Revenue breakdown
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u‑blox operates in two segments:

Positioning and wireless products
u-blox develops and sells chips and modules designed for positioning and wireless connectivity and are used in automotive, industrial and consumer applications. Revenue was CHF 413.5 million for 2021 as compared to CHF 333.2 million in 2020.

Wireless services
u-blox also offers wireless communication technology services in terms of reference designs and software. In 2021, revenue for wireless services was CHF 35.8 million compared to CHF 31.5 million in 2020 (including intra group revenue).

For the full-year 2021, u-blox generated revenues of CHF 414.1 million, an EBIT (adjusted) of  CHF 35.1 million and an EBITDA (adjusted) of CHF 72.1 million. In 2021, u-blox achieved record revenues and generated unprecedented levels of cash-flow. Since August 2020, the market demand started to accelerate with strong order intake resulting in an orderbook 8x higher than at the end of 2020. Demand was strong in all regions and across all applications sectors. Favorable product mix changes and price increases expanded the gross margin.
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During the year, u-blox acquired full ownership in the Sapcorda Joint Venture.  Sapcorda is a leading provider of advanced GNSS augmentation services serving the high precision GNSS mass market. The acquisition of Sapcorda reinforced u-blox’s position as a leader driving innovation in the most advanced areas of GNSS positioning technology and fits well with its strategy of delivering value to customers by means of a comprehensive ‘silicon-to-cloud’ set of solutions and offerings.

The weakened USD/CHF exchange rate impacted the topline by -2.7%, resulting in a currency adjusted revenue increase of 26.9%.

In APAC, full-year 2021 revenues amounted to CHF 153.9 million, compared to CHF 137.7 million in 2020 (+11.8%). This was driven by strong growth in Japan and Korea for applications in industrial automation, navigation, infotainment and automated driving. Growth in APAC was tempered by relatively flat results in China due to supply constraints and by continued COVID impacts in some countries. 

Revenues in EMEA increased to CHF 124.9 million in 2021 from CHF 95.9 million in 2020 (+30.1%), primarily due to a higher demand in industrial automation and consumer telematics, and strong rebound in automotive. 

AMEC revenues increased to CHF 136.9 million in 2021 from CHF 99.5 million in 2020 (+37.6%). Strong revenue growth was mainly due to particularly higher demand for industrial automation, automotive navigation and infotainment applications. 

In 2021, approximately 80% of total revenue was generated by 74 customers. u-blox's largest customer accounted for only 4.6% of revenue. u-blox serves over 12’200 customers worldwide. 

Gross profit
Adjusted gross profit increased by 28.5% to CHF193.9 million in 2021 from CHF 150.9 million in 2020, resulting in an adjusted gross profit margin of 46.8% (2020: 45.3%). 

Distribution and marketing activities
Distribution and marketing expenses (adjusted) in 2021 were CHF38.9 million as compared to CHF 31.9 million in the previous year. As percentage  of revenue, distribution and marketing expenses  (adjusted) were 9.4% in 2021 compared to 9.6%.
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In 2020 distribution and marketing expenses rose as bonuses increased due to the strong growth of business and travel restrictions and finally started to normalize in the second half of 2021. 

Research and product development
R&D increased due to higher amortization expenses than in 2020, investments for design changes to overcome the supply shortage and the full consolidation of Sapcorda, which in 2020 was accounted under equity accounting rules. The adjusted R&D expenses increased in 2021 to CHF 102.2 million as compared to CHF 82.4 million in 2020. As percentage of revenue adjusted R&D expenses in 2021 remained stable with 24.7% (2020: 24.7%).  

Share based payment
Share based payment expenses recognized according to IFRS in 2021 were CHF 3.3 million as compared to CHF 4.8 million in 2020. 

Operating Profit (EBIT)
With CHF 35.1 million in 2021 adjusted EBIT was nearly doubled compared to CHF 18.0 million in 2020. Accordingly, adjusted EBIT margin increased to 8.5% in 2021 compared to 5.4% in 2020.
Adjusted operating profit before depreciation and amortization (EBITDA) was CHF 72.1 million, an increase of 71.0% from 2020. The increase was primarily due to strong topline growth and due to effective management of operational expenses. 

Finance income and costs
Finance income was CHF 3.9 million. Finance costs of CHF 6.9 million consisted primarily of interest payments for the outstanding bond, the result of full consolidation of Sapcorda and unrealized foreign currency losses. The share of loss ofequity-accounted investees net of tax in the financial result amounted CHF 1.8 million.

Net cash generated from operating activities
In 2021: u-blox generated cash from operating activities in the amount of CHF 97.7 million an increase of 147.2% compared to the previous year (2020: CHF 39.5 million), due to higher topline with improved margins and improved net working capital with lower inventory levels due to the supply shortage in the market. 

Main investing activities
Investments in property, plant and equipment, and intangible assets amounted to CHF 43.1 million in 2021 compared to CHF 42.8 million in 2020. As a percentage of revenues, the investment ratio decreased to 10.4% in 2021 from 12.8% in 2020. 

Capitali­zation of development costs of CHF 36.4 million decreased as compared to the previous year (2020: CHF 36.8 million). The capitalization rate was lower because of efforts for product re-designs for coping with component supply constraints. In 2021, no investments in intellectual property rights are made (CHF 1.0 million in 2020), investments in software remained stable at CHF 0.6 million (2020: CHF 0.7 million), and investments in property, plant and equipment were CHF 6.2 million compared to CHF 4.3 million in 2020. 

In 2021, 84.4% of total investments went into the development of new products compared to 88.3% in 2020. 0.5% of investments were made into production capacity expansion in 2021 and none in 2020. 

Financing activities
In 2021 u-blox repaid the bond in the value of CHF 60 million. No dividends were paid in 2021.

Solid financial position
u-blox’s balance sheet remains solid with an equity ratio of 59.9% as recorded on 31 December 2021. Cash and cash equivalents and marketable securities amounted to CHF 83.7 million on December 31, 2021, compared to CHF 94.4 million on December 31, 2020.
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Goodwill decreased from CHF 59.9 million in 2020 to CHF 58.2 million or 11.5% of total assets in 2021 due to foreign currency effects. 

Based on the Company’s very good results in 2021, with the high free cash flow and strong outlook, the Board of Directors will propose at the Annual General Meeting to pay a dividend in form of a par value reduction in the amount of CHF 1.30 per share.