Post on 02-Jan-2017
transcript
03.12.2015
1
Welcome to Curitiba
Curitiba, 2nd December, 2015
IntroductionDr Peter Hackel, CFO StraumannCuritiba, 2 December 2015
03.12.2015
2
Today’s agendaTime Topic Presenter
9.40 Pick-up from Curitiba Airport
10:15 Registration & coffee
11:00 Welcome and opening remarks Dr. Peter Hackel, CFO
11:05 Growth strategy in Latin AmericaMatthias Schupp, EVP Head of Latin America & Neodent CEO
12:00 Q&A
12:15 Site Visit, Neodent factory Matthias Schupp, Alexander Golin
12:50 Lunch break
14:00Global market trends - penetrating future growth markets and entering new segments
Dr. Peter Hackel, CFO
14:45 Q&A
15:15 Transport back to Curitiba airport
3
The presenters of today
Dr Peter HackelCFO
Matthias SchuppHead of Latin America
4
03.12.2015
3
Premium ValueCommon technology andmanufacturing platform
5
Neodent is the backbone of our value strategy
Brazil (100%) Germany (51%)
Taiwan(conv. bond)
S. Korea(conv. bond)
Spain (30%)
Canada (55%)
Germany
Germany (100%)
Taiwan (49%)
USA (12%)
Switzerland (44%)
Austria
Where we are today
Neodent implant productionVALUECADCAM millingPREMIUM & VALUE
Curitiba (BR)
6
03.12.2015
4
More than 1 out of 4 Straumann employees worksfor Neodent
0
500
1000
1500
2000
2500
3000
3500
~975 Neodent employees
~280 new jobs created since 2014of which...
60% in Sales & Marketing mostlyin China USA Latin America
7
Today’s agendaTime Topic Presenter
9.40 Pick-up from Curitiba Airport
10:15 Registration & coffee
11:00 Welcome and opening remarks Dr. Peter Hackel, CFO
11:05 Growth strategy in Latin AmericaMatthias Schupp, EVP Head of Latin America & Neodent CEO
12:00 Q&A
12:15 Site Visit, Neodent factory Matthias Schupp, Alexander Golin
12:50 Lunch break
14:00Global market trends - penetrating future growth markets and entering new segments
Dr. Peter Hackel, CFO
14:45 Q&A
15:15 Transport back to Curitiba airport
8
03.12.2015
5
Growth strategyIn Latin AmericaMatthias Schupp, EVP Head of Latin America & Neodent CEO
History of Neodent
03.12.2015
6
Neodent was founded 23 years ago by an ambitious dentist couple
1993 1998 2001 2009 2012 2014 2015
11
First production site was established in 1998
1993 1998 2001 2009 2012 2014 2015
12
03.12.2015
7
Partnership begins: Straumann aquires 49% of Neodent
1993 1998 2001 2009 2012 2014 2015
13
Succession implemented throughout 2014/15
Straumann’s team joins Neodent and New CEO hand over from Dr. Geninho Thomé to Matthias
Schupp, and Neodent follows rapidly in the process of national and international expansion
1993 1998 2001 2009 2012 2014 2015
14
03.12.2015
8
Neodent Organization
15
Neodent’s current sales organizations
16
03.12.2015
9
Neodent key figures
Congresses & Meetings Revenue 2014 9M 2015 growth (l.c.)
26 Congresses & Meetings
1’600 Participants
16 NeoEvents3’200 Participants
BRL 258mCHF101m1
10% worldwide
Leading implant company in LATAM Robust high-single digit growth and further sharegains in domestic market despite challengingeconomy
Outlook 2015 Highly profitable Employees
~1.2m units in 2015
>35% EBITDA
>25% Net profit~975
A top-5 global implant company in volume terms Margin accretive for Straumann ¼ of the employees work in sales
1 At average 2014 BRLCHF foreign exchange rate17
A track record of double-digit topline growth
0
100
200
300
2010 2011 2012 2013 2014 2015
Brazil Non-domestic
Neodent’s revenue growth 2010-2015 in BRL million
CAGR +12%
18
03.12.2015
10
45%
17%
6%
3%
4%
23%
Titaniumfix
SIN
Conexão
Others (>200 players)
NobelBiometDentsply
Out of its headquarters
in Curitiba, Neodent serves
its growing customer base
via 16 stores (N and S), 7
Distribution Centers (C) and 2
distributors (D)
The undisputed leader in Brazil
Brazilian implant market share in 2014 (100% = ~2.3m units)
Source: Serasa Experian data and Straumann estimates19
A closer look at the Brazilian tooth replacement market
03.12.2015
11
Note: ‘Middle class’ household income is USD 650-1700 per month acc. to the most common definition.Source: The Wallstreet journal
>40 millions of Brazilians have joined the middle class since 2003
21
8% 13%
38%
56%
55%
31%
2003 2013
Lower class
Middle class
Upper Class
Unlike other countries, implantologists are not in short supply
0
50
100
150
200
250
300
Th
ou
san
ds
Dentist population in thousands (bars) and per 10,000 inhabitants (above)
Dentists placing implants Dentists restoring implants or not involved
12
1 5
8
99
5 5 8
~260.000 dentists~165.000 active dentists~55.000 are surgically active~35.000 Neodent clients
Source: Worldometers for population data; iData 2013 for dentist population data22
12 registered Brazilian dentists per 10,000
inhabitants
03.12.2015
12
1 Including implant, abutments and tools.
Brazilians are concerned about dental esthetics and oral care;
High prevalence of missing teeth; 120 million are partially edentulous;
More than 15 million are aged 65 or older (compared to 40 million in the US);
The dentist population is meant to grow about 8% per year;
Roughly 1/3 of the active dentists are surgically active and >50% of practices offer implant treatments;
Top 2 dental implant market worldwide with 2.3 million implants p.a;
High potential for CADCAM and regenerative products: It is estimated that 1/3 of the implant procedures require bone augmentation (i.e. 190’000 p.a.).
Large, attractive Brazilian market
23
Challenges when doing business in Brazil
Low labour productivity in manufacturing;
High influence of work councils;
High political instability;
Low long term commitment of the
employees (high rotation);
Brazil is a large country with relatively slow
logistic network and poor infrastructure.
Recife
Rio de Janeiro
Porto Alegre
Sâo Paulo
Curitiba
3-4 shipment days
24
03.12.2015
13
Neodent’s key success factors
Turn the challenges into opportunities: Large investments into staff training and automation...
State-of-the-art machine park, optimised operating sequences, and well-trained manufacturing staff leads to cost-efficient manufacturing
1992 1995 Today
26
03.12.2015
14
Distribution networks enables
same-day-delivery
Thanks to store concept and
courier service, customers in
large cities benefit from: Delivery in 30min Technical on-site service Payment and exchange of products
in the store
Leverage existing infra-structure
for Straumann premium brand
...and build-up of our own, unmatched distribution network
27
Neodent offers a multiple-indication portfolio...
Drive Alvim Titamax Titamax Ex WS FacilityZygo-matico
NeoPoros Acqua NeoPoros Acqua NeoPoros Acqua NeoPoros Acqua NeoPoros NeoPoros Acqua NeoPoros
Main product for the international market
(60% volume)
Main products for the domestic
market (2/3 share)
28
03.12.2015
15
1 Instituto Latino Americano de Pesquisa e Ensino Odontologico
10 years exclusive collaboration with Neodent in the field of education and research
Courses to build theoretical foundation
Live surgeries, hands-on training and and practicaldemonstration of products
Clinical certification
In addition, Neodent ran 650 training courses in 2015 attended by more than 6.000 attendees(students, non-surgically active dentists)
ILAPEO1: >2.000 dentists trained per year
29
3 VIP Meetings in 2015 with the 120 most renowned professionals
Open dialog with key opinion leaders about new products
Technical update to main clients
Exchange strategic information
Embracing our VIP customers
30
03.12.2015
16
20 Neoeventos in 2015 with over 4.000 participants
31
4 customer visit days in 2015 with over 640 participants
Demonstrating our customers how much efforts we put in quality, safety, and future enhancements
32
03.12.2015
17
Penetrate the fast growing value segment in Latin America
Source: Millennium Research, iData and Straumann estimates
Latin America requires a differentiated multi-price-point strategy
0%
100%
Europe Asia Pacific North America Latin America
Discount Value Premium
34
03.12.2015
18
$200.00
$600.00
$1'700.00
$500.00
$850.00
$2'300.00
$875.00
$1'250.00
$2'800.00
Brazil Mexico Western Europe
Discount Value Premium
Remarkable differences in treatment costs
55% of the Brazilian population are part of the Middle C-Class1 which
earns $650-1700 per monthPrice differences
derive from implant components,
prosthetic materials, dentist qualification/
fees and practice location
35Data based on Straumann estimates; 1 Class C (53% of Brazil’s population) accounted for 33% of overall spending growth in Brazil, while the wealthier Classes A and B (33%) accounted for 60% acc. to Nielsen Research.
Country Implantmarket units
Est. medium-term growth
Value segment
share
Brazil 2’300 High-single digit 85-90%
Argentina 400 High-single digit 85-90%
Columbia 155 Low teens 85%
Mexico 138 Low teens 80%
Chile 100 Low teens 70%
36
Overview of the LATAM implant market
Source: Millennium Research Group 2015 and Straumann estimates
03.12.2015
19
Expanding the regional presence
Availablity of Neodent products through:
Own subsidiaries, Instradent and 3rd party distributors
Future roll-outs
Mexico Columbia
Argentina
Hubs created in Colombia, Mexico & Argentina to roll-out both premium and value brands
37
Driving CADCAM into Latin America
03.12.2015
20
39
Expanding our playground in order to become a total solution provider
Biomaterials
Tooth & implantborne CAD/CAM
prosthetics
39
All connected by an open digital workflow
Restorative Dentistry Implant dentistry
Intra-oral scanning
(2016)CAD/CAM
(Dental Wings & AmannGirrbach)
Guided surgery(Dental Wings)
Open Digital Workflow
40
03.12.2015
21
Partnership with AmannGirrbach facilitates our entry into the in-lab milling segment
FurnaceScanner / SW Milling equipment
Dental Wingsscanners
• 3 Series
• 7 Series
Inlab Materials:• Blanks (D-disks)• Blocks• Premilled abutments• Stain & Glaze sets
2016Amann Girrbach distributed
by Neodent
2015Scan & Shape Service +
Centralized Milling
41
Thanks for your kind attention!
03.12.2015
22
Questions & answers