WELCOME TO THE ASCOM MEDIA AND ANALYST CONFERENCE 2013 ANNUAL - PowerPoint PPT Presentation

WELCOME TO THE ASCOM MEDIA AND ANALYST CONFERENCE 2013 ANNUAL RESULTS 1

ASCOM MISSION-CRITICAL WIRELESS COMMUNICATION WORK-FLOW OPTIMIZATION IN HEALTHCARE TRUSTED PARTNER FOR WIRELESS NETWORK INVESTMENT AND MANAGEMENT 2

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 divergence between the actual results, financial situation, development or performance of Ascom and those explicitly presumed in these statements. Against the background of these uncertainties readers should not rely on forward-looking statements. Ascom assumes no responsibility to update forward-looking statements or adapt them to future events or developments. Ascom Annual Media Conference 2014 3

THE EXECUTIVE BOARD RIKARD LUNDQVIST CLAES ÖDMAN BIANKA WILSON FRITZ MUMENTHALER GENERAL MANAGER GENERAL MANAGER CHIEF FINANCIAL OFFICER NETWORK TESTING WIRELESS SOLUTIONS CHIEF EXECUTIVE OFFICER Fritz Mumenthaler Bianka Wilson Claes Ödman Rikard Lundqvist Ascom Annual Media Conference 2014 4

[ ] AGENDA 5 MARCH 2014  Review 2013  2013 Financial Results  Ascom Wireless Solutions  Ascom Network Testing  Outlook Ascom Annual Media Conference 2014 5

[ ] REVIEW 2013 FRITZ MUMENTHALER Ascom Annual Media Conference 2014 6

ASCOM ACHIEVEMENTS 2013 1 DELIVERED ON STRATEGY – BUILT THE BASE FOR FUTURE GROWTH 2 DELIVERED ON OPERATIONAL EXCELLENCE 3 FINANCIAL KPI’S SUBSTANTIALLY IMPROVED Ascom Annual Media Conference 2014 7

ASCOM ACHIEVEMENTS 2013 DELIVERED ON STRATEGY – BUILT THE BASE FOR FUTURE GROWTH  Realized strong growth in incoming orders and order backlog  Expanded foot-print in the healthcare segment (Wireless Solutions Division)  Leveraged leading market position in EMEA and Americas (Network Testing Division)  Made a bolt-on acquisition in a growth market Ascom Annual Media Conference 2014 8

ASCOM ACHIEVEMENTS 2013 DELIVERED ON OPERATIONAL EXCELLENCE  Achieved again a high EBITDA margin in Wireless Solutions  Sustained the turnaround in Network Testing  Streamlined and adjusted the Head Office  Completed the last step towards an asset-light Ascom Ascom Annual Media Conference 2014 9

ASCOM ACHIEVEMENTS 2013 FINANCIAL KPI’S SUBSTANTIALLY IMPROVED  Delivered EBITDA of 15.7% in the core business  Delivered Group profit of CHF 36.9 million (PY CHF 21.8 million)  Delivered strong operating cash flow of CHF 63.3 million  Reduced net debt to CHF 2.9 million (PY CHF 41.3 million)  Increased equity ratio to 51.6% Ascom Annual Media Conference 2014 10

ASCOM WIRELESS SOLUTIONS Solution provider for work-flow optimization in healthcare  Finalized integration of GE Nurse Call; further leverage of patient systems business initiated Strengthened and broadened its strategic  position in the attractive healthcare market through strategic wins  Realized good growth in incoming orders and in order backlog The higher order backlog, the acquisition of  Integrated Wireless, the initiated growth measures as well as further planned acquisitions will bolster profitable growth Ascom Annual Media Conference 2014 11

ASCOM NETWORK TESTING Trusted partner in wireless network investment and management  Leveraged its global #1 market position to expand its business in EMEA and in the Americas Commitment to innovation resulted in a  leading position in VoLTE, a unique offering in Test & Measurement (iPhone testing and Blixt) and a promising eContracts platform for operators (Systems & Solutions)  Order backlog, initiated growth initiatives and favorable market dynamics will bolster profitable growth Ascom Annual Media Conference 2014 12

[ ] 2013 FINANCIAL RESULTS BIANKA WILSON Ascom Annual Media Conference 2014 13

SIGNIFICANT ACHIEVEMENTS IN 2013 Incoming order growth of 9.5%  Ascom Group  Revenue growth of 2.2%  Increased EBITDA margin to 14.7% (PY 10.9%)  Profit of CHF 36.9m (PY CHF 21.8m) Core  Incoming order growth of 10.6% business 1)  Revenue growth of 2.7%  EBITDA margin of 15.7%  Incoming order growth of 7.6% Wireless Solutions  Revenue growth of 2.8% Increased EBITDA margin to 17.3% (PY 16.2%)  Incoming order growth of 17.7%  Network Testing  Revenue growth of 2.2% Increased EBITDA margin to 13.4% (PY n/a)  1) Core business = Total Group minus non-core activities (segment “Other”) comprising real estate activities related to businesses disposed of in prior years Ascom Annual Media Conference 2014 14

GROWTH ANALYSIS CHFm 2012 Organic FX Inorganic 2013 ∆ 13/12 Incoming orders Wireless Solutions 296.1 2.7% 0.9% 4.0% 318.7 7.6% Network Testing 118.6 17.7% - - 139.6 17.7% Core business 414.3 7.0% 0.7% 2.9% 458.1 10.6% 1) Other 22.1 2.1% 0.1% -12.0% 19.9 -9.8% Ascom Group 436.4 6.8% 0.6% 2.1% 478.0 9.5% Revenue Wireless Solutions 297.7 -0.9% 0.9% 2.8% 306.1 2.8% Network Testing 130.4 2.1% 0.1% - 133.3 2.2% Core business 1) 427.8 0.1% 0.7% 1.9% 439.2 2.7% Other 22.0 4.4% 0.1% -11.6% 20.5 -7.2% Ascom Group 449.8 0.3% 0.6% 1.3% 459.7 2.2% 1) Core business = Total Group minus non-core activities (segment “Other”) comprising real estate activities related to businesses disposed of in prior years Ascom Annual Media Conference 2014 15

REVENUE BY REGION / KEY COUNTRY (Based on location of customer) 69 69 58 54 47 44 91 NL NL CH CH DE DE 83 345 US US 336 101 95 19 14 APAC APAC EMEA EMEA Americas Americas 2013 Corporate / division headquarter 2012 Subsidiary or branch Acquired 2 January 2014 Key country = > 10% of Group revenue Ascom Annual Media Conference 2014 16

CORE BUSINESS IN FOCUS Most dilutive non-core activities will discontinue end 2015 Core business 1) Other CHFm 2012 2013 2012 2013 Incoming orders 414.3 458.1 22.1 19.9 Revenue 427.8 439.2 22.0 20.5 Gross profit / (loss) 215.9 228.3 1.2 (1.2) Gross margin (%) 50.5% 52.0% 5.5% n/a EBIT 26.2 49.4 0.3 (1.8) EBIT (%) 6.1% 11.2% 1.4% n/a EBITDA 48.3 68.9 0.7 (1.3) EBITDA (%) 11.3% 15.7% 3.2% n/a 1) Core business = Total Group minus non-core activities (segment “Other”) comprising real estate activities related to businesses disposed of in prior years Ascom Annual Media Conference 2014 17

CONTINUED EBITDA IMPROVEMENT IN CORE BUSINESS (CHFm) Driven by volume increase and savings Wireless Solutions Network Testing - 1.1 1.4 - 1.2 11.8 0.4 -2.0 2.7 17.9 4.3 -0.5 11.6 53.1 -4.6 48.2 EBITDA Restruct. Savings Volume Margin Others EBITDA EBITDA Volume Margin Func. One-offs Others EBITDA 2012 expense impact impact 2013 2012 impact impact costs 2013 Ascom Annual Media Conference 2014 18

SIGNIFICANT IMPACT OF H1/H2 SEASONALITY (CHFm) H2 delivers higher revenue and better profitability 100 70.0% 200 60.0% Wireless Solutions Network Testing 60.0% 50.0% 53.0% 50.0% 55.7% 55.4% 50.9% 50.5% 52.7% 49.1% 40.0% 40.0% 41.0% 30.0% 15.0% 20.0% 150 30.0% 11.8% 10.3% 20.5% 10.0% 17.3% 20.0% 15.0% 0.0% 14.0% -10.0% 10.0% -20.0% 60.8 69.6 65.2 68.1 141.5 156.2 149.7 156.4 50 -30.0% 100 0.0% H1/2012 H2/2012 H1/2013 H2/2013 H1/2012 H2/2012 H1/2013 H2/2013 Gross margin EBITDA margin Gross margin EBITDA margin Ascom Annual Media Conference 2014 19

EBITDA TO GROUP PROFIT RECONCILIATION (CHFm) 38% EBITDA increase leads to nearly 70% higher Group profit - 20.0 - 1.9 - 3.1 - 1.0 - 4.7 67.6 36.9 EBITDA 2013 Depreciation / Net FX losses Net interest Other financial Income tax Group profit 2013 amortization expenses expenses Ascom Annual Media Conference 2014 20

TAX BRIDGE (CHFm) Significant tax reduction due to tax loss carry-forwards 2.1 2.5 -8.5 -1.9 10.5 4.7 Expected income tax Effect of income/ Net effect from Net effect from tax Other effects Income tax expenses expenses 2013 expenses taxed with deferred tax loss carry-forwards 2013 a different rate or not taxed Ascom Annual Media Conference 2014 21

EXCELLENT CASH GENERATION (CHFm) Strong cash generation enables balance sheet efficiency - 11.3 20.9 - 8.6 - 12.2 - 9.0 67.6 -42.9 - 12.2 2.8 63.1 58.2 Cash at EBITDA NWC Provision CapEx Acquisition Interest and Debt related Dividend / Other cash Cash at 1.1.2013 improvement related cash tax payments cash flows capital flows 31.12.2013 flows distribution Ascom Annual Media Conference 2014 22

IMPROVED BALANCE SHEET EFFICIENCY (CHFm) Enables future priorities for capital allocation Net working capital (NWC) Net debt and Equity ratio 120 120 101.2 70 80 80.3 32% 52% 20 40 -30 0 -80 -40 2012 2013 -130 2012 2013 Trade receivables Inventories Trade payables Customer prepayments Cash and equivalents Borrowings Total NWC Net debt Equity ratio (in %) Ascom Annual Media Conference 2014 23