Straumann Holding Ag · SIX:STMN

Straumann — H1 2013 Earnings Presentation

16 slides from Straumann's earnings presentation, Aug 20, 2013

  1. Slide 1: 2013 Half-year results

    2013 Half-year results Analysts’ & Media Conference Basel, 20 August 2013 Disclaimer This presentation contains certain “forward-looking statements”, which can be identified by the use of terminology such as “will”, “guidance”, “would”, “prevailing”, “still be able to”, “should”, “confidence in achi

  2. Slide 2: Highlights: What is happening in the markets?

    Highlights Marco Gadola CEO What is happening in the markets? Weak economy in Europe  Consumer confidence still fragile  Raising healthcare costs and co-pay levels reduce disposable income for dental treatment  Market still receding as patients postpone or take cheaper/inferior options  Many pra

  3. Slide 3: What is happening in the markets?

    What is happening in the markets? Fundamental shifts  To lower-cost alternatives  Dental labs under pressure to find optimal levels of in-house production, outsourcing, efficiency and quality  Role of General Practitioners (GPs) increasing in implant dentistry New technologies  Digital procedure

  4. Slide 4: Business and regional review

    Resolute cost reduction measures bearing fruit without impairing selling power REVENUE KEY PERFORMANCE H1 GROSS MARGIN CHF 355m +6% (organic l.c.) 78% Slightly down on prior year in N. America (+11% in Q2); Margin expansion through despite acceleration in Q2 Europe and Japan remain difficult efficie

  5. Slide 5: Margins improved on all levels

    Margins improved on all levels 1 in CHF million H1 2012 H1 2013 Change excl. FX adjusted 2 vs. adjusted exceptionals Net Revenue 361.7 361.0 354.8 (1.7%) 278.4 277.4 276.2 Gross profit Gross profit margin 77.0% 76.9% 77.8% 71.0 70.6 74.5 80.0 EBITDA EBITDA margin 19.6% 19.6% 21.0% 22.5% (2.9%) 54.6

  6. Slide 6: SG&A savings lift EBIT margin

    SG&A savings lift EBIT margin In % of revenue 2.2% -0.6% 0.1% -1.6% 0.9% -0.1% 17.6% 16.0% 15.1% 15.0% 2 EBIT margin FX effect FX adj. EBIT Higher gross SG&A Higher R&D Other income EBIT margin Exceptionals EBIT margin H1 2012 margin H1 profit savings H1 2013 H1 2013 20121  Straumann 1 One-time pro

  7. Slide 7: Improved cash flow despite restructuring charges

    SG&A savings lift EBIT margin In % of revenue 2.2% -0.6% 0.1% -1.6% 0.9% -0.1% 17.6% 16.0% 15.1% 15.0% 2 EBIT margin FX effect FX adj. EBIT Higher gross SG&A Higher R&D Other income EBIT margin Exceptionals EBIT margin H1 2012 margin H1 profit savings H1 2013 H1 2013 20121 1 One-time project costs o

  8. Slide 8: North America partly offsets weakness in Europe

    North America partly offsets weakness in Europe In CHF million (1.9%) in CHF (0.9%) organic (0.7) (3.0) (8.0) 5.5 (0.8) 0.1 361.7 358.0 354.8 Change organic (0.2%) (0.8%) (3.9%) 6.3% (1.6%) 0.7% Revenues H1 FX Effect iTero Effect Revenues H1 Europe North APAC ROW Revenues H1 2012 2012 @ FX America 2

  9. Slide 9: Strong growth in North America; Europe flat

    Strong growth in North America; Europe flat Revenue change (organic)  Revenue flat in Q2 (l.c. and organic)  All countries improve in Q2 and Europe 0.2% benefit from shift in selling days 56% after disappointing start to the year -5.3% -5.6% -7.0% -7.7% (H1 -4%)  France, UK and Switzerland return

  10. Slide 10: Building for the future

    Building for the future Marco Gadola CEO Our goal of better profitability… Underlying EBIT margin >25% 25% >20% 20% 15-20% >15% 15% 10-15% 10% Straumann Dental benchmark1 2008 2012 E2013 Mid term  Straumann 1 Peers comprise Nobel Biocare, Dentsply, Patterson, Henry Schein, Osstem, and Sirona. 20 10

  11. Slide 11: ... and how we will achieve it

    ... and how we will achieve it Prior to 2012 Moving forward  Cost reduction measures implemented in 2012 and 2013 Lean, high  Cost discipline inherent to new  Organization based on ‘bullish’ expectations, which performance Straumann culture have not materialized organization  New organizational

  12. Slide 12: Tapping exciting growth opportunities

    ... and how we will achieve it Prior to 2012 Moving forward  Cost reduction measures implemented in 2012 and 2013 Lean, high  Cost discipline inherent to new  Organization based on ‘bullish’ expectations, which performance Straumann culture have not materialized organization  New organizational

  13. Slide 13: Solutions to suit customer segments

    ...with solutions to suit: Target unexploited growth markets Surgeons customer segments GPs Premium affordability Value Spain local market conditions  Straumann 25 Outlook 13

  14. Slide 14: Outlook 2013 and beyond

    Outlook 2013 and beyond Barring unforeseen circumstances  While positive developments are expected to continue in North America and other underpenetrated markets, Straumann expects the effects of the weak economy and consumer sentiment to continue in Europe, constraining overall revenue development

  15. Slide 15: Slight currency headwind expected for the full year

    Slight currency headwind expected for the full year Revenue breakdown 2012 Average exchange rates (rounded) CHF 11% FY 2012 H1 2013 EURCHF 1.21 1.23 Other EUR 21% 41% USDCHF 0.93 0.93 JPYCHF 1.17 0.99 Straumann’s major exchange rates since 2012 (indexed to 100) USD/CAD/AUD 27% 110 Cost breakdown 201

  16. Slide 16: Your contacts

    Your contacts Fabian Hildbrand Corporate Investor Relations Phone +41 (0)61 965 13 27 Mobile +41 (0)79 392 80 32 Email fabian.hildbrand@straumann.com Mark Hill Thomas Konrad Corporate Communications Phone +41 (0)61 965 13 21 Phone +41 (0)61 965 15 46 Email mark.hill@straumann.com Email thomas.konrad

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