Coltene Holding Ag · SIX:CLTN
Coltene — FY2019 Earnings Presentation
34 slides from Coltene's earnings presentation, Mar 5, 2020
Slide 1: The Solution Provider
The Solution Provider COLTENE Group - Media and Analyst Conference Year End Closing 2019 Zürich, March 5, 2020 Martin Schaufelberger, CEO - Gerhard Mahrle, CFO
Slide 2: Safe Harbor Statement
Safe Harbor Statement The information made available in this presentation may include forward-looking statements that reflect intentions, beliefs or current expectations and projections of the COLTENE Group about future results of operations, financial conditions, liquidity, performance and similar
Slide 3: Highlights 2019
Highlights 2019 Martin Schaufelberger, CEO Photo: Dr. Benjamin Ezeh - Manager R&D Endodontics - Coltène/Whaledent AG Altstätten, Switzerland
Slide 4: Financial Summary 2019
Financial Summary 2019 First year of the new COLTENE after the merger Sales New record sales of CHF 273.8 mn, up 34.2% Organic growth in local currencies of 1.9%, clearly above estimated overall market growth of ~1.5% Contributions from SciCan and Micro-Mega totaled to CHF 95.3 mn or 34.8% of tota
Slide 5: Post Merger COLTENE
Post Merger COLTENE COLTENE – at a glance • COLTENE develops, manufactures and markets premium dental materials and small equipment for dental practices • 6 legal manufacturing sites • MedTech products of class 1, 2a, 2b, 3 • 14 sales entities supported by over 300 sales reps • 3 product areas • Inf
Slide 6: The New COLTENE – Production and R&D Locations
The New COLTENE – Production and R&D Locations State-of-the-art production facilities in Canada, Switzerland, Germany, the US, Brazil, and France Toronto Altstätten Langenau Canada Switzerland Germany Cuyahoga-Falls Rio de Janeiro Besançon USA Brazil France Media and Analyst Conference March 5, 2020
Slide 7: Enlarged Product Assortment
Enlarged Product Assortment What COLTENE stands for Infection Control Dental Preservation Efficient Treatment „The infection „Sustainable preservation „Smart & efficient control specialist“ from root to crown“ utilities dentists rely on“ Instrument reprocessing Materials for restoration Impression m
Slide 8: Comprehensive Product Portfolio
Comprehensive Product Portfolio Comprehensive portfolio allows to provide products to solve entire dental processes Infection Control BioSonic UC150 SciCan BRAVO SciCan STATIM SciCan HYDRIM BioSonic WipeOUT SciCan OPTIM Solution for instrument reprocessing and surface disinfection Preservation ParaC
Slide 9: MDR – what is it - investment made – what can we expect
MDR – what is it - investment made – what can we expect European Medical Device Regulation (EU MDR) WHAT IS EU MDR? • EU MDR ensures high standards of quality and safety for medical devices being produced in or supplied into Europe. It was subjected to a fundamental revision in 2017 to better identi
Slide 10: Net Sales by Product Groups
Net Sales by Product Groups Growth in all product groups, Efficient Treatment leads sales Net sales by product groups (shares) Net sales 2019 by product groups (in CHF 1,000) 2018 2019 113'214 120'000 101'629 100'000 86'968 26.9% 80'000 73'646 73'276 41.3% 60'000 40'000 29'047 20'000 31.8% 0 Infecti
Slide 11: 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 4 Production sites 2 Workforce (FTE) 620 36% Latin America CHF 98 m 45% Group companies 1 CHF 125 m Production sites 1 Workforce (FTE) 120 Europe EM
Slide 12: Proven Business Model
Proven Business Model Product sale through own warehouses via distributors to dental practices Production Sites Warehouses Sales Regions Sales Channels Customers CW AG – chemical production COLTENE sales reps Associations Altstätten CH EMEA MicroMega – endodontic files Europe Besançon F Langenau GER
Slide 13: Mega Trends
Mega Trends Drivers of the dental industry More group practices respectively chain practices in dental service DSO = group practices Explain the DSO idea, growth and difference to regular dentists Media and Analyst Conference March 5, 2020 13
Slide 14: Group Practices - DSO
Group Practices - DSO Fast growing DSO require a dedicated channel DSO: Dental Support Organization; own/manage everything but not the dental treatment Why set up a DSO structure? • Provide a legal entity separating support organization from clinical tasks • Allow non-dentists to participate (equity
Slide 15: Strategic Approach
Strategic Approach Leverage synergies and cross sales potential From wide range of Focus to the dental Utilize synergies Turn increased regulatory products to professional requirement into a Solution Provider competitive advantage PM to align portfolio CRM in sales (incl. DSO) Review Endo integratio
Slide 16: Utilize Synergies
Utilize Synergies Improvements to further materialize the expected synergies from the merger Examples of our measures to further materialize the expected synergies: 1. Synergies in sales: Challenges Solutions Some Endo distributors were overstocked • Intensify actions on sell out • Dedicated endo te
Slide 17: Financials 2019
Financials 2019 Gerhard Mahrle, CFO Photo: Sophie Mercier - Machine Operator - Micro-Mega SA Besançon, France
Slide 18: Financial Summary 2019
Financial Summary 2019 Strong top-line growth, impacted by acquisitions and integration costs Sales New record sales of CHF 273.8 mn, up 34.2% Organic growth in LC of 1.9%, clearly above estimated overall market growth of ~1.5% Contributions from SciCan and Micro-Mega totaled to CHF 95.3 mn or 34.
Slide 19: Income Statement
Income Statement Non-recurring effects & acquisitions lead to slight decline of EBIT margin from 12.4% to 11.7% in CHF mn 2019 % 2018 % % YoY • Increase in net sales and operating expenses mainly due to the acquisition Net Sales 273.8 100.0 204.0 100.0 +34.2 of SciCan and Micro-Mega. Material expens
Slide 20: EBIT Development
EBIT Development In CHF million Factors influencing the operating result 80.0 ➢ Competitive market environment puts further pressure on 70.0 net sales and gross margin. ➢ Strong gross margin & OPEX increase, acquisition driven. 60.0 ➢ OPEX are impacted by non-recurring costs in quality 50.0 manageme
Slide 21: Net Profit
Net Profit In CHF million ➢ Overall increase in financial expenses: ➢ Effective tax rate increased from 26.6% to 28.8% ➢ Increase in FX losses compared to PY mainly in ➢ One-off items: Canada ➢ CHF 0.8 mn tax expenses related to planned changes in ➢ Increase in interest expenses due to higher legal/
Slide 22: Balance Sheet
Balance Sheet Solid financial basis despite capital distribution to shareholders from capital contribution reserves in CHF million 31.12.18 31.12.19 % YoY The acquisition of SciCan and Micro-Mega Cash & cash equivalents 20.9 23.0 +10.0 took place at the beginning of October 2018 Receivables 60.7 56.
Slide 23: Equity
Equity Solid equity ratio after switch from IFRS to Swiss GAAP FER In CHF million Equity Ratio 2018: 48.1% 2019: 48.0% ➢ Equity ratio: 48.0% ➢ Net debt: CHF 36.8 million (PY: CHF 29.2 million) Balance Sheet Net debt 183.5 189.8 36.8 29.2 88.2 91.2 31.12.2018 31.12.2019 31.12.2018 31.12.2019 Total As
Slide 24: Cash Flow Statement
Cash Flow Statement High investments in current and future growth in CHF million 2018 2019 % YoY Operating cash flow shows a slight decrease Net profit 17.0 20.0 17.6% despite higher net profit, mainly due to the Depreciation and amortization 5.6 6.1 increase in net working capital and higher taxes
Slide 25: Free Cash Flow Development
Free Cash Flow Development In CHF million -2.3 +6.1 -13.1 +9.3 23.0 20.9 -17.9 +20.0 Free cash flow: CHF 10.7 mn (2018: CHF -90.8 mn). Dividend payment: CHF 17.9 mn. Increase in financial liabilities Slight decrease in operating cash flow: 2019 CHF 23.8 mn CHF 9.3 mn. (2018: CHF 24.6 mn). Since the
Slide 26: Outlook
Outlook Martin Schaufelberger, CEO Photo: med. dent. Zita Baumeler Savary – Dentist Altstätten, Switzerland
Slide 27: Key Topics on the Agenda
Key Topics on the Agenda Commitment to profitable sustainable growth Strategy Project Solution Provider Focus on dental professionals Utilize synergies Turn regulatory requirements into competitive advantage Finish Merger Implement new Organization; Sales and MarCom from NAM and EU+ROW Review En
Slide 28: Outlook and calendar 2020
Outlook and calendar 2020 Commitment to profitable and sustainable growth COLTENE expects to grow After additional cost due to the Coronavirus disease 2020: in slightly more than the market transaction & integration general we expect less visits to projects, we expect to achieve dental offices in ar
Slide 29: Annex
” COLTENE
Slide 30: 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 31: Group Management
Group Management Functions and Production Sites Board of Directors COLTENE Holding AG Group Management Martin Schaufelberger CEO Operations R&D / Innovation Product Sales / Marketing Sales / Marketing CFO Management / Communication Communication Group Marketing North America Europe/ROW SciCan Ltd. S
Slide 32: Key Figures
Key Figures Five year overview in CHF million in CHF million Net Sales EBIT EBIT Margin in % 280.0 273.8 16.0% 36.0 15.2% 260.0 34.0 14.5% 32.0 240.0 30.0 13.2% 13.4% 14.0% 220.0 204.0 28.0 26.0 12.4% 200.0 24.0 11.7% 12.0% 180.0 168.0 22.0 160.7 154.5 20.0 160.0 18.0 20.4 23.3 25.5 25.4 32.0 36.6 1
Slide 33: Share Performance
Share Performance Volatile financial market environment Share price Earnings per share/dividend COLTENE SPI Earnings per Share Dividend 130.00 5.00 4.52 120.00 4.1 110.00 4.00 3.61 3.35 3.16 100.00 3 3 3 3.00 2.7 90.00 2.2 80.00 2.00 70.00 60.00 1.00 50.00 0.00 40.00 2015 2016 2017 2018 2019* * Boar
Slide 34: Thank You for Your Interest
The TheSolution SolutionProvider Provider Thank You for Your Interest COLTENE Holding AG Feldwiesenstrasse 20 9450 Altstätten +41 71 757 53 80 info@coltene.com