Ascom Holding Ag · SIX:ASCN

Ascom — FY2021 Earnings Presentation

40 slides from Ascom's earnings presentation, Mar 8, 2022

1. Slide 1: Annual Media Conference 2022

   Annual Media Conference 2022 8 March 2022 ANNUAL MEDIA CONFERENCE 2022 | 08 MARCH | ©2022 ASCOM 1

2. Slide 2: Welcome

   Welcome Daniel Lack, SVP Legal, Communication & IR ANNUAL MEDIA CONFERENCE 2022 | 08 MARCH | ©2022 ASCOM 2

3. Slide 3: Agenda

   Agenda  Business and Financial Review 2021 Dominik Maurer, CFO  Ascom and Our Market Environment Dr. Valentin Chapero Rueda, Chairman  Introduction and Strategic Direction Nicolas Vanden Abeele, CEO  Guidance Nicolas Vanden Abeele, CEO  Q&A ANNUAL MEDIA CONFERENCE 2022 | 08 MARCH | ©2022 ASCOM

4. Slide 4: Business and Financial Review 2021

   Business and Financial Review 2021 Dominik Maurer, CFO ANNUAL MEDIA CONFERENCE 2022 | 08 MARCH | ©2022 ASCOM 4

5. Slide 5: Full-Year 2021 at a Glance

   Full-Year 2021 at a Glance Solid Results in Line with Communicated Targets – Further Delivering on Profitable Growth 2021 results in line with the communicated guidance despite worldwide Covid-19 pandemic and global supply chain crisis Net revenue growth of 3.7% at actual currencies (2.7% at constan

6. Slide 6: Highlights and Challenges 2021

   Highlights and Challenges 2021 Markets Performed Well Despite Ongoing Pandemic Highlights Challenges Double-digit revenue growth (at constant Increased severity of the component shortage currencies) in France & Spain, UK and OEM across the industry impacting H2 business Solid revenue growth (at cons

7. Slide 7: Selection of Substantial Healthcare Wins in 2021

   Selection of Substantial Healthcare Wins in 2021 GPOs (USA) (Frame contracts with Vizient and Premier) South- Vaasa Eastern Hospital Norway Finland (Framework (Major agreement to healthcare contract) University deliver SW Italy Netherlands Hospital solutions) (Major Digistat (Nursing home Bonn win f

8. Slide 8: FY 2021 Results Summary

   FY 2021 Results Summary Incoming Orders Order Backlog (1) Net Revenue +6% +19% +4% 322.4 342.3 256.1 281.0 291.5 215.6 2020 2021 2020 2021 2020 2021 EBITDA Net Working Capital (1) (2) Capital Expenditure (3) +15% +19% +9% 28.7 58.3 11.7 24.9 10.7 49.0 2020 2021 2020 2021 2020 2021* (1) At 31 Decembe

9. Slide 9: Strong Development in Incoming Orders 2021

   Strong Development in Incoming Orders 2021 Strong Development of Products & Project Orders, Multi-year Service Contracts to be Renewed in Later Years Comment +6%  Continued strong development 342.3 despite Covid-19 and shortage 322.4 «Wales 16.5 constraints 85.5 -16% Project» 101.6  Normalized gro

10. Slide 10: Strong Order Backlog Growth by 19%

    Strong Order Backlog Growth by 19% Half Converting to Revenue Beyond 2022 CAGR +20% +19% 256.1 +21% 215.6 +19% 102.2 177.5 149.6 108.4 88.9 79.8 153.9 107.2 88.6 69.8 31 December 31 December 31 December 31 December 2018 2019 2020 2021 Maintenance & Support Projects, Products and Services Note: All v

11. Slide 11: Revenue Growth of 2.7% (At Constant Currencies)

    Revenue Growth of 2.7% (At Constant Currencies) Positive Currency Effect of 1.0% Resulting in 3.7% Growth at Actual Currency Total variance: CHF +10.5m (+3.7%) 291.5 3.0 288.5 7.5 281.0 Revenue Revenue Growth Revenue at Currency Effect Revenue 2020 constant currencies 2021 +2.7% +1.0% Note: All valu

12. Slide 12: Net Revenue Development

    Net Revenue Development Lower Growth in H2 Due to Component Shortage - Maintenance & Support Growth Remained Stable Comment +3.7% +2.6%  Net revenue growth driven by +5.0% 291.5 147.6 151.4 maintenance & support 281.0 140.1 133.4  Component shortage influenced 86.5 +7.1% +8.3% 41.5 43.8 +5.8% 80.8

13. Slide 13: Revenue FY 2021 – Regional Development (I)

    Revenue FY 2021 – Regional Development (I) Overview of Performance by Region Revenue Variance to PY Region Comment CHFm %-cc %-CHF  Strong growth by key deals in Acute Care / Long-Term Care UK 17.5 +16.6% +20.7% driven by Patient Systems and Mobility France &  Strong bounce-back in Healthcare segm

14. Slide 14: Revenue FY 2021 – Regional Development (II)

    Revenue FY 2021 – Regional Development (II) Overview of Performance by Region Revenue Variance to PY Region Comment CHFm %-cc %-CHF Netherlands 55.3 +4.0% +4.7%  Growth in recurring revenue underpins overall growth USA &  Strong performance in Software was not able to compensate 49.7 +3.0% +0.2% d

15. Slide 15: Continued Increase of Healthcare Segment

    Continued Increase of Healthcare Segment Recurring Revenue Grew Faster Than Total Revenue Revenue Variance to PY Comment CHFm %-cc %-CHF Market Segment  Solid recovery from France in Long-Term Care - Healthcare 198.3 +4.1% +4.7% Nordics and Netherlands driving Acute Care growth Enterprise  Continu

16. Slide 16: EBITDA Bridge

    EBITDA Bridge Strong EBITDA Development Resulting in EBITDA Margin of 9.8% 4.8 -4.7 28.7 -0.8 27.6 1.1 3.4 24.9 EBITDA Revenue and Cost and Incremental Cost Bad Debt EBITDA 2021 Currency Effects EBITDA 2021 2020 Productivity Efficiency Savings Component Provision at Constant Related Shortage / Curre

17. Slide 17: FY 2021 P&L

    FY 2021 P&L Significant EBITDA Accretion - Group Profit More Than Doubled Comment Variance Variance 2021 % 2020 % %-cc %-CHF  Cost of Sales – Increase from a Net Revenue 291.5 100.0% 281.0 100.0% 2.7% 3.7% combination of supply chain Cost of Sales (154.8) (53.1%) (147.7) (52.6%) 4.3% 4.8% constrain

18. Slide 18: CAPEX

    CAPEX Stable CAPEX Profile Comment 16.4  Intangible assets remain stable  Tangible assets slightly higher 11.7 4 10.7 14.7 8.6 9.2 8.9 2.5 1.7 1.8 2.5 2018 2019 2020 2021 investments in intangible assets Investments in tangible assets Note: All values in CHFm. ANNUAL MEDIA CONFERENCE 2022 | 08 MAR

19. Slide 19: Cash Flow Development

    Cash Flow Development Strong Cash Flow Despite COVID-19 and Component Shortage Comment  Operating Cash flow lower than 16.0 -19.0 11.6 -11.7 2020, with Net Working Capital 31.8 normalizing in line with the 0.0 0.8 29.5 business  Vendor loan repayment used to repay borrowings Cash and Cash from CAP

20. Slide 20: Balance Sheet

    Balance Sheet Further Improvement in Net Cash Position and Higher Equity Ratio 2021 2021 2020 2020 Comment 31-Dec 30-Jun 31-Dec 30-Jun Cash & Cash Equivalents 29.5 33.0 31.8 29.2  Cash position strongly increased  Strong Net Cash and no Borrowings - - 19.0 28.0 outstanding borrowings Net Cash / (N

21. Slide 21: Ascom and Our Market Environment

    Ascom and Our Market Environment Dr. Valentin Chapero Rueda, Chairman ANNUAL MEDIA CONFERENCE 2022 | 08 MARCH | ©2022 ASCOM 21

22. Slide 22: Market Profile (I)

    Market Profile (I) The Middleware & Connectivity Market is a Key Component of Real-Time Communication & Collaboration (RTCC)  Highly fragmented with mostly local suppliers Bedside Devices & Middleware & End-User Device Infrastructure and Apps  Many players with history in specific Connectivity* de

23. Slide 23: Market Profile (II)

    Market Profile (II) Market dynamics Ascom has clear competitive advantages  Relevance of RTCC solutions and the need for  Device agnostic vendor  no conflict of interest an “industrialized” delivery of care is growing  Large device manufacturers want to become a  Clear focus on RTCC with proven

24. Slide 24: Way Forward

    Way Forward Innovate Communication & Collaboration Solutions While Expanding Into the Continuum of Care Ascom today Ascom tomorrow Our Experience As a trusted partner of our customers, we are developing integrated communication and collaboration solutions to: Longstanding history in communication de

25. Slide 25: Proposal to Shareholders for Annual General Meeting 2022

    Proposal to Shareholders for Annual General Meeting 2022 1. Dividend proposal of CHF 0.20 per share with a payout ratio of 53% 2. All Board members stand for re-election 3. KPMG proposed as new audit firm 4. Revision of Articles of Association: Prolongation of the existing authorized capital increas

26. Slide 26: Introduction and Strategic Direction

    Introduction and Strategic Direction Nicolas Vanden Abeele, CEO ANNUAL MEDIA CONFERENCE 2022 | 08 MARCH | ©2022 ASCOM 26

27. Slide 27: Introduction

    Introduction Nicolas Vanden Abeele  Group CEO (since 1 February 2022)  Member of the Executive Committee at Barco (2017 – 2021)  Member of the Management Board of ETEX Group (2011 – 2017)  Various leadership positions at Nokia / Alcatel-Lucent (1997 – 2011) and Strategy Consulting at Arthur Ande

28. Slide 28: Ascom’s Strategy Bottom Line

    Ascom’s Strategy Bottom Line  Leveraging further our leadership position in Real-Time Communication and Collaboration (RTCC)  Evolving to a customer-centric solutions partner Transforming data into insights  Software and Services as key competitive differentiators and actionable outcomes  Mid-te

29. Slide 29: Grow Our Leadership Position in Real-Time Communication and Collaboration

    Grow Our Leadership Position in Real-Time Communication and Collaboration (RTCC) Exploiting the full solutions portfolio (with Software, Mobility, Patient Systems and Services) to provide critical information to the right person, in the right place, at the right time to take the right decisions. Com

30. Slide 30: Proactive Workflows Becoming Key to Customer Success

    Proactive Workflows Becoming Key to Customer Success Ascom to Take a Global Leadership Position As This Ecosystem Forms From reactive to proactive workflows Ascom’s key role  Results in more efficient and effective  Ascom well positioned to capture global processes and care leadership position as

31. Slide 31: First Observations and Key Priorities Going Forward

    First Observations and Key Priorities Going Forward Full End-to-End Customer Ramping Up Sales & Operational implementation of RTCC* Centricity Marketing Engine Efficiency across all segments  Customer-centric solutions  Sharpen Go-to-Market strategy  Standardize segment offerings  Shape Ascom po

32. Slide 32: Ensuring Operation Safety in a Decentralized Environment

    Ensuring Operation Safety in a Decentralized Environment Électricité De France (EDF) - France About the Customer Solution (simplified) Électricité de France (EDF), a large multinational electric utility company Major electricity provider with many Value and benefits for customer decentralized sites

33. Slide 33: Full Ascom Alarming Solution for More Efficient & Cost-Effective Care

    Full Ascom Alarming Solution for More Efficient & Cost-Effective Care Kantonsspital St.Gallen - Switzerland About the Customer Solution (simplified) Nurse Analyze Call Organize Filter Group Medical Devices Mobilize Visualize Other Prioritize Systems Platform for Medical Alarming Kantonsspital St. Ga

34. Slide 34: From Reactive Towards Proactive Care Based on Data And Algorithms

    From Reactive Towards Proactive Care Based on Data And Algorithms Hospital Sant Joan de Déu - Spain About the Customer Solution (simplified) Hospital Sant Joan de Déu in Barcelona with more than 3’000 professionals One of the first hospitals with dedicated internal Value and benefits for customer in

35. Slide 35: Exploiting The Full Potential of Ascom

    Exploiting The Full Potential of Ascom Focus Areas Towards Revenue and EBITDA Accretion Customer - Ramping Up Sales & Strategy Execution Operational Centricity Marketing Engine Towards RTCC Efficiency ANNUAL MEDIA CONFERENCE 2022 | 08 MARCH | ©2022 ASCOM 35

36. Slide 36: Guidance

    Guidance Nicolas Vanden Abeele, CEO ANNUAL MEDIA CONFERENCE 2022 | 08 MARCH | ©2022 ASCOM

37. Slide 37: Confirmation of Mid-term Guidance

    Confirmation of Mid-term Guidance As Communicated at Half-Year Media Conference 19 August 2021 ANNUAL MEDIA CONFERENCE 2022 | 08 MARCH | ©2022 ASCOM 37

38. Slide 38: Guidance 2022

    Guidance 2022 Ascom targets for 2022 mid single digit revenue growth and EBITDA margin improvement of about 100bp (basis points)*. *at constant currencies and without exceptional events ANNUAL MEDIA CONFERENCE 2022 | 08 MARCH | ©2022 ASCOM 38

39. Slide 39: Q&A

    Q&A ANNUAL MEDIA CONFERENCE 2022 | 08 MARCH | ©2022 ASCOM

40. Slide 40: Legal Disclaimer

    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 dive

Ascom Holding — FY2021 Earnings Presentation on 6ix