2013 First-quarter results

Transcription

1 2013 First-quarter results Analysts & Media Conference Call Basel, 30 April 2013 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 release 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 1

2 Highlights Marco Gadola CEO What is happening in the market? No improvement in economic environment or consumer sentiment in Europe and major Asian markets Emerging markets continue to perform well Value & low-cost segment has outpaced premium globally Continuing substitution of standard prosthetics by individualized CADCAM solutions Global dental implant market (2012: ~CHF 3bn) ccccccccccccccccc cccccccccc 68-70% 30-32% ~61% ~39% Premium segment Value & low cost segment 4 2

3 Straumann s response Investment focus on high-growth markets Solutions to reduce overall treatment costs and lab equipment investments (CARES Scan & Shape service) Penetrate value segment by leveraging Neodent and exploring commercial approaches within existing portfolio Expand the reach & accessibility of our CADCAM franchise Cost optimization program stepped up 5 Highlights in Q Group revenue Change in CHF Change organic 1 CHF175m -6% -5% excluding itero effect Best performer Headcount target Financial flexibility N. America +2% organic growth matches record level of sales in prior first quarter Approx by year-end; cost reduction program significantly intensified CHF 200m raised in inaugural bond placement 1 Throughout this presentation the term organic change will be used, which excludes the effects of currency fluctuation and the discontinuation of intra-oral scanner distribution business announced in October

4 Business performance Thomas Dressendörfer CFO Tough environment in Europe hinders return to growth in CHF m (5.6%) in CHF (4.7%) in organic Change organic (-0.1%) (0.8%) (7.7%) +2.1% (4.4%) (2.6%) Q1 revenue FX Effect itero Effect Q FX Europe North America APAC ROW Q1 revenue 8 4

5 Regeneratives outpace replacement and restorative businesses Implants Restoratives Regeneratives 9 Growth intact in N. America; Europe struggles further Revenue change organic Revenue contracts 8% (l.c. and organic) Europe 56% 56% -7.0% -5.3% -6.3% -7.7% Q Q Q Q Weak consumer sentiment slows region Stiff competition in Italy and Spain Germany and Switzerland also struggled in Q1 North America 26% 7.0% 5.1% 0.0% 2.1% Revenue flat in l.c.; organic revenue grows 2% Implant and regenerative businesses grow moderately Q Q Q Q Fundamentals remain intact Pie chart segment indicates regional revenue portion of the Group. 10 5

6 APAC slows while RoW picks up Asia Pacific 13% Revenue change organic 4.2% 56% -1.0% -2.4% -4.4% 4% contraction in l.c. Japan: perception of implant dentistry tarnished by media and will take time to restore Solid performances in China and Australia Q Q Q Q Rest of World 1 5% -7.4% Q % Q % -10.4% Q Q % contraction in l.c. Difficult conditions continue in Middle East Brazil posts good growth 1 Revenue contribution from Neodent will be included after consolidation in BBB stable rating 1 used for successful bond placement Inaugural 7-year domestic straight bond issue oversubscribed CHF 200 million raised with coupon of 1.625% (all-in cost: 1.695%) Added liquidity will enable Straumann to increase Neodent stake in coming years without compromising independence or scope for other attractive investment opportunities Strong balance sheet despite significant acquisition activities Listing on the SIX Swiss Exchange Allocation by investor type Insurance 28% Asset Management 21% Private banks 35% Pension funds 12% Treasury 4% 1 Internal bank rating of lead bookrunner 12 6

7 Shaping the future Multiple enhancements to save treatment time and cost launched at IDS and Chicago Midwinter CARES Scan & Shape CARES System 8.0 CARES X-Stream SFI Anchor Full-contour zirconia zerion HT Indication-Based Product Selection Guide Loxim implant transfer piece Sterile healing Straumann 14 7

8 Resizing for a changed market FY 2010 FY 2011 Q FY 2012 Q FY 2013 Initial reduction measures announced 200 Current organization built based on bullish market growth expectations, which have not materialized In view of current developments and mid-term economic outlook, today s staff level and cost base are no longer sustainable As part of our drive to reduce operational costs, we are targeting a headcount of approx by year end 15 Adjusting our cost base to current market conditions Reductions mainly in non-sales functions and non-essential activities, without compromising our standard of quality, innovation and service Majority of reductions (approx. 110) at global headquarters Cost reduction program will result in exceptional charges of CHF 18-20m in 2013 Despite resizing, we will continue to have a strong, competitive team of professionals to drive our business in the future 16 8

9 Organizational structure simplified and adapted to focus more on customer needs and solutions Executive Management Board (as of May 2013) Marco Gadola CEO Guillaume Daniellot Sales Western Europe & LATAM Wolfgang Becker Sales Central Europe Andy Molnar Sales North America Dr Alexander Ochsner Sales APAC Thomas Dressendörfer Finance & IT Frank Hemm Customer Solutions & Marketing Dr Gerhard Bauer Operations, Research & Development Dr Sandro Matter Strategic Projects & Alliances 17 Outlook Barring unforeseen circumstances Straumann expects the effects of the weak economy and consumer sentiment to continue in Europe, while attractive markets like North America, China and Brazil should perform well. Based on the overall business fundamentals, strategic plan and cost optimization, the Group assumes that it will be able to deliver improved profit levels 1 in 2013, even if the market remains sluggish. In the mid term, it aims to return to solid growth and a significantly higher operating margin. 1 Excluding exceptionals / charges for cost optimization program in both years. 18 9

10 Questions? Calendar of upcoming corporate events 30 April Q1 sales Webcast 20 August Q2 sales and H1 results Basel, Conference 31 October Q3 sales Webcast Detailed calendar on

11 Your contacts Fabian Hildbrand Corporate Investor Relations Phone +41 (0) Mobile +41 (0) Mark Hill Thomas Konrad Corporate Communications Phone +41 (0) Phone +41 (0) Net revenue growth Q CHF million Europe growth in % CHF growth in % l.c. North America growth in % CHF growth in % l.c. Asia / Pacific growth in % CHF growth in % l.c. Rest of the World growth in % CHF growth in % l.c. Group growth in % CHF growth in % l.c. Q (6.5) (2.1) (1.9) (2.4) (1.8) 1.6 Q (7.5) (8.4) (9.3) (4.4) 8.3 (6.6) (2.6) (5.6) (5.5) 22 11

12 Currency impact to neutralize throughout the year Other 21% Revenue breakdown 2012 CHF 11% EUR 41% Average exchange rates (rounded) FY 2011 FY 2012 EURCHF USDCHF JPYCHF USD/CAD/AUD 27% Straumann s major exchange rates since 2012 (indexed to 100) 110 CHF 47% Cost breakdown EUR 21% 80 Other 13% USD/CAD/AUD 19% USDCHF EURCHF JPYCHF 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