Annual Media Conference Welcome

Transcription

1 Annual Media Conference 2017 Welcome

2 Agenda 9 March 2017 Financial Review, CFO Business Review, CEO Customer Presentation, UK Customer Presentation, Italy Guidance, CEO Q&A Product Demonstration

3 Annual Media Conference 2017 Bianka Wilson, CFO

4 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. ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 4

5 Key messages 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

6 2016 financial results in summary (I) 2016 financial result reflects the major strategic transformation in includes 9 months of Network Testing Division operating result through 30 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 H with significantly stronger profitability in the continuing Ascom business (former Wireless Solutions Division) ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 6

7 2016 financial results in summary (II) Key developments in the continuing business (former Wireless Solutions Division) 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 H due to OneCompany reorganization OneCompany savings already starting to be realized in Q ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 7

8 2016 results marked by transformation and one-offs (I) (CHFm, except %) Ascom Group Network Testing Pro forma OneCompany (incl. one-offs) 2016 one-off charges Pro forma OneCompany (excl. one-offs) Incoming orders Net revenue Gross profit Gross profit % 50.1% 47.4% 50.6% 51.0% EBITDA EBITDA % 4.8% n/a 9.5% 13.9% EBIT EBIT % 0.4% n/a 7.1% 11.4% ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 8

9 2016 pro forma OneCompany EBITDA bridge (CHFm, figures at actual currencies) Pro forma EBITDA bridge Pro forma EBITDA (Dec 2015) Volume Margin M&S and R&D investments Others Pro forma EBITDA, excl. oneoffs (Dec 2016) Corporate one-offs in H1 OneCompany restructuring costs Pro forma EBITDA incl. oneoffs (Dec 2016) Note: Pro forma EBITDA comprises Ascom Group EBITDA minus the EBITDA result of the Network Testing Division in the respective year. ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 9

10 2016 results marked by transformation and one-offs (II) (CHFm) Ascom Group Extraordinary loss Operating result (EBIT) 1.3 Financial result -2.9 Ordinary result -1.6 Non-operating result -0.6 Extraordinary result Loss before income tax Income tax 1.6 Group loss Network Testing net assets 60.6 Effect from recycling of goodwill and currency translation adjustments Costs incurred in connection with the disposal Less cash received Less consideration receivable Extraordinary loss ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 10

11 Strong balance sheet going forward (CHFm, except %; figures and % based on actual currencies) Disposal of Network Testing Division as of Net book value divested Consideration received Net cash NWC Total assets Equity / net assets Equity % 40.7% 35.9% ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 11

12 Wireless Solutions: Net revenue development By customer segment By region (CHFm, except %; figures and % based on actual currencies) 5% 9% 5% 9% 17% 5% 9% % % 9% 63% 5% 3% 11% 17% 17% 5% 10% 15% 10% % 19% % 10% OEM 15% 19% ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 12

13 Wireless Solutions: Half-yearly view shows margin strength (CHFm, except %; figures and % based on actual currencies) Half-yearly view * Pro forma (PF) result excluding one-off charges of CHF 1.2m impacting gross margin and CHF 10.4m impacting EBITDA margin ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 13

14 Cash flow generation (CHFm) ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 14

15 Annual Media Conference 2017 Holger Cordes, CEO

16 Short reminder: ascom closes digital information gaps allowing for the best possible decisions - anytime and anywhere. 1 ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 16

17 We do this with unique comprehensiveness and unrivalled innovation - from the point of care to anywhere! 1 Clinical staff Purpose built devices Emergency Room System Patient Beds etc Medical Devices Alarm management Nurse Call Workflow supporting software Device connectivity Operating Room System Radiology System Patient Record (desktop) Patient Administration System, Billing (desktop) Infusion pumps ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM Data interoperability 17 Lab, Pharma etc.

18 2016: Building for the future Challenging year in transformation with decent results OneCompany program executed Innovation focus on Healthcare ICT and point of care Attained 63% Healthcare share through 5% growth ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 18

19 OneCompany organization finalized Ascom converted from a divisional and fragmented set-up to a OneCompany functional, 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 ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 19

20 Important wins in 2016 Singapore Ascom Myco Installations ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 20

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22 Market trends Global Benchmarks 2016 Ascom Comparison (organic growth) >USD 150 Billion Global Healthcare IT Spend 7 9% Total Market Growth Rates ~13% Global Software Market Growth Rates ~4% Global Hardware / Systems Growth Rates ~17% Ascom Software Growth Rate ~2% Ascom Healthcare Systems & Services Growth Rate 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 ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 22

23 Reminder: Ascom s Strategic Growth Opportunities Portfolio Integration More Workflows, Apps, SW New Solutions Alliances Global Accounts OEM New Partners GROWTH New Markets Evaluation of additional emerging markets New Services ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM Transformation Services Managed Services 23

24 R&D and Software development capacity Supported by large investments into innovation and professional services 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 base to the market in all that we do ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 24

25 New solution releases in 2017 Clinical apps Digistat v5 telecare IP 9.0 Telligence 5.0 Apps for Myco Ascom i63 DECT Ascom Myco 2 Unite Integration Platform CDAS Core Apps for Myco Medical Device Drivers Unite Analytics Q1 Q2 Q3 Q4 ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 25

26 New solution releases in 2017 Clinical apps Digistat v5 telecare IP 9.0 Telligence 5.0 Apps for Myco Ascom i63 DECT Ascom Myco 2 Unite Integration Platform CDAS Core Apps for Myco Medical Device Drivers Unite Analytics Q1 Q2 Q3 Q4 ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 26

27 New solutions: Ascom Myco 2 Ascom Myco 2 more than a smartphone ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 27

28 it delivers the power of the ascom Healthcare Platform - from point of care to anywhere Clinical trials EMS Code White Patient Monitoring Bed Mgmt Code Yellow ADT WEADD ROS 3rd party apps Supplies and Storage SmartConnect Secure text Device Alarms On-call Patient data Staff Protection Cleanminder with great voice! Nurse call Unite middleware Unite Context Lab results Smart Central 911 RTLS Other Directory & Availability Team assignments Vitals VoWifi Telephony Alerts Mission Critical Extensions Messaging Barcode scanning Device Alarms ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 28 All trademarks and company names are the property of their respective owner

29 New solutions: Unite Context From 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 ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 29

30 New solutions: Telligence Clinical workflows in the shape of a ground breaking nurse call solution From Alerting to Workflow From Process Disruption to Process Organization Ascom is moving nurse call to the heart of the point of care interaction and smart coordination ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 30

31 New solutions: Ascom Smart Central Mobile Application Delivering medical device information from the point of care to anywhere ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 31

32 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 ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 32

33 New services Consulting Services - Workflow analysis - Technology consulting Hospital in Sweden Communication assessment service in greenfield to improve WiFi network capability Hospital in Netherlands Organizational workflow process design and clinical workflow consulting Hospital in Norway Workflow analysis supporting process efficiency Focus to support customers success in digital transformation Hospital in Singapore Greenfield workflow analysis to harvest new build opportunities Workflow analysis Change management Workflow analysis System design Clinical assessment System delivery System validation ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 33

34 New markets: Growth markets MEA +15% Growth Markets 2016 Major installation of remote Tele ICU project together with GE Healthcare delivered in Saudi Arabia and UAE Asia +86% Major Hospital wins in Singapore, Malaysia and China Recruitment MD Asia +16% ROW China First wins Shanghai: nurse call systems for hospital and elderly care home 2017: Actively strategizing and recruiting for new geographies +7% Major Russia power plant delivery Recruitment of ECC Sales lead ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 34

35 Guidance Holger Cordes, CEO

36 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) ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 36

37 Evolvement of Ascom Market segment mix Regional market mix Offering mix Revenue mix 2016 Target 2020 Industry, retail etc. 75% Healthcare 63% Healthcare ~25% Support 23% Support ~17% Software ~58% Systems 9% 68% Systems ~30% Recurring ~15% Recurring ~70% Project based ~85% Project based ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 37

38 Bridge to 20% EBITDA margin in 2020 (target model) % 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% *Pro Forma OneCompany (Ascom Group excl. Network Testing and one offs) Target model (not guidance) 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 revenue Functional 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 ANNUAL MEDIA CONFERENCE 9 MARCH 2017 ASCOM 38

39 Let s discuss 1