Annual results 2015 u-blox Holding AG

Transcription

1 locate, communicate, accelerate Annual results 2015 u-blox Holding AG March 18, 2016 Thomas Seiler, CEO Roland Jud, CFO

2 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. Slide 2

3 Agenda Introduction Operational highlights 2015 Financial results 2015 Business review Outlook Q&A Slide 3

4 Operational highlights 2015 Revenue up strongly: both revenue and EBIT surged upward in all regions, taking us another significant step towards our intermediate goal of halfbillion-dollar annual revenues. Acquisition of Lesswire: takeover of automotive-grade Bluetooth and Wi-Fi module products and team of key engineers, strengthening our position as a supplier to the in-car and V2V communications markets. Strategic new products: launch of nine products in all three product areas: cellular, short range and positioning. First V2X module: Licensing of the manufacturing and marketing of the Cohda Wireless based design for quick access to emerging markets New offices worldwide: to expand R&D team and make customer contact easier, new offices in Chongqing, Tampere, Berlin and Osaka were opened. Slide 4

5 u-blox group Key figures Amount CHF In relation to Change 2015 revenue to 2014 Revenue 338.3m % 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 Slide 5

6 Revenue and EBITDA Revenue and EBITDA Comments (million CHF) 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 Revenue EBITDA Slide 6

7 Markets trends Revenue split per market for 2015 Comments Automotive Consumer Industrial Comparable 2014 Redefined sector definitions (only factory fitted by the car manufacturer are classified as automotive) Growth in all markets 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 Automotive Industrial Consumer Note: Estimate Slide 7

8 Revenues by geography Revenues by geographic region Comments (million CHF) % Growth of business in all regions. Revenue development according to billing location: 300 Strong increase of 32.6 % in the Americas % 48% Strong growth of 26.3% in APAC Continued growth of 15.3% in EMEA % 46% 23% Fx-impact in growth was + 3.5% on total revenues: % 24% 25% 25% 26% 29% 27% 41% 28% 29% Americas EMEA APAC Negative impact of EUR: - 2.4% Positive impact of USD: + 5.9% Note: based on customers billing location Slide 8

9 Gross profit Gross profit / Gross profit margin Comments Increase in gross profit to CHF 155.0m in 2015 (million CHF) % 47.2% 50.3% (in % of revenue) % 45.8% 45.4% 60% 50% 40% 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 % % 10% % Gross Profit % of revenue Slide 9

10 Shipments and ASP development Continued growth of chips and modules volume Shipments of u-blox M8 chip ramping -up Modules GPS/GNSS chips (million units) % (CHF) 12 (million units) % (CHF) Antaris u-blox 5 u-blox 6 Shipments modules ASP u-blox 7 u-blox M8 ASP Note: incl. Atmel-Chipset sales Slide 10

11 Global customer base Number of customers totaling 80% of revenue Comments 70 Strong and stable customer base More than 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 Slide 11

12 Distribution & marketing / Research & development Distribution & marketing expenses Research & development expenses (million CHF) (in % of revenue) (million CHF) (in % of revenue) 30 12% 70 25% % % 9.7% 9.1% % % 8% 6% 4% 2% % 18.9% 17.7% % 19.2% % 15% 10% 5% % % D&M % of revenues R&D % of revenues Slide 12

13 Employees Employee breakdown (end of 2015, FTE based) Average employee level ( , FTE based) (Average FTE) Logistics, admin 12% Sales, marketing, support 19% Research & development 69% Total = 736 FTE Note: 74.8% of employees based outside Switzerland (spread over 17 countries) Note: Average number of employees (FTE = full time equivalent) Slide 13

14 Income statement Consolidated income statement (condensed) for the year ended December 31, June 30, (in CHF 000s) (audited) (audited) (unaudited) Revenue 338' ' '912 Cost of sales -183' '323-89'158 Gross profit 155' '722 72'754 Operating expenses -106'201-84'515-49'647 Other income 2' '686 Operating profit (EBIT) 51'291 39'075 24'793 Finance income 996 4' Finance costs -4' '502 Profit before income tax (EBT) 47'613 42'963 18'489 Income tax expense -10'515-8'566-3'525 Net profit, attributable to owners of the parent 37'098 34'397 14'964 Operating profit (EBIT) 51'291 39'075 24'793 Depreciation and amortization 27'421 19'529 11'748 EBITDA*) 78'712 58'604 36'541 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 *) 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. Slide 14

15 Segment information Positioning and Wireless services Total segments Non-allocated/ Group wireless products eliminations January - December January - December January - December January - December January - December (in CHF 000s) Revenue third 337' ' ' ' ' '045 Revenue intragroup 25'732 23'827 25'732 23'827-25'732-23' Total revenue 337' '799 26'117 24' ' '872-25'732-23' ' '045 EBITDA *) 73'184 54'889 6'707 4'436 79'891 59'325-1' '712 58'604 Depreciation -6'192-4'602-1'835-1'670-8'027-6'272-8'027-6'272 Amortization -16'232-12' '019-16'636-13'257-16'636-13'257 Impairment -2'758-2' '758 - Operating profit (EBIT) 48'002 38'049 4'468 1'747 52'470 39'796-1' '291 39'075 Finance income 996 4' '546 Finance costs -4' ' 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, Assets 240' '485 14'956 13' ' ' '655 64' ' '747 Liabilities 126'695 79'835 5'705 4' '400 84'766 6'122 4' '522 88'871 additions to non-current assets 48'936 45'434 1'535 1'099 50'471 46' '471 46'533 *) 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. Slide 15

16 Statement of financial position (1) Statement of financial position (condensed) Dec. 31, Dec. 31, June 30, (in CHF 000s) (audited) (audited) (unaudited) ASSETS Current assets Cash and cash equivalents 112'387 37'662 30'390 Marketable securities 11'659 21'730 24'920 Trade accounts receivable 43'790 38'842 35'179 Other current assets 51'933 54'862 38'558 Comments 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 Total current assets 219' ' '047 Non-current assets Property, plant and equipment 14'708 14'836 13'824 Goodwill 56'716 57'903 53'512 Other Intangible assets 88'042 70'502 58'864 Financial assets Deferred tax assets 6'930 4'826 6'104 Total non-current assets 167' ' '784 Total assets 386' ' '831 Slide 16

17 Statement of financial position (2) Statement of financial position (condensed) Dec. 31, Dec. 31, June 30, (in CHF 000s) (audited) (audited) (unaudited) 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 equity Share capital 6'053 5'930 5'899 Share premium 84'006 89'531 88'340 Retained earnings 158' '415 96'960 Comments 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 Total equity, attributable to owners of the parent 248' ' '199 Total liabilities and equity 386' ' '831 Slide 17

18 Statement of financial position Total equity and equity ratio (million CHF) (% of total assets) % 78.7% 79.7% % 64.2% % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Comments Strong equity ratio with 64.2% now including issued bond Payout of a dividend of CHF 1.90 per share proposed to the Annual General Meeting Increase by 18.8% from 2014 Dividend payout ratio: 34.6% of net profit Equity Equity ratio Slide 18

19 Statement of cash flows Consolidated cash flow Statement (condensed) Condendsed consolidated statement of cash flows For the year ended December 31, (in CHF 000s) 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 33'163 Exchange gains/(losses) on cash and cash equivalents '222 Cash and cash equivalents at end of year 112'387 37'662 Comments 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 Slide 19

20 Business review

21 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 Slide 21

22 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 easyto-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 Slide 22

23 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 Slide 23

24 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 Slide 24

25 Product launches TOBY-L201 The world s first 4G Cat 4 module with 3G WCDMA fall-back. TOBY-L280 The fastest 4G module in an ultrasmall package. TOBY-R2 & LARA-R2 Two low-data-rate products with 4G technology. ELLA-W1 & EMMY-W1 Automotive grade for multi-radio standards, able to handle Wi-Fi, Bluetooth and NFC in automotive environments. ODIN-W262 features an integrated antenna and is designed specifically for IoT applications that need advanced multi-radio capabilities. THEO-P1 Compact, automotive grade module. Ideal for V2X trials and early deployments. CAM-M8C Offers simultaneous GNSS operation for GPS/GLONASS, GPS/BeiDou or GLONASS/BeiDou and delivers precise, jamming-resistant and reliable positioning. u-blox M8 Ramped up production of u-blox M8, a new GPS/GLONASS receiver platform for low-power devices Slide 25

26 Expanded relationships with 5200 customers Large diversification by geography, market and applications Romteck, Australia Fire monitoring services Liverock Technologies, Japan Smart IoT gateway REYAX Technology, Taiwan 3G GNSS tracking platform Slide 26

27 Continued high customer satisfaction Xirgo Technologies is a leading provider of innovative products for M2M markets (mobile monitoring and control, fleet management, and container and trailer tracking) Xirgo s challenge is customization. Xirgo want to design products using the chips and modules available that will answer all their customers needs. Xirgo want to be able to adapt to changing market conditions and supplying the kind of quality that keeps customers loyal. Why did Xirgo choose u-blox? u-blox meets Xirgo s expectations regarding turnaround and delivers products that are easy to adapt to a particular customer need. u-blox supplies technology that meets all Xirgo s expectations, and comes up with top-quality products suitable for all their markets. Tracking box for usage based car insurance Slide 27

28 New strategic partnerships CAR 2 CAR Communication Consortium Dedicated to the development and deployment of Cooperative Intelligent Transport Systems (C-ITS). Develop roadmaps for vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communications to improve road traffic safety and efficiency. M2M Alliance Drive innovation in M2M solutions and Internet of Things (IoT). Develop next generation M2M applications and solutions, in particular in the automotive and industrial markets. Slide 28

29 Laying the foundations for the leading-edge innovations of the future The past year saw a 19% increase in the R&D engineering team, bringing it to 517 employees. Addition of new R&D centers in Berlin and Tampere brought the total in the USA, Europe and Pakistan to 517 employees. Spending on R&D in 2015 accounted for 19.2% of revenues. The growth process is ongoing, and we continue to recruit R&D talents for our locations in 11 different countries. u-blox maintains a high degree of flexibility, adapting to changing market needs and demands Slide 29

30 locate, communicate, accelerate Strategy

31 Acquisition for accelerating business growth NeonSeven Geotate Fusion Wireless SigNav assets 4M Wireless Cognovo Fastrax connectblue Antcor Lesswire assets Lesswire Acquisition of assets as of 1 Jan 2015: BT and Wi-Fi products, designs and staff Slide 31

32 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 Technology & Innovation Outlook 2016 Adding new features with outstanding performance Add value and performance by allowing customers to use several u-blox components side by side Slide 32

33 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) Strategic partnerships & acquisition opportunities 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 Slide 33

34 Outlook locate, communicate, accelerate

35 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 *) Internet of Things Financial performance outlook 2016 Continued strong business growth in 2016 Impact by product mix on relative gross margin Natural hedging protects relative gross margin against foreign exchange variations Actual FY 2014 Actual FY 2015 *) This guidance is based on the absence of unforeseen economic adversity and exchange rates assumed at budget level Exchange rate assumptions for 2016: EUR/CHF: 1.08 USD/CHF: 0.97 GBP/CHF: 1.42 FX-sensitivity against CHF on Guidance % of USD EUR GBP Revenue + 8.4% + 1.5% 0% EBIT % + 1.2% - 2.0% Guidance 2016 *) Revenue 270.0m 338.3m 395m 405m EBIT 38.3m 51.3m 56m 60m CHF CHF CHF Slide 35

36 Upcoming events Latest registration date for AGM: April 19, 2016 Annual General Meeting: April 26, 2016 Shares traded ex dividend: April 28, 2016 Dividend payout: May 3, 2016 Half-year results 2016: August 26, 2016 Slide 36

37 locate, communicate, accelerate Thank you!