Ladies and gentlemen, good morning. Welcome to the Straumann 2016 First Quarter Revenue Conference Call. I'm Sarah, the Chorus Call operator. I would like to remind you that all participants will be in listen only mode and the conference is being recorded. After the presentation, there will be a Q and A session.
The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Mr. Marco Gadola, CEO. Please go ahead, sir.
Thank you, and good morning, everyone, and welcome to this conference call on Straumann's 2016 Q1 revenue. Thank you for taking time to be with us, especially as this is a busy day with several companies reporting results. We'll be referring to the presentation slides that were published on our website early this morning. And before we begin, I have to inform you that our discussion will include forward looking statements. So please take careful note of the disclaimer on Slide 2 of the presentation and at the end of our press release.
As usual, I will run you through the highlights and then Peter Haeckel, our CFO, will share the business and regional performances with you. After that, I'll tell you about our strategic progress, our rollout program of new solutions and our outlook. Then we will be glad to answer your questions. The key message this morning is that we have made a very good start to 2016 adding to the momentum that we generated last year, which confirms that our strategy is paying off. As you can see in Slide 4, group revenue reached CHF 223,000,000, making this a record quarter for Straubman.
Also I should add that the Neotense business in Brazil contributed to the pleasing results. Stripping out the acquisition and currency effects, group revenue grew 12%, which reflects the resources and energy we have invested in growth markets and segments and of course, the hard work and determination of our staff. Geographically, the large EMEA region contributed the lion's share of our growth together with North America. EMEA notched up high single digit growth while the other regions posted double digit rises. With regard to product sales, our new bone level tapered implant has just completed its 1st year in initial markets and has sold more than 300,000 units.
1 in every pipe implant we sold in Q1 was a BLT making it a key growth driver. In Q1, we launched and rolled out several other products and solutions at key trade events around the world and more are coming because we have a full pipeline. In view of this and the strong performance, we have raised our full year guidance for top line growth to the high single digit range. As you can see in Slide 5, the growth trend is positive across all our regions with the largest improvement in North America. But I will now hand over to Peter, who will take you through the details region by region.
Thank you, Marco, and good morning, everyone. On Slide 7, you can see that group revenue rose 15.4% in Swiss francs to CHF223,000,000 which, as Marco said, is the highest level of quarterly sales we have achieved to date. Exchange rate fluctuation neutralized each other. The strength of the U. S.
Dollar compensated for the weakness of the Brazilian real. And for the first time in many quarters, there was no significant FX impact on group revenue, which is a pleasant change. The acquisition effect amounted to CHF5.7 million and comprises revenue from Neodent in January February. Taking the FX and acquisition FX into account, our adjusted 2015 Q1 revenue would have amounted to CHF199 1,000,000. As a result, our revenue growth amounted to 12.2% in organic terms.
We have achieved a solid underlying performance in AMEA, which contributed almost half of the group's revenue and nearly 40 percent of our growth. Our other regions all posted double digit increases with North America and Asia Pacific contributing CHF7 and CHF 6,000,000 to overall growth, respectively. Our smallest region, Latin America, completed the picture with a growth contribution of €2,000,000 We can conclude from these results that our current growth is broadly spread, the dental implant markets are generally in good shape and we are working on the right things and are executing well. Slides 89 give you some regional color. Our traditional stronghold, EMEA, posted organic growth of 9%, reflecting the slow Q1 last year.
This year, demand has been broadly spread with notable performances in France, Iberia and Italy, all of which faced tough competition from value and discount sales. Business generated at Exports Dentale, the large Spanish trade fair, which takes place every 2nd year, contributed to the very good results in Iberia. We made further progress in building our business with dental chains and service organizations, being able to offer a full range of premium and value solutions supported by digital workflow makes us an attractive partner, and we have put resources into this fast growing segment, especially in North America and Europe. In Germany, we generated the same level of sales as last year. This reflects the fact that there were fewer working days for dental surgeries in Q1 this year due to the early Easter break, which predominantly affected our subsidiaries in Central Europe.
Across the Atlantic, North America reported a pickup from the deceleration we saw in the second half last year. 1st quarter revenue grew 13% organically despite the strong prior year baseline when VLT was fully launched. All business franchises contributed to the increase, especially RockSolid and BLT, which is important because tapered implant designs are very popular in North America. We have sold more than 100,000 BLT implants there so far. Asia Pacific, which accounts for approximately 16% of group revenue, posted the strongest increase with revenue climbing 21%.
The main contribution came from China, where the group continues to benefit from the dynamic market and the successful implementation of our hybrid distribution model. Japan also achieved double digit growth, fueled by the rollout of BLT and the increased share of VASILACTIVE. Sales also benefited from the recent introduction of WorkSolitaire. And finally, to Latin America, where revenue climbed 13% in local currencies, fueled by strong increase in Mexico and complemented by high single digit like for like growth in Brazil. The market conditions in the largest regional market remain challenging, and political changes are looming.
The main headache here is the Brazilian real, which despite the most recent recovery has depreciated 24% year on year and has increased revenues in Swiss francs. Looking at the performance by business segment on Slide number 10. Implant Solutions continued to achieve double digit growth across all regions, driven in particularly by BLT and our high performance material, RockSolid, which now features in more than 2 of every 3 strawman implants sold. In our Restorative business, demand for implant borne prosthetics, particularly our cost effective range of barrier based abutments and bar and bridge solutions was high and more than made up of lower sales and Tucson prosthetics. Biomaterials posted double digit growth as we continued to roll out the Butish range in Europe as well as our in license bone graft and membrane products in North America.
And with that, I will hand back to Marco.
Thank you, Peter. Since our last update in February, we have taken advantage of several international trade events to profile and launch new implant and CADCAM solutions. At the Congressional Internacional de Autontologia de Sao Paulo, Neodent promoted the full range of Amangirapak milling solutions for which it is now the exclusive distributor in Brazil. Slide 13 is a good illustration of how our customer facing activities are separate, while our back office and support functions are fully merged in Brazil. As you can see in Slide 14, we launched the new Cares intraoral scan in North America at the Chicago Midwinter and our pure ceramic implant at the AO in San Diego.
As Peter mentioned, we had a successful Expotential in Spain and a few days ago we used the International Osteology Symposium in Monaco to announce our RockSolid Lifetime Plus guarantee as well as the launch of Emdogain in wound healing, which you may have seen in a separate press release this morning. The benefits of enhanced wound healing include reduced risk of complications, pain and swelling, as well as improved aesthetic outcomes and greater patient satisfaction. Emdogain is e gold standard for periodontal regeneration and has been used to treat more than 2,000,000 patients. Published research has demonstrated its potential to accelerate wound closure, inflammation resolution and blood vessel formation. This is the basis for its new indication, which we are launching in Europe with other markets to follow as soon as we receive regulatory clearances.
We are the 1st company in tooth replacement to launch a biologic material to enhance wound healing in implant procedures in general. Moving on to Slide 16, I would like to tell you briefly about the success of our global peer to peer program, which has already run 2 events this year. The first was in Warsaw to train and mentor surgeons in using bone level tables with guided surgery and the second one was in Vietnam using bone level tables in complex cases. Both events were carefully documented for publication and you can see more about the polling event in a short video that was published yesterday on YouTube. Social media channels are becoming increasingly important and we showed you a creative digital marketing video in February to promote our bone level tapered rock solid implants.
As you can see in Slide 17, the results have been impressive and our learning curve has been steep. To meet current and future demand for CADCAM prosthetics, especially from large customers like Clear Choice, we have expanded our North American Milling Center in Arlington significantly and the extension was officially opened in April. Moving on to Slide 19, we continue to make progress with our global strategy to penetrate the value segment. Our insulin subsidiary in the UK became operational and we have now completed the acquisition of a 30% stake in Anthosheal. As a result, we are set to enter the exciting value segment in China with the Anthosheer brand around mid year.
That brings me to Slide 20 and our guidance for 2016, which as always is barring unforeseeable events and circumstances. We expect the dental implant market to grow solidly in 2016 and based on our strong performance today, we are raising our guidance for organic revenue growth from the mid to the high single digit range. This means that we expect to further strengthen our leading market position. Despite further investments in strategic growth initiatives, our top line growth and operational leverage should lead to further improvements in the underlying EBIT margin, which amounted to 23.3% in 20 15. And now, I'd like to open the question and answer session.
As usual, I would like I would kindly ask you to delimit the number of your questions to 2, including sub questions and follow ups. Then kindly rejoin the queue in order to give everyone else a chance to put their questions. Webcast participants who wish to ask questions anonymously can use the tool in the audio webcast, which you find in the bottom left corner. So operator, can we have the first question please?
The first question is from Maja Pataki, Kepler Cheuvreux. Please go ahead.
Good morning. Just two brief questions. The first one, can you give us a bit more granularity on the growth rates that you achieved in Brazil, both for the Straumann brand and then also what has Nerens been with regards also in comparison to the market? And the second thing is, I'm not quite sure if I got that right, Peter, but did you say that we've seen a negative impact from an early Easter in Q1? If that is so, could you give us an indication on what you think the magnitude could have been?
And obviously, whether we should expect that to come through in Q2? Thank you.
Ito, will you take
the question? So thank you for the questions, Majer. Let's start with the second question about the Easter impact. If you look at the fewer working days in Q1, then despite the fact that this year Easter break was in Q1 versus Q2 last year, we only have one working day less in the Q1. However, I think talking about Easter is not really about the working days impact, it's more about the time that people take holidays around Eastern, and that is especially true for the Central European countries and mainly also Germany.
And there, we saw that this year also the 1st week after the Easter break was in the Q1. So we had a certain negative impact this year, and we show benefit in the Q2, especially for the Central European market in that respect. If we go then to the first question concerning the growth rate, then the overall growth rate for Latin America was 13%. If we look at the Brazilian growth rate, then Brazil also we are not going to comment that going forward and comment the Nielent growth separately for this time as it is the last quarter where we also see an acquisition impact from NielDent, I will comment on that, and the like for like growth rate, organic growth rate in market for NielDent both in the high single digit in the Brazilian market.
Okay. Thank you.
Any other questions?
The next question is from Carla Benziger, Panvontobel. Please go ahead.
Good morning. My question is around BLT. So obviously, you said that every 5th import sold now is BLT. Can you comment a bit about the cannibalization impact you see there? Because obviously that would imply that growth is stronger than what is reported?
And the other thing is on the growth path for BLT, can you guide us a bit through 20 16 where you expect the strongest growth rates and where you still have launches going on, etcetera, please?
Yeah. Obviously, there is some cannibalization, especially between bone level and bone level papers. We have many customers who had a second system in their practice, a tapered implant, and they are now switching to bone level tapered, but due to complexity reasons, they switched completely to bone level table. So there is some cannibalization clearly within our existing customer base. What I can also tell you is that the Q1 was actually when it comes to tissue level a rather positive one compared to the full year of 2015.
So we kind of saw with tissue level also a much stronger performance, shows an indication that actually the cannibalization when it comes to tissue level is less prominent than compared to bone level caused by bone level tapered. In terms of launches, we have first launched bone level tapered, as you remember, last year in Q1 in North America. We then gradually launched bone level tapered in Europe, starting in Q2 with Central Europe and then end of Q2, starting of Q3 with Western Europe. We had in Q4 Japan and Brazil. And the last large market where we have not yet launched bone level taper is China.
However, there we don't expect a launch neither this year nor potential in the first half of twenty seventeen.
Okay. Thanks. Maybe an add on Australia, etcetera, is it launched there?
Yes.
Okay. That was also Q4?
Yes.
Okay. Thanks.
The next question is from Michael Jungling, Morgan Stanley. Please go ahead.
Hi, good morning. I have two questions. Firstly, on the EBIT margin for 2016, with a much stronger start to the year, how will you treat the extra operating leverage or profits that you could deliver if you continued like this? Or will you decide to reinvest most of it for future growth? And then secondly, on the North American market, how much of the growth is driven by your own execution versus the extraordinary challenging results that we've seen at Zimmer Biomet, which has to be probably one of the largest implant manufacturer in North America declining sort of minus 6% in the Q1 and your results are tremendous in the Q1?
Thank you.
I will take your second question and Peter will then comment on your first question. Yes, obviously, the weak performance of one of our key competitors in North America, same with 3i, obviously helped us. So we gained quite some share specifically when it comes to 3i customers. And obviously, this helped our growth rate. And on the other hand, we've also seen some very successful new product launches like, for example, the PURE implant in North America has been received very well.
We have sold as many or more pure implants in the U. S. Yet than we have sold in Germany, where we have launched this product already 2 years ago. The Vario base has been received very well. So we had and bone level tapered is continuing to actually make it inroad into the North American market.
So it's not only because some of our competitors are struggling, it's also due to some really great new product launches, which have been very well received. Peter, maybe you want to comment on the overall EBIT margin?
Yes. Michael, our strategy in that respect has not changed. I think we always said and are committed to reinvest part of the incremental margin into our long term growth strategy to secure our growth in the mid to long term. That's an investment in the geographical expansion into the value segment, into innovations, but also in strengthening the current sales organization in the existing markets. And we are committed to increase our profitability as stated in our guidance.
If I look at the consensus, the current consensus, then I feel rather comfortable with the consensus figures right now.
Okay. And just a follow-up question on Zimabimab. Can you actually see from your sales force commentary that you have made big inroads into Zimmer Biomet or is it more anecdotal evidence?
We are gaining obviously new customers on behalf of 3i and SIMU, but it's not only 3i and Simu, we're also converting customers from other competitors, mainly due to the fact that we have now also tapered implant in our offering.
And a follow-up is on the EBIT margin. I mean, if you look at the your growth in the Q1, you're probably materially exceeding your own expectations for EBIT or EBIT margin this year. I mean reinvesting some of it is clear, but I'm interested in the degree of reinvestment because you could deliver quite a lot of profit to the shareholders in this year, even if you continued with a reasonably material reinvestment in your sales force expansion for both premium and value implants?
Obviously, we could maximize profits in 2016 and deliver an incredible EBIT margin in 2016. However, we want to actually continue to grow over proportionately in a more and more in a better and better market environment. And to do this, we need to invest today, so that we have enough exciting projects in our pipeline to continue the growth trend, which we have built over the last couple of years also beyond 2016 2017. So we will actually invest a large part of the EBIT margin improvements into making sure that we also deliver in the midterm and longer term future exciting growth rates. And this obviously is also in the best interest of our shareholders.
But
having said
all this, we will actually improve our EBIT margin in 2016.
Thank you.
The next question is from Lisa Klaive, Bernstein. Please go ahead.
Hi, good morning. Just wanted to get an update on your Neodent rollout in the U. S. If you could give us just an update on whether this is tracking with your expectations, whether you're seeing any cannibalization of the Straumann Premium brand? And then a second question, very nice uptick in growth in North America.
Obviously, that was touched upon a little bit so far, but you did also change management recently. And initially, you had sort of commented that it would take a few quarters to get the growth turned around again, but actually you seem to have been there.
So you seem to
have gotten there already. So should we expect continued strong growth or was there anything in the quarter that was sort of a one off?
Actually, with the development of our insulin U. S. Business, we are very happy. We see more than 100% growth year on year. In the Q1, we have launched also Videntica in the U.
S. Under the InstaDent umbrella. So we are continuing to grow significantly with our value franchise in the U. S. Market.
And in terms of obviously, EBIT contribution, it's still quite dilutive. We don't have the critical size yet in the U. S. In terms of business, but that's actually what we'd expected. It will take us another, I would say, 2 years at least until we will generate EBIT margins, which are contributing positively to our EBIT margin.
Your question on Italy, I think we are not the only ones who see a pickup in our business in Italy. The dental market in Italy is in better shape in Q1 compared to last year. But honestly, I don't have any insights into the competitors' situations. The only thing I can comment is that, yes, the Q1 in Italy was positive. Will that actually continue throughout the rest of the year?
I cannot confirm, but I would also not be higher at this point in time.
Sorry, I'd actually ask, although I appreciate the color on Italy as well. Just in terms of North America, you recently had management turnover there and thought that that would take a while to turn that around, but the growth was clearly quite strong. So should we expect a continued trend in the U. S. Given how Q1 has gone?
So there were no one offs in the U. S. Actually to come back to your question. The impact of the leadership change is obviously one point, which contributed to the pickup in terms of growth in Q1 compared to especially Q4. We actually noticed that we were able to convert much more customers from competition to us in Q1 compared to the preceding quarter.
This is actually in our view a clear indication that the focus the new management is putting in place when it comes to aggressively going after competitive accounts is starting to pay off.
Okay. Thanks very much.
The next question is from Veronika Dubajova, Goldman Sachs. Please go ahead.
Good morning, gentlemen, and thank you for taking my questions. I have 2. My first one is just on M and A. And I think, Marco, when we last caught up, you were clearly indicating there was a bigger asset for sale that you were considering. And I'm just wondering if you have an update on that process.
And then in general, if you can help us think through any cash deployment priorities that you see for 2016 and beyond? And my second question is just a very quick maintenance question, but for Peter, which is given the volatility in currencies, I was hoping you might be able to help us think through FX, both on the top line and on from an EBIT perspective for the full year? Thank you very much.
I guess, Veronika, you're referring to the MIS transaction. We have decided to pull out of this process just because we believe that the price expectations are, in our view, unreasonable. And at the end, every M and A transaction also has to deliver value to our shareholders and we are just not prepared to pay what they will price there might be asked. So we are prudent when it comes to M and A transactions, if it makes sense. Also from a value generation point of view, yes, we consider obviously opportunities, but this one we actually stepped away.
We have one large transaction in front of us and that's MegaChain. As I guess most of you know, we have this convertible bond outstanding and we have actually the opportunity if we want to convert the bond into shares in the second half of this year and we are in the middle of actually making up our mind if we're going to ask the company to pay us back the bonds or if you're going to convert the
bonds into shares. And on the Yes. So I take your question on the volatility of the FX rates, Veronika. As you have seen on the top line, we basically don't have an FX impact in the Q1. And if the FX rates stay as they are today, then I would also not last couple of weeks or months.
We see a certain negative impact by in the real, but that was offset by a stronger U. S. Dollar in the Q1. And if they stay as they are, I would not expect an impact for the full year 2016.
That's great, Peter. And from a margin perspective, just given the disparate distribution of your cost base, would you expect a full year impact on margins from FX?
No. I mean, if you don't see an FX impact on the top line, it would also not
affect Understood.
Apologies. I misunderstood you on that. Got it.
I'm sorry. Thank you.
The next question is from Chris Grechler, Credit Suisse. Please go ahead.
Yes. Thank you. Good morning. Actually, just one question left on your upgrade to guidance. Can we basically get a bit of a sense what triggered that?
I mean, from our perspective, the market didn't improve that much, I mean, just looking at some of your competitors. So I was wondering if this is more a reflection of your view that the market has improved? Or is it all coming to better than expected company specific development?
I think it's a combination, Chris, of both factors. We see actually our larger markets, obviously, with the exception of Brazil in very good shape. So we believe that global growth in 2016 will be between 3% 4%, which is we think rather solid. And obviously, on top of that, we have some very corporate specific things going for us, BLT specifically. But I also mentioned the PURE launch, for example, in the U.
S. BOSSIS is gaining ground in Europe and also the Biomaterials franchise in the U. S, where we have a portfolio of different products, which we actually saw from different suppliers. So there are many, many, many initiatives which are starting to really pay off, which are company specific. But this all on the back of what we believe a stronger market environment.
Okay. Sounds clear. Thank you.
The next question is from Ines Silva, Bank of America Merrill Lynch. Please go ahead.
Hi, good morning. Thank you so much for taking my questions. I have just 2, please. First of all on the both the North American and the Asian markets given the solid performances especially if you look on a 2 year basis, Could you give us some of the reasoning why you think growth has been stronger? And I know you've already referred to market share gains in North America.
And how do you see those reasons going into the following quarters in 2016? And then just a quicker, broader picture question, which is could you give us an idea of the breakdown of the value versus the premium growth on these segments and or just any color around these dynamics in your revenue currently? Thank you.
Yes. On North America, it's obvious the combination of our strong growth in Q1. It's a combination of some competitors going through some difficult times. The combination of 3i and SIMO is for sure for them quite a project and the weak performance in Q1 is actually a reflection of that. We obviously were able and I guess some of our competitors were able to actually take advantage of the situation and then convert some of their customers to our franchise.
On the other hand, as I just mentioned before, we also have some company specific things going for us. I mentioned the products, GLT, GU, also the value based, biomaterials. But I also strongly believe that the management change, which we initiated at the end of last year, is already starting to pay off and showing results, more focus on actually customer acquisition, more aggressively going after competitive accounts, more focus when it comes to the activities of our sales force. So at the end, it's a combination of several factors. On your second question on the value segment, If you look overall at the gross apparel value segment, including Neotem, then actually overall, the impact has been slightly diluted.
Because Neodent in Brazil compared to the rest of the group was slightly underperforming in terms of growth. And the rest of our value business, the insulin franchises are still relatively insignificant.
Just a quick follow-up in on the growth in Asia or specifically in China? How do you see that in the rest of 2016, please?
Yes. China, we had an extremely strong Q1. And as pointed out during the presentation, we are now preparing the launch of Amter Sheer to also penetrate the value segment in China. We expect that during Q3 of this year, we will actually be ready to generate first revenues with the Amterge brand in China. And this obviously will actually generate incremental revenues, which we didn't have in our P and L before.
So we are very positive when it comes to the outlook on our business in China.
Thanks very much.
The next question is a follow-up question by Michael Jungling. Please go ahead.
I have one more question on EBIT margin. Is the faster growth that you're experiencing in Asia Pac materially dilutive to your business? Is it a significantly lower margin business than the rest of your business?
No, no, not at all. I could know that and I would say to the contrary, but I haven't said that. No, it's not diluted. It's not.
Okay. And then final question is on payroll expenses. Last year when the Swiss National Bank depegged the Swiss francs, you could tell the PL expenses quite materially, especially in Switzerland. You sort of forwent some of your bonus. Now with the business humming along really nicely, are you going to reverse that, meaning the Swiss based cost base will get rewarded for the success?
We will keep the contractual arrangements which we put in place after the Swiss franc crisis in January of 2015, we will keep these contractual arrangements in place. However, what we did obviously in 20 15, we actually made our employees whole for the compensation cuts due to the very good performance in 2015. And obviously, if the trend continues throughout 2016, then there's a high probability we will also make our employees in Switzerland as a whole for the compensation cuts in 2016.
Great. That's helpful. Thank you.
The next question is from Julien Dormois, Exane BNP Paribas. Please go ahead.
Hi, good morning. Thanks for taking my question. I just have one which relates to the CADCAM business. I think you indicated in your press release that you have seen slower sales in the CADCAM business. And if I'm right, you have several initiatives underway in that space.
So should we see a pickup in that activity for the remainder of the year? And if you could just detail the various levers for that, please?
Yes. When we refer to the slower CATKAM business, we were referring to the 2 spot elements production, which is less and less important when you look at our overall CAT Can business. On the other hand, we launched our intraoral scanner in Q1 in the U. S, and we will actually roll this equipment out throughout the rest of our group companies during the rest of the year. Together with a range of materials, we have also launched our in lab milling setup in Q1.
We have already sold quite some in lab setups and we will roll this also out throughout the rest of the year. So when it comes to our CATKAM franchise, we believe that due to the portfolio extensions I just commented that we will see actually quite some exciting growth coming through.
Okay. Okay. Thank you.
Next question is from Lisa Clive of Bernstein. Please go ahead.
Hi. A few follow-up questions. Just wanted to dig in a little bit on a prior question around the premium versus discount split and what the relative growth rates were. Maybe if you could just comment on the U. S.
Market. Is it safe to say that your premium brand is growing double digits since I think as you commented that incident remains very small today? And then second question on the U. S. Market, could you just update us on your strategy of targeting GPs in the U.
S? Obviously, after the discontinuation of the Patterson collaboration, it's unclear what your strategy is there? Or frankly, do you have enough growth momentum with the specialists that that's not as much of a priority? So any update on that would be helpful.
Yes, I can confirm that our premium business in the U. S. Grew double digitly in Q1. And on your second question on the GP strategy in the U. S, yes, you are right.
Our trial with Patterson was not a success. So we pulled out of this corporation already at the end of last year, so during the Q4 of last year. We are now working together with the Engle Institute, which is the most reputed education body for general practitioners who want to become active in placing implants. First experiences have been extremely positive. So we have now 2 modules.
We have actually for GPs who want to become familiar with the prosthetic part of implant dentistry. We are working together with SPEAR. We have been actually working together with Spire for quite some time now and we have added since the beginning of the year the cooperation with the Engle Institute when it comes to the surgical part. And again, as pointed out, first indications are that this is actually a very compelling setup and GPs are actually extremely happy to have the opportunity to get into Straumann products and get familiar with Straumann protocols through these initiatives.
Great. And if I could, just one additional question. On your CADCAM business, could you just give us an idea of the growth of CADCAM relative to that 12% organic growth rate? Is it materially different from that? And you mentioned the decline in the tooth borne.
Could you also remind us of what the proportion of your consumables today are still tooth borne?
Actually, the Q1 in CATKAM overall was growing less than the rest of the franchise, and this is due to the fact that we launched in Q1 of 20 15 our new three and seven series Canon. So we had an extremely strong Q1 2015, and we are comparing Q1 2016 against Q1 2015. So Q1 2015, when it comes to the we call them digital enablers or CATCOM how you call it was not actually a strong growth quarter. However, as I pointed out for the rest of the year due to new launches, so the in lab milling and the intraoral scanner and the corresponding material is over the remainder of the year, we are expecting that actually the CATGM franchise will gain in terms of momentum and will grow at least at the levels of the other franchises. And in terms of Tussbaum, Tussbaum, this is a flat business.
We had over the last couple of years, we had declining numbers on our Tusbon CAT Can business, and we were actually able to turn this around during 2015. However, we have not the expectation that this part of our business will actually grow at the same level as rest of our franchises.
Okay. Thanks for that.
So thank you for your interest and your questions. In closing, I would like to draw your attention to the Investor Relations calendar, which you can find on Slide 23 and on our website. Thank you again for joining us. Have a good day and goodbye. Thank you.
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