Ascom Holding Ag · SIX:ASCN
Ascom — FY2001 Earnings Presentation
39 slides from Ascom's earnings presentation, Apr 8, 2002
Slide 1: Annual Media Conference
Annual Media Conference Zurich, 8 April 2002
Slide 2: Order of the day
Order of the day l Fred Rüssli Focus 2001 l Urs T. Fischer Fiscal 2001 l Urs T. Fischer Outlook for 2002 l Fred Rüssli Questions and answers Urs T. Fischer Peter Germann Stephan Howeg Annual Press Conference, 8. April 2002 2
Slide 3: Focus 2001
Focus 2001 Fred Rüssli, Chairman of the Board of Directors Annual Press Conference, 8. April 2002 3
Slide 4: Key Figures 2001 (CHFm)
Key Figures 2001 (CHFm) 2001 2000 ∆ Incoming orders 2 924 3 170 (246) Revenue 3 143 3 143 - Operating result (before special items) (8) Operating result (124) 80 (204) Group net income (loss) (396) 67 (463) Shareholders’ equity 514 942 (428) Cash flow (116) 199 (315) Annual Press Conference, 8. Apri
Slide 5: Description of the markets
Description of the markets l Collapse of the telecoms markets (exceptional year 2001) l M&A activities reduced on average by 85% l Stock market capitalisation reduced on average by 75% Annual Press Conference, 8. April 2002 5
Slide 6: Implementation of 4+1 strategy
Implementation of 4+1 strategy Separation of the service business and technology 1 business Investment in business sectors with service and/or 2 technology leadership and in sustainable growth markets 4+1 12 Divisions 4 Divisions Divisions 2000 2001 2002 Annual Press Conference, 8. April 2002 6
Slide 7: Assessment of fiscal 2001
Assessment of fiscal 2001 l Result and share price influenced by market collapse l Difficult starting position l First fundamental restructuring since 1987 l Solid basis created for the company Annual Press Conference, 8. April 2002 7
Slide 8: Strategic steps
Strategic steps l New business rules for the Board of Directors and Executive Board (Corporate Governance) l New management team in place l Implementation of the focusing strategy l „Best in Class“ practice model with market-driven objectives Annual Press Conference, 8. April 2002 8
Slide 9: Operational steps
Operational steps l Reduction of the cost base through massive restructuring l 12 divestment and participation projects implemented l Short- and medium-term securing of liquidity l Risk management system introduced l Market success thanks to employees, quality products, customers Annual Press Confer
Slide 10: Organisational structure
Organisational structure Countries Divisions Countries Divisions Annual Press Conference, 8. April 2002 10
Slide 11: Outlook
Outlook l Portfolio with potential l Strengthening through partnerships l Basis for growth in 2003 Annual Press Conference, 8. April 2002 11
Slide 12: Ascom Portfolio
Ascom Portfolio Integrated Services Enterprise New Energy Systems Communications Technologies Network Int. Transport incl. Sec. Solut. Revenue PLC Market > CHF 30 billion CHF 2.5 billion > CHF 4 billion CHF 3 billion > CHF 40 billion Europe world-wide Europe/SME world-wide world-wide Position • Mark
Slide 13: Fiscal 2001
Fiscal 2001 Urs T. Fischer, President and CEO Annual Press Conference, 8. April 2002 13
Slide 14: Focused restructuring
Focused restructuring Strengths intensified l Internationalisation of data/voice network services l Divisional allocation of R&D l Energy Systems technology base completed (Board Mounted Power, BMP) Weaknesses reduced l Loss-making businesses eliminated (Terminals, Agora) l Risks reduced (Mailing, C
Slide 15: Consolidated income statement (CHFm)
Consolidated income statement (CHFm) 2001 as % 2000 as % Revenue 3 143 100,0 3 143 100,0 Cost of products sold (2 453) (78.0) (2 246) (71.5) Gross profit 690 22.0 897 28.5 Functional costs (814) (25.9) (817) (26.0) Operating result (124) (3.9) 80 2.5 Operating result (before special items) (8) Depre
Slide 16: Consolidated income statement (CHFm)
Consolidated income statement (CHFm) 2001 as % 2000 as % Profit/(Loss) from operational activities (338) (10.7) 75 2.4 (EBIT) Net financial income (expenses) (46) (1.5) 21 0.6 Assoc. companies‘ share of result / minority interests‘ share of profit/(loss) 4 0.1 (1) 0.0 Income tax (16) (0.5) (28) (0.9
Slide 17: Analysis of operating result (CHFm)
Analysis of operating result (CHFm) Operating result (124) Special items – Restructuring costs 25 – Operating loss from Terminals between 1.1 and 31.8.2001 44 – Adjustments for Energy Systems inventories 30 – Adjustments for projects 17 Operating result before special items (8) Annual Press Conferen
Slide 18: Analysis of loss from operating activities (CHFm)
Analysis of loss from operating activities (CHFm) Loss from operational activities (338) Special items – Restructuring costs 26 – Total loss from Terminals 144 – Unscheduled depreciation and value adjustments 80 – Adjustments for Energy Systems inventories 30 – Adjustments for projects 17 Loss from
Slide 19: Consolidated balance sheet
Consolidated balance sheet Assets 31.12.2001 31.12.2000 CHFm as % CHFm as % Fixed assets 778 31.3 904 33.7 Inventories and work in process 610 24.6 695 25.9 Accounts receivable trade 718 29.0 728 27.1 Other current assets 224 9.0 195 7.3 Cash/securities 152 6.1 162 6.0 Total assets 2 482 100.0 2 684
Slide 20: Consolidated balance sheet
Consolidated balance sheet Liabilities 31.12.2001 31.12.2000 CHFm as % CHFm as % Shareholders‘ equity 515 20.8 942 35.1 Minority interests 3 0.1 10 0.4 Long-term liabilities 499 20.1 460 17.1 Short-term liabilities 1 465 59.0 1 272 47.4 Total liabilities 2 482 100.0 2 684 100.0 Net debt 631 460 Annu
Slide 21: Cash flow (CHFm)
Cash flow (CHFm) 2001 2000 Group net income/(loss) (396) 67 Depreciation 230 152 Change in provisions 50 (20) Cash flow (116) 199 Annual Press Conference, 8. April 2002 21
Slide 22: Net debt 2001 / March 2002 E
Net debt 2001 / March 2002 E CHFm 800 700 600 500 400 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mar E Annual Press Conference, 8. April 2002 22
Slide 23: Number of employees 2001 / 2002
Number of employees 2001 / 2002 11000 10800 10600 10400 10200 10000 9800 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 02 Annual Press Conference, 8. April 2002 23
Slide 24: Ascom 4 Investment Divisions
Ascom 4 Investment Divisions l Key figures l Qualitative assessment Annual Press Conference, 8. April 2002 24
Slide 25: Key figures, Integrated Services (CHFm)
Key figures, Integrated Services (CHFm) 2001 2000 ∆% Incoming orders 1 002 868 15.4 Order backlog 523 557 (6.1) Revenue 1 019 957 6.5 Operating result (46) 17 - Operating result before special items (21) Profit/(loss) from operational activities (70) 11 - (EBIT) (22) EBIT before special items Annual
Slide 26: Integrated Services: 2002E
Integrated Services: 2002E 2002E Revenue : EBITA : Goals 2002 (Network Integration, Security Solutions, Transport Revenue) n Strengthen Network Solutions‘ maintenance and operation business areas n Use of international competence centres (e.g. for security) n Generate revenue primarily from non-defe
Slide 27: Key figures, Enterprise Communications (CHFm)
Key figures, Enterprise Communications (CHFm) 2001 2000 ∆% Incoming orders 403 423 (4.7) Order backlog 63 53 18.9 Revenue 393 424 (7.3) Operating result (11) 37 - Operating result before special items (6) Profit/(loss) from operational activities (18) 35 - (EBIT) (10) EBIT before special items Annua
Slide 28: Enterprise Communications: 2002E
Enterprise Communications: 2002E 2002E Revenue : EBITA : Goals 2002 n Optimal use of the newly created synergies (PBX and Mobility) n Strengthening of the OEM business n Broader market access through expansion of the sales channels in Europe n Open up new markets (USA) n Improvement of logistics/pro
Slide 29: Key figures, New Technologies (CHFm)
Key figures, New Technologies (CHFm) 2001 2000 ∆ Incoming orders 78 19 + 59 Order backlog 51 9 + 42 Revenue 36 10 + 26 Operating result (37) (21) (16) Operating result before special items (37) Loss from operational activities (EBIT) (67) (22) (45) EBIT before special items (41) Annual Press Confere
Slide 30: New Technologies: 2002E
New Technologies: 2002E 2002E Revenue : EBITA : Goals 2002 PLC n Product launch: Voice Adapter and low-cost Adapter n Set up development markets in Latin America, Asia and Eastern Europe n Transfer the most important pilot projects into mass markets iT_SEC n Lay foundation for break-even in 2003 Ann
Slide 31: Key figures, Energy Systems (CHFm)
Key figures, Energy Systems (CHFm) 2001 2000 ∆% Incoming orders 480 667 (28.0) Order backlog 77 130 (40.8) Revenue 577 586 (1.5) Operating result (17) 40 - Operating result before special items 18 Profit/(loss) from operational activities (23) 37 - (EBIT) 13 EBIT before special items Annual Press Co
Slide 32: Energy Systems: 2002E
Energy Systems: 2002E 2002E Revenue : EBITA : Goals 2002 n Expansion of the customer base in custom design area n Strengthen market presence in USA and China n Introduction of a Division-wide sourcing concept n Introduction of new BMP product line (Board Mounted Power) Annual Press Conference, 8. Ap
Slide 33: Key figures, Co-operation and others (CHFm)
Key figures, Co-operation and others (CHFm) Co-operation Others 2001 2000 2001 2000 Incoming orders 1 006 1 205 114 128 Order backlog 142 324 14 25 Revenue 1 172 1 173 105 131 Operating result 13 28 (26) (21) Operating result before special items 64 (26) Profit/(loss) from operational activities (13
Slide 34: Co-operation: 2001/2002
Co-operation: 2001/2002 l Achievements in 2001 l 2002 goals – Multimedia & Pay Systems: 8% increase in income – Sale of Carrier Access (ATL) with good profitability – Divestment of Multimedia & Pay Systems – Mailing Systems: good profitability, 19% growth in – Transfer of Mailing Systems Division to
Slide 35: Focus on investment Divisions in 2001/2002
Focus on 4 investment Divisions in 2001/2002 l Divestments l Investments – Cash Handling (CH) – Somelec (Energy Systems) – Terminals – Rompower (Energy Systems) – Mailing Systems – NC/S (Integrated Services) – Carrier Access (ATR) – Agora – Ascom Columbia management buyout (Integrated Services) – Ca
Slide 36: Fiscal 2002
Fiscal 2002 Urs T. Fischer, President and CEO Annual Press Conference, 8. April 2002 36
Slide 37: Outlook 2002
Outlook 2002 l Difficult year ahead; Few economic impulses can be expected l Positive operational EBITDA; 1st half-year 2% l Further reduction in net debt l Additional divestments; 2nd half-year l Equity ratio end of year around 30% Annual Press Conference, 8. April 2002 37
Slide 38: Ascom is successful and competitive
Ascom is successful and competitive l Integrated Services Gotthard Tunnel: Monitoring and control system l Enterprise Communications Ascotel in the portfolios of Swisscom, Telecom Italia, Telefonica l Powerline Communications 63 installed pilot projects (51 EU, 12 Asia) l Energy Systems IBM award: „
Slide 39: Questions and answers
aScom Questions and answers