Slide 1: Beyond continuity: 2019 full-year results conference
Beyond continuity 2019 full-year results conference Basel, 18 February 2020 1 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 factors that may cause
Slide 2: Agenda / Full-year highlights
Agenda Full-year highlights Business and regional review Recent achievements & strategy in action Outlook 2020 Q&A and upcoming events 3 Full-year highlights Guillaume Daniellot, CEO 4 FY 2019, Straumann Group 2
Slide 3: Excellent growth and further margin expansion
Excellent growth and further margin expansion REVENUE ORGANIC1 GROWTH EBIT MARGIN CHF 1.6bn +17% 27.1% (core2) +17% vs. 2018 2.5% negative FX effect Core profitability further improved Q4: +17% IFRS EBIT margin: 24.3% INNOVATION BUILDING FOR GROWTH OUTLOOK3 Straumann BLX CAPEX: CHF 150m Further shar
Slide 4: Continued value creation for shareholders
Continued value creation for shareholders Revenue growth EBIT margin Earnings per share in CHF m Core, in %, excl FX Core, in CHF +17% +20bps +17% organic 1596.2 21.21 1363.6 26.9 27.1 18.16 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 7 7 Impressive 5-year performance 5-year organic revenue grow
Slide 5: Leadership in implant dentistry extended
Leadership in implant dentistry extended 2019 Total Implantology1 dentistry Straumann Others (400+) Group 20% (2018: 25%) 26% Market CHF 27-29 bn 4.6 bn Dentium 6% 26% 5% Straumann share Zimmer Biomet 5% Straumann position #6 #1 8% 17% Osstem Henry Schein, Patterson, Envista 8% Main players Envista,
Slide 6: Double-digit growth across all regions
Business and regional review Peter Hackel, CFO 11 Double-digit growth across all regions Revenue development (in CHF m, rounded) Regional share of 17.1% organic growth in CHF 17.1% organic 9% Latin 53.1 11.5 1’596.2 America 85.8 23% 82.2 Asia Pacific 1’363.6 -29.5 29.5 1’363.6 34% North Change in or
Slide 7: BLX boost in EMEA & North America
BLX boost in EMEA & North America EMEA Revenue change (organic) EMEA Q4: slight sequential increase 56% despite exceptional Q4 2019. 19.3% 17.0% Lifted by BLX and value-brand roll- 14.4% 12.7% 13.1% 13.4% 42% of Group 11.9% outs. 9.8% Germany solid; strong increases in Italy, Middle East, Russ
Slide 8: All businesses report continued strong growth
All businesses report continued strong growth Digital & Implant systems Biomaterials Orthodontics restorative 15 15 Overview of non-core items The following effects were defined as non-core items: The Batigroup acquisition led to an exceptional inventory-revaluation expense of CHF 8.8m, reported 2
Slide 9: Core financials at a glance
Core financials at a glance % of Margin Change In CHF m, rounded FY 2019 Comments revenue change in % Revenue 1’596.2 100.0% 17.1% COGS (389.0) 24.4%placeholder (16.0%) GROSS PROFIT 1’207.2 75.6% 20bps 17.4% Operating expenses (775.3) 48.6% (17.4%) FX headwind -60bps EBIT 431.9 27.1% 20bps 17.6% IFR
Slide 10: CADCAM & clear-aligner sales lift gross margin
19 19 CADCAM & clear-aligner sales lift gross margin In %, rounded +20bps +60bps 0.1 0.0 -0.4 0.5 0.7 -0.4 Dental Wings Fire 75.6 75.2 74.7 75.0 IFRS gross Non core FX effect Core gross Price, Digital HW Inventory Core gross Non core IFRS gross profit items profit Volume, Mix Change profit items pro
Slide 11: Further improvement in core EBIT
Further improvement in core EBIT In %, rounded +20bps +80bps 0.5 -0.6 1.8 -0.6 0.6 0.3 -2.8 27.1 26.3 25.1 24.3 IFRS EBIT Non core FX effect Core EBIT Gross profit Distribution Administration IFRS16 Core EBIT Non core IFRS EBIT margin 2018 items margin 2018 improvement expense expenses margin 2019 i
Slide 12: Further improvement of the free cash flow margin
Further improvement of the free cash flow margin In CHF m +35.6% 23.0 -41.2 62.6 6.8 -2.5 229.6 11.5 169.4 Production expansion in various Group sites; CHF 15 m related to Anthogyr acquisition FCF margin FCF margin 12.4% 14.4% Free cash EBITDA IFRS 16 effect Change in CAPEX Change in NWC Change non-
Slide 13: Dividend raised
Dividend raised The Board proposes a dividend increase to CHF 5.75 per share (prior year: CHF 5.25) Dividend is payable on 15 April 2020 (ex-dividend date: 9 April 2020) 5.75 5.25 4.75 4.25 4.00 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.00 2.50 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2
Slide 14: Strong performance confirms our strategy
Strong performance confirms our strategy Drive high performance Straumann Group culture and organization Target unexploited growth markets & segments Become the total solution provider for esthetic dentistry 27 27 Execution – focus on four areas Market Share Key opportunities PREMIUM 1 in 4 implants
Slide 15: BLX well received: >100 000 sold in 2019
PREMIUM BLX well received: >100 000 sold in 2019 EMEA Most markets: Q1/2 2019 Russia: 2021 Turkey: 2020 NAM USA/Canada: Q3 2019 LATAM Brazil: Q1/Q2 2019 Mexico: 2020* Colombia: 2020* APAC Aus./NZ: Q1 2019 China: 2021* Japan: 2020* Korea: 2020* Straumann‘s team in Thailand prepa
Slide 16: Dedicated business unit for orthodontics
ORTHO Dedicated business unit reflects high potential and strategic importance of orthodontics Incorporates our ClearCorrect, Smyletec and Geniova clear-aligner brands as well as the recently Orthodontics acquired Bay Materials thermoplastics Business Unit business. 800 employees worldwide Cam
Slide 17: Building a powerful team for a broader digital ecosystem
DIGITAL Building a powerful team for a broader digital ecosystem New dedicated Digital Business Unit includes intraoral and laboratory scanners, centralized CADCAM Orthodontics prosthetics, milling equipment, 3D Business Unit printers and materials, prosthetic design, guided surgery software, and
Slide 18: Strong leadership team with broad skills
Strong leadership team with broad skills and diverse backgrounds Guillaume Daniellot Wolfgang Becker Jens Dexheimer Patrick Loh Petra Rumpf Matthias Schupp Robert Woolley CEO Sales Distributor & Sales Europe Sales Asia/Pacific Dental Services Sales Latin America Sales Emerging Markets EMEA Organizat
Slide 19: Outlook 2020: Coronavirus
Outlook 2020 37 Coronavirus – dealing with the unforeseeable Public hospitals and dental clinics in China treating emergency / life-threatening conditions only Private dental practices closed Travel restricted in most cities Straumann Group has 350 employees in China; 10 in Wuhan City; none
Slide 20: Our 2020 guidance
Our 2020 guidance (Barring unforeseen circumstances) Global implant market to continue Market growth growing at 4-5% Confident of gaining market share and achieving Our growth organic revenue growth in the low double-digit percentage range Stable core EBIT margin excluding the impact of Profitabilit
Slide 21: Calendar of upcoming events
Published today 41 41 Calendar of upcoming events 2020 Event Location 19 February Investor meetings London 20 February Investor meetings Paris 21 February Investor meeting Geneva 03 March Morgan Stanley Medtech conference London 10 March Investor meetings Montreal 11 March Investor meetings New York
Slide 22: Impact from IFRS 16 (Leases) adoption in 2019
Impact from IFRS 16 (Leases) adoption in 2019 IFRS 16 impact (in CHF million)1 Total Revenue Gross profit +0.5 EBITDA +28.2 EBIT +4.1 Financial results -6.6 Net profit -2.5 43 43 Growth strategy pays off 2017 2018 2019 2015 2016 5-year average in CHF m restated Core Core Revenue 798.6 917.5 1112.1 R
Slide 23: Straumann's currency exposure
Straumann’s currency exposure Revenue breakdown FY20191 FX sensitivity CHF Average exchange rates (rounded) (+/- 10%) on full-year 6% Other Closing 18% 2018 2019 2019 Revenue EBIT BRL EUR 1 EURCHF 1.15 1.11 1.09 +/- 43m +/- 23m 7% 27% 1 USDCHF 0.98 0.99 0.97 +/- 45m +/- 21m CNY 100 BRLCHF 26.9 25.1
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