Coltene Holding Ag · SIX:CLTN
Coltene — FY2015 Earnings Presentation
32 slides from Coltene's earnings presentation, Mar 3, 2016
Slide 1: Financial Year 2015 Media and Financial Analysts Meeting
Financial Year 2015 Media and Financial Analysts Meeting Zurich, March 3, 2016
Slide 2: Agenda
Agenda Highlights 2015 Martin Schaufelberger, CEO Financials 2015 Gerhard Mahrle, CFO Global Setup Martin Schaufelberger, CEO Outlook Martin Schaufelberger, CEO 2 2015 Results, March 3, 2016
Slide 3: Achievements 2015
Achievements 2015 Solid operating results in a challenging environment • Sales of CHF 154.5 million, down 4.8%, 1.1% in LC Sales growth in Asia, particularly in China Sales decrease in CIS region and Brazil • Operating profit (EBIT) of CHF 20.4 million, down 9.0% EBIT margin held at solid, sus
Slide 4: Market Environment
Market Environment Increased competition and pricing pressure • Exchange rates strongly impacted results Exchange rate translation losses mainly due to devaluation of the Euro and the Brazilian real against the Swiss franc only partly compensated by the stronger US dollar Competitive disadvantag
Slide 5: Management Actions 2015
Management Actions 2015 Cost reductions and strategic update • Review of implementation of strategy goals 2012-2015 and definition of strategic goals 2016-2018 New growth initiatives based on global setup Focus on “Sales & Marketing”, “Innovation” and “Partnerships” • Adaption of expenses to new
Slide 6: COLTENE Group Management
COLTENE Group Management Team expanded • COLTENE Group Management expanded and strengthened to better support the Group’s global setup • As per Oct 1, 2015, Christophe Loretan joined the Group Management as Vice President Sales • Beside Martin Schaufelberger, CEO, and Gerhard Mahrle, CFO, the Group
Slide 7: COLTENE Group Management
COLTENE Group Management Group CEO M. Schaufelberger Vice President Vice President Vice President Group CFO Sales Marketing R&D Gerhard Mahrle Christophe Loretan Werner Barth W. Mannschedel COLTENE Group Management aligned to support strategy 7 2015 Results, March 3, 2016
Slide 8: Breakdown by Product Groups in CHF
Breakdown by Product Groups in CHF Endodontics now second-largest product group Comments • Continued sales growth in Endodontics by 3.7% to CHF 31.7 million • Restoration sales decreased by 6.3% to CHF 39.2 million due to severe competitive pressure • Prosthetics sales down by 12.4% to CHF 31.0 mill
Slide 9: Regional Breakdown
Regional Breakdown Heterogeneous emerging markets Comments • Strong growth in Asia of 8.2% headed by future growth markets China (16.3%) and India (6.2%) in local currencies (LC) • North America with sales increase of 5.6% thanks to help from the USD (+0.5% in LC). Sell-out volumes grew 4.0%. • Sale
Slide 10: New Products and Innovation
New Products and Innovation Development of new products and market introduction in 2015/2016: • In 2015: BRILLIANT EverGlow, GuttaFlow Bioseal, HyFlex EDM, AFFINIS Black edition • In 2016: BRILLIANT Crios composite blocs for chairside milling machines – Official material partner to Sirona’s CEREC CA
Slide 11: Proposals to AGM
Proposals to AGM • Jürgen Rauch proposed as additional member of the Board of Directors • Dividend of CHF 2.20 per share Payout ratio: 70% Dividend yield based on year-end share price of CHF 60.90: 3.6% • Compensation of the Board of Directors and Executive Management Approval of maximum aggre
Slide 12: Agenda: Financials 2015
Agenda Financials 2015 Gerhard Mahrle, CFO 12 20152015 Results, March Results, 3, 2016 March 3, 2016
Slide 13: Financial Summary
Financial Summary Profitability growth stopped after three consecutive years • Net sales of CHF 154.5 million (2014: CHF 162.3 million), minus 4.8% or 1.1% in LC • EBIT margin decreased to 13.2% (2014: 13.8%) EBIT of CHF 20.4 million (2014: CHF 22.4 million), minus 9.0% • Net profit for the period
Slide 14: Income Statement
Income Statement Solid operating results Comments • Net sales decrease 4.8%; in CHF million 2015 % 2014 % % YoY in LC -1.1% Net Sales 154.5 100.0% 162.3 100.0% -4.8% • Negative FX impact of CHF 6.0 million on net sales Material expenses* -45.5 -29.4% -48.2 -29.7% -5.6% • Loss of sales in Brazil and
Slide 15: Operating Result in CHF million
Operating Result Temporary setback on the path towards the 15% EBIT margin target Comments 23.0 22.4 -5.1 • Sales decline impacts gross 22.0 margin with CHF -5.5 million; improvement of gross margin 21.0 +3.3 -0.2 CHF 0.4 million 20.4 • OPEX savings: CHF 3.3 million in CHF million 20.0 • Slightly hi
Slide 16: Development of Profit for the Period
Development of Profit for the Period Net profit decreased mainly due to exchange rates impact 17.0 Comments 16.0 15.6 -5.1 • Negative impact from financial result on net profit: primarily 15.0 caused by currency losses at 14.0 +3.3 -0.2 Vigodent in CHF million -0.9 +0.6 13.3 • Lower absolute tax (CH
Slide 17: Balance Sheet
Balance Sheet Solid balance sheet: high equity and net cash position 31.12.15 31.12.14 YoY Comments in CHF million Cash & cash equivalents 14.6 18.3 -3.7 • Cash and cash equivalents Receivables 33.1 38.2 -5.1 amount to CHF 14.6 million Inventory 29.9 29.6 0.3 • COLTENE is debt-free (net cash Propert
Slide 18: Cash Flow Statement
Cash Flow Statement Free cash flow reflects lower net profit and higher CAPEX Cash Flow (in CHF million) 2015 2014 % YoY Comments Net profit 13.3 15.6 -14.7% • Cash flow from operations Depreciation and amortization 5.5 5.3 3.8% decreased by CHF 1.7 million Other non-cash items 6.7 5.8 15.5% mainly
Slide 19: Share Price Development
Share Price Development 1.1.2013 – 1.2.2016 CHF million 31.12.15 31.12.14 D Market Capitalization 256.9 265.8 -3.3% Consolidated Equity 101.6 104.1 -2.4% 19 2015 Results, March 3, 2016
Slide 20: Agenda: Global Setup and Strategy 2016-2018
Agenda Global Setup and Strategy 2016-2018 Martin Schaufelberger, CEO 20 2015 Results, March 3, 2016
Slide 21: Global Setup
Global Global Setup Number of Group companies 16 Production sites 5 Workforce (FTE) 888 Europe Sales specialists 206 Number of Group companies 10 North America Production sites 2 Workforce (FTE) 377 Number of Group companies 2 Sales specialists 68 Production sites 1 Workforce (FTE) 314 Asia Sales sp
Slide 22: Strategic Goals 2016-2018
Strategic Goals 2016-2018 Sales & Marketing Innovation Partnerships More efficient sales activities Global implementation of a consistent Systematic market monitoring thanks to better planning and innovation management process Strengthen existing modern tools Definition and regular review and partne
Slide 23: Agenda: Outlook
Agenda Outlook Martin Schaufelberger, CEO 23 2015 Results, 2015 Results,March March3, 03, 20162016
Slide 24: Outlook: Exchange rates and markets
Outlook Exchange rates and markets • Return to a general market growth expected – Continuing growth in Asia – Midterm growth in North America by increasing sell-in volumes – Slight market recovery in Brazil and other markets in Latin America – No further deterioration in CIS region • Global setup re
Slide 25: Outlook: Envisaging new sustainable growth
Outlook Envisaging new sustainable growth • Finalization of implementation of cost saving measures for securing competitive position • New growth initiatives defined within strategic goals 2016-2018 • Focus on strengthening and aligning international sales organization • Rounding off product portfol
Slide 26: Thank you for your Attention!
Thank you for your Attention! 26 2015 Results, March 3, 2016
Slide 27: 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 27 2015 Results, March 3, 2016
Slide 28: Appendix
Agenda Appendix 28 2015 Results, March 3, 2016
Slide 29: COLTENE at a Glance
COLTENE at a Glance Global dental specialist Swiss based small cap with Highly recognized worldwide sales through dental global brands for chair-side distributors and about 200 sales dental consumables representatives Development and Strong emerging market operations in Europe, position with 29% of
Slide 30: The Brands you Trust
The Brands you Trust The percentage numbers indicate the portion of total net sales Restoration 25% Endodontics 21% Prosthetics 20% Treatment Auxiliaries 13% Rotary Instruments 8% Infection Control 7% 30 2015 Results, March 3, 2016
Slide 31: Key Figures COLTENE Group (2013-2015)
Key Figures COLTENE Group (2013-2015) Half year steps in CHF million (except dividend Information in CHF) Net sales EBIT EBIT margin 90.0 16.0 20.0% 85.0 12.0 15.0% in CHF million in CHF million 80.0 8.0 10.0% 75.0 4.0 5.0% 70.0 65.0 0.0 0.0% H1/13 H2/13 H1/14 H2/14 H1/15 H2/15 H1/13 H2/13 H1/14 H2/
Slide 32: Safe Harbour Statement
Safe Harbour Statement The information made available in this conference may include forward-looking statements that reflect intentions, beliefs or current expectations and projections of COLTENE Holding AG about the future results of operations, financial condition, liquidity, performance and simil