Download - Ascom Half-Year Results Presentation 2013 Investigation, TEMS Pocket Reporting & Analysis TEMS Discovery, TEMS Visualization Benchmarking & Monitoring TEMS Automatic, TEMS Symphony

WELCOME TO THE ASCOM

MEDIA AND ANALYST CONFERENCE

2013 HALF-YEAR RESULTS

ASCOM

MISSION-CRITICAL WIRELESS COMMUNICATION

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AGENDA 22 AUGUST 2013 Review H1/2013 Financial Statements H1/2013 Outlook

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4 2013 Half-Year Results Conference, 22/08/2013 © Ascom Group

REVIEW H1/2013 FRITZ MUMENTHALER

The Ascom Group

recorded strong increase in incoming orders and good growth in revenue achieved substantial hike in terms of profitability generated free cash flow of CHF 30.5m and strengthened equity ratio to 42.1%

The Wireless Solutions Division

delivered continuous stable business development at high profitability further strengthened its leadership position in the healthcare segment

The Network Testing Division confirmed turnaround; increased incoming orders and revenue significantly; reached double-

digit EBITDA margin further strengthened its leadership position as independent auditor of network performance


ASCOM PERFORMED WELL IN FIRST HALF-YEAR 2013

ASCOM GROUP – STRONG FIRST HALF-YEAR FIGURES

1 SIGNIFICANT INCREASE IN ORDER INTAKE incoming orders +19.5% and revenue +5.5%

3 BALANCE SHEET FURTHER SOLIDIFIED Repayment of loans in a net amount of CHF 27.9m Reduction of net debt to CHF 21.8m Reduction of net working capital by CHF 25.6m Strenghtened equity ratio to 42.1%

2 SUBSTANTIAL HIKE IN PROFITABILITY EBITDA increased by 86.0% to CHF 27.9m Double-digit EBITDA margin of 12.4% Group profit almost tripled to CHF 14.5m


INCOMING ORDERS H1/13

Group +19.5%

Wireless Solutions +12.7%

Network Testing +44.4%

Order intake reflects the market‘s view of Ascom

Strong demand for Ascom products, solutions and services from customers Convincing value proposition and sales organization Win against aggressive competition

Good basis for revenue development over the coming months

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REMARKABLE INCREASE OF INCOMING ORDERS

2013 Half-Year Results Conference, 22/08/2013 © Ascom Group

ASCOM WIRELESS SOLUTIONS

1. Good revenue growth of 5.8% and strong increase in incoming orders by 12.7%

2. Continuous high EBITDA margin of 14.0%

3. Important customer wins in the healthcare segment against aggressive competition

4. On track with strategic and operational goals set for FY 2013


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STABLE DEVELOPMENT ON HIGH PROFITABILITY LEVEL



Further expanded its global position in healthcare communication achieved breakthrough in the UK healthcare market won important hospital project in Germany

Patient Systems performing above plan

Strong development in the UK and the D-A-CH region important customer wins also in other key segments

such as retail, industry and secure establishments

Enhanced divisional organization by setting up three global product lines: Mobility, Patient Systems and Unite Solutions


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LEADERSHIP IN HEALTHCARE MARKET FURTHER IMPROVED


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TURNAROUND CONFIRMED

1. Remarkable growth in incoming orders +44.4%

2. Bounce back to revenue growth +7.2%

3. Substantial improvement in profitability

EBITDA up to CHF 7.7m

Double-digit EBITDA margin of 11.8%

4. Improved organizational performance combined with normalization of market conditions resulted in strong growth in the Americas and EMEA regions


ASCOM NETWORK TESTING

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Important milestones achieved to become the mobile industry’s independent authority for validating network performance large orders from leading operators in the US major order wins from large customers in Europe

and Middle East Systems & Solutions secured EUR 10m order

Bounce back in Benchmarking & Monitoring based on a new platform

Built leading position in testing for VoLTE


GLOBAL LEADER IN AUDITING NETWORK PERFORMANCE


Continued investments in R&D

CHF 24.0 million in H1 2013 10.7% of revenue – above market level

Ascom Wireless Solutions Division focused on

Integrated solutions to improve workflow New platform for the next generation healthcare mobile device

Ascom Network Testing Division focused on

Software platform up-grade for Benchmarking & Monitoring Additional key functionalities such as support for VoLTE Blixt technology for economic throughput measurement testing

AT THE FOREFRONT OF INNOVATION AND TECHNOLOGY

2013 Half-Year Results Conference, 22/08/2013 © Ascom Group 12

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FINANCIAL STATEMENTS H1/2013 MARTIN ZWYSSIG

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WIRELESS SOLUTIONS: KPI‘S


Revenue CHF149.7m Functional

costs

CHF55.2m Gross margin

50.5%

EBITDA CHF21.0m

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NETWORK TESTING: KPI‘S


Revenue CHF65.2m

Functional costs

CHF28.1m

Gross margin

55.7%

EBITDA CHF7.7m

CHFm H1/2012 H1/2013 Revenue 213.4 225.1 Gross profit 102.3 112.1 Gross margin (%) 47.9% 49.8% Total functional costs (92.7) (89.8) Amortization of intangible assets from acquisition (5.3) (6.0) Other income/(expenses), net 0.4 1.5 EBIT 4.7 17.8 Financial income/(expenses), net (2.2) (1.5) Income tax (3.4) (1.8) Profit/(loss) from continuing operations (0.9) 14.5 Profit from discontinued operations 6.1 - Group profit for the period 5.2 14.5 EBITDA 15.0 27.9 EBITDA (%) 7.0% 12.4%

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CONSOLIDATED INCOME STATEMENT


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CONSOLIDATED 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

CHFm H1/2012 H2/2013

Net cash flow from operating activities (9.7) 32.2

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

Free cash flow (96.8) 30.5

Net cash flow from financing activities 78.9 (38.8)

CHFm 31.12.2012 30.6.2013

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

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CONSOLIDATED STATEMENT OF CASH FLOWS


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KEY FIGURES


CHFm H1/2012 H1/2013 change in % Incoming orders 217.4 259.7 19.5 Revenue 213.4 225.1 5.5 Gross profit 102.3 112.1 9.6 Gross margin (%) 47.9% 49.8% 1.9-p Functional costs (92.7) (89.8) (3.1) EBIT 4.7 17.8 278.7 EBIT (%) 2.2% 7.9% 5.7-p EBITDA 15.0 27.9 86.0 EBITDA (%) 7.0% 12.4% 5.4-p Group profit for the period 5.2 14.5 178.8

Free cash flow (96.8) 30.5 n/a Equity ratio (as per end of the period) (%) 32.0% 42.1% 10.1-p

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OUTLOOK FRITZ MUMENTHALER

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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 System Unite Software Mobility

Services


THE POWER OF ONE – IMPROVING WORKFLOW MANAGEMENT

http://www.mitel.com/jsp/index.jsp

NEXT GENERATION HEALTHCARE SMART DEVICE

Made for professional use

Ruggedized

Endures any shift planMulti Radio

Improved Workflows

23Investor Presentation, January 2014 © Ascom Group

Source: www.rfclipart.com

Easy, interactive message handling

Withstand water splashes

Withstands disinfection

Robust construction

Charging concept

Alarming button

Remote software update

Professional clip options

Easy replaceable battery

Long life cycles

Repair services

PURPOSE BUILT FEATURES MAKE THE DIFFERENCE


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THE POWER OF ONE – MEETING OPERATOR’S NEEDS

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


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

OPPORTUNITY CYCLE NETWORK TESTING


Blixt™ – patent-pending technology

Mobile operators can now test capacity using 90% less bandwidth Significantly reduces the time and cost to measure available bandwidth Operators can test without degrading service to their customers

Little-to-no user impact reduce testing costs

AT THE FOREFRONT OF INNOVATION AND TECHNOLOGY


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GROUP

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 balance sheet – with a strong focus on net working capital

A ROBUST AND CLEAR STRATEGY BUILT ON 3 PILLARS


NEW HEADOFFICE: ZUGERSTRASSE 32, BAAR (AS OF 1 NOVEMBER 2013)

2013 Half-Year Results Conference, 22/08/2013 © Ascom Group 31

Targets 2013

January 2011 mid-term target of 14–15% EBITDA margin for 2013 announced

very confident to achieve these goals and also the targeted growth of 5%

March 2013: EBITDA margin target for 2013 further increased to 15–16%

fair chance to achieve even this ambitious target

- due to the traditionally stronger second half-year for Ascom

- assumption that Network Testing continues to improve profitability

Mid term targets (2014/15)

EBITDA margin of 17–18% at Group level in 2015

Average growth of 5–10% in 2014/15

OUTLOOK – GUIDANCE CONFIRMED*


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

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ASCOM – AN ATTRACTIVE INVESTMENT CASE


Market leader in an attractive industry with great potential

Robust and clear strategy going forward

At the forefront of innovation and technology

Strong track record of execution

Experienced and committed management team

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MISSION-CRITICAL WIRELESS COMMUNICATION

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GROUP CONTACT Ascom Holding AG Group Communications T +41 44 823 13 69 Stettbachstrasse 6 F +41 44 823 13 21 CH-8600 Dübendorf [email protected]

mailto:[email protected]

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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!