Ascom Holding Ag · SIX:ASCN

Ascom — Investor Presentation (March 2011)

47 slides from Ascom's investor presentation, March 2011

  1. Slide 1: Ascom Mission-Critical Communication

  2. Slide 2: Table of Contents

    [ ] TABLE OF CONTENTS  ABOUT ASCOM  ASCOM’S 3 DIVISIONS  2010 FINANCIAL RESULTS  ′IN 13: 14 TO 15′ March 2011 © Ascom Group 2

  3. Slide 3: About Ascom

    [ ] ABOUT ASCOM March 2011 © Ascom Group 3

  4. Slide 4: Ascom

    ASCOM  Ascom employs worldwide about 2’300 people  Ascom has subsidiaries in 20 countries  In 2010 Ascom generated revenues of 571 CHFm with an EBITDA margin of 12%  Ascom’s communicated target for 2013 is an EBITDA margin of 14-15%  Ascom registered shares (ASCN) are listed on the SWX Swiss Ex

  5. 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 March 2011 © Ascom Group 5

  6. Slide 6: The Mission-Critical Communication Company

    THE MISSION-CRITICAL COMMUNICATION COMPANY Ascom is a strong, competent and reliable partner. Our strategy is based on Mission-Critical Communication for selected market segments. We do business-to-business in the areas of Wireless Solutions (on-site and wireless communication solutions in healthcar

  7. Slide 7: The Mission-Critical Communication Company

    THE MISSION-CRITICAL COMMUNICATION COMPANY Wireless Solutions Network Testing Security Communication Wireless on-site communication Testing and optimization solutions Communication solutions for solutions for hospitals, elderly care for mobile networks national and civilian security homes, industria

  8. Slide 8: Management Team as of 1 April 2011

    MANAGEMENT TEAM AS OF 1 APRIL 2011 BOARD OF DIRECTORS CEO Fritz Mumenthaler* CFO & Investor Relations General Counsel Patrick Grawehr General Secretary/Comm. Daniel Lack v Martin Zwyssig* Human Resources Kurt Renggli Wireless Solutions Network Testing Security Communication a.i. Fritz Mumenthaler* R

  9. Slide 9: Ascom's 3 Divisions

    [ ] ASCOM’S 3 DIVISIONS March 2011 © Ascom Group 9

  10. Slide 10: Wireless Solutions: When Every Second Counts

    [ ] WIRELESS SOLUTIONS WHEN EVERY SECOND COUNTS March 2011 © Ascom Group 10

  11. Slide 11: 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 2010

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

    WIRELESS SOLUTIONS INCREASES EFFICIENCY IN HEALTHCARE FACILITIES  Hospitals and elderly care (ca. 50% of divisional revenues)  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 Offering (I)

    WIRELESS SOLUTIONS OFFERING (I) WORK PLACE TELEPHONY DECT IP-DECT VoWiFi 3% of 2009 sales March 2011 © Ascom Group 13

  14. Slide 14: Wireless Solutions Offering (II)

    WIRELESS SOLUTIONS OFFERING (II) PROFESSIONAL PAGING NURSE CALL MESSAGING March 2011 © Ascom Group 14

  15. Slide 15: Wireless Solutions – Revenue by Segments

    WIRELESS SOLUTIONS – REVENUE BY SEGMENTS 12% Hospitals 10% 31% Elderly care Industry 5% Secure establishments 6% Hotel and Retail Other OEM 14% 22% March 2011 © Ascom Group 15

  16. Slide 16: Value Creation Wireless Solutions

    VALUE CREATION WIRELESS SOLUTIONS STRATEGY FINANCIAL TARGETS 2013  Shift revenue mix further towards  Revenue CAGR 2012 + 2013: 5-10% health care communication  EBITDA margin 2013 12-15% Market drivers:  Ageing population, demographics Market * CAGR 2010-13:  Cost pressure in healthcare trigger

  17. Slide 17: Wireless Solutions – Focus Items 2011

    WIRELESS SOLUTIONS – FOCUS ITEMS 2011 INVESTMENTS IN NEW PRODUCTS AND TECHNOLOGIES 1  Improve existing product range  Add selectively new applications/technologies (e.g. GSM for Enterprise)  Thereby improve our competitive position EXPANSION OF SALES CHANNELS 2  USA  Southern and Eastern Europe

  18. Slide 18: Network Testing: Evolving Networks. Trusted Solutions.

    [ ] NETWORK TESTING EVOLVING NETWORKS. TRUSTED SOLUTIONS. March 2011 © Ascom Group 18

  19. Slide 19: 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, 2010: 20

  20. Slide 20: Network Testing Provides Best-in-Class Solutions

    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

  21. Slide 21: Network Testing Offering

    NETWORK TESTING OFFERING BENCHMARKING & TEST & MEASUREMENT REPORTING & ANALYSIS MONITORING March 2011 © Ascom Group 21

  22. Slide 22: Network Testing – Revenue by Segments

    NETWORK TESTING – REVENUE BY SEGMENTS 10% Test & Measurement 2% 4% Benchmark & Monitoring Analysis & Reporting 54% 30% Planning & Design Systems & Solutions/TNS March 2011 © Ascom Group 22

  23. Slide 23: Value Creation Network Testing

    VALUE CREATION NETWORK TESTING STRATEGY FINANCIAL TARGETS 2013:  Further strengthen the position as leading solutions provider  Revenue CAGR 2012 + 2013: 5-10% in mobile network optimization and benchmarking  EBITDA margin 2013: 16-19% as well as the No. 1 in LTE networks Market drivers: Market 

  24. Slide 24: Network Testing – Focus Items 2011

    NETWORK TESTING – FOCUS ITEMS 2011 TECHNOLOGY ENHANCEMENT/INVESTMENTS 1  Expansion of support for emerging technologies such as LTE  Strengthening the leadership position in benchmarking and optimization: > New TEMS Investigation 12.0 offers broadest support for mobile devices GROWTH OPPORTUNITIES

  25. Slide 25: Security Communication: Serving Customers Anywhere, at Any Time

    [ ] SECURITY COMMUNICATION SERVING CUSTOMERS ANYWHERE, AT ANY TIME March 2011 © Ascom Group 25

  26. Slide 26: Security Communication Division

    SECURITY COMMUNICATION DIVISION Mission Customers Ascom Security Communication focuses on tactical communication for national & civilian security organizations. In its home market Switzerland, the division is a solution supplier, general contractor and system integrator. It addresses the market abro

  27. Slide 27: National Champion in Security Communications

    NATIONAL CHAMPION IN SECURITY COMMUNICATIONS Core segments  National and civil security institutions Offered as: Product/Service  Secure communication for national and  Products offering civil security institutions  Systems  Solutions  Maintenance & Support Services  Direct channel: Switzerla

  28. Slide 28: Security Communication Offering (I)

    SECURITY COMMUNICATION OFFERING (I) DEFENSE COMMUNICATION CH: SYSTEM INTEGRATION INTERNATIONAL: PRODUCTS Access Node Offering Tactical Access Node T  General contractor  System engineering  System integrator  Customisation  Production under licence agreement  Testing Tactical Access Node R  O

  29. Slide 29: Security Communication Offering (II)

    SECURITY COMMUNICATION OFFERING (II) INFRASTRUCTURE OPERATOR PUBLIC SAFETY ROAD RAIL ALARMING / MOBILISATION Convergent Convergent communication communication for for Highway operators Railway operators Emergency- /Info Call Stations Trackside- March 2011 © Ascom Group Phone 29

  30. Slide 30: Security Communication – Revenue by Segments

    SECURITY COMMUNICATION – REVENUE BY SEGMENTS 16% Defense Public Safety 41% Infrastructure Operators 23% Related Businesses Facility Management/Real 10% 10% Estate March 2011 © Ascom Group 30

  31. Slide 31: Value Creation Security Communication

    VALUE CREATION SECURITY COMMUNICATION STRATEGY FINANCIAL TARGETS 2013  Focus on national and civil security communication, by EBITDA margin 2013 7-10% maintaining a leading Swiss position as system integrator and as an option, doing business with international partners as product and system supplie

  32. Slide 32: Security Communication – Focus Items 2011

    SECURITY COMMUNICATION – FOCUS ITEMS 2011 NATIONAL CHAMPION 1  Consolidate the leading position in the Swiss home market for national and civilian security institutions  Working with partners to exploit profitable product sales opportunities on the international market PROFITABILITY IMPROVEMENT 2

  33. Slide 33: 2010 Financial Results

    [ ] 2010 FINANCIAL RESULTS March 2011 © Ascom Group 33

  34. Slide 34: 2010 Financial Results Overview

    2010 FINANICAL RESULTS OVERVIEW CHFm 2010 2009 Incoming orders 575.1 +11.8% 514.4 Revenue 571.2 +6.3% 537.2 EBIT 48.4 +47.6% 32.8 EBITDA 68.4 +37.3% 49.8 Group profit 32.5 +33.2% 24.4 Number of employees (FTE) 2,093 -3.2% 2,162 as of 31.12. March 2011 © Ascom Group 34

  35. Slide 35: Consolidated Income Statement

    CONSOLIDATED INCOME STATEMENT CHFm 2009 2009 FX-adj. 2010 Revenue 537.2 520.2 571.2 Gross profit 227.3 221.9 269.3 Gross margin 42.3% 42.7% 47.1% Total functional costs (191.7) (187.1) (217.5) Amortization of intangible assets from acquisition (7.9) (8.0) (10.5) Other income/(expenses), net 5.1 5.3

  36. Slide 36: Growth Analysis

    GROWTH ANALYSIS Organic FX Actual Acquisition Actual Δ 2010/2009 growth translation 2009 (in CHFm) 2010 (in %) (in %) (in %) Wireless 265.2 11.6% -4.9% nm 282.9 6.7% Solutions Network 133.3 11.1% -1.7% 22.6 168.5 26.4% Testing Security 138.1 -10.0% -1.3% nm 122.5 -11.3% Communication Total Ascom 537

  37. Slide 37: Revenue Split per Region

    REVENUE SPLIT PER REGION (in %) Wireless Solutions* Network Testing Security Communication March 2011 © Ascom Group *Wireless Solutions OEM sales included in „Rest of Europe“ 37

  38. Slide 38: Consolidated Balance Sheet

    CONSOLIDATED BALANCE SHEET 31.12.2009 31.12.2010 CHFm % CHFm % Intangible assets 238.8 39.2 221.5 38.1 Other non-current assets 41.6 6.8 39.9 6.9 Non-current assets 280.4 46.0 261.4 45.0 Cash and cash equivalents 127.7 21.0 129.0 22.2 Other current assets 201.1 33.0 189.9 32.8 Total assets 609.2 580

  39. Slide 39: Consolidated Statement of Cash Flows

    CONSOLIDATED STATEMENT OF CASH FLOWS CHFm 2009 2010 Net cash flow from operating activities 24.5 46.2 Net cash flow from investing activities (180.1) (11.4) Net cash flow from financing activities 99.5 (27.2) Net increase/(decrease) in cash and cash equivalents (54.9) 1.3 Cash and cash equivalents a

  40. Slide 40: 'In 13: 14 to 15'

    [ ] ′IN 13:14 TO 15′ March 2011 © Ascom Group 40

  41. Slide 41: Our Plan for 2011-2013: Consistent Implementation of Our Proven Strategy

    OUR PLAN FOR 2011-2013: THE CONSISTENT IMPLEMENTATION OF OUR PROVEN STRATEGY 2010 Sustainable profitability achieved  Leading positions in growth markets  All divisions profitable and positioned to capture future growth  R&D spending increased to 10.0% of revenue (2009: 8.7%) 2011 Investments in

  42. Slide 42: 2011 First Step Toward 'In 13: 14 to 15'

    2011 FIRST STEP TOWARD 'IN 13: 14 TO 15' INVESTMENTS LEVEL RESULTS 1st priority WS 2011 PLAN  New products  WS: continued growth and  New technologies preparing for accelerated  New markets and channels growth and profitability  M&A NT  NT: preparing for LTE growth  Investments in products Se

  43. Slide 43: Divisional Targets for 2012/2013 Plan

    DIVISIONAL TARGETS FOR 2012/2013 PLAN (figures without potential acquisitions) Wireless Solutions Sales growth 5-10% CAGR 2012 + 2013 EBITDA margin 12-15% Target 2013 Network Testing Sales growth 5-10% CAGR 2012 + 2013 EBITDA margin 16-19% Target 2013 Security Communication Service- and Sales growth

  44. Slide 44: Outlook 2011

    OUTLOOK 2011  Financial targets for 2011: Wireless Solutions: slight revenue growth Revenue growth Network Testing: stable Security Communication: slightly lower revenue EBITDA margin 11.5-12.5% at Group level  Financial medium-term targets for 2013: Revenue growth WS/NT 5-10% Targets 2012 and 201

  45. Slide 45: 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 March 2011 © Ascom Group 45

  46. Slide 46: 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

  47. Slide 47: Thank You!

    THANK YOU! March 2011 © Ascom Group 47

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