Ascom Investor Day November 3 rd , 2016 1 Where do we stand? NT - PowerPoint PPT Presentation

Ascom Investor Day November 3 rd , 2016 1

Where do we stand? • NT divestment was closed on September 30th • Ascom is now a one business company • New management team constituted • Strategy execution well underway Ascom focuses on closing digital information gaps allowing for the best possible decisions - anytime and anywhere 2 1 INVESTOR DAY | NOVEMBER 3RD, 2016 | ASCOM

Ascom today B2B Business-to-business Wireless on-site communication Nurse call Software & integration solutions Workflow Intelligence in several sectors Global workflow solution Dedicated solutions for the Leveraging these solutions in other • Headquartered in Baar, CH provider for: healthcare sector segments: • CHF 300m+ annual turnover • Ad-hoc • Secure establishments • 60% in healthcare, • Mobile • Industry • 1,300 employees in 15 • Mission-critical • Retail countries communication • Hospitality • Decision making 3 1 INVESTOR DAY | NOVEMBER 3RD, 2016 | ASCOM

Ascom’s four main strategy areas OneCompany Operational excellence, customer orientation and scale Delivery Drive Innovation Solution delivery, Growth Increased and focused transformation and thought and SW investment! leadership! Cash Flow Sales, Sales, Sales! Solution, not product selling Focus Alliances 4 1 INVESTOR DAY | NOVEMBER 3RD, 2016 | ASCOM

Agenda Investor Day Francis Schmeer OneCompany 1 Executive Vice President Operational excellence, Marketing & Business Development customer orientation and scale Delivery Drive Innovation Solution delivery, Growth Increased and focused transformation and thought and SW investment! leadership! Cash Flow 3 2 André Neu Sales, Sales, Sales! Claes Ödman Senior Vice President Chief Operating Officer Solution, not product selling Software Platforms Focus Alliances 4 Holger Cordes Chief Executive Officer 5 1 INVESTOR DAY | NOVEMBER 3RD, 2016 | ASCOM

Ascom Investor Day OneCompany Program 1

Strategic Area: OneCompany •OneCompany with one mission and one culture OneCompany Operational excellence, •Streamlined corporate organization to allow customer orientation economies of scale and market proximity and scale •Efficiency through corporate standardization and global teams •Operational excellence 7 1 INVESTOR DAY | NOVEMBER 3RD, 2016 | ASCOM

One headquarters for OneCompany * 8 1 INVESTOR DAY | NOVEMBER 3RD, 2016 | ASCOM

OneCompany Growth Drivers Sales • Direct reporting of regions to CEO • Region MD’s to reduce non-revenue generating responsibilities – faster feedback and decision-making combined with enhanced global processes • Sales Transformation office launched Software Platforms • New function managing and developing the current software, applications and platforms businesses – accelerating current and future stand-alone software • Increased scale, speed and innovation enables faster time-to- products and applications market Marketing & Business • Re-engineering to increase speed of demand generation • Strategic Alliances to drive global sales with largest industry Development players – enhancing demand generation in the short, mid and long term 9 1 INVESTOR DAY | NOVEMBER 3RD, 2016 | ASCOM

OneCompany Efficiency and Effectiveness Drivers Systems • Global Services and Supply Chain, IT, Quality functions integrated as global functions – growth through global scale, best practice and • Global Services organized to support further service revenue from efficiency of our product lines and operations consulting through recurring Finance • Integration of all financial resources into a common team • New ERP drives cost out of processes and supports faster growth – transparency, commercial insights and and time to market competitiveness through a global function 10 1 INVESTOR DAY | NOVEMBER 3RD, 2016 | ASCOM

Ascom is on target with savings, restructuring costs and timeline • OneCompany program lowers FTE base • Process changes result in sustainable structural cost reductions On track to achieve: • 10 mCHF in run rate EBITDA savings CHF • 10 mCHF in restructuring costs 11 1 INVESTOR DAY | NOVEMBER 3RD, 2016 | ASCOM

Ascom Investor Day Services Growth 1

Strategic Area: Delivery Delivery • Thought leadership in transformation of mobile , Solution delivery, mission-critical and ad-hoc business processes transformation and thought • Value and margin enhancement through world leadership! class consulting organization • New and enhanced value proposition through innovative service offerings • Increase share of recurring revenues 13 1 INVESTOR DAY | NOVEMBER 3RD, 2016 | ASCOM

Complexity to bridge the chasm in healthcare Change management Workflow improvement Apps and software Integration System complexity Integrations Lifecycle management 14 1 INVESTOR DAY | NOVEMBER 3RD, 2016 | ASCOM

“Power of One” execution Product Products Professional Services Installation Project Clinical Application Go-live Integration Training & Management Consulting Development Assistance Commissioning Solution Lifecycle Management Software Remote Remote Onsite Extended Helpdesk Interoperability Updates Access Support Support HW Warranty & Upgrades 15 1 INVESTOR DAY | NOVEMBER 3RD, 2016 | ASCOM

Why Solution Lifecycle Maintenance? Solution Lifecycle Maintenance Protect Investment Business-Critical Complex and highly Customer integrated environment Ascom Solution 1 Lifecycle plan Revenue Up selling Customer intimacy Recurring revenue development 16 1 INVESTOR DAY | NOVEMBER 3RD, 2016 | ASCOM

What do we provide? Ascom Solution Lifecycle plan Customer support Software maintenance Hardware repair 17 1 INVESTOR DAY | NOVEMBER 3RD, 2016 | ASCOM

Success of Ascom Solution Lifecycle plan ~35% +7.7% • 8,000 Contracts H1 2016 • 33% Professional • 90% renewal rate Solution services • 5-10 years duration Lifecycle • 67% Solution • Software Maintenance Revenue growth lifecycle services • Repair and Replacement 18 1 INVESTOR DAY | NOVEMBER 3RD, 2016 | ASCOM

Growth levers moving forward More Software Software Maintenance Solution Lifecycle Maintenance CAPEX to OPEX Accelerating Software as a Service HW as a Service Recurring Revenues Outsourcing Managed workflow environment Cloud delivery 19 1 INVESTOR DAY | NOVEMBER 3RD, 2016 | ASCOM

Professional Services Workflow analysis Change management Clinical assessment System delivery System validation and system design Erasmus, Norway GE MMG Netherlands SE Asia projects 20 1 INVESTOR DAY | NOVEMBER 3RD, 2016 | ASCOM

Customer and Ascom benefits Position Input product Ascom Provide development solutions Pre-study professional services Go-Live and ROI Tender or Pre-tender Continuous Efficiency purchase project improvement Patient safety 21 1 INVESTOR DAY | NOVEMBER 3RD, 2016 | ASCOM

OneCompany for Services Growth Global Global Global 500 16 Knowledge Portfolio Resources Service sharing Countries professionals OneCompany 10,000 >50 8 projects 8,000 Projects Global service Solution Lifecycle plans Larger than consultant engagements 1 mCHF 22 1 INVESTOR DAY | NOVEMBER 3RD, 2016 | ASCOM

Ascom Investor Day Innovation 1

Introduction: André Neu, SVP, Software Platforms • Joined Ascom October 1st, 2016 2007 – 2008 Lorenz Life Sciences 2008 – 2016 Cerner Corporation Pharmaceutical regulatory Healthcare IT submissions 1999 – 2007 Pervasive Software: Database Technology 5 years as paramedic for German Red Cross Diploma Business Information Systems Technical University of Darmstadt (Germany) 24 1 INVESTOR DAY | NOVEMBER 3RD, 2016 | ASCOM

Strategic Area: Innovation •Focused innovation drivers Innovation • Systems – existing products and applications Increased and focused SW investment! • Platforms – solution driven software innovation •Investment in in-house software development capabilities and capacities •Focus on global, open and flexible architecture Architecture matters! 25 1 INVESTOR DAY | NOVEMBER 3RD, 2016 | ASCOM

Market Environment 2002 EMR 2016 Point of Care - ERP-like coordination of schedules - Solutions leveraging mobile devices Healthcare - Charting on PC 1995 Department Solutions - Laboratory and Radiology leverage ERP-like information systems to coordinate work and distribute results 2004 Mobile Computing … Non-Healthcare - Blackberry 1998 BI - Salesforce.com - EDGE, 3G - 1991 ERP Business Intelligence concepts and technology becoming - R/3 marked SAP ERP more common 2006 Mobile Devices breakthrough and was introduced into many industries - Smartphones - Tablets November 1991 2020 2016 26 1 INVESTOR DAY | NOVEMBER 3RD, 2016 | ASCOM

Product Portfolio -> Solution Portfolio Vitals and alarms ICU & OR Raw Data Decision support, information aggregation Medical Device Gateway Bi-directional device connectivity Device Mgmt Nurse Call Dispatch Mobile Alarms Alarms ACD / Skill-based Smart room technology Information routing of tasks interacting with mobile within clinical devices context KPI tracking Coordinate robot 27 devices 1 INVESTOR DAY | NOVEMBER 3RD, 2016 | ASCOM