2016 9-months sales presentation - straumann...2016 9-months sales presentation webcast for...
TRANSCRIPT
27.10.2016
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2016 9-months sales presentationWebcast for investors, analysts & media
Basel, 27 October 2016
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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. 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.
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HighlightsMarco Gadola, CEO
Strong all-round performance continues in Q3
1 Organic growth – i.e. excluding the effects of currency fluctuations and acquired/divested business activities4
R E V E N U E G R O W T H Q 3 B U S I N E S S E S S T R O N G E S T R E G I O N S
+12.5%in organic terms1
Double-digit growth
North America & APAC
+14.4% in CHF continues across all businesses; Instradent posts triple-digit increase
Entry into Argentina (2nd largest market in LATAM)
P R O D U C T H I G H L I G H T S T R A T E G I C H I G H L I G H T S F U L L - Y E A R G U I D A N C E
Variobase®
abutment family
Creatingopportunities
On track
Versatile, cost-effective solution; high double-digit growth since launch 3 years ago; 400 000 sold
EMEA reorganization to free up resources for emerging markets; Instradent European hub operational; shared technology platform expanded
…to achieve low-double-digit organic revenue growth with further EBIT margin improvement (barringunforeseen circumstances)
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A fourth consecutive quarter of double-digit growth
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North America28% of Group
Organic revenue growth in %
17.3
15.5
Q3 9MLATAM
10% of Group
EMEA 45% of Group
APAC17% of Group
12.5
14.3
Q3 9M
Group
7.7
9.5
Q3 9M
17.0
19.4
Q3 9M
12.7
14.5
Q3 9M
Business and regional reviewPeter Hackel, CFO
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585.3
5.4 5.7
596.4
26.4
25.318.1
8.9
675.1
Revenue 9M2015
FX effect M&A effect Revenue 9M2015 @ FX
2016
EMEA NorthAmerica
APAC LATAM Revenue 9M2016
Change in organic growth
Strong expansion across all regions
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Revenue development (in CHF million, rounded)
2015 2016
0.9% 15.5% 14.5%9.5% 19.4%1.0%
Contribution to growth
EMEA
NorthAmerica
APAC
LATAM
34%
32%
23%
11%
15.3% in CHF13.2% organic
Revenue change (organic)
56%
Robust Q3; results generally positive
Iberia, Italy and France among the principal contributors
Zinedent joint-venture in Turkey adds to growth
7.7%
11.1% 9.4% 8.3% 8.5% 8.3%
Q3Q2Q12016
Q4Q3Q2
EM
EA
No
rth
Am
eric
a
Strong performance; +17% in Q3
Healthy growth in all business segments
BLT helps win new general dentists and surgeons (40% of Straumann implants sold in region are BLT)
Instradent reports notable gains
28%
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17.3% 16.9%
12.5%
6.6% 6.1%
9.3%
Q3Q2Q12016
Q4Q3Q2
45%
EMEA robust – impressive performance in North America
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56%
Growth in Q3 exceeds market growth
Key performer: China
Chinese value segment entered -first full quarter of sales from Anthogyr
17.0%20.2%21.0%20.0%
13.2%12.8%
Q3Q2Q12016
Q4Q3Q2
Asi
aP
acif
icL
ATA
M 12.7%
17.2%
13.3%16.8%
1.3%
15.6%
Q3Q2Q12016
Q4Q3Q2
Q3 revenue up 13% from comparatively low baseline
Strong performances in Mexico and Brazil (despite stagnant market)
Strong demand for BLT – LATAM overtakes other regions in less than a year
17%
10%
APAC & LATAM keep the pace up
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Revenue change (organic)
Implants
Double-digit growth in all businesses
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Restorative Biomaterials
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Update on strategic progressMarco Gadola, CEO
Drive a high performance culture and organization
Target unexploited growth markets & segments
Become THE Total Solution Provider for Tooth Replacement
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Update on our strategic priorities
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Entry into LATAM’s 2nd largest market – Argentina
Subsidiary in Buenos Aires goes into operation
and will address premium and non-premium
segments
Distributor business taken over
Direct access to Argentinian market through own
marketing, sales force, education, etc.
2nd largest market in Latin America with ~400k
implants placed in 2015: 97 per 10k population1)
1 Straumann estimates
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Instradent Europe now operational – value offering and competitive position strengthened
European hub in Freiburg, Germany,
to serve countries without Instradent
organizations and to accelerate
market penetration
Hub provides warehouse, distribution
& supply, customer services, as well
as commercial management for
customers, distributors and agents
New markets served directly by hub
Markets with established Instradent subsidiaries
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Rapidly expanding footprint in the non-premium segment
Neodent home market Instradent/Manohay footprint
Instradent/Neodent distributorsMedentika home market
Equinox home market
Re-allocation in Europe to free up resources foremerging markets (effective 01.2017)
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Europe Distributor/emerging markets
Wolfgang BeckerEVP Distributor & Emerging Markets
EMEA
Jens DexheimerEVP Europe
Subsidiaries reallocated
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Production expansion to meet growing demand
Premium segment
Villeret (CH) & Andover (US) to increase output by a quarter in 2016/17
through capacity optimization and investments in plant & equipment
Value segment
Curitiba (BR) will almost
double capacity in coming
years
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Drive a high performance culture and organization
Target unexploited growth markets & segments
Become THE total solution provider for tooth replacement
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Update on our strategic priorities
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Steps initiated to become a ‘Total Solution Provider’
§
Digital Dentistry
Fully integrated digital treatment workflow
Today Expansion areas
1919
Prosthetics
3rd party prosthetics
Restoration materials
Standard & customized
Regenerative
Bone augmentationMembrane
Soft tissue repair
Wound healingEnhanced bone
regenerationGeographical reach
Diagnosis & treatment planning
Implant
Tooth replacement
Accelerated treatment protocols
Implant maintenance
Premium ValueCommon technology andmanufacturing platform
Technology & manufacturing platform: update and further expansion
Brazil (100%) Germany (51%)
S. Korea(arbitration)
Spain (30%)
Canada (55%)
Germany
Germany (100%)
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Taiwan (49%)
USA (13%)
Switzerland (44%)
Austria
Taiwan(conv. bond)
France (30%)
India (100%)(coming months)
Implants CADCAM/prosthetics Regeneratives
Turkey (50%)(joint venture)
Canada (30%)
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21
Straumann invests in V2R Biomedical –specialist in guided-surgery planning
Canadian company specialized in guided-surgery planning since 2008
30% stake acquired with option to increase to full ownership
‘Smile-in-a-box’ concept to provide drill guide plus all components
together for single/multiple/full-arch replacements in a single surgical
appointment
Data acquisition
Planning & design
“Smile in a box”Production Surgery
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Innovative, amorphous, diamond-like, carbon coating (ADLC) for durability
Removable, variable matrix inserts (low maintenance)
Precise alignment & seating; original Straumann connection
Successful launches in Europe & Australia; other markets to follow
Developed by Swiss technology partner Valoc
Preferred alternative to previous system
Straumann launches Novaloc® attachment system for implant-borne removable dentures
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New chairside system enters controlled marketrelease
Straumann Amann Girrbach chairside mill
Market acceptance tests underway in Central
Europe
Straumann/Dental Wings intra-oral scanner
Attractively priced; launched in US (Benco and
Burkhart)
Pilot in Germany; further test markets in Europe to
follow with rollouts planned in 2017
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Reach broadened to become a total solution provider
Lab scanning
Chairside milling
Centralised milling
ManufacturingProsthetic design Scan of patient case
or 3rd party scanners
Intra-oral scanning
In-lab milling / practice lab
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Planmeca adds distribution power for Straumann’s n!ce™ material
Unique glass ceramic for single-tooth restoration, optimized for chairside (‘mill-polish-seat’ concept; no crystallization firing required1)
Commercialization through all Straumann Group channels underway
Global distribution rights granted to Planmeca Oy to add marketing power and to help build the brand worldwide,
Planmeca is a well-established leader in high-tech dental markets worldwide; range includes dental equipment, software and CADCAM solutions
1 Crystallization process typically takes 10-20 minutes, depending on material and oven equipment
Cooperation with Zirkonzahn SARL opens door to new group of lab customers
Zirkonzahn to distribute Straumann Variobase® abutments
International supplier of lab solutions, including prosthetics for a wide
range of implant systems
Customers using Zirkonzahn’s digital workflow gain easy access to
Straumann cost-effective abutments with original connections
Test-market roll-out under way in Germany
26 Zirkonzahn is a registered brand name of the respective company.
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Outlook 2016
Guidance 2016 reiteratedBarring unforeseen circumstances
Straumann expects the global implant
market to grow solidly in 2016 and is
confident that it can continue to
outperform
Aims to achieve full-year organic growth
in the low-double-digit range
Despite further investments in strategic
growth initiatives, the expected revenue
growth and operational leverage should
lead to further improvements in the
underlying full-year EBIT margin (2015:
23%).
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Questions & answers
Calendar of upcoming events2016
27 October Q3 revenue publication Webcast
02 November Vontobel Healthcare Tour Basel
15 November Investor meetings Zurich
17 November Credit Suisse Mid Cap Conference Zurich
08 December Credit Suisse European Healthcare Trip HQ, Basel
2017
12 January Bellevue Meets Management Seminar Zurich
16 February Full-year results conference HQ, Basel
07 April AGM 2016 Messe Basel
Social media
Analyst Talk Executive interviews Straumann.com / youtube.com
StraumannIR Investor Relations Twitter @StraumannIR
More information on straumann.com → Events30
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CHF37%
EUR19%
USD/CAD/AUD24%
BRL11%
Other11%
CHF9%
EUR33%
USD/CAD/AUD29%
BRL10%
Other19%
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 2015 figures and include Neodent since 1 March 2015.
Cost breakdown FY20151
Revenue breakdown FY20151
Average exchange rates (rounded)FX sensitivity
(+/- 10%) on full-year...
2014 2015 9M 2016 Revenue EBIT
1 EURCHF 1.21 1.08 1.09 +/- 26m +/- 16m
1 USDCHF 0.92 0.96 0.98 +/- 20m +/- 7m
1 BRLCHF 0.389 0.295 0.277 +/- 8m +/- 2m
100 JPYCHF 0.86 0.88 0.90 +/- 5m +/- 3m
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50
70
90
110
130
2014 2015 2016
EURCHF BRLCHF USDCHF JPYCHF
Your contacts
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Corporate Investor Relations
Fabian Hildbrand
Tel. +41 (0)61 965 13 27
Corporate Communications
Mark Hill Thomas Konrad
Tel. +41 (0)61 965 13 21 Tel. +41 (0)61 965 15 46