Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
1
2013 Half-year results
Analysts’ & Media Conference
Basel, 20 August 2013
Straumann 2
Disclaimer
This presentation contains certain “forward-looking statements”, which can be identified by the use of terminology such as “will”, “guidance”, “would”, “prevailing”, “still be able to”, “should”, “confidence in achieving”, “turnaround”, “future”, “anticipated”, “continue”, “mid and long term”, “believes”, “outlook”, or similar wording. Such forward-looking statements reflect the current views of Management and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Group to differ materially from those expressed or implied. These include risks related to the success of and demand for the Group’s products, the potential for the Group’s products to become obsolete, the Group’s ability to defend its intellectual property, the Group’s ability to develop and commercialize new products in a timely manner, the dynamic and competitive environment in which the Group operates, the regulatory environment, changes in currency exchange rates, the Group’s ability to generate revenues and profitability, and the Group’s ability to realize its expansion projects in a timely manner. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this report. Straumann is providing the information in this presentation as of this date and does not undertake any obligation to update any forward-looking 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
Highlights
Marco GadolaCEO
Straumann 4
Weak economy in Europe Consumer confidence still fragile Raising healthcare costs and co-pay levels reduce disposable income for
dental treatment Market still receding as patients postpone or take cheaper/inferior options Many practice owners perceive general business conditions as negative
Growth potential in North America intact Momentum picks up in Q2 After downward trend in 2012, dental practice activity indicators show
improvements in tooth replacement procedures
Asia: mixed picture China continues to perform well Japanese market still receding
What is happening in the markets?
3
5
Fundamental shifts To lower-cost alternatives Dental labs under pressure to find optimal levels of in-house
production, outsourcing, efficiency and quality Role of General Practitioners (GPs) increasing in implant dentistry
New technologies Digital procedures and workflows Optimized materials (improved esthetics,
durability, pre-shaded) No visible threat from substitution technologies
What is happening in the markets?
Straumann
Source: iData Research, US data, 2012 6 Straumann
2008
2014Implant specialistsGPs placing implantsGPs restoring implants
60 600
87 400GPs restorebut don’t place implants
15 900
29 700GPs place implants
GPs are increasingly important and have different preferences and needs
4
Resolute cost reduction measures bearing fruit without impairing selling power
7
REVENUE KEY PERFORMANCE H1 GROSS MARGIN
CHF 355m +6% (organic l.c.) 78%Slightly down on prior year despite acceleration in Q2
in N. America (+11% in Q2);Europe and Japan remain difficult
Margin expansion through efficiency gains in manufacturing
OPERATING INCOME MARGIN1 HEADCOUNT STRATEGY
18% 2313 Customer-driven solutions
EBIT lifted by initial results from cost optimization measures
Reduction program almostcomplete; some employment contracts still running out
Addressing changed market dynamics and unexploited growth markets
Straumann 1 Excluding cost optimization program costs
Thomas DressendörferCFO
Business and regional review
5
in CHF million Change
FX adjustedexcl.
exceptionalsvs. adjusted
Net Revenue 361.7 361.0 354.8 (1.7%)
Gross profit 278.4 277.4 276.2
Gross profit margin 77.0% 76.9% 77.8%
EBITDA 71.0 70.6 74.5 80.0
EBITDA margin 19.6% 19.6% 21.0% 22.5% (2.9%)
Operating profit (EBIT) 54.6 54.1 56.8 62.3
EBIT margin 15.1% 15.0% 16.0% 17.6% 2.6%
Net profit 44.6 53.7
Net profit margin 12.3% 15.1%
Basic earnings per share (EPS) 2.88 3.48
Free Cash Flow 19.9 34.7
Free Cash Flow margin 5.5% 9.8%
H1 2012 H1 2013
Straumann
Margins improved on all levels
1 In 2013, Straumann adopted the revised International Accounting Standard 19 regarding employee benefits. The 2012 figures have been restated accordingly.
2 Throughout this presentation the term ‘exceptionals’ refers to restructuring charges of CHF 13 million and a decrease in pension obligations of CHF 7 million, both in H1 2013 and both related to cost reduction initiatives
3
1
9
2
77.0%
-0.1%
76.9%
-0.1%0.4%
-0.4%1.0%
77.8%
Gross profitH1 2012
FX effect Adjustedgross profit
H1 2011
Volume, Price& Mix
iTero effect Inventorychanges
Manufacturingefficency
gains
Gross profitH1 2013
Straumann 10
Gross margin improved despite lower top line
In % of revenue
1 Decreased proportion of gross margin dilutive iTero scanner sales
1
H1 2012
6
15.1%
-0.1%
15.0%
0.9%
2.2% -0.6%0.1%
17.6%
-1.6%
16.0%
EBIT marginH1 2012
FX effect FX adj. EBITmargin H1
2012
Higher grossprofit
SG&Asavings
Higher R&D Other income EBIT marginH1 2013
Exceptionals EBIT marginH1 2013
Straumann 11
SG&A savings lift EBIT margin
In % of revenue
1
2
1 One-time project costs of CHF 6m related to Straumann’s reorganization, Neodent transaction and IAS19
Large international clinical trials set new benchmark
Straumann 12
>1000 Straumann Bone Level implants evaluated in Europe, US and Australia
Implant survival rates of more than 98% in daily practice with practically no bone loss around implant.
Results considerably better than values reported in meta-analysis of studies with other implants
Results add to wealth of strong clinical evidence and provide clear reasons for patients and dentists to insist on Straumann rather than undocumented alternatives
7
15.1%
-0.1%
15.0%
0.9%
2.2% -0.6%0.1%
17.6%
-1.6%
16.0%
EBIT marginH1 2012
FX effect FX adj. EBITmargin H1
2012
Higher grossprofit
SG&Asavings
Higher R&D Other income EBIT marginH1 2013
Exceptionals EBIT marginH1 2013
Straumann 13
SG&A savings lift EBIT margin
In % of revenue
1
2
1 One-time project costs of CHF 6m related to Straumann’s reorganization, Neodent transaction and IAS192 Restructuring charges of CHF 13 million and a decrease in pension obligations of CHF 7 million
19.9
-0.6 -2.3
8.3
3.6
4.7 1.2
34.7
Free cash flowH1 2012
Lower grossprofit
OPEX (cash) Reducedworkingcapital
Lower CAPEX Less incometaxes paid
Others Free cash flowH1 2013
Straumann 14
Improved cash flow despite restructuring charges
FCF margin 9.8%
FCF margin 5.5%
In CHF million
Cash & equivalents 31 Dec 2012 CHF 141m
- Operating cash flow CHF 41m
- CAPEX (CHF 7m)
- Bond proceeds CHF 199m
- Dividend (CHF 58m)
- Others CHF 1m
Cash & equivalents 30 June 2013 CHF 317m
Related to restructuring
initiatives
8
15 Straumann
6.3%(3.9%) (1.6%) 0.7%
Change organic
North America partly offsets weakness in Europe
(0.2%) (0.8%)
2012 2013
(1.9%) in CHF
(0.9%) organic
In CHF million
361.7
(0.7) (3.0)
358.0
(8.0)5.5 (0.8) 0.1
354.8
Revenues H12012
FX Effect iTero Effect Revenues H12012 @ FX
2013
Europe NorthAmerica
APAC ROW Revenues H12013
Performance led by core implant business
Implants RegenerativesRestoratives / CADCAM
Straumann 16
9
17 Straumann
Strong growth in North America; Europe flat
56%
Revenue flat in Q2 (l.c. and organic)
All countries improve in Q2 and benefit from shift in selling days after disappointing start to the year (H1 -4%)
France, UK and Switzerland return to growth
0.2%
-7.7%-5.6%-5.3%
-7.0%
Q22013
Q12013
Q42012
Q32012
Q22012
Eu
rop
eN
ort
h A
mer
ica
10.6%
2.1%1.8%5.1%
7.0%
Q22013
Q12013
Q42012
Q32012
Q22012
Q2 organic revenues rise 11% (l.c.)
All businesses above previous year; Implants grow double-digit:
Pricing and product mix contribute to growth; fundamentals intact
Revenue change (organic)
55%
26%
Pie chart segment indicates regional sales contribution to the Group.
18 Straumann
Sequential improvements in APAC and RoW
56%
Q2 in line with prior year (l.c.)
Japan: implant market still to recover from negative public perception
Solid performances in China and Australia
0.9%
-4.4%-0.9%
-2.4%
4.2%
Q22013
Q12013
Q42012
Q32012
Q22012
Asi
aP
acif
icR
est
of
Wo
rld
1
4.1%
-2.6%
-10.4%
1.4%
-7.4%
Q22013
Q12013
Q42012
Q32012
Q22012
4% growth in Q2 (l.c.)
Mexico posts good growth, while region’s largest market, Brazil, reports sales in-line with prior-year
Distributor markets in the Middle East recovering gradually
14%
5%
1 Revenue contribution from Neodent will be included after consolidation in 2015.
Revenue change organic
10
Building for the future
Marco GadolaCEO
Our goal of better profitability…
Straumann 20
Underlying EBIT margin
15-20%
2008 2012 E2013 Mid term
10-15%
>15%
>20%
>25%
Straumann
Dental benchmark1
1 Peers comprise Nobel Biocare, Dentsply, Patterson, Henry Schein, Osstem, and Sirona.
10%
15%
20%
25%
11
... and how we will achieve it
Straumann 21
Cost reduction measures implemented in 2012 and 2013
Cost discipline inherent to new Straumann culture
New organizational set-up focusing on customer needs
Lean, high performance organization
Customer- and market-driven solutions
First projects to launch in Q4 2013
Address changed market
dynamics
Address value segment Increase presence in fast-
growing underpenetrated markets
Target unexploited
growth markets
Organization based on ‘bullish’ expectations, which have not materialized
Restorative franchise & GP segment neglected
Innovation and Development technically driven
Pure premium focus
Prior to 2012
2008 2012 2015
Moving forward
Organization adapted to market reality
Straumann 22
23612452
25752517
2431
2243 2230
FY 2010 FY 2011 Q3 2012 FY 2012 Q1 2013 Today FY 2013
≈140
≈200
Lean, high performance organization
Resizing Resizing
1 At the end of Q2, Straumann had a global workforce of 2313 including redundancies in subsidiaries where employment contracts finished ater 30 June.
1
12
... and how we will achieve it
Straumann 23
Cost reduction measures implemented in 2012 and 2013
Cost discipline inherent to new Straumann culture
New organizational set-up focusing on customer needs
Lean, high performance organization
Customer- and market-driven solutions
First projects to launch in Q4 2013
Address changed market
dynamics
Address value segment Increase presence in fast-
growing underpenetrated markets
Target unexploited
growth markets
Organization based on ‘bullish’ expectations, which have not materialized
Restorative franchise & GP segment neglected
Innovation and Development technically driven
Pure premium focus
Prior to 2012
2008 2012 2015
Moving forward
Tapping exciting growth opportunities... Target unexploited
growth markets
Single tooth Multiple tooth Edentulous
Ceramic implants
Simpleedentulous solutions
Smaller, less invasive implants
* Bubble size illustrates market volume potential Straumann 24
Implants for narrow spaces
Esthetic, fast implant solutions with single crown / small bridge
Standard implant solution
packages
Fixed immediate edentulous solutions
Low-tech
High-tech
13
affordability
Straumann 25
...with solutions to suit:
customer segments
local market conditions
Surgeons
GPs
Premium
Value
Spain
Target unexploited
growth markets
Outlook
14
Outlook 2013 and beyondBarring unforeseen circumstances
While positive developments are expected to continue in North America and other underpenetrated markets, Straumann expects the effects of the weak economy and consumer sentiment to continue in Europe, constraining overall revenue development in 2013.
Despite a shortfall in full-year revenue, the successful outcome of cost reduction initiatives will drive sustainable profitability improvements as anticipated, with the main savings beginning to have an impact in Q3.
In the mid term, Straumann aims to return to solid growth and a higher operating margin.
27 Straumann
Questions & answers
15
70
80
90
100
110
2012 2013
USDCHF EURCHF JPYCHF
EUR 21%
CHF 47%
Other 13% USD/CAD/AUD
19%
Other 21%
CHF 11%
EUR 41%
USD/CAD/AUD 27%
29
Slight currency headwind expected for the full year
Cost breakdown 20121
Revenue breakdown 2012
1 These distribution charts represent the total net revenues and the total COGS, SG&A costs as well as R&D expenses in the various currencies. All numbers are rounded and based on 2012 figures.
Straumann
Average exchange rates (rounded)
FY 2012 H1 2013
EURCHF 1.21 1.23
USDCHF 0.93 0.93
JPYCHF 1.17 0.99
Straumann’s major exchange rates since 2012 (indexed to 100)
Calendar of upcoming events
26 August Investor meetings Stockholm/Copenhagen
27 August Investor meetings Amsterdam/Brussels
28 August Investor meetings Frankfurt
04 September Goldman Sachs Medtech conference London
05 September Investor meetings London
16 September Investor meetings Geneva
17 September Investor meetings Vienna
30 September Investor meetings New York
01 October Investor meetings Boston
02 October Investor meetings Toronto
31 October Third quarter results Webcast
25 February Full-year results conference Basel
11 April Annual General Meeting Basel
Detailed calendar on www.straumann.com
Straumann 30
16
Straumann 31
Your contacts
Fabian Hildbrand
Corporate Investor Relations
Phone +41 (0)61 965 13 27
Mobile +41 (0)79 392 80 32
Email [email protected]
Mark Hill Thomas Konrad
Corporate Communications
Phone +41 (0)61 965 13 21 Phone +41 (0)61 965 15 46
Email [email protected] Email [email protected]