Revenue breakdown
u-blox operates in two segments:

Positioning and wireless products
u-blox develops and sells chips and modules designed for positioning and wireless connectivity. Its products and solutions are used in automotive, industrial and consumer applications. Segment revenue amounted to CHF 622.9 million in 2022 as compared to CHF 413.5 million in 2021.  

Wireless services
u-blox also offers wireless communication technology services in terms of reference designs and software. In 2022, segment revenue was CHF 34.1 million compared to CHF 35.8 million in 2021 (including intra group revenue).

2022 was a year of record revenues, improved margins and increased cash flows from operating activities. For the full-year 2022, u-blox generated total revenues of CHF 623.9 million, an EBIT (adjusted) of CHF 131.3 million and an EBITDA (adjusted) of CHF 169.9 million. Free cash flow amounted to CHF 66.2 million.    

During the year, demand for u-blox’s products was robust in all regions and across all applications sectors. The demand was fueled by the launch of numerous products, which strongly enhanced solution capabilities across its entire platform.  Favorable product mix changes and price increases expanded the gross margin. The strengthened USD/CHF exchange rate impacted the topline by 4.1%, resulting in a currency adjusted revenue increase of 46.6%.  

In APAC, full year 2022 revenues amounted to CHF 245.0 million, compared to CHF 153.3 million in 2021 (+59.8%). This was driven by strong growth with applications in infotainment, navigation, telematics, and healthcare, mainly in Japan, Australia/New Zealand and rest of APAC. 

Revenues in EMEA increased to CHF 176.0 million in 2022 from CHF 124.4 million in 2021 (+41.5%). This was driven by strong growth with applications in infotainment and navigation, industrial automation, and asset tracking. 

AMEC revenues increased to CHF 202.9 million in 2022 from CHF 136.3 million in 2021 (+48.8%).This was driven by strong growth with applications in infotainment, navigation, telematics and healthcare applications.

In 2022,u-blox continued customer diversification across all markets and products. u-blox’s largest end-customer accounted for 7% of revenue (previous year: 3%), the 10 largest end-customers accounted for about 27% of revenue (previous year:17%). 

Gross profit
Contribution margin improved in 2022 significantly and therefore adjusted gross profit increased by 58.4% to CHF 307.2 million in 2022 from CHF 193.9 million in 2021, resulting in a by 512 bps improved adjusted gross profit margin of 49.2% (2021: 46.8%).  

Distribution and marketing activities
Distribution and marketing expenses (adjusted) increased by 12.0% from CHF 38.9 million in the previous year to CHF 43.6 million in 2022. Distribution and marketing expenses rose in absolute amount as due to the strong growth of business and the increased contribution bonuses. Although due to operating leverage as percentage of revenue, distribution and marketing expenses (adjusted) decreased to 7.0% in 2022 compared to 9.4% in previous year.  

Research and product development
u-blox invested further into future products although R&D increased only slightly due to improved operational effectiveness. The adjusted R&D expenses in 2022 amounted to CHF 106.3 million as compared to CHF 102.2 million in 2021. As percentage of revenue, adjusted R&D expenses in 2022 therefore reduced to 17.0% (2021: 24.7%).  

Share based payment
Share based payment expenses recognized according to IFRS in 2022 were CHF 4.4 million as compared to CHF 3.3 million in 2021.  

Operating Profit (EBIT)
With CHF 131.3 million in 2022 adjusted EBIT, we reached a new record level (2021: CHF 35.1 million). Accordingly, the adjusted EBIT margin increased strongly to 21.0% in 2022 as compared to 8.5% in 2021. Adjusted operating profit before depreciation and amortization (EBITDA) amounted to CHF 169.9 million (2021: 72.1 million), an increase of 135.8% in 2022. The increase was primarily due to strong topline growth at improved contribution margins and due to effective management of operational expenses.  

Finance income and costs
Finance income was CHF 0.6 million. Finance costs of CHF 2.1 million consisted primarily of interest payments for the outstanding bond and interest for leasing under IFRS-16. The share of loss of equity-accounted investees net of tax in the financial result was CHF 0.2 million.

Net cash generated from operating activities
In 2022, u-blox generated a new record level of cash generated from operating activities of CHF 117.3 million. This represents an increase of 20.1% compared to the previous year (2021: CHF 97.7 million), thanks to the higher topline with improved margins. Investments into inventory to cope with supply constraints prevented an even higher cashflow from operating activities.  

Main investing activities
Investments in property, plant and equipment and intangible assets amounted to CHF 51.0 million in 2022 as compared to CHF 43.1 million in 2021.

As a percentage of revenues, the investment ratio decreased to 8.2% from 10.4% in 2021.  Capitalization of development costs of CHF 41.9 million increased in absolute numbers as compared to the previous year (2021: CHF 36.4 million) but decreased as percentage of total research and development costs. The capitalization rate was lower because of efforts for product re-designs for coping with component supply constraints. As in 2021 also in 2022 no investments in intellectual property rights were made. Investments in software amounted to CHF 1.2 million (2021: CHF 0.6 million), and investments in property, plant and equipment were CHF 7.8 million compared to CHF 6.2 million in 2021.  

In 2022, 82.2% of total investments went into the development of new products compared to 84.4% in 2021. 3.6% of investments were made into production capacity expansion in 2022 (2021: 0.5%).  

Solid financial position
u-blox’s balance sheet remains solid with an equity ratio of 61.6% as recorded on 31 December 2022. Cash and cash equivalents and marketable securities amounted to CHF 137.7 million on 31 December 2022, compared to CHF 83.7 million on 31 December 2021.  

Goodwill decreased from CHF 58.2 million in 2021 to CHF 55.6 million or 8.3% of total assets in 2022 due to foreign currency effects.  

In 2022, u-blox resumed dividend payments in form of a par value reduction in the amount of CHF 9.0 million.  
Based on the Company’s strong results in 2022 with a high free cashflow and solid outlook, the Board of Directors will again propose at the Annual General Meeting to pay a dividend in form of a par value reduction in the amount of CHF 2.00 per share for 2023.