Annual Report 2003 - Nobel Biocare Corporate

NOBEL BIOCARE ANNUAL REPORT 20035CEO STATEMENTA winning new strategySustained profitability, acceleratedrevenue growth, increasedmarketing and sales activities, over110 000 dentists trained, reducedproduct assortment, global supplychain processes and ISO 14001 certification.These are just some of themilestones achieved by this companyin 12 months. But, although proud ofall we have done, I expect more of theyear ahead. 2004 will be even better.2003 was a year of accelerated growthand further improved profitability, atrend we successfully got underwaythe previous year. We achieved 19 percentrevenue growth in local currencies.In the fourth quarter, revenue roseby 24.8 percent, gaining momentumin both the US and Germany. Thiswas all pure volume growth, withoutany price increases.Revenue growth in localcurrencies* (%)2015105014.412.019.02001 2002 2003EBIT Margin (%)252015105016.022.626.12001 2002 2003The net profit increased by 90.5 percentto EUR 72.0 million, an increasefrom 12.1 to 21.6 percent of revenue.A strategy for the futureBoth the revenue growth and acceleratedprofitability are the result ofour new strategy aimed at makingNobel Biocare an esthetic dentalsolution company. Starting with theacquisition of Procera at the end of2001, we have moved step-by-steptowards this vision.Procera is a vital part of our C&B&Iconcept making Nobel Biocare theonly company in the dental businesswith a complete offer of crowns,bridges and implants, covering allaspects of advanced and estheticaltooth reconstruction.Simultaneously, the market trendtowards higher esthetical demands isclear. As those born in the 1940’sgrow older, the need for estheticaltooth replacement will explode. Thisis a patient group that is financiallysolid and that will put high demandon the esthetical outcome. For them,function and chewing capacity arenot enough; they pay dentists toprovide new and beautiful teeth.This is where our C&B&I strategyfits. By combining the advantages ofimplant treatment with the opportunitiesfor individualized prostheticsof Procera, we give dentists the abilityto meet all patient demands. At thesame time, dentists are given freedomof choice. The goal is not for everydentist to place implants. It is thatboth dentists and patients shouldknow about the treatment. Whethera dentist carries out both the surgicaland the prosthetic part of the therapy,or refers the patient to a specialistwho places the implant, we leave thefinal choice to the individual dentist.They decide, we provide.We grew in all major markets,maintaining our position as marketleader in all regional markets as wellas being the overall market leader inthe US. And we grew both amongnew and experienced implant users.Of the 19 percent revenue growth,15 percentage units came from newcustomers.Furthermore, for the eigth consecutivequarter we were able to furtherimprove our profitability, reaching anEBITA margin of 28.9 percent andan EBIT margin of 26.1 percent for2003, well in excess of our targets.“2003 was a yearof acceleratedgrowth andfurther improvedprofitability”*excl. sales of Gore products