Straumann Holding Ag · SIX:STMN
Straumann — FY2010 Earnings Presentation
19 slides from Straumann's earnings presentation, Feb 15, 2011
Slide 1: 2010 Full-year results
2010 Full-year results Analysts’ & Media Conference Basel, 15 February 2011 Disclaimer This presentation contains certain “forward-looking statements”, which can be identified by use of terminology such as “expect”, “expectation”, “intend”, “continue”, “achieve”, “maintain”, “improve”, “foresee”, “a
Slide 2: Agenda / Full-year highlights
Agenda Full-year highlights Business performance Achievements in 2010 Outlook Questions & answers STRAUMANN 15 February 2011 © by Straumann. All rights reserved. 3 Full-year highlights Beat Spalinger President & CEO 2
Slide 3: Signs of market improvement; results in line with expectations
Signs of market improvement in a challenging environment Despite recovery from recession, 2010 brought little improvement to unemployment, household income and access to credit With consumer sentiment still fragile, dental practices reported no substantial pick-up in complex and elective dental proc
Slide 4: Ahead of the market; a leader in markets worth >CHF 5bn
Ahead of the market for more than 3 years 25% 15% 5% Q1 2007 Q2 Q3 Q4 Q1 2008 Q2 Q3 Q4 Q1 2009 Q2 Q3 Q4 Q1 2010 Q2 Q3 Q4 -5% -15% Straumann growth l.c. Market growth of leading implant companies 1 Market share weighted growth rates (in l.c.) of Biomet/3i, Dentsply, Nobel Biocare, Straumann and Zimme
Slide 5: No increase in penetration due to weak economy
No increase in penetration due to weak economy Implants placed per 10 000 population per year ADULT U.S. POPULATION 200 PEOPLE AFFECTED BY TOOTH LOSS (45-55%) ANNUAL TOOTH LOSS CASES 100 SEEKING TREATMENT (5-10%) PEOPLE ACTUALLY TREATED (50-60%) 0 lia ly y a in a n na en Sw d S a ce Fr l K ea zi di
Slide 6: Business performance: solid performance against currency headwind
Business performance Solid performance against currency headwind in CHF million FY 2009 FY 2010 Change Reported FX adjusted Reported FX adjusted Net Revenue 736.4 705.5 737.6 Growth in l.c. % (2.1%) 4.6% Gross profit 586.8 557.0 587.0 Gross profit margin 79.7% 79.0% 79.6% 0.6% EBITDA 218.3 198.1 211
Slide 7: Straumann sustains recovery; growth across all regions
Straumann sustains recovery FY 2010 net revenue growth Organic growth1 by quarter (l.c.) Total Group: CHF 738m 20% 13% 9% 4.6% -4.4% 7% 5% 4% 3% 3% 2% 0.2% -1% -1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net revenue in Currency effect Net revenue in l.c. CHF -8% 2008 2009 2010 1 ’Organic growth’ exclude
Slide 8: Modest improvement in Europe; market share gains in North America
Modest improvement in Europe 6% growth (l.c.) in Q4 achieved in challenging market environment; strong currency headwind Consumer sentiment fragile as Europe recovers slowly from recession and struggles with sovereign debt crisis Q4: Germany surpass previous year; solid growth in France, the UK and
Slide 9: APAC mixed; strong demand in RoW; gross margin stable
APAC mixed; strong demand in RoW Straumann works towards turnaround in sluggish Japanese market China continues to grow strongly Exceptional Q4 in Korea ahead of anticipated changes in business regulations Double-digit growth continues in Latin America (in CHF million) Q4 09 Q4 10 % CHF FY 09 FY 10
Slide 10: Significant investments in M&S; net profit constrained
Significant investments in M&S to spur future growth in CHF million 30.0 -1.9 -9.3 -19.8 +13% 165.3 164.3 145.5 EBIT margin EBIT margin EBIT margin CHF 22.5% CHF 20.6% CHF 22.3% Reported FX effect FX adjusted Gross profit R&D SG&A, 'other Reported EBIT 2009 EBIT 2009 income' EBIT 2010 STRAUMANN 15 F
Slide 11: Free-cash flow margin >20%; stable dividend
Free-cash flow margin >20% despite increased tax payments and net working capital in CHF million -6.4 -25.9 9.2 -37.4 214.7 FY 2009 FY 2010 154.2 Inventory: Days of supply 159 158 FCF margin Receivables: Days of FCF margin sales outstanding 47 45 29.2% 20.9% 1 Free Cash Flow EBITDA Working capital C
Slide 12: Achievements in 2010
Achievements in 2010 Excellent value and reliability Time-tested SLA surface enables Straumann to compete effectively in the value segment One-stage surgical procedure saves time, costs and discomfort for patients 10-year Proven long-term reliability; 10-year results data from randomized controlled
Slide 13: Prolific launch program in 2010; leadership in innovation
Prolific launch program in 2010 Guided surgery I.O. scanning MembraGel CADCAM scanner Software Applications Materials STRAUMANN 15 February 2011 © by Straumann. All rights reserved. 25 Leadership in innovation More innovations brought to market US FDA 510k clearances over 4 years in past 4 years bas
Slide 14: Stocked pipeline despite recent introductions
Stocked pipeline despite recent introductions Project Benefits Due1 • New small diameter implant • Prosthetic & surgical 2011 design flexibility • New implant material • Tooth-colored 2013 2014 • Soft tissue control • Tissue control round implants 2012/13 • Implant maintenance • Implant rescue • Enh
Slide 15: Outlook: continued currency headwind expected in 2011
Outlook Continued currency headwind expected in 2011 EURCHF USDCHF 1.5 1.2 1.4 1.1 1.3 1 1.2 0.9 1.1 0.8 Jan Feb Mrz Apr Mai Jun Jul Sep Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Sep Okt Nov Dez 2010 2011 2010 2011 Ø exchange rates (rounded numbers) FY 2009 FY 2010 YTD 2011 EURCHF 1.51 1.38 1.29 USDCH
Slide 16: Outlook 2011
Outlook 2011 (barring unforeseen circumstances) Straumann expects the recovery in its main markets to continue slowly – provided, of course, that the general economy does not deteriorate. As consumer sentiment is still fragile, the Group remains cautious in predicting when the markets will recapture
Slide 17: 2010 Annual Report; calendar of upcoming events
2010 Annual Report – pre-print version available Comprehensive value reporting Independent expert opinions, executive interviews, corporate governance, compensation report, outlooks, etc. Follows GRI guidelines for sustainability reporting Straumann’s reporting quality recognized in 2009 Swiss Annua
Slide 18: Appendix: net revenue growth, full-year 2010
Appendix Net revenue growth – Full-year 2010 CHF million Q1 2010 Q2 2010 Q3 2010 Q4 2010 FY 2010 Europe 125.0 116.6 92.4 110.9 444.9 growth in % CHF (0.2) (2.0) (9.0) (4.9) (3.8) growth in % l.c. 1.4 3.9 1.2 6.4 3.2 North America 41.7 43.6 38.2 41.3 164.7 growth in % CHF 3.6 8.9 3.6 8.1 6.1 growth i
Slide 19: Transactional currency exposure; investor relations contacts
Transactional currency exposure Global net revenue distribution in % Global cost distribution in % Others Others 17% 15% EUR 27% CHF 13% EUR 46% CHF USD/CAD/AUD USD/CAD/AUD 41% 17% 24% These distribution charts represent the total net revenues and the total cost of goods STRAUMANN 15 February 2011 ©