HALF YEAR REPORT 2018 - U-bloxu-blox firmly on track for expanded market position in IoT 2018 half-year highlights Thalwil, Switzerland – August 24, 2018 – u-blox (SIX:UBXN), a

HALF YEAR REPORT 2018

Foundation 1997

Business Fabless semiconductor provider of embedded wireless and positioning communication solutions

Headquarter Thalwil, Switzerland

Offices Australia,Belgium,China,Finland,Germany,Greece,India,Ireland,Italy,Japan, Korea, Pakistan, Singapore, Sweden, Taiwan, United Kingdom and USA

Listed SIXSwissExchange(UBXN)

Employees 1’010(June30,2018,FTEbased);947(December31,2017,FTEbased)

Revenue H1/2018:CHF199.0million;H1/2017:CHF193.9million

EBIT H1/2018:CHF28.5million;H1/2017:CHF29.5million

Netprofit H1/2018:CHF25.1million;H1/2017:CHF18.0million

Markets Industrial,AutomotiveandConsumer

Mission u-bloxaimstobetheleadingproviderofembeddedwirelesscommunicationandpositioning solutionstotheglobalelectronicsindustry

3 Financial highlights

4 HalfyearreportasofJune30,2018

8 Condensedconsolidatedinterimfinancialstatementsu-bloxHoldingAG,Thalwil

19 Consolidatedstatementoffinancialposition

10 Consolidatedincomestatement

11 Consolidatedstatementofcomprehensiveincome

12 Consolidatedstatementofchangesinequity

13 Condensedconsolidatedstatementofcashflows

14 Notestothecondensedconsolidatedinterimfinancialstatements

20 InformationforInvestors

21 Worldwide presence

Page2 | Halfyearreport2018

Contents

This is u-blox

Financial highlights | Page 3

199.0

62.0

28.5

25.1

47.0

RevenueinmCHF

Equityratio in %

OperatingprofitinmCHF

NetprofitinmCHF

Grossprofit in %

RevenueH1/2017:193.9–Growthrate:2.6%

13.7OperatingcashflowinmCHF

OperatingcashflowH1/2017:22.1–Growthrate:-37.7%

Equityratio2017:60.7%

OperatingprofitH1/2017:29.5–Growthrate:-3.3%

NetprofitH1/2017:18.0–Growthrate:39.3%

Grossprofitin%H1/2017:45.1

Financial highlights

TotalequityandequityratioinmCHF

Americas EMEAAPAC EBITDA

Revenuebygeography / EBITDAinmCHF

u-bloxrevenuesplitpermarket Employeebreakdownspreadover17countries75%ofemployeesbasedoutsideSwitzerland

Total:1’010

Logistics, admin 15%(148)

Sales, marketing,support 17%(172)

Research &development68%(690)

(H1/2018,FTEbased)

(%oftotalassets)

Equity

2015 2016 2017 H1/16

Equityratio

248

64.2% 67.0%

319

60.7%

H1/17 H1/18

275

346

62.0%

285

254

65.4% 58.1%

150%

125%

100%

75%

50%

25%

0%

55.1%

10.5%

28.9%

5.5%

2015

81.8 87.4

338.3360.2

403.7

23%

29%

48%

25%

25%

50%

26%

23%

51%

81.878.7

400

350

300

250

200

150

100

50

0

2016 2017

40.3

26%

37%

37%

27%

42%

36%

33%

H1/16 H1/17 H1/18

Industrial Consumer Automotive Notassigned

400

350

300

250

200

150

100

50

0

u-bloxfirmlyontrackforexpandedmarketpositioninIoT

2018half-yearhighlights

Thalwil,Switzerland–August24,2018–u-blox(SIX:UBXN),a global provider of leading positioning and wireless communicationtechnologies,todayannouncedresultsforthefirsthalfyear.

• ReflectingasoftChinabusiness,u-bloxposteda2.6%increaseinrevenuesfromCHF193.9milliontoCHF199.0million.

• GrossprofitincreasedcomparedtoH1/2017by7.1%toCHF93.6millioninH1/2018andgrossmarginincreasedcomparedtoH1/2017to47.0%inH1/2018duetofavorablechangesintheproductmix.

• EBITfellby3.3%toCHF28.5million,representingamarginof14.3%asguidedforthisfiscalyear.

• OperatingactivitiesgeneratedacashflowofCHF13.7million,6.9%ofrevenue.

• Netprofitsawa39.3%increasetoCHF25.1million, anetprofitmarginof12.6%(H1/2017:9.3%).

• A surge of new and prospective products consolidated u-blox’sleadingpositionintheindustry.

• Full-yearrevenue,EBITDAandEBITguidancehavebeenslightlyreduced.

Remark:AllnumbersinthisreportareIFRSbased.Adjusted numbers are provided in the last table to this report.

Formoreinformation,pleaserefertotheonlineversionsat:• Halfyearreport(PDF): https://www.u-blox.com/en/investor-relations/reports• Presentation: https://www.u-blox.com/en/investor-relations/presentations

Inthefirsthalfof2018,wehaveseenastronggrowthin our customer numbers and in the market for car connectivitydevices(TelematicControlUnits).Atthesametime,shrinkingbusinesswithkeyChinesecustomersaswellasthedelayingeffectonourcustomersof their long lead times for receiving other components resultedinoverallslowrevenuegrowthof2.6%comparedtothesameperiodin2017,withconsolidatedrevenuesstandingatCHF199.0millionduringthefirsthalfof2018.

u-bloxregisteredanotherincreaseingrossprofitfromCHF87.4milliontoCHF93.6million,withgrossprofitmarginremaininghighat47.0%.Operatingprofit(EBIT)wasdownfromCHF29.5toCHF28.5millionasthecompanycontinuedtoexpanditsR&Dcapacity,representinganEBITmarginof14.3%asguided,whiletheEBITDAmarginstoodat20.1%.Therewasa39.3%increaseinnetprofit,whichincreasedfromCHF18.0millionin2017toCHF25.1millionmainlyduetoforeignexchangeimpacts.NetcashflowfromoperationswasCHF13.7million,whichrepresented6.9%ofrevenue.Thebalancesheetremainedsolid,withahealthyequityratioof62.0%.

Thecompanyhasfocusedrelentlesslyonincreasingits

continued growth potential with the announcement of twonewcoreproductplatformsandseveralnewmodules.Executingitstime-testedstrategy,u-bloxisinastrongpositiontobenefitfromcontinuallygrowingmarkets,andafullpipelineofnewproductdevelopmentsremainsafirmindicationofpotentialfuturegrowth.

RevenuedevelopmentandbreakdownThefirsthalfof2018showedcontinuedgrowthinu-blox’spositioning&wirelessproductssegment.

Consolidatedrevenuesfromchipsandmodulesforpositioningandwirelessconnectivityroseby2.6%fromCHF193.8millioninthefirsthalfof2017toCHF198.9millionduringthefirsthalfof2018.Revenuegrowthwasslightlynegativelyimpactedby-0.5%foreignexchangedecay.Wirelessservices(includingintra-Groupsales)generatedCHF16.1millioninrevenuescomparedwith CHF12.3millionforthesameperiodlastyear.

Duringthefirsthalfof2018,u-bloxreportedanoverallincreaseofrevenuesof2.6%,withAsia-Pacificaccountingfor33.1%,EMEAfor35.1%,andtheAmericasfor30.7%,EMEAgrewrapidlyby35.4%toCHF69.8million,revenuesinAmericaswerestablewithCHF61.1millionandAsia-Pacificreporteda19.2%declineoverfirsthalfyear2017toCHF65.9million.Whencomparedtosecondhalfyear2017,thegrowthratesamountedto31.3%forEMEA,-17.6%forAmericasand-16.2%forAsia-Pacific.Thesesplitsarebasedonreportingarea.

InfluenceofChineseeconomyandnetworkreadinessInAsia,therehasbeenstrongprogressinwearables,in-car navigation, and after-market car electronics, and aslow-downintimingandshareddevices.However,theoverarchingthemeinourAsianmarketswassetbygenerallyweakerbusinessofmanyofourcustomersinChina,alsoaffectedbytradewarimplications,whichledtolowerrevenuesthananticipated.

IntheAmericas,businessactivitiesinmetering,medicaldevices,wearables,andpoint-of-saleswereparticularlystrong,whilefleetmanagementshowedaslowdowninthefirsthalfof2018duetodelaysintheadoptionofthenewCatM1andNB-IoTnetworks. Our business in the EMEA region continues to impress withstronggrowth,drivenbyaconstantflowofnewprojects in various markets going into mass production as wellasstrongprogressinsolarenergy,telematiccontrolunits(TCUs),automation,fleetmanagement,androadpricing.Europeinparticularbenefitedfromanotableupturn in demand for connected devices destined for the IoT,aswellasgooddemandfromtheautomotivesector,stimulatedbytheneedforin-vehicleconnectivity. Thecompanyhastakenthenecessaryactionstorespondstrategicallytothecurrentenvironment.Aboveall,itchangedthemanagementstructureinChina,andre-focused the sales team to cope with emerging application sectors.Inallregions,u-bloxpursuedarecordnumberofnewbusinessopportunities,drivenbygeneralinterestintheInternetofThings(IoT).

HalfyearreportasofJune30,2018

Page 4 | Letter to the shareholders

Increasedgrossprofit Grossprofitsawa7.1%improvementduringthefirstsixmonthsoftheyearof2018,takingitfromCHF87.4millioninthesameperiodlastyeartoCHF93.6million.Grossprofitmarginstoodat47.0%,anincreaseoverfirsthalfyear2017.

Researchandproductdevelopment Inthefirsthalfof2018,R&DexpensesstoodatCHF36.7million,or18.5%ofrevenue.ThesefigurescomparewithCHF32.0millionand16.5%,respectively,duringthesameperiodin2017.

Distributionandmarketingactivities Wide-rangingexpansioninouroperationsdrovedistribu-tionandmarketingexpensesupfromCHF17.2milliontoCHF18.8million.Thisfigureisequivalentto9.5%ofrevenue,comparedwith8.8%duringthesameperiodlastyear.

Operatingprofit u-bloxpostedEBITofCHF28.5million,or14.3%duringthefirsthalfof2018,whichcompareswiththeCHF29.5millionor15.2%inthesameperiodin2017.TheEBITDAmarginwas20.1%.

Financeincomeandcosts FinanceincometotaledCHF5.4millionduemainlytopositiveunrealizedforeigncurrencygains,whilefinancecostsamountedtoCHF1.0millionduetointerestonthebondsissuedin2015and2017.Thefinancialresultalsocontainstheresultfromtheequity-accountedinvesteeSapcordaGmbH.

Stablestrongfinancialposition u-bloxmaintainedastrongbalancesheetduringthefirsthalfof2018,theequityratioamountedto62.0%.Cash,

cash equivalents, and marketable securities totaled CHF150.2millionasofJune30,2018,comparedwithCHF172.4milliononDecember31,2017.Cashwasusedfor working capital needs because of the on-going tight supplychainsituation.u-bloxcarriestreasurysharesintheamountofCHF24.4million;sharesthatwillservetheemployeestockoptionsprogram.

StrategichighlightsandinitiativesDesignedtodeliversustainable,profitablegrowthacrossmarketcycles,u-blox’sstrategyisfoundedonfourdiscretepillars:ongoingstrengtheningofourleadingmarketposition;continuingtechnologicaldevelopmentandinnovation;outstandingoperationalperformance,andstrategicpartnerships.Despiteachallengingenvironmentinsomeofourcoremarketsduringthefirsthalfof2018,u-bloxmadeadvancesinallthreeofitskeystrategicareas.

Forinstance,strengtheningitsmarketandtechnologyleadership,u-bloxhaspartneredwiththeKudelskiGroup,theleaderindigitalsecurity,tobringpremiumsecuritytoIoTdevices.AstheIoTtakesholdacrossu-blox’skeymarkets,theimportanceofdependableconnectivityandlocationawarenessisatanall-timehigh.ThecollaborationwithKudelskiistakingadvantageofthisopportunityandwillresultinhigh-qualityproductsandservicesthatmeetbothcurrentandfutureneeds. Newproductrundownu-blox’sstrategyremainstoprovideacoherentrangeofproductsandservicesthataresecure,easytouse,andofhighquality.Itisalsoanongoingaimtocontinuallyincrease the number of products that are built on its own silicon.

(inCHF000s)

Jan.-June2018

(unaudited) % revenue

Jan.-June2017

(unaudited) % revenue

Jan.-Dec.2017

(audited) % revenue

Revenue 198’983 100.0% 193’908 100.0% 403’712 100.0%

Costofsales -105’395 -53.0% -106’518 -54.9% -219’695 -54.4%

Grossprofit 93’588 47.0% 87’390 45.1% 184’017 45.6%

Distributionandmarketingexpenses -18’829 -9.5% -17’157 -8.8% -36’173 -9.0%

Researchanddevelopmentexpenses -36’717 -18.5% -31’957 -16.5% -65’554 -16.2%

Generalandadministrativeexpenses -10’562 -5.3% -9’593 -4.9% -19’125 -4.7%

Other income 1’063 0.5% 845 0.4% 1’921 0.5%

Operatingprofit(EBIT) 28’543 14.3% 29’528 15.2% 65’086 16.1%

Financial income 5’364 2.7% 309 0.2% 5’668 1.4%

Finance costs -1’042 -0.5% -6’979 -3.6% -5’652 -1.4%

Shareofprofitofequity-accountedinvestees,netoftaxes -1’443 -0.7% 0 0.0% -400 -0.1%

Profitbeforeincometax(EBT) 31’422 15.8% 22’858 11.8% 64’702 16.0%

Incometaxexpense -6’339 -3.2% -4’846 -2.5% -13’442 -3.3%

Netprofit,attributabletoownersoftheparent 25’083 12.6% 18’012 9.3% 51’260 12.7%

Operatingprofit(EBIT) 28’543 14.3% 29’528 15.2% 65’086 16.1%

Depreciationandamortization 11’510 5.8% 10’730 5.5% 22’290 5.5%

EBITDA1) 40’053 20.1% 40’258 20.8% 87’376 21.6%

1)ManagementcalculatesEBITDA(earningsbeforeinterest,taxes,depreciationandamortization)byaddingback depreciationandamortizationtooperatingprofit(EBIT),ineachcasedeterminedinaccordancewithIFRS.

Table1:consolidatedincomestatement

Letter to the shareholders | Page5

Inoursolutionportfolio,wesawgoodgrowthintheareaofcellularandshortrangeproducts:LTEmodulesperformedverystronglyacrossthefirstsixmonthsof2018,andwehaveseencontinuedgrowthinsalesforWi-Fimodules.Bycontrast,salesofpositioningchipsetshaveslowed.

Inkeepingwithitsstrategy,u-bloxlaunchedavarietyofsignificantnewproductsin2018.Highlightsincludetheu-bloxF9technologyplatform,whichdelivershighprecision positioning solutions for mass market industrial andautomotiveapplications;theUBX-P3chipforvehicletoeverything(V2X)wirelesscommunication,andanewcellulartechnologycalledLTECatM1,specificallydesigned for the needs of applications targeting the InternetofThings(IoT)ormachine-to-machine(M2M)communications.

Revenuebyreportingsegmentsu-bloxoperatesintwosegments:

• Positioningandwirelessproducts u-bloxdevelopsandsellschipsandmodulesforpositioningandwirelessconnectivitythatareusedinautomotive,industrial,andconsumerapplications.RevenuewasCHF198.9millionforthefirsthalfof2018comparedwithCHF193.8millionduringthesameperiodlastyear.

• Wirelessservices u-bloxalsoofferswirelesscommunicationtechnologyservicesintheformofreferencedesignsandsoftware.Inthefirstsemester,revenueforwirelessserviceswasCHF16.1millioncomparedwithCHF12.3millioninthefirsthalfof2017(includingintra-grouprevenue).

(inCHF000s)Jan.-June2018

(unaudited)Jan.-June2017

(unaudited)Jan.-Dec.2017

(audited)

Netcashprovidedbyoperatingactivities 13’736 22‘061 60‘504

Netcashusedininvestingactivities -35’158 -27’914 -63’511

Netcashprovidedbyfinancingactivities -3’654 26’021 26’012

Netincrease/(decrease)incashandcashequivalents -25’076 20‘168 23‘005

Cashandcashequivalentsatbeginningofperiod 169’624 149’545 149’545

Effectofexchangeratefluctuationsoncashandcashequivalents 3’291 -5’928 -2’926

Cashandcashequivalentsatendofperiod 147‘839 163‘785 169‘624

Table3:consolidatedstatementoffinancialposition(condensed)

(inCHF000s)AtJune30,2018

(unaudited)AtDecember31,2017

(audited)

ASSETSCurrentassets

Cashandcashequivalents 147’839 169’624

Marketable securities 2’404 2’813

Other assets 141’859 110’877

Totalcurrentassets 292’102 283’314

Non-currentassets

Property,plantandequipment 17’013 17’494

Intangibleassets 230’942 211’614

Financial assets 11’010 8’351

Deferredtaxassets 7’116 3’739

Totalnon-currentassets 266’081 241’198

Total assets 558’183 524’512

LIABILITIESANDEQUITY

Currentliabilities 63’104 58’946

Non-currentliabilities 149’104 147’054

Total liabilities 212’208 206’000

Shareholders’equity

Share capital 6’375 6’261

Share premium 64’624 66’579

Retained earnings 274’976 245’672

Totalequity,attributabletoownersoftheparent 345’975 318’512

Totalliabilitiesandequity 558’183 524’512

Page 6 | Letter to the shareholders

Table2:consolidatedstatementofcashflows(condensed)

Letter to the shareholders | Page7

André Müller Thomas Seiler ChairmanoftheBoardofDirectors CEO

BoardandmanagementDuetohisage,Mr.FritzFahrni,ChairmanoftheBoard,chose not to stand for re-election as a Board Member at the AnnualGeneralAssemblyonApril24,2018.Inhisstead,Mr.AndréMüller,memberoftheAuditCommittee,waselectedasnewChairmanoftheBoard.AtthesameAnnualGeneralAssemblyMr.UlrichLooserwaselectedasnonexecutivedirectortojointheBoardofu-bloxHoldingAG.

Table4:ConsolidatedIncomeStatement(adjusted)

Adjustednumbersareprovidedbelowforallowingcomparisonwithindustrypeers.

1) ManagementcalculatesEBITDA(earningsbeforeinterest,taxes,depreciationandamortization)byaddingback depreciationandamortizationtooperatingprofit(EBIT),ineachcasedeterminedinaccordancewithIFRS.

Outlooku-bloxexpectstheremainingmonthsof2018toremainchallengingduetotheslowerdeploymentofCatM1andNB-IoTnetworksandthesituationontheChinesemarket.u-bloxisadoptingacautiousbutpositiveoutlookforthisperiodandremainsconfidentthatthefundamentalsofourcompanyareinplaceforhealthyfuturegrowthand bottom line results, and that we will meet the new guidance.

For2018,u-bloxanticipatesupdatedEBITDAofbetweenCHF90millionandCHF100millionandEBITofbetweenCHF60millionandCHF65million,basedonrevenuepredictionsofbetweenCHF435millionandCHF445million,withunchangedassumptionsforforeignexchangerates.Inthemediumtolong-term,u-bloxexpectscontinuedgrowth.

Jan.-June2018

(unaudited) AdjustmentsJan.-June2018


(unaudited)

(inCHF000s) (IFRS) % revenue

Sharebasedpay-

ments

Pension impacts

based onIAS-19

Non- recurringexpenses

Amorti-zation

intangible assets

acquired (adjusted) % revenue (adjusted) % revenue

Revenue 198’983 100.0% 198’983 100.0% 193‘908 100.0%

Costofsales -105’395 -53.0% 382 -105‘013 -52.8% -106‘131 -54.7%

GrossProfit 93’588 47.0% 382 0 0 0 93‘970 47.2% 87‘777 45.3%

Distributionandmarketingexpenses -18’829 -9.5% 875 283 -17’671 -8.9% -16’376 -8.4%

Research and development expenses -36’717 -18.5% 2’647 998 -33’072 -16.6% -28’064 -14.5%

Generalandadministrativeexpenses -10’562 -5.3% 417 758 -9’387 -4.7% -7’886 -4.1%

Other income 1’063 0.5% 1’063 0.5% 845 0.4%

OperatingProfit(EBIT) 28’543 14.3% 4’321 758 0 1’281 34’903 17.5% 36’296 18.7%

Financial income 5’364 2.7% 5’364 2.7% 309 0.2%

Financial costs -1’042 -0.5% -1’042 -0.5% -6’979 -3.6%

Shareofprofitofequity-accounted investees, netoftaxes -1’443 -0.7% -1’443 -0.7% 0 0%

Profitbeforeincometax(EBT) 31’422 15.8% 4’321 758 0 1’281 37’782 19.0% 29’626 15.3%

Incometaxexpense -6’339 -3.2% -872 -153 -258 -7’622 -3.8% -5’925 -3.1%

Netprofit,attributabletoownersoftheparent 25’083 12.6% 3’449 605 0 1’023 30’160 15.2% 23’701 12.2%

DilutedearningspershareinCHF 3.59 4.32 3.44

EarningspershareinCHF 3.58 4.31 3.39

OperatingProfit(EBIT) 28’543 14.3% 4’321 758 0 1’281 34’903 17.5% 36’296 18.7%

Depreciationand amortization 11’510 5.8% -1’281 10’229 5.1% 9’512 4.9%

EBITDA1) 40’053 20.1% 4’321 758 0 0 45’132 22.7% 45’808 23.6%

u-bloxHoldingAG,ThalwilCondensedconsolidatedinterimfinancialstatements June30,2018

Page 8 | Financialsummary

Financialsummary | Page 9

(inCHF000s)June30,2018(unaudited) December31,2017

Assets

Currentassets



Trade accounts receivables 58’550 50’401

Other receivables 10’947 9’616

Currenttaxassets 11’803 3’328

Inventories 56’749 44'204

Prepaidexpensesandaccruedincome 3'795 3'176

Derivativefinancialassets 15 152

Totalcurrentassets 292’102 283’314

Non-currentassets

Property,plantandequipment 17’013 17’494

Goodwill 56’395 57'628

Intangibleassets 174’547 153'986


Equity-accountedinvestees 9’874 7’210

Deferredtaxassets 7’116 3’739

Totalnon-currentassets 266’081 241’198

Total assets 558’183 524’512

Liabilitiesandequity

Currentliabilities

Tradeaccountspayables 24’670 20’296

Otherpayables 15’652 6'625

Currenttaxliabilities 523 5’767

Provisions 152 150

Accruedexpenses 22’107 26’108

Totalcurrentliabilities 63’104 58’946

Non-currentliabilities

Financial liabilities 119’037 118’913

Otherpayables 70 534

Provisions 6’619 8'248

Pensionliability 15’672 15'851

Deferredtaxliabilites 7’510 3'149

Non-currenttaxliabilities 196 359

Totalnon-currentliabilities 149’104 147’054

Total liabilities 212’208 206’000

Shareholders’equity

Share capital 6’375 6’261

Share premium 64’624 66’579

Treasuryshares -24’422 -24’422

Cumulativetranslationdifferences -12’128 -10'204

Retained earnings 311’526 280'298

Totalequity,attributabletoownersoftheparent 345’975 318’512

Totalliabilitiesandequity 558’183 524’512

Thesecondensedinterimfinancialstatementsshouldbereadinconjunctionwiththeaccompanyingnotes.

Consolidatedstatementoffinancialposition


Page10 | Financialsummary

Consolidatedincomestatement

(inCHF000s)Jan.–June30,2018

(unaudited)Jan.–June30,2017

(unaudited)

Revenue 198’983 193’908

Costofsales -105’395 -106’518

Grossprofit 93’588 87’390

Distributionandmarketingexpenses -18’829 -17’157

Researchanddevelopmentexpenses -36’717 -31’957

Generalandadministrativeexpenses -10’562 -9’593

Other income 1’063 845

Operatingprofit 28’543 29’528

Finance income 5’364 309

Finance costs -1’042 -6’979

Shareoflossofequity-accountedinvestees,netoftaxes -1’443 0

Profitbeforeincometax(EBT) 31’422 22’858

Incometaxexpense -6’339 -4’846

Netprofit 25’083 18’012

Basicearningspershare(inCHF) 3.59 2.61

Dilutedearningspershare(inCHF) 3.58 2.57


Financialsummary | Page11

(inCHF000s)Jan.–June30,2018

(unaudited)Jan.–June30,2017

(unaudited)

Netprofitfortheperiod 25’083 18’012

OthercomprehensiveincomeRemeasurementsonpensionliability 927 1’566

Incometaxonremeasurementsonpensionliability -181 -305

Itemsthatwillnotbereclassifiedtoincomestatement 746 1’261

Currencytranslationdifferences -1’924 -112

Itemsthatareormaybereclassifiedsubsequentlytoincomestatement -1’924 -112

Othercomprehensiveincomefortheperiod,netoftaxes -1’178 1’149

Totalcomprehensiveincome,attributabletoownersoftheparent 23’905 19’161

Consolidatedstatementofcomprehensiveincome



Consolidatedstatementofchangesinequity

(inCHF000s)Sharecapital

Share premium

Treasuryshares

Cumula-tive

transla-tion

differ-ences

Retainedearnings

Totalequity,

attribut-able to

ownersofthe

parent

BalanceatJanuary1,2017 6’152 74’387 0 -15’018 219’206 284’727

Netprofitfortheperiod 0 0 0 0 18’012 18’012

Othercomprehensiveincomefortheperiod,netoftaxes 0 0 0 -112 -1’261 -1’149

Total comprehensive income 0 0 0 -112 19’273 19’161

Share-basedpayments1) 0 0 0 0 4’431 4’431

Purchaseoftreasuryshares2) 0 0 -24’422 0 0 -24'422

Dividendoutofsharepremium 0 -14'526 0 0 0 -14'526

Optionsexercisedduringtheyear,netoftransactioncosts 86 5’319 0 0 0 5’405

Total transactions with owners of the parent 86 -9’207 -24’422 0 4’431 -29’112

BalanceatJune30,2017(unaudited) 6’238 65’180 -24’422 -15’130 242’910 274’776

BalanceatJanuary1,2018 6’261 66’579 -24’422 -10’204 280’298 318’512

Netprofitfortheperiod 0 0 0 0 25’083 25’083

Othercomprehensiveincomefortheperiod,netoftaxes 0 0 0 -1’924 746 -1’178

Total comprehensive income 0 0 0 -1’924 25’829 23’905

Share-basedpayments1) 0 0 0 0 5’399 5’399

Dividendoutofsharepremium 0 -15’441 0 0 0 -15’441

Optionsexercisedduringtheyear,netoftransactioncosts 114 13’486 0 0 0 13’600

Total transactions with owners of the parent 114 -1’955 0 0 5’399 3’558

BalanceatJune30,2018(unaudited) 6’375 64’624 -24'422 -12’128 311’526 345’975

1) RepresentstheamountofstockoptionexpenseofCHF4.3million(2017:CHF4.1million)includingrespectivetaxeffectsofCHF1.1million(2017:CHF0.3million)recognizedfor2018and2017respectively.

2) In2017u-bloxpurchased125’000treasurysharesatanaveragepurchasepriceofCHF195.38pershare.



Consolidatedstatementofcashflows



(unaudited)

Netcashgeneratedfromoperatingactivities 13’736 22’061

Netcashusedininvestingactivities -35’158 -27’914

Netcashgeneratedfrom/(usedin)financingactivities -3’654 26’021

Netincrease/(decrease)incashandcashequivalents -25’076 20’168

Cashandcashequivalentsatbeginningofperiod 169’624 149’545

Effectofexchangeratefluctuationsoncashandcashequivalents 3’291 -5’928

Cashandcashequivalentsatendofperiod 147’839 163’785

1) Netcashusedininvestingactivitiesconsistsofinvestmentsintoproperty,plantandequipmentofCHF4.3million(June30,2017CHF4.3million)andinvestmentsintointangibleassetsofCHF27.6million(June30,2017CHF26.7million)inthefirsthalfyear2018.

2) NetcashprovidedbyfinancingactivitiescontainstheexerciseofemployeestockoptionsofCHF13.6million(June30, 2017CHF5.4million),thedividendpaymentoutofreservesfromcapitalcontributionsofCHF15.4million(June30,2017CHF14.5million).In2017thefinancingactivitiesalsocontainedproceedsfromissuanceofabondofCHF59.3millionnetcashinflowandthepurchaseoftreasurysharesofCHF24.4millionfortheemployeeshareoptionprogram.

1)

2)

1)

2)

Notestothecondensedconsolidatedinterimfinancialstatements


1 Basisofpreparationofthecondensedconsolidated

interimfinancialstatements

Thecondensedconsolidatedinterimfinancialstatementsofu-bloxHoldingAG(‘u-blox’orthe‘Group’)werepreparedinaccordancewithIAS34“InterimFinancialReporting”.Thesecondensedconsolidatedinterimfinancialstatementsdonotincludeallthenotescontainedintheconsolidatedannualfinancialstatements,andforthatreasonshouldbereadinconjunctionwiththeconsolidatedannualfinancialstatementsfortheyearendedDecember31,2017.

ThecondensedconsolidatedinterimfinancialstatementshavebeenpreparedinSwissfrancs(CHF),roundedtothenearestthousand.

Thepreparationofthecondensedconsolidatedinterimfinancialstatementsrequiresmanagementjudgments,estimatesandassumptionsthataffecttheapplicationofpoliciesandreportedamountsofassetsandliabilities,incomeandexpensesaswellasdisclosureofcontingentassetsandliabilities.

Althoughthesejudgments,estimatesandassumptionsarebasedonmanagement’sbestknowledgeofcurrenteventsandactions,actualresultsmayultimatelydifferfromthoseestimates.

InthesecondensedconsolidatedinterimfinancialstatementssignificantestimatesandassumptionsmadebymanagementarenotdifferentfromthosedisclosedintheconsolidatedfinancialstatementsfortheyearendedDecember31,2017.

Incometaxesarerecognizedbasedonbestestimateoftheweightedaverageannualtaxratefor2018.

TheGroupoperatesinmarketswherenosignificantseasonalorcyclicalvariationsinrevenueareexperiencedduringthefinancialyear.

Forthecondensedconsolidatedinterimfinancialstatements,aEUR/CHFexchangerateof1.159andaUSD/CHFexchangerateof0.990wasappliedattheend-of-period(December31,2017EUR/CHF1.168,USD/CHF0.974).FortheperiodanaverageexchangerateofEUR/CHF1.170andUSD/CHF0.966wasapplied(previousperiod:EUR/CHF1.112,USD/CHF0.984).

ChangesinaccountingpoliciesExceptasdescribedbelow,theaccountingpoliciesappliedintheseinterimfinancialstatementsarethesameasthosedescribedintheGroup’sconsolidatedfinancialstatementsfortheyearendedDecember31,2017.ThechangesinaccountingpoliciesarealsoexpectedtobereflectedintheGroup’sconsolidatedfinancialstatementsfortheyearendedDecember31,2018.

TheGrouphasinitiallyadoptedIFRS15RevenuefromContractswithCustomersandIFRS9FinancialInstrumentsfromJanuary01,2018.AnumberofothernewstandardsareeffectivefromJanuary01,2018buttheydonothaveamaterialeffectontheGroup’sfinancialstatements.

IFRS15RevenuefromContractswithCustomers

IFRS15establishesacomprehensiveframeworkfordeterminingwhether,howmuchandwhenrevenueisrecognised. ItreplacedIAS18Revenue,IAS11ConstructionContractsandrelatedinterpretations.

TheGrouphasadoptedIFRS15usingthecumulativeeffectmethod,whichrequirestheGrouptorecognizeanyeffectresultingfrominitiallyapplyingthisstandardatthedateofinitialapplication,i.e.January01,2018.Theinformationpresentedfor2017hasnotbeenrestated–i.e.itispresentedaspreviouslyreportedunderIAS18,IAS11andrelatedinterpretations.

Sales of goodsRevenueismeasuredbasedontheconsiderationspecifiedinacontractwithacustomerandexcludesamountscollectedonbehalfofthirdparties.UnderIFRS15,theGrouprecognizesrevenuewhenittransferscontroloveragoodtoacustomer.Contractsincludeastandardwarrantyclausetoguaranteethattheproductscomplywithagreedspecifications.


TheGroupsellsstandardizedpositioningandwirelessproductsgenerallyviapurchaseorderstocustomers(i.e.endcustomersanddistributors).Ingeneral,customersobtaincontrolofthegoodswhentheyaredispatchedfromtheGroup’swarehouse.Invoicesaregeneratedandrevenueisrecognizedatthatpointintime.Invoicesareusuallypayablewithin30days.Contractswithcustomersmaycontainvariableconsiderationsuchasvolumerebates.VariableconsiderationaregenerallynotconstrainedastheGrouphasexperiencewiththesetypeofcontractsanditisnotprobablethatasignificantreversalintheamountofrevenuerecognizedwilloccuroncetheuncertaintyassociatedwiththevariableconsiderationisresolved.

Theshiftfromtherisk-andrewardapproachunderIAS18tothetransfer-of-controlapproachunderIFRS15didnotresultinadifferenceinthetimingofrevenuerecognition.TheinitialapplicationofIFRS15didnotresultinamaterialimpact,whichiswhytheGrouphasnotadjustedretainedearningsasofJanuary01,2018.

IFRS9FinancialinstrumentsIFRS9FinancialInstrumentssetsoutrequirementsforrecognizingandmeasuringfinancialassets,financialliabilitiesandsomecontractstobuyorsellnon-financialitems.ThisstandardreplacesIAS39FinancialInstruments:RecognitionandMeasurement.TheGroupwilltakeadvantageoftheexemptionallowingitnottorestatecomparativeinformationforpriorperiodswithrespecttoclassificationandmeasurement(includingimpairment)changes.DifferencesinthecarryingamountsoffinancialassetsandfinancialliabilitiesresultingfromtheadoptionofIFRS9willgenerallyberecognizedinretainedearningsandreservesasatJanuary01,2018.

Classification–FinancialassetsIFRS9containsanewclassificationandmeasurementapproachforfinancialassetsthatreflectsthebusinessmodelinwhichassetsaremanagedandtheircashflowcharacteristics.IFRS9containsthreeprincipalclassificationcategoriesforfinancialassets:measuredatamortizedcost,FVOCIandFVTPL.ThestandardeliminatestheexistingIAS39categoriesofheldtomaturity,loansandreceivablesandavailableforsale.UnderIFRS9,derivativesembeddedincontractswherethehostisafinancialassetinthescopeofthestandardareneverbifurcated.Instead,thehybridfinancialinstrumentasawholeisassessedforclassification.

TheimplementationoftheIFRS9classificationrequirementsdidnothaveamaterialimpact.

Impairment–FinancialassetsandcontractassetsIFRS9replacesthe‘incurredloss’modelinIAS39withaforward-lookingexpectedcreditloss(ECL)model.ThiswillrequireconsiderablejudgementabouthowchangesineconomicfactorsaffectECLs,whichwillbedeterminedonaprobability-weightedbasis.

ThenewimpairmentmodelwillapplytofinancialassetsmeasuredatamortizedcostorFVOCI,exceptforinvestmentsinequityinstruments.UnderIFRS9,lossallowanceswillbemeasuredoneitherofthefollowingbases: – 12-monthECLs:theseareECLsthatresultfrompossibledefaulteventswithinthe12monthsafterthe

reportingdate;and – lifetimeECLs:theseareECLsthatresultfromallpossibledefaulteventsovertheexpectedlifeofafinancial

instrument.

LifetimeECLmeasurementappliesifthecreditriskofafinancialassetatthereportingdatehasincreasedsignificantlysinceinitialrecognitionand12-monthECLmeasurementappliesifithasnot.Anentitymaydeterminethatafinancialasset’screditriskhasnotincreasedsignificantlyiftheassethaslowcreditriskatthereportingdate.However,lifetimeECLmeasurementalwaysappliesfortradereceivableswithoutasignificantfinancingcomponent;theGrouphaschosentoapplythispolicyalsofortradereceivableswithasignificantfinancingcomponent.

ThegroupcalculatedECLsbasedonactualcreditlossexperienceoverthepastthreeyearsorbasedonexternalcounterpartycreditratings.TheGroupbelievesthatimpairmentlossesarelikelystaystableforassetsinthescopeoftheIFRS9impairmentmodel.Basedonthismethodology,theapplicationoftheimpairmentrequirementsofIFRS9asperJanuary01,2018didresultinnomaterialadditionalimpairmentlosses,whichiswhytheGrouphasnotadjustedretainedearningsasofJanuary01,2018.


2 Segment information

InaccordancewiththemanagementstructureandthereportingmadetotheBoardofDirectors(theGroup’sChiefOperatingDecisionMaker,whichistheBoardofDirectorsofu-bloxHoldingAG),thereportablesegmentsarethetwooperatingCorporateGroups’PositioningandWirelessproducts’and’Wirelessservices’.SegmentaccountingisprepareduptothelevelofOperatingProfit(EBIT)becausethisisthekeyfigureusedformanagementpurposes.AlloperatingassetsandliabilitiesthataredirectlyattributableorcanbeallocatedonareasonablebasisarereportedintherespectiveCorporateGroups.Nodistinctionismadebetweentheaccountingpoliciesofsegmentreportingandthoseoftheconsolidatedfinancialstatements.Nooperatingsegmentswereaggregated.

Thefollowingreportablesegmentswereidentified.

Positioning and Wireless productsTheGroupdevelopsanddistributesGPS/GNSSpositioningreceiversandwirelesscommunicationmoduleswhicharemainlyusedinautomotive,industrialandconsumerapplications.Productsaremarketedandsoldbytheu-bloxworldwidesalesorganization.Theproductsaremanufacturedbythirdparties.TheGroupcoordinatesthewholesupplychainandmanagestheworld-wideproductionanddistributionoftheproducts.

Wireless servicesSincetheacquisitionsofu-bloxItaliaS.p.A.andu-bloxSanDiego,Inc.,u-bloxoffersalsoservicesinthewirelesscommunicationtechnologywhichformsaseparatebusinesssegmentastheseproductsconsistofdeliveryofreferencedesignsandsoftware.

PositioningandWirelessproducts

Wireless services

Totalsegments

Non-allocated/Eliminations Group

January–June January–June January–June January–June January–June

(inCHF000s) 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017

Revenue third 198’877 193’815 106 93 198’983 193’908 0 0 198’983 193’908

Revenue intragroup 0 0 16’043 12’172 16’043 12’172 -16’043 -12’172 0 0

Totalrevenue 198’877 193’815 16’149 12’265 215’026 206’080 -16’043 -12’172 198’983 193’908

EBITDA 39’623 39’728 430 367 40’053 40’095 0 163 40’053 40’258

Depreciation -3’392 -3’397 -1’252 -1’056 -4’644 -4’453 0 0 -4’644 -4’453

Amortization -6’851 -6’253 -15 -24 -6’866 -6’277 0 0 -6’866 -6’277

Operatingprofit 29’380 30’078 -837 -713 28’543 29’365 0 163 28’543 29’528

Financial income 5’364 309

Finance costs -1’042 -6’979

Share of loss of equity-accountedinvestees,netoftaxes -1’443 0

Profitbeforeincometax 31’422 22’858




(unaudited)

Automotive 57’530 51’877

Consumer 20’797 23’999

Industrial 109’673 111’661

Others 10’983 6’371

Total 198’983 193’908

3 Revenuerecognition

Revenuebymarket



(unaudited)

Module 146’170 138’153

Chips 47’972 52’303

Others 4’841 3’452

Total 198’983 193’908

Revenuebyproducttype

4 Non-andderivativefinancialliabilities

Noadditionalnon-andderivativefinancialliabilitieswereissuedinthefirsthalfyear2018.

OnApril18,2017,u-bloxissuedabondforCHF60.0million(netcashinflowofCHF59.3million)withacouponof1.375%p.a.anda6yeartermtomaturity.Onthesamedate,u-bloxenteredintoaninterestswapcontractoverCHF30.0millionwithamaturityof6years.

5 Financeincomeandcost

Themainpartofthefinanceincomeconsistsofrealizedandunrealizedforeignexchangegainswhereasthefinancecostconsistsofinterestexpensesforthebonds.Inthepreviousyearthemainpartofthefinancecostsconsistsofrealizedandunrealizedforeignexchangelossesandinterestexpensesforthebonds.



(unaudited)

EMEA thereof:Switzerland

70’2371’033

49’874587

America thereof:UnitedStatesofAmerica

42’44936’536

40’57036’189

AsiaPacific thereof:China

86’29738’141

103’46451’618

Total 198’983 193’908

Revenuebyregion(basedonbillinglocation)


(inCHF000s)Carryingamount

June30,2018Carryingamount

Dec31,2017


Trade accounts receivable 58’550 50’401

Other receivables 10’947 9’616

Accrued income 768 769


Financialassetsatamortizedcosts 219’240 231’551


Derivativefinancialassets 15 152

Financialassetsatfairvaluethroughprofitorloss 2’419 2’965

Tradeaccountspayable 24’670 20’296

Otherpayables 12’601 5’894

Accruedexpenses 11’682 11’734

Non-derivativefinancialliabilities 119’037 118’913

Liabilitiesatamortizedcosts 167’990 156’837

Otherpayables-contingentconsideration 58 438

Liabilitiesatfairvaluethroughprofitandloss 58 438

6 Financialinstruments

Thefollowingtableshowsthecarryingamountofallfinancialinstrumentspercategory.Withtheexceptionoffinancialliabilities,theycorrespond,approximately,tothefairvaluesinaccordancewithIFRS.Thefairvalueoffinancialliabilitiesisdisclosedinthetable“Fairvaluehierarchy”.


7 Dividend

OnApril24,2018theAnnualGeneralMeetingofu-bloxHoldingAGapprovedagrossdividendofCHF2.25pershare. AtotaldividendamountofCHF15.4millionwaspaidoutonMay2,2018.

8 Guarantees,pledgesinfavorofthirdpartiesand

other contingent liabilities

AtJune30,2018andDecember31,2017therewerenoguaranteesinfavourofthirdparties.Thegroupisnotexposedtoanysignificantothercontingentliabilites.Thereisnoknownthreatenedorpendinglitigationagainstanygroupcompany.

9 Subsequentevents

TherehavebeennoeventsbetweenJune30,2018andthedateofauthorizationofthesecondensedconsolidatedinterimfinancialstatementsthatwouldleadtoanadjustmentofthecarryingamountsofassetsandliabilitiespresentedasofJune30,2018orwouldotherwisehavetobedisclosed.

TheBoardofDirectorsauthorizedonAugust23,2018thesecondensedconsolidatedinterimfinancialstatementsforpublication.

FairvaluehierarchyThedifferentlevelsoffinancialinstrumentscarriedatfairvalueorforwhichthefairvalueisdisclosedhavebeendefinedasfollowsinthetablebelow:Level1: quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities.Level2: inputsotherthanquotedpricesincludedwithinlevel1thatareobservablefortheassetortheliability, eitherdirectly(i.e.asprices)orindirectly(i.e.derivedfromprices).Level3: inputsforassetsorliabilitiesthatarenotbasedonobservablemarketdata(unobservableinputs).

June30,2018(inCHF000s)

Carryingamounts Fairvalue

Total Level1 Level2 Level 3

Marketable securities 2’404 2’404 0 0

Derivativefinancialassets 15 0 15 0

Total assets 2’419 2’404 15 0

Otherpayables–contingentconsideration 58 0 0 58

Non-derivativefinancialliabilities 119’037 122’250 0 0

Total liabilities 119’095 122’250 0 58

December31,2017(inCHF000s) Total Level1 Level2 Level 3

Marketable securities 2’813 2’813 0 0

Derivativefinancialassets 152 0 152 0

Total assets 2’965 2’813 152 0

Otherpayables–contingentconsideration 438 0 0 438

Non-derivativefinancialliabilities 118’913 123’390 0 0

Total liabilities 119’351 123’390 0 438

Page20 | InformationforInvestors

u-bloxHoldingAG

Corporateaddress

Investorrelations

Website

Financial calendar

Tickerdetailsforu-bloxshares•Listing SIXSwissExchange•Tickersymbol UBXN•ISIN-No. CH0033361673•SwissSecurity-No. 3336167•Reuters UBXN.S•Bloomberg UBXN:SW

u-bloxHoldingAGZürcherstrasse688800 ThalwilSwitzerlandPhone+41447227444Fax +41447227447

Thomas SeilerChiefExecutiveOfficerE-mail:[email protected]

RolandJudChiefFinancialOfficerE-mail:[email protected]

www.u-blox.com

•Analystday November21,2018•Fullyearresults2018 March15,2019•AnnualGeneralMeeting April25,2019

InformationforInvestors

mailto:roland.jud%40u-blox.com?subject=Half%20Year%20Report%202012

http://www.u-blox.com

InformationforInvestors | Page21

Disclaimer

Thisreleasecontainscertainforwardlookingstatements.Suchforwardlookingstatementsreflectthecurrentviewsofmanagementandaresubject

toknownandunknownrisks,uncertaintiesandotherfactorsthatmaycauseactualresults,performanceorachievementsoftheu-bloxGroupto

differmateriallyfromthoseexpressedorimplied.TheseincluderisksrelatedtothesuccessofanddemandfortheGroup’sproducts,thepotential

fortheGroup’sproductstobecomeobsolete,theGroup’sabilitytodefenditsintellectualproperty,theGroup’sabilitytodevelopandcommercialize

newproductsinatimelymanner,thedynamicandcompetitiveenvironmentinwhichtheGroupoperates,theregulatoryenvironment,changesin

currencyexchangerates,theGroup’sabilitytogeneraterevenuesandprofitability,andtheGroup’sabilitytorealizeitsexpansionprojectsinatimely

manner.Shouldoneormoreoftheserisksoruncertaintiesmaterialize,orshouldunderlyingassumptionsproveincorrect,actualresultsmayvary

materiallyfromthosedescribedinthisreport.u-bloxisprovidingtheinformationinthisreleaseasofthisdateanddoesnotundertakeanyobligation

toupdateanyforwardlookingstatementscontainedinitasaresultofnewinformation,futureeventsorotherwise.

Imprint

Publisher/Copyright:August2018u-bloxHoldingAG,Thalwil,Switzerland.

R&DcenterEspoo,FITampere,FIMalmö, SEReigate, UKCambourne,UKLuton, UKCork,IELeuven, BE

R&DcenterBerlin,GermanySgonico,ItalyAthens,GreeceLahore, Pakistan

AmericasregionalofficeReston,VA,USA

R&DcenterSanDiego,CA,USA

Corporateheadquarters EMEAregionalofficeR&DcenterThalwil, Switzerland

APACregionalofficeSingapore

APACareaoffices

Beijing,China

Seoul, Korea

Tokyo,Japan

Osaka,Japan

Shanghai,China

Chongqing,China

Taipei, Taiwan

Shenzhen,China

Bangalore,India

Sydney,Australia

Worldwidepresence

www.u-blox.com

Documents

HALF YEAR REPORT 2018 - U-bloxu-blox firmly on track for expanded market position in IoT 2018 half-year highlights Thalwil, Switzerland – August 24, 2018 – u-blox (SIX:UBXN), a