Slide 1: 2017 Full-year results
14.02.2018 2017 Full-year results Conference presentation for investors, analysts & media Basel, 15 February 2018 Disclaimer This presentation contains certain forward-looking statements that reflect the current views of management. Such statements are subject to known and unknown risks, uncertainti
Slide 2: 2017 highlights
14.02.2018 2017 highlights Marco Gadola, CEO Growth story continues REVENUE REVENUE GROWTH EBIT MARGIN2 CHF 1112m +16% organic1 25.7% 2016: CHF 918m Driven by double-digit growth across all Q4: +18% organic; +28% in CHF Operational leverage drives EBIT margin regions and businesses. improvement. Und
Slide 3: Stream of launches in 2017; intense M&A activity
14.02.2018 Stream of launches in 2107 5 Intense M&A activity to expand scope, distribution and technology platform Partner Stake Rationale Medentika 51% Further penetrate the non-premium implant & (consolidated) abutment segment Dental Wings 100% Accelerate development of digital platforms and equip
Slide 4: Digital powers acceleration in Q4
14.02.2018 Digital powers acceleration in Q4 Organic growth year-on-year (in %) EMEA North America 44% of Group FY revenue APAC 28% of Group FY revenue 15.0 17% of Group FY revenue 22.7 11.3 22.1 23.6 18.7 Q4 FY Straumann Group Q4 FY Q4 FY 18.0 LATAM 15.7 11% of Group FY revenue 14.6 11.6 Q4 FY 7 Q4
Slide 5: Profitable growth; Growth drivers 2013-18
14.02.2018 Profitable growth1 5-year organic revenue growth 5-year operating profit and margin 5-year net profit and margin Average +9.1% +7.5 margin points CAGR +22% 300 25.7% 30% 25. 15.7% 300 21.3% 24.8% 20.4% 13.1% 23.3% 250 18.4% 18.1% 250 20. 20.9% 15.9% 200 18.2% 200 20% 9.1% 15. 150 150 6.4%
Slide 6: Growing share in an attractive market
14.02.2018 Growing share in an attractive market Global dentistry market Global market for implant worth CHF 24bn in 20171 dentistry in 20172 worth CHF 3.7bn Dental specialties General (implants/endo/ortho) Others (400+) dentistry 22% 24% Osstem 6% 7% Zimmer 19% Danaher Biomet Prosthetics 8% Henry 1
Slide 7: Double-digit expansion in all regions
14.02.2018 Double-digit expansion in all regions Revenue development (CHFm, rounded) Regional share of 21.2% organic growth in CHF 15.7% organic 10% LATAM 15.5 1’112.1 36.4 49.2 24% 49.7 APAC 32.5 961.2 917.5 11.2 33% North Change in organic growth America 11.3% 18.7% 23.6% 14.6% 33% EMEA Revenues F
Slide 8: Strong Asia Pacific – solid pace in Latin America
14.02.2018 Strong Asia Pacific – solid pace in Latin America APAC Revenue change (organic) Double-digit increases across all 25.7% 56% 27.9% subsidiaries 20.5% 22.1% 19.4% Performance fueled by China and 17.0% 17% of Group Japan We obtained key approvals and launched the Straumann premium bran
Slide 9: Key financials at a glance
14.02.2018 Key financials at a glance in CHF m (rounded) FY 2017 FY 2016 Δ % / bps Reported Exceptionals excl. Exceptionals Reported Exceptionals excl. excl. Exceptionals Exceptionals Revenue 1112.1 917.5 Organic growth in % 15.7% 13.1% Gross profit 840.5 (2.0) 842.4 718.5 17% margin 75.6% 75.8% 78.
Slide 10: Underlying profitability improves; EBITDA margin expands
14.02.2018 Underlying profitability improves; EBITDA margin expands 80bps In % +100bps +80bps -0.2 0.0 0.2 -2.8 2.9 0.7 29.3 29.1 28.3 28.5 EBITDA FX effect Adjusted Change in Distribution Adminstration Other income Underlying Business EBITDA margin 2016 EBITDA gross profit EBITDA combination margin
Slide 11: EBIT margin rises 70bps; underlying net profit surges 27%
14.02.2018 EBIT margin rises 70bps despite higher amortization charges In % +70bps +90bps 0.3 -0.4 0.8 -0.2 0.2 25.7 25.5 25.0 24.8 EBIT margin FX effect Adjusted EBITDA Depreciation Amortization Underlying Business EBIT margin 2016 EBIT margin EBIT margin combination 2017 2016 2017 exceptional 21 U
Slide 12: Free cash flow; Strategy in action moving forward
14.02.2018 Free-cash-flow reflects investments in production, geographic and portfolio expansion In CHF m 64.3 -26.5 Free cash Free cash flow margin -32.0 flow margin 15.1% 13.0% Increased investment in 0.1 manufacturing capacity Villeret extension 144.7 138.7 Free cash flow 2016 EBITDA improvem
Slide 13: Our strategic priorities
14.02.2018 Our strategic priorities Drive our high performance STMN Group culture and organization Target unexploited growth markets & segments Expand scope to become a Total Solution Provider for esthetic dentistry 25 Increased diversity as global team grows 29% due to geographic and business expan
Slide 14: Driving our cultural journey; closer to customers
14.02.2018 Driving our cultural journey to the next level • Cultural Journey now global – positively received in China and LATAM • 88% of staff actively support our Cultural Journey; 72% observe positive changes in our culture1 • High-performance culture demonstrated in outperformance and profitabil
Slide 15: Large potential in premium and non-premium implants
14.02.2018 Large potential in premium and non-premium implants Share of market value Market volumes Market value Premium ~55% >20 million CHF 3.7bn Non- implant fixtures premium ~45% Premium implants Non-premium implants Straumann Group share 29 Implant dentistry market segment includes implant fixt
Slide 16: Neodent – a driving force; bringing premium and non-premium together
14.02.2018 Neodent – a driving force A top-5 producer of dental implants worldwide More than 20 years’ experience Excellent survival rates1 More than 200 scientific publications Full solution including Neodent Digital Innovative Grand Morse implant system Excellent alternative to leading competitor
Slide 17: Digital Business Unit – a global powerhouse
14.02.2018 Digital Business Unit – a global powerhouse + Regions Partner companies 550+ employees Research & Portfolio Development management Production Training/Education 33 Digital on the road Dental Dental Penetration levels practices laboratories Intra-oral scanners Desktop scanners US 15-20% >6
Slide 18: Straumann Group offers complete digital suite
14.02.2018 Straumann Group offers complete digital suite Feb March 2016 CARES® Intra-oral 2016 TRIOS® scanner cart scanner April suite by 3Shape 2017 Sept IDS 2017 2017 August 2017 CARES® Visual chairside software Lab-mill CARES® Intra-oral portable 3D printers Chairside mill Powder-free handpiece b
Slide 19: Growth ambitions for our clear-aligner business
14.02.2018 Growth ambitions for our clear-aligner business Leverage Straumann sales organization Increase geographic reach Increase patient adoption Broaden indications Expand addressable market 37 Next steps for ClearCorrect NAM Europe Exploit salesforce Pilots running in 4 countries synergies betw
Slide 20: Outlook 2018
14.02.2018 Outlook 2018 Plenty of growth potential in market segments collectively worth ~CHF 11 bn CHF m 4'000 2'000 - I M AG I N G & P L AN N I N G B I O M AT E R I AL S I M P L AN T & S T AN D A R D C AD / C AM E Q U I P M E N T C AD / C AM P R O S T H E T I C S C L E AR AL I G N E R S AB U T M E
Slide 21: Our 2018 guidance; Questions & answers
14.02.2018 Our 2018 guidance Barring unforeseen circumstances Market growth Global implant market to grow at approx. 4% Our revenue Confident to outperform and achieve organic growth revenue growth in the low double-digit range Further improvement in EBITDA margin; Profitability EBIT margin stable 4
Slide 22: Annual Report 2017 – now online; Calendar of upcoming events
14.02.2018 Annual Report 2017 – now online 43 Calendar of upcoming events 2018 Event Location 15 February Full-year 2017 results conference Straumann Group Headquarters, Basel 26 February Investor meetings London 06 March Investor meetings Toronto 07 March Investor meetings Boston 08 March Investor
Slide 23: Growth strategy pays off
14.02.2018 Growth strategy pays off in CHF m 2013 2014 2015 2016 2017 5‐year average Revenue 679.9 710.3 798.6 917.5 1112.1 Organic revenue growth in % 1.2 6.4 9.1 13.1 15.7 9.1 Acquisiton / Divesture effect in % ‐0.8 0.0 9.5 0.8 4.1 2.7 Change in l.c.% 0.4 6.4 18.6 13.9 19.8 11.8 FX effect in % ‐1.
Slide 24: Thank you
14.02.2018 Thank you Thank you investor.relations@straumann.com 24