the world leader in innovative evidence-based esthetic...
TRANSCRIPT
Disclaimer:This presentation contains forward-looking statements that are subject to various risk and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing.
Nobel Biocare in 60 Seconds
> Number 1 position globally and in all regions
> SWX market cap of CHF 11.5 bn> >2100 employees worldwide> The one-stop shop for restorative
esthetic dentistry> Leading in science, training and
education, innovation> Our focus is the patient and the
dental professional our customer
The world leader in innovative evidence-based esthetic dental solutions
Profit Lines of Income Statement Show All New Record Levels
Profit for the periodEBIT marginEBITGross marginGross profitRevenue
Operating Cash Flow
*Revenue growth in local currencies
Q1 2007 EUR
21.026.9%
43.9
84.2%137.6163.5
1.76Basic earnings p. share10.7
26.1%37.2
83.7%119.5142.7
Q1 2006 EUR
1.48
34.0%
+96%+80bp+18%
+50bp+ 15%+20%*
Growth
+19%
-55.6 48.5 +15%
34.0%
Profit margin
Strong Performance track record since 2001
> More than doubled revenues in five years
FY 2001: Euro 288.2 Mio. FY 2006: Euro 600.6 Mio.
> Outgrowing the market since 2003
Revenue Growth (%)
EBIT margin 2001 - 2006
10%
15%
20%
25%
2002 2003 2004 2005 2006 Q107
19.7%
15%
20%
25%
30%
35%
40%
2002 2003 2004 2005 2006 Q107
20.3%
12.4%
> Highest EBIT margin in the dental industry
FY 2001: 13.5 % FY 2006: 34.0 % Q1 2007: 34.0 %
34.0 %
Maintained Record EBIT Margin Despite Significant Higher Social Charges
ReportedEBIT
marginQ1 06
34.0%+0.5%
Grossmargin
Operatingexpenses
-2.4%
EBITmarginQ1 07
34.0%
ReportedEBIT
marginQ1 07
36.4%
Socialcharges
+1.9%
Record Net Profit for the quarter
Net ProfitQ1 06
37.2
GrossProfit
Operatingexpenses
Taxes
18.1
in EUR million
-7.0
EUR 7.1 millioncontribution
to EBIT
-4.0
SocialCharges
1.7
Financialresult
-2.1
43.9
Net ProfitQ1 07
Balance Sheet and Cash Flow at a Glance
10.721.0Cash Flow from operations
72%76%Equity/Asset ratio1.83.5in percent of revenue2.65.77.512.8in percent of revenue
25.325.2in percent of revenue*144.3164.5Current receivables
4.94.5in percent of revenue*27.729.7Inventories
31/03/200631/03/2007MEUR
Capital Expenditures
* annualized
Strong Operational Cash Flow – doubled vs Q1 2007
Cash available
Jan 1
130.9
Operatingactivities
Investingactivites
OtherFinancingActivities /Currency
impact
21.0
in EUR million
-5.7
0.3
Interest Share buyback
-7.5
9.1 148.1
Cash availableMar 31
Operational Highlights – Q1 2007
Employees
1000
1250
1500
1750
2000
2250
2001 2002 2003 2004 2005 2006 Q107
> 115 new employees in Q1 2007> 50% new employees since end of
2001
2001: 1328 employees2006: 1993 employees
2 108
Global workforce expansion
Trainer and Educator of the Industry
> Q1 2007 - 75,000 participants in the Group’s training programs,
> +22% compared to Q1 2006.
0
50
100
150
200
250
300
350
400
2002 2003 2004 2005 2006 Q107 Target2007
Number of trained (000)
1 328
Operational Highlights – Q1 2007
> New state-of-the-art Europeandistribution center opened in Venlo, the Netherlands.
> ISO 13485:2003 certified
Distribution Center, Venlo (NL)
> Shop Online orders for standard components increased by more than 50% compared to Q1 2006.
> Together with Procera, 20% of all orders are coming through Shop Online.
Shop Online
State-of-the-art Infrastructure
You decide – we provide
Operational Highlights – Q1 2007
> FY 2006 1,336 editorial articles> Q1 2007 312 editorial articles,
26% more than Q1 2006> NobelSmile patient campaign in 34
countries
Editorial articles
50
0
250
500
750
1000
1250
1500
2003 2004 2005 2006 Q1 2007
312297
Reduce lack of Information
World Market Leader in C&B&I
> No. 1 position globally> No. 1 position in North America,
Europe, Asia and Rest of the World
> World market leader in C&B&I> Root-to-tooth solutions
Market Shares in Dental Implant MarketSource: Company Reports and Nobel Biocare estimates
37% Nobel Biocare
22%Straumann
11% Biomet/3i
9% Zimmer
6% Dentsply
15% Others
Leader in All Regions
Q1 2007 Revenues by Region (MEUR) Revenue Growth by Region (%) Q107 vs. Q106
Europe
North AmericaAsia/Pacific
Rest of World
9.0
79.1
53.322.1
0
10
20
30
40
50
60
NorthAmerica
Europe Asia/Pacific ROW
24%
31% 33%
12%
48%
33%14%
5%
10%
18%
45%49%
Source: WHO
6-10% of the Worldwide Population is FullyEdentulous
USA 33 % >65 years 20.000.000Brasil 74 % >65 years 8.800.000United Kingdom (one jaw) 30 % >55 years 3.800.000Germany 25 % >65 years 3.000.000Spain 37 % >65 years 2.400.000 Canada 58 % >65 years 2.300.000 Italy 19 % >65 years 2.200.000France 16 % >65 years 1.600.000Netherland 64 % >65 years 1.500.000Portugal 70 % >65 years 1.400.000Belgium 41 % >65 years 740.000Switzerland 27 % >65 years 250.000Sweden 13 % >65 years 200.000
Nearly 50 million fully edentulous people in the western world
Source: WHO
China 11 % >65 years 14.500.000India 19 % >65 years 10.400.000Japan 20 % >65 years 4.000.000Indonesia 24 % >65 years 3.200.000Vietnam 23 % >65 years 1.100.000Southkorea 22 % >65 years 950.000Thailand 16 % >65 years 820.000Malaysia 57 % >65 years 690.000Hong Kong 20 % >65 years 160.000
... and another 36 million people in Asia
Huge Untapped Worldwide Market Potential to Serve Fully Edentulous People
Source: WHO and Nobel Biocare estimates
Estimated € 50 bn Market Potential in North America, Europe, Japan
Sustainable Future Growth Potential in the Tooth Replacement Market
>240 million people missing one tooth or more (North America, Europe, Japan)~ 60 million patients treated conventionally
~ 8 million patients treated with dental implants
> Market penetration in North America, Europe and Japan still around 3%
> € ~ 50 bn Market Potential North America, Europe, Japan
> China, India, Russia, Latin America largely untapped
> Sustainable industry growth for coming years of 18 – 20% p.a.
3%
19%
78%
Nobel Biocare Grows Faster than the Market
10
15
20
25
30
2001 2002 2003 2004 2005 2006
Revenue Growth Rates 2001-2006 in %
Nobel BiocareMarket (MRG)*
Source: MRG and Nobel Biocare estimates
* Based on MRG’s overall market - Nobel Biocare excluded
> Above market growth in every region
> Strong growth in emerging markets
Limitations for Growth
Lack of informationLack of educationEducation in Universities
Dental professionalLack of informationFear of PainAffordabilityTimeAllergiesBone quality & quantity
Patient
… and Nobel Biocare has Unique Solutions for all
Lack of information
Lack of education
Education in universities
Dental professional
Lack of information
Fear of pain
Affordability
Time
Allergies
Bone quality & quantity
PatientNobelSmile Awareness Campaign
Graftless Proc. / Minimal Invasive
Overdenture / All-on-4 /Teeth-in-an-hour
Immediate Function / NobelGuide
Metal Free Solution (ZiUnite)
Bone Inductive Implant (BMP-2)
World Conference / World Tour
Training & Education / World Tour
University undergraduate programs
NobelSmile Campaign & Find a doctor
Dental professional
Patient
Lim
itatio
ns fo
r Gro
wth
Gro
win
g th
e M
arke
t
Uni
que
Nob
el B
ioca
re
Solu
tions
Trendsetter of the Industry with the Highest Number of High Impact Introductions
> 1965 First modern dental implant > 1988 Inventor of CAD/CAM in
dentistry> 1995 Inventor of modern ceramic
materials in dentistry> 1997 Replace tapered implant> 2002 Immediate Function> 2003 NobelPerfect> 2004 NobelDirect
NobelRondoPersonalized abutments for Straumann, 3i, Zimmer and Lifecore
> 2005 NobelGuide Teeth-in-an-HourGroovyNobelSpeedy / ShortyTiUnite all the way up
> 2006 Procera Bridge AluminaProcera Laminate
Trendsetter of the Industry with the Highest Number of High Impact Introductions - 2007
> NobelRondo PressProcera Implant Bridge ZirconiaProcera Bridge Zirconia for teeth (for up to 14 units)
> Platform shiftingQuickTemp Abutment conicalMaxillofacial ConceptNobelActiveCurvy Abutment
Overcome Fear of Pain – Immediate Function
> TiUnite® maintains initial stability > TiUnite®: Biomaterial with proven
osteoconductivity> TiUnite®: Carrier for bioactive
agents. No grafting and no membranes needed
> 75 Studies* on Immediate Function™
> 5 year data with excellent results
Only Surface with a Proven Clinical Protocol for Immediate Function
6000
6300
6600
6900
0 1 Week 1 Month 2 Months 3 Months 6 Months
TiUnite Machined Surface
*Source: Medline
Results of resonance frequency analyses show that the high initial stability achieved with TiUnite® is maintained at a high level throughout the healing phase. Glauser et al. Applied OsseointegrationResearch 2001;2:27-29.0
Reduce Limitations of Time
> NobelGuide™ a system for complete oral rehabilitation
> FDA approved since 2004> One surgical visit required with
NobelGuide™> NobelGuide™ is a proven
concept with full flexibility
3 - 4 Visitswith NobelGuide™
10 VisitsConvential Approach
Treatment PlanningTreatment PlanningSurgical Procedure Surgical Procedure
Relining
Remove Stitches
Abutment Connection
Temporary Prosthetic Solution
Temporary / Final Prosthetic Solution
Soft-tissue Control
Impression
Try in of Prosthesis
Final ProstheticSolutions
Final ProstheticSolutions
Reduce Limitation Lack of Patient Informationwww.nobelsmile.com
> NobelSmile Campaign in 34 countries and 20 languages with patient feature:
> Search for a doctor> NobelSmile website: 250,000
visitors in 2006> Direct patient dialogue to inform on
today’s treatment solutions> National patient information events > Information packages for patients> Collaborations with spokespersons
Patient Seminar on World Tour in Dresden 2006
Previous Nobel Biocare World Conferences
> 20032,600 participants62 speakers84 presentations
> 2005
6,000 participants
176 speakers
7 live sessions
40 translators
74 different nationalities attending
0
2000
4000
6000
8000
10000
12000
2003 2005
Nobel Biocare World Conference 2007
> 200710, 000 participants340 speakers from 34 countries35 live sessions2,143 presentations313 scientific posters
91 nationalities attending0
2000
4000
6000
8000
10000
12000
2003 2005 2007
All Nobel Biocare Solutions are Evidence Based
> Over 1800 peer reviewed scientific publications
> Strongest scientific database in the industry
> More than 50% of all scientific studies come from Nobel Biocare
> >600 renowned scientists and dental practitioners
> All products launched globally with FDA approval
> 60 university research collaborations worldwide
0
20
40
60
80
100
NB ITI 3i Astra Others
MedLine database, April 2007
Nobel Biocare has more Studies on Immediate Function than the other Companies Together
Nobel Biocare’s Strong Commitment to Social Responsibility
> SOS-Children’s Villages, Kiev, Ukraine
> P-I Brånemark Institute, Bauru, Brazil – Donation run institute for treatment for needy patients requiring osseointegratedreconstructions
> iADH - International organization for the treatment of disabled patients
> Cleft-Children, organization for the treatment of children with severe cleft lip and palate
P-I BrånemarkInstitute, Bauru