Straumann Holding Ag · SIX:STMN
Straumann — Berenberg Equities conference 2017
38 slides from Straumann's conference presentation, Dec 7, 2017
Slide 1: Creating opportunities for customers and shareholders
Creating opportunities for customers and shareholders Peter Hackel, CFO 7 December 2017
Slide 2: Disclaimer
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 differ m
Slide 3: Our tooth replacement solutions
Our tooth replacement solutions Main other players by segment: CAD/CAM prosthetics incl. digital equipment Abutment / bars & bridges (titanium/cobalt chrome/ceramic) Bone and tissue regeneration (Human/Animal/synthetic bone substitutes & membranes) Implant (Titanium/titanium alloy/ceramic) 3
Slide 4: The ClearCorrect acquisition extends our offering in esthetic dentistry
The ClearCorrect acquisition extends our offering in esthetic dentistry One of the leading providers of full clear-aligner tooth- correction solutions Privately-held; fast-growing; 2016 sales: USD 32m Products sold directly in North America and through distributors in Australia, the UK and oth
Slide 5: Financial performance
Financial performance
Slide 6: Momentum sustained in Q3 with accelerations in APAC and LATAM
Momentum sustained in Q3 with accelerations in APAC and LATAM Growth year-on-year (in %) North America EMEA 28% of Group 44% of Group APAC 17.0 17.2 17% of Group 9.9 10.0 27.9 24.2 Q3 9M Q3 9M LATAM 11% of Group Q3 9M Straumann Group 18.9 15.7 15.9 14.8 Q3 9M 6 Q3 9M
Slide 7: Winning share in all segments
Winning share in all segments Organic revenue growth since 2012 14.8% >3x market growth (incl. Straumann Group) 13.1% 9.1% Double-digit growth over the first 9 months Average 7.2% 6.4% supported across all segments 1.2% -1.0% ++ ++ ++ 2012 2013 2014 2015 2016 9M 2017 Biomaterials Implants Restorativ
Slide 8: Organic revenue growth 2012-2017
Above-market growth driven by new products and entry into new geographies & segments Organic revenue growth 2012-2017 BLT implant Roxolid implant ‘Roxolid material for all’ ProAch edentulous solution Lab & chairside CADCAM offering 2012 2013 2014 GBR 2015 2016 2017 biomaterials Variobase abutments P
Slide 9: Growth strategy reflected in an increasingly diverse team
Growth strategy reflected in an increasingly diverse team Employees by region (in % of total1) Headcount development (pro forma1) APAC +982 10% CH (incl. HQ) 20% 4'290 NAM 3'797 19% 3'471 4’779 2'387 2'217 Rest of EMEA 26% LATAM 2013 2014 2015 2016 9M 2017 25% Number of employees Medentika & Equinox
Slide 10: Capacity expansion to meet growing demand
Capacity expansion to meet growing demand Output Facility 2017 2018 2019 increase1 Villeret (CH) New production building (brownfield) +70% Andover (US) +60% Curitiba (BR) +35% +50% space New production area in Curitiba Impression of new production building in Villeret New building/ Additional machin
Slide 11: Strategic progress
Strategic progress
Slide 12: Strategic priorities of the Straumann Group
Strategic priorities of the Straumann Group Drive our high performance STMN Group culture and organization Target unexploited growth markets & segments Expand scope to become a Total Solution Provider for esthetic dentistry 12
Slide 13: Addressable market 2018 vs. 2012
Addressable market 2018 vs. 2012 Variobase BLT Neodent Lab- and chairside Clear Fully-tapered Milestones: abutment implant consolidation CAD/CAM systems Aligners implant expected 2012 2015 2018 Biomaterials Non- (grafts & membranes) premium Premium: parallel walled Premium: apically tapered Traditio
Slide 14: Our present implant portfolio
Our present implant portfolio Tissue Level Bone Level Bone Level Bone Level Bone Level Tissue Level parallel-walled parallel-walled apically tapered fully tap./external fixation fully tap./internal fixation Ceramic / Monotype Straumann Straumann Straumann Straumann Neodent Neodent Neodent Neodent
Slide 15: Substantial growth potential in the tapered implant segment in 2018 and beyond
Substantial growth potential in the tapered implant segment in 2018 and beyond Combined implant market in our 2 largest subsidiaries US & Germany (market size 3.7m implants) in 1’000 implants Fully tapered Tissue Level Growth of tapered implants driven by LMR trend towards Bone Level Q42018 immediac
Slide 16: Neodent launches 'Grand Morse' in Brazil
Neodent launches ‘Grand Morse’ in Brazil – a 2nd generation fully-tapered implant system Complete new implant system for all clinical needs, developed from the inside out, starting with the prosthetic interface Fully tapered design with cutting threads Comprehensive prosthetic range, including
Slide 17: Continuously expanding our footprint in the non-premium segment
Continuously expanding our footprint in the non- premium segment Medentika home market Premium Premium Premium Non- Non- Equinox home market Non- premium Non- premium Premium premium Neodent home market Non-premium offering (current) Future non-premium markets 17
Slide 18: The ClearCorrect acquisition extends our offering in esthetic dentistry
The ClearCorrect acquisition extends our offering in esthetic dentistry One of the leading providers of full clear-aligner tooth- correction solutions Privately-held; fast-growing; 2016 sales: USD 32m Products sold directly in North America and through distributors in Australia, the UK and oth
Slide 19: Winning share and growing the market
Winning share and growing the market Esthetic dentistry To o t h r e p l a c e m e n t m a r k e t CHF m CHF 3.5 bn 3000 2000 1000 0 Imaging & Clear Imaging & Planing Implants Implants Abutments Abutments CADCAM- CADCAM Biomaterials Biomaterials CADCAM- CADCAM Scanners Scanners Clear Aligner aligner
Slide 20: Attractive clear-aligner market worth USD 1.5bn
Attractive clear-aligner market worth USD 1.5bn Clear aligners vs. conventional braces & wires: Clear aligner adoption drivers worldwide cases per year North America: Clear-aligner More dentists trained (GPs & penetration ~14-18% orthodontists) More GPs offer/promote treatment Potential: Curre
Slide 21: Commonalities in restorative and clear-aligner workflows
Commonalities in restorative and clear-aligner workflows Case design Treatment design Doctor Doctor Doctor approval approval Prosthetic Orthodontic workflow workflow Data capturing Milling Aligner production Model Tooth-borne Implant -borne production (3D prints) (thermo-foiling process) 21 Restorat
Slide 22: New Group set-up
New Group set-up Implants & prosthetics Local/regional Premium Non-Premium Orthodontics Digital Biomaterials Other technology partners 22 Fully consolidated Associate (equity method) Partnership
Slide 23: Key steps to put strategy into action
Key steps to put stategy into action Create Digital Build global Market entry Leverage business unit DSO team Orthodontics commercial synergies 35% 100% Ownership 100% 38% >500 employees ~10% of global >200 worldwide implant volumes employees growing at 20% 23 1 DSO = Dental Service Organization
Slide 24: Outlook 2017 and beyond
Outlook 2017 and beyond
Slide 25: Full-year outlook raised in Q3
Full-year outlook raised in Q3 Barring unforeseen circumstances We expect the global implant market Market growth to grow at approx. 3-4%1 in 2017 Confident that we can continue to outperform Straumann by achieving organic2 revenue growth of 13-15% Further improvements in the underyling2 operating P
Slide 26: Favorable secular trend driven by demographics, adoption and awareness
Favorable secular trend driven by demographics, adoption and awareness Estimated implants placed in 2016 (in thousand units) and per 10 000 inhabitants (small number in italic) Russia 615 Germany (43) 1 300 (158) Greater China US 1 200 Japan 2 400 Spain Turkey (9) 430 (74) 1 300 500 (34) (271) (62)
Slide 27: Convincing growth drivers for the upcoming years
Convincing growth drivers for the upcoming years Industry Straumann Group specific Favorable sociodemographic trend Expansion of the non-premium offering Underpenetrated markets Develop ceramic and fully-tapered implant (expanding provider base through T&E, ITI network, female programs and p
Slide 28: Questions & answers
Questions & answers straumanngroup
Slide 29: Calendar of upcoming events
Calendar of upcoming events 2017 Event Location 07 December Berenberg Equities conference Pennyhill (UK) 2018 Event Location 08 January Investor meetings Denver (US) 11-12 January Baader Helvea Swiss conference Bad Ragaz (CH) 15 February Full-year 2017 results conference Straumann Group Headquarters
Slide 30: The Straumann Group
The Straumann Group
Slide 31: Straumann in brief
Straumann in brief The global leader in (implant-borne) tooth replacement with CHF approx. 1bn annual sales Founded by the Straumann family as a research institute in 1954 4800 employees from 50 nations Listed at the Swiss stock exchange since 1998 with a market cap of approx. CHF 11bn Glo
Slide 32: Bolstered leading position in an attractive market
Bolstered leading position in an attractive market Global dentistry market Global market for worth CHF 24bn in 20161 implant dentistry2 Dental specialties General (implants/endo/ortho) Others (400+) dentistry 20% 23% 6% 7% 19% 10% Prosthetics 15% Equipment Source: 1 Market data based on Goldman Sach
Slide 33: Growth strategy pays off
Growth strategy pays off in CHF million 2012 2013 2014 2015 2016 9M 2017 5-year average Revenue 686.3 679.9 710.3 798.6 917.5 801.3 Organic revenue growth in % -1.0 1.2 6.4 9.1 13.1 14.8 8.9 Acquisiton / Divesture effect in % -0.6 -0.8 0.0 9.5 0.8 2.9 2.5 Change in l.c.% -1.6 0.4 6.4 18.6 13.9 17.7
Slide 34: More diversified and less dependency on mature markets in Europe
More diversified and less dependency on mature markets in Europe Straumann Group regional revenue split 2011 and H1 2017 2011 Today Middle East & LATAM 5% Middle East & LATAM Eastern EU Eastern EU 3% 11% 5% APAC 15% APAC Europe 17% 39% North Europe 55% America North 22% America 28% 35
Slide 35: Actions taken to make our company more resilient to economic downturns
Actions taken in recent years to make our company more resilient to economic downturns Entered the non-premium implant market with multiple brands: Neodent, Medentika, Anthogyr and equinox Expanded our geographical presence (previously European-centric) and increased our addressable market (examples
Slide 36: Competitive landscape
Competitive landscape Traditional CADCAM DVT/ Clear Surgical Intraoral CADCAM 3D wires & Biomaterials Implants chairside CBCT Aligners planning scanner in-lab milling printers brackets milling Straumann Group1 Danaher () () Dentsply () Sirona Henry
Slide 37: Straumann's currency exposure
Straumann’s currency exposure Revenue breakdown FY20161 FX sensitivity CHF Average exchange rates (rounded) (+/- 10%) on full-year... Other 8% 15% 9M 2016 9M 2017 Latest trend Revenue EBIT 1 EURCHF 1.09 1.10 +/- 29m +/- 18m BRL 10% 1 USDCHF 0.98 0.98 +/- 23m +/- 11m EUR 31% JPY 100 BRLCHF 27.72
Slide 38: Thank you
Thank you investor.relations@straumann.com