Straumann Holding Ag · SIX:STMN
Straumann — H1 2010 Earnings Presentation
18 slides from Straumann's earnings presentation, Aug 19, 2010
Slide 1: 2010 first-half results presentation
2010 first-half results presentation Analysts’ & Media Conference Basel, 19 August 2010 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”, “
Slide 2: Agenda / First-half highlights
Agenda Highlights Business performance Products and milestones Outlook Questions & answers STRAUMANN 19 August 2010 Copyright Straumann. All rights reserved. 3 First-half highlights Beat Spalinger President & CEO 2
Slide 3: Challenging environment; Straumann well in line with forecast
Challenging environment; signs of market improvement Patient traffic at dental practices is still below pre-recession levels – as is the number of complex treatments being performed Latest figures suggest that the tooth replacement market is improving from last year’s unprecedented decline Still pre
Slide 4: Business performance
Business performance Volume growth and efficiency gains more than offset currency headwind in CHF million H1 2009 H1 2010 Margin Change Reported FX adjusted Reported %-points FX adjusted Net Revenue 384.1 376.6 392.4 Growth in l.c. % (3.3%) 4.2% Gross profit 306.5 299.2 314.6 Gross profit margin 79.
Slide 5: Growth rises in second quarter; all regions report growth
Growth rises in second quarter H1 2010 net revenue growth Organic growth1 by quarter (l.c.) Total Group: CHF 392m 20% 13% 9% 4.2% -2.0% 5% 4% 2.2% 3% 2% -1% -1% Net revenue in Currency effect Net revenue in Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 l.c. CHF -8% 2008 2009 2010 1 ’Organic growth’ excludes FX effe
Slide 6: Europe progresses gradually; North America continues to grow well
Europe progresses gradually 4% growth in Q2 achieved in challenging market environment Sales in Germany surpass previous year; strong growth in France, the UK and Iberia; slight contraction in Italy Roxolid well received; guided surgery and intra- oral scanner introduced (in CHF million) Q2 09 Q2 10
Slide 7: Positive trends in APAC and RoW; gross margin surpasses 80%
Positive trends in APAC and RoW Dynamic growth in China and positive developments in Korea more than compensate for sluggish Japanese market Strong orders from Asian distributors following inventory reductions through the recession RoW powered by good growth in Brazil and Mexico (in CHF million) Q2
Slide 8: Further investments in R&D and M&S; currency effects constrain net profit
Further investments in R&D and M&S to position Straumann well for the coming years in CHF million +15.4 -2.8 -2.4 -5.2 93.8 98.8 88.6 EBIT margin EBIT margin EBIT margin CHF 24.4% CHF 23.5% CHF 25.2% Reported FX effect FX adjusted Gross profit R&D SG&A, 'other Reported EBIT H1'09 EBIT H1'09 income'
Slide 9: Free-cash flow margin >20%
Free-cash flow margin >20% despite higher trade receivables (absolute) in CHF million 4.1 -22.2 6.1 0.5 91.8 H1 2009 H1 2010 80.3 Inventory: Days of supply 190 147 FCF margin Receivables: Days of FCF margin 23.9% sales outstanding 55 53 20.5% Free Cash Flow EBITDA Working capital Capex Interest/tax
Slide 10: Clinical excellence; Roxolid success story continues
Clinical excellence – proven long-term reliability 10-year data on Straumann SLA implants from first randomized controlled clinical trial Further 10-year data from other studies to be presented soon Commitment to fostering independent research - André Schroeder Research Prize - IADR/Straumann Award
Slide 11: Advancing in digital dentistry: intra-oral scanning, guided surgery and CADCAM
Advancing in digital dentistry: intra-oral scanning New software connecting iTero with Straumann CADCAM launched - Systems/organization for built up for this new business area iTero intra-oral scanner roll-out in Europe - Obviates less precise, unpleasant conventional impression taking - Contributio
Slide 12: The differentiating key; complement to regenerative range
The differentiating key Seamless connectivity through integrated computer-based technologies STRAUMANN 19 August 2010 Copyright Straumann. All rights reserved. 23 Complement to regenerative range Initiatives to strengthen sales team begin to pay off Strong interest in Straumann’s innovative PEG memb
Slide 13: Outlook
New skills added in specific areas 100 new jobs created in H1 2010 mainly in Marketing & Sales Production staff constant thanks to focused implementation of reduced working hours STRAUMANN 19 August 2010 Copyright Straumann. All rights reserved. 25 Outlook 13
Slide 14: Markets expected to recover slowly; continuing currency headwind
Unchanged view1 – markets expected to recover slowly Global dental implant market CADCAM market2 Global regenerative market3 (size 2009: ~3.4 billion CHF) (size 2009: ~1.5 billion CHF) (size 2009: ~0.5 billion CHF) CAGR 2009-12 CAGR 2009-12 CAGR 2009-12 5-7% 15-17% 7-9% Source: MRG 2009, iData and S
Slide 15: Outlook 2010 / Questions & Answers
Outlook 2010 (barring unforeseen circumstances) With continuing uncertainty in the global economy, Straumann continues to assume that its market will grow in the low-single-digit range in 2010. Based on its clinically-proven innovative products, organizational strength, market presence, and differen
Slide 16: Appendix: Calendar of upcoming events
Calendar of upcoming events 23 Aug 2010 Roadshow1 Zurich 25-27 Aug 2010 Roadshow Boston, Chicago and NYC 01 Sep 2010 Roadshow Brussels 02 Sep 2010 Roadshow Paris 03 Sep 2010 Roadshow Geneva 07-08 Sep 2010 Goldman Sachs Medtech conf. London 28 Oct 2010 Third quarter results Basel (Audio webcast) Deta
Slide 17: Net revenue growth First-half 2010; transactional currency exposure
Net revenue growth – First-half 2010 CHF million Q1 2009 Q2 2009 Q1 2010 Q2 2010 Europe 125.2 119.0 125.0 116.6 growth in % CHF (4.8) (14.1) (0.2) (2.0) growth in % l.c. 3.1 (7.9) 1.4 3.9 North America 40.2 40.1 41.6 43.6 growth in % CHF 3.1 (0.5) 3.6 8.9 growth in % l.c. 0.7 (4.4) 8.4 7.7 Asia / Pa
Slide 18: Your investor relations & media contacts
Your investor relations & media contacts Fabian Hildbrand Corporate Investor Relations Phone +41 (0)61 965 13 27 Mobile +41 (0)79 392 80 32 Email [email protected] Mark Hill Thomas Konrad Corporate Communications Phone +41 (0)61 965 13 21 Phone +41 (0)61 965 15 46 Email mark.hill@straum