Investor Day Mahwah, New Jersey 26 September Domenico Scala CEO

Transcription

1 Investor Day Mahwah, New Jersey 26 September 2007 Domenico Scala CEO

2 Management team with strong track record

3 Undisputed market leader Focused dental solution provider Root-to-tooth solutions: the one-stop shop for dental restoration Number 1 position worldwide Nobel Biocare 37% Strongest global presence Leading in science, innovation and education 3 Source: MRG, Nobel Biocare estimates

4 Outgrowing the market H1 Revenue growth 30% 25% 20% 15% 10% 5% 24.0% 24.4% 22.0% 19.0% major competitors 20.0% 13 consecutive quarters of +20% revenue growth* Revenue doubled in 5 years H revenue growth twice as fast as next competitor 0% H Source: Nobel Biocare financial reports, competitor information * In local currencies 4

5 Significant operational leverage H1 EBIT margin 40% 35% 30% 25% 20% 15% 10% 26,1% 29,6% 33,5% 34,0% 32,0% Industry leading EBIT margin Economies of scale Further EBIT margin improvement expected 5% 0% H Free Cash Flow significant 5 Source: Nobel Biocare financial reports

6 Sustained shareholder returns Total share returns in mn CHF % +66% +45% +29% Continued shareholder orientation Return through share price appreciation, dividends and share buyback Share appreciation Dividend Share buyback : 7.8 bn CHF returned to shareholders 6 Source: Nobel Biocare financial reports

7 Guided surgery 7 Providing integrated root-to-tooth solutions Unmatched breadth of offering CAD/CAM Individual prosthetics Crown & Bridge Evolving market Uniquely positioned through solution concepts for each segment Implants, Standardized Prosthetics Procera with untapped potential Tissue Regeneration Biologics Procera

8 Most attractive segment in health care 3-5 years growth % Prem. Tooth Replac. Hearing Aids Adv. Wound Endoscopy Growth 2010E Prem. Tooth Replac. Orthopaedics Cardiovascular Best sector today and tomorrow Unaffected by health care reforms Attractive profession New products/solutions an essential factor 0 Mature Size of industry USD billion 8 Source: Deutsche Bank

9 Further growth acceleration through conversion potential Total dental market size ~17.5bn USD (2006) Nobel Biocare served market ~ 3.5bn USD (2006) PFM CAGR ~0.2% Conversion Individualized Products (All-ceramic CAD/CAM C&B, Laminates) CAGR ~40%* Consumables Est. annual growth ~ 5% Pharmaceuticals Est. annual growth ~5% Equipment Est. annual growth ~12% Digitalisation Standardized Products (Implants, abutments) CAGR ~16%** * ** Source: MRG, Nobel Biocare estimates, competitor information 9

10 Leading total dental solution provider Promise Beautiful Teeth Now TM Clinical Solutions: NobelGuide TM Teeth in an hour TM All on 4 Clinical Concepts EasyEstethics TM Soft Tissue Integration TM Immediate Function TM Product recipes and tools Standard products Individualized products 10

11 Covering all aspects of dental restorations Implants, Implants Prosthetics Tissue Regeneration Crown & Bridge CAD/CAM Integrated Individual Guided Prosthetics Surgery Biologics Implant Retained Maxillofacial Concept Nobel Biocare Competitor 1 Competitor 2 Competitor 3 Competitor 4 11

12 Market factors driving growth Market penetration Geographic expansion Individualized products Demography Standardized products Esthetics and lifestyle 12

13 Building from existing strategy Demographic and geographic opportunities Innovation based on scientific evidence From products to individualized solutions provider Drive and capture market growth Evolving market requiring differentiated approach 13

14 Demographic and geographic opportunities USA & Canada Edentulous population 22m (>65 years) Implant market size (USDm, 2011) CAD/CAM market size 974 (USDm, 2009) Western Europe & Russia Edentulous population 28m (>65 years) Implant market size (USDm, 2011) CAD/CAM market size 300 (Europe ex-russia, US$m, 2009) Rest of the world 31% of world population Avg. 6-10% of total world population Edentulous in both jaws Asia Pacific Edentulous population 36m (>65 years) Implant market size* 909 (USDm, 2011) CAD/CAM market size 36 (Japan, USDm, 2009) * Australia, Japan, South Korea, China, India Source: MRG (Europe as defined by MRG). 14

15 Strongest patent portfolio in the industry Dental Implants and Prosthetics US Patents and Applications EP Patents and Applications World Applications Japanese Applications 373 patents and applications on dental implants and prosthetics patents on other Crown and Bridge and CAD/CAM 0 Nobel Biocare Straumann 3i Zimmer Astra Tech Camlog Dentsply Source: Nerac ARE database 15

16 Innovation based on scientific evidence Clinical research Clinical investigations proof of concepts and pilot studies Clinical applications multicenter and claim support studies All products launched backed by min. 1-year human clinical data from multicenter studies 12 multicenter clinical studies per year All products launched with FDA clearance 23 research staff in clinical research Capability for 12 multi-center clinical studies per year 16

17 Evolving market requiring differentiated approach Specialists Dental Laboratories Denturists General Practitioners Periodontists Endodontists Implantologists Patients 17

18 Take-aways Most attractive segment in health care Increasing implant penetration is outpaced by demographic development Market leader, consistently outperforming Individualized products: substantial upside potential One-stop-shop ideal for changing market dynamics Leading in patents and scientific evidence Continued shareholder orientation 18

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20 Investor Day Mahwah, New Jersey 26 September 2007 Robert Gottlander Executive Vice President Global Marketing & Product Management 20

21 making you smile 21

22 My new smile completely transformed me - Ms. Ustra NobelReplace Tapered Procera Zirconia Abutment Procera Crown Procera Laminates 22 Case courtesy of: Dr. Adauto de Freitas, Dr. Marcelo Kyrillos and Dr. Marcelo Moreira, Brazil Surgeon: Dr. Adauto de Freitas, Brazil Dental Technician: Hélio Laudelino Gonçalves de Oliveira, Brazil Patient Case - Cibele Ustra, Brazil

23 My new smile completely transformed me - Ms. Ustra 23 Case courtesy of: Dr. Adauto de Freitas, Dr. Marcelo Kyrillos and Dr. Marcelo Moreira, Brazil Surgeon: Dr. Adauto de Freitas, Brazil Dental Technician: Hélio Laudelino Gonçalves de Oliveira, Brazil Patient Case - Cibele Ustra, Brazil

24 I feel much better about myself. Ms. Ugarte Procera Bridge Procera Crowns Procera Laminates 24 Case courtesy of: Dr. Iñaki Gamborena, Spain Dental Technician: Iñigo Casares, Spain Patient Case - Beatriz Lorrañtaga Ugarte, Spain

25 I feel much better about myself. Ms. Ugarte 25 Case courtesy of: Dr. Iñaki Gamborena, Spain Dental Technician: Iñigo Casares, Spain Patient Case - Beatriz Lorrañtaga Ugarte, Spain

26 I can eat, talk and smile in a way I haven t been able to in a long time. Mr. Arribas NobelReplace Tapered Groovy Procera Abutments Zirconia Procera Crowns Alumina and Zirconia 26 Case courtesy of: Dr. Iñaki Gamborena, Spain Surgeon: Dr. Pedro Peña, Spain Dental Technician: Dale Danny, USA Patient Case - José Peña Arribas, Spain

27 Major innovations over the years 1953 Osseointegration 1965 Inventor of modern implantology 1985 Procera Crown 1988 Inventor of CAD/CAM in dentistry 1988 Esthethic abutment 1989 CeraOne 1990 Self-threading implant 1992 Procera all-ceramic crown 1993 Procera Scanner 1994 Ceramic abutment 1997 Tapered implant Replace 1998 Procera CAD/CAM abutment 2000 TiUnite 2001 Inventor of IT-based rehabilitation, the Teeth-in-an-hour concept 2003 Scalloped implant NobelPerfect 2004 One-piece implant NobelDirect Immediate Function - FDA clearance 2005 Soft Tissue Integration Easy Esthetics NobelGuide Groovy NobelSpeedy / Shorty 2006 NobelSmile Procera Laminate 2007 Implant Retained Maxillofacial rehabilitation NobelActive Curvy Abutment 27

28 Guided surgery Providing integrated root-to-tooth solutions Unmatched breadth of offering CAD/CAM Individual prosthetics Crown & Bridge Evolving market Uniquely positioned through solution concepts for each segment Implants, Standardized Prosthetics Procera with untapped potential Tissue Regeneration Biologics Procera 28

29 Most comprehensive implant offering Tapered Implants Implants, Standardized prosthetics NobelReplace Tapered Groovy Replace Select Tapered NobelDirect NobelDirect Groovy NobelDirect Oval NobelDirect Posterior NobelDirect 3.0 NobelPerfect Groovy Parallel-walled Implants Brånemark System Groovy 29 Brånemark System MkIII and MkIV NobelSpeedy Groovy NobelSpeedy Replace Replace NobelReplace Select Straight Straight Groovy Shorty Implant Brånemark System Zygoma TiUnite

30 Bone level implants Tapered Implants Implants, Standardized prosthetics NobelReplace Tapered Groovy Replace Select Tapered Parallel-walled Implants Brånemark System Groovy 30 Brånemark System MkIII and MkIV NobelSpeedy Groovy NobelSpeedy Replace Replace NobelReplace Select Straight Straight Groovy Shorty Implant Brånemark System Zygoma TiUnite

31 TiUnite the osseoconductive biomaterial Immediate Function More than 99 clinical studies performed* Groovy 30% higher initial stability Biologics TiUnite Tissue Regeneration Groovy Nobel Biocare, TiUnite New Dimensions, 2007 Nobel Biocare, TiUnite New Dimensions, * Hall J, Miranda-Burgos P, Sennerby L. Stimulation of directed bone growth at oxidized titanium implants by macroscopic grooves: an in vivo study. Clin Implant Dent Relat Res, 2005;7 Suppl 1:S76-82.

32 The most scientifically documented implant solution 5-year clinical data Nobel Biocare Astra Tech Straumann/ITI Biomet 3i Source: Medline August, 2007, Official company information, August

33 Complete prosthetics offering Crown & Bridge Procera Laminate Alumina Procera Crown Alumina or Zirconia Procera Maryland Bridge Procera Bridge Alumina or Zirconia Procera Implant Bridge Zirconia or Titanium Temporary Solutions Procera Abutment Zirconia or Titanium Standard Abutments NobelRondo NobelRondo Press NobelRondo Press Solo 33

34 Materials for every indication Crown & Bridge Alumina for the most outstanding light transmission in the esthetic zone Zirconia for the higher load situations Zirconia Alumina 34

35 The key to state-of-the-art production facilities CAD/CAM Individual prosthetics Widest Range of applications- single copings, laminates, abutments, ceramic bridges Cost-effective and profitable - short production time Procera Piccolo Procera Forte 35

36 NobelGuide digital planning & delivery system Guided Surgery NobelGuide individualized solutions for customization even down to single implants covers from single tooth to fully edentulous totally integrated digitally based manufacturing process for individual products 36

37 Leading total dental solution provider Promise Beautiful Teeth Now TM Clinical Solutions: NobelGuide TM Teeth in an hour TM All on 4 Clinical Concepts EasyEstethics TM Soft Tissue Integration TM Immediate Function TM Product recipes and tools Standard products Individualized products 37

38 Evolving markets require differentiated approach Specialists (~10%*) Dental Laboratories Denturists General Practitioners (~90%*) Implantologists Patients 38 * Source: MRG, 2007

39 Evolving markets require differentiated approach Specialists (~10%*) Dental Laboratories Denturists Clinical Chains General Practitioners (~90%*) Total Solution Provider Implantologists Patients 39 * Source: MRG, 2007

40 Unique innovative offer for specialists Advanced solutions and concepts Implant Retained Maxillofacial Concept NobelActive NobelGuide Zygoma Versatility of implant solutions Parallelled and tapered Internal and external connection One and two piece implants Prosthetic solutions For natural teeth and implants Standardized and individualized /Procera CAD/CAM Choice of materials Evidence based solutions Immediate Function Soft Tissue Integration Easy Esthetics University Partnerships R&D Co-operation Clinical research 40 Post-graduate/Continuing Education P I Brånemark

41 Key initiatives to expand the GP market Advanced solutions for natural teeth Procera CAD/CAM for individualized esthetics Predictable solutions for implants NobelReplace Individualized and standardized abutments NobelGuide Prosthetic solutions For natural teeth and implants Standardized and individualized /Procera CAD/CAM Choice of materials Evidence based solutions Immediate Function Soft Tissue Integration Easy Esthetics Training & Education / Support University Partnerships Total of 18 world leading dental universities 41

42 Training and education for market growth Training program for all segments Speaker development program k trained ,700 dental students graduate each year from partnership universities 6,800 students in education today through the partnership programs 42

43 Key initiatives to expand the dental laboratories market New business opportunities with Procera and new technologies Low investment access to integrated state-of-the-art manufacturing facilities Security and reliability of outsourcing partnership Copings (alumina - anterior) Copings (zirconia) Abutments (titanium) Procera Forte x x x Procera Piccolo x x x 3M ESPE LAVA x Cercon x Etkon x x Procera Network partnership Abutments (zirconia) x x x x Prosthetic solutions For natural teeth and implants Standardized and individualized /Procera CAD/CAM Zirconia bridges (max mm) Alumina bridges (2-4 units) Implant bridges (titanium) Implant bridges (zirconia) 60 x x x x Choice of materials Laminates x x x NobelGuide NobelRondo Source: Official Nobel Biocare information, 2007 NobelRondo Press 43

44 Creating demand through patient awareness, education NobelSmile in 35 markets Truck tour Patient seminars/events Information packages for patients Direct-to-consumer marketing TV commercials Spokespersons 44 Daniele Suzuki, Brazil Inge De Bruijn, The Netherlands Towako Kimishima, Japan

45 Find a Nobel Biocare Dentist on NobelSmile web Find a Dentist search function Accessible from all pages on the web site Based on the patient s dental need Chipped tooth Cracked tooth Missing teeth Crocked teeth Cosmetic problems Crown/filling problems Help with dentures Find a dentist 45

46 Number one in dental web communication Global in 8 languages 21 local websites NobelSmile websites for 35 countries 19 languages Global T&E Courses in 17 languages 28 countries 600 courses posted on web Shop Online 23 markets visits/year Potential and existing customers visit NobelBiocare.com Potential patients visit NobelSmile.com 7:06 minutes - the average visit at NobelBiocare.com hours of high quality sales time per year, where the customer is taking the initiative 6:35 minutes - the average visit at NobelSmile.com hours to educate patients on how they can benefit from our solutions 46

47 Take-aways Unique innovative offer for specialists Key initiatives to expand the GP market Key initiatives to expand the dental laboratories market Creating demand through patient awareness, education Drive and capture market growth Training and education for market growth 47

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49 Investor Day Mahwah, New Jersey 26 September 2007 Kevin Mosher Vice President & General Manager Nobel Biocare North America 49

50 Market growth outpaces penetration rate North America Growing US edentulous population 110 million missing one or more teeth * 42 million people fully edentulous in one or both arches ** 45 million teeth extracted each year *** 2.5 to 3 million teeth lost due to trauma each year *** million crown units placed in North America each year **** k 40'000 38'000 36'000 34'000 32'000 30' Sources: * Kalorama Information, May 2005, ADA/CDA, **Chester W. Douglass, DMD, PhD, et al, The Journal of Prosthetic Dentistry, January 2002; *** The 1999 Survey of Dental Services Rendered, ADA. September 2002, Nobel Biocare est. **** idata Market Research, July 2007 ; MRG

51 Demographic development ensures sustainable demand Fully edentulous in one or both jaws by age group (Yrs) '770 3'841 2'928 2' '612 7'332 7'711 5' '667 7'836 10'232 10' '675 6'837 7'054 9' '166 6'613 5'934 6' '900 2'287 2'654 2'681 Total 33'648 35'416 37'126 37'886 #s in 1,000s 61 million edentulous arches by 2020! Source: Chester W. Douglass, DMD, PhD, et al, The Journal of Prosthetic Dentistry, January

52 GP is critical to serve unmet and increasing need 4% 3% 8% 82% 2% 1% Oral Surgeons 7,170 Periodontists 5,458 Dental laboratories 14,100 Prosthodontists 3,609 Denturists (Canada) 1,155 General Practitioners 155,245 Source: American Dental Association, 2004 Distribution of Dentists; idata Research Inc, July 2007; Canadian Dental Association; 2002 ADA Survey 52

53 Revenue doubled, market share increased Increased share within specialty segment Expanded implant customer base within GP segment Expanded the C&B share within GP/Lab segment Initiated direct-to-consumer campaigns H1 2007: sustained growth in GP, slow down in specialty Growth rates H Nobel Biocare 17% 35% 23% Market 18% 20% 17% 10% 11% 53 Source: MRG, idata Research Inc, Reported company results, Nobel Biocare estimates

54 Outgrowing competitors in all customer segments Nobel Biocare dental implant market share 2006 (in USD) Dentsply, 3% Astra Tech, 4% Lifecore, 3% BioHorizon, 4% Others 9% Nobel Biocare 35% 8% points share gain, Twice the share of closest competitor Zimmer Dental 14% Largest Specialty and GP segments of any company 3i 14% Straumann 16% 54 Source: MRG, idata Research Inc, ADA, Reported results, Nobel Biocare estimates

55 Converging trends will change implant dentistry More patient friendly procedures Insurance coverage Education Generational change Direct-to-consumer advertising Information transparency 55

56 Key take-aways: Market opportunity is enormous and growing Conventional clinical delivery model is inflexible Delivery model is evolving to align with patient values Drive and capture market growth Market shift favors value-added, total solutions suppliers 56

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58 Investor Day Mahwah, New Jersey 26 September 2007 Jacques Gutedel VP Europe, Middle East and Africa

59 European markets require distinctive approaches Different market conditions Number of patients per dentists vary by country Italy: very fragmented market Consolidation of labs vary by country Reimbursement in Sweden, Germany and in Netherlands Russia Germany France UK Italy Spain Netherlands Sweden Switzerland # of patients per dentist mio inhabitants 59 Source: MRG, ADDE 2004, FiDE 2004 and WHO

60 Increasing penetration to Italian level would double market Number of implants per 10,000 inhabitants Italy* Spain* Sweden* Switzerland* Germany Belgium Netherlands Austria France Finland Norway Denmark UK* Russia Poland 60 Source: Nobel Biocare estimates, * MRG and WHO, 2006

61 All-ceramic CAD/CAM: outpacing implant market growth 2005 Market size ~1.6bn USD 2009 Forecasted market size ~1.8 bn USD ~6% ~8% +140% ~5% ~17% ~86% ~78% PFM All-ceramic conventional All-ceramic CAD/CAM** Source: MRG, Germany, Spain, Italy, France, UK, Switzerland, Sweden ** excl. laminates 61

62 Number 1 position in EMEA 62 Market leadership in 14 of 18 direct countries Outgrowing market since : Launch of new solutions 2006: 9 World Tour stops Direct organizations in Western Europe, Poland, Russia and Baltics Undergraduate partnership with University of Freiburg (Ger) 20 distributors in 33 countries Source: Nobel Biocare financial reports and MRG Revenue growth EMEA H Dentsply 10% AstraTech 6% Other 22% Zimmer 6% Biomet/3i 11% Nobel Biocare 23% Strauman n 22%

63 Strategic direction going forward Adapt our solution offering to the distinctive markets Tapered implant courses for starter in underpenetrated markets Focus on All-on-Four solution in countries with high edentulous patients High end esthetic courses and Procera Roadshow Focus on solutions which will allow the dentist to treat more patients Add universities with high reputation into our partnership program Focus on scientific evidence Post Market Surveillance studies, e-registry Sales and marketing excellence to support those actions 63

64 Geographical expansion in EMEA Expand our direct presence Establish presence in unserved markets with distributors Consolidate our market leader position in Middle East Eastern Europe >150m North Africa >180m Middle East >150m Russia >140m Population Capitalize on our market leadership position in Russia 64 Source: UN population division, 2005

65 Capitalize on recently achieved no 1 position in Russia Implant market shares in Russia 2006 Nobel Biocare the only direct dental company Other (foreign) 17% Other (local) 4% Nobel Biocare 18% Focus on clinical education and training World Tour in December Sales force expansion Zimmer 5% 3i 5% Alfa Bio 13% Conmet 7% BioHorizons 9% Dentsply 7% Straumann 7% AstraTech 8% Source: MRG 65

66 Emerging Russian market Implant market CAGR % Market growth in 2006: 41% Nobel Biocare growth 86% Growth Nobel Biocare H1 2007: >100% USD m All-ceramic CAD/CAM market just starting Source: MRG, Nobel Biocare estimates 66

67 Take-aways EMEA Huge opportunities in C&B&I Tailor our offering to the distinctive market needs Scientific evidence Drive and capture market growth Geographical expansion 67

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69 Investor Day Mahwah, New Jersey 26 September 2007 Tom Olsen Vice President Latin America, Asia/Pacific

70 Uncovering huge market potential in Asia 100 k Dentist population in Asia Edentulism in Asia % edentulous* k edentulous China 11% 14, India 19% 10, Japan 20% 4,000 Indonesia 24% 3, Vietnam 23% 1,100 South Korea 22% Thailand 16% Japan India China Korea Australia Malaysia 57% 690 Hong Kong 20% 160 Total 35,820 GP Specialists Source: MRG, WHO and Nobel Biocare estimates * >65 years, ** Australia, Japan, South Korea, China, India 70

71 Benefitting from very low market penetration Number of implants per 10,000 inhabitants Italy* Spain* Sweden* S. Korea Switzerland* Germany USA* Japan* Australia Brazil Hong Kong Canada Thailand China In k Japan China India Population Income over USD Edentulous Missing teeth Consumer of luxury items in the world 2nd 3rd 71 Source: Nobel Biocare Estimates 2006, * MRG and WHO, 2006

72 Setting the pace in Asian markets First mover advantage Revenue growth APAC Leading market development initiatives Market leader in 13 of the 14 countries we serve Strong base in distribution markets such as Taiwan, Vietnam and Thailand University partnerships High growth momentum (41%, H1 2007) 50% 40% 30% 20% 10% 0% CAGR ~35% H Source: MRG and Nobel Biocare financial reports and estimates

73 Building the future Continue expansion in emerging markets Scalable and efficient regional infrastructure Leverage from Japanese production facility Market focus on Japan, China and India Strengthen brand position Differentiation with new solutions Expand education capacity 73

74 Japan outstanding growth in implants and high-end esthetic solutions Implant market CAGR % USD m Quarterly growth Nobel Biocare last two years: avg. 37% % CAD/CAM All-Ceramic 2% Conventional All-Ceramic CAGR 41.5% 3% 3% PFM Source: MRG 74 Market value USD 1.2bn

75 Tapping huge potentials in China and India China Leading market share Privatization of hospitals, rapid expansion of private clinics Training and Education initiatives USD mio Implant market CAGR % India Leading market share Focused university programs Expand education capacity USD mio Implant market CAGR % 75 Source: MRG

76 Potential in South American countries to be developed Population k Population No. of dentists Brazil Mexico Colombia Argentina Chile Peru Venezuela Uruguay, Bolivia, Paraguay Ecuador No. of dentists Direct markets 76 Source: MRG

77 Latin America building on a strong position Only global dental company with direct organizations in top 5 countries Growth more than twice the market rate Number one in all markets in terms of market share Training centers in all key markets Well positioned for further expansion 77

78 Latin America Key initiatives Mexico and Brazil key focus countries Sales organization expansion in direct markets Drive mix change to new solutions Develop untapped emerging markets in Central and South America Leverage regional synergies for South America Increase education capacity 78

79 Initiatives Asia & Latin America Drive further expansion in emerging markets Focus on key markets: Japan, China, India Brazil, Mexico Leverage regional strengths for faster penetration Drive and capture market growth Expand training and education capacity 79

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