h1/2019 results u-blox holding ag
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H1 2021 Results u-blox Holding AG
Thomas Seiler, CEO
Roland Jud, CFO
20 August 2021
u-blox Holding AG2
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.
H1 2021 financial results
H1 2021 business review
Strategy
Outlook
Q&A
u-blox Holding AG3
Agenda
u-blox Holding AG4
H1 2021 financial results summary
1) Excl. Share-based payments, impacts based on IAS-19, amortization of intangible assets acquired, impairments and non-recurring expenses
H1 2021 H1 2020
IFRS
reported adjusted1 adjusted1
Revenue 10.8%
(at constant exchange rates) (16.5%)
Gross Profit 89.7m 89.9m 79.4m 13.3%
Gross margin (%) 46.6% 46.7% 45.6%
EBITDA 25.4m 28.7m 24.1m 19.0%
EBITDA margin (%) 13.2% 14.9% 13.9%
Operating Profit (EBIT ) 5.6m 10.5m 13.2m -20.5%
EBIT margin (%) 2.9% 5.5% 7.6%
Net Profit 2.3m 6.3m 4.7m 34.5%
Cash Flow from operating activities 43.0m 43.0m 13.9m 210.1%
Free Cash Flow 27.7m 27.7m -21.9m 226.3%
EPS in CHF, fully diluted 0.32 0.89 0.67
(CHF millions, except EPS and margins)
Change 2021
to 2020
192.7m 192.7m 174.0m
u-blox Holding AG5
Financial highlights
• Financial results reflect solid growth driven by expansion of demand, but highly limited by
component constraints
• Total revenues of CHF 192.7m, an increase of 10.8% (16.5% at constant exchange rates)
• APAC revenues increased by 5.4% to CHF 73.9m
• EMEA revenues increased by 15.0% to CHF 59.4m
• AMEC revenues increased by 22.4% to CHF 59.9m
• Gross profit contribution (adjusted) of CHF 89.9 million, growth of 13.3%
• Gross margin (adjusted) 46.7%, highest gross margin since H1 2018
• EBITDA (adjusted) was CHF 28.7m, compared to CHF 24.1m last year
• Cash flow from operating activities of CHF 43.0m in H1 2021, compared to CHF 13.9m
last year
• Free cash flow of CHF 27.7m (H1 2020: CHF -21.9m)
u-blox Holding AG6
Revenue and EBITDA
Comments
• H1 2021 revenue growth year-over-year
(10.8% compared to H1 2020)
• Negative currency impact revenue
growth at H1 2020 rates 16.5%
• EBITDA (adjusted) margin of 14.9%
Revenue and EBITDA (adjusted)
393.3 385.1
333.5
190.6174.0
192.7
81.271.7
42.232.7
24.1 28.7
0
50
100
150
200
250
300
350
400
450
2018 2019 2020 H1.19 H1.20 H1.21
Revenue EBITDA (adjusted)
(million CHF)
48.9 59.9
55.0
59.0
70.1
73.9
H 1 . 2 0 H 1 . 2 1
Revenue( C H F m i l l i o n s )
Americas EMEA (incl. HQ) APAC
174.0
40.3%
31.6%
28.1%
38.3%
30.6%
31.1%
192.7
u-blox Holding AG7
Revenues by geography
Comments
• APAC revenue increased by 5.4%
• Strong continued business in Japan and Korea, flat in
China
• Some countries yet to fully recover from COVID-19
• EMEA revenue increased by 15.0%
• Increased demand for automotive, smart city,
infrastructure and consumer tracking applications
• Stagnant in industrial applications
• Americas revenue increased by 22.4%
• Growth with automotive, telematics, medical and
wearable applications
• Reduced demand for industrial infrastructure
Note: based on reporting area
63.4%
23.8%
7.3%
5.5%
u-blox Holding AG8
Market trends
Comments
Growth patterns:
• Industrial markets stable
• Tracking and telematics
• Automation
• Automotive market strong growth
• In-car navigation
• Telematics
• Consumer markets very strong
expansion
• Wearables and tracking
Revenue split per market
Note: Estimate
H1 2021
H1 2020
57.4%26.8%
12.6%
3.2%
Industrial Automotive Consumer Not assigned
u-blox Holding AG9
Shipments and ASP development
Comments
• Module business strongly
increased with decline in
ASP due to product mix
• Very strong increase
overall chipset volume due
to increase in consumer
and automotive markets
• ASP changes with product
mix, with positive impact
on gross margin
Modules GNSS chips Revenue
0.00
2.00
4.00
6.00
8.00
10.00
0
10
20
30
40
2018 2019 2020 H1.19 H1.20 H1.21
Shipments modules ASP
(million units) (CHF)
29.1%
0
50
100
150
200
250
300
350
400
450
2018 2019 2020 H1.19 H1.20 H1.21
Modules Chips Other
(million CHF)
385.1
190.6
393.3
192.7
333.5
78%
20%
25%
75%
23%74%74%
24%24%
76%
174.0
20%
78%
0.00
0.50
1.00
1.50
2.00
2.50
0
10
20
30
40
50
60
70
2018 2019 2020 H1.19 H1.20 H1.21
u-blox 6 u-blox 7
u-blox 8/M8 u-blox 9
u-blox 10 ASP
(million units) (CHF)
43.5%
u-blox Holding AG10
Gross profit
Comments
• Gross profit (adjusted) of CHF 89.9m
• Gross profit margin (adjusted) increased
to 46.7%
• H1 2021 margin reflects positive
impacts from product mix and revenue
growth
Gross profit (adjusted) Gross profit margin (adjusted)
177.9 175.1
150.9
86.1 79.489.9
45.2% 45.5% 45.3% 45.2% 45.6% 46.7%
0%
10%
20%
30%
40%
50%
0
20
40
60
80
100
120
140
160
180
200
2018 2019 2020 H1.19 H1.20 H1.21
Gross Profit (adjusted) % of revenue
(million CHF) (in % of revenue)
u-blox Holding AG11
Distribution & Marketing / Research & Development
R&D expenses* (adjusted)D&M expenses* (adjusted)Comments
• D&M expenses* (adjusted)
increased due to increased
revenues and margins with
effects on bonus accruals
• R&D expenses* (adjusted)
increased due to we brought
products earlier into
amortizations, and lower
capitalizations as a result of
• more R&D effort carried in agile
processes
• strong efforts for re-designing
modules with better available
components
67.8
78.9 82.4
39.8 39.5
52.3
17.2%
20.5%
24.7%
20.9%
22.7%
27.1%
0%
5%
10%
15%
20%
25%
30%
0
10
20
30
40
50
60
70
80
90
2018 2019 2020 H1.19 H1.20 H1.21
R&D expense (adjusted) R&D expense % of revenues
(million CHF) (in % of revenue)
34.8 35.231.9
17.815.8
18.1
8.8%9.1%
9.6%9.3%
9.1%9.4%
0.0%
2.5%
5.0%
7.5%
10.0%
0
5
10
15
20
25
30
35
40
2018 2019 2020 H1.19 H1.20 H1.21
D&M (adjusted) % of revenues
(million CHF) (in % of revenue)
*) expenses including depreciation and amortization
u-blox Holding AG12
Income statementAdjusted and IFRS numbers
Comments
• Adjustments are share-based payments of CHF 1.8m,
pension impact of IAS-19 of CHF 0.7m, amortization of
intangible assets acquired of CHF 1.6m and non-
recurring expenses of CHF 0.8m
• R&D expenses increased due to lower capitalization (CHF 15.2m), higher amortization (CHF 11.8m) of newly launched products, and full consolidation of Sapcorda
• Financial costs consists primarily of foreign exchange losses, the interest for the two bonds, and the result of reversal of equity consolidation of Sapcorda GmbH
• Financial income is mainly driven by unrealized foreign exchange gains
• For group adjustments corporate tax rate of 18.1% applied as in H1 2021
(in CHF 000s) (IFRS) % revenue
Adjustments2)
(adjusted) % revenue (adjusted) % revenue
Revenue 192’734 100.0% 192’734 100.0% 173’957 100.0%
Cost of sales -103’008 -53.4% 207 -102’801 -53.3% -94’565 -54.4%
Gross Profit 89’726 46.6% 207 89’933 46.7% 79’392 45.6%
Distribution and marketing expenses -18’831 -9.8% 765 -18’066 -9.4% -15’805 -9.1%
Research and development expenses -54’430 -28.2% 2’152 -52’278 -27.1% -39’482 -22.7%
General and administrative expenses -12’004 -6.2% 1’806 -10’198 -5.3% -11’373 -6.5%
Other income 1’137 0.6% 1’137 0.6% 505 0.3%
Operating Profit (EBIT) 5’598 2.9% 4’930 10’528 5.5% 13’237 7.6%
Finance income 5’090 2.6% 5’090 2.6% 87 0.1%
Finance costs -6’594 -3.4% -6’594 -3.4% -3’533 -2.0%
-1’456 -0.8% -1’456 -0.8% -1’907 -1.1%
Profit before income tax (EBT) 2’638 1.4% 4’930 7’568 3.9% 7’884 4.5%
Income tax expense -383 -0.2% -894 -1’277 -0.7% -3’207 -1.8%
Net Profit 2’255 1.2% 4’036 6’291 3.3% 4’677 2.7%
Minority interests 21 0.0% 21 0.0% -69
2’234 1.2% 4’036 6’270 3.3% 4’746 2.7%
Earnings per share in CHF 0.32 0.89 0.67
Diluted earnings per share in CHF 0.32 0.89 0.67
Operating Profit (EBIT) 5’598 2.9% 4’930 10’528 5.5% 13’237 7.6%
Depreciation and amortization 19’813 10.3% -1’617 18’196 9.4% 10’905 6.3%
EBITDA 1)25’411 13.2% 3’313 28’724 14.9% 24’142 13.9%
1)
2) Adjustments are impacts of share based payments, Pension calculation according to IAS-19, Non-recurring expenses, impairments and
amortization of intangible assets acquired
Share of profit of equity-accounted investees,
net of taxes
Jan-Jun 2021 Jan-Jun 2021 Jan-Jun 2020
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.
Net Profit, attributable to equity holders of the
parent
u-blox Holding AG13
Statement of financial position
0
100
200
300
400
500
600
700
2017 2018 2019 2020 H1.2021
Fixed Assets
Inventory
Accounts Receivable
Other current assets
Cash (incl. marketable
securities)
(mill
ion
CH
F)
Total Assets
0
100
200
300
400
500
600
700
2017 2018 2019 2020 H1.2021
Short Term Debt
Long Term Debt
Shareholders' Equity
Total Liabilities
(mill
ion
CH
F)
Comments
• Strong financial position with a liquidity (incl. marketable
securities) of CHF 85.6m (Dec. 2020: CHF 94.4m)
• Inventory CHF 23.8m (Dec. 2020: CHF 33.6m) decreased due
to high demand
• Trade receivables CHF 41.3m (Dec. 2020: CHF 34.0m)
• Capitalized R&D now CHF 166.0m (Dec. 2020: CHF 162.5m)
• Current liabilities contain among others trade payables of
CHF 18.6m (Dec. 2020: CHF 17.8m) and bridge loan from the
bond repayment of CHF 25.0m
• Non-current liabilities contain bond of CHF 60.8m, deferred
tax liabilities CHF 1.8 m, employee benefits (IAS-19)
CHF_21.3m, provisions CHF 7.8m and leasing liabilities
based on IFRS-16 of CHF 29.2m
u-blox Holding AG14
Global customer base
Comments
• Widespread across different
applications and geographical regions
• Strong and growing customer base,
serving 10’300 customers worldwide in
2021 (2020: 9’000 customers)
• Low customer dependency
• 74 customers total 80% of revenue
• Largest customer accounts for 5.6% of
total revenue in H1 2021
• 10 biggest customers account for 31.7%
of total revenue in H1 2021
Number of customers totaling 80% of revenue
104 108
93 94 97
74
0
20
40
60
80
100
120
2018 2019 2020 H1.19 H1.20 H1.21
(# Customers)
u-blox Holding AG15
Employment
Average number of employees (FTE based)Employee breakdown (end of June 2021, FTE based)
Note: 76% of employees based outside Switzerland (spread across 18 countries) Note: FTE = full time equivalent
893993 1’043
1’124 1’136
0
200
400
600
800
1000
1200
2017 2018 2019 2020 H1.21
(Average FTE)
Research &
development
67%(2020: 798)
Sales,
marketing,
support 16%
(2020: 189)
Logistics,
admin
16%(2020: 173)
756183
184
Total = 1'123 FTE (2020: 1'161 FTE)
u-blox Holding AG16
Statement of financial position
Comments
• Strong equity base maintained
• Equity ratio of 58.1% (2020: 54.6%)
• Treasury shares for option program
CHF 32.0m (Dec. 2020: CHF 32.0m)
• Equity ratio without treasury shares:
60.6% (2020: 57.2%)
• Equity ratio without IFRS 16:
62.3% (2020: 58.2%)
• No minority interests in 2021 (2020:
CHF 0.1m)
Total equity and equity ratio
319349 351
283 292
60.7% 63.1% 60.0%
54.6% 58.1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
50
100
150
200
250
300
350
400
2017 2018 2019 2020 H1.21
Equity Equity ratio
(million CHF) (% of total assets)
u-blox Holding AG17
Segment informationIFRS numbers
(in CHF 000s) 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Revenue third parties 192’680 173’795 54 162 192’734 173’957 0 192’734 173’957
Revenue intragroup 0 17’405 16’519 17’405 16’519 -17’405 -16’519 0 0
Total revenue 192’680 173’795 17’459 16’681 210’139 190’476 -17’405 -16’519 192’734 173’957
EBITDA*) 23’836 18’336 1’575 1’525 25’411 19’861 0 0 25’411 19’861
Depreciation -4’082 -4’636 -1’414 -1’385 -5’496 -6’021 0 0 -5’496 -6’021
Amortization -12’990 -5’144 -1’260 -382 -14’250 -5’526 0 0 -14’250 -5’526
Impairment -67 -74’104 0 -67 -74’104 0 0 -67 -74’104
Operating profit (EBIT)
Finance income 5’090 87 5’090 87
Finance costs -6’594 -3’533 -6’594 -3’533
Share of profit of equity-accounted investees, net of taxes -1’456 -1’907 -1’456 -1’907
EBT -1’504 -3’446 2’638 -71’143
-242 5’598 -65’790
January - June January - June January - June
0 06’697 -65’548
January - June January - June
-65’7905’598-1’099
Positioning and
wireless products
Wireless services Total segments Non-allocated/
eliminations
Group
u-blox Holding AG18
Consolidated statement of cash flows
Comments
• Cash flow from operating activities
positively impacted by net working
capital of CHF 8.9m
(H1 2020: CHF -5.8m)
• Maintained investment activities
• Free Cash Flow (before acquisitions &
participations in capital increase)
CHF 25.8m (H1 2020: CHF -8.4m)
• Cash-in through acquisition of 100% of
Sapcorda GmbH CHF 1.8m
For the period ended For the period ended
(in CHF 000s) June 30, 2021 June 30, 2020
Net Profit 2’255 -60’022
Depreciation & Amortization 19’813 85’651
Other non-cash transactions 2’942 3’312
Financial income & financial expense 2’960 5’353
Income tax expense 383 -11’121
Change in net working capital and provision 8’901 -5’825
Income tax paid/(repaid) 5’711 -3’493
Net cash generated from operating activities 42’965 13’855
Net investment into property, plant and equipment -1’893 -2’855
Net investment into intangibles -15’541 -19’855
Net investments into financial assets 315 467
Acquisition of subsidiairies, net of cash acquired & participations 1’831 -13’518
Net cash used in investing activities -15’288 -35’761
25’846 -8’388
Free Cash Flow 27’677 -21’906
Proceeds from issuance of ordinary shares 0 0
Par value reduction / Dividends paid to owners of the parent 0 0
Net proceeds from borrowings -34’962 1’076
Payment of lease liabilities -2’563 -2’313
Purchase of treasury shares 0 0
Non-controlling interests 82 125
Interest paid -2’323 -2’566
Net cash used in financing activities -39’766 -3’678
Net decrease in cash and cash equivalents -12’089 -25’584
Cash and cash equivalents at beginning of year 93’874 127’424
Exchange gains/(losses) on cash and cash equivalents 3’314 -1’735
Cash and cash equivalents at end of the period 85’099 100’105
Free Cash Flow (before Acquisition & participations
in capital increase)
u-blox Holding AG19
H1 2021 Business Review
u-blox Holding AG20
Business highlights
• Strong financial results driven by broad-based expansion of demand, highly limited by
component constraints
• Bookings accelerated throughout the first half of 2021 with bookings exceeding
FY_2020 revenue by far, current orderbook 7x the amount recorded in summer 2020
• Acquired full ownership in the Sapcorda Joint Venture, the leading provider of
advanced GNSS augmentation services serving the high precision GNSS mass market
• Aligns with company’s strategic goal of driving innovation and growth of GNSS augmentation
services
• Expands company’s suite of location services and complements existing data services,
including assistance data and communication service offerings
21
Product launches H1 2021
CloudLocateA service that offloads the position calculation from IoT devices into the cloud.
CloudLocate is ideally suited for Industrial IoT tracking applications that must survive in the field for months or years without battery replacement and only need a few position updates per day.
LEA-F9T and ZED-F9TThese timing modules and antenna make it easy to develop high precision solutions for network and other time and frequency critical applications.
ALEX-R5A miniature cellular module that integrates low power wide area (LPWA) connectivity and GNSS technology into an ultra-small system-in-package (SiP) form factor.
Its tiny dimensions make it a perfect fit for size constrained applications.
Cellular communication
Short range radiocommunication Positioning
20+ new products launched providing additional solution capabilities
Services
u-blox Holding AG
MAYA-W1The module is tailored to a wide range of fast-growing, future-oriented professional applications, such as power management, electric vehicle charging, professional appliances, tracking, telematics, and fleet management.
u-blox Holding AG22
Customer relationships: iGPSPORTLatest cycling computer uses u-blox M10 to deliver ultra-long performance
• As the cycling scene diversifies,
longevity and performance in complex
signal environments are gaining
importance as key differentiators.
• The cycling computer leverages the
u-blox M10 platform’s ultra-low power
consumption, compact size, and its
ability to track four global navigation
satellite systems (GNSS) to offer
endurance athletes a superior user
experience.
• Adopting the u-blox M10 positioning platform in their iGS320 cycling computer brought iGPSPORT an 80 percent increase the power autonomy to deliver 72 hours of continuous tracking, up from 40 hours in their previous solution.
u-blox Holding AG23
Customer relationships: Xpeng Motors
• Xpeng Motors has chosen u-blox’s F9
technology for its P7 Super-long range
sports EV sedan.
• u-blox F9 has been incorporated into the
vehicle’s XPILOT 3.0 advanced driver
assistance system (ADAS) used for
navigation-guided driving, automated
parking, and autonomous driving.
• For instance, once a navigation
destination is set on a specific highway,
the car will follow the route guidance to
execute autonomous lane changing,
switching to high-speed routes, and
selecting the optimal route in real-time.
• Dead reckoning technology based on inertial sensors extends high precision performance to otherwise challenging urban environments.
Xpeng Motors selects u-blox high precision GNSS technology for Smart Electric Vehicle
24
Strategy
u-blox Holding AG
u-blox Holding AG25
Inorganic growth18 acquisitions in 11 years
• Strong acceleration via
acquisitions
• Sapcorda the latest
acquisition
• 15 technology and
service focused deals,
driving expansion of
technology and
product portfolio
• 3 business add-ons
adds scale and
expands customer
base
• Successful, fast
integrations
• Key people still on
board
18
u-blox Holding AG26
Outlook
u-blox Holding AG27
Guidance 2021
• Strong recovery of demand and record bookings since
late 2020
• Content extension in automotive
• Expansion of industrial IoT
• Rapid ramp-up with new products
• Efficiency measures fully implemented
• Revenues lag bookings due to supply constraints for
electronic components
• Only short visibility on obtainable output capacity
• Additional costs expected related to Sapcorda
acquisition integration
• Lower R&D capitalization expected due to increased
R&D efforts with agile processes, and to re-designing
of modules with better available components
• Newly launched products increase amortizations
+10% of USD EUR GBP
Revenue + 9% + 1% 0%
EBITDA + 16% 0% -2%
EBIT + 22% - 1% - 3%
• Exchange rate assumptions for 2021: Average rates of 2020
(USD: 0.939, EUR: 1.075, GBP: 1.204)
• FX-sensitivity against CHF:
CHFActual HY
2021(adjusted)
Guidance 2021 (June)
(adjusted)
Guidance 2021 (Aug)(adjusted)
Revenue growth at 2020 exchange rates
16.5% 11…19% 15…19%
EBITDA margin 14.9% 16…22% 16….20%
EBIT margin 5.5% 9…12% 6…9%
• Analyst day 23 November, 2021
• 2021 full year results 11 March, 2022
• Annual General Meeting 20 April, 2022
u-blox Holding AG28
Upcoming events
u-blox Holding AG29
Thank you for your attention
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