Straumann Holding Ag · SIX:STMN
Straumann — Investor Day (May 2012)
16 slides from Straumann's investor day presentation, May 16, 2012
Slide 1: Unlocking the full potential of emerging markets
Unlocking the full potential of emerging markets Beat Spalinger, President & CEO Capital Markets Day Amsterdam, 16 May 2012 We seek to outperform by focusing on key levers Market growth Demographics Dental awareness & esthetics Access to treatment Long-term cost efficiency Simplify procedures Soluti
Slide 2: Emerging markets offer superior growth opportunities
Emerging markets offer superior growth opportunities. STRAUMANN CMD 2012 Copyright Straumann. All rights reserved. 4 Emerging markets have gained share rapidly 2004 2011 2015E 19% 28% 35% Luxury 65% watches 72% 81% 16% 48% 42% Automotive 52% 58% 84% 10-15% 20-25% 35% Dental 65% implants 75-80% 85-90
Slide 3: All BRIC countries will become top healthcare markets by 2020
All BRIC countries will become top 12 healthcare markets by 2020 Anticipated growth in healthcare costs 2000 Rank 2010 Rank 2020 Rank between 2010-20 US US US 12% Japan Japan China 10% Germany Germany Japan 8% France France Germany 6% Italy China Brazil 4% UK UK France Average Canada Italy UK 2% Chi
Slide 4: The dental implant market is worth CHF 3.5bn
The dental implant market is worth CHF 3.5bn and is concentrated mainly in developed countries… Geographic split by value… …and by volume LATAM / LATAM / ROW ROW 5-10% 15% APAC 15-20% Europe Europe 40-45% 45-50% APAC 20-25% North America North 25-30% America 20-25% STRAUMANN CMD 2012 Source: MRG 201
Slide 5: Leadership through organic growth, but not all markets are premium
...has achieved leadership through organic growth 25% 20% 15% 10% 5% 0% -5% -10% -15% Straumann organic growth Leading dental implant companies Note: 2011 Market share data for dental implant market incl. abutments and STRAUMANN CMD 2012 Copyright Straumann. All rights reserved. instruments. Source:
Slide 6: Dilemma and Vision 2020 assumptions for emerging markets
Dilemma: Straumann is a leading international brand in Brazil and has grown 8% points faster1 than Neodent, the local value segment leader. But Straumann can only address 15-20% of the overall Brazilian market with its current offering. STRAUMANN CMD 2012 1 Revenue CAGR 2008-2011 in local currencies
Slide 7: Neodent – a significant step to tapping into emerging markets
Neodent – a significant step to tapping into emerging markets. Why Brazil? STRAUMANN CMD 2012 Copyright Straumann. All rights reserved. 15 Brazil has an attractive growth profile 1 Bubble size indicates implant market size in value in 2010 and e2020 (Source MRG). STRAUMANN CMD 2012 Copyright Strauma
Slide 8: Size and growth make Brazil an attractive market
Size and growth make Brazil an attractive market Total population 203 million in 2011 Population highly concerned about esthetics and dental care More than 13 million are aged 65 or older; more than 30 million are fully edentulous; 120 million partially edentulous 11% of world’s dentists (approx. 23
Slide 9: The new Brazilian middle class and growing dentist population
The new Brazilian middle class represents an attractive patient pool Social class development in Brazil 60 Brazilian middle Percentage of population 50 class has doubled 40 since 2000 30 One in every two Brazilians belongs to 20 the middle class today 10 0 Class C Class AB Class D Class E Source
Slide 10: Brazilian implant market to grow more than 10%; Why Neodent?
We believe that the value of the Brazilian implant market will grow by more than 10% over the coming years. STRAUMANN CMD 2012 Copyright Straumann. All rights reserved. 21 Why Neodent? STRAUMANN CMD 2012 Copyright Straumann. All rights reserved. 22 10
Slide 11: Neodent is the undisputed leader in Brazil
Neodent is the undisputed leader in Brazil Brazilian dental implant market 2011 (Total value: approx. CHF 250m) Other Nobel internationals Biocare Biomet 3i Neodent Straumann Other locals Biomet 3i (local) Conexao SIN STRAUMANN CMD 2012 Copyright Straumann. All rights reserved. Source: Market share
Slide 12: Neodent key figures
Neodent key figures Founded Net revenue 20111 CAGR 2009-11 1993 BRL 167m 21% Employees Profitability / margins Ownership >40% adj. EBITDA 700+ Privately held >25% net profit STRAUMANN CMD 2012 1 Group’s total revenues (all segments) Copyright Straumann. All rights reserved. 25 Our aim: Clear market
Slide 13: How a full combination would look; Transaction creates value
How a full combination would look Straumann Neodent Pro forma1 RoW 5% <5% ROW 2% LATAM APAC 13% 15% APAC 13% North Europe Europe America 58% 52% 22% North LATAM America 95% 20% Full combination will position Straumann well to participate in future growth markets STRAUMANN CMD 2012 100% combination o
Slide 14: Transaction structure and economic benefit
Excellent combination to tap into emerging markets Further geographic expansion in non- Separate brands address premium markets Provide different market segments platform for Separate… future expansion and Managed differentiating separately brands… Brands offer different Leadership continuity value
Slide 15: Phased acquisition with pre-defined roadmap
Phased acquisition with pre-defined roadmap Step 1: 2012 Further steps: 2015 onwards Straumann 49% Options to increase stake to 100% ownership Based on fixed Purchase price About CHF 260m LTM EBITDA multiple Adj. EBITDA multiple 13 Less than 13 Accounting Equity consolidation Full consolidation Acqu
Slide 16: Straumann
Straumann ANNUAL REPORT 2010 33 16