2016 9-months sales presentation - straumann...2016 9-months sales presentation webcast for...

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2016 9-months sales presentation Webcast for investors, analysts & media Basel, 27 October 2016 1 Disclaimer This presentation contains certain forward-looking statements that reflect the current views of management. Such statements 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 those expressed or implied in this presentation. Straumann is providing the information in this presentation as of this date and does not undertake any obligation to update any statements contained in it as a result of new information, future events or otherwise. The availability and indications/claims of the products illustrated and mentioned in this presentation may vary according to country. 2

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Page 1: 2016 9-months sales presentation - Straumann...2016 9-months sales presentation Webcast for investors, analysts & media Basel, 27 October 2016 1 ... Straumann Amann Girrbach chairside

27.10.2016

1

2016 9-months sales presentationWebcast for investors, analysts & media

Basel, 27 October 2016

1

Disclaimer

This presentation contains certain forward-looking statements that reflect the current views of

management. Such statements 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 those expressed or implied in this presentation. Straumann is

providing the information in this presentation as of this date and does not undertake any

obligation to update any statements contained in it as a result of new information, future

events or otherwise.

The availability and indications/claims of the products illustrated and mentioned in this

presentation may vary according to country.

2

Page 2: 2016 9-months sales presentation - Straumann...2016 9-months sales presentation Webcast for investors, analysts & media Basel, 27 October 2016 1 ... Straumann Amann Girrbach chairside

27.10.2016

2

HighlightsMarco Gadola, CEO

Strong all-round performance continues in Q3

1 Organic growth – i.e. excluding the effects of currency fluctuations and acquired/divested business activities4

R E V E N U E G R O W T H Q 3 B U S I N E S S E S S T R O N G E S T R E G I O N S

+12.5%in organic terms1

Double-digit growth

North America & APAC

+14.4% in CHF continues across all businesses; Instradent posts triple-digit increase

Entry into Argentina (2nd largest market in LATAM)

P R O D U C T H I G H L I G H T S T R A T E G I C H I G H L I G H T S F U L L - Y E A R G U I D A N C E

Variobase®

abutment family

Creatingopportunities

On track

Versatile, cost-effective solution; high double-digit growth since launch 3 years ago; 400 000 sold

EMEA reorganization to free up resources for emerging markets; Instradent European hub operational; shared technology platform expanded

…to achieve low-double-digit organic revenue growth with further EBIT margin improvement (barringunforeseen circumstances)

Page 3: 2016 9-months sales presentation - Straumann...2016 9-months sales presentation Webcast for investors, analysts & media Basel, 27 October 2016 1 ... Straumann Amann Girrbach chairside

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A fourth consecutive quarter of double-digit growth

5

North America28% of Group

Organic revenue growth in %

17.3

15.5

Q3 9MLATAM

10% of Group

EMEA 45% of Group

APAC17% of Group

12.5

14.3

Q3 9M

Group

7.7

9.5

Q3 9M

17.0

19.4

Q3 9M

12.7

14.5

Q3 9M

Business and regional reviewPeter Hackel, CFO

Page 4: 2016 9-months sales presentation - Straumann...2016 9-months sales presentation Webcast for investors, analysts & media Basel, 27 October 2016 1 ... Straumann Amann Girrbach chairside

27.10.2016

4

585.3

5.4 5.7

596.4

26.4

25.318.1

8.9

675.1

Revenue 9M2015

FX effect M&A effect Revenue 9M2015 @ FX

2016

EMEA NorthAmerica

APAC LATAM Revenue 9M2016

Change in organic growth

Strong expansion across all regions

7

Revenue development (in CHF million, rounded)

2015 2016

0.9% 15.5% 14.5%9.5% 19.4%1.0%

Contribution to growth

EMEA

NorthAmerica

APAC

LATAM

34%

32%

23%

11%

15.3% in CHF13.2% organic

Revenue change (organic)

56%

Robust Q3; results generally positive

Iberia, Italy and France among the principal contributors

Zinedent joint-venture in Turkey adds to growth

7.7%

11.1% 9.4% 8.3% 8.5% 8.3%

Q3Q2Q12016

Q4Q3Q2

EM

EA

No

rth

Am

eric

a

Strong performance; +17% in Q3

Healthy growth in all business segments

BLT helps win new general dentists and surgeons (40% of Straumann implants sold in region are BLT)

Instradent reports notable gains

28%

8

17.3% 16.9%

12.5%

6.6% 6.1%

9.3%

Q3Q2Q12016

Q4Q3Q2

45%

EMEA robust – impressive performance in North America

Page 5: 2016 9-months sales presentation - Straumann...2016 9-months sales presentation Webcast for investors, analysts & media Basel, 27 October 2016 1 ... Straumann Amann Girrbach chairside

27.10.2016

5

56%

Growth in Q3 exceeds market growth

Key performer: China

Chinese value segment entered -first full quarter of sales from Anthogyr

17.0%20.2%21.0%20.0%

13.2%12.8%

Q3Q2Q12016

Q4Q3Q2

Asi

aP

acif

icL

ATA

M 12.7%

17.2%

13.3%16.8%

1.3%

15.6%

Q3Q2Q12016

Q4Q3Q2

Q3 revenue up 13% from comparatively low baseline

Strong performances in Mexico and Brazil (despite stagnant market)

Strong demand for BLT – LATAM overtakes other regions in less than a year

17%

10%

APAC & LATAM keep the pace up

9

Revenue change (organic)

Implants

Double-digit growth in all businesses

10

Restorative Biomaterials

Page 6: 2016 9-months sales presentation - Straumann...2016 9-months sales presentation Webcast for investors, analysts & media Basel, 27 October 2016 1 ... Straumann Amann Girrbach chairside

27.10.2016

6

Update on strategic progressMarco Gadola, CEO

Drive a high performance culture and organization

Target unexploited growth markets & segments

Become THE Total Solution Provider for Tooth Replacement

12

Update on our strategic priorities

Page 7: 2016 9-months sales presentation - Straumann...2016 9-months sales presentation Webcast for investors, analysts & media Basel, 27 October 2016 1 ... Straumann Amann Girrbach chairside

27.10.2016

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13

Entry into LATAM’s 2nd largest market – Argentina

Subsidiary in Buenos Aires goes into operation

and will address premium and non-premium

segments

Distributor business taken over

Direct access to Argentinian market through own

marketing, sales force, education, etc.

2nd largest market in Latin America with ~400k

implants placed in 2015: 97 per 10k population1)

1 Straumann estimates

14

Instradent Europe now operational – value offering and competitive position strengthened

European hub in Freiburg, Germany,

to serve countries without Instradent

organizations and to accelerate

market penetration

Hub provides warehouse, distribution

& supply, customer services, as well

as commercial management for

customers, distributors and agents

New markets served directly by hub

Markets with established Instradent subsidiaries

Page 8: 2016 9-months sales presentation - Straumann...2016 9-months sales presentation Webcast for investors, analysts & media Basel, 27 October 2016 1 ... Straumann Amann Girrbach chairside

27.10.2016

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15

Rapidly expanding footprint in the non-premium segment

Neodent home market Instradent/Manohay footprint

Instradent/Neodent distributorsMedentika home market

Equinox home market

Re-allocation in Europe to free up resources foremerging markets (effective 01.2017)

16

Europe Distributor/emerging markets

Wolfgang BeckerEVP Distributor & Emerging Markets

EMEA

Jens DexheimerEVP Europe

Subsidiaries reallocated

Page 9: 2016 9-months sales presentation - Straumann...2016 9-months sales presentation Webcast for investors, analysts & media Basel, 27 October 2016 1 ... Straumann Amann Girrbach chairside

27.10.2016

9

Production expansion to meet growing demand

Premium segment

Villeret (CH) & Andover (US) to increase output by a quarter in 2016/17

through capacity optimization and investments in plant & equipment

Value segment

Curitiba (BR) will almost

double capacity in coming

years

17

Drive a high performance culture and organization

Target unexploited growth markets & segments

Become THE total solution provider for tooth replacement

18

Update on our strategic priorities

Page 10: 2016 9-months sales presentation - Straumann...2016 9-months sales presentation Webcast for investors, analysts & media Basel, 27 October 2016 1 ... Straumann Amann Girrbach chairside

27.10.2016

10

Steps initiated to become a ‘Total Solution Provider’

§

Digital Dentistry

Fully integrated digital treatment workflow

Today Expansion areas

1919

Prosthetics

3rd party prosthetics

Restoration materials

Standard & customized

Regenerative

Bone augmentationMembrane

Soft tissue repair

Wound healingEnhanced bone

regenerationGeographical reach

Diagnosis & treatment planning

Implant

Tooth replacement

Accelerated treatment protocols

Implant maintenance

Premium ValueCommon technology andmanufacturing platform

Technology & manufacturing platform: update and further expansion

Brazil (100%) Germany (51%)

S. Korea(arbitration)

Spain (30%)

Canada (55%)

Germany

Germany (100%)

20

Taiwan (49%)

USA (13%)

Switzerland (44%)

Austria

Taiwan(conv. bond)

France (30%)

India (100%)(coming months)

Implants CADCAM/prosthetics Regeneratives

Turkey (50%)(joint venture)

Canada (30%)

Page 11: 2016 9-months sales presentation - Straumann...2016 9-months sales presentation Webcast for investors, analysts & media Basel, 27 October 2016 1 ... Straumann Amann Girrbach chairside

27.10.2016

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21

Straumann invests in V2R Biomedical –specialist in guided-surgery planning

Canadian company specialized in guided-surgery planning since 2008

30% stake acquired with option to increase to full ownership

‘Smile-in-a-box’ concept to provide drill guide plus all components

together for single/multiple/full-arch replacements in a single surgical

appointment

Data acquisition

Planning & design

“Smile in a box”Production Surgery

22

Innovative, amorphous, diamond-like, carbon coating (ADLC) for durability

Removable, variable matrix inserts (low maintenance)

Precise alignment & seating; original Straumann connection

Successful launches in Europe & Australia; other markets to follow

Developed by Swiss technology partner Valoc

Preferred alternative to previous system

Straumann launches Novaloc® attachment system for implant-borne removable dentures

Page 12: 2016 9-months sales presentation - Straumann...2016 9-months sales presentation Webcast for investors, analysts & media Basel, 27 October 2016 1 ... Straumann Amann Girrbach chairside

27.10.2016

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23

New chairside system enters controlled marketrelease

Straumann Amann Girrbach chairside mill

Market acceptance tests underway in Central

Europe

Straumann/Dental Wings intra-oral scanner

Attractively priced; launched in US (Benco and

Burkhart)

Pilot in Germany; further test markets in Europe to

follow with rollouts planned in 2017

24

Reach broadened to become a total solution provider

Lab scanning

Chairside milling

Centralised milling

ManufacturingProsthetic design Scan of patient case

or 3rd party scanners

Intra-oral scanning

In-lab milling / practice lab

Page 13: 2016 9-months sales presentation - Straumann...2016 9-months sales presentation Webcast for investors, analysts & media Basel, 27 October 2016 1 ... Straumann Amann Girrbach chairside

27.10.2016

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25

Planmeca adds distribution power for Straumann’s n!ce™ material

Unique glass ceramic for single-tooth restoration, optimized for chairside (‘mill-polish-seat’ concept; no crystallization firing required1)

Commercialization through all Straumann Group channels underway

Global distribution rights granted to Planmeca Oy to add marketing power and to help build the brand worldwide,

Planmeca is a well-established leader in high-tech dental markets worldwide; range includes dental equipment, software and CADCAM solutions

1 Crystallization process typically takes 10-20 minutes, depending on material and oven equipment

Cooperation with Zirkonzahn SARL opens door to new group of lab customers

Zirkonzahn to distribute Straumann Variobase® abutments

International supplier of lab solutions, including prosthetics for a wide

range of implant systems

Customers using Zirkonzahn’s digital workflow gain easy access to

Straumann cost-effective abutments with original connections

Test-market roll-out under way in Germany

26 Zirkonzahn is a registered brand name of the respective company.

Page 14: 2016 9-months sales presentation - Straumann...2016 9-months sales presentation Webcast for investors, analysts & media Basel, 27 October 2016 1 ... Straumann Amann Girrbach chairside

27.10.2016

14

Outlook 2016

Guidance 2016 reiteratedBarring unforeseen circumstances

Straumann expects the global implant

market to grow solidly in 2016 and is

confident that it can continue to

outperform

Aims to achieve full-year organic growth

in the low-double-digit range

Despite further investments in strategic

growth initiatives, the expected revenue

growth and operational leverage should

lead to further improvements in the

underlying full-year EBIT margin (2015:

23%).

28

Page 15: 2016 9-months sales presentation - Straumann...2016 9-months sales presentation Webcast for investors, analysts & media Basel, 27 October 2016 1 ... Straumann Amann Girrbach chairside

27.10.2016

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Questions & answers

Calendar of upcoming events2016

27 October Q3 revenue publication Webcast

02 November Vontobel Healthcare Tour Basel

15 November Investor meetings Zurich

17 November Credit Suisse Mid Cap Conference Zurich

08 December Credit Suisse European Healthcare Trip HQ, Basel

2017

12 January Bellevue Meets Management Seminar Zurich

16 February Full-year results conference HQ, Basel

07 April AGM 2016 Messe Basel

Social media

Analyst Talk Executive interviews Straumann.com / youtube.com

StraumannIR Investor Relations Twitter @StraumannIR

More information on straumann.com → Events30

Page 16: 2016 9-months sales presentation - Straumann...2016 9-months sales presentation Webcast for investors, analysts & media Basel, 27 October 2016 1 ... Straumann Amann Girrbach chairside

27.10.2016

16

CHF37%

EUR19%

USD/CAD/AUD24%

BRL11%

Other11%

CHF9%

EUR33%

USD/CAD/AUD29%

BRL10%

Other19%

Straumann’s currency exposure

1 These distribution charts represent the total net revenues and the total COGS, as well as OPEX in the various currencies. All numbers are rounded and based on FY 2015 figures and include Neodent since 1 March 2015.

Cost breakdown FY20151

Revenue breakdown FY20151

Average exchange rates (rounded)FX sensitivity

(+/- 10%) on full-year...

2014 2015 9M 2016 Revenue EBIT

1 EURCHF 1.21 1.08 1.09 +/- 26m +/- 16m

1 USDCHF 0.92 0.96 0.98 +/- 20m +/- 7m

1 BRLCHF 0.389 0.295 0.277 +/- 8m +/- 2m

100 JPYCHF 0.86 0.88 0.90 +/- 5m +/- 3m

31

50

70

90

110

130

2014 2015 2016

EURCHF BRLCHF USDCHF JPYCHF

Your contacts

32

Corporate Investor Relations

Fabian Hildbrand

Tel. +41 (0)61 965 13 27

[email protected]

Corporate Communications

Mark Hill Thomas Konrad

Tel. +41 (0)61 965 13 21 Tel. +41 (0)61 965 15 46

[email protected] [email protected]