u-blox analyst day 2017 · u-blox analyst day 2017 31 october 2017 ubx-17058225. disclaimer slide 2...

locate, communicate, accelerate

u-blox Analyst day 2017

31 October 2017

UBX-17058225

Disclaimer

Slide 2

This presentation contains certain forward-looking statements. Such forward-looking statements

reflect the current views of management and are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results, performance or

achievements of the Group to differ materially from those expressed or implied herein.

Should such risks or uncertainties materialize, or should underlying assumptions prove incorrect,

actual results may vary materially from those described in this presentation.

u-blox is providing the information in this presentation as of this date and does not undertake any

obligation to update any forward-looking statements contained in it as a result of new information, future events or otherwise.

© u-blox Holding AG

Agenda

9.45 Registration & Coffee

10.00 Welcome: Thomas Seiler

10.10 Company overview & strategy: Thomas Seiler

10.30 Operations: Jean-Pierre Wyss

11.00 Introduction to the Connected Industry: Thomas Seiler

11.10 Positioning: Daniel Ammann

11.40 Coffee break

12.00 Short Range: Herbert Blaser

12.30 Cellular: Andreas Thiel

13.00 Key takeaways: Thomas Seiler

13.10 Lunch

Slide 3 © u-blox Holding AG

Company Overview and Strategy

Thomas Seiler, CEO

Enabling the Internet of Things (IoT) – u-blox at the core

© u-blox Holding AGSlide 5

u-blox: Unique technology and product line-up


PositioningCellular

Communication

Short 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

PositioningCellular

Communication

Short 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


• Important strategic benefits from the unique u-blox line-up

• Long-term sustained competitive position

Strong synergies between the technologies

High cross selling effect

Full

ow

ners

hip

of

tech

nolo

gy

Maxim

um

com

pete

nce

Marg

in e

xpansi

on

Cro

ss f

unct

ional v

alu

e

Serv

ices

on

top o

f H

W

0

50

100

150

200

250

300

350

400

2014 2015 2016 H1/15 H1/16 H1/17

APAC Americas EMEA

25%

48%

27%

178.4

25%

50%

25%29%

48%

23%

(million CHF)

7.9%

26%

46%

28%

25%

47%

29%

26%

21%

53%

Continuous growth and strong profitability (1)


Geographical revenue mix Application revenue mix

IndustrialConsumer

Automotive

Continuous growth and strong profitability (2)


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%

Solid balance sheet – a result of

continued strong profitability

Slide 10

• 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


Innovation

Slide 11

New applications

Core technology

Solutions

Security

Robustness

Size and cost reduction

18% OF SALES INVESTED IN R&D


Highly diversified global customer base


5700CUSTOMERSWORLDWIDE

15SALES

OFFICES

66COUNTRIES

WORLDWIDE

• Broad customer base with more than 5700 customers and significant market share

• Expanding customer base: Customers in more than 66 countries worldwide

• Customer diversity: Top 65 customers in 24 countries

• No single customer responsible for more than 5.3% of total sales

• 15 sales offices and 14 R&D locations

Operations

Wyss Jean-Pierre, EVP, Head of Production & Quality

100% Fabless operations: Our manufacturing partners / main suppliers

Slide 14

Chip manufacturing for u-blox

technology

Wafer fabsISO/TS 16949

ISO 14001

IC packaging and testingISO/TS 16949

ISO 14001

Chip suppliers for cellular

technology

ISO 9001

ISO 14001

Chip suppliers for short range

technology

ISO 9001

ISO 14001

Module assembly and testing

for all technologies

ISO/TS 16949

ISO 9001

ISO 14001


Our 1st class main manufacturing partners

Slide 15

Used Technology nodes: 180 nm … 28 nm

All our manufacturing partners continually invest in manufacturing capacity and capabilities to help ensure adequate supply – so we can stay ahead of demand and can meet tight market windows and keep technological leadership

Revenue not public

Capacity 10 m wafer (200 mm equivalents)

Employees 18,000

Investments per year

not public

Revenue USD 29.4 billion

Capacity 20 m wafer (200 mm equivalents)

Employees 47,000


USD 10 billion

Revenue USD 3.9 billion

Capacity 3 billion MLF packages

Employees 21,900


USD 600 million

Revenue USD 24 billion

Capacity 550 smd-lines

Employees 200,000


USD 450 million

Used Technology nodes: 180 nm … 28 nm


Our 1st class main manufacturing partners (locations and ranking)

Slide 16

# = global ranking of manufacturing partners in their segment

#3

#2

#2

#1


Manufacturing strategy

• Long-term relationship with our manufacturing partners, all for more than 10 years

• Using purchasing power and technological expertise of our manufacturing partners

• Strong collaboration and continuous improvement programs established

• Tight relationships with our R&D, to support stable manufacturing processes and designs conceived for manufacturing

• Low capex required for growth of capacity business

• No capacity limitations and high flexibility

• Automotive-qualified fabs

• Fully automated production setup, to stay competitive with manufacturing costs


Logistics as a strategic advantage in our business

High customer service focus – KPIs:

• Service level (availability of our

products of the shelf with no

lead time)

• Delivery reliability: Fulfilment of

delivery date requirements

Performance figures:

• 20,000 deliveries per year

• 500 active products (including

different versions and variants)

• 30% turn-business (delivered

within same month)

Slide 18

80.00%

82.00%

84.00%

86.00%

88.00%

90.00%

92.00%

94.00%

96.00%

98.00%

100.00%

CDR

Target

Customer delivery reliability in %


Logistics as a strategic advantage in our business

• Logistics outsourced to our partners includes

• In-bound & out-bound logistics

• Direct shipment from our manufacturing partners to our customers world-wide

• EDI connections between our ERP system and our manufacturing partners optimize logistics flow

• Supply chain operations continually monitor KPIs and define improvement actions

• Full traceability through the whole supply chain


High manufacturing yield

• Continuous yield improvement

programs in place

• Production engineering monitors

the performance of manufacturing

setup and defines improvement

programs against targets

• Fully automated lines guarantee stable production figures and

excellent quality levels

• No repairs allowed, which

guarantees high outgoing quality

level

Slide 20

Sample GNSS module final yield in %

Horizontal Line:

FY Target

Product, tmonth

FY


Quality system

• In-house Quality department

• Long-lasting experience with Tier 1 automotive customers

• Excellent audit results from leading customers

• Extensive reliability know-how and quality lab for analyzing chips and modules

• Selected suppliers are first class and have an excellent quality reputation and system in place

• Program for supplier audits and development programs


Different quality standards & product grading for different market

requirements

Slide 22

Standard Grade Professional Grade Automotive Grade

Environmental conditions

Consumer environment Industrial environment Automotive environment

Temperature -20 … +65 °C -40 … +85 °C -40 … +85 °C or extended

Product Qualification JESD47 (ICs)

Subset of ISO 16750 (modules)

AEC-Q100 (ICs)

ISO 16750 (modules)

AEC-Q100 (ICs)

Extended ISO 16750 (modules)

Process levels for design, manufacturing and testing

• 100% outgoing test

• product traceability

• PCN process

• Failure analysis

Standard grade, plus:

• 100% Automatic X-Ray and Optical Inspection on modules

Professional grade, plus:

• PPAP

• ISO/TS 16949 manufacturing

• automotive test flow

• component traceability

• 8D failure reporting

• automotive PCN process

• long product life cycles

• 0-ppm program


Excellent field reliability data – examples of customers

Slide 23

* 2017: up to Q2

0

5

10

15

20

25

2014 2015 2016 2017

pp

m

GNSS Chip, professional grade chip

Production

0km

Field

Target

ppm trend (total)

0

10

20

30

40

50

60

2014 2015 2016 2017

pp

m

GNSS module, professional grade module

Production

0km

Field

Target

ppm trend (total)

0

1

2

3

4

5

2015 2016 2017

pp

m

GNSS Chip, automotive grade chip

Production

0km

Field

Target

ppm trend (total)

YearQuantity

[millions]

Changeable fails Changeable fails ppmTotal

ppmProduction 0km Field Production 0km Field

2015 0.13 0 0 0 0.0 0.0 0.0 0.0

2016 0.45 0 0 0 0.0 0.0 0.0 0.0

2017 0.35 0 0 0 0.0 0.0 0.0 0.0


Established Process Management System (ISO 9001)

Slide 24

• Continuous improvement initiatives (different methods like Six Sigma, Kaizen, EFQM) ensure our competitiveness in a demanding environment

CorporateStrategy

ManagementSystem

RiskManagement

InvestorRelations

Lead

Management

Opportunity

Management

Design-in

Management

Customer

Services

Customer

Development

Product

Definition

Product

Development

Product

Ramp-up

Product

Maintenance

Product

Phase-out

Forecast &

Planning

Production

Steering

Inventory

Management

Shipment

Management

HRManagement

ITManagement

LegalManagement

Marketing CommunicationsDocument

ManagementFinance

LaboratoryManagement

MANAGEMENT PROCESSES

CRM: CUSTOMER RELATIONSHIP MANAGEMENT

PLC: PRODUCT LIFECYCLE

SCM: SUPPLY CHAIN MANAGEMENT

SUPPORT PROCESSES

Sourcing

Enabler

InnovationManagement

ProgramManagement

Enabler


The connected Industry


The Connected Industry

Thomas Seiler, CEO

Focus topic: The Connected Industry

• The connected industry focuses on Industry 4.0, the fourth revolution

• This will make fundamental changes to the market

• Wireless & positioning technologies are key


Internet ofThings

IoT and Industry 4.0

Slide 27

Industry4.0

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

CityConnected

Consumer

Connected

Car

Connected

industry


The future of the connected industry


2015 2020 2025 2030

Cloud and agility

• Smart service

• Customer feedback

• Self learning

Smart Engineering

• Digital collaboration

• Digital modeling

Smart Factory

(Industry 4.0)

• Integrated planning

• Proactive maintenance

• Process automation

• Product lifecycle

Digital Marketing

• CRM

• Omni channel presence

• Self service portals

• Dynamic pricing

Agility Fast loop Closed loop Cooperative loop

Wireless technology makes the things that matter connected

The Connected industry


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)

u-blox applications

• Mobility

• Asset tracking

• Fleet management systems

• Aviation & UAV

• Farming

• Infrastructure

• Industrial terminal

• Automation & control

• Monitoring

• Router and gateway

• Security

• Healthcare

Key benefits of a connected industry

Traceability

• Each asset to be tracked in real-time, tagged with

position, and time-stamped data information

• Trace data, track alerts, solve issues and rectify

potential errors with no downtime

Connectivity and remote control

• More efficient operation by fully connecting each

element of the complete industrial system;

sensors, HMI devices, resource planning systems

(ERP, MRP, APS)

• Transfer data back and forth all the way

• Save on resources with remote monitoring and

controlling

Slide 30

Operator mobility

• Wirelessly connected terminals for staying

close to the operations

• Increase the operator flexibility and efficiency

and offer them mobility

Resource effectiveness

• Resource conscious, saving time and money

Optimization and flexibility

• Preventative maintenance and organizational

planning

• Seamlessly move a device within your

operations


Connect Industry – a wide range of applications

Slide 31

Farming

Machine Control

Security

Healthcare

Industrial Terminals

Monitoring Routers and Gateways


Technologies ideal for the connected industry

• Large variety of connectivity bandwidth

• Robust topologies

• Mesh technologies

• Low Power Wide Area (LPWA)

• ATEX explosion proof

Longevity

• Long-term availability

• Easy migration to new technologies

Wireless connectivity – the nerve system of the Connected Industry

Slide 32

Key wireless technology in the form of

integrated circuits and modules

• Cellular communications technologies

• Short range radio technologies

• Satellite based positioning technologies

Security focus

• Secure boot

• Interface security

• API control

• Spoofing/jamming detection


Unique market positioning of u-blox

• Three product centers deliver products for the Connected Industry markets

Slide 33

CEL SHO POS


Connected Industry – The Positioning Story

Daniel Ammann, Executive Director of Positioning Products

Table of contents

• Market position, trends

• Innovation & future potential

• Offers connected industry

• Q&A


Market position of u-blox Positioning products

Slide 36

• Market leader in GNSS for

• In-car navigation systems

• Time synchronization for cellular base stations

• Unmanned Aerial Vehicles (drones)

• People trackers

• Asset tracking

• Benchmark in performance and cost-effectiveness

• Innovator in accuracy, anti-spoofing, power efficiency, small size, and low cost

u-blox market share by volume excluding smartphones and tablets. Source: u-blox

estimate based on ABI research data 2017


Positioning technology

• 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

Slide 37

LEA

17 x 22.4 mm2

CAM

9.6 X 14 mm2

NEO

12.2 x 16 mm2

EVA

7 x 7 mm2

MAX

9.7 x 10.1 mm2

u-blox module form factors – de-facto industry standards

High precision for the mass market

Communication link

Base

NEO-M8P-2

Rover

NEO-M8P-0

ZOE

4.5 x 4.5 mm2


Market trends

• Consumer markets: Wearable devices, Smart/Shared Bikes

• Low cost, low power, good accuracy

• Industrial: Drones, Cellular base stations, Asset management

• Accuracy, Reliability, Integrity, Long-term availability

• Automotive: In-car navigation, ADAS, Autonomous road vehicles

• Accuracy, Integrity, Safety & Security


Strong innovation pipeline in 2017

• New products:

• ZOE family – Ultra small, high performance, super low power

SiPs

• M8230-CT – Super low power GNSS receiver for portable

applications

• New business initiative

• Joint Venture Sapcorda to bring high precision GNSS

positioning to the mass market


High Precision GNSS system view

• High-precision applications require measurement correction services

• Typical systems consist of

• Multi-band GNSS antenna

• Multi-band GNSS receiver

• Correction service provider

• Correction service receiver

• L-band satellite receiver – and/or -

• Cellular modem

Slide 40

Cellular

Accurate Position

Velocity

Time

GNSS Correction

Services

(Broadcast)

GNSS Reference

Station Network

Internet

L-Band Geostationary

Satellite


High Precision GNSS system view

• High-precision applications require measurement correction services

• Typical systems consist of

• Multi-band GNSS antenna

• Multi-band GNSS receiver

• Correction service provider

• Correction service receiver

• L-band satellite receiver – and/or -

• Cellular modem

Slide 41

Cellular

Accurate Position

Velocity

Time

GNSS Correction

Services

(Broadcast)

GNSS Reference

Station Network

Internet

L-Band Geostationary

Satellite


Sapcorda (Safe And Precise CORrection Data)

• Setup as a Joint Venture with u-blox, Bosch, Geo++, Mitsubishi Electric.

• Sapcorda Services GmbH will distribute GNSS positioning services for high precision GNSS applications.

• Targeting OEM, System Integrators for mass market applications (i.e. Automotive, Industrial & Consumer).

• Sapcorda to distribute GNSS correction services to serve the mass market

• Global and continent wide coverage.

• One way communication (Broadcast) with L-Band satellite & Internet distribution.

• Open system: available to all receiver manufacturers.

• Such services do not exist today and are required to bring high precision product to the mass market


The GNSS technology evolution

Slide 43

From minutes to 26s From -130dBm

(outdoor) to -

167dBm (indoor)

From GPS to

GLONASS, QZSS,

BeiDou and

Galileo (multi

constellation)

From meters

to centimeters

AccuracyMulti GNSSSensitivityTTFF

2000 2005 2010 2015 2020

TTFF = Time to first fix (the first position determination)


Further innovation potential for positioning products

• New GNSS launched in Europe (Galileo), China (BeiDou), Japan (QZSS), India (IRNSS), and add new signals (e.g. L2C, L5, L6) with improved characteristics are added

• Silicon technology advances allow for smaller sizes and other innovation

• Integrity and Functional Safety become important differentiation features

• Growth in volumes makes it possible to develop application specific products with the benefits of economy of scale

u-blox has a strong and well filled innovation pipeline

1575

L5 L2

12271176 MHz

BeiDou IRNSSGLONASSGPS Galileo Correction Services

L6 L1


Positioning products for

Connected Industry

Robust positioning for industrial use cases

• Great variety of use cases need versatile but robust receiver design

• Small size solutions yet high performance

• Battery operation

• GNSS satellite signals complemented by inertial sensor information

• Module the ideal form factor

Application Examples

Security – car alarmInsurance telematics Road tolling Fleet management


Ultra small position solution with superior performance

ZOE module family

• Aimed for UAV, vehicle tracking, telematics

• Ultra small size form factor 4.5 x 4.5mm x 1.0mm

• Fully integrated, complete solution, reducing design and test efforts

• Ideal for passive antennas, due to built-in filters and signal amplifier

Slide 47

ZOE

4.5

mm


High precision for autonomous vehicles

NEO-M8P module

• High precision solution (centimeter level)

• Increases productivity at a disruptive price point for the mass market

Slide 48

Autonomous Systems

Guidance Systems


High precision in UAVs

NEO-M8P module

• High precision solution (centimeter level)

• Improved flight trajectory

Slide 49

Communication link up to 0.5 kbps

Base station GNSS receiver

Moving rover

GNSS receiver

Remote MonitoringInfrastructure Inspection


High precision in surveying & mapping

NEO-M8P module

• Delivers Real-Time-Kinematics-level accuracy on a small, low power platform

Slide 50

Moving Rover GNSS Receiver

RTCM Corrections

SurveyingGIS Handhelds

RTK = Real Time Kinematics


Summary & Q&A’s

u-blox

• is the leading supplier of Satellite based Positioning products

• has a well filled innovation pipeline

• has a selection of modules and chips to fit each customers’ needs

• delivers into most connected industry use cases, with a diversified portfolio of technologies


Short Range Radio – Connecting the Things around us

Herbert Blaser, Senior Director of Short Range Products

Table of contents

• Key facts

• Offer for the connected industry and the connected car

• Market trends & future perception

• Demo

• Q&A


Product center short range radio at a glance

• The Short Range product center was set up in 2014 on the basis of three acquisitions

• 5 R&D locations

• The products provide connectivity solutions for

• High-performance systems in automotive and industrial markets

• Embedded systems mainly for industrial markets

• Car-to-car interaction


Connectivity for high-performance systems

• Complete portfolio for short range radio connectivity in cars and high-end industrial applications

• The main software runs on the host processor – mostly under Linux

• Many in-car applications are to connect phones, rear seat infotainment system, and cameras

Slide 55

EMMY-W114 x 20 mm

JODY-W14 x 20 mm

ELLA-W115 x 15 mm

LILY-W110 x 14 mm

New! High-end Wi-Fi 11ac / BTSimultaneous 2.4 / 5 GHz operation

Wi-Fi 11ac / BT2.4 / 5 GHz

Wi-Fi 11n/ BT2.4 / 5 GHz

Wi-Fi 11n2.4 GHz only


Connectivity for embedded systems

• Typically our modules add connectivity to a simple micro-controller by using u-blox proven connectivity software

• Alternatively, customers can integrate their whole applicationon our modules with development tools from u-blox and partners

• The main applications are in industrial markets

• Our modules are optimized for mission critical applications

• They are exceptionally reliable

• Support a high level of security requirements

• Allow for efficient large scale deployments

Slide 56

ODIN-W215 x 22 mm

High-end gateway Wi-Fi 11n / BT2.4 / 5 GHzNew functionalityATEX certification

NINA-B110 x 14 mm10 x 10 mm

Bluetooth Low Energy2.4 GHzUpdate with BT 5.0

NINA-W110 x 14 mm10 x 10 mm

New productWi-Fi 11n2.4 GHz

NINA-B310 x 15 mm10 x 11 mm

New productBluetooth 5.0 long range2.4 GHz


Connectivity between cars and infrastructure

• VERA-P1 is the leading module for car-to-car and car-to-infrastructure communications (V2X)

• Technology is at an inflection point:

• US mandate for use of 802.11p technology proposed; Korea to follow

• GM and VW are in the lead as first adopters of the technology

• Other interesting applications emerging: e.g. for truck platooning

on roadways, for off-road earth-moving vehicles in open mines and quarries

Slide 57

New product

802.11pDual/single antenna

VERA-P125 x 30 mm


Bluetooth 5 and Mesh - enabling new applications

Bluetooth 5

• Double throughput

• 4 times the range, now up to 1000 meters

Bluetooth mesh becomes available

• It will open up new opportunities for new applications, especially in combination

with the long range of Bluetooth 5

• Standard has been released; chip suppliers are starting to support the features

Strong market traction

• Bluetooth 5 has geared up interest for this standard

• Bluetooth standardization organization has expanded


u-blox has introduced Bluetooth 5

Slide 59

NINA-B1

Supports feature 1

Available

NINA-B3

Supports features 1, 2 and 3

AnnouncedAvailable for key customers

The Bluetooth 5 specification offers significant updates – feature highlights:

1. Higher data rates - doubling of maximum speed - from 1 Mbps to 2 Mbps

2. More data - eight times increase in broadcast messaging capacity

3. Longer range – four times the range of reach


Today’s topology of IoT networks

Slide 60

• Star-topology: each device is

connected to one gateway• Many gateways needed to cover

a large network

• The data always follows the

same path to the cloud

Bluetooth / Wi-Fi

Gateways

NodesSensors, actuators

Cloud applicationsStorage, data analysis

Wi-Fi / Ethernet / Cellular



Slide 61

• Star-topology: each device is

connected to one gateway• Many gateways needed to cover

a large network

• When a gateway stops working,

the system fails

Bluetooth / Wi-Fi

Gateways






Slide 62

• Gateway nodes are connected to

the cloud

• Nodes can be added and

removed dynamically

Bluetooth / Wi-Fi

Gateways






Slide 63

• Gateway nodes are connected to

the cloud

• Nodes can be added and

removed dynamically• The system is self-healing: if a

component fails, the data is

routed via a different path

Bluetooth / Wi-Fi

Gateways





Demo: Bluetooth mesh networks as an enabler for Smart Buildings:

Reading sensors

• Example application: individual heat cost

allocation is based on sensors that are connected via a Bluetooth mesh in a building

• Data finds its way to the cloud even whena node does not work anymore – similar to

how data finds its destination on the Internet

• Secure communication among the cooperating

nodes protects privacy and prevents intrusion

from nearby similar networks

• Inherent robustness by frequency-hopping

algorithms allows coexistence with other 2.4 GHz

technologies


Strong growth of Wi-Fi and Bluetooth module market

• u-blox market share in industrial and automotive module markets in 2016 is still <10%

• Comprehensive portfolio and global sales organization will drive growth more quickly than the market

Slide 65

Company estimate

Consumer market

1700 M. units in 2020


Key takeaways: Short Range Radio

• Short range radio connects things in the neighborhood, without the need for

a central supporting infrastructure

• Bluetooth low energy and Wi-Fi are the dominant short range radio

technologies driving high market growth

• New applications will take off thanks to new Bluetooth Mesh and the

Bluetooth 5 standard with its long range

• u-blox offers a complete range of short-range modules for Bluetooth, Wi-Fi

and V2X

• u-blox is well-positioned to increase its share of this fast growing market


Connected Industry – The Cellular Story

Andreas Thiel, Executive Vice President of Cellular Product Development and IC Design

Table of contents

• Key facts

• Market position

• Offer connected industry

• Market trends & future perception

• Demo

• Q&A


Cellular at a glance

• Only IoT supplier with chipset and module know-how

• Broad portfolio of cellular technologies

• Technology leader in NB-IoT and LTE Cat M1

• Focus on industrial and automotive grade products


Connected Industry market potential

By 2021

• Expecting 25%+ growth p.a.

• Reaching 100M+ connections

Key Applications

• Security & surveillance monitoring

• Remote monitoring & control

• Asset tracking

Slide 70

-

20

40

60

80

100

120

2016 2017 2018 2019 2020 2021

Industrial Automation(in M Cellular Connections)

Source: ABI Research


Cellular and LPWA technologies for the Connected Industry

Slide 71

High bandwidth

High cost

High power

Low latency

Low bandwidth

Low cost

Low power

Higher latency

Time

Broadband

Narrowband

2G

3G

4G LTE

Cat 3/4

Cat 6Cat 9

Cat 1

Cat M1

Cat NB1

RPMA

Cat 12Cat 16

5G

Evolution to high speed cellular

Evolution to cellular LPWA

Unlicensed spectrum technologies

5G / Cat 19

Cat M2 / NB2

Connected Industry Focus

Today


u-blox cellular product focus for the Connected Industry

Slide 72

High bandwidth

High cost

High power

Low latency

Low bandwidth

Low cost

Low power

Higher latency

Time

Broadband

Narrowband

2G

3G

4G LTE

Cat 3/4

Cat 6Cat 9

Cat 1

Cat M1

Cat NB1

RPMA

Cat 12Cat 16

5G

Evolution to high speed cellular

Evolution to cellular LPWA

Unlicensed spectrum technologies

5G / Cat 19

Cat M2 / NB2

Connected Industry Focus

TOBY-R2

LARA-R2

SARA-G3

SARA-R4

SARA-N2

SARA-S2

SARA-U2

LARA-R3

UBX-R3

Today


Innovation stream for industrial connectivity

Slide 73

LARA-R3

1st module based on u-blox LTE chipset for Cat 1

SARA-R410M-01B

Smallest quad band LTE Cat M1 module certified on AT&T

TOBY-L4

Cat 6 with most powerful application CPU in the industry

SARA-R410M-02B

Ultra-compact LTE Cat M1 / NB1 modules with global coverage

SARA-R404M

Smallest LTE Cat M1 module certified on Verizon

LARA-R2 / TOBY-R2

Voice support via VoLTE

on Cat 4

SARA-S2

Ultra-small RPMAmodule in u-bloxform factor

2016

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

2017

TOBY-R2

1st LTE Cat 1 VoLTE module certified on AT&T


Key Cellular Products

LARA-R3 with UBX-R3 chip inside for security and video surveillance

Slide 75

Designed for IoT Hybrid Positioning End-to-End Security

Feature prioritization for IoT

applications

Long term availability for long IoT

/ M2M lifecycles

Built for industrial and vehicle use

Robust communication in harsh

environments

Integrated u-blox 8 GNSS receiver on chip for outdoor positioning

u-blox CellLocate for indoor / outdoor positioning

Safe, fast and always available

u-blox end-to-end trusted domain security between module and chip

All possible attack surfaces secured

Ensures safety and operational reliability of IoT applications

u-blox is the only IoT module vendor producing its own chipsets and

the only IoT chipset maker with the sales and support reach of a tier 1 module maker


“Network Side”

Demo: LARA-R3 – Video Streaming

Slide 76

“Device Side”

Laptop / Tablet /

Smartphone

Uplink Data (Control)

Downlink Data (Video streaming)

UBX-R3Plattform

www.


LPWA Features:

Long battery life Extended range Low data rates Narrowband

operation

Connected Industry Benefits:

Ideal for remote

locationsDeep in-building use

Suitable for the

industrial IoT

Reduced system

complexity

SARA-R4 for remote monitoring / control and asset tracking

Slide 77

Maintain LPWA leadership position

• Global band configurability with single hardware in small form factor

• Flexible selection: M1, NB1, 2G only / preferred

High reliability for industrial use cases

• Update firmware via uFOTA with LWM2M

• Extended temperature range of -40 to +85 ºC


TOBY-L4 Series – High Speed LTE Cat 6 for mobile Gateways

Slide 78

High speed mobile gateway

• LTE Cat 6

• Most powerful CPU in the industry

• Configurable and open Linux application environment

Capture high end OEM market

• Dual basebands LTE Cat 6 / 9 / 19

• Dual SIM / dual active

• Seamless scalability to 5G

MIMO 2x2


Demo: TOBY-L4 wireless solution

The most powerful application CPU in the industry

Wi-Fi

Ethernet

LTE Cat 6

Connected by

iPhone app

Cloud Network

NGTP


Thank you!

Today’s Key Takeaways

Thomas Seiler, CEO

Key takeaways

Dependable

• Public company financially very solid with strong growth track record

• Full control over value chain and product road map

• Highly reliable logistics with short & long term delivery capacity

• Proven automotive quality for 15 years, and environmentally friendly

Competent

• The only company developing both chips and modules for wireless technology

• High R&D spending: 18% of revenues invested every year into technology development

• Very competent technical and commercial support from 25 locations world-wide

Agile

• Very dynamic company developing products and processes for maintaining a

leading position

Slide 81

Revenue history and guidance

-

50

100

150

200

250

300

350

400

450

2012 2013 2014 2015 2016 Guidance2017**

(million USD) *

u-blox is a listed at

the Swiss stock exchange.

Market capitalization: USD 1.3b


Thank you!

locate, communicate, accelerate

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