u-blox Investor Presentation · u-blox Investor Presentation January 2018. ... Source: Ericsson...
Transcript of u-blox Investor Presentation · u-blox Investor Presentation January 2018. ... Source: Ericsson...
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 AGSlide 2
Our vision
Slide 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
Innovation is our life blood
Slide 5
We have been first to market with many technology solutions
© u-blox Holding AG
Expanding the global reach
• Broad customer base with more than 5900 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
© u-blox Holding AGSlide 6
5900CUSTOMERSWORLDWIDE
15SALES
OFFICES
66COUNTRIES
WORLDWIDE
Slide 7
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
Billions of things waiting to be connected
Street lights 1 billion
Source: Geeny.io
© u-blox Holding AG
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
billion
31.6
billion
u-blox plays in the high growth markets
© u-blox Holding AGSlide 8
Source: Ericsson Mobility Report 2017
• The mobile phone market has plateaued
• The future growth lies in both, wide-area and short-range IoT applications
They are u-blox heartland
Connected devices (billions)
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
0
50
100
150
200
250
2000 2005 2010 2015 2020 2025
Ever expanding Mobility index
Mobility and the Cloud economics drive our markets for IoT
© u-blox Holding AGSlide 9
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
avera
ge
uti
lizati
on
)
# of Servers in Public Cloud
Source: Transport Outlook 2011, OECD
The Internet of Things that Really Matter – IoT market will
become large
• 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 Holding AGSlide 10
Source: ABI research 2016Cellular M2M
0
100
200
300
400
500
600
700
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Cellular M2M
LTE Cat-1 LTE Cat-M NB-IoT
millions of units
u-blox: Unique technology and product line-up
Slide 11
PositioningCellular
CommunicationShort Range
Communication
Integrated Circuits
Modules
Services
CellLocate® (modem based positioning)
AssistNowTM (world wide GNSS assistance service, on- and off-line)
Correction DataFOTA (Firmware update over the air)
Lifetime Security
• u-blox wireless and positioning technologies are available in a unique combination of chips and modules• The combination of technologies provides for solutions that deliver extra value not available otherwise• This strategic core delivers the inimitable market placement and drives our profitability
© u-blox Holding AG
PositioningCellular
CommunicationShort Range
Communication
Integrated Circuits
Modules
Services
CellLocate® (modem based positioning)
AssistNowTM (world wide GNSS assistance service, on- and off-line)
Correction DataFOTA (Firmware update over the air)
Lifetime Security
Strong competitive advantage
Slide 12
• Important strategic benefits from the unique u-blox line-up• Long-term sustained competitive position
© u-blox Holding AG
Strong synergies between the technologies
High cross selling effectFu
ll o
wn
ers
hip
of
tech
no
log
y
Maxim
um
co
mp
ete
nce
Marg
in e
xp
an
sio
n
Cro
ss fu
nct
ion
al v
alu
e
Serv
ices
on
to
p o
f H
W
Four IoT focus areas for u-blox
© u-blox Holding AGSlide 14
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 in connected 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 )
Internet of
Things
IoT and Industry 4.0
Slide 15
Industry
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
© u-blox Holding AG
Automotive market – high quality and robustness
Slide 17
Typical applications
• In car navigation
• Vehicle telematics
• Emergency call systems
• Insurance boxes
• Autonomous vehicles
u-blox advantages
• Automotive quality
• Dead reckoning solutions
• Seamless integration of positioning and wireless
• Robust performance
• Long product lifetime
© u-blox Holding AG
Industrial market – versatile and reliable technology
Slide 18
Typical applications
• Asset tracking
• Automation
• Precision timing
• Smart metering
• POS terminals
u-blox advantages
• Excellence in product features
• High reliability
• Form factor roadmap
• Seamless integration of positioning and wireless
• Short time to market
© u-blox Holding AG
Consumer market – mass market solutions
Slide 19
Typical applications
• Wearables
• Drones
• People and animal tracking
• Car accessories
• Mobile hotspots and routers
u-blox advantages
• High performance solutions
• Small size, chip and module solutions
• Very low power consumption
• Cost effectiveness
• Short time to market
© 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
© u-blox Holding AGSlide 20
Leading u-blox IP for the IoT focus markets
Innovation for competitive advantage
Slide 21
Autonomous vehicles
LTE connectivity
Smart modems
Security
Robustness
Size and cost reduction
18% OF SALES INVESTED IN R&D
© u-blox Holding AG
Cellular product offer
Slide 22
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 6Cat 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
© u-blox Holding AG
Short range radio product offer
• The products provide connectivity solutions for
• High-performance systems in automotive and industrial markets
• Embedded systems mainly for industrial markets
• Car-to-car interaction
Slide 23 © u-blox Holding AG
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 AGSlide 24
Modules –
Easy access to GNSS
u-blox GNSS – de-facto industry standard
High precision GNSS for the mass market
Communication link
Base
NEO-M8P-2
Rover
NEO-M8P-0
Chips -
Core platforms
Continuous revenue growth
Slide 26
Revenue Growth Application revenue mix
IndustrialConsumer
AutomotiveCAGR 18.5%
© u-blox Holding AG
Continuous strong profitability
© u-blox Holding AGSlide 27
Gross Profit trend EBITDA trend
122.7
155.0167.1
72.882.5 87.4
45.4% 45.8%46.4%
44.9%45.9% 45.1%
0%
10%
20%
30%
40%
50%
60%
0
20
40
60
80
100
120
140
160
180
2014 2015 2016 H1/15 H1/16 H1/17
Gross Profit % of revenue
5.9%
(million CHF)
270.0
338.3
360.2
161.9 179.7
193.9
58.6
78.7 81.8
36.5 39.1 40.3
0
50
100
150
200
250
300
350
400
2014 2015 2016 H1/15 H1/16 H1/17
Revenue EBITDA
(million CHF)(million CHF)
7.9%
Maintained EBITDA margin of 21...23%Maintained gross margin of 45...46%
Solid balance sheet – a result of continued strong
profitability and tight OPES 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 AGSlide 28
Strategic Goals
Slide 29 © u-blox Holding AG
• Grow business with new products
• Continued focus on strategic development
• Strengthening of the global presence
• Operational excellence for higher efficiency
Financial performance and guidance 2017
Slide 30 © u-blox Holding AG
• Maintained guidance for 2017
• Continued business growth in 2017
• Impact by product mix on relative gross margin
• Natural hedging protects relative gross margin against foreign exchange variations
+10% of USD EUR GBP
Revenue + 8.6% + 1.3% 0%
EBIT + 21.1% + 1.0% - 2.0%
• Exchange rate assumptions for 2017:EUR/CHF: 1.07 USD/CHF: 1.02 GBP/CHF: 1.23
• FX-sensitivity against CHF on Guidance 2017
*) This guidance is based on the absence of unforeseen economic adversity and exchange rates assumed at budget level
Actual
FY 2015
Actual
FY 2016
Guidance 2017*)
Revenue 338.3m 360.2m 410m…425m
EBIT 51.3m 59.0m 60m… 65m
CHF CHF CHF
Our promise
Slide 31
Growing organization to
meet market demands
Consistent Execution:
First to market with new products tailored to various applications
u-blox positioned for
profitable growth
Focus and invest in key
markets with a sustainable future
Technology leadership
and control of the core technology
© u-blox Holding AG
Legal structure u-blox group
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 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 BranchBelgium
100% u-blox Cork
Ireland
u-blox Malmö
Sweden
100%
u-blox Athens
Greece
100%
u-blox BerlinGermany
100%
© u-blox Holding AGSlide 33
u-blox AG Chongqing
representative office
Chongqing
u-blox Electronics Ltd
Shanghai
u-blox Wireless
Technology Ltd.
Shanghai100%
Sapcorda GmbH
Berlin43%
Board of directors
Additional information – see Corporate Governance and Financial Report 2016 p. 8 - 13
© u-blox Holding AGSlide 34
Fritz FahrniChairman
Member NCC
André MüllerMember AC
Prof. Gerhard TrösterChairman NCC
Gina Domanig Dr. Paul van IseghemChairman AC
Thomas SeilerCEO
Jean-Pierre WyssCOO
Executive Committee
Additional information – see Corporate Governance and Financial Report 2016 p. 14 - 16
© u-blox Holding AGSlide 35
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
© u-blox Holding AGSlide 36
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)
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.
© u-blox Holding AGSlide 37
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
Upcoming events
• Annual results 2017: March 15, 2018
• Annual General Meeting: April 24, 2018
Slide 38
Investor relations contact
Thomas Seiler
Chief Executive Officer
u-blox Holding AG
Zürcherstrasse 68
8800 Thalwil, Switzerland
Phone: +41 44 722 74 44
Fax: +41 44 722 74 99
E-mail: [email protected]
Roland Jud
Chief Financial Officer
u-blox Holding AG
Zürcherstrasse 68
8800 Thalwil, Switzerland
Phone: +41 44 722 74 44
Fax: +41 44 722 74 99
E-mail: [email protected]
© u-blox Holding AGSlide 39