WELCOME TO THE ASCOM MEDIA AND ANALYST CONFERENCE …€¦ · NT targets to deliver profitability...

WELCOME TO THE ASCOM

MEDIA AND ANALYST CONFERENCE

2014 HALF-YEAR RESULTS

1

ASCOM

MISSION-CRITICAL WIRELESS COMMUNICATION

TRUSTED PARTNER FOR WIRELESS NETWORK INVESTMENT AND

MANAGEMENT

WORK-FLOW OPTIMIZATION IN HEALTHCARE

2

3

AGENDA 20 AUGUST 2014

Ascom Half-Year Media Conference 2014

[ ]

§  Review H1/2014 §  Financial Statements H1/2014 §  Outlook

4

STRONG H2 EXPECTED AFTER SLOW START IN H1/2014


Ascom Group

!  Slow start mainly due to fewer large projects and delays of project decisions

!  Positive book-to-bill ratio in both divisions resulting in build-up of order

backlog !  Based on backlog and healthy pipeline much stronger second half-year

expected

5

H2 WITH MUCH STRONGER EBITDA ANTICIPATED


Wireless Solutions Division !  Mixed business performance !  On-going investments in important growth initiatives such as Ascom Myco

and UNITE software suite !  WS anticipates stronger second half-year with a much stronger EBITDA

margin

Network Testing Division

!  Large orders received in H1/2013 could only be partially compensated !  Asia Pacific: new organization / investments in market recovery !  NT targets to deliver profitability for the full year 2014 in line with the

previous year

6 Ascom Half-Year Media Conference 2014

RECOVERY EXPECTED AFTER WEAK H1/2014

H1 BELOW EXPECTATIONS BUT MARKET POTENTIAL INTACT


WEAK TOP LINE BUT GOOD ORDER BACKLOG

! Overall we see neither major fundamental changes nor structural issues in our markets. The good potential in our markets was confirmed. ! Weaknesses in certain regions have been addressed. ! Historically Ascom has stronger H2 and December is key month.

DOUBLE-DIGIT EBITDA MARGIN DESPITE LOWER REVENUES

! EBITDA margin: 10.5% (including non-core one-offs) ! Group profit: CHF 8.2 million

HEALTHY BALANCE SHEET

! Net cash position of CHF 2.3 million ! Equity ratio of 48.0%

1.  Fewer projects over CHF 1 million, delay of some projects and performance below expectations mainly in the US lead to revenue decrease

2.  EBITDA margin of 10.9%

3.  Important strategic wins in Health Care in Norway, Netherlands and Sweden

4.  High order backlog and good project pipeline

5.  Much stronger EBITDA margin in H2 expected – following the seasonal pattern of previous years

ASCOM WIRELESS SOLUTIONS

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STRONG SECOND HALF-YEAR ANTICIPATED


!  Dedicated focus on growth initiatives

§  Ascom Myco as unique purpose-built smart device for healthcare

§  Increased investments into UNITE software product line

!  Bounce back in US §  Thorough external assessment confirms

attractive market potential §  New Managing Director appointed for US

!  Small acquisitions in Australia and Malaysia as first steps in growth markets expansion


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FURTHER INVESTMENTS IN GROWTH INITIATIVES


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CHALLENGING FIRST HALF YEAR

1.  Large orders received in H1/2013 could only partially be compensated

2.  Large US operators returning to seasonal purchasing pattern

3.  EMEA overall on track, but APAC and Latin America below expectations

4.  Stable gross margin, but overall lower profitability due to revenue decrease

5.  Buildup of order backlog during the first half and profitability for FY 2014 expected in line with the previous year


ASCOM NETWORK TESTING

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!  Focus on recovery in APAC §  Assessment confirms capability of Network

Testing to recover in APAC §  Appointment of new Managing Director §  Dedicated plan to recover implemented

!  Investments in growth initiatives: §  Development of Capacity Management §  Integrated solutions capabilities §  eContract Exchange B2B Simplex


WELL POSITIONED TO BOUNCE BACK IN H2/2014


BIANKA WILSON

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FINANCIAL STATEMENTS H1/2014


[ ]

ASCOM GROUP H1/2014 IN SUMMARY

Revenue CHF 202.7m

Gross margin 48.1%

Ascom Half-Year Media Conference 2014 13

EBITDA CHF 21.3m

10.5%

Group profit

CHF 8.2m

Total assets CHF 453.8m

Backlog

CHF 165.0m

NWC CHF

65.3m

Net cash

CHF 2.3m

Equity ratio 48.0%

Free CF (incl. M&A)

CHF 16.8m

Core business1) Other2)

H1/2013 H1/2014 H1/2013 H1/2014 Incoming orders 248.9 219.7 10.8 9.3 Revenue 214.8 193.4 10.3 9.3 Gross profit 111.5 97.6 0.6 - Gross margin 51.9% 50.5% 5.8% n/a EBIT 17.4 7.8 0.4 4.4 EBIT margin 8.1% 4.0% 3.9% 47.3% EBITDA 27.3 16.7 0.6 4.6 EBITDA margin 12.7% 8.6% 5.8% 49.5%

CORE BUSINESS FOCUS


1) Core business = Total Group minus non-core activities (segment “Other”) comprising real estate activities related to businesses disposed of in prior years 2) Other includes “Other income” of total CHF 4.6 million related to the divestment of real estate in Switzerland

(CHFm)

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WIRELESS SOLUTIONS H1/2014 PERFORMANCE OVERVIEW


§  Incoming orders CHF 161.9 million (H1/2013: CHF 171.9 million) §  Revenue of CHF 140.8 million (H1/2013: CHF 149.7 million) §  Inorganic contribution from the Integrated Wireless (AU) acquisition of 2.9% on

incoming orders and 2.3% on revenue §  Unfavorable FX translational impact of 1.9% on incoming orders and 2.2% on

revenue §  Backlog increase of CHF 22.9 million compared to year-end 2013 §  EBITDA margin of 10.9% (H1/2013: 14.0%)

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NETWORK TESTING H1/2014 PERFORMANCE OVERVIEW


§  Incoming orders CHF 57.9 million (H1/2013: CHF 77.1 million) §  Revenue of CHF 52.7 million (H1/2013: CHF 65.2 million) §  Unfavorable FX translational impact of 2.6% on incoming orders and 2.9% on

revenue §  Backlog increase of CHF 4.9 million compared to year-end 2013 §  EBITDA margin of 4.4% (H1/2013: 11.8%)

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CONTINUED BACKLOG BUILD


(CHFm)

30.6.2013 31.12.2013 30.6.2014

Wireless Solutions 113.5 102.6 125.5

Network Testing 44.9 34.5 39.4

Core business1) 158.4 137.1 164.9

Other 1.1 0.2 0.1

Ascom Group 159.5 137.3 165.0 1) Core business = Total Group minus non-core activities (segment “Other”) comprising real estate activities related to businesses disposed of in prior years

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EBITDA REFLECTS VOLUME DECREASE AND COST SAVINGS


[VALUE].0

15.4

-4.5 [VALUE] -[VALUE]

-[VALUE]

EBITDA H1/2013

Volume impact

Func. costs

M&A related

Others EBITDA H1/2014

Wireless Solutions

7.7

2.3

-7.0

2.2 -0.6

EBITDA H1/2013

Volume impact

Func. costs Other EBITDA H1/2014

Network Testing

(CHFm)

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EBITDA TO GROUP PROFIT RECONCILIATION


21.3

8.2

-[VALUE]

-[VALUE]

-[VALUE]

EBITDA H1/2014 Depreciation / amortization

Net financial expenses Income tax Group profit H1/2014

(CHFm)

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CASH DEVELOPMENT REMAINS STRONG


58.2 49.8

21.3

[VALUE] -[VALUE]

-[VALUE] 0.8 -[VALUE]

-13.7

-[VALUE] -2.7

Cash at 1.1.2014

EBITDA NWC Provision related effects

CapEx Acquisitions Interest and tax payments

Debt related cash flows

Dividend Other cash flows

Cash at 30.6.2014

(CHFm)

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NET CASH POSITION


(CHFm)

80.3 65.3

-40

0

40

80

120

31.12.2013 30.6.2014

Net working capital (NWC)

Trade receivables Inventories

Trade payables Customer prepayments

Total NWC

52% 48%

-80.0

-40.0

-

40.0

80.0

31.12.2013 30.6.2014

Net cash/debt and Equity ratio

Cash and equivalents Borrowings

Net cash/debt Equity ratio (in %)

SHAREHOLDERS’ EQUITY


246.4 234.6

217.8

8.2 -[VALUE]

-[VALUE] -[VALUE]

Balance at 31.12.2013

Group profit IAS 19, net of income tax

Dividend (share premium)

Other Balance at 30.6.2014

(CHFm)

FRITZ MUMENTHALER

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OUTLOOK


[ ]

[ ]



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THE POWER OF ONE –IMPROVING WORKFLOW MANAGEMENT


CUSTOMER

Pa#entSystems

CUSTOMER

UniteSo/ware

CUSTOMER

Mobility

CUSTOMER

Services

Systemintegrator

Reseller

CUSTOMER

Pa#entSystems UNITESo/ware Mobility

Services

§  Clinical Alarms – increased patient safety and efficiency

The right alarm goes to the right nurse with the right information

§  Clinical Information – better informed decisions EHR integration provides access to patient information and clinical data §  Workforce Management – optimized use of available resources Workforce overview makes it easier to put the right person on the right job and follow-up on efficiency and performance

ASCOM UNITE – THE CORE OF INTEGRATED WORKFLOW INTELLIGENCE

UniteToday CurrentRoadmap Mid-termPlan Long-termPlan

ASCOM UNITE

Mobility

Patient Monitor

Nurse Call

System Census Trends

Order Entry

System

Scheduling, Time

And Attendanc

e Bed

Placement (ADT)

Electronic Health

Records

Test Results

Pharmacy

Ventilator

IV Pump

Bed Alarm

ASCOM UNITE focus areas


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ASCOM MYCO – INTEGRATED WORKFLOW INTELLIGENCE IN THE PALM OF YOUR HAND


The combination of UNITE, Patient Systems and our new purpose-built smartphone Ascom Myco helps the caregiver to:

§  Respond faster at the point of care

§  Be more efficient in decision making

§  Spend more time bedside with patients

§  Be less exposed to alarm fatigue

§  Reduce operational cost

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ASCOM PATIENT SYSTEMS – DRIVING LEADERSHIP POSITION IN ELDERLY CARE


ASCOM teleCARE IP Always present. Always on. Always safe.

§  Ascom developed, bidirectional wireless technology §  Comprehensive set of hardwire & wireless devices §  Scalable from basic to high-end §  Embedded mobility interface for distributed alerts §  Released Q4/2013 to CE countries – expanding to US market 2014 addressing non-acute care segment

reddotdesignawardwinner2014

Customizable

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[ ]

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

LEVERAGING VOLTE LEADERSHIP


VoLTE

TEMS™ Capacity Manager

!  Understand IF, WHEN and WHERE networks will be congested !  Make intelligent investment decisions that reduce capital need

INNOVATIVE TECHNOLOGY MAKING A DIFFERENCE


Capacity limits When to expand

What specific network elements have reached their limits

TEMS CAPACITY MANAGER


Providing a single, easy to use web portal for storing, reporting and visualizing all the RAN’s service capacity information.

Enabling consistent optimization of soft capacity for WCDMA and LTE networks. Operators can use their current capacity resources up to their optimized limits before investing in CAPEX on new resources.

Delivering just-in-time capacity expansion capability because of its comprehensive approach to forecasting

CAPEX savings of up to 40%

Extremely short payback

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COMPLEX BILATERAL CONTRACTS MADE SIMPLE


New solution automates eContract Exchange between carriers §  Replaces expensive, time-consuming manual processes §  Provides user tools to monitor & measure contract performance Provides carriers cost savings & interconnect efficiencies: §  Reduces risk, legal issues due to data errors & ambiguities §  Enables stakeholders to collaborate on contracts (on both sides) §  Validates data, e.g. dial codes, pricing, charges, volumes in real time §  Helps carriers reduce resources allocated to contract management by 50% B2BSimpleX: a significant market opportunity §  First to market with complete ‘all-in-one’ solution §  Carrier partners, e.g. Deutsche Telekom, TeliaSonera §  Multiple pricing & service levels for entire carrier market §  Very promising growth rate and ROI

STARTING POINT !Ascom historically has a stronger second half-year !High order backlog and strong project pipeline in both divisions !Tight cost management in place !Strengthened management team with appointment of new key people

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OUTLOOK FY 2014


TWO IMPORTANT ORDERS ALREADY RECEIVED IN H2/2014 §  Wireless Solutions wins CHF 4.7 million order from OEM customer for

DECT wireless network solution and handsets.

§  Network Testing receives a lower single digit CHF million order from Swisscom for products and solutions to expand, improve, and continously monitor the performance of its mobile network.

35

OUTLOOK


Targets 2014* for the Core Business

§  Revenue at previous year’s level

§  EBITDA margin in the range of 14–16%

36

OUTLOOK


* Outlook assumes a steady economical environment and at least stable currency relations.

Net Profit 2014*

§  Ascom anticipates net profit to be at around the previous year’s level

(2013: CHF 36.9 million)

Ascom Holding AG

Corp. Communications / IR Tel: + 41 41 544 78 00 Zugerstrasse 32 Fax: + 41 41 761 97 25 6340 Baar [email protected]

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GROUP CONTACT


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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.

THANK YOU

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WELCOME TO THE ASCOM MEDIA AND ANALYST CONFERENCE …€¦ · NT targets to deliver profitability...

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