COLTENE Holding AG · SIX:CLTN
COLTENE — FY2011 Earnings Presentation
31 slides from COLTENE's earnings presentation, Mar 15, 2012
Slide 1: Financial Year 2011 Media and Analysts Meeting
Financial Year 2011 Media and Analysts Meeting March 15, 2012 Leveraging the Group’s Position 2011
Slide 2: Safe Harbour Statement
Safe Harbour Statement The information made available in this conference may include forward-looking statements that reflect the intentions, beliefs or current expectations and projections of COLTENE Holding AG about the future results of operations, financial condition, liquidity, performance and s
Slide 3: 2011 Review
2011 Review Erwin Locher, CEO ad interim and Delegate of the Board 3 2011 Results, March 15, 2012
Slide 4: COLTENE at a Glance
COLTENE at a Glance Global dental specialist Highly recognized Swiss based small cap with global brand for chair- worldwide sales through dental side dental distributors and 175 sales consumables representatives Global dental specialist p Development p and S o ge Strong emerging e g g market a e Ope
Slide 5: Comprehensive Product Portfolio
p Comprehensive Product Portfolio Globally marketed through sales partner • Focusing on innovative, aesthetically-pleasing filing materials and hi h high-precision i i mechanical instruments • Comprehensive R&D portfolio with iterative Adhesives/ Endodotics Prosthetics product improvement in Restora
Slide 6: Achievements 2011
Achievements 2011 Leveraging the Group’s position • Revenue R off CHF 146.1 146 1 million; illi reflecting fl ti organic i growth th of 1.6% at constant exchange rates (CER) – Significant g currency y fluctuation and inventory y reductions at dealers – Gain of market shares in a challenging environm
Slide 7: Dental Consumables Market
Dental Consumables Market Attractive Growth Perspectives • Increasing I i iimportance t off orall h hygiene i and d aesthetic th ti ddentistry ti t – Global demographic and economic trends – Social/lifestyle y factors • Relative stability of dental consumables market – Shared costs between patients
Slide 8: Management Actions 2011
g Management Actions 2011 Transition of Brazilian operations and launch of new products • Reorganization R i ti off Vigodent Vi d t concluded l d d – Brazilian subsidiary allows further market penetration – Important p hub for supplying pp y g pproducts to Mercosur markets • Focus on organic growth
Slide 9: Regional Breakdown
g Regional Breakdown Strong organic growth in emerging markets Comments • Good growth rates in local currencies,, but translation into Swiss francs weighs on results • 26.5% of Group sales in emerging economies • North America showed slight decline in local currencies due to inventory reductions at
Slide 10: Dynamic Brazilian Market
y Dynamic Brazilian Market Vigodent fully consolidated • Leverage COLTENE’s COLTENE s position in Brazil – Intensified dialogue with key opinion leaders – Extended dental school programs • Shift of local Vigodent offering to COLTENE products with higher margins – Migration of local brands to COLTENE
Slide 11: Breakdown by Product Groups
y Product Groups Breakdown by p Increasing demand for aesthetic dentistry Comments • Sales growth resulted primarily p y from restoration, impression, and hygiene materials • Sales in endodontics were below expectations due to delayed launch in the U.S. • Successful entry into the veneer market at I
Slide 12: Innovative Products (I)
() Innovative Products (I) COMPONEER™ • New composite veneer system • Designed for simple, safe, and time-saving restorations of front teeth • Providing patients with a natural and aesthetic smile il • Unique one session- treatment 12 2011 Results, March 15, 2012
Slide 13: Innovative Products (II)
( ) Innovative Products (II) HyFlex™ Controlled Memory NiTi files • New endodontic files • Adjust Adj t tto the th given i roott canal anatomies • Reduce the risks of displacement or perforation of the root canal 13 2011 Results, March 15, 2012
Slide 14: Operational Excellence
Operational p Excellence Constant improvements • Continued C ti d roll-out ll t off group-wide id ERP system t – 2010: Introduction in Switzerland in 2010 – 2011: Extension on German operations p – 2012: Inclusion of COLTENE sites in the US • Improved exchange of information and know-how know how •
Slide 15: Proposals to AGM
p Proposals to AGM • All members b off th the B Board d off Di Directors t are available il bl ffor re-election l ti • Election of Ernst & Young AG as auditors • Distribution of CHF 1.10 from past capital contributions 15 2011 Results, March 15, 2012
Slide 16: 2011 Financial Review
2011 Financial Review Dr. Hans Grüter, CFO 16 2011 Results, March 15, 2012
Slide 17: Financial Summary
y Financial Summary Solid performance despite headwinds • Top-line Top line performance • Headwinds – Expansion of 7.8% CER – Strong Swiss Franc – Decrease of 4.9% in reported CHF 1 USD: 1.04 -> 0.89 – 1.6% organic growth CER 1 EUR: EUR 1.38 1 38 -> > 1.23 1 23 – Dealer’s inventory reduction • Opera
Slide 18: Income Statement
Income Statement Solid performance In CHF million 2011 % 2010 % % YoY Net Sales 146.1 146 1 100 0% 100.0% 153.6 153 6 100 0% 100.0% -4.9% -4 9% Material expenses* -44.5 -30.5% -44.1 -28.7% 0.9% Operating expenses -84.4 -57.8% -86.3 -56.2% -2.2% D Depr. &A Amor. -4.9 49 -3.4% -4.8 48 -3.1% 2 1% 2.1%
Slide 19: Net Sales Development
p Net Sales Development Sustained growth in emerging markets 1.6% Comments • Reported decrease of 4.9% to CHF 146.1 million 7.8% 165.5 • Increase of 7.8% to CHF 165.5 million CER -4.9% 156.0 153.6 • 1.6% organic growth CER 146.1 • Vigodent contributed CHF 10.5 million or 7.2% of total sales • Consum
Slide 20: EBIT Margin
g EBIT Margin Affected by currency fluctuations and Vigodent 2010 2011 Fx Vigodent** 2011 Comments In CHF million Result Result Adjustments Adjustments Adjusted •Main impact due to y translation currency Nett S N Sales l 153 6 153.6 146 1 146.1 19 4 19.4 -9.5 95 156 0 156.0 (CHF 3.2 million) and Mat
Slide 21: Financial Expenses and Taxes
Financial Expenses p and Taxes In CHF million 2011 2010 % YoY Comments •Higher interest expenses EBIT 12.3 18.4 -33.6% 33.6% due to 12 months Interest income and expenses -1.2 -0.7 consolidation of Vigodent Exchange rate differences -2.1 -1.9 (PY 2 months) and higher average debt Gain on call option
Slide 22: Cash Flow Statement
Cash Flow Statement Free cash flow remains on a healthy level Comments 30 • NWC changes 25 22.6 -8 8.4 4 p compensated lower net 19.6 -5.0 profit and non-cash items CHF million 20 leading to a higher cash -3.4 -4.7 15 flow from operations in 10.8 99 9.9 85% 2011 in C 10 • Investments in equipment 5
Slide 23: Balance Sheet Structure
Balance Sheet Structure Solidly financed In CHF million 31.12.11 31.12.10 Δ Comments Cash & cash equivalents 3.1 4.1 -1.0 • Currency impact on the Receivables 34.1 37.0 -2.9 total balance sheet rather Inventory 29.9 32.5 -2.5 small (CHF 1.9 million) Property, plant & equipment 30.5 31.7 -1.1 • Reduc
Slide 24: Growth Drivers and Outlook
Growth Drivers and Outlook Erwin Locher, CEO ad interim and Delegate of the Board 24 2011 Results, March 15, 2012
Slide 25: Major Shifts From 2006 - 2013
Major j Shifts From 2006 - 2013 Ascension to a leading player with global footprint Leveraging Position Global Presence Activity Focus Medisize • Sale of Medical • Grow core • Set-up in India • Focus on value-based Listing Business activites by and China core competencies • Focus on acquisition, rea
Slide 26: Growth Drivers (I)
() Growth Drivers (I) Leverage brand with innovative solutions • For example with – COMPONEER™ in aesthetic dentistry or dentistry, – HyFlex™ in endodontics • Innovation driven to improve the Customer value proposition – Outcome – Ease of use – Differentiation for the dentist towards his patient – A
Slide 27: Growth Drivers (II)
( ) Growth Drivers (II) Leverage of emerging market network • For example with – Vigodent in Brazil – Established sales networks in India and China • Vigodent’s local brands and COLTENE’s global products allow for new market position and significant future growth • Intensified marketing and sales l
Slide 28: Growth Drivers (III)
( ) Growth Drivers (III) Leverage of sales and marketing organization • For example with – Multi-layer marketing approach – Focused sales efforts Dentists Dentists • The Coltene Sales organization promotes new or focus products directly to the Trade d ti t especially dentist, i ll tto kkey opinion l
Slide 29: Growth Drivers (IV)
( ) Growth Drivers (IV) Leverage of portfolio and lean manufacturing capabilities • For example with – OEM – Private label volumes • COLTENE owns highly automated t t d manufacturing f t i centers for various product groups • Defined proactive strategy to participate in the growth potential of priva
Slide 30: Outlook
Outlook Further leveraging the Group’s position • Management M t expects t in i 2012 + Growing dental consumables markets in most areas of the world + Increased sales in traditional and emerging g g markets thanks to newly y launched products and promotions + Positive effects from operational improv
Slide 31: Thank you for your Attention
Thank you for your Attention Leveraging the Group’s position 2011