capture the full market potential - straumann · henry schein, patterson, danaher, dentsply sirona...

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Capture the full market potential Marco Gadola, CEO Interlaken, 4-5 June 2019

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Page 1: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Capture the full market potentialMarco Gadola, CEO Interlaken, 4-5 June 2019

Page 2: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Looking back –Financial performance Q1 2019 and our track

record

2

Page 3: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Financial Highlights in Q1

3

17%

ORGANIC SALES GROWTH

APAC & LATAM sustain growth ~20%

TOP PERFORMERS

Organic revenue to grow in

low-teen percentage range; further operating

margin improvements

OUTLOOK 2019

4-5%

IMPLANT MARKET GROWTH

all regions post

double-digit increases

REGIONAL TREND

12% consensus

(Vara Research)

ORGANIC SALES GROWTH 2021

Page 4: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Revenue development (in CHF m, rounded)

EMEA and NAM contribute two-thirds of organic growth

0.3

20.2

16.4

13.04.9

LATAMM&A effect APACRevenues

Q1 2018

-6.6

EMEARevenues

Q1 2018

@FX 2019

FX effect

324.1317.8

Revenues

Q1 2019

North

America

372.3

14.9% in CHF

17.1% organic

Change in organic growth

17.4% 19.7%14.4% 22.1% 37%

30%

24%

9% LatinAmerica

AsiaPacific

NorthAmerica

EMEA

Regional share of

organic growth

4

Page 5: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

6.4%

9.1%

13.1%

15.7%

18.9%

2014 2015 2016 2017 2018

24.8%

27.6%28.3%

29.3%29.6%

0

100

200

300

400

2014 2015 2016 2017 2018

EBITDA excl. exceptionals Exceptionals

Underlying margin

Impressive 5-year performance

1 2017 figures restated to reflect updated purchase price allocation for ClearCorrect; figures excl. exceptional effects in all years.

5-year organic revenue growth 5-year EBITDA1 in CHF

million and margin

Market

growth est. 4-5%

A v e r a g e + 1 3 % + 4 . 8 % - p o i n t s

18.4% 18.1%

20.4% 20.7%20.1%

-50

50

150

250

350

450

2014 2015 2016 2017 2018

+ 1 . 7 % - p o i n t s

5-year Net Profit1 in CHF

million and margin

5

Page 6: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Uncontested No. 1 in implants

4.5 bn

25%

#1

~26-28 bn

5%

#7

Implantology1Total

dentistry

Market

Straumann position

Straumann share

2018Others (400+)

25%

19%

12%

8%

7%

6%

4%

19%

Danaher

Dentsply

Sirona

Zimmer

Biomet

Henry

Schein

Osstem

Straumann

Group

1 Implant dentistry market segment includes implant fixtures, final and temporary abutments, healing screws, copings and related

instruments; information based on Decision Resources Group and Straumann data.

Main playersHenry Schein, Patterson,

Danaher, Dentsply Sirona

Align Technology, 3M

Dentium

6

Page 7: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Getting fit for the future

7

Villeret expansion project to

add 16 000 m2 production

area (operational early 2021)

2nd plant in Curitiba (Brazil) to add

11 000m2 production space (opening in Q4 2019)

BRA

CH

Page 8: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Success factors

Page 9: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Straumann Group – continuously

increasing the addressable market

Total solution provider tooth

replacement

Total solution provider esthetic dentistry

2012

2016

2018

Implant provider 3.4

Addressable market

in CHF billion

7.0

13.0

9

Preventive

dentistry

represents ~2bn

market opportunity

Page 10: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Our esthetic dentistry solutions portfolio

Implant systemsMulti-platform

prostheticsDigital Orthodontic Biomaterials Preventive

Glo

ba

l

bra

nd

sL

oc

alb

ran

ds

Te

ch

no

log

y

bra

nd

s&

pa

rtn

ers

10

Page 11: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Long avenue of growth in other ‘specialties’

Market segments Est. segment size1

(2018 in CHF bn)Growth rate

Our current

market share

Biomaterials 0.7 High-single digits

Implantology1 4.7 Mid-single digits

CAD/CAM

equipment21.5 Double digits

CAD/CAM

prosthetics3.9 Double digits

(All ceramic)

Clear aligners 2.2 >25%

1 Imaging and planning segment is not included in the overview above. Customized prosthetics are listed under CAD/CAM prosthetics, but also belong to

the total implant and abutment market.

11

Page 12: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Targeted investments in high growth markets

12

Implant volumes in key markets (million

units in 2017)

1.5

1.2

1.3

2.4

0.8

1.4

2.7

0.2

0.4

1.4

0.3

SPAIN

ITALY

GERMANY

BRAZIL

TURKEY

RUSSIA

USA

UK-IRELAND

JAPAN

CHINA / HONG KONG

INDIA

319

197

160

118

98

160

74

38

33

10

2

Premium

Non-

Premium

Our new

subsidiaries

Penetration: Implants per 10’000 inhabitants

Page 13: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Reputation as innovation leader underpinned

13

12

19

Roxolid implant material

13

14

PURE ceramic 1-piece implant

Variobase abutments

BLT implant15

16 ProArch edentulous solution

N!ce fully-crystallized glass-ceramic Grand

Morse

Grand Morse implant

Grand

Morse

Mini implant

PURE 2-piece ceramic implant

17

18

BLX implant

Small diameter implant ( 2.9mm)

Short implant (4mm)

Roxolid-on-all

Chairside 3D printing

Page 14: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Looking ahead –recent achievments and

strategy in action

14

Page 15: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

The so called ,Value Segment’ – a new business opportunity

Unternehmensberichte, Capital IQ, Bernstein-Analyse, Straumann-Schätzungen

52%

48%

2018

77%

23%

2003

71%

29%

2008

Premium-Segment (value share in %)

Non-Premium-Segment

Page 16: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

16

Multi-pricing strategy – comprehensive portfolio

of value implant brands

Neodent,

Anthogyr,

Medentika

Premium

Upper value

Lower value

Global implant & abutment market

~CHF 4bn

Straumann Group share (2018)

Zinedent,

T-Plus,

equinox

Page 17: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Our latest jewel in the crown

Stake increased from 30% to full ownership

Consolidation 1 June 2019; integration started

Leading French implant manufacturer; established

international provider of upper value implants

Comprehensive implant portfolio

Group to build on successful partnership in China

and Russia

Anthogyr employs 400 people

Total revenues last 12 months: CHF 57 million

(approx. CHF 50 million acquisition effect1)

171 Acquisition effect represents the revenues generated in the 12 months prior to the closing excluding intra-company sales. The amount may

fluctuate with currency movements.

Page 18: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Focusing on the BLX launchDynamic Bone Management™

18

Page 19: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Full range of implant diameters and lengths

One connection – one prosthetic line

Ø 3.75 for all indications

Straumann® BLX implant portfolio

all indicationsØ 3.75

19

Page 20: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

A unique design with clear benefits

20

Straumann BLX Feature / properties Nobel Active

Ø 3.75 mmSMALLEST ALL-

INDICATION IMPLANTØ 4.3 mm

No tap

2 steps soft and 4 in hard

bone

SIMPLICITY OF

DRILLING PROTOCOL

Tap required

3 steps in soft and 5 in hard

bone

Dynamic Bone

Management™

INSERTION

CONTROL“All-or-nothing” effect

1 connection for

6 diameters

PROSTHETIC

SIMPLICITY

3 connections for

4 diameters

SLA and SLActive surface

(=best long term

outcome in registry)

SURFACE

MANAGEMENTStandard surface1

RoxolidHIGH-STRENGTH

MATERIAL

20 1 New hydrophilic surface TiUltra in roll-out phase. Relevant clinical data still pending...

Page 21: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Current Straumann Group

market share

1 out of 4 implants have a fully tapered designMarket volume

(Implant fixtures)

25 million

units

Parallel

walled

Apically

tapered

Fully

tapered

Main players:

Nobel Biocare,

BioHorizons,

MIS, Implant

Direct, Megagen

Neodent,

Anthogyr and

Equinox

21

Page 22: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Large potential for growth in digital equipment

Source: Straumann proprietary GP survey in US, DE, IT, and UK; samples size >200 dentists.

9% 11%

24%

12%

5% 4%

13% 11%

38%43%

68%

80%

UK Italy US GER UK Italy US GER UK Italy US GER

GPs using intra-oral scanners(IOS)

Dentists using IOS & chairsidemilling equipment

Dental technicians using labscanners

22

Page 23: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

An even broader range of digital options

23

Virtuo Vivo™

intraoral scanner

3Shape TRIOS 4 Medit T-Series

DWOS 8 & CoDiagnostiX with Easy Modes;

Carestream, Camfacture, Medit integrated

3D printing capsule system

Page 24: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Clear aligners – one of the most

attractive areas in dentistry

Page 25: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

UPPER AND MIDDLE CLASS

PREVALANCE OF MISALIGNED TEETH

ORTHODONTIC CASES P.A.

TREATABLE W ITH ALIGNERS

CASES

NAM EMEA LATAM APAC

Clear Aligners is an underpenetrated segment and a key

growth driver for us

25 Source: World Statistics; Global Industry Analysts Inc. 2016; company fillings as well as broker research reports: Robert W. Baird 2015,

William Blair 2017, Stifel 2017, Leerink 2017.

60%

eligible

1’350

116.6

1.8

1’800

People / eligible patients in million (2017)

15-17%

treated

3 out of 4 people

have misaligned

teeth or suffer

from malocclusion

Page 26: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

ClearCorrect smiles spread to new markets

Case growth: Q1 +73%; FY’18 +61%;

Customer base expands by close to 20% in 2019

Continued strong growth in North America

ClearCorrect aligners promoted with Dental

Monitoring system in the US

Brazilian launched at CIOSP in Brazil and entry into the

attractive Chinese market

Expanding our production capacity

26

Page 27: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

ClearCorrect

Launched in Brazil and Europe

Production expansion

Fresh new branding

Smyletec

Exclusive distribution agreement

Affordable, state-of-the-art solutions for China

World’s second largest market for clear aligners,

expected to grow >50% p.a. in the next 5 years

Smyletec launched in March; Dental Monitoring to

follow later in 2019

Clear-aligner business launched in Brazil, China and

Europe

27

Page 28: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Outlook 2019

28

Page 29: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Our 2019 guidanceBarring unforeseen circumstances

Market growth

Our revenue

growth

Profitability

Global implant market to continue to

grow between 4-5%

Further improvement in the underlying1

EBITDA and EBIT margin

Confident to outperform and achieve organic

revenue growth in the low-teens percentage range

1 Profitability objectives exclude exceptional effects related to acquisitions, business combinations as well as the impact from the adoption of

IFRS16 (see next slide). 29

Page 31: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Calendar of upcoming events

2019 Event Location

04-05 June Vontobel Switzerland conference Interlaken (CH)

13 June Exane BNP Paribas CEO conference Paris

14 August First-half 2019 results conference Basel, HQ

28 August Octavian Swiss conference Zurich

03 September Investor meetings Milano

04 September Goldman Sachs conference London

05 September Investor meetings London

06 September UBS Best of Switzerland conference Zurich

Social media Type Source

Analyst Talk Executive interviewed by analysts Corporate Website / youtube

StraumannIR Investor Relations Twitter @StraumannIR

31

Page 32: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Participating in high growth areas while mitigating the

risk of an economic slowdown

1 Emerging market classification based on MSCI GICS definition

More EM sales1… more balanced product

portfolio…

…offered at different

price points

Share of implant volumes in

2012 vs. 2018

Western Europe

Emerging markets (EM)

Other growth markets in developed

countries

Premium implant solutions

Non-premium implant solutions

New or adjacent products

Multi-pricing strategyProduct portfolio break-down

2012 vs. 2018 (in value)

Premium

Upper value

Lower value

32

Page 33: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Estimated impact from adopting

IFRS 16 (leases) in 2019

Approx. IFRS 16 impact (in CHF million)1 Total

Revenue

Gross margin +0.5

EBITDA +18.0

EBIT +3.0

Financial results -5.0

Profit before tax -2.0

1 Barring unforeseen circumstances, major currency movements and/or change in business scope33

Page 34: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

CHF29%

EUR22%

USD/CAD/AUD26%

JPY3%

BRL8%

Other12%

CHF6%

EUR29%

USD/CAD/AUD31%

JPY5%

BRL8%

Other21%

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 2018 figures as well as average FX rates in 2017-18. They also include recent acquisitions and new subsidiaries.

Cost breakdown FY20181

Revenue breakdown FY20181

Average exchange rates (rounded)FX sensitivity

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

2017 2018

Closing

2018 Revenue EBIT

1 EURCHF 1.11 1.15 1.13 +/- 39m +/- 23m

1 USDCHF 0.98 0.98 0.99 +/- 37m +/- 17m

100 BRLCHF 30.69 26.87 25.36 +/- 11m +/- 2m

100 JPYCHF 0.87 0.88 0.90 +/- 7m +/- 4m

70

75

80

85

90

95

100

105

110

115

01.2017 06.2017 11.2017 04.2018 09.2018

Exchange rates development in 2017-18

USDCHF EURCHF JPYCHF BRLCHF

34

Page 35: Capture the full market potential - Straumann · Henry Schein, Patterson, Danaher, Dentsply Sirona Align Technology, 3M Dentium 6. Getting fit for the future 7 Villeret expansion

Thank you