Straumann Holding AG · SIX:STMN
Straumann — FY2002 Earnings Presentation
28 slides from Straumann's earnings presentation, Mar 13, 2003
Slide 1: Full Year Results 2002 Analyst- & Media Conference
Full Year Results 2002 Analyst- & Media Conference Zurich, 13 March 2003
Slide 2: Contents
Contents • Highlights • Financial results • Outlook 13 March 2003 2
Slide 3: Continued market share gain
Continued market share gain Market shares of global dental implant market 2002 (estimates) 100%= CHF 1.4 Billion* Nobel Biocare Others** (Branemark, Replace) 26% 28% •Straumann gained approx. 3% market share Centerpulse Dental 9% in 2002 (Swissplus, Spline) •Overall market growth 24% 13% estimated a
Slide 4: Market leader in Europe & Asia
Market leader in Europe & Asia Straumann market position Region’s share of world market Region 1 2 3 4 in % / (Mio. CHF) Europe 40% -45% (~ 670) North America 35% - 40% (~ 470) Asia 15% (~ 200) RoW 5% (~ 60) Source: Straumann estimates 13 March 2003 4
Slide 5: Comprehensive training and education offering
Comprehensive training and education offering International Team for Implantology (300 members worldwide) Training&&Education Training Education Research Development 1‘700courses 1‘700 courseswith with 110 realized research 40‘000participants participants All Straumann product 40‘000 projects since
Slide 6: Continuous product introductions
Continuous product introductions 2002 2003 Prosthetics synOcta 1.5 synOcta cemented In-Ceram for synOcta 2.5 Surgical WNI healing caps and ITI TE implant closure screw New Prosthetics Planning Kit Instruments Ultrasonic Cleaning Cassette New Surgical Case 13 March 2003 6
Slide 7: Build-up of Biologics effort
Build-up of Biologics effort A key step in bringing to market issue regeneration products Potential applications: Guided Bone regeneration •Dental bone defects Hydrogel carrier/matrix •Filling extraction sockets Licensing and Supply (Proprietary technology Agreement with Nektar •Ridge expansion from
Slide 8: Contents
Contents • Highlights • Financial results • Outlook 13 March 2003 8
Slide 9: Key figures – Operating Performance
Key figures – Operating Performance growth growth CHF million 2001 2002 in % in % Net sales 231.6 21.8 274.9 18.7 EBIT 61.9 75.1 20.9 21.3 in % sales 26.7 27.3 Net profit 40.7 56.0 8.3 37.4 in % sales 17.6 20.3 EPS (CHF) 2.64 3.62 13 March 2003 9
Slide 10: Sales development
Sales development YoY growth in million CHF in % 300 274.9 40% 250 231.6 30% 200 150 20% 21.8% 100 18.7% 10% 50 0 0% 2001 2002 growth % in locals 24.3% 22.6% price effect 1.0% 3.9% 13 March 2003 10
Slide 11: Sales development per region
Sales development per region CHF million 1Q 02 2Q 02 3Q 02 4Q 02 Total Europe 42.8 44.2 35.6 43.0 165.6 YoY growth 16.7% 21.0% 13.0% 18.1% 17.4% YoY growth locals 20.0% 25.4% 15.6% 18.2% 19.9% North America 17.2 20.8 17.5 19.3 74.8 YoY growth 20.3% 30.7% 13.0% 27.4% 22.9% YoY growth locals 17.3% 41.
Slide 12: Operating profit (EBIT)
Operating profit (EBIT) margin in CHF million in % 75.1 80 40% 61.9 60 30% 26.7% 27.3% 40 20% 20 10% 0 0% 2001 2002 growth in % 20.9% 21.3% 13 March 2003 12
Slide 13: Strong underlying performance
Strong underlying performance CHF million 5.6 82.9 75.1 2.2 2002 Impaired currency 2002 development effect cost Note: Excluding impairment and currency effects margin expansion to 29.2% 13 March 2003 13
Slide 14: Efficency gains, focus on R&D
Efficency gains, focus on R&D In % of In % of Change 2001 sales 2002 sales in % Net Sales 231.6 274.9 +18.7 Cost of goods sold 46.6 20.1 54.4 19.8 +16.6 Gross profit 185.0 79.9 220.8 80.2 +19.3 Selling costs 84.0 36.3 97.3 35.4 +15.9 General admin. Costs 15.3 6.6 17.1 6.2 +12.2 Research and 23.9 10.
Slide 15: Operating performance per semester
Operating performance per semester In % of In % of H1/2002 sales H2/2002 sales 2002 Net Sales 141.3 133.6 274.9 Cost of goods sold 26.7 18.9 27.7 20.7 54.4 Gross profit 114.8 80.1 106.0 79.3 220.8 Selling costs 47.7 33.8 49.6 37.1 97.3 General admin. Costs 10.3 7.3 6.8 5.1 17.1 Research and developm
Slide 16: Net income
Net income margin in CHF million in % 80 40% 60 56.0 30% 40.7 40 20% 17.6% 20.3% 20 10% 0 0% 2001 2002 growth in % 8.3% 37.4% 13 March 2003 16
Slide 17: Key figures – Financial Condition
Key figures – Financial Condition CHF million 2001 in % sales 2002 in % sales Net working capital 35.9 15.5 41.1 14.9 Cash flow from 46.8 20.2 69.7 25.3 operating activities Investments 19.6 8.5 22.8 8.3 Free Cash flow 27.2 11.7 46.9 17.0 Equity ratio 69.8% 75.3% 13 March 2003 17
Slide 18: Working capital
Working capital In % of In % of Change 2001 sales 2002 sales in % 39.3 17.0 38.0 13.8 -3.3 Inventory 29.1 12.6 33.6 12.2 +15.5 Acc. Receivables 7.0 3.0 7.2 2.6 +2.9 Other current assets Current liabilities -39.4 17.0 -37.7 13.7 -4.3 36.0 15.5 41.1 14.9 +14.2 13 March 2003 18
Slide 19: Significant increase of Free Cash Flow
Significant increase of Free Cash Flow in million CHF 80 Cash flow from operating activities 69.7 Cash flow from investing activities 65 47.8 Cash flow from financing activities 50 35 20 5 -10 -20.0 -6.7 -22.8 -10.8 -25 13 March 2003 19
Slide 20: Capital Expenditure
Capital Expenditure Investment details, CHF million 25 Financial assets 1.7 Land and buildings 20 0.6 Tangible assets 0.8 Intangible assets 15 9.4 10 13.4 5 5.3 11.1 0 2001 2002 In % of sales 8.5% 8.3% 13 March 2003 20
Slide 21: Key performance ratios
Key performance ratios 2001 2002 Return on Equity (ROE) 31.1% 33.3% Return on Capital 42.5% 41.1% Employed (ROCE) Return on Assets (ROA) 20.9% 24.2% Total Shareholder -12.6% -8.9% Return 13 March 2003 21
Slide 22: Payout ratio remains unchanged
Payout ratio remains unchanged • Annual Shareholder Meeting April 23, 2003. • Proposal for the Appropriation of retained earnings: Dividend of CHF 17.0 million or CHF 1.10 per share. • Payout ratio of 30%. 13 March 2003 22
Slide 23: Corporate Governance
Corporate Governance • The Annual Report has been prepared in accordance with Corporate Governance Directive issued by the SWX Swiss Exchange • The Board consist of 6 non-executive members • Finance and Audit Committee as well as Compensation Committee have been established at the beginning of 2002
Slide 24: Contents
Contents • Highlights • Financial results • Outlook 13 March 2003 24
Slide 25: Guidance for 2003
Guidance for 2003 • Expect to grow faster than the market in 2003, targeting 18% - 20% sales growth in local currency • Continued monitoring and optimization of processes will further improve margins and value added 13 March 2003 25
Slide 26: Main initiatives in 2003
Main initiatives in 2003 • Product introductions as planned: – ITI TE implant – synOcta prosthetics portfolio completion – In-Ceram for synOcta • Expand US market position: – Sales force build-up – Opening of West Coast training facility • Complete sourcing relationships for Biologics products 13 Ma
Slide 27: Important Dates 2003
Important Dates 2003 th th March 25 – 29 , 2003 IDS, Cologne April 23th, 2003 Sales 1st Quarter 2003 * th April 23 , 2003 Annual Shareholder Meeting August 14th, 2003 Half-year Report 2003 October 23rd, 2003 Sales 3rd Quarter 2003 * Conference Call will be held on 24th April 2003 13 March 2003 27
Slide 28: Questions & Answers
Questions & Answers 13 March 2003 28