Straumann Holding Ag · SIX:STMN
Straumann — H1 2016 Earnings Presentation
19 slides from Straumann's earnings presentation, Aug 23, 2016
Slide 1: 2016 First-half results
2016 First-half results Conference presentation for investors, analysts & media Basel, 23 August 2016 Disclaimer This presentation contains certain forward-looking statements that reflect the current views of management. Such statements are subject to known and unknown risks, uncertainties and other
Slide 2: First-half highlights
First-half highlights Marco Gadola, CEO Record H1 driven by strong all-round performance REVENUE H1 REGIONS & BUSINESSES EBIT MARGIN Double-digit +14% (organic1) growth 24.8% H1: +14% (organic) and 16% (CHF) Q2: first quarter in 8 years where all Up 80 base points driven by strong Q2: +15% (organic)
Slide 3: Positive sales trend continues in Q2
Positive sales trend continues in Q2 Organic revenue growth in % EMEA 47% of Group North America APAC 28% of Group 16% of Group 16.9 11.1 20.6 20.2 14.7 10.2 Q2 H1 Q2 H1 LATAM 9% of Group Q2 H1 17.2 Group 14.7 15.6 13.5 Q2 H1 Q2 H1 5 Operational gearing leads to further EBIT margin expansion Revenue
Slide 4: Business and regional review
Accelerated growth dynamics Organic revenue growth Operating profit 13.5% 200 23.3% 24.8% 30% 20.9% 150 9.1% 18.2% 20% in CHF m 14.9% 6.4% 100 10% 50 (1.0%) 1.2% 0 0% 2012 2013 2014 2015 H1 2016 2012 2013 2014 2015 H1 2016 Operating income Exceptionals Underlying EBIT margin in CHF million 2012 2013
Slide 5: Overview of the underlying financial performance
Overview of the underlying financial performance Change in CHF million H1 2016 H1 2015 (rounded) excl. excl. excluding FX and Reported Exceptionals excl. exceptionals Reported exceptionals exceptionals exceptionals and FX Revenue 461.2 398.5 398.5 400.7 Organic growth in % 13.5% 9.2% Gross profit 36
Slide 6: EBIT margin improves despite further investments in distribution and innovation
EBIT margin improves despite further investments in distribution and innovation In % of revenue, rounded +80 bps +30 bps excl. FX (1.0%) 1.0% 0.5% 3.3% 0.3% 24.5% 24.8% 20.7% Reported EBIT Business FX effect Adjusted EBIT Change in gross Expansion of R&D, Marketing EBIT margin H1 margin H1 combinati
Slide 7: Solid cashflow generation
Solid cashflow generation In CHF million, rounded 3.6 (37.2) 30.5 10.9 2.4 Days of supplies (DOS): 55.0 44.9 148 (2015: 156) Days of sales outstanding (DSO): FCF margin 61 (2015: 64) FCF margin 11.3% 11.9% Free cash flow EBITDA Change in CAPEX Change in NWC Difference in non- Change in interest, Fre
Slide 8: EMEA into double-digit growth; New leadership adds dynamism in N. America
EMEA into double-digit growth; New leadership adds dynamism in N. America Revenue change (organic) Momentum improves as revenue climbs 11% in Q2 47% 56% 9.4% 11.1% Italy, Spain, France, & Sweden EMEA 8.3% 8.5% 8.3% grow fastest. Germany & Switzerland report expected acceleration. 0.3% Q1 Q2 Q3 Q
Slide 9: Update on our strategic progress
Double-digit growth in all businesses Implants Restorative Biomaterials 17 Update on our strategic progress Marco Gadola, CEO 9
Slide 10: Update on our strategic priorities
Update on our strategic priorities Drive a high performance 1 culture and organization Target unexploited 2 growth markets & segments Become a total solution 3 provider for tooth replacement 19 Update on our strategic priorities Drive a high performance 1 culture and organization Target unexploited
Slide 11: Strong performance – evidence of cultural change @ Straumann
Strong performance – evidence of cultural change @ Straumann What we Vision want to More than creating smiles, achieve restoring confidence – we want to be the partner of choice for tooth replacement solutions. How we will Strategy Culture achieve it 21 Update on our strategic priorities Drive a hig
Slide 12: Straumann exercises rights/options to obtain controlling stake in MegaGen
Straumann exercises rights/options to obtain controlling stake in MegaGen Bonds totaling USD 30m converted Option exercised to purchase additional shares to obtain a controlling stake Conversion rate and purchase price to be determined by ICC arbitration (could take up to 2 years) 23 Straumann
Slide 13: Straumann invests in underpenetrated, fast-growing Indian market
Straumann invests in underpenetrated, fast-growing Indian market Agreement to acquire Equinox, a leader in India’s value segment (14% overall market share) with a growing international business Huge need for tooth-replacement; India is one of the least penetrated markets (~220k implants placed i
Slide 14: Value platform expanded
Value platform expanded Germany (100%) Canada (55%) Brazil (100%) Germany (51%) Spain (30%) USA (13%) Turkey (50%) France (30%) (Joint venture) S. Korea Germany Switzerland (44%) (arbitration) Taiwan (49%) Taiwan India (100%) Austria (conv. bond) (coming months) Common technology and Premium manufac
Slide 15: Investing in people to create and drive growth opportunities
Update on our strategic priorities Drive a high performance 1 culture and organization Target unexploited 2 growth markets & segments Become a total solution 3 provider for tooth replacement 29 Investing in people to create and drive growth opportunities Group employees 128 new colleagues 4000 3471
Slide 16: Changes in Board of Directors
Changes in Board of Directors After departure of Stefan Meister, Ulrich Looser took over as Chairman of Compensation Committee (CC) and Thomas Straumann joined the CC Regula Wallimann agrees to stand for election to the Board at AGM in April 2017 • Expert in multinational group auditing and fina
Slide 17: Guidance 2016
Guidance 2016 Barring unforeseen circumstances Straumann expects the global implant market to grow solidly in 2016 and is confident that it can continue to outperform Aims to achieve full-year organic growth in the low-double-digit range Despite further investments in strategic growth initiati
Slide 18: Calendar of upcoming events
Calendar of upcoming events 2016 23 August Half-year results conference HQ, Basel 23 August Analyst Talk 7th edition Straumann website 30 August Commerzbank Sector Conference Frankfurt, Germany 06 September Investor meetings London, UK 07 September Goldman Sachs HC conference London, UK 14 September
Slide 19: Your contacts
Your contacts Corporate Investor Relations Fabian Hildbrand Tel. +41 (0)61 965 13 27 investor.relations@straumann.com Corporate Communications Mark Hill Thomas Konrad Tel. +41 (0)61 965 13 21 Tel. +41 (0)61 965 15 46 mark.hill@straumann.com thomas.konrad@straumann.com 37 International Headquarters I