Straumann Holding Ag · SIX:STMN
Straumann — Investor Day (2021)
92 slides from Straumann's investor day presentation, 2021
Slide 1: Welcome to the Capital Markets Day 2021
WELCOME TO THE CAPITAL MARKETS DAY 2021
Slide 2: Disclaimer
Disclaimer 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 or achievements of the Straumann Group to differ materially from
Slide 3: Agenda
Agenda Duration Topic 09:00 - 09:40 Introduction, trends and strategy 09:40 – 10:00 Drive high performance culture and organization 10:00 – 10:20 Expand implant market leadership 10:20 – 10:35 Break 10:35 – 10:55 Become a leading ortho franchise 10:55 – 11:15 Win strategic target groups 11:15 – 11:3
Slide 4: Capital Markets Day 2021
CAPITAL MARKETS DAY 2021 Guillaume Daniellot, Chief Executive Officer
Slide 5: CHF 18 billion addressable market with further big potential
CHF 18 billion addressable market with further big potential 5 Source: Straumann Group estimate
Slide 6: Implantology market
Implantology market 6 5.3 4.8 5 5.3 >10% Implant <5%2021 Market Addressable market 4.8 4 Market size in CHF bn 2.6 2.6 2 32 3 2.1 2.1 billion0.7 million / y 2 1 Market share >45% <15% <5% 0.7 >10% <5% <5% 0 15% <5% <5% Premium Implant Value Implant Clear Aligners Biomaterial Custom prosthetics CadCa
Slide 7: Clear Aligner market
Clear Aligner market 6 5.3 5 Potential ortho Ortho 4 cases Market size case starts 500 2.6 2.6 21 in CHF bn 3 2 million / year million / year 1 Market share >45% <15% <5% 0 Premium Implant Value Implant Clear Aligners Biomaterial Custom prosthetics CadCam equipment 7 Source: Straumann Group estimate
Slide 8: CHF 18 billion addressable market with further big potential
CHF 18 billion addressable market with further big potential 6 5.3 4.8 5 4 Market size in CHF bn 2.6 2.6 3 2.1 2 0.7 1 Market share >45% <15% <5% >10% <5% <5% 0 Premium Implant Value Implant Clear Aligners Biomaterial Custom prosthetics CadCam equipment 8 Source: Straumann Group estimate
Slide 9: CHF 18 billion addressable market with further big potential
CHF 18 billion addressable market with further big potential 6 5.3 4.8 5 4 Market size in CHF bn 2.6 2.6 3 2.1 2 0.7 1 Market share >45% <15% <5% >10% <5% <5% 0 Premium Implant Value Implant Clear Aligners Biomaterial Custom prosthetics CadCam equipment 9 Source: Straumann Group estimate
Slide 10: Evolving our journey
EVOLVING OUR JOURNEY Guillaume Daniellot, Chief Executive Officer
Slide 11: The best way to predict your future
“ The best way to predict your future is to create it. ” - Abraham Lincoln - 11
Slide 12: Dream. Explore. Transform.
Dream. Explore. Transform. 12
Slide 13: Trends
Trends CUSTOMER Customer consolidation Rise of the health consumer PRODUCT Product commoditization Digital transformation TECHNOLOGY Call for sustainability SOCIAL POLITICAL Generation shift & social responsibility 13
Slide 14: Evolved Strategy
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Slide 15: We must execute three strategic shifts simultaneously
We must execute three strategic shifts simultaneously 1 2 3 Single business Product-centric Implant company model / B2B Customer-centric Digitally-powered Multiple business services & solutions oral care company models digital transformation B2B, B2C2B 15
Slide 16: Straumann Group Strategic Compass for the future
Straumann Group Strategic Compass for the future Grow the core Create the new Keeping focus on what is … while investing in what making us successful today will make us successful and in the mid-term … tomorrow 16
Slide 17: Purpose. Vision. Mission.
PURPOSE. VISION. MISSION. 17
Slide 18: Purpose, vision and mission
Purpose: We exist… To unlock the potential of people’s lives Vision: We believe in … A world where oral health is a source of confidence Mission: Our goal is to be … The most customer focused and innovative oral care company in the world 18
Slide 19: 10 million smiles by 2030
Inspired by our purpose, our success can be measured by the number of smiles we are impacting per year 5 million smiles by 2024 ----------------------------------------------- 10 million smiles by 2030 19 Source: Straumann Group calculation per smile: 2 implants or 1 clear aligner case start
Slide 20: Straumann Group Strategic Compass for the future
Straumann Group Strategic Compass for the future 20
Slide 21: Digitalization is transforming our lives
Digitalization is transforming our lives as consumers, as professionals, as human beings 21 Straumann Group Strategy SMM- Day 3 - FOR INTERNAL USE - CONFIDENTIAL
Slide 22: Digital transformation changing the business
Digital transformation changing the business Customer facing Internal products & services processes Data & technology 22 Straumann Group Strategy SMM- Day 3 - FOR INTERNAL USE - CONFIDENTIAL
Slide 23: End-to-end solution for restorative dentistry
End-to-end solution for restorative dentistry Patient acquisition Improve speed and Meeting clinician's Treatment Monitoring Increase conversion and awareness accuracy of diagnosis requirements and follow-up Smile Design for Patient monitoring the patient and follow up Leading CAD/CAM prosthetic sol
Slide 24: Creating a comprehensive digital customer portal
Creating a comprehensive digital customer portal eShop eBills eReturns eshop Diagnosis & Prevention Promaton Vitals Check Learning & Support Learning Diagnosis & LMS & Support Prevention VR Learning Customer Planning & Surgery Support Complaint handling Portal Smile in a Box Impl
Slide 25: Evolving our culture journey
EVOLVING OUR CULTURE JOURNEY Alastair Robertson, Chief People Officer
Slide 26: Drive high-performance culture
Drive high-performance culture 26
Slide 27: Culture is how we do things around here
Culture at Straumann Culture is how we do things around here 27 STG proprietary information
Slide 28: Since 2014 we have intentionally evolved our culture
Since 2014 we have intentionally evolved our culture… Investment in our people and culture is our competitive advantage and needs to be built over time Identification Personal and Strong Leader- and embedding professional Excellent financial led Culture of Core impact of starting journey results, ma
Slide 29: We have two foundational models
We have two foundational models Clear vision, strategy, effective structures & processes Player & Learner “I always have a choice in how I respond” HIGH PERFORMANCE Collaboration, Growth mindset, CULTURE trust, effective ownership, creating communication, opportunities & engagement solutions, curios
Slide 30: We continue to evolve our Culture
We continue to evolve our Culture PURPOSE to unlock the potential of people’s lives VISION A world where oral health is a source of confidence MISSION & STRATEGY CULTURE To bring out the best in each other Build on our heritage to navigate trends and disruption Maintain competitive advantage
Slide 31: Beliefs drive Behavior, Behavior drives Culture and Culture drives Results
Beliefs drive Behavior, Behavior drives Culture and Culture drives Results We are bold and big in our thinking. We strive for true impact through Our entrepreneurial mindsets give us progress, not perfection, as the courage to seize opportunities. speed matters in our business. We empower and inspir
Slide 32: What levers do we pull?
What levers do we pull? BRINGING THE BELIEFS TO LIFE LEADERS AS ROLE MODELS REDEFINED PROCESSES Translate core beliefs to Leaders walk and talk Talent attraction and selection action by understanding Leaders are developed based Global Culture Onboarding what they mean every day on Leadersh
Slide 33: Engagement 2021 at a glance
Engagement 2021 at a glance 87% Response rate, 7% over the global benchmark 80 Engagement score; in the global top 25th percentile benchmark 78 Managerial effectiveness ! 7300 comments 33
Slide 34: Expand implant market leadership
EXPAND IMPLANT MARKET LEADERSHIP Holger Haderer, Head of Implantology Business Unit
Slide 35: Expand implant market leadership
Expand implant market leadership 35
Slide 36: Implantology – attractive market with strong potential
Implantology – attractive market with strong potential Global population Missing teeth Missing teeth can be replaced with >30 7.8 implants >20 billion billion billion Affordability Addressable market Implant Market 2021 10% € 32 of population 2 billion million / y 36
Slide 37: Tapered and non-premium segments represent large potential for future share gains
Tapered and non-premium segments represent large potential for future share gains Implant Dentistry Market volume (Implant fixtures) Parallel walled Fully tapered Value 32 million CHF ~ 5.2 billion units Premium Apically tapered Current Straumann Group market share Implant dentistry market segment c
Slide 38: Premium to gain market share with innovation and value by expanding geographies
Premium to gain market share with innovation and value by expanding geographies Premium implant market – 8 million implants Value implant market – 24 million implants Expansion with innovation Geographical expansion Fully tapered EMEA NAM Apically tapered Parallel walled LATAM APAC Straumann share M
Slide 39: Strategic imperatives to succeed in implantology
Strategic imperatives to succeed in implantology Gain market share Market access expansion Expand Drive market Innovate geographically access 39
Slide 40: Innovation to drive premium implantology - immediacy
Innovation to drive premium implantology - immediacy Straumann® BLX Confidence beyond Immediacy Straumann® TLX Iconic Tissue Level meets Immediacy Straumann® BLT The new tapered standard 2019 Straumann® Zygomatic Designed by experts with the patient in mind 2015 2021 40
Slide 41: Multi-brand strategy
Challenger brands gaining share in value segment with geographical expansion Multi-brand strategy Axiom® X3 Neodent ceramic Zirconia Implant Solution 41
Slide 42: End-to-end solution for restorative dentistry
End-to-end solution for restorative dentistry Patient acquisition Improve speed and Meeting clinician's Treatment monitoring Increase conversion and awareness accuracy of diagnosis requirements and follow-up Smile Design for Patient monitoring the patient and follow up Leading CAD/CAM prosthetic sol
Slide 43: Factors to influence patient flow towards implant therapies
Factors to influence patient flow towards implant therapies – implantology approach Affordability Access to Treatment Awareness Multi-brand strategy, Education, geographies, Campaigns to drive digitalization in implant innovation awareness of implant workflow, efficiency and cost treatment via denti
Slide 44: Less complex implant treatment solutions and education drive market access
Less complex implant treatment solutions and education drive market access Smile in a Box ILAPEO – A partnership for clinical excellence • flexible digital treatment planning and manufacturing service to gain efficiency and practice growth • select the services, Straumann delivers everything needed
Slide 45: Become a leading ortho franchise
BECOME A LEADING ORTHO FRANCHISE Camila Finzi, Head of Orthodontics Business Unit
Slide 46: Become a leading ortho franchise
Become a leading ortho franchise 46
Slide 47: Clear Aligner addressable market
Clear Aligner addressable market 6 5.3 5 15% 4 Market size Potential ortho Ortho Clear Aligner in CHF bn cases case starts cases 500 3 21 4 <5% 2 million / year 0.7 million / year million / year 0.7 <5% <5% 1 <5% Market share <15% <5% <5% <5% >10% 0 Clear Aligners Biomaterial Custom prosthetics CadC
Slide 48: Clear Aligner addressable market
Clear Aligner addressable market 6 5.3 Patient Groups Geographies Target Groups 5 4 Market size in CHF bn NAM, DTC 3 Adults APAC LATAM Ortho- Teens dontists 2 GP EMEA 1 Market share <5% <15% 0 Clear Aligners Biomaterial Custom prosthetics CadCam equipment 48 Source: Straumann Group estimate
Slide 49: Straumann ClearCorrect best positioned for the future
Straumann Clear Correct best positioned for the future • Significant investment in digital technology • Acquisition of ClearCorrect 2017 • Mastering the value chain • Family-owned, majority US-focused • Geographical expansion in sales and • Present in 12 other markets manufacturing 2017 2021 From a
Slide 50: Strategic imperatives to grow Clear Aligner business
Strategic imperatives to grow Clear Aligner business Increase Expand Drive Sharpen value usage for geographical complementary proposition clinicians presence business models 50
Slide 51: Sharpen value proposition and increase usage for clinicians
Sharpen value proposition and increase usage for clinicians Innovation Empowering Clinicians ClearQuartz™ Ease of use ClearPilot™ 51
Slide 52: Our end-to-end solution for GPs and orthodontists
Our end-to-end solution for GP’s and orthodontists Patient acquisition Maintain interest and Meeting clinician's Treatment monitoring Increase conversion and awareness plan requirements and follow-up 52
Slide 53: Expanding geographical sales and manufacturing presence
Expanding geographical sales and manufacturing presence available in46 Education 3 manufacturing sites globally countries today 8 launches scheduled for 2022 53
Slide 54: Drive complementary business models
Drive complementary business models DrSmile is developing in 10 countries in Europe Smilink - entering segment in Brazil Netherlands Sweden United Kingdom Poland Austria France Spain Switzerland Italy 54
Slide 55: Win strategic target groups
WIN STRATEGIC TARGET GROUPS Rahma Samow, Global Head Dental Service Organization
Slide 56: Straumann Group Strategic Compass for the future
Straumann Group Strategic Compass for the future Pilot and scale 56
Slide 57: Consolidation: DSOs gaining importance all over the world
Consolidation DSOs gaining importance all over the world % of implants placed by DSOs in major markets Global DSO presence 2025 2021 ~30% 2015 ~15% ~7% 57 Source: Straumann Group estimate
Slide 58: DSO Challenges
DSO Challenges Fragmented The importance of Qualified dental Driving efficiency, Impact of General patient/consumer staff are in short profitability and Digitalization & Practitioner experience supply standardization Transformation Expertise accelerating 58
Slide 59: Strategic imperatives to succeed with DSOs
Strategic imperatives to succeed with DSOs Support end- Drive practice Improve health to-end network Deliver across consumer ex- Clinical efficiency and all geographies perience Excellence performance 59
Slide 60: Broad offering of solutions and services globally
Broad offering of solutions and services globally IMPLANT SOLUTIONS ORTHODONTICS DIGITAL PREMIUM CHALLENGER ECO CHALLENGER 60 For internal use only
Slide 61: End-to-end solution for dentistry along the patient journey
End-to-end solution for dentistry along the patient journey Patient acquisition Improve speed and Meeting clinician's Monitoring and follow- Increase conversion and awareness accuracy of diagnosis requirements up Smile Design for Patient monitoring the patient and follow up Leading CAD/CAM prostheti
Slide 62: Advancing skills and connecting people
Advancing skills and connecting people Offering a customized DSO online campus and learning pathways E-Learning Hands on Digital Clinical Patient syllabus workshops Mentoring Support engagement 62
Slide 63: Increase efficiency and throughput through digitally enabled workflows
Increase efficiency and throughput through digitally enabled workflows Improve speed Maintain high Efficiency/ Patient acquisition Increase Meeting clinician's and accuracy of quality clinical Performance and awareness conversion requirements diagnosis outcome evaluation Smile Design for Patient mon
Slide 64: Use digital best practice to improve patient experience
Use digital best practice to improve patient experience Full transparency of procedures with in-depth education on your treatment - Cost excellence - Fully auditable workflow - Promotes continuing professional education Fully validated workflow using the latest technology - Full track and traceabili
Slide 65: Winning with DSOs around the world
Winning with DSOs around the world – Well positioned as a holistic and strategic partner Taikang Bybo Dental 65
Slide 66: Financial roadmap
FINANCIAL ROADMAP Peter Hackel, Chief Financial Officer
Slide 67: Milestones
Straumann Group – our company evolved over the years Expansion of addressable market: Key driver for growth and margin increase Implant provider 2012 Total solution provider tooth replacement 2016 Total solution provider esthetic dentistry 2020 Most customer focused and innovative oral care company
Slide 68: From implantology to oral care provider with large footprint in high growth markets
From implantology to oral care provider with large footprint in high growth markets Revenue split 2013 2021 Premium Product mix Value Digital Ortho EMEA Regional mix NAM APAC LATAM 68
Slide 69: Gross margin remained at high level
Gross margin remained at high level Gross profit and margin Since 2013… % margin, CHF million 1’476 • number of stock keeping units (SKU) increased from 4’900 to more than 23’000 • the number of production sites 842 increased from 6 to 17 today, accompanied by increase of manufacturing technologies
Slide 70: Increase in profitability despite significant growth investment
Increase in profitability despite significant growth investment EBIT and margin 530 Since 2013… % margin, CHF million employee base increased from 2’000 to over 8’000 in December 2021 283 number of sales subsidiaries increased from 26 to >70 operational excellence and efficiency increases 116
Slide 71: Significant investments into the expansion of our manufacturing footprint
Significant investments into the expansion of our manufacturing footprint, starting with 6 locations in 2013... Malmö (SE) Biomaterials Arlington (USA) CAD/CAM milling Narita/Chiba (JP) CAD/CAM milling Mendaro (ES) Basel (CH) CAD/CAM milling Global headquarters Andover (USA) Implants and prosthetics
Slide 72: ...to 17 locations as of today...
...to 17 locations as of today... Malmö (SE) Biomaterials Calw (DE) Implants and prosthetics Markkleeberg (DE) Arlington (USA) CAD/CAM milling, CAD/CAM milling Montreal (CA) clear aligners Digital equipment Fremont (USA) Rheinfelden (CH) Thermoplastics CAD/CAM milling, Narita/Chiba (JP) prosthetics
Slide 73: ... and 20 locations by 2022
… and 20 locations by 2022 Malmö (SE) Biomaterials Mansfield (USA) Calw (DE) CAD/CAM milling Implants and prosthetics Narita/Chiba (JP) Markkleeberg (DE) CAD/CAM milling Arlington (USA) CAD/CAM milling, CAD/CAM milling Montreal (CA) clear aligners Beijing (CN) Digital equipment Clear aligners Fremon
Slide 74: A strong balance sheet for future investments
A strong balance sheet for future investments Operating Cash Flow Net debt Position Equity Ratio CHF million CHF million thereof • CHF 280 million bond maturing in Oct 2023 • CHF 200 million bond * maturing in Oct 2025 Margin Margin Margin 22% 20% 20% HY2021 Total HY2021 Cash and cash senior debt Ne
Slide 75: Strategy to achieve CHF 5 billion by 2030
Strategy to achieve CHF 5 billion by 2030 Total addressable market CHF 18 billion Implants CHF 5.2 billion Total addressable market 32 million implants CHF 18 billion Ortho Biomaterials CHF 5.3 billion CHF 0.7 billion 21 million cases per year CAD/CAM equipment Custom prosthetics CHF 2.1 billion CHF
Slide 76: Key drivers to generate CHF 5 billion by 2030
Key drivers to generate CHF 5 billion by 2030 High performance culture Business Excellence at Straumann Support end-to-end clinical excellence Sustainability Drive practice network efficiency and performance Improve health consumer experience Deliver across all geographies Innovate
Slide 77: Illustrative revenue split in 2030
Illustrative revenue split in 2030 2021 2030 Premium Value Product mix Digital Ortho EMEA Regional mix NAM APAC LATAM 77
Slide 78: Growth ambition
Growth ambition Barring unforeseen circumstances Sales CHF 5 billion by 2030 with an organic CAGR of at least 10% Operating Core EBIT margin range 25-30%* Profitability depending on growth investments Dividend policy Continuous increase of gross dividend 78 * At constant FX rates
Slide 79: Sustainability
SUSTAINABILITY Peter Hackel, Chief Financial Officer
Slide 80: Sustainability – part of the Strategic Compass
Sustainability – part of the Strategic Compass As part of the family heritage, sustainability has always been embedded in the company's DNA Sustainability Task-Force in 2021 Materiality Assessment conducted to determine baseline Framework and Targets further defined for roll-out in 2022 S
Slide 81: Materiality Assessment: importance to stakeholders
Materiality Assessment: Quantitative insights Straumann Group Materiality Assessment / 26th July 2021 critically important 5.00 Approx. 80 internal and external stakeholder interviewed 4.80 Business ethics Patient health and safety Rating on importance to stakeholders and 4.60 Importance to stakehol
Slide 82: Our strategic sustainability framework
OUR STRATEGIC SUSTAINABILITY FRAMEWORK 82
Slide 83: Sustainability at Straumann Group – 4 commitments
Sustainability at Straumann Group – 4 commitments EMPOWERING PEOPLE ADVANCING ORAL CARE CARING FOR THE PLANET AND SOCIETY ACTING OUR PURPOSE: WITH To unlock the potential RESPONSIBILITY of people’s lives 83
Slide 84: Advancing oral care - targets
Advancing oral care - targets We aim to be at the forefront of innovative solutions in oral care with patient’s health and safety in mind. Together with our strategic partners, we improve access to oral care for people all over the world. 10 million smiles We believe in fostering customer learning a
Slide 85: Empowering people - targets
Empowering people - targets We believe having an inclusive, diverse and empowering culture is at the heart of a successful company. Our employee’s wellbeing, their continuous learning and growth as well as ensuring the 50% women highest standards of occupational health and safety are instrumental fo
Slide 86: Caring for the planet and society - targets
Caring for the planet and society - targets We are safeguarding the environment, by minimizing our emissions, managing our waste, and reducing our use of materials, energy and water. We are responsibly managing our supply chain relationships and contributing to our local communities’ development. 10
Slide 87: Acting with responsibility - targets
Acting with responsibility - targets As a global business we are leading by example, through our ethical approach and sound governance. We are carefully managing our risks and ensuring that every aspect of our business complies with relevant standards and regulations. We are shaping a company with
Slide 88: Sustainability targets overview
ADVANCING EMPOWERING ORAL CARE PEOPLE 10 million smiles by 2030 50% women in Maintain 35% of educational leadership positions by 2026 activities in low- and middle-income 80% of our people countries tell us that they have good EMPOWERING opportunities to learn and UN SDGs: PEOPLE grow at Strauman
Slide 89: Bringing it all together
BRINGING IT ALL TOGETHER Guillaume Daniellot, Chief Executive Officer
Slide 90: Growth Architecture
Growth Architecture PURPOSE To unlock the potential of people’s life VISION: A world where oral health is a source of confidence MISSION & STRATEGY CULTURE To be the most customer focused & innovative oral care company in the world 90
Slide 91: Key numbers to remember
Key numbers to remember 1 CHF 18 billion 4 At least 10% average addressable market organic growth annually 2 3 global brands 5 80% engagement score 3 10 million smiles by 2030 91
Slide 92: Thank you
Thank you 92