Being the partner of choice. Beat Spalinger, CEO & President presenting at the 2011 Berenberg European conference

Transcription

1 Being the partner of choice Beat Spalinger, CEO & President presenting at the 2011 Berenberg European conference

2 Disclaimer This presentation contains certain forward-looking statements, which can be identified by use of terminology such as expect, expectation, intend, continue, achieve, maintain, improve, foresee, anticipate, product introductions, outlook, forecast, or similar wording. Such forward-looking statements reflect the current views of management and are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results, performance or achievements of the Group to differ materially from those expressed or implied herein. Should such risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this presentation. Straumann is providing the information in this presentation as of this date and does not undertake any obligation to update any forward-looking statements contained in it as a result of new information, future events or otherwise. 2

3 Straumann is well positioned for future growth

4 Straumann serves three dental specialty segments... CADCAM restorations on natural teeth CADCAM restorations on implants Regeneratives Dental implants & abutments 4

5 ...and offers various substitution technologies Implant dentistry Regenerative dentistry CADCAM dentistry Bridges Collagen membranes Metals-based crowns Traditional manufacture Implant-borne solutions Hydrogel membranes Full-anatomic ceramic crowns CADCAM workflow Enhanced treatment Improved technologies, ease-of-use Efficient & reliable workflow, access to full-range materials/indications 5

6 A leader in markets worth >CHF 5bn Implant dentistry 1 Total market size CHF 3.4bn CADCAM dentistry Total market size CHF 1.7bn Regenerative dentistry Total market size CHF 0.5bn 19% <5% <5% Main competitors: Nobel Biocare, Dentsply/Astra Tech, Biomet 3i, Zimmer Main competitors: 3M ESPE, Sirona, Nobel Biocare, Dentsply, 3shape Main competitors: Geistlich/Osteohealth, Zimmer, ACE, Dentsply 1 Including implants, abutments and tools Source: MRG 2008/09, idata 2009, Straumann estimates 6

7 The dental implant market can be divided into three segments Dental implant Characteristics Portfolio Product Service breath quality» Premium price» Top 6 brands» Innovation leaders» Clinically-proven products» Broad portfolio incl. CADCAM» Comprehensive services» Value price» Established, regional brands» Standard products» Focus on price» Mostly local» Look-alike products, no R&D» Very limited T&E and service 7

8 Straumann is a premium player who addresses 2/3 of the implant market % +30% ROXOLID More confidence with small diameter implants; may avoid bone augmentation SLActive Reduced healing time; increased predictability SLA Proven long-term reliability; 10-year RCT data 1 Average Unit Price (USD) 1 Fischer K., Stenberg T., Prospective 10-Year Cohort Study Based on a Randomized Controlled Trial (RCT) on Implant-Supported Full-Arch Maxillary Prostheses; Clinical Implant Dentistry,

9 The drivers of our industry Demographics Patient awareness on esthetics & quality of life Increasing acceptance Dentist training & experience 9

10 ITI membership has doubled in 5 years World s largest implant dentistry network Paternership established in 1980 More than Fellows and Members in 95 countries 27 country sections Straumann is exclusive implant manufacturing partner 10'000 5'000 Education Commercial activities Network Research Clinical activities Publications Fellows ITI Members 10

11 Implant markets in large developed countries are far from being mature Implants placed per population per year ADULT U.S. POPULATION 200 PEOPLE AFFECTED BY TOOTH LOSS (45-55%) 100 Which means that only ~1 million U.S. patients are treated annually ANNUAL TOOTH LOSS CASES SEEKING TREATMENT (5-10%) PEOPLE ACTUALLY TREATED (50-60%) 0 Italy Korea Spain Switzerland Sweden Germany Brazil France Japan US Canada Australia UK Russia China India IMPLANT TREATMENT (15-20%) CONVENTIONAL TREATMENT (80-85%) ~40% OF TREATMENTS REQUIRE BONE GRAFTING Source: 2010 data Straumann proprietary survey, OECD, World Bank and Millennium Research Group 11

12 Additional growth through further Bone level share gains Implant dentistry* % = CHF 3.4 bn First version launched 1974 Rollout 2008 (Japan Q2 2011) Soft tissue level Bone level The most successful single system Microgap vertically offset from bone, respecting biological width and preserving bone Preferred solution for one-stage procedures Pioneered by Straumann Most popular implant type globally (70% share in North America) Ease of use and Esthetics considered by many dentists as superior Smart Straumann design limits microgap risk ( platform switching ) 12

13 Ultimate range of implants and materials Resin Nano Ceramic Ultimate Restorative for CADCAM crowns, inlays, onlays and veneers Brilliant esthetics, great durability 1 and optimum handling Straumann first to launch Standard Plus NNC, a new Tissue level implant for thin spaces and narrow bone ridges Made out of our proprietary high-strength implant material Roxolid Adds treatment options and flexibility Full rollout in spring 2012 by Straumann. All rights 1 reserved. 10-year guarantee 13

14 Digitalization is changing dentistry for patients, restorative dentists for dental technicians and for implant surgeons 14

15 and Straumann has all ingredients to become the partner of choice in digital dentistry Scanning To capture patient specific situation Designing With Open Standard Software Element Milling in Centralized Milling Centre Restoring dentist Dental technician Straumann milling centres Internet transfer 15

16 A portfolio that addresses the full regenerative market Total market size CHF 0.5bn Bone grafts Membrane Tissue Regeneration Tissue Regeneration Bone Graft (Synthetic) Allograft (human derived bone substitute) Membrane and offers great synergy potential 16

17 Our performance & market trends

18 What is happening in the market? Modern tooth replacement market growing in the low- to mid-single digit Double-digit growth in emerging markets and upper mid-single-digit growth in North America continues Europe, the largest regional market, struggled to keep momentum due to economic uncertainty, the debt crisis, and declining consumer sentiment As anticipated, the market is consolidating (Dentsply, Danaher) Fundamental trends: - Digitalization changes processes, shortens procedures and improves efficiency - Hi-tech materials & new technologies enable new treatment protocols - Patient-specific solutions improve quality & enhance esthetics 18

19 Straumann sustained its above-market growth in Q3 25% 20% 15% 10% 5% 0% -5% Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3-10% -15% Straumann organic growth l.c. Market for tooth replacement & restoration (leading implant companies 1 ) 1 Market share weighted growth rates (in l.c.) of Biomet/3i, Dentsply, Nobel Biocare, Straumann and Zimmer; collectively representing 2/3 of the dental implant market. Source: Published company data, consensus estimates, 10-K, and management comments 19

20 Growth across all regions underpin our leading position; economic uncertainty hinders recovery in Europe 10% 41% # 2 market share N. America 17% 1% Europe 6% 16% 31% 25% APAC ROW Straumann 9M growth in l.c. Contribution to Group growth 20

21 Outlook

22 Further investment in people to sustain growth Marketing & Sales team strengthened to drive growth in implants Hiring rate reduced; 52 new jobs created in H1 (145 in LTM), bringing global workforce to

23 Outlook 2011 (summary) Barring unforeseen circumstances Straumann expects the market to grow in the low-to-mid-single digit range in 2011 Group is convinced that it can again deliver above-market performance Excluding the impairment charge related to Japan 1, Straumann s full-year operating margin is expected to be in the high teens 1 40 million intangible asset impairment charge reported in August 23

24 Question & answer session

25 Investor calendar 29 November 5 January 13 January 14 January 22 February 04 April February March Berenberg European Conference Oddo Midcap Forum Helvea Swiss Equities Conference Start Quiet Period Full-year 2011 Results Conference Annual General Meeting 2012 Full-year Roadshow Full-year Roadshow Detailed calendar on London (UK) Lyon (F) Bad Ragaz (CH) Basel (CH) Basel (CH) North America Europe 25

26 Your investor relations contacts Fabian Hildbrand Phone +41 (0) Mobile +41 (0) Rahel Steiner Phone +41 (0)

27 Strong FX headwind this year; neutral effect exp. in 2012 EURCHF Average exchange rates (rounded) FY 2009 FY 2010 Q Q Q YTD 1.3 EURCHF USDCHF JPYCHF Net revenue breakdown Cost breakdown 1 1 Jan Feb Mar Apr May Jun Jul Sep Oct Nov Dec USDCHF Other 17% CHF 13% EUR 46% CHF 41% EUR 27% USD/CAD/AUD 24% Other 15% USD/CAD/AUD 17% Jan Feb Mar Apr May Jun Jul Sep Oct Nov Dec These distribution charts represent the total net revenues and the total COGS, SG&A costs as well as R&D expenses in the various currencies. All numbers are rounded and based on 2010 figures. 27

28 Portfolio manager summary NET REVENUE Market Capitalization USD 2.5bn Return on equity 20% Return on capital employed 47% Equity ratio 82%; debt-free; cash & cash equivalents of CHF 350m Free cash flow margin 21% Employees ~2 400 Payout ratio ~33% of net income Corporate Governance: Top10 rated Swiss company 1 Index member SPI, SMIM, SPI Extra, Y SHARE PRICE PERFORMANCE Dow Jones STOXX 600, Dow Jones STOXX Health Care etc. Stock listing SIX Swiss exchange Straumann Nobel Biocare Swiss market index SMI MSCI World Healthcare Equ&Serv index (CHF) Source, Thomson Reuters, key ratios as per end of 2010, 1 The zrating empirical study 2010 rated Straumann as 6th best Swiss Corporate Governance company (out of the 130 SPI Extra universe). 28