Ascom Holding Ag · SIX:ASCN

Ascom — H1 2010 Earnings Presentation

36 slides from Ascom's earnings presentation, Aug 25, 2010

  1. Slide 1: Half Year Results 2010 Conference

    HALF YEAR RESULTS 2010 CONFERENCE HALF-YEAR 25 AUGUST 2010 Riet Cadonau CEO Martin Zwyssig CFO Half-Year Results 2010, 25/08/2010 © Ascom Group 1

  2. Slide 2: Table of Contents

    TABLE OF CONTENTS  H1 2010 AT A GLANCE  H1 2010 FINANCIAL RESULTS  HIGHLIGHTS FROM THE DIVISIONS  LOOKING FORWARD  Q&A Half-Year Results 2010, 25/08/2010 © Ascom Group 2

  3. Slide 3: H1 2010 at a Glance: Strong H1 Results of Ascom Group

    H1 2010 AT A GLANCE: GLANCE STRONG H1 RESULTS OF ASCOM GROUP Half-Year Results 2010, 25/08/2010 © Ascom Group 3

  4. Slide 4: Ascom Delivers Profitable Growth

    [ H1 2010 AT A GLANCE ] ASCOM DELIVERS PROFITABLE GROWTH  19.6% revenue growth  Total revenue of CHF 281.2m (H1 2009: CHF 235.2m) (at constant exchange rates: + 20.7%)  Wireless Solutions: Growth of 9.5% (at constant exchange rates: + 11.3%)  Network Testing: Substantial growth based on TEMS acq

  5. Slide 5: Strong Profitability

    [ H1 2010 AT A GLANCE ] STRONG PROFITABILITY  EBIT and EBITDA margins more than doubled  Group EBIT: CHF 24.0m (H1 2009: CHF 7.3m) EBIT margin: i 8.5% 8 5% (H1 2009: 2009 3.1%) 3 1%) (including integration and amortization costs of CHF 6.9m)  Group EBITDA: CHF 33.9m (H1 2009: CHF12.3m) EBITDA mar

  6. Slide 6: All Three Divisions Improved Profitability

    [ H1 2010 AT A GLANCE ] ALL THREE DIVISIONS IMPROVED PROFITABILITY  Wireless Solutions EBIT margin 10.1% (H1 2009: 5.3%); EBITDA margin 12.5%  Network Testing EBIT margin 8.0% (including integration and amortization costs of CHF 6.9m) EBITDA margin 15.4%  Security y Communication EBIT margin 8.1%

  7. Slide 7: Solid Balance Sheet

    [ H1 2010 AT A GLANCE ] SOLID BALANCE SHEET  Solid balance sheet as per 30 June 2010  Cash and cash equivalents of CHF 112.4m  Equity q y ratio improved p to 31.4%  Net cash CHF 37.3m Half-Year Results 2010, 25/08/2010 © Ascom Group 7

  8. Slide 8: H1 2010 Financial Results Overview

    [ H1 2010 FINANCIAL RESULTS OVERVIEW ] H1 2010 FINANCIAL RESULTS OVERVIEW CHFm H1 2010 H1 2009 Incoming orders 308.2 233.8 Revenue 281.2 235.2 EBIT 24 0 24.0 73 7.3 EBIT margin 8.5% 3.1% GROUP PROFIT 17.1 11.9 EBITDA 33.9 12.3 EBITDA margin 12.1% 5.2% Half-Year Results 2010, 25/08/2010 © Ascom Group

  9. Slide 9: H1 2010 Financial Results

    H1 2010 FINANCIAL RESULTS Half-Year Results 2010, 25/08/2010 © Ascom Group 9

  10. Slide 10: Consolidated Income Statement

    [ H1 2010 FINANCIAL RESULTS ] CONSOLIDATED INCOME STATEMENT CHF CHFm 1stt half-year 2010 1stt half-year 2009 Revenue 281.2 235.2 Gross profit 131.8 92.2 Gross margin 46.9% 39.2% Marketing and distribution (57.2) (48.2) Research and development (26.6) (18.3) Administration (23.3) (18.0) Total functio

  11. Slide 11: Consolidated Balance Sheet

    [ H1 2010 FINANCIAL RESULTS ] CONSOLIDATED BALANCE SHEET 30 6 2010 30.6.2010 31 12 2009 31.12.2009 CHFm % % Non-current assets 269.4 46.4 280.4 46.0 Current assets 311.2 53.6 328.8 54.0 Total assets 580.6 609.2 Shareholders’ equity 182.5 31.4 179.3 29.4 Non-current liabilities 106.4 18.3 130.7 21.5

  12. Slide 12: Consolidated Statement of Cash Flows

    [ H1 2010 FINANCIAL RESULTS ] CONSOLIDATED STATEMENT OF CASH FLOWS CHFm 1st half-year 2010 1st half-year 2009 Net cash flow from operating activities 21.7 16.8 Net cash flow from investing activities (6.7) (187.0) Net cash flow from financing activities (27.7) 119.9 Net increase/(decrease) in cash a

  13. Slide 13: Development of the EBIT Margin (1987-H1/2010)

    [ H1 2010 FINANCIAL RESULTS ] DEVELOPMENT OF THE EBIT MARGIN (1987- H1/2010) 10% 1.9% 8% 8.5% 6% 4% 2% 0% -2% -4% -6% 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 H1/2010 Half-Year Results 2010, 25/08/2010 © Ascom Group

  14. Slide 14: Highlights from the Divisions

    HIGHLIGHTS FROM THE DIVISIONS Half-Year Results 2010, 25/08/2010 © Ascom Group 14

  15. Slide 15: Wireless Solutions: When Every Second Counts

    WIRELESS SOLUTIONS WHEN EVERY SECOND COUNTS Half-Year Results 2010, 25/08/2010 © Ascom Group 15

  16. Slide 16: Wireless Solutions Division (On-Site Communication)

    [ WIRELESS SOLUTIONS ] WIRELESS SOLUTIONS DIVISION (ON-SITE COMMUNICATION)  Hospitals and elderly care (about 50% of Wireless Solutions business) via our direct and indirect channels Core segments  Industry, hotels, retail, secure establishments (e.g. prisons) via our direct & indirect channels 

  17. Slide 17: Wireless Solutions Shows Profitable Organic Growth

    [ WIRELESS SOLUTIONS ] WIRELESS SOLUTIONS SHOWS PROFITABLE ORGANIC GROWTH  Overall Ascom further strengthened its market position; demand for mobility solutions as part of enterprise communication bounced back  All three sales channels performed well  OEM business grew significantly  All regions

  18. Slide 18: Wireless Solutions – Excellent Results in H1 2010

    [ WIRELESS SOLUTIONS ] WIRELESS SOLUTIONS – EXCELLENT RESULTS IN H1 2010  Incoming orders: CHF 157.9m (H1 2009: CHF 139.5m) > Increase of 13.2%  Revenue: CHF 138.2m vs. CHF 126.1m in H1 2009 > Growth of 9.5% (at constant exchange rates revenue increased by 11.3%)  EBIT: CHF 13.9m vs. CHF 6.7m in

  19. Slide 19: Wireless Solutions – Focus Items 2010

    [ WIRELESS SOLUTIONS ] WIRELESS SOLUTIONS – FOCUS ITEMS 2010 1 FURTHER STRENGTHEN OUR MARKET POSITION  Leverage our investments made in R&D and Sales Channels  R&D: Further enhancement of product portfolio  Sales Channels: improve p market ppenetration byy adding g new channel p partners  System

  20. Slide 20: Network Testing: Evolving Networks. Trusted Solutions.

    NETWORK TESTING EVOLVING NETWORKS. TRUSTED SOLUTIONS. Half-Year Results 2010, 25/08/2010 © Ascom Group 20

  21. Slide 21: Network Testing Division (Testing & Optimization)

    [ NETWORK TESTING ] NETWORK TESTING DIVISION (TESTING & OPTIMIZATION)  Telecom operators  Telecom infrastructure vendors Core segments  Telecom professional service providers  Telecom regulatory agencies and other government entities  Telecom T l content t t providers id Radio air interface net

  22. Slide 22: Mixed Market Environment in H1 2010

    [ NETWORK TESTING ] MIXED MARKET ENVIRONMENT IN H1 2010  North America showed dynamic growth, driven by strong demand for higher network capacity due to a rapid rise in the adoption of smart phones  Customers in emerging markets delayed large investments in new technologies due in part to delayed

  23. Slide 23: Reduction of Dependency on Ericsson as a Reseller

    [ NETWORK TESTING ] REDUCTION OF DEPENDENCY ON ERICSSON AS A RESELLER 2009 2010 15% 58% Ericsson as a reseller Half-Year Results 2010, 25/08/2010 © Ascom Group 23

  24. Slide 24: Network Testing – Remarkable Results in H1 2010

    [ NETWORK TESTING ] NETWORK TESTING – REMARKABLE RESULTS IN H1 2010  Incoming orders: CHF 86 86.4m 4m (H1 2009: CHF 37 37.7m) 7m)  Revenue: CHF 80.1m (H1 2009: CHF 42.5m)  EBIT: CHF 6.4m > Overall one-time g gain of CHF 1.5m due to divestments of TelcoNet Services and Network Planning Business >

  25. Slide 25: Network Testing – Focus Items 2010

    [ NETWORK TESTING ] NETWORK TESTING – FOCUS ITEMS 2010 LTE ROLLOUT 1  Network operators are planning to introduce the new LTE mobile network standard due to the increasing demand of mobile broadband services  Expansion E i off LTE supportt accross whole h l NT product d t portfolio. tf li Si Signi

  26. Slide 26: Security Communication

    SECURITY COMMUNICATION SERVING OUR CUSTOMERS EVERYWHERE, AT ANY TIME Half-Year Results 2010, 25/08/2010 © Ascom Group 26

  27. Slide 27: Security Communication Division (Secure Communication)

    [ SECURITY COMMUNICATION ] SECURITY COMMUNICATION DIVISION (SECURE COMMUNICATION)  Defense Core segments  Public safety organizations  Infrastructure operators  Secure communication for the army and police forces Product/Service  Emergency call and information systems for infrastructure provide

  28. Slide 28: Stable Market Environment in H1 2010

    [ SECURITY COMMUNICATION ] STABLE MARKET ENVIRONMENT IN H1 2010  Swiss business on track track. Important recurring orders from Armasuisse  Regular follow-up orders of Armasuisse: eight ongoing delivery projects in Switzerland driven by significant installed base  International business continued

  29. Slide 29: Security Communication – Solid Results H1 2010

    [ SECURITY COMMUNICATION ] SECURITY COMMUNICATION – SOLID RESULTS H1 2010  Incoming orders: CHF 65 65.2m 2m (H1 2009: CHF 56 56.2m) 2m) > Increase of 16.1%  Revenue: CHF 64.3m (H1 2009: CHF 66.3m)  EBIT: CHF 5.2m (H1 2009: CHF 3.4m) > Including positive one-time effects of CHF 1.7m > EBIT margin:

  30. Slide 30: Security Communication – Focus Items 2010

    [ SECURITY COMMUNICATION ] SECURITY COMMUNICATION – FOCUS ITEMS 2010 INTERNATIONALIZATION 1  Continue to develop new markets via indirect channel (defense and civil sectors)  Maintain leading position in home market EFFICIENCY 2  On time deliveryy of large g pprojects j according g to business p

  31. Slide 31: Looking Forward

    LOOKING FORWARD Half-Year Results 2010, 25/08/2010 © Ascom Group 31

  32. Slide 32: Outlook 2010

    [ LOOKING FORWARD ] OUTLOOK 2010  Organic growth on Group level compared to prior-year prior-year*  Guidance increased > New target for 2010 on Group level:* EBITDA margin: 11-12% *provided that the economic environment remains stable and there is no deterioration in currency relations Half-Year R

  33. Slide 33: Dividend Outlook

    [ LOOKING FORWARD ] DIVIDEND OUTLOOK The Company intends to pay an annual dividend starting from 2011, 2011 provided a well ongoing course of business. Half-Year Results 2010, 25/08/2010 © Ascom Group 33

  34. Slide 34: Q&A

    Q&A Half-Year Results 2010, 25/08/2010 © Ascom Group 34

  35. Slide 35: Legal Disclaimer

    LEGAL DISCLAIMER This document contains specific forward-looking statements statements, e.g. 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 s

  36. Slide 36: Thank You!

    THANK YOU! Half-Year Results 2010, 25/08/2010 © Ascom Group 36

Ascom — H1 2010 Earnings Presentation on 6ix