Encouraging year for Ascom in 2008: EBIT of CHF 44 million with a remarkable margin of 8.6%

With continuing operations, the Ascom Group recorded a profit of CHF 32.7 million in 2008. After divestment of the four discontinued units a net profit of CHF 8.2 million remains (2007: loss of CHF 48.1 million).

Ascom is free of debt, and shows a solid net liquidity of CHF 182.6 million as at December 31, 2008.

In 2008 Ascom recorded an EBIT of CHF 44.0 million (previous year: loss of CHF 16.1 million), resulting in a remarkable EBIT margin of 8.6%.

Group revenue grew by 3.8% year-on-year to CHF 509.2 million in 2008, and growth was achieved across all four quarters of the year. However, at constant exchange rates, revenue was up by 7.4%. At CHF 511.9 million, incoming orders were somewhat below the level achieved in 2007, which had been exceptionally high due to large military orders.

Excellent results posted by Wireless Solutions and positive performance by Security Solutions

In 2008 Wireless Solutions recorded excellent results, with EBIT of CHF 36.0 million and an EBIT margin of 11.7%. The division grew revenue by 2.3% (at constant exchange rates: 7.6%) to CHF 308.3 million in the year under review, and incoming orders were up by 2.2% (at constant exchange rates: 7.4%) to CHF 316.0 million.

With EBIT of CHF 9.7 million and an EBIT margin of 4.8%, Security Solutions succeeded in returning to profit. The division increased revenue year-on-year by 6.3%, of which 5.6% was attributable to the acquisition of Argogroup which has been consolidated since March 2008. In 2008 Security Solutions achieved incoming orders of CHF 196.8 million.

Group profit of CHF 8.2 million despite losses from divested units

The rigorous and on-schedule implementation of the VITESSE investment program announced in November 2007 has been a key contributor to these positive results. Ascom generated a profit of CHF 32.7 million (previous year: loss of CHF 20.6 million) from continuing operations in 2008. Profit at Group level amounted to CHF 8.2 million (2007: loss of CHF 48.1 million), despite losses incurred from the operations and divestments of the four discontinued units Traffic in Switzerland, Industry Switzerland, Toll and Payphones, which have been disposed of in the meantime.

Ascom is free of debt and has a solid balance sheet. At December 31,2008, the Group’s net cash position was furthermore high at CHF182.6 million and the equity ratio amounted to 33.0%.

Outlook

Despite the tight economic environment, Ascom is confident that it will be able to continue implementing its chosen strategy with success. Around two-thirds of Ascom's activities are related to non-cyclical business, and thanks to early and rapid implementation of the VITESSE investment program and the divestment projects, its structures and processes are largely streamlined. Ascom has set itself the objective of gaining market shares in 2009 and capitalizing on opportunities on the M&A market. In the medium term Ascom is aiming to achieve an EBIT margin of 10% at Group level. To reach this target, Ascom intends to invest consistently in innovative capability and market presence, to make further acquisitions and to continue to put high priority to cost management.

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