Straumann Holding Ag · SIX:STMN
Straumann — FY2024 Earnings Presentation
41 slides from Straumann's earnings presentation, Feb 19, 2025
Slide 1: 2024 Full-Year Results
2024 FULL-YEAR RESULTS Presentation for investors, analysts and media Basel, February 19, 2025
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements, including statements regarding the beliefs, expectations and assumptions of future results, performance or achievements of Straumann Group, that are based upon information available to Straumann Group as of the date such statements ar
Slide 3: Agenda
AGENDA Highlights Guillaume Daniellot Financials Yang Xu Recent achievements & strategy Guillaume Daniellot Outlook 2025 Guillaume Daniellot Q&A Guillaume Daniellot, Yang Xu 3
Slide 4: Highlights
HIGHLIGHTS Guillaume Daniellot, CEO 4
Slide 5: Our purpose is to unlock the potential of people's lives
OUR PURPOSE IS TO UNLOCK THE POTENTIAL OF PEOPLE’S LIVES OUR SUCCESS IN NUMBER OF SMILES 6.7 million smiles1 in 2024 Increase of 1.1 million vs. last year Ambition: 10 million smiles by 2030 1 Source: Straumann Group; calculation per smile: 2 implants or 1 clear aligner case start
Slide 6: Strong organic revenue growth of 13.7%
STRONG ORGANIC REVENUE GROWTH OF 13.7%1 Organic revenue growth in 2024 EBIT margin at constant FX3 Regional performance 13.7% 27.6% EMEA CHF 2.5 bn revenue in 2024 Core EBIT margin 26% +12.3% organic growth2 in Q4 CHF 645 m revenue in Q4 including currency headwinds Implantology and Orthodontics dri
Slide 7: Strong growth in an environment with varied regional market dynamics
STRONG GROWTH IN AN ENVIRONMENT WITH VARIED REGIONAL MARKET DYNAMICS EMEA NAM FY 11.3% FY 3.6% Q4 24 12.3% Q4 24 3.3% 40 %* 28 %* GROUP FY 13.7% Q4 11.5% LATAM 9% * 23 %* FY 15.6% APAC Q4 24 17.1% FY 33.3% Q4 24 18.9% 7 * % of FY 2024 Group total revenue
Slide 8: Financials
FINANCIALS Yang Xu, CFO 8
Slide 9: Strong result despite continued FX headwinds
STRONG RESULT DESPITE CONTINUED FX HEADWINDS REVENUE DEVELOPMENT BREAKDOWN IN CHF MILLION, ROUNDED +10.0% Regional % share of +13.7% organic growth Organic 29 2’504 147 8 NAM 10 LATAM 24 102 34 EMEA 2’277 25 2’202 -100 Change in organic growth 48 APAC +11.3% +3.6% +33.3% +15.6% Revenue FX effect M&A
Slide 10: Growth across all businesses
GROWTH ACROSS ALL BUSINESSES IMPLANTOLOGY KEPT ITS STRONG VOLUME GROWTH PACE Tooth replacement Tooth alignment Digital solutions and restoration 10
Slide 11: Core gross margin at 71.4%
CORE GROSS MARGIN AT 71.4%1 IN %, ROUNDED -240 bps 74.3 0.2 73.8 0.1 71.4 71.2 -0.7 -0.8 -0.9 -0.8 -0.2 IFRS gross Non-core FX effect Core gross Portfolio China VBP Investment Productivity Core gross Non-core IFRS gross profit margin items profit margin mix effect & Campus & Other effect profit marg
Slide 12: Core EBIT margin reached 26.0%
CORE EBIT MARGIN REACHED 26.0%1 AT 2023 EXCHANGE RATES THIS REPRESENTS 27.6% In %, rounded1 -70 bps 1.7 26.3 26.7 1.1 0.2 26.0 -1.3 0.2 24.0 -2.4 -2.0 IFRS EBIT Non-core FX effect Core EBIT Gross profit Distribution Administration Other Core EBIT Non-core IFRS EBIT Margin items margin change expense
Slide 13: Strong full-year free cash flow
STRONG FULL-YEAR FREE CASH FLOW1 IN CHF MILLION, ROUNDED Free Cashflow CHF 373m (14.9% of Net Revenue) in FY 2024 -8.5% 539 -353 410 432 375 -164 -57 Cash Net Cash Net Cash Net Cash Cash Balance before Discontinued Operations Cash 1 Jan Operating Investing Financing & FX on Cash Discontinued Ops. 31
Slide 14: Full-year core financials at a glance
FULL-YEAR CORE FINANCIALS AT A GLANCE CORE NET PROFIT ROSE 15% TO 502 MILLION AT CONSTANT CURRENCIES Core Financials for Continuing Operations FY 20241 % of Revenue CER Change in %2 CER Margin Change2 REVENUE 2 504 15.0% COGS -716 28.6% GROSS PROFIT 1 788 71.4% 11.3% -240 bps Operating expenses -1 1
Slide 15: Continued capital allocation principles
CONTINUED CAPITAL ALLOCATION PRINCIPLES FOCUS ON GROWTH INVESTMENT In priority order 1 Reinvest in sustainable business growth 2 Maintain strong balance sheet 3 Pursue M&A to accelerate strategy 4 Maintain and increase dividend with earnings growth 15
Slide 16: Further increase in dividend
FURTHER INCREASE IN DIVIDEND • Proposed1 dividend of total CHF 0.95 per share; thereof CHF 0.38 to be paid from capital contribution reserve • Payable on April 16, 2025 (ex-dividend: April 14, 2025) • Core payout ratio of 30.3% 0.95 0.80 0.675 0.675 0.575 0.575 0.525 0.475 0.40 0.425 0.375 0.375 0.3
Slide 17: Recent achievements & strategy
RECENT ACHIEVEMENTS & STRATEGY Guillaume Daniellot, CEO 17
Slide 18: Significant market share gains in core business
SIGNIFICANT MARKET SHARE GAINS IN CORE BUSINESS IN BOTH PREMIUM & VALUE SEGMENTS WITH AMPLE OPPORTUNITY TO GROW Global implantology market size (CHF bn) Premium and value segment (CHF bn) 6 5.4 5.6 5 ~50-55% ~15-20% Market 2.9 3.1 opportunity Premium Value STMN share 29% 30% 32% 35% 2021 2022 2023 2
Slide 19: Massive growth potential due to low implant penetration
MASSIVE GROWTH POTENTIAL DUE TO LOW IMPLANT PENETRATION 900 2024 implant penetration per 10K adult population1 800 700 600 500 400 300 Market opportunity 200 Current penetration 100 VBP - South Korea Spain France Germany Brazil USA China UK + Ireland India 19 Source: Implant volume data Straumann Gr
Slide 20: Huge opportunities in implantology and beyond
HUGE OPPORTUNITIES – IN IMPLANTOLOGY AND BEYOND ADDRESSABLE MARKET GREW FROM CHF 19 BN TO ABOUT CHF 20BN GLOBALLY 6 5.6 4.7 Straumann Group share Market within the addressable size market in 2024 in CHF bn 2.6 Market 35% 0.7 12.5% share % 35% ~15% ~3% >5% <5% Implantology Regeneratives ClearAligner
Slide 21: Clear and consistent strategic road map
CLEAR AND CONSISTENT STRATEGIC ROAD MAP THREE PILLARS TO CREATE ADDITIONAL CUSTOMER VALUE Innovation Education Digitalization 21
Slide 22: Innovation - iEXCEL - four implant designs in one system
INNOVATION - IEXCEL- FOUR IMPLANT DESIGNS IN ONE SYSTEM +10% MARKET SHARE1 OVER THE NEXT 4 YEARS REPRESENTS A POTENTIAL CHF200M MARKET OPPORTUNITY Unique clinical performance • Less invasive: Roxolid allows Ø3.75 for all tooth positions BLC TLC BLX TLX • SLActive surface supports osseointegration In
Slide 23: Innovation in implantology - driving efficiency
INNOVATION IN IMPLANTOLOGY - DRIVING EFFICIENCY CREATING VALUE FOR CLINICIANS SIRIOS Falcon GalvoSurge BLC BLX 23
Slide 24: Innovation as growth driver in the value segment
INNOVATION AS GROWTH DRIVER IN THE VALUE SEGMENT IN 2024 NEODENT INNOVATED IN THE FIELD OF GUIDED SURGERY Neodent Zi Guided Surgery precision and predictability Sleeve protocol Sleeveless protocol versatility for customers and improved clinical outcomes 24
Slide 25: Education - extensive global scientific networks for clinical excellence
EDUCATION – EXTENSIVE GLOBAL SCIENTIFIC NETWORKS FOR CLINICAL EXCELLENCE ITI: The largest dental scientific network worldwide ITI WORLD SYMPOSIUM >5 500 PARTICIPANTS ITI: The largest dental scientific network worldwide 25
Slide 26: Education in China will expand market and our share
EDUCATION IN CHINA WILL EXPAND MARKET AND OUR SHARE VBP COMBINED WITH OUR INTENSIFIED GO-TO-MARKET STRATEGY UNLOCKED POTENTIAL Shanghai Campus Massive market penetration opportunities VBP boosted awareness and affordability 26
Slide 27: Education - multi-pricing strategy
EDUCATION – MULTI-PRICING STRATEGY LED TO MARKET PENETRATION AND PORTFOLIO DIVERSIFICATION Multi-pricing strategy Premium implantology Diversified Premium portfolio Challenger implantology, Clear aligners & Digital 2007 2023 Challenger Western Europe Increased Emerging markets Eco-Challenger global
Slide 28: ClearCorrect improved treatment planning capabilities and intensified education
CLEARCORRECT IMPROVED TREATMENT PLANNING CAPABILITIES AND INTENSIFIED EDUCATION Innovation Education > 1’600 ACTIVITIES IOS Integrations ClearCorrect ClearPilot SIRIOS and others Sync App 2.1 Doctor Portal 9.0 28
Slide 29: Digitalization - driving practice efficiency
DIGITALIZATION – DRIVING PRACTICE EFFICIENCY 1 Engage 2 Diagnose 3 Plan 4 Treat Patient data acquisition AI supported diagnotics Increased conversion treatment reliability & efficiency STRAUMANN® SIRIOS Smile in a Box Software& Smilecloud Platform 3SHAPE Integration TRIOS ClearPilot coDiagnostiX UN!
Slide 30: Edge!Up - mindset is key to drive digitalization
EDGE!UP – MINDSET IS KEY TO DRIVE DIGITALIZATION EMBRACING THE OPPORTUNITIES AND CHALLENGES PRESENTED BY THE DIGITAL AGE 30
Slide 31: Our culture ultimately drives results
OUR CULTURE ULTIMATELY DRIVES RESULTS Alexei Costa New Head of LATAM region and Neodent • Joined Straumann Group on February 1, 2025 82 engagement score • 20 years of leadership experience in the healthcare and medical devices industry Among the top 10% of surveyed companies globally • Senior roles
Slide 32: Tangible progress on our sustainability targets
OUR PURPOSE TO UNLOCK THE POTENTIAL OF PEOPLE’S LIVES TANGIBLE PROGRESS ON OUR SUSTAINABILITY TARGETS Education activities in low- and middle- Renewable Net-zero emissions income countries electricity1 target 40% 100% -19% 1 up 12 percentage points 2024 goal achieved, On track to achieve new 2030 go
Slide 33: Sustaining our continued growth through significant investments
SUSTAINING OUR CONTINUED GROWTH THROUGH SIGNIFICANT INVESTMENTS Innovation & Technology Capacity & Supply chain Talent & Expertise 33
Slide 34: Outlook 2025
OUTLOOK 2025 BARRING UNFORESEEN CIRCUMSTANCES Market environment and assumption Revenue and profitability • Uncertain economic environment remains • Organic revenue growth in the high single-digit percentage range • Group believes global patient flow should remain stable • With 30 to 60 basis points
Slide 35: Thank you - any questions?
THANK YOU ANY QUESTIONS? 35
Slide 36: Published today
Published today 36
Slide 37: Calendar of upcoming events
CALENDAR OF UPCOMING EVENTS 2025 Event Location February 20-21 Roadshow with ZKB Zurich, Geneva March 4 MS European Healthcare Conference London March 5 UBS European Healthcare Conference London March 6 Roadshow with Bernstein Paris March 26 IDS 2025 (International Dental Show) Cologne April 10 Annu
Slide 38: Core results reconciliation
CORE RESULTS RECONCILIATION Consolidation result former (in CHF 1 000) IFRS M&A Impairments Restructuring Legal cases associates Other CORE Revenue 2 503 900 0 0 0 2 503 900 Cost of goods sold (720 519) 2 937 0 1 479 0 0 0 (716 104) Gross profit 1 783 381 2 937 0 1 479 0 0 0 1 787 796 Other income 1
Slide 39: Reported financials at a glance
REPORTED FINANCIALS AT A GLANCE IFRS Financials FY 20241 % of Revenue CER Change in %2 CER Margin Change2 REVENUE 2 504 15.0% COGS -721 28.8% GROSS PROFIT 1 783 71.2% 11.4% -230 bps Operating expenses -1 197 47.8% Other Result 15 0.6% EBIT 601 24.0% 10.4% -100 bps Financial result -35 1.4% Associate
Slide 40: Currency exposure
CURRENCY EXPOSURE Revenue breakdown FY 2024 Exchange rates development 2023 – 2024 . CHF 120.00 Other 4.6% 19.7% EUR 110.00 24.3% BRL 100.00 6.4% 90.00 CNY 15.4% 80.00 USD/CAD/AUD 12/2022 03/2023 06/2023 09/2023 12/2023 03/2024 06/2024 09/2024 12/2024 29.7% USDCHF EURCHF CNYCHF BRLCHF Total cost bre
Slide 41: Thank you
THANK YOU 41