Straumann Holding AG · SIX:STMN
Straumann — H1 2002 Earnings Presentation
22 slides from Straumann's earnings presentation, August 2002
Slide 1: Interim Results 2002
straumann Interim Results 2002
Slide 2: Contents
Contents • Interim Results 2002 • Key elements of corporate strategy • Outlook
Slide 3: Key figures
Key figures H1 2001 H1 2002 YoY Change, % CHF LC Sales 119.4 141.3 18.4 21.5 EBITDA 38.9 50.8 30.4 - % of sales 32.6 35.9 EBIT 32.6 40.2 23.3 31.0 % of sales 27.3 28.4 Net income 23.1 28.5 23.7 - % of sales 19.3 20.2 EPS 1.49 1.84 23.5 -
Slide 4: Sales growth in line with target
Sales growth in line with target Net Sales H1 2001 - H1 2002 in million CHF YoY in % 250 80% 70% 200 60% 141.3 50% 150 21.5% growth 119.4 40% in local currencies 100 24.7% 30% 18.4% 20% 50 10% 0 0% H1 2001 H1 2002
Slide 5: North America leading in growth
North America leading in growth Country sales performance H1 2001 – H1 2002 YoY Sales growth Sales H1 Sales % 2002 contribution CHF million % of sales CHF LC Europe 86.9 61 18.9 22.7 • Germany 34.8 25 15.3 19.9 • Switzerland 10.1 7 22.2 22.2 • Spain 10.6 8 18.5 23.2 • Italy 6.6 5 30.3 - North Americ
Slide 6: Strong CHF slowing down growth
Strong CHF slowing down growth Net sales per quarter and region, CHF million 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 Europe 36.6 36.5 31.5 36.6 42.9 44.2 YoY growth CHF 20.8% 21.7% 28.3% 18.7% 16.7% 21.0% YoY growth locals 26.2% 25.4% 31.8% 21.9% 20.0% 25.4% North America 14.3 15.9 15.4 15.2 17.2 20.8 YoY gro
Slide 7: Increased R&D spending
Increased R&D spending Income statement, cost of sales, CHF million YoY % of Sales H1 2001 H1 2002 Change % H1 01 H1 02 Sales 119.4 141.3 18.4 COGS 26.4 26.7 1.1 22.1 18.9 General Administration 11.7 12.8 9.4 9.8 9.1 Sales & Distribution 40.1 47.6 18.7 33.6 33.8 R&D 8.6 14.0 62.8 7.2 9.9 EBIT 32.6 4
Slide 8: Productivity levels maintained
Productivity levels maintained Income statement, full cost method, CHF million YoY % of Sales H1 2001 H1 2002 Change % H1 01 H1 02 Sales 119.4 141.3 18.4 Cost of mat. & goods 16.1 13.5 -16.1 13.5 9.6 Personnel expense 33.4 40.7 21.9 28.0 28.8 Depr. & Amortization 6.3 10.6 68.3 5.3 7.5 Other oper. ex
Slide 9: Extraordinary items impact performance
Extraordinary items impact performance CHF million 2.5 45.6 0.9 2.0 40.2 Margin expansion to 31.5% compared to 28.4% in 2001 H1 2002 Impaired Pension FX effect H1 2002 development reserve cost adjustment
Slide 10: Strong operating cash flow
Strong operating cash flow in million CHF Cash flow operation 50 Cash flow investments 40 34.5 Cash flow financing 30 22.8 20 10 0 -10 -8.8 -10.3 -11.3 -20 -18.2 -30 H1 2001 H1 2002
Slide 11: Straumann Biologics impacting capex
Straumann Biologics impacting capex Investment details, CHF million 20 0.3 Financial Assets 18 Land and buildings 16 Tangible assets 5.3 14 Intangible assets 12 10 0.4 8 6 12.7 5.5 4 2 2.8 0 H1 2001 H1 2002
Slide 12: Stable working capital
Stable working capital Working capital details, CHF million Change % of Sales 2001 H1 2002 % 2001 H1 2002 Inventory 39.2 40.8 +3.8 17.0 14.4 Other current assets 36.1 45.7 +26.6 15.6 16.2 Current liabilities 39.4 41.9 +6.3 17.0 14.8 Net working capital 35.9 44.6 +24.0 15.5 15.8
Slide 13: Improved key performance ratios
Improved key performance ratios 2001 H1 2002 Return on Assets 20.9% 25.8% Return on Capital 42.5% 47.4% Employed Return on Equity 31.1% 36.8%
Slide 14: Financial targets 2002 confirmed
Financial targets 2002 confirmed Net sales growth • LC 20 - 21% • CHF 17 - 19% EBIT margin 27 - 29% Net income margin 20 - 21%
Slide 15: Contents
Contents • Interim Results 2002 • Key elements of corporate strategy • Outlook
Slide 16: Market dynamics
Market dynamics • Implants fastest growing segment in an overall stagnating dental products market • Intact future growth potential due to low penetration and significant advantages of implant-based solutions over conventional solutions • Direct sales channels, customer relationships and brand reput
Slide 17: Customer characteristics
Customer characteristics • Fast growth leading to increased specialization and fragmentation of customer base • Surgically active dental professionals of particular importance to manufacturers, since they are the principal decision makers regarding choice of implant system • Prosthetically active de
Slide 18: Key strategic objectives
Key strategic objectives • Focus on oral implantology business, i.e. implants and implant-related prosthetics, and oral soft/hard tissue regeneration: – No diversification into areas where core competencies cannot be applied – Complementation of core business through selective partnerships • Maintai
Slide 19: Products and marketing
Products and marketing • Maximize simplicity and versatility of implant system through selective streamlining or complementation • Maintain product safety and quality through extensive documentation and cooperation with ITI • Introduce Biologics products • Specifically address different customer seg
Slide 20: On track with objectives for 2002
On track with objectives for 2002 • Implement divisional organisation – return to stability and continuity • Bring to market product solutions in the area of immediate placement and ceramics • Expand competitive position in key markets • Integrate and develop activities in Biologics • Roll-out of ER
Slide 21: Contents
Contents • Interim Results 2002 • Key elements of corporate strategy • Outlook
Slide 22: straumann
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