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WELCOME TO THE ASCOM ANALYST & INVESTOR DAY ZURICH, 30 OCTOBER 2013
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Page 1: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

WELCOME TO THE ASCOM

ANALYST & INVESTOR DAY

ZURICH, 30 OCTOBER 2013

Page 2: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

ASCOM

MISSION-CRITICAL WIRELESS COMMUNICATION

Page 3: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

ASCOM AT A GLANCE

Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group

ASCOM RUNS TWO BUSINESSES Ascom Wireless Solutions Ascom Network Testing Providing workflow optimization for Health Care

Auditing network performance and customer experience

Healthcare facilities Retail, Prisons, Power plants,

Manufacturing facilities etc. Enterprise Mobility Vendors

Mobile Network Operators Network Equipment Vendors Managed Service Providers Regulators

INDUSTRY: INFORMATION & COMMUNICATION TECHNOLOGY Business-to-business only

Integrated wireless on-site communication, Nurse Call

Mobile Telecom, Radio Access Network (RAN)

3

Page 4: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

ASCOM – SET TO CREATE MORE VALUE

Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group

1 Market leader in an attractive industry with great potential

2 At the forefront of innovation and technology

3 Robust and clear strategy going forward

4 Experienced and committed management team

4

Page 5: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

ASCOM – SET TO CREATE MORE VALUE

Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group

1 Market leader in an attractive industry with great potential

2 At the forefront of innovation and technology

3 Robust and clear strategy going forward

4 Experienced and committed management team

5

Page 6: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

MARKET DRIVERS OPERATOR CHALLENGES

WIRELESS SOLUTIONS – ATTRACTIVE INDUSTRY FUNDAMENTALS

Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group

Ageing population

Pressure to improve efficiency in healthcare systems

Communication to manage care effectively

Provide adequate Care Facilities

Optimize workflow of qualified care staff

Tailored Solutions make a big difference

ASCOM SUPPORTS POINT OF CARE WORKFLOW OPTIMIZATION IN HEALTHCARE

6

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MARKET LEADER IN PATIENT SYSTEMS

MARKET LEADER IN CORDLESS ENTERPRISE TELEPHONY

MARKET LEADER IN AN ATTRACTIVE INDUSTRY

Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group 7

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Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group

C U S T O M E R

Patient System

C U S T O M E R

Unite Software

C U S T O M E R

Mobility

C U S T O M E R

Services

System integrator

Reseller

C U S T O M E R

Patient Systems Unite Software Mobility

Services

ASCOM’S USP: THE POWER OF ONE

8

Page 9: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

MARKET DRIVERS OPERATOR CHALLENGES

NETWORK TESTING – ATTRACTIVE INDUSTRY FUNDAMENTALS

Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group

Increasing: Demand for mobile Broadband

Increasing: Network Complexity

Decreasing: Average Revenue per User

Build Capacity

Improve Efficiency

Manage Customer Experience (CX)

ASCOM IS THE TRUSTED PARTNER IN WIRELESS NETWORK INVESTMENT AND MANAGEMENT

9

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Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group

MARKET LEADER IN AN ATTRACTIVE INDUSTRY

TEST & MEASUREMENT

BENCHMARKING & MONITORING

REPORTING & ANALYSIS

Global market leader in drive- and walk-test tools for measuring mobile network performance

Industry‘s most versatile benchmarking software platform: handheld, automated, application services

Enterprise software for analyzing, optimizing device and network performance

10

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Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group

Test & Measurement

Benchmark

Monitor

Reporting & Analysis

C U S T O M E R

C U S T O M E R

Test & Measurement

C U S T O M E R

Benchmark

C U S T O M E R

Monitor

C U S T O M E R

Reporting & Analysis

ASCOM’S USP: THE POWER OF ONE

11

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ASCOM – SET TO CREATE MORE VALUE

Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group

1 Market leader in an attractive industry with great potential

2 At the forefront of innovation and technology

3 Robust and clear strategy going forward

4 Experienced and committed management team

12

Page 13: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

Continued high investments in R&D CHF 50m per year - expensed through P&L 11% of net revenue, above market level

Ascom Wireless Solutions Ascom Network Testing Providing workflow optimization for the HC space

Software applications based on Unite

Next generation IP and wireless nurse call

Ruggedized, dual mode smart phone for the healthcare industry

Auditing network performance and customer experience

Blixt – available bandwith measurement technology

Pioneer in VoLTE testing

Only Ascom supports Testing with iPhone

AT THE FOREFRONT OF INNOVATION AND TECHNOLOGY

Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group 13

Page 14: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

NEXT GENERATION HEALTHCARE SMART DEVICE

Made for professional use

Ruggedized

Endures any shift planMulti Radio

Improved Workflows

14Investor Presentation, January 2014 © Ascom Group

Source: www.rfclipart.com

Page 15: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

Only TEMS Investigation Tests with iPhone®

Full support in TEMS Investigation for iPhone iPhone generates more operator revenue and mobile data traffic

than any other phone

Provides operators with an unprecedented level of visibility into network performance

Enables efficient and detailed testing for key use cases LTE Testing Indoor Testing Network Optimization

Leverages operator investment Seemlessly plugs into operator workflow

INTRODUCING: IPHONE® AND TEMS INVESTIGATION

Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group 15

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ASCOM – SET TO CREATE MORE VALUE

Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group

1 Market leader in an attractive industry with great potential

2 At the forefront of innovation and technology

3 Robust and clear strategy going forward

4 Experienced and committed management team

16

Page 17: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

Growth

Increase penetration in established markets Leverage installed base to cross-sell Expand regionally Increase share of software and service business

Innovation

Establish product platforms Increase level and speed of innovation

Operational Excellence

Manage costs diligently Manage Group synergies

A ROBUST AND CLEAR STRATEGY BUILT ON 3 PILLARS

Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group 17

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WIRELESS SOLUTIONS – STRATEGIC TRANSITION

Past Current Wanted

Product House for dedicated on site mobility. Europe presence.

System House for on site mobility and nurse call. Europe and US presence.

Solutions Provider for point of care workflow optimization in Healthcare. Global presence.

Market positioning

Innovation

Operational Efficiency

Mobility and alarming for segments with mission critical needs.

Supply chain excellence Own manufacturing Autonomous Local Sales Units. Functional organization.

Mobility, Software, and Patient Systems businesses in their own right.

Products and Professional services optimized for direct and indirect business globally

Supply chain excellence Asset light - outsourcing Diverse Regions. Product lines introduced Matrix organization.

Process excellence Common Divisional operating model.

18 Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group

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North America

Western Europe

Middle East / Africa

Note: revenue based on FY 2012

Latin America

CEE

APAC

2012

2012

2012

2012

2012

2012

Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group

43

249

3

GEOGRAPHIC OPPORTUNITY WIRELESS SOLUTIONS

19

Page 20: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

NETWORK TESTING - STRATEGIC TRANSITION

Post-TEMS acquisition

Current Wanted

Technology leader in wireless network drive testing tools

Independent auditor of wireless network performance

Deep understand-ing of network test metrics

Captive Ericsson distribution

Strongest product portfolio across wireless testing

Global sales and service reach

Solution portfolio able to address CTO-level objectives

Trusted relationships

Trusted partner in wireless network investment and management

Market positioning

Associated core assets

20 Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group

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Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group

Trial Roll-Out Optimization Operation

Test & Measurements TEMS Investigation, TEMS Pocket

Reporting & Analysis TEMS Discovery, TEMS Visualization

Benchmarking & Monitoring TEMS Automatic, TEMS Symphony TEMS Monitor Master

Network Testing supports all phases of the network life cycle

OPPORTUNITY CYCLE NETWORK TESTING

21

Page 22: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

ASCOM WIRELESS SOLUTIONS ASCOM NETWORK TESTING

OUR STRATEGIC FOCUS: MORE SOFTWARE AND SERVICES

Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group

20%

50%

30%

Software Hardware Services

60% 20%

20%

Software Hardware Services

22

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ASCOM – SET TO CREATE MORE VALUE

Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group

1 Market leader in an attractive industry with great potential

2 At the forefront of innovation and technology

3 Robust and clear strategy going forward

4 Experienced and committed management team

23

Page 24: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

THE EXECUTIVE BOARD

Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group

Fritz Mumenthaler Joined in 2005. More than 20 years experience with international indus-trial companies.

Bianka Wilson Joined in 2013. Experienced finance expert with a solid track record and a broad international background.

Claes Ödman Joined in 2011. Based in Asia for 8 years; Taiwan and Singapore.

Rikard Lundqvist Joined in 2009. Significant international experience.

FRITZ MUMENTHALER

CHIEF EXECUTIVE OFFICER

BIANKA WILSON

CHIEF FINANCIAL OFFICER

CLAES ÖDMAN

GENERAL MANAGER

WIRELESS SOLUTIONS

RIKARD LUNDQVIST

GENERAL MANAGER

NETWORK TESTING

24

Page 25: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

ASCOM – SET TO CREATE MORE VALUE

Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group

1 Market leader in an attractive industry with great potential

2 At the forefront of innovation and technology

3 Robust and clear strategy going forward

4 Experienced and committed management team

25

Page 26: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

Targets 2013* EBITDA target Mid-term target of 14–15% EBITDA margin for 2013 announced in January 2011

We confirm the EBITDA target range of 14 – 15% we gave in January 2011, and will thereby show the best Group EBITDA margin Ascom has ever achieved

We will grow Net Revenues 2.5 – 5% on Group level

Net Profit We will increase Net Profit substanially versus 2012

Mid-term targets (2014/15)*

Based on the strategic positioning of the 2 Divisions and supported by smaller value-adding acquisitions, we confirm the mid-term targets:

Average growth of 5–10% at Group level in 2014/15 EBITDA margin of 17–18% at Group level in 2015

* Assuming a steady economical and at least stable currency relations.

GOING FORWARD

Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group 26

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LEGAL DISCLAIMER

This document contains specific forward-looking statements, e.g. statements including terms like “believe”, “expect” or similar expressions. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may result in a substantial divergence between the actual results, financial situation, development or performance of Ascom and those explicitly presumed in these statements.

Against the background of these uncertainties readers should not rely on forward-looking statements. Ascom assumes no responsibility to update forward-looking statements or adapt them to future events or developments.

Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group 27

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[ ]

GROUP CONTACT (AS OF 1 NOVEMBER 2013)

Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group 28

Ascom Holding AG T +41 41 544 78 00 Zugerstrasse 32 F +41 41 761 97 25 CH-6340 Baar [email protected]

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[ ]

THANK YOU!

Analyst & Investor Day, CEO Presentation, 30/10/2013 © Ascom Group 29

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[ ]

CFO PRESENTATION BIANKA WILSON

1 Analyst & Investor Day, CFO Presentation, 30/10/2013 © Ascom Group

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[ ]

2

AGENDA First impressions of Ascom

2014 CFO priorities

Analyst & Investor Day, CFO Presentation, 30/10/2013 © Ascom Group

Page 32: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

Attractive value play after sucessful turnaround

AT A GLANCE (FIGURES 2012 & H1 2013)

3

Revenue CHF449.8m

Gross margin 48.9%

EBITDA CHF45.9m

CHF225.1m

49.8%

CHF27.9m

Free cash flow

CHF -88.6m

CHF30.5m

Customer ROI at the core of our work

Clear strategic focus

Total Assets

CHF521.5m

Solid balance sheet

Asset light strategy

CHF473.7m

Motivated and proud

Employees FTE1’771

A fun place to be

FTE1’600

International market leader

Global presence in 17 Countries

R&D 11% of Revenue

10.7%

Analyst & Investor Day, CFO Presentation, 30/10/2013 © Ascom Group

Page 33: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

A FOCUSED AND BALANCED PORTFOLIO

ASCOM RUNS TWO BUSINESSES Ascom Wireless Solutions Ascom Network Testing Providing workflow optimization for Health Care

Auditing network performance and customer experience

Healthcare facilities Retail, Prisons, Power plants,

Manufacturing facilities etc. Enterprise Mobility Vend

Mobile Network Operators Network Equipment Vendors Managed Service Providers Regulators

INDUSTRY: INFORMATION & COMMUNICATION TECHNOLOGY Business-to-business only

Wireless on-site communication, Nurse Call

Mobile Telecom, Radio Access Network (RAN)

4 Analyst & Investor Day, CFO Presentation, 30/10/2013 © Ascom Group

Page 34: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

A FOCUSED AND BALANCED PORTFOLIO

ASCOM RUNS TWO BUSINESSES Ascom Wireless Solutions Ascom Network Testing Providing workflow optimization for Health Care

Auditing network performance and customer experience

Healthcare facilities Retail, Prisons, Powerplants,

Manufacturing facilities etc. Enterprise Mobility Vend

Mobile Network Operators Network Equipment Vendors Managed Service Providers Regulators

INDUSTRY: INFORMATION & COMMUNICATION TECHNOLOGY Business-to-business only

Wireless on-site communication, Nurse Call

Mobile Telecom, Radio Access Network (RAN)

5

Rather converging technology trends and opportunities

Upside potential with de-risked downside

Stable cash cow Good visibility

Attractive margins Reshaped for growth

Streamlined At turning point

Inherently higher volatilility

Investor point

Analyst & Investor Day, CFO Presentation, 30/10/2013 © Ascom Group

Page 35: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

GLOBAL MARKET PRESENCE

6

North America Western Europe

Latin America

CEE

APAC

43 249

3

45

6

41 7

Middle East / Africa

15

10

China

7

Corporate / division headquarter Subsidiary or branch Note: All figures based on FY 2012 revenues

Analyst & Investor Day, CFO Presentation, 30/10/2013 © Ascom Group

Page 36: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

GLOBAL MARKET PRESENCE

7

North America Western Europe

Latin America

CEE

APAC

43 249

3

45

6

41 7

Middle East / Africa

15

10

China

7

Corporate / division headquarter Subsidiary or branch Note: All figures based on FY 2012 revenues

White spots on the map

Revenue growth potential

Established in developed regions Reaching customers in 130 countries

Important credentials in growth markets

Investor point

Analyst & Investor Day, CFO Presentation, 30/10/2013 © Ascom Group

Page 37: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

MARKET LEADER OR LEADING WITH THE POWER OF ONE

8

Patient System

Mobility

Test & Measurement

Benchmark & Monitoring

Reporting & Analysis

In top 3 worldwide

# 1 worldwide

# 1 worldwide

# 2 worldwide

# 3 worldwide

The Power of One End-to-end – Purpose built – Open integration

The Power of One End-to-end – All phases of the network life cycle

Middleware Technology agnostic supporting leadership position

Analyst & Investor Day, CFO Presentation, 30/10/2013 © Ascom Group

Page 38: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

MARKET LEADER OR LEADING WITH THE POWER OF ONE

9

Patient System

Mobility

Test & Measurement

Benchmark & Monitoring

Reporting & Analysis

In top 3 worldwide

# 1 worldwide

# 1 worldwide

# 2 worldwide

# 3 worldwide

The Power of One End-to-end – Purpose built – Fully integrative

The Power of One End-to-end – All phases of the network life cycle

Middleware Technology agnostic supporting leadership position

Unique cross-selling opportunities, successful customer penetration, cross-sector leverage

Revenue growth potential

Investor point

Consistent R&D rate (10%+ of revenue) and strong innovation pipeline

Serving customers end-to-end during all phases of their investment and technology cycles

Analyst & Investor Day, CFO Presentation, 30/10/2013 © Ascom Group

Page 39: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

ASCOM WIRELESS SOLUTIONS ASCOM NETWORK TESTING

STRATEGIC FOCUS: MORE SOFTWARE AND SERVICES

20%

50%

30%

Software Hardware Services

60% 20%

20%

Software Hardware Services

10 Analyst & Investor Day, CFO Presentation, 30/10/2013 © Ascom Group

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ASCOM WIRELESS SOLUTIONS ASCOM NETWORK TESTING

STRATEGIC FOCUS: MORE SOFTWARE AND SERVICES

20%

50%

30%

Software Hardware Services

60% 20%

20%

Software Hardware Services

11

Transforming product mix

Profitability growth potential, stability, scalability and financial flexibility

Investor point

Balanced project pipeline Strong margins also on hardware

Increasing recurring revenues

Analyst & Investor Day, CFO Presentation, 30/10/2013 © Ascom Group

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BOTH DIVISIONS ON TRACK

12

-50

0

50

100

150

200

I/O NR EBITDA I/O NR EBITDA

H1/12 H2/12 H1/13

1) GE Nursecall acquired as per June 18, 2012 2) EBITDA of Network Testing includes restructuring costs of CHF 8.8m for H1/12 and CHF 2.9m for H2/12

Wireless Solutions 1) Network Testing 2)

Analyst & Investor Day, CFO Presentation, 30/10/2013 © Ascom Group

Page 42: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

BOTH DIVISIONS ON TRACK

13

-50

0

50

100

150

200

I/O NR EBITDA I/O NR EBITDA

H1/12 H2/12 H1/13

1) GE Nursecall acquired as per June 18, 2012 2) EBITDA of Network Testing includes restructuring costs of CHF 8.8m for H1/12 and CHF 2.9m for H2/12

Wireless Solutions 1) Network Testing 2)

On track towards achieving best Group EBITDA ever

Solid base for future growth

Investor point

Successful Network Testing turnaround Overall very strong H1/2013

Analyst & Investor Day, CFO Presentation, 30/10/2013 © Ascom Group

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FINANCIALLY WELL POSITIONED FOR THE FUTURE

1 Healthy balance sheet

3 Disciplined working capital management

2 Strong cash generation

4 Attractive valuation and positive investor feedback

14 Analyst & Investor Day, CFO Presentation, 30/10/2013 © Ascom Group

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HEALTHY BALANCE SHEET

31.12.2012 30.6.2013

CHFm % CHFm %

Intangible assets 235.5 45.2 229.5 48.4

Other non-current assets 47.0 9.0 34.1 7.2

Non-current assets 282.5 54.2 263.6 55.6

Cash and cash equivalents 63.1 12.1 55.2 11.7

Other current assets 175.9 33.7 154.9 32.7

Total assets 521.5 100.0 473.7 100.0

Shareholders’ equity 166.8 32.0 199.3 42.1

Non-current liabilities 205.7 39.4 137.6 29.0

Current liabilities 149.0 28.6 136.8 28.9

Total liabilities and shareholders’ equity 521.5 100.0 473.7 100.0

15

1

Analyst & Investor Day, CFO Presentation, 30/10/2013 © Ascom Group

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CHFm H1/2012 H2/2012 H1/2013

Net cash flow from operating activities (9.7) 15.1 32.2

Net cash flow from investing activities (87.1) (6.9) (1.7)

Free cash flow (96.8) 8.2 30.5

Net cash flow from financing activities 78.9 (0.5) (38.8)

CHFm 31.12.2012 30.6.2013

Net debt at the end of the period (41.3) (21.8)

STRONG CASH GENERATION

16

2

Analyst & Investor Day, CFO Presentation, 30/10/2013 © Ascom Group

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14.5

30.5

25.6

(7.9) (1.7)

Group profit Change in net working capital

Other operating cash flows

Investing activities (net)

Free cash flow

DETAILS ON FREE CASH FLOW (CHFm)

17

STRONG CASH GENERATION 2

Analyst & Investor Day, CFO Presentation, 30/10/2013 © Ascom Group

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DISCIPLINED WORKING CAPITAL MANAGEMENT

18

3

30.06. 30.06.

31.12.

0

20

40

60

80

100

120

2012 2013 Note: NWC consists of Inventory, A/R, A/P, Prepayments and Net Assets/Liabilities from POC contracts

Ongoing improvement through discipline and asset light business model; reflective of the

inherent business cyclicality

Analyst & Investor Day, CFO Presentation, 30/10/2013 © Ascom Group

39% of H1/2012

Net revenue

43% of H2/2012

Net revenue

36% of H1/2013

Net revenue

Page 48: Ascom Investor Day Presentation 2013 · PDF fileGlobal market leader in drive- and walk-test tools for ... iPhone generates more operator revenue and mobile data ... Ascom Investor

ATTRACTIVE VALUATION AND POSITIVE FEEDBACK

19

4

„Likes the recurring nature of wireless and the potential upside surprise of the network business“

„Overall strategy sensible“

„Likes management enthusiasm and clarity“

„Expect lumpiness in growth?“

„Likes the combination of cash generation, defensive and cyclical growth“

„Key challenge going forward ... sustainable profitability in network testing“

Analyst view Recent investor feedback

„Ascom is a value play with healthy ROIC and strong OpFCF“

„Will be following progress with interest...“ Analyst & Investor Day, CFO Presentation, 30/10/2013 © Ascom Group

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2014 CFO PRIORITIES

1 Enable growth initiatives

3 Active investor relations

2 Continue focus on financial and operational excellence

4 Provide transparency

20 Analyst & Investor Day, CFO Presentation, 30/10/2013 © Ascom Group

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LEGAL DISCLAIMER

This document contains specific forward-looking statements, e.g. statements including terms like “believe”, “expect” or similar expressions. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may result in a substantial divergence between the actual results, financial situation, development or performance of Ascom and those explicitly presumed in these statements.

Against the background of these uncertainties readers should not rely on forward-looking statements. Ascom assumes no responsibility to update forward-looking statements or adapt them to future events or developments.

21 Analyst & Investor Day, CFO Presentation, 30/10/2013 © Ascom Group

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[ ]

GROUP CONTACT (NEW AS OF 1 NOVEMBER 2013)

22 Analyst & Investor Day, CFO Presentation, 30/10/2013 © Ascom Group

Ascom Holding AG Investor Relations T +41 41 544 78 00 Zugerstrasse 32 F +41 41 761 97 25 CH-6340 Baar [email protected]

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[ ]

THANK YOU!

23 Analyst & Investor Day, CFO Presentation, 30/10/2013 © Ascom Group

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Analyst & Investor Day, 30/10/2013 © Ascom Wireless Solutions

WORKFLOW OPTIMIZATION IN HEALTHCARECLAES ÖDMAN

1

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OUR PROPOSITION: POWER OF ONE

Patient Systems Unite Solutions Mobility

Analyst & Investor Day, 30/10/2013 © Ascom Wireless Solutions 2

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3

EXECUTING ON OUR STRATEGY

Analyst & Investor Day, 30/10/2013 © Ascom Wireless Solutions

Achieved Significant Healthcare Wins in UK, GermanyEstablished Asia BridgeheadIncreased Software and Services – Recurring RevenueImplemented three Global Product LinesLeveraging GE Nurse Call acquisition

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Source: University of Maryland Study for US Hospitals

COST IMPLICATIONS OF POOR COMMUNICATION

2%Negative impact on revenues from poor

communications

$4MBurden for a single 500-bed acute care

facility

$12BLost annually due to poor

communications

Analyst & Investor Day, 30/10/2013 © Ascom Wireless Solutions 4

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TOP HEALTH TECHNOLOGY HAZARDS

Source: ECRI Institute - Top 10 Health Technology Hazards For 2013 Health Devices

ECRI Recommended Solutions:Ensure each alarm is recognizedClearly assign responsibilitiesEstablish backup coverage

ECRI Top Alarm Hazards:Staff being desensitized to alarmsAlarms not being relayed properlySometimes alarms turned off

Analyst & Investor Day, 30/10/2013 © Ascom Wireless Solutions 5

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Quicker response to critical alerts and alarmsIntelligent integration with 2-way messagingAutomated alert messaging and escalation Efficient, coordinated team communication

PROVEN SOLUTIONS THAT OPTIMIZE WORKFLOW

Analyst & Investor Day, 30/10/2013 © Ascom Wireless Solutions 6

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Robust design/construction

Tolerates disinfection

Remote software update

Easy replaceable battery

Charging concept

Withstands water splashes

Easy, interactive messaging Personal alarm button

Professional clip options

Long life cycles

PURPOSE BUILT FEATURES MAKE A BIG DIFFERENCE

World leader in enterprise wireless devices

Complete device portfolio: pagers, IP-DECT, and VoWiFi

Customer choices from basic talker to advanced protector model

Analyst & Investor Day, 30/10/2013 © Ascom Wireless Solutions 7

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ASCOM SOLUTION FOR EMERGENCY DEPARTMENT

Dispatch and coordinate trauma team members/equipmentResponse team members and skills utilized more efficientlyAdverse events minimized, increasing patient safetyPatient spends less time in ED, increasing patient throughput

EmergencyDept. Laboratory Patient

MonitorNurse CallRadiology

Analyst & Investor Day, 30/10/2013 © Ascom Wireless Solutions 8

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ASCOM SOLUTION FOR EMERGENCY DEPARTMENT

Analyst & Investor Day, 30/10/2013 © Ascom Wireless Solutions 9

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ASCOM SOLUTION FOR LABORATORY

Send critical values from Lab immediately to caregiver devicesNurse does not waste time continuously checking for lab resultPhysician and nurse coordinate medication decisions more quicklyPatient receives medication faster, reducing length of stay

EmergencyDept. Laboratory Patient

MonitorNurse CallRadiology

Analyst & Investor Day, 30/10/2013 © Ascom Wireless Solutions 10

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ASCOM SOLUTION FOR RADIOLOGY

Send study results from Radiology immediately to caregiver devicesPhysician begins patient treatment or procedures quickerImproved utilization of high dollar assets like MRIPatient flow improved with better transport coordination to/from Radiology

EmergencyDept. Laboratory Patient

MonitorNurse CallRadiology

Analyst & Investor Day, 30/10/2013 © Ascom Wireless Solutions 11

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ASCOM SOLUTION FOR NURSE CALL

Improve, speed up communication between patient & caregiverSave time and steps by talking to patient firstForward low priority requests to predefined back-upAlert cardiac response team via nurse call alarm button

EmergencyDept. Laboratory Patient

MonitorNurse CallRadiology

Analyst & Investor Day, 30/10/2013 © Ascom Wireless Solutions 12

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ASCOM SOLUTION FOR PATIENT MONITORING

Alarms and waveform images sent to mobile caregiversReduce alarm fatigue by applying preset filtering rulesReduce workflow interruptions by readily identifying alarm prioritiesMonitor patient status regardless of your location in the hospital

EmergencyDept. Laboratory Patient

MonitorNurse CallRadiology

Analyst & Investor Day, 30/10/2013 © Ascom Wireless Solutions 13

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UNDERSTANDING NURSES

Analyst & Investor Day, 30/10/2013 © Ascom Wireless Solutions 14

7 hours of walking for a nurse

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UNIFORM USER EXPERIENCE FOR ALL DEVICES

Analyst & Investor Day, 30/10/2013 © Ascom Wireless Solutions 15

Uniform behavior for both Ascom i62/d62 handset & smart devices– Same color coded messages to easily recognize critical patient events– Same distinctive alert tone patterns for audible priority recognition– Same 2-Way, interactive messaging with quick response menuEasy mix and match of devices based on user preferences

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CUSTOMER ROI IS OUR CORE FOCUS

146 bed regional hospital183 Nurses (FTEs)Average hourly rate $33.85 (rates vary by dept.)

Project payback 11.5 mos.

DepartmentHours

Saved/YearAnnual

Savings $

Med-Surg. Units 2652 $86,748

Skilled Nursing 1338 $47,754

Laboratory 1764 $33,154

Cardiopulmonary 730 $18,250

Obstetrics/Pediatrics 320 $12,800

Surgical Services 320 $11,200

Telephone Operator 730 $10,950

Facilities Mgmt. 347 $9,533

Environmental Svcs. 913 $9,125

Protective Services 420 $8,395

Clinical Tech. Svcs. 240 $7,200

Emergency Services 170 $6,813

Total Savings - $261,923Ascom creates positive ROI

in multiple departments

Analyst & Investor Day, 30/10/2013 © Ascom Wireless Solutions 17

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50,000 messages/day to mobile cliniciansReduced voice calls by 10% to departmental administratorsAscom Gateway for message delivery to GSM devicesReduced overhead paging for quieter healing environment

CHILDREN’S HOSPITAL OF PHILADELPHIACASE STUDY

“We needed a mission-critical communication system because we are dealing in life and death situations.”- Dr. Bryan Wolf, SVP & CIO

Analyst & Investor Day, 30/10/2013 © Ascom Wireless Solutions 18

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FRANKLIN SQUARE MEDICAL CENTERCASE STUDY

“We do not want the technology revolution to drive the human process, but instead let the human process drive the technology we use.”- Tony Gwiazdowski, Director, Clinical Engineering

Increased patient satisfaction scores from 50% to 69%Decreased response time 16% for patient callsDecreased voice calls/month 17% due to messaging implementationCapability to dispatch multiple response teams from Ascom handset

Analyst & Investor Day, 30/10/2013 © Ascom Wireless Solutions 19

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HERLEV HOSPITALCASE STUDY

Analyst & Investor Day, 30/10/2013 © Ascom Wireless Solutions 20

Utilize Job Agent for task managementManage 25,000 transport requests per monthReduced waiting time for surgical patientsIntegration with Hospital Information System and Radiology

“The Ascom integration provides us with information on over 25,000 transports per month to help us analyze where we have gaps, allowing us to optimize both the resources and tasks.”- Jorgen Andreasen, Transport coordinator

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EXECUTING ON OUR STRATEGY

Experts in healthcare workflow optimizationSolutions for every department in a hospitalContinued leadership in devicesDevice and technology agnostic

Analyst & Investor Day, 30/10/2013 © Ascom Wireless Solutions 21

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THANK YOU!

Analyst & Investor Day, 30/10/2013 © Ascom Wireless Solutions 22

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“Today, Apple is going

to reinvent the phone”

January 9th, 2007

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SHIFTING FOCUS

Mobile

Computing

User

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NETWORK IMPACT

Customer

Experience

All

Mobile Everything,

Everywhere

OTT

Data

Explosion

3G, 4G…

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Increasing Demands

New Technologies

Limit Disruption

OPERATOR CHALLENGES

BUILD

NETWORK

CAPACITY

MANAGE

CUSTOMER

EXPERIENCE

IMPROVE

OPERATIONAL

EFFICIENCY

*Adapted from McKinsey & Co. analysis of mobile operator challenges.

Manage Complexity

Migrate Services

Network Interaction

Real Apps, Real Devices

Reduce Churn

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MOBILE NETWORK OVERVIEW

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Accelerate VoLTE

Roll-Out

ASCOM EXAMPLES

BUILD

NETWORK

CAPACITY

MANAGE

CUSTOMER

EXPERIENCE

IMPROVE

OPERATIONAL

EFFICIENCY

Monitor LTE

Performance Understand iPhone

Experience

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Rolling out Voice Over LTE (VoLTE) network nationwide

High Quality of Experience requirements

Monitor and track KPIs prior to launch

ASCOM SOLUTION:

OPERATOR CHALLENGE:

Mobility testing

7x24 VoLTE performance monitoring

Automated data analysis and reporting

BUILD NETWORK CAPACITY

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Understand iPhone

subscriber experience

Maximize service revenue

Tune the network for iPhone

performance

ASCOM SOLUTION: OPERATOR CHALLENGE:

Integrated iPhone testing

Customized iPhone

performance analysis

Unique end to end mobile

network optimization solution

MANAGE CUSTOMER EXPERIENCE

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IR Day 2013 © Ascom CONFIDENTIAL

Provide subscribers with real time

LTE network performance status

Proactive coordination between

network operations and customer

care

ASCOM SOLUTION:

OPERATOR CHALLENGE:

Provides “early warning” of network outage

or degradation of service

Allow internal organizations to quickly

address network problems

Promotes fast response and corrective

action

IMPROVE OPERATIONAL EFFICIENCY

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A trusted partner to

delay CAPEX,

reduce OPEX and

maintain revenue

IMPROVE OPERATIONAL EFFICIENCY

MANAGE CUSTOMER EXPERIENCE

To meet subscriber consumption and

migration of legacy services

To ensure long term (no churn) relationship with

subscribers

To manage the complexity of new

technologies and multiple overlapping

networks

BUILD NETWORK CAPACITY

OUTLOOK AND WRAP UP

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THANK YOU


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