Half-Year Media Conference 2018 - Ascom · HALF -YEAR MEDIA CONFERENCE | 16 AUGUST | ©2018 ASCOM....

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16 August 2018

Half-Year Media Conference 2018

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LEGAL DISCLAIMER

HALF-YEAR MEDIA CONFERENCE | 16 AUGUST | ©2018 ASCOM2

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.

Financial ReviewAnette Weber, CFO

Business ReviewHolger Cordes, CEO

Erasmus MC – a successful implementation of the Ascom Healthcare PlatformSimon Vermeer, CIO Erasmus MC Olaf Hendriks, Managing Director Ascom Benelux

Outlook & GuidanceHolger Cordes, CEO

Q&A


Agenda

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Anette Weber, CFO

Financial Review

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First half-year 2018 results


We look back on a challenging and eventful first half-year 2018. Many milestones have been reached in order to execute our strategy.

Incoming orders: Increase of 7.2% to CHF 169.3m (+2.4% at constant currencies)

Order backlog CHF 164.0m (H1/2017: CHF 136.8m)

Net Revenue: Increase of 2.6% to CHF 146.9m (-1.6% at constant currencies)

EBITDA margin: 6.5% (H1/2017: 9.7%), declined in first half-year due to investments

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Good revenue growth in Healthcare as well as in Software and Services


Healthcare grew by 9.0% (4.6% at constant currencies)‒ Healthcare business in Europe increased by 19.1% (11.4% at constant currencies)‒ Strong performance in particular in the Benelux and Nordics

Good performance in Software and Services with growth of 8.0% (+3.1% at constant currencies)

Decrease in Enterprise business and OEM ‒ Delay of projects in Enterprise‒ Cyclical effect of OEM business

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Further investments into the future of Ascom


Innovation is an important success driver to set new industry standards and increased workflow productivity in both the healthcare and enterprise sectors.

R&D expenses increased by about 20% to CHF 16.5m (PY: CHF 13.8m), representing a share of revenue of 11.2% (PY: 9.6%)

Expenses for marketing and sales increased to strengthen sales performance

Total functional costs increased to CHF 66.4m (PY: CHF 60.8m)

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Summary of H1 2018 vs H1 2017 financial results

H1 2017 H1 2018 Variance(in CC)1

Variance(in AC)2

Incoming orders 158.0 169.3 2.4% 7.2%

Net revenue 143.2 146.9 -1.6% 2.6%

Gross profit 71.0 70.8 -3.4% -0.3%

Gross profit % 49.6% 48.2%

EBITDA 13.9 9.6 -33.1% -30.9%

EBITDA % 9.7% 6.5%

EBIT 9.4 3.6 -61.7% -61.7%

EBIT % 6.6% 2.5%

Notes: 1 constant currencies; 2 actual currencies


CHFm,@ actual currencies

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Significant improvement of Software and Service Revenue

+2.6%

146.9

H2 2017 H1 2018

154.4

H2 2016H1 2016

166.6

H1 2017

143.2146.1

Revenue from Software

Revenue from Hardware

Revenue from Services


+8.0%

H1 2018H2 2017

77.7

H1 2017

63.6

H2 2016

66.9

H1 2016

64.0 68.7

2016 numbers are pro-forma numbers and equal to the Group results adjusted for the former division Network Testing

Ascom Total Revenue

Software and Services Revenue

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CHFm, @ actual currencies

HealthcareIndustry

Others3

OEM2

Hotel & RetailSecure establishm.

63.5%10.2%

3.2%5.4%

8.0%

9.7%2018

146.9

4.5%

59.8%

10.7%

6.9%

12.6%

5.5%

2017

143.2

Notes: 1 Rest of Europe: UK & Ireland, South Europe and Central Eastern Europe2 OEM Original Equipment Manufacturer3 Incl. Financial services, Telecoms & Providers, Public sectors (e.g. schools)


Net revenue share development H1 2018 vs H1 2017 – Customer segment

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Balance sheet H1 2018

30.06.2017 31.12.2017 30.06.2018

Cash 36.2 30.3 25.4

Borrowings 25.1 18.0 24.0

Net cash 11.1 12.3 1.4

NWC 42.2 68.8 56.2

Total assets 212.9 229.6 211.7

Total equity 60.0 83.1 67.4

Total equity % 28.2% 36.2% 31.8%


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Cash Development H1 2018

30.3

25.4

14.46.0

Cash and cash equivalents at the beginning

of Jan’18

Proceeds from borrowings

Operating CF

-5.3

CapEx

-3.0

-16.2

Contingent purchase

payment related to the acquisition of UMS in 2016

Dividends

-0.8

Other CFs Cash and cash equivalents at

the end of Jun’18

-4.9


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Holger Cordes, CEO

Business Review

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Unlocking the Power of Digital Clinical Information

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An unmatched platform to let clinical information flow across systems, devices and points of care implemented in Erasmus MC

The Ascom Healthcare Platform

Integrate. Orchestrate. Enable. Patient information is

digitalizing… But data is uncoordinated

and held in siloes Hence workflows remain

analogue Ascom integrates digital

information, orchestrates resources and enables mobile workflows

One vendor – one answer!

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Key Achievements in H1/2018

HALF-YEAR MEDIA CONFERENCE | 16 AUGUST | ©2018 ASCOM

Increase of Incoming

Orders and Backlog

Good growth in Software and Service

businessSignificant growth in

Healthcare, with double

digit growth in EuropeContinued

release of innovation

Successful go-lives of reference projects

North America stabilizing

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Major wins in all geographies


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Ascom Healthcare Platform successfully implemented in Erasmus MC

Erasmus MC, Rotterdam, is the largest University medical center in the Netherlands

Customer vision to create a “silent hospital” leveraging technology to drive workflows

Integration of the entire hospital onto the Ascom Healthcare Platform connected to Ascom Myco 2 smart devices

Encouraging customer feedback as goals were reached in a demanding project

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Leading Dutch hospital selects Ascom Healthcare Platform for its new facilities

Amphia is a leading hospital based in Breda (Netherlands), and is building new facilities to be opened in 2019

Ascom Healthcare Platform selected for comprehensive integration of alarm management, device connectivity and workflow orchestration

Ascom Digistat Connect to integrate patient monitors into smart mobility

https://www.bing.com/images/search?view=detailV2&ccid=leLfVv%2bp&id=9D584351B7C78B9E1A7D8451AB29A61A57BD06D1&thid=OIP.leLfVv-pg1DDy9AeXXP-GAEsBn&q=amphia&simid=608005025606206110&selectedIndex=7

https://www.bing.com/images/search?view=detailV2&ccid=leLfVv%2bp&id=9D584351B7C78B9E1A7D8451AB29A61A57BD06D1&thid=OIP.leLfVv-pg1DDy9AeXXP-GAEsBn&q=amphia&simid=608005025606206110&selectedIndex=7

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North America stabilizing

Analysis Market growth /

segments Portfolio Go-to market

(channel conflicts / sales performance)

Actions Strengthening of US

Management More focused sales

structure Accelerated

strategic partnerships

Current status Double digit growth

in Software Single digit growth

in Mobility & Services

Still challenges in Patient Systems

Outlook Several strategic

and operational measures implemented

Stronger H2 expected

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Professional Services – Making good progress


Increased focus

Sengkang GH

Successful go-live in July for newest Singapore

flagship hospitalCompetence development

Standard project framework implementedIncreased training hours Global roll-out of Digistat

Double-digit growth

Professional Service achieved double-digit growth compared to

prior year

Clear focus

Improvements on project execution

Organizational split between professional services and customer

care

Erasmus MC

Successful go-live of largest university hospital

in the Netherlands

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2018 2019

22

We have a strong pipeline of innovative products to set new industry standards


Telligence 5.1

Myco 2 DECT/Black

Unite Windows

Server

Unite Axess Client

Digistat Smart Central/Mobile

Digistat ICU & Surgery

App Suite

teleCARE IP 11.0

Myco 3

Unite TaskMinder

Unite Collaborate

Telligence 6.0

Unite Analyze

Device Interfacing Nurse Call

*Position above may not reflect actual release dates

Unite Connect for Clinical Systems

Elderly Care teleCARE IP

12.0

2020

IP Elderly Care

PlatformCDAS i63

VoWiFiUnite

AlertTrac

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Key Ascom 2018 innovations


Ascom Myco 2 – with DECT

Digistat Vitals OCR

IP Elderly Care Platform CDAS (Distributed Alarm System w/Confirmation)

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Ascom Myco 3 further enhances the Ascom Healthcare Platform

A clinical communication device must be much more than a phone.

Streamlines care coordination and information management

Supported by a powerful suite of clinical software and applications

Facilitates better patient-centered care

IntegrationsNurse call

Patient monitor

Infusionpump

Lab

Patient records

…

Applications

Assignments

Reporting

Alertdashboard

Unite Collaborate

& Collaborate

3rd partyApps

DigistatMobile

Enabled by The Ascom Healthcare Platform

Care team members

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Ascom and Dräger showcasing clinical alarm management in East Asia

Integrate Orchestrate

EnableDräger solutions and

Ascom Healthcare Platform

Enhanced patient safety

Care staff can dedicate more time

to the patients

Streamlining clinical

workflows

Less time-consuming care coordination

Improving quality of care

Better visibility of healthcare data from

multiple sources

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Ascom and Stryker enter partnership in North America to increase patient safety

Mobile alerts to staff

Reduce risk of patient falls

Integration of Ascom Unite

Mobilization of Stryker’s iBed

Wireless Smartbedalerting

Enhanced patient safety

Automatic remote monitoring of bed

status

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Simon Vermeer, Chief Information Officer Erasmus Medical Center

Erasmus MC – a successful implementation of the Ascom Healthcare Platform

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Simon Vermeer

Introduction

Simon VermeerChief Information Officer

Erasmus Medical CenterRotterdam, The Netherlands

Scope of the project

Phasing of the project

Complexity (probably the most complex and most innovative worldwide)

Mission: Erasmus MC is committed to a healthy population and excellence in healthcare through research and education

16.500 employees (top 20 NL employer)

4.500 medical students

Turnover EUR 1.7 billion (2017)

New hospital accommodation – May 18th 2018(Opening September 6th 2018)

207.000 sqm

700 beds, all medium and intensive care

22 OR’s / 4 intervention rooms

12 radiotherapy bunkers

15.000 sqm laboratoriesHALF-YEAR MEDIA CONFERENCE | 16 AUGUST | ©2018 ASCOM29

Erasmus MC

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Building: ‘Healing is leading’: a stress reducing environment

Process: optimal patient logistics & central comfortable waiting rooms

Patient: single-bed patient rooms: privacy & more control & support for the patient

Towards a Real Time Healthcare System

‒ Intelligent operations

‒ Real-Time analytics

‒ Real-Time orchestration

Vision

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The MICIS project

Scope of the project

Phasing of the project

Complexity (probably the most complex and most innovative worldwide)

Medical Integrated Communication Information System

Connecting the new building, new processes & new technology around patient:- Patient monitoring

- Communication patient - medical staff; between medical staff; patient - outside world

- Patient services

Realises the basis for the future Real Time Healthcare System


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Learnings

Complexity!

n

Complexity!

Partnership with all parties involved is key

Matching expectations and attitudes – shift from supplier to system integrator

Innovation and integration simultaneously is a challenge:- New solutions- New business partner(s)- New building- New processes- New organization


Is there many interest from other Dutch/European hospitals?

What are the next steps Erasmus is working on

Ascom is long term supplier to Erasmus MC

Transformation of Ascom from supplier to system integrator partly took place during our project

Challenging ride, strong relationship on C-level necessary

Result is a very successful go live and a stable MICIS since then

End users trust MICIS and are specifically happy with the Myco


Partnership with Ascom

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Towards a Real Time Health Care System:

‒ Location and condition sensing technologies

‒ Early Warning System

‒ Smart beds

‒ Trace and tracking

‒Wayfinding

Other Dutch hospitals are interested: Erasmus MC is willing to act as a reference customer

Build upon our established partnership with Ascom

Next steps

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Holger Cordes, CEO

Outlook & Guidance

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We are on a strategic pathway to become a best-in-class Healthcare ICT and mobile workflow solutions provider

Unite Medical Solutions (UMS) acquired

Focus on Healthcare

2015 2017 2020

Transformation towards a solution provider

Mid-term Guidance 2020

Focus on Healthcare with higher share of Software solutions

2016

Acceleration in strategy execution

2018

Strategic growth opportunities

New partnersH1/18: Double digit

growth with partners

New solutions

H1/18: Single digit growth with

Software

New servicesH1/18: Double digit

growth in Professional

Services

New marketsH1/18: First larger projects in CEE

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Why we see a strong second-half 2018


Strategic alliances show

additional potential

Strong order backlog and

pipelinePositive impact

from successful reference projectsRecovery in

North America

Industry seasonality

New offering (e.g. Myco 3, Elderly Care

Platform)

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Guidance 2018 confirmed

Revenue growth expected at 3–6% forfull-year 2018*

EBITDA margin 2018 expected to be in line with prior year, up to around 15%*

* at constant currencies and given a stable economic development

38HALF-YEAR MEDIA CONFERENCE | 16 AUGUST | ©2018 ASCOMHALF-YEAR MEDIA CONFERENCE | 16 AUGUST | ©2018 ASCOM

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Thank you

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8 November 2018 – Zurich, Restaurant Metropol

Next Event – Ascom Investor Day 2018

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