u-blox Investor Presentation · This presentation contains certain forward-looking statements. Such...
Transcript of u-blox Investor Presentation · This presentation contains certain forward-looking statements. Such...
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.
Disclaimer
© u-blox Holding AG2
Our vision
4
To be the leading supplier for innovative high-quality communications and positioning components and solutions for the internet of things that really matter
© u-blox Holding AG
u-blox AG, Holding AG5
Innovation is our lifeblood
• We have been first to market with many technology solutions.
Strong innovations lead to the future
GPS receiver chip
Expanding the global reach
6 © u-blox Holding AG
6100CUSTOMERSWORLDWIDE
15SALES OFFICES
66COUNTRIES
WORLDWIDE
• Broad customer base with more than 6100 customers and significant market share • Expanding customer base: customers in more than 66 countries worldwide • Customer diversity: Top 60 customers in 25 countries• No single customer responsible for more than 6% of total sales• 15 sales offices; 14 R&D locations
Billions of things waiting to be connected
7 © u-blox Holding AG
Drones ~5 million
Pets ~0.5 billion
Cars ~0.5 billion
Laptops ~0.9 billion
Bicycles ~1.3 billion
Kids ~2.2 billion
Parking spaces ~1.2 billion
Hospital beds ~14 million
Power tools ~1.3 billion
Street lights 1 billion
Source: Geeny.io
• The mobile phone market has plateaued• The future growth lies in both, wide-area and short-range IoT applications
• They are u-blox heartland
u-blox plays in the high growth markets
Source: Ericsson Mobility Report 2017
Connected devices (billions)2017 2023 CAGR
Wide-area IoT 0.6 2.4 26%
Short-range IoT 6.4 17.4 18%
PC/Laptop/Tablet 1.6 1.7 0%
Mobile Phones 7.5 8.8 3%
Fixed phones 1.4 1.3 0%
Total17.5
billion31.6
billion
u-blox target markets
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
2015 2016 2017 2018 2019 2020 2021 2022 2023
8 © u-blox Holding AG
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Mobility and the Cloud economics drive our markets for IoT
© u-blox Holding AG
0
50
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2000 2005 2010 2015 2020 2025
Ever expanding Mobility index
Source: The Economics Of The Cloud, Microsoft
Strong scale economies in the Cloud
• The mobility of people continues to increase year on year• Cost of data processing in the cloud decreases exponential with volume
These forces work hand in hand giving a multiplier effect for IoT
80% reduction of total cost of ownership
TC
O/S
erv
er
(at
av
era
ge
u
tili
za
tio
n)
# of Servers in Public Cloud
Source: Transport Outlook 2011, OECD
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The Internet of Things that Really Matter IoT market will become large
© u-blox Holding AG
Source: ABI research 2016Cellular M2M
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2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Cellular M2M
LTE Cat-1 LTE Cat-M
• M2M deployments to grow strongly
• Price points to decline
• Strong integration into chipset feasible for cellular M2M modems
This is the opportunity for u-blox in-house silicon
• 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
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u-blox:Unique technology and product line-up
© u-blox Holding AG
PositioningCellular Communication
Short RangeCommunication
Integrated Circuits
Modules
Services and Solutions
CellLocate® (modem based positioning)AssistNowTM (world wide GNSS assistance service)GNSS Correction Data (for high precision)*FOTA (Firmware over the air)Lifetime Security
*through Sapcorda, a JV with industry partners
• Important strategic benefits from the unique u-blox line-up
• Long-term sustained competitive position
• Strong synergies between the technologies
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Strong competitive advantage
© u-blox Holding AG
PositioningCellular Communication
Short RangeCommunication
Integrated Circuits
Modules
Services and Solutions
CellLocate® (modem based positioning)AssistNowTM (world wide GNSS assistance service)GNSS Correction Data (for high precision)*FOTA (Firmware over the air)Lifetime Security
*through Sapcorda, a JV with industry partners
Four IoT focus areas for u-blox
14 © u-blox Holding AG
Connected vehicle Connected city Connected industry
Adaptive cruise control shipments to be 80 million by 2025
7.7 million truck platoon systems to ship by 2025
Over 246 million connected auto infotainment systems to ship between 2015-2020
(Source: ABI research, 2016)
600 million Smart home device shipments by 2021
Home care robotics to revenue to quadruple to $6 Billion by 2025
46 million Connected street lights by 2021
Smart meter connections to exceed 789 million by 2021
(Source: ABI research, 2016)
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)
Connected consumer
Massive use of smart phones: 3.9 Billions in 2016 will grow to 6.8 Billions inconnected consumers in 2022 with many regions having more subscriptions than people
100 million BT connected sports and wellness devices and 250 million Wi-Fi connected flat screen TVs and set top boxes by 2020
Global wearable market expected to grow to $5.8 Billion by 2018
Source: (Ericsson Mobility Report November 2016, ABI Wireless IoT and Cellular 2016 & Statista 2016 )
IoT and Industry 4.0
15 © u-blox Holding AG
Internet of
ThingsIndustry
4.0
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 City
Connected Consumer
Connected Car
Connected industry
Enabling the Internet of Things (IoT)
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u-blox at the core
© u-blox Holding AG
Our three technologies –Positioning, Cellular, and Short Range – transform a wide range of products and devices into the Things of the IoT.
Typical applications
• In car navigation
• Vehicle telematics
• Emergency call systems
• Insurance boxes
• Autonomous vehicles
u-blox applications
• Automotive quality
• Dead reckoning solutions
• Seamless integration of positioning and wireless
• Robust performance
• Long product lifetime
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Automotive marketHigh quality and robustness
© u-blox Holding AG
Typical applications
• Asset tracking
• Automation
• Precision timing
• Smart metering
• POS terminals
u-blox applications
• Excellence in product features
• High reliability
• Form factor roadmap
• Seamless integration of positioning and wireless
• Short time to market
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Industrial marketVersatile and reliable technology
© u-blox Holding AG
Typical applications
• Wearables
• Drones
• People and animal tracking
• Car accessories
• Mobile hotspots and routers
u-blox applications
• High performance solutions
• Small size, chip and module solutions
• Very low power consumption
• Cost effectiveness
• Short time to market
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Consumer marketMass market solutions
© u-blox Holding AG
Highly automated drivingcalls for
dead reckoning and high integrity
Inspection dronescall for
decimetre accuracy
Cellular infrastructurecalls for
precision timing
Personal trackingcall for
ubiquitous positioning
In car infotainmentcalls for
high-bandwidth cellular
Water, waste, lighting, etccall for
low whole-life cost: NB-IoT
Asset tracking, fleet management,
call forglobal coverage
Consumer devicescall for
low and high bandwidth connectivity
Highly automated drivingcalls for
vehicle to vehicle comms
Point of sale, smart homecall for
multi-standard solutions
Sensor networkscall for
intelligent gateways
The quantified selfcall for
low power connectivity
Leading u-blox IP for the IoT focus markets
20 © u-blox Holding AG
Innovation for competitive advantage
21 © u-blox Holding AG
Autonomous vehicles
LTE connectivity
Smart modems
Security
Robustness
Size and cost reduction
16% OF SALES INVESTED IN R&D
Cellular product offer
22 © u-blox Holding AG
High bandwidth
High cost
High power
Low latency
Low bandwidth
Low cost
Low power
Higher latency
Time
Broadband
Narrowband
2G
3G
4G LTECat 3/4
Cat 6
Cat 9
Cat 1
Cat M1
Cat NB1
RPMA
Cat 12Cat 16
5G
Evolution to high speed cellular (licensed spectrums)
Evolution to cellular LPWA (licensed spectrums)
Unlicensed spectrum technologies
5G / Cat 19
Cat M2 / NB2
Connected Industry Focus
TOBY-R2LARA-R2
SARA-G3
SARA-R4
SARA-N2
SARA-S2
SARA-U2
LARA-R3UBX-R3
Today
• The products provide connectivity solutions for
• High-performance systems in automotive and industrial markets
• Embedded systems mainly for industrial markets
• Car-to-car interaction
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Short range radio product offer
© u-blox Holding AG
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Positioning product offer
• 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
© u-blox Holding AG
Modules –
Easy access to GNSS
u-blox GNSS – de-facto industry standard
High precision GNSS for the mass market
Communication link
BaseNEO-M8P-2
RoverNEO-M8P-0
Chips -
Core platforms
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Continuous revenue growth
© u-blox Holding AG
Revenue and EBIT Revenue split per market for 2017
219.8
270.0
338.3 360.2
403.7
30.1 39.1 51.3 59.0 65.1
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Revenue EBIT
(million CHF)
CAGR 16.4%
Industrie Konsumgüter Automobil
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Continuous strong profitability
© u-blox Holding AG
Gross Profit/ Gross profit margin EBITDA trend
Maintained EBITDA margin of 21...23%Maintained gross margin of 45...46%
101.2122.7
155.0167.1
184.0
34.5%
47.2% 50.3%
46.4%
45.6%
0%
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20%
30%
40%
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60%
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Gross Profit % of revenue
(million CHF) (in % of revenue)
46.2 58.6
78.7 81.8 87.4
21.0%
21.7%23.3%
22.7%21.6%
10%
12%
14%
16%
18%
20%
22%
24%
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EBITDA EBITDA-Margin
(million CHF) (in % of revenue)
CAGR 17.3%
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Solid balance sheet –A result of continued strong profitability and tight OPEX management
• 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
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Cash (incl. marketable
securities)
Inventory
Other current assets
Accounts Receivable
Fixed Assets
(mil
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nC
HF
)
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Shareholder's Equity
Short Term Debt
Long Term Debt
(mil
lio
nC
HF
)
Strategic Goals
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• Grow business with new products
• Continued focus on strategic development
• Strengthening of the global presence
• Operational excellence for higher efficiency
© u-blox Holding AG
© u-blox Holding AG30
Financial performance outlook 2018
• Continued strong business growth in 2018
• Impact by product mix on relative gross margin
• Natural hedging protects gross margin against foreign exchange variations
• Accelerated revenue growth rates expected for second half of the year 2018
• Exchange rate assumptions for 2018:• EUR/CHF: 1.11 ¦ USD/CHF: 0.98 ¦ GBP/CHF: 1.27• FX-sensitivity against CHF on Guidance 2018
*) This guidance is based on the absence of unforeseen economic adversity and exchange rates assumed at budget level
ActualFY 2016
ActualFY 2017
Guidance 2018*)
(IFRS)
Revenue 360.2m 403.7m 460m…475m
EBITDA 81.8m 87.4m 95m…105m
EBIT 59.0m 65.1m 65m… 70m
CHF CHF CHF
+10% change of USD EUR GBP
Revenue + 9% + 1% 0%
EBITDA + 16% 0% - 1%
EBIT + 22% - 1% - 2%
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Our promise
Competent technical support worldwide
Low risk through all phases of your design cycle
Quick time to market
High quality Outstanding performance Security
© u-blox Holding AG
Legal structure u-blox group
33 © u-blox Holding AG
u-blox Holding AGThalwil, Switzerland
u-blox AG (Headquarter)Thalwil, Switzerland
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 OyFinland
100%
u-blox America, Inc.USA
u-blox AG Beijing representative officeBeijing
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 Shenzenrepresentative officeShenzen
Representative office of u-blox Singapore Pte. Ltd.Bangalore
Representative office of u-blox Singapore Pte. Ltd.Sydney
u-blox AG Shanghai representative officeShanghai
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 BranchBelgium
100% u-blox CorkIreland
u-blox MalmöSweden
100%
u-blox AthensGreece
100%
u-blox BerlinGermany
100%
u-blox AG Chongqing representative officeChongqing
u-blox Electronics LtdShanghai
u-blox WirelessTechnology Ltd.Shanghai100%
Sapcorda GmbHBerlin
43%
34
Board of directors
Additional information –see Corporate Governance and Financial Report 2017 p. 8 - 13
© u-blox Holding AG
Fritz FahrniChairman
Member NCC
André MüllerMember AC
Prof. Gerhard TrösterChairman NCC
Gina Domanig Dr. Paul van IseghemChairman AC
Thomas SeilerCEO
Jean-Pierre WyssCOO
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Executive Committee
Additional information –see Corporate Governance and Financial Report 2017 p. 14 - 16
© u-blox Holding AG
Thomas SeilerCEO
Head of Marketing and Sales
Jean-Pierre WyssExecutive Vice President
Head of Production and LogisticsCo-founder u-blox AG
Daniel AmmannExecutive Vice President
Positioning ProductsCo-founder u-blox AG
Andreas ThielExecutive Vice President
Wireless ProductsCo-founder u-blox AG
Roland JudCFO
Shares
Stock Exchange SIX Swiss Exchange
Swiss Security Number / ISIN 3336167 / CH0033361673
Ticker UBXN
Nominal value CHF 0.90
Shares issued 6‘957‘170 (December 31, 2017)
Market cap CHF 1.3 billion (December 31, 2017)
High / Low 52 weeks CHF 224.70 / CHF 160.70 (December 31, 2017)
Latest market price CHF 191.80 (December 29, 2017)
36 © u-blox Holding AG
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Analyst Coverage & Market making
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.
Analysts
Zürcher Kantonalbank Andreas Müller
Credit Suisse Michael Inauen
Vontobel Michael Foeth
MainFirst Schweiz Jürgen Wagner
Bank am Bellevue Mischa Roelli
Kepler Chevreux Torsten Sauter
Baader/Helvea Günther Hollfelder
Julius Bär Bruno Winiger
Mirabeau Mark Diethelm
BRYAN, GARNIER & CO Dorian Terral
UBS François-Xavier Bouvignies
Market making Zürcher Kantonalbank
© u-blox Holding AG
• Annual General Meeting: April 24, 2018
• Half-year results 2018: August 24, 2018
• Analyst Day: November 21, 2018
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Upcoming events
© u-blox Holding AG
Investor relations contact
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Thomas SeilerChief Executive Officer
u-blox Holding AGZürcherstrasse 688800 Thalwil, Switzerland
Phone: +41 44 722 74 44Fax: +41 44 722 74 99E-mail: [email protected]
Roland JudChief Financial Officer
u-blox Holding AGZürcherstrasse 688800 Thalwil, Switzerland
Phone: +41 44 722 74 44Fax: +41 44 722 74 99E-mail: [email protected]
© u-blox Holding AG