Coltene Holding Ag · SIX:CLTN
Coltene — FY2007 Earnings Presentation
27 slides from Coltene's earnings presentation, Mar 19, 2008
Slide 1: Medisize Holding AG Year-End Results 2007
Medisize Holding AG Year-End Results – 2007 1 Safe Harbour statement Before we may start with the presentations, we need to remind you that the information made available in this presentation may include forward-looking statements that reflect the intentions, beliefs or current expectations and proj
Slide 2: Organizational chart and Content
Organizational chart Board of Directors Chairman: Nick Huber Members: Robert Heberlein, Jerry Sullivan, Matthew Robin Executive Management Andreas Meldau, CEO Hans Grüter, CFO 3 Content • Review Fiscal Year 2007 • Group Financials • Dental Strategy and Outlook 2008 • Q&A 4
Slide 3: 2007 Consolidated Highlights
2007 Consolidated Highlights • 9.8% net sales growth • 17.1% operating income improvement to CHFm 35.2 • 16.2% net income increase to CHFm 26.3 • EBIT margin increases from 12.0% to 12.8% • Free cash flow of CHFm 22.9 5 2007 Consolidated Highlights (2) • Debt reduced by 25% to CHFm 36.6 • Shareholde
Slide 4: Successful second year for Medisize; Strategy
Successful second year for Medisize Operationally Accelerated sales growth Margin improvements Management Broadened Management band width Strategy Sale of Medical narrows strategic focus to pure Dental Shareholder Investor friendly dividend policy 7 Strategy Focus on Dental builds on proven ability
Slide 5: Dental Highlights
Dental Highlights • Strengthened the comprehensive product portfolio • Successfully integrated CEI • Improved operating efficiency • Launch of market specific aesthetic dentistry products in Latin America • Establish subsidiary in China 9 Dental Highlights (2): Markets • Extraordinary high growth ra
Slide 6: Medical highlights
Medical highlights • Successful implementation of profitability improvement program especially in Airway Management • Good demand for key products/projects • Launch of Zephyros breathing machine • Interesting new development projects in the pipeline • Production capacity increases • Reduction of raw
Slide 7: Group Financials: Income statement
Group Financials • Financial Results Group, Dental and Medical • Sale Medical Business • Distribution Proposal 13 Medisize Group: Income statement EBIT increase by 17.1% 1'000 CHF 2006 % 2007 % % YoY Net Sales 249'864 100.0% 274'233 100.0% 9.8% Raw materials 82'565 33.0% 88'719 32.4% 7.5% Personnel
Slide 8: Dental and Medical: Income statement
Dental: Income statement Excellent performance to 16.1% EBIT margin 1'000 CHF 2006 % 2007 % % YoY Net Sales 153'560 100.0% 168'110 100.0% 9.5% Raw materials 42'391 27.6% 46'859 27.9% 10.5% Personnel expenses 49'793 32.4% 54'163 32.2% 8.8% Other expenses 32'856 21.4% 35'668 21.2% 8.6% Depreciation 3'
Slide 9: Group Income statement and Cash flow statement
Medisize Group: Income statement Net profit increase by 16.2% 1'000 CHF 2006 % 2007 % % YoY EBIT 30'081 12.0% 35'230 12.8% 17.1% Financial result (net) -1'150 -0.5% -1'776 -0.6% 54.4% Net profit before tax 28'931 11.6% 33'454 12.2% 15.6% Tax expenses -6'294 -2.5% -7'159 -2.6% 13.7% In % of net profi
Slide 10: Balance sheet; Signed Medical sale to Medifiq
Medisize Group: Balance sheet High equity ratio 1'000 CHF 31.12.06 31.12.07 Cash & cash equivalents 19'947 13'367 Receivables 54'248 57'755 Inventory 49'657 49'846 Property, plant & equipment 59'101 57'596 Financial, intangible & tax assets 64'445 69'004 Total assets 247'398 247'568 Payables & short
Slide 11: Distribution proposal and timetable
Distribution proposal Per share Total amount CHF TCHF Dividend April 21, 2008 4.30 20'124 Nominal value reduction July 2008 4.90 22'932 Capital redemption program end of 2008 50'000 Total 93'056 21 Distribution timetable April 16, 08 April 21, 08 July 08 Sep 08 Nov 08 AGM Dividend Nominal extraordin
Slide 12: Balance Sheet Forecast; Dental as a stand-alone Company
Balance Sheet Forecast Positioned for organic growth & acquisitions 1'000 CHF 31.12.07 31.12.08 EST Cash & cash equivalents 13'367 7'000 Other current assets 107'601 71'000 Non-current assets 126'600 77'000 Total assets 247'568 155'000 Other liabilities 45'348 23'000 Bank loans & other loans 36'555
Slide 13: Focus on Dental Business
COLTENE Agenda – Key Headlines • Focus on Dental Business • Strengthened Management capacity • Today’s product offering • Dental market and growth opportunities • COLTENE growth factors • COLTENE production sites • COLTENE dental success factors 25 COLTENE Focus on Dental Business • Name change on H
Slide 14: Strengthened Management
COLTENE Agenda – Key Headlines • Focus on Dental Business • Strengthened Management capacity • Today’s product offering • Dental market and growth opportunities • COLTENE growth factors • COLTENE production sites • COLTENE dental success factors 27 COLTENE Strengthened Management Board of Directors
Slide 15: Dental Product World
COLTENE Agenda – Key Headlines • Focus on dental Business • Strengthened Management capacity • Today’s product offering • Dental market and growth opportunities • COLTENE growth factors • COLTENE production sites • COLTENE dental success factors 29 COLTENE Dental Product World Adhesives / Restorativ
Slide 16: Dental Product World
COLTENE Dental Product World Endodontics / Post & Core Prosthetics / Impression Materials 31 COLTENE Dental Product World Rotary Instruments Hygiene / Ultrasonic Cleaner 32
Slide 17: Global Dental Market
COLTENE Agenda – Key Headlines • Focus on Dental Business • Strengthened Management capacity • Today’s product offering • Dental market and growth opportunities • COLTENE growth factors • COLTENE production sites • COLTENE dental success factors 33 COLTENE Global Dental Market Annual Growth Rate 15%
Slide 18: Dental Market Sales Split; Growth Opportunities
COLTENE Dental Market – Sales Split 6% 8% Consumables 21% Equipment Pharma 65% Implants Asia 20% USA 38% Europe Rest 34% 8% 35 COLTENE Growth Opportunities • Global annual growth 3.5% - 4% per year • Areas – Asia >10% – Russia / Eastern Europe 7-10% – Latin America 5 - 8% – USA and Europe 3% – Japan
Slide 19: Base for COLTENE Growth Strategy
COLTENE Agenda – Key Headlines • Focus on Dental Business • Strengthened Management capacity • Today’s product offering • Dental market and growth opportunities • COLTENE growth factors • COLTENE production sites • COLTENE dental success factors 37 COLTENE Base for COLTENE Growth Strategy Product In
Slide 20: Growth – Product Innovation
COLTENE Growth – Product Innovation • Goals – Launch of 4-6 new products p.a. – Innovation cycles actively shortened (3-5 years -> 1-2 years) – Balance between internal know-how and external expertise – Good leverage of co-operation with universities – Capitalize on strong opinion leader network • C
Slide 21: Growth – Acquisition and Partnerships
COLTENE Growth – Acquisition • Focus – Complementary product line – Growing segments of dental market – Specific know-how & technology – Traditional and emerging markets – Value accretive 41 COLTENE Growth – Partnerships • Existing distribution network – Enhanced incentive program based on market sh
Slide 22: Growth – Geographical Expansion
COLTENE Growth – Geographical Expansion • Focus on Emerging Markets – Above average growth potential – China: COLTENE subsidiary in place today – India: subsidiary in place by end of 2008 – Brazil/Russia: active expansion activities – Evaluation of local filling and packaging • New subsidiaries plan
Slide 23: Sales Performance
COLTENE Sales Performance Latin America / Far East / Russia 24'000'000 23'000'000 22'000'000 21'000'000 20'000'000 19'000'000 18'000'000 17'000'000 2006 2007 2008 45 COLTENE Agenda – Key Headlines • Focus on Dental Business • Strengthened Management capacity • Today’s product offering • Dental marke
Slide 24: COLTENE Production sites today
COLTENE COLTENE Production sites today USA Germany Switzerland Hungary 47 COLTENE Optimal Utilization of Capacity • COLTENE has state of the art manufacturing environment • Production sites in Europe and US have capacity to cope with planned growth • Continuous improvement of margins shown during la
Slide 25: Dental Key Success Factors
COLTENE Agenda – Key Headlines • Focus on Dental Business • Strengthened Management capacity • Today’s product offering • Dental market and growth opportunities • COLTENE growth factors • COLTENE production sites • COLTENE dental success factors 49 COLTENE Dental Key Success Factors • Fortify brand
Slide 26: Swiss Symposium on Esthetic Dentistry; Currency development
COLTENE 4th Swiss Symposium on Esthetic Dentistry Stravinsky Auditorium - Montreux May 15th - 17th 2008 51 COLTENE Currency development 52
Slide 27: New COLTENE Outlook 2008; Q&A
COLTENE New COLTENE Outlook 2008 Assumptions: • Dental market consumables sales growth ≥ 3.5% • Forex rate: USD / CHF = 1.10 • Forex rate: EUR / CHF = 1.60 Indications: • COLTENE Sales CHFm 174 • COLTENE EBIT CHFm 29 (16.7%) Sales growth rates without forex impact 7.5% 53 COLTENE Thank you very much