Slide 1: Presentation for investors, analysts and media
Presentation for investors, analysts and media Basel, 27 February, 2024 1 This presentation contains forward-looking statements that reflect the current views of management, and which are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance o
Slide 2: Highlights, Financials, Strategy, Outlook, Q&A
Highlights Guillaume Daniellot Financials Yang Xu Recent achievements & strategy Guillaume Daniellot Outlook 2024 Guillaume Daniellot Q&A Guillaume Daniellot, Yang Xu 3 3 Guillaume Daniellot, CEO 4 4
Slide 3: 2023 highlights: revenue, core EBIT margin, regional performance
Revenue in CHF Core EBIT margin Smiles helped 2.4 bn 25.1% 5.6 m + 9.8% organic growth1 in 2023 IFRS EBIT margin 17.0% 10 m smiles3 annually by 2030 CHF 624 m revenue in Q4 strong currency headwinds +13.2% organic growth1 in Q4 Regional performance Employee engagement score Outlook 20242 China 81 Hi
Slide 4: Patient flow and China Volume Based Procurement
Patient flow Implementation of Volume Based Procurement (VBP) Covid 19 Q4 Q1 Q2 Q3 Q4 2022 2023 2023 2023 2023 7 7 Yang Xu, CFO 8 8
Slide 5: Revenue growth FY 2023 by region and segment
+9.8% Regional % share of +3.9% organic growth organic 35 2’412 63 16 LATAM 2’321 44 20 NAM 75 20 2’196 29 APAC -145 Change in organic growth 35 EMEA +7.6% +6.7% +15.8% +19.8% Revenue FX effect M&A effect Adjusted EMEA NAM APAC LATAM Revenue FY 2023 FY 2022 Revenue base FY 2023 9 9 Tooth replacement
Slide 6: Gross profit margin and EBIT margin bridges
-140 bps -30 bps 75.6 0.1 74.6 0.1 74.3 74.1 -1.1 -0.4 -0.2 IFRS gross Non-core FX effect Core gross Portfolio Productivity Core gross Non-core IFRS gross profit margin items profit margin mix effect effect profit margin items profit margin FY 2022 FY 2022 FY 2023 FY 2023 @FX 2022 @FX 2023 @FX 2023
Slide 7: Free cash flow and income statement FY 2023
Free Cashflow CHF 316m (13.1% of Net Revenue) in FY 2023 vs. CHF 221m (9.5% of Net Revenue) in FY 2022 -41.1% 504 696 -349 410 -440 Cash Net Cash Net Cash Net Cash Cash 1 Jan 2023 Operating Investing Financing & Other 31 Dec 2023 13 13 FY 20231 % of Revenue Margin change2 Change in %2 Comments Reven
Slide 8: Capital allocation priorities and proposed dividend
In priority order 1 Reinvest in sustainable business growth 2 Maintain strong balance sheet 3 Pursue M&A to accelerate strategy 4 Maintain and increase dividend with earnings growth 15 15 • Proposed1 dividend of total CHF 0.85 per share; thereof CHF 0.40 to be paid from capital contribution reserve
Slide 9: Market size and market share by segment
Guillaume Daniellot, CEO 17 17 6 5.3 5.3 5 4 Market size 2.7 2.9 0.7 2.4 in CHF bn 3 2 1 >50% ~5% <5% Market share >15% ~15% ~5% 0 Premium Non-premium ClearAligner Regeneratives CADCAM CADCAM Implantology Implantology equipment prosthetics 18 Source: STG market model & 2023 data 18 18
Slide 10: Global footprint, product mix and multi-brand strategy
Global footprint Product mix Multi-pricing and brand strategy Implantology Premium Premium Challenger 2013 2023 2013 2023 EMEA APAC Premium Digital Eco-Challenger NAM LATAM Ortho Challenger 19 Source: Straumann Group estimates – in CHF revenue 19 Engagement score PURPOSE 81 to unlock the potential o
Slide 11: Innovation and education
Innovation Education Clinical evidence 21 21 Innovation Education iEXCEL GalvoSurge 22 22
Slide 12: Implant market opportunity and digital integrations
VALUE IMPLANT MARKET ~31 MILLION IMPLANTS >90 countries* NAM EMEA >80 countries* >50 countries* LATAM APAC Straumann Group share Market opportunity 23 23 Innovation Education IOS Integrations ClearCorrect Sync Doctor Portal ClearPilot 24 24
Slide 13: Intraoral scanners and AI-driven dentistry
Full portfolio of AI-driven dentistry Treatment intraoral scanners applications solutions 25 25 CBCT IOS Clear Aligner Smile in a Box Scan & Shape 26
Slide 14: Management changes: EMEA and Implantology heads
27 CONFIDENTIAL/INTERNAL USE ONLY 27 Wolfgang Becker – to retire Holger Haderer Andreas Utz Head of the EMEA region Head of Implantology, MD of Straumann Group Germany, New role: Head of the EMEA region New role: Head of Implantology 28 28
Slide 15: Our sustainability framework
Our sustainability framework Smiles Education activities in low- and middle-income 5.6m countries 28% Leadership positions Employee say they have 40% good opportunities to grow and learn female 77 score OUR PURPOSE To unlock the Net-zero emissions target Renewable electricity potential of people’s l
Slide 16: Outlook 2024 and growth ambition 2030
31 Market environment and assumption Revenue and profitability • Uncertain economic environment remains • Organic revenue growth in the high single-digit percentage range • Group believes global patient flow should remain stable • Profitability at around 26% at constant 2023 currency rates or betwee
Slide 17: Published today
33 33 Published today 34 34
Slide 18: Investor events calendar and FX breakdown
2024 Event Location 28-29 February ZKB Swiss Roadshow Zürich and Geneva 5-6 March Bernstein UK Roadshow London 7 March Bernstein France Roadshow Paris 20 March Kepler Cheuvreux Swiss Seminar Zurich 26-28 March Citi USA Roadshow Boston and New York 30 April Q1 2024 Results 7 May Jefferies Singapore R
Slide 19: IFRS to core results reconciliation
PPA (in CHF 1 000) IFRS amortization Impairments Restructuring Other CORE Revenue 2 411 819 0 0 0 2 411 819 Cost of goods sold (624 554) 4 502 0 1 143 0 (618 909) Gross profit 1787 265 4 502 0 1 143 0 1792 910 Other income 7 075 0 0 ( 10) 0 7 065 Distribution expense (452 036) 5 443 0 0 0 (446 593)
Slide 20: IFRS income statement and EMEA, North America growth
FY 20231 % of revenue Margin change2 Change in %2 Comments Revenue 2’412 10.8% COGS -625 25.9% 12.6% GROSS PROFIT 1’787 74.1% -40 bps FX headwind -110 bps Operating expenses -1’376 57.1% 18.2% EBIT 411 17.0% -390 bps FX headwind -210 bps Financial result -56 2.3% 95.1% Associates -9 0.4% 25.1% Incom
Slide 21: Asia Pacific and Latin America organic growth
Revenue change (organic) 56% 56% 40.5% Asia Pacific 26.8% 23.1% 17.0% 18.4% 19% of Group* 5.9% 8.6% -2.9% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 -23.5% 48.8% 40.3% Latin America 30.3% 20.9% 18.9% 20.0% 20.1% 19.1% 20.1% 9% of Group* Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Q2 Q3 Q4 41* Refers to full-year 41 42 42