Beyond continuity 2019 full-year results conference Basel, 18 February 2020 1 Disclaimer This presentation contains certain forward-looking statements that reflect the current views of management. Such statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Straumann Group to differ materially from those expressed or implied in this presentation. The Group is providing the information in this presentation as of this date and does not undertake any obligation to update any 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 2 FY 2019, Straumann Group 1
Agenda Full-year highlights Business and regional review Recent achievements & strategy in action Outlook 2020 Q&A and upcoming events 3 Full-year highlights Guillaume Daniellot, CEO 4 FY 2019, Straumann Group 2
Excellent growth and further margin expansion ORGANIC 1 GROWTH REVENUE EBIT MARGIN CHF 1.6bn +17% 27.1% (core 2 ) +17% vs. 2018 Core profitability further improved 2.5% negative FX effect IFRS EBIT margin: 24.3% Q4: +17% INNOVATION BUILDING FOR GROWTH OUTLOOK 3 Straumann BLX Further share gains CAPEX: CHF 150m launched in EMEA, NAM & initial >50 000m 2 production space being added 2020: organic revenue growth in mkts in APAC & LATAM, winning the low double-digit percentage to support future capacity needs customers; >100 000 sold range; stable core EBIT margin 1 Organic growth = excluding effects of currencies and business combinations 2 Core figures exclude one-time M&A effects, exceptional 5 pension-plan items, restructuring and non-recurring litigation expenses, amortization and impairment of goodwill and acquisition related intangible assets. 3 Outlook expectations barring unforeseen events/circumstances and excluding FX and the coronavirus impact) 5 Strong fourth quarter despite high baseline Organic revenue growth EMEA NAM FY 2019 13.4% FY 2019 19.8% Q4 2019 13.4% Q4 2019 19.4% APAC FY 2019 21.5% Q4 2019 24.5% LATAM FY 2019 16.8% Group Q4 2019 13.4% FY 2019 17.1% Q4 2019 17.1% 6 6 FY 2019, Straumann Group 3
Continued value creation for shareholders Revenue growth EBIT margin Earnings per share in CHF m Core, in %, excl FX Core, in CHF +17% +17% +20bps +20bps +17% +17% organic organic 1596.2 21.21 1363.6 27.1 18.16 26.9 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 7 7 Impressive 5-year performance 5-year net profit 1 in CHF m 5-year organic revenue growth 5-year EBIT 1 in CHF m and margin and margin A v e r a g e + 1 5 % + 4 % - p o i n t s + 3 % - p o i n t s 550 18.9% 26.9% 27.1% 600 17.1% 25.7% 21.5% 15.7% 21.2% 450 24.8% 20.7% 500 20.4% 13.1% 23.3% 350 400 18.1% 9.1% 300 250 200 Market 150 growth est. 4-5% 100 50 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 -50 Underlying EBIT CORE EBIT Underlying Net Profit CORE Net Profit 8 1 Core figures as of 2018; prior year figures exclude exceptional effects 8 FY 2019, Straumann Group 4
Leadership in implant dentistry extended Total 2019 Implantology 1 Straumann dentistry Others (400+) Group 20% (2018: 25%) 26% 4.6 bn CHF 27-29 bn Market Dentium 5% 6% 26% Straumann share Zimmer Biomet 5% #6 # 1 Straumann position 8% 17% Osstem Envista Henry Schein, Patterson, 8% Main players Envista, Dentsply Sirona 11% Align Technology, 3M Henry Schein Dentsply Sirona 1 Implant dentistry market segment includes implant fixtures, final and temporary abutments, healing screws, copings and related instruments; 9 information based on Decision Resources Group and Straumann data. 9 1636 new talents Headcount development 8000 7590 7000 6882 6000 5954 5474 5000 2019 49% 51% increase 4000 3000 2000 1000 Organic 1 Acquired businesses 0 2018 HY 2018 FY 2019 HY 2019 FY 1 Mainly Anthogyr, Digital Planning Service, Yller Biomaterials, Bay Materials 10 10 FY 2019, Straumann Group 5
Business and regional review Peter Hackel, CFO 11 Double-digit growth across all regions Revenue development (in CHF m, rounded) Regional share of 17.1% organic growth in CHF 17.1% organic 9% Latin 11.5 1’596.2 53.1 America 85.8 23% Asia 82.2 Pacific 1’363.6 -29.5 29.5 1’363.6 34% North Change in organic growth America 13.4% 19.8% 21.5% 16.8% 34% EMEA Revenues FX effect M&A effect Revenues EMEA North APAC LATAM Revenues FY 2018 FY 2018 America FY 2019 @FX 2019 12 12 FY 2019, Straumann Group 6
BLX boost in EMEA & North America Revenue change (organic) EMEA EMEA Q4: slight sequential increase 56% despite exceptional Q4 2019. 19.3% Lifted by BLX and value-brand roll- 17.0% 14.4% 13.4% 13.1% 42% of Group 12.7% outs. 11.9% 9.8% Germany solid; strong increases in Italy, Middle East, Russia, Spain and Turkey. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 North America 23.6% 23.5% NAM : Q4: US and Canada continue 19.5% 19.4% 19.0% to perform well. 18.8% 17.2% 17.4% Growth underpinned by BLT and boosted by BLX; good progress in 30% of Group non-premium franchise with Neodent GM. Clear-aligner business continues to grow strongly throughout region. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 13 13 Asia Pacific dynamic; Latin America exceptional Revenue change (organic) APAC APAC Q4: premium implants are the 56% 33.1% 32.5% main driver; strong scanner sales in China. 25.0% 24.5% 23.4% 22.1% 21.2% Value brands add lift (Anthogyr in 19% of Group 16.0% China; Neodent in Japan & Thailand). China dynamic pre-coronavirus; Aus- tralia, Japan, Korea & Thailand out- perform; joint venture in Hong Kong. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 Latin America LATAM Q4: exceptional performance 26.5% in unstable environment (+13% in 21.5% shadow of surge in prior Q4). 20.0% 19.7% 17.6% 17.3% Neodent, Straumann, biomaterials & 13.4% 13.0% ClearCorrect drive performance. 9% of Group Good growth in negative Brazilian market; Mexico dynamic lifted by Neodent GM launch. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 14 14 FY 2019, Straumann Group 7
All businesses report continued strong growth Digital & Implant systems Biomaterials Orthodontics restorative 15 15 Overview of non-core items The following effects were defined as non-core items: The Batigroup acquisition led to an exceptional inventory-revaluation expense of CHF 8.8m, reported 2018 under ‘costs of goods sold’, as well as a tax benefit of CHF 1.9m Amortization of acquisition-related intangible assets of CHF 16m (EBIT level) Consolidation gains of CHF 11m related to the acquisition of former associates (below EBIT) Impairment investment in RODO Medical of CHF 8m (below EBIT) The Align Technology patent dispute settlement charge of CHF 26m or CHF 22m after tax deduction 2019 (administrative expense) Fire damages at Dental Wings of CHF 4m (COGS) and CHF 3m (administrative expense); the insurance coverage to date amounts to CHF 7m (other income) Amortization of acquisition-related intangible assets of CHF 19m (EBIT level) Consolidation gains of CHF 6m related to the acquisition of former associates (below EBIT) 16 16 FY 2019, Straumann Group 8
Core financials at a glance % of Margin Change FY 2019 Comments In CHF m, rounded revenue change in % Revenue 1’596.2 100.0% 17.1% COGS (389.0) 24.4% (16.0%) placeholder GROSS PROFIT 1’207.2 75.6% 20bps 17.4% Operating expenses (775.3) 48.6% (17.4%) FX headwind -60bps EBIT 431.9 27.1% 20bps 17.6% IFRS16 +25bps 6.6m additional interest Financial result (24.6) 1.5% (45.1%) expenses due to IFRS16 Associates (3.0) 0.2% (32.2%) Income tax (66.0) 4.1% (19.5%) NET PROFIT 338.2 21.2% (30bps) 15.5% Basic EPS 21.21 16.8% 17 17 Reported financials at a glance % of Margin Change FY 2019 Comments In CHF m, rounded revenue change in % Revenue 1’596.2 100.0% 17.1% COGS (395.7) 24.8% (14.9%) Fire damage at Dental Wings placeholder GROSS PROFIT 1’200.5 75.2% 50bps 17.8% Operating expenses (813.3) 51.0% (20.2%) Align patent settlement costs FX headwind -60bps EBIT 387.1 24.3% (90bps) 13.0% IFRS16 +25bps 6.6m additional interest Financial result (24.6) 1.5% (45.1%) expenses due to IFRS16 Full consolidation of Associates 2.9 0.2% (296%) former associates Income tax (57.4) 3.6% (18.1%) NET PROFIT 308.0 19.3% (110bps) 10.9% Basic EPS 19.33 12.1% 18 18 FY 2019, Straumann Group 9
19 19 CADCAM & clear-aligner sales lift gross margin In %, rounded +20bps +60bps 0.1 0.0 -0.4 0.5 0.7 -0.4 Dental Wings Fire 75.6 75.2 75.0 74.7 IFRS gross Non core FX effect Core gross Price, Digital HW Inventory Core gross Non core IFRS gross profit items profit Volume, Mix Change profit items profit margin 2018 margin 2018 margin 2019 margin 2019 @ FX 2019 20 20 FY 2019, Straumann Group 10
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