Straumann Holding AG · SIX:STMN
Straumann — Berenberg European Conference 2011
28 slides from Straumann's conference presentation, November 2011
Slide 1: Being the partner of choice
Being the partner of choice Beat Spalinger, CEO & President presenting at the 2011 Berenberg European conference
Slide 2: Disclaimer
Disclaimer This presentation contains certain “forward-looking statements”, which can be identified by use of terminology such as “expect”, “expectation”, “intend”, “continue”, “achieve”, “maintain”, “improve”, “foresee”, “anticipate”, “product introductions”, “outlook”, “forecast”, or similar wordi
Slide 3: Straumann is well positioned for future growth
Straumann is well positioned for future growth
Slide 4: Straumann serves three dental specialty segments...
Straumann serves three dental specialty segments... CADCAM restorations CADCAM on natural teeth restorations on implants Regeneratives Dental implants & abutments STRAUMANN November 2011 © by Straumann. All rights reserved. 4
Slide 5: ...and offers various substitution technologies
...and offers various substitution technologies Implant dentistry Regenerative dentistry CADCAM dentistry Bridges Collagen membranes Metals-based crowns Traditional manufacture Full-anatomic Implant-borne solutions Hydrogel membranes CADCAM workflow ceramic crowns Improved technologies, Efficient &
Slide 6: A leader in markets worth >CHF 5bn
A leader in markets worth >CHF 5bn Implant dentistry1 CADCAM dentistry Regenerative dentistry Total market size CHF 3.4bn Total market size CHF 1.7bn Total market size CHF 0.5bn 19% <5% <5% Main competitors: Main competitors: Main competitors: Nobel Biocare, Dentsply/Astra 3M ESPE, Sirona, Nobel Bio
Slide 7: The dental implant market can be divided into three segments
The dental implant market can be divided into three segments Dental implant Characteristics Portfolio Product Service breath quality » Premium price » Top 6 brands » Innovation leaders » Clinically-proven products » Broad portfolio incl. CADCAM » Comprehensive services » Value price » Established, r
Slide 8: Straumann is a premium player who addresses 2/3 of the implant market
Straumann is a premium player who addresses 2/3 of the implant market ROXOLID® More confidence with small diameter implants; may 400 +15% avoid bone augmentation SLActive® Reduced healing time; increased predictability +30% SLA Proven long-term reliability; 10-year RCT data1 300 100 Average Unit Pri
Slide 9: The drivers of our industry
The drivers of our industry Demographics Patient awareness on esthetics & quality of life Increasing acceptance Dentist training & experience STRAUMANN November 2011 © by Straumann. All rights reserved. 9
Slide 10: ITI membership has doubled in 5 years
ITI membership has doubled in 5 years World‘s largest implant dentistry network Paternership established in 1980 More than 10 000 Fellows and Members in 95 countries 27 country sections Straumann is exclusive implant manufacturing 10'000 partner 5'000 Education Commercial Network Clinical activities
Slide 11: Implant markets in large developed countries are far from being mature
Implant markets in large developed countries are far from being mature Implants placed per 10 000 population per year ADULT U.S. POPULATION 200 PEOPLE AFFECTED BY TOOTH LOSS (45-55%) ANNUAL TOOTH LOSS CASES 100 SEEKING TREATMENT (5-10%) Which means that only ~1 million U.S. patients are treated annu
Slide 12: Additional growth through further Bone level share gains
Additional growth through further Bone level share gains Implant dentistry* 2010 100% = CHF 3.4 bn First version Rollout launched 2008 (Japan 1974 Q2 2011) Soft tissue level Bone level The most successful single system Most popular implant type globally (70% Microgap vertically offset from bone, res
Slide 13: Ultimate range of implants and materials
Ultimate range of implants and materials Resin Nano Ceramic – ‘Ultimate Restorative’ for CADCAM crowns, inlays, onlays and veneers Brilliant esthetics, great durability1 and optimum handling Straumann first to launch Standard Plus NNC, a new Tissue level implant for thin spaces and narrow bone ridge
Slide 14: Digitalization is changing dentistry…
Digitalization is changing dentistry… …for patients, restorative dentists …for dental technicians …and for implant surgeons STRAUMANN November 2011 © by Straumann. All rights reserved. 14
Slide 15: …and Straumann has all ingredients to become the partner of choice in digital dentistry
…and Straumann has all ingredients to become the partner of choice in digital dentistry Scanning Designing Element Milling To capture patient specific situation With Open Standard Software in Centralized Milling Centre Restoring dentist Dental technician Straumann milling centres STRAUMANN November
Slide 16: A portfolio that addresses the full regenerative market…
A portfolio that addresses the full regenerative market… Total market size CHF 0.5bn Bone grafts Membrane Tissue Regeneration Tissue Regeneration Bone Graft (Synthetic) 2003 2005 2009 2010 Allograft (human derived bone substitute) Membrane …and offers great synergy potential STRAUMANN November 2011
Slide 17: Our performance & market trends
Our performance & market trends
Slide 18: What is happening in the market?
What is happening in the market? Modern tooth replacement market growing in the low- to mid-single digit Double-digit growth in emerging markets and upper mid-single-digit growth in North America continues Europe, the largest regional market, struggled to keep momentum due to economic uncertainty, t
Slide 19: Straumann sustained its above-market growth in Q3
Straumann sustained its above-market growth in Q3 25% 20% 15% 10% 5% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2009 2010 2011 -5% -10% -15% Straumann organic growth l.c. Market for tooth replacement & restoration (leading implant companies1) 1 Market share weighted growth rates (in l.c.)
Slide 20: Growth across all regions underpin our leading position; economic uncertainty hinders recovery in Europe
Growth across all regions underpin our leading position; economic uncertainty hinders recovery in Europe 41% 17% 10% #2 1% market share Europe 16% N. America 6% 31% 25% APAC ROW Straumann 9M growth in l.c. Contribution to Group growth STRAUMANN November 2011 © by Straumann. All rights reserved. 20
Slide 21: Outlook
straumann ANN Outlook COMMITTED TO SIMPLY DOING MORE FOR DENTAL PROFESSIONALS
Slide 22: Further investment in people to sustain growth
Further investment in people to sustain growth Marketing & Sales team strengthened to drive growth in implants Hiring rate reduced; 52 new jobs created in H1 (145 in LTM), bringing global workforce to 2413 STRAUMANN November 2011 © by Straumann. All rights reserved. 22
Slide 23: Outlook 2011 (summary)
Outlook 2011 (summary) Barring unforeseen circumstances Straumann expects the market to grow in the low-to-mid-single digit range in 2011 Group is convinced that it can again deliver above-market performance Excluding the impairment charge related to Japan1, Straumann’s full-year operating margin is
Slide 24: Question & answer session
Z straumann Question & answer session COMMITTED TO SIMPLY DOING MORE FOR DENTAL PROFESSIONALS
Slide 25: Investor calendar
Investor calendar 29 November Berenberg European Conference London (UK) 5 January Oddo Midcap Forum Lyon (F) 13 January Helvea Swiss Equities Conference Bad Ragaz (CH) 14 January Start Quiet Period 22 February Full-year 2011 Results Conference Basel (CH) 04 April Annual General Meeting 2012 Basel (C
Slide 26: Your investor relations contacts
Your investor relations contacts Fabian Hildbrand Phone +41 (0)61 965 13 27 Mobile +41 (0)79 392 80 32 Email fabian.hildbrand@straumann.com Rahel Steiner Phone +41 (0)61 965 16 78 Email rahel.steiner@straumann.com STRAUMANN November 2011 © by Straumann. All rights reserved. 26
Slide 27: Strong FX headwind this year; neutral effect exp. in 2012
Strong FX headwind this year; neutral effect exp. in 2012 EURCHF 1.5 Average exchange rates (rounded) 1.4 FY 2009 FY 2010 Q1 2011 Q2 2011 Q3 2011 YTD EURCHF 1.51 1.38 1.28 1.25 1.16 1.23 1.3 USDCHF 1.08 1.04 0.93 0.87 0.83 0.88 JPYCHF 1.16 1.19 1.14 1.07 1.06 1.10 1.2 1.1 Net revenue breakdown Cost
Slide 28: Portfolio manager summary
Portfolio manager summary NET REVENUE Market Capitalization USD 2.5bn Return on equity 20% Return on capital employed 47% Equity ratio 82%; debt-free; cash & cash equivalents of CHF 350m Free cash flow margin 21% 5Y SHARE PRICE PERFORMANCE Employees ~2 400 160 140 Payout ratio ~33% of net income 120