Ascom Holding Ag · SIX:ASCN

Ascom — H1 2013 Earnings Presentation

37 slides from Ascom's earnings presentation, Aug 22, 2013

  1. Slide 1: Welcome to the Ascom Media and Analyst Conference 2013 Half-Year Results

    WELCOME TO THE ASCOM MEDIA AND ANALYST CONFERENCE 2013 HALF-YEAR RESULTS

  2. Slide 2: Ascom: Mission-Critical Wireless Communication

    ASCOM MISSION-CRITICAL WIRELESS COMMUNICATION

  3. Slide 3: Agenda 22 August 2013

    [ ] AGENDA 22 AUGUST 2013  Review H1/2013  Financial Statements H1/2013  Outlook

  4. Slide 4: Review H1/2013

    [ ] REVIEW H1/2013 FRITZ MUMENTHALER 2013 Half-Year Results Conference, 22/08/2013 © Ascom Group 4

  5. Slide 5: Ascom performed well in first half-year 2013

    ASCOM PERFORMED WELL IN FIRST HALF-YEAR 2013 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 

  6. Slide 6: Ascom Group – strong first half-year figures

    ASCOM GROUP – STRONG FIRST HALF-YEAR FIGURES 1 SIGNIFICANT INCREASE IN ORDER INTAKE  incoming orders +19.5% and revenue +5.5% 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 3 BALANCE SHEET

  7. Slide 7: Remarkable increase of incoming orders

    REMARKABLE INCREASE OF INCOMING ORDERS 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

  8. Slide 8: Ascom Wireless Solutions: stable development on high profitability level

    STABLE DEVELOPMENT ON HIGH PROFITABILITY LEVEL ASCOM ASCOMWIRELESS WIRELESSSOLUTIONS 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

  9. Slide 9: Leadership in healthcare market further improved

    LEADERSHIP IN HEALTHCARE MARKET FURTHER IMPROVED ASCOM ASCOM WIRELESS SOLUTIONS WIRELESS SOLUTIONS  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 pla

  10. Slide 10: Ascom Network Testing: turnaround confirmed

    TURNAROUND CONFIRMED ASCOM NETWORK TESTING 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 normalizatio

  11. Slide 11: Global leader in auditing network performance

    GLOBAL LEADER IN AUDITING NETWORK PERFORMANCE ASCOM NETWORK TESTING  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 Ea

  12. Slide 12: At the forefront of innovation and technology

    AT THE FOREFRONT OF INNOVATION AND TECHNOLOGY 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 Asc

  13. Slide 13: Financial Statements H1/2013

    [ ] FINANCIAL STATEMENTS H1/2013 MARTIN ZWYSSIG 2013 Half-Year Results Conference, 22/08/2013 © Ascom Group 13

  14. Slide 14: Wireless Solutions: KPIs

    WIRELESS SOLUTIONS: KPI‘S Revenue 149.7m CHF Functional costs EBITDA 55.2m CHF CHF 21.0m Gross margin 50.5% 2013 Half-Year Results Conference, 22/08/2013 © Ascom Group 14

  15. Slide 15: Network Testing: KPIs

    NETWORK TESTING: KPI‘S Gross Revenue margin 65.2m CHF 55.7% EBITDA Functional 7.7m CHF costs CHF 28.1m 2013 Half-Year Results Conference, 22/08/2013 © Ascom Group 15

  16. Slide 16: Consolidated income statement

    CONSOLIDATED INCOME STATEMENT 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/(expens

  17. Slide 17: Consolidated balance sheet

    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

  18. Slide 18: Consolidated statement of cash flows

    CONSOLIDATED STATEMENT OF CASH FLOWS 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

  19. Slide 19: Key figures

    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 Gr

  20. Slide 20: Outlook

    [ ] OUTLOOK FRITZ MUMENTHALER 2013 Half-Year Results Conference, 22/08/2013 © Ascom Group 20

  21. Slide 21: Ascom Wireless Solutions

    [ ] ASCOM WIRELESS SOLUTIONS 2013 Half-Year Results Conference, 22/08/2013 © Ascom Group 21

  22. Slide 22: The power of one – improving workflow management

    THE POWER OF ONE – IMPROVING WORKFLOW MANAGEMENT Patient System Unite Software Mobility Services CUSTOMER Patient System Mobility Unite Software Services System integrator Reseller CUSTOMER CUSTOMER CUSTOMER CUSTOMER 2013 Half-Year Results Conference, 22/08/2013 © Ascom Group 22

  23. Slide 23: Next generation healthcare smart device

    NEXT GENERATION HEALTHCARE SMART DEVICE Made for professional use Improved Workflows Ruggedized Endures any shift plan Multi Radio Source: www.rfclipart.com Investor Presentation, January 2014 © Ascom Group 23

  24. Slide 24: Purpose built features make the difference

    PURPOSE BUILT FEATURES MAKE THE DIFFERENCE Easy, interactive message handling Alarming button Withstand water splashes Remote software update Withstands disinfection Professional clip options Robust construction Easy replaceable battery Charging concept Long life cycles Repair services 2013 Half-Yea

  25. Slide 25: Ascom Network Testing

    [ ] ASCOM NETWORK TESTING 2013 Half-Year Results Conference, 22/08/2013 © Ascom Group 25

  26. Slide 26: The power of one – meeting operator's needs

    THE POWER OF ONE – MEETING OPERATOR’S NEEDS Test & Measurement Monitor Benchmark Reporting & Analysis CUSTOMER Test & Measurement Benchmark Monitor Reporting & Analysis CUSTOMER CUSTOMER CUSTOMER CUSTOMER 2013 Half-Year Results Conference, 22/08/2013 © Ascom Group 26

  27. Slide 27: Opportunity cycle Network Testing

    OPPORTUNITY CYCLE NETWORK TESTING Benchmarking & Monitoring TEMS Automatic, TEMS Symphony TEMS Monitor Master Reporting & Analysis TEMS Discovery, TEMS Visualization Test & Measurements TEMS Investigation, TEMS Pocket Trial Roll-out Optimization Operation 2013 Half-Year Results Conference, 22/08/201

  28. Slide 28: At the forefront of innovation and technology: Blixt

    AT THE FOREFRONT OF INNOVATION AND TECHNOLOGY 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 u

  29. Slide 29: Group

    [ ] GROUP 2013 Half-Year Results Conference, 22/08/2013 © Ascom Group 29

  30. Slide 30: A robust and clear strategy built on 3 pillars

    A ROBUST AND CLEAR STRATEGY BUILT ON 3 PILLARS 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 Operatio

  31. Slide 31: New head office: Zugerstrasse 32, Baar

    NEW HEADOFFICE: ZUGERSTRASSE 32, BAAR (AS OF 1 NOVEMBER 2013) 2013 Half-Year Results Conference, 22/08/2013 © Ascom Group 31

  32. Slide 32: Outlook – guidance confirmed

    OUTLOOK – GUIDANCE CONFIRMED* 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 ambit

  33. Slide 33: Ascom – an attractive investment case

    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 2013 Half-Year Results Conference, 22/08

  34. Slide 34: Mission-critical wireless communication

    [ ] MISSION-CRITICAL WIRELESS COMMUNICATION

  35. Slide 35: Group contact

    [ ] 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] 2013 Half-Year Results Conference, 22/08/2013 © Ascom Group 35

  36. Slide 36: Legal disclaimer

    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 dive

  37. Slide 37: Thank you!

    THANK YOU!

Ascom — H1 2013 Earnings Presentation on 6ix