Straumann Holding Ag · SIX:STMN
Straumann — H1 2012 Earnings Presentation
17 slides from Straumann's earnings presentation, Aug 21, 2012
Slide 1: 2012 First-half results
2012 First-half results Analysts’ & Media Conference Call Basel, 21 August 2012 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 i
Slide 2: Highlights
Highlights Beat Spalinger President & CEO What is happening in the market? Tooth replacement market more or less flat in H1, based on data reported Weak economic environment constrains market momentum in Q2 Austerity measures in Europe weigh on consumer confidence and non- reimbursed dental procedur
Slide 3: 2012 H1 – strategically well positioned, but economic environment disappointing
2012 H1 – strategically well positioned, but economic environment disappointing NET REVENUE KEY DRIVER NET PROFIT CHF 362m +10% CHF 44m H1 flat; slow market in Q2 Strong l.c. growth in North constrained by re-organization, America regional expansion, and R&D JOBS EMERGING MARKETS FUTURE 103 new posi
Slide 4: How Straumann has performed year-on-year
How Straumann has performed year-on-year in CHF million H1 2011 H1 2012 Change Reported Pre- FX adjusted Reported vs. adjusted 1 exceptionals Net Revenue 367.3 367.3 362.6 361.7 (0.2%) 290.3 290.3 285.7 278.4 Gross profit Gross profit margin 79.0% 79.0% 78.8% 77.0% (1.8%) 98.3 98.3 95.0 69.7 EBITDA
Slide 5: Group performance led by solid growth in N. America
Group performance led by solid growth in N. America Net revenue growth by region Net revenue by region (rounded) 13% 10% Europe 5% CHF 202m 15% 4% North America 1% CHF 89m Asia/Pacific 0% 24% CHF 54m -2% -2% 63% -5% 56% ROW -6% CHF 17m -8% Europe North Asia/Pacific ROW Group Total Group America CHF
Slide 6: EBIT reflects high investments in M&S and R&D
EBIT reflects high investments in M&S and R&D In % of net revenue 1 3 2 1 CHF 40m impairment of intangible assets 2 Lifted by CHF 5m net release of provisions in H1 2011 Straumann 3 One-time project costs of CHF 5m related to Straumann’s reorganization and Neodent transaction. 11 Positive financia
Slide 7: Cash flow impacted by reduced gross profit, one-time costs and tax payments
Cash flow impacted by reduced gross profit, one-time costs and tax payments In CHF million Cash outstanding 1 Jan. 2012 CHF 377 million - Investment in Neodent (1st tranche) (CHF 218 million) -11.9 Thereof 5m related to - Dividends (CHF 58 million) currency changes Cash outstanding 30 June 2012 CHF
Slide 8: Double-digit growth in North America; strong growth in emerging markets
Double-digit growth in North America Solid Q2 (+7%) on top of strong Q1 (+14%) Q2 in 2011 benefitted from intra-oral scanner rollout Implant and regenerative businesses performing well Sales expansion initiative; path to leadership in world’s largest market for implant dentistry (in CHF million) Q2
Slide 9: Building for the future
Building for the future Full re-organization completed in less than a year to master complexity and drive growth CEO Corporate EMB strengthened; organization new Corporate structure Business Unit 2 main BUs Beat Spalinger organization Sales I BU BU Sales II Sales III Finance EMEA/ Prosthetics Surgic
Slide 10: Focused investment in people in key areas
Focused investment in people in key areas to manage complexity and unlock growth potential 103 new positions in H1 Products APAC Administration, Finance, IT RoW Marketing, Education & Sales North America Europe Quality, Production, Logistics New jobs created, mainly in Marketing & Sales and support
Slide 11: Neodent acquisition – expansion in world's second largest implant market
Neodent acquisition – expansion in world’s second largest implant market Net revenue 20111 CAGR 2009-11 Profitability / margins >40% adj. EBITDA BRL 167m 21% >25% net profit Fast-growing, highly profitable business in highly attractive market Deal cleared by regulators and closed; 49% stake purchase
Slide 12: Impressive Europerio in Vienna
Impressive Europerio in Vienna Straumann 23 Emdogain® 015 – an ideal, cost-effective solution for smaller needs in daily practice Now cleared in Europe and US for use in combination with various bone graft materials New size and indication launched at Europerio More than 10 years’ in-market experi
Slide 13: Outlook 2012 and beyond
Straumann prevails in Swiss and German courts against ‘generic’ claims There are no ‘generic’, ‘bioequivalent’ dental implants; X labelling as such is illegal In pharmaceuticals ‘generics’ indicates same quality as original (controlled by regulators) This is not true for implant copycats, which have
Slide 14: Business fundamentals are still highly attractive
Business fundamentals are still highly attractive Over a quarter of a billion people in the industrialized Market growth Demographics world are missing one or more teeth Dental awareness & Penetration levels are still very low; only 15-20% of esthetics people seeking treatment for tooth loss get imp
Slide 15: Questions & answers
Questions & answers Calendar of upcoming events 21 August Half-year 2012 results Conference Call 17 September Investor meetings Paris (F) 18 September Investor meetings London (UK) 19 September Sanford C. Bernstein Conference London (UK) 20 September UBS Best of Switzerland Conference Ermatingen (CH
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
Slide 17: Net revenue growth by quarter
Net revenue growth by quarter CHF million Q1 2011 Q2 2011 Q1 2012 Q2 2012 Europe 113.9 105.4 106.5 95.6 growth in % CHF (8.8) (9.7) (6.5) (9.2) growth in % l.c. 2.2 0.3 (2.1) (7.0) North America 40.1 37.9 44.7 43.8 growth in % CHF (3.7) (13.2) 11.3 15.6 growth in % l.c. 8.0 9.6 14.0 7.0 Asia / Pacif