Coltene Holding Ag · SIX:CLTN
Coltene — H1 2023 Earnings Presentation
20 slides from Coltene's earnings presentation, Aug 4, 2023
Slide 1: Half Year Results 2023
Patient Safety Media and Financial Analysts Conference – Half Year Results 2023 Martin Schaufelberger, CEO Markus Abderhalden, CFO 4 August 2023
Slide 2: Safe Harbor Statement
Safe Harbor Statement This written statement and oral statements or other statements made, or to be made, by us contain forward-looking statements that do not relate solely to historical or current facts. These forward-looking statements are based on the current plans and expectations of our managem
Slide 3: Agenda
Agenda Media and financial analysts conference call H1 2023 Highlights H1 2023 Martin Schaufelberger, CEO Financials H1 2023 Markus Abderhalden, CFO Outlook Martin Schaufelberger, CEO Q&A All Half Year Results 2023 3
Slide 4: Highlights H1 2023
Highlights H1 2023 Record free cash flow and strong balance sheet basis for further growth Key figures • Net sales CHF 131.4 m (PY CHF 134.9 m); +1.7% adjusted by FX and -2.6% in CHF • EBIT margin at 11.0% (PY 12.4%) • Net profit amounted to CHF 10.0 m (PY CHF 12.1 m) • Free Cash Flow at CHF 16.7
Slide 5: Net Sales by Product Groups
Net Sales by Product Groups Strong development of Infection Control due to the clearing of backlogs Net Sales H1 2023 by product groups (shares) Net Sales by product groups (in CHF m) -4.2% 52 +6.2% 52 50 50 -9.5% Dental Preservation 45 (HY1 2022: 30.4%) Infection Control 42 41 41 28.2% (HY1 2022: 3
Slide 6: Net Sales by Region
Net Sales by Region North America with a higher share of sales due to the strong Infection Control Net sales H1 by regions (in CHF m) 72 62 62 50 50 47 2021 2022 2023 15 15 15 6 9 8 LAM ASIA EMEA NAM Half Year Results 2023 6
Slide 7: Financial Summary H1 2023
Financial Summary H1 2023 Net sales impacted by strong Swiss franc Sales • Net sales down by 2.6% to CHF 131.4 m • At constant FX rates net sales increased by 1.7% EBIT • EBIT decreased to CHF 14.4 m (- 13.5% vs 2022) • EBIT margin at 11.0% (PY 12.4%) Net profit • Net profit amounted to CHF 10
Slide 8: Income Statement
Income Statement Increase of net sales by 1.7% at constant FX rates in CHF million H1 2023 % H1 2022 % % YoY • Net sales decrease driven by a strong CHF. At a constant exchange rate, a growth of 1.7% would Net Sales 131.4 100 134.9 100 -2.6 have resulted. • Gross profit margin mainly decreased due t
Slide 9: EBIT Development H1 2022 – H1 2023
EBIT Development H1 2022 – H1 2023 In CHF million 16.7 2.4 14.4 0.2 1.1 3.0 2.2 EBIT H1 2022 Volume effect Margin effect Personnel expense Other operating Depreciation & EBIT H1 2023 expense Administration Gross Profit: Volume effect is driven by Personnel Expenses: Besides the positive OPEX decreas
Slide 10: Net Profit
Net Profit Decline in net profit driven by lower gross margin Slightly increased financial expenses: Tax rate increase: Net profit decrease: ➢ Increase in interest expenses ➢ One-time effect of withholding ➢ Net profit mostly driven by the lower taxes in the current year gross margin due to a change
Slide 11: Balance Sheet
Balance Sheet Adequate liquidity and a healthy balance sheet in CHF million 30.06.2023 31.12.2022 % YoY • Cash balance slightly decreased due to Cash & cash equivalents 23.4 24.2 -3.2% further repayments of financial liabilities Receivables 43.8 43.9 -0.2% • Decrease in inventory due to optimization
Slide 12: Equity
Equity Stable balance sheet with an increasing equity ratio In CHF million ➢ Total assets stable at CHF 187.1 m ➢ Equity ratio: increased to 53.9% 300 60 52.9% 53.9% 49.5% 250 50 200 193 195 187 40 150 98 92 86 30 100 20 50 96 103 101 10 0 0 30.06.2021 30.06.2022 30.06.2023 Equity ratio Liabilities
Slide 13: Cash Flow Statement
Cash Flow Statement Strong free cash flow despite high taxes and high investments in CHF million H1 2023 H1 2022 % YoY • Operating cash flow at a high level driven Net profit 10.0 12.1 -17.4% by the changes in NWC Depreciation and amortization 3.4 3.3 • Cash out from investing activities slightly Ot
Slide 14: What can we expect in 2023?
What can we expect in 2023? Focus on patient safety Challenges • Strong Swiss franc • Uncertain outlook of the world economy Main Focus • Launch of first digital product / services in my.coltene in second semester 2023 • Sales focus Endo in US and Europe based on received product registrations •
Slide 15: Q&A
Patient Safety Q&A 15
Slide 16: Dental Industry Mega trends
Dental Industry Mega trends COVID-19 pandemic Globalization and e-commerce Increasing requirements in distribution regarding quality management and regulatory affairs (MDR) Negative trend in volume due to Digitalization in better oral health in Consolidation • the dental processes developed countrie
Slide 17: Organization
Organization Management Board of Directors Group Management Nick Huber Martin Schaufelberger Chairman CEO Markus Abderhalden Martin Schlüter Matthias Altendorf Daniel Bühler CFO VP R&D / Innovation Paul Frey Werner Barth Jürgen Rauch Roland Weiger VP Sales & MarCom NAM VP Product Mgmt / Group Market
Slide 18: COLTENE Overview
COLTENE Overview Altstätten (Switzerland) Top quality dental supplier • COLTENE develops, manufactures and markets Toronto (Canada) premium dental materials and small equipment for dental practices Dental Preservation / Efficient Treatment • 5 specialized manufacturing sites Langenau (Germany) • Med
Slide 19: Key Figures
Key Figures Five year overview H1 2019 - 2023 Net Sales in CHF million EBIT in CHF million EBIT EBIT Margin in % 150 143.5 30 1.0 135.4 134.9 131.4 26.0 25 0.8 103.9 100 20 16.7 14.4 0.6 15 12.8 18.1 0.4 50 10 12.4 11.0 5 9.4 2.6 0.2 2.5 0 0 0.0 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Net
Slide 20: Share Performance
Share Performance Continued volatility in the financial market environment Share price Earnings per share/dividend Earnings per Share Dividend 3.4 3.3 3.3 3.3 140 3.0 3.0 130 120 110 100 2.0 90 1.7 1.5 80 70 60 50 0.1 COLTENE SPI (rebased) 2019 2020 2021 2022 2023 * Board of Directors’ proposal to t