Investor Day - Nobel Biocare

Investor Day
Mahwah, New Jersey
26 September 2007
Domenico Scala
CEO
Management team with strong track record
Undisputed market leader
• Focused dental solution
provider
• Root-to-tooth solutions: the
one-stop shop for dental
restoration
• Strongest global presence
• Leading in science, innovation
and education
Source: MRG, Nobel Biocare estimates
3
Number 1 position worldwide
Nobel
Biocare
37%
Outgrowing the market
2003 – 2007H1
Revenue growth
• 13 consecutive
quarters of +20%
revenue growth*
30%
24.0%
25%
20%
24.4%
22.0%
20.0%
19.0%
15%
• H1 2007 revenue
growth twice as fast
as next competitor
major competitors
10%
5%
0%
2003
2004
2005
2006
Source: Nobel Biocare financial reports, competitor information
* In local currencies
4
• Revenue doubled in
5 years
H1 2007
Significant operational leverage
2003 – 2007H1
EBIT margin
40%
33,5%
35%
30%
34,0%
32,0%
29,6%
• Economies of
scale
26,1%
25%
• Further EBIT
margin
improvement
expected
20%
15%
10%
• Free Cash Flow
significant
5%
0%
2003
2004
Source: Nobel Biocare financial reports
5
• Industry leading
EBIT margin
2005
2006
H1 2007
Sustained shareholder returns
2003 – 2006
Total share returns in mn CHF
3000
+45%
2500
+29%
+66%
• Return through
share price
appreciation,
dividends and
share buyback
2000
1500
+44%
1000
• 2003-2006: 7.8 bn
CHF returned to
shareholders
500
0
2003
2004
Share appreciation
Source: Nobel Biocare financial reports
6
• Continued
shareholder
orientation
2005
Dividend
2006
Share buyback
Providing integrated root-to-tooth solutions
n &e
w
o
Cr ridg
B
C
IndAD/C
pr iv A
os id M
the ua
ti c l
s
Implants,
Standardized
Prosthetics
Guided
surgery
• Unmatched breadth of
offering
• Evolving market
• Uniquely positioned
through solution concepts
for each segment
• Procera® with untapped
potential
Bi
olo
gic
s
R
e
su tion
s
i
T era
en
eg
Procera®
7
Most attractive segment in health care
3-5 years growth %
Growth
2006
20
Prem.
Tooth
Replac.
2010E
• Best sector today and
tomorrow
Prem.
Tooth
Replac.
Cardiovascular
• Unaffected by health care
reforms
Orthopaedics
• Attractive profession
10
• New products/solutions an
essential factor
Adv.
Wound
Hearing Endoscopy
Aids
Mature
0
0
20
Size of industry USD billion
Source: Deutsche Bank
8
40
Further growth acceleration through conversion potential
Total dental market size
Nobel Biocare served market
~ 3.5bn USD (2006)
~17.5bn USD (2006)
PFM
CAGR ~0.2%
Conversion
Individualized Products
(All-ceramic CAD/CAM
C&B, Laminates)
CAGR ~40%*
Consumables
Est. annual
growth ~ 5%
Digitalisation
Pharmaceuticals
Est. annual
growth ~5%
Equipment
Est. annual
growth ~12%
*2005-2009 **2007-2011
Source: MRG, Nobel Biocare estimates, competitor information
9
Standardized
Products (Implants, abutments)
CAGR ~16%**
Leading total dental solution provider
Cli
n
Tee ical
th i Solu
na
n h tions
our T : N
M
obe
l
All Guide T
on
M
4
Promise
Beautiful
Teeth NowTM
Clinical Concepts
EasyEstethicsTM
Soft Tissue IntegrationTM
Immediate FunctionTM
Product recipes and tools
Standard products
Individualized products
10
Covering all aspects of dental restorations
Implant
Implants, Tissue
CAD/CAM Integrated
Retained
Implants Regene- Crown & Individual Guided
Maxillofacial
Prosthetics ration
Bridge Prosthetics Surgery Biologics Concept
Nobel Biocare
Competitor 1
Competitor 2
Competitor 3
Competitor 4
11
Market factors driving growth
Market penetration
Geographic expansion
Demography
Esthetics and lifestyle
12
Individualized
products
Standardized
products
Building from existing strategy
Demographic and geographic opportunities
Innovation based on scientific evidence
From products to individualized solutions provider
Evolving market requiring differentiated approach
13
Drive and
capture
market
growth
Demographic and geographic opportunities
USA & Canada
Edentulous population
(>65 years)
Implant market size
(USDm, 2011)
CAD/CAM market size
(USDm, 2009)
22m
1‘764
974
Rest of the world
31% of world population
Avg. 6-10% of total world population
Edentulous in both jaws
* Australia, Japan, South Korea, China, India
Source: MRG (Europe as defined by MRG).
14
Western Europe & Russia
Edentulous population
28m
(>65 years)
Implant market size
2‘029
(USDm, 2011)
CAD/CAM market size
300
(Europe ex-Russia, US$m, 2009)
Asia Pacific
Edentulous population
(>65 years)
Implant market size*
(USDm, 2011)
CAD/CAM market size
(Japan, USDm, 2009)
36m
909
36
Strongest patent portfolio in the industry
Dental Implants and Prosthetics
180
US Patents and Applications
EP Patents and Applications
World Applications
Japanese Applications
160
140
120
• 373 patents and
applications on dental
implants and
prosthetics
100
80
• 25 patents on other
Crown and Bridge
and CAD/CAM
60
40
20
Source: Nerac ARE database
15
en
ts
pl
y
D
g
am
lo
C
Te
ch
As
tra
m
er
Zi
m
3i
N
ob
el
Bi
oc
ar
e
St
ra
um
an
n
0
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
Evolving market requiring differentiated approach
Specialists
Dental
Laboratories
Denturists
Periodontists
Endodontists
General
Practitioners
Implantologists
Patients
17
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
19
Investor Day
Mahwah, New Jersey
26 September 2007
Robert Gottlander
Executive Vice President
Global Marketing & Product Management
20
making you smile™
21
“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
“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
“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
“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
“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
Major innovations over the years
•
1953
Osseointegration
•
2003
Scalloped implant NobelPerfect®
•
1965
Inventor of modern implantology
•
2004
One-piece implant NobelDirect™
•
1985
Procera® Crown
•
1988
Inventor of CAD/CAM in dentistry
•
1988
Esthethic abutment
Easy Esthetics™
•
1989
CeraOne
NobelGuide™
•
1990
Self-threading implant
Groovy
•
1992
Procera® all-ceramic crown
NobelSpeedy™ / Shorty™
•
1993
Procera® Scanner
•
1994
Ceramic abutment
•
1997
Tapered implant Replace®
•
1998
Procera® CAD/CAM abutment
Implant Retained Maxillofacial
rehabilitation
•
2000
TiUnite™
NobelActive™
•
2001
Inventor of IT-based rehabilitation,
the Teeth-in-an-hour concept
Curvy™ Abutment
27
Immediate Function™ - FDA clearance
•
•
2005
2006
Soft Tissue Integration™
NobelSmile™
Procera® Laminate
•
2007
Providing integrated root-to-tooth solutions
n &e
w
o
Cr ridg
B
C
IndAD/C
pr iv A
os id M
the ua
ti c l
s
Implants,
Standardized
Prosthetics
Guided
surgery
• Unmatched breadth of
offering
• Evolving market
• Uniquely positioned
through solution concepts
for each segment
• Procera® with untapped
potential
Bi
olo
gic
s
R
e
su tion
s
i
T era
en
eg
Procera®
28
Most comprehensive implant offering
Implants,
Standardized
prosthetics
Tapered Implants
NobelReplace™
Tapered Groovy
Replace®
Select
Tapered
NobelDirect®
NobelDirect®
Groovy
NobelDirect
Oval
NobelDirect®
Posterior
NobelDirect®
3.0
NobelPerfect®
Groovy
Parallel-walled Implants
Brånemark NobelSpeedy™ NobelSpeedy™ Replace®
NobelReplace™ Shorty Implant Brånemark
Brånemark
®
System Groovy System®
Replace
Select Straight Straight Groovy
Groovy
System®
MkIII and MkIV
Zygoma
29
TiUnite®
Bone level implants
Tapered Implants
NobelReplace™
Tapered Groovy
Implants,
Standardized
prosthetics
Replace®
Select
Tapered
Parallel-walled Implants
Brånemark NobelSpeedy™ NobelSpeedy™ Replace®
Brånemark
NobelReplace™ Shorty Implant Brånemark
®
System Groovy System®
Replace
Select Straight Straight Groovy
Groovy
System®
MkIII and MkIV
Zygoma
30
TiUnite®
TiUnite™ the osseoconductive biomaterial
• Immediate Function™
Biologics
Tissue
Regeneration
– More than 99 clinical studies performed*
TiUnite™
• Groovy
– 30% higher initial stability
Groovy
Nobel Biocare, TiUnite™ New Dimensions, 2007
31
Nobel Biocare, TiUnite™ New Dimensions, 2007
* 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.
The most scientifically documented implant solution
5-year clinical data
70
60
50
40
30
20
10
0
Nobel Biocare
Astra Tech
Straumann/ITI
Biomet 3i
Source: Medline August, 2007, Official company information, August 2007
32
Complete prosthetics offering
Crown &
Bridge
Procera® Laminate
Alumina
Temporary
Solutions
33
Procera® Crown
Alumina or Zirconia
Procera®
Abutment
Zirconia or
Titanium
Procera® Maryland
Bridge
Standard
Abutments
NobelRondo™
Procera® Bridge
Alumina or Zirconia
NobelRondo™
Press
Procera®
Implant Bridge
Zirconia or
Titanium
NobelRondo™
Press Solo
Materials for every indication
Crown &
Bridge
• Alumina for the most outstanding
light transmission in the esthetic
zone
• Zirconia for the higher load
situations
Zirconia
34
Alumina
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
35
Procera® Forte
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
Leading total dental solution provider
Cli
n
Tee ical
th i Solu
na
n h tions
our T : N
M
obe
l
All Guide T
on
M
4
Promise
Beautiful
Teeth NowTM
Clinical Concepts
EasyEstethicsTM
Soft Tissue IntegrationTM
Immediate FunctionTM
Product recipes and tools
Standard products
Individualized products
37
Evolving markets require differentiated approach
Specialists (~10%*)
Dental
Laboratories
Denturists
General
Practitioners
(~90%*)
Implantologists
Patients
38
* Source: MRG, 2007
Evolving markets require differentiated approach
Specialists (~10%*)
Dental
Laboratories
Denturists
Clinical
Chains
General
Practitioners
(~90%*)
Total
Solution
Provider
Implantologists
Patients
39
* Source: MRG, 2007
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
–
–
–
40
R&D Co-operation
Clinical research
Post-graduate/Continuing Education
P I Brånemark
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
–
41
Total of 18 world leading dental universities
Training and education for market growth
• Training program for all segments
• 1,700 dental students graduate
each year from partnership
universities
• Speaker development program
• 6,800 students in education today
through the partnership programs
k trained
450
400
400
335
350
300
251
250
200
165
150
110
100
50
70
30
0
2001
42
2002
2003
2004
2005
2006
2007
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
– Procera® Network partnership
• Prosthetic solutions
– For natural teeth and implants
– Standardized and individualized
/Procera® CAD/CAM
– Choice of materials
Procera®
Forte
Procera®
Piccolo
Copings (alumina - anterior)
x
x
Copings (zirconia)
x
x
Abutments (titanium)
x
x
Abutments (zirconia)
x
x
Zirconia bridges (max mm)
60
Alumina bridges (2-4 units)
x
Implant bridges (titanium)
x
Implant bridges (zirconia)
x
Laminates
x
– NobelRondo Press
43
x
Cercon®
x
Etkon®
x
x
40
x
x
47
70
x
x
– NobelGuide
– NobelRondo
3M™
ESPE
™
LAVA
™
Source: Official Nobel Biocare information, 2007
x
Creating demand through patient awareness, education
• NobelSmile™
– www.nobelsmile.com
in 35 markets
– Truck tour
– Patient seminars/events
– Information packages
for patients
– Direct-to-consumer marketing
– TV commercials
• Spokespersons
Daniele Suzuki,
Brazil
44
Inge De Bruijn,
The Netherlands
Towako Kimishima,
Japan
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
45
•
Chipped tooth
•
Cracked tooth
•
Missing teeth
•
Crocked teeth
•
Cosmetic problems
•
Crown/filling problems
•
Help with dentures
Find a dentist
Number one in dental web communication
www.nobelbiocare.com
1 900 000 visits/year
1 500 000 Potential and
existing customers visit
NobelBiocare.com
400 000 Potential patients
visit NobelSmile.com
www.nobelbiocare.com
• Global in 8 languages
• 21 local websites
www.nobelsmile.com
• 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
46
7:06 minutes - the average visit
at NobelBiocare.com
177 500 hours of high
quality sales time per year,
where the customer is
taking the initiative
www.nobelsmile.com
6:35 minutes - the average
visit at NobelSmile.com
43 900 hours to educate
patients on how they
can benefit from our
solutions
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
Training and education for market growth
47
Drive and
capture
market
growth
48
Investor Day
Mahwah, New Jersey
26 September 2007
Kevin Mosher
Vice President & General Manager
Nobel Biocare North America
49
Market growth outpaces penetration rate
North America
• 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 ***
Growing US edentulous population
k
40'000
38'000
36'000
34'000
32'000
30'000
1991
2000
2010
• 50 - 70 million crown units
placed in North America each
year ****
50
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
2020
Demographic development ensures sustainable demand
Fully edentulous in one or both jaws by age group
(Yrs)
1991
2000
2010
2020
25-34
858
670
613
601
35-44
3'770
3'841
2'928
2'614
45-54
5'612
7'332
7'711
5'850
55-64
7'667
7'836
10'232
10'595
65-74
7'675
6'837
7'054
9'164
75-84
6'166
6'613
5'934
6'381
85+
1'900
2'287
2'654
2'681
33'648
35'416
37'126
37'886
Total
#s in 1,000s
61 million edentulous arches by 2020!
Source: Chester W. Douglass, DMD, PhD, et al, “The Journal of Prosthetic Dentistry, January 2002
51
GP is critical to serve unmet and increasing need
4% 3%
8%
2%
Oral Surgeons
7,170
1%
Periodontists
5,458
Dental laboratories
Prosthodontists
3,609
Denturists (Canada)
1,155
General Practitioners
82%
Source: American Dental Association, 2004 Distribution of Dentists; iData Research Inc, July 2007;
Canadian Dental Association; 2002 ADA Survey
52
14,100
155,245
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
2004
2005
2006
H1 2007
Nobel Biocare
17%
35%
23%
10%
Market
18%
20%
17%
11%
Source: MRG, iData Research Inc, Reported company results, Nobel Biocare estimates
53
Outgrowing competitors in all customer segments
Nobel Biocare dental implant market share 2006 (in USD)
Others
9%
Dentsply, 3%
Astra Tech, 4%
Nobel Biocare
35%
Lifecore, 3%
BioHorizon, 4%
• Twice the share of
closest competitor
• Largest Specialty and
GP segments of any
company
Zimmer Dental
14%
3i
14%
Straumann
16%
Source: MRG, iData Research Inc, ADA, Reported results, Nobel Biocare estimates
54
• 8% points share gain,
2004 – 2006
Converging trends will change implant dentistry
• More patient friendly procedures
• Insurance coverage
• Education
• Generational change
• Direct-to-consumer advertising
• Information transparency
55
Key take-aways:
Market opportunity is enormous and growing
Conventional clinical delivery model is inflexible
Delivery model is evolving to align with patient values
Market shift favors value-added, total solutions suppliers
56
Drive and
capture
market
growth
57
Investor Day
Mahwah, New Jersey
26 September 2007
Jacques Gutedel
VP Europe, Middle East and Africa
European markets require distinctive approaches
# of patients per dentist
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
0
1.000
2.000
3.000
0
50.000
100.000
150.000
Russia
Germany
France
UK
Italy
Spain
Netherlands
Sweden
Switzerland
mio inhabitants
Source: MRG, ADDE 2004, FiDE 2004 and WHO
59
Increasing penetration to Italian level would double market
Number of implants per 10,000 inhabitants
200
180
160
140
120
100
80
60
40
20
0
Ita
ly *
*
ain
p
S
s
y
n*
d*
nd
an
ium
an
a
de
g
l
l
m
l
r
e
r
r
e
e
Be
Sw
Ge
it z
e th
w
N
S
Source: Nobel Biocare estimates, * MRG and WHO, 2006
60
ia
str
Au
e
d
ay
ark
nc
w
an
l
r
a
m
r
n
n
F
No
Fi
De
*
UK
ia
ss
u
R
d
lan
o
P
All-ceramic CAD/CAM: outpacing implant market growth
2005
2009
Market size ~1.6bn USD
Forecasted market size ~1.8 bn USD
~6%
~8%
~5%
+140%
~17%
~86%
~78%
PFM
All-ceramic conventional
All-ceramic CAD/CAM**
Source: MRG, Germany, Spain, Italy, France, UK, Switzerland, Sweden
** excl. laminates
61
Number 1 position in EMEA
Revenue growth EMEA
• Market leadership in 14 of 18
direct countries
25
20
15
• Outgrowing market since 2004
10
–
2005: Launch of new solutions
5
–
2006: 9 World Tour stops
0
2003
• Direct organizations in Western
Europe, Poland, Russia and
Baltics
2004
2005
Other
22%
2006
H1 2007
Nobel
Biocare
23%
• Undergraduate partnership with
University of Freiburg (Ger)
• 20 distributors in 33 countries
Dentsply
10%
AstraTech
6%
Source: Nobel Biocare financial reports and MRG
62
Zimmer
6%
Strauman
n
22%
Biomet/3i
11%
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
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
Russia
>140m
Middle East
>150m
North Africa
>180m
Population
Capitalize on our market leadership position in Russia
Source: UN population division, 2005
64
Capitalize on recently achieved no 1 position in Russia
Implant market shares in Russia 2006
• Nobel Biocare the only
direct dental company
Other (local)
4%
Other (foreign)
17%
Nobel Biocare
18%
• Focus on clinical
education and training
– World Tour in December
• Sales force expansion
Zimmer
5%
Alfa Bio
13%
3i
5%
Conmet
7%
Dentsply
7%
Source: MRG
65
BioHorizons
9%
Straumann
7%
AstraTech
8%
Emerging Russian market
Implant market CAGR 07-11 34.8%
• Market growth in 2006: 41%
Nobel Biocare growth 86%
USD m
140
120
100
• Growth Nobel Biocare
H1 2007: >100%
80
60
40
• All-ceramic CAD/CAM market
just starting
Source: MRG, Nobel Biocare estimates
66
20
0
2005
2006
2007
2008
2009
2010
2011
Take-aways EMEA
Huge opportunities in C&B&I
Tailor our offering to the distinctive market needs
Scientific evidence
Geographical expansion
67
Drive and
capture
market
growth
68
Investor Day
Mahwah, New Jersey
26 September 2007
Tom Olsen
Vice President
Latin America, Asia/Pacific
Uncovering huge market potential in Asia
k
Dentist population in Asia
100
80
60
40
20
GP
al
ia
A
us
tr
K
or
ea
na
C
hi
a
In
di
Ja
pa
n
0
Specialists
Source: MRG, WHO and Nobel Biocare estimates
* >65 years, ** Australia, Japan, South Korea, China, India
70
Edentulism in Asia
% edentulous*
China
11%
India
19%
Japan
20%
Indonesia
24%
Vietnam
23%
South Korea
22%
Thailand
16%
Malaysia
57%
Hong Kong
20%
Total
k edentulous
14,500
10,400
4,000
3,200
1,100
950
820
690
160
35,820
Benefitting from very low market penetration
Number of implants per 10,000 inhabitants
160
140
120
100
80
60
40
20
0
Ita
ly *
*
ain
p
S
*
y
n*
nd
rea
an
a
o
de
l
m
e
r
K
r
e
S.
Sw
Ge
it z
w
S
In k
Population
Income over 40 000 USD
Edentulous
Missing teeth
Consumer of luxury items
in the world
A
US
*
n*
pa
a
J
lia
il
az
r
B
g
on
K
ng
Ho
d
a
an
ad
l
i
n
a
Ca
Th
Japan
China
India
128 000
1 314 000
1 180 000
23 000
20 000
16 000
9 350
115 000
89 000
686 000
2 215 000
5 546 000
2nd
3rd
Source: Nobel Biocare Estimates 2006, * MRG and WHO, 2006
71
A
tra
us
ina
h
C
Setting the pace in Asian markets
• First mover advantage
• Leading market
development initiatives
Revenue growth APAC
50%
• Market leader in 13 of the
14 countries we serve
40%
• Strong base in distribution
markets such as Taiwan,
Vietnam and Thailand
20%
30%
10%
0%
• University partnerships
• High growth momentum
(41%, H1 2007)
Source: MRG and Nobel Biocare financial reports and estimates
72
CAGR ’03 -’07
~35%
2003
2004
2005
2006
H1 2007
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
Japan – outstanding growth in implants and high-end
esthetic solutions
USD m
400
• Implant market CAGR
07-11 14.6%
300
• Quarterly growth Nobel
Biocare last two years:
avg. 37%
200
100
0
2005
2005
2006
CAD/CAM
1% All-Ceramic CAGR 41.5%
2%
Conventional
All-Ceramic
PFM
Source: MRG
74
Market value USD
1.2bn
2007
2008
2009
2010
2009
3%
3%
2011
Tapping huge potentials in China and India
USD mio
China
140
• Leading market share
120
• Privatization of hospitals,
rapid expansion of private
clinics
• Training and Education
initiatives
India
• Leading market share
• Focused university
programs
• Expand education capacity
Implant market CAGR 07-11 38.3%
100
80
60
40
20
0
2005
2006
USD mio
2007
2008
2009
2010
2011
Implant market CAGR 07-11 51.9%
50
40
30
20
10
0
2005
Source: MRG
75
2006
2007
2008
2009
2010
2011
Potential in South American countries to be developed
Population k
No. of dentists
250000
200000
180000
Population
160000
No. of dentists
200000
140000
150000
120000
100000
100000
80000
60000
50000
40000
20000
0
0
Brazil
Mexico
Colombia Argentina
Direct markets
Source: MRG
76
Chile
Peru
Venezuela Uruguay,
Bolivia,
Paraguay
Ecuador
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
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
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
Expand training and education capacity
79
Drive and
capture
market
growth
80