Straumann Holding Ag · SIX:STMN
Straumann — H1 2005 Earnings Presentation
24 slides from Straumann's earnings presentation, Aug 12, 2005
Slide 1: First-Half Results 2005
First-Half Results 2005 Analyst and Media Conference Basel, 12 August 2005 Gilbert Achermann CEO
Slide 2: Disclaimer
Disclaimer This presentation contains certain “forward-looking statements”, which can be identified by use of terminology such as “expect”, “expectation”, “intend”, “continue”, “achieve”, “maintain”, “improve”, “foresee”, “product introductions”, “outlook”, “forecast”, or similar wording. Such forwa
Slide 3: Agenda
Agenda • Highlights • Financials • Product update • Outlook • Q&A 3
Slide 4: Highlights – Financial
Highlights – Financial • Solid sales growth of 19% in local currencies (18% in CHF) on top of exceptionally strong first half in 2004 • Operating and net income rise 20% and 25% respectively • Net working capital further reduced to 5.7% of sales; return on equity at 40.5% • Close to 100 new jobs cre
Slide 5: Highlights – Regional
Highlights – Regional Regional contribution to H1 2005 sales Regional sales growth H1 2005 in l.c. (Group total: CHF 256m) (Group total: 19%) 59% North America (CHF 61m) 24% 19% 17% 18% Europe (CHF 164m) 10% 64% Asia / Pacific 2% (CHF 26m) ROW Europe North Asia / ROW (CHF 6m) America Pacific 5
Slide 6: Highlights – Markets
Highlights – Markets • Europe – Demanding baseline in H1 2004 – Acceleration of sales growth in Q2, reflecting pick-up in Germany – New Italian subsidiary lifts regional growth • North America – Exceptionally high baseline (+43% sales growth) in H1 2004 – Revenues driven by implant sales • Asia / Pa
Slide 7: Highlights – Strategic
Highlights – Strategic • Distribution and geographical expansion – North American headquarters opened; initial production started – Italian distributor integrated – Australian subsidiary established • Product launches and selective introductions – Straumann CARES – Straumann Bone Ceramic – SLActive
Slide 8: Agenda
Agenda • Highlights • Financials • Product update • Outlook • Q&A 8
Slide 9: Financials
Financials Martin Gertsch CFO 9
Slide 10: Sales growth driven by organic expansion
Sales growth driven by organic expansion Contribution to H1 Group sales growth in % (Group sales: CHF 256m) 5 19 -1 18 14 Organic Acquisition Growth Currency Growth growth in local in CHF currencies 10
Slide 11: Further increase in profitability
Further increase in profitability CHF million FY 2004 H1 2004 H1 2005 Net sales 420.3 217.2 256.0 Cost of goods sold 77.9 38.2 48.7 in % of net sales 18.5 17.6 19.0 Gross profit 342.4 179.0 207.3 Gross margin in % 81.5 82.4 81.0 Other income 3.9 2.9 0.7 Operating costs 218.6 114.7 127.6 in % of net
Slide 12: Continued improvement in net working capital
Continued improvement in net working capital CHF million FY 2004 H1 2004 H1 2005 Net working capital 17.0 34.9 41.6 in % of net sales 5.8 7.7 5.7 Inventories 35.5 32.5 44.4 in % of net sales 8.4 7.7 7.8 Inventory days 162 158 148 Receivables 48.8 57.7 73.3 in % of net sales 10.9 11.5 11.9 Receivable
Slide 13: High level of investment for future growth
High level of investment for future growth Cash-flow development H1 2005 in CHF million 61.5 107.1 -97.1 1.9 36.6 -36.9 Cash Operating Investing Financing Currency Cash 1 Jan 05 activities activities activities impact 30 Jun 05 13
Slide 14: Further value generation
Further value generation Return on equity (ROE) Return on capital employed (ROCE) 50.2% 47.9% 41.7% 40.5% 43.8% 35.4% FY 2004 H1 2004 H1 2005 FY 2004 H1 2004 H1 2005 Return on assets (ROA) Economic profit (in CHF m) 80.1 31.1% 31.2% 51.5 26.6% 43.1 FY 2004 H1 2004 H1 2005 FY 2004 H1 2004 H1 2005 14
Slide 15: Agenda
Agenda • Highlights • Financials • Product update • Outlook • Q&A 15
Slide 16: Product Update
Product Update Sandro Matter Executive Vice President Products 16
Slide 17: CARES (Computer-Aided REstoration Service)
CARES (Computer-Aided REstoration Service) Dentist Dental lab Straumann Impression 3D scanning Computer-aided Ordering Manufacturing design Shipping Finishing 17
Slide 18: A new individualized abutment service
CARES A new individualized abutment service • Very positive reception • Roll-out started in Germany, Switzerland and Austria • Other markets to follow 18
Slide 19: SLActive – Taking surface technology a step further
SLActive – Taking surface technology a step further • Pre-clinical results demonstrate - Faster osseointegration - 60% more bone 2 weeks after placement - Reduced healing times from 6-8 to 3-4 weeks - Higher predictability and reduced risk with earlier loading compared with SLA, the current gold sta
Slide 20: Straumann Bone Ceramic & Membrane
Straumann Bone Ceramic & Membrane Straumann Bone Ceramic • Controlled market introduction (started Q4 2004) • Product surveillance ongoing (10 countries, 600 clinicians); very positive initial feedback • One clinical study running; additional 5 to start in near future • Roll-out with membrane in 200
Slide 21: Agenda
Agenda • Highlights • Financials • Product update • Outlook • Q&A 21
Slide 22: Outlook: Guidance for full-year 2005 confirmed
Outlook: Guidance for full-year 2005 confirmed With strategic achievements and first-half developments fully in line with the company’s forecasts, the Group confirms its expectation for 2005 sales to grow in the region of 20%, with operating and net profit margins expanding by about one percentage p
Slide 23: Important dates
Important dates Key Keyreporting reportingdates dates • 20 October 2005 Q3 and 9M sales 2005 • 16 February 2006 Full-year results 2005 • 24 March 2006 Annual General Meeting • 26 April 2006 Q1 sales 2006 • 10 August 2006 Q2 and H1 results 2006 • 25 October 2006 Q3 and 9M sales 2006 23
Slide 24: Questions & Answers
Z straumann Questions & Answers 24