Coltene Holding Ag · SIX:CLTN
Coltene — H1 2020 Earnings Presentation
28 slides from Coltene's earnings presentation, Aug 7, 2020
Slide 1: Half-Year Results 2020 COLTENE Group
Half-Year Results 2020 COLTENE Group – Media and Financial Analysts Conference Call Martin Schaufelberger, CEO Gerhard Mahrle, CFO August 7, 2020
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 Media and financial analysts conference call H1 2020 Highlights H1 2020 Martin Schaufelberger, CEO Financials H1 2020 Gerhard Mahrle, CFO Outlook Martin Schaufelberger, CEO Q&A All Half-Year Results 2020 3
Slide 4: Highlights H1 2020
Highlights H1 2020 Martin Schaufelberger, CEO Photo: med. dent. Zita Baumeler Savary – Dentist Altstätten, Switzerland
Slide 5: H1 2020 Highlights
H1 2020 Highlights Response to the COVID-19 pandemic with a comprehensive set of measures Financials Net sales CHF 103.9 mn; -19.2% in local currencies compared to H1 2019, -23.3% in reporting currency Swiss francs The strong Swiss franc appreciated against all major currencies and reduced sales b
Slide 6: Infection Control
Infection Control How COLTENE has responded to the COVID-19 pandemic Employees Cost Reductions Product Portfolio Marketing & Sales Integration • Temporary positions • Personnel expenses were • Biosonic Wipes integrated • Marketing expenses were • Manufacturing of Kenda eliminated, but all regular 14
Slide 7: New Product Group Structure
New Product Group Structure Strong combined portfolio 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
Slide 8: Net Sales by Product Groups
Net Sales by Product Groups Products in the area Infection Control are in great demand Net sales H1 2020 by product groups Net sales H1 2020 by product groups (in CHF 1’000) (shares) H1 2019 H1 2020 60’000 55’900 34.9% 39.4% 50’000 43’091 40’890 40’000 36’400 36’283 30’000 26’715 25.7% 20’000 10’000
Slide 9: Net Sales by Region
Net Sales by Region North America remains largest market Net sales H1 2020 by regions (in CHF 1’000) Net sales H1 2020 by regions (shares) H1 2019 H1 2020 70’000 61’911 60’000 13.5% 48’972 49’731 50’000 5.1% 33.5% 40’000 34’773 30’000 20’000 16’315 47.9% 14’054 10’000 8’193 5’330 0 EMEA North Americ
Slide 10: Financials H1 2020
Financials H1 2020 Gerhard Mahrle, CFO Photo: Dr. Benjamin Ezeh - Manager R&D Endodontics Coltène/Whaledent AG, Altstätten, Switzerland
Slide 11: Financial Summary H1 2020
Financial Summary H1 2020 Strong start into 2020 slowed down by COVID-19 Sales Strong sales in Q1 (+4.5% above PY) followed by a sharp drop driven by government-mandated lock down. H1 2020 sales at CHF 103.9 mn (H1 2019: CHF 135.4 mn; -23.3% below PY). Net sales in local currency down by 19.2% Str
Slide 12: Income Statement
Income Statement COVID-19 hit on the income statement – decline of EBIT margin from 9.4% to 2.5% in CHF mn H1 2020 % H1 2019 % % YoY • Net Sales decline mainly driven by Covid- 19 impact and strong Swiss franc (negative Net Sales 103.9 100.0 135.4 100.0 -23.3% currency impact on sales CHF 5.5 mn) Ma
Slide 13: EBIT Development
EBIT Development In CHF million EBIT Bridge YTD PY to ACT - in CHF mn 15.0 10.0 5.0 12.8 +0.1 +0.3 2.6 0.0 +5.9 Net Sales 3rd decline mainly -5.0 -31.5 Favorable development of OPEX +7.0 driven by Covid-19 impact and -10.0 of 5.9 mn driven by reduction of negative currency impacts costs for advertis
Slide 14: Net Profit
Net Profit In CHF million Tax rate increase: Effective tax rate increased from 26.8% to 80.9%, driven Overall decrease in financial expenses: by prudent recognition of deferred tax assets on losses FX losses in various countries partially incurred compensated by FX gains in Canada Expected
Slide 15: Balance Sheet
Balance Sheet Ensuring adequate liquidity and a healthy balance sheet in CHF million 31.12.19 30.06.20 % YoY • Increased cash level by drawing credit Cash & cash equivalents 23.0 36.2 57.5% facilities to ensure adequate liquidity at all Receivables 56.2 37.3 -33.5% times Inventory 59.2 64.5 9.0% • G
Slide 16: Equity
Equity Decline of equity ratio mainly through dividend distribution and currency effects In CHF million Equity Ratio Total assets slightly increased despite slow-down of Dec 2019: business 48.0% H1 2020: 41.1% Equity ratio: 41.1% (Dec 2019: 48.0%) Net debt: CHF 42.9 mn (Dec 2019: CHF 36.8 mn)
Slide 17: Cash Flow Statement
Cash Flow Statement Stable operating cash flow and positive free cash flow in CHF million H1 2019 H1 2020 % YoY • Stable operating cash flow despite slow- Net profit 7.9 0.3 -96.3% down of business. This was mainly due to Depreciation and amortization 3.2 3.0 decrease in working capital and lower ta
Slide 18: Outlook
Outlook Martin Schaufelberger, CEO
Slide 19: What can we expect in 2020?
What can we expect in 2020? Impact by and recovery from COVID-19 Impact Q1 strong and positive start into the current year Q2 high impact from government’s closing of dental practices in many key countries; upside from Infection Control Q3 hope to return gradually to normality Q4 new normal is exp
Slide 20: 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 21: Q&A
Infection Control A Q&A “ COLTENE
Slide 22: Annex
” COLTENE
Slide 23: 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 24: 5-Year Financial Overview
5-Year Financial Overview Key Figures in H1 (2016 - 2017: IFRS / 2018 - 2020: Swiss GAAP FER) in CHF million Net Sales in CHF million EBIT EBIT Margin in % 140.0 14.0 14.0% 130.0 12.0 12.0% 120.0 12.3% 12.0% 11.9% 110.0 10.0 10.0% 100.0 8.0 9.4% 8.0% 90.0 80.0 6.0 6.0% 70.0 4.0 4.0% 2.5% 60.0 50.0 2
Slide 25: The COLTENE Production and R&D Locations
The 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 Half-Year Results 2020 25
Slide 26: 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 27: Dental Industry
Dental Industry Mega trends Globalization and e-commerce Increasing requirements in distribution regarding quality management and regulatory affairs Negative trend in volume due to Digitalization in better oral health in Consolidation • the dental processes developed countries in manufacturing • our
Slide 28: Thank You!
Thank You! COLTENE Holding AG Martin Schaufelberger, CEO Gerhard Mahrle, CFO Feldwiesenstrasse 20 9450 Altstätten +41 71 757 53 80 investor@coltene.com