2015 First-quarter revenue Conference Call Basel, 30 April 2015

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. Straumann 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.

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1

Q1 Highlights Marco Gadola, CEO

Good start to 2015 REVENUE CHF

4

193m

Q1 REVENUE GROWTH

KEY DRIVERS

+8% organic

North America and APAC

1

Including CHF 7m contribution from Neodent following full consolidation since 1 March

Performance reflects investments in growth markets/segments; revenue grew 12% including Neodent acquisition effect

Double-digit expansion (organic) in N. America, APAC, & LATAM; EMEA softened by FX mitigation measures

NEW BLT IMPLANT

OUTLOOK

PENETRATING VALUE

>4% volume share

Swift action to preserve margins

Neodent acquired

Positive response in controlled market release; full release underway in N. America and initial European markets; other regions to follow

Prompt initiatives to mitigate currency shock. Full-year guidance unchanged: organic revenue growth in mid-single digit range; EBIT margin >20%

Remaining 51% acquired 3 years early for CHF 210m, making the Group a global leader in the fastgrowing value segment

1 The

term ‘organic’ used throughout this document means ‘excluding the effects of currency fluctuations and acquired/divested business activities’.

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Neodent: undisputed leader in Brazil Brazilian implant market: 2.3m implant units sold in 20142

 Approx. 40% domestic market share  Good reputation for customer focus/service; high-quality perception among Brazilian dentists  Strong on education with ILAPEO1, one of the world´s largest implant training centers (>2000 dentists trained p.a.)

Nobel Biocare

Others

Zimmer Biomet 3i

Titaniumfix

SIN

 Cost-efficient, modern production

Conexao

1 Instituto

5

Latino Americano de Pesquisa e Ensino Odontologico Research 2015 and Straumann estimates

2 Millennium

Successful philosophy of making tested implant solutions more affordable to a broader population

Cost-efficient manufacturing...

15 direct-to-dentist shops

...plant in Curitiba, south of São Paulo

Broad range of implants and prosthetics

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3

Neodent - an expanding global presence

Availablity of Neodent products through: Own subsidiaries, Instradent and 3rd party distributors Future roll-outs

7

The new market share situation Global dental implant & abutment market worth CHF 3bn (2014 pro-forma)

24%

26%

Others

7% 20%

13% 10%

8

Based on iData, MRG and Straumann estimates. Zimmer-Biomet 3i acquisition pending antitrust clearance.

4

Business and regional performance Peter Hackel, CFO

Regenerative sales complement robust growth in implants Implants

Restorative

Regeneratives

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5

Double-digit growth outside EMEA In CHF million, rounded 7.4% in CHF 8.2% organic 1.3 7.4 5.6

0.3 (7.8)

6.7 193.2

179.8

178.6 Organic growth (4.4%)

Revenue Q1 2014

FX Effect

3.9% Acquisition Adj. revenue Effect Q1 2014

0.3%

11.6%

34.5%

11.7%

EMEA

North America

APAC

LATAM

2014

Revenue Q1 2015

2015

11

Strong growth in North America; EMEA held back by currency mitigation measures

EMEA

Revenue change (organic) 51%

7.0%

5.5%

56% 2.4% 0.3%

(2.0%)

North America

Q1 2014

Q2 2014

Q3 2014

11.4% 5.2%

5.4%

Q1 2014

Q2 2014

Q4 2014

9.3%

Q12015

11.6%

28% Q3 2014

Q4 2014

Q12015

 Europe flat year-on-year; distributor transfer price adjustments (to compensate for sharp rise in CHF) dampen growth  Strong performers: UK, France, Austria and Nordics; Germany with solid growth  Russian subsidiary to be established in 2015  Another strong quarter with growth across all business segments  New Bone Level Tapered implant well received and enables share-ofwallet gains  SLActive and Roxolid share further increased

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6

Dynamic China and continued good performance in Latin America Asia Pacific

Revenue change (organic) 34.5%

56%

15% 15.3%

17.0%

Q2 2014

Q3 2014

Q4 2014

Q1 2015

15.0%

11.7%

7.3%

6%

Q1 2014

Q2 2014

Q3 2014

Q4 2014

 Robust growth in Australia, Korea and distributor markets

 Double-digit growth driven by strong demand for implants in most markets

36.7%

30.6%

LATAM

 Growth in Japan expectedly below prior Q1 (SLActive launch; stocking before April VAT increase)

14.5%

8.3%

Q1 2014

 Exceptional growth in China due to stocking by new dealers

Q1 2015

 Strong performance in Mexico; continued growth in Brazil  Neodent posts 10% growth in domestic market

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Neodent fully acquired

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Neodent key figures Experience

Revenue 2014

22y

BRL history CHF

Revenue growth 2014 (l.c.)

258m 101m

1

12% 8%

worldwide

domestic

Founded 1993

Leading implant company in LATAM

Robust growth and further share gains in domestic market despite challenging economy

Outlook 2015

Highly profitable

Employees

>1m

>35% >25%

~950

units

A top-5 global implant company in volume terms; Neodent expects to sell >1m implants in 2015 15

1

EBITDA Net profit

Margin accretive for Straumann

Continious investment in manufacturing capacity and workforce

At average 2014 BRLCHF foreign exchange rate

Straumann’s geographic spread including Neodent Straumann

Neodent ex-LATAM 90%

North America 25%

 Full acquisition strengthens Straumann’s position in the value segment and extends its global leadership in tooth replacement  Straumann has consolidated Neodent fully as of 1 March 2015 1 Owing

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to the Neodent consolidation Straumann has re-allocated markets from the ‘Rest of the World’ region to 1100% EMEA and Latin combination America, with effect of 1 January 2015. The respective regional figures in this chart have been of Straumann and Neodent restated accordingly and include Neodent’s external revenues from 1 March 2014 onwards.

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Details of the Neodent accounting  Neodent consolidation will trigger fair-value adjustments  PPA and opening balance to be finalized; amortization charges may still vary until completion: Amortization of intangible assets (approx. CHF 7m1 p.a. over 7 years)

 OPEX

 One-time effects: COGS 



Financial result Financial result



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1

Inventory adjustments / write-downs (approx. CHF 15m) Accumulated FX differences on translation of initial 49% stake have to be reclassified from equity into P/L (loss of approx. CHF 85m) Revaluation before de-recognition of initial 49% stake (gain of approx. CHF 15m)

Annual amortization charge will depend on BRLCHF exchange rate

Neodent – the flagship in our value strategy Marco Gadola, CEO

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Separate brand strategy to address premium and value segments Germany (Option 30%)

Spain (30%)

Brazil (100%)

Germany (51%)

Canada (44%)

Germany (100%)

Taiwan (Convertible)

S. Korea (Convertible)

US (13%)

Austria

Taiwan (49%)

Switzerland (44%)

Common production & technology platform

Premium 19

Implants

CADCAM/prosthetics

Value

Regeneratives

Petra Rumpf joins Straumann to lead Instradent  Petra Rumpf joins the Executive Management Board as Head of Instradent & Strategic Alliances  Past 7 years at Nobel Biocare in Corporate Development, M&A, E-commerce, Training & Education, Distributor Business  Headed Nobel’s AlphaBio Tec value business

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New solutions presented at key trade events

Straumann launches holistic prosthetics campaign targeted at dental labs worldwide

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Strong presence at Chicago Midwinter, AO & IDS events with special focus on labs

New visitor record (138 500) in Cologne

Dental Wings’ new intra-oral scanner…

Straumann booth at the IDS

and laser mill

Straumann booth at the AO

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More information on Straumann at the IDS ‘Analyst talk’ – video interview www.youtube.com/watch?v=Q6yT5Jn3ZFc

‘Straumann connections’ – short video report www.youtube.com/watch?v=TCxcc9f7ffw

Analyst and investor breakfast presentation www.straumann.com/content/dam/internet/xy/resources/corporate/ir-conferencepresentations/en/Straumann_Investor%20Breakfast_12%20May%20IDS%20Cologne.pdf

Media presentation www.straumann.com/content/internet/straumann_com/en/home/media/mediareleases/2015/tag_xml_newsbox_ch2015-03111491209digest/_jcr_content/par/newsdownload/linklist/file_2/file.res/Straumann___IDS_201 5_EN.pdf

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Strengthened position in lab segment with original-on-original components

Variobase® abutment family (also for the CEREC workflow)

CARES® X-Stream™ bridge-and-bar solutions

Straumann® pre-milled abutment blanks Innovative prosthetic retention system by Valoc 3M™ ESPE™ Lava™ Plus high translucency zirconia

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CEREC® is a registered trademark of Sirona Dental Systems GmbH, Germany.

Cutting-edge digital equipment solutions Dental Wings intra-oral scanner Straumann CARES® 3 & 7series scanners

+

Dental Wings laser mill

Straumann CARES® in-lab mill by Amann Girrbach 26

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Bone Level Tapered implant roll-out underway 2014 Q3

Q4

2015 Q1

Q2

Q3

Q4

2016

2017

Q1-Q4

Q1-Q4

EMEA - Germany, Austria & Switzerland CMR - Europe (outside DACH)

FMR

CMR

FMR

- Distributors

CMR

N o r t h Am e r i c a

CMR

FMR

FMR

As i a P a c i f i c - Japan1,2

FMR2

- China1,2 -

CMR CMR

Distributors1

FMR

L a t i n Am e r i c a 1

CMR

FMR

CMR = controlled market release to collect feedback from experienced users FMR = full market release, available to all customers.

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1

Depending on regulatory clearance in respective region/country

2

Roxolid not yet available

How the new products and technologies combine in our strategy to be a ‘total solution provider’ Surgical

Full regenerative portfolio (botiss)

BLT

PURE

Pre-milled abutments

Variobase for CEREC

Abutments

Chairside scanning & milling

Removable denture attachment (Valoc)

SR abutments

Variobase family

In-lab milling equipment

Restoration

Screw retained bars & bridges

New inlab scanner

CARES X-Stream

DENTIST Surgeon

GP / restorative

LABORATORY Regional

Local

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Outlook 2015 Barring unforeseen circumstances

1

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

Further improvement in global implant market expected. Revenue expected to grow organically in mid-single-digit range.



Further investments in strategic growth markets and projects



Cost reduction measures including compensation reductions in CH, hiring and travel restrictions



2015 EBIT margin target >20% (organic1)



Neodent will be accretive to the Group’s reported EBIT margin before acquisition-related one-time effects.

Assuming exchange rates remain more or less at February levels (EURCHF 1.05 ; USDCHF 0.92)

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Questions & Answers

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Re-categorization1 of the 2014 regional revenues REVENUE BY REGION (in CHF millio n)

EMEA Change in CHF in % Change in local currencies in %

North America

Q1 2014 107.7

FY 2014 389.2

(8.4%)

5.4%

2.2%

0.3%

5.5%

3.2%

53.7

45.5

193.1

Change in CHF in %

18.1%

0.5%

6.3%

Change in local currencies in %

11.6%

5.2%

7.8%

Asia / Pacific

28.9

22.1

Change in CHF in %

30.4%

(2.4%)

8.4%

Change in local currencies in %

34.5%

8.3%

14.0%

LATAM

106.7

12.0

12.1

98.7

Change in CHF in %

163.1%

158.3%

419.2%

Change in local currencies in %

193.8%

205.4%

462.1%

Change in organic growth in %

11.7%

GROUP

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Q1 2015 98.6

193.2

187.4

787.7

Change in CHF in %

7.4%

7.2%

15.8%

Change in local currencies in %

12.3%

10.5%

18.0%

Change in organic growth in %

8.2%

6.1%

6.4%

1 Owing to the Neodent consolidation Straumann has re-allocated markets from the ‘Rest of the World’ region to EMEA and Latin America, with effect of 1 January 2015. The respective regional figures for 2014 in this table have been restated accordingly and include Neodent’s external revenues from 1 March 2014 onwards.

Calendar of upcoming events 2015 12 June

Investor meetings

Sao Paulo

15 June

Investor meetings

Geneva

16 June

Investor meetings

London

07 July

Investor meetings

Lugano & Milano

20 August

H1 2015 results conference

Basel HQ

01 September

Investor meetings

Chicago

02 September

Investor meetings

New York

03 September

Investor meetings

Boston

09 September

Investor meetings

Zurich & St.Gallen

14 September

Investor meetings

Vienna

15 September

Investor meetings

Frankfurt

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Results publication and corporate events. More information on straumann.com → Events

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Straumann’s production foot-print Andover (USA): Implant production

Malmö (S): Regenerative products Leipzig (D): CADCAM milling

Arlington (USA): CADCAM milling

Villeret (CH): Implant production

Curitiba (BR): Implant production



Straumann

Your contacts Fabian Hildbrand Corporate Investor Relations Tel. +41 (0)61 965 13 27 Email [email protected]

Mark Hill Corporate Communications Tel. +41 (0)61 965 13 21 Email [email protected]

Thomas Konrad Tel. Email

+41 (0)61 965 15 46 [email protected]

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International Headquarters Institut Straumann AG Peter Merian-Weg 12 CH-4002 Basel, Switzerland Phone +41(0)61 965 11 11 Fax +41(0)61 965 10 01 www.straumann.com

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