2017 first-quarter results - straumann · milling solutions, and glass ceramics - from one source...
TRANSCRIPT
2017 First-quarter results Webcast presentation for investors, analysts & media
Basel, 27 April 2017
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
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
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
Business and regional review Peter Hackel, CFO
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
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
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
9
Double-digit expansion in all businesses; Implants contribute lion’s share of growth
Implants Restorative Biomaterials
Expanding in new markets/segments
Marco Gadola, CEO
11
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)
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
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
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
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
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
16
17
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%)
Innovative comprehensive solutions Total solution provider
Highly successful trade fairs Europe (IDS), LATAM (CIOSP), N. America (AO, Chicago Midwinter)
19
Footnote 20
Innovation around 6 key themes
DIGITAL PERFORMANCE
PROSTHETIC EFFICIENCY
REDUCED
INVASIVENESS
EDENTULOUS
PATIENTS
ENABLEMENT &
EDUCATION
ESTHETICS &
BIOMATERIALS
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
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
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
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
Leadership & diversity High performance culture
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
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
Outlook 2017 and beyond
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
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
Feel the digital power in our truck at the ITI World Symposium
31
European Tour 2016-18 showcasing
complete suite of digital solutions
Questions & answers &
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
33
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
Thank you [email protected]