Coltene Holding Ag · SIX:CLTN
Coltene — FY2017 Earnings Presentation
32 slides from Coltene's earnings presentation, Mar 6, 2018
Slide 1: Full Year Results 2017
Full Year Results 2017 Media and Financial Analysts Conference Upgrade Dentistry Martin Schaufelberger – CEO COLTENE Holding AG Gerhard Mahrle – CFO COLTENE Holding AG Zurich - March 6, 2018 COLTENE – AN INTERNATIONALLY LEADING DEVELOPER, MANUFACTURER AND SELLER OF CONSUMABLES AND SMALL EQUIPMENT FO
Slide 2: Safe Harbor Statement
Safe Harbor Statement The information made available in this presentation may include forward- looking statements that reflect intentions, beliefs or current expectations and projections of the COLTENE Group about future results of operations, financial conditions, liquidity, performance and similar
Slide 3: COLTENE Annual Reporting 2017
COLTENE Annual Reporting 2017 Highlights 2017 Martin Schaufelberger CEO Financials 2017 Gerhard Mahrle CFO Upgrade Dentistry Martin Schaufelberger CEO Outlook & Priorities Martin Schaufelberger CEO 3
Slide 4: COLTENE – At a Glance
COMPANY PORTRAIT COLTENE – At a Glance COLTENE develops, manufactures and COLTENE is a leading, innovative and markets premium consumables in the dental independent Company, operating segments of Restoration, Endodontics, internationally in the dental industry focusing Prosthetics, Rotary, Infection
Slide 5: Higher Sales, EBIT and Net Profit
FY 2017 HIGHLIGHTS Higher Sales, EBIT and Net Profit Growth at faster pace than underlying market Pleasing growth in all four major regions in Swiss francs and local currencies (LC) SALES headed by India, China and Brazil Rotary Instruments delivered the highest growth rate Net sales of CHF 168.0 mi
Slide 6: Growth on Every Continent
NET SALES BY REGION Growth on Every Continent Net Sales in % Net Sales in CHF million 2015 2016 2017 North America 80 EMEA 70.2 70 Asia 58.1 60 +2.9% 50 +3.0% Latin America 40 30 22.2 20 17.5 10 +7.5% Total 2017: CHF 168.0 million +13.8% 0 EMEA North America Asia Latin America 6
Slide 7: Restoration Strongest, Rotary with Highest Growth
NET SALES BY PRODUCT GROUP Restoration Strongest, Rotary with Highest Growth Net Sales in Other 2015 20162 2017 Infection CHF million Control 5.5% Restoration 45 41.3 Rotary 6.6% 40 24.6% 34.7 Instruments 34.4 8.5% 35 +2.5% 30 +2.3% +4.5% 2017 25 22.8 CHF 168.0 million 20 Treatment 13.6% 14.3 Auxili
Slide 8: Digitalization Opens up New Opportunities
DENTAL CONSUMABLES MARKETS Digitalization Opens up New Opportunities EMEA: Pleasant growth in Southern Europe, France, Benelux countries and Switzerland Asia: Continued dynamic growth in India and China MARKETS North America: Sales grew in line with underlying markets Latin America: Pleasing top and
Slide 9: Increasing Operational Efficiency
MANAGEMENT ACTIONS 2017 Increasing Operational Efficiency Ongoing implementation of strategic goals 2016-2018 focusing on Sales & Marketing activities, Innovation management and Partnerships STRATEGY Continued extension of sales force, plus 15 sales reps 2 strategic acquisitions, extension of Rotary
Slide 10: Financials 2017
Financials 2017 Gerhard Mahrle CFO 10
Slide 11: Sales and Profit Increase - Solid Balance Sheet
FINANCIAL SUMMARY 2017 Sales and Profit Increase - Solid Balance Sheet Net sales of CHF 168.0 million; +4.6% compared to 2016; +2.6% organic growth in LC Asia and Latin America with high one digit growth in LC; North America in line with SALES markets, EMEA slightly below expectations Brazil compens
Slide 12: Substantial Increase in Profitability
INCOME STATEMENT Substantial Increase in Profitability in CHF million 2017 % 2016 % % YoY Comments Net Sales 168.0 100.00% 160.7 100.00% 4.6% • Net sales growth of 4.6% Material expenses* -46.3 -27.6% -44.3 -27.5% 4.6% • Positive FX impact of CHF 1.7 million or 1.1% on net sales Gross Profit 121.7 7
Slide 13: Positive Development of EBIT and Net Profit
INCOME STATEMENT Positive Development of EBIT and Net Profit in CHF million in CHF million 30 24 5.3 5.3 28 22 25.5 20 19.1 26 -3.0 -0.1 18 17.3 -1.1 0.7 -3.0 -0.1 24 23.3 16 22 14 20 12 18 10 13
Slide 14: Solid Balance Sheet and High Equity Ratio
BALANCE SHEET Solid Balance Sheet and High Equity Ratio in CHF million 31.12.17 31.12.16 YoY Comments Cash & cash equivalents 22.0 21.6 0.5 • Balance sheet total increased by CHF Receivables 40.5 36.0 4.5 6.9 million or 4.3% (increase of NWC) Inventory 31.6 30.8 0.7 • High cash balance of CHF 22.0 m
Slide 15: High Positive Free Cash Flow
CASH FLOW STATEMENT High Positive Free Cash Flow in CHF million 2017 2016 % YoY Comments Net profit 19.1 17.3 10.4% • Drop of cash flow from operating Depreciation and amortization 5.7 5.6 1.9% activities through an increase of the net working capital and higher income Other non cash items 4.6 4.3 8
Slide 16: Attractive Share Performance and Dividend
SHARE PERFORMANCE Attractive Share Performance and Dividend in CHF COLTENE SPI in CHF Earnings per Share Dividend 110.00 5.00 100.00 4.00 90.00 3.00 80.00 70.00 2.00 60.00 1.00 50.00 40.00 0.00 05.01.2015 05.03.2015 05.05.2015 05.07.2015 05.09.2015 05.11.2015 05.01.2016 05.03.2016 05.05.2016 05.07.2
Slide 17: Proposals to the General Assembly
AGM 2017 Proposals to the General Assembly Re-election of the current members of the Board of Directors Dividend to the AGM 2018 CHF 3.00 per share; Dividend yield of 3.2% based on year-end share price of CHF 94.9 Payout ratio of 66% Compensation of the Board of Directors and Group Management Maximu
Slide 18: Upgrade Dentistry
Upgrade Dentistry Martin Schaufelberger CEO
Slide 19: Better Quality. Better Reliability. Better Practice.
UPGRADE DENTISTRY Better Quality. Better Reliability. Better Practice. COLTENE is convinced that everything can always be a little bit better, easier and more reliable. With expertise and enthusiasm, we turned this claim into reality. The Company knows exactly what its end customers need and desire.
Slide 20: Growth Strategy
STRATEGY Growth Strategy Improve efficiency and effectiveness of the global sales teams: Training of sales staff and use of new sales and marketing tools Increase number of sales representatives pursuant to market potential: 15 to 20 new sales staff (recruiting process ongoing) STRATEGY REVIEW WITH
Slide 21: Trends – Strategy – Innovation
STRATEGY Trends – Strategy – Innovation Tooth preservation: endodontic treatments and its procedures Prevention and minimal invasive restoration TRENDS AND Practice infection control management OPPORTUNITIES COLTENE IS Auxiliaries for effective processes in dental treatment MONITORING CONSTANTLY Gro
Slide 22: Recently Launched Products
INNOVATION Recently Launched Products BRILLIANT Crios Diatech CAD/CAM composite blocs Burs in the US for permanent restoration BRILLIANT EverGlow™ Flow State-of-the-art universal submicron hybrid composite KENDA Polishette GuttaFlow® bioseal BioSonic® UC150 Bioactive cold filling system Compact 5.7L
Slide 23: Outlook & Priorities
Outlook & Priorities Martin Schaufelberger CEO 23
Slide 24: Market Opportunities and Challenges
OUTLOOK AND PRIORITIES Market Opportunities and Challenges Impact Dynamic Asian markets headed by China and India ++ Competitive environment in North America and some Western European markets +/- SALES Growth potential in selected Asian countries + Further growth potential in Latin America + Ongoing
Slide 25: Focus on Profitable and Sustainable Growth
OUTLOOK AND PRIORITIES Focus on Profitable and Sustainable Growth Participation in general market growth in dental consumables of 2-3% MARKETS Exploit growth opportunities spurred by megatrends such as ageing population, growing middle class and increasing importance of emerging markets Consolidatio
Slide 26: Many thanks for your attention!
Many thanks for your attention! COLTENE – AN INTERNATIONALLY LEADING DEVELOPER, MANUFACTURER AND SELLER OF CONSUMABLES AND SMALL EQUIPMENT FOR DENTAL PRACTITIONERS.
Slide 27: APPENDIX
APPENDIX APPENDIX 27
Slide 28: Full Spectrum of Dental Care
COMPANY PORTRAIT Full Spectrum of Dental Care Restoration Prosthetics Endodontics The Restoration product group offers a In Prosthetics, COLTENE offers a broad range of The Endodontics range is focused on products comprehensive range of products for restorative Condensation and addition silicon impr
Slide 29: Global Setup
COMPANY PORTRAIT Global Setup Europe Group companies 10 North America Production sites 2 Group companies 2 Production sites 1 GERMANY, Langenau SWITZERLAND, Altstätten USA, Cuyahoga Falls (OH) Asia Pacific Group companies 3 Production sites 0 Middle East and Africa Group companies 0 Production sites
Slide 30: Highly Experienced Group Management
COMPANY PORTRAIT Highly Experienced Group Management Werner Mannschedel Gerhard Mahrle Christophe Loretan Martin Schaufelberger Werner Barth Vice President R&D and Regulatory Affairs Group CFO Vice President Sales Group CEO Vice President Marketing Since 2015 Since 2014 Since 2015 Since 2012 Since 2
Slide 31: 5-Year Overview of the Key Figures
FINANCIALS OVERVIEW 5-Year Overview of the Key Figures in CHF million in CHF million Net Sales EBIT EBIT Margin in % 170.0 168.0 15.2% 16.0% 25.0 14.5% 162.3 160.0 160.7 13.8% 23.0 160.0 13.2% 14.0% 154.5 21.0 12.1% 150.0 19.0 12.0% 17.0 19.4 22.4 20.4 23.3 25.5 140.0 15.0 10.0% 2013 2014 2015 2016
Slide 32: Contacts
CONTACTS COLTENE Holding AG Feldwiesenstrasse 20 9450 Altstätten Switzerland www.coltene.com Martin Schaufelberger Gerhard Mahrle CEO CFO [email protected] [email protected] +41 71 757 53 60 +41 71 757 54 37 32