Slide 1: 2022 Full-Year Results
2022 FULL-YEAR RESULTS Webcast for investors, analysts and media Basel, February 21, 2023 1 1 DISCLAIMER This presentation contains forward‐looking statements that reflect the current views of management, and which are subject to known and unknown risks, uncertainties and other factors that may caus
Slide 2: Agenda / Highlights
AGENDA Highlights Guillaume Daniellot Financials Marcel Kellerhals Recent achievements & strategy Guillaume Daniellot Outlook 2023 Guillaume Daniellot Q&A and upcoming events Guillaume Daniellot, Marcel Kellerhals 3 3 HIGHLIGHTS Guillaume Daniellot, CEO 4 4
Slide 3: Strong Growth in a Challenging Environment
STRONG GROWTH IN A CHALLENGING ENVIRONMENT Revenue in CHF Core EBIT margin Smiles impacted 2.3bn 26.0% 4.4m +15.7% organic growth1 in 2022 IFRS EBIT margin 23.1% CHF 592m revenue in Q4 +9.6% organic growth1 in Q4 Market share gains Employee engagement score Outlook 2023 EMEA passed High single‐digit
Slide 4: Financials: Strong Revenue Development
FINANCIALS Marcel Kellerhals Head of Investor Relations 7 7 STRONG REVENUE DEVELOPMENT Revenue development (in CHF million, rounded) 15% Regional share of in CHF 42 2′321 organic growth 30 71 13% LATAM 173 9% APAC 16% organic 23% NAM 2′022 27 2′006 ‐43 Change in organic growth 55% EMEA 20.5% 11.6% 7
Slide 5: Core Gross Margin Above 76%, Core EBIT Margin at 26.0%
CORE GROSS MARGIN ABOVE 76% ‐50bps In %, rounded 10bps 76.2 9 9 CORE EBIT MARGIN AT 26.0% In %, rounded ‐140bps ‐60bps 10 10
Slide 6: Free Cash Flow Influenced by Working Capital
FREE CASH FLOW INFLUENCED BY WORKING CAPITAL Operating cash flow In CHF million Y/Y change In CHF million, rounded FY 2021 560 ‐1’230bps FY 2022 415 ‐26% FCF margin FCF margin 21.8% 9.5% 11 11 CORE FINANCIALS AT A GLANCE REPORTED FINANCIAL OVERVIEW IN BACK-UP In CHF million, rounded FY 2022 % of rev
Slide 7: Further Increase in Dividend and Shareholder Base
FURTHER INCREASE IN DIVIDEND AND SHAREHOLDER BASE • Dividend of CHF 0.80 per share, payable 13 April 2023 (ex‐dividend: 11 April 2023) 0.80 • Share split 1:10 undertaken in 2022 followed by 40% 0.675 increase in number of shareholders 0.575 0.575 0.525 0.475 0.40 0.425 0.375 0.375 0.375 0.375 0.375
Slide 8: Digital Transformation Changing the Business
DIGITAL TRANSFORMATION CHANGING THE BUSINESS Customer Commercial Experience boost Service Operation Platforms efficiency Digital Ambition Digital Data & Tech Capabilities Digital Cyber Mindset Security 15 15 ACCELERATE THE DIGITAL TRANSFORMATION Clinical Applications Practice Applications Customer c
Slide 9: Digital Solutions Transform the Way Our Customers Work
DIGITAL SOLUTIONS TRANSFORM THE WAY OUR CUSTOMERS WORK SmileCloud Smile design and collaboration platform 17 17 GAINING MARKET SHARE IN THE PREMIUM AND VALUE SEGMENT Implantology 3 2.7 2.7 Strategic imperatives 2.5 Gain market share Market access expansion 2 Straumann Group market share in 2022* Exp
Slide 10: Gaining Market Share in the Premium and Value Segment
GAINING MARKET SHARE IN THE PREMIUM AND VALUE SEGMENT Straumann BLX and TLX Latest challenger brand Fully tapered Latest innovations in the fully tapered premium market innovations Straumann BLX Straumann TLX Anthogyr Axiom X3 Neodent Zi apically tapered ceramic implant 19 19 19 A YEAR OF ACTIVITIES
Slide 11: Significantly Improved Clear Correct Value Proposition
SIGNIFICANTLY IMPROVED CLEAR CORRECT VALUE PROPOSITION Sharpening value proposition Strategic imperatives • New integrations with intraoral scanners • Software updates (Clear Pilot 3.0, 4.0 and 5.0) Increase Expand Sharpen value • New features such as cut outs and bite ramps usage for geographical p
Slide 12: Brand Positioning to Support Strategy
BRAND POSITIONING TO SUPPORT STRATEGY AND MAXIMIZE CUSTOMER CENTRICITY 23 23 23 FURTHER INCREASED ENGAGEMENT IN A CHALLENGING ENVIRONMENT Response rate Engagement score 91% 81 Up 4% 2 points above global benchmark Good opportunities to Female in leadership positions learn and grow 76% 39% 74% in 202
Slide 13: Tremendous Progress on Our Sustainability Goals
TREMENDOUS PROGRESS ON OUR SUSTAINABILITY GOALS Our sustainability framework Smiles Education activities in low‐ and middle‐income 4.4m countries 35% ADVANCING EMPOWERING PEOPLE ORAL CARE Leadership positions Employee say they have good opportunities to grow 39% and learn female 76% OUR PURPOSE CARI
Slide 14: Significant Investments in Growth / Outlook 2023
SIGNIFICANT INVESTMENTS IN GROWTH IN 2022 WHICH WILL CONTINUE Employees >10 400 Building capacity CHF 195m 27 27 27 OUTLOOK 2023 28 28
Slide 15: Outlook 2023 / Thank You
OUTLOOK 2023 Market environment and assumption Revenue and profitability1 • Group believes global patient flow will • Group aims to achieve organic revenue remain stable growth in the high single‐digit percentage range versus the prior year • Outgrow the market which is expected to grow low single d
Slide 16: Calendar of Upcoming Events
Published today 31 31 CALENDAR OF UPCOMING EVENTS 2023 Event Location 22 ‐ 24 February Credit Suisse Europe Roadshow Paris, London, Frankfurt 8 ‐ 9 March Stifel North America Roadshow Boston, New York 15 March IDS Investor & Analyst Breakfast Cologne 23 March Kepler Cheuvreux Swiss Seminar Zurich 5
Slide 17: Currency Exposure / Core Results Reconciliation
CURRENCY EXPOSURE Revenue breakdown FY 2022 Exchange rates development 2021 ‐ 2022 CHF . 120 Other 2% 19% EUR 110 30% BRL 100 6% 90 CNY 10% 80 12.2020 03.2021 06.2021 09.2021 12.2021 03.2022 06.2022 09.2022 12.2022 USD/CAD/AUD USDCHF EURCHF CNYCHF BRLCHF 33% FX sensitivity Total cost breakdown FY 20
Slide 18: Non-Core Items / Reported Financials at a Glance
THE FOLLOWING EFFECTS WERE DEFINED AS NON-CORE ITEMS 2022 2021 • Amortization of acquisition‐related intangible • Amortization of acquisition‐related intangible assets amounting to CHF 38 million (mainly assets amounting to CHF 8 million related to the accelerated amortization of the • Earn‐out prov
Slide 19: Core Net Profit Margin / EMEA and North America
CORE NET PROFIT MARGIN ABOVE 20% In CHF million, rounded Core net Core net profit margin profit margin 22.6% 20.8% 37 37 EMEA AND NORTH AMERICA REPORT STRONG GROWTH 101.5% Revenue change (organic) 56% EMEA 44%* of Group 32.1% 33.0% 27.0% 25.8% 21.0% 15.1% 13.7% 5.9% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2
Slide 20: APAC and Latin America / Thank You
APAC FACES HEADWINDS IN CHINA AND LATAM GROWS FAST Revenue change (organic) 74.4% 62.8% 56% 56% Asia Pacific 19% of Group* 28.5% 17.9% 17.0% 18.4% 5.9% 8.6% -2.9% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2022 163.6% Latin America 8% of Group* 62.5% 48.8% 40.3% 23.8% 30.3% 20.9% 18.9% 2.9% * Refers to fu