1 2 [ ] AGENDA 20 AUGUST 2014 Review H1/2014 Financial - - PowerPoint PPT Presentation

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AGENDA 20 AUGUST 2014

Ascom Half-Year Media Conference 2014

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• Review H1/2014
• Financial Statements H1/2014
• Outlook

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STRONG H2 EXPECTED AFTER SLOW START IN H1/2014

Ascom Half-Year Media Conference 2014

Ascom Group  Slow start mainly due to fewer large projects and delays of project decisions  Positive book-to-bill ratio in both divisions resulting in build-up of order backlog  Based on backlog and healthy pipeline much stronger second half-year expected

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H2 WITH MUCH STRONGER EBITDA ANTICIPATED

Ascom Half-Year Media Conference 2014

Wireless Solutions Division  Mixed business performance  On-going investments in important growth initiatives such as Ascom Myco and UNITE software suite  WS anticipates stronger second half-year with a much stronger EBITDA margin

Network Testing Division  Large orders received in H1/2013 could only be partially compensated  Asia Pacific: new organization / investments in market recovery  NT targets to deliver profitability for the full year 2014 in line with the previous year

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RECOVERY EXPECTED AFTER WEAK H1/2014

H1 BELOW EXPECTATIONS BUT MARKET POTENTIAL INTACT

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WEAK TOP LINE BUT GOOD ORDER BACKLOG  Overall we see neither major fundamental changes nor structural issues in our markets. The good potential in our markets was confirmed.  Weaknesses in certain regions have been addressed.  Historically Ascom has stronger H2 and December is key month. DOUBLE-DIGIT EBITDA MARGIN DESPITE LOWER REVENUES  EBITDA margin: 10.5% (including non-core one-offs)  Group profit: CHF 8.2 million HEALTHY BALANCE SHEET  Net cash position of CHF 2.3 million  Equity ratio of 48.0%

• 1. Fewer projects over CHF 1 million, delay of some

projects and performance below expectations mainly in the US lead to revenue decrease

• 2. EBITDA margin of 10.9%
• 3. Important strategic wins in Health Care in

Norway, Netherlands and Sweden

• 4. High order backlog and good project pipeline
• 5. Much stronger EBITDA margin in H2 expected –

following the seasonal pattern of previous years

ASCOM WIRELESS SOLUTIONS

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STRONG SECOND HALF-YEAR ANTICIPATED

Ascom Half-Year Media Conference 2014

 Dedicated focus on growth initiatives

• Ascom Myco as unique purpose-built smart

device for healthcare

• Increased investments into UNITE software

product line  Bounce back in US

• Thorough external assessment confirms

attractive market potential

• New Managing Director appointed for US

 Small acquisitions in Australia and Malaysia as first steps in growth markets expansion

ASCOM WIRELESS SOLUTIONS

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FURTHER INVESTMENTS IN GROWTH INITIATIVES

Ascom Half-Year Media Conference 2014

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CHALLENGING FIRST HALF YEAR

• 1. Large orders received in H1/2013 could only

partially be compensated

• 2. Large US operators returning to seasonal

purchasing pattern

• 3. EMEA overall on track, but APAC and Latin

America below expectations

• 4. Stable gross margin, but overall lower profitability

due to revenue decrease

• 5. Buildup of order backlog during the first half and

profitability for FY 2014 expected in line with the previous year

Ascom Half-Year Media Conference 2014

ASCOM NETWORK TESTING

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 Focus on recovery in APAC

• Assessment confirms capability of Network

Testing to recover in APAC

• Appointment of new Managing Director
• Dedicated plan to recover implemented

 Investments in growth initiatives:

• Development of Capacity Management
• Integrated solutions capabilities
• eContract Exchange B2B Simplex

Ascom Half-Year Media Conference 2014

WELL POSITIONED TO BOUNCE BACK IN H2/2014

ASCOM NETWORK TESTING

BIANKA WILSON

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FINANCIAL STATEMENTS H1/2014

Ascom Half-Year Media Conference 2014

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ASCOM GROUP H1/2014 IN SUMMARY

Revenue

CHF 202.7m

Gross margin 48.1%

Ascom Half-Year Media Conference 2014 13

EBITDA

CHF 21.3m

10.5% Group profit

CHF 8.2m

Total assets

CHF 453.8m

Backlog

CHF 165.0m

NWC

CHF

65.3m Net cash

CHF 2.3m

Equity ratio 48.0% Free CF

(incl. M&A) CHF

16.8m

Core business1) Other2) H1/2013 H1/2014 H1/2013 H1/2014 Incoming orders 248.9 219.7 10.8 9.3 Revenue 214.8 193.4 10.3 9.3 Gross profit 111.5 97.6 0.6

• Gross margin

51.9% 50.5% 5.8% n/a EBIT 17.4 7.8 0.4 4.4 EBIT margin 8.1% 4.0% 3.9% 47.3% EBITDA 27.3 16.7 0.6 4.6 EBITDA margin 12.7% 8.6% 5.8% 49.5%

CORE BUSINESS FOCUS

Ascom Half-Year Media Conference 2014 14

1) Core business = Total Group minus non-core activities (segment “Other”) comprising real estate activities related to businesses disposed of in prior years 2) Other includes “Other income” of total CHF 4.6 million related to the divestment of real estate in Switzerland

(CHFm)

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WIRELESS SOLUTIONS H1/2014 PERFORMANCE OVERVIEW

Ascom Half-Year Media Conference 2014

• Incoming orders CHF 161.9 million (H1/2013: CHF 171.9 million)
• Revenue of CHF 140.8 million (H1/2013: CHF 149.7 million)
• Inorganic contribution from the Integrated Wireless (AU) acquisition of 2.9% on

incoming orders and 2.3% on revenue

• Unfavorable FX translational impact of 1.9% on incoming orders and 2.2% on

revenue

• Backlog increase of CHF 22.9 million compared to year-end 2013
• EBITDA margin of 10.9% (H1/2013: 14.0%)

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NETWORK TESTING H1/2014 PERFORMANCE OVERVIEW

Ascom Half-Year Media Conference 2014

• Incoming orders CHF 57.9 million (H1/2013: CHF 77.1 million)
• Revenue of CHF 52.7 million (H1/2013: CHF 65.2 million)
• Unfavorable FX translational impact of 2.6% on incoming orders and 2.9% on

revenue

• Backlog increase of CHF 4.9 million compared to year-end 2013
• EBITDA margin of 4.4% (H1/2013: 11.8%)

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CONTINUED BACKLOG BUILD

Ascom Half-Year Media Conference 2014

(CHFm) 30.6.2013 31.12.2013 30.6.2014 Wireless Solutions 113.5 102.6 125.5 Network Testing 44.9 34.5 39.4 Core business1) 158.4 137.1 164.9 Other 1.1 0.2 0.1 Ascom Group 159.5 137.3 165.0

1) Core business = Total Group minus non-core activities (segment “Other”) comprising real estate activities related to businesses disposed of in prior years

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EBITDA REFLECTS VOLUME DECREASE AND COST SAVINGS

Ascom Half-Year Media Conference 2014

21.0 15.4

• 4.5

1.7

• 1.3
• 1.5

EBITDA H1/2013 Volume impact Func. costs M&A related Others EBITDA H1/2014

Wireless Solutions

7.7 2.3

• 7.0

2.2

• 0.6

EBITDA H1/2013 Volume impact

• Func. costs

Other EBITDA H1/2014

Network Testing

(CHFm)

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EBITDA TO GROUP PROFIT RECONCILIATION

Ascom Half-Year Media Conference 2014

21.3 8.2

• 9.1
• 2.6
• 1.4

EBITDA H1/2014 Depreciation / amortization Net financial expenses Income tax Group profit H1/2014

(CHFm)

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CASH DEVELOPMENT REMAINS STRONG

Ascom Half-Year Media Conference 2014

58.2 49.8 21.3 15.0

• 5.0
• 6.1

0.8

• 4.0
• 13.7
• 14.0
• 2.7

Cash at 1.1.2014 EBITDA NWC Provision related effects CapEx Acquisitions Interest and tax payments Debt related cash flows Dividend Other cash flows Cash at 30.6.2014

(CHFm)

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NET CASH POSITION

Ascom Half-Year Media Conference 2014

(CHFm)

80.3 65.3

• 40

40 80 120 31.12.2013 30.6.2014

Net working capital (NWC)

Trade receivables Inventories Trade payables Customer prepayments Total NWC 52% 48%

• 80.0
• 40.0
• 40.0

80.0 31.12.2013 30.6.2014

Net cash/debt and Equity ratio

Cash and equivalents Borrowings Net cash/debt Equity ratio (in %)

SHAREHOLDERS’ EQUITY

Ascom Half-Year Media Conference 2014 22

246.4 234.6 217.8

8.2

• 20.0
• 14.0
• 2.8

Balance at 31.12.2013 Group profit IAS 19, net of income tax Dividend (share premium) Other Balance at 30.6.2014

(CHFm)

FRITZ MUMENTHALER

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OUTLOOK

Ascom Half-Year Media Conference 2014

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ASCOM WIRELESS SOLUTIONS

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THE POWER OF ONE –IMPROVING WORKFLOW MANAGEMENT

Ascom Half-Year Media Conference 2014

C U S T O M E R

Patient Systems

C U S T O M E R

Unite Software

C U S T O M E R

Mobility

C U S T O M E R

Services

System integrator Reseller

C U S T O M E R

Patient Systems UNITE Software Mobility Services

• Clinical Alarms – increased patient safety

and efficiency The right alarm goes to the right nurse with the right information

• Clinical Information – better informed

decisions EHR integration provides access to patient information and clinical data

• Workforce Management – optimized use of

available resources Workforce overview makes it easier to put the right person on the right job and follow-up on efficiency and performance

ASCOM UNITE – THE CORE OF INTEGRATED WORKFLOW INTELLIGENCE

Unite Today Current Roadmap Mid-term Plan Long-term Plan

ASCOM UNITE

Mobility Patient Monitor Nurse Call System Census Trends Order Entry System Schedulin g, Time And Attendanc e Bed Placement (ADT) Electroni c Health Records Test Results Pharmacy Ventilator IV Pump Bed Alarm

ASCOM UNITE focus areas

Ascom Half-Year Media Conference 2014 26

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ASCOM MYCO – INTEGRATED WORKFLOW INTELLIGENCE IN THE PALM OF YOUR HAND

Ascom Half-Year Media Conference 2014

The combination of UNITE, Patient Systems and our new purpose-built smartphone Ascom Myco helps the caregiver to:

• Respond faster at the point of care
• Be more efficient in decision making
• Spend more time bedside with patients
• Be less exposed to alarm fatigue
• Reduce operational cost

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ASCOM PATIENT SYSTEMS – DRIVING LEADERSHIP POSITION IN ELDERLY CARE

Ascom Half-Year Media Conference 2014

ASCOM teleCARE IP Always present. Always on. Always safe.

• Ascom developed, bidirectional wireless technology
• Comprehensive set of hardwire & wireless devices
• Scalable from basic to high-end
• Embedded mobility interface for distributed alerts
• Released Q4/2013 to CE countries – expanding to US

market 2014 addressing non-acute care segment

reddot design award winner 2014

Customizable

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ASCOM NETWORK TESTING

Ascom Half-Year Media Conference 2014

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Trial Roll-out Optimization Operation Test & Measurements

TEMS Investigation, TEMS Pocket

Reporting & Analysis

TEMS Discovery, TEMS Visualization

Benchmarking & Monitoring

TEMS Automatic, TEMS Symphony TEMS Monitor Master

LEVERAGING VOLTE LEADERSHIP

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VoLTE

TEMS™ Capacity Manager

 Understand IF, WHEN and WHERE networks will be congested  Make intelligent investment decisions that reduce capital need

INNOVATIVE TECHNOLOGY MAKING A DIFFERENCE

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Capacity limits When to expand What specific network elements have reached their limits

TEMS CAPACITY MANAGER

Ascom Half-Year Media Conference 2014

Providing a single, easy to use web portal for storing, reporting

and visualizing all the RAN’s service capacity information.

Enabling consistent optimization of soft capacity for WCDMA and LTE networks. Operators can use their current capacity

resources up to their optimized limits before investing in CAPEX on new resources.

Delivering just-in-time capacity expansion capability

because of its comprehensive approach to forecasting

CAPEX savings

• f up to 40%

Extremely short payback

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COMPLEX BILATERAL CONTRACTS MADE SIMPLE

Ascom Half-Year Media Conference 2014

New solution automates eContract Exchange between carriers

• Replaces expensive, time-consuming manual processes
• Provides user tools to monitor & measure contract performance

Provides carriers cost savings & interconnect efficiencies:

• Reduces risk, legal issues due to data errors & ambiguities
• Enables stakeholders to collaborate on contracts (on both sides)
• Validates data, e.g. dial codes, pricing, charges, volumes in real time
• Helps carriers reduce resources allocated to contract management by 50%

B2BSimpleX: a significant market opportunity

• First to market with complete ‘all-in-one’ solution
• Carrier partners, e.g. Deutsche Telekom, TeliaSonera
• Multiple pricing & service levels for entire carrier market
• Very promising growth rate and ROI

STARTING POINT

Ascom historically has a stronger second half-year High order backlog and strong project pipeline in both divisions Tight cost management in place Strengthened management team with appointment of new key people

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OUTLOOK FY 2014

Ascom Half-Year Media Conference 2014

TWO IMPORTANT ORDERS ALREADY RECEIVED IN H2/2014

• Wireless Solutions wins CHF 4.7 million order from OEM customer for

DECT wireless network solution and handsets.

• Network Testing receives a lower single digit CHF million order from

Swisscom for products and solutions to expand, improve, and continously monitor the performance of its mobile network.

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OUTLOOK

Ascom Half-Year Media Conference 2014

Targets 2014* for the Core Business

• Revenue at previous year’s level
• EBITDA margin in the range of 14–16%

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OUTLOOK

Ascom Half-Year Media Conference 2014

* Outlook assumes a steady economical environment and at least stable currency relations.

Net Profit 2014*

• Ascom anticipates net profit to be at around the previous year’s level

(2013: CHF 36.9 million)

Ascom Holding AG

• Corp. Communications / IR

Tel: + 41 41 544 78 00 Zugerstrasse 32 Fax: + 41 41 761 97 25 6340 Baar investor@ascom.com

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GROUP CONTACT

Ascom Half-Year Media Conference 2014

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LEGAL DISCLAIMER

Ascom Half-Year Media Conference 2014

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.

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