u-blox march 2016 · pdf filebusiness model drivers • disintermediation: allowing new...

locate, communicate, accelerate

u-blox March 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


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 organization world-wide


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

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


Berlin, Germany

Osaka, Japan

Chongqing, China

Our history 2015 Short Range Product Center established 750

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


Vision and Strategy

To be the leading, industry-quality, supplier of communications and positioning components in

the Internet of Things that Really Matter



(examples)


u-blox Market

Mobility and the Internet of Things drive our markets

Internet of Things

Sensors & Actuators Content

Mobility

Rover

Infrastructure


A wealth of applications

Internet of Things


Mobility

Rover

Automation Security Safety

Entertainment Maintenance Automation

Infrastructure

Installation Management Energy supply

Data transmission Displays Signage


Where u-blox technology plays

Internet of Things


Mobility

Rover

Infrastructure


IoT drives markets for connectivity technology


Source: McKinsey Institute, 2015; u-blox

Many application sectors diversify our business

Internet of Things


Mobility

Rover

Infrastructure


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


Internet of Things


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


Internet of Things


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


Internet of Things


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


u-blox Technology

u-blox Technology for Automotive


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 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)


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


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


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 Technology for Internet of Things that Really Matter


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


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


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


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


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


Financials 2015

u-blox group

© u-blox Holding AG, March 18, 2016 Slide 37

Change 2015to 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)

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%

Revenue by markets

Note: Estimate


• Redefined sector definitions (only factory fitted by the car manufacturer are classified as automotive)

• 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

Revenue split per market for 2015 Comments

Industrial

Consumer

Automotive

Comparable 2014

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 2015Antaris 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


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 338'341 270'045 161'912Cost of sales -183'323 -147'323 -89'158

Gross profit 155'018 122'722 72'754

Operating expenses -106'201 -84'515 -49'647Other income 2'474 868 1'686

Operating profit (EBIT) 51'291 39'075 24'793

Finance income 996 4'546 198Finance 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 24'793Depreciation and amortization 27'421 19'529 11'748EBITDA*) 78'712 58'604 36'541

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.


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


ASSETSCurrent assetsCash and cash equivalents 112'387 37'662 30'390Marketable securities 11'659 21'730 24'920Trade accounts receivable 43'790 38'842 35'179Other current assets 51'933 54'862 38'558

Total current assets 219'769 153'096 129'047

Non-current assetsProperty, plant and equipment 14'708 14'836 13'824Goodwill 56'716 57'903 53'512Other Intangible assets 88'042 70'502 58'864Financial assets 678 584 480Deferred 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’ equityShare capital 6'053 5'930 5'899Share premium 84'006 89'531 88'340Retained 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 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 33'163Exchange 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,

• 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 51

Financial performance outlook 2016

© u-blox Holding AG, March 18, 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

Business model and execution

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


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 2015


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

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


Our fabless model – with reliable partners


Irvine, USA San Diego, USA


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


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


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


Acquisitions for accelerated growth

POSITONING

CELLULAR

SHORT RANGE

*Acquisition of assets

Geotate SigNav* Fastrax

NeonSeven Fusion Wireless

4M Wireless Cognovo

connectBlue antcor

Air Semi*


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


Competitive landscape

• Chips: Large semiconductor manufacturers • Qualcomm (US)

• Intel (US)

• Avago/Broadcom (US)

• ST Microelectronics (CH)

• Mediatek (TW)


• 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

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

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


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


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 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 2015 p. 8 - 13

Thomas Seiler CEO

Jean-Pierre Wyss COO


Executive Committee

Additional information – see Corporate Governance and Financial Report 2015 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


Shares

Stock Exchange SIX Swiss Exchange

Swiss Security Number / ISIN 3336167 / CH0033361673

Ticker UBXN

Nominal value CHF 0.90

Shares issued 6‘725 ‘736 (December 31, 2015)

Market cap CHF 1’443 Mio. (December 31, 2015)

High / Low 52 weeks CHF 220.00/ CHF 115.40 (December 31, 2015)

Latest market price CHF 200.60 (March 15, 2016)


Analyst Coverage & Market making

Analysts

• Zürcher Kantonalbank Andreas Müller

• Credit Suisse Felix Remmers

• Bank Vontobel Michael Foeth

• Main First Michael Inauen

• 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.



Upcoming events

• Annual results 2015: March 18, 2016

• Annual General Meeting: April 26, 2016

• Half year results 2016: August 26, 2016

Slide 75

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]


Thank you!


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