Slide 1: First-half 2019 report
13.08.2019 First-half 2019 report Conference & webcast for investors, analysts & media 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 m
Slide 2: Agenda
13.08.2019 Agenda First-half highlights Business and regional review Recent highlights – Executing our strategy 2019 Outlook Q&A and upcoming events Half-year highlights Marco Gadola, CEO 2
Slide 3: Strong H1 – solid fundamentals – FY guidance raised
13.08.2019 Strong H1 – solid fundamentals – FY guidance raised REVENUE REVENUE GROWTH EBIT MARGIN CHF 780m +16% organic 27.5% core 1 26.3% excl. exceptionals FX headwind: CHF -16m Q2: +16% organic; +14% in CHF Strong topline growth improves profitability Acquisition effect: CHF +5m Q1: +17% organic;
Slide 4: Further value created for shareholders
13.08.2019 Further value created for shareholders Revenue growth Core EBIT in% excl. acquisition Core EPS and FX effects margin +16% +10bps +13% organic +80bps ex FX 780.0 10.64 27.4 27.5 9.45 665.6 H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 7 5-year performance 5-year organic revenue growth 5-
Slide 5: Business and regional review
13.08.2019 Business and regional review Peter Hackel, CFO Continued double-digit growth across all regions Revenue development (in CHF m, rounded) Regional share of 14.5% organic growth CHF 16.3% 10% Latin organic America 10.6 780.0 23.4 21% 35.4 Asia 40.1 Pacific 681.5 15.8 32% 4.9 670.6 North Chan
Slide 6: Healthy growth in Group's largest regions, EMEA & North America
13.08.2019 Healthy growth in Group’s largest regions, EMEA & North America EMEA Revenue change (organic) Strong Q2 (despite late Easter), lifted 56% by launches/roll-outs including BLX 19.3% 17.0% 14.4% Eastern Europe & Middle East fuel 11.9% 12.9% 43% of Group 9.8% growth Excellent performanc
Slide 7: Dynamic clear-aligner and biomaterials business
13.08.2019 Dynamic clear-aligner and biomaterials business Restorative & Implants Digital Biomaterials 13 Exceptional effects in H1 2019 The exclusion of one-time or exceptional items facilitates like-for-like comparisons and helps to understand underlying performance. In line with the new SIX requi
Slide 8: Core financials at a glance
13.08.2019 Core financials at a glance % of Margin Change In CHF million, rounded H1 2019 Comments revenue change in % Revenue 780.0 100.0% 14.5% COGS (177.5) 22.8%placeholder (11.2%) GROSS PROFIT 602.5 77.2% 60bps 15.5% Operating expenses (388.4) 49.8% (15.8%) FX headwind -70bps EBIT 214.1 27.5% 10
Slide 9: Overview: Core results reconciliation
13.08.2019 Overview: Core results reconciliation Core results reconciliation Consolidation H1, 2019 PPA result of H1, 2019 H1, 2018 1 2 (in CHF 1 000) IFRS amortizations Impairments Legal cases former Other CORE CORE Revenue 780 034 0 0 0 0 0 780 034 681 458 Cost of goods sold (184 955) 628 0 0 0 6
Slide 10: Core EBIT margin exceeds 27% despite adverse FX effects
13.08.2019 Core EBIT margin exceeds 27% despite adverse FX effects In %, rounded +10bps +80bps 2.5 -0.7 1.0 -0.1 -0.3 0.2 -4.5 27.5 26.7 24.9 23.0 1 IFRS EBIT Non core FX effect Core EBIT Gross profit Distribution Administration IFRS16 Core EBIT Non core IFRS EBIT margin H1 items margin H1 improveme
Slide 11: Underlying net profit climbs 11%
13.08.2019 Underlying net profit climbs 11% In CHF m +11% 25.7 -1.7 0.1 -6.2 -1.3 -23.1 20.1 169.6 153.0 146.5 132.9 Net profit Net profit margin margin 22.5% 21.7% IFRS net Non-core Core net EBIT Financial Associates Income IFRS 16 Core net Non-core IFRS net profit H1 items profit H1 improvement re
Slide 12: Recent highlights – Executing our strategy
13.08.2019 Recent highlights – Executing our strategy Marco Gadola, CEO BLX – highly appealing to customers Full market release in most EMEA markets started in March >30 000 BLX implants sold in H1, despite aggressive competitor promotions Innovative, next-generation BLX implant, priced at a p
Slide 13: Innovation stream continues e.g. in ceramics
13.08.2019 Innovation stream continues e.g. in ceramics Straumann® Ceramic Healing Abutments Initiates soft-tissue contouring as implant integrates with bone Benefits include more favorable soft-tissue attachment/integration than titanium1-9 Available for all Straumann BL and BLT implants Stra
Slide 14: Fast response gets Dental Wings back on track after fire
13.08.2019 Fast response gets Dental Wings back on track after fire Severe fire damage to Montreal HQ & production in May Staff move to temporary locations; all critical activities resumed within 2 weeks, some shifted to DW in Berlin Virtuo Vivo intraoral scanner assembly restarted 2 weeks lat
Slide 15: Collaboration with Carestream in China
13.08.2019 Collaboration with Carestream in China Group strengthens intra-oral-scanner (IOS) offering as market emerges rapidly in China, where <4% of clinics have IOS 5-year distribution agreement to sell co-branded Carestream’s CS3600 scanner, which is already approved in China Local support f
Slide 16: Further acquisitions to support our expanding digital business
13.08.2019 Further acquisitions to support our expanding digital business Yller Biomateriais S.A. Digital Planning Service Private Limited • High-tech consumables for 3D printers & • Treatment planning & diagnostics for clear orthodontic products aligners • Generating recurring revenues • Case plann
Slide 17: Portfolio to cover all implant price levels in APAC
13.08.2019 Portfolio to cover all implant price levels in APAC Premium brand Premium Academic roots and focus – founded in 2001 by KOLs working in University CHF 200 hospitals Upper value brands Straumann Group provides capital injection to expand production, network and international business
Slide 18: Increasing direct access to customers in Eastern Europe
13.08.2019 Increasing direct access to customers in Eastern Europe Group takes over Croatian distributor and sales team (consolidated 1 July 2019) Adriatic hub created to serve Croatia directly and Albania, Bosnia, Kosovo & Montenegro through distribution network ~130 000 dental implants sold
Slide 19: 2019 Outlook
13.08.2019 2019 Outlook Our 2019 guidance Barring unforeseen circumstances Global implant market Market growth to continue growing at 4-5% Group to outperform and achieve Our revenue organic revenue growth in growth low to mid-teen percentage range Core EBITDA and EBIT margin Profitability improveme
Slide 20: Questions & answers
13.08.2019 US-China trade relations complicates forecasting 1.3 1.25 1.2 1.15 1.1 1.05 1 0.95 0.9 2018 2019 EURCHF CNYCHF adjusted USDCHF adjusted BRLCHF adjusted 39 & Questions & answers 20
Slide 21: Marcel Kellerhals appointed Head of Investor Relations
13.08.2019 Marcel Kellerhals appointed Head of Investor Relations & Corporate Finance On 1 September Marcel Kellerhals will take over responsibility for Investor Relations from Fabian Hildbrand, who is leaving Straumann to pursue a career opportunity in the consumer goods industry. Marcel joined
Slide 22: Appendix
13.08.2019 Appendix Overview: FY 2018 core results reconciliation Consolidation FY 2018 PPA result of former 2 (in CHF 1 000) IFRS amortizations Impairments Legal cases associates Other CORE Revenue 1 363 560 0 0 0 0 0 1 363 560 1 Cost of goods sold (344 315) 8 887 0 0 0 0 (335 429) Gross profit 1 0
Slide 23: Straumann Group's currency exposure
13.08.2019 Overview: H1 2018 core results reconciliation 3 Impairment charge of CHF 8 million for RODO Medical due to the delay in the development and commercialization of the company’s prosthetic-retention system. 45 Straumann Group’s currency exposure FX sensitivity Average exchange rates (rounded
Slide 24: Thank you
13.08.2019 straumanngroup 24