Nobel Biocare -...

Nobel Biocare

World leading in innovative restorative and esthetic dental solutions

Investor Meetings – September 2008

Disclaimer

This presentation contains forward-looking statements based on beliefs of Nobel Biocare's

management. When used in this presentation, 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.

3

Improving the quality of life

• Functioning teeth allow to eat the foods for a balanced diet

• Healthy, good-looking teeth contribute to attractive facial appearance

• Teeth contribute to better articulation and speech

• Teeth are essential for preserving natural jaw bone levels

More than just a smile

4

Only 12 million people have been treated with implants

Source: WHO and Nobel Biocare estimates

~ 70 m patients treated conventionally

~12 m patientstreated with implants

50% PFM single crowns

32%PFM bridges

>240 m people missing one or more teeth (North America, Europe, Japan)

18%Ceramic crownand bridges

Implant treatments Crown and bridge treatments

5

Nobel Biocare solutions used:

NobelReplace™ Tapered I Procera® Zirconia

Abutment I Procera® Crown I Procera®

Laminates

Case courtesy of: Dr. Adauto de Freitas, Dr.

Marcelo Kyrillos and Dr. Marcelo Moreira,

BrazilSurgeon: Dr. Adauto de Freitas, BrazilDental Technician: Hélio Laudelino Gonçalves de Oliveira, BrazilPatient Case - Cibele Ustra, Brazil

Teeth can make the difference

Nobel Biocare solutions used:

Procera® Bridge I Procera® Crowns I Procera® Laminates

Case courtesy of: Dr Iñaki Gamborena, SpainDental Technician: Iñigo Casares, SpainPatient Case - Beatriz Lorrañtaga Ugarte, Spain

Implant and crown treatment

Bridge and crown treatment

6

Building on two Swedish innovations

Professor Per-Ingvar Brånemark

Dr Matts Andersson

ImplantsStandardized solutions

Procera (ceramic)Individualized solutions

How everything began

7

The spirit of Alfred Nobel at Nobel Biocare

Discovery of osseointegration by Professor Per-Ingvar Brånemark

First patient treated with dental implants

1950 1953 1965

Laying the grounds for success

8

Nobelpharma AB is founded in Gothenburg, Sweden

Development of Procera® by Matts Andersson

Introduction of Procera® / approved by Swedish National Board of Health

1981 1983 1989

Advancing to industry leadership

9

Development of modern ceramics for dentistry

Nobelpharma becomes Nobel Biocare

Acquisition of US-based Steri-Oss – Nobel Biocare world’s largest dental implant provider

1992 1996 1998

Taking dentistry to the next level

10

First application of TiUnite® surface on Brånemark implants

Beginning of Nobel Biocare’s full solution provider approach

Introduction of first guided surgery system NobelGuide™

200520022000

Providing integrated root-to-tooth solutions

Laboratory

Restorative

Surgical

Crown & Bridge

CAD/CAMIndividualprosthetics

Guidedsurgery

Tissue Regeneration

Biologics

Implants,Standardized Prosthetics

• Individualized product offer from implants to prosthetics thanks to Procera

• Fully digitalized manufacturing & logistics process for individualized prosthetics

• Only complete oral rehabilitation system with Nobel Guide guided surgery

• All-ceramic, metal-free, biocompatible products offer

Procera®

Platform for sustainable profitable growth

Nobel Biocare’s competitive strengths

Marketing and sales excellence

Leading in individualized, full-ceramic solutions

Leading in standardized solutions

Scientific leadership Strongest global presence

Best in class performance

Innovator of digital dentistry

13

Catering for all needs of dental professionals

Individualizedsolutions

Standardized solutions

Standardized &individualized solutions

From root to tooth

14

Most complete portfolio of dental implants

Tapered impants

Parallel-walled impants

15

Complete offering of individualized solutions

Crowns, bridges, laminates

Advanced materials

Zirconia Alumina

16

Advancing digitalization of dentistry through innovations

Computer AidedManufacturing (CAM)

Treatment Planning (CAD)Diagnosis

Procera®

17

Unique platform for complete digital oral rehabilitation

• Automated manufacturing and logistics process

• Manufacturing of individualized full-ceramic crown, bridges and laminates

• Integrated digital data transfer

• Worldwide delivery

• 3 manufacturing sites: Sweden, USA, Japan

Computer-aided manufacturing of Procera® individualized solutions

Procera®

18

Leading digital surgery planning and delivery system

• Surgical templates ensure optimal placement of implants

• Increases predictability and safety of procedures

• Supports minimally-invasive (flapless) procedures

• In advance production enhances practice profitability

Screenshot of the NobelGuide surgery planning software

NobelGuide™




Scientific leadership

Leading in individualized, full-ceramic solutions


Strongest global presence



20

Standing for scientific leadership

• Applying highest standards

• Heritage of over 40 years of scientific research

• Solutions documented in more than 1.900 peer-reviewed scientific publications

• Committed to product stewardship and long-term studies

• All solutions FDA cleared

One of the first SEM pictures showing bone integrating with an implant

High clinical standards

21

Only provider to offer biomaterial surface

• Unique osseoconductiveproperties

• Most widely used implant surface

• Clinically proven with more than 90 publications including long-term follow up (>5 years)

• Accelerates bone growth

Microscopic magnification of the TiUnite surfaceCourtesy of Professor P. Schüpbach

TiUnite®




Leading in individualized, full-ceramic solutions Innovator of digital dentistryLeading in standardized

solutions



23

Present on all continents

Yorba Linda Mahwah

KarlskogaStockholm

Tokyo

Active in over 70 countries – 5 state-of-the art manufacturing sites





Leading in individualized, full-ceramic solutions Innovator of digital dentistry

Scientific leadership



25

Partnering with our customers

• Individualized training and educational activities

• Global conferences and congresses

• University Partner Program with 24 leading dental universities

• Patient information program NobelSmile®

Nobel Biocare sales booth at the Academy of Osseointegration conference, Boston MA 2008

Unique marketing mix

26

Sharing knowledge with universities and experts

24 universities / 60 academic institutes / 600 industry experts






Leading in individualized, full-ceramic solutions Innovator of digital dentistry

Scientific leadership Marketing and sales excellence

28

Leading operational setup

• High-tech manufacturing processes and infrastructure

• Superior order-handling quality and efficiency

• Production facilities on all continents

• Only company with production facility for individualized solutions in Asia

Production of individualized solutions at the new Procera production facility in Tokyo, Japan

Expanding infrastructure

29

Dedicated employees

• Over 2.400 committed employees in 36 countries

• Multicultural, interdisciplinary and customer-focused teams

• 45% working in EMEA, 30% in North America, 25% in Asia & Latin America

• 43% women, 40% below the age of 40

Nobel Biocare staff and customers at a World Tour event in 2007

Building on a global team

Interim results 2, 2008

11 August 2008

Domenico Scala, CEODirk W. Kirsten, CFO

Interim results 2, 2008

H1: Progress on track

• Successful launch of NobelActive

• Global reach strengthened with new subsidiaries in Hungary, Taiwan

• Russia reached top 6 in EMEA within one year of going direct

• Substantial sales force strengthening in all regions

• All key management positions in Europe appointed

• US organizational realignment completed: momentum improving

• Changing go-to-market approach with stronger customer orientation

• Medicim acquisition: NobelGuide software developer

• Danaher partnership: pre-installment of NobelGuide on i-Cat cone beam system

H1: Key financial points

• Revenue growth (CER) flat at EUR 323.8 million

– improving US sales

– successful NobelActive launch

• Leading gross profit margin at 83.0% despite NobelActive ramp up cost

• Profit from operations (EBIT), margin down

– lower reported revenues, gross margin

– NobelActive launch, sales force investments

• Financial expense affected by one-off balance sheet de-risking

• Operating cash flow increased to EUR 59.1 million

Improving revenue growth in US; successful NobelActive launch

-5.0%

10.7 0.2%

1.9%

12.6% 52.4

100.4

160.3

LA/RoW

APAC

NA

EMEA• Continued cautious ordering pattern• E Europe, Russia strong growth• All vacant mgmt positions filled

• Strong NobelActive acceptance• Sales force increased, strengthened• Improving reordering

• China, India strong growth• NobelSpeedy/Groovy approval pending

• Highest share of 2007 WC sales• Brazil: temporary business interruption

Note: growth rates at CER

Revenues H1 2008(EUR million)

Gross profit margin development

(0.9%)

(0.4%)83.0%

84.6% (0.3%)

H1 2007 AccountingReclassifications

Business/Productmix, Pricing &

Royalties

One-off items(e.g. NobelActive ramp

up, ABT)

H1 2008

Gross profit margin(in % of net sales)

EBIT: high operating leverage

volume driven

102.8 5.9

4.2

92.7

109.4 6.6

H1 2007 Currrency H1 2007 CER

Gross profit Fixed costs H1 2008

EBIT (EUR million)

investment in growth

Net financial expense (EUR million)

Net financial expense: impacted by one-offs

(0.9)

14.3 19.7

6.3

(0)

H1 2007 Interest expense Currency gains Realized,unrealized losses

from financial

H1 2008

portfolio

Net income development

(10.1)

(11.7)

57.2

85.6 (6.6)

H1 2007 Currency Operatingprofit

Financial expense& taxes

H1 2008

Net income (EUR million)

H1 2008before one-offs

& taxes

68.9

Operating cash flow up

15.0

8.5 59.1

48.1 (12.5)

H1 2007 Operations Lower working capitalincrease

Lower taxpayments

H1 2008

Operating cash flow (EUR million)

Financial summary

• Sales development increasingly in line with company forecast

• Strong improvement in profit due to high operating leverage expected

– improving top line

– efficiency gains

– non recurring one-offs

• Guidance for the full year 2008 re-confirmed

Industry developments and trends

• Economic uncertainties leading to a more cautious ordering pattern

• Science based innovation and cost-effective solutions continue to receive premium

• CAD/CAM, digital dentistry impacting dentist and laboratory workflow

– Dentists gain effectiveness through chair time optimization

– Laboratories gain competitiveness through outsourcing

• Full solution provider concept increasingly a pre-requisite

• Integrating implants, prosthetics, guided surgery, CAD/CAM and outsourcing next step

Nobel Biocare: INTEGRATED full solution provider


Enhancing platform to deliver sustainable profitable growth


Leading in individualized, CAD/CAM solutions





Broadest set of growth drivers

Experienced userExpands treatment optionsClinically tested and proven

NobelActiveNobelReplace All-on-4

NobelGuide

Leading guided surgery toolOptimal placement increases treatment casesClinically proven

Procera

Largest product rangeLargest installed baseMost clinical/scientific documented system

Cost effective for the patientAddresses fully edentulous marketInnovative clinical procedure

Starter implantHigh predictabilityMost used implant worldwide

NobelActive

NobelActive – a success

Peak sales: EUR >50 mio p.a.

• Most successful new implant launch ever• Positioned for experienced users• Effective for customer conversions• Further line extension in 2009

New go to market strategy

• 12 months prospective multi-centre study

• 8 month pre-launch, mandatory training

• Highest involvement of clinicians

Regaining trust

• Scientifically based innovation

• Responsible introduction

Procera: Design and manufacturing of individualized prosthetics

• Process for the industrial production of individually designed all-ceramic crown, bridges, laminates and abutments

• Alumina for beautiful esthetics and Zirconia for higher load situations

• Ceramic bridges for natural teeth and implants, as well as titanium bridges for implants

• Cost-effective and profitable - short production time

2012(8’000)

2’800

5’000

200

Conversion

Significant growth opportunity from conversion

2012 Market for Crowns & Bridges(USDm)

4’950

CAD/CAM on teethbiggest untapped

opportunity

PFM All ceramicconventional

All ceramicCAD/CAM

800400

2007(6’150)

Source: Millenium Report 2008, NobelBiocare estimates

Market drivers

• High esthetics, documented long-term strengths

• Metal free – no allergic reactions• Digitalization - strong economics for labs• More material options

PFM conversion to ceramics

• On teeth (CAGR ’07-’12: 40%)• On implants (CAGR ’07-’12: 20%)

Make ceramic CAD/CAM simple and cost effective so dentists make them the standard of care

Our ambition:

Procera: most competitive offer

Scientific documentation

Installed base

Product range Materials Precision Time

CAD System(scanner and software)

Totaloperational

time

Competitor 2

Competitor 1

Competitor 3

CAD/CAM outsourcing is superior; Procera leading system

Conventional PFM

CAD/CAMInlab

ProceraOutsourcing

InvestmentScanner and PCProduction Equipment

Work procedure*Model FabricationBridge DesignProductionFinishing /Modification

Number of Work StepsWorktime needed

Operational costService Contract / LicenceLabor trainingLabor time / costMaintenanceMaterial costUpgrade costsRemakes of substructure

**

* example with 4-unit bridge exclusive veneering ** cost for ready to use product

Leverage and expand largest installed Procera base

Largest installed base

• > 4’000 Procera laboratories in 54 countries

• > 5’000 NobelGuide customers

• > 8 Mio. restorations with Procera

• First, most proven and best documented CAD/CAM System in the market

• Only FDA compliant software

2008: Share expansion and GPs

• New materials, wider product portfolio, new software

• Higher presence in GP tooth restoration

• Targeted offers to labs, dedicated sales force

• Global customer support network

• Partnerships with leading equipment manufacturers (pre-install software)

Shaping digital dentistry

Computer AidedManufacturing (CAM)

Treatment Planning, CADDiagnosis

• Digital patient data– Scanning– Casting

• Digital rehabilitation concept– NobelGuide surgical– Procera CAD

• Digital aided manufacturing – Unique Procera manufacturing– Breadth of offer– High, consistent quality

Procera: Unique platform for complete digital oral rehabilitation

• Intra-oral scanning• Partnerships with leading

equipment manufacturers

• NobelGuide prosthetics• Most comprehensive digital

tooth library• Software for individual 3D

patient treatment simulation

• Procera “on-demand”• Global manufacturing

network• Regional mini-plant

concept

NobelGuide: Leading integrated digital dentistry platform

NobelGuide™• Installed base with over 5,000 customers• Pre-installment options to increase installed base

Today• Patient acceptance:

– reduced treatment time– Minimally invasive

• Expands treatment options

Tomorrow• Integrating implant treatment and prosthetics• Integrating maxillofacial and orthodontic planning• Integrating intra-oral scanning

NobelGuide

Development Testing Launch

‘09

tbd

tbd

‘08

tbd

tbd

‘09

‘09

Individualized products: Pipeline supports share expansion

Targeted market*

Technology

Products

Procera overdenture

Maryland bridge

~ 10% of implant treatments

~ 7% of all children are missing lateral teeth

Scanner upgrade

NobelGuideprosthetics

‘09

> €20 mio sales potential

NewMaterial options

Titanium crowns

Acrylic temporary crowns

Coloured zirconia crowns

~ 5% of crowns

tbd

~ 30% of crowns

Translucent laminate ~ 10% of laminates

Coloured zirconia bridges

~ 20% of bridges

* 2012

tbd

• New treatment solution

• Growing segment, target leadership

Clinical study Launch*

Standardized products: Pipeline with significant sales potential

Potential

New Implants

>50 million Euro

Development

NobelActive

Ceramic

Bone inductive

tbd

‘13

Drug coated

‘08

tbd

>20 million Euro

>50 million Euro

>100 million Euro

‘09

Nobel Active Line Extensions

• Target market leadership

Long implants

Short implants

Narrow Implant

Prosthetic Components

NobelGuidefor NobelActive

‘09

‘09

tbd

Q4/08

’09/10

tbd

Mini-Ball Implant

“Baby”implant

Standardized products: Pipeline with significant sales potential

Clinical study Launch PotentialDevelopment

tbd

tbd

Maxillo-facial >10 million Euro

New Zygoma implant

Maxillofacial implant

tbd

‘11

tbdPlanning software

Maxillofacial

NobelGuideZygoma

NobelGuidenew release

RegulatoryRegulatory

>10 million Euro

New Solutions

‘10Graftless> 20% of treatments

need grafting

Ortho-dontics

• Higher patient comfort• Higher treatment

success• Fast growing segment• Target market

leadership

Orthodontic Mini-Implant ‘09

NobelGuideOrtho

‘9/10

Unique position to capitalize on growth drivers

• Active in over 70 countries, 37 direct sales offices

• Leading presence in high growth Russia, China, India, Brazil

• Highest geographic coverage

• Proven track record of breakthrough innovations

• High success rate of new product introductions

• Comprehensive portfolio and strong pipeline

• Procera: unique digital platform

• State-of-the-art manufacturing facilities in all key regions

• Industry leading gross profit margin due to economies of scale

• Strong cash flow to finance growth

• Highest absolute R&D spend in the industry

• Industry leading profitability

Global reach

Breadth & innovation

Leading operational set up

Unmatched resources

Take-aways

• Market leader in most attractive segment in health care

• Organizational improvements well under way

• Main pillars to deliver sustainable growth:

– Reinforcing market leadership in standardized products: Integrated offer

– Building on initial NobelActive success in H2 08 and 2009

– Accelerate leading position with Procera: Targeted offers, dedicated sales force

– Shape digital dentistry: Leverage NobelGuide

• Leading in patents and science

• Pipeline demonstrates continued innovation potential

Media and investor contacts

Nicolas Weidmann Süha DemokanVP Corporate Communicatons Head of Investor Relations

Tel +41 43 211 42 80 Tel +41 43 211 42 30

Mobile +41 79 372 29 81 Mobile +41 79 430 81 46

[email protected] [email protected]

mailto:[email protected]

mailto:[email protected]

Financial reporting calendar

Interim Report 3, 2008 03 November 2008

Full year report 2008 11 February 2009

Interim Report 1, 2009 29 April 2009

Interim Report 2, 2009 12 August 2009

Interim Report 3, 2009 4 November 2009

Detailed financial calendar on www.nobelbiocare.com

Nobel Biocare World Tour 2008

April 4-6 MumbaiApril 25-27 ShanghaiJune 13-14 Dublin*June 27-29 SingaporeJuly 16-18 Mexico CityAugust 7-9 São PauloSeptember 11-13 MaastrichtSeptember 19-21 TaipeiSeptember 26-27 Madrid*October 3-4 Lisbon*November 6-8 RiccioneDecember 10-11 Buenos Aires*tbd Gold Coast/Australiatbd London*

* special scientific program

Dates and locations of the Nobel Biocare World Tour 2008

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