annual media conference 2017 - ascom€¦ · customer presentation, italy ... searchable online...

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Annual Media Conference 2017

Welcome

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Agenda 9 March 2017

Financial Review, CFO Business Review, CEO Customer Presentation, UK Customer Presentation, Italy Guidance, CEO Q&A Product Demonstration

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Bianka Wilson, CFO

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Legal DisclaimerThis 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 andunknown risks, uncertainties and other factors which may result in a substantial divergence betweenthe actual results, financial situation, development or performance of Ascom and those explicitlypresumed in these statements.

Against the background of these uncertainties readers should not rely on forward-lookingstatements. Ascom assumes no responsibility to update forward-looking statements or adapt them tofuture events or developments.

4ANNUAL MEDIA CONFERENCE | 9 MARCH | ©2017 ASCOM

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2016 – a year of major changes in Ascom

Implementation of the new OneCompany organization

Strategic business focus on Healthcare ICT and mobile workflow solutions

Dedicated focus on organic growth and increased profitability

Ascom has a strong balance sheet with solid net cash position and equity ratio

ANNUAL MEDIA CONFERENCE | 9 MARCH | ©2017 ASCOM 5

Key messages

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2016 financial results in summary (I)

2016 financial result reflects the major strategic transformation in 2016

2016 includes 9 months of Network Testing Division operating result through30 September 2016 and the loss resulting from the divestment

Both half years 2016 marked by one offs impacting EBITDA, Group loss and loss per share

Better H2 2016 with significantly stronger profitability in the continuing Ascombusiness (former Wireless Solutions Division)


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2016 financial results in summary (II)

5% growth in the Healthcare segment 17% organic growth in Software Successful integration of UMS (acquired January 2016) Decline in OEM and DECT Mobility Double digit growth in Growth Markets Low single digit growth in Europe (excluding OEM) North America impacted by slower than expected ramp up of channel partners Short-term adverse impact in H2 2016 due to OneCompany reorganization OneCompany savings already starting to be realized in Q4 2016


Key developments in the continuing business (former Wireless Solutions Division)

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2016 results marked by transformation and one-offs (I)


(CHFm, except %) AscomGroup

Network Testing

Pro forma OneCompany

(incl. one-offs)

2016 one-offcharges

Pro forma OneCompany

(excl. one-offs)

Incoming orders 360.4 57.5 302.9 302.9

Net revenue 354.3 53.8 300.5 300.5

Gross profit 177.5 25.5 152.0 -1.2 153.2

Gross profit % 50.1% 47.4% 50.6% 51.0%

EBITDA 16.9 -11.7 28.6 -13.1 41.7

EBITDA % 4.8% n/a 9.5% 13.9%

EBIT 1.3 -20.0 21.3 -13.1 34.4

EBIT % 0.4% n/a 7.1% 11.4%

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2016 pro forma OneCompany EBITDA bridge

ANNUAL MEDIA CONFERENCE | 9 MARCH | ©2017 ASCOM

Pro forma EBITDAbridge

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41.7

28.6

1.444.9

Pro forma EBITDA

incl. one-offs

(Dec 2016)

Others Pro formaEBITDA,

excl. one-offs

(Dec 2016)

-0.8

Corporate one-offs

in H1

M&SandR&D

investments

-2.1

-10.6

MarginVolume

-1.7

Pro forma EBITDA

(Dec 2015)

OneCompany restructuring

costs

-2.5

Note: Pro forma EBITDA comprises Ascom Group EBITDA minus the EBITDA result of the Network Testing Division in the respective year.

(CHFm, figures at actual currencies)

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2016 results marked by transformation and one-offs (II)


(CHFm) Ascom Group

Operating result (EBIT) 1.3

Financial result -2.9

Ordinary result -1.6

Non-operating result -0.6

Extraordinary result -145.1

Loss before income tax -147.3

Income tax 1.6

Group loss -145.7

Extraordinary loss

Network Testing net assets 60.6

Effect from recycling of goodwill and currency translation adjustments

127.8

Costs incurred in connection with the disposal

5.1

Less cash received -29.2

Less consideration receivable

-19.2

Extraordinary loss 145.1

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Strong balance sheet going forward


31.12.2015

Disposal of Network TestingDivision as of 30.09.2016

31.12.2016Net book

value divestedConsideration

receivedNet cash 37.3 -9.1 29.2 24.1

NWC 75.9 -31.7 56.8

Total assets 286.4 -86.1 48.4 225.1

Equity / net assets 116.7 -60.6 48.4 80.9

Equity % 40.7% 35.9%

(CHFm, except %; figures and %based on actual currencies)

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Wireless Solutions: Net revenue developmentBy customer segment By region

(CHFm, except %; figures and % based on actual currencies)

11%

3%

5%

10%

10%

60%

2015

304.2

5%

9%

9% 63%

9%5%

2016

300.8

5%

19%

15% 19%

17%

15%10%

2015

304.2

5%

19%

17% 17%

17%9%

16%2016

300.8

OEM

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Wireless Solutions: Half-yearly view shows margin strength


Half-yearly view

(CHFm, except %; figures and % based on actual currencies)

* Pro forma (PF) result excluding one-off charges of CHF 1.2m impacting gross margin and CHF 10.4m impacting EBITDA margin

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Cash flow generation(CHFm)

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Holger Cordes, CEO

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Short reminder: ascom closes digital information gaps allowingfor the best possible decisions - anytime and anywhere.


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We do this with unique comprehensiveness and unrivalled innovation - from the point of care to anywhere!

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Emergency Room System

Operating Room System

Radiology System

Lab, Pharma etc.

Patient Record

(desktop)

Patient Administration

System, Billing

(desktop)

Clinical staff

Medical Devices

Infusion pumps

Patient Beds etc

Purpose built devices

Device connectivity

Data interoperability

Workflow supporting software

Nurse Call

Alarm management


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Challenging year in transformation with decent results

OneCompanyprogram executed

Innovation focus on Healthcare ICT and point of care

Attained 63% Healthcare share through 5% growth

2016: Building for the future


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Ascom converted from a divisional and fragmented set-up to a OneCompanyfunctional, sales driven organization

Recruitment of new talents Software Development Executive

New Managing Director Benelux New Managing Director Asia Several executives in our services

organization

26 new sales resources worldwide, especially in the US

OneCompany organization finalized


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Important wins in 2016

Ascom Myco Installations

Singapore


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Market trends

Ascom’s Healthcare Business grew close to market rates in 2016

However, there is significant opportunity with the growing share of software in our solution mix


>USD 150

Billion

Global Healthcare IT Spend

7–9%

Total Market Growth Rates

~13%

Global SoftwareMarket Growth Rates

~4%

Global Hardware /Systems Growth Rates

~17%

~2%

Ascom Healthcare Systems & Services Growth Rate

Ascom SoftwareGrowth Rate

Global Benchmarks 2016 Ascom Comparison (organic growth)

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Reminder: Ascom’s Strategic Growth Opportunities

GROWTH

New Solutions

New Markets

New Partners

New Services

AlliancesGlobal Accounts

OEM

Evaluation of additional emerging markets

Transformation ServicesManaged Services

Portfolio IntegrationMore Workflows, Apps, SW


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Current capacity: 200 software developers in 5 countries

500 professional services and support professionals in 15 countries

Budgeted increase in software development resources in 2017

Actively evaluating options for a near shore center inside EU

We bring our significant experiences from our global customer and employee baseto the market in all that we do

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R&D and Software development capacity –Supported by large investments into innovation and professional services


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New solution releases in 2017

Q1 Q2 Q3 Q4


Ascom Myco 2

teleCARE IP 9.0

Apps for Myco

Clinical apps

Medical Device Drivers

Apps for Myco

Ascom i63 DECT CDAS Core

Telligence 5.0

Unite Integration Platform

Unite Analytics

Digistat v5

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New solutions: Ascom Myco 2

Ascom Myco 2 more than a smartphone…


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Clinicaltrials

911

VoWifi

DeviceAlarms

StaffProtection

3rd party apps

ADTSupplies

andStorage

BedMgmt

CodeYellow

EMS

On-callCodeWhite

DeviceAlarms

Unite Context

Patient Monitoring

Nurse call

RTLS

Secure text Patient data

Lab results

TeamassignmentsOther

All trademarks and company names are the property of their respective owner

Unite middleware

Directory& Availability

Mission Critical

Extensions MessagingAlertsTelephonyBarcode scanning

WEADD ROS

SmartConnect

… it delivers the power of the ascomHealthcare Platform - from point of care to anywhere Cleanminder

Vitals

SmartCentral

…with great voice!


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New solutions: Unite ContextFrom Telephone to Communicating within the clinical context

From Messages to Analytics

Secure text messaging + broadcasts Searchable online directory with

availability status Access to patient lists Visibility of patients’ care team Dynamic roles Access to lab results Intuitive registration workflow


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From Alerting to Workflow

From Process Disruption to ProcessOrganization

Ascom is moving ”nurse call“ to the heart of thepoint of care interaction and smart coordination

New solutions: TelligenceClinical workflows in the shape of a ground breaking nurse call solution


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New solutions: Ascom Smart Central Mobile ApplicationDelivering medical device information from the point of care to anywhere


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New partners: GE, Philips, Dräger, EMR, OEM

GE: Continued strong and growing partnership Continued expansion of sales into Growth Markets including joint flagship hospital in Saudi Arabia New partnership on Ascom Digistat applications

Philips: Technology partnership signed with joint business development in progress

Dräger: Technology partnership and commercial contract signed with joint business development in progress

EMR vendors: Active discussions with three leading EMR vendors about cooperation and joint activities

OEM Partners: Active discussions with three current and potentially new OEM partners about expanding the value partnership and joint go to market activities


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New services

Consulting Services• - Workflow analysis• - Technology consulting

Hospital in NetherlandsOrganizational workflow

process design and clinical workflow consulting

Hospital in NorwayWorkflow analysissupporting process

efficiency

Hospital in SwedenCommunication assessment

service in greenfield to improveWiFi network capability

Focus to support customers success in digital transformation Hospital in SingaporeGreenfield workflow analysis

to harvest new build opportunities

Workflow analysisChange

managementWorkflow analysis

System design

Clinical assessment

System delivery

System validation

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Growth Markets 2016

+16%

Major Hospital wins in Singapore, Malaysia and China

Recruitment MD Asia

MEA

+15%

Major installation of remote Tele ICU project together with GE Healthcare delivered in Saudi Arabia and UAE

Asia

+86%

Shanghai: nurse call systems for hospital and elderly care home

China

First wins

Major Russia power plant delivery Recruitment of ECC Sales lead

ROW

+7%


New markets:Growth markets

2017: Actively strategizing and recruiting for new geographies

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Guidance

Holger Cordes, CEO

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Guidance

2017: Stronger second half-year Accustomed seasonality indicates stronger

H2 also in 2017 H1 will be still impacted by the aftermath of

OneCompany restructuring and ongoing recruiting in sales

H2 will benefit from several new solutions (E.g. Ascom Myco 2, Telligence, Apps, Unite Reporting), increase in effective salesforce and ramping up of new partnership agreements

Guidance 2017 Revenue growth expected at 3–6%

for full year with stronger growth rates for Healthcare

EBITDA margin targeted at 14–15%

Mid-term Guidance 2020 confirmed 7–10% revenue growth in 2020 Ambition to reach an EBITDA margin of

20% in 2020


(% based on figures at constant currencies)

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2016

Targ

et 2

020

Evolvement of AscomMarket segment mix Revenue mix

75%Healthcare

Offering mix

€

~15%Recurring

~85%Project based

€

~30%Recurring

€

~70%Project based

~25%Support

~17%Software

~58%Systems

23%Support

9%

68%Systems

Regional market mix

63%Healthcare

Industry, retail etc.

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Gross margin improvement from Increasing share of Ascom developed

software Increasing share of software in total revenue Improving margins in consulting, managed

services to balance conservative assumption of margin erosion in HW

Increasing share of software support revenueFunctional cost development Increasing investment in R&D to innovate

and drive growth slightly dilutes EBITDA Cost management in other functional costs

keeps cost expansion underproportionate

% of Net Revenue (based on constant currencies)

2016 * 2020

Software 80% 90%Products, Solutions & Prof. Services 54% 54%Support & Maintenance 34% 45%

Gross Margin 51% 55-57%

Sales & Marketing 24% 20-22%Research & Development (R&D) 9% 11%Administration 5% 4%

EBITDA (pro forma 2016 and guidance 2020) 14% 20%

Bridge to 20% EBITDA margin in 2020 (target model)

*Pro Forma OneCompany (Ascom Group excl. Network Testing and one offs)Target model (not guidance)


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Let’s discuss

annual media conference 2017 - ascom€¦ · customer presentation, italy ... searchable online...

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