Capture the full market potential · HIGH-STRENGTH MATERIAL 24. Current Straumann Group market...
Transcript of Capture the full market potential · HIGH-STRENGTH MATERIAL 24. Current Straumann Group market...
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Capture the full market potentialPeter Hackel, CFO
21-22 May 2019
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Looking back –Financial performance Q1 2019 and our track
record
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Good start to 2019 – further growth initiatives taken
CHF 372m
Up 15% on strong 2018
performance
REVENUE
>100 new articles
…introduced at key trade events;
clear aligner business launched in
LATAM, Europe & China
INNOVATION STREAM
+17% organic1
2.3%-point FX effect
Minor acquisition effect
GROWTH
Business expansion
Stakes increased in Anthogyr, Zinedent,
Medentika and Valoc; distribution
agreement with Medit
PORTFOLIO
APAC & LATAM
…sustain growth around 20%;
NAM & EMEA both post double-
digit increases
TOP PERFORMERS
Outperformance
2019: organic revenue to grow in
low-teen percentage range; further
improvements in EBITDA and EBIT
margins
OUTLOOK2
71 Organic growth – i.e. excluding the effects of currency fluctuations and acquired/divested business activities. 2 Outlook expectations barring
unforeseen events/circumstances and assuming fairly stable FOREX.
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Revenue development (in CHF m, rounded)
EMEA and NAM contribute two-thirds of organic growth
0.3
20.2
16.4
13.04.9
LATAMM&A effect APACRevenues
Q1 2018
-6.6
EMEARevenues
Q1 2018
@FX 2019
FX effect
324.1317.8
Revenues
Q1 2019
North
America
372.3
14.9% in CHF
17.1% organic
Change in organic growth
17.4% 19.7%14.4% 22.1% 37%
30%
24%
9% LatinAmerica
AsiaPacific
NorthAmerica
EMEA
Regional share of
organic growth
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6.4%
9.1%
13.1%
15.7%
18.9%
2014 2015 2016 2017 2018
24.8%
27.6%28.3%
29.3%29.6%
0
100
200
300
400
2014 2015 2016 2017 2018
EBITDA excl. exceptionals Exceptionals
Underlying margin
Impressive 5-year performance
1 2017 figures restated to reflect updated purchase price allocation for ClearCorrect; figures excl. exceptional effects in all years.
5-year organic revenue growth 5-year EBITDA1 in CHF
million and margin
Market
growth est. 4-5%
A v e r a g e + 1 3 % + 4 . 8 % - p o i n t s
18.4% 18.1%
20.4% 20.7%20.1%
-50
50
150
250
350
450
2014 2015 2016 2017 2018
+ 1 . 7 % - p o i n t s
5-year Net Profit1 in CHF
million and margin
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Success factors
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We have broadened our portfolio and deepened our
customer interactions
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Manufacturer Distribution/subsidiaries Dental professional(our clients)
Patient pool(our client’s client)
Focus on implant
specialists
R&D team +140%
Active in non-premium
Complete CAD/CAM offering
Entry into clear aligners
Institut Straumann
2012
GPs expanding
into specialty
procedures
>2x our sales force
Dedicated DSO team
Expanding into
esthetic dentistry
Exploring entry into
preventive dentistry
Today
>95% of our business is
conducted directly
Nearly tripled our subsidiaries
Capture growth opportunities in
underpenetrated markets
63
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Patients with
missing teeth
636363
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Reputation as innovation leader underpinned
12
12
19
Roxolid implant material
13
14
PURE ceramic 1-piece implant
Variobase abutments
BLT implant15
16 ProArch edentulous solution
N!ce fully-crystallized glass-ceramic Grand
Morse
Grand Morse implant
Grand
Morse
Mini implant
PURE 2-piece ceramic implant
17
18
BLX implant
Small diameter implant ( 2.9mm)
Short implant (4mm)
Roxolid-on-all
Chairside 3D printing
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Targeted investments in high growth markets
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Implant volumes in key markets (million
units in 2017)
1.5
1.2
1.3
2.4
0.8
1.4
2.7
0.2
0.4
1.4
0.3
SPAIN
ITALY
GERMANY
BRAZIL
TURKEY
RUSSIA
USA
UK-IRELAND
JAPAN
CHINA / HONG KONG
INDIA
319
197
160
118
98
160
74
38
33
10
2
Premium
Non-
Premium
Our new
subsidiaries
Penetration: Implants per 10’000 inhabitants
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Uncontested No. 1 in implants…
4.5 bn
25%
#1
~26-28 bn
5%
#7
Implantology1Total
dentistry
Market
Straumann position
Straumann share
2018Others (400+)
25%
19%
12%
8%
7%
6%
4%
19%
Danaher
Dentsply
Sirona
Zimmer
Biomet
Henry
Schein
Osstem
Straumann
Group
1 Implant dentistry market segment includes implant fixtures, final and temporary abutments, healing screws, copings and related
instruments; information based on Decision Resources Group and Straumann data.
Main playersHenry Schein, Patterson,
Danaher, Dentsply Sirona
Align Technology, 3M
Dentium
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…and long avenue of growth in other ‘specialties’
Market segments Est. segment size1
(2018 in CHF bn)Growth rate
Our current
market share
Biomaterials 0.6 High-single digits
Implantology1 4.5 Mid-single digits
CAD/CAM
equipment21.5 Double digits
CAD/CAM
prosthetics3.9 Double digits
(All ceramic)
Clear aligners 2.0 >25%
1 Imaging and planning segment is not included in the overview above. Customized prosthetics are listed under CAD/CAM prosthetics, but also belong to
the total implant and abutment market.
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Looking ahead –recent achievments and
strategy in action
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Straumann Group – continuously
increasing the addressable market
Total solution provider tooth
replacement
Total solution provider esthetic dentistry
2012
2016
2018
Implant provider 3.4
Addressable market
in CHF billion
7.0
13.0
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Half of the implant market is ‘value’
Premium/value split of implant & abutment market in value terms (2018)
0 0.5 1
Global
EMEA
NAM
APAC
LATAM
2008:
Premium >70 %
Premium
Value
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Multi-pricing strategy – comprehensive portfolio
of value implant brands
Neodent,
Anthogyr,
Medentika
Premium
Upper value
Lower value
Global implant & abutment market
~CHF 4bn
Straumann Group share (2018)
Zinedent,
T-Plus,
equinox
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Our latest jewel in the crown
Stake increased from 30% to full ownership
Consolidation 1 June 2019; integration started
Leading French implant manufacturer; established
international provider of upper value implants
Comprehensive implant portfolio
Group to build on successful partnership in China
and Russia
Anthogyr employs 400 people
Total revenues last 12 months: CHF 57 million
(approx. CHF 50 million acquisition effect1)
201 Acquisition effect represents the revenues generated in the 12 months prior to the closing excluding intra-company sales. The amount may
fluctuate with currency movements.
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Getting fit for the future
Construction of new plant in Curitiba (Brazil) underway
11 000m2 production space created in first phase
Automated production of ClearCorrect clear aligners to serve LATAM market
Increased capacity for implant system components
Scheduled opening in Q4 2019 21
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Focusing on the BLX launch
Dynamic Bone Management™
‘Cut, collect, condense’- properties
Bi-directional cutting elements
Stress-free crestal bone
Enhanced drill design
More than edentulous and
immediacy solutions
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Full range of implant diameters and lengths
One connection – one prosthetic line
Ø 3.75 for all indications
Straumann® BLX implant portfolio
all indicationsØ 3.75
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A unique design with clear benefits
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Straumann BLX Feature / properties Nobel Active
Ø 3.75 mmSMALLEST ALL-
INDICATION IMPLANTØ 4.3 mm
No tap
2 steps soft and 4 in hard
bone
SIMPLICITY OF
DRILLING PROTOCOL
Tap required
3 steps in soft and 5 in hard
bone
Dynamic Bone
Management™
INSERTION
CONTROL“All-or-nothing” effect
1 connection for
6 diameters
PROSTHETIC
SIMPLICITY
3 connections for
4 diameters
SLA and SLActive surface
(=best long term outcome
in registry)
SURFACE
MANAGEMENTStandard surface
RoxolidHIGH-STRENGTH
MATERIAL
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Current Straumann Group
market share
1 out of 4 implants have a fully tapered designMarket volume
(Implant fixtures)
25 million
units
Parallel
walled
Apically
tapered
Fully
tapered
Main players:
Nobel Biocare,
BioHorizons,
MIS, Implant
Direct, Megagen
Neodent,
Anthogyr and
Equinox
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Large potential for growth in digital equipment
Source: Straumann proprietary GP survey in US, DE, IT, and UK; samples size >200 dentists.
9% 11%
24%
12%
5% 4%
13% 11%
38%43%
68%
80%
UK Italy US GER UK Italy US GER UK Italy US GER
GPs using intra-oral scanners(IOS)
Dentists using IOS & chairsidemilling equipment
Dental technicians using labscanners
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An even broader range of digital options
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Virtuo Vivo™
intraoral scanner
3Shape TRIOS 4 Medit T-Series
DWOS 8 & CoDiagnostiX with Easy Modes;
Carestream, Camfacture, Medit integrated
3D printing capsule system
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Clear aligners – one of the most
attractive areas in dentistry
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ClearCorrect smiles spread to new markets
Case growth: Q1 +73%; FY’18 +61%;
Customer base expands by close to 20% in 2019
Continued strong growth in North America
ClearCorrect aligners promoted with Dental
Monitoring system in the US
Brazilian launched at CIOSP in Brazil and entry into the
attractive Chinese market
Expanding our production capacity
ClearCorrect and Align Technology settle patent disputes:
Non-binding letter of intent to explore distribution & development of Align’s
iTero® IO-scanner integrated in Straumann’s CARES® / DWOS® workflow
Straumann Group expects one-time expense of max CHF 24m in H1
2019, including CHF 16m, if distribution & development agreement does
not materialize 30
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ClearCorrect
Launched in Brazil and Europe
Production expansion
Fresh new branding
Smyletec
Exclusive distribution agreement
Affordable, state-of-the-art solutions for China
World’s second largest market for clear aligners,
expected to grow >50% p.a. in the next 5 years
Smyletec launched in March; Dental Monitoring to
follow later in 2019
Clear-aligner business launched in Brazil, China and
Europe
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Our esthetic dentistry solutions portfolio
Implant systemsMulti-platform
prostheticsDigital Orthodontic Biomaterials Preventive
Glo
ba
l
bra
nd
sL
oc
alb
ran
ds
Te
ch
no
log
y
bra
nd
s&
pa
rtn
ers
32
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Outlook 2019
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Our 2019 guidanceBarring unforeseen circumstances
Market growth
Our revenue
growth
Profitability
Global implant market to continue to
grow between 4-5%
Further improvement in the underlying1
EBITDA and EBIT margin
Confident to outperform and achieve organic
revenue growth in the low-teens percentage range
1 Profitability objectives exclude exceptional effects related to acquisitions, business combinations as well as the impact from the adoption of
IFRS16 (see next slide). 34
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Participating in high growth areas while mitigating the
risk of an economic slowdown
1 Emerging market classification based on MSCI GICS definition
More EM sales1… more balanced product
portfolio…
…offered at different
price points
Share of implant volumes in
2012 vs. 2018
Western Europe
Emerging markets (EM)
Other growth markets in developed
countries
Premium implant solutions
Non-premium implant solutions
New or adjacent products
Multi-pricing strategyProduct portfolio break-down
2012 vs. 2018 (in value)
Premium
Upper value
Lower value
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Calendar of upcoming events
2019 Event Location
21 May UBS Healthcare conference New York
22 May Berenberg US conference Tarrytown (US)
04-05 June Vontobel Switzerland conference Interlaken (CH)
13 June Exane BNP Paribas CEO conference Paris
14 August First-half 2019 results conference Basel, HQ
Social media Type Source
Analyst Talk Executive interviewed by analysts Corporate Website / youtube
StraumannIR Investor Relations Twitter @StraumannIR
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Estimated impact from adopting
IFRS 16 (leases) in 2019
Approx. IFRS 16 impact (in CHF million)1 Total
Revenue
Gross margin +0.5
EBITDA +18.0
EBIT +3.0
Financial results -5.0
Profit before tax -2.0
1 Barring unforeseen circumstances, major currency movements and/or change in business scope38
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CHF29%
EUR22%
USD/CAD/AUD26%
JPY3%
BRL8%
Other12%
CHF6%
EUR29%
USD/CAD/AUD31%
JPY5%
BRL8%
Other21%
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 2018 figures as well as average FX rates in 2017-18. They also include recent acquisitions and new subsidiaries.
Cost breakdown FY20181
Revenue breakdown FY20181
Average exchange rates (rounded)FX sensitivity
(+/- 10%) on full-year...
2017 2018
Closing
2018 Revenue EBIT
1 EURCHF 1.11 1.15 1.13 +/- 39m +/- 23m
1 USDCHF 0.98 0.98 0.99 +/- 37m +/- 17m
100 BRLCHF 30.69 26.87 25.36 +/- 11m +/- 2m
100 JPYCHF 0.87 0.88 0.90 +/- 7m +/- 4m
70
75
80
85
90
95
100
105
110
115
01.2017 06.2017 11.2017 04.2018 09.2018
Exchange rates development in 2017-18
USDCHF EURCHF JPYCHF BRLCHF
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Thank you