Ascom Annual Results Presentation 2012€¦ · 1. Diligently and timely executed restructuring plan...
Transcript of Ascom Annual Results Presentation 2012€¦ · 1. Diligently and timely executed restructuring plan...
WELCOME TO THE ASCOM
MEDIA AND ANALYST CONFERENCE
2012 ANNUAL RESULTS
ASCOM
MISSION-CRITICAL WIRELESS COMMUNICATION
3 2012 Annual Results Conference, 20/03/2013 © Ascom Group
THE EXECUTIVE BOARD
[ ]
AGENDA 20 MARCH 2013 Business Review 2012 2012 Financial Statements Ascom Wireless Solutions Ascom Network Testing Outlook
[ ]
5 2012 Annual Results Conference, 20/03/2013 © Ascom Group
BUSINESS REVIEW 2012 FRITZ MUMENTHALER
The Wireless Solutions Division
achieved best EBITDA margin ever
gained additional market share
The Network Testing Division
successfully turned around its business
implemented a new organization with a CHF 20 million lower cost base
delivered strong second-half results
The former Security Communication Division
successfully divested according to plan
achieved a book gain in 2012
6
SIGNIFICANT ACHIEVEMENTS 2012
2012 Annual Results Conference, 20/03/2013 © Ascom Group
ASCOM WIRELESS SOLUTIONS
Strenghtened its global position in healthcare communication
acquired GE Nurse Call business
integrated Miratel in Finland
continued the strong growth in hospitals in North America - The Power Of One
World‘s largest manufacturer of professional cordless phones
Substantially strengthened position in retail business
won four out of five of the largest retail companies in UK
ASCOM WIRELESS SOLUTIONS
7
LEADING POSITION IN AN ATTRACTIVE INDUSTRY
2012 Annual Results Conference, 20/03/2013 © Ascom Group
8
LEADING POSITION IN AN ATTRACTIVE INDUSTRY
ASCOM NETWORK TESTING
Global #1 despite difficult market conditions
Strong footprint with all key players in the industry
mobile network operators
network equipment vendors
third party service providers
Leaner and meaner business primed to compete
more focused and agile organization; closer to customers
fixed costs reduced by CHF 20 million
2012 Annual Results Conference, 20/03/2013 © Ascom Group
ASCOM NETWORK TESTING
Continued investments in R&D
CHF 50 million per year – expensed through P&L
11% of revenue – above market level
Ascom Wireless Solutions Division focused on
ruggedized, dual mode smart phone for the healthcare industry
next generation IP and wireless nurse call
software applications based on Unite
Ascom Network Testing Division focused on
new software platform for Benchmarking & Monitoring
TEMS Discovery Enterprise: a new product for Reporting & Analysis
9
AT THE FOREFRONT OF INNOVATION AND TECHNOLOGY
2012 Annual Results Conference, 20/03/2013 © Ascom Group
[ ]
10 2012 Annual Results Conference, 20/03/2013 © Ascom Group
2012 FINANCIAL STATEMENTS MARTIN ZWYSSIG
Ascom Group Revenue growth of 2.8%
EBITDA margin of 10.2% (incl. restructuring expenses of CHF 11.6 million)
and of 12.8% (before restructuring expenses)
Second half-year: EBITDA margin of 14.9%
Profit of CHF 20.9 million (in line with previous year)
Wireless Solutions
Revenue growth of 7.6%
Increased EBITDA margin of 16.2% (+ 1.2 percentage points)
H2/12: EBITDA margin of 17.3%
Network Testing
Revenue: strong rebound with revenue growth of 14.5% in H2 vs. H1
EBITDA margin of 5.4% (before restructuring expenses)
H2/12: EBITDA margin of 14.4% (before restructuring expenses)
11
SIGNIFICANT ACHIEVEMENTS IN 2012
2012 Annual Results Conference, 20/03/2013 © Ascom Group
12
INCOME STATEMENT: TURNAROUND IN H2/12 ACHIEVED
2012 Annual Results Conference, 20/03/2013 © Ascom Group
CHFm 2011 2012 Revenue 437.5 449.8
Gross profit 218.9 219.8
Gross margin (%) 50.0% 48.9%
Total functional costs (179.3) (187.1)
Amortization of intangible assets from acquisition (9.4) (11.3)
Other income/(expenses), net 10.4 2.0
EBIT 40.6 23.4
Financial income/(expenses), net (6.6) (4.7)
Income tax (3.4) (1.1)
Profit from continuing operations 30.6 17.6
Profit/(loss) from discontinued operations (7.5) 3.3
Group profit for the period 23.1 20.9
EBITDA 59.8 45.9
EBITDA margin (%) 13.7% 10.2%
13
GROWTH ANALYSIS: NT DECLINE STOPPED IN H2/12
2012 Annual Results Conference, 20/03/2013 © Ascom Group
Actual 2011
(in CHFm)
Organic growth
(in %)
FX translation
(in %)
Acquisition (in CHFm)
Actual 2012
(in CHFm)
Δ 2012/2011
(in %)
Wireless Solutions 276.6 2.6% 0.1% 13.9 297.7 7.6%
Network Testing 138.9 -8.1% 2.0% 0.0 130.4 -6.1%
Other 22.4 2.2% 0.0% -0.9 22.0 -1.8%
Total Ascom 437.5 -0.8% 0.7% 13.0 449.8 2.8%
14
SECOND HALF YEAR:
2012 Annual Results Conference, 20/03/2013 © Ascom Group
Ascom Group (CHFm) H1/2011 H2/2011 H1/2012 H2/2012
Revenue 213.4 224.1 213.4 236.4
EBIT 18.0 22.6 0.4 23.0
EBIT margin (%) 8.4% 10.1% 0.2% 9.7%
EBITDA 27.8 32.0 10.7 35.2
EBITDA margin (%) 13.0% 14.3% 5.0% 14.9%
Network Testing (CHFm) H1/2011 H2/2011 H1/2012 H2/2012
Revenue 70.3 68.6 60.8 69.6
EBIT -0.7 -7.6 -18.3 0.3
EBIT margin (%) -1.0% -11.1% -30.1% 0.4%
EBITDA 5.4 -2.0 -11.8 7.2
EBITDA margin (%) 7.7% -2.9% -19.4% 10.3%
DESPITE RESTRUCTURING EXPENSES BETTER THAN 2011
15
GROSS MARGIN: SIGNIFICANTLY IMPROVED ON HIGH LEVEL
2012 Annual Results Conference, 20/03/2013 © Ascom Group
Wireless Solutions (CHFm)
142.0
155.1
6.2
3.7
3.2
130.0
135.0
140.0
145.0
150.0
155.0
160.0
Gross profit 2011 Increase of gross profit thanks to
acquisitions
Volume increase Margin increase Gross profit 2012
16
GROSS MARGIN: IMPACTED BY RESTRUCTURING
2012 Annual Results Conference, 20/03/2013 © Ascom Group
Network Testing (CHFm)
69.9
61.6
-5.7
-4.2
1.6
50.0
55.0
60.0
65.0
70.0
75.0
Gross profit 2011 Restructuring costs impacting the gross
profit
Volume decrease Margin increase Gross profit 2012
17
TAX BRIDGE: PRUDENT CAPITALIZATION
2012 Annual Results Conference, 20/03/2013 © Ascom Group
5.2
1.1
3.7 -4.9
-2.1
-0.8
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
Expected income tax
expenses 2012
Effect of expenses/
(income) taxed at lower rate
Net effect from tax loss carry
forwards
Net effect from deferred tax
Other effects Income tax expenses 2012
(CHFm)
OF TAX LOSS CARRY FORWARDS PAYS OFF
EARNINGS QUALITY:
2012 Annual Results Conference, 20/03/2013 © Ascom Group
CHFm 2011 2012
Group profit as reported 23.1 20.9
+ Restructuring expenses (NT) 0.0 +11.6
- Other income/(expenses), net -10.4 -2.0
+/- Profit/(loss) from discontinued operations +7.5 -3.3
Group profit before special items 20.2 27.2
2012 ABOVE PRIOR YEAR WITHOUT SPECIAL ITEMS
18
11.3
13.6
9.3
13.1
16.4
12.0
15.0
2.4
13.7
16.2
-3.5
10.2
5.4
12.8
-5.0
0.0
5.0
10.0
15.0
Wireless Solutions Network Testing ASCOM
2009 2010 2011 2012 2012 net of restructuring Guidance 2013
19
EBITDA AS A % OF REVENUE
2012 Annual Results Conference, 20/03/2013 © Ascom Group
Guidance 2013: 15.0% – 16.0%
20
BALANCE SHEET: STABLE DESPITE OF SECOM DIVESTMENT
2012 Annual Results Conference, 20/03/2013 © Ascom Group
31.12.2011 31.12.2012 CHFm % CHFm %
Intangible assets 215.0 42.4 235.5 45.4
Other non-current assets 40.8 8.1 44.6 8.6
Non-current assets 255.8 50.5 280.1 54.0 Cash and cash equivalents 73.3 14.4 63.1 12.1
Other current assets 164.5 32.5 175.9 33.9
Assets of disposal group classified as held for sale 13.2 2.6 0.0
Total assets 506.8 519.1 Shareholders’ equity 203.8 40.2 223.7 43.1
Non-current liabilities 60.4 11.9 146.4 28.2
Current liabilities 152.8 30.2 149.0 28.7
Liabilities of disposal group classified as held for sale 89.8 17.7 0.0 Total liabilities and shareholders’ equity 506.8 519.1
21
CASH FLOW: SECOM PREPAYMENTS SWAPPED FOR DEBT
2012 Annual Results Conference, 20/03/2013 © Ascom Group
73.3
-24.9
63.1
5.4 -64.1 -8.6 0.7
-6.6
87.9
-40.0
-20.0
0.0
20.0
40.0
60.0
80.0
100.0
Cash balance at 1.1.2012
Net cash flow from operating activities
Cash flow from
disposal of
businesses
Cash flow from
acquisition of
businesses
Cash balance at 31.12.2012
Operating CapEx
Net increase in
borrowings
Distribution of share
premium/ dividend
Other cash flow
items
22
EQUITY: EQUITY RATIO OF 32% IN THE TARGET RANGE
2012 Annual Results Conference, 20/03/2013 © Ascom Group
223.7
166.7
-75.7
18.7
0.0
50.0
100.0
150.0
200.0
250.0
Shareholders' equity as per 31.12.2012
Increase of net pension obligation according to IAS
19R
Deferred income tax effect Shareholders' equity as per 31.12.2012 after application
of IAS19R
(as per 31.12.2012 and pro-forma after the application of IAS 19R in CHFm)
[ ]
23 2012 Annual Results Conference, 20/03/2013 © Ascom Group
ASCOM WIRELESS SOLUTIONS CLAES ÖDMAN
ASCOM WIRELESS SOLUTIONS
1. Record EBITDA Margin of 16.2%
2. Shift to higher margin software and services
3. Gained market share
4. #1 position in nurse call
5. #1 position in global professional cordless telephony
ASCOM WIRELESS SOLUTIONS
24
SIGNIFICANT ACHIEVEMENTS 2012
2012 Annual Results Conference, 20/03/2013 © Ascom Group
#1 IN 2 OUT OF 3 PRODUCT LINES
MARKET LEADER IN NURSE CALL
MARKET LEADER IN CORDLESS ENTERPRISE TELEPHONY
25
MARKET LEADER IN AN ATTRACTIVE INDUSTRY
2012 Annual Results Conference, 20/03/2013 © Ascom Group
26
AT THE FOREFRONT OF INNOVATION AND TECHNOLOGY
Smart device for the healthcare industry Dual mode
Ruggedized
Application for improved healthcare workflows
Next generation nurse call First global nurse call
IP based
Wireless nurse call
2012 Annual Results Conference, 20/03/2013 © Ascom Group
MEDICAL DEVICE
CERTIFICATION
NURSE CALL UNITE SOFTWARE MOBILITY SERVICES
27
ROBUST AND CLEAR STRATEGY GOING FORWARD
2012 Annual Results Conference, 20/03/2013 © Ascom Group
System integrator
Reseller
THE POWER OF ONE
28
STRONG CUSTOMER BASE TO LEVERAGE OFF
2012 Annual Results Conference, 20/03/2013 © Ascom Group
ASCOM WIRELESS SOLUTIONS
1. Build on The Power Of One (mobility, nurse call,
and software) to gain healthcare market share
2. Extend geographical footprint
3. Continue to focus on operational efficiency
4. Continue to evaluate opportunities in healthcare
ASCOM WIRELESS SOLUTIONS
29
TARGETS FOR 2013
2012 Annual Results Conference, 20/03/2013 © Ascom Group
SOLID BASE TO GROW
[ ]
30 2012 Annual Results Conference, 20/03/2013 © Ascom Group
ASCOM NETWORK TESTING RIKARD LUNDQVIST
31
SIGNIFICANT ACHIEVEMENTS 2012
1. Diligently and timely executed restructuring plan resulting in CHF 20 million annualized savings
2. Implemented a new organization more focused on, and closer to the customers
3. Secured world’s largest benchmarking project
4. Maintained global #1 position in Test & Measurement
5. Delivered strong H2 results
2012 Annual Results Conference, 20/03/2013 © Ascom Group
ASCOM NETWORK TESTING
TEST & MEASUREMENT
BENCHMARKING & MONITORING
REPORTING & ANALYSIS
Global market leader in drive- and walk-test tools for measuring mobile network performance
Industry‘s most versatile benchmarking software platform: handheld, automated, application services
Enterprise software for analyzing, optimizing device and network performance
32
MARKET LEADER IN AN ATTRACTIVE INDUSTRY
2012 Annual Results Conference, 20/03/2013 © Ascom Group
LTE LEADERSHIP VOICE OVER LTE (VoLTE) LEADERSHIP
BLIXT™ TECHNOLOGY
Leadership in next generation 4G broadband mobile networks
First testing of VoLTE on a live network
Dramatically changes how bandwidth is measured
33
AT THE FOREFRONT OF INNOVATION AND TECHNOLOGY
2012 Annual Results Conference, 20/03/2013 © Ascom Group
34
ROBUST AND CLEAR STRATEGY GOING FORWARD
2012 Annual Results Conference, 20/03/2013 © Ascom Group
Addressing key operator challenges Grow network capacity
Increase operational efficiency
Deliver optimal customer experience
Meet operator need for independent authority on network performance
35
LEVERAGE INDUSTRY’S LARGEST INSTALLED BASE
2012 Annual Results Conference, 20/03/2013 © Ascom Group
36
TARGETS FOR 2013
1. Leverage new organization, new product platforms and lower cost basis for increased competitiveness & market share
2. Focus on innovative solutions to grow business with installed base
3. Capture growth opportunities in the emerging markets (Central America/South America, Middle East/Africa)
4. Continue to focus on operational efficiency
2012 Annual Results Conference, 20/03/2013 © Ascom Group
ASCOM NETWORK TESTING
[ ]
37 2012 Annual Results Conference, 20/03/2013 © Ascom Group
OUTLOOK FRITZ MUMENTHALER
Focused on two businesses in the wireless industry Both market leader in their selected niche
Software and services
Global market presence and a large installed base support the growth potential
Megatrends support the growth strategy Aging population
Data explosion in mobile networks
38
A ROBUST AND CLEAR STRATEGY GOING FORWARD
2012 Annual Results Conference, 20/03/2013 © Ascom Group
Targets 2013* EBITDA margin of 15–16% at Group level
Growth of 5%
Mid term targets (2014/15)* EBITDA margin of 17–18% at Group level in 2015
Average growth of 5–10% in 2014/15
39
GUIDANCE – 2013, BUILDING ON THE SUCCESS OF 2012
2012 Annual Results Conference, 20/03/2013 © Ascom Group
* Outlook assumes a steady economical environment and at least stable currency relations.
Proposal to the Annual General Meeting of 10 April 2013:
Distribution of CHF 0.35 per share from capital contribution reserves
Total distribution of CHF 12.6 million corresponding to a payout ratio of 60.3%
Exempt from Swiss anticipatory tax
40
SHAREHOLDERS – HIGHER DIVIDEND PAYMENT
2012 Annual Results Conference, 20/03/2013 © Ascom Group
41
ASCOM – SET UP TO CREATE MORE VALUE
2012 Annual Results Conference, 20/03/2013 © Ascom Group
Market leader in an attractive industry with great potential
At the forefront of innovation and technology
Robust and clear strategy going forward
Track record of execution
Experienced and committed management team
[ ]
MISSION-CRITICAL WIRELESS COMMUNICATION
[ ]
43 2012 Annual Results Conference, 20/03/2013 © Ascom Group
GROUP CONTACT Ascom Holding AG Investor Relations T +41 31 999 11 11 Stettbachstrasse 6 F +41 44 823 13 21 CH-8600 Dübendorf [email protected]
44
LEGAL DISCLAIMER
2012 Annual Results Conference, 20/03/2013 © Ascom Group
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.
THANK YOU!