Straumann Holding Ag · SIX:STMN
Straumann — 9M 2006 Earnings Presentation
25 slides from Straumann's earnings presentation, Oct 25, 2006
Slide 1: 2006 Nine-Month and Third-Quarter Sales Briefing
2006 Nine-Month and Third-Quarter Sales Briefing Analyst Conference Call 25 October 2006
Slide 2: Disclaimer
Disclaimer This presentation contains certain “forward-looking statements”, which can be identified by use of terminology such as “expect”, “expectation”, “intend”, “continue”, “achieve”, “maintain”, “improve”, “foresee”, “anticipate”, “product innovations”, “outlook”, “forecast”, or similar wording
Slide 3: Agenda
Agenda 1. Financial performance and US update 2. Advances in the standard of patient care 3. Opportunities to spur future growth 4. Outlook 5. Q&A STRAUMANN 3 25 October 2006
Slide 4: Solid double-digit revenue growth across all regions
Solid double-digit revenue growth across all regions 9M 2006 revenue growth by region 9M 2006 revenue by region Group: 16% (l.c.), 18% (CHF) (Total: CHF 437 million) RoW (CHF 9m) Asia / Pacific (CHF 42m) 17% 18% 18% 17% 2% 10% 14% 13% North America Europe (CHF 111m) 25% (CHF 275m) 63% Europe North A
Slide 5: Net revenue driven by organic expansion
Net revenue driven by organic expansion Contribution to 9M 2006 net revenue growth in % 2006 organic growth by quarter in % 21 2.0 17.8 1.0 15.8 14.8 14 10 Organic Acquisition Growth Currency Growth Q1 Q2 Q3 growth effect in l.c. effect in CHF STRAUMANN 5 25 October 2006
Slide 6: Continued revenue growth over 9-month period
Continued revenue growth over 9-month period CHF million 2006 2006 Q1 Q2 Q3 9M Europe 99.9 94.7 80.4 275.0 growth in CHF (%) 25.5 11.8 17.2 18.1 growth in locals (%) 24.6 10.6 15.6 16.8 North America 36.9 37.3 36.7 110.9 growth in CHF (%) 27.8 17.7 9.3 17.8 growth in locals (%) 14.6 14.6 11.8 13.7 A
Slide 7: Actions taken to spur growth in US
Actions taken to spur growth in US • Key leadership position filled • Initiatives to increase sales-force productivity and effectiveness - Sales organization doubled since 2004 - Optimization of structure, territory planning and customer coverage - Sales training program upgraded - Competitive, real
Slide 8: Successful profitable US operation
Successful profitable US operation Sales Employees (USD) CAGR 25% CAGR 24% 2002 2006E 2002 2006E Costs Profit contribution (USD) (%) CAGR 25% CAGR 24% 2002 2006E 2002 2006E STRAUMANN 8 25 October 2006
Slide 9: Agenda
Agenda 1. Financial performance and US update 2. Advances in the standard of patient care 3. Opportunities to spur future growth 4. Outlook 5. Q&A STRAUMANN 9 25 October 2006
Slide 10: Continuing commitment to treatment quality and patient care through ITI
Continuing commitment to treatment quality and patient care through ITI • ITI Treatment Guide Vol. 1 launched • National congresses in Germany, Brazil and Italy in Q3 with 3000 participants • 13 national congresses in 2006, >10 000 participants • Build-up to first Asia Congress (Shanghai) in Decembe
Slide 11: SLActive – Unparalleled leadership in surface technology
SLActive – Unparalleled leadership in surface technology • Third-generation surface well received, especially in US; contribution to sales exceeds expectations • Premium pricing (≥30%) to continue • Fully-automated production to start 2007 • Initial results from a large-scale study shows good bone-l
Slide 12: SLActive promotes regeneration in bone defects
SLActive promotes regeneration in bone defects* SLA SLActive New bone Histological cross-sections at 2 weeks after implant placement STRAUMANN * Results from preclinical studies presented by Becker J, Schwarz F (Heinrich-Heine 12 25 October 2006 University, Düsseldorf, Germany) at 15th Ann. Sci. Mee
Slide 13: Defect completely filled at 12 weeks with SLActive
Defect completely filled at 12 weeks with SLActive SLA SLActive New bone Histological cross-sections at 12 weeks after implant placement STRAUMANN Results from preclinical studies presented by Becker J, Schwarz F (Heinrich-Heine University, 13 25 October 2006 Düsseldorf, Germany) at 15th Ann. Sci. M
Slide 14: New solutions for restricted space in the esthetic zone
New solutions for restricted space in the esthetic zone Strong esthetic provisionals • Titanium/polymer • Easy and fast to shape • Minimal chair-time • Individual soft-tissue management High-strength small- diameter implant • Extended indications • Single-tooth replacement Unique SLActive surface •
Slide 15: Regenerative products to support esthetic solutions
Regenerative products to support esthetic solutions Emdogain PLUS • New product combination for wide periodontal defects • Rolled out Europe-wide in Q3 • US submission in preparation; launch planned in 2007 Membrane • Fully-synthetic PEG-hydrogel membrane for GBR1 • All endpoints met in clinical tri
Slide 16: Agenda
Agenda 1. Financial performance and US update 2. Advances in the standard of patient care 3. Opportunities to spur future growth 4. Outlook 5. Q&A STRAUMANN 16 25 October 2006
Slide 17: Leading position to capture growth opportunities in Europe
Leading position to capture growth opportunities in Europe • Maintain overall market leadership through continued investment in sales, marketing and education • Direct distribution in all major countries attained • Continuous operating improvement in established markets; develop emerging Eastern Eur
Slide 18: Fundamentals in place for North American growth
Fundamentals in place for North American growth • New leadership to drive growth momentum through sales productivity and education initiatives • Explore opportunities for extrinsic growth to increase share of voice STRAUMANN 18 25 October 2006
Slide 19: Extending direct access to Asia/Pacific region
Extending direct access to Asia/Pacific region • Establish direct presence in all key markets; negotiations underway with main distributors for transfer of distribution to Straumann • Establish Asian regional office (planned 2008) STRAUMANN 19 25 October 2006
Slide 20: Continuing leadership in evidence-based innovation
Continuing leadership in evidence-based innovation Project Key benefit Pre-clinical Clinical Introduction Roll-out Potential Hydrophilic surface 3 large scale >30% of 11 studies SLActive cuts healing time to studies continuing 2005 Europe 2008 Japan implant unit completed 2006 N. America 3-4 weeks >
Slide 21: Continuing leadership in evidence-based innovation
Continuing leadership in evidence-based innovation Project Key benefit Pre-clinical Clinical Introduction Roll-out Potential Up to 10% of 2006 Europe Reliable, customized Extensive 2 trials ongoing 2005 Europe prosthetic CARES 2007 NA high-end esthetics durability testing >60 patients (key mkts) 200
Slide 22: Agenda
Agenda 1. Financial performance and US update 2. Advances in the standard of patient care 3. Opportunities to spur future growth 4. Outlook 5. Q&A STRAUMANN 22 25 October 2006
Slide 23: Outlook (barring unforeseen circumstances)
Outlook (barring unforeseen circumstances) On the basis of developments over the first nine months, the Group still expects full-year net revenue to grow around 15% in local currencies. Full-year operating and net profit margins are estimated to be around 29% and 23% respectively. Looking further ah
Slide 24: Agenda
Agenda 1. Financial performance and operational achievements 2. Advances in the standard of patient care 3. Opportunities to spur future growth 4. Outlook 5. Q&A STRAUMANN 24 25 October 2006
Slide 25: Important dates
Important dates Business Businessreporting reportingdates dates 7 February 2007 2006 full-year results 30 March 2007 Shareholders' Annual General Meeting 3 May 2007 Q1 sales 9 August 2007 H1 results 2 November 2007 9M and Q3 sales Selected Selectedcongresses congressesand andmeetings meetings 2-3 De