Slide 1: Disclaimer
1 1 Disclaimer This presentation contains certain forward-looking statements that reflect the current views of management. Such statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Straumann Group to diff
Slide 2: Agenda
Agenda First-half highlights Business & regional review Adapting to the new reality & customer focus Strategy in action Outlook Q&A and upcoming events 3 First-half highlights Guillaume Daniellot, CEO 4 2
Slide 3: Back to business… prepared for uncertainty
Back to business… Dentists open Europe APAC NAM Emerging mkts LATAM Straumann open Europe APAC NAM Emerging mkts LATAM 5 5 …prepared for uncertainty Single-hit: Best case Single-hit scenario OECD forecast Straumann adapts Global economic activity falls Worst case 6% in 2020 • Safety for staff and
Slide 4: Highlights Q2: APAC picks up, EMEA & NAM through the worst
Highlights FIRST-HALF REVENUE MARKET PROFITABILITY CHF 605 million Core margins Reaching patients Practices open underpinned H1: -22% in CHF; -19% organic Pent-up demand; dentists working to EBITDA: 23%; EBIT: 17%; Net: 12% Q2: -39% in CHF; -36% organic reduce treatment backlog PPA amortization, imp
Slide 5: Business and regional review
Business and regional review Peter Hackel, CFO 9 All regions affected; APAC first to recover Revenue development (in CHF million, rounded) -22.4% in CHF Regional contribution Revenue -19.2% to revenue decrease development organic Change in organic growth -19.4% -17.9% -16.8% -29.4% 10 10 5
Slide 6: Stage of pandemic varies across EMEA & North America
Stage of pandemic varies across EMEA & North America EMEA Revenue change (organic) DSOs adapt faster than small practices 56% 14.4% 13.1% 13.4% Q2: reduced revenues in all countries 12.7% except Balkans, S. Africa & Turkey; 0.1% 43% of Group Germany soft but stable overall Q1 2019 Q2 Q3 Q4 Q1 20
Slide 7: Summary of major effects in H1 2020
Q2 performance by business Digital & Implant systems Biomaterials Orthodontics restorative 13 13 Summary of major effects in H1 2020 Revenue declines due to COVID-19 pandemic and economic deceleration Short-time work subsidies CHF 12m (reported under ‘other income’) Reduction of global workfor
Slide 8: Core and reported financials at a glance
Core financials at a glance % of Margin Change In CHF million, rounded H1 2020 Comments revenue change in % Revenue 605.1 100.0% (22.4%) COGS (175.3) 29.0%placeholder (1.3%) GROSS PROFIT 429.8 71.0% (620bps) (28.7%) FX headwind -90bps Operating expenses (329.6) 54.4% (15.1%) EBIT 100.2 16.6% (1090bp
Slide 9: Overview: core results reconciliation
Overview: core results reconciliation 1 ‘Impairments’ refers to Createch, Dental Wings, Implant Businesses Iberia and India, and others - see Interim Financial Report note 4 of the Media Release 17 2 ‘Restructuring’ refers to the reduction of the global workforce in Q2. 17 Core gross margin still ab
Slide 10: Core EBIT margin reaches 17%; net profit margin 12%
Core EBIT margin reaches 17% In %, rounded -1090bps 2510bps thereof -940bps = impairments 19 19 Core net profit margin squeezed to 12% In CHF million, rounded -57% thereof CHF 150m impairments Net profit Net profit margin margin 21.7% 12.2% 20 20 10
Slide 11: Free cash flow and operating cash flow
Positive free cash flow reflects CAPEX and NWC reductions Operating Cash Flow In CHF million Y/Y Change In CHF million, rounded HY1 2019 127.7 HY1 2020 60.7 -52% -80% FCF margin FCF margin 7.4% 1.9% 21 21 Adapting to the new reality & customer focus Guillaume Daniellot, CEO 22 11
Slide 12: Strategy in action: online outreach to customers
Massive online outreach to customers during lock-down Global Campuslive: 24K registrations, 70 webinars NAM 2 online symposia on immediacy; >50K sessions, >7K participants APAC e.g. China: 3 live BITC events, 140K viewers per session; Roxolid SLA launch: >25K implantologists, 5K leads EMEA e.g. Germ
Slide 13: Key building blocks; ImmediaXy implant campaign
Key building blocks Straumann Group IMPLANT solution push Immediacy solution Edentulous solution ‘Smile in a Box’ DIGITAL CHANNEL management ecosystem CHANNEL GTM review Intraoral scanners & ecosystem management E-commerce Digital services / guided surgery E-marketing, ORTHO 3D printing
Slide 14: Ortho business update; DrSmile
Ortho solution push Ortho business update ClearCorrect ‘ONE’ launched 1 price, 1-year treatment, 1 revision, 1 free retainer set New high-performance material Triple-layer; exerts constant forces even after 7 days, improving performance by 2-3 days High comfort and stain resistance Launch in
Slide 15: DrSmile online/offline model; digital ecosystem
Channel Convenient, reliable and attractive for patients Management and dental practices DTC marketing draws Treatment eligibility patient to DrSmile’s check website Planning service Online Patient books free submits tmt. plan to dentist appointment dentist for approval DrSmile calls patient Checkup
Slide 16: Outlook
Artificial intelligence to enhance diagnosis Digital ecosystem and facilitate virtual treatment workflows 49% non-controlling stake in Promaton B.V. Netherlands-based company specializing in artificial intelligence in dentistry automation Put/call-option mechanism for a stepped increase to ful
Slide 17: Outlook – uncertainty continues; Questions & answers
Outlook – uncertainty continues • Signs of recovery as most countries/regions have re-opened • Practices adapt to new safety standards, but efficiency reduced Market • Difficult to determine whether present improvement will continue at same pace if further waves of COVID-19 occur • Potential of weak
Slide 18: Thank you
Thank you 35 Calendar of upcoming reporting dates 2020 Event Location 28 October Q3 results publication Webcast 36 36 18
Slide 19: Straumann's currency exposure
Straumann’s currency exposure Revenue Breakdown HY1 2020 Exchange rates development Jan 2019 - Jun 2020 CHF 110 Other 6% 18% 100 BRL EUR 90 7% 27% 80 CNY 10% 70 60 USD/CAD/AUD 12/2018 03/2019 06/2019 09/2019 12/2019 03/2020 06/2020 32% USDCHF EURCHF CNYCHF BRLCHF Total Cost Breakdown HY1 2020 FX sen