Straumann Holding Ag · SIX:STMN

Straumann — FY2015 Earnings Presentation

31 slides from Straumann's earnings presentation, Feb 25, 2016

  1. Slide 1: 2015 Full-year results

    24.02.2016 2015 Full-year results Conference presentation for investors, analysts & media Basel, 25 February 2016 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

  2. Slide 2: Full-year highlights

    24.02.2016 Full-year highlights Marco Gadola, CEO Growth strategy paying off REVENUE BEST PERFORMERS EBIT MARGIN2 CHF 799m APAC & LATAM 23.3% Organic1 growth Double-digit organic growth in both Operating profit jumps 25% due to FY: +9% regions strong growth, accretive income from Q4: +10% Neodent, a

  3. Slide 3: Positive sales trend continues in Q4 led by APAC and LATAM

    24.02.2016 Positive sales trend continues in Q4 led by APAC and LATAM Organic revenue growth in % EMEA 47% of Group North America 27% of Group 8.3 8.3 APAC 6.1 15% of Group 6.6 20.0 19.4 Q4 FY Q4 FY LATAM 10% of Group 16.8 Group 10.3 11.0 Q4 FY 9.1 Q4 FY Q4 FY 5 Underlying margin expands on all leve

  4. Slide 4: Consolidation has changed the competitive landscape

    24.02.2016 Consolidation has changed the competitive landscape  Global implant & abutment market, Global dental implant market shares in 2015 (worth CHF 3.2bn) valued at ~CHF 3.2 bn1, grew mid- single-digit in 2015  Successful launches helped us to grow strongly and extend our lead in implant mark

  5. Slide 5: Global team strengthened in 2015 through Neodent

    24.02.2016 Global team strengthened in 2015 through Neodent and new hires in China, US and LATAM ~3470 Straumann Group 3500 Over 900 Neodent employees in Brazil 3000 More than 250 new 2500 jobs created: 60% in Sales & Marketing 2000 mostly in:  China 1500  USA  Latin America 1000 500 0 9 Neodent’

  6. Slide 6: Special factors influencing income statement

    24.02.2016 Business and regional review Peter Hackel, CFO Special factors influencing income statement Neodent contributed CHF 63m to Group revenue from 1 March to 31 December Impact on Amount in CHF million Reason Business combination exceptionals Other EBIT Cost of goods sold (13) Inventory adjust

  7. Slide 7: Significant profitability improvements

    24.02.2016 Significant profitability improvements Change in CHF million FY 2015 FY 2014 (rounded) before business excluding One-time before one- Reported Exceptionals combination Reported exceptionals and effect time effect exceptionals one-time effect Revenue 798.6 710.3 Organic growth% 9.1% 6.4% G

  8. Slide 8: Ramping up production & logistics for future growth

    24.02.2016 Ramping up production & logistics for future growth  Capacity ramped-up for BLT incl. instruments and surgical cassettes; integration of more than 400 new product articles (SKUs) in our plants  CADCAM milling centre in Japan offering custom abutments, complex prosthetic frameworks, and

  9. Slide 9: Net profit reaches CHF 145m excl. exceptionals

    24.02.2016 Net profit reaches CHF 145m excl. exceptionals In CHF million, rounded 37.4 (9.0) (26.9) (21.6) 7.1 (73.2) 157.8 144.7 130.9 71.5 Net profit Net profit Net profit Net profit margin margin margin margin 22.2% 18.4% 18.1% 9.0% Reported net One-time Underlying EBIT Financial Share of Income

  10. Slide 10: Proposed dividend increase to CHF 4.00 per share

    24.02.2016 Proposed dividend increase to CHF 4.00 per share  Based on the results and positive developments in 2015, the Board will propose an increase in the ordinary dividend of CHF 0.25 per share for approval  Despite challenging conditions and market contraction, Straumann has maintained its d

  11. Slide 11: Sustained recovery in EMEA; robust N. America

    24.02.2016 Sustained recovery in EMEA; robust N. America Revenue change (organic) 8.3% 8.5% 8.3%  Good momentum in Q4 (+8%) led 47% 7.0% by Germany and fuelled by 56% EMEA double-digit growth in Iberia and 2.4% France 0.3%  Good performances in the UK and the Nordics Q3 Q4 Q1 Q2 Q3 Q4 2015 11.4% 1

  12. Slide 12: Double-digit growth in implants and biomaterials

    24.02.2016 Double-digit growth in implants and biomaterials Implants Restorative Biomaterials 23 23 Update on our strategic progress Marco Gadola, CEO 12

  13. Slide 13: Update on our strategic priorities

    24.02.2016 Update on our strategic priorities Drive a high performance 1 culture and organization Target unexploited 2 growth markets & segments Become a total solution 3 provider for tooth replacement 25 1 Distinct signs of new high-performance culture  Program to promote ‘player- learner’ mindset

  14. Slide 14: Targeted investments to extend geographical reach

    24.02.2016 Our strategic priorities Drive a high performance 1 culture and organization Target unexploited 2 growth markets & segments Become a total solution 3 provider for tooth replacement 27 Targeted investments to extend geographical 2 reach and unlock growth potential Russia UK New subsidiary

  15. Slide 15: Expanding in the value segment

    24.02.2016 2 Expanding in the value segment Neodent home market Existing value organizations & distributors Medentika home market Expansion 2016 29 2 Joint forces to exploit the full potential Conservative, well- Progressive, immediate documented treatments function protocols Occupied by peers Premi

  16. Slide 16: Anthogyr – a door to the Chinese value segment

    24.02.2016 Anthogyr – a door to the Chinese value 2 segment  Straumann to acquire 30% stake in French company  Anthogyr’s implant business activities in China to transfer to Straumann by mid-2016  Anthogyr’s dental implant system is already established in China and positioned as a high-quality at

  17. Slide 17: Two additions to our value and technology platform

    24.02.2016 Two additions to our value and technology 2 platform Germany Spain Brazil Germany (Option 30%) (30%) (100%) (51%) Canada Germany France/China S. Korea (55%) (100%) (30%) (Convertible) US Switzerland Taiwan Taiwan (13%) (44%) (Convertible) (49%) Common platform of technology & production T

  18. Slide 18: Collaboration with Engel Institute to support education

    24.02.2016 Collaboration with Engel Institute 2 to support education  Increased needs for education to address the growing number of dentists interested in placing implants  Established in 2005, the Engel Institute has 4 training centers in the US and has provided training to >7000 dental professi

  19. Slide 19: A stocked innovation pipeline

    24.02.2016 3 A stocked innovation pipeline Highlights from Straumann’s development pipeline. Introduction/rollout dates may be subject to positive clinical results and 37 regulatory clearances, and barring unforeseen circumstances. Straumann PURE ceramic implant – now 3 available in the US  FDA cle

  20. Slide 20: New intra-oral scanning technology – distribution partnership

    24.02.2016 New intra-oral scanning technology – 3 distribution partnership to drive US sales  Next generation technology – developed by Dental Wings for Straumann  Small light handpiece  Real-time 3D scanning; open STL files  Patented and compact 3D capture technique (“Multiscan Imaging Gesture

  21. Slide 21: Partnership with AmannGirrbach facilitates entry into Brazil

    24.02.2016 Partnership with AmannGirrbach facilitates 3 our entry into the Brazilian in-lab milling market 2015 2016 Amann Girrbach distributed Scan & Shape Service + by Neodent Centralized Milling Scanner / SW Milling equipment Furnace Dental Wings Inlab Materials: scanners • Blanks (D-disks) • 3 S

  22. Slide 22: Confidence going forward

    24.02.2016 Confidence going forward Confidence based on long-term independent clinical evidence  Large retrospective study1 of dental implants in broad clinical setting including 1578 implants from various manufacturers  Investigators observe substantial differences between implant systems  Signi

  23. Slide 23: Roxolid Lifetime Plus Guarantee

    24.02.2016 Roxolid® Lifetime Plus Guarantee  New guarantee provides extra confidence in Roxolid implants  In addition to implants and abutments, the guarantee offers a monetary reimbursement towards treatment costs  Cumulative fracture rate of 0.04% is significantly lower than titanium implants 

  24. Slide 24: Guidance 2016

    24.02.2016 Outlook 2015 Guidance 2016 Barring unforeseen circumstances  We expect the global implant market to grow solidly in 2016  We are confident that we can continue to outperform by achieving organic growth in the mid-single-digit range  Despite further investments into strategic growth ini

  25. Slide 25: Questions & answers

    24.02.2016 Annual Report 2015 – Extraordinary performers 49 Questions & answers 25

  26. Slide 26: Calendar of upcoming events

    24.02.2016 Calendar of upcoming events 2016 25 February Full-year 2015 results conference Basel HQ, CH 26 February Analyst breakfast London 26 February Investor meetings London 18 March Investor meetings Paris 22 March Investor meetings Singapore 23 March Kepler Cheuvreux Swiss Seminar Zurich 08 Apr

  27. Slide 27: Share price reflects restored confidence thanks to improved fundamentals

    24.02.2016 Share price reflects restored confidence thanks to improved fundamentals Relative share price development in the past 5 years ...and over the past 2 years STMN N SMI price index (rebased) MSCI World price index (rebased) 53 Source: Thomson Reuters Datastream Results from perception survey

  28. Slide 28: Perception survey last December: Respondents...

    24.02.2016 Perception survey last December: Respondents... ...by job ...by country 5%4% UK 12% Fund Manager 23% US Scandinavia 13% Buy-side analyst Canada 49% 5% France Sell-side analyst 2% Switzerland 3% Equity sales 55% 3% Germany 25% Other Online survey in December 2015 with a sample size of 75 r

  29. Slide 29: Why are you a shareholder / not invested at the moment

    24.02.2016 Why are you a shareholder / not invested at the moment (Top responses ranked by order) Why are you a shareholder? Why are you not invested? Straumann will likely outperform its peers Industry growth does not match valuation and can leverage its fixed cost base Find management convincing I

  30. Slide 30: What should the company do with its cash?

    24.02.2016 What should the company do with its cash? Capital deployment (in % of respondents) Extension of business scope? (in % of respondents) 7% 9% 0% 9% 9% 37% 10% 49% 16% 25% 29% Bolt-on acquisition to increase market share if synergies justify it No, we prefer a focused business model Investme

  31. Slide 31: International Headquarters

    24.02.2016 International Headquarters Institut Straumann AG Peter Merian-Weg 12 CH-4002 Basel, Switzerland Phone +41(0)61 965 11 11 Fax +41(0)61 965 10 01 www.straumann.com 31

Straumann Group — FY2015 Earnings Presentation on 6ix