2017 nine-month & third-quarter sales

Transcription

1 2017 nine-month & third-quarter sales Webcast presentation for investors, analysts & media Basel, 26 October 2017 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. The Group 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. 2 1

2 9-months highlights Marco Gadola, CEO Growth throughout and beyond our space REVENUE GROWTH TOP PERFORMER BUSINESS DRIVERS +15% organic 1 North America Total solutions : +16% organic; +21% in CHF 9M: +15% organic; +19% in CHF generates >30% of Group s 9M growth; APAC remains fastest-growing region (+24%) Implants contribute two thirds of 9M growth: BLT and Neodent CM drive premium and non-premium businesses respectively. EXPANSION PRODUCTS OUTLOOK New subsidiaries Regulatory approvals Raised Iran opened; preparations for subsidiaries in Turkey & S. Africa underway. Acquisitions of ClearCorrect & Dental Wings completed. for key Straumann products (including BLT) in China, Russia and India. Neodent launches new GM implant system. for full-year organic revenue growth: 13-15% Organic growth i.e. excluding the effects of currency fluctuations and acquired/divested business activities 2 Outlook expectations barring unforeseen events/circumstances 2

3 Momentum sustained in with accelerations in APAC and LATAM Growth year-on-year (in %) North America 28% of Group EMEA 44% of Group APAC 17% of Group M LATAM 11% of Group M 9M Straumann Group M 9M Consistently outperforming the market Organic revenue growth since % 14.8% >3x market growth (incl. Straumann Group) Average 7.2% 6.4% 9.1% Double-digit growth over the first 9 months supported across all segments 1.2% -1.0% M Biomaterials ++ Implants ++ Restorative 6 3

4 Business and regional review Peter Hackel, CFO Further expansion across all regions Revenue development (CHFm, rounded) % CHF % organic 27.0 Change in organic growth Regional share of organic growth 12% LATAM 26% 31% APAC North America 10.0% 17.2% 24.2% 15.7% 31% EMEA Revenues 9M 2016 FX effect M&A effect Revenues 9M FX 2017 EMEA North America APAC LATAM Revenues 9M

5 EMEA and North America maintain pace EMEA 44% of Group 11.1% Revenue change (organic) 56% 7.7% 8.0% 10.1% 9.9% 9.9% EMEA performed consistently throughout the first 9-months Germany was the main contributor, with Iberia, France, Belgium and the UK delivering the strongest increases Dynamic growth in Russia North America 28% of Group 16.9% 17.3% Q4 Q % 16.0% 17.2% 17.0% Double-digit growth in both the premium and non-premium implant businesses Higher levels of sales generated from newly acquired customers Many new customers attracted by Straumann s novel 2.9mm BLT implant Q4 Q Asia Pacific and Latin America on fast track APAC 17% of Group Revenue change (organic) 56% 20.2% 17.0% 25.7% 20.5% 19.4% 27.9% China continues to be main powerhouse; Anthogyr adds to growth Double-digit increases in Australia, China, South Korea, and Japan Japan posts strongest quarter this year Latin America 11% of Group 17.2% 12.7% Q4 15.0% Q % 12.8% 18.9% Straumann and Neodent gain new customers in weak Brazilian market Successful launch of Neodent GM Dynamic growth in Mexico; earthquake disruption not evident in New subsidiaries in Argentina, Colombia, and Chile complete build-up phase Q4 Q

6 Capacity expansion to meet growing demand Facility Output increase 1 Villeret (CH) New production building (brownfield) +70% Andover (US) +60% Curitiba (BR) +35% +50% space New production area in Curitiba Impression of new production building in Villeret 11 1 Expected capacity increase from H Q New building/ modification Additional machine capacity or working hours Strategic progress Marco Gadola, CEO 6

7 Strategic priorities of the Straumann Group Drive our high performance STMN Group culture and organization Target unexploited growth markets & segments Expand scope to become a Total Solution Provider for esthetic dentistry 13 Geographical expansion reflected in an increasingly diverse team Employees by region (in % of total 1 ) Headcount development (pro forma 1 ) NAM 19% APAC 10% CH (incl. HQ) 20% 3'471 3' '290 2'217 2' LATAM 25% Rest of EMEA 26% M 2017 Number of employees Medentika & Equinox Dental Wings & ClearCorrect 14 1 Incl. Dental Wings and ClearCorrect, which were consolidated as of

8 New subsidiaries in Iran, Turkey & South Africa direct access to large growth markets Iran Distribution taken over Broader presence; multi-brand strategy Straumann products available in Iran since ( ) Turkey Preparations to establish subsidiary in coming months Intention to incorporate current distributor & team South Africa Straumann ranks among top 3 premium companies Preparations to open subsidiary, incorporating former distributor & team Cape Town subsidiary to act as regional hub Implants per people (implant market total) 13 (60 000) 75 ( ) 15 Chinese fire-cracker Key regulatory approvals obtained; launches underway for: Straumann BLT implants Roxolid SLActive for practically all Straumann implants Straumann Pro Arch edentulous solutions Straumann Smart enablement & education program Anthogyr Axiom PX implants Launch activities include 3-day Innovation Summit in Shanghai with parallel congresses in Beijing, Guangzhou & Chengdu; large number of participants expected (1600 onsite and online yesterday). New CADCAM milling center in Shenzhen operational in 2018 Straumann BLT Anthogyr Axiom PX 16 8

9 Other significant regulatory approvals and launches Russia Straumann Bone Level Tapered implant approved India All Straumann Soft Tissue Level & Bone Level implants approved Major launch event in Mumbai early December Group now offers a comprehensive range of premium & attractively-priced implant options under the Straumann & Equinox brands. 17 Neodent launches innovative Grand Morse implant system in Brazil Complete new implant system for all clinical needs, developed from the inside out, starting with the prosthetic interface Fully tapered design with cutting threads Comprehensive prosthetic range, including angulated rounded abutments for full-arch restorations, ti-bases and ProPeek temporary abutments 1-year clinical evidence: 100% survival of 277 implants in 57 patients new customers attracted in first month Roll-out in other regions beginning mid 2018 Grand Morse is expected to become the preferred choice of Neodent customers and to supersede the Cone Morse in the next two years Data on file 9

10 EAO in Madrid New products despite big launch program at IDS Straumann P-Series 3D printers enter market Dental Wings powder-free intraoral scanner handpiece Straumann Surgical Motor Pro Clinical endorsements for Straumann solutions at scientific symposium, focusing on patient-centric protocols, edentulous solutions with Pro Arch and Novaloc, and immediacy with BLT 19 Exciting new data on SLActive implant surface Discovery of distinct nanostructures on the SLActive surface 1,2 proves its topography differs from that of SLA. Presence of nanostructures increases surface area by 50% 3 Roxolid SLA Roxolid SLActive Roxolid SLA Roxolid SLA with nanostructures Roxolid SLActive with nanostructures enhances (together with surface wettability) fibrin network formation cell adhesion bone-cell mineralization osseointegration 2,4,5 Fibrin network Adherent cells 20 1 Kopf BS et al The role of nanostructures and hydrophilicity in osseointegration: In-vitro protein-adsorption and blood-interaction studies. J Biomed Mater Res Part A2015:103A: Wennerberg A et al. Nanostructures and hydrophilicity influence osseointegration A biomechanical study in the rabbit tibia. Clin. Oral Impl. Res. 25, 2014, Straumann: data on file 4 Müller E et al. The interplay of surface chemistry and (nano-)topography defines the osseointegrative potential of Roxolid dental implant surfaces. ecm Meeting Abstracts 2017, Collection 3; SSB+RM (page 31). 5 EMPA (2017) Report additional experiments: Impact of RXD SLA, RXD SLAnano, RXD SLActive, and RXD pmod SLA surfaces on protein adsorption, blood coagulation, and osteogenic differentiation of HBCs. Final report: Impact of RXD SLA, RXD SLAnano, RXD SLActive, and RXD pmod SLA surfaces on protein adsorption, blood coagulation, and osteogenic differentiation of HBCs. EMPA, Swiss Federal Laboratories for Materials Science and Technology (data on file). 10

11 Strategic priorities of the Straumann Group Drive our high performance STMN Group culture and organization Target unexploited growth markets & segments Expand scope to become a Total Solution Provider for esthetic dentistry 21 Dental Wings, ClearCorrect & Rapid Shape transactions closed Ownership 100% 100% 38% 35% 22 Footnote 11

12 The orthodontic workflow complements our digital solutions for esthetic dentistry Case design Treatment design Doctor approval Prosthetic workflow Orthodontic workflow Doctor approval Data capturing Production 23 Tooth-borne implant -borne restorations Aligner production Model production Outlook

13 Outlook for 2017 Barring unforeseen circumstances Market growth We expect the global implant market to grow at approx. 3-4% 1 in 2017 Our revenue growth Confident that we can continue to outperform by achieving organic 2 revenue growth of 13-15% Profitability Further improvements in the underyling 2 operating profit margin despite further investments in strategic growth initiatives 25 1 Market growth assessment incl. Straumann Group 2 excl. currency and acquisition effects (ClearCorrect, Dental Wings, Medentika, and Equinox). Questions & answers & 13

14 Calendar of upcoming events 2017 Event Location 26 October /9M revenue publication Webcast 28 October Investor meetings Paris (F) 31 October Investor meetings Geneva (CH) 16 November Vontobel Healthcare Tour Basel (CH) 17 November Credit Suisse Mid-cap conference Zurich (CH) 23 November HSBC Equities conference Frankfurt (D) 07 December Berenberg Equities conference Pennyhill (UK) 2018 Event Location 15 February Full-year 2017 results conference Straumann Group Headquarters, Basel 04 April AGM 2018 Messe Basel 27 Growth strategy pays off in CHF million M year average Revenue Organic revenue growth in % Acquisiton / Divesture effect in % Change in l.c.% FX effect in % Growth in CHF % H CAGR Gross profit b. exceptionals Underlying margin 77.9% 78.8% 78.7% 78.6% 78.3% 77.2% EBIT b. exceptionals Underlying margin 14.9% 18.2% 20.9% 23.3% 24.8% 25.7% Underlying net profit Underlying margin 10.6% 15.9% 18.4% 18.1% 20.4% 21.6% Earnings per share (adjusted) H CAGR Operating cash flow Capital expenditure (19.4) (12.6) (18.8) (35.2) (46.7) (32.8) as % of revenue -2.8% -1.9% -2.6% -4.4% -5.1% -4.1% Free cash flow Number of employees (year-end) 1 2'517 2'217 2'387 3'471 3'797 4' In March 2015 Straumann acquired the remaining 51% stake of Neodent (Brazil) which added 930 employees to the Group. In 2017, the incorporation of Equinox in India and Medentika in Germany added 160 employees. Note: 5-year average = M

15 Straumann s currency exposure Revenue breakdown FY CHF Other 8% 15% BRL 10% JPY 7% EUR 31% FX sensitivity Average exchange rates (rounded) (+/- 10%) on full-year... 9M M 2017 Latest trend Revenue EBIT 1 EURCHF /- 29m +/- 18m 1 USDCHF /- 23m +/- 11m 100 BRLCHF /- 9m +/- 3m 100 JPYCHF /- 6m +/- 4m USD/CAD/AUD 30% Cost breakdown FY BRL 9% JPY 4% Other 9% CHF 36% Development of Straumann s main exchange rates since USD/CAD/AUD 23% EUR 19% USDCHF EURCHF JPYCHF BRLCHF 29 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 2016 figures. Thank you investor.relations@straumann.com 15