May 2017 - Ascom · 2017-06-27 · A promising addressable healthcare market • USD 3.3 billion* current size of addressable healthcare market for Ascom • Expected to grow at 9%

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Investor Presentation

May 2017

ASCOM INVESTOR PRESENTATION, MAY 2017 © ASCOM GROUP 1

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Our mission: ascom closes digital information gaps allowingfor the best possible decisions - anytime and anywhere.


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We do this with unique comprehensiveness and unrivalled innovation - from the point of care to anywhere!

Emergency Room System

Operating Room System

Radiology System

Lab, Pharma etc.

Patient Record

(desktop)

Patient Administration

System, Billing

(desktop)

Clinical staff

Medical Devices

Infusion pumps

Patient Beds etc

Purpose built devices

Device connectivity

Data interoperability

Workflow supporting software

Nurse Call

Alarm management


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A worthwhile mission indeed…

• Making clinical providers more effective and efficient, improving healthcare

• More patient safety and better outcome quality

• Connecting the analogue and the digital world, …

• …bringing the lever of healthcare digitalization to bear at all

• Help keeping healthcare affordable

ASCOM INVESTOR PRESENTATION, MAY 2017 © ASCOM GROUP

=> Ascom will be mission-critical to healthcare!

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Workflow Intelligence in several sectors

Business-to-business

B2BSoftware & integration solutionsNurse callWireless on-site communication

Global workflow solution provider for: • Ad-hoc• Mobile• Mission-critical

communication• Decision making

Dedicated solutions for the healthcare sector

Leveraging these solutions in other segments: • Secure establishments• Industry• Retail• Hospitality

• Headquartered in Baar, CH• CHF 300m+ annual turnover • 60% in healthcare, • 1,200 employees in 15 countries

Ascom today


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A promising addressable healthcare market

• USD 3.3 billion* current size of addressable healthcare market for Ascom

• Expected to grow at 9% p.a. to USD 4.7 billion* in 2020

• Representing only 2.3% of overall HICT market size

• Hence, a highly attractive market for meaningful and sustainable growth


* Source: McKinsey & Company

=> Ascom will gain market share in this highly fragmented market, leveraging growing innocation capacities to enhance solution portfolio

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Market trends

Ascom’s Healthcare Business grew close to market rates in 2016

However, there is significant opportunity with the growing share of software in our solution mix


>USD 150

Billion

Global Healthcare IT Spend

7–9%

Total Market Growth Rates

~13%

Global SoftwareMarket Growth Rates

~4%

Global Hardware /Systems Growth Rates

~17%

~2%

Ascom Healthcare Systems & Services Growth Rate

Ascom SoftwareGrowth Rate

Global Benchmarks 2016 Ascom Comparison (organic growth)

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Important wins in 2016

Ascom Myco Installations

Singapore


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Revenue per segment and region(CHFm, except %; figures and % based on actual currencies)

11%

3%

5%

10%

10%

60%

2015

304.2

5%

9%

9% 63%

9%5%

2016

300.8

5%

19%

15% 19%

17%

15%10%

2015

304.2

5%

19%

17% 17%

17%9%

16%2016

300.8

OEM

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Ascom’s Strategic Growth Opportunities

GROWTH

New Solutions

New Markets

New Partners

New Services

AlliancesGlobal Accounts

OEM

Evaluation of additional emerging markets

Transformation ServicesManaged Services

Portfolio IntegrationMore Workflows, Apps, SW


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Current capacity: 200 software developers in 5 countries

500 professional services and support professionals in 15 countries

Budgeted increase in software development resources in 2017

Actively evaluating options for a near shore center inside EU

We bring our significant experiences from our global customer and employee baseto the market in all that we do

R&D and Software development capacity –Supported by large investments into innovation and professional services


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New solution releases in 2017

Q1 Q2 Q3 Q4


Ascom Myco 2

teleCARE IP 9.0

Apps for Myco

Clinical apps

Medical Device Drivers

Apps for Myco

Ascom i63 DECT CDAS Core

Telligence 5.0

Unite Integration Platform

Unite Analytics

Digistat v5

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New solutions: Ascom Myco 2

Ascom Myco 2 more than a smartphone…


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Clinicaltrials

911

VoWifi

DeviceAlarms

StaffProtection

3rd party apps

ADTSupplies

andStorage

BedMgmt

CodeYellow

EMS

On-callCodeWhite

DeviceAlarms

Unite Context

Patient Monitoring

Nurse call

RTLS

Secure text Patient data

Lab results

TeamassignmentsOther

All trademarks and company names are the property of their respective owner

Unite middleware

Directory& Availability

Mission Critical

Extensions MessagingAlertsTelephonyBarcode scanning

WEADD ROS

SmartConnect

… it delivers the power of the ascomHealthcare Platform - from point of care to anywhere Cleanminder

Vitals

SmartCentral

…with great voice!


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Ascom Myco 2 Success Story April 2017• Largest medical center in

Netherlands, Erasmus MC, orders 1,000 Ascom Myco 2 + Ascom Unite Middleware Platform

• New features: Ascom Myco 2 includes Near Filed Communication (NFC) and Infrared Positioning

• Erasmus MC will use the new installations as of May 2018


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New solutions: Unite ContextFrom Telephone to Communicating within the clinical context

From Messages to Analytics

Secure text messaging + broadcasts Searchable online directory with

availability status Access to patient lists Visibility of patients’ care team Dynamic roles Access to lab results Intuitive registration workflow


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From Alerting to Workflow

From Process Disruption to ProcessOrganization

Ascom is moving ”nurse call“ to the heart of thepoint of care interaction and smart coordination

New solutions: TelligenceClinical workflows in the shape of a ground breaking nurse call solution


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Launch Ascom Telligence 5 in Europe and Asia•Streamlined communication and collaboration•Designed to simplify information distribution and reduce risk of errors•Automated clinical protocols and workflows at the patient bedside• Improved efficiency and more time with patients •Bringing patients voice to care team, anywhere, to optimize response times and increase patient satisfaction


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New solutions: Ascom Smart Central Mobile ApplicationDelivering medical device information from the point of care to anywhere


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New partners: GE, Philips, Dräger, EMR, OEM

GE: Continued strong and growing partnership Continued expansion of sales into Growth Markets including joint flagship hospital in Saudi Arabia New partnership on Ascom Digistat applications

Philips: Technology partnership signed with joint business development in progress

Dräger: Technology partnership and commercial contract signed with joint business development in progress

EMR vendors: Active discussions with three leading EMR vendors about cooperation and joint activities

OEM Partners: Active discussions with three current and potentially new OEM partners about expanding the value partnership and joint go to market activities


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New services

Consulting Services• - Workflow analysis• - Technology consulting

Hospital in NetherlandsOrganizational workflow

process design and clinical workflow consulting

Hospital in NorwayWorkflow analysissupporting process

efficiency

Hospital in SwedenCommunication assessment

service in greenfield to improveWiFi network capability

Focus to support customers success in digital transformation Hospital in SingaporeGreenfield workflow analysis

to harvest new build opportunities

Workflow analysisChange

managementWorkflow analysis

System design

Clinical assessment

System delivery

System validation

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Growth Markets 2016

+16%

Major Hospital wins in Singapore, Malaysia and China

Recruitment MD Asia

MEA

+15%

Major installation of remote Tele ICU project together with GE Healthcare delivered in Saudi Arabia and UAE

Asia

+86%

Shanghai: nurse call systems for hospital and elderly care home

China

First wins

Major Russia power plant delivery Recruitment of CEE Sales lead

ROW

+7%


New markets:Growth markets

2017: Actively strategizing and recruiting for new geographies

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Implementation of the new OneCompany organization

Strategic business focus on Healthcare ICT and mobile workflow solutions

Dedicated focus on organic growth and increased profitability

Ascom has a strong balance sheet with solid net cash position and equity ratio

Revenue of CHF 300.5 million with an EBITDA margin of 13.9% (adjusted for Network Testing and OneCompany restructuring charges)


2016 – a year of major changes

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Guidance

2017: Stronger second half-year Accustomed seasonality indicates stronger

H2 also in 2017 H1 will be still impacted by the aftermath of

OneCompany restructuring and ongoing recruiting in sales

H2 will benefit from several new solutions (E.g. Ascom Myco 2, Telligence, Apps, Unite Reporting), increase in effective salesforce and ramping up of new partnership agreements

Guidance 2017 Revenue growth expected at 3–6%

for full year with stronger growth rates for Healthcare

EBITDA margin targeted at 14–15%

Mid-term Guidance 2020 confirmed 7–10% revenue growth in 2020 Ambition to reach an EBITDA margin of

20% in 2020


(% based on figures at constant currencies)

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2016

Targ

et 2

020

Evolvement of AscomMarket segment mix Revenue mix

75%Healthcare

Offering mix

€

~15%Recurring

~85%Project based

€

~30%Recurring

€

~70%Project based

~25%Support

~17%Software

~58%Systems

23%Support

9%

68%Systems

Regional market mix

63%Healthcare

Industry, retail etc.

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Gross margin improvement from Increasing share of Ascom developed

software Increasing share of software in total revenue Improving margins in consulting, managed

services to balance conservative assumption of margin erosion in HW

Increasing share of software support revenueFunctional cost development Increasing investment in R&D to innovate

and drive growth slightly dilutes EBITDA Cost management in other functional costs

keeps cost expansion underproportionate

% of Net Revenue (based on constant currencies)

2016 * 2020

Software 80% 90%Products, Solutions & Prof. Services 54% 54%Support & Maintenance 34% 45%

Gross Margin 51% 55-57%

Sales & Marketing 24% 20-22%Research & Development (R&D) 9% 11%Administration 5% 4%

EBITDA (pro forma 2016 and guidance 2020) 14% 20%

Bridge to 20% EBITDA margin in 2020 (target model)

*Pro Forma OneCompany (Ascom Group excl. Network Testing and one offs)Target model (not guidance)


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Legal DisclaimerThis 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 andunknown risks, uncertainties and other factors which may result in a substantial divergence betweenthe actual results, financial situation, development or performance of Ascom and those explicitlypresumed in these statements.

Against the background of these uncertainties readers should not rely on forward-lookingstatements. Ascom assumes no responsibility to update forward-looking statements or adapt them tofuture events or developments.


Documents

May 2017 - Ascom · 2017-06-27 · A promising addressable healthcare market • USD 3.3 billion* current size of addressable healthcare market for Ascom • Expected to grow at 9%