Ascom Holding Ag · SIX:ASCN
Ascom — Investor Presentation (November 2003)
26 slides from Ascom's investor presentation, Nov 12, 2003
Slide 1: Analyst and Media Presentation, Zurich, 12th November 2003
Analyst and Media Presentation, Zurich, 12th November 2003 Juhani Anttila, CEO and Chairman Rudolf Hadorn, CFO
Slide 2: Forward-looking statements 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 th
Slide 3: Company Overview
Company Overview Juhani Anttila CEO and Chairman Media and Analyst Conference 3
Slide 4: From a critical condition to recovery in 12 months
From a critical condition to recovery in 12 months l Focus of company on 4 core business segments l Improved operational performance in all business segments l Divestitures of non-core businesses and real estate l Reduction of net financial debt l Substantial reduction of net loss l ... but further
Slide 5: Actions in 2003
Actions in 2003 l January Transformation of Powerline into technology company à financial loss eliminated l Jan./Oct. Cost reduction programs in Europe l April Sale of Energy Systems for MCHF 150 l July Sale of PBX for MCHF 35 l October Sale of real estate portfolio for MCHF 109 l December Expected
Slide 6: Today's core business segments
Today`s core business segments Wireless Solutions Transport Revenue Personal Security Cordless Telephony Messaging Personal Security Fare Collection Parking Toll Messaging Nurse Call Messaging Security Solutions Network Integration Defence Public Safety Industry Traffic Security Media and Analyst Co
Slide 7: Ascom's strengths in the core business segments
Ascom`s strenghts in the core business segments l Strong market position l Broad customer base and customer relations that can be expanded l Sound know-how in key technologies as well as in the handling of complex projects in demanding environments l Strong partnerships and alliances Ascom Core Busi
Slide 8: Revenues Ascom Group 1st Half year 2003
Revenues Ascom Group 1st Half year 2003 Segment Revenue Split June 30, `03 MCHF 622 * Corp. & Financial entities Wireless Remaining Non- 1% Solutions core 20% 20% Revenues H1, `03 Core Business Transport MCHF 494 Network Revenue Integration 20% 26% Security Solutions 13% * Note: 1st half year 2003 e
Slide 9: Improved shareholders' equity
Improved shareholders‘ equity l Improvement of balance sheet through capital increase (fully underwritten) l Allows company to capture full business potential – Financing organic growth – Improves company perception by customers / suppliers – Availability of bid- and performance-bonds in project bus
Slide 10: Cost reductions (1)
Cost reductions (1) l Half year results `03 improved, but not satisfying yet l Continuous adaption of cost structure to market environment l Package of measures to increase profitability – Costs and personnel expenses (worldwide) – Across all business segments – All measures implemented by year end
Slide 11: Cost reductions (2)
Cost reductions (2) Costs l Optimize company sites l „One company concept“ à Optimize back office functions within several countries and companies l Increase efficiency in business process Personnel expenses l Workforce reduction 450 employees worldwide l Socially acceptable solutions will be worked
Slide 12: Financial & Transaction Details
Financial & Transaction Details Rudolf Hadorn CFO Media and Analyst Conference 12
Slide 13: Profit and Loss Statement (IFRS)
Profit and Loss Statement (IFRS) MCHF H1 2003 H2 2002 H1 2002 Incoming Orders 943 814 1097 Net revenue 833 973 1093 Gross Profit 185 184 244 Gross margin 22% 19% 22% Functional Cost (210) (257) (278) Operating result (25) (73) (34) Amortisation of intangible Assets (7) (22) (59) Other (expenses) / i
Slide 14: Core/Non-Core business revenues and profitability
Core/Non-Core business revenues and profitability (MCHF as of 30th June, 2003) Revenues (Total MCHF 833 consolidated) * Operating profit (Total MCHF (25)) 30 20 5 25 10 494 0 (11) (10) 375 (20) (30) (39) (40) (50) Core segments Corp. & Non-core segments Core Corp. & Non-core segments Financial entit
Slide 15: P & L Core business segments (30th June 2003 - IFRS)
P & L Core business segments (30th June, 2003 - IFRS) Transport Security Network Wireless Total Core MCHF Revenue Solutions Integration Solutions Business * Incoming Orders 107 136 199 131 571 Net Revenue 124 83 162 125 494 Gross Profit 24 25 35 57 141 Gross margin 19.3% 30.1% 21.6% 45.6% 28.5% Oper
Slide 16: Balance Sheet (30th June, 2003 – IFRS)
Balance Sheet (30th June, 2003 – IFRS) Events after 30th June 2003 MCHF Fixed Assets 300 Cash + Securities 250 Improvement through Inventories 235 capital increase Other Current Assets 465 Total Assets 1`250 MCHF 74.25 (gross) Shareholders' Equity 146 Minority Shares 1 Long Term Liabilities 332 Addi
Slide 17: Net financial debt reduced
Net financial debt reduced (without effects from capital increase) MCHF 700 Net financial debt as of 631 30th June, 2003 in MCHF 600 Net proceeds from sale PBX, real estate 500 MCHF 120 Bond 200 400 416 Bank debt 238 Mortgages 11 300 264 Other fin. liabilities 7 206 200 Gross Debt 456 100 * 100 Cash
Slide 18: Financial planning
Financial planning 2003 l Further reduction of net loss in H2 2003 vs. H1 2003 l Substantial reduction of net financial debt vs. 2002 and H1 2003 Target 2004 l Net Income break-even Targets 2005/2006 l Clear improvement of operating result margins in Core segments Media and Analyst Conference 18
Slide 19: Overview of the Transaction (1)
Overview of the Transaction (1) l Issuance of 13.5 m shares through discounted rights offering – Each registered share entitles the holder to one right – 5 rights entitle to subscribe for 3 new shares at CHF 5.50 l Approval by Extraordinary General Meeting on 4th December, 2003 l Rights to be traded
Slide 20: Overview of the Transaction (2)
Overview of the Transaction (2) No. of Ordinary registered Nominal value share capital shares CHF in CHF As of 30th June, 2003 22,500,000 10.00 225,000,000 Off-set accumulated loss (declaratory capital reduction) (67,500,000) After decl. capital reduction 22,500,000 7.00 157,500,000 Reduction nomina
Slide 21: Important Dates for Transaction
Important Dates for Transaction 2003 l Nov. 12 Announcement of capital increase l Nov. 14 Invitation to Extraordinary General Meeting l Dec. 4 Extraordinary General Meeting l Dec. 8 – 16 Trading of subscription rights l Dec. 8 – 17 Subscription period (ends at 12:00 noon on 17th) l Dec. 23 Transacti
Slide 22: Summary
Summary Juhani Anttila CEO and Chairman Media and Analyst Conference 22
Slide 23: Upside potential in Core segments
Upside potential in Core segments l Wireless Solutions – Focus on vertical market segments with strong potential for capital expenditure – Expand OEM business and improve position in the USA l Transport Revenue – Multiply already successfully implemented solutions – Expand service and up-grade busin
Slide 24: Cost reduction in Non-core segments and Group
Cost reduction in Non-core segments and Group Non-core segments l Further restructuring and divestments Group l Reduce organizational complexity and overhead costs Media and Analyst Conference 24
Slide 25: Summary
Summary l New Ascom well positioned in four Core segments l Sustainable earnings improvement through: – Clear focus on Core business segments – Cost reductions l Capital increase and availability of bank financing create basis for profitable growth Media and Analyst Conference 25
Slide 26: Questions & Answers
Questions & Answers Media and Analyst Conference 26
Ascom Holding — Investor Presentation (November 2003) on 6ix