Creating opportunities for customers and shareholders Peter Hackel, - PowerPoint PPT Presentation

Creating opportunities for customers and shareholders Peter Hackel, CFO 7 December 2017

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

Our tooth replacement solutions Main other players by segment: CAD/CAM prosthetics incl. digital equipment Abutment / bars & bridges (titanium/cobalt chrome/ceramic) Bone and tissue regeneration (Human/Animal/synthetic bone substitutes & membranes) Implant (Titanium/titanium alloy/ceramic) 3

The ClearCorrect acquisition extends our offering in esthetic dentistry  One of the leading providers of full clear-aligner tooth- correction solutions  Privately-held; fast-growing; 2016 sales: USD 32m  Products sold directly in North America and through distributors in Australia, the UK and other countries  Approx. 200 employees; HQ in Round Rock, Texas  Straumann acquires all outstanding shares in ClearCorrect Holdings Inc. and subsidiaries for total consideration of approximately USD 150m  ClearCorrect acquired and consolidated as of 1 October 4

Financial performance

Momentum sustained in Q3 with accelerations in APAC and LATAM Growth year-on-year (in %) EMEA North America 44% of Group 28% of Group APAC 17% of Group 17.2 17.0 10.0 9.9 27.9 24.2 Q3 9M Q3 9M LATAM 11% of Group Straumann Group Q3 9M 18.9 15.7 15.9 14.8 Q3 9M 6 Q3 9M

Winning share in all segments Organic revenue growth since 2012 >3x market growth 14.8% (incl. Straumann Group) 13.1% 9.1% Double-digit growth over the first 9 months Average supported across all segments 7.2% 6.4% 1.2% ++ ++ ++ -1.0% 2012 2013 2014 2015 2016 9M 2017 Biomaterials Implants Restorative 7

Above-market growth driven by new products and entry into new geographies & segments Organic revenue growth 2012-2017 BLT implant ‘ Roxolid Roxolid implant for all’ material ProAch edentulous solution Lab & chairside CADCAM offering 2012 2013 2014 2015 2016 2017 GBR biomaterials Variobase abutments PURE ceramic implant Premium Non-premium 8

Growth strategy reflected in an increasingly diverse team Headcount development (pro forma 1 ) Employees by region (in % of total 1 ) APAC +982 CH (incl. 10% HQ) 20% 4'290 NAM 3'797 19% 3'471 4’779 2'387 2'217 Rest of EMEA 26% 2013 2014 2015 2016 9M 2017 LATAM 25% Number of employees Medentika & Equinox Dental Wings & ClearCorrect 1 Incl. Dental Wings and ClearCorrect, which were consolidated as of 01.10.2017 9

Capacity expansion to meet growing demand Output Facility 2017 2018 2019 increase 1 Villeret (CH) New production building (brownfield) +70% Andover (US) +60% Curitiba (BR) +35% +50% space New production area in Curitiba Impression of new production building in Villeret New building/ Additional machine capacity modification or working hours 1 Expected capacity increase from H1 2017 – Q4 2019 10

Strategic progress

Strategic priorities of the Straumann Group Drive our high performance STMN Group culture and organization Target unexploited growth markets & segments Expand scope to become a Total Solution Provider for esthetic dentistry 12

Addressable market 2018 vs. 2012 BLT Neodent Clear Variobase Lab- and chairside Fully-tapered Milestones: implant consolidation abutment CAD/CAM systems Aligners implant expected 2015 2018 2012 Biomaterials (grafts & membranes) Non- premium Premium: parallel walled Premium: apically tapered Traditional implant & Premium: abutment market Premium: Clear aligners & fully tapered Lab- and chairside fully tapered CAD/CAM equipment Total market: Total market: Total market: CHF 8.3bn CHF 3.4bn CHF 4.0bn Addressed: Addressed: Addressed: ~7.5bn ~1.0bn ~3.6bn Addressable market 13 1 Straumann Group incl. Neodent, Medentika and Anthogyr China 2 Implant dentistry market segment includes implant fixtures, Areas not covered by Straumann abutments and related instruments; information based on DRG 2015 and Straumann estimates

Our present implant portfolio Tissue Level Bone Level Bone Level Bone Level Bone Level Tissue Level parallel-walled parallel-walled apically tapered fully tap./external fixation fully tap./internal fixation Ceramic / Monotype Straumann Straumann Straumann Straumann Neodent Neodent Neodent Neodent

Substantial growth potential in the tapered implant segment in 2018 and beyond Combined implant market in our 2 largest subsidiaries US & Germany (market size 3.7m implants) in 1’000 implants Fully tapered Tissue Level Growth of tapered implants driven by LMR trend towards Bone Level Q42018 immediacy Apically tapered Tissue Level Low teens premium 2015 Bone Level segment share Parallel walled 2007 Tissue Level 1986 Bone Level Date of STMN share Potential to grow Lower priced implants launch 15

Neodent launches ‘Grand Morse’ in Brazil – a 2 nd generation fully-tapered implant system  Complete new implant system for all clinical needs, developed from the inside out, starting with the prosthetic interface  Fully tapered design with cutting threads  Comprehensive prosthetic range, including angulated rounded abutments for full-arch restorations, ti-bases and ‘ ProPeek ’ temporary abutments  1-year clinical evidence: 100% survival of 277 implants in 57 patients 1  200 new customers attracted in first month  Roll-out in other regions beginning mid 2018  Grand Morse is expected to become the preferred choice of Neodent customers and to supersede the Cone Morse in the next two years. 1 Data on file 16

Continuously expanding our footprint in the non- premium segment Medentika home market Premium Premium Premium Premium Non- Equinox home Non- market Non- premium Non- premium Premium Neodent home premium market Non-premium offering (current) Future non-premium markets 17

The ClearCorrect acquisition extends our offering in esthetic dentistry  One of the leading providers of full clear-aligner tooth- correction solutions  Privately-held; fast-growing; 2016 sales: USD 32m  Products sold directly in North America and through distributors in Australia, the UK and other countries  Approx. 200 employees; HQ in Round Rock, Texas  Straumann acquires all outstanding shares in ClearCorrect Holdings Inc. and subsidiaries for total consideration of approximately USD 150m  ClearCorrect acquired and consolidated as of 1 October 18

Winning share and growing the market E s t h e t i c d e n t i s t r y T o o t h r e p l a c e m e n t m a r k e t CHF 3.5 bn CHF m 3000 2000 1000 0 Clear Imaging & Imaging & Planing Implants Abutments CADCAM CADCAM- Biomaterials CADCAM- CADCAM Scanners Clear Aligner Scanners Implants Abutments Biomaterials aligners planning prosthetics equipment Prosthetics Equipment Straumann Group market share 19 Source: Based on 2015 data Growth potential in respective segment

Attractive clear-aligner market worth USD 1.5bn Clear aligners vs. conventional braces & wires: Clear aligner adoption drivers worldwide cases per year North America:  More dentists trained (GPs & Clear-aligner orthodontists) penetration ~14-18%  More GPs offer/promote treatment  Current users expand business Potential: 9m 4-5m cases (utilization rate)  Attention to esthetics increasing Orthodontic cases Outside N. America: annually  Geographic availability Clear-aligner penetration ~5-8%  Teenager segment penetration  Product improvement (ease-of- use, more indications)  Digitalization simplifies workflow Traditional cases Clear Aligners and drive penetration 20 Source: World Statistics; Global Industry Analysts Inc. 2016; company fillings as well as broker research reports: Robert W. Baird 2015, William Blair 2017, Stiefel 2017, Leerink 2017.

Commonalities in restorative and clear-aligner workflows Case design Treatment design Doctor Doctor Doctor approval approval Prosthetic Orthodontic workflow workflow Data capturing Milling Model Aligner production Tooth-borne Implant -borne production (3D prints) (thermo-foiling process) Restorations 21

New Group set-up Implants & prosthetics Local/regional Premium Non-Premium Orthodontics Digital Biomaterials Other technology partners Fully consolidated Associate (equity method) Partnership 22

Key steps to put stategy into action Build global Market entry Leverage Create Digital DSO team Orthodontics commercial business unit synergies 35% 100% Ownership 100% 38% ~10% of global >500 employees >200 implant volumes worldwide employees growing at 20% 23 1 DSO = Dental Service Organization

Outlook 2017 and beyond