Coltene Holding Ag · SIX:CLTN
Coltene — H1 2018 Earnings Presentation
30 slides from Coltene's earnings presentation, Aug 24, 2018
Slide 1: Half-Year Results 2018 – Dynamic Growth
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN. Half-Year Results 2018 Media and Financial Analysts Conference Dynamic Growth Martin Schaufelberger – CEO COLTENE Holding AG Gerhard Mahrle – CFO COLTENE Holding AG Zurich – August 24, 2018 COLTENE – AN IN
Slide 2: Disclaimer and forward-looking statements
Disclaimer and forward-looking statements This presentation does neither constitute an offer to buy or to subscribe for securities of COLTENE Holding AG nor a prospectus within the meaning of applicable Swiss law (i.e. Art. 652a or Art. 1156 of the Swiss Code of Obligations or Art. 27 et seq. of the
Slide 3: Agenda
AGENDA Highlights H1 2018 Martin Schaufelberger CEO Financials H1 2018 Gerhard Mahrle CFO Update on SciCan/Micro-Mega Acquisition Martin Schaufelberger CEO, Gerhard Mahrle CFO Outlook Martin Schaufelberger CEO 3
Slide 4: COLTENE – premium dental solutions
COMPANY PORTRAIT COLTENE – premium dental solutions COLTENE develops, manufactures and markets COLTENE is a leading, innovative and premium consumables in the dental segments independent Company, operating internationally in of Restoration, Endodontics, Prosthetics, the dental industry focusing on s
Slide 5: H1 2018 Significant sales growth and over proportionate increase in profitability
H1 2018 Significant sales growth and HIGHLIGHTS over proportionate increase in profitability Dynamic growth clearly above general market Pleasing organic growth in the EMEA/Asian regions; slight contraction in the Americas SALES & Continued expansion of sales teams in core and emerging markets MARKE
Slide 6: Pleasing growth in EMEA and Asia regions
NET SALES BY REGION Pleasing growth in EMEA and Asia regions in CHF million H1 2016 H1 2017 H1 2018 Latin America 45 40 8.7% Asia 35 13.6% 30 EMEA +24.5% 25 H1 2018 46.7% 20 - 3.4% CHF 85.6 million 15 10 31.0% 5 +9.1% - 3.8% North 0 America EMEA North America Asia Latin America 6
Slide 7: Strong Treatment Auxiliaries, Restoration and Prosthetics
NET SALES BY PRODUCT GROUP Strong Treatment Auxiliaries, Restoration and Prosthetics in CHF million H1 2016 H1 2017 H1 2018 Other Infection 25 Control 5.0% Restoration 5.6% 20 Rotary 25.4% Instruments 8.6% 15 + 14.5% +12.8% +0.1% H1 2018 10 Treatment 14.5% CHF 85.6 million +24.4% Auxiliaries 5 +8.8%
Slide 8: Financials H1 2018
AGENDA Financials H1 2018 Gerhard Mahrle CFO
Slide 9: Increased profitability and firm balance sheet
FINANCIAL SUMMARY H1 2018 Increased profitability and firm balance sheet Net sales growth of 9.7% - clearly above average market growth of 2-3% 4.3% organic growth, 3.3% acquired growth, 2.2% positive currency effects Pleasing upswing in the Middle east, Africa and most of the European SALES countri
Slide 10: Overproportional increase in profitability
INCOME STATEMENT Overproportional increase in profitability Comments in CHF million H1 2018 % H1 2017 % % YoY Net sales increase 9.7%; sales from Net Sales 85.604 100.0% 78.013 100.0% 9.7% acquisitions CHF 2.6 million or 3.3% (Diatech and Kenda); positive FX impact Material expenses* -22.608 -26.4%
Slide 11: High Equity Ratio
BALANCE SHEET High Equity Ratio in CHF million 30.06.18 31.12.17 %YoY Comments Cash & cash equivalents 9.701 22.040 -55.9% Reduction of cash & cash equivalents in the amount of CHF 12.4 million mainly due to Receivables 37.265 40.483 -7.9% the dividend payment of CHF 12.7 million in Inventory 36.629
Slide 12: High investment in sustainable growth
CASH FLOW STATEMENT High investment in sustainable growth Comments in CHF million H1 2018 H1 2017 % YoY Net profit 6.921 6.029 14.8% Cash flow from operations practically unchanged at CHF 8.1 million. Higher Depreciation and amortization 2.890 2.796 3.4% tax payments and an increase in Other non cas
Slide 13: 5-year overview of the key figures in H1
FINANCIALS OVERVIEW 5-year overview of the key figures in H1 in CHF million Net Sales in CHF million EBIT EBIT Margin in % 90.0 12.0 11.3 15.0% 85.6 9.6 85.0 9.0 13.0% 78.0 7.4 13.2% 80.0 8.0 6.5 12.3% 76.0 75.6 11.9% 11.0% 75.0 73.3 9.8% 9.0% 70.0 4.0 8.8% 65.0 7.0% 60.0 0.0 5.0% H1 2014 H1 2015 H1
Slide 14: Update on SciCan/Micro-Mega Acquisition
AGENDA Update on SciCan/Micro-Mega Acquisition Martin Schaufelberger CEO Gerhard Mahrle CFO
Slide 15: SciCan portrait: Worldwide competence in the field of hygiene
SCICAN PORTRAIT Worldwide competence in the field of hygiene Specialized full-service provider of infection control products Specialization and sterilization solutions Business locations Canada, Switzerland and Germany Established 1957 Market leader in North America; full-range supplier of instrumen
Slide 16: Micro-Mega portrait: Specialist in endodontics
MICRO-MEGA PORTRAIT Specialist in endodontics Endodontic products with a focus on innovative root canal Specialization instruments and obturation materials Business locations Besançon, France Established 1905 Mainly Europe and North America; Markets active in 125 countries across the world Number of
Slide 17: Net Sales by region in H1 2018
TRANSACTION UPDATE Net Sales by region in H1 2018 SciCan + Micro- in million CHF COLTENE SciCan + Micro-Mega in million CHF COLTENE Group Mega 45 EMEA 40.0 46.7% 11.4 23.8% 40 North America 26.5 31.0% 32.7 68.4% 35 Latin America 7.5 8.7% - - 30 Asia 11.6 13.6% 3.7 7.8% 25 Total 85.6 100.0% 47.8 100.
Slide 18: Net sales by region H1 2018 – strong footprint
TRANSACTION Net sales by region H1 2018 – strong footprint UPDATE in EMEA & the US COLTENE SciCan + Micro-Mega North America North America EMEA EMEA Asia Asia Latin America Total H1 2018: CHF 85.6 million Total H1 2018: CHF 47.8 million (net sales in %) (net sales in %) 18
Slide 19: Net Sales by product group in H1 2018
TRANSACTION UPDATE Net Sales by product group in H1 2018 SciCan + Micro- in million CHF COLTENE SciCan + Micro-Mega in million CHF COLTENE Group Mega 45 Restoration 21.7 25.4% - - 40 Endodontics 17.0 19.9% 9.0 18.7% 35 30 Prosthetics 18.0 21.0% - - 25 Treatment Auxiliaries 12.4 14.5% - - 20 Rotary I
Slide 20: Net sales by product group H1 2018 – extension of core areas
TRANSACTION Net sales by product group H1 2018 – UPDATE extension of core areas infection control and Endodontics COLTENE SciCan + Micro-Mega Other Infection Control Endodontics 5.0% Restoration 5.6% 18.7% Rotary 25.4% Instruments 8.6% H1 2018 H1 2018 14.5% CHF 85.6 million CHF 47.8 m Treatment Auxi
Slide 21: Profit and loss statement H1 2018
TRANSACTION UPDATE Profit and loss statement H1 2018 in million CHF COLTENE Group SciCan + Micro-Mega Comments Net sales 85.6 100.0% 47.8 100.0% SciCan and Micro-Mega achieved net sales of about CAD 64 million (CHF 47.8 Gross margin 63.0 73.6% 25.3 52.9% million) in H1 2018. EBITDA 14.2 16.6% 6.3 13
Slide 22: Balance sheet June 30, 2018
TRANSACTION UPDATE Balance sheet June 30, 2018 in million CHF COLTENE Group SciCan + Micro-Mega Comments SciCan and Micro-Mega Cash and cash equivalent 9.7 5.9% 2.5 4.6% Reduction of cash & cash equivalents in the Current assets 83.6 51.1% 40.5 73.4% amount of CHF 4.5 million mainly due to the repay
Slide 23: Financing of the acquisition price
FINANCIALS Financing of the acquisition price ≈ CHF 200 million ≈ 3/4 equity (capital increase) ≈ 1/4 debt ≈ 2/3 consideration shares ≈ 1/3 rights offering (contribution in kind) Post transaction Arthur Zwingenberger, indirectly through Arno Holding, and Stefan Helsing (sellers) will hold 18.1% of t
Slide 24: Agenda of extraordinary General Meeting
TRANSACTION UPDATE Agenda of extraordinary General Meeting Ordinary Share Capital Increase in a maximum amount Extraordinary General Meeting of CHF 75,000 through issuance of a maximum of COLTENE Holding AG 750,000 new registered shares September 14, 2018 Creation of Authorized Share Capital in a ma
Slide 25: Preliminary transaction timeline
TRANSACTION UPDATE Preliminary transaction timeline September 14, September 27, September 17, October 11, 2018, 7 a.m. 2018 2018 2018 Publication of Publication results st Start subscription 1 trading day of terms of book building and offer and free consideration subscription offer announcement plac
Slide 26: Outlook & Priorities
AGENDA Outlook & Priorities Martin Schaufelberger CEO
Slide 27: A new COLTENE with SciCan and MicroMega
OUTLOOK AND PRIORITIES A new COLTENE with SciCan and MicroMega The new Group is more attractive to employees, customers, shareholders, and other stakeholders Combined operation based upon existing sites Fostering organic growth by capitalizing various synergies Customers to benefit from an even more
Slide 28: Updated outlook and priorities post acquisition
OUTLOOK AND PRIORITIES Updated outlook and priorities post acquisition Exploit further market potential by combining sales forces and marketing activities SALES & Enable cross selling opportunities in the group MARKETING Emphasize on Training Courses, Customer Service and Key Opinion Leader cooperat
Slide 29: Many thanks for your attention!
Many thanks for your attention! COLTENE – AN INTERNATIONALLY LEADING DEVELOPER, MANUFACTURER AND SELLER OF CONSUMABLES AND SMALL EQUIPMENT FOR DENTAL PRACTITIONERS.
Slide 30: 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 30