Straumann Holding AG · SIX:STMN
Straumann — H1 2004 Earnings Presentation
21 slides from Straumann's earnings presentation, Aug 12, 2004
Slide 1: 2004 First-half Results
2004 First-half Results Analyst & Media Conference Zurich, 12 August 2004
Slide 2: Agenda
Agenda • Highlights • 2004 First-half Results • Outlook 12. August 2004 2
Slide 3: Highlights H1 2004
Highlights H1 2004 • All major strategic initiatives on track – US expansion – Biologics build-up – Product portfolio optimization – Branding and positioning – Capacity expansion • Continued strong sales growth across all major regions – North America and Asia/Pacific gain momentum in Q2 • Further i
Slide 4: Agenda
Agenda • Highlights • 2004 First-half Results • Outlook 12. August 2004 4
Slide 5: Strong sales growth and further improvements in profitability
Strong sales growth and further improvements in profitability CHF million FY 2003 H1 2003 H1 2004 Net sales 343.9 163.4 217.2 growth in CHF (%) 25.1 15.6 32.9 growth in locals (%) 28.1 21.1 32.1 Gross profit1 274.8 131.6 179.0 gross margin (%) 79.9 80.5 82.4 Operating profit (EBIT) 1 96.8 46.3 67.2
Slide 6: Sales growth driven by continued volume expansion
Sales growth driven by continued volume expansion Contribution to net sales growth in %, H1 2004 1 33 7 32 2 25 23 Volume Price Organic Acquis. Growth FX Growth growth in l.c. in CHF 12. August 2004 6
Slide 7: Implants remain key with Biologics gaining momentum
Implants remain key with Biologics gaining momentum 2003 2004 CHF million Q1 Q2 H1 Q1 Q2 H1 Implants Division 79.6 83.8 163.4 102.4 103.6 206.0 growth in CHF (%) 17.5 13.9 15.6 28.6 23.6 26.1 growth in locals (%) 24.6 18.1 21.1 26.5 24.2 25.3 Biologics Division1 5.5 5.7 11.2 growth in CHF (%) 0.6 9.
Slide 8: Accelerated growth particularly in North America and Asia/Pacific
Accelerated growth particularly in North America and Asia/Pacific 2003 2004 CHF million Q1 Q2 H1 Q1 Q2 H1 Europe 50.9 53.6 104.5 70.5 67.6 138.1 growth in CHF (%) 19.0 21.4 20.2 38.5 26.0 32.1 growth in locals (%) 20.3 18.7 19.5 31.5 24.6 28.0 North America 19.8 20.3 40.1 26.0 28.0 54.0 growth in CH
Slide 9: Overall cost reductions drive over-proportionate growth in operating profit
Overall cost reductions drive over- proportionate growth in operating profit CHF million FY 2003 H1 2003 H1 2004 Cost of goods sold -69.1 -31.8 -38.2 % of net sales 20.1 19.5 17.6 Gross profit1 274.8 131.6 179.0 gross margin (%) 79.9 80.5 82.4 Other income 1.1 1.1 2.9 Selling costs -124.7 -59.4 -82.
Slide 10: Net profit growth due to operational improvements and reduced tax rate
Net profit growth due to operational improvements and reduced tax rate CHF million FY 2003 2003 H1 2003 Change in % H1 2004 Operating profit (EBIT)1 96.8 46.3 67.2 EBIT margin (%) 28.2 28.3 30.9 Financial result 2.3 2.6 -1.5 Tax expense and minority interests -18.9 -10.7 -11.6 tax rate (%) 19.0 21.9
Slide 11: Continued improvement in net working capital
Continued improvement in net working capital CHF million 31.12.03 30.06.04 2 Change in % Inventory 34.7 32.5 -6.3 % of net sales 10.6 7.7 2 inventory days 189 158 Accounts receivable 42.4 57.7 35.9 % of net sales 11.1 11.5 2 receivables days 40 41 Other current assets 8.7 11.1 27.6 % of net sales 2.
Slide 12: High level of liquidity despite exceptional dividend payout
High level of liquidity despite exceptional dividend payout Net Net cash cash flow flow from from operating operating activities activities Net Net cash cash flow flow from from investing investing activities activities CHF million CHF million 57.1 64.9 -22.4 -75.3 H1 2003 H1 2004 H1 2003 H1 2004 Ne
Slide 13: Solid returns and value generation
Solid returns and value generation Key performance ratios FY 2003 H1 2003 H1 2004 Return on Equity (ROE) 36.3% 40.0% 41.9% Return on Capital Employed (ROCE)1 41.1% 45.1% 50.7% Economic profit 59.2 29.2 43.1 change in economic profit 20.5 7.6 13.9 % of net sales 17.2 17.9 19.9 12. August 2004 1 Resta
Slide 14: Additional jobs created with focus on sales force
Additional jobs created with focus on sales force Total Total employees employees Total Total sales sales representatives representatives 11% 1005 22% 903 203 247 31.12.03 30.06.04 31.12.03 30.06.04 Change in employee 4% -3% productivity1 12. August 2004 1 Calculated based on average full-time equiv
Slide 15: Good progress on strategic initiatives
Good progress on strategic initiatives • Management team further strengthened US-expansion US-expansion • Expansion of sales force by more than 40% • Groundbreaking of fully integrated organization headquarters in Andover/MA Product • Continued launches as portfolio is optimized Product • Roll-out o
Slide 16: Agenda
Agenda • Highlights • 2004 First-half Results • Outlook 12. August 2004 16
Slide 17: Product introductions offering better treatment solutions
Product introductions offering better treatment solutions 2003 2003 2004 2004 2005 2005 Implants • Prosthetics Ceramics Products focused on edentulous patients, esthetics, and temporary restoration Portfolio optimization • Surgical TE implant Standard Plus implant SLActive implant surface Biologics
Slide 18: Outlook: Full-year guidance raised for 2004
Outlook: Full-year guidance raised for 20041 • Global dental implant market expected to grow at approx. 18% in 2004 • Straumann sales expected to increase by around 26% in local currencies for the full year 2004, notwithstanding the discontinuation of the Biora acquisition effect as of June • Full-y
Slide 19: Important dates
Important dates Key Keyreporting reportingdates dates • October 21 2004 9m/Q3 sales • February 17, ’05 2004 full-year results • March 24, ’05 Shareholders‘ Annual General Meeting Selected Selected congresses congresses • September 16–18 European Association for Osseointegration (EAO), Paris • Novemb
Slide 20: Questions & Answers
Questions & Answers 12. August 2004 20
Slide 21: Disclaimer
Disclaimer This presentation contains certain “forward-looking statements”, which can be identified by the use of terminology such as “build-up”, “gaining momentum”, “product introductions”, “outlook”, “forecast”, “expect”, “expectation”, or similar wording. Such forward-looking statements reflect t