ascom annual results presentation 2012€¦ · 1. diligently and timely executed restructuring plan...

WELCOME TO THE ASCOM

MEDIA AND ANALYST CONFERENCE

2012 ANNUAL RESULTS

ASCOM

MISSION-CRITICAL WIRELESS COMMUNICATION

3 2012 Annual Results Conference, 20/03/2013 © Ascom Group

THE EXECUTIVE BOARD

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AGENDA 20 MARCH 2013 Business Review 2012 2012 Financial Statements Ascom Wireless Solutions Ascom Network Testing Outlook

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BUSINESS REVIEW 2012 FRITZ MUMENTHALER

The Wireless Solutions Division

achieved best EBITDA margin ever

gained additional market share

The Network Testing Division

successfully turned around its business

implemented a new organization with a CHF 20 million lower cost base

delivered strong second-half results

The former Security Communication Division

successfully divested according to plan

achieved a book gain in 2012

6

SIGNIFICANT ACHIEVEMENTS 2012

2012 Annual Results Conference, 20/03/2013 © Ascom Group

ASCOM WIRELESS SOLUTIONS

Strenghtened its global position in healthcare communication

acquired GE Nurse Call business

integrated Miratel in Finland

continued the strong growth in hospitals in North America - The Power Of One

World‘s largest manufacturer of professional cordless phones

Substantially strengthened position in retail business

won four out of five of the largest retail companies in UK


7

LEADING POSITION IN AN ATTRACTIVE INDUSTRY


8

LEADING POSITION IN AN ATTRACTIVE INDUSTRY

ASCOM NETWORK TESTING

Global #1 despite difficult market conditions

Strong footprint with all key players in the industry

mobile network operators

network equipment vendors

third party service providers

Leaner and meaner business primed to compete

more focused and agile organization; closer to customers

fixed costs reduced by CHF 20 million



Continued investments in R&D

CHF 50 million per year – expensed through P&L

11% of revenue – above market level

Ascom Wireless Solutions Division focused on

ruggedized, dual mode smart phone for the healthcare industry

next generation IP and wireless nurse call

software applications based on Unite

Ascom Network Testing Division focused on

new software platform for Benchmarking & Monitoring

TEMS Discovery Enterprise: a new product for Reporting & Analysis

9

AT THE FOREFRONT OF INNOVATION AND TECHNOLOGY


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2012 FINANCIAL STATEMENTS MARTIN ZWYSSIG

Ascom Group Revenue growth of 2.8%

EBITDA margin of 10.2% (incl. restructuring expenses of CHF 11.6 million)

and of 12.8% (before restructuring expenses)

Second half-year: EBITDA margin of 14.9%

Profit of CHF 20.9 million (in line with previous year)

Wireless Solutions

Revenue growth of 7.6%

Increased EBITDA margin of 16.2% (+ 1.2 percentage points)

H2/12: EBITDA margin of 17.3%

Network Testing

Revenue: strong rebound with revenue growth of 14.5% in H2 vs. H1

EBITDA margin of 5.4% (before restructuring expenses)

H2/12: EBITDA margin of 14.4% (before restructuring expenses)

11

SIGNIFICANT ACHIEVEMENTS IN 2012


12

INCOME STATEMENT: TURNAROUND IN H2/12 ACHIEVED


CHFm 2011 2012 Revenue 437.5 449.8

Gross profit 218.9 219.8

Gross margin (%) 50.0% 48.9%

Total functional costs (179.3) (187.1)

Amortization of intangible assets from acquisition (9.4) (11.3)

Other income/(expenses), net 10.4 2.0

EBIT 40.6 23.4

Financial income/(expenses), net (6.6) (4.7)

Income tax (3.4) (1.1)

Profit from continuing operations 30.6 17.6

Profit/(loss) from discontinued operations (7.5) 3.3

Group profit for the period 23.1 20.9

EBITDA 59.8 45.9

EBITDA margin (%) 13.7% 10.2%

13

GROWTH ANALYSIS: NT DECLINE STOPPED IN H2/12


Actual 2011

(in CHFm)

Organic growth

(in %)

FX translation

(in %)

Acquisition (in CHFm)

Actual 2012

(in CHFm)

Δ 2012/2011

(in %)

Wireless Solutions 276.6 2.6% 0.1% 13.9 297.7 7.6%

Network Testing 138.9 -8.1% 2.0% 0.0 130.4 -6.1%

Other 22.4 2.2% 0.0% -0.9 22.0 -1.8%

Total Ascom 437.5 -0.8% 0.7% 13.0 449.8 2.8%

14

SECOND HALF YEAR:


Ascom Group (CHFm) H1/2011 H2/2011 H1/2012 H2/2012

Revenue 213.4 224.1 213.4 236.4

EBIT 18.0 22.6 0.4 23.0

EBIT margin (%) 8.4% 10.1% 0.2% 9.7%

EBITDA 27.8 32.0 10.7 35.2

EBITDA margin (%) 13.0% 14.3% 5.0% 14.9%

Network Testing (CHFm) H1/2011 H2/2011 H1/2012 H2/2012

Revenue 70.3 68.6 60.8 69.6

EBIT -0.7 -7.6 -18.3 0.3

EBIT margin (%) -1.0% -11.1% -30.1% 0.4%

EBITDA 5.4 -2.0 -11.8 7.2

EBITDA margin (%) 7.7% -2.9% -19.4% 10.3%

DESPITE RESTRUCTURING EXPENSES BETTER THAN 2011

15

GROSS MARGIN: SIGNIFICANTLY IMPROVED ON HIGH LEVEL


Wireless Solutions (CHFm)

142.0

155.1

6.2

3.7

3.2

130.0

135.0

140.0

145.0

150.0

155.0

160.0

Gross profit 2011 Increase of gross profit thanks to

acquisitions

Volume increase Margin increase Gross profit 2012

16

GROSS MARGIN: IMPACTED BY RESTRUCTURING


Network Testing (CHFm)

69.9

61.6

-5.7

-4.2

1.6

50.0

55.0

60.0

65.0

70.0

75.0

Gross profit 2011 Restructuring costs impacting the gross

profit

Volume decrease Margin increase Gross profit 2012

17

TAX BRIDGE: PRUDENT CAPITALIZATION


5.2

1.1

3.7 -4.9

-2.1

-0.8

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Expected income tax

expenses 2012

Effect of expenses/

(income) taxed at lower rate

Net effect from tax loss carry

forwards

Net effect from deferred tax

Other effects Income tax expenses 2012

(CHFm)

OF TAX LOSS CARRY FORWARDS PAYS OFF

EARNINGS QUALITY:


CHFm 2011 2012

Group profit as reported 23.1 20.9

+ Restructuring expenses (NT) 0.0 +11.6

- Other income/(expenses), net -10.4 -2.0

+/- Profit/(loss) from discontinued operations +7.5 -3.3

Group profit before special items 20.2 27.2

2012 ABOVE PRIOR YEAR WITHOUT SPECIAL ITEMS

18

11.3

13.6

9.3

13.1

16.4

12.0

15.0

2.4

13.7

16.2

-3.5

10.2

5.4

12.8

-5.0

0.0

5.0

10.0

15.0

Wireless Solutions Network Testing ASCOM

2009 2010 2011 2012 2012 net of restructuring Guidance 2013

19

EBITDA AS A % OF REVENUE


Guidance 2013: 15.0% – 16.0%

20

BALANCE SHEET: STABLE DESPITE OF SECOM DIVESTMENT


31.12.2011 31.12.2012 CHFm % CHFm %

Intangible assets 215.0 42.4 235.5 45.4

Other non-current assets 40.8 8.1 44.6 8.6

Non-current assets 255.8 50.5 280.1 54.0 Cash and cash equivalents 73.3 14.4 63.1 12.1

Other current assets 164.5 32.5 175.9 33.9

Assets of disposal group classified as held for sale 13.2 2.6 0.0

Total assets 506.8 519.1 Shareholders’ equity 203.8 40.2 223.7 43.1

Non-current liabilities 60.4 11.9 146.4 28.2

Current liabilities 152.8 30.2 149.0 28.7

Liabilities of disposal group classified as held for sale 89.8 17.7 0.0 Total liabilities and shareholders’ equity 506.8 519.1

21

CASH FLOW: SECOM PREPAYMENTS SWAPPED FOR DEBT


73.3

-24.9

63.1

5.4 -64.1 -8.6 0.7

-6.6

87.9

-40.0

-20.0

0.0

20.0

40.0

60.0

80.0

100.0

Cash balance at 1.1.2012

Net cash flow from operating activities

Cash flow from

disposal of

businesses

Cash flow from

acquisition of

businesses

Cash balance at 31.12.2012

Operating CapEx

Net increase in

borrowings

Distribution of share

premium/ dividend

Other cash flow

items

22

EQUITY: EQUITY RATIO OF 32% IN THE TARGET RANGE


223.7

166.7

-75.7

18.7

0.0

50.0

100.0

150.0

200.0

250.0

Shareholders' equity as per 31.12.2012

Increase of net pension obligation according to IAS

19R

Deferred income tax effect Shareholders' equity as per 31.12.2012 after application

of IAS19R

(as per 31.12.2012 and pro-forma after the application of IAS 19R in CHFm)

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ASCOM WIRELESS SOLUTIONS CLAES ÖDMAN


1. Record EBITDA Margin of 16.2%

2. Shift to higher margin software and services

3. Gained market share

4. #1 position in nurse call

5. #1 position in global professional cordless telephony


24



#1 IN 2 OUT OF 3 PRODUCT LINES

MARKET LEADER IN NURSE CALL

MARKET LEADER IN CORDLESS ENTERPRISE TELEPHONY

25

MARKET LEADER IN AN ATTRACTIVE INDUSTRY


26


Smart device for the healthcare industry Dual mode

Ruggedized

Application for improved healthcare workflows

Next generation nurse call First global nurse call

IP based

Wireless nurse call


MEDICAL DEVICE

CERTIFICATION

NURSE CALL UNITE SOFTWARE MOBILITY SERVICES

27

ROBUST AND CLEAR STRATEGY GOING FORWARD


System integrator

Reseller

THE POWER OF ONE

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

28

STRONG CUSTOMER BASE TO LEVERAGE OFF


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

http://www.johnmuirhealth.com/index.php/index.html

http://www.orlandohealth.com/OrlandoHealth/index.aspx


1. Build on The Power Of One (mobility, nurse call,

and software) to gain healthcare market share

2. Extend geographical footprint

3. Continue to focus on operational efficiency

4. Continue to evaluate opportunities in healthcare


29

TARGETS FOR 2013


SOLID BASE TO GROW

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ASCOM NETWORK TESTING RIKARD LUNDQVIST

31


1. Diligently and timely executed restructuring plan resulting in CHF 20 million annualized savings

2. Implemented a new organization more focused on, and closer to the customers

3. Secured world’s largest benchmarking project

4. Maintained global #1 position in Test & Measurement

5. Delivered strong H2 results



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

32

MARKET LEADER IN AN ATTRACTIVE INDUSTRY


LTE LEADERSHIP VOICE OVER LTE (VoLTE) LEADERSHIP

BLIXT™ TECHNOLOGY

Leadership in next generation 4G broadband mobile networks

First testing of VoLTE on a live network

Dramatically changes how bandwidth is measured

33



34

ROBUST AND CLEAR STRATEGY GOING FORWARD


Addressing key operator challenges Grow network capacity

Increase operational efficiency

Deliver optimal customer experience

Meet operator need for independent authority on network performance

35

LEVERAGE INDUSTRY’S LARGEST INSTALLED BASE


http://www.o2.co.uk/home

http://online.vodafone.co.uk/dispatch/Portal/appmanager/vodafone/wrp;wrpsessionid=d2nPHyyJ6GxRvVlXGCJyFnxmY8XQgbJhskP8hr1SGznTJDykTcR3!-1398520326?_nfpb=true&_pageLabel=templateBlank&pageID=VIRTUAL_HOME

http://www.bharti.com/

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=2nswJYEnJBZObM&tbnid=QnoDFLBRErTiiM:&ved=0CAUQjRw&url=http://encontreoseuemprego.wordpress.com/2013/01/16/tim-brasil/&ei=ihNCUY7CEYHbPP6ugOgB&bvm=bv.43287494,d.ZWU&psig=AFQjCNGT5hwvklt6lazAb2dtFMmgIogWrQ&ust=1363371268886656

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=WRiu73Xneir5OM&tbnid=C_wauZnlO_KyUM:&ved=0CAUQjRw&url=http://www.telecomlead.com/telecom-services/china-telecom-q3-sales-up-16-to-72-billion-yuan/&ei=txNCUdmqN4b6PN-5gKAH&bvm=bv.43287494,d.ZWU&psig=AFQjCNHAYWPl_wkmgr3CQLjogaRIyTJAUA&ust=1363371315346315

36

TARGETS FOR 2013

1. Leverage new organization, new product platforms and lower cost basis for increased competitiveness & market share

2. Focus on innovative solutions to grow business with installed base

3. Capture growth opportunities in the emerging markets (Central America/South America, Middle East/Africa)

4. Continue to focus on operational efficiency



[ ]


OUTLOOK FRITZ MUMENTHALER

Focused on two businesses in the wireless industry Both market leader in their selected niche

Software and services

Global market presence and a large installed base support the growth potential

Megatrends support the growth strategy Aging population

Data explosion in mobile networks

38

A ROBUST AND CLEAR STRATEGY GOING FORWARD


Targets 2013* EBITDA margin of 15–16% at Group level

Growth of 5%

Mid term targets (2014/15)* EBITDA margin of 17–18% at Group level in 2015

Average growth of 5–10% in 2014/15

39

GUIDANCE – 2013, BUILDING ON THE SUCCESS OF 2012


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

Proposal to the Annual General Meeting of 10 April 2013:

Distribution of CHF 0.35 per share from capital contribution reserves

Total distribution of CHF 12.6 million corresponding to a payout ratio of 60.3%

Exempt from Swiss anticipatory tax

40

SHAREHOLDERS – HIGHER DIVIDEND PAYMENT


41

ASCOM – SET UP TO CREATE MORE VALUE


Market leader in an attractive industry with great potential

At the forefront of innovation and technology

Robust and clear strategy going forward

Track record of execution

Experienced and committed management team

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MISSION-CRITICAL WIRELESS COMMUNICATION

[ ]


GROUP CONTACT Ascom Holding AG Investor Relations T +41 31 999 11 11 Stettbachstrasse 6 F +41 44 823 13 21 CH-8600 Dübendorf [email protected]

mailto:[email protected]

44

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!

ascom annual results presentation 2012€¦ · 1. diligently and timely executed restructuring plan...

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