2021 Highlights
Business review
Governance
Financial report
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Risk management

u-blox – a resilient global partner

Risks
Risk Mitigation
Markets and customers
Macroeconomic uncertainties, slow demand, and disruption by natural disasters could impact our business and customer demand. This may lead to lower volumes and decreased profitability.
  • No single customer accounts for a double- digit percentage of u‑blox’s revenue
  • Continual expansion of the customer base on all continents
  • Continuous monitoring and assessment of market developments and needs
  • Focus on most promising market sectors
Competition
Our markets are highly competitive in terms of pricing, product features, and service quality. In many sectors we face price pressures that could negatively impact our results.
  • Review and replan R&D activities every 6 months
  • Foster a high level of innovation
  • Maintain high technical support capabilities globally
  • Product range well-structured to provide customers with solutions tailored to their needs
  • Provide an attractive journey for your customers
Intellectual property
Competitors or other parties in our industry may seek to yield benefits from our technical innovations by duplicating our products.
  • Maintain a high level of trade secrecy
  • Protect our current business and IP from being copied or used by others by appropriate use of patents, copyrights, and trade secrets on a global basis
  • Accelerate the innovation rate
  • Manage third party licenses
  • Defend IP infringements
Product quality
Poor product quality may result in reputational and brand damage, resulting in lower volumes and financial claims.
  • Continual expansion of the quality management system and laboratory capabilities
  • Thorough testing and qualification at our own laboratory facilities
  • Maintain high technical support level globally
  • Excellent long-term manufacturing partners
  • Guide and manage the quality systems of our suppliers
Cybersecurity
Breaches in cybersecurity can become cost-intensive to remedy and bring potential financial claims, reputational damage, and loss of customer trust.
  • Information Security Management System and ISO27001 certification
  • Continuous hardening of core IT and improved site security
  • Red Team in-house testing security center of excellence
  • Security experts and testing within u-blox product centers
  • Continuous product security innovation
  • ISO 15408 Common Criteria and other product security certifications
  • Security collaboration with critical supplier partners
Innovation
u‑blox’s competitive position, sales, and earnings depend significantly on the development of new products and technologies. Failure to achieve our aggressive R&D and innovation goals could negatively impact our ability to grow.
  • Continual stream of new products launched yearly with targeted features to several markets
  • Expensed CHF 87.1 million, or 26.1% of revenues in R&D in 2021
  • Early engagement of lead customers
  • Cooperate with market shaping customers
  • Intensive market communication
Personnel
Skilled and dedicated employees are essential for the success of our growth-oriented corporate strategy. The loss of these individuals could disrupt the company’s operations.
  • Globally positioning the company as an attractive employer
  • Train and increase knowledge and talent
  • Regular employee satisfaction survey
  • Maintain attractive employment conditions and compensation packages plus a stock option plan
  • Offer career path opportunities group wide
Suppliers
u‑blox outsources its capital-intensive production to leading production suppliers around the world. Rising raw material prices, capacity constraints, or business interruption could lead to a supply shortage with negative consequences for our business.
  • Lean supply base with few key suppliers
  • Long-term relationships with suppliers and close interaction to plan and manage capacity
  • Inventory buffers to respond to unplanned demand fluctuations
  • Close contact with customers to predict demands
Compliance
Non-compliant or unethical behavior could lead to reputational damage, fines, and liability claims.
  • Active fostering of high ethical standards and membership in the UN Global Compact
  • u‑blox Code of Conduct
  • Anti-bribery policy
  • Speak-up culture, formal compliance process, and sanctions
  • Sustainable supplier program containing regular risk assessments and inspections of production suppliers’ operations
Currency fluctuations
The majority of u‑blox's revenue material costs and R&D expenses are in US dollar currency.
  • Foster natural hedging by matching revenue currency amounts with expense currency amounts
Credit
Our markets are highly competitive in terms of pricing, product features, and service quality. In many sectors we face price pressures that could negatively impact our results.
  • Review and replan R&D activities every 6 months
  • Insurance for all customer credit lines
  • Frequent and thorough follow-up on late payments
Liquidity
Failure in liquidity management may have a negative effect on u‑blox's financial performance.
  • Monitor our liquidity continually
  • Cash flow program to optimize liquidity and cash flow management
  • Efficient use of available cash through cash pooling
  • Manage OPEX tightly to achieve positive free cash flow
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