2016 9-months sales presentation

27.10.2016
2016 9-months sales presentation
Webcast for investors, analysts & media
Basel, 27 October 2016
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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.
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27.10.2016
Highlights
Marco Gadola, CEO
Strong all-round performance continues in Q3
REVENUE GROWTH Q3
BUSINESSES
STRONGEST REGIONS
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)
PRODUCT HIGHLIGHT
STRATEGIC HIGHLIGHTS
FULL-YEAR GUIDANCE
Creating
opportunities
On track
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 (barring
unforeseen circumstances)
+12.5%
in organic
terms1
Variobase®
abutment family
Versatile, cost-effective solution;
high double-digit growth since
launch 3 years ago; 400 000 sold
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Organic growth – i.e. excluding the effects of currency fluctuations and acquired/divested business activities
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27.10.2016
A fourth consecutive quarter of double-digit
growth
Organic revenue growth in %
North America
28% of Group
EMEA
APAC
45% of Group
17% of Group
17.3
9.5
15.5
19.4
7.7
17.0
Q3
Q3
9M
9M
LATAM
10% of Group
14.5
Group
Q3
9M
14.3
12.7
12.5
Q3
9M
Q3
9M
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Business and regional review
Peter Hackel, CFO
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27.10.2016
Strong expansion across all regions
Revenue development (in CHF million, rounded)
15.3% in CHF
13.2% organic
18.1
25.3
11%
LATAM
23%
APAC
32%
North
America
34%
EMEA
8.9
26.4
5.7
5.4
675.1
596.4
585.3
0.9%
Revenue 9M
2015
FX effect
Change in organic growth
1.0%
M&A effect Revenue 9M
2015 @ FX
2016
9.5%
15.5%
19.4%
14.5%
EMEA
North
America
APAC
LATAM
2015
Revenue 9M
2016
Contribution to
growth
2016
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EMEA robust – impressive performance in North
America
Revenue change (organic)
EMEA
45%
8.3%
North America
Q2
8.5% 8.3%
Q3
Q4
11.1%
56%
9.4%
Q1
2016
Q2
 Robust Q3; results generally
positive
7.7%
Q3
16.9% 17.3%
12.5%
9.3%
28%
Q2
6.1%
6.6%
Q3
Q4
Q1
2016
Q2
Q3
 Iberia, Italy and France among the
principal contributors
 Zinedent joint-venture in Turkey
adds to growth
 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
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27.10.2016
APAC & LATAM keep the pace up
Revenue change (organic)
Asia Pacific
20.0% 21.0% 20.2%
17%
12.8% 13.2%
LATAM
Q2
Q3
Q4
10%
Q1
2016
Q2
Q3
13.3%
Q3
Q4
Q1
2016
12.7%
Q2
 Chinese value segment entered first full quarter of sales from
Anthogyr
 Q3 revenue up 13% from
comparatively low baseline
1.3%
Q2
 Growth in Q3 exceeds market
growth
 Key performer: China
17.2%
16.8%
15.6%
17.0%
56%
Q3
 Strong performances in Mexico and
Brazil (despite stagnant market)
 Strong demand for BLT – LATAM
overtakes other regions in less than
a year
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Double-digit growth in all businesses
Implants
Restorative
Biomaterials
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Update on strategic progress
Marco Gadola, CEO
Update on our strategic priorities
Drive a high performance culture and organization
Target unexploited growth markets & segments
Become THE Total Solution Provider for Tooth Replacement
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27.10.2016
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)
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1
Straumann estimates
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
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27.10.2016
Rapidly expanding footprint in the non-premium
segment
Neodent home market
Instradent/Manohay footprint
Medentika home market
Instradent/Neodent distributors
Equinox home market
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Re-allocation in Europe to free up resources for
emerging markets (effective 01.2017)
Wolfgang Becker
EVP Distributor &
Emerging Markets
EMEA
Jens Dexheimer
EVP Europe
Europe
Subsidiaries reallocated
Distributor/emerging markets
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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
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Update on our strategic priorities
Drive a high performance culture and organization
Target unexploited growth markets & segments
Become THE total solution provider for
tooth replacement
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27.10.2016
Steps initiated to become a ‘Total Solution Provider’
Diagnosis &
treatment planning
Regenerative
Implant
Prosthetics
Standard & customized
Bone augmentation
Membrane
Soft tissue repair
Tooth replacement
Accelerated treatment
protocols
§
Implant
maintenance
3rd party prosthetics
Wound healing
Enhanced bone
regeneration
Geographical reach
Restoration materials
Digital Dentistry
Fully integrated digital treatment workflow
Today
Expansion areas
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Technology & manufacturing platform:
update and further expansion
Germany (100%)
Premium
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Canada (55%)
Brazil (100%)
Germany (51%)
France (30%)
Turkey (50%)
(joint venture)
Spain (30%)
USA (13%)
Germany
Switzerland (44%)
S. Korea
(arbitration)
Taiwan (49%)
Austria
Canada (30%)
Taiwan
(conv. bond)
India (100%)
(coming months)
Common technology and
manufacturing platform
Implants
CADCAM/prosthetics
Value
Regeneratives
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27.10.2016
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
Production
“Smile in a box”
Surgery
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Straumann launches Novaloc® attachment
system for implant-borne removable dentures
 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
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New chairside system enters controlled market
release
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
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Reach broadened to become a total solution
provider
Centralised
milling
Intra-oral
scanning
In-lab milling /
practice lab
Lab
scanning
Chairside
milling
or 3rd party scanners
Scan of patient case
Prosthetic design
Manufacturing
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27.10.2016
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
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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
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Zirkonzahn is a registered brand name of the respective company.
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27.10.2016
Outlook 2016
Guidance 2016 reiterated
Barring 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%).
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27.10.2016
Questions & answers
Calendar of upcoming events
2016
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
12 January
Bellevue Meets Management Seminar
Zurich
16 February
Full-year results conference
HQ, Basel
07 April
AGM 2016
Messe Basel
2017
Social media
Analyst Talk
Executive interviews
Straumann.com / youtube.com
StraumannIR
Investor Relations Twitter
@StraumannIR
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More information on straumann.com → Events
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27.10.2016
Straumann’s currency exposure
Revenue breakdown FY20151
CHF
9%
Other
19%
BRL
10%
FX sensitivity
Average exchange rates (rounded)
USD/CAD
/AUD
29%
2014
2015
9M 2016
Revenue
EBIT
1.21
1.08
1.09
+/- 26m
+/- 16m
0.96
0.98
+/- 20m
+/- 7m
0.295
0.277
+/- 8m
+/- 2m
0.90
+/- 5m
+/- 3m
1
EURCHF
1
USDCHF
0.92
1
BRLCHF
0.389
100
JPYCHF
0.86
0.88
EUR
33%
(+/- 10%) on full-year...
130
Cost breakdown FY20151
110
Other
11%
CHF
37%
BRL
11%
90
70
USD/CAD
/AUD
24%
1
31
50
2014
EUR
19%
2015
EURCHF
BRLCHF
2016
USDCHF
JPYCHF
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.
Your contacts
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]
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