2015 9-months sales presentation - Straumann · Q1 Q2 Q3 2015 Q2 Q3 Q4 2014 Asia Pacific LATAM 1...

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28.10.2015 1 2015 9-months sales presentation Webcast for investors, analysts & media Basel, 29 October 2015 2 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. Disclaimer

Transcript of 2015 9-months sales presentation - Straumann · Q1 Q2 Q3 2015 Q2 Q3 Q4 2014 Asia Pacific LATAM 1...

Page 1: 2015 9-months sales presentation - Straumann · Q1 Q2 Q3 2015 Q2 Q3 Q4 2014 Asia Pacific LATAM 1 1.3% 15.6% 8.3% 15.1% 14.0% 6.5% Q1 Q2 Q3 2015 Q2 Q3 Q4 2014 Sequential slowdown in

28.10.2015

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2015 9-months sales presentationWebcast for investors, analysts & media

Basel, 29 October 2015

2

This presentation contains certain forward-looking statements that reflect the current views ofmanagement. Such statements are subject to known and unknown risks, uncertainties andother factors that may cause actual results, performance or achievements of the StraumannGroup to differ materially from those expressed or implied in this presentation. Straumann isproviding the information in this presentation as of this date and does not undertake anyobligation to update any statements contained in it as a result of new information, futureevents or otherwise.

The availability and indications/claims of the products illustrated and mentioned in thispresentation may vary according to country.

Disclaimer

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Q3 and 9M highlightsMarco Gadola, CEO

2015 9M – On track with strong underlying growth

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9M REVENUE Q3 ORGANIC REVENUE GROWTH Q3 BEST REGIONAL PERFORMER

CHF585m +8% APAC

+9%1 (+18% in l.c.) including Neodent contribution of CHF 46m since 1 March

Momentum continues in Q3, thanks to strong product cycle

Driven by double-digit growth in China and Japan

BLT IMPLANT STRATEGIC EXPANSION 2015 FY OUTLOOK

>100 000 sold in first year

Emergingmarkets

On track

Bone Level Tapered (BLT) implants available in >50 countries

Subsidiary opens in Russia; distribution model in China complete; new hubs operational in LATAM

...to achieve mid- to higher-single-digit organic revenue growth and underlying EBIT margin in low 20’s2

1 Organic growth – i.e. excluding the effects of acquisitions, divestitures and currency exchange rates2 Before business combination exceptionals (fair value adjustments to Neodent’s acquisition-related inventory of CHF 13m)

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Regional reviewPeter Hackel, CFO

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Strong organic growth across all regions –double-digit in APAC

8.6% organic

Revenue development (in CHF million, rounded)

2014 2015

Organic growth

(5.3%) 9.0% 9.1%5.4% 19.1%8.7%

11.8% in CHF

523.4

(27.8)

+43.2

538.8

+14.1+13.1

+14.3 +5.1

585.3

Revenue 9M2014

FX Effect AcquisitionEffect

Adj. revenue9M 2014

EMEA NorthAmerica

APAC LATAM Revenues 9M2015

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Revenue change (organic)

Sustained pick-up in EMEAContinued strong growth in North America

56%

Another strong quarter fuelled by double-digit growth in Iberia, France and Sweden

Germany continues to perform well

Biomaterials from botiss: ideal complement to Straumann’s implant portfolio

8.5% 8.3%

0.3%

7.0%

2.4%

(2.0%)

Q3Q2Q12015

Q4Q3Q22014

EM

EA

No

rth

Am

eric

a

Solid Q3 (+6%) but softer than high 2014 baseline (BLT launch)

Strong demand for BLT implants

Group now supplies 80% of implants placed by ClearChoice

28%

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6.1%

9.3% 11.6%

9.3% 11.4%

5.4%

Q3Q2Q12015

Q4Q3Q22014

44%

Double-digit growth in Asia and LATAM

56%

Further share gains in Japan

Continuing roll-out of SLActive and controlled market release of BLT in Japan

Strong growth in China; all new distribution partners appointed

13.2%12.8%

34.5%

14.5%17.0%15.3%

Q3Q2Q12015

Q4Q3Q22014

Asi

aP

acif

icL

ATA

M1

1.3%

15.6%

8.3%

15.1%14.0%

6.5%

Q3Q2Q12015

Q4Q3Q22014

Sequential slowdown in Q3 (+1%) after a strong Q2, which benefitted from an increase in trading days

Brazilian market remains sluggish

CADCAM milling center operational in Brazil

16%

12%

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Revenue change (organic)

1 Owing to the Neodent acquisition, Straumann re-allocated markets from the ‘Rest of the World’ region to Latin America, with effect of 1 January 2015. The respective regional growth figures in the chart above have been recalculated on a pro-forma basis and include the Straumann as well as the Neodent business to allow for a true comparison.

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Implants

Solid business performance lifted by strong growthin biomaterials

Restorative Biomaterials

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Update on strategic progressMarco Gadola, CEO

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New addition to Executive Management Board reflects strategic importance of Latin America

Matthias Schupp, Head of LATAM and CEO of Neodent, joins Straumann’s Executive team with effect of 1 January 2016

Strong track record in regional/country leadership Straumann: Head Straumann LATAM and Sales Neodent

2013-15; Regional Manager W. Europe 2007-13 P&G: Managing Director Professional Care Portugal Wella: Managing Director Russia Merck KGaA: Regional Manager LATAM and US

Latin America generates >10% of revenue with>900 employees

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Investing in underpenetrated markets

ChinaTransition to new distribution set-up complete

RussiaSubsidiary opened

JapanNew CADCAM milling center operational

LATAMHubs created in Colombia

and Mexico serving bothpremium and value

segments; Argentina tofollow soon

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New CADCAM milling center in Narita, Japan, begins operation on schedule

Main benefits:

Ability to address fast-growing private practice sector more effectively

Broader reach and greater control of customer base

Fast market intelligence and ability to adapt

Straumann China20 independent

distributors20 independent

distributors

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Transition to hybrid distribution model in China completed

Inner Mongolia

Shanghai

Ningxia

Guangxi

Heilongjiang

Xinjiang

Gansu

Qinghai

Tibet

Sichuan

Yunnan

Guizhou

HunanJiangxi

Hubei

Henan

Jilin

Liaoning

Hebei

Tianjin

ShandongShanxi

Shaanxi

Chongqing

Jiangsu

Anhui

Zhejiang

Fujian

Guangdong

Hainan

Beijing

>70 consultative salesrepresentatives

Marketing, T&E

Logistics, administration

Q4‐14

Q1‐15

Q2‐15

Q3‐15

Time of completion

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High primary stability, fast-healing surface (SLActive) and superior strength (Roxolid) appreciated

Broad treatment possibilities in compromised situations, estheticregion and immediate edentulous solutions

Accounts for one in every eight Straumann implants sold

4000 customers now use BLT, >¼ of whom are new customers

See customer experiences in EAO video(https://www.youtube.com/watch?v=5DGvd0iSOdk)

BLT roll-out in full swing

16 CEREC® is a registered trademark of Sirona Dental Systems GmbH, Germany.

Straumann offers more options to Sirona users

Agreement with Sirona:

Straumann Variobase® to be supported in the CEREC® system

Straumann milling centers listed as ‘trusted providers’ in Sirona’s inLab® system

Patent disputes between both companies settled

chairside workflow

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Surgical

Abutments

Restoration

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DENTIST LABORATORYSurgeon GP / restorative Regional Local

Pre-milled abutments

PURE

Variobasefamily

In-lab milling

equipment

Variobasefor

CEREC

CARES X-Stream

New in-lab

scanner

Removable denture

attachment

Full regenerative

portfolio (botiss)

Chairside scanning & milling

Screw retained bars & bridges

BLT

SR abutments

Further progess in strategy to be a ‘total solutionprovider’ for dentists and labs

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New data on peri-implantitis presented at EAO –favorable for Straumann implants

Retrospective analysis of the effectiveness of dental implant therapy in a broad clinical setting in Sweden1

427 patients with 1578 implants from various manufacturers clinically evaluated 9 years after treatment

In a recent publication, lead author J. Derks notes: “Not only did S[traumann] implants show the lowest rates of early implant loss, they also presented with lower rates of moderate/severe peri-implantitis” [compared with other implants evaluated in the study]2

New data accepted for publication in the Journal of Dental Research

1 Effectiveness of implant therapy analyzed in a Swedish population: prevalence of peri-implantitis. Derks J, Schaller D, Håkansson J, Wennström JL, Tomasi C, Berglundh T. J Dent Res (2015) accepted for publication. ISBN 978-91-628-9491-7 8print. http://hdl.handle.net/2077/395442 Ibid p. 57

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Neodent/Instradent pleased with ITC verdict in NobelActive® patent dispute

ITC judge largely follows Neodent's arguments

Nobel Biocare's main patent relating to key design

features of NobelActive® deemed invalid

Sale of Neodent DriveCM and DriveCM Acqua

implants continues in the US, offering an

attractively-priced, high-quality alternative to

NobelActive®

Neodent DriveCM

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Global implant market expected to continue growing in 2015

Group expects full-year revenue to grow organically in the mid- to higher-single-digit range

Assuming that the currency exchange rates remain more or less at their 9M levels, the Group aims to achieve an EBIT margin in the low 20’s, before business combination exceptionals1

Unchanged outlook for 2015Barring unforeseen circumstances

201 Fair value adjustments to Neodent’s acquisition-related inventory of CHF 13m

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Questions & Answers

Calendar of upcoming events

2015

29 October Q3 sales publication Webcast

17 November Investor meetings Edinburgh, UK

18 November Investor meetings London, UK

02 December Neodent Visitor Day Curitiba, BR

2016

15 January Baader Helvea Swiss Conference Bad Ragaz, CH

25 February Full‐year 2015 results conference Basel (HQ)

08 April AGM 2016 Basel

03 May Q1 sales publication Webcast

2222 Results publication and corporate events. More information on straumann.com → Events

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Straumann’s currency exposure

Cost breakdown H1 20151

Revenue breakdown H1 2015

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 H1 2015 figures and include Neodent since 1 March.

Average exchange rates (rounded) FX sensitivity (+/- 10%) on...

2014 9M 2015 Revenue EBIT

1 EURCHF 1.21 1.07 +/- 13 million +/- 8 million

1 USDCHF 0.92 0.95 +/- 10 million +/- 3 million

1 BRLCHF 0.39 0.31 +/- 4 million +/- 1 million

100 JPYCHF 0.86 0.79 +/- 2 million +/- 1 million

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70

80

90

100

110

120

2014 2015

Development of Straumann’s main exchange rates since 2014

USDCHF EURCHF JPYCHF BRLCHF

CHF10%

EUR34%

USD/CAD/AUD28%

BRL9%

Other19%

CHF43%

EUR17%

USD/CAD/AUD22%

BRL8%

Other8%

Your contacts

Fabian Hildbrand

Corporate Investor Relations

Tel. +41 (0)61 965 13 27

Email [email protected]

Mark Hill Thomas Konrad

Corporate Communications

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

Email [email protected] Email [email protected]

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International Headquarters

Institut Straumann AGPeter Merian-Weg 12CH-4002 Basel, SwitzerlandPhone +41(0)61 965 11 11Fax +41(0)61 965 10 01www.straumann.com