Straumann Holding AG · SIX:STMN

Straumann — Goldman Sachs European Medtech Conference 2013

24 slides from Straumann's conference presentation, Sep 4, 2013

  1. Slide 1: Building for the future

    Building for the future Marco Gadola, CEO presenting at the Goldman Sachs European Medtech Conference London, 4 September 2013

  2. Slide 2: Disclaimer

    Disclaimer This presentation contains certain “forward-looking statements”, which can be identified by the use of terminology such as “will”, “guidance”, “would”, “prevailing”, “still be able to”, “should”, “confidence in achieving”, “turnaround”, “future”, “anticipated”, “continue”, “mid and long t

  3. Slide 3: H1 key figures

    : H1 key figures NORTH AMERICA: KEY REVENUE GROSS MARGIN PERFORMANCE1 CHF 355m (-0.9% ) +6% (in H1) 1 78% (+80bps) Slightly down on prior year and +11% (in Q2); Margin expansion through despite acceleration in Q2 Europe and Japan remain difficult efficiency gains in manufacturing OPERATING INCOME NE

  4. Slide 4: What is happening in the markets?

    What is happening in the markets? Growth potential in North America intact  Momentum picks up in Q2  After downward trend in 2012, dental practice activity indicators show improvements in tooth replacement procedures Weak economy in Europe  Raising healthcare costs and co-pay levels reduce dispos

  5. Slide 5: What is happening in the markets?

    What is happening in the markets? Fundamental shifts  To lower-cost alternatives  Dental labs under pressure to find optimal levels of in-house production, outsourcing, efficiency and quality  Role of General Practitioners (GPs) increasing in implant dentistry New technologies Latin America  Dig

  6. Slide 6: Restructuring initiatives have not impaired our ability to drive sales

    Restructuring initiatives have not impaired our ability to drive sales 1 1 Market share weighted growth rates (l.c.) of Biomet/3i, Dentsply, Nobel Biocare, Straumann and Zimmer; collectively  Straumann representing 2/3 of the dental implant market. 6 Source: Published company data, 10-K and managem

  7. Slide 7: Margins improved on all levels

    Margins improved on all levels 1 in CHF million H1 2012 H1 2013 Change excl. FX adjusted 2 vs. adjusted exceptionals Net Revenue 361.7 361.0 354.8 (1.7%) 278.4 277.4 276.2 Gross profit Gross profit margin 77.0% 76.9% 77.8% 71.0 70.6 74.5 80.0 EBITDA EBITDA margin 19.6% 19.6% 21.0% 22.5% (2.9%) 54.6

  8. Slide 8: Building for the future

    Z straumann Building for the future COMMITTED TO SIMPLY DOING MORE FOR DENTAL PROFESSIONALS

  9. Slide 9: Our goal of better profitability…

    Our goal of better profitability… Underlying EBIT margin >25% 25% >20% 20% 15-20% 15%-20% 15% 10-15% 10% Straumann Dental benchmark1 2008 2012 E2013 Mid term  Straumann 1 Peers comprise Nobel Biocare, Dentsply, Patterson, Henry Schein, Osstem, and Sirona. 9

  10. Slide 10: ... and how we will achieve it

    ... and how we will achieve it Prior to 2012 Moving forward  Cost reduction measures implemented in 2012 and 2013 Lean, high  Cost discipline inherent to new  Organization based on ‘bullish’ expectations, which performance Straumann culture have not materialized organization  New organizational

  11. Slide 11: Organization adapted to market reality

    Lean, high Organization adapted to market reality performance organization ≈140 2575 2517 2452 2431 ≈200 2361 2243 2230 FY 2010 FY 2011 Q3 2012 FY 2012 Q1 2013 Today1 FY 2013 Resizing Resizing 1 At the end of Q2, Straumann had a global workforce of 2313 including redundancies in subsidiaries where e

  12. Slide 12: ... and how we will achieve it

    ... and how we will achieve it Prior to 2012 Moving forward  Cost reduction measures implemented in 2012 and 2013 Lean, high  Cost discipline inherent to new  Organization based on ‘bullish’ expectations, which performance Straumann culture have not materialized organization  New organizational

  13. Slide 13: GPs are increasingly important and have different preferences and needs

    Target GPs are increasingly important and have unexploited growth markets different preferences and needs 15 900 60 600 29 700 GPs place 2008 implants 87 400 2014 GPs restore but don’t place Implant specialists implants GPs placing implants GPs restoring implants  Straumann Source: iData Research,

  14. Slide 14: Increase presence in fast-growing under-penetrated markets

    Target Increase presence in fast-growing under- unexploited growth markets penetrated markets 1500 China 2010 China 2020 India 2020 Population in millions 1200 India 2010 900 US 2020 600 Brazil 2020 Brazil 2010 300 Russia 2010 Germany Russia 2020 2010 Germany US 2010 0 2020 0 20 40 60 Households (in

  15. Slide 15: Tapping exciting growth opportunities...

    Target Tapping exciting growth opportunities... unexploited growth markets High-tech Ceramic implants Smaller, less Fixed invasive implants immediate edentulous solutions Implants for narrow spaces Esthetic, fast implant solutions with single crown / small bridge Simple edentulous solutions Standard

  16. Slide 16: ...with solutions to suit:

    ...with solutions to suit: Address changed market dynamics Surgeons customer segments GPs Premium affordability Value Spain local market conditions  Straumann 16

  17. Slide 17: Outlook & key take-aways

    Z straumann Outlook & key take-aways COMMITTED TO SIMPLY DOING MORE FOR DENTAL PROFESSIONALS

  18. Slide 18: Outlook 2013 and beyond

    Outlook 2013 and beyond Barring unforeseen circumstances  While positive developments are expected to continue in North America and other underpenetrated markets, Straumann expects the effects of the weak economy and consumer sentiment to continue in Europe, constraining overall revenue development

  19. Slide 19: Your IR contacts

    Your IR contacts Fabian Hildbrand Corporate Investor Relations Phone +41 (0)61 965 13 27 Mobile +41 (0)79 392 80 32 Email fabian.hildbrand@straumann.com Rahel Schafroth Investor Relations Coordinator Phone +41 (0)61 965 16 78 Email rahel.schafroth@straumann.com  Straumann 19

  20. Slide 20: Slight currency headwind expected for the full year

    Slight currency headwind expected for the full year Revenue breakdown 2012 Average exchange rates (rounded) CHF 11% FY 2012 H1 2013 EURCHF 1.21 1.23 Other EUR 21% 41% USDCHF 0.93 0.93 JPYCHF 1.17 0.99 Straumann’s major exchange rates since 2012 (indexed to 100) USD/CAD/AUD 27% 110 Cost breakdown 201

  21. Slide 21: A global market yet to unlock – tremendous opportunities especially in BRIC countries

    A global market yet to unlock – tremendous opportunities especially in BRIC countries Dental implants per 10 000 Global dental implant population in 20111 market by region1  82 82 RoW 200  Top3 193 Asia/ Pacific Europe 100 North America 0 KR IT ES CH DE SE BR FR US JP UK CN Today, in most countri

  22. Slide 22: US example: implant penetration rising to 25-30%

    US example: implant penetration rising to 25-30% Adult population People affected by tooth loss: Oral hygiene / dental awareness / 45-55% nutrition / aging population / education Annual tooth loss cases seeking treatment: ‘Pain Level’ / economics / access to 5-10% treatment / reimbursement / awarene

  23. Slide 23: North America

    Strong growth in North America; Europe flat Revenue change (organic)  Revenue flat in Q2 (l.c. and organic)  All countries improve in Q2 and Europe 0.2% benefit from shift in selling days 56% after disappointing start to the year -5.3% -5.6% -7.0% -7.7% (H1 -4%)  France, UK and Switzerland return

  24. Slide 24: Asia Pacific

    Sequential improvements in APAC and RoW Revenue change organic  Q2 in line with prior year (l.c.) Asia Pacific 4.2%  Japan: implant market still to 0.9% recover from negative public -2.4% 56% -0.9% -4.4% perception  Solid performances in China and 14% Australia Q2 Q3 Q4 Q1 Q2 2012 2012 2012 2013

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