Straumann steps up cost reduction program and sharpens focus on

Straumann steps up cost reduction program and sharpens focus on customer needs

  *Q1 revenue contracts 6% (5% organic1) to CHF 175 million as markets in
    Europe and Japan fail to pick up
  *Modest organic growth in North America despite strong comparative
    prior-year period
  *Marco Gadola takes over responsibilities as new CEO
  *Group intensifies measures to reduce operational costs including headcount
    reduction of approximately 200 to around 2230 by year-end
  *Organizational and leadership changes to sharpen focus on customer needs
    and solutions
  *Mid-term outlook unchanged

(in CHF million)                     Q1 2013              Q1 2012
Europe                               98.5                 106.5
Change in CHF %                      (7.5)                (6.5)
Change in l.c.%                      (8.4)                (2.1)
Change organic %                     (7.7)
In % of Group revenue                56.4                 57.5
North America                        45.3                 44.7
Change in CHF %                      1.3                  11.3
Change in l.c.%                      0.2                  14.0
Change organic %                     2.1
In % of Group revenue                25.9                 24.1
Asia / Pacific                       22.7                 25.0
Change in CHF %                      (9.3)                (1.9)
Change in l.c.%                      (4.4)                (2.4)
In % of Group revenue                13.0                 13.5
Rest of the World (ROW)              8.3                  8.9
Change in CHF %                      (6.6)                0.2
Change in l.c.%                      (2.6)                4.3
In % of Group revenue                4.8                  4.8
GROUP                                174.8                185.1
Change in CHF %                      (5.6)                (1.8)
Change in l.c.%                      (5.5)                1.6
Change organic %                     (4.7)

Basel, 29 April 2013: In the first three months of 2013, the Straumann Group
generated revenue of CHF 175 million, 6% less both in local currencies (l.c.)
and Swiss francs than in the comparative period of last year, which benefitted
from two additional selling days. Taking the discontinued activities into
account, the decline was slightly less than 5%.

While revenue developments were stable in North America and positive in China
and Latin America, the large European and Japanese markets suffered further
from the weak economy and competition from lower cost players.

In response to the longer-than-anticipated delay in market recovery, Straumann
today announced further restructuring and cost-saving initiatives, including
the reduction of approximately 200 jobs, bringing the global workforce to
about 2230 by year end.. Most of the reductions (approximately 110) are
planned at the Group's headquarters in Basel. These initiatives are expected
to result in one-time charges of CHF 18-20 million in the first-half of 2013.

Chief Executive Officer Marco Gadola commented: "The first quarter provided
further evidence that consumer sentiment is not recovering at the expected
pace and our environment is changing faster than anticipated. We are therefore
stepping up our efforts to adapt organizationally and strategically. Our
present organization was built based on rather bullish market growth
expectations but, in view of current developments and the mid-term economic
outlook, today's level of staffing is no longer sustainable. We are addressing
this with due regard for our social responsibilities as an employer. We are
also adapting our structure and leadership in order to increase agility and to
strengthen our focus on customer needs and solutions. Despite resizing, we
will continue to have a strong, competitive team of professionals to drive our
business in the future."


The main structural changes are designed to simplify the functional set up and
accelerate decision times. At the same time they will further strengthen
Straumann's focus on customer needs and solutions. The new structure is
reflected in following changes within the Executive Management Board (EMB).

While Thomas Dressendörfer (CFO), Andy Molnar (Head Sales North America) and
Dr Alexander Ochsner (Head Sales APAC) all remain in their current positions,
Frank Hemm (previously Head EMEA, LATAM and Distributors) takes on the newly
created role as Head Customer Solutions & Marketing. Dr Sandro Matter
(previously Head Business Unit Prosthetics) also assumes a newly created role
as Head Strategic Projects & Alliances. Wolfgang Becker (Head Sales Central
Europe), Guillaume Daniellot (Head Sales Western Europe/LATAM) and Dr Gerhard
Bauer (Head Research, Development and Operations) all join the EMB from within
the organization.

After eight years with the company, Dr René Willi, who headed the Surgical
Business Unit, is leaving to pursue his career outside Straumann. René Willi
has made many contributions to product development and the surgical business
and Straumann would like to thank him in addition to wishing him all the best
for the future.


Implant sales in Q1 benefitted from the recently-introduced NNC implant and
the Bone Level range, but were generally softer than in the comparative period
of last year.

The restorative business, which comprises digital products, CADCAM milled
elements and standard prosthetics, was also slower. This reflects the
competitive landscape in general, the discontinuation of the intra-oral
scanner distribution business in October, and transfer of Straumann's software
and guided surgery business to Dental Wings.

In contrast, the smallest franchise, regeneratives, achieved moderate growth,
driven by Straumann Allograft and Emdogain.

In the first quarter, Straumann introduced several new solutions to rekindle
and support future growth. These were presented at the IDS tradeshow in
Cologne and include the 'Scan & Shape' prosthetics service and CARES Visual
8.0. The former offers access to CARES CADCAM prosthetics to customers who do
not have the requisite scanning capabilities; the latter opens Straumann's
CADCAM system to a broader range of customers.

Further challenges in Europe

Subdued consumer confidence continued to constrain the European dental
markets, which contribute 56% of Straumann's Group revenues. In the first
quarter of 2013, sales were generally lower (-8% in l.c.) than in the prior
year. One percentage point of the decrease was due to the discontinued
distribution of intra-oral scanners. Spain and Italy, which are fragmented
markets and highly permeated by cut-price competitors, suffered the biggest
declines. Germany and Switzerland also struggled and were unable to reach
prior-year levels.

Modest growth in North America

North America succeeded in matching the previous first-quarter level of
revenue in local currencies, when regional sales reached a record high. In
Swiss francs, revenue rose 1% to CHF 45 million or 26% of the Group. Excluding
the discontinued intra-oral scanner distribution business, revenue increased
2% in l. c., or 3% in Swiss francs.

China and Australia: beacons in Asia/Pacific

In Japan, which represents roughly half the APAC market, public perception of
implant dentistry has been tarnished by the media and will take time to
restore. China and Australia both reported solid performances but only partly
compensated for the shortfalls elsewhere. As a result, regional revenue
declined 4% in local currencies and 9% in Swiss francs to CHF 23 million,
corresponding to approximately 13% of Group sales.

Strong Brazil offsets irregular distributor markets in the Rest of the World

The 'Rest of the World' region contributes approximately 5% of Group revenue,
most of which is generated in Latin America. First-quarter revenue declined 3%
in l.c., or 7% in Swiss francs, to CHF 8 million. The decline was mainly due
to difficult market conditions in the Middle East and a soft performance in
Mexico - in contrast to Brazil, which posted strong growth.

OUTLOOK (barring unforeseen circumstances)

Straumann expects the effects of the weak economy and consumer sentiment to
continue in Europe, while attractive markets like North America, China and
Brazil should perform well.

Based on the overall business fundamentals, strategic plan and its cost
optimization program, the Group assumes that it will be able to deliver
improved profit levels2 in 2013, even if the market remains sluggish. In the
mid term, it aims to return to solid growth and a significantly higher
operating margin.

1 'Organic growth' excludes the effects of currency fluctuation and the
discontinuation of distribution of iTero intra-oral scanners announced in
October 2012.

2 Excluding exceptionals in 2012 and charges for the cost optimization

About Straumann

Headquartered in Basel, Switzerland, Straumann (SIX: STMN) is a global leader
in implant, restorative and regenerative dentistry. In collaboration with
leading clinics, research institutes and universities, Straumann researches,
develops and manufactures dental implants, instruments, prosthetics and tissue
regeneration products for use in tooth replacement and restoration solutions
or to prevent tooth loss. Straumann currently employs approximately 2400
people worldwide and its products and services are available in more than 70
countries through its broad network of distribution subsidiaries and partners.

Straumann Holding AG, Peter Merian-Weg 12, 4002 Basel, Switzerland.

Phone: +41 (0)61 965 11 11 / Fax: +41 (0)61 965 11 01

E-mail: or



Corporate Communication:

Mark Hill Thomas Konrad

+41 (0)61 965 13 21 +41 (0)61 965 15 46

Investor Relations:

Fabian Hildbrand

+41 (0)61 965 13 27

Analysts' and media conference call

Straumann will present the 2013 first-quarter net revenue results to
representatives of the financial community and media in a webcast telephone
conference call at 09.00 h Swiss time.

The audio webcast of the conference call ( will be
available until 30 May 2013.

The telephone conference can be accessed at:

+41 (0)58 310 50 09 (Europe and ROW)

+44 (0)203 059 58 62 (UK)

+1 (1)631 570 56 13 (USA)

+1 (1)866 291 41 66 (USA - toll-free)

Presentation slides

The presentation slides that will be used in the aforementioned conference
call are available at and
on the Investor Relations pages at

Upcoming reporting dates

20 August 2013 Q2 sales and first-half results 2013

31 October 2013 Q3 and 9M sales 2013

Details on upcoming investor relations activities are published on (Investor Relations > Calendar).

Straumann 2012 Online Annual Report:

Straumann Media Releases subscription:

RSS feed subscription:


This release contains certain "forward-looking statements", which can be
identified by the use of terminology such as 'measures', 'outlook',
'anticipated', 'will', 'continue', 'to drive', 'future', 'further', 'expect',
'should', 'assume', 'improve', 'aim', or similar wording. Such forward-looking
statements reflect the current views of management and are subject to known
and unknown risks, uncertainties and other factors that may cause actual
results, performance or achievements of the Group to differ materially from
those expressed or implied. These include risks related to the success of and
demand for the Group's products, the potential for the Group's products to
become obsolete, the Group's ability to defend its intellectual property, the
Group's ability to develop and commercialize new products in a timely manner,
the dynamic and competitive environment in which the Group operates, the
regulatory environment, changes in currency exchange rates, the Group's
ability to generate revenues and profitability, to realize its expansion
projects in a timely manner, and to maintain its business relationships with
suppliers, customers and other third parties. Should one or more of these
risks or uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described in this
report. Straumann is providing the information in this release as of this date
and does not undertake any obligation to update any forward-looking statements
contained in it as a result of new information, future events or otherwise.

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