agenda 20 august 2014 - integrated workflow intelligence · agenda 20 august 2014 ... tems...

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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

6Ascom 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

8

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


9

FURTHER INVESTMENTS IN GROWTH INITIATIVES


10

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

11

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

12

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

NWCCHF

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 years2) Other includes “Other income” of total CHF 4.6 million related to the divestment of real estate in Switzerland

(CHFm)

15

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%)

16

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%)

17

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


21.0

15.4

-4.5

1.7 -1.3

-1.5

EBITDAH1/2013

Volumeimpact

Func.costs

M&Arelated

Others EBITDAH1/2014

Wireless Solutions

7.7

2.3

-7.0

2.2

-0.6

EBITDAH1/2013

Volumeimpact

Func. costs Other EBITDAH1/2014

Network Testing

(CHFm)

19

EBITDA TO GROUP PROFIT RECONCILIATION


21.3

8.2

- 9.1

- 2.6

- 1.4

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

15.0 - 5.0

- 6.1 0.8 - 4.0

-13.7

- 14.0

-2.7

Cash at1.1.2014

EBITDA NWC Provisionrelatedeffects

CapEx Acquisitions Interest andtax payments

Debt relatedcash flows

Dividend Other cashflows

Cash at30.6.2014

(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


246.4234.6

217.8

8.2-20.0

-14.0

-2.8

Balance at31.12.2013

Group profit IAS 19, net ofincome tax

Dividend (sharepremium)

Other Balance at30.6.2014

(CHFm)

FRITZ MUMENTHALER

23

OUTLOOK


[ ]

[ ]



25

THE POWER OF ONE –IMPROVING WORKFLOW MANAGEMENT


C U S T O M E R

Patient Systems

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

C:/gcm/master-usa/en-us/home/index.htm

C:/gcm/master-usa/en-us/home/index.htm

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

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

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

Unite Today Current Roadmap Mid-term Plan Long-term Plan

ASCOM

UNITE

Mobility

Patient

Monitor

Nurse

Call

System Census

Trends

Order

Entry

System

Schedulin

g, Time

And

Attendanc

eBed

Placement

(ADT)

Electroni

c Health

Records

Test

Results

Pharmacy

Ventilator

IV Pump

Bed

Alarm

ASCOM UNITE focus areas


http://www.sxc.hu/browse.phtml?f=download&id=1239215&redirect=photo

http://www.sxc.hu/browse.phtml?f=download&id=1239215&redirect=photo

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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

reddot design award winner 2014

Customizable

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[ ]

Trial Roll-out Optimization Operation

Test & MeasurementsTEMS Investigation, TEMS Pocket

Reporting & AnalysisTEMS Discovery, TEMS Visualization

Benchmarking & MonitoringTEMS 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

32

33

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]

37

GROUP CONTACT


[ ]

mailto:[email protected]

38

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.

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