Ascom : Half-Year Results Presentation 2020

Half-Year Media Conference 2020

13 August 2020

Agenda

• Opening Statement Jeannine Pilloud, CEO
• Financial Review H1 2020 Dominik Maurer, CFO
• Ascom during Covid-19 crisis
• • Jeannine Pilloud, CEO
  • 2 Representatives of Slingeland Hospitals (NL)
• Outlook
  Jeannine Pilloud, CEO
• Q&A

HALF-YEAR MEDIA CONFERENCE | 13 AUGUST | ©2020 ASCOM

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Today's Presenters of Ascom

JEANNINE PILLOUD	DOMINIK MAURER
CEO	CFO

HALF-YEAR MEDIA CONFERENCE | 13 AUGUST | ©2020 ASCOM

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Our Commitment

As per Annual Media Conference 5 March 2020

Execution Highlights

Business stabilized through lean organization

and strong leadership team with ambitious

goals

Regions with full end-to-end P&L responsibility

Set up of Clinical Solutions Team

Transformation Program SIFOX (Simplify,

Focus, Execution) to stabilize and transform the business is advancing well - current focus on

simplification and realignment of go-to-marketand efficient delivery model

HALF-YEAR MEDIA CONFERENCE | 13 AUGUST | ©2020 ASCOM

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First Half-Year 2020 at a Glance

Decent Performance in H1 Despite the Covid-19 Crisis

2.8% net revenue growth (at constant currencies)

Substantial improvement of gross profit margin (47.8%) and EBITDA (+ CHFm7.7 vs. H1 2019 at constant currencies)

Positive development in particular in USA & Canada as well as in UK and Nordics

France with a temporary negative impact as market has been hit hard by severe lock-down

Incoming orders with slight increase of 1.1% vs. H1 2019 at constant currencies in spite of Covid-19

Solid double-digit order backlog increase

Ascom benefited from emergency activities in certain markets during the Covid-19crisis, which compensated partially for Covid-related project delays

Ascom with improved balance sheet and positive net cash position

HALF-YEAR MEDIA CONFERENCE | 13 AUGUST | ©2020 ASCOM

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Financial Review H1 2020

Dominik Maurer, CFO

Key Figures H1 2020

At Actual Currencies

Net revenue

Incoming orders

Order backlog

EBITDA

Group profit

FTE

H1 2020

1. CHFm

1. CHFm

194.3 CHFm

8.4 CHFm

(EBITDA margin of 6.3%)

-0.3 CHFm

1,269

H1 2019

137.0 CHFm

161.7 CHFm

172.1 CHFm

1.4 CHFm

(EBITDA margin of 1.0%)

6.5 CHFm*

1,306

Variance to PY

ccCHF

+2.8% -2.6%

+1.1% -4.3%

+17.6% +12.9%

+7.7 CHFm +7.0 CHFm

-6.8 CHFm -6.8 CHFm

-2.8%-2.8%

Note: All values as reported = actual currencies, when marked cc=constant currencies, eliminating currency impacts	HALF-YEAR MEDIA CONFERENCE | 13 AUGUST | ©2020 ASCOM	7
*incl. positive one-off effects of CHFm 8.3, mainly due to the sales of the Technologiepark Teningen (Germany)

Incoming Orders Increased by 2% (at Constant Currencies w/o OEM)

In CHFm

USA &	Major Regions
Canada		Europe
29.4	93.7
%-CHF:
	%-CHF:
+21.0%
-9.6%
%-cc:		%-cc:
+24.7%
	-4.2%

OEM	Rest of
World
7.8		23.9
%-CHF:	%-CHF:
-15.2%		-2.4%
%-cc:	%-cc:
-8.7%
	+4.1%

Note: Regional clusters shown follows new structure valid for 2020	HALF-YEAR MEDIA CONFERENCE | 13 AUGUST | ©2020 ASCOM	8
All values as reported = actual currencies, when marked cc=constant currencies, eliminating currency impacts

H1 2020 Revenue Development

In CHFm

Revenue growth at constant currencies: +2.8%

140.9

	3.9
137.0	-7.5

133.4

H1 2019 Revenue	Revenue Growth	H1 2020 Revenue at	Currency Effect	H1 2020 Revenue
		Constant Currencies

Note: All values as reported = actual currencies	HALF-YEAR MEDIA CONFERENCE | 13 AUGUST | ©2020 ASCOM	9

Revenue H1 2020 - Regional Development

Deviations at Actual Currencies (%-CHF) and at Constant Currencies (%-cc)

Region

DACH

France & Spain

Netherlands

Nordics

UK

USA & Canada

Rest of World

OEM

Revenue

CHFm

22.5

7.6

24.4

19.2

6.7

26.1

18.6

8.3

Variance to PY

%-cc%-CHF

+0.0%-3.0%

-29.2%-32.7%

-1.5%-6.9%

+15.3%+4.9%

+22.4%+15.5%

+13.0%+9.7%

+6.4%-0.5%

-8.2%-14.4%

Note: Regional clusters shown follows new structure valid for 2020	HALF-YEAR MEDIA CONFERENCE | 13 AUGUST | ©2020 ASCOM	10
All values as reported = actual rates, when marked cc=constant currencies, eliminating currency impact

H1 2020 - Income Statement

In CHFm	2020	%	2019	%	Variance	Variance
%-cc	%-CHF

Net Revenue	133.4	100.0%	137.0	100.0%
Cost of Sales	(69.7)	(52.2%)	(75.7)	(55.3%)

2.8%(2.6%)

(3.2%)(7.9%)

Gross Profit

63.7

47.8%

61.3

44.7%

10.3%

3.9%

Marketing and Sales	(33.9)	(25.4%)	(40.7)	(29.7%)
Research and Development	(17.9)	(13.4%)	(15.8)	(11.5%)
Administration	(10.4)	(7.8%)	(9.4)	(6.9%)
Other Operating Expenses	(0.5)	(0.4%)	(0.8)	(0.6%)

(12.3%) (16.7%)

20.3%13.3%

14.9%10.6%

12.5%(37.5%)

EBIT	1.0	0.7%	(5.4)	(3.9%)
EBITDA	8.4	6.3%	1.4	1.0%
Group Profit for the Period	(0.3)	(0.2%)	6.5*	4.7%

Note: All values as reported = actual currencies, when marked cc=constant currencies, eliminating currency impact	HALF-YEAR MEDIA CONFERENCE | 13 AUGUST | ©2020 ASCOM	11
*incl. positive one-off effects of CHFm 8.3, mainly due to the sales of the Technologiepark Teningen (Germany)

EBITDA Development

In CHFm

					8.4
				2.9
			1.1
		3.7
1.4
	-0.7
2019 H1 EBITDA	Currency Effects	Revenue and Productivity Related	Negative One-Offs	Cost Reduction	2020 H1 EBITDA

Note: All values in CHFm, EBITDA reported = actual currencies	HALF-YEAR MEDIA CONFERENCE | 13 AUGUST | ©2020 ASCOM	12

Cash Flow Development

In CHFm

-5.2
-12.0
28.8		29.2
0.0	-0.6

18.2

Cash and Cash	Cash from	CAPEX	Borrowing	Dividends	Other Cash Flows	Cash and Cash
Equivalents at	Operating Activities		Repayments			Equivalents at
31.12.2019						30.06.2020

Note: All values in CHFm at actual currencies	HALF-YEAR MEDIA CONFERENCE | 13 AUGUST | ©2020 ASCOM	13

Balance Sheet

In CHFm

	2020	2019	2019	2018
	30-Jun	31-Dec	30-Jun	31-Dec
Cash & Cash Equivalents	29.2	18.2	14.2	21.2
Borrowings	28.0	40.0	25.0	20.0
Net Cash	1.2	(21.8)	(10.8)	1.2
Net Working Capital	44.2	68.2	61.3	74.5
Total Assets	200.6	214.2	198.6	218.4
Total Equity	61.2	63.2	70.0	83.2
Equity Ratio	30.5%	29.5%	35.2%	38.1%

Note: All values in CHFm at actual currencies	HALF-YEAR MEDIA CONFERENCE | 13 AUGUST | ©2020 ASCOM	14

Ascom During Covid-19 Crisis

Jeannine Pilloud, CEO & 2 Representatives of Slingeland Hospital (NL)

Highlights and Lowlights During Covid-19 Crisis

Highlights

Win of several deals in both, Healthcare and Enterprise sector

Ascom revenue benefited from emergency activities in certain markets compensating some Covid-19related project delays

Good staff morale and team spirit during the Covid-19crisis

Lowlights

Covid-19 crisis hit in particular the French market hard - considerable impact on French business

Some projects were delayed into H2

International collaboration and support will be impacted for longer period; no prognosis possible at today's state

Very few employees infected by Covid-19

HALF-YEAR MEDIA CONFERENCE | 13 AUGUST | ©2020 ASCOM

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Selection of Substantial Wins in H1 2020

Major

Distribution

Partner in

Germany of

Healthcare

Provider in

the US of

CHFm 1.2

CHFm 5.5

Wins*

Helsinki

University

Hospital of

CHFm 1.9

Major Chain

Renowned

Retailer in UK

of CHFm 2.5

Large Health

Network in

US of CHFm

1.7

= Healthcare

= Enterprise

*total contract value

of Clinics in

Germany of

CHFm 1.2

HALF-YEAR MEDIA CONFERENCE | 13 AUGUST | ©2020 ASCOM

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Showcase Slingeland Hospital

Slingeland Project

GABY PONS VAN DIJK	NICK SCHOENAKER	MARIO DE LIJSTER
PHD, MD, NEUROLOGIST	MSC, NURSE SPECIALIST NEUROLOGY	PROJECT LEAD
SLINGELAND HOSPITAL	SLINGELAND HOSPITAL	ASCOM NETHERLANDS

HALF-YEAR MEDIA CONFERENCE | 13 AUGUST | ©2020 ASCOM

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SmartMonitoring:

Improvingthethequalityofofcarecarethroughthroughcontinuousmonitonitoringof vitalof vitalsignssigns

August2020

Slingeland Hospital

Gaby Pons van Dijk, PhD, MD, Neurologist

Nick Schoenaker Msc, Nurse Specialist Neurology

Slingeland Hospital

The challenge:	Aging population, migration of youth
The Goal:	"Achterhoek" the healthiest region in the Netherlands
Thus:	Relieving pressure on the healthcare system
The method:	Quadruple aim
	Generating and using data
	Communication

Inside Slingeland:

Smart monitoring

Success Factors for Better Patient Outcome

Continuous measurement of vital signs

Early detection of changing condition

 Shorter length of stay

+

 Better patient outcome

Decision support via artificial intelligence / clinical decision support system

Treat before actual incident happens

Continuous Vital Sign Measurements

Area				Components			Requirements
				Heart rate			Free choice in sensors
				Respiratory rate			Data integration
				Blood pressure
Measure				Oxygen
		saturation
				Early Warning			Hospitals "own"
				Score			algorithms
						 Medical device direction /
Analyze							Medical device regulation
					certification

Ascom Solution

Digistat

(Software & Services)

Digistat

(Software & Services)

• With caregiver
• Central control room

Communicate

• Integration with Nurse call
• Clinical workflow knowledge

Unite

Myco 3

Consultancy

And then Covid-19 hit us…

Project Sensing Clinic in Covid-19 Positive Patients

"In my 25 years as a pulmonologist, I've never seen people deteriorate as quickly with a viral infection as I did with corona.."

"We sometimes get people in who say: I don't really feel that distressed at all', says pulmonologist Pascal Wielders of the Catharina Hospital in Eindhoven. But in the meantime, we see from the oxygen value in their blood, that they are. What's more, we see that they're starting to turn blue.."

Volkskrant: 27-03-2020

Ascom changed the setup and algorithm, we changed workflow: First inclusion of Covid-19 patients on 1 April 2020

Trends of Vital Signs During Covid-19 Outbreak

(Patient Admitted to ICU)

First		ICU
notification		admittance

Heartrate

Respiratory rate

Oxygen level

Next Steps With Our Partners:

Rollout From a Local Setup to a National Standard

NATIONAL

REGIONAL

LOCAL		Patients at home (incl. general practitioners)
	Care hotels	Care hotels
Scale up in hospital	Nursing homes	Nursing homes
	Hospitals
(+140 patients)	Hospital

Outlook

Jeannine Pilloud, CEO

Outlook 2020 Reiterated

As per Annual Media Conference 5 March 2020

This is based on the assumption that the

Covid-19 crisis will not worsen again

HALF-YEAR MEDIA CONFERENCE | 13 AUGUST | ©2020 ASCOM

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Q&A

Next Event - Annual Media Conference on 11 March 2021

Restaurant Metropol, Zurich

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 divergence between the actual results, financial situation, development or performance of Ascom and those explicitly presumed in these statements.

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

HALF-YEAR MEDIA CONFERENCE | 13 AUGUST | ©2020 ASCOM

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