Ascom Holding Ag · SIX:ASCN
Ascom — H1 2023 Earnings Presentation
37 slides from Ascom's earnings presentation, Aug 8, 2023
Slide 1: Delivering upon our growth ambitions
Shape Delivering upon our growth ambitions Half-Year Media Conference 2023 8 August 2023 Half-Year Media Conference 2023 | 8 August 2023 | 1 ©2023 ASCOM
Slide 2: Welcome
Welcome Daniel Lack, Company Secretary Half-Year Media Conference 2023 | 8 August 2023 | 2 ©2023 ASCOM
Slide 3: Agenda
Agenda 1. First half-year 2023 at a glance Nicolas Vanden Abeele, CEO 2. Financial Update Dominik Maurer, CFO 3. Strategy & Business Update Nicolas Vanden Abeele, CEO 4. Guidance Nicolas Vanden Abeele, CEO 5. Questions & Answers Half-Year Media Conference 2023 | 8 August 2023 | ©2023 ASCOM 3
Slide 4: First half-year 2023 at a glance
First half-year 2023 at a glance Nicolas Vanden Abeele, CEO Half-Year Media Conference 2023 | 8 August 2023 | 4 ©2023 ASCOM
Slide 5: First half-year 2023 at a glance
First half-year 2023 at a glance H1/2023 posts good revenue and EBITDA acceleration in line with our guidance Good financial results despite demanding macroeconomic environment Double-digit revenue growth of 10.3% at constant currencies (4.5% at actual currencies) Revenue growth of >20% at constant
Slide 6: H1/2023 Highlights
H1/2023 Highlights Double-digit net revenue growth and solid EBITDA development in line with guidance Net Revenue Incoming Orders EBITDA Free Cash Flow In actual currencies (MCHF) In actual currencies (MCHF) In actual currencies (MCHF) In actual currencies (MCHF) +19.3m -4.5% +9.5m 12.2 4.5% +9.8% 1
Slide 7: Our Strategic Growth Pillars
Our Strategic Growth Pillars Progressing well on our strategy execution Deliver double-digit revenue Driving growth and Improving operational Stepping up our ESG growth and margin/EBITDA innovation, enhanced focus efficiency and cost base ambitions for our improvement across key on software workflow
Slide 8: Elevating our market impact & success in 2023
Elevating our market impact & success in 2023 Selected project wins in H1/2023 USA FINLAND NORWAY USA AUSTRIA 4 Big IDN’s HUS Sykehuspartner US Coast Guard AVAD Acute Care Acute Care Framework Framework Framework Agreement Agreement Agreement Ascom Healthcare Telligence/ Nurse Call Software/ Mobilit
Slide 9: Financial Update
Financial Update Dominik Maurer, CFO Half-Year Media Conference 2023 | 8 August 2023 | 9 ©2023 ASCOM
Slide 10: Key Figures H1/2023 (growth at actual rates)
Key Figures H1/2023 (growth at actual rates) Incoming Orders Order Backlog (1) Net Revenue -4% +4% +4% 179.5 171.5 279.6 289.8 143.8 150.2 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 EBITDA (3) Free Cash Flow Capital Expenditure (2) +9.5m +19.3m +7% 11.2 12.2 5.7 6.1 6.9 (normalized) (3) 1.7 H1
Slide 11: Incoming Orders remain strong in H1/2023
Incoming Orders remain strong in H1/2023 Positive development in USA & Canada with an increase of 7% (at constant currencies) -4% 179.5 179.5 171.5 171.5 ▪ Incoming Orders remain strong. 56.8 +9% Increase of 0.7% at constant 61.9 -2% in CHF (+4% at cc) currencies (-4.5% in CHF) Major Europe Markets
Slide 12: Continued Order Backlog Growth by 8% (at constant currencies)
Continued Order Backlog Growth by 8% (at constant currencies) Around 60% of backlog converting to revenue beyond 2023 +14% +4% +14% 289.8 +27% 279.6 246.3 115.1 134.3 194.3 113.7 Order backlog growth Year-on-Year: 99.3 ▪ 4% in CHF ▪ 8% at constant currencies 164.5 155.5 132.6 95.0 30 June 2020 30 Ju
Slide 13: Double-digit Revenue Growth of 10.3% (at constant currencies)
Double-digit Revenue Growth of 10.3% (at constant currencies) Revenue growth at actual rates impacted by significant currency effect Total variance: MCHF +6.4 (+4.5%) 158.6 8.4 14.8 150.2 143.8 Revenue H1 2022 Revenue Growth Revenue at Currency Effect Revenue H1 2023 Constant Currencies +10.3% -5.8%
Slide 14: Positive Revenue Development
Positive Revenue Development Revenue growth mainly through Projects, Products and Services +7.0% at CC +10.3% at CC +4% +3% 150.2 140.1 143.8 ▪ Net revenue growth of 10.3% at constant -2% in CHF 42.4 (+4% at CC) currencies (4.5% in CHF) 42.7 43.1 ▪ Products, Projects & Services grew by 13.2% at cons
Slide 15: Revenue H1/2023 – Regional Development (I)
Revenue H1/2023 – Regional Development (I) Excellent performance in DACH Revenue Variance to PY Region Comment MCHF %-cc %-CHF ▪ Despite strong Incoming Orders, revenue conversion is Netherlands 24.3 -0.9% -4.3% hampered by project delays and project closures ▪ Strong growth in Nurse Call revenues U
Slide 16: Revenue H1/2023 – Regional Development (II)
Revenue H1/2023 – Regional Development (II) Strong performance in France & Spain and UK Revenue Variance to PY Region Comment MCHF %-cc %-CHF ▪ Delays in project closures were not offset by growth in Nordics 19.9 +0.1% -11.2% Maintenance & Support France & 11.7 +27.0% +23.2% ▪ Strong growth across a
Slide 17: H1/2023 P&L Statement
H1/2023 P&L Statement Profitability improvement from higher revenue, gross margin accretion and efficiency improvements Variance Variance 2023 % 2022 % %-cc %-CHF ▪ Strong gross margin accretion to 47.5% due Net Revenue 150.2 100.0% 143.8 100.0% 10.3% 4.5% to better mix and product cost improvements
Slide 18: Cash Flow Development
Cash Flow Development Strong free cash flow development driven by operating activities -6.1 ▪ Net cash increased by MCHF 4.6 in +18.2 first half-year 2023 -10.0 26.6 ▪ Higher operating cash flow generated -7.2 21.2 by higher net profit and improved -0.3 working capital ▪ Higher Free Cash flow of MCH
Slide 19: Balance Sheet as of 30 June 2023
Balance Sheet as of 30 June 2023 Continued Solid Balance Sheet with positive Net Cash position 2023 2022 2022 2021 ▪ Positive Net Cash of MCHF 21.2 30-Jun 31-Dec 30-Jun 31-Dec (31.12.2022: MCHF 16.6) Cash & Cash Equivalents 21.2 26.6 14.1 29.5 ▪ Net Working Capital in line with H1/2022 despite consi
Slide 20: Strategy & Business Update
Strategy & Business Update Nicolas Vanden Abeele, CEO Half-Year Media Conference 2023 | 8 August 2023 | 20 ©2023 ASCOM
Slide 21: Our Strategic Growth Pillars
Our Strategic Growth Pillars Progressing well on our Strategic Plan Growth Strategy Operational ESG Acceleration Execution Excellence Half-Year Media Conference 2023 | 8 August 2023 | ©2023 ASCOM 21
Slide 22: Growth Acceleration
Growth Acceleration H1/2023 reconfirms Ascom’s market traction ▪ Double-digit revenue growth(1) in key regions: Increased Market & Sales Segment - >20% in DACH, France & Spain, UK & Ireland Resources Expansion ative Sel - >10% in USA & Canada, and Rest of World nsult lin o C g Sales Product & Excell
Slide 23: Strategy Execution (I)
Strategy Execution (I) New Ascom Healthcare Platform launched and gaining traction ▪ Aspiring to become: - The enabling software platform in a Hospital - Real-time clinical platform of action - To which everyone and everything connects ▪ Across the care continuum - ROI driven use cases - Solving cus
Slide 24: Strategy Execution (II)
Strategy Execution (II) New Ascom Healthcare Platform launched and gaining traction ▪ Full end-to-end platform enabling our customers to: - Meet their digitalization needs - Mitigate skilled worker shortage - Deliver better patient outcomes and care ▪ State of the art software platform with common u
Slide 25: Strategy Execution (III)
Strategy Execution (III) Upcoming Myco 4 launch leveraging advantages of Ascom Healthcare Platform ▪ Newest medical grade smartphone with - New scanning capabilities, emergency features and enhanced hot swappable battery - Operating on Android 12 with 6 embedded sensors - Availability of mission-cri
Slide 26: Strategy Execution
Strategy Execution
Slide 27: Customer Use Case: Integrated Delivery Network – USA
Customer Use Case: Integrated Delivery Network – USA Using Virtual Nurses to offset staffing shortages with the Ascom Healthcare Platform About the Customer Large Integrated Delivery Network (IDN) with almost 100 hospitals in multiple states across the US Over MCHF 2.5 revenue in initial phase with
Slide 28: Customer Use Case: SPIE - Germany
Customer Use Case: SPIE - Germany Frame Agreement with a committed volume of MEUR 4.5 About the Customer SPIE Information & Communication Services as part of SPIE Group Germany (www.spie.de) SPIE expanded its German delivery network in Healthcare in the past 5 years Customer Objective Our Solution ▪
Slide 29: Customer Use Case: Oulu University Hospital - Finland
Customer Use Case: Oulu University Hospital - Finland Efficient and patient-centric data collection solution About the Customer One of the 5 university hospitals in Finland, providing Serial Medical Telligence EMR specialized medical care for 750’000 people Devices Digistat Main Acute Care facility
Slide 30: Operational Excellence
Operational Excellence Lowering our break even point and improving efficiency ▪ Shape Up cost reduction program on track - Net positive contribution in 2023 Optimize Platform Processes Convergence - No restructuring one-off charges in 2023 - Full run rate benefits expected in 2024 Operational Excell
Slide 31: Ascom Sustainability Charter
Ascom Sustainability Charter Stepping up our ESG ambitions Ascom Reporting & Baselining Reconfirming our ESG Ambitions: ▪ Carbon neutrality by 2040 Ascom 3-5 Year Action Plans ▪ Top-tier ESG industry rating by 2030 Because we care about: GRI Standards ▪ Our Customers – … ESG becoming a business enab
Slide 32: Executing on our Transformation Journey
Executing on our Transformation Journey Exceed Sustained Performance Expand Shape Accelerating Growth Focus to Perform ▪ Strengthen competitive capabilities ▪ Operational excellence ▪ Improved financial performance Half-Year Media Conference 2023 | 8 August 2023 | ©2023 ASCOM 32
Slide 33: Guidance
Guidance Nicolas Vanden Abeele, CEO Half-Year Media Conference 2023 | 8 August 2023 | 33 ©2023 ASCOM
Slide 34: Guidance
Guidance Ascom confirms Guidance for 2023(1): ▪ Revenue growth of around 10% ▪ EBITDA margin of around 11% Re-confirming mid-term Guidance(1): ▪ Ascom sees a clear path to double-digit growth over the next years ▪ Ascom expects an annual improvement of the EBITDA-margin of about 100 bp (basis points
Slide 35: Delivering growth and shareholder value creation
Delivering growth and shareholder value creation ▪ Ascom is active in markets with secular growth trends ▪ H1/2023 delivered good progress on our growth and performance ambitions ▪ We are fully committed to further elevate Ascom’s success and value creation over 2023 and beyond, with a: - Clear grow
Slide 36: Questions & Answers
Questions & Answers Half-Year Media Conference 2023 | 8 August 2023 | 36 ©2023 ASCOM
Slide 37: 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