Ascom Holding Ag · SIX:ASCN
Ascom — H1 2003 Earnings Presentation
43 slides from Ascom's earnings presentation, Sep 4, 2003
Slide 1: First half-year 2003 Media and Analyst Conference
First half-year 2003 Media and Analyst Conference 4 September 2003
Slide 2: Agenda
Agenda l Welcome and introduction Juhani Anttila, Chairman and CEO l Financial Results first half-year 2003 Rudolf Hadorn, CFO l Outlook and Targets second half-year 2003 Juhani Anttila, Chairman and CEO First half-year 2003, Media and Analyst Conference 2
Slide 3: Targets 2003
Targets 2003 l Strengthening of the Balance Sheet l Cost cutting, streamlining of the Group operations l Improvement of results in all business units l Growth in selected markets l Divestments and further Net Debt reduction l Substantial reduction of Net Loss First half-year 2003, Media and Analyst
Slide 4: First half-year 2003: Achievements
First half-year 2003 Achievements: l Improvement of profitability in all core l Reduction of Net Debt areas l Cost reduction - Transport Revenue on turnaround track l Solution for PLC - Security Solutions on sustained profitability l Substantial reduction of Net Loss - Network Integration stabilises
Slide 5: First half-year 2003: However
First half-year 2003 However: l Net Loss still high l Costs and Net Working Capital still too high l Restructuring cost l Stability but not yet growth in core areas (incoming orders improving) l Payphones and Manufacturing in France First half-year 2003, Media and Analyst Conference 5
Slide 6: Key Figures first half-year 2003
Key Figures first half-year 2003 l Net Revenue MCHF 833 reduced by 9.1%*, core areas stable l Operating Loss in non-core areas MCHF (39) l EBITDA MCHF (3) improved by MCHF 84 compared with second half-year 2002 l Net Loss MCHF (57) reduced by 69% compared with second half-year 2002 l Net Debt MCHF 2
Slide 7: First half-year 2003: Core areas
First half-year 2003: Core areas l Core areas - Incoming Orders: MCHF 571 (Improvement of 6%) - Net Revenue: MCHF 493 (-1%) - Operating Profit: MCHF 25 (Improvement of MCHF 24) (Compared with the first half-year 2002) First half-year 2003, Media and Analyst Conference 7
Slide 8: First half-year 2003: Non-core areas
First half-year 2003: Non-core areas l PBX - Net Revenue: MCHF 77 (Reduction of MCHF 12) - Operating Profit: MCHF (2) (Improvement of MCHF 7) l Other, Co-operation - Net Revenue : MCHF 287 (Reduction of MCHF of 235) - Operating Profit : MCHF (37) (Reduction of MCHF of 24) (Compared with the first ha
Slide 9: Financial Results first half-year 2003
Financial Results first half-year 2003 Rudolf Hadorn, CFO First half-year 2003, Media and Analyst Conference 9
Slide 10: Key Financial Results for the first half-year 2003
Key Financial Results for the first half-year 2003 l Net Revenue: Revenue in Core Ascom Segments areas stable (493 MCHF) l Operating Profit: all 4 Core Ascom Segments profitable (25 MCHF) l Net Income: reduced loss by 69% to (57) MCHF compared with second half-year 2002 l Net Debt: further reduced b
Slide 11: Profit and Loss Statement (IFRS)
Profit and Loss Statement (IFRS) (MCHF) H1 2003 H2 2002 H1 2002 ∆ H1 Incoming Orders 943 814 1'097 (154) Net Revenue 833 973 1'093 (260) Gross Profit 185 184 244 (59) Gross margin 22% 19% 22% - Functional Cost (210) (257) (278) 68 Operating Profit (CIII) (25) (73) (34) 9 Depreciation Intangible Asse
Slide 12: Net Revenue and Operating Profit H1 2002 / 2003
Net Revenue and Operating Profit H1 2002 / 2003 (M C H F ) Net Revenue 1 '2 0 0 1 '0 0 0 (151) (86) 24% 260 (23) 800 600 1'093 400 833 200 0 H1 2002 H1 2003 V a r ia n c e D ive s tm e n ts O p e r a tio n a l Exchange (M C H F ) O p e r a t i n g P r o fit 0 (5 ) (1 0 ) (25) (1 5 ) (34) (2 0 ) 0 (2
Slide 13: Profit and Loss Statement (IFRS) (continued)
Profit and Loss Statement (IFRS) (continued) (MCHF) H1 2003 H2 2002 H1 2002 ∆ H1 EBIT (45) (144) (87) 42 Net Financial (Expenses) / Income (8) (23) (7) (1) Minority (Gains)/Losses 0 0 3 (3) Income Taxes (4) (14) (9) 5 Net Income (57) (181) (100) 43 Memo: EBITDA (3) (87) 44 (47) First half-year 2003,
Slide 14: Net Financial Expenses / Income
Net Financial Expenses / Income (MCHF) H1 2003 H2 2002 H1 2002 ∆ H1 Net Currency (Losses) / Gains 6 12 16 (10) Interest Expenses (net) (10) (12) (17) 7 Write Down of Finan. Assets/Investm. - (17) - - Other Financial Expenses (4) (6) (6) 2 Net Financial (Expenses) / Income (8) (23) (7) (1) First half
Slide 15: Key Figures first half-year 2003 normalised
Key Figures first half-year 2003 normalised Restruct. Group (MCHF) Group AES Subtot. Operat. normal. Net Revenue 833 156 677 - 677 Operating Profit (25) (17) (8) (15) 7 Operating Profit Margin (3%) (11%) (1%) - 1% EBIT (45) (30) (15) (15) 0 EBIT Margin (5%) (19%) (2%) - 0% First half-year 2003, Medi
Slide 16: Balance Sheet (IFRS)
Balance Sheet (IFRS) 30.06.2003 31.12.2002 30.06.2002 (MCHF) % (MCHF) % (MCHF) % Fixed Assets 300 24 383 25 506 28 Cash + Securities 250 20 230 15 158 9 Inventories 235 19 317 21 503 27 Other Current Assets 465 37 574 39 668 36 Total Assets 1'250 100 1'504 100 1'835 100 Equity 146 12 196 13 382 21 M
Slide 17: Balance Sheet Total reduced by 17%
Balance Sheet Total reduced by 17 % (31.12. 2002 versus 30.06.2003) (MCHF) 1'600 1'400 (254) (110) (17%) (153) 9 1'200 1'000 800 (1'504) 600 (1'250) 400 200 0 31.12.02 30.06.03 Variance Divestments Operational Exchange First half-year 2003, Media and Analyst Conference 17
Slide 18: Further Net Debt Reduction by 22% to MCHF 206
Further Net Debt Reduction by 22% to 206 MCHF (MCHF) 700 631 30.06.03 31.12.02 30.06.02 600 Bond 200 200 200 500 Debt 238 275 323 416 Mortages 11 11 21 400 Other Debt 7 8 30 Gross Debt 456 494 574 300 264 Cash (247) (228) (156) Securities (3) (2) (2) 200 22% Net Debt 206 264 416 206 100 Dez 2001 Jun
Slide 19: Cash Flow
Cash Flow (MCHF) H1 03 H2 02 H1 02 Net Income (57) (181) (100) Depreciation 42 73 132 Business Divestment (Investment) 83 - 264 Net Working Capital Reduction 27 171 42 Restructuring Cost (net) (9) 18 (1) Taxes Paid (19) (17) (15) Net Interest Paid (13) (23) (7) All other Variances (1) 111 (101) Cash
Slide 20: Core/Non-core Business Revenues and Profitability
Core/Non-core Business Revenues and Profitability (MCHF) Net Revenue (Total MCHF 833*consol.) Operating Profit (Total MCHF (25)) 30 20 5 25 10 493 0 (11) (10) 365 (20) (30) (39) (40) (50) Core Corp. & Others Core Corp. & Others Segments Financial entities Segments Financial entities * 30 MCHF consol
Slide 21: Transport Revenue on Turnaround Track
Transport Revenue on Turnaround Track (MCHF) H1 2003 H2 2002 H1 2002 ∆ H1 Incoming Orders 107 94 131 (24) Net Revenue 124 150 133 (9) Operating Profit 2 (13) (15) 17 OP Margin 2% (9)% (11)% EBIT 2 (16) (22) 24 EBIT Margin 2% (11)% (17)% CapEx 3 1 2 1 Employees 878 842 845 33 First half-year 2003, Me
Slide 22: Security Solutions Sustained Profitability
Security Solutions Sustained Profitability (MCHF) H1 2003 H2 2002 H1 2002 ∆ H1 Incoming Orders 136 75 106 30 Net Revenue 83 104 108 (25) Operating Profit 7 9 6 1 OP Margin 8% 9% 6% EBIT 6 9 6 0 EBIT Margin 7% 9% 6% CapEx 3 1 0 3 Employees 602 638 672 (70) First half-year 2003, Media and Analyst Conf
Slide 23: Network Integration Stabilised in Tough Markets
Network Integration Stabilised in Tough Markets (MCHF) H1 2003 H2 2002 H1 2002 ∆ H1 Incoming Orders 199 180 190 9 Net Revenue 162 189 161 1 Operating Profit 1 8 (1) 2 OP Margin 1% 4% (1)% EBIT 0 6 (4) 4 EBIT Margin 0% 3% (2)% CapEx 2 1 1 1 Employees 1'002 1'016 1'107 (105) First half-year 2003, Medi
Slide 24: Wireless Solutions with Profitable Growth
Wireless Solutions with Profitable Growth (MCHF) H1 2003 H2 2002 H1 2002 ∆ H1 Incoming Orders 131 112 116 15 Net Revenue 125 125 110 15 Operating Profit 15 14 11 4 OP Margin 12% 11% 10% EBIT 12 10 8 4 EBIT Margin 10% 8% 7% CapEx 5 4 4 1 Employees 1'090 1'142 1'156 (66) First half-year 2003, Media an
Slide 25: Key Figures PBX and Others Co-operation
Key Figures PBX and Others Co-operation* (MCHF) H1 2003 H2 2002 H1 2002 ∆ H1 Incoming Orders 397 394 582 (185) Net Revenue 365 399 614 (249) Operating Profit (39) (69) (22) (17) OP Margin (11)% (17)% (4)% EBIT (57) (76) (111) 54 EBIT Margin (16)% (19)% (18)% CapEx 3 6 27 (24) Employees 1'862 3'275 3
Slide 26: Ascom Group Equity Development
Ascom Group Equity Development (MCHF) Note: Ascom Holding AG Equity at CHF 176 Mio. on 9 30.6.2003 (57) (2) 196 146 Equity Translation Group Purchase of Equity Jan 1st 2003 Adjustments Net Loss own Shares Jun 30th 2003 First half-year 2003, Media and Analyst Conference 26
Slide 27: Turnaround ... What has been achieved in 2003 so far
Turnaround ... What has been achieved in 2003 so far AES PBX Divestment Divestment Cost All Core NWC Improvement Segments Profitable Reduction TR PLC Turnaround Transformed Net Debt Financing Further Reduced Conditions Treasury Tax Met International Structure Optimisation Work Started Underway First
Slide 28: Turnaround ... What's next!
Turnaround ... What's next ! Profit Improvement Manufacturing Payphones in Core Segments Restructuring/ Restructuring/ Co-operations Co-operations Keep Cost Organic Aligned with Growth Market in Core Segments TR Opportunities Complete Critical NWC Projects Keep Full Focus Net debt Tax Reduce thru St
Slide 29: Outlook and Targets for second half-year 2003
Outlook and Targets for second half-year 2003 Juhani Anttila, Chairman and CEO First half-year 2003, Media and Analyst Conference 29
Slide 30: Positioning
Positioning l Ascom is an international solution supplier with comprehensive technology know-how l Portfolio - Revenue collection and parking systems (Transport Revenue) - Solutions for security, communications, automation and control systems for infrastructure operators, public security institution
Slide 31: Strengths
Strengths In the individual business areas and countries Ascom has l A strong market position l A broad customer base and customer relations that are capable of being expanded l Sound know-how in key technologies as well as in the handling of complex projects in demanding environments l Strong partn
Slide 32: Market positioning
Market positioning Ascom core areas Position 2003 Network Integration Nr. 3 (CH, I, B) - QVoice (Test system for mobile networks) No. 1 (worldwide) Security Solutions Nr. 1 (CH) - Public safety and traffic security No. 2 (CH, A) Wireless Solutions No. 1 (NL,UK,S,CH) Transport Revenue No. 3 (worldwid
Slide 33: Objectives
Objectives Consolidate market position Growth from own resources and expand as well as through sales and technology alliances without capital investment Ascom Extend added value chain Positioning as long-term through expansion of the partner and expert for service business continuous technical moder
Slide 34: Future prospects for Transport Revenue (1)
Future prospects for Transport Revenue (1) Integrated solutions for revenue collection on public transport (Fare Collection), in parking systems (Parking) and at toll collection points (Toll) l Growth opportunities: Global and expanding market with stable, growth opportunities that are comparatively
Slide 35: Future prospects for Transport Revenue (2)
Future prospects for Transport Revenue (2) Integrated solutions for revenue collection on public transport (Fare Collection), in parking systems (Parking) and at toll collection points (Toll) l Measures: - Acceptance by the customer of the two remaining critical large projects - Further increase in
Slide 36: Future prospects for Security Solutions (1)
Future prospects for Security Solutions (1) Integrated communications, management and information solutions for public security, traffic safety as well as military and industry l Growth opportunities: Rapidly growing security requirements for secure, permanently available communications and informat
Slide 37: Future prospects for Security Solutions (2)
Future prospects for Security Solutions (2) Integrated communications, management and information solutions for public security, traffic safety as well as military and industry l Measures: - Increased orientation towards the civilian markets, in particular with communications systems, information sy
Slide 38: Future prospects for Network Integration (1)
Future prospects for Network Integration (1) Networks and applications in voice, data and video communications l Growth opportunities: Pleasing development in the country units; difficult market conditions in Switzerland l Ascom competencies: Many years of experience in the handling of complex proje
Slide 39: Future prospects for Network Integration (2)
Future prospects for Network Integration (2) Networks and applications in voice, data and video communications l Measures: - Further implementation of the measures to improve the operating result (streamlining of the offering, cost reductions in personnel costs and in the material cost area) - Stren
Slide 40: Future prospects for Wireless Solutions (1)
Future prospects for Wireless Solutions (1) Worldwide leading supplier of high quality on-site communications solutions for demanding environments l Growth opportunities: Focussing on vertical market segments with strong investment potential such as hospitals, nursing homes, industry and correctiona
Slide 41: Future prospects for Wireless Solutions (2)
Future prospects for Wireless Solutions (2) Worldwide leading supplier of high quality on-site communications solutions for demanding environments l Measures: - Development of customer-specific solution offerings which include consultation, hardware, software and services - Search for technology and
Slide 42: Future prospects and targets for the second half-year 2003
Future prospects and targets for the second half-year 2003 l Further improve the profitability of the core areas - Consolidation of the turnaround situation with Transport Revenue - Further improvement in the operating result of Network Integration l Continuous adaptation of the structures and costs
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