Straumann Holding AG · SIX:STMN
Straumann — Vontobel Summer Conference 2014
36 slides from Straumann's conference presentation, Jun 11, 2014
Slide 1: Turning a new page
Turning a new page Vontobel Summer Conference, 11 June 2014 Thomas Dressendörfer, CFO
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: Regional and business review
Regional and business review
Slide 4: Steady outperformance except for time of restructuring
Steady outperformance except for time of restructuring Global market for dental implants/ abutments (2013: CHF 3bn 2013)2 Straumann 19% Nobel Others Biocare 39% 17% Dentsply Zimmer / Implants Biomet 3i 13% 12% 1 1Market growth data based on total business for Straumann, Nobel Biocare, Zimmer Dental/
Slide 5: Good growth in Q1 across all regions; Europe contributes >40% to growth
Good growth in Q1 across all regions; Europe contributes >40% to growth In CHF million 2.9% in CHF 6.0% in l.c. 2.2 2.2 1.7 ‐5.2 4.1 179.8 174.8 Change in l.c. 169.6 (3.1%) 4.1% 5.2% 8.3% 28.6% Revenues Q1 FX Effect Revenues Q1 Europe North America APAC ROW Revenues Q1 2013 2013 @ FX 2014 2014 2013
Slide 6: Growth led by implants
Growth led by implants Implants Restorative Regeneratives 6
Slide 7: Highly successful ITI World Symposium
Highly successful ITI World Symposium – platform to promote new research and solutions Leading academic event in oral implantology ~4200 participants Straumann Corporate Forum attended by >2000 dental professionals Special promotions offered 7
Slide 8: A new attractive pricing concept in Europe
A new attractive pricing concept in Europe ‘More value, same price’ campaign 2013 2014 Roxolid® established as standard material Ceramic Upgrade to Roxolid® SLA ® and SLActive® Roxolid implants with LOXIM™ transfer piece at SLActive same price as titanium equivalents with old transfer piece Ti R
Slide 9: Good strategic progress
Good strategic progress straumann simply doing more
Slide 10: Pressure to adapt to new market realities
Pressure to adapt to new market realities General practitioner (GP) segment gaining importance with different needs than the specialists segments Female dentists becoming more and more important Value players gaining share on behalf of premium players Young dentist with different needs when it comes
Slide 11: GPs are increasingly important and have different preferences
GPs are increasingly important and have different preferences 15 900 60 600 29 700 GPs place 2008 implants 87 400 2014 GPs restore but don’t place Implant specialists implants GPs placing implants GPs restoring implants 11 Source: iData Research, US data, 2012
Slide 12: Pressure to adapt to new market realities
Pressure to adapt to new market realities General practitioner (GP) segment gaining importance with different needs than the specialists segments Female dentists becoming more and more important Value players gaining share on behalf of premium players Young dentist with different needs when it comes
Slide 13: Pressure to adapt to new market realities
Pressure to adapt to new market realities General practitioner (GP) segment gaining importance with different needs than the specialists segments Female dentists becoming more and more important Value players gaining share on behalf of premium players Young dentist with different needs when it comes
Slide 14: Expanding our offering into the value segment through a multi-brand strategy
Expanding our offering into the value segment through a multi-brand strategy 2011: 44% equity stake Digital CADCAM and 2013: 51% equity stake guided surgery solutions German leader for cost‐ 2013: 30% equity stake effective standard High‐end prosthetic solutions 2014: Convertible bond prosthetics 20
Slide 15: Pressure to adapt to new market realities
Pressure to adapt to new market realities General practitioner (GP) segment gaining importance with different needs than the specialists segments Female dentists becoming more and more important Value players gaining share on behalf of premium players Young dentist with different needs when it comes
Slide 16: Pressure to adapt to new market realities
Pressure to adapt to new market realities General practitioner (GP) segment gaining importance with different needs than the specialists segments Female dentists becoming more and more important Value players gaining share on behalf of premium players Young dentist with different needs when it comes
Slide 17: Combining strengths with botiss to provide complete regenerative solutions worldwide
Combining strengths with botiss to provide complete regenerative solutions worldwide Exclusive rights for Straumann to distribute botiss products in most Western/Central European countries and the Americas Botiss to distribute Emdogain® in Germany, parts of Eastern Europe and Middle East Leadi
Slide 18: Pressure to adapt to new market realities
Pressure to adapt to new market realities General practitioner (GP) segment gaining importance with different needs than the specialists segments Female dentists becoming more and more important Value players gaining share on behalf of premium players Young dentist with different needs when it comes
Slide 19: Straumann CARES Visual 8.8 system
Straumann CARES Visual 8.8 system Further streamlined prosthetic solutions and broader range of product combinations New X-STREAM functionality in CARES Visual Designing elements from one single scan Milled in controlled environment for excellent fit and consistent quality Turnaround time
Slide 20: New prosthetic components for fixed full-arch restorations launched at ITI congress
New prosthetic components for fixed full-arch restorations launched at ITI congress Enhanced screw-retained prosthetic solution especially for edentulous patients New range of screw-retained implant abutments offering increased flexibility Low profile, different gingiva heights 0°, 17° and 3
Slide 21: The “Swiss made” has affected our financials...
The “Swiss made” has affected our financials... Costs 1.8 1.6 1.4 1.2 1 0.8 Sales 0.6 2008 2009 2010 2011 2012 2013 USDCHF EURCHF JPYCHF 21
Slide 22: ...but we made a first step towards restoring historic l.c. margins in 2013
...but we made a first step towards our goal of restoring historic l.c. margins in 2013 Underlying EBIT margin 27.4% 25% 20.7% 20% @ 2013 FX rates 15-20% 18.2% 15% 14.5% 10-15% 10-15% 10% 2008 2012 2013 Straumann Dental benchmark1 1 Peers comprise Nobel Biocare, Dentsply, Patterson, Henry Schein, Os
Slide 23: 2014 outlook helped by an exciting roll-out program
2014 outlook helped by an exciting roll-out program
Slide 24: Straumann PURE Ceramic Implant for esthetic, metal-free solutions
Straumann PURE Ceramic Implant for esthetic, metal-free solutions First clinically validated ceramic implant to reach market1 Made of zirconium-dioxide ceramic ZLA™ surface comparable to SLA®, designed to offer a structure for cell attachment Natural translucent ivory color Monotype design
Slide 25: Roxolid minimally invasive implants now available throughout Europe
Roxolid® minimally invasive implants now available throughout Europe Shorter Small-diameter and 4mm short versions reduce invasiveness by avoiding bone augmentation procedures Five-year clinical data presented Thinner Paradigm shift: Short implants can lead to fewer complications, less morbidi
Slide 26: Value-adding solutions to meet clinician and patient needs
Value-adding solutions to meet clinician and patient needs abutments Ceramic New SR implant High Ceramic implants Smaller, less Fixed Level of sophistication invasive implants immediate edentulous solutions Implants for Straumann Roxolid Variobase narrow spaces Esthetic, fast implant Cost-effective,
Slide 27: Outlook for 2014 unchanged
Outlook for 2014 unchanged Barring unforeseen circumstances We expect the global implant market to develop positively in 2014 and our revenue to grow in the low- single-digit range (l.c.). After a promising Q1, we expect a softer Q2 given the later Easter break this year. We will continue to i
Slide 28: While US and Japan are improving, the European economy may remain fragile
While US and Japan are improving, the European economy may remain fragile for some time Unemployment rate Private consumption 28 Source: NZZ newspaper April 2014
Slide 29: We aim to bring our EBIT margin back to 20%+
We aim to bring our Ebit margin back to 20%+ Underlying EBIT margin 27.4% 25% >20% 20.7% 20% @ 2013 FX rates 15-20% 18.2% 15% 14.5% 10-15% 10-15% 10-15% 10% 2008 2012 2013 2014/15 Straumann Dental benchmark1 1 Peers comprise Nobel Biocare, Dentsply, Patterson, Henry Schein, Osstem, and Sirona. 29
Slide 30: Questions & Answers
Questions & Answers 30 Z straumann
Slide 31: Calendar of upcoming events
Calendar of upcoming events 2014 11-12 June Vontobel Swiss Conference Interlaken/CH 13 June Deutsche Bank Swiss & German Conference Berlin 26 August Half-year 2014 results conference Basel HQ 23 October Third quarter sales Audio webcast 2015 27 February Full-year 2014 results conference Basel HQ Det
Slide 32: Your IR contacts
Your IR contacts Fabian Hildbrand Corporate Investor Relations Tel. +41 (0)61 965 13 27 Email investor.relations@straumann.com Rahel Schafroth Investor Relations Coordinator Tel. +41 (0)61 965 16 78 Email rahel.schafroth@straumann.com 32
Slide 33: Straumann’s currency exposure
Straumann’s currency exposure Revenue breakdown 2013 Other 20% Average exchange rates (rounded) FX sensitivity (+/- 10%) on... EUR FY 2013 YTD 2014 Revenue EBIT 40% EURCHF 1.23 1.22 +/- 25 million +/- 15 million USD / CAD / USDCHF 0.93 0.90 +/- 17 million +/- 7 million AUD 28% JPYCHF 0.95 0.87 +/- 4
Slide 34: Organization adapted to match market development
Organization adapted to match market development Global workforce (year-end) Headcount reduced by 300 to pre- 2 517 2 452 economic crisis level 2 361 Overall restructuring/downsizing costs in 2 201 2 170 2 217 2013 amount to a net CHF 8m1 An incremental CHF 10 million savings in 2014 expected
Slide 35: Investment in MegaGen to drive expansion in value implant segment in Asia
Investment in MegaGen to drive expansion in value implant segment in Asia Founded in 2002, MegaGen is one of Korea’s fastest- growing dental implant companies Straumann purchases 3%-interest-bearing convertible bonds for a total of CHF 27 million Capital injection will accelerate MegaGen’s exp
Slide 36: A combination to eclipse the market leader
A combination to eclipse the market leader Straumann botiss Geistlich Bone allografts * Bone xenografts Bone synthetic grafts Bone blocks Custom bone blocks Bone rings Collagen cones Fleeces & sponges Membranes Soft-tissue grafts Biologics 36 *US only