2017 nine-month & third-quarter sales - · pdf file25.10.2017 1 2017 nine-month &...
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25.10.2017
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2017 nine-month & third-quarter salesWebcast presentation for investors, analysts & media
Basel, 26 October 2017
DisclaimerThis presentation contains certain forward-looking statements that reflect the current views ofmanagement. Such statements are subject to known and unknown risks, uncertainties and otherfactors that may cause actual results, performance or achievements of the Straumann Group todiffer materially from those expressed or implied in this presentation. The Group is providing theinformation in this presentation as of this date and does not undertake any obligation to updateany 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 thispresentation may vary according to country.
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9-months highlights Marco Gadola, CEO
1 Organic growth – i.e. excluding the effects of currency fluctuations and acquired/divested business activities2 Outlook expectations barring unforeseen events/circumstances
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REVENUE GROWTH TOP PERFORMER BUSINESS DRIVERS
+15% organic1 North America Total solutionsQ3: +16% organic; +21% in CHF9M: +15% organic; +19% in CHF
…generates >30% of Group’s 9M growth;APAC remains fastest-growing region (+24%)
Implants contribute two thirds of 9M growth: BLT and Neodent CM drive premium and non-premium businesses respectively.
EXPANSION PRODUCTS OUTLOOK
New subsidiaries Regulatory approvals RaisedIran opened; preparations for subsidiaries in Turkey & S. Africa underway. Acquisitions of ClearCorrect & Dental Wings completed.
…for key Straumann products (including BLT) in China, Russia and India.Neodent launches new GM implant system.
…for full-year organic revenue growth: 13-15%2
Growth throughout and beyond our space
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Momentum sustained in Q3 with accelerations in APAC and LATAM
North America28% of Group
17.0 17.2
Q3 9MLATAM
11% of Group
APAC17% of Group
15.9 14.8
Q3 9M
Straumann Group
9.9 10.0
Q3 9M
EMEA 44% of Group
18.915.7
Q3 9M
Growth year-on-year (in %)
27.924.2
Q3 9M
Consistently outperforming the marketOrganic revenue growth since 2012
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-1.0%
1.2%
6.4%
9.1%
13.1%14.8%
2012 2013 2014 2015 2016 9M 2017
Average7.2%
market growth (incl. Straumann Group)
Double-digit growth over the first 9 months supported across all segments
>3x
++Biomaterials
++Implants
++Restorative
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Business and regional reviewPeter Hackel, CFO
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Further expansion across all regions
12.227.0
32.4
31.9
16.76.0
M&A effect
697.8675.1
Revenues 9M 2016
FX effect
14.8%organic
18.7%CHF
Revenues 9M 2017
801.3
LATAMAPACNorth America
EMEARevenues 9M 2016
@ FX 2017
Revenue development (CHFm, rounded)
Change in organic growth
17.2% 15.7%10.0% 24.2% 31%
31%
26%
12% LATAM
APAC
NorthAmerica
EMEA
Regional share oforganic growth
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EMEA performed consistently throughout the first 9-months
Germany was the main contributor, with Iberia, France, Belgium and the UK delivering the strongest increases
Dynamic growth in Russia
Double-digit growth in both the premium and non-premium implant businesses
Higher levels of sales generated from newly acquired customers
Many new customers attracted by Straumann’s novel 2.9mm BLT implant
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EMEA and North America maintain paceRevenue change (organic)
56%
9.9% 9.9% 10.1% 8.0% 7.7%
11.1%
Q3Q2Q1 2017Q4Q3Q2
North America17.0%
17.2% 17.2%
16.0%
17.3% 16.9%
Q3Q2Q1 2017Q4Q3Q2
EMEA
44% of Group
28% of Group
18.9%
12.8%15.3%15.0%
12.7%
17.2%
Q3Q2Q1 2017Q4Q3Q2
China continues to be main powerhouse; Anthogyr adds to growth
Double-digit increases in Australia, China, South Korea, and Japan
Japan posts strongest quarter this year
Straumann and Neodent gain new customers in weak Brazilian market
Successful launch of Neodent GM Dynamic growth in Mexico; earthquake
disruption not evident in Q3 New subsidiaries in Argentina, Colombia,
and Chile complete build-up phase
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Asia Pacific and Latin America on fast trackRevenue change (organic)
56%
Latin America
APAC 27.9%
19.4%
25.7%20.5%
17.0%20.2%
Q3Q2Q1 2017Q4Q3Q2
17% of Group
11% of Group
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Facility 2017 2018 2019 Output increase1
Villeret (CH) +70%
Andover (US) +60%
Curitiba (BR) +35%
New production building (brownfield)
Capacity expansion to meet growing demand
1 Expected capacity increase from H1 2017 – Q4 201911
New production area in Curitiba Impression of new production building in Villeret
+50% space
New building/modification
Additional machine capacity or working hours
Strategic progress Marco Gadola, CEO
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Strategic priorities of the Straumann Group
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Expand scope to become a Total Solution Provider for esthetic dentistry
Target unexploited growth markets & segments
Drive our high performance STMN Group culture and organization
2'217 2'387
3'4713'797
4'290
2013 2014 2015 2016 9M 2017
Number of employees Medentika & Equinox Dental Wings & ClearCorrect
CH (incl. HQ)20%
Rest of EMEA26%
LATAM25%
NAM19%
APAC10%
Geographical expansion reflected in an increasingly diverse teamEmployees by region (in % of total1)
14 1 Incl. Dental Wings and ClearCorrect, which were consolidated as of 01.10.2017
Headcount development (pro forma1)
4’779
+982
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New subsidiaries in Iran, Turkey & South Africa –direct access to large growth marketsIran
Distribution taken over Broader presence; multi-brand strategy Straumann products available in Iran since 2007
Turkey Preparations to establish subsidiary in coming months Intention to incorporate current distributor & team
South Africa Straumann ranks among top 3 premium companies Preparations to open subsidiary, incorporating former distributor & team Cape Town subsidiary to act as regional hub
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62(500 000)
Implants per 10 000 people
(implant market total)
75(600 000)
13(60 000)
Chinese ‘fire-cracker’ Key regulatory approvals obtained; launches underway for:
Straumann® BLT implants Roxolid® SLActive® for practically all Straumann implants Straumann® Pro Arch edentulous solutions Straumann® Smart enablement & education program Anthogyr Axiom ® PX implants
Launch activities include 3-day Innovation Summit in Shanghai with parallel congresses in Beijing, Guangzhou & Chengdu; large number of participants expected (1600 onsite and 13 000 online yesterday).
New CADCAM milling center in Shenzhen operational in Q2 2018
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AnthogyrAxiom® PX
Straumann BLT
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Other significant regulatory approvals and launches Russia
Straumann® Bone Level Taperedimplant approved
India All Straumann® Soft Tissue Level
& Bone Level implants approved
Major launch event in Mumbai early December
Group now offers a comprehensive range of premium & attractively-priced implant options under the Straumann & Equinox brands.
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Neodent launches innovative Grand Morse implant system in Brazil
Complete new implant system for all clinical needs, developed from the inside out, starting with the prosthetic interface
Fully tapered design with cutting threads
Comprehensive prosthetic range, including angulated rounded abutments for full-arch restorations, ti-bases and ‘ProPeek’ temporary abutments
1-year clinical evidence: 100% survival of 277 implants in 57 patients1
200 new customers attracted in first month
Roll-out in other regions beginning mid 2018
Grand Morse is expected to become the preferred choice of Neodent customers and to supersede the Cone Morse in the next two years.
181 Data on file
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EAO in Madrid
New products despite big launch program at IDS
Straumann P-Series 3D printers enter market Dental Wings’ powder-free intraoral scanner handpiece Straumann® Surgical Motor Pro
Clinical endorsements for Straumann solutions at scientific symposium, focusing on patient-centric protocols, edentulous solutions with Pro Archand Novaloc, and immediacy with BLT
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Exciting new data on SLActive® implant surface
Discovery of distinct nanostructures on the SLActive®
surface1,2 proves its topography differs from that of SLA®.
Presence of nanostructures
increases surface area by 50%3
enhances (together with surface wettability) • fibrin network formation• cell adhesion• bone-cell mineralization• osseointegration2,4,5
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Roxolid® SLA® Roxolid® SLActive®
1Kopf BS et al. 2015. The role of nanostructures and hydrophilicity in osseointegration: In-vitro protein-adsorption and blood-interaction studies. J Biomed Mater Res Part A2015:103A:2661–2672. 2Wennerberg A et al. Nanostructures and hydrophilicity influence osseointegration – A biomechanical study in the rabbit tibia. Clin. Oral Impl. Res. 25, 2014, 1041–1050 3Straumann: data on file 4Müller E et al. The interplay of surface chemistry and (nano-)topography defines the osseointegrative potential of Roxolid® dental implant surfaces. eCM Meeting Abstracts 2017, Collection 3; SSB+RM (page 31). 5EMPA (2017) Report additional experiments: Impact of RXD SLA, RXD SLAnano, RXD SLActive, and RXD pmod SLA surfaces on protein adsorption, blood coagulation, and osteogenic differentiation of HBCs. Final report: Impact of RXD SLA, RXD SLAnano, RXD SLActive, and RXD pmod SLA surfaces on protein adsorption, blood coagulation, and osteogenic differentiation of HBCs. EMPA, Swiss Federal Laboratories for Materials Science and Technology (data on file).
Fibr
in n
etw
ork
Adhe
rent
cel
ls
Roxolid SLA®Roxolid SLA®
with nanostructuresRoxolid SLActive®
with nanostructures
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Strategic priorities of the Straumann Group
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Expand scope to become a Total Solution Provider for esthetic dentistry
Target unexploited growth markets & segments
Drive our high performance STMN Group culture and organization
Dental Wings, ClearCorrect & Rapid Shape transactionsclosed
Footnote22
100% 100% 35%Ownership 38%
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The orthodontic workflow complements our digital solutions for esthetic dentistry
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Prostheticworkflow
Orthodonticworkflow
Data capturing
Case designTreatment design
Production
Model production
Alignerproduction
restorations
Doctorapproval
Doctorapproval
implant -borneTooth-borne
Outlook 2017
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1 Market growth assessment incl. Straumann Group 2 excl. currency and acquisition effects (ClearCorrect, Dental Wings, Medentika, and Equinox).25
Outlook for 2017Barring unforeseen circumstances
Market growth
Our revenuegrowth
Profitability
We expect the global implant market to grow at approx. 3-4%1 in 2017
Further improvements in the underyling2 operating profit margin despite further investments in
strategic growth initiatives
Confident that we can continue to outperform by achieving organic2 revenue growth of 13-15%
Questions & answers &
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2017 Event Location
26 October Q3/9M revenue publication Webcast
28 October Investor meetings Paris (F)
31 October Investor meetings Geneva (CH)
16 November Vontobel Healthcare Tour Basel (CH)
17 November Credit Suisse Mid-cap conference Zurich (CH)
23 November HSBC Equities conference Frankfurt (D)
07 December Berenberg Equities conference Pennyhill (UK)
2018 Event Location
15 February Full-year 2017 results conference Straumann Group Headquarters, Basel
04 April AGM 2018 Messe Basel
Calendar of upcoming events
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Growth strategy pays off
1 In March 2015 Straumann acquired the remaining 51% stake of Neodent (Brazil) which added 930 employees to the Group. In 2017, the incorporation of Equinox in India and Medentika in Germany added 160 employees. Note: 5-year average = 2013 – 9M 2017
in CHF million 2012 2013 2014 2015 2016 9M 2017 5-year averageRevenue 686.3 679.9 710.3 798.6 917.5 801.3
Organic revenue growth in % -1.0 1.2 6.4 9.1 13.1 14.8 8.9Acquisiton / Divesture effect in % -0.6 -0.8 0.0 9.5 0.8 2.9 2.5Change in l.c.% -1.6 0.4 6.4 18.6 13.9 17.7 11.4FX effect in % 0.5 -1.3 -1.9 -6.1 1.0 1.0 -1.5Growth in CHF % -1.1 -0.9 4.5 12.4 14.9 18.7 9.9
2012 2013 2014 2015 2016 H1 2017 CAGR 2012-16Gross profit b. exceptionals 534.4 535.9 558.7 628.0 718.5 420.0 7.7Underlying margin 77.9% 78.8% 78.7% 78.6% 78.3% 77.2%EBIT b. exceptionals 102.1 123.8 148.3 185.7 227.2 139.8 22.1Underlying margin 14.9% 18.2% 20.9% 23.3% 24.8% 25.7%Underlying net profit1 72.7 107.9 130.9 144.7 186.8 117.2 26.6Underlying margin 10.6% 15.9% 18.4% 18.1% 20.4% 21.6%Earnings per share (adjusted) 4.71 6.98 8.42 9.19 11.94 7.57 26.2
2012 2013 2014 2015 2016 H1 2017 CAGR 2012-16Operating cash flow 114.6 151.5 146.2 185.6 184.7 77.5 12.7Capital expenditure (19.4) (12.6) (18.8) (35.2) (46.7) (32.8)as % of revenue -2.8% -1.9% -2.6% -4.4% -5.1% -4.1%Free cash flow 95.2 139.2 128.4 151.1 138.7 45.2 9.9
Number of employees (year-end)1 2'517 2'217 2'387 3'471 3'797 4'227 10.8
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60
80
100
120
2014 2015 2016 2017
Development of Straumann’s main exchange rates since 2014
USDCHF EURCHF JPYCHF BRLCHF
CHF36%
EUR19%
USD/CAD/AUD23%
JPY4%
BRL9%
Other9%
CHF8%
EUR31%
USD/CAD/AUD30%
JPY7%
BRL10%
Other15%
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 FY20161Average exchange rates (rounded) FX sensitivity
(+/- 10%) on full-year...
9M 2016 9M 2017 Latest trend Revenue EBIT
1 EURCHF 1.09 1.10 +/- 29m +/- 18m
1 USDCHF 0.98 0.98 +/- 23m +/- 11m
100 BRLCHF 27.72 30.89 +/- 9m +/- 3m
100 JPYCHF 0.90 0.88 +/- 6m +/- 4m
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Thank [email protected]