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Straumann Reorganizes to Unlock Future Growth

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Posted: December 5, 2011

 

  • New Group structure will: improve efficiency and agility, address increasing complexity, foster entrepreneurism and shorten time to market
  • Executive management team expanded
  • Initiative will improve efficiency but does not involve job reductions
  • 2011 operating profit margin still expected to be within guidance range, in spite of reorganization costs
  Basel, 5 December 2011: The Straumann Group today announced that it is to implement a new organizational structure in the New Year, with the objective of enhancing agility, improving efficiency, fostering entrepreneurism and shortening time to market.   

Shaping the future in a changing environment The expansion of Straumann’s portfolio and geographic reach in recent years has increased complexity, particularly for its sales team. Furthermore, as in other industries, the dental markets have been weakened by the global economy and will continue to change as new technologies and geographic markets emerge. Throughout 2011, the Group has therefore been working on multiple initiatives to gear its organization for the present environment and for the long term – in line with its strategic project ‘Vision 2020’.   Gilbert Achermann, Chairman of the Board of Directors explained: “Straumann’s existing structure served well for several years and has helped us to deliver above-market performance. But we are now operating under very different conditions – in maturing markets, new segments and geographies, with additional products and new technologies. We still have significant inherent potential but need to adapt structurally and culturally in order to unlock it and sustain our success in the years ahead”.   

New structure to win in the marketplace The reorganization will give greater autonomy and scope for entrepreneurism to the three sales regions (EMEA & Latin America; North America; Asia/Pacific) and the businesses (‘Surgical’, ‘Prosthetics’ and ‘Regenerative’). At the same time, the Group has been able to eliminate a complete layer of senior management, shortening decision times and streamlining processes. The reorganization does not involve downsizing, and job reductions are not foreseen.   Beat Spalinger, President & CEO, noted: “A company that seeks to win in tomorrow’s marketplace must be agile, entrepreneurial, close to customers, and able to offer excellent service. I am convinced that the organization we are announcing today – and will implement in 2012 – will provide us with those attributes. Importantly, it will reduce complexity for our sales team. This will increase efficiency, get us closer to customers and ultimately drive top line growth”.   

Executive Management expanded To represent the regions and leading business units at top management level, the Executive Management Board will be expanded from four to seven members. Beat Spalinger (President & CEO), Thomas Dressendoerfer (CFO), and Dr Sandro Matter (EVP Prosthetics) will be joined by: Dr René Willi (EVP Surgical), Frank Hemm (EVP Sales EMEA & LATAM), Andy Molnar (EVP Sales North America), and the EVP Sales Asia Pacific. The latter position has still to be nominated and will be filled by the CEO ad interim. The new executive positions have been filled through internal promotions.   The current Executive Vice President of Global Sales, Franz Maier, who helped lead the reorganization project, has decided to pursue his career outside Straumann and will leave at the end of the year. Since joining the company in 2007, Mr Maier has made a significant contribution to establishing Straumann as the market leader in implant dentistry and in strengthening its position in regenerative and restorative dentistry. Under his leadership, the company achieved a new level of professionalism in global sales and marketing, the fruits of which have been above-market performance and share gain. Straumann would like to thank Mr Maier and wishes him all the best for the future.   

Vision 2020 In 2010, the Board of Directors and Management began work on ‘Vision 2020’, a project that looks ahead to the long-term development of the Straumann Group. The new organization has been designed in the context of this Vision and the Group’s long-term strategic goals, which focus on value creation for all its stakeholders. The outcome of Vision 2020 will be communicated in the course of 2012.   

Financial implications – 2011 guidance Straumann foresees exceptional costs due to the reorganization of approximately CHF 3-4 million in 2011 and approximately CHF 4-5 million in 2012. In spite of this and increasing challenges in the prevailing economic environment, Straumann still expects to deliver an operating profit margin within its existing guidance.     

About Straumann Headquartered in Basel, Switzerland, the Straumann Group (SIX: STMN) is a global leader in implant and restorative dentistry and oral tissue regeneration. 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 more than 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 Email: investor.relations@straumann.com orcorporate.communication@straumann.com 
Homepage: // http://r2.newsbox.ch/d149/sh/rd11233/p1942234/c1130/www.straumann.comwww.straumann.com<http://r2.newsbox.ch/d149/sh/rd11233/p1942234/c1130/www.straumann.com>   
Contacts:   
Corporate Communication: 
Mark Hill
+41 (0)61 965 13 21   
Thomas Konrad
+41 (0)61 965 15 46

Investor Relations: 
Fabian Hildbrand
+41 (0)61 965 13 27

Disclaimer This release contains certain forward-looking statements, which can be identified by the use of terminology such as ‘to unlock’, ‘future’, ‘will’, ‘expected’, ‘objective’, ‘to gear’, ‘to unlock’, ‘foreseen’, ‘does not involve’, ‘vision’, ‘value creation’, ‘foresees’, ‘guidance’ 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 hire and retain key talented individuals, 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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