1'090
Finance costs -6'502 -385 -6'502 -385
EBT -6'337 284 18'489 19'503
June 30 Dec 31 June 30 Dec 31 June 30 Dec 31 June 30 June 30 June 30 Dec 31
2014 2014 2014 2014 2014 2014 2014 2014 2014 2014
Assets 229'902 223'485 13'051 13'460 242'953 236'945 98'567 64'802 341'520 301'747
Positioning and
wireless products
Wireless services Total segments Non-allocated/
eliminations
Group
-33 -421 24'793 18'798
January - June January - June January - JuneJanuary - June January - June
19'21924'82622'828 18'396 1'998 823
Statement of financial position (1)
© u-blox Holding AG, March 19, 2015 Slide 46
• Strong financial position with a liquidity (incl. marketable securities) of CHF 91.6m
• Inventory CHF 36.3m (Dec. 2014: CHF 33.3m)
• Increase of trade accounts receivable due to growing revenue
• Increased intangible assets due to acquisition and capitalization of R&D expenses
• Goodwill (June 2015: CHF 55.2m) net reduced by CHF 2.7m as result of exchange rate changes and the acquisition of Lesswire
Comments Statement of financial position (condensed)
June 30, Dec. 31, June 30,
(in CHF 000s) 2015 2014 2014
(unaudited) (audited) (unaudited)
ASSETS
Current assets
Cash and cash equivalents 74'729 37'662 30'390
Marketable securities 16'862 21'730 24'920
Trade accounts receivable 39'767 38'842 35'179
Other current assets 52'847 54'862 38'558
Total current assets 184'205 153'096 129'047
Non-current assets
Property, plant and equipment 14'807 14'836 13'824
Goodwill 55'207 57'903 53'265
Intangible assets 79'823 70'502 58'864
Financial assets 592 584 480
Deferred tax assets 6'886 4'826 6'104
Total non-current assets 157'315 148'651 132'537
Total assets 341'520 301'747 261'584
Statement of financial position (2)
© u-blox Holding AG, March 19, 2015 Slide 47
• Trade accounts payable of CHF 19.7m
• Short-term bank loan of CHF 20.0m paid back
• Bond of CHF 60m issued in April 2015 (6 years, interest rate 1.625%)
• Non-current liabilities contain in addition to the bond
• Deferred tax liabilities (CHF 4.2m),
• Employee benefits (pensions) (CHF 10.0m)
• Provisions (CHF 5.3m)
• Share capital increase due to exercise of options
Comments Statement of financial position (condensed)
June 30, Dec. 31, June 30,
(in CHF 000s) 2015 2014 2014
(unaudited) (audited) (unaudited)
LIABILITIES AND EQUITY
Liabilities
Current liabilities 42'485 70'860 56'017
Non-current liabilities 80'644 18'011 14'615
Total liabilities 123'129 88'871 70'632
Shareholders’ equity
Share capital 6'034 5'930 5'899
Share premium 83'219 89'531 88'340
Retained earnings 129'138 117'415 96'713
218'391 212'876 190'952
Total liabilities and equity 341'520 301'747 261'584
Total equity
Statement of cash flows
© u-blox Holding AG, March 19, 2015 Slide 48
Comments Consolidated cash flow Statement (condensed)
• Operational cash flow 12.7% of revenues (increase by 31.1% to H1.2014)
Cash flow from investing activities:
• CHF -4.3m investments into property, plant and equipment (tools, furniture, equipment)
• CHF -16.0m investments into intangible assets (Software, capitalization of R&D)
• CHF 4.7m proceeds from marketable securities
Cash flow from financing activities:
• CHF -10.7m dividend 2014 paid in May 2015
• CHF +4.5m capital increase from options
• CHF +39.4m net cash flow from issuance of bond and repayment of bank loan
Jan. - June 2015 Jan. - June 2014
(in CHF 000s) (unaudited) (unaudited)
20'522 15'655
-15'751 -33'882
33'232 15'778
38'003 -2'449
37'662 33'163
-936 -324
74'729 30'390
Net increase/(decrease) in cash
and cash equivalents
Cash and cash equivalents at
end of period
Net cash generated from operating
activities
Net cash used in investing activities
Net cash provided by financing
activities
Cash and cash equivalents at
beginning of period
Effect of exchange rate fluctuations
on cash and cash equivalents
Outlook
Goals
• Grow business with new products
• Wireless
o Expansion of module product line
• Positioning
o Migration to u-blox 8
o Expansion of module product line
• Continued focus on strategic development
• Strengthening of the global presence
• Operational excellence for higher efficiency
Slide 49
• Continued strong business growth in 2015
• Some impact by product mix on relative gross margin
• Natural hedging maintains relative gross margin against foreign exchange variations
• Exchange rate assumptions for 2015: EUR/CHF: 1.065 USD/CHF: 0.974 GBP/CHF: 1.500
• FX-sensitivity against CHF on Guidance 2015
Financial performance outlook 2015
© u-blox Holding AG, March 19, 2015
*) 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 + 21.4% + 0.8% - 1.3%
Actual
FY 2014
Actual
HY 2015
Unchanged
Guidance 2015*)
Revenue 270.0m 161.9m 335 – 345m
EBIT 39.1m 24.8m 48 – 53m
CHF CHF CHF
Business model and execution
Our fabless model – focus on customer and technology
• We focus on our core activities
• R&D of the technologies that we want to control
• Development of the relationship with the customer
• Then leverage standardized manufacturing processing
• Making and Packaging the integrated circuits
• Large scale processes with huge capex cost
• Take advantage of Moore’s law; 28nm for today’s designs
• Assembly of electronics components
• Surface mount technology SMT with high capex
• Dedicated assembly lines, fully automated
• u-blox jigs, fixtures and test routines
• Take advantage of the purchasing power of the assembly partner
• As we grow our volumes we get more influence over our supply chain
© u-blox Holding AG Slide 51
Our fabless model – with reliable partners
Corporate headquarters Thalwil, Switzerland
Irvine, USA
San Diego, USA
Corporate headquarters Thalwil, Switzerland
Sgonico, Italy
Melbourn, Reigate, UK
Leuven, BE
Lahore, Pakistan
R&D center
Cork, IR
Malmö, Sweden
Athens, Greece
Americas head office Sales, warehouse, application engineering, Reston, Virginia, USA
© u-blox Holding AG Slide 52
Espoo and Tampere, Finland
High R&D investment for expanding technology leadership
18% of sales invested in R&D
Premium reliability based on strict conformance to automotive standards
In-house 4G technology
Products addressing all satellite positioning
standards
Experts in low-power concurrent GNSS chip
design
Advanced nested design module philosophy & customer-friendly
form factor roadmap
Industry leading 3D Automotive Dead
Reckoning solution
Industry‘ leading anti-jamming technology
CellLocate®: first hybrid embedded positioning
solution based on 2G, 3G cell visibility
© u-blox Holding AG Slide 53
Multi-site R&D
• 13 R&D sites around the globe
• Giving access to technology pools
• Allowing recruitment of top talent
• Cost optimization
• Strong culture of inter-site exchange
• One u-blox program management system
© u-blox Holding AG Slide 54
Corporate headquartersThalwil, Switzerland
Irvine, USASan Diego, USA
Corporate headquartersThalwil, Switzerland
Sgonico, Italy
Melbourn,Reigate, UK
Leuven, BE
Lahore, Pakistan
R&D center
Cork, IR
Malmö, Sweden
Athens, Greece
Espoo and Tampere, Finland
Acquisitions for accelerated growth
POSITONING
CELLULAR
SHORT RANGE
*Acquisition of assets
Geotate SigNav* Fastrax
NeonSeven Fusion Wireless
4M Wireless
Cognovo
connectBlue antcor
Air Semi*
© u-blox Holding AG Slide 55
lesswire*
2009 2011 2012 2014 2015 2010
Direct sales for strong customer relationship
• Our products are key components and core to our customers‘ products
• Products need pre-sales technical
support, free of charge
• The feedback from the customer is
essential for successful product
positioning and innovation
• Focus in sales channel increases market
penetration
• Own logistics outpaces competition
© u-blox Holding AG Slide 56
Irvine, USA
Beijing, China
Seoul, Korea
Tokyo, Japan
APAC head office Application engineering centerSingapore
Shanghai, China
Americas head officeSales, warehouse, application engineering,
Reston, Virginia, USA
Shenzhen, China
Corporate headquartersThalwil, Switzerland
Regional offices
Taipei, Taiwan
Bangalore, India
Espoo and Tampere, Finland
Sales office
Sydney, Australia
Malmö, Sweden
Osaka, Japan
Chongqing, China
Competitive landscape
• Chips: Large semiconductor
manufacturers
• Qualcomm (US)
• Intel (US)
• Avago/Broadcom (US)
• ST Microelectronics (CH)
• Mediatek (TW)
© u-blox Holding AG Slide 57
• POS Modules vendors
• Trimble (US)
• Asian local assemblers (CN, JP, KR,
TW)
• CEL Modules vendors
• Telit (IT)
• Cinterion (DE)
• Sierra Wireless (US)
• SIMCom (CN)
• Asian local assemblers (CN, KR, JP)
• SHO Module vendors
• Highly fragment market with more than 40 competitors world-wide
Why customers choose u-blox
Dependable
• Public company financially very solid
• Strong global market presence with support from more than 14 locations world wide
• Full control over value chain and product road map
• High product quality, excellent reliability and environmentally friendly
Competent
• Leading IP for wireless and positioning technology
• Technology made available n the form chips and modules
• Very competent technical and commercial support
• Highly dynamic company developing products and processes for maintaining a leading position
© u-blox Holding AG Slide 58
Key reasons to invest in u-blox
• Unique market access as the only company focusing on chipsets and modules
for wireless and positioning technology
• Technology leadership resulting in attractive products at competitive cost
• Fabless business model with attractive cash conversion
• Excellent brand reputation reflected in broad customer base with 5000
customers and significant market share
• Strong quality reputation
• Growing end markets with long product cycles: industrial, automotive and
consumer driven by mobility and expansion of infrastructure
• Long standing management team with excellent track record
• Consistent strong cash-flow and growth in financial performance over the last years
© u-blox Holding AG Slide 59
Corporate Information
Legal structure u-blox group u-blox Holding AG Thalwil, Switzerland
u-blox AG Thalwil, Switzerland
(Headquarter)
u-blox Singapore Pte. Ltd. Singapore
u-blox Japan K.K. Japan
u-blox Asia Pacific Ltd. Hong Kong
100% 100% 100% 100%
u-blox Italia S.p.A. Italy
100%
u-blox Espoo Oy Finland
100%
u-blox America, Inc. USA
u-blox AG Beijing representative office Beijing
Representative office of
u-blox Singapore Pte. Ltd. Taipei
u-blox Singapore Pte. Ltd. (Branch office) Seoul
Sales organization R&D entities
u-blox AG Shenzen representative office Shenzen
Representative office of
u-blox Singapore Pte. Ltd. Bangalore
Representative office of
u-blox Singapore Pte. Ltd. Sydney
u-blox AG Shanghai representative office Shanghai
100% u-blox UK Ltd. UK
u-blox San Diego Inc. USA
100%
u-blox Luton Ltd. UK
100%
u-blox Melbourn Ltd. UK
100%
u-blox Lahore (Private) Pty. Pakistan
100%
u-blox Melbourn Ltd.
Leuven Branch Belgium
100% u-blox Cork Ireland
u-blox Malmö Sweden
100% ConnectBlue Inc. USA
u-blox Athens Greece
100%
u-blox Berlin Germany
100%
© u-blox Holding AG Slide 61
u-blox AG Chongqing representative office Chongqing
100%
Board of directors
Fritz Fahrni Chairman
Member NCC
André Müller Member AC
Prof. Gerhard Tröster Chairman NCC
Soo Boon Quek Dr. Paul van Iseghem
Chairman AC
Additional information – see Corporate Governance and Financial Report 2014 p. 8 - 13
Thomas Seiler CEO
Jean-Pierre Wyss COO
© u-blox Holding AG Slide 62
Executive Committee
Additional information – see Corporate Governance and Financial Report 2014 p. 14 - 16
Thomas Seiler CEO
Head of Marketing and Sales
Jean-Pierre Wyss Executive Vice President
Head of Production and Logistics
Co-founder u-blox AG
Daniel Ammann Executive Vice President
Positioning Products
Co-founder u-blox AG
Andreas Thiel Executive Vice President
Wireless Products
Co-founder u-blox AG
Roland Jud CFO
© u-blox Holding AG Slide 63
Shares
Stock Exchange SIX Swiss Exchange
Swiss Security Number / ISIN 3336167 / CH0033361673
Ticker UBXN
Nominal value CHF 0.90
Shares issued 6‘704 ‘100 (June 30, 2015)
Market cap CHF 905 Mio. (December 31, 2014) CHF 1’268 Mio. (June 30, 2015)
High / Low 52 weeks CHF 143.00/ CHF 99.25 (December 31, 2014)
Latest market price CHF 189.00 (August 31, 2015)
© u-blox Holding AG Slide 64
Analyst Coverage & Market making
Analysts
• Zürcher Kantonalbank Andreas Müller
• Credit Suisse Felix Remmers
• Bank Vontobel Michael Foeth
• Main First Michael Inauen
• Bank am Bellevue Christoph Wirtz
• Kepler Chevreux Bernd Laux
• Baader/Helvea Günther Hollfelder
• Bank Julius Bär Bruno Winiger
Market making
• Zürcher Kantonalbank
Please note that any opinions, estimates or forecasts regarding u-blox' performance made by these analysts are theirs alone and do not represent
opinions, forecasts or predictions of u-blox or its management.
© u-blox Holding AG Slide 65
© u-blox Holding AG
Upcoming events
• Annual results 2015: March 18, 2016
• Annual General Meeting: April 26, 2016
Slide 66
Investor relations contact
Thomas Seiler Chief Executive Officer u-blox Holding AG Zürcherstrasse 68 8800 Thalwil, Switzerland Phone: +41 44 722 74 44 Fax: +41 44 722 74 99 E-mail: [email protected]
Roland Jud Chief Financial Officer u-blox Holding AG Zürcherstrasse 68 8800 Thalwil, Switzerland Phone: +41 44 722 74 44 Fax: +41 44 722 74 99 E-mail: [email protected]
© u-blox Holding AG Slide 67
Thank you!
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