COLTENE Holding AG · SIX:CLTN
COLTENE — FY2014 Earnings Presentation
30 slides from COLTENE's earnings presentation, Mar 4, 2015
Slide 1: Financial Year 2014 Media and Financial Analysts Meeting
Financial Year 2014 Media and Financial Analysts Meeting Zurich, March 4, 2015
Slide 2: Agenda
Agenda Highlights 2014 Martin Schaufelberger, CEO Financials 2014 Gerhard Mahrle, CFO The Brands You Trust Martin Schaufelberger, CEO Outlook Martin Schaufelberger, CEO 2014 Results, March 4, 2015
Slide 3: Achievements 2014
Achievements 2014 Sharp increase in operating profit and net profit • Sales of CHF 162.3 million, up 1.5%, 3.0% in LC Double-digit sales growth in LC in India, China and Taiwan Well performing in Brazil with growth of 6.4% in LC North America in line with market development Stiff competition
Slide 4: Market Environment
Market Environment Innovation stimulates future growth • Structural changes impacting business model Steady increase in sales over the internet Increasing number of dental group practices Rising percentage of women in the dental profession • Market growth varied from region to region 10% and
Slide 5: Management Actions 2014
Management Actions 2014 Adapting to structural change and current market needs • Finalizing successful implementation of corporate strategy Globalization of the Group’s structure Steady improvement of operational efficiency • Wide-raging marketing efforts COLTENE umbrella brand to raise market
Slide 6: Breakdown by Product Groups
Breakdown by Product Groups Strong Rotary Instruments Comments • Sharply higher sales in the Rotary Instruments product group: plus 14.1% to CHF 12.4 million • Sales in the Treatment Auxiliaries product group surged by more than 25% to % CHF 21.3 million • Prosthetics increased its sales by 6.9% to
Slide 7: Regional Breakdown
Regional Breakdown Strong emerging markets Comments • Double-digit sales growth achieved in India, China and Taiwan with increases of 16.6%, 23.7% and 20.9% in LC • North America and Asia delivered higher sales in LC of 3.6% and 9.5%, respectively % • Markets in Europe and South America showed diver
Slide 8: New Products
New Products Pave the ground for future growth Restoration Endodontics Fill-up! HyFlex EDM Innovative composite material Root canal file with a special surface to fill up deep cavities in one step coating to minimize fracturing BRILLIANT EverGlow Guttaflow Bioseal New universal light-cured fine hybr
Slide 9: Proposals to AGM
Proposals to AGM • Distribution of CHF 2.50 per share Payout ratio: 67.5% Dividend yield based on year-end share price of CHF 63.00: 4.0% • Compensation of the Board of Directors and Executive Management Approval of maximum aggregated amount of compensation for the members of the Board of Dire
Slide 10: Agenda: Financials 2014
Agenda Financials 2014 Gerhard Mahrle, CFO 2014 Results, March 4, 2015
Slide 11: Financial Summary
Financial Summary Improved profitability in the third consecutive year • Net sales of CHF 162.3 million (2013: CHF 160.0 million), plus 1.5% or 3.0% in LC • EBIT margin increase to 13.8% (2013: 12.2%); EBIT of CHF 22.4 million (2013: CHF 19.4 million), plus 15.2% • Net profit for the period increa
Slide 12: Income Statement
Income Statement Strong operating results Comments In CHF million 2014 % 2013 % % YoY • Net sales increase +1.5%; in LC +3.0% Net Sales 162.3 100.0% 160.0 100.0% 1.5% • Slight increase of gross profit Material expenses* -48.2 -29.7% -47.7 -29.8% 1.2% margin (+0.1%) and gross profit Gross Profit 114.
Slide 13: Operating Result
Operating Result Further improvements 23.0 Comments +1.3 -0.1 22.4 • Sales growth and absolute 22.5 increase of gross margin: 22.0 CHF 1.8 million 21.5 +1.8 • OPEX savings: CHF 1.3 million 21.0 in CHF million • Higher depreciation and 20.5 amortization: 20.0 19.4 CHF 0.1 million 19.5 • Operational i
Slide 14: Development of Profit for the Period
Development of Profit for the Period Significantly increased 18.0 Comments 0.8 -1.4 • Positive impact from financial 17.0 result: CHF 0.8 million due to +1.3 -0.1 15.6 significantly lower net currency 16.0 losses and slightly higher +1.8 interest expenses because of in CHF million 15.0 higher gross
Slide 15: Balance Sheet
Balance Sheet High equity ratio and low net debt Comments In CHF million 31.12.14 31.12.13 YoY Cash & cash equivalents 18.3 6.5 11.8 • Cash and cash equivalents Receivables 38.2 32.8 5.4 amount to CHF 18.3 million Inventory 29.6 29.7 -0.1 • Reduction of net debt by 75% Property, plant & equipment 30
Slide 16: Cash Flow Statement
Cash Flow Statement Free cash flow >10% net sales Comments Cash Flow (in CHF million) 2014 2013 % YoY • Cash flow from operations decreased despite higher net Net profit 15.6 13.2 profit of CHF 2.4 million by Depreciation and amortization 5.3 5.2 CHF 3.4 million mainly due to Other non-cash items 5.
Slide 17: Share Price Development
Share Price Development 1.1.2013 – 1.2.2015 CHF million 31.12.14 31.12.13 D Market Capitalization 265.8 193.4 37.4% Consolidated Equity 104.1 97.7 6.6% CLTN SPI 17 2014 Results, March 4, 2015
Slide 18: Agenda: COLTENE Marketing and Sales Concept
Agenda COLTENE Marketing and Sales Concept Martin Schaufelberger, CEO 2014 Results, March 4, 2015
Slide 19: The Brands You Trust
The Brands You Trust SPEEDEX AFFINIS GELATAMP BIOSONIC COMPONEER HYFLEX 2014 Results, March 4, 2015
Slide 20: The Brands You Trust
The Brands You Trust First-class service Quality Safety Innovation and efficiency • Employee • Safe product • Employee • Regular customer development handling partnerships with contact • Training and • Risk elimination universities • Rapid and professional of material • Continuous professional devel
Slide 21: Agenda: Outlook
Agenda Outlook Martin Schaufelberger, CEO 29 2014 Results, March 4, 2015
Slide 22: Outlook: Currency exchange rates
Outlook Currency exchange rates • Analysts shared a preview of consequences of CHF/EUR FX changes • Translation effects in 2014 of current FX situation resulting from reporting in CHF • Relatively low exposure regarding profitability due to natural hedging – Manufacturing sites in Switzerland, Germa
Slide 23: Outlook: Envisaging new growth
Outlook Envisaging new growth • Structural changes ask for global players COLTENE intends to take an active role Planned addition of innovative technologies to the portfolio and strengthening the Group’s global footprint • Expected moderate growth of the overall market of 2% to 4% in the mid-ter
Slide 24: Thank you for your Attention!
Thank you for your Attention !
Slide 25: Contacts
Contacts COLTENE Holding AG Feldwiesenstrasse 20 9450 Altstätten Switzerland www.coltene.com Martin Schaufelberger Gerhard Mahrle CEO CFO martin.schaufelberger@coltene.com gerhard.mahrle@coltene.com +41 71 757 53 60 +41 71 757 54 37 2014 Results, March 4, 2015
Slide 26: Appendix
Agenda Appendix 2014 Results, March 4, 2015
Slide 27: COLTENE at a Glance
COLTENE at a Glance Global dental specialist Swiss based small cap with Highly recognized worldwide sales through dental global brands for chair-side distributors and about 200 sales dental consumables representatives Development and Strong emerging market operations in Europe, position with 28% of
Slide 28: The Brands you Trust
The Brands you Trust Restoration Prosthetics Endodontics Treatment Auxiliaries Rotary Instruments Infection Control 17 2014 Results, March 4, 2015
Slide 29: Key Figures COLTENE Group (2012-2014)
Key Figures COLTENE Group (2012-2014) Half year steps in CHF million (except dividend information in CHF) Net sales EBIT EBIT Margin 100.0 16.0 20.0% 14.0 80.0 12.0 15.0% 60.0 10.0 8.0 10.0% 40.0 6.0 4.0 5.0% 20.0 2.0 0.0 0.0 0.0% H1/12 H2/12 H1/13 H2/13 H1/14 H2/14 H1/12 H2/12 H1/13 H2/13 H1/14 H2/
Slide 30: Safe Harbour Statement
Safe Harbour Statement The information made available in this conference may include forward-looking statements that reflect intentions, beliefs or current expectations and projections of COLTENE Holding AG about the future results of operations, financial condition, liquidity, performance and simil