Straumann Holding Ag · SIX:STMN
Straumann — FY2014 Earnings Presentation
24 slides from Straumann's earnings presentation, Feb 27, 2015
Slide 1: 2014 Full-year results
26.02.2015 2014 Full-year results Conference presentation for investors, analysts & media Basel, 27 February 2015 1 Disclaimer This presentation contains certain forward-looking statements that reflect the current views of management. Such statements are subject to known and unknown risks, uncertain
Slide 2: Full-year highlights
26.02.2015 Dr Peter Hackel, Straumann’s new CFO Rejoined Straumann on 1 December 2014 Oerlikon Drive Systems (4 years): CFO Straumann (6 years): Business Development, Head Group Controlling Geistlich Biomaterials (2 years): Director Orthopedic Marketing & Sales McKinsey (2 years): Consulta
Slide 3: Strong growth and strategic expansion
26.02.2015 Strong growth and strategic expansion REVENUE BEST PERFORMERS GROWTH STRATEGY CHF Geographic & segment 710m APAC & RoW expansion FY: +6%1 14% growth1 in both regions New hybrid approach to dynamic Q4: +9%1 Chinese market; further investment in Instradent (value) platform EMERGING MARKETS
Slide 4: Profitable growth
26.02.2015 Profitable growth Organic revenue Adj. gross margin 1 Adj. EBIT margin1 Adj. EPS1,2 growth1 (in %) (in %) (in CHF) +6.4% +20bps +330bps +20% 710.3 20.9 667.4 8.40 78.5 78.7 17.6 7.00 2013 2014 2013 2014 2013 2014 2013 2014 1 Excl. currency exchange rate effects and restructuring costs in
Slide 5: Business and regional review
26.02.2015 Business and regional review Peter Hackel, CFO Significant profitability improvements in CHF million FY 2014 FY 2013 Change (rounded) excl. FX and excl. FX and Reported Reported excl. FX Reported exceptionals exceptionals Revenue 710.3 679.9 667.4 667.4 Organic growth% 6.4% Gross profit 5
Slide 6: Higher implant sales offset FX and mix effects
26.02.2015 Higher implant sales offset FX and mix effects In % of revenue, rounded +20 bps 0.3% (1.0%) 0.9% (0.3%) 78.8% 78.7% 78.5% Gross profit FX effect Adj. gross profit Price / volume / Inventory COGS (higher Gross profit margin margin mix change1 volumes) margin 2013 2014 1 Change in finished
Slide 7: Strong cash generation constrained by working capital increase
26.02.2015 Strong cash generation constrained by working capital increase In CHF million 27.8 (16.1) (5.5) (2.1) (2.1) (7.6) (5.2) 139.2 128.4 FCF margin FCF margin 20.5% 18.1% Free cash EBITDA Higher net Higher Higher Higher tax Difference in Various Free cash flow 2013 improvment working CAPEX int
Slide 8: Strong finish in Europe; share gains in N. America
26.02.2015 Strong finish in Europe; share gains in N. America Revenue change (organic) Europe grew 8% in Q4 amid tough 7.6% competition 4.1% 2.7% Europe 56% Best quarterly growth rate since 2008, contributing almost half of (1.4%) (1.5%) overall growth in Q4 (3.4%) 53% Strong performers: UK, S
Slide 9: Double-digit growth in implant volumes drives revenue increase
26.02.2015 Double-digit growth in implant volumes drives revenue increase Implants Restorative Regeneratives 17 Foreseeable impact of currency rates on 2015 results Development of Straumann’s main currency Theoretical FX impact on 2014 revenue and EBIT exchange rates YTD 2015 Ø 16 January – 27 Febru
Slide 10: Update on our strategic progress
26.02.2015 Mitigating the impact of the strong Swiss franc Short-term measures expected to deliver >CHF 20 million: Compensation reductions for Directors and all employees in CH; 96% of staff in agreement Hiring and replacement only to fill business-critical positions Tighter cost control (e.g
Slide 11: Mastering challenges and turning them into opportunities
26.02.2015 Mastering challenges and turning them into opportunities CHF Strong Swiss franc Limitations of our current culture GP Increasing number of GPs placing implants BRIC Future growth markets are outside Western Europe Increase in discounters claiming compatibility Growing segment of corporate
Slide 12: Straumann USA lacks presence in GP segment
26.02.2015 Straumann USA lacks presence in GP segment Estimated US dental implant market share by 30% customer segment 20% 10% 0% Estimated share of US GP market based on survey data1 Estimated overall implant market share (units) 2 1 Straumann dentists survey of 120 GPs performed by Exevia, Fall 20
Slide 13: Interdisciplinary relationship between specialists, GPs and labs
26.02.2015 Interdisciplinary relationship between specialists, GPs and labs Product manufacture, coordination Mentoring, GP Targeting and customer coaching leads Experienced surgeon Education 25 Value and technology platforms expand Germany Spain Brazil Germany (Option 30%) (30%) (49%) (51%) Canada
Slide 14: The latest addition to our Instradent platform
26.02.2015 The latest addition to our Instradent platform A leading local dental implant company in Taiwan Instradent to acquire approximately 43% of T- Plus in March/April 2015; option to increase to 90% by 2020 T-Plus has the products, regulatory clearance and customer proximity to penetrate
Slide 15: Patient expectations have changed
26.02.2015 Patient expectations have changed – especially for multi-teeth interventions Incidence of tooth loss among middle-aged Today patients expect: and elderly population1 fixed, reliable, natural-looking, 80% >1/4 HAVE LOST long-lasting replacements HALF THEIR NATURAL TEETH 60% minimal dis
Slide 16: Addressing a significantly larger market through partnership and licenses
26.02.2015 Addressing a significantly larger market through partnership and licenses US regeneratives market by category (market estimated at USD 260m in 20141) Allograft Synthetic 38% 4% Straumann Allograft Straumann Tissue Bone Ceramic regeneration 8% Membrane 34% >2014 Straumann Emdogain >2015/16
Slide 17: Outlook 2015
26.02.2015 Outlook 2015 Confirmation that we are working on the right things Our strategic priorities: Drive Straumann high performance culture & organization Target unexploited growth markets & segments Become total solution provider for tooth replacement 34 17
Slide 18: Guidance 2015
26.02.2015 Guidance 2015 Barring unforeseen circumstances Further improvement in global implant market expected Revenue expected to grow organically in mid-single-digit range Further investments in strategic growth markets and projects Cost reduction measures including compensation reduction
Slide 19: Questions & Answers
26.02.2015 Questions & Answers 37 2014 Annual report now available online 38 19
Slide 20: Calendar of upcoming events
26.02.2015 Get an update on our latest innovations Cologne, 10‐14 March SEE YOU SOON IN COLOGNE! Hotel Dorint If you would like to join us for this event, please write us an email at investor.relations@straumann.com 39 Calendar of upcoming events 2015 27 February Full‐year 2014 results Basel HQ 05 M
Slide 21: Straumann's currency exposure
26.02.2015 Straumann’s currency exposure Revenue breakdown 2013 Average exchange rates (rounded) FX sensitivity (+/- 10%) on... Other 2014 2013 Revenue EBIT 21% EURCHF 1.21 1.23 +/- 27 million +/- 17 million EUR USDCHF 0.92 0.92 +/- 17 million +/- 7 million 39% USD / JPYCHF 0.86 0.95 +/- 4 million +
Slide 22: Perception survey last December
26.02.2015 Perception survey last December: Respondents... ...by job ...by country UK 5% Fund Manager 5% 2% US 23% Scandinavia 30% 40% Buy-side analyst France 5% 2% Switzerland Sell-side analyst 54% 9% Germany 25% Equity sales Other Gizmo survey with a sample size of 59 respondents out of approx. 22
Slide 23: Why are you a shareholder / not invested at the moment
26.02.2015 Why are you a shareholder / not invested at the moment (Top 4 responses ranked by order) Why are you a shareholder? Why are you not invested? Likely outperform its peers and can Industry growth does not match leverage its fixed cost base (100%) valuation Find management convincing Increas
Slide 24: Your contacts
26.02.2015 Your contacts Fabian Hildbrand Corporate Investor Relations Tel. +41 (0)61 965 13 27 Email investor.relations@straumann.com Mark Hill Thomas Konrad Corporate Communications Tel. +41 (0)61 965 13 21 Tel. +41 (0)61 965 15 46 Email mark.hill@straumann.com Email thomas.konrad@straumann.com 47