Nobel Biocare full year 2012 revenue up 2% and net profit up 15%

Media Release

Full year report 2012

ZURICH, SWITZERLAND - 19 FEBRUARY 2013

Nobel Biocare full year 2012 revenue up 2% and net profit up 15%

  *Revenue for the full year 2012 was up 2.0% versus prior year to EUR 580.5
    million and down 2.7% at constant exchange rates (CER) - broadly in line
    with the estimated market development
  *Events in Japan continued to impact Q4 revenue which was down 1.1% versus
    2011 to EURâ??153.0â??million and down 3.4% at CER
  *Revenue excluding Japan was essentially flat for the full year (-0.3% at
    CER) with growth in implant system revenue. Revenue declined in
    individualized copings and small-unit bridges
  *Operating profit (EBIT) of EUR 68.7 million reflecting a margin of 11.8%
  *Continued shift of resources to R&D and growing market organizations were
    partially offset by efficiency gains in administration
  *Net profit was up 15.3% to EUR 45.8 million (2011: EUR 39.8 million):
    proposed dividend per share up 33% to CHF 0.20 (2011: CHF 0.15)

Table 1: Selected key figures in EUR million

                        Q4 2012  Q4 2011  Variance   2012    2011    Variance
                                          2011-2012                  2011-2012
Revenue                 153.0    154.6    -1.1%      580.5   569.2   2.0%
Variance at constant    -3.4%    -0.2%               -2.7%   -0.7%
exchange rates (CER)
Gross profit            114.7    117.2    -2.1%      437.5   432.5   1.2%
Gross margin            75.0%    75.8%               75.4%   76.0%
Operating expenses      -100.4   -94.2               -368.8  -360.4
Operating profit        14.3     23.0     -37.9%     68.7    72.1    -4.8%
(EBIT)
EBIT margin             9.4%     14.9%               11.8%   12.7%
Net financial result    -0.5     -4.3                -7.7    -16.6
Profit before tax       13.8     18.7                61.0    55.5    10.0%
Tax                     -2.6     -5.4                -15.2   -15.7
Net profit              11.2     13.3                45.8    39.8    15.3%
Profit margin           7.3%     8.6%                7.9%    7.0%
Basic earnings per      0.09     0.11                0.37    0.32    16.4%
share, EUR
Net cash from           36.5     42.2                103.0   93.1
operating activities

Richard Laube, CEO: "We have achieved a number of important milestones with
our 2012 results. Profit before tax, net profit and earnings per share have
materially improved. More importantly, we have broken a vicious cycle of
market share loss in our core implant business after years of decline. Our
strategy "Designing for Life" is being effectively implemented throughout the
entire organization and we see accelerating performance, especially in our
efficiency programs during the second half of the year. We anticipate the
market environment to remain difficult in the short-term but we are rebuilding
Nobel Biocare to perform in all conditions".

Business performance update

Table 2: Revenue by region

in EUR        Q4     Q4    * Variance  Variance  2012   2011  * Variance  Variance
million       2012   2011              (CER)                              (CER)
Europe,
Middle East   62.1   63.2    -1.7%     -2.7%     230.1  237.0   -2.9%     -3.6%
and Africa
(EMEA)
Share of
total         41%    41%                         40%    41%
revenue
Americas      61.0   56.8    7.4%      2.8%      228.5  208.6   9.5%      1.8%
Share of
total         40%    37%                         39%    37%
revenue
Asia/Pacific  29.9   34.6    -13.6%    -14.9%    121.9  123.6   -1.4%     -8.6%
Share of
total         19%    22%                         21%    22%
revenue
Total         153.0  154.6   -1.1%     -3.4%     580.5  569.2   2.0%      -2.7%

* A new segment "Americas", which reflects realigned management structures,
has been reported since 1 January 2012. As previously

announced, the revenue of LatAm/RoW has now been included into other regions,
mainly North America. For better comparison, prior

year figures have been reclassified to reflect the new regional segment
definition.

In 2012, Nobel Biocare generated revenue of EUR 580.5 million, an increase of
2.0% compared with 2011 supported by a positive currency effect driven mainly
by the strong US dollar and Japanese yen against the euro. This development is
estimated to be in line with peers. Year-on-year CER growth was down 2.7%.
Revenue was significantly impacted by the double-digit percentage market
decline in Japan, which contributes about 12% to the group revenue. Excluding
Japan, revenue for the full year would be at prior year level at CER (-0.3%).

In Europe, Middle East and Africa (EMEA), revenue (CER) for the full year
declined by 3.6% to EUR 230.1 million (Q4 2012: -2.7% CER). Many markets in
this region remained weak throughout the year due to the continued economic
and fiscal challenges and subsequent low patient flow for implant-based tooth
restorations. In two large European markets, Spain and Italy, the decline in
2012 was significant. Nobel Biocare developed at least in line with peers in
most markets in Europe. Market share gains were achieved in Russia and France
as well as in Italy and Sweden in declining markets.

In the Americas, revenue (CER) in 2012 increased by 1.8% to EUR 228.5 million
(Q4 2012: 2.8%). This performance was driven by the low single-digit percent
increase in the US, driven by implant systems, which grew broadly in line with
peers, supported by the continued implementation of value-added services. As a
result of the softening market in the US during the course of the year, the
landscape has become more competitive. In Canada performance remained sluggish
after a weak start to the year. In Nobel Biocare's two directly-served Latin
American countries, Brazil and Mexico, the company achieved a strong
improvement compared with the prior year.

In the Asia/Pacific region, revenue (CER) for the full year was down 8.6% to
EUR 121.9 million (Q4â??2012: -14.9%). The market in Japan was heavily
affected due to adverse media coverage on dental implant treatments in
general. Subsequently, patient flow declined significantly and the market was
estimated to be down about 15%. Excluding Japan, which accounts for about 60%
of the regional revenue, APAC grew 6.9% (CER) in 2012. Double-digit percent
increases were achieved in China, India and Taiwan, while revenue in Australia
and Southeast Asia declined. Thanks to continued rapid growth, China is now
the third largest revenue contributor in the region after Japan and Australia.

Alpha-Bio Tec (ABT) is targeting customer groups with higher price sensitivity
and simpler product and solutions needs. ABT continued to show growth rates
above 20% thanks to the expansion of its distributor network and increasing
market share in its distributor markets.

Implant systems (84% of Group revenue) declined 1.3% (CER) for the year.
NobelActive® continued to grow at strong rates throughout the year, supported
by the introduction of the 3.0 version and was up 13% over the prior year. The
new implant launches NobelReplace® Platform Shift (PS) and Conical Connection
(CC) developed on track, attracting new customers and positively contributing
to the development of NobelReplace®, which is the Group's largest implant
line. Excluding Japan, where implant treatments were negatively affected as
described above, implant systems grew 1.9% (CER) for the full year. The
individualized business (16% of group revenue) declined 9.2% in 2012. In this
area high-end implant-retained solutions were flat, while the decline was
above 20% in scanners and traditional tooth-based restorations, where
production is shifting towards chair-side and in-lab. The recently launched
NobelClinicianTM treatment planning system, also uniquely available on Mac
OS®, is improving treatment safety and gaining new subscribers. This tool has
sold disproportionally well in Japan in view of the media coverage on implant
safety. In October 2012, the first iPad® controlled drill motor OsseoCareTM
Pro were delivered and beta testing in the NobelProcera® Scan and Design
Center started, enabling laboratory customers a convenient way to access
precision individualized components to treat edentulous patients.

Financial performance update

Gross profit in the reporting period increased to EUR 437.5 million (2011: EUR
432.5 million), reflecting a slightly lower gross margin of 75.4% compared
with the previous year (2011: 76.0%). The negative sales impact in Japan and
the reassessment of a royalty liability related to prior years accounted for
the decline in margin. A positive margin impact from currency and a slightly
more favorable business mix (implant systems versus individualized) was
broadly offset by a higher share of ABT sales and expenses for the build-up of
the new NobelProcera Scan and Design Center. The gross margin in
individualized was largely in line with a year ago at just about 45%.

Operating expenses in the full year were EUR 368.8 million (2011: EUR 360.4
million). In the course of 2012 various initiatives were put into place to
reshape Nobel Biocare into a fitter, performance-oriented organization.
Rightsizing of some functions was driven by reallocating resources to growth
drivers such as R&D and training and education. Further, Nobel Biocare rolled
out its value-added program into additional markets, shifted sales resources
from countries in decline in Europe to growing markets, such as the US, China
and Brazil. In addition, the company conducted six successful Nobel Biocare
symposia in Europe and North America. As innovative products and solutions are
a key growth driver for the business, over 50 R&D projects were initiated and
R&D spending increased by EUR 6.0 million or 21% (16% CER). This was partly
funded through a reduction of administrative functions and expenses of EUR 4.9
million or 6% (-9% CER). The efficiency improvement programs that were
initiated throughout the organization resulted in a reduction in headcount in
the fourth quarter of the year. Overall operating expenses in 2012 include EUR
13.0 million from currency translation and EUR 3.7 million from non-recurring
costs related to the accelerated measures to improve efficiency as well as
increased costs related to legal cases. Excluding costs for termination and
severance across functions, operating expenses in relation to sales at CER
were broadly in line with prior year, and slightly lower in reported currency.

Profit from operations (EBIT) for the full year was slightly down to EUR 68.7
million (2011: EUR 72.1 million). Impact from lower Japan sales, a
reassessment of a royalty liability related to prior years and termination and
severance costs accounted for the decrease in EBIT margin over the prior year.
Positive currency impact was largely offset by investments into growth
drivers. The EBIT margin for 2012 was 11.8% (or 11.0% in CER) compared with
12.7% in the prior year.

Currencies - For 2012, the favorable currency translation impact was 4.7pp on
revenue, and 0.8pp on the EBIT margin. The US dollar and Japanese yen
strengthening against the euro drove this positive currency translation
impact. Gross margin was positively impacted by 0.1pp.

The net financial result in the reporting year was EUR -7.7 million (2011: EUR
-16.6 million). Interest expense in 2012 was lower due to a lower debt level
compared with the year before (EUR 250 million convertible bonds repaid in
November 2011 and replaced by a CHF 120 million straight bond). While the
hedging result of the ongoing business was broadly neutral, the overall
hedging result comparison benefitted from a EUR 11.6 million one-off hedging
cost in relation to the convertible bond in 2011.

Taxes -Tax expenses in 2012 were EUR 15.2 million versus EUR 15.7 million in
2011. A more favorable regional profit contribution mix as well as favorable
outcome of certain tax disputes led to this improved result despite a higher
profit before tax. The underlying tax rate is 24.8% compared with 28.3% in the
prior year.

Net profit for the year was up by 15.3% to EUR 45.8 million (2011: EUR 39.8
million), reflecting a higher net profit margin of 7.9% (2011: 7.0%). The
improved net financial result and tax result were the main reasons for this
improvement, which led to earnings per share (EPS) of EUR 0.37 (2011: EUR
0.32).

Cash flow from operating activities for the full year totaled EUR 103.0
million (2011: EUR 93.1 million). This improvement was primarily a result of
exceptional taxes paid in the previous year. At the end of 2012, Nobel Biocare
reported a cash position of EUR 146.6 million versus EUR 107.5 million in 2011
and has returned to a net cash position. This cash level is further supported
by the syndicated credit facility giving the Group sufficient financial
flexibility from a strategic perspective.

Strategy progress update

Nobel Biocare's strategy is guided by the company mission "Designing for
Life". This aims to help customers treat more patients better for improved
quality of life with superior products and solutions designed to last the life
of the patient. This mission is realized and business performance is achieved
through four strategic pillars:

Innovative products and solutions "Designing for Life" - The NobelActive®
implant system has reached 5 years of double-digit growth. This performance
was supported by the successful launch execution of the 3.0 narow version,
which continues to attract new customers. The introduction of NobelReplace®
Platform Shift (PS) and NobelReplace Conical Connection (CC) has also been on
track. Aiding patient safety through the use of digital technology is one of
the focus areas. Here, the recently upgraded NobelClinicianTM treatment
planning software continues to gain new subscribers, disproportionally well in
Japan. Further, the Group saw a very well uptake of the new drill motor,
OsseoCareTM Pro, that was introduced in October and is uniquely operated by an
iPad®. As previously reported, the new NobelProcera® Scan and Design Center
began initial beta testing in early October, offering customers a convenient
way to access precision individualized components needed to treat edentulous
patients. The Group is again at the forefront and widening its lead in the
digital workflow.

Customer value add "Partnering for Life" - Over the course of the year, Nobel
Biocare has established a new sales and marketing organization, reducing
redundancies and enabling quicker service to the customer. A tool box with a
broad variety of programs to help customers to treat more patients better was
introduced. The programs range from study clubs and the esthetic alliance that
improves professional networking and various patient communication tools
designed to attract patient visits. To facilitate interaction with Nobel
Biocare, a new online store went live, first in the US, with gradual
introduction in EMEA and Asia in 2013. To support the recent and upcoming
product and solution launches the Sales Academy sales force training program
has been rolled out globally since the beginning of this year.

Training and education "Learning for Life" - The Company established a new T&E
concept with leading clinicians, which aims to help customers to improve
quality of treatment care and safety. The company conducted six very well
attended symposia in Europe and North America in 2012. The recently announced
Global Symposium in New York in June, featuring nearly 100 key opinion leaders
and experts in their fields has filled up quickly and only a few seats are
left.

Operating efficiency and effectiveness - Nobel Biocare is systematically
reshaping into a fitter performance- oriented organization. Efficiency
improvement programs have been initiated throughout the organization,
resulting in a reduction in headcount in the fourth quarter. Resources were
reallocated from administration to growth drivers such as R&D and growing
country organizations.

Product launches 2013 - Nobel Biocare has established a systematic innovation
pipeline following the relevant clinical focus areas. For 2013 the following
launches have already been announced: A new implant version with a partially
machined collar expanding the NobelReplace® portfolio. Further, a significant
upgrade of NobelClinician improving images for planning of implant placement
and prosthetic restorations. A new second-generation NobelProcera® Scanner and
additional restorative components for competitive implant platforms, further
opening NobelProcera®. Additionally, an initial milestone step will be
achieved with the opening of the NobelProcera® milling system to a third-party
scanner with the new openaccess program.

Executive Committee update - Effective 1 January 2013, Walter Ritter, Head
Global Human Resources was appointed to the Nobel Biocare Executive Committee.
At the same time, Frank Mengis assumed his responsibilities as Head of Global
Operations and member of the Executive Committee. Frank Mengis has extensive
senior management experience in operations and manufacturing in the life
sciences field including the dental industry. Most recently, he held senior
management positions in Project Management and Development, Global
Manufacturing, Operations and Quality Management at Straumann.

Annual General Meeting

The Board of Directors' proposals to the Annual General Meeting of
shareholders (AGM) scheduled for 28â??March 2013, in Zurich, Switzerland, in
addition to the approval of the annual accounts, include:

Dividend - The Board of Directors proposes a dividend of CHF 0.20 per
registered share (2011: CHF 0.15) reflecting the improved net profit of the
year and a payout ratio of 44%. It is planned to pay this dividend out of
reserves and in a shareholder-friendly way without deduction of withholding
tax. The payment date for this dividend, if approved by the AGM, is set for 8
April 2013 (ex-dividend date: 3 April 2013, record date: 5 April 2013).

Addition to the Board of Directors - To drive the implementation of Nobel
Biocare's strategy, one of the priorities of the Board of Directors has been
to broaden and strengthen its operational and management expertise, in
particular in the area of medical technology and implant-based tooth
restoration. Following this priority, the Board of Directors proposes Franz
Maier to be elected as a Member of the Board. Franz Maier brings a successful
track record of over 20 years in both functional and general management
positions, most recently as an Executive Vice President Sales and Member of
the Executive Board of Straumann in the medical devices and biotechnology
industry. All existing Members of the Board stand for re-election.

Outlook

Nobel Biocare believes that the market conditions for 2013 will remain
difficult, similar to 2012.

In this environment, the Company targets to modestly build market share and
deliver modest revenue growth. Based on this and the initiated measures, and
barring any unforeseen events, Nobel Biocare expects to deliver an EBIT margin
improvement of 50 to100 bps at constant exchange rates (CER).

Nobel Biocare is moving from 'rebuilding' to a phase of continual performance
improvements. Within the next 3 to 5 years, assuming markets improve beyond
2013 to modest mid-single digit growth, Nobel Biocare targets growing at least
in line with the market and to improve EBIT margin also continually between 50
to 100 bps per annum at constant exchange rates.

Nobel Biocare (NOBN, SIX Swiss Exchange) is a world leader in innovative
restorative and esthetic dental solutions. As a complete solutions provider,
Nobel Biocare offers the most comprehensive range of solutions from tooth to
root, for single tooth to fully edentulous indications. The solutions
portfolio covers dental implants (including the key brands NobelActive®,
Brånemark System® and NobelReplace®, individualized prosthetics and equipment
(NobelProcera®, guided surgery solutions and biomaterials). Nobel Biocare has
approximately 2'500 employees and recorded revenue of EUR 580.5 million in
2012. The company is headquartered in Zurich, Switzerland. Production takes
place at seven sites located in Canada, Israel, Japan, Sweden, and the US.
Nobel Biocare has 34 direct sales organizations.

For further information, please contact:

Süha Demokan
Investor and Corporate Relations
Tel: +41 43 211 42 30, +41 79 430 81 46
suha.demokan@nobelbiocare.com

The complete Full Year Report 2012 is available in English, while an abridged
version of the report is available in German. Both documents can be downloaded
from the Nobel Biocare website at
http://corporate.nobelbiocare.com/en/investors and
http://corporate.nobelbiocare.com/de/investors, respectively. A preliminary
PDF version of the Annual Report 2012 in English can be downloaded via
www.nobelbiocare.com or obtained in PDF format from
investor.relations@nobelbiocare.com.

As Nobel Biocare is covered by various financial analysts, the company has
contracted Vara Research to periodically update the consensus analysis, based
on the estimates of all participating brokerage firms. The most recent analyst
consensus can be accessed at any time via the following site:
http://corporate.nobelbiocare.com/en/investors/financial-analysis/analyst-consensus.aspx.

Investor and analyst presentation

An investor and analyst presentation in English will be held today, 19
February 2013, at 10.00 am CET at the SIX Swiss Exchange, ConventionPoint,
Auditorium, Selnaustrasse 30, Zurich, Switzerland.

This presentation can be listened to live via audio-webcast at
www.nobelbiocare.com/investors and is also accessible via telephone
conference, using the dial-in numbers below:

+41 (0)91 610 56 00  Continental Europe
+44 (0)203 059 58 62 UK
+1 (1) 631 570 56 13 USA

For additional local dial-in numbers, please Investors section of our website:
www.nobelbiocare.com.

To ensure timely participation, please call approximately 5-10 minutes prior
to the times indicated above.

Recording of the webcast will be available on the website shortly after the
end of the conference.

Financial calendar:

Annual General Meeting 28 March 2013
Interim Report 1, 2013 25 April 2013
Interim Report 2, 2013 22 August 2013
Interim Report 3, 2013 07 November 2013
Full Year Report 2013  18 February 2014

Disclaimer

This media release contains forward-looking statements based on beliefs of
Nobel Biocare's management. When used in this media release, words such as
"anticipate", "believe", "estimate", "expect", "intend", "plan" and "project"
are intended to identify forward-looking statements. They may involve risks
and uncertainties, including technological advances in the medical field,
product demand and market acceptance, the effect of economic conditions, the
impact of competitive products and pricing, foreign currency exchange rates
and other risks. These forward-looking statements reflect the views of Nobel
Biocare as of the date made with respect to future events and are subject to
risks and uncertainties. All of these forward-looking statements are based on
estimates and assumptions made by management of the company and are believed
to be reasonable, though are inherently uncertain and difficult to predict.
Actual results or experience could differ materially from the forward-looking
statements. Nobel Biocare disclaims any intention or obligation to update
these forward-looking statements.

Full Year Report 2012 (PDF)
Presentation (PDF)
Preliminary version of the Annual Report 2012 (PDF)

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