Capture the full market potential Peter Hackel, CFO Flims, 17 - - PowerPoint PPT Presentation

Capture the full market potential

Peter Hackel, CFO

Flims, 17 January 2020

Looking back –

Financial performance Q3 2019 and

• ur track record

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Strong momentum sustained over nine months; full-year revenue target raised

REVENUE REVENUE GROWTH REGIONAL DRIVERS

CHF 1.2bn

+17% organic1

NAM & EMEA

+16% vs 9M 2018 FX headwind CHF 20m Acquisition effect: CHF 14m Q3: +19% organic, +21% in CHF Q2: +16% organic; +14% in CHF Q1: +17% organic; +15% in CHF generate 68% of 9M growth; NAM edges ahead of APAC as fastest growing region

BUSINESS DRIVERS INVESTMENTS OUTLOOK2

Rollouts

Reach & Capacity

Raised

BLT & BLX, clear aligners, value brand rollouts, supply agreements with DSOs Distribution JV in Hong Kong & Macau; Korean implants; Implant & clear aligner production Full-year organic revenue growth in the mid- teen percentage range

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

Double-digit growth continues in all regions

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20.2 14.4 56.7 57.6 37.9 15.7 1’151.1

Revenues 9M 2019 Revenues 9M 2018 North America FX effect APAC

989.0

EMEA

983.2

LATAM Revenues 9M 2018 @ FX 2019 M&A effect

16.4% CHF 17.1%

• rganic

Revenue development (CHFm, rounded)

Change in organic growth

19.9% 18.1% 13.5% 20.4%

34% 34% 23% 9%

LATAM APAC North America EMEA

Regional share of

• rganic growth

9.1 13.1 15.7 18.9 16.3

2015 2016 2017 2018 H1 2019

27.6% 28.3% 29.3% 29.6% 31.5%

100 200 300 400 2015 2016 2017 2018 H1 2019

EBITDA excl. exceptionals Exceptionals Underlying margin

H1 2019 5-year performance

5-year organic revenue growth 5-year EBITDA1 (in CHF m) and margin

Market growth est. 4-5%

Av e r a g e + 1 5 % + 3 . 9 % - p o i n t s

5 1 Adjusted for non-recurring or exceptional effects if applicable.

Success factors

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 14.0

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Preventive dentistry represents ~2bn market opportunity

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 4.5 Mid-single digits CAD/CAM equipment2 1.5 Double digits CAD/CAM prosthetics 3.9 Double digits

(All ceramic)

Clear aligners 2.6 >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.

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Targeted investments in high growth markets

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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

Reputation as innovation leader underpinned

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12 19

Roxolid implant material

13 14

PURE ceramic 1-piece implant Variobase abutments BLT implant

15 16

ProArch edentulous solution N!ce fully-crystallized glass-ceramic Grand Morse Grand Morse implant Grand Morse Mini implant PURE 2-piece ceramic implant

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BLX implant Small diameter implant ( 2.9mm) Short implant (4mm) Roxolid-on-all Chairside 3D printing

Looking ahead –

recent achievements and strategy in action

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Premium Upper value Lower value

Global implant & abutment market

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Multi-pricing strategy – comprehensive portfolio

• f value implant brands

Neodent, Anthogyr, Medentika

~CHF 4.5 bn

Straumann Group share (2018)

Zinedent, T-Plus, equinox

BLX – highly appealing to customers

▪ Full market release in most key markets except for China, Japan, Russia and Turkey ▪ 70 000 BLX implants sold in in the first 9 months, despite aggressive competitor promotions ▪ Many new customers attracted by BLX who then also bought BLT ▪ Innovative, next-generation BLX implant, priced at a premium to Straumann’s popular BLT range

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Current Straumann Group market share

1 out of 4 implants have a fully tapered design

Market 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

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Unlocking the potential of clear aligners

▪ Market worth CHF 2.6bn; expected to grow >25% ▪ 60% case growth in North America in Q3 ▪ Direct-to-patient expected to outpace conventional approach ▪ Partnership with Smyletec to address Chinese market ▪ Production capacity expension in Round Rock (USA) ▪ New production units in Curitiba (Brazil) and Markkleeberg (Germany) ▪ Orthodontic planning service acquired ▪ Orthodontic materials company acquired

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The right to win in clear aligners

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Intra-oral scanning and software appl. Treatment planning 3D model printing Production

   

• Dental Wings
• 3Shape
• Carestream

Digital Planning Service Private Ltd. Rapidshape

• Round Rock
• Curitiba
• Markkleeberg
• Tianjin

Materials Patient monitoring Brands to address global market Sales network and reach

   

• Yller
• Bay Materials

Dental Monitoring (DenToGo) Global organization to address all customer groups

Digitalization happening at tremendous speed

▪ In 5 years’ time one in two dental clinics is forecast to have an intraoral scanner (IOS) corresponding to a potential market of 300 000 scanners ▪ Approx. 65% of practices expect to invest in a digital impression system in the next 3 years ▪ Orthodontists and implant surgeons have the highest buying intentions

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100% 50%

Global penetration 18’

13%

15’ 16’17’18’

• Est. global reach:

2024

24’

IOS penetration follows classical S-curve

Getting fit for the future

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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

Strong culture as foundation for success

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VISION More than creating smiles – restoring confidence We want to be the partner of choice in esthetic dentistry CULTURE Player-learner mindset Core behaviors

3 strategic priorities 9 must-win battles >5000 people to make it happen 55 must-win initiatives

STRATEGY HOW WHAT WHY

Thank You!

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