Ascom Holding Ag · SIX:ASCN

Ascom — H1 2024 Earnings Presentation

37 slides from Ascom's earnings presentation, Aug 6, 2024

  1. Slide 1: Media Conference

    Media Conference 6 August 2024

  2. Slide 2: Daniel Lack, Company Secretary

    Daniel Lack, Company Secretary

  3. Slide 3: First Half-Year 2024 at a Glance

    1. First Half-Year 2024 at a Glance Nicolas Vanden Abeele, CEO 2. Financial Update Kalina Scott, CFO 3. Strategy & Business Update Nicolas Vanden Abeele, CEO 4. Guidance Nicolas Vanden Abeele, CEO 5. Questions & Answers Half-Year Media Conference 2024 | 6 August 2024 | ©2024 ASCOM 3

  4. Slide 4: First Half-Year 2024 at a Glance

    First Half-Year 2024 at a Glance Nicolas Vanden Abeele, CEO ascom

  5. Slide 5: First Half-Year 2024 Shows a Mixed Picture

    First Half-Year 2024 Shows a Mixed Picture Revenue decrease of 2.7% at constant currencies (- 5.4% at actual currencies) mainly due to shortfalls in UK, France & Spain, and OEM. H1/2023 also benefited from a high base effect due to a revenue catch-up after the component shortage. Positive revenue de

  6. Slide 6: Net Revenue, Incoming Orders, EBITDA

    Net Revenue Incoming Orders EBITDA In actual currencies (CHFm) In actual currencies (CHFm) In actual currencies (CHFm) -3.1% -6.3% -5.4% 171.5 +12.9% 150.2 166.1 11.2 142.1 147.1 10.5 H1 2023 H1 2024 H1 2023 H2 2023 H1 2024 H1 2023 H1 2024 • -2.7% at constant currencies • -0.3% at constant currencie

  7. Slide 7: 5-Year Revenue Growth (CAGR) of 4% at constant currencies

    5-Year Revenue Growth (CAGR) of 4% at constant currencies In constant currencies (CHFm) In actual currencies (CHFm) CAGR CAGR 4% 1% 146.1 142.1 150.2 132.1 140.1 143.8 142.1 137.0 133.4 116.8 120.2 123.8 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Half-Year Media Conference 2024 | 6

  8. Slide 8: Financial Update

    Financial Update Kalina Scott, CFO ascom

  9. Slide 9: H1 2024 Financial Performance Below Our Expectations

    (at actual rates, CHFm) H1 2024 Financial Performance Below Our Expectations Incoming Orders Net Revenue Order Backlog (1) -3% -5% +7% 171.5 166.1 150.2 142.1 289.8 311.5 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 EBITDA Net Working Capital (1) (2) Capital Expenditure (3) -6% +4% +51% 11.2 10.5

  10. Slide 10: High Order Growth in the USA and RoW, Decline in Some European Markets

    High Order Growth in the USA and RoW, Decline on Orders in Some European Markets -3% 171.5 171.5 166.1 166.1 • Incoming Orders -0.3% at constant currencies (-3% in CHF) -10% 61.9 55.9 -16% in CHF • Increase in USA & Canada with (-14% at CC) multiple large deals closed Major Europe Markets 109.4 92.1

  11. Slide 11: Around 65% Converting to Revenue Beyond 2024

    Around 65% Converting to Revenue Beyond 2024 +8% CAGR +7% +4% +14% 311.5 289.8 279.6 246.3 148.7 115.1 134.3 Order backlog growth YoY: 113.7 • 7% in CHF • 8% at constant currencies 164.5 155.5 162.8 132.6 30 June 2021 30 June 2022 30 June 2023 30 June 2024 Maintenance & Support Projects, Products an

  12. Slide 12: Negative Currency Effect of -2.7%

    Negative Currency Effect of -2.7% Total variance: CHF -8.1 million (-5.4%) 150.2 -4.0 146.2 -4.1 142.1 Revenue H1 2023 Lower Revenue Revenue at Currency Effect Revenue H1 2024 Constant Currencies -2.7% -2.7% Note: All values in CHFm Half-Year Media Conference 2024 | 6 August 2024 | ©2024 ASCOM 12

  13. Slide 13: Revenue Decline from Projects, Products and Services; Higher Maintenance & Support

    Revenue Decline from Projects, Products and Services; Higher Revenue from Maintenance & Support +10.3% at CC -2.7% at CC +4% • Net revenue decline of -2.7% at constant currencies -5% 150.2 (-5.4% in CHF) 143.8 142.1 • Products, Projects & Services declined -6% at +2% in CHF constant currencies led b

  14. Slide 14: Best Performance Was Achieved in Key Markets DACH, Nordics and Netherlands

    Best Performance Was Achieved in the Key Markets DACH, Nordics and Netherlands Revenue Variance to PY Region Comment CHFm %-cc %-CHF Incoming Order growth has been strong yet conversion to revenue has USA & Canada 26.0 -5.4% -8.5% been delayed by larger orders Growth in Enterprise segment has helped

  15. Slide 15: Lower Revenue, but Unchanged Gross Profit Margin

    Lower Revenue, but Unchanged Gross Profit Margin Variance Variance • Largely unchanged Gross Profit Margin 2024 % 2023 % %-cc %-CHF • Savings in Marketing & Sales Net Revenue 142.1 100.0% 150.2 100.0% (2.7%) (5.4%) • Substantial increase in depreciation and amortization due to higher Cost of Sales (

  16. Slide 16: Steady Operating Cashflow Mitigated by Higher CAPEX and Dividend Payment

    Steady Operating Cashflow Mitigated by Higher CAPEX and Dividend Payment 11.3 -9.2 5.0 24.7 -10.8 • Ascom generated free cash flow of 21.5 CHF 2.1 million in the first six months 0.5 (H1/2023: CHF 12.2 million) • Increased dividend payments of CHF 10.8 million (2023: CHF 7.2 million) • Capitalizatio

  17. Slide 17: Continued Solid Balance Sheet with Positive Net Cash Position

    Continued Solid Balance Sheet with Positive Net Cash Position 2024 2023 2023 2022 • Net Cash position of CHF 16.5 30-Jun 31-Dec 30-Jun 31-Dec million Cash & Cash Equivalents 21.5 24.7 21.2 26.6 • NWC stable since December 2023 Borrowings (5.0) - - (10.0) • Healthy equity ratio of 36.7% Net Cash 16.5

  18. Slide 18: Strategy & Business Update

    Strategy & Business Update Nicolas Vanden Abeele, CEO ascom

  19. Slide 19: Key Enabling Platform Growth

    Key Enabling Operational Growth SaaS & Cloud Platform Efficiency Becoming the key Sustainable growth in Scalable solutions driving Continued operational enabling platform in key regions and by better revenue mix and excellence and efficiency Healthcare and leveraging solution gross margin improvemen

  20. Slide 20: Bringing Data to Life and Delivering Better Outcomes

    Bringing Data to Life and Delivering Better Outcomes Our Ambition Products/Solutions Delivering 1 • Mobile (digital) way of working 2 • Alarm management & orchestration • Alerts • Alarms • Personal Safety 3 • Patient-centric care • Nurse Call • Sensors (SmartSense, 3rd party) • MDI • Clinical Survei

  21. Slide 21: Becoming the Key Enabling Platform

    Becoming the Key Enabling Platform Nurse Call Digistat SmartSense Unite/Ofelia Mobility Half-Year Media Conference 2024 | 6 August 2024 | ©2024 ASCOM 21

  22. Slide 22: Transforming Healthcare Through an All-Encompassing Platform

    Transforming Healthcare Through an All-Encompassing Platform Hospital Care Pathways Ascom Healthcare Platform & Solutions Emergency room Collect and integrate Integrate critical information. General ward Central Monitoring station Operation room Analyze, visualize Orchestrate and prioritize data- dr

  23. Slide 23: Key Enabling Platform Growth

    Key Enabling Operational Growth SaaS & Cloud Platform Efficiency Becoming the key Sustainable growth in Scalable solutions driving Continued operational enabling platform in key regions and by better revenue mix and excellence and efficiency Healthcare and leveraging solution gross margin improvemen

  24. Slide 24: Good Basis for a Stronger H2/2024

    Good Basis for a Stronger H2/2024 Increased order backlog • Order backlog at CHF 311.5 million (31.12.2023: CHF 276.4 million) • About 35% converting still in 2024 Strong order intake in key regions • USA & Canada: + 23.7% compared to H1/2023 • Rest of World: + 28.6% compared to H1/2023 New business

  25. Slide 25: Key Enabling Platform Growth

    Key Enabling Operational Growth SaaS & Cloud Platform Efficiency Becoming the key Sustainable growth in Scalable solutions driving Continued operational enabling platform in key regions and by better revenue mix and excellence and efficiency Healthcare and leveraging solution gross margin improvemen

  26. Slide 26: Leveraging Scalable Ascom Healthcare & Enterprise Platforms

    Leveraging Scalable Ascom Healthcare & Enterprise Platforms (AHP/AEP) Scalable AHP/AEP Introduction of new fully integrated and converged platform, F.ex.: SaaS Staff Safety Solutions enabling: • Better scalability and efficiency • Increased availability and safer transmission • Easy integration of 3

  27. Slide 27: Key Enabling Platform Growth

    Key Enabling Operational Growth SaaS & Cloud Platform Efficiency Becoming the key Sustainable growth in Scalable solutions driving Continued operational enabling platform in key regions and by better revenue mix and excellence and efficiency Healthcare and leveraging solution gross margin improvemen

  28. Slide 28: Sustained Cost and Efficiency Measures to Support Profitability Increase

    Sustained Cost and Efficiency Measures to Support Profitability Increase 2023 2024 2025 2026 2027 Implementation of efficiency plan to reduce functional costs • Additional cost measures implemented in 2024 to further improve efficiency and cost base resulting in additional run-rate savings in 2025 a

  29. Slide 29: Customer References

    Customer References ascom

  30. Slide 30: Strategic Collaboration with Global Player to Drive Digitalization in Italian Healthcare

    Ascom selected for Strategic Collaboration with Global Player to Drive Digitalization in Italian Healthcare About the Partner • Leading provider of mission-critical IT-services • Operates globally with 45’000 employees (6’000 in Italy) • Third largest privately-owned ICT group in Italy • € 1.156 bil

  31. Slide 31: Important Milestone with US Veteran Hospitals

    Important Milestone for Further Business Development with US Veteran Hospitals About the Customer • Part of Veterans Administration Integrated Delivery Network (largest IDN in the US) • 1225 health care facilities serving 9 million veterans each year • Specializing in post-traumatic stress and subst

  32. Slide 32: Flagship win in largest Norwegian Hospital Region

    Flagship win in largest Norwegian Hospital Region About the Customer • South-Eastern Norway Regional Health Authority • Serving a population of 3.1 million (= 57% of total population in Norway) within Acute Care • 11 trusts, 33 hospitals, 60 locations and a staff of 83,000 Customer Objective Our Sol

  33. Slide 33: Five-year contract with Children's Health Ireland

    Five-year contract with Children's Health Ireland to drive the digitalization in Irish hospitals About the Customer • Largest healthcare project in Ireland • Leading on the clinical and operational transformation of acute pediatric healthcare through integrated services, education and research and i

  34. Slide 34: Guidance

    Guidance Nicolas Vanden Abeele, CEO ascom

  35. Slide 35: Guidance 2024

    • Ascom is active in attractive markets with continued need for digitalization • We are confident to further strengthen our competitiveness, grow our business and benefit from the significant opportunities ahead. Guidance 2024*: Given the slower start of the year, and the current market and geopolit

  36. Slide 36: Questions & Answers

    Questions & Answers ascom

  37. Slide 37: Forward-looking statements

    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 t

Ascom Holding — H1 2024 Earnings Presentation on 6ix