Coltene Holding Ag · SIX:CLTN
Coltene — FY2008 Earnings Presentation
21 slides from Coltene's earnings presentation, Mar 18, 2009
Slide 1: Full year results – 2008, Media and analyst conference
Full year results – 2008 Media and analyst conference March 18, 2009 1 Safe Harbour Statement Before we may start with the presentations, we need to remind you that the information made available in this conference call may include forward-looking statements that reflect the intentions, beliefs or c
Slide 2: Speakers and Content
Speakers Andreas Meldau, Chief Executive Officer • Management Analysis • Strategy Update Dr. Hans Grüter, Chief Financial Officer • Financial Results FY 2008 3 Content 1. COLTENE – Competitive Advantages 2. Corporate Strategy 3. Products and Geographical Expansion 4. Financials 5. Outlook 6. Q&A 4
Slide 3: Competitive Advantages and Highlights 2008
COLTENE Competitive Advantages In the market place • Company clearly focused on dental consumables business • High innovation pace • Expanding global presence • CAGR above market growth In terms of financial stamina • Business model generating good cash flow • Strong balance sheet – Positive net cas
Slide 4: Board and Management; COLTENE Locations
Board and Management Board of Directors COLTENE Holding AG* Executive Management Andreas Meldau, CEO Dr. Hans Grüter, CFO Werner Mannschedel Eric Schriver General Manager EMEA General Manager NA Michael Nordahl Stephan Lampl GM Emerging Markets VP Global Marketing * Chairman: Nick Huber Members: Rob
Slide 5: Net Sales by Products and Geographic Regions 2008
Net Sales by Products 2008 9% 4% 21% Restoration 8% Impression Endodontics Hygiene/Surgical 8% Units/Acc. Rotary 20% Laboratory 11% Miscellaneous 19% 9 Net Sales by Geographic Regions 2008 1% 2% Switzerland 7% 5% 17% Germany, Austria Great Britain, Ireland 2% France Other Europe 6% Russia and CIS Mi
Slide 6: Attractive Global Dental Market
Content 1. COLTENE – Competitive Advantages 2. Corporate Strategy 3. Products and Geographical Expansion 4. Financials 5. Outlook 6. Q&A 11 Attractive Global Dental Market Annual Growth Rate Focus COLTENE >90% of the business 10% 5% Dental Total Dental Market Consumables 3% CHF 23.9 bn CHF 14.4 bn ?
Slide 7: Positive Business Environment; Growth Drivers in a Challenging Economy
Positive Business Environment Continuous Fragmented Growth Competition Dental Market Recession Large Resistant End-User Base 13 Growth Drivers in a Challenging Economy • Increasing dental insurance coverage • Awareness of dependency between oral health and overall medical health (well-being) • Highe
Slide 8: Base for COLTENE Growth Strategy
Base for COLTENE Growth Strategy Product Innovation Geographical Acquisitions Expansion Partnerships 15 Content 1. COLTENE – Competitive Advantages 2. Corporate Strategy 3. Products and Geographical Expansion 4. Financials 5. Outlook 6. Q&A 16
Slide 9: Comprehensive Product Range; Achievements in 2008
Comprehensive Product Range Healthy Esthetics Tooth Tooth Tooth Saving Loss Prophylaxis / Hygiene Orthodontics Restoration/ Adhesive Prostethics Implantation Endodontics 17 Products: Achievements in 2008 (1) • Rotary instruments business increased by >30% – With CEI integration: complete range of pr
Slide 10: Products: Achievements (2); Key Product Successes 2008
Products: Achievements (2) Successful product launches such as • New resin cement / core build-up: ParaCore Automix • Affinis impression material for implants in HY2 2008 à will further leverage A-Silicone business à range of COLTENE products matching implantology procedures • Cool Temp temporary ma
Slide 11: Growth: Geographical Expansion; Traditional Markets
Growth: Geographical Expansion • Focus on Emerging Markets – China: COLTENE subsidiary successfully started • In 2008 net sales doubled – now close to CHF 2 m • Organization will grow according to business plan – India: COLTENE subsidiary successfully started • In 2008 double-digit sales growth • Ex
Slide 12: Growth – Acquisition / Partnerships
Growth – Acquisition / Partnerships • Ongoing: active and diligent process • Acquisition projects must support – Core competencies and market approach – Opportunities in new technologies – Geographical expansion – Financial situation • New partnerships and continuous improvement – In new sales areas
Slide 13: Financial Result 2008 Overview
Financial Result 2008 Overview COLTENE • Net sales target for Q4 missed slightly à benefit from volume increase did not happen • Solid 15% EBIT margin, down by 0.3%-age points • Cash flow from operation 11.1% of net sales, up 1.0%-age point • Strong balance sheet MEDICAL • Presented as discontinued
Slide 14: Profit & Loss Statement Re-presented 2007
Profit & Loss Statement Dental Medical Other Medisize COLTENE Re-presented 2007 (TCHF) Group Group Net Sales 168'110 106'122 1 274'233 168'110 Raw materials 46'859 41'859 1 88'719 46'859 Personnel expenses 54'163 33'978 2'008 90'149 56'171 Other expenses 35'668 15'538 -675 50'531 34'993 Depreciation
Slide 15: Profit from discontinued operation; Cash Flow
Profit from discontinued operation (TCHF) 2008 Gain on sale of Medical business 28'969 Profit Medical business January 1 to April 30, 2008 1'419 Total profit from discontinued operations 30'388 Net cash inflow and outflow (TCHF) Net cash inflow from sale 93'482 Dividend 2008, nominal value reduction
Slide 16: Balance Sheets and Changes of Equity
Balance Sheets (TCHF) 31.12.07 31.12.08 Cash & cash equivalents 13'367 11'121 Receivables 57'755 43'090 Inventory 49'846 32'294 Property, plant & equipment 57'596 31'118 Financial, intangible & tax assets 69'004 43'849 Total assets 247'568 161'472 Payables & short term liabilities 29'186 39'543 Bank
Slide 17: Dividend distribution proposal
Dividend distribution proposal (TCHF) 2007 2008 Net profit carried forward from previous year 520 0 Profit of the year 9'300 79'264 Share repurchase 0 -49'200 Available net profit 9'821 30'065 Out of statutory reserves 10'303 Dividend proposal of CHF 4.30 per share -20'124 -18'142 To be carried forw
Slide 18: New Initiatives in 2009
New Initiatives in 2009 (1) • COLTENE will focus on an own setup in Brazil and / or other LAM markets – Strong emphasis now put on this geography (follow. China / India) – Different options are being evaluated: result expected in 2009 • Private Label focus and initiative – This segment of the market
Slide 19: Outlook 2009
Outlook 2009 (1) • Challenging year ahead – Q4 showed negative growth in instruments and equipment sales (infrastructure) – Consumables with uncertain growth – especially Q1 & HY1 2009 will be a very difficult period for dental consumer business à question is: how will market trend of 2008 year- end
Slide 20: COLTENE Outlook 2009
COLTENE Outlook 2009 Assumptions: • With the given market circumstances • Forex rate: USD / CHF = 1.18 • Forex rate: EUR / CHF = 1.53 Indications: • COLTENE Sales CHF 166 m • COLTENE EBIT CHF 25 m (15%) 39 Content 1. COLTENE – Competitive Advantages 2. Corporate Strategy 3. Products and Geographical
Slide 21: Thank you very much for your attention! Q&A
Thank you very much for your attention! Q&A 41