ACCELERATING OUR STRATEGY IMPLEMENTATION

Transcription

1 ASCOM 2020 WORKFLOW INTELLIGENCE IN HEALTHCARE ACCELERATING OUR STRATEGY IMPLEMENTATION 2015

2 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. 2

3 STRONG PLATFORM FOR GROWTH Key figures - Strong Momentum in the core business Strategy Ascom 2020 Workflow Intelligence in Healthcare Wireless Solutions shift from products & systems to Healthcare workflow solutions Network Testing solidify core business while accelerating Analytics Outlook 3

4 ASCOM GROUP FOCUSED ON 2 BUSINESSES 40% HEALTHCARE 20% NORTH AMERICA Revenue CHF 450m EBITDA 15.2% Group profit CHF 38.5m FTEs 1,600 Net Cash CHF 27.1m Equity ratio 51.8% STRONG PERFORMANCE H1/2015 (2014 figures ) 4

5 H1/2015 HIGHLIGHTS ASCOM GROUP Net revenue growth of 9.0% for the Group and 13.3% in the core business at constant currencies Core Business EBITDA margin of 10.2% reflecting improved earnings quality Group profit 34% higher at CHF 11.0m (H1/2014: CHF 8.2m) Operating cash flows increased to CHF 18.9m (H1/2014: CHF 14.3m) Planned strategic investments on track Net cash position at CHF 22.5m and improved equity ratio at 53.6% 5

6 IMPROVED EARNINGS QUALITY IN H1/2015 (Non-GAAP presentation) CHFm Core business 1) Other 2) H1/2014 H1/2015 H1/2014 H1/2015 Incoming orders Revenue Gross profit Gross margin 50.5% 51.8% n/a n/a EBIT (0.3) EBIT margin 4.0% 6.4% 47.3% n/a EBITDA (0.1) EBITDA margin 8.6% 10.2% 49.5% n/a 1) Core business = Total Group minus non-core activities (segment Other ) comprising real estate activities related to businesses disposed of in prior years 2) H1/2014 included Other income of total CHF 4.6 million related to the divestment of non-core real estate in Switzerland 6

7 H1/2015 HIGHLIGHTS WIRELESS SOLUTIONS 72% of core business 14.6% revenue growth at constant currencies 8.6% incoming orders growth at constant currencies Positive contribution from all regions in healthcare, US business going strong Myco launch according to plan with projects won in different countries Unfavorable FX translational impact of -10% on revenue Better profitability in spite of investments: EBITDA margin of 14.4% (H1/2014: 10.9%) 7

8 H1/2015 HIGHLIGHTS NETWORK TESTING 10.1% revenue growth at constant currencies Testing business (excl. Systems & Solutions) grew 13.3% at constant currencies -8.6% incoming orders decline at constant currencies Testing business (excl. Systems & Solutions) flat at constant currencies Above average growth rate in Americas, despite difficult market conditions in the US Unfavorable FX translational impact of -7% on revenue Profitability impacted by investments: EBITDA margin of 0.7% (H1/2014: 4.4%) Testing business (excl. Systems & Solutions) EBITDA margin of 1.5% 8

9 STRATEGIC SHIFT TO ACHIEVE ASCOM 2020 AMBITION Strategic direction Increased focus on healthcare ICT From products to solutions From hardware-centric to software-centric Implication Larger addressable market Increasing recurring and service content of revenue Higher margin business 2020 ambition >75% of revenue from healthcare >50% of revenue from solutions and service >25% of revenue from connectivity software Ascom in every tier 1 hospital 9

10 ASCOM 2020 ACCELERATE, INNOVATE, DELIVER Our 2020 plan - A plan to invest in sustainable growth for Ascom, driven by the continued evolution of our business as a leader in workflow intelligence solutions in Healthcare, underpinned by excellence in network analytics and testing. Targeting High growth markets where we have a unique position Investing To evolve high potential areas of our business Generating Sustainable, higher, more predictable long-term shareholder returns Healthcare ICT An fast-growing market Strategic investment 2015 up to CHF 10m > 75% of revenue from Healthcare Data analytics Evolving Network Testing towards greater client value-add Attractive multiple drivers Efficiency, effectiveness, regulation, appetite for innovation Organic growth Holistic value proposition, fast time-to-market and higher software and service content Acquisitive growth Healthcare middleware, solution capabilities, market presence > 50% of revenue from Solutions and Service > 20% growth rate in Analytics 10

11 WIRELESS SOLUTIONS: SHIFT FROM TELECOM PRODUCTS & SYSTEMS TO HEALTHCARE WORKFLOW SOLUTIONS Meeting CUSTOMER NEEDS Improve Patient Safety and Outcome Customizing VALUE PROPOSITION State of the Art Mobile Devices and Nurse Call Accelerating IMPLEMENTATION Enhance software competence and integration skills Improve Patient Satisfaction and Caregiver Experience Open Connectivity Platform assures compatibility + integration Build Global Solutions with local execution capabilities Improve Hospital Efficiency and Financial Performance Workflow Solutions and Professional Services Deploy Professional Services 11

12 NETWORK TESTING: SOLIDIFY CORE BUSINESS WHILE ACCELERATING ANALYTICS Meeting CUSTOMER NEEDS Customizing VALUE PROPOSITION Accelerating IMPLEMENTATION Enhance Network Capacity and Performance State of the Art Testing Solutions integrating the latest Mobile Devices Increase Service and Integration capabilities Improve Customer Experience and Loyalty Visualization and Analytics to manage large data Enhancing Sales, Marketing and Service Capabilities for Analytics Improve Financial Performance Expert Advice and Consulting to improve CAPEX management Strengthen Key Account Management with Tier 1 Operators 12

13 QUICK RETURN FROM INVESTMENTS INTO SOLUTIONS, SOFTWARE AND PROFESSIONAL SERVICES Add up to 100 FTEs across both divisions as part of a circa CHF 10m investment Large Majority of investment targeted at Wireless Solutions 2015 Investment Program Sales and Marketing Professionals Key account managers across Europe, Asia, MEA Solutions sales and healthcare business developers Professional Services Solutions design experts Integration and customisation engineers Global Solutions Practice Healthcare solutions experts Solutions architects Technology Software development Healthcare IT designers 13

14 STATUS OF 2015 INVESTMENT PROGRAM Achieved in H1/2015: Wireless Solutions Enhance software competence and integration skills Build global solutions with local execution capabilities Deploy professional services Network Testing Increase service and integration capabilities Enhancing sales, marketing and service capabilities for analytics Strengthen key account management 14

15 WIRELESS SOLUTIONS STRATEGY UPDATE 15

16 ASCOM WITH STRONG MOMENTUM IN HEALTHCARE Healthcare as % of total Wireless Solutions Revenues 2011 Other Segments 49% Healthcare 51% Strong performance over past 4 years Annual healthcare revenues grew over 7% CAGR since 2011 ~ 75% of revenues from repeat customers Healthcare business ~ 60% of Wireless Solutions revenue > 40% of Ascom Group s revenue 2014 Other Segments 41% Healthcare 59% Achievements in 2014 Game changer Ascom Myco opening up a new ecosystem in Healthcare ICT Repositioned as global leader in Healthcare Integrated Workflow Intelligence Broadened geographic footprint: AUS, MY 16

17 ... AS WELL AS IN SOFTWARE, SERVICES AND SOLUTIONS 2014 Software and Services now 40% of Wireless Solutions revenues Other Revenues 60% Software and Services 40% Strong performance in 2014 Annual software and services revenues at 40% of revenues Software sales grew at 10% Support services grew at 6% Achievements in 2014 Won Nya Karolinska Solutions project due to strong software and service integration capabilities Established global support desk, global consultants, and global trouble ticketing Launched Follow the Sun Service organization 17

18 COMBINATION OF STRONG TRENDS RESULT IN EMERGING HOSPITAL NEEDS Combination of strong trends in Healthcare ICT market High-level Hospital needs Ageing population, increasing the total amount of care required Dramatic increase in regulatory requirements Patient Safety and Outcome Continous shortage of qualified care workers Patient Satisfaction and Caregiver Experience Increased complexity of HC ICT requires solutions for integration Increased cost pressure on hospitals and care centres Hospital Efficiency and Financial Performance 18

19 WHICH DRIVE INVESTMENTS IN HEALTHCARE IT in USDm The global market size for Healthcare IT spending is growing 90'000 80'000 70'000 60'000 50'000 40'000 30'000 20'000 10'000 0 Source: Ovum

20 PROVIDING ASCOM A 2X BIGGER ADDRESSABLE MARKET MUSD in USDm Global Clinical Applications Market Larger addressable by repositioning as a solution provider for workflow intelligence in healthcare CAGR 9.7% Providing tools to better manage processes Growth in hospital clinical applications / software accelerate market for solutions across platforms Ascom gains direct exposure to Workflow Solutions addressable market of approx. USD 4bn Source: Ovum Ovum estimates overall Healthcare ICT Services market to be worth CHF ~14bn, growing at 12% 20

21 KEY SUCCESS FACTORS IN THE HEALTHCARE WORKFLOW SPACE Healthcare Connectivity Software Communications & Connectivity Systems and Technologies Healthcare solutions Open software platform and applications in the Healthcare connectivity and critical communications space Nurse Call, Handsets (GSM, DeCT, VoWiFi) and Pagers Healthcare IT Solutions development and system integration capabilities The opportunity for Ascom Healthcare ICT sector expected to grow 12% (CAGR) Hospitals need to change technology due to convergence of IT and Telecoms Increased cost of recurring spend on incumbent ICT activities Investment in new technologies e.g. Electronic Health Record No dominant workflow solutions and connectivity provider 21

22 ASCOM HAS SIGNIFICANTLY INVESTED TO TARGET THIS HEALTHCARE ICT SPACE > CHF 15m invested in Ascom Myco in the last 2 years > CHF 11m invested in Unite connectivity platform in the last 2 years Ascom Myco (My companion) for nurses to assist them in their jobs Ascom Myco, a workflow solutions interface, integrated with medical devices, hospital information systems and nurse workflows Powerful connectivity platform connecting mobile staff members is essential to workflow solutions Delivering two-way messaging to variety of mobile devices, e.g. advanced alarm & messaging and system management Software sales grew at 10% in 2014 Providing caregivers / clinicians with the information they need where it matters the most First sales in H

23 INTELLIGENT WORKFLOWS IN MOTION: ASSURING RIGHT MEDICATION Check entitlement Check medication and patient correct Administer medication Automatic nursing documentation 2 I Identify nursing staff Identify patient 4 Scan medication 23

24 ASCOM INCREASING PATIENT SATISFACTION IN STOCKHOLM Value Proposition Ascom as full solutions designer, systems integrator Integrated, intelligent workflows including tools to reduce alarm fatigue Multiple solutions delivered The Benefits Reduced care cost Increased nursepatient time Increased patient safety Increased satisfaction 24

25 ASCOM UNIQUELY POSITIONED TO LEAD THE MARKET FOR WORKFLOW OPTIMIZATION Patient Systems Middleware Mobility Philips Products Rauland-Borg Spok Gigaset Hill-Rom Aastra Ackermann Connexall RTX Today s addressable market CHF 1bn CHF 1bn CHF 1.5bn From 2015: Global Solutions and Value Propositions ~CHF 4bn Total addressable market Over CHF 7bn Ascom is sole provider across the key segments in this market 25

26 AND TO BECOME THE LEADING SOLUTIONS PROVIDER FOR INTEGRATED WORKFLOW IN HEALTHCARE Patient System Middleware Mobility Today s portfolio of Products, Systems, Software and Services Telecare Teligence Sub-acute care systems Unite Software Moving from discrete systems to full solutions and integration MyCo DeCT/VoWifi handsets & infrastructure Pagers allows Ascom to deliver integrated workflow solutions addressing critical hospital needs Bedside Medication Assurance Scheduled Care Assurance Healthcare connectivity software Global Solutions Practice Healthcare Partner Ecosystems Critical Alarming Patient / Porter workflow Alarm Fatigue Prevention Integrated Nurse Call Solutions 26

27 NOW IS THE RIGHT MOMENT TO ACCELERATE INVESTMENT Ascom has the future in its hands Increasing integration capabilities Highly trusted brand Ascom Myco as a game changer Dedicated value proposition Large installed base of front line worker products and systems putting Ascom in a unique position in Healthcare ICT solutions Enhanced Unite connectivity platform Strong demand in the market Increased Partner eco-system Wireless with strong momentum 27

28 THE AMBITION: ASCOM IN EVERY TIER 1 HOSPITAL IN THE WORLD A logical step Holistic value proposition meeting the specific needs of nurses, doctors, porters and hospital management The ambition: Ascom in every tier 1 hospital in the world Transformation into a workflow intelligence solutions provider in the healthcare sector Large, global ecosystem of partners Invest to accelerate the strategy implementation Generate higher returns for shareholders 28

29 NETWORK TESTING STRATEGY UPDATE

30 NETWORK TESTING STRENGTHENS CORE BUSINESS WHILE ACCELERATING ANALYTICS Global Market Leader in mobile network testing, monitoring and performance optimization solutions A plan to solidify our global leadership in Test & Measurement while expanding further up the mobile operator value chain through the success of our Customer Experience and Analytics solutions Focusing Investing Generating On Test & Measurement to further develop market leadership In Sales & Marketing, Service Delivery Higher market share and sustainable revenue growth Mobile Operators Providing most attractive opportunities for Ascom Multiple drivers Network complexity, capacity expansion, customer experience, capex management Attractive dynamics Global leadership position, strong growth in emerging markets and in emerging spaces Sales, Marketing, Key Account investment Organic growth Special focus on MEA and APAC Value Proposition Moving from tools to a holistic proprietary solution > 50% of sales from Tier 1 Mobile Operators > 30% market share in Test & Measurement > 20% sales growth of Analytics solutions 30

31 ANALYTICS: THE KEY TO UNLOCKING A LARGER ADDRESSABLE MARKET Wireless infrastructure market investment focus areas through 2020 Emerging segment Market Investment focus Support Mobile Operators Commercial Needs >CHF 1.2bn TEMS Discovery, TEMS Visualization, MobileInsight, Capacity Manager, IMS Service Assurance Business Support System (BSS) Professional Services Service Management Converged Service Delivery Platform Customer Experience Management Big Data and supporting systems New Services (Telecom adjacencies) Content Internet of Things Enterprise Mobility mhealth, etc. Support Mobile Operators Technology Needs Network Software & Hardware Network Hardware ~CHF 350m Network Test & Measurement The CEM Market is 3X the size of the Test & Measurement Market 31

32 NETWORK ANALYTICS: ACCELERATING TRACTION Analytics Product Driver for go-tomarket change Sales strategy Marketing strategy Capacity Management Addressing executive level within customer base current not addressed Dedicated, targeted business development resources Creating awareness for Ascom value propositions for Capex Management Mobile Insight New product in the market, requires consultative selling New incentive model for dedicated sales representatives IMS Service Assurance Addressing executive level within customer base current not addressed Dedicated, targeted sales resources 32

33 NETWORK TESTING WITH CLEAR IMPLEMENTATION PLAN 2015 Initiative Rationale Further expand in Test & Measurement Improve key account management Establish significant revenue streams from Analytics Build value added product near services business Increase Ascom s leading global position Test & Measurement acts as a door opener product Strengthen trusted partner positioning, increasing market share at accounts with highest business potential Gain strong foothold in fast growing part of the Telecoms Network market Build Ascom s capability as full solution provider 33

34 ASCOM GROUP ACCELERATING THE STRATEGIC SHIFT 34

35 STRATEGIC SHIFT TO ACHIEVE ASCOM 2020 AMBITION Strategic Direction Implication 2020 Ambition 1 Increased focus on Healthcare ICT 2 From product to solutions 3 From hardware-centric to software-centric 4 Network Testing refocusing Larger addressable market Increasing recurring and service content of revenues Higher margin business Larger addressable market > 75% of revenues from Healthcare > 50% of revenues from Solutions and Service > 25% of revenues from connectivity software > 20% growth rate in Analytics Wireless Solutions Division with no. 1 position in Healthcare Workflow Intelligence market 35

36 A PLATFORM FOR GROWTH Ascom 2020 Ambition Organic revenue growth 3-7% EBITDA margin 13-16% Reflecting solid growth while investing into the Healthcare ICT strategy Organic revenue growth 5-10% EBITDA margin 14-18% 2015 investments set platform for faster growth and higher profitabilitty Doubling revenues with EBITDA margins above average Healthcare ICT sector returns Assumptions For 15 Organic revenue growth is on CORE only Normal seasonality: 2 nd half-year is historically stronger than 1 st half-year based on constant currencies Stable FX as of today Stable economic environment 36

37 GUIDANCE In 2015, Ascom Core targets 3-7% organic growth, with EBITDA margin 13-16% reflecting ~CHF 10m investments. In , Ascom Group (CHFm) targets 5-10% organic growth, with EBITDA margin 14-18% Ascom Core * % 22.0% % 20.0% organic growth 18.0% Ascom Group 5-10% organic growth 5-10% organic growth % 14.8% 13%-16% 16.0% 14.0% 14%-18% 14%-18% % 2014 reported 2014 pro-forma ** Revenue EBITDA margin Revenue EBITDA margin * Ascom Group minus Other ** 2014 figures re-translated with FX rates prevailing on 30 January 2015, following the Swiss National Bank s decision in mid-january 2015, which led to a significant appreciation of the Swiss Franc. 37

38 RETURN TO SHAREHOLDERS (CHF) Commitment to consistent cash return, target pay-out ratio 35-50% Basic earnings per share (EPS) Dividend per share Pay-out ratio * 58% 39% 42% * Calculated on gross dividend amount multiplied by all outstanding shares divided by Group profit as reported in the financial statements of Ascom Group Note: Distribution per share in the following year based on prior year s profit, i.e dividend was paid in H1/

39 ASCOM 2020 ACCELERATE, INNOVATE, DELIVER a strong platform for growth 3 Investing to accelerate growth 2 Focusing on highgrowth healthcare ICT market where Ascom can and does win 4 Creating sustainable, higher, more predictable returns 39

40 [ ] GROUP CONTACT Ascom Holding AG Corp. Communications / IR Tel: Zugerstrasse 32 Fax: Baar investor@ascom.com 40