Half Year Report 2012 - U-blox · Page 4 | Half year report 2012 Half year report at June 30, 2012...

locate, communicate, accelerate

Half Year Report 2012

http://www.u-blox.com

2 Financial highlights

4 Half year report at June 30, 2012

6 Halbjahresbericht per 30. Juni 2012

8 Condensed consolidated interim financial statements u-blox Holding AG, Thalwil 9 Consolidated statement of financial position10 Consolidated income statement11 Consolidated statement of comprehensive income12 Consolidated statement of changes in equity13 Condensed consolidated statement of cash flows14 Notes to the condensed consolidated interim financial statements

17 Investor information and contacts

18 Worldwide presence

Content

Foundation 1997

Business Fabless semiconductor provider of embedded GPS positioning and wireless communication solutions

Headquarter Thalwil, Switzerland

Offices USA, Singapore, Italy, United Kingdom, Belgium, Hong Kong, China, Taiwan, Korea, Japan and India

Listed SIX Swiss Exchange (UBXN)

Employees 229 (December 31, 2011, FTE based); 273 (June 30, 2012, FTE based)

Revenue 2011: CHF 124.7 million; H1 2012: CHF 77.7 million

EBIT 2011: CHF 21.2 million; H1 2012: CHF 11.4 million

Net profit 2011: CHF 16.5 million; H1 2012: CHF 8.9 million

Markets Consumer, Industrial and Automotive

Mission u-blox aims to be a leading provider of embedded positioning and wireless communication solutions to the global electronics industry

u-blox at a glance

Half year report 2012 | Page 1

| Half year report 2012

Financial highlights

2009 2010 2011 H1/10 H1/11 H1/12

Revenue 73.5 112.8 124.7 49.3 62.5 77.7

Growth/(decline) rate over previous year -1.3% 53.4% 10.6% 44.3% 26.8% 24.3%

EBIT 5.2 19.1 21.2 7.6 11.7 11.4

Margin on revenue 7.1% 16.9% 17.0% 15.4% 18.8% 14.6%

Growth/(decline) rate over previous year -38.3% 267.7% 11.2% 237.0% 54.5% -3.2%

Net profit for the period 3.3 12.9 16.5 6.0 7.4 8.9


Growth/(decline) rate over previous year -62.0% 288.3% 27.8% 292.8% 22.7% 20.7%

Net operating cash flow 14.7 20.7 18.6 8.5 10.7 0.1


Growth/(decline) rate over previous year 466.8% 40.3% -10.0% 111.8% 26.8% -99.4%

Key figures (CHF in million)

0

20

40

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100

120

140

27%

26%

48%

25%

25%

46%

45%

24%

27%

48% 36%

27%

37%

29%

21%

50%

29%

29%

Revenues

(CHF in million)

APACAmericasEMEA

Revenues by geography

52.9%52.2%

50.3%

53.2%50.3%

45.7%

0%

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70%

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(CHF in million) (% of revenue)

Gross profitGross profit and gross profit margin

Gross profit as % of revenue

Automotive

Consumer

Industrial

Revenueu-blox revenue split per market

Estimate

2009 2010 2011 H1/10 H1/11 H1/12

2009 2010 2011 H1/10 H1/11 H1/12

52.9%52.2%

50.3%

53.2%50.3%

45.7%

0%

10%

20%

30%

40%

50%

60%

70%

0

10

20

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70

52.9%52.2%

50.3%

53.2%50.3%

45.7%

0%

10%

20%

30%

40%

50%

60%

70%

0

10

20

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70

52.9%52.2%

50.3%

53.2%50.3%

45.7%

0%

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70%

0

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(CHF in million)

109120

137

114127

141

76.0%

86.0%

88.0%

75.5%

77.9%

83.4%

50%

60%

70%

80%

90%

100%

0

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40

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80

100

120

140

160

(% of total assets)

EquityTotal equity and equity ratio

Total equity Equity ratio

EmployeesEmployee breakdown Total: 273 (end of H1 2012, FTE based)

65% of employees based outside Switzerland (spread over 11 countries)

164

195 215

192 201

234

0

25

50

75

100

125

150

175

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250

EmployeesEmployee development

Average number of employees (FTE = full time equivalent)

(CHF in million)

Performance

EBITDARevenues

Financial performance

73.5

112.8

124.7

49.3

62.5

77.7

5.2

19.1 21.2

7.6 11.7 11.4

0

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40

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120

140

2009 2010 2011 HY1/10 HY1/11 HY1/12

Logistics,Admin.13%

Sales,Marketing,

Support28%

Research &development

59%

36

76

161

2009 2010 2011 H1/10 H1/11 H1/12 2009 2010 2011 H1/10 H1/11 H1/12

2009 2010 2011 H1/10 H1/11 H1/12

52.9%52.2%

50.3%

53.2%50.3%

45.7%

0%

10%

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30%

40%

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60%

70%

0

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70 52.9%52.2%

50.3%

53.2%50.3%

45.7%

0%

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70%

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52.9%52.2%

50.3%

53.2%50.3%

45.7%

0%

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60%

70%

0

10

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52.9%52.2%

50.3%

53.2%50.3%

45.7%

0%

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70%

0

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52.9%52.2%

50.3%

53.2%50.3%

45.7%

0%

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60%

70%

0

10

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52.9%52.2%

50.3%

53.2%50.3%

45.7%

0%

10%

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30%

40%

50%

60%

70%

0

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52.9%52.2%

50.3%

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45.7%

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Half year report at June 30, 2012

u-blox achieves solid half year results, increases guidance for 2012

u-blox today announced revenue for the first half year 2012 of CHF 77.7 million. This constitutes a 24.3% increase over the first half year of 2011. Gross profit experienced an increase to CHF 35.5 million, resulting in a gross profit margin of 45.7%. EBIT for the first half year of 2012 was CHF 11.4 million. The net profit grew 20.7% to CHF 8.9 million. u-blox raises its guidance for the full year and now expects revenues of CHF 165 million, with an EBIT of CHF 20 million.

Significant sales growth in the USA and EuropeDuring the first half of 2012, u-blox experienced double-digit sales growth in the Americas and EMEA as compared to the same period in 2011. Asia experienced an economic slowdown due to weak demand for consumer devices, resulting in a small sales decrease.

Strong growth in core business sectorsA surge in revenue in u-blox’ core businesses, vehicle and asset tracking and in-car navigation, demonstrated that the company’s innovations are meeting the requirements of our most important customers in the fast-growing industrial and automotive markets.

Two main trends drove the company’s success in the first half:

1) Both positioning and wireless products experienced strong traction especially in the Americas where wireless products gained important momentum, contributing significantly to growth. This is a positive confirmation of the company’s strategy to capitalize on the synergies of converged positioning and wireless technologies.

2) Continued success in the global automotive markets where u-blox maintains technology and quality leadership in both in-dash and after market navigation devices. Thanks to key technologies such as Automotive Dead Reckoning as well as a wide portfolio of automotive-grade components, u-blox has achieved an entrenched position as preferred provider of GPS/GNSS receiver technology to many major car brands.

Good profitability and easing exchange rate pressuresu-blox was able to achieve good profitability with 14.6% EBIT margin, in line with our guidance 2012.

AcquisitionsIn April, u-blox signed the share purchase agreement for 4M Wireless, a profitable UK-based company that develops leading software and test solutions that are crucial for supporting fourth generation (4G) mobile wireless devices. The acquisition will give u-blox ownership of advanced 4G protocol stacks that are necessary for enabling next-generation devices such as high-speed wireless modems, fixed wireless terminals, tablet computers and notebooks. The closing of the acquisition is pending due to routine government approval. Closing is expected to be completed by end of September 2012.

On June 28, u-blox announced the acquisition of UK-based Cognovo Ltd., a company specializing in “Software Defined Modem” (SDM) chip development technology. The acquisition extends u-blox’ chip design capabilities to create differentiated products for strategic markets that require 4G communications combined with global positioning. The combination of technologies

from Cognovo and 4M Wireless will result in a new 4G (LTE) wireless modem platform based on IP owned by u-blox. New products resulting from the acquisitions will broaden u-blox’ serviceable market, and increase margins in the automotive, consumer and industrial sectors. First product based on 4G technology is planned for end of 2013. The integration is proceeding smoothly.

Business developmentu-blox continued to win new business in a wide range of markets, regions and innovative applications. Highlights during the first half year include:

• ForyouGeneralElectronics,amajorChinesesupplierofin-carnavigation and infotainment systems for domestic and global automotive markets, selected u-blox 6 GPS receiver modules for two lines of their advanced in-car infotainment systems.

• Starcom,anIsraeli-basedmanufacturerofproductsforsecurityapplications, chose u-blox as the GPS receiver and wireless module provider for its “WatchLock” location-aware high-security padlock.

• u-bloxachievedanindustryfirstbyprovidingtheQZSSsatellitepositioning technology to Yupiteru, a Japanese manufacturer of telecommunications and car electronics for the Japanese market.

• u-bloxprovideditsuniqueCellLocate™hybridGPS/cellularindoor positioning technology to LOSTnFOUND, a Swiss-based company specializing in intelligent solutions for the protection, monitoring and retrieval of people and property.

Products and innovationDuring the first half of 2012, u-blox developed attractive and innovative products and technologies for both positioning and wireless applications. Here are some highlights:

• u-bloxlauncheditsseventhgenerationpositioningplatform,u-blox 7. This new positioning engine supports all Global Navigation Satellite Systems (GNSS) including GPS, Russia’s GLONASS, China’s Compass, the EU’s Galileo and Japan’s QZSSstandards.Keydifferentiatorsofu-blox7areglobalcompatibility, the industry’s lowest power consumption, and extremely small size. These features are critical for battery operated and handheld applications.

• Thecompanyintroducedtheworld’sfirstmulti-standard3Gwireless module. The ultra compact LISA U modem series supports all global “Universal Mobile Telecommunication Systems” (UMTS), enabling high-speed Internet access and voice for wireless terminals designed for use anywhere in the world.

• Majoroperatorcertificationsachieved:theLISAwirelessmodulewas certified by Softbank, Japan’s largest mobile operator, for their 3G network. The CDMA version was certified by Verizon Wireless in the USA, the country’s largest 3G service provider. Additionally, the LEON 2G module was certified by France Telecom / Orange. Certification is crucial to allow customers to design in u-blox’ modems for operation over specific operator networks.

EmployeesThe number of employees worldwide increased during the first half of 2012 mainly due to the acquisition of Cognovo (+30 employees). The company employed 277 people at June 30, 2012.


Finance • RevenuegrewintheAmericasby87%ascomparedtothefirst

half year of 2011. In EMEA u-blox saw an increase in revenue of 22%, and in Asia Pacific a decrease of 7%

• GrossprofitincreasedtoCHF35.5millionwithgrossprofitmargin reaching 45.7% as a result of changes in product mix

• Growthinoperatingexpenseswasbelowtherevenuegrowthrate

• EBITDAofCHF15.9millionwasreachedinthefirsthalfyearof2012, with an EBITDA margin of 20.5%

• EBITofCHF11.4millionwasachievedinthefirsthalfyearof2012, with an EBIT margin of 14.6%

• CurrentassetsdecreasedbyCHF10.9millioncomparedtoDecember 31, 2011, mainly due to the acquisition of Cognovo

• Capitalexpenditureinthefirsthalfyearof2012wasCHF8.8 million mainly due to further investments in acquisitions, capacity expansion and investments for product development

• AnetoperatingcashflowofCHF0.1millionwasrecorded

Condensed consolidated income statement

Revenue by segmentu-blox operates in two segments:

• GPS/GNSSandWirelessproducts u-blox develops and sells embedded GPS/GNSS semiconductors

and modules, and 2G/3G/CDMA wireless modules which are used in automotive, industrial and consumer applications. Revenue was CHF 77.0 million for the first half of 2012 as compared to CHF 61.4 million in the first half of 2011.

• Wirelessservices u-blox also offers wireless communication technology services

in terms of reference designs and software. In the first half of 2012, revenue for wireless services to external customers was CHF 0.7 million as compared to CHF 1.0 million during the first half year 2011.

Expanded global presenceDuring the period, u-blox expanded its global organization: new R&D centers were established, through acquisition, in Melbourn (UK), Leuven (Belgium), and a new sales office was opened in Bangalore (India).

Outlooku-blox is on track to achieve its planned growth in the consumer, industrial and automotive electronics markets. The growth in products and devices that rely on machine-to-machine communications is expected to accelerate in all market sectors over the coming years. With government mandates requiring vehicles to incorporate advanced telematics systems on top of the general trend towards increased mobility world-wide, the outlook for u-blox’ dual positioning and wireless strategy is favorable.

For the full year 2012, u-blox increases its revenue guidance by CHF 10 million to CHF 165 million, and expects an EBIT of approximately CHF 20 million, 17% above the level that was predicted after the announcement of the Cognovo acquisition.

The indications are based on exchange rates of 1.20 for EUR/CHF and 0.95 for USD/CHF for the second half year 2012. u-blox’ natural hedge against foreign exchange variations at the level of material costs helps maintain its relative gross margin. Revenue and EBIT, however, remain sensitive to the further variation of currency valuations against the Swiss Franc.

Fritz Fahrni Thomas Seiler Chairman of the Board of Directors CEO

January - June Jan. - Dec.(in CHF 000s) 2012 2011 2011

(unaudited) (unaudited) (audited)

Revenue 77'653 62'471 124'704% growth 24.3% 26.8%Cost of revenue -42'197 -31'045 -61'953

Gross profit 35'456 31'426 62'751% gross profit margin 45.7% 50.3% 50.3%

Operating expenses -24'130 -19'850 -41'807Other income 47 171 256

Profit from operations (EBIT) 11'373 11'747 21'200

Financial income 516 495 1'034Finance costs -574 -2'818 -1'286

Profit before income tax (EBT) 11'315 9'424 20'948% EBT margin 14.6% 15.1% 16.8%

Income tax expense -2'373 -2'014 -4'440

Net profit for the period 8'942 7'410 16'508% net profit margin 11.5% 11.9% 13.2%

Depreciation and amortization 4'551 3'450 7'919EBITDA (1) 15'924 15'197 29'119% EBITDA margin 20.5% 24.3% 23.4%

EBITDA growth 4.8% 38.0%EBIT growth -3.2% 54.5%Net profit growth 20.7% 22.7%

(1) EBITDA (earnings before interest, taxes, depreciation and amortization) calculated by adding depreciation and amortization to profit from operations (EBIT), in each case determined in accordance with IFRS.


Halbjahresbericht per 30. Juni 2012

u-blox erzielt im ersten Halbjahr ein solides Ergebnis und erhöht die Prognose für 2012

u-blox gibt heute einen Umsatz von CHF 77.7 Millionen für das erste Halbjahr 2012 bekannt. Das entspricht einem Umsatzwachstum von 24.3% gegenüber dem ersten Halbjahr 2011. Der Bruttogewinn steigt auf CHF 35.5 Millionen, was einer Bruttogewinnmarge von 45.7% entspricht. Der Betriebsgewinn (EBIT) für das erste Halbjahr 2012 beträgt CHF 11.4 Millionen. Der Reingewinn wächst um 20.7% auf CHF 8.9 Millionen. u-blox erhöht die Prognose für das laufende Geschäftsjahr und erwartet einen Umsatz von CHF 165 Millionen, bei einem EBIT von CHF 20 Millionen.

Bedeutende Umsatzsteigerung in den USA und EuropaIm ersten Halbjahr 2012 erzielte u-blox in Nord- und Südamerika und in der EMEA-Region ein zweistelliges Umsatzwachstum gegenüber demselbenZeitraum2011.InAsienhatsichdieWirtschaftslagedurchdie schwache Nachfrage nach Konsumgütern eingetrübt, was zu einem geringfügigen Umsatzrückgang führte.

Starkes Wachstum in KerngeschäftssegmentenDer massive Umsatzanstieg in den Kerngeschäftsbereichen von u-blox, Fahrzeug- und Güterortung sowie Fahrzeugnavigation, zeigt, dass die Produktinnovativen des Unternehmens die Anforderungen unserer wich-tigsten Kunden im schnell wachsenden Industriegüter- und Automobil-markt erfüllen.

Der Erfolg des Unternehmens im ersten Halbjahr wurde durch zwei Haupttrends begünstigt:

1) Sowohl Positionierungs- als auch Wireless-Produkte verzeichneten besonders in Amerika eine starke Nachfrage, wo der Markt für Kommunikationsprodukte an Fahrt gewann und erheblich zum Wachstum beitrug. Dies ist eine positive Bestätigung für die Strategie des Unternehmens, Synergien aus den konvergierenden Positionierungs- und Kommunikations-Technologien zu nutzen.

2) Anhaltender Erfolg in den weltweiten Automobilmärkten, wo u-blox weiter ihre führende Position in Technologie und Produktqualität

sowohl bei den im Armaturenbrett integrierten und als auch nach- träglich eingebauten Navigationssystemen innehält. Dank Schlüssel- technologien wie Automotive Dead Reckoning (Koppelnavigation)

und eines breiten Spektrums an für Automobil-Anwendungen qualifizierte Komponenten hat sich u-blox bei vielen grossen Automarken als bevorzugter Lieferant von GPS/GNSS-Empfänger-technologie etabliert.

Gute Rentabilität und nachlassender Wechselkursdrucku-blox konnte mit einer EBIT-Marge von 14.6% eine gute Rentabilität erzielen, die innerhalb unserer Erwartungen für 2012 liegt.

AkquisitionenIm April unterzeichnete u-blox einen Aktienkaufvertrag für die Über- nahme von 4M Wireless, einem profitablen britischen Unternehmen, das führende Software- und Testlösungen entwickelt, die für mobile, drahtlose Geräte der vierten Generation (4G) unverzichtbar sind. Mit der Akquisition wird u-blox über ausgereifte 4G-Steuerungssoftware (Protocol Stack) verfügen, die dafür sorgt, dass Geräte der nächsten Generation wie drahtlose High-Speed-Modems, Mobilfunk-Gateways, Tablet-Computer und Notebooks ans Internet angeschlossen werden können. Der Kauf steht unter dem Vorbehalt der üblichen behördlichen Genehmigungen. Der endgültige Abschluss ist bis Ende September 2012 zu erwarten.

Am 28. Juni gab u-blox die Übernahme von Cognovo Ltd. mit Sitz in Grossbritannien bekannt. Das Unternehmen ist auf SDM-Chip-Entwick-lungstechnologie (SDM = Software Defined Modem) spezialisiert. Durch den Kauf erweitert u-blox ihre Fähigkeit, eigene Chips für Produkte mit differenzierten Eigenschaften für ihre strategischen Märkte zu entwickeln, die 4G-Kommunikation mit globaler Positionierung kombinieren. Die Verknüpfung der Technologien von Cognovo und 4M Wireless ermöglicht u-blox eine neue drahtlose 4G- (LTE-) Modem-Plattform auf eigener Know-how-Basis zu kreieren. Die daraus entstehenden neuen Produkte werden den von u-blox bedienten Markt erweitern und die Margen im Automobil , Konsumgüter- und Industriegütermarkt erhöhen. Das erste Produkt auf Basis der 4G-Technologie ist für Ende 2013 geplant. Die Integration der Firma schreitet reibungslos voran.

Geschäftsentwicklungu-blox konnte neue Aufträge in einem breiten Spektrum von Märkten, Regionen und innovativen Anwendungsbereichen gewinnen. Highlights aus dem ersten Halbjahr:

• ForyouGeneralElectronics,eingrosserchinesischerAnbietervonNavigations- und Infotainmentsystemen für den Automobilmarkt in China und weltweit, wählte u-blox 6 GPS-Empfängermodule für zwei Produktlinien hochmoderner Infotainmentsysteme.

• Starcom,einisraelischerHerstellervonProduktenfürSicherheits- anwendungen wählte u-blox als Lieferanten von GPS-Empfänger-

modulen und Wireless-Modulen für sein Hochsicherheitsschloss „WatchLock“ mit Lokalisierungsfunktion.

• u-bloxliefertalserstesUnternehmenderBrancheQZSS-Satelliten-ortungstechnologie an Yupiteru, einem japanischen Hersteller von Telekommunikations- und Automobilelektronik für den japanischen Markt.

• u-bloxstelltseineeinzigartigeTechnologiefürHybrid-Positionierung (GPS- und Mobilfunkortung) dem Schweizer Unternehmen

LOSTnFOUND zur Verfügung, das auf intelligente Lösungen für den Schutz, die Überwachung und das Wiederauffinden von Personen und Eigentum spezialisiert ist.

Produkte und InnovationIm ersten Halbjahr 2012 entwickelte u-blox erneut attraktive und innovative Produkte und Technologien für beide Anwendungen – PositionierungunddrahtloseKommunikation.ZudenHighlightsgehören:

• u-bloxlanciertdiesiebteGenerationihrerPositionierungstechnologie, u-blox 7. Die Plattform unterstützt sämtliche globalen Satelliten- Navigationssysteme (GNSS), einschliesslich GPS, das russische GLONASS, das chinesische Compass, das europäische Galileo-System und den japanischenQZSS-Standard.DiewichtigstenProduktmerkmale

von u-blox 7 sind die weltweite Kompatibilität, der branchenweit niedrigste Energieverbrauch und eine extrem geringe Grösse. Diese Eigenschaften sind entscheidend für akkubetriebene tragbare Geräte.

• DasUnternehmenführtdasweltweiterste3G-Wireless-Modulein,das mit allen globalen Standards kompatibel ist. Die extrem kompakte Modemserie LISA-U2 unterstützt alle weltweiten UMTS-Systeme (Universal Mobile Telecommunication Systems) und ermöglicht sehr

schnellen Internetzugang und Sprachdienste für drahtlose Kommu-nikationsterminals, die für den weltweiten Einsatz konzipiert sind.

• ZertifizierungendurchgrosseBetreiber:DasWireless-ModulLISAwurde das 3G-Netzwerk von Softbank, dem grössten japanischen Mobilfunkbetreiber, und die CDMA-Version von Verizon Wireless in

den USA, dem grössten 3G-Anbieter des Landes, zertifiziert. Ausser-dem wurde das Modul LEON 2G von der France Telecom/Orange zertifiziert.DieZertifizierungensindwesentlicheVoraussetzungen,damit Kunden u-blox Modems in das Design von Produkten für den Betrieb über bestimmte Telekom Netze integrieren können.


MitarbeiterDie Anzahl der Mitarbeiter weltweit hat sich im ersten Halbjahr haupt-sächlichaufgrundderÜbernahmevonCognovoum30erhöht.Zum30. Juni 2012 beschäftigte das Unternehmen 277 Mitarbeiterinnen und Mitarbeiter.

Finanzielle Angaben • InNord-undSüdamerikakonntederUmsatzgegenüberdemersten

Halbjahr 2011 um 87% gesteigert werden. In der EMEA-Region erhöhte sich der Umsatz um 22%, während in Asien/Pazifik ein Rückgang von 7% verzeichnet wurde

• DerBruttogewinnerhöhtesichaufCHF35.5Millionen,beieinerBruttogewinnmarge von 45.7%, entsprechend den Veränderungen im Produktmix

• DieBetriebskostenstiegenwenigerstarkalsderUmsatz

• ImerstenHalbjahr2012betrugderBetriebsgewinnvorAbschreibungen CHF 15.9 Millionen bei einer EBITDA-Marge von 20.5%

• DerBetriebsgewinn(EBIT)erreichteimerstenHalbjahr2012CHF11.4Millionen, was einer EBIT-Marge von 14.6% entspricht

• DasUmlaufvermögenverringertesichimVergleichzum31.Dezember2011 um CHF 10.9 Millionen, hauptsächlich infolge der Akquisition von Cognovo

• DieInvestitionenbetrugenimerstenHalbjahr2011CHF8.8Millionen,die in erster Linie auf weitere Investitionen in Unternehmenskäufe, Kapazitätsausbau und Produktentwicklung entfielen

• DerCashflowausoperativerTätigkeitbetrugCHF0.1Millionen

Zusammengefasste konsolidierte Erfolgsrechnung

Umsatzaufteilung nach SegmentenDie Geschäftstätigkeit von u-blox gliedert sich in zwei Segmente:

• ProdukteimBereichGPS/GNSSunddrahtloseKommunikation u-blox entwickelt und verkauft integrierte GPS/GNSS-Halbleiter-

bausteine und Module für drahtlose Kommunikation nach den 2G, 3G, und CDMA-Normen, die im Automobil , Industriegüter- und Konsumgütermarkt Verwendung finden. Der Umsatz belief sich

im ersten Halbjahr 2012 auf CHF 77.0 Millionen gegenüber CHF 61.4 Millionen im ersten Halbjahr 2011.

• ServicesfürdrahtloseKommunikation u-blox bietet auch Dienstleistungen auf dem Gebiet der drahtlosen

Kommunikation in Form von Referenzdesigns und Software an. Im ersten Halbjahr 2012 betrug der Umsatz mit externen Kunden

CHF 0.7 Millionen, verglichen mit CHF 1.0 Millionen im ersten Halbjahr 2011.

Erweiterte globale PräsenzWährend der Berichtsperiode erweiterte u-blox ihre globale Organisation:DurchAkquisitionenentstandenneueF&E-ZentreninMelbourn (Grossbritannien) und Leuven (Belgien). In Bangalore (Indien) wurde eine neue Vertriebsniederlassung eröffnet.

Ausblicku-blox ist gut auf dem Weg, das geplante Wachstum in den Märkten für Konsumgüter, Industriegüter und Automobilelektronik zu erreichen. Das Wachstum von Produkten und Geräten, die auf eine automatisierte Datenübertragung zwischen technischen Geräten (M2M-Kommuni-kation) angewiesen sind, dürfte sich in allen Marktsektoren in den kommendenJahrenbeschleunigen.DiegenerelleZunahmederMobilität weltweit und der immer mehr von Gesetzgebern vorgeschrie-bene Einbau moderner Telematiksysteme lassen die zweigleisige Strategie von u-blox (Positionierung und drahtlose Kommunikation) weiterhin in einem günstigen Licht erscheinen.

u-blox erhöht ihre Umsatzprognose für das Gesamtjahr 2012 um CHF 10 Millionen auf CHF 165 Millionen und erwartet einen EBIT in Höhe von ca. CHF 20 Millionen, 17% besser als nach der Akquisition von Cognovo prognostiziert.

Die Angaben basieren auf Wechselkursen von 1.20 für EUR/CHF und 0.95 für USD/CHF für das zweite Halbjahr 2012. Die natürliche Fremd-währungsabsicherung (Natural Hedge) auf Ebene der Materialkosten hilft, die relative Bruttomarge zu stützen. Dennoch werden Umsatz und EBIT von weiteren Änderungen der Währungsbewertungen gegenüber dem Schweizer Franken abhängig sein.

Jan. - Juni Jan. - Dez.(in Tausend CHF) 2012 2011 2011

(ungeprüft) (ungeprüft) (geprüft)

Umsatz 77'653 62'471 124'704Wachstumsrate gegenüber Vorjahr 24.3% 26.8%Herstellungskosten der verkauften Produkte -42'197 -31'045 -61'953

Bruttogewinn 35'456 31'426 62'751Bruttogewinnmarge in % 45.7% 50.3% 50.3%

Operative Kosten -24'130 -19'850 -41'807Übriger Ertrag 47 171 256

Betriebsgewinn (EBIT) 11'373 11'747 21'200

Finanzertrag 516 495 1'034Finanzaufwand -574 -2'818 -1'286

Gewinn vor Steuern (EBT) 11'315 9'424 20'948EBT-Margein % 14.6% 15.1% 16.8%

Steuern -2'373 -2'014 -4'440

Reingewinn 8'942 7'410 16'508Reingewinnmarge in % 11.5% 11.9% 13.2%

Abschreibungen 4'551 3'450 7'919EBITDA (1) 15'924 15'197 29'119EBITDA-Marge in % 20.5% 24.3% 23.4%

EBITDA Wachstum 4.8% 38.0%EBIT Wachstum -3.2% 54.5%Wachstum Reingewinn 20.7% 22.7%

(1) EBITDA (earnings before interest, taxes, depreciation and amortization) als Addition der Abschreibungenzum Betriebsgewinn (EBIT) berechnet, immer auf Grundlage der Regeln nach IFRS.

Fritz Fahrni Thomas Seiler Chairman of the Board of Directors CEO

u-blox Holding AG, ThalwilCondensed consolidated interim financial statements

June 30, 2012

Page 8 | Half year report 2012

Consolidated statement of financial position

(in CHF 000s) NoteJune 30, 2012

(unaudited)December 31, 2011

(audited)June 30, 2011

(unaudited)

Assets

Current assets

Cash and cash equivalents 19’620 35’151 29’716

Marketable securities 37’504 45’981 50’164

Trade accounts receivable 23’418 16’877 15’363

Other receivables 4’522 2’456 1’727

Inventory 25’290 20’556 16’780

Prepaid expenses and accrued income 1’435 1’636 1’534

Total current assets 111’789 122’657 115’284

Non-current assets

Property, plant and equipment 5’835 5’331 5’189

Intangible assets 3 47’555 33’102 28’019

Financial assets 469 425 339

Deferred tax assets 3’842 2’068 1’954

Total non-current assets 57’701 40’926 35’501

Total assets 169’490 163’583 150’785

Liabilities and equity

Current liabilities

Trade accounts payable 5’725 6’120 6’604

Other payables 2’070 2’140 1’712

Current tax liabilities 2’881 1’584 2’102

Accrued expenses 8’434 9’325 7’851

Total current liabilities 19’110 19’169 18’269

Non-current liabilities

Other payables 616 609 0

Provisions 688 1’190 598

Employee benefits 5’007 3’958 3’014

Deferred tax liabilities 2’697 1’704 1’509

Total non-current liabilities 9’008 7’461 5’121

Total liabilities 28’118 26’630 23’390

Shareholders’ equity

Share capital 5’666 5’619 5’619

Share premium 101’582 105’367 104’718

Retained earnings 34’124 25’967 17’058

Total equity 141’372 136’953 127’395

Total liabilities and equity 169’490 163’583 150’785

These consolidated interim financial statements should be read in conjunction with the accompanying notes.



Consolidated income statement

(in CHF 000s)Jan. - June 2012

(unaudited)Jan. - June 2011

(unaudited)Jan. - Dec. 2011

(audited)

Revenue 77’653 62’471 124’704

Cost of revenue -42’197 -31’045 -61’953

Gross profit 35’456 31’426 62’751

Distribution and marketing expenses -7’584 -7’546 -14’200

Research and development expenses -13’524 -9’469 -22’081

General and administrative expenses -3’022 -2’835 -5’526

Other income 47 171 256

Profit from operations (EBIT) 11’373 11’747 21’200

Financial income 516 495 1’034

Finance costs -574 -2’818 -1’286

Profit before income tax (EBT) 11’315 9’424 20’948

Income tax expense -2’373 -2’014 -4’440

Net profit for the period 8’942 7’410 16’508

Basic earnings per share (in CHF) 1.43 1.19 2.64

Diluted earnings per share (in CHF) 1.39 1.17 2.59

1) Finance costs contain of Foreign exchange result (net) of CHF 0.3 million in the first half year 2012 (first half year 2011: CHF 2.6 million).


1) 1)

Consolidated statement of comprehensive income




(audited)

Net profit for the period 8’942 7’410 16’508

Other comprehensive income:

Foreign currency translation differences for foreign operations -296 -657 -67

Defined benefit plan actuarial losses -675 -162 -1’121

Income tax on other comprehensive income 186 33 213

Other comprehensive income for the period, net of income tax -785 -786 -975

Total comprehensive incomefor the period 8’157 6’624 15’533




Consolidated statement of changes in equity


(in CHF 000s)Share

capitalShare

premium

Cumulative translation differences

Other retained earnings

Retainedearnings

Total equity

Balance at January 1, 2011 5’619 103’798 -3’293 13’727 10’434 119’851

Net profit for the period 0 0 0 7’410 7’410 7’410

Other comprehensive income for the period, net of taxes 0 0 -657 -129 -786 -786

Share-based payments1) 0 920 0 0 0 920

Balance at June 30, 2011 5’619 104’718 -3’950 21’008 17’058 127’395

Balance at January 1, 2012 5’619 105’367 -3’360 29’327 25’967 136’953

Net profit for the period 0 0 0 8’942 8’942 8’942

Other comprehensive income for the period, net of taxes 0 0 -296 -489 -785 -785

Share-based payments1) 0 945 0 0 0 945

Dividend payment out of reserves from capital contributions to shareholders of the parent 0 -5’660 0 0 0 -5’660

Exercise of employee stock options 47 930 0 0 0 977

Balance at June 30, 2012 5’666 101’582 -3’656 37’780 34’124 141’372

1) Represents the amount of stock option expense recognized per June 30, 2012 and 2011 respectively.

Condensed consolidated statement of cash flows





(audited)

Net cash provided by operating activities 64 10’735 18’597

Net cash provided by/(used in)investing activities 392 -4’533 -6’217

Net cash used in financing activities -15’806 -1 -2’397

Net (decrease)/increase in cash andcash equivalents -15’350 6’201 9’983

Cash and cash equivalents at beginning of period 35’151 25’184 25’184

Effect of exchange rate fluctuations on cash and cash equivalents -181 -1’669 -16

Cash and cash equivalents at end of period 19’620 29’716 35’151

1) Net cash provided by investing activities consists of proceeds from sale of marketable securities of CHF 8.8 million and investments into property, plant and equipment of CHF 1.8 million and investments into intangible assets of CHF 2.9 million as well as an acquisition of a subsidiary, net of cash acquired of CHF 3.7 million in the first half year 2012.

2) Net cash used in financing activities contains the exercise of employee stock options of CHF 1.0 million, the dividend payment out of reserves from capital contributions of CHF 5.7 million and the settlement of the long-term shareholder loan with regard to acquisition of subsidiary of CHF 11.1 million.

3) Net cash used in investing activities consisted of investments into property, plant and equipment of CHF 1.6 million and investments into intangible assets of CHF 3.0 million in the first half year 2011.

3)


1)

2)

| u-blox Annual Report 2008

Notes to the condensed consolidated interim financial statements

1 Basis of preparation of the condensed consolidated

interim financial statements

The condensed consolidated interim financial statements of u-blox Holding AG (‘u-blox’ or the ‘Group’) were prepared in accordance with IAS 34 “Interim Financial Reporting”. These condensed consolidated interim financial statements do not include all the notes contained in the consolidated annual financial statements, and for that reason should be read in conjunction with the consolidated annual financial statements for the year ended December 31, 2011.

They have been prepared using the historical cost convention. There are no items requiring fair value accounting except for marketable securities. The Board of Directors authorized these condensed consolidated interim financial statements for issue on September 3, 2012.

The condensed consolidated interim financial statements have been prepared in Swiss francs (CHF), rounded to the nearest thousand. The accounting policies applied in the condensed consolidated interim statements are consistent with those used in the consolidated financial statements for the year ended December 31, 2011, except where noted in the following paragraph:

Effective January 1, 2012 u-blox adopted the revised IFRS 7 “Financial Instruments: Disclosures - Transfer of Financial Assets” as well as the revised IAS 12 “Deferred Tax: Recovery of Underlying Assets”. The adoption of these revised Standards had no effect on the consolidated interim financial statements.

The following new and revised Standards and Interpretations, which are or may be applicable to u-blox, have been issued, but are not yet effective and are not applied early to these condensed consolidated interim financial statements. Their impact on the consolidated financial statements of the Group has not yet been systematically analyzed. The expected effects as disclosed below the table reflect a first assessment by Group management.

Standard/Interpretation Impact Effective datePlanned application

by u-blox

New Standards and Interpretations

IFRS 9 Financial Instruments *** January 1, 2015 Reporting year 2015

IFRS 10 Consolidated Financial Statements * January 1, 2013 Reporting year 2013

IFRS 11 Joint Agreements * January 1, 2013 Reporting year 2013

IFRS 12 Disclosure of Interests in Other Entities ** January 1, 2013 Reporting year 2013

IFRS 13 Fair Value Measurement * January 1, 2013 Reporting year 2013

IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine *

January 1, 2013 Reporting year 2013

Revised or amended Standards and Interpretations

IFRSs Annual Improvement Project 2011 * January 1, 2013 Reporting year 2013

IFRS 7 Disclosures - Offsetting Financial Assets and Financial Liabilities ** January 1, 2013 Reporting year 2013

IAS 1 Presentation of Items of Other Comprehensive Income * July 1, 2012 Reporting Year 2013

IAS 19 Employee Benefits (amended 2011) **** January 1, 2013 Reporting Year 2013

IAS 27 Separate Financial Statements (2011) * January 1, 2013 Reporting Year 2013

IAS 28 Investments in Associates and Joint Ventures (2011) * January 1, 2013 Reporting Year 2013

IAS 32 Offsetting Financial Assets and Financial Liabilities * January 1, 2014 Reporting Year 2014

* No or no significant impacts are expected on the consolidated financial statements of u-blox. ** Mainly additional disclosures are expected in the consolidated financial statements of u-blox.*** The impact on the consolidated financial statements of u-blox can not yet be determined with sufficient reliability.**** The revised version of IAS 19 will have an impact on total costs of defined benefit plans as the concept of incorporating expected return on plan assets will be replaced by a net interest concept where net interest cost that are recognized in the income statement will be based on the net defined benefit position calculated based on the discount rate used to discount the obligation.

Page 14 | Half year report 2012

u-blox Annual Report 2008 | Page 17

The preparation of the condensed consolidated interim financial statements requires management judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses as well as disclosure of contingent assets and liabilities. Although these judgments, estimates and assumptions are based on management’s best knowledge of current events and actions, actual results may ultimately differ from those estimates.

In the condensed consolidated interim financial statements significant estimates and assumptions made by management are not different from those made in the consolidated financial statements for the year ended December 31, 2011.

Income taxes are recognized based on best estimate of the weighted average annual tax rate for 2012.

The Group operates in markets where no significant seasonal or cyclical variations in revenue areexperienced during the financial year.

The condensed consolidated interim financial statements include u-blox Holding AG, Thalwil and subsidiaries in which it holds – either directly or indirectly – more than 50% of the voting or over which it exercises some other form of control.

2 Segment information

GPS and wire-less products

Wireless services

Totalsegments

Non-allocated/ eliminations Group

January – June January – June January – June January – June January – June

(in CHF 000s) 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011

Revenue third 76’999 61’435 654 1’036 77’653 62’471 0 0 77’653 62’471

Revenue intragroup 0 0 6’343 2’475 6’343 2'475 -6’343 -2’475 0 0

Total revenue 76’999 61’435 6’997 3’511 83’996 64’946 -6’343 -2’475 77’653 62’471

EBITDA 14’638 15’115 1’428 249 16’066 15’364 -142 -167 15’924 15’197

Depreciation -1’104 -1’057 -309 -263 -1'413 -1'320 0 0 -1’413 -1’320

Amortization -2’561 -1’759 -577 -371 -3'138 -2'130 0 0 -3’138 -2’130

EBIT 10’973 12’299 542 -385 11'515 11'914 -142 -167 11’373 11’747

Financial income 516 495 516 495

Finance costs -574 -2’818 -574 -2’818

EBT -200 -2’490 11’315 9’424

June 30,2012

June 30,2011

June 30,2012

June 30,2011

June 30,2012

June 30,2011

June 30,2012

June 30,2011

June 30,2012

June 30,2011

Assets 94’158 63’999 15’484 4’543 109’642 68'542 59’848 82’243 169'490 150'785


| u-blox Annual Report 2008Page 16 | Half year report 2012

3 Acquisition of subsidiary

The following business combination took place during the six-months period ended June 30, 2012:

Acquisition of Cognovo LimitedAt June 27, 2012 u-blox AG acquired 100% of the shares of Cognovo Limited, a company specializing in “Software Defined Modem” (SDM) chip development technology.

Cognovo Limited, a spin off from ARM in 2009, employed 30 employees as of the acquisition date. The company is headquartered in Melbourn, England with an office in Leuven, Belgium. Cognovo’s Software Defined Modem (SDM) platform enables the creation of flexible multi-mode devices capable of operating a dynamic mix of cellular modems and broadcast receivers. Cognovo extends u-blox’ chip design capabilities to create differentiated products for strategic markets that require 4G communications combined with global positioning.

The acquisition had the following provisional effect on the Group’s assets and liabilities:

(in CHF 000s)

Carrying amount of the acquired as-sets and liabilities

Allocation of the purchase costs

Acquired assets and liabilites

Cash and cash equivalents 539 539

Other receivables 18 18

Prepaid expenses and accrued income 266 266

Property, plant and equipment 163 163

Intangible assets

Software 2’159 2’159

Acquired technology 5’771 5’771

Deferred tax assets 1’925 1’925

Total assets 3'145 7'696 10'841

Other payables -254 -254

Accrued expenses -1'057 -1’057

Deferred tax liabilities -1’154 -1’154

Long-term loan -11’089 -11’089

Net assets -9'255 6'542 -2'713

Goodwill 6’925

Total consideration transferred 4'212

Paid in cash in 2012 -4'212

Cash and cash equivalents acquired 539

Acquisition of subsidiary, net of cash acquired -3’673

Settlement of long-term shareholder loan with regard to acquisition of subsidiary (included in cash flow used in financing activities) -11’089

Total purchase price -14’762

The goodwill represents intangible assets that do not qualify for a separate recognition as well as theassembled workforce of Cognovo. The goodwill is fully allocated to the GPS and wireless products segment.

Had Cognovo been taken over at January 1, 2012, revenue had been approximately at the same level and an EBIT had resulted of approximately CHF 9.6 million.

The name of the company was changed to u-blox Melbourn Limited in August 2012.

u-blox Annual Report 2008 | Page 19Half year report 2012 | Page 17

The following business combination was announced during the six-months period ended June 30, 2012:

Pending acquisition of 4M Wireless LimitedAt April 24, 2012 u-blox announced the acquisition of 100% of the shares of 4M Wireless Limited, Luton (UK), a company designing and developing software and test solutions that are used for the development of fourth generation (4G) mobile wireless devices based on LTE standards.

The acquisition at a price of approximately USD 9 million, depending on earn-out, includes the intellectual property and software in the area of LTE wireless technology and the integration of the 4M Wireless business and employees into u-blox’ organization.

The acquisition is subject to customary closing conditions and pending regulatory approval. Closing is expected by end of September 2012.

4 Guarantees, pledges in favor of third parties and

other contingent liabilities

At June 30, 2011 and 2012 there were no guarantees in favor of third parties.

5 Subsequent events

There have been no events between June 30, 2012 and the date of authorization of these condensed consolidated interim financial statements that would lead to an adjustment of the carrying amounts of assets and liabilities presented as of June 30, 2012 or would otherwise have to be disclosed.

| Page 18 | Half year report 2012

Investor information and contacts

u-blox Holding AG

Corporate address

Investor relations

Website

Financial calendar

Ticker details for u-blox shares•Listing SIXSwissExchange•Tickersymbol UBXN•ISIN-No. CH0033361673•SwissSecurity-No. 3336167•Reuters UBXN.S•Bloomberg UBXN:SW

u-blox Holding AGZürcherstrasse688800 ThalwilSwitzerlandPhone +41 44 722 74 44Fax +41 44 722 74 47

Roland JudChief Financial Officer E-mail: [email protected]

www.u-blox.com

•Annualresults2012: March 21, 2013•AnnualGeneralMeeting2012: April 24, 2013

mailto:roland.jud%40u-blox.com?subject=Half%20Year%20Report%202012

http://www.u-blox.com

| Page 21

DisclaimerThis document contains certain forward-looking statements. Such forward-looking statements reflect the current views of management and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the u-blox Group to differ materially from those expressed or implied. These include risks related to the success of and demand for the Group’s products, the potential for the Group’s products to become obsolete, the Group’s ability to defend its intellectual property, the Group’s ability to develop and commercialize new products in a timely manner, the dynamic and competitive environment in which the Group operates, the regulatory environment, changes in currency exchange rates, the Group’s ability to generate revenues and profitability, and the Group’s ability to realize its expansion projects in a timely manner. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this report. u-blox is providing the information in this release 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.

ImprintPublisher / Copyright: September 2012 u-blox Holding AG, Thalwil, Switzerland.

Worldwide presence

R&D centerReigate, UKMelbourn, UKLeuven, BE

R&D centerSgonico, Italy

Americas regional officeReston, Virginia, USA

R&D centerSan Diego, California, USA

Corporate headquarters EMEA regional officeThalwil, Switzerland

APAC regional officeSingapore

APAC area offices

Beijing, China

Seoul, Korea

Tokyo, Japan

Shanghai, China

Taipei, Taiwan

Shenzhen, China

Hong Kong

Bangalore, India

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