Straumann Holding Ag · SIX:STMN
Straumann — H1 2014 Earnings Presentation
21 slides from Straumann's earnings presentation, Aug 26, 2014
Slide 1: 2014 First-half results
2014 First-half results Analysts’ & Media Conference Basel, 26 August 2014 1 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 a
Slide 2: First-half highlights
First-half highlights Marco Gadola, CEO Strong financial and strategic progress REVENUE BEST PERFORMERS GROSS MARGIN CHF 359m APAC & ROW 78.9% H1: +5% (organic) +1.6% points (excl. FX) driven by Q2: +3% (organic) Double-digit growth in both regions strong implant volumes, optimized plant utilization
Slide 3: Fifth consecutive quarter of above-market growth
Fifth consecutive quarter of above-market growth 10% Rightsizing and Q2: revenue of 8% re-organisation CHF 179mn (+3% in l.c.) measures 6% 4% 2014 2% guidance 0% -2% -4% -6% -8% Easter effect -10% -12% 1 Market for tooth replacement & restoration (leading implant companies) Straumann l.c. growth * S
Slide 4: Business and regional review
Business and regional review Thomas Dressendörfer, CFO Margin expansion at all levels H1 2013 Change in CHF million H1 2014 (rounded) excl. excl. report ed report ed excl. except ionals except ionals reported exceptionals and FX and FX Revenue 359.1 354.8 343.4 YoY change 1.2% (1.9%) (1.7%) 4.6% Gro
Slide 5: Higher implant sales and efficiency gains lift gross profit margin
Higher implant sales and efficiency gains lift gross profit margin In % of revenue, rounded +160 bps 1.2% (0.4%) 0.8% (0.5%) 78.9% 77.8% 77.3% 1 H1 gross profit FX effect Adj. H1 gross Price / volume / Inventory change COGS (higher H1 gross profit margin profit margin mix volumes) margin 2013 2014 1
Slide 6: Higher profitability drives cash flow
Higher profitability drives cash flow In CHF million, rounded Increase mainly due to severance 27.0 (24.7) payment accruals in H1 2013 0.4 (3.0) 7.2 (4.0) +4 days: ‘Days of sales’ +8 days: ‘Days of supplies’ 34.7 37.6 FCF margin FCF margin 9.8% 10.5% Free cash flow Improved gross Lower cash- Higher
Slide 7: Good performance in N. America; Europe reflects early Easter
Good performance in N. America; Europe reflects early Easter in 2013 Revenue change (organic) 4.1% Softer Q2 reflects Easter effect mainly in Central Europe Europe 0.2% 56% (1.4%) (1.5%) Encouraging growth in France, UK (3.4%) and Iberia (7.7%) 55% Soft Q2 in Turkish and Russian Q1 2013 Q2 201
Slide 8: Our key strategic priorities to address changed market dynamics
Strong implant volume growth as the main driver Implants Restorative Regeneratives 15 Our key strategic priorities to address changed market dynamics Marco Gadola, CEO 8
Slide 9: Tracking the progress of our key priorities
Tracking the progress of our key priorities Cost reduction measures Lean, high performance New organization with increased organization customer focus Continuing cost discipline Immediate edentulous solutions Address changed New tapered implant Customer- and market-driven Ceramic implant marke
Slide 10: New prosthetics and Bone Level Tapered implant enhance immediate edentulous solutions
New prosthetics and Bone Level Tapered implant enhance immediate edentulous solutions CADCAM sub-structure embedded in fixed full-arch prosthesis New range of screw-retained implant abutments offering increased flexibility New Bone Level Tapered implants 19 New generation BLT implant to be launched
Slide 11: Charitable event using Straumann fixed edentulous immediate solutions
Charitable event using Straumann fixed edentulous immediate solutions attracts attention 3-day charitable event at Afopi dental campus near Paris involving 14 patients and 60 dental professionals Patients received total immediate dental restorations (both jaws, with 6-8 Straumann BLT implants pe
Slide 12: Straumann's comprehensive implant portfolio
Straumann’s comprehensive implant portfolio Q1 20152 4mm short PURE Tissue Level Bone Level Bone Level Tapered implant Monotype SLA SLActive SLActive SLA SLActive SLA SLActive ZLA Titanium1 Roxolid Ceramic 23 Innovative prosthetic anchorage Straumann acquires 12% of RODO Med
Slide 13: Increasing share in fast-growing geographies & segments
Collaboration with botiss – update Agreement signed in Q2 with Europe’s second largest supplier of oral tissue regeneration products Exclusive distribution rights for extensive range of botiss products in most countries Botiss co-distributes Emdogain® in Germany and takes over distribution in
Slide 14: New hybrid multi-distributor model in China
New hybrid multi-distributor model in China Growth of private hospital and practice segment expected to exceed public hospital segment, which Straumann leads Agreement with former distributor Beijing Finest Medical Instrument Co. Ltd. to take over certain assets fixed considerations of CHF 9mn
Slide 15: Targeting unexploited growth markets
Targeting unexploited growth markets Multi-brand strategy to address premium and value segments Germany Spain (30%) Brazil (49%) Germany (51%) Canada (44%) Germany (100%) Taiwan Korea USA (12.5%) Common platform for technology & production Premium Value 30 15
Slide 16: Introducing a new distribution platform
Introducing a new distribution platform… Instradent to drive and manage distribution and internationalization of Sraumann’s value business Small dedicated team in Basel building up business in various countries, which will sell specific value brands, supported by common platform for technology a
Slide 17: Building a global presence in the value segment
Building a global presence in the value segment Europe1 NAM LATAM APAC Implants Implant systems Standard prosthetics CADCAM Abutments Abutments for 3rd party implants Bars/bridges for 3rd party implants 33 Outlook 17
Slide 18: Outlook 2014 unchanged
Outlook 2014 unchanged Barring unforeseen circumstances Straumann expects the global implant market to develop positively in 2014 and its revenue to grow in the low-single-digit range (l.c.). Group will continue to invest in growth markets and its non-premium offering. Despite this, and thanks t
Slide 19: Questions & Answers / Calendar of upcoming events
Questions & Answers 37 Calendar of upcoming events 2014 26 August 2014 First‐half conference Basel HQ 27 August Investor meetings Zurich 04 September Goldman Sachs Healthcare conference London 05 September Investor meetings London 15 September Investor meetings Frankfurt 23 October Third‐quarter res
Slide 20: Straumann's currency exposure
Straumann’s currency exposure Revenue breakdown 2013 Other Average exchange rates (rounded) FX sensitivity (+/- 10%) on... 20% FY 2013 YTD 2014 Revenue EBIT EUR EURCHF 1.23 1.22 +/- 25 million +/- 15 million 40% USDCHF 0.93 0.90 +/- 17 million +/- 7 million USD / CAD / AUD JPYCHF 0.95 0.88 +/- 4 mil
Slide 21: International Headquarters
International Headquarters Institut Straumann AG Peter Merian-Weg 12 CH-4002 Basel, Switzerland Phone +41(0)61 965 11 11 Fax +41(0)61 965 10 01 www.straumann.com 21