SCANNER & SERVICES OVERVIEW
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1 SCANNER & SERVICES OVERVIEW Tim Mack VP BUSINESS DEVELOPMENT & GM ITERO Align Technology, Inc. 1
2 FORWARD LOOKING STATEMENT During this presentation and corresponding commentary we may make forwardlooking statements, including statements regarding Align s strategy for future growth, the anticipated impact of product innovation, consumer demand generation, geographic expansion and sales force productivity on, among other things, customer adoption, as well as statements related to Align s business outlook. Any such forward-looking statements contained in this presentation and corresponding commentary are based upon information available to Align as of the date hereof. These forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. As a result, actual results may differ materially and adversely from those expressed in any forward-looking statement. Factors that may cause such a difference include, but are not limited to, the factors that are discussed in more detail in Align Technology s Forms 10-K and 10-Q, as well as in other reports and documents filed from time to time with the Securities and Exchange Commission. Align undertakes no obligation to revise or update publicly any forward-looking statements for any reason Align Technology, Inc. 2
3 ACCELERATING GROWTH FOR DENTAL PRACTICES Evolution of digital restorative dentistry The itero advantage Go to market strategy Future opportunities - Market expansion - Innovation Align Technology, Inc. 3
4 EVOLUTION OF DIGITAL RESTORATIVE DENTISTRY For 25 years, digital dentistry enabled in-sourcing by the restorative dentist Milling Blocks CAD Design Milling Equipment Insourcing Align Technology, Inc. 4
5 THE itero BUSINESS MODEL HAS REDEFINED DIGITAL CHOICES In 2007, with the itero Scanner as a Gateway, we introduced a digital ecosystem with the restorative GP Dentists and Orthodontist at the center, creating Mfg Centers itero Practice a digital network which delivers efficiency and utility through outsourcing across the entire dental ecosystem Surgeons Labs Align Technology, Inc. 5
6 ACCELERATING THE ADOPTION OF DIGITAL DENTISTRY WITH itero Significantly lower capital investment Minimal change in practice flow Entering majority market phase among NA orthodontists 4000 Evolving Mix of NA Scanner Sales Chairside Milling Systems Scanners Sources: idata Research; Align estimates Align Technology, Inc. 6
7 SUSTAINING #1 SHARE OF STANDALONE SCANNERS Estimated Global Installed Base of Standalone Scanners itero ,541 3M True Def Sirona Ormco Lythos All Other Sources: idata Research, Align estimates as of April Align Technology, Inc. 7
8 THE itero ADVANTAGE Unmatched accuracy and practice utility, with the potential to enable and improve almost every type of treatment offered Align Technology, Inc. 8
9 INNOVATION ENABLES ACCURACY Drives Practice Productivity Unmatched Accuracy Parallel Confocal Imaging: teeth, gingiva, bite, even clinically critical landmarks beyond the teeth. Powder-free scanning Enables complex full mouth reconstructions Increases Practice Productivity Dentists & dental labs report a 90% reduction in remakes 22% shorter appointment times* due to better fitting restorations 99.7% of all itero scans accepted immediately for Invisalign, 5% better than PVS submissions * ADA Study Align Technology, Inc. 9
10 ITERO WORKLFOWS PROVIDE THE GREATEST PRACTICE UTILITY Increases Efficiency and Flexibility Restorations Patented itero milled models Enabling comprehensive dentistry from single unit crowns, bridges, full mouth aesthetic, and implant cases Invisalign Full/Teen Invisalign Express Vivera Realine Invisalign itero Chair side Milling E4D Design and Milling Connectivity Treatment planning Orthodontic appliances & retainers Record storage Orthodontic Scan Implant Restorative Solutions Certified Partners including Straumann, DENTSPLY Implants, Biomet 3i, Core3dcentres, Glidewell Laboratories, and 5 Axis labs Align Technology, Inc. 10
11 RESTORATIVE SERVICES With $330 monthly subscription or pay per case E4D Chair side Milling Connection CAD Milled Models Implant Solutions Invisalign Outcome Simulator +$25 per models labs receive digital files & models to fabricate customized prosthetics Align Technology, Inc. 11
12 INVISALIGN OUTCOME SIMULATOR VIDEO NOT AVAILABLE ON WEBCAST Align Technology, Inc. 12
13 ORTHODONTIC SERVICES With $330 monthly subscription Invisalign Outcome Simulator irecord real-time digital model with cloud storage icast Digital Models OrthoCAD software and ortho analysis tools Orthodontic Workflow to Labs to produce appliances Align Technology, Inc. 13
14 GROWTH IN DIGITAL SERVICES Shift to fully digital services away from conventional impressions - Digital services increased 72% year-over-year Increasing Digital Services (total worldwide) Accelerating adoption and utilization of itero - Scanner sales increased 47% year-over-year Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Digital Traditional Align Technology, Inc. 14
15 SCANNER GO-TO-MARKET STRATEGY Invisalign customer base Lowering perceived barrier to adoption Continued innovation Expansion of open system strategy Market Expansion Innovation Brand Strength Align Technology, Inc. 15
16 CREATING VALUE FOR CUSTOMERS 40% 35% 30% 25% 20% 15% 10% 5% 0% Faster Turnaround to Case Starts Days from Submission Date to 1st ClinCheck Posting Q % of Total IOS Cases % of Total PVS Cases PRACTICE BENEFITS FOR INVISALIGN PROVIDERS 78% patient conversion Faster case starts Better fitting aligners Practice accelerator FULFILLMENT COST SAVINGS Reduces shipping costs Eliminates in-bound scanning 99.7% immediate acceptance Increasing Invisalign Utilization Ortho ios Ortho nonios Growth in Digitally Submitted Invisalign Cases 25% 23% 19% 17% 15% 14% 10% 6% 3% 30% 27% NA Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1' Align Technology, Inc. 16
17 INVISALIGN INTEROPERABILITY WITH OTHER MANUFACTURERS SCANNERS A strategic advantage What it can enable - Fulfillment savings Shipping Rejected impressions - Invisalign uplift Validating other scanners to assure value for our Invisalign customers - Faster turnaround time - Fewer impression issues than PVS - Potential practice accelerator as with itero - Qualified 3M True Definition scanner in January Align Technology, Inc. 17
18 INCREASING SHARE OF CHAIR WITH ITERO ORTHODONTISTS Average Ortho starts 250 cases per year RESTORATIVE DENTISTS 2.3X Invisalign cases than non-scanning Invisalign GP s Invisalign and irecord services account for over 95% of those cases % penetration of all restorative cases Annual Ortho Case Starts Align Technology, Inc. Restorations Per Year 18
19 FUTURE OPPORTUNITIES THROUGH OUR STRATEGIC DRIVERS Drive adoption in international markets Creating revenue sources which start with the scanner and - Leverage our significant share of chair - Unique corporate competencies Extending utility from episodic procedure-based utility to extended preventative care over time Market Expansion Innovation Brand Strength Align Technology, Inc. 19
20 DETECTING TOOTH MOVEMENT OVER TIME Initial Final Relapse misalignment Invisalign Outcome Simulator leads to Invisalign case A scan at completion of the case Relapse detected in annual scans in the hygiene chair Align Technology, Inc. 20
21 MARKET EXPANSION POTENTIAL OPPORTUNITIES Optimizing implant placement with pre-surgical orthodontics Delivery of aesthetic retention Short Invisalign treatment to prepare the optimal spacing before surgery Pre-surgical scanning of broken tooth between crowded teeth Additional aligners to aesthetically maintain spacing during healing Align Technology, Inc. 21
22 CREATING CUSTOMER VALUE THROUGH DIAGNOSTICS Identifying tooth wear in annual scanning Providing longitudinal feedback in real-time enhances patient communication on preventative choices Tooth wear over prior 12 months Identifying gingival recession Connecting specialists in the itero ecosystem Enabling practice expansion Gingival recession over prior 12 months: risk of periodontal disease Align Technology, Inc. 22
23 EXPANDING LEADERSHIP IN DIGITAL DENTISTRY itero as gateway to the digital ecosystem Leveraging core competencies and deep integration in itero practices Delivering real-time visualization which enhances doctor-to-patient communication Extending beyond highly integrated, procedurebased utility into diagnostics and preventative care Align Technology, Inc. 23
TECHNOLOGY & INNOVATION
TECHNOLOGY & INNOVATION Zelko Relic VP RESEARCH & DEVELOPMENT 1 2014 Align Technology, Inc. 1 FORWARD LOOKING STATEMENT During this presentation and corresponding commentary we may make forwardlooking
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