Straumann Holding AG · SIX:STMN
Straumann — Berenberg Equities Conference 2018
43 slides from Straumann's conference presentation, Dec 5, 2018
Slide 1: Creating opportunities for customers and shareholders
Creating opportunities for customers and shareholders Berenberg Equities Conference, Pennyhill, 05 December 2018
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: Straumann Group: the pure play in dentistry
Straumann Group: the pure play in dentistry ~5,700 1954 11bn 180,000 62 ~1.3bn Employees Founded Market Cap Customers; active Subsidiaries Annual revenue in >100 countries Domiciled in Highly profitable: Switzerland ROCE 2017 of 42% 3
Slide 4: Our solutions
DIGITAL Data Acquisition Planning Surgery Impression Design Production Post Processing Final Restoration PRACTICE WORKFLOW Prosthetics Regenerative Biomaterials CAD/CAM planning Ceramic Implants components OUR SOLUTIONS Crowns Clear Aligners CAD / CAM Screw-retained Retention Systems Bridges and Bar
Slide 5: Production facilities spread around the globe
Production facilities spread around the globe Malmö (SE) Biomaterials Montreal (CA) Villeret (CH) Markkleeberg (D) Digital headquarters, Implants and CAD/CAM milling software and hardware prosthetics Narita/Chiba (JP) Renningen (D) CAD/CAM milling Basel (CH) Prosthetics and implants Andover (USA) Gl
Slide 6: Looking back – Financial performance 9M 2018
Looking back – Financial performance 9M 2018 6
Slide 7: Double-digit growth in all regions
Double-digit growth in all regions Revenue development (CHFm, rounded) Regional share of organic growth 23.4% 18.0% CHF organic 10% LATAM 14.3 989.0 43.2 44.3 29% 48.9 APAC 34.1 838.3 801.3 2.9 29% North Change in organic growth America 13.0% 18.6% 30.2% 18.1% 32% EMEA Revenues FX effect M&A effect
Slide 8: Clear-aligner business growing fast
Clear-aligner business growing fast +60% Significant case growth in Q3 (+60%) case starts Customer base expands >10% in first 9M Pilot programs completed in Europe – sales force built up with the aim to fully launch in 2019 ClearCorrect well received at Orto 2018 trade fair in Brazil; prepar
Slide 9: Another encouraging quarter keeps us on track to deliver our full-year targets
Another encouraging quarter keeps us on track to deliver our full-year targets REVENUE GROWTH TOP PERFORMERS CHF 989 m +18% organic 1 APAC & NAM Up 23% from 9M 2017 over 9M & in Q3 generate 58% of Group 9M growth; FX effect neutral APAC growing fastest (+33%) Acquisition effect: 5%-points FUTURE GRO
Slide 10: Track record to deliver profitable growth
Track record to deliver profitable growth Organic revenue growth Underlying EBITDA1 in CHF Underlying Net Profit2 in CHF million and margin million and margin Average +9% +10.5%-points + 11 . 0 % - p o i n t s 400 29.3%29.8% 400 31.0% 21.6% 25.0% 18.0% 27.6%28.3% 29.0% 20.4% 21.3% 15.7% 18.4% 18.1%
Slide 11: Success factors for growth
Success factors for growth 11
Slide 12: We have broadened our portfolio and deepened our customer interactions
We have broadened our portfolio and deepened our customer interactions Manufacturer Distribution/subsidiaries Dental professional Patient pool (our clients) (our client’s client) 2012 23 Institut Straumann Focus on implant Patients with specialists missing teeth 63 63 63 63 Today R&D team +140
Slide 13: Reputation as innovation leader underpinned
Reputation as innovation leader underpinned BLX implant 19 Mini implant 18 PURE 2-piece ceramic implant Grand Morse implant 17 N!ce fully-crystallized glass-ceramic Grand 16 ProArch edentulous solution Morse Small diameter implant ( 2.9mm) Grand Morse 15 BLT implant 14 Roxolid-on-all Short implant
Slide 14: Targeted investments in high growth markets
Targeted investments in high growth markets Implant volumes in key markets (million units in 2017) Penetration: Implants per 10’000 inhabitants INDIA 0.3 2 CHINA / HONG KONG 1.4 10 JAPAN 0.4 33 UK-IRELAND 0.2 38 USA 2.7 74 RUSSIA 1.4 160 TURKEY 0.8 98 BRAZIL 2.4 118 GERMANY 1.3 160 ITALY 1.2 197 SPA
Slide 15: More diversified and less dependent on mature markets in Europe
More diversified and less dependent on mature markets in Europe Straumann Group regional revenue split 2011 and 9M 2018 2011 2018 LATAM 5% Easter EU & MEA Easter EU & MEA 3% 7% LATAM 9% APAC 15% APAC Europe 19% 36% North America 22% Europe 55% North America 29% 16
Slide 16: Key market trends
Key market trends Patients want aesthetically 1 Digitization of workflows pleasing, affordable solutions and shorter treatments 4 Improved materials and Consolidation of 2 production methods manufacturers 5 High growth markets Customer Better informed and 3 outside Europe base alters demanding patie
Slide 17: Industry trends reflected in our strategic priorities
Industry trends reflected in our strategic priorities DRIVE OUR HIGH TARGET UNEXPLOITED MARKETS BECOME A TOTAL SOLUTION PERFORMANCE CULTURE AND SEGMENTS PROVIDER IN ESTHETIC DENTISTRY 3 strategic priorities broken down 55 18 into 55 Must-win initiatives (MWI)
Slide 18: Tapered and non-premium segments represent large potential for future share gains
Tapered and non-premium segments represent large potential for future share gains Market value Market volume (implant & abutments) (Implant fixtures) Fully tapered Parallel Main players: walled Nobel Biocare, Non- BioHorizons, Premium MIS, Implant Direct, Megagen CHF 3.9bn 25 million Neodent, Anthog
Slide 19: Our present implant portfolio
Our present implant portfolio Material Surface treatment Design Parallel-walled Parallel-walled Apically tapered Fully tapered Fully tapered Parallel-walled Tissue Level Bone Level Bone Level Bone level / external Bone level / internal Tissue Level / ceramic Straumann Straumann Straumann Straumann S
Slide 20: Latest addition to our portfolio
Latest addition to our portfolio BLX PURE 2-piece ceramic Mini implant First Straumann fully tapered 2nd generation ceramic implant 2.4mm diameter, apically implant increases prosthetic flexibility tapered for high primary Designed for optimum primary Designed for optimum stability stabili
Slide 21: Straumann 'BLX' key benefits
Straumann ‘BLX’ key benefits • Perfected for • ‘Cut, Collect, Condense’ • One connection • Trusted premium Swiss immediacy; broad - high bone-to-implant brand • Slim & under- range of indications contact contoured prosthetics • Roxolid® enabling • Business • Designed for optimal 3.75mm diameter for
Slide 22: Unroll the non-premium business worldwide
Unroll the non-premium business worldwide Medentika home market Premium Premium Premium Premium Premium Zinedent home market Non- Non- Non- Equinox home Non- market premium Non- premium Non- premium Premium premium Neodent home Premium market Non-premium offering (current) Future non-premium markets
Slide 23: Digital penetration still in the early innings
Digital penetration still in the early innings % of GPs using intra-oral scanners (IOS), LHS % of dentists using IOS AND chairside milling equipment, RHS UK 9% UK 5% Italy 11% Italy 4% US 24% US 13% Germany 12% Germany 11% 24 Source: Straumann proprietary GP survey in US, DE, IT, and UK; samples siz
Slide 24: Today our digital offer supports all customer groups and needs
Today our digital offer supports all customer groups and needs Scanning Design Production Final products Dental office Dental laboratory Straumann® CARES® Scan & Shape Central milling 25
Slide 25: More than an implant manufacturer
More than an implant manufacturer Implant provider ‘12 Total solution provider tooth replacement ‘16 Total solution provider esthetic dentistry ‘18 26
Slide 26: Competitive landscape
Competitive landscape 2017 Total Implant dentistry dentistry1 Others (400+) 22% Straumann 24% Group Market ~26-28 bn >4 bn Henry Schein STMN Group Leading players Dentsply Sirona Danaher Osstem 6% Danaher Dentsply Sirona 7% Zimmer 19% Danaher Straumann share 4% 24% Biomet 8% 14% Straumann position #
Slide 27: Broader portfolio helps to address needs of GPs
Broader portfolio helps to address needs of GPs % of patients treated by GP per month by indication Caries 40-50% Periodontitis 10-20% Crowns/Inlays 7-12% Implant restoration 5-8% Implant surgery 1-5% Orthodontics 3-10% Tooth whitening Up to 5% 28 Source: Straumann proprietary GP survey in US, DE, I
Slide 28: Biomaterials
Desire for esthetics increasing – periodontal disease increasing due to aging population Disease & esthetic driven scope expansion Prevention of oral disease & tooth loss Prevention of implant loss Tooth Implant loss loss Natural tooth Implant tooth Healthy Mild - moderate Severe Tooth Healthy Mild
Slide 29: Pilot initiated for GP portfolio additions incl. Preventive
Pilot initiated for GP portfolio additions incl. Preventive GP portfolio additions GP pilot sales force Oct 2018 30
Slide 30: Prevalence: 75% of the population have misaligned teeth
Prevalence: 75% of the population have misaligned teeth Prevalence of malocclusion & crooked teeth, by severity grade1 Global orthodontic market, by age group2 No treatment 25% required1 15% Purely esthetic needs Global clear aligner market, by age group2 Primary focus on mild-to-moderate Mild to se
Slide 31: Clear Aligners is an underpenetrated segment and a key growth driver for us
Clear Aligners is an underpenetrated segment and a key growth driver for us People / eligible patients in million (2017) 1’800 NAM EMEA LATAM APAC 1’350 60% eligible 15-17% treated 11 6.6 1.8 U P P E R A N D MI D D L E PREVALANCE OF ORTHODONTIC CASES TREATABLE W ITH CASES CLASS MI S A L I G N E D T
Slide 32: Intra-oral scanning and AI are an integral component of the solution
Intra-oral scanning and AI are an integral component of the solution Data capturing Treatment planning Measuring the progress remotely Current state shared with dentist Match data with planning data Move to the next aligner or call patient in, respectively 33
Slide 33: Tailor made products/solutions for each customer group
Tailor made products/solutions for each customer group Solution/customer Surgeon Perio Ortho GP GP non- Lab DSO matrix surgical surgical Implant surgical X X X X Implant prosthetics X X X X Digital workflow X X X X X X X Ortho X X X X Toothborne / C&B X X X X Periodontitis X X X X X Peri-implantitis
Slide 34: Looking ahead
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Slide 35: Main growth drivers for the coming years
Main growth drivers for the coming years Preventive dentistry could add up to Growth CHF 2bn to Group’s addressable potential market Preventive dentistry Expansion into esthetic dentistry Preventive Implantology Address unexploited Clear markets and segments Aligners Biomaterials Market share gains
Slide 36: Growth potential in all segments
Growth potential in all segments Est. segment size Our current Market segments Growth rate (in CHF bn) market share Biomaterials 0.6 High-single digits Implantology2 4.3 Mid-single digits CAD/CAM 1.5 Double digits equipment CAD/CAM Double digits 3.7-3.9 prosthetics (All ceramic) Clear aligners 2.0 >
Slide 37: 2018 outlook raised
2018 outlook raised Barring unforeseen circumstances Market Global implant market expected to grow 4-5% Our revenue Full-year organic revenue growth growth in the high-teen percentage range Further improvement in EBITDA margin; Profitability1 EBIT margin stable 38 1 Excluding exceptional effects fro
Slide 38: Questions & answers
Questions & answers straumanngroup
Slide 39: 12th edition of 'Analyst Talk' feat. BNP Exane Paribas
12th edition of ‘Analyst Talk’ feat. BNP Exane Paribas From left to right: Marco Gadola, Straumann Group CEO, Julien Dormois, senior analyst at Exane BNP Paribas 40
Slide 40: Calendar of upcoming events
Calendar of upcoming events 2018/19 Event Location 05 December Berenberg Equities Conference Pennyhill (UK) 13 December Corporate Governance meetings Paris 10-11 January Baader Helvea Swiss Equities Conference Bad Ragaz (CH) 19 February Full-year results conference Basel HQ 05 April 2019 AGM Messe B
Slide 41: Growth strategy pays off
Growth strategy pays off in CHF m 2013 2014 2015 2016 2017 9M 2018 5-year average Revenue 679.9 710.3 798.6 917.5 1'112.1 989.0 Organic revenue growth in % 1.2 6.4 9.1 13.1 15.7 18.0 12.5 Acquisiton / Divesture effect in % -0.8 0.0 9.5 0.8 4.1 5.0 3.9 Change in l.c.% 0.4 6.4 18.6 13.9 19.8 23.0 16.3
Slide 42: Straumann's currency exposure
Straumann’s currency exposure Revenue breakdown FY20171 FX sensitivity Average exchange rates (rounded) CHF (+/- 10%) on full-year... Other 9% 14% 2017 H1 2018 9M 2018 Revenue EBIT BRL 1 EURCHF 1.09 1.17 1.16 +/- 35m +/- 21m 10% 1 USDCHF 0.99 0.97 0.97 +/- 29m +/- 14m EUR JPY 31% 100 BRLCHF 28.37 28
Slide 43: Thank you
Thank you Investor.relations@Straumann.com