locate, communicate, accelerate
u-blox acquires Fastrax
30 October 2012
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 AG
Slide 2
Agenda
•Transaction highlights
•Introduction of Fastrax Oy
•Strategic rationale
•Outlook
•Q&A
Slide 3 © u-blox Holding AG
Overview
•European fabless manufacturer of Global Navigation Satellite System (GNSS)
modules located in Espoo, Finland
•Makes modules based on chips from CSR, MediaTek (MTK),
STMicroelectronics (ST) and Intel
•Owns full IP for a GNSS receiver (HW and SW) with 12 years experience
•Worldwide sales
Slide 4 © u-blox Holding AG
Strategic Rationale
Slide 5
Overview of
Fastrax
Strategic rationale
Shareholder value
creation
•Highly specialized in GNSS receivers with own GNSS receiver IP
•Wide module product offering based on 4 chips suppliers
•Strong growth mainly in EMEA
•Expand market share
•Complement u-blox’ existing product portfolio
•Leverage IP and R&D capacity to expand GNSS product offering
•Improve overall economies of scale
•Increase profits from current business operations
•Business growth through extension of u-blox’ product offering
© u-blox Holding AG
Acquisition Overview
•Acquisition of 100% of the shares of Fastrax Oy, Espoo from existing
shareholders
•Acquisition price EUR 13.0m
•Closing date 29 Oct 2012
•Certain pay-out rules apply to Fastrax management members
Slide 6 © u-blox Holding AG
Company Milestones
1999 Foundation and first low power consuming GPS module, iTrax02™
1999 First to bring RF signal through I/O connector
2000 First commercially available SDK on GPS chipset, iSuite02 SDK™
2002 First GPS Loop Antenna
2003 First measurement front end, iFix™
2004 First commercial pseudolite transmitter and receiver
2006 First embedded firmware stack on multiple GNSS chipsets, iSuite™3 SDK
2007 Management buy out
2008 First GPS chip antenna module
2010 Most sensitive Software GPS Indoor acquisition, -175dBm
2011 Smallest antenna module, UC430
2011 First true MultiGNSS receiver, IT600
2012 Lowest power consuming receiver module, IT530
Slide 7 © u-blox Holding AG
Fastrax’ Strengths
•Extensive experience and 12 year history with GNSS technologies
•Complete GNSS knowledge
•Strong GNSS capabilities and owner of full GNSS intellectual property
•Has been licensing their know-how successfully
•Stable low cost manufacturing system
•Strong relationship with chip suppliers
•Constantly growing sales volume
•Strong position in industrial applications
Slide 8 © u-blox Holding AG
Fastrax Key Value Proposition
•Wide and flexible module product offering matched to varying customer needs
•Can build on chipset suppliers’ reputation and awareness
•Able to differentiate offering more broadly via several chip suppliers
•Good technical support based on well-established GNSS capabilities
•Good market positioning value/price
•Software GPS as an additional USP and proof of capability
Slide 9 © u-blox Holding AG
Opportunity: Expanding our position in GPS/GNSS
© u-blox Holding AG
Slide 10
•Positioning markets served
with own chip and
firmware
•Positioning modules
contain u-blox chip
•Know-how of Fastrax
integrated into u-blox
technology and products
ApplicationsProducts
GPS/GNSS
Complete positioning & wireless offering
Strategy 2012 onwards
GPS/GNSS & Wireless Wireless
Marine,
Smartphones,
Recreational devices
Notebooks,
Vehicle and fleet tracking,
OEM telematics
Smart metering,
Payment terminals,
Mobile internet
ModulesChips
Based on
u-blox chip
Based on u-blox chip Based on u-blox chip
GNSS
Know-
how
Business model after acquisition
•Integration into u-blox
•Integrate the team - expanded capacities in R&D and sales
•Streamline/expand product offering –wider and more complete product portfolio
•Optimize production and logistics –higher efficiency
•Improve economy of scale
•Integrate products into u-blox road map –improve customer loyalty
Slide 11 © u-blox Holding AG
2012 2013 2014
Product Roadmap –GNSS LCC Modules Form-Factor
LEA
17 x 22 mm
NEO
12 x 16 mm
MAX
9.7 x 10.1 mm
u-blox 6 u-blox 7
ANTARIS 4
u-blox 5
u-blox 6
ANTARIS 4
u-blox 5
u-blox 6 u-blox 7
TIM
25 x 25 mm
IT430, IT530
9.6 x 9.6 mm
Fastrax
u-blox 7
ANTARIS 4
u-blox 5
Slide 12 © u-blox Holding AG
u-blox 7
Synergies between u-blox and Fastrax
Strengths of Fastrax
•GNSS correlator and algorithm knowhow
•Module making and manufacturing
•Sales channels via distributors
Strengths of u-blox
•Leading GNSS chip and firmware
•Industry dominant module form factors
•High volume module manufacturing
•Direct global sales channel
© u-blox Holding AG
Slide 13
Key synergies
•One unified sales channel
•Lower COGS in Fastrax offer
•Additional GNSS IP
Impact on u-blox business
•On-going income from modules sales has little impact on guidance due to
late closing of the acquisition in fiscal year 2012
•Outlook 2012 for the remainder of the fiscal year
•CHF 2m revenues
•Small positive impact on EBIT (CHF 0.1M)
•Outlook 2013 for acquired Fastrax business
•CHF 13 - 15m revenues
•Accretive to EBIT with 15 - 20% margin
Slide 14 © u-blox Holding AG
Thank you!
locate, communicate, accelerate
