Ascom Holding Ag · SIX:ASCN

Ascom — FY2011 Earnings Presentation

39 slides from Ascom's earnings presentation, March 2012

  1. Slide 1: The International Technology Company

    THE INTERNATIONAL TECHNOLOGY COMPANY

  2. Slide 2: Table of Contents

    [ ] TABLE OF CONTENTS  ABOUT ASCOM  THE ASCOM DIVISIONS  2011 FULL-YEAR RESULTS  OUTLOOK AND STRATEGIC FOCUS March 2012 © Ascom Group 25 YEARS OF INNOVATION 2

  3. Slide 3: About Ascom

    [ ] ABOUT ASCOM March 2012 © Ascom Group 25 YEARS OF INNOVATION 3

  4. Slide 4: Ascom

    ASCOM  Ascom employs about 2’100 people worldwide.  Ascom has subsidiaries in approx. 20 countries.  In 2011 Ascom generated revenues of CHF 437.5m with an EBITDA margin of 13.7%  For 2013, Ascom has set itself the goal of achieving a Group EBITDA margin of 14-15%.  Ascom registered shares (ASC

  5. Slide 5: Ascom 2.0 – A Truly International Company

    Göteborg (Wireless Solutions) Reston Dübendorf/Zurich (Network Testing) (Group Headquarters) Ascom headquarters Ascom local presence ASCOM 2.0 – A TRULY INTERNATIONAL COMPANY March 2012 © Ascom Group CONFIDENTIAL 25 YEARS OF INNOVATION 5

  6. Slide 6: Our Management Team

    OUR MANAGEMENT TEAM BOARD OF DIRECTORS CEO Fritz Mumenthaler* General Secretary/Comm Daniel Lack CFO** Human Resources Kurt Renggli Martin Zwyssig* General Counsel Judith Bischof Wireless Solutions Network Testing Claes Ödman* Rikard Lundqvist* * Member of the Executive Board ** The CFO is also resp

  7. Slide 7: Mission-Critical Communication Strategy Since 2004

    MISSION-CRITICAL COMMUNICATION STRATEGY SINCE 2004 Customer needs  Communication systems and solutions, which enable quicker and very reliable responses, when security, safety or efficiency is mission critical. Need for state-of-the-art products, systems, solutions and services 0  Continuous innov

  8. Slide 8: The International Technology Company

    THE INTERNATIONAL TECHNOLOGY COMPANY Investments in new products, markets, and technologies aim at further consolidating and expanding our leading market position in the respective markets. Our strategy focuses on creating sustainable values. Wireless Solutions Network Testing For all healthcare com

  9. Slide 9: The Ascom Divisions

    [ ] THE ASCOM DIVISIONS March 2012 © Ascom Group 25 YEARS OF INNOVATION 9

  10. Slide 10: Wireless Solutions

    [ ] WIRELESS SOLUTIONS www.ascom.com/ws March 2012 © Ascom Group 25 YEARS OF INNOVATION 10

  11. Slide 11: Wireless Solutions

    WIRELESS SOLUTIONS Mission Customers Ascom Wireless Solutions is the leading provider for on-site wireless communications in healthcare and in other market segments.  www.ascom.com/ws Core segments Local presence HOSPITALS SENIOR CARE INDEPENDENT LIVING Efficient Caring communication for communicat

  12. Slide 12: Wireless Solutions Increases Efficiency in Healthcare Facilities

    WIRELESS SOLUTIONS INCREASES EFFICIENCY IN HEALTHCARE FACILITIES  Hospitals and senior care (ca. 50% of divisional revenue)  Direct & indirect channel Core segments  Industry, hotels, retail, secure establishments (e.g. prisons)  Direct & indirect channel  Mobile workplace telephony equipment 

  13. Slide 13: Wireless Solutions Portfolio

    WIRELESS SOLUTIONS PORTFOLIO 3rd party Elderly IP-DECT WiFi Paging Nurse Call Devices Care Handsets Handsets Pagers UNITE Clients Nurse Call Care Gateway Base-Stations Alarm-Devices GSM/3G/LTE IP-Nurse Call 3rd party Care IP-DECT Infrastructure WiFi Wireless Phones Gateway Nurse Call Services Alarm-

  14. Slide 14: Wireless Solutions – Focus Items 2012

    WIRELESS SOLUTIONS – FOCUS ITEMS 2012 1 FURTHER INVESTMENT IN SALES CHANNELS  Further growth in the own channel, particular in North America  Gaining market share in new markets (Middle East, Central & Eastern Europe) 2 PREPARE FOR FURTHER GROWTH  Striving for further organic growth  Growing bus

  15. Slide 15: Network Testing

    [ ] NETWORK TESTING  www.ascom.com/nt March 2012 © Ascom Group 25 YEARS OF INNOVATION 15

  16. Slide 16: Network Testing

    NETWORK TESTING Mission Customers Ascom Network Testing is the industry leader in testing, optimization, benchmarking and monitoring solutions for mobile networks.  www.ascom.com/nt Core segments Local presence Mobile Operators Mobile Network Mobile Network Service Providers Infrastructure Provider

  17. Slide 17: Network Testing Provides Best-in-Class Solutions for Mobile Networks

    NETWORK TESTING PROVIDES BEST-IN-CLASS SOLUTIONS TO MEASURE, ANALYZE, AND OPTIMIZE MOBILE NETWORKS  Telecom operators  Telecom infrastructure vendors Core segments  Telecom professional service providers  Telecom regulatory agencies and other government entities  Telecom content providers  Tes

  18. Slide 18: Network Testing Offering

    NETWORK TESTING OFFERING BENCHMARKING & TEST & MEASUREMENT REPORTING & ANALYSIS MONITORING TEMS Automatic TEMS Investigation TEMS Symphony TEMS Pocket TEMS Monitor Master TEMS Discovery / TEMS Visualization March 2012 © Ascom Group 25 YEARS OF INNOVATION 18

  19. Slide 19: Network Testing – Focus Items 2012

    NETWORK TESTING – FOCUS ITEMS 2012 1 IMPROVE PROFITABILITY  Cost measures to re-establish profitability level  Expansion of indirect sales channels  Drive TEMS Discovery business 2 LEVERAGE MARKET LEADERSHIP  Provide solutions that drive operator efficiency and promotes portfolio value  Utilize

  20. Slide 20: 2011 Full-Year Results

    [ ] 2011 FULL-YEAR RESULTS March 2012 © Ascom Group 25 YEARS OF INNOVATION 20

  21. Slide 21: Topline – Stable Development in 2011

    TOPLINE – STABLE DEVELOPMENT IN 2011 Slight increase of 1.1% for continuing operations  Total revenue of CHF 437.5m (FY 2010: CHF 472.9m) Strong impact of negative currency translation effects Slight increase of about 1.1% in local currencies  Wireless Solutions: Growth of 6.8% in local currencies

  22. Slide 22: Profitability – Good EBITDA Margin of 13.7%

    PROFITABILITY – GOOD EBITDA MARGIN OF 13.7% EBITDA margin at good level of 13.7% despite negative currency effects  EBITDA: CHF 59.8m  EBITDA margin: 13.7%  EBITDA guidance of 13–14% fulfilled Net profit – continuing business in line with prior year  Group profit: CHF 23.1m (2010: CHF 32.5m)  P

  23. Slide 23: Very Strong Result for Wireless Solutions; Network Testing Hit by Market

     VERY STRONG RESULT FOR WIRELESS SOLUTIONS  NETWORK TESTING HIT BY MARKET DEVELOPMENT Wireless Solutions: Outstanding result and beyond expectations  Revenue growth of 6.8% (in local currencies)  Improvement of the gross margin by 2.3 percentage points to 51.3%  EBITDA increased to CHF 41.5m (2

  24. Slide 24: Current Reporting Structure

    CURRENT REPORTING STRUCTURE Ascom Wireless Network Discontinued Real Estate Corporate Solutions Testing Operations sold FAM Defense Real Estate Civil Security signed InOp signed Austria sold Czech Rep. March 2012 © Ascom Group 25 YEARS OF INNOVATION 24

  25. Slide 25: Consolidated Income Statement

    CONSOLIDATED INCOME STATEMENT CHFm 2010 2010 FX-adj. 2011 Revenue 472.9 432.2 437.5 Gross profit 244.8 218.9 Gross margin 51.8% 50.0% Total functional costs (189.1) (179.3) Amortization of intangible assets from acquisition (10.5) (9.4) Other income/(expenses), net 6.2 10.4 EBIT 51.4 48.1 40.6 Net f

  26. Slide 26: Growth Analysis

    GROWTH ANALYSIS Actual Organic FX Acquisition/ Actual Δ 2011/2010 2010 growth translation divestment 2011 (in %) (in %) (in %) (in CHFm) Wireless 282.9 5.1% -9.0% 4.7 276.6 -2.2% Solutions Network Testing 168.5 -6.9% -9.0% -2.7 138.9 -17.6% Real Estate 22.4 0.8% -0.7% n/a 22.4 0.1% Total Ascom 472.9

  27. Slide 27: Revenue Split per Region

    REVENUE SPLIT PER REGION (in %) 2% 11% 7% 7% 11% Wireless Solutions 17% Switzerland 80% Europe & Africa Americas 4% Asia/Pacific 19% Network Testing 46% 65% 31% March 2012 © Ascom Group 25 YEARS OF INNOVATION 27

  28. Slide 28: Functional Costs Development

    FUNCTIONAL COSTS DEVELOPMENT (in mCHF) 195 190 185 189.1 180 (14.2) 0.9 (1.2) 175 4.7 179.3 170 174.9 165 Total 2010 FX-adj. 2010 FX-adj. Marketing & Research & Administration Total 2011 Distribution Development 195 190 185 189.1 180 (14.2) (2.9) 7.0 0.3 175 179.3 170 174.9 165 Total 2010 FX-adj. 20

  29. Slide 29: Consolidated Balance Sheet

    CONSOLIDATED BALANCE SHEET 31.12.2010 31.12.2011 CHFm % CHFm % Intangible assets 221.5 38.1 215.0 42.4 Other non-current assets 39.9 6.9 40.8 8.1 Non-current assets 261.4 45.0 255.8 50.5 Cash and cash equivalents 129.0 22.2 73.3 14.4 Other current assets of continuing operations 189.9 32.8 164.5 32.

  30. Slide 30: Development of the Shareholders' Equity

    DEVELOPMENT OF THE SHAREHOLDERS‘ EQUITY (in CHFm) 215.0 210.0 23.1 -8.6 205.0 0.3 203.8 200.0 195.0 190.0 189.0 185.0 180.0 175.0 Balance at Group profit for Dividend paid Other items Balance at 1.1.2011 the period 31.12.2011 March 2012 © Ascom Group 25 YEARS OF INNOVATION 30

  31. Slide 31: Consolidated Statement of Cash Flows

    CONSOLIDATED STATEMENT OF CASH FLOWS CHFm 2010 2011 Net cash flow from operating activities 46.2 16.4 Net cash flow from investing activities (11.4) (4.5) Net cash flow from financing activities (27.2) (66.7) Net increase/(decrease) in cash and cash equivalents 1.3 (55.7) Cash and cash equivalents a

  32. Slide 32: Outlook and Strategic Focus

    [ ] OUTLOOK AND STRATEGIC FOCUS March 2012 © Ascom Group 25 YEARS OF INNOVATION 32

  33. Slide 33: Ascom Is Well Positioned to Create Value

    ASCOM IS WELL POSITIONED TO CREATE VALUE  Ascom is well positioned in two global businesses with market leadership and with a clear focus on innovative software and hardware products, systems, solutions and services.  EBITDA margin target for 2013 remains 14-15%.  Solid balance sheet with a stron

  34. Slide 34: Consistent Growth Strategy

    CONSISTENT GROWTH STRATEGY  Ascom will continue to consistently pursue its corporate strategy it adopted in 2004 and concentrate on Mission-Critical Communication in the business-to- business strategy.  Wireless Solutions and Network Testing are both market leaders in their respective markets. Bot

  35. Slide 35: Outlook

    OUTLOOK Financial medium-term targets for 2013*: EBITDA margin 14-15% * Outlook assumes a steady economical environment and at least stable currency relations March 2012 © Ascom Group 25 YEARS OF INNOVATION 35

  36. Slide 36: Ascom 2.0 – Six Cornerstones

    ASCOM 2.0 – SIX CORNERSTONES Two globally oriented businesses, targeting selected market 1 segments, both leaders in their markets 2 Software and hardware products, systems, solutions and services 3 Dedicated to innovation, spending more than 10% p.a. on R&D 4 Underlying megatrends support the growt

  37. Slide 37: Group Contact

    [ ] GROUP CONTACT Ascom Holding AG T +41 31 999 11 11 Stettbachstrasse 6 F +41 44 823 13 21 CH-8600 Dübendorf [email protected] www.ascom.com March 2012 © Ascom Group 25 YEARS OF INNOVATION 37

  38. Slide 38: 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

  39. Slide 39: The International Technology Company

    THE INTERNATIONAL TECHNOLOGY COMPANY

Ascom Holding — FY2011 Earnings Presentation on 6ix