Ascom Holding Ag · SIX:ASCN
Ascom — Investor Presentation (2011)
49 slides from Ascom's investor presentation, 2011
Slide 1: Ascom IR Presentation
ASCOM IR PRESENTATION IR Presentation@ASCOM 1
Slide 2: Table of Contents
[ ] TABLE OF CONTENTS ABOUT ASCOM 2011 H1 ASCOM AT A GLANCE THE ASCOM DIVISIONS 2011 H1 FINANCIAL RESULTS IN 13: 14 TO 15 IR Presentation@ASCOM 2
Slide 3: About Ascom
ascom [ ] IR Presentation@ASCOM 3
Slide 4: Ascom
ASCOM Ascom employs worldwide about 2’300 people Ascom has subsidiaries in 20 countries In H1/2011 Ascom generated revenues of 253.1 MCHF with an EBITDA margin of 11.7% Ascom’s communicated target for the full year 2011 is an EBITDA margin of 13-14% (continuing operations) Ascom registered
Slide 5: Our Global Presence
OUR GLOBAL PRESENCE Göteborg (Wireless Solutions) Dübendorf (Group Headquarters) Bern Reston (Security Communication) (Network Testing) Ascom headquarters Ascom local presence IR Presentation@ASCOM 5
Slide 6: The Ascom Management Team
THE ASCOM MANAGEMENT TEAM BOARD OF DIRECTORS CEO Fritz Mumenthaler* CFO & Investor Relations General Secretary/Comm. Daniel Lack Human Resources Kurt Renggli v Martin Zwyssig* General Counsel Judith Bischof Wireless Solutions Network Testing Security Communication Claes Ödman* Rikard Lundqvist* Frit
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 Continuous innovati
Slide 8: Consistent Growth Strategy
CONSISTENT GROWTH STRATEGY Ascom will continue to consistently pursue the corporate strategy it adopted in 2004 and concentrate on Mission-Critical Communication in the business-to-business strategy The two divisions Wireless Solutions and Network Testing are well positioned to capture organical
Slide 9: The Mission-Critical Communication Company
THE MISSION-CRITICAL COMMUNICATION 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 Leading wireless
Slide 10: Security Communication: Best Owners to Be Sought For
SECURITY COMMUNICATION: BEST OWNERS TO BE SOUGHT FOR New and better ownership will be sought for the businesses of Security Communication Security Communication is mainly Swiss based and contains different smaller business areas such as Defense, Public Safety and Infrastructure Operators with li
Slide 11: 2011 H1 Ascom at a Glance
[ ] 2011 H1 ASCOM AT A GLANCE IR Presentation@ASCOM 11
Slide 12: Ascom Achieves a Solid Half-Year Operating Result
ASCOM ACHIEVES A SOLID HALF-YEAR OPERATING RESULT On an adjusted basis net of negative currency effects and divestments, Group revenue stable and in line with company’s guidance Gross margin increased to 48.7% (H1 2010: 46.9%) Wireless Solutions and Network Testing invested as planned in new p
Slide 13: Divisions: Strong Result of Wireless Solutions
DIVISIONS: STRONG RESULT OF WIRELESS SOLUTIONS Wireless Solutions Increasing revenues: Organic growth of 5.2% Improved EBITDA: CHF 17.8m (H1 2010: CHF 17.3m) Strong EBITDA margin 13.4% (H1 2010: 12.5%) Network Testing Stable revenue development (adjusted for FX and divestment effects) Lowe
Slide 14: Solid Balance Sheet
SOLID BALANCE SHEET Solid balance sheet as per 30 June 2011 Cash and cash equivalents of CHF 80.4m Net cash CHF 42.8m Equity ratio improved to 35.9% 14M IR Presentation@ASCO
Slide 15: The Ascom Divisions
[ ] THE ASCOM DIVISIONS IR Presentation@ASCOM 15
Slide 16: Wireless Solutions: When Every Second Counts
[ ] WIRELESS SOLUTIONS WHEN EVERY SECOND COUNTS IR Presentation@ASCOM 16
Slide 17: Wireless Solutions Division
WIRELESS SOLUTIONS DIVISION Mission Customers Ascom Wireless Solutions is the leading provider for on-site communication solutions in healthcare and in other market segments. Core segments Local presence Hospitals Elderly care Others (Industry, Secure Establishments, Retail, Hotel etc.) Figures H1 2
Slide 18: Wireless Solutions Main Contributor to Healthcare Communication Efficiency
[ WIRELESS SOLUTIONS ] WIRELESS SOLUTIONS IS ASCOM’S MAIN CONTRIBUTOR TO INCREASE EFFICIENCY IN HEALTH CARE COMMUNICATION Hospitals and elderly care (ca. 50% of divisional revenues) Direct & indirect channel Core segments Industry, hotels, retail, secure establishments (e.g. prisons) Direct
Slide 19: Wireless Solutions – Revenue by Region & Segment (2010)
[ WIRELESS SOLUTIONS ] WIRELESS SOLUTIONS – REVENUE BY REGION & SEGMENT (2010) 19 IR Presentation@ASCOM
Slide 20: Wireless Solutions – Competitive Position
[ WIRELESS SOLUTIONS ] WIRELESS SOLUTIONS – COMPETITIVE POSITION WORK PLACE TELEPHONY PROFESSIONAL PAGING NURSE CALL DECT IP-DECT VoWiFi MESSAGING 22% of 2010 sales 6% of 2010 sales 3% of 2010 sales 15% of 2010 sales 11% of 2010 sales 8% of 2010 sales 1 Siemens 1 ASCOM 1 Cisco 1 ASCOM 1 Ackermann 1
Slide 21: Value Creation Wireless Solutions
[ WIRELESS SOLUTIONS ] VALUE CREATION WIRELESS SOLUTIONS STRATEGY FINANCIAL TARGETS 2013 Shift revenue mix further towards Revenues CAGR 2012 + 2013: 5-10% health care communication EBITDA-margin 2013 12-15% Market drivers: Ageing population, demographics Market * CAGR 2010-13: Cost pressu
Slide 22: Wireless Solutions – Focus Second Half-Year 2011
WIRELESS SOLUTIONS – FOCUS SECOND HALF-YEAR 2011 1 FURTHER INVESTMENT IN SALES CHANNELS US International sales partners (Dubai, Spain, Southern & Eastern Europe) 2 PREPARE FOR FURTHER INORGANIC GROWTH Integration of Miratel in Finland Evaluation of further acquisition targets (mainly compani
Slide 23: Network Testing: Evolving Networks. Trusted Solutions.
[ ] NETWORK TESTING EVOLVING NETWORKS. TRUSTED SOLUTIONS. IR Presentation@ASCOM 23
Slide 24: Network Testing Division
NETWORK TESTING DIVISION Mission Customers Ascom Network Testing is the industry leader in benchmarking, testing, and optimization solutions for wireless networks. Core segments Local presence Products to test and Systems to Software to Figures evaluate the benchmark and visualize, analyze, H1 2011:
Slide 25: Network Testing Is the Highest EBITDA-Margin Contributor
[ NETWORK TESTING ] NETWORK TESTING IS THE HIGHEST EBITDA-MARGIN CONTRIBUTOR TO THE GROUP Telecom operators Telecom infrastructure vendors Core segments Telecom professional service providers Telecom regulatory agencies and other government entities Telecom content providers Test & Measu
Slide 26: Network Testing – Revenue by Region & Segment (2010)
[NETWORK TESTING] ascom NETWORK TESTING- REVENUE BY REGION & SEGMENT (201 0) Revenue by region Revenlle by s·egment • Switzer11ana 2% Te5-t & Meaurement 54% Europe mc:d. S'tVItzcrland 32% Bcncihmark & "1onrtorfng 30% B nelx & F!4i'n'e 1% • Ani! i& ReXrti ng 4% Germany 10% • Planning & Des-Ign :2% S'
Slide 27: Network Testing – Competitive Position
[ NETWORK TESTING ] NETWORK TESTING – COMPETITIVE POSITION Test & Measurement Benchmarking & Monitoring Reporting & Analysis 54% of 2010 sales 30% of 2010 sales 4% of 2010 sales TEMS Investigation TEMS Monitor Master TEMS Visualization TEMS Pocket TEMS QVoice TEMS QVoice Presentation T
Slide 28: Value Creation Network Testing
[ NETWORK TESTING ] VALUE CREATION NETWORK TESTING STRATEGY FINANCIAL TARGETS 2013: Further strengthen the position as leading solutions provider Revenues CAGR 2012 + 2013: in Mobile Network Optimization and benchmarking 5-10% as well as the No. 1 in LTE networks EBITDA-margin 2013: 16-19% Mar
Slide 29: Network Testing – Focus Second Half-Year 2011
NETWORK TESTING – FOCUS SECOND HALF-YEAR 2011 1 ASSURE STRONG SECOND HALF-YEAR 2011 Convert strong sales funnel into revenue Further development of sales organization Further improvement of cost position 2 BENEFITING FROM INVESTMENTS IN EMERGING TECHNOLOGIES Expansion of support for emerging
Slide 30: 2011 H1 Financial Results
[ ] 2011 H1 FINANCIAL RESULTS Martin Zwyssig CFO IR Presentation@ASCOM 30
Slide 31: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT CHFm 1st half 2010 1st half 2010 (FX adj.*) 1st half 2011 Revenue 281.2 260.3 253.1 Gross profit 131.8 122.4 123.2 Gross margin (%) 46.9% 47.0% 48.7% Total functional costs (107.1) (100.0) (100.7) Amortization of intangible assets from acquisition (5.3) (5.1) (5.0) Othe
Slide 32: Growth Analysis - Net Revenue
GROWTH ANALYSIS - NET REVENUE Actual H1/2010 Organic FOREX Divestment Actual H1/2011 Δ 2011/2010 @ Act 2010 FX growth translation (in CHFm) @ Act 2011 FX (in %) (in CHFm) (in %) (in %) (in CHFm) Wireless Solutions 138.2 5.2% -9.4% n/a 132.4 -4.2% Network Testing 80.1 -0.2% -8.7% -2.7 70.3 -12.2% Sec
Slide 33: Illustrative Example of FX Impacts
ILLUSTRATIVE EXAMPLE OF FX IMPACTS Local books in SEK: H1/2010: USD 10.0m = SEK 74.1m US customer H1/2011: USD 10.0m = SEK 63.6m Transaction FX impact of -14.2% Contract with customer: Sale of handsets for USD 10.0m Translation of the SEK P&L into CHF: H1/2010: SEK 74.1m = CHF 10.8m Ascom H1/2011: S
Slide 34: Impact from Foreign Exchange Rates Fluctuation
IMPACT FROM FOREIGN EXCHANGE RATES FLUCTUATION CHFm Wireless Network Testing Security Total Group Solutions Communication Net revenue Transaction FX impact* (2.7) (4.1) n/a (6.8) Translation FX impact* (13.0) (6.9) (1.1) (21.0) TOTAL FX impact on NR (15.7) (11.0) (1.1) (27.8) EBITDA Transaction FX i
Slide 35: EBITDA Development of Network Testing
EBITDA DEVELOPMENT OF NETWORK TESTING (in CHFm) 12.3 -3.4 -1.0 -3.8 1.3 5.4 IR Presentation@ASCOM 35
Slide 36: Details on Net Financial Result for the Period
DETAILS ON NET FINANCIAL RESULT FOR THE PERIOD 2 (in CHFm) 0.7 0.0 0 -0.7 -0.2 -1.5 -1.5 -1.9 Interest expenses and income -2 (net) -3.0 -3.6 Profit and loss on FX -4 revaluations (net) Bank charges & commissions -6 FX losses from EQ-like loans -8 -8.7 due to liquidation Net financial result for the
Slide 37: Pro Forma Income Statement: Security Communication as Discontinued Operation
PRO FORMA INCOME STATEMENT: ASCOM GROUP WITH SECURITY COMMUNICATION AS DISCONTINUED OPERATION CHFm 1st half 2011 Revenue 202.5 Gross profit 106.3 Gross margin (%) 52.5% Total functional costs (88.1) Amortization of intangible assets from acquisition (5.0) Other income/(expenses), net 3.2 EBIT 16.4 N
Slide 38: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET 31.12.2010 30.6.2011 CHFm % CHFm % Intangible assets 221.5 38.1 203.9 40.2 Other non-current assets 39.9 6.9 40.9 8.1 Non-current assets 261.4 45.0 244.8 48.3 Cash and cash equivalents 129.0 22.2 80.4 15.9 Other current assets 189.9 32.8 181.3 35.8 Total assets 580.3 506.5
Slide 39: Development of Shareholders' Equity
DEVELOPMENT OF SHAREHOLDERS‘ EQUITY (in CHFm) 200 9.0 -8.7 195 190 189.0 -10.9 185 180 3.3 181.7 175 170 165 Balance at Group profit for Dividends paid Currency Other items Balance at 31.12.2010 the period translation 30.6.2011 adjustments IR Presentation@ASCOM 39
Slide 40: Pro-Forma Balance Sheet: Security Communication as Discontinued Operation
PRO-FORMA BALANCE SHEET: ASCOM GROUP WITH SECURITY COMMUNICATION AS DISCONTINUED OPERATION 30.6.2011 CHFm % Intangible assets 203.7 40.2 Other non-current assets 31.0 6.1 Non-current assets 234.7 46.3 Cash and cash equivalents 75.5 14.9 Other current assets 141.0 27.9 Assets held for sale 55.3 10.9
Slide 41: Consolidated Statement of Cash Flows
CONSOLIDATED STATEMENT OF CASH FLOWS 1st half-year 1st half-year CHFm 2010 2011 Net cash flow from operating activities 21.7 1.3 Net cash flow from investing activities (6.7) (3.5) Net cash flow from financing activities (27.7) (43.4) Net decrease in cash and cash equivalents (15.3) (48.6) Cash and
Slide 42: Outlook
ascom [ ] IR Presentation@ASCOM 42
Slide 43: Starting from a Very Good 2010: 2011 First Step
STARTING FROM A VERY GOOD 2010: 2011 FIRST STEP TO ACHIEVE INVESTMENTS LEVEL RESULTS 2011 PLAN Wireless Solutions Wireless Solutions New products Continued growth and preparing New applications for accelerated growth and New markets and channels profitability M&A Network Testing Network Te
Slide 44: Outlook 2011
OUTLOOK 2011 Financial targets for 2011 (continuing operations)*: Wireless Solutions: slight revenue growth Revenue growth Network Testing: stable EBITDA margin 13-14% at Group level Financial medium-term targets for 2013 (continuing operations)*: Revenue growth 5-10% Targets 2012 and 2013 EBITD
Slide 45: Outlook: Divisional Targets for 2012/13 Plan
[ OUTLOOK ] OUTLOOK: DIVISIONAL TARGETS FOR 2012/13 PLAN (figures without potential acquisitions) Wireless Solutions Sales growth 5 – 10% CAGR 2012 + 2013 EBITDA-margin 12 – 15% margin 2013 Network Testing Sales growth 5 – 10% CAGR 2012 + 2013 EBITDA-margin 16 – 19% margin 2013 IR Presentation@ASCOM
Slide 46: Initiated Investments to Support Value Increase
INITIATED INVESTMENTS TO SUPPORT VALUE INCREASE Ascom is well positioned in growth businesses with a clear focus on innovative products, systems, solutions and services EBITDA margin target for 2011 increased to 13-14% (continuing operations) Solid balance sheet with surplus liquidity and impr
Slide 47: Group Contact
[ ] GROUP CONTACT Ascom Holding AG T +41 31 999 11 11 Stettbachstrasse 6 F +41 31 999 23 00 CH-8600 Dübendorf [email protected]│ www.ascom.com IR Presentation@ASCOM 47
Slide 48: 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
Slide 49: Ascom
ascom IR Presentation@ASCOM 49