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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.
Investor Presentation UBS, Sep 2014 © Ascom Group
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VISION AND STRATEGIC DIRECTION
We focus on high margin businesses in dynamic niche markets,
where we enjoy #1 or #2 leadership positions, supported by
global demographic / technological mega trends
„The global No.1 in mission-critical wireless
communication in healthcare and solution provider for
point of care workflow optimization“
„The global trusted partner and assurance provider for
wireless network performance and customer
experience analytics“
Investor Presentation UBS, Sep 2014 © Ascom Group
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BUSINESS FOCUS
INDUSTRY: INFORMATION & COMMUNICATION TECHNOLOGY
 Business-to-business
 Wireless on-site communication, Nurse Call, Integrative Solutions
 Mobile Telecom, Radio Access Network (RAN)
ASCOM RUNS TWO BUSINESSES
Ascom Wireless Solutions
Ascom Network Testing
Workflow optimization and critical
communication for Health Care
Network performance and customer
experience analytics
 Healthcare facilities
 Retail, Prisons, Power plants,
Manufacturing facilities etc.
 Enterprise Mobility Vendor




Investor Presentation UBS, Sep 2014 © Ascom Group
Mobile Network Operators
Network Equipment Vendors
Managed Service Providers
Regulators
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ASCOM GROUP AT A GLANCE
Revenue
CHF 459.7m
International market leadership
Customer ROI at the core of our work
Gross
margin
49.4%
Clear strategic focus
Presence
in 18
countries
Global:
Selling to
customers
in 130
countries
US 20%
Solid balance sheet
EBITDA
CHF 67.6m
Asset light strategy
EPS
CHF 1.07
Strong cash flow generation
FCF
(excl. M&A)
Re-shaped for growth
CHF 56.9m
Total
Assets
CHF 477.8m
of Group
revenue
Employees
FTE 1,600
Note: Figures as per and for the year ended 31.12.2013.
Investor Presentation UBS, Sep 2014 © Ascom Group
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MANAGEMENT TEAM
FRITZ MUMENTHALER
CHIEF EXECUTIVE OFFICER
BIANKA WILSON
CHIEF FINANCIAL OFFICER
CLAES ÖDMAN
GENERAL MANAGER
WIRELESS SOLUTIONS
RIKARD LUNDQVIST
GENERAL MANAGER
NETWORK TESTING
FRANCIS SCHMEER
HEAD STRATEGY AND
BUSINESS DEVELOPMENT
Fritz Mumenthaler Bianka Wilson
Claes Ödman
Rikard Lundqvist
Francis Schmeer
Joined in 2005.
Joined in 2013.
Joined in 2011.
Joined in 2009.
Joined in 2014.
More than 20 years
experience with
international industrial companies.
Experienced
finance expert
with a solid track
record and a
broad
international
background.
Based in Asia for
8 years; Taiwan
and Singapore.
Significant
international
experience.
Solid track record
in strategy and
business
development in
multiple industries
and geographies.
Investor Presentation UBS, Sep 2014 © Ascom Group
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MARKET LEADER POSITION
The Power of One in
Health Care
End-to-end – Purpose built – Open integration
Patient System
In top 3 worldwide
Middleware
Leading position linking critical systems to mobility
Mobility
# 1 worldwide
The Power of One for
Network Operators
End-to-end – All phases of the network life cycle
Test & Measurement
# 1 worldwide
Benchmark & Monitoring
# 2 worldwide
Reporting & Analysis
# 3 worldwide
Investor Presentation UBS, Sep 2014 © Ascom Group
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GLOBAL MARKET PRESENCE
(REVENUE 2013, CHFM)
249
49 45
10
41
CEE
Western Europe
North America
3
19
China
Middle East
/ Africa
8
3
7
APAC
Latin America
Corporate / division headquarter
Subsidiary or branch
Investor Presentation UBS, Sep 2014 © Ascom Group
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AT THE FOREFRONT OF INNOVATION AND TECHNOLOGY
Continued high investments in R&D
 > 10% of net revenue at Group level (expensed and capitalized)
 > CHF 50m per year
Ascom Wireless Solutions
Ascom Network Testing
Providing workflow optimization in
healthcare
Independent network performance and
customer experience assurance
 Software applications based on Unite
 VoLTE leadership
 Ascom Myco™ - Ruggedized, dual
mode smart phone for the healthcare
industry
 TEMS™ Capacity Manager
 Next generation IP and wireless nurse
call – for acute and non-acute care
 B2BSimpleX
 Blixt – available bandwidth
measurement technology
 Testing with iPhone
Investor Presentation UBS, Sep 2014 © Ascom Group
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STRATEGIC FOCUS: SOFTWARE AND SERVICES
ASCOM WIRELESS SOLUTIONS
ASCOM NETWORK TESTING
20%
30%
30%
50%
20%
50%
Software
Hardware
Investor Presentation UBS, Sep 2014 © Ascom Group
Services
Software
Hardware
Services
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ASCOM WIRELESS SOLUTIONS
Investor Presentation UBS Wolfsberg, Sep 2014 © Ascom Group
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WIRELESS SOLUTIONS –
ATTRACTIVE INDUSTRY FUNDAMENTALS
MARKET DRIVERS
CUSTOMER CHALLENGES
Ageing population
Provide adequate care facilities,
meeting increasing regulatory demands
Pressure to improve efficiency in
healthcare systems
Optimize workflow of scarce qualified
care staff
Enhancing care through effective
commmunication
Require tailored technology solutions,
leverage mobility
ASCOM SUPPORTS HEALTH CARE PROVIDERS TO OVERCOME
MARKET CHALLENGES
Investor Presentation UBS, Sep 2014 © Ascom Group
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AGEING POPULATION (60+) REQUIRES MORE CARE
(IN MILLION)
Source: UNFPA website, World Population Ageing
Investor Presentation UBS, Sep 2014 © Ascom Group
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CARE IS PROVIDED IN DIFFERENT WAYS
Home care
Quality of life
Rising quality at
lower costs
Less quality
at higher costs
Institutional care
Acute care
10’000 $
1’000 $
100 $
10 $
1$
Cost of care per day
Investor Presentation UBS, Sep 2014 © Ascom Group
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WIRELESS SOLUTIONS - STRATEGIC TRANSITION
 Global leader in
Healthcare
communications
 Global presence
–solutions
provider in
healthcare
Yesterday
Today
Tomorrow
Product House for
dedicated on site
mobility
System House for
on site mobility and
nurse call
Europe presence
Europe and US
presence
Solutions
Provider for point
of care workflow
optimization in
healthcare
Global presence
 Mobility & Alarming
for segments with
mission critical needs
 One portfolio
 Supply chain
excellence
 Process
excellence
 Own manufacturing
 Thought leader
Market
positioning
 Autonomous local
sales units and
functional
organization
Investor Presentation UBS, Sep 2014 © Ascom Group
 Mobility, Software,
& Patient Systems
businesses in their
own right
 Supply chain
excellence
 Asset light sourcing
 Product lines and
matrix organization
 Products &
Professional
Services optimized Innovation
for direct and indirect
business globally
 Process excellence
 Common divisional
operating model
Operational
Efficiency
 Transparency
through one ERP
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ASCOM WIRELESS SOLUTIONS POSITIONING
Ad-hoc alerts
Situational awareness
Investor Presentation UBS, Sep 2014 © Ascom Group
Integrations
Cellular
Sensors, Machines, Monitors
Mission critical – Design and Assurance
MDD, FDA requirements
Integrations
Integrations
WLAN, LAN
Call Manager
Portering
Building control
LIS, RIS
ERP
EHR
Long term
planning and
administration
IT and
communications
Infrastructure
DECT
IT and
Communications
SW
Positioning
Specialized
operations
software
Unified Communications
General operations
software
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THE POWER OF ONE IN WIRELESS SOLUTIONS
IMPROVING WORKFLOW MANAGEMENT
Unite Software
Patient Systems
Mobility
Services
CUSTOMER
Patient System
Unite Software
Mobility
Services
System integrator
Reseller
CUSTOMER
CUSTOMER
Investor Presentation UBS, Sep 2014 © Ascom Group
CUSTOMER
CUSTOMER
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LEVERAGING A STRONG CUSTOMER BASE
Investor Presentation UBS, Sep 2014 © Ascom Group
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GROWTH INITIATIVES IN WIRELESS SOLUTIONS
Develop SW
Business
Nurse Call
Globalization
Next
Generation
Smart Device
Service
Expansion
Growth Market
Focus
OEM Market
Share
Investor Presentation UBS, Sep 2014 © Ascom Group
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EFFICIENT STAFF PLANNING AND ALARM ESCALATION
Patient
Systems
Unite Middleware (e.g. Unite Assign)
Investor Presentation UBS, Sep 2014 © Ascom Group
Mobility
Devices
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ASCOM UNITE – THE CORE OF INTEGRATED
WORKFLOW INTELLIGENCE
Patient
Monitor
Nurse
Call
System
Mobility
Census
Trends
Schedulin
g, Time
And
Attendanc
e
Bed
Placement
IV Pump
ASCOM
UNITE
Bed
Alarm
(ADT)
Order
Entry
System
Ventilator
Test
Results
Unite Today
Clinical Alarms
 Increased patient safety and
efficiency
 The right alarm goes to the right
nurse with the right information
Pharmacy
Electroni
c Health
Records
Current Roadmap
Mid-term Plan
Investor Presentation UBS, Sep 2014 © Ascom Group
Long-term Plan
Clinical Information
 Better informed decisions
 EHR integration for access to
patient information and clinical
data
Workforce Management
 Optimized use of available
resources
 Put the right person on the right
job and follow-up on efficiency
and performance
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ASCOM MYCO – INTEGRATED WORKFLOW
INTELLIGENCE IN THE PALM OF YOUR HAND
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
Investor Presentation UBS, Sep 2014 © Ascom Group
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ASCOM PATIENT SYSTEMS – DRIVING LEADERSHIP
POSITION IN ELDERLY CARE
ASCOM teleCARE IP
Always present. Always on. Always safe.
Customizable
 Ascom developed, bidirectional wireless technology
 Comprehensive set of hardwire & wireless devices
 Scalable from basic to high-end
reddot design award
winner 2014
 Embedded mobility interface for distributed alerts
 Released Q4/2013 to CE countries
 Launched H1/2014 in US non-acute care segment
Investor Presentation UBS, Sep 2014 © Ascom Group
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PURPOSE BUILT FEATURES MAKE A BIG DIFFERENCE
Easy, interactive message handling
Alarming button
Withstand water splashes
Remote software update
Withstands disinfection
Professional Clip options
Robust construction
Easy replaceable battery
Multi-radio
Long life cycles
Charging concept
Repair services
Improved workflow for professional use
Investor Presentation UBS, Sep 2014 © Ascom Group
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GROWTH EXAMPLE: US BUSINESS
60
50
49.0
44.8
USDm
40
30
31.1
26
20
21.4
17.5
10
7.9
9.2
10
2003
2004
2005
19.4
11.9
0
Investor Presentation UBS, Sep 2014 © Ascom Group
2006
2007
2008
2009
2010
2011
2012
2013
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ASCOM NETWORK TESTING
Investor Presentation UBS Wolfsberg, Sep 2014 © Ascom Group
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NETWORK TESTING –
ATTRACTIVE INDUSTRY FUNDAMENTALS
MARKET DRIVERS
OPERATOR CHALLENGES
Increasing demand for mobile
broadband
Expand capacity to meet demand
Increasing network complexity
Improve efficioperational efficiency to
improve profitability / ROI
Decreasing average revenue per user
Manage customer experience to retain /
attract customers
ASCOM SUPPORTS TELECOMMUNICATIONS OPERATORS TO
OVERCOME MARKET CHALLENGES
Investor Presentation UBS, Sep 2014 © Ascom Group
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MOBILE NETWORK DATA TRAFFIC GROWTH
EXPECTED TO CONTINUE
12
Exabytes per Month
10
Mobile video as strongest
driver will grow exponentially
8
6
4
2
0
2012
2013
Mobile Video
2014
Mobile Web/Data
2015
Mobile M2M
2016
2017
Mobile File sharing
Source: Cisco VNI Mobile Forecast, 2013 / Figures in legend refer to traffic share in 2017
Investor Presentation UBS, Sep 2014 © Ascom Group
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LTE POPULATION COVERAGE STILL INSIGNIFICANT
100%
follows
90%
Population coverage in %
80%
85%
Rural
85%
60%
55%
50%
50%
45%
40%
20%
Suburban
Urban
5%
0%
2011
2017
GSM/EDGE
2011
2017
WCDMA/HSPA
2011
2017
CDMA
Metro
2011
2017
LTE
Percentages represent portion of population that are within the deployed coverage area, not actual subscriber penetration.
Source: Ericsson (2012)
Investor Presentation UBS, Sep 2014 © Ascom Group
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NETWORK TESTING - STRATEGIC TRANSITION
 Global leader
in network
performance
assurance
 Trusted brand
with CxO
visibility, thought
leader and
advisor
 End-to-End
solutionsprovider
 Stable recurring
revenue
streams and
consistent
growth
Yesterday
Technology leader
in wireless network
drive testing tools
Today
Independent
auditor of wireless
network
performance
Tomorrow
Trusted partner
in wireless
Market
network
positioning
investment and
management
 Deep understanding of network
test metrics
 Strongest product
portfolio across
wireless testing
 Solution portfolio
able to address
CxO objectives
 Dependency on
OEM & rollout
 Global sales and
service reach
 Trusted
relationships
Investor Presentation UBS, Sep 2014 © Ascom Group
Associated
core assets
 Unique capabilities
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ASCOM NETWORK TESTING POSITIONING
Network Testing
supports all
phases of the
network life cycle
Benchmarking & Monitoring
TEMS Automatic, TEMS Symphony
TEMS Monitor Master
Reporting & Analysis
TEMS Discovery, TEMS Visualization
Test & Measurements
TEMS Investigation, TEMS Pocket
Trial
Investor Presentation UBS, Sep 2014 © Ascom Group
Roll-Out
Optimization
Operation
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LEVERAGE INDUSTRY’S LARGEST INSTALLED BASE
Investor Presentation UBS, Sep 2014 © Ascom Group
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THE POWER OF ONE IN NETWORK TESTING
ENABLING NETWORK MANAGEMENT SOLUTIONS
Test & Measurement
Monitor
Benchmark
Reporting & Analysis
CUSTOMER
Test & Measurement
Benchmark
Monitor
Reporting & Analysis
CUSTOMER
CUSTOMER
CUSTOMER
CUSTOMER
Investor Presentation UBS, Sep 2014 © Ascom Group
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GROWTH INITIATIVES IN NETWORK TESTING
Capacity
Management
Blixt™
Licensing
Managed
Services
App & Service
Benchmarking
Investor Presentation UBS, Sep 2014 © Ascom Group
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TEMSTM CAPACITY MANAGER
 Understand IF, WHEN and WHERE networks will be congested
 Make intelligent investment decisions that reduce capital need
CAPEX savings
of up to 40%
with extremely
short packback
When to expand
Capacity limits
What specific network
elements have reached
their limits
Investor Presentation UBS, Sep 2014 © Ascom Group
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COMPLEX BILATERAL CONTRACTS MADE SIMPLE
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 with promising ROI
Investor Presentation UBS, Sep 2014 © Ascom Group
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WHAT MAKES ASCOM’S SOLUTION UNIQUE (1/2)
 High level of detail enables network optimization and
troubleshooting
 Supporting network operators’ existing work processes
 The only drive-test solution that works with authentic iPhones
 TEMS Investigation supports iPhone 5, and iPhone 5c and
iPhone 5s
Only TEMS Investigation Tests with iPhone®
Investor Presentation UBS, Sep 2014 © Ascom Group
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WHAT MAKES ASCOM’S SOLUTION UNIQUE (2/2)
 Available Bandwidth Measurement (ABM) Technology
 Faster and less intrusive than old methods
 Providing simultaneous measurement of upload, download and delay
 More than 90% bandwidth savings compared to old methods
Leveraging BLIXT™ through expanded use cases
Investor Presentation UBS, Sep 2014 © Ascom Group
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GROWTH EXAMPLE: TEMS DISCOVERY
TEMS Discovery Orders
 2009: Identified drive test post
processing as a growth opportunity for
Network Testing.
14
12
11.8
 2011: Ascom acquires Veelong Inc.
10
USDm
 2010: TEMS Discovery post processing
offering introduced, based on OEM
agreement with Veelong Inc.
8.7
8
6
5.7
 2012: TEMS Discovery grow (from zero)
to more than USDm 8 annually
4
2
 2013: Leveraged leadership position
and continued growth
0
2.6
0
2009
Investor Presentation UBS, Sep 2014 © Ascom Group
2010
2011
2012
2013
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ASCOM – FOCUS ON PROFITABLE GROWTH
1
Market leader in an
attractive industry with
great potential
2
At the forefront
of innovation and
technology
Investor Presentation UBS, Sep 2014 © Ascom Group
3
Robust and clear strategy
going forward
4
Experienced and
committed management
team with solid track record
of execution
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ASCOM FINANCIAL TAKEAWAYS
Investor Presentation UBS Wolfsberg, Sep 2014 © Ascom Group
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EBITDA MARGIN DEVELOPMENT
(%)
Improvement in both divisions
16.2
15.0
17.3
15.0
13.6
13.1
10.0
16.4
14.14.7
13.7
13.4
12.8
12.0
11.3
9.3
5.0
10.2
5.4
2.4
0.0
-3.5
-5.0
Wireless Solutions
2009
2010
Investor Presentation UBS, Sep 2014 © Ascom Group
Network Testing
2011
2012
Ascom Group
2012 net of restructuring
2013
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SIGNIFICANT IMPACT OF H1/H2 SEASONALITY
(CHFm)
H2 delivers higher revenue and better profitability
10060.0%
200
Wireless
70.0%
Solutions1)
Network
50.0%
53.0%
49.1%
50.9%
50.5%
52.7%
49.50%
Testing2)
55.7%
55.4%
60.0%
54.30%
40.0%
40.0%
41.0%
5030.0%
150
30.0%
10.3%
11.8%
15.0%
20.0%
4.40%
20.5%
15.0%
17.3%
20.0%
14.0%
50.0%
10.0%
0.0%
10.90%
-10.0%
10.0%
-20.0%
100
141.5
H1/2012
156.2
H2/2012
149.7
H1/2013
Gross margin
1) GE
156.4
H2/2013
140.8
H1/2014
EBITDA margin
60.8
00.0%
H1/2012
69.6
65.2
68.1
52.7
H2/2012
H1/2013
H2/2013
H1/2014
Gross margin
-30.0%
EBITDA margin
Nurse Call acquired as per June 18, 2012
of Network Testing includes restructuring costs of CHF 8.8m for H1/12 and CHF 2.8m for H2/12
2) EBITDA
Investor Presentation UBS, Sep 2014 © Ascom Group
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CONTINUED BACKLOG BUILD
(CHFm)
30.6.2013
31.12.2013
30.6.2014
113.5
102.6
125.5
Network Testing
44.9
34.5
39.4
Core business1)
158.4
137.1
164.9
1.1
0.2
0.1
159.5
137.3
165.0
Wireless Solutions
Other
Ascom Group
1) Core
business = Total Group minus non-core activities (segment “Other”) comprising real estate activities related to businesses disposed of in prior years
Investor Presentation UBS, Sep 2014 © Ascom Group
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CASH DEVELOPMENT REMAINS STRONG
(CHFm)
CHFm
Free cash flows
H1/2013
H1/2014
30.5
16.8
- 5.0
15.0
- 6.1
0.8
- 4.0
-13.7
21.3
- 14.0
-2.7
58.2
Cash at
1.1.2014
49.8
EBITDA
NWC
Provision
related
effects
Investor Presentation UBS, Sep 2014 © Ascom Group
CapEx
Acquisitions Interest and Debt related
tax payments cash flows
Dividend
Other cash
flows
Cash at
30.6.2014
46
CONTINUOUS FOCUS ON BALANCE SHEET EFFICIENCY
(CHFm)
Net working capital (NWC)
120
Net cash/debt and Equity ratio
80.0
80
80.3
65.3
40
40.0
52%
48%
31.12.2013
30.6.2014
-
0
-40.0
-40
31.12.2013
30.6.2014
Trade receivables
Inventories
Trade payables
Customer prepayments
Total NWC
Investor Presentation UBS, Sep 2014 © Ascom Group
-80.0
Cash and equivalents
Borrowings
Net cash/debt
Equity ratio (in %)
47
COMMITMENT TO CONSISTENT CASH RETURN
(CHFm, except per share data)
Dividends
Earnings per share (EPS)
37%
Pay-out ratio:
56%
39%
14.4
1.07
12.2
0.64
2012
8.6
2013
2011
2012
2013
Note: Distribution per share in the following year based on prior year’s profit,
i.e. dividend proposed to 2014 AGM based on the profit for the year 2013
Investor Presentation UBS, Sep 2014 © Ascom Group
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[ ]
GROUP CONTACT
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
Investor Presentation UBS Wolfsberg, Sep 2014 © Ascom Group
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