Ascom Holding Ag · SIX:ASCN
Ascom — Investor Day (October 2012)
29 slides from Ascom's investor day presentation, Oct 31, 2012
Slide 1: Discover Ascom's Exciting Business
DISCOVER ASCOM‘S EXCITING BUSINESS FRITZ MUMENTHALER, CEO
Slide 2: About Ascom, Our Strategy, Growth Opportunities, Investment Case
ABOUT ASCOM OUR STRATEGY ATTRACTIVE GROWTH OPPORTUNITIES AN APPEALING INVESTMENT CASE
Slide 3: Ascom – The Elevator Pitch
ASCOM – THE „ELEVATOR PITCH“ Two independent ICT businesses, each market leader in its selected niche Focusing on software and services Core competencies are R&D, customer relationship management and optimized supply chain Global market presence, large installed base and megatrends support the growt
Slide 4: Our Business
OUR BUSINESS Information and Communication Technology: INDUSTRY Mobile Telecom, Radio Access Network (RAN) Wireless on-site communication, Nurse Call Products (software and hardware) VALUE Integrated systems PROPOSITION Customized solutions Value adding services Business-to-Business STRA
Slide 5: Our Customers
OUR CUSTOMERS SAFETY/SECURITY MOBILE HEALTHCARE SENIOR CARE RETAIL & OTHERS NETWORKS WE IMPROVE CUSTOMER‘S WORKFLOW EFFICIENCY AND THEREBY STRENGTHEN THEIR COMPETITIVENESS / VALUE PROPOSITION Analyst & Investor Day, 31/10/2012 © Ascom Group 5
Slide 6: Our Business Portfolio, Our Workforce
OUR BUSINESS PORTFOLIO, OUR WORKFORCE Revenue per division Employees per region Wireless Solutions 66% Switzerland 9% Network Testing 29% EMEA without Switzerland 73% Others 5% France 3% Germany 6% Netherlands 19% Sweden 30% United Kingdom 4% Other EMEA 11% Americas 13% Asia Pacific 5%
Slide 7: Our Strategic Focus: Software and Services
OUR STRATEGIC FOCUS: SOFTWARE AND SERVICES WIRELESS SOLUTIONS NETWORK TESTING Revenue breakdown: Revenue breakdown: 20% Software 60% Software 50% Hardware 20% Hardware 30% Services 20% Services Over the coming years both divisions plan to increase the software and the service content in
Slide 8: Global Market Presence – 2011 Revenues
GLOBAL MARKET PRESENCE – 2011 REVENUES 241 40 50 29 CEE 14 2 North America WS NT Western Europe 5 China 0 WS NT WS NT WS NT Middle East 13 / Africa 1 WS NT APAC 13 4 4 Latin America 0 WS NT WS NT Note: revenue based on FY 2011 Analyst & Investor Day, 31/10/2012 © Ascom Group 8
Slide 9: Our Revenues per Region
OUR REVENUES PER REGION Revenue per region Wireless Solutions Revenue per region Network Testing Switzerland 7% Switzerland 8% EMEA without Switzerland 78% EMEA without Switzerland 41% Belgium 3% Germany 15% France 10% Scandinavia 2% Germany 11% United Kingdom 5% Netherlands 24% Other EMEA 1
Slide 10: About Ascom, Our Strategy, Growth Opportunities, Investment Case
ABOUT ASCOM OUR STRATEGY ATTRACTIVE GROWTH OPPORTUNITIES AN APPEALING INVESTMENT CASE
Slide 11: Ascom – A Successful Transformation
ASCOM – A SUCCESSFUL TRANSFORMATION Ascom where we are coming from Ascom today Large and complex conglomerate, Lean company, Information and Telecommunications related with Communication Technology, agile, large manufacturing part, inflexible innovative Very diversified (up to 11 divisions) Focu
Slide 12: Building Size and Sustainable Profitability
BUILDING SIZE AND SUSTAINABLE PROFITABILITY STRATEGY Our corporate strategy focuses on VISION Mission-Critical Communication: To be the first choice provider of Mission-Critical 1. Market leadership in selected Communication Solutions: market segments with global Global market leader in healthcare
Slide 13: Six Cornerstones
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 growth 5 Rigorous
Slide 14: About Ascom, Our Strategy, Growth Opportunities, Investment Case
ABOUT ASCOM OUR STRATEGY ATTRACTIVE GROWTH OPPORTUNITIES AN APPEALING INVESTMENT CASE
Slide 15: Ascom Wireless Solutions
ASCOM WIRELESS SOLUTIONS Analyst & Investor Day, 31/10/2012 © Ascom Group 15
Slide 16: Wireless Solutions Strategic Positioning
WIRELESS SOLUTIONS STRATEGIC POSITIONING Market Globally ageing population with increasing need for care and support Drivers Increasing pressure to improve efficieny in global healthcare systems Vision „Become the global No.1 in Mission-Critical Communication in the healthcare space“ Strategy EXIS
Slide 17: Wireless Solutions: A Growing Market
WIRELESS SOLUTIONS: A GROWING MARKET MESSAGING / ENTERPRISE MOBILITY MIDDLEWARE ADDRESSABLE ADDRESSABLE MARKET WS MARKET (3.5bn – 5bn CHF) NURSE CALL INDEPENDENT LIVING Analyst & Investor Day, 31/10/2012 © Ascom Group 17
Slide 18: Wireless Solutions Growth Drivers
WIRELESS SOLUTIONS GROWTH DRIVERS CHALLENGES FOR CUSTOMERS MARKET DRIVERS Demographics Increasing demand for healthcare Aging population / increasing need for care communication More conditions treatable, but at increasing Hospitals / Elderly Care Homes cost Independent Living Cost pressure
Slide 19: Wireless Solutions – Value Drivers
WIRELESS SOLUTIONS – VALUE DRIVERS Unique value proposition in the mission (and often life-) critical communication environment Increasing demand for (customized) solutions drives the SW content of the value proposition (Unite middleware and applications) Growing Service part of the business FDA
Slide 20: Ascom Network Testing
ASCOM NETWORK TESTING Analyst & Investor Day, 31/10/2012 © Ascom Group 20
Slide 21: Network Testing Strategic Positioning
NETWORK TESTING STRATEGIC POSITIONING Exponentially growing demand for mobile broadband Market Customer experience major challenge for mobile operators‘ Drivers competitive positioning „Become the global independent auditor of network performance and Vision customer experience“ Benchmarking & Test
Slide 22: Network Testing: A Promising Market
NETWORK TESTING: A PROMISING MARKET TEST & BENCHMARKING & MEASUREMENT MONITORING ADDRESSABLE ADDRESSABLE MARKET NTMCHF, (500-600 MARKET2-3bn CHF respectively) REPORTING & SYSTEMS & ANALYSIS SOLUTIONS Analyst & Investor Day, 31/10/2012 © Ascom Group 22
Slide 23: Network Testing Growth Drivers
NETWORK TESTING GROWTH DRIVERS OPERATOR CHALLENGES MARKET DRIVERS Increasing demand for capacity Capacity Expansion Essential mobile data growth New technology: LTE as business driver Spectrum scarcity Coverage, existing capacity expansion Increasing complexity Improve efficiency Multi tec
Slide 24: Network Testing – Value Drivers
NETWORK TESTING – VALUE DRIVERS In-depth knowledge of the RAN for more than 20 years positions the division well in an increasingly complex and demanding environment Market leadership, truly global position and largest installed base Holistic offering in network testing enhancing customer relatio
Slide 25: Ascom Network Testing Strategic Direction
ASCOM NETWORK TESTING STRATEGIC DIRECTION Target double-digit EBITDA margin in 2013 2013 and RETURN TO Leverage global organization, large installed base and beyond PROFITABILITY next generation platforms Re-position offering towards recurring revenues New Organization INVEST AND 2012 Inve
Slide 26: About Ascom, Our Strategy, Growth Opportunities & Attractive Valuation
ABOUT ASCOM OUR STRATEGY GOOD GROWTH OPPORTUNITIES & AN ATTRACTIVE VALUATION AN APPEALING INVESTMENT CASE
Slide 27: Outlook
OUTLOOK Ambitious financial targets for FY 2013* EBITDA margin of 14-15% on Group level as target for 2013 confirmed: Wireless Solutions achieved a 15% EBITDA margin already in 2011 and has started the first two quarters stronger than last year Network Testing: with the current restructuring effor
Slide 28: Key Take Aways Ascom
KEY TAKE AWAYS ASCOM Two market leading ICT businesses with growth opportunities 1 supported by global megatrends and with a clear focus on innovative software and hardware products, systems, solutions and services 2 Well balanced portfolio Wireless Solutions, stable and profitable with focus on hea
Slide 29: Mission-Critical Communication
MISSION-CRITICAL COMMUNICATION