Straumann Holding AG · SIX:STMN
Straumann — Investor Day (December 2015)
25 slides from Straumann's investor day presentation, Dec 3, 2015
Slide 1: Global industry trends - penetrating future growth markets and entering new segments
03.12.2015 Global industry trends - penetrating future growth markets and entering new segments Dr Peter Hackel, CFO Not allowed for further use without permission Agenda Synergy potential and Neodent’s environment Current industry trends Our responses to these market trends Financial performance &
Slide 2: Synergy potential and Neodent's environment
03.12.2015 Synergy potential and Neodent’s environment Who makes where? Malmö (S) Regenerative products PREMIUM Andover (USA): Implant production Markkleeberg (D) PREMIUM Etkon CADCAM milling Villeret (CH) PREMIUM & VALUE Implant production Tokyo (JP) PREMIUM [under construction] Arlington (USA) Etk
Slide 3: Cost-effective manufacturing in Curitiba
03.12.2015 Cost-effective manufacturing in Curitiba Neodent is a top-5 global implant company in volume terms selling ~1.2 million implants p.a. (compared to 1.8 million Straumann implants) A comparable implant fixture manufactured in Curitiba (BR) by Neodent is roughly 2x cheaper than the respe
Slide 4: Continuous productivity improvements in our premium implant production
03.12.2015 Continuous productivity improvements in our premium implant production Volume and gross margin development in the premium implant production 140 Indexed to 100 in 2011 120 100 80 2011 2012 2013 2014 2015 Sales Volume COGS Villeret +Andover 7 Devaluation of the BRL lowers Neodent’s contrib
Slide 5: Prices increased to mitigate inflation; Implementing synergy measures
03.12.2015 Prices increased to mitigate inflation Price index and labor inflation are in the raise Labor cost will surge due to state imposed increase in social charges (‘dissidios’) Despite the harsh consumer environment we have increased our average prices in Brazil effective 1st of December
Slide 6: Straumann & Neodent – from strength to strength
03.12.2015 Straumann & Neodent – from strength to strength Neodent has strong reputation for customer focus and service; perceived as a ‘high quality company’ by Brazilian dentists Strong on education; associated with ILAPEO, one of the world´s largest implant training centers Strong home mark
Slide 7: Current dental implant market trends
03.12.2015 Current dental implant market trends 1 Industry consolidation 2 Value products getting more accepted Future growth markets are outside 3 the traditional implant markets Digitalisation of treatment workflows and 4 traditional manufacturing processes Patients’ expectations have increased an
Slide 8: Competitive landscape has changed
03.12.2015 1 Competitive landscape has changed 1 Global dental implant & abutment market worth ~CHF 3.5bn (2014 pro-forma) 26% 24% Others 7% 20% 13% 10% 17 Based on iData, MRG and Straumann estimates. Zimmer-Biomet 3i acquisition pending antitrust clearance. 8
Slide 9: The value segment has gained importance
03.12.2015 The value segement has gained importance 2 Market shares development per segment (in value terms)1,2 2003 2008 2014 ~ 25% ~ 30% 40% Market size est. Market size est. Market size CHF 1.3-1.6bn CHF 3.3-3.6bn est. CHF 3.5bn ~ 70% ~60% ~ 75% Premium segment (incl. Straumann) Value- und Discou
Slide 10: Large potential to unlock in underpenetrated markets
03.12.2015 Large potential to unlock in underpenetrated markets 3 Implant market size in 2014 (volume) <250k implants 250-1000k implants >1000k implants Switzerland Japan United States Austria Spain Brazil Sweden China South Korea Netherlands France Germany Canada Russia
Slide 11: Dentistry is in a period of technological upheaval
03.12.2015 Dentistry is in a period of technological upheaval 4 Impression Polyethylene Impression Intra-oral scanner Local scan and milling in the dental practice Manufacturing Casting and polishing Milling centre Laser sintering 22 Many of our new product solutions are driven by end-customer needs
Slide 12: Patients' expectations have changed and the customer face is multidimensional
03.12.2015 Patients’ expectations have changed... 5 min max Today Trend 25 Data based on Straumann poll conducted by GfK Healthcare ... and the customer face has become multidimensional 5 Dental Laboratory All-in-one multi- Solo- disciplinary Surgeon practitioners practices Dental General chains pra
Slide 13: ClearChoice and Bupa exemplify DSO trend
03.12.2015 Clearchoice is one of our first DSO customer 5 The ClearChoice network provides innovative dental implant care across the United States. Each ClearChoice Center is owned and operated by licensed and experienced dental experts, providing all-in- one treatment facilities. Each center is equ
Slide 14: Straumann's growth strategy
03.12.2015 Our responses to these market trends Straumann’s growth strategy Total solution provider Expand geographical reach Offer state-of-the-art digital and milling Adressable market Access untapped segments & indications solutions Accelerate and Fortify innovation and expand in Offer root-to-to
Slide 15: Addressing the value segment with various price points
03.12.2015 Addressing the value segment with various price points Implant price range in Europe1 €400 PURE RoxolidSLActive Roxolid SLA €200 Titanium SLA CM Acqua CM Neoporos €100 Smart Neoporos Introduction of Neodent brand in the US and selective markets in Europe 1 Example applying German referenc
Slide 16: Addressing the value segment with other brands
03.12.2015 Addressing the value segment with other brands In the US example, implant list prices from Premium companies range between USD 250-450, Value from 100-250, while discount 33 generally below the 100-dollar mark. These price bands vary by country depending on the overall PPP level and denta
Slide 17: Other medtech companies offer multiple brands
03.12.2015 Other Medtech companies offer multiple brands tailored to the customer needs Medtronic Stryker ResMed “The integration of Kanghui "The acquisition of Trauson is a provides Medtronic a strong “We will focus on improving critical step toward broadening position in China’s rapidly patient qu
Slide 18: Instradent expands global presence; Neodent's implant portfolio
03.12.2015 Instradent expands its global presence Availablity of Neodent products through: Own subsidiaries, Instradent and 3rd party distributors Future roll-outs 37 Neodent’s comprehensive implant portfolio complements well... Main product for the Main products for international market the domesti
Slide 19: Neodent portfolio complements Straumann implant lines
03.12.2015 ...with the Straumann implant lines ‘Workhorse’ Minimal Ideal for the More primary Metal-free & implant invasive aesthetic zone stability improved aesthetics PURE Tissue Level 4mm short implant Bone Level Bone Level Tapered Monotype SLA SLActive SLActive SLA SLActive SLA SLActive ZLA Tita
Slide 20: BLT represents substantial growth potential
03.12.2015 BLT represents a substantial growth potential for us in 2015 and beyond Combined implant market size US & Germany (approx. 3,2million regular implant units1) All tapered implant designs account for approx. 2/3 of the global implant market Parallel walled The implant offers excellent B
Slide 21: Potential to expand across indications and segments
03.12.2015 Potential identified to expand our position across indications and segments Stock abutments Conventionally Bone & tissue regeneration manufactured CADCAM prosthetics on Surgical planning & drill systems milling DVT / 3D radiology implants (crowns, bridges, bars) guides Dental implants Cus
Slide 22: What we are aiming for in digital, with timelines
03.12.2015 ...and what we are aiming for Dental GP lab Desktop Scan&Shape1 Intra-oral 3rd party intra- Scan Service1 scanning oral scanners In-lab milling Centralized milling Chairside solution Equipment business supplemented by various consumables ranging from ceramic materials through to implant b
Slide 23: Financial performance & Outlook 2015
03.12.2015 Financial performance & Outlook 2015 Revitalized topline and raise in profitability 200 30% Organic growth vs. main peers Operating profits 24.0% 8.6% 22.3% 20.9% 17.3% 18.2% 6.4% 20% 14.9% 4.0% 100 3.2% 4.6% 10% 2.5% 1.2% 2.4% 0.2% ‐1.0% 0.1% 0 0% ‐0.9% 2010 2011 2012 2013 2014 9M 2015 2
Slide 24: 9M 2015 growth across regions; Unchanged outlook
03.12.2015 9M 2015: Growth across all regions – lead by Asia and EMEA Organic growth rates EMEA in l.c.: 47% of Group revenue North America 8.5 27% of Group revenue 5.4 APAC 9.0 15% of Group revenue 6.1 19.1 13.2 Q3 9M Q3 9M LATAM Q3 9M 10% of Group revenue1 Group 9.1 8.6 7.6 1.3 Q3 9M Q3 9M 49 1 Fi
Slide 25: Questions & answers
03.12.2015 Questions & answers 25