2017 first-quarter results - straumann · milling solutions, and glass ceramics - from one source...

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2017 First-quarter results Webcast presentation for investors, analysts & media Basel, 27 April 2017

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Page 1: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

2017 First-quarter results Webcast presentation for investors, analysts & media

Basel, 27 April 2017

Page 2: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

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 actual results, performance or achievements of the Straumann Group to differ materially from those expressed or implied in this presentation. The Group is providing the information in this presentation as of this date and does not undertake any obligation to update any statements contained in it as a result of new information, future events or otherwise.

The availability and indications/claims of the products illustrated and mentioned in this presentation may vary according to country.

2

Page 3: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

1 Organic growth – i.e. excluding the effects of currency fluctuations and acquired/divested business activities 2 Guidance expectations barring unforeseen events/circumstances

3

REVENUE GROWTH KEY DRIVERS

CHF 266m +15% organic1 NAM & EMEA Record quarterly sales +20% in CHF each contribute >30% of overall growth

Double-digit growth across all businesses Instradent posts triple-digit increase

PRODUCTS INNOVATION 2017 GUIDANCE2

>1 million implants

>10 new products

Raised sold by the Group in Q1 Growth in all implant categories, tapered implants growing fastest

and innovations presented at four international dental shows

Above-market performance Low double-digit organic growth Further EBIT margin improvement

A great start to 2017

Page 4: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

15.3 14.6

Q1 20164 All organic growth numbers

Building on last year’s strong performance North America

28% of Group

17.2 15.6

Q1 2016

LATAM 10% of Group

APAC 17% of Group

14.9 13.1

Q1 2016

Straumann Group

10.1 9.1

Q1 2016

25.7 19.7

Q1 2016

EMEA 45% of Group

Page 5: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

Business and regional review Peter Hackel, CFO

Page 6: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

6

Double-digit growth across the board

3.49.4

10.8

11.1

5.73.0

231.7

M&A effect

266.3

Revenue Q1 2017

FX effect

19.5% in CHF

Revenue Q1 2016

14.9% organic

LATAM Revenue Q1 2016

@ 2017 FX

223.0

EMEA North America

APAC

Revenue development in CHFm (rounded)

Change in organic growth

17.2% 15.3% 10.1% 25.7% 32%

31%

27%

10% LATAM

APAC

NorthAmerica

EMEA

Regional share of organic growth

Page 7: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

Strong performance (organic +10%) Seasonal effect adds to growth (early

Easter in 2016) Widespread demand; top perform-

ances in Iberia, Russia & Sweden Sales develop well in largest regional

market, Germany

5th quarter of double-digit growth Premium and Instradent businesses

exceed expectations Business with new customers

increases New 2.9mm BLT implant well received Instradent Canada operational

7

Pace increases in EMEA & North America Revenue change (organic)

56%

10.1% 8.0% 7.7%

11.1% 9.4% 8.3%

Q1 2017Q4Q3Q2Q1 2016Q4

North America 17.2% 16.0% 17.3% 16.9%

12.5%

6.6%

Q1 2017Q4Q3Q2Q1 2016Q4

EMEA

45% of Group

28% of Group

Page 8: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

15.3% 15.0% 12.7%

17.2% 13.3%

16.8%

Q1 2017Q4Q3Q2Q1 2016Q4

Sequential growth increases China continues as growth

powerhouse Japan solid; strong performances in

Australia, South Korea and distributor markets in ASEAN

Strong growth in Mexico reflects new

segment entry and cultural change Brazil: double-digit growth fuelled by

Straumann BLT & Neodent Aqua Columbia & Argentina also contribute

to regional growth New subsidiary in Chile

8

Asia dynamic; Latin America sustains strong momentum Revenue change (organic)

56%

Latin America

APAC

25.7% 20.5%

17.0% 20.2% 21.0% 20.0%

Q1 2017Q4Q3Q2Q1 2016Q4

17% of Group

10% of Group

Page 9: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

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Double-digit expansion in all businesses; Implants contribute lion’s share of growth

Implants Restorative Biomaterials

Page 10: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

Expanding in new markets/segments

Marco Gadola, CEO

Page 11: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

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Success through expanding our addressable market

Straumann Group share Addressable market Market areas not covered

2012

Premium (Tapered)

22%

2015

BLT launch Neodent consolidation

Fully-tapered implant; scope expansion (2018)

Chairside market entry (2017)

Biomaterials range expanded (botiss)

18% Non- premium

Biomaterials

Chairside CADCAM

market

2018

A CHF 7bn addressable

market

Milestones:

A CHF 0.9bn addressable

market

Premium (Fully tapered)

Page 12: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

0

1000

2000

3000

Implants Abutments CADCAM-Prosthetics

Biomaterials CADCAM-Equipment

Scanners

Plenty of potential in a market worth CHF 7 billion

Straumann Group market share

Growth potential in respective segment

CHF m CHF 3.5 bn

12

Straumann Neodent Anthogyr

Zinedent equinox maxon

Medentika

Straumann botiss Nibec

Genoss LifeNet Health

Amman Girrbach

Rapid Shape

Dental Wings 3Shape

Rodo Valoc

etkon Createch

V2R

Page 13: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

Instradent Canada goes into operation Implant dentistry well established – significant opportunity for

high-quality attractively-priced alternatives to leading competitor brands

Straumann Group offers full range of solutions at multiple price points

New Straumann Group subsidiary in Chile Predominantly a non-premium market Implant procedures more affordable thanks to rising incomes

Source: Straumann estimates 13

Canada 240k (70)

Chile 100k (58)

Penetrating new geographies and segments Number of implants;

penetration per 10 000 population in brackets

Page 14: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

New production building in Curitiba (Brazil) ready – capacity expected to double in coming years

Footnote 14

Production space: +25% Warehouse: +2400m2 Headcount: +120 employees Turning machines: +50% Expansion fully operational in Q3

Page 15: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

New partnerships expand our offering

Broad distribution agreements with 3Shape and Rapid Shape

Straumann’s digital range incorporates scanners, software solutions, lab and chairside milling solutions, and glass ceramics - from one source in a validated workflow

15

3D printers by Rapid Shape produce temporary restorations, models, high-precision drill templates, etc. in approx. 16 min

TRIOS® 3 intraoral scanners - industry-leading technology by 3Shape – accurate, ultra-fast, powderless

Top quality chairside solution with Straumann’s new C-Series compact milling machine

Page 16: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

Further investment in RODO as potential game-changing technology reaches market

Straumann increases stake from 12% to 30% Option to increase to 51% in 2021 Exclusive global distribution rights except N. America &

S. Korea Smileloc® mechanism made of Nitinol (shape memory alloy)

to attach restorations – eliminates cement and screws FDA 510(k) approval; commercially available in initial

markets

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Page 17: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

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Straumann Group – a portfolio of brands and partners driving innovation in dentistry

Premium Technology & manufacturing platform Non-Premium

France (30%)

Taiwan (49%)

Turkey (50%)

Germany (51%)

India (100%) Brazil (100%)

Switzerland (49%)

Spain (30%)

Germany Austria

South Korea

Germany (100%)

Denmark

Canada (30%)

Germany

Germany (49% JV)

South Korea

USA (30%)

USA

Canada (55%)

Page 18: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

Innovative comprehensive solutions Total solution provider

Page 19: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

Highly successful trade fairs Europe (IDS), LATAM (CIOSP), N. America (AO, Chicago Midwinter)

19

Page 20: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

Footnote 20

Innovation around 6 key themes

DIGITAL PERFORMANCE

PROSTHETIC EFFICIENCY

REDUCED

INVASIVENESS

EDENTULOUS

PATIENTS

ENABLEMENT &

EDUCATION

ESTHETICS &

BIOMATERIALS

Page 21: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

New implant/prosthetic solutions

Footnote

‘SmallOne’ 2.9mm diameter BLT implant Straumann PURE 2-piece ceramic implant Pro Arch Tissue Level solution for edentulous patients Angulated screwdriver & Variobase® abutments N!ce® fully crystallized glass ceramic CARES® Coron® abutments

21

Page 22: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

New digital solutions at IDS

Footnote

Straumann Trios® 3 intraoral scanner CARES® intraoral scanner powder-free handpiece CARES® portable intraoral scanner CARES® C series chairside & D series lab milling systems CARES® P series 3D Printers

22

Collaboration partners

Page 23: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

Manufacturing Prosthetic design Scan of patient case

23

Ready to support all CADCAM workflows

Lab scanning

Dentist chairside milling / 3D printing

Centralised milling

Intra-oral scanning

In-lab milling / practice lab

Page 24: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

Non-premium additions Neodent digital & edentulous

solutions Broad range of treatment &

restorative options in Brazil & US NeodentFIT – in-lab, central & in-

house milling solutions

Medentika® Novaloc ® system

24

Page 25: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

Leadership & diversity High performance culture

Page 26: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

Executive Management strengthened

Guillaume Daniellot Sales North America

Wolfgang Becker Distributor & Emerging

markets Europe, Middle East & Africa

Jens Dexheimer Sales Europe

Patrick Loh Sales Asia/Pacific

Matthias Schupp Sales Latin America

& CEO Neodent

Dr. Peter Hackel CFO

Frank Hemm Marketing & Education

Marco Gadola CEO

Dr. Gerhard Bauer Operations, Research

& Development

Petra Rumpf Instradent & Strategic

Alliances

Dr. Alexander Ochsner Global People Management

& Development

26

Page 27: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

Footnote 27

Board of Directors – increased diversity, added skills

G. Achermann M. Bourquin Dr. S. Burckhardt

Dr. B. Lüthi U. Looser

Dr. h.c. T. Straumann R. Wallimann

Page 28: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

Outlook 2017 and beyond

Page 29: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

1 Excluding the effects of acquisitions and currencies

We expect the global implant market to grow at a similar rate (3-4%) in 2017 Based on the strong performance so far we are

raising guidance for full-year organic1 growth to the low double-digit range Despite further investments in strategic growth

initiatives and assuming that currency rates remain fairly stable, the expected revenue growth and operational leverage should lead to further improvements in the (organic1) operating profit margin (2016: 24.8%).

29

Guidance 2017 Barring unforeseen circumstances

Page 30: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

30

Next key event: ITI World Symposium 2017

500 800

1'100

1'200

1'400

1'500 1'800

2'100

2'600

3'000

4'000 4'200

0 1'000 2'000 3'000 4'000 5'000

Basel (CH), 1988

Basel (CH), 1990

Basel (CH), 1992

Washington (US), 1995

Basel (CH), 1996

Boston (US), 1998

Lucerne (CH), 2000

San Diego (CH), 2002

Munich (DE), 2005

New York (US), 2007

Geneva (CH), 2010

Geneva (CH), 2014

Participants

Page 31: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

Feel the digital power in our truck at the ITI World Symposium

31

European Tour 2016-18 showcasing

complete suite of digital solutions

Page 32: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

Questions & answers &

Page 33: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

2017 Event Location 28 April Investor meetings Paris 09 May Investor meetings Stockholm 07 June Vontobel summer conference Interlaken (CH) 17 August Half-year results conference 2017 Basel HQ 21 August Investor meetings New York 22 August Investor meetings Zurich 22 August Investor meetings Boston 22 August Investor meetings Toronto / Montréal 8 September Investor meetings Benelux 14 September UBS Best of Switzerland conference Wolfsberg (CH) 28 September Bernstein Strategic Decisions Conference London 29 September Investor meetings Edinburgh

Social media Type Source Analyst Talk Executive interviews straumann.com (Investors) / youtube.com StraumannIR Investor Relations Twitter @StraumannIR

Calendar of upcoming events

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Page 34: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

CHF 36%

EUR 19%

USD/CAD/AUD 23%

JPY 4%

BRL 9%

Other 9%

CHF 8%

EUR 31%

USD/CAD/AUD 30%

JPY 7%

BRL 10%

Other 15%

Straumann’s currency exposure

1 These distribution charts represent the total net revenues and the total COGS, as well as OPEX in the various currencies. All numbers are rounded and based on FY 2016 figures.

Cost breakdown FY20161

Revenue breakdown FY20161

Average exchange rates (rounded) FX sensitivity

(+/- 10%) on full-year...

2016 Q1 2017 Trend YTD Revenue EBIT

1 EURCHF 1.09 1.07 +/- 29m +/- 18m

1 USDCHF 0.99 1.00 +/- 23m +/- 11m

100 BRLCHF 28.37 31.75 +/- 9m +/- 3m

100 JPYCHF 0.90 0.88 +/- 6m +/- 4m

34

40

60

80

100

120

2012 2013 2014 2015 2016EURCHF USDCHF JPYCHF BRLCHF

Page 35: 2017 First-quarter results - Straumann · milling solutions, and glass ceramics - from one source in a validated workflow 15 . 3D printers by Rapid Shape produce temporary restorations,

Thank you [email protected]