Slide 1: Continued investment in sustained growth
Continued investment in sustained growth First-half 2018 results conference Basel, 14 August 2018
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking statements that reflect the current views of management. Such statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Straumann Group to differ m
Slide 3: Half-year highlights
Half-year highlights Marco Gadola, CEO
Slide 4: Continued investment in sustained growth
Continued investment in sustained growth REVENUE REVENUE GROWTH EBITDA MARGIN2 CHF 682m +18% organic 1 29.8% 2017: CHF 543m Driven by double-digit growth across all Q2: +20% organic; +29% in CHF Strong volume growth fuels profitability regions and businesses Q1: +15% organic; +22% in CHF increase de
Slide 5: Further acceleration in Q2 – growth exceeding 20% for the first time in 10 years
Further acceleration in Q2 – growth exceeding 20% for the first time in 10 years Organic revenue growth EMEA NAM Q1 2018 9.8% Q1 2018 17.2% Q2 2018 17.0% Q2 2018 19.0% APAC Q1 2018 25.0% Q2 2018 32.5% LATAM Q1 2018 21.5% Q2 2018 20.0% Group Q1 2018 15.3% Q2 2018 20.4% 5
Slide 6: Growth adding value for shareholders
Growth adding value for shareholders Revenue growth Underlying EBITDA margin Earnings per share in% excl. acquisition in % excl. exceptionals1 in CHF excl. exceptionals2 and FX effects +18% +80bps +14% organic EBIT +50pbs 681.5 29.8 8.63 29.0 577.7 7.57 H1 2017 H1 2018 H1 2017 H1 2018 H1 2017 H1 201
Slide 7: Impressive 5-year performance
Impressive 5-year performance 5-year organic revenue growth 5-year EBITDA1 in CHF 5-year Net Profit2 in CHF million and margin million and margin Average +12% +5.0%-points +3.2%-points 17.9% 400 29.8% 400 21.6% 29.3% 21.3% 15.7% 28.3% 27.6% 20.4% 13.1% 300 300 24.8% 9.1% 200 200 18.4% 18.1% 6.4% Mar
Slide 8: Business and regional review
Business and regional review Peter Hackel, CFO
Slide 9: Double-digit growth across all regions
Double-digit growth across all regions Revenue development (in CHF m, rounded) Regional share of 25.4% organic growth in CHF 17.9% organic 10% Latin 10.7 681.5 28.0 America 29.2 27% 35.9 Asia 24.3 577.7 Pacific 10.0 543.4 28% North Change in organic growth America 13.4% 18.1% 28.8% 20.7% 35% EMEA Re
Slide 10: EMEA boosted by emerging markets; further customer gains in North America
EMEA boosted by emerging markets; further customer gains in North America EMEA Revenue change (organic) Q2 driven by premium and digital 56% businesses, helped by timing of Easter 17.0% 15.0% break 45% of Group 10.1% 9.9% 9.9% Dynamic growth in Turkey & Russia 9.8% Excellent performances in De
Slide 11: Continued dynamism in APAC; strong performance in challenging LATAM environment
Continued dynamism in APAC; strong performance in challenging LATAM environment Asia/Pacific Revenue change (organic) Q2: Continuing dynamic expansion in 32.5% China; Japan strong; double-digit 25.7% 27.9% 56% 25.0% growth in several other markets 22.1% 19.4% Further share gains in premium impla
Slide 12: H1 growth driven by implants & digital sales
H1 growth driven by implants & digital sales – temporary halt in Emdogain supply to the US affects Biomaterials Restorative & Implants Digital Biomaterials 12
Slide 13: Key financials at a glance
Key financials at a glance in CHF m (rounded) H1 2018 H1 2017 Δ % / bps Reported Exceptionals excl. Exceptionals Reported Exceptionals excl. Exceptionals excl. Exceptionals Revenue 681.5 543.4 Organic growth in % 17.9% 14.3% Gross profit 512.9 (8.8) 521.7 418.0 (2.0) 420.0 24% margin 75.3% 76.6% 76.
Slide 14: Strong digital sales and investments constrain gross margin
Strong digital sales and our investments to become a total solution provider constrain gross margin In %, rounded -60bps -120bps 0.6 -0.6 0.3 -0.5 -0.1 -1.3 77.8 76.9 76.6 75.3 Gross profit Exceptionals FX effect Adj. gross Price, volume Clear Correct Inventory Underlying Exceptionals Gross profit m
Slide 15: Villeret expands to meet growing demand
Villeret expands to meet growing demand CHF 40 million investment in new building to meet increasing production needs up to 2030 16 100m2 additional production area Operational early 2021 15
Slide 16: EBITDA margin improves thanks to better OPEX absorption and FX tailwind
EBITDA margin improves thanks to better OPEX absorption and FX tailwind In %, rounded +80bps -30bps 1.1 -1.4 0.2 0.0 -1.3 0.9 0.3 30.1 29.8 28.7 28.5 EBITDA Exceptionals FX effect Adj. EBITDA Gross profit Distribution Administration Other income Underlying Exceptionals EBITDA margin margin H1 margin
Slide 17: Increased depreciation & amortization charges
Increased depreciation & amortization charges due to acquisition activities & production investments in CHF m (rounded) H1 2018 H1 2017 Δ % / bps 2018 vs. 2017 EBITDA (reported) 194.3 156.1 24% margin 28.5% 28.7% Depreciation 14.0 11.9 17% Total amortization 10.5 6.3 67% Regular amortization 2.6 1.9
Slide 18: EBIT margin exceeds 26% despite higher amortization charges
EBIT margin exceeds 26% despite higher amortization charges In %, rounded +50bps -70bps 1.2 -0.3 0.1 -0.5 -1.3 0.3 26.9 26.2 25.4 24.9 EBIT margin Exceptionals FX effect Adj. EBIT EBITDA Depreciation Amortization Underlying Exceptionals EBIT margin H1 2017 margin H1 EBIT margin H1 2018 2017 @FX H1 2
Slide 19: Acquisitions and talent recruitment augment global team
Acquisitions and talent recruitment augment global team Headcount 593 new colleagues 6000 since 1 January 5474 5000 4881 4000 4227 38% 3000 62% 2000 1000 Organic increase 0 2017 HY 2917 FY 2018 HY Acquired businesses 19
Slide 20: Underlying net profit climbs 26%
Underlying net profit climbs 26% In CHF m +26% 38.8 -3.4 -6.2 1.1 -14.6 -23.6 147.5 140.8 117.2 132.9 Net profit Net profit margin margin 21.6% 21.6% 1 Net profit One-time Underlying EBIT Financial Associates Income Underlying Exceptional Net profit H1 2017 effects net profit improvement result taxe
Slide 21: Free-cash-flow increases 38%
Free-cash-flow increases 38% despite further investments in production & business expansion In CHF m +38% 38.2 -11.5 -8.7 7.5 -8.4 62.3 Production expansion in 45.2 various Group sites FCF margin FCF margin 8.3% 9.1% Free cash EBITDA improvement Change in CAPEX Change in NWC Change non-cash Change i
Slide 22: Recent highlights: Strategy in action moving forward
Recent highlights Strategy in action moving forward Marco Gadola, CEO
Slide 23: United presence at Europerio
United presence at Europerio 10 000 visitors from 111 nations; 50 scientific sessions United Group presence with Straumann, Neodent and Medentika on one stand Hands-on Straumann workshop fully booked 2 corporate forums with livestream attracting 11 000 online views Large number of qualifie
Slide 24: Short video Europerio
Short video Europerio
Slide 25: Straumann Group subsidiary opens in Thailand
Straumann Group subsidiary opens in Thailand Closer to customers Opportunity to invest in growth & market development Premium and non-premium segments addressed Straumann present through distributor since 2002; local distribution team integrated 70K implants placed annually in Thailand 5
Slide 26: Clear aligner business growing rapidly
Clear aligner business growing rapidly Customer base expansion exceeds 10% in H1; +52% case significant case growth (+52%) starts Phase 1: pilot programs completed; all very positive Phase 2: started, further countries added; sales team preparation/training; dedicated-specialist recruitment
Slide 27: Createch – a leading specialist in high-precision CADCAM prosthetics
Createch – a leading specialist in high- precision CADCAM prosthetics Fully acquired in July (previously held 30%) Team of 50 employees, headquartered in Medaro, Spain Expertise in high-tech milling; offers solutions beyond the scope of most CADCAM Partnership with Straumann since 2013 Lea
Slide 28: 30% stake in botiss
30% stake in botiss Companies to build on successful partnership (started in 2014) as a driving force in dental biomaterials Secured access to botiss’ technology and unparalleled range of innovative regenerative solutions Exclusive distribution rights in many countries Combined resources to
Slide 29: Zirkonzahn collaboration in North America
Zirkonzahn collaboration in North America Distribution agreement in North America Co-development/co-marketing activities to promote seamless digital workflow, patient satisfaction, and treatment availability Aims to create further growth opportunities in the CADCAM prosthetic segment Zirkonz
Slide 30: Outlook 2018
Outlook 2018
Slide 31: Our 2018 guidance
Our 2018 guidance Barring unforeseen circumstances Market growth Global implant market to grow between 4-5% Our revenue Confident to outperform and achieve organic growth revenue growth in the mid-teen percentage range Further improvement in EBITDA margin; Profitability EBIT margin stable 31
Slide 32: Questions & answers
Questions & answers straumanngroup
Slide 33: Calendar of upcoming events
Calendar of upcoming events 2018 Event Location 03 September Investor meetings Geneva 04 September Investor meetings London 10 September Investor meetings Toronto 11 September Investor meetings New York 12 September Morgan Stanley Healthcare conference New York 11 October Investor meetings Vienna 30
Slide 34: 11th edition of 'Analyst Talk' feat. Bank Mainfirst
11th edition of ‘Analyst Talk’ feat. Bank Mainfirst From left to right: Marco Gadola, Straumann Group CEO, Dr. Marcus Wieprecht and Markus Gola, Bank Mainfirst AG 34
Slide 35: Growth strategy pays off
Growth strategy pays off in CHF m 2013 2014 2015 2016 2017 H1 2018 5-year average Revenue 679.9 710.3 798.6 917.5 1'112.1 681.5 Organic revenue growth in % 1.2 6.4 9.1 13.1 15.7 17.9 12.4 Acquisiton / Divesture effect in % -0.8 0.0 9.5 0.8 4.1 5.2 3.9 Change in l.c.% 0.4 6.4 18.6 13.9 19.8 23.1 16.4
Slide 36: Straumann's currency exposure
Straumann’s currency exposure Revenue breakdown FY20171 FX sensitivity CHF Average exchange rates (rounded) (+/- 10%) on full-year... Other 9% 14% 2017 2018 H1 2018 Revenue EBIT BRL 1 EURCHF 1.09 1.11 1.17 +/- 35m +/- 21m 10% 1 USDCHF 0.99 0.98 0.97 +/- 29m +/- 14m EUR JPY 31% 100 BRLCHF 28.37 30.68
Slide 37: Thank you
Thank you Thank you investor.relations@straumann.com