Coltene Holding Ag · SIX:CLTN
Coltene — FY2010 Earnings Presentation
26 slides from Coltene's earnings presentation, Mar 17, 2011
Slide 1: Full year 2010 results – Media and analyst conference
Full year 2010 results Media and analyst conference March 17, 2011 1 Safe Harbour Statement Before we may start with the presentation, we need to remind you that the information made available in this conference and webcast may include forward-looking statements that reflect the intentions, beliefs
Slide 2: Speakers and Content
Speakers Andreas Meldau, Chief Executive Officer • Management analysis • Strategy implementation Dr. Hans Grüter, Chief Financial Officer • Financial results FY 2010 3 Content 1. COLTENE – Key figures and sales development 2010 2. Attractive business model in global dental market 3. Strategy impleme
Slide 3: Highlights 2010
Highlights 2010 (1) Main business impacts 2010 + Strong growth in China and India + Sound performance and successful market initiatives in traditional markets + Improved structure in sales and marketing (i.e. global S&M; Italy; Eastern Europe) − Development at Vigodent SA in Brazil − Currency impact
Slide 4: Sales development 2010 (1)
Sales development 2010 (1) + Back to pre-crisis sales levels + Sales up 6.2% adjusted for currency effects, excl. Vigodent + Recovery resulted in quarterly more even sales pattern + 2HY stronger than 1HY 2010 + Q4 below average; less of a year-end sales boost + Strong growth in China (+58%) and Indi
Slide 5: Sales development 2010 (2)
Sales development 2010 (2) Development by Region – Rationale • Germany and France: good growth based on customer-oriented activities (closer to dentists/POS) incl. CRM support • Great Britain, Scandinavia and Eastern Europe: after many years of continuous growth a certain ceiling was reached in 2010
Slide 6: Sales development 2010 (3)
Sales development 2010 (3) • FOREX impacts on reported Swiss franc figures – 6.2% sales increase in local currencies equates 1.4% increase in reported CHF • Results analysis, adjusted for FOREX and Vigodent – Reported EBIT of CHF 18.4 million would rise to CHF 23.0 million 11 Content 1. COLTENE – Ke
Slide 7: COLTENE business model
COLTENE business model • Address traditional and emerging markets – Global presence, low exposure to single markets – Build strong market positions in all markets • Focus on stable dental consumables market – Close to patient treatments – More stable than overall dental market which is exposed to eq
Slide 8: Support from long-term growth drivers
Support from long-term growth drivers • Increasing dental insurance coverage • Rising awareness for oral health • Higher emphasis on aesthetic dentistry (world-wide) • Aging population – retaining natural dentition – 50-80 year-old population approx. to double until 2030 • Expanding global middle-cl
Slide 9: Geographic Coverage; Strategy implementation: Three pillars
Geographic Coverage Existing subsidiaries and sales entities 17 Strategy implementation: Three pillars Product Innovation Geographic Acquisitions Expansion Partnerships 18
Slide 10: Geographically broadly based sales split
Geographically broadly based sales split 2% Sw itzerland 2% 6% 2% 15% Germany, Austria 5% UK, IRE 2% 5% France Other Europe 5% Russia and other CIS Sales split geographic regions: Middle East, Africa 2010 2009 35% 14% North America Europe 48% 51% Brazil 3% North 35% 34% 4% Other South America Americ
Slide 11: Sales by Geographic Region (2)
Sales by Geographic Region (2) Focus Latin America/ Brazil • Sales performance in Latin America (without Brazil) +7% – Focused expansion and increased network of opinion leaders – Above-average growth: Mexico, Peru, Venezuela and Costa Rica • Completion of takeover of Vigodent SA in Oct. 2010 to rev
Slide 12: Sales by Geographic Region (4)
Sales by Geographic Region (4) Focus India • Sales up +93% • Ongoing investments in marketing and distribution • Distribution network built-up • Sales volumes doubled YoY: on small but increasing level • Careful distribution model put in place • Strong participation at congresses and major exhibitio
Slide 13: Comprehensive Product Range
Strategy implementation: Three pillars Product Innovation Geographic Acquisitions Expansion Partnerships 25 Comprehensive Product Range Healthy Esthetics Tooth Tooth Tooth Saving Loss Prophylaxis / Hygiene Orthodontics Restoration/ Adhesive Prostethics Implantation Endodontics 26
Slide 14: Well-balanced and comprehensive product portfolio
Well-balanced and comprehensive product portfolio 10% • Broad based growth across all 5% 22% product groups • Positive gains in 8% – Aesthetic restorations – Rotary instruments 8% – Hygiene and surgical 19% equipment 11% – Laboratory products • Continuous innovation cycle 17% – Ongoing process for a
Slide 15: Innovation in Products and Services (2)
Innovation in Products and Services (2) PINDEX Split Sleeves Laboratory equipment: • PINDEX standard model system is the benchmark for orthodontic work. • PINDEX Split Sleeves act as precise anchors for individual pins. 29 Innovation in Products and Services (3) SYNERGY D6 Flow Filling products: • S
Slide 16: Innovation in Products and Services (4)
Innovation in Products and Services (4) HyFlex CM NiTi files ÆLaunch of a unique rotary Endo File by end of 2010 HyFlex CM (Controlled Memory) NiTi files optimally adapt to the anatomy of the canal, are safe for multi-use and are clearly more resistant to fatigue separation. This product perfectly c
Slide 17: Innovation in Products and Services (5)
Innovation in Products and Services (5) PerFect TCS II Surgical equipment: • PerFect TCS II is a high frequency electro-surgery instrument, which helps to manage gingiva with: • greater efficiency • less bleeding than a common scalpel 33 Innovation in Platforms and Services (6) New marketing approac
Slide 18: Acquisitions and Partnerships (1)
Strategy implementation: Three pillars Product Innovation Geographic Acquisitions Expansion Partnerships 35 Acquisitions and Partnerships (1) Acquisition of Vigodent SA in Brazil • Acquisition of remaining 60% to reverse unsatisfying trend of KPIs and to gain full control • Turnaround process was in
Slide 19: Acquisitions and Partnerships (2)
Acquisitions and Partnerships (2) • Ongoing: active and diligent process • Prime Focus is to successfully integrate and manage Vigodent SA Brazil – needs further attention from Executive Management – substantial changes (in many directions - incl. organization) and improvements (in all disciplines)
Slide 20: Profit & Loss Statements
Content 1. COLTENE – Key figures and sales development 2009 2. Attractive business model in global dental market 3. Strategy implementation 4. Financials 5. Outlook 6. Q&A 39 Profit & Loss Statements (TCHF) 2010 2009 % YoY Net Sales 153'578 151'385 1.4% Material expenses* 44'113 43'146 2.2% Personne
Slide 21: Net Profit Development
Profit & Loss Statements (TCHF) 2010 2009 % YoY EBIT 18'441 20'337 -9.3% Interest income and expenses -717 -355 Exchange rate differences -1'938 639 Gain on call option associates 1'220 0 Share of loss of associates -838 -210 Impairment on associates -2'957 0 Net profit before tax 13'211 20'411 -35.
Slide 22: Cash Flow and Balance Sheets
Cash Flow continuing operations (TCHF) 2010 2009 % YoY Net profit 9'214 16'357 Non cash items 13'327 9'303 Changes in NWC -2'886 4'026 Interest received/paid, tax paid -5'483 -4'332 Cash Flow from operations 14'172 25'354 -44.1% Purchases, proceeds PPE, intangibles, fin. -3'335 -7'504 Acquisition of
Slide 23: Summary: Solid underlying performance increase
Summary Solid underlying performance increase In TCHF 2009 2010 FX Vigodent* 2010 Result Result Adjustments Adjustments Adjusted Net Sales 151'385 153'578 9'208 -1'961 160'825 Material & other -131'048 -135'137 -5'580 2'911 -137'806 EBIT 20'337 18'441 3'628 950 23'019 In % of net sales 13.4% 12.0% 1
Slide 24: Competitive Advantages and Outlook 2011
COLTENE Competitive Advantages In the market place • Company clearly focused on dental consumables business • Targeting both traditional and emerging dental markets • Product offering for comprehensive applications and treatments • Continuous product updates (innovation cycles) • Global presence and
Slide 25: Invitation to visit our world-wide locations
Content 1. COLTENE – Key figures and sales development 2009 2. Attractive business model in global dental market 3. Strategy implementation 4. Financials 5. Outlook 6. Q&A 49 Invitation to visit our world-wide locations Cuyahoga Falls (Akron) & BC Vermont USA Langenau (Ulm), Germany Altstätten & Rüt
Slide 26: Further information: www.coltene.com
Further information: www.coltene.com 51