COLTENE Holding AG · SIX:CLTN
COLTENE — FY2020 Earnings Presentation
36 slides from COLTENE's earnings presentation, Mar 5, 2021
Slide 1: Media and Analyst Conference Financial Year 2020
Media and Analyst Conference Financial Year 2020 Martin Schaufelberger, CEO Gerhard Mahrle, CFO Altstätten – March 5, 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement This written statement and oral statements or other statements made, or to be made, by us contain forward-looking statements that do not relate solely to historical or current facts. These forward-looking statements are based on the current plans and expectations of our managem
Slide 3: Agenda
Agenda COLTENE – Full Year 2020 Highlights Review of the year 2020 Financial Reporting FY20 Outlook 2021 Q&A March 5, 2021 3
Slide 4: Highlights
Highlights • COLTENE at a glance • Key Figures 2020 March 5, 2021 4
Slide 5: COLTENE at a glance
COLTENE at a glance Dental supplier in niche markets • COLTENE develops, manufactures and markets Dental Preservation premium dental materials and small Altstätten Switzerland Efficient Treatment equipment for dental practices • 5 specialized manufacturing sites Toronto Canada Infection Control • Me
Slide 6: Comprehensive product portfolio for dental treatments
Comprehensive product portfolio for dental treatments Dentists around the world rely on COLTENE products Infection Control Dental Preservation Efficient Treatment „The infection „Sustainable preservation „Smart & efficient control specialist“ from root to crown“ utilities dentists rely on“ Instrumen
Slide 7: COLTENE Key Figures 2020
COLTENE Key Figures 2020 Better than expected 2020 result - thanks to limited impact of COVID-19, strict cost control and early recovery of the markets • Net Sales CHF 248.4 mn (PY 273.8 mn) -9.3% in CHF, only -4.1% volume (at constant FX) • Improved Operational Result: EBIT increased to 12.9% (PY 1
Slide 8: Review of the year 2020
BioSonic UC150 Ultrasonic Cleaner for Instrument Reprocessing Review of the year 2020 • COVID-19 • Strategy and Projects • Focus March 5, 2021 8
Slide 9: Infection Control: the measures in detail
Infection Control The measures in detail Employees Cost Reductions Product Portfolio Marketing & Sales Integration • Temporary positions • Personnel expenses were • New chamber autoclave • Marketing expenses were • Manufacturing of Kenda eliminated, but all regular 13.6% lower in 2020, thanks BRAVO
Slide 10: Net Sales development
Net Sales development Infection Control sales up 35.5% (YoY, in LC), almost compensating fallout from COVID-19 COVID-19 and a strong CHF were Sales development in TCHF heavily impacting COLTENE’s turnover in 2020! 60 000 150 000 55 000 135 000 50 000 120 000 45 000 105 000 40 000 35 000 90 000 30 00
Slide 11: Net Sales by Product Groups in 2020
Net Sales by Product Groups in 2020 Outstanding development in Q1 was heavily impacted by the COVID-19 pandemic – Recovery in H2 Net Sales by product groups (shares) Net Sales by product groups (in CHF 1’000) 2019 2020 120 000 113 214 100 000 94 128 86 968 87 855 35% 38% 80 000 73 646 66 369 PY: 41%
Slide 12: Milestones 2020 and Summary
Milestones 2020 and Summary COVID-19 impact mitigated Immediate reactions in Strategic focus on Infection Adjust business to new normal with protecting employees and Control and the acquisitions investments in customer relations, business as well as cost of SciCan and Micro-Mega product innovation,
Slide 13: Strategic Elements 2020
Strategic Elements 2020 A comprehensive set of measures MDR Manage increased cost and complexity of new regulatory requirements • First MDR audit in industry successfully achieved (already re-certified) • Prepared for further scopes / sites to achieve MDR • New SW tool installed to manage design h
Slide 14: Financial Reporting 2020
Dental Dam Latex/non-latex sheets for isolation Financial Reporting 2020 • Sales, Cost situation, P&L • Balance Sheet • Proposal to AGM March 5, 2021 14
Slide 15: Financial Summary 2020
Financial Summary 2020 Strong EBIT (adjusted for one-time effects) despite negative COVID-19 impact and strong Swiss Franc Sales Net sales down by 9.3% to CHF 248.4 mn, mainly driven by the strong Swiss Franc and COVID-19 At PY FX rates, the decline was 4.1%. The negative FX Impact on sales was CH
Slide 16: Net Sales by Region; global set up
Net Sales by Region; global set up Own sales force across North and Latin America, Europe, Asia including India and China North America Group companies 3 Production sites 2 Workforce (FTE) 516 33% Latin America CHF 82 mn 51% Group companies 1 CHF 128 mn Production sites 0 Workforce (FTE) 15 Europe E
Slide 17: Income Statement
Income Statement Loss from disposal of Vigodent lead to decline of EBIT margin from 11.7% to 9.4% • Net sales declined by 9.3%. At constant FX in CHF mn 2020 % 2019 % % YoY rates, decline was 4.1%. Net Sales 248.4 100.0 273.8 100.0 -9.3 • Lower gross profit in % driven by changes in the Material exp
Slide 18: Impact from Disposal of Vigodent
Impact from Disposal of Vigodent Loss from disposal of Vigodent with a non-cash impact on EBIT of CHF 8.8mn. Adjusted EBIT margin at 12.9%. 2019 P&L 2020 P&L as per as per Effects financial financial from 2020 P&L in CHF mn statement % statement % disposal adjusted % Net sales 273.8 100.0 248.4 100.
Slide 19: EBIT Bridge 2019 – 2020
EBIT Bridge 2019 – 2020 In CHF million EBIT Bridge YTD PY to AC - in CHF mn 35,0 30,0 - 9,2 25,0 0,1 20,0 5,2 - 10,8 15,0 32,0 13,3 23,3 10,0 -7,3 5,0 0,0 EBIT YTD FX GP Gross Profit PEEX OPEX D&A EBIT YTD PY AC Factors influencing the operating result ➢ Gross profit impacted by lower sales (effect
Slide 20: EBIT / EBIT margin development (before one-time impact)
EBIT / EBIT margin development (before one-time impact) Outstanding development in Q1 2020 heavily impacted by COVID-19 in Q2 – Recovery in H2 2020 EBIT development in TCHF 30 000 25% EBIT EBIT Margin in % 25 000 20% 20 000 15% 15 000 10% 10 000 5% 5 000 0 0% H1 2019 H2 2019 H1 2020 H2 2020 EBIT dow
Slide 21: Net Profit
Net Profit In CHF million ➢ Effective tax rate increased from 28.8% to 54.3% ➢ Financial result of CHF -5.2 mn includes: ➢ Higher profits in regions with relatively high tax rates ➢ CHF -2.8 mn one-time charge from the sale of ➢ Tax losses in Brazil and India not capitalized Vigodent (recycling of C
Slide 22: Balance Sheet
Balance Sheet Solid financial basis and significant reduction of net debt despite negative COIVD-19 impacts in CHF mn 31.12.19 31.12.20 % YoY Relatively high cash level from positive Cash & cash equivalents 23.0 38.5 +67.4 cashflows and to ensure liquidity during Receivables 56.2 45.1 -19.8 COVID-19
Slide 23: Equity
Equity Stable equity ratio and reduction of net debt Equity Ratio 2019 2020 In CHF million 48.0% 48.1% ➢ Equity ratio: 48.1% ➢ Net debt: CHF 21.9 mn (PY: CHF 36.8 mn) Net debt Balance Sheet 36.8 189,8 187,6 21,9 91,2 90,2 31.12.2019 31.12.2020 31.12.2019 31.12.2020 Total Assets Shareholders' equity
Slide 24: Cash Flow Statement
Cash Flow Statement Record high Free Cash Flow driven by strong operating result in CHF mn 2019 2020 % YoY Strong operating cash flow mainly due to lower taxes Net profit 20.0 8.2 -58.9% paid and reduced working capital. Loss from disposal Depreciation and amortization 6.1 10.9 of Vigodent was not a
Slide 25: Cash Flow Bridge
Cash Flow Bridge In CHF million +15.7 +0.9 +10.9 -10.5 38,5 -9.0 +8.2 23,0 Free cash flow: CHF 24.3 mn (2019: CHF 10.7 mn). Dividend payment: CHF 9.0 mn. Increase in financial liabilities Significant increase of operating cash flow: 2020 CHF 34.8 mn CHF 0.9 mn. (2019: CHF 23.8 mn). Media and Analyst
Slide 26: AGM 2021
AGM 2021 Proposals to the general assembly Re-election of the Distribution Compensation of the Group Auditor current members of the Board of Directors and Board of Directors Group Management Nick Huber, Erwin Locher, Board of Directors proposes Approval of compensation Re-election of EY Jürgen Rauch
Slide 27: Outlook 2021
SciCan STATIM G4 Cassette Autoclave Outlook 2021 • Strategy – Projects; Innovation and Infection Control • Impact Pandemic situation • Guidance March 5, 2021 27
Slide 28: Dental Industry Mega trends
Dental Industry Mega trends COVID-19 pandemic Globalization and e-commerce Increasing requirements in distribution regarding quality management and regulatory affairs (MDR) Negative trend in volume due to Digitalization in better oral health in Consolidation • the dental processes developed countrie
Slide 29: Adressable market – high market potential
Adressable market – high market potential Dental consumables and equipment Relevant market size in 2020: ~ CHF 5.8 billion Relevant market size by segment in % 22% Infection Control (38%) 42% Dental Preservation (27%) 36% Efficient Treatment (35%) (percentage of net sales of COLTENE) • Clear strateg
Slide 30: What can we expect in 2021?
What can we expect in 2021? Impact by and recovery from COVID-19 Recovery We do not expect shutdowns for dental practices even in potential further pandemic waves from COVID-19 We assume that business life will go back to more or less normal in the second semester 2021 We plan on less traveling an
Slide 31: Q&A
Q&A COLTENE Holding AG Gerhard Mahrle, CFO Feldwiesenstrasse 20 www.coltene.com 9450 Altstätten Switzerland +41 71 757 53 80 investor@coltene.com March 5, 2021 31
Slide 32: Annexe
BioSonic UC150 Ultrasonic Cleaner for Instrument Reprocessing Annexe March 5, 2021 32
Slide 33: Organization
Organization Management Board of Directors Group Management Matthew Robin Christophe Loretan, VP Sales / MarCom EMEA / ROW Allison Zwingenberger Astrid Waser Stefan Helsing, COO Martin Schlüter, VP R&D / Innovation John Westermeier, Jürgen Rauch Roland Weiger Gerhard Mahrle, CFO VP Sales / MarCom NA
Slide 34: Group Management
Group Management Functions and Main Production Sites Board of Directors COLTENE Holding AG Group Management Martin Schaufelberger, CEO Operations R&D / Innovation Product Sales / Marketing Sales / Marketing Finance and Management / Communication Communication Controlling Group Marketing North Americ
Slide 35: Key Figures COLTENE Group
Key Figures COLTENE Group Five-year overview in CHF mn in CHF mn Net Sales EBIT EBIT Margin in % 280 273,8 32 16% 15,2% 14,5% 260 248,4 30 240 28 14% 12,9% 26 12,4% 220 204,0 11,7% 24 12% 200 22 180 168,0 20 9,4% 10% 160,7 160 18 23,3 25,5 25,4 32,0 23,3 32,1 140 16 8% 2016 2017 2018 2019 2020 2016
Slide 36: Share Performance
Share Performance Volatile financial market environment Share price Earnings per share/dividend COLTENE SPI Earnings per Share Dividend 130 5,00 4,52 120 4,10 110 4,00 3,61 3,35 100 3,0 3,0 3,0 3,00 2,7 90 80 2,00 1,5 1,38 70 60 1,00 50 0,00 40 2016 2017 2018 2019 2020* * Board of Directors’ proposa