Jefferies Healthcare Conference

Transcription

1 Jefferies Healthcare Conference Align Technology, Inc. Shirley Stacy, VP Investor Relations and Corporate Communications June 3, Align Technology, Inc. All rights reserved Align Technology, Inc. All rights reserved.

2 Forward-Looking Statements During this presentation and corresponding commentary we may make forward-looking statements, including statements regarding Align s strategy for future growth, the anticipated impact of product innovation, consumer demand generation, geographic expansion and sales force productivity on, among other things, customer adoption. Any such forward-looking statements contained in this presentation and corresponding commentary are based upon information available to Align as of the date hereof. These forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. As a result, actual results may differ materially and adversely from those expressed in any forward-looking statement. Factors that may cause such a difference include, but are not limited to, the factors that are discussed in more detail in Align Technology s Forms 10-K and 10-Q, as well as in other reports and documents filed from time to time with the Securities and Exchange Commission. Align undertakes no obligation to revise or update publicly any forward-looking statements for any reason Align Technology, Inc. All rights reserved.

3 Our Vision Transforming lives by improving the journey to a healthy, beautiful smile Align Technology, Inc. All rights reserved.

4 Align Technology Solutions Invisalign Full Invisalign Teen Invisalign Assist Invisalign Express 10 and 5 Invisalign Lite 14 and i7 (Europe) itero Scanner OrthoCAD Services itero Models & Services Align Technology, Inc. All rights reserved.

5 Track Record of Growth and Profitability Delivered strong revenue growth ~ 21% CAGR Became the leader in clear aligners Generated 44% growth in operating income Established Invisalign as a valuable brand Became a leader in digital dentistry Generated ~ $4B in shareholder value The Past 5 Years 2014 Align Technology, Inc. All rights reserved Align Technology, Inc. All rights reserved.

6 Proven Strategic Growth Drivers Ensure Continued Success Market Expansion Innovation Brand Strength Increase Teen Share Grow Adult Segment Increase Product Predictability & Applicability Drive Awareness Among Consumers Drive European Growth Continue INTL Expansion-APAC Enhance Customer Experience Increase Consumer Purchase Intent Align Technology, Inc. All rights reserved.

7 Align s Global Market Opportunity 2.6M ORTHO CASE STARTS PER YEAR HUGE 2.5M TEENS WANT TO CHANGE THEIR SMILE UNTAPPED MARKET 100M ADULTS WANT A BETTER SMILE 60-70% POPULATION HAVE CROOKED TEETH Align Technology, Inc. All rights reserved.

8 Global Orthodontic Market Invisalign Unit Share 2.6 M CASE STARTS 11% SHARE 31% ADULT SHARE 25% ADULTS 6% TEEN SHARE 75% TEENAGERS Align Technology, Inc. All rights reserved.

9 Expanding Adult Treatment and Gaining Share of Teen Case Starts 13 = +15% Y/Y 13 = +21% Y/Y Align Technology, Inc. All rights reserved.

10 Investing in Go-To-Market Coverage and Support Sales Coverage by Region as of Q North America Q4 12 = 162 Q1 14 = 205 Europe Q4 12 = 50 Q1 14 = 80 Asia Pacific Q4 12 = 27 Q1 14 = 50 Continued expansion in coverage, marketing & support and clinical education worldwide Note: Quota heads: Sales Representatives and Managers Only Align Technology, Inc. All rights reserved.

11 Focus on International Expansion Double sales and become significant percentage of total worldwide revenues China will be one of the largest markets outside the US Significant increase in treatments from GPs We will be very active in the Teenager Market We will be an indispensable partner to our customers Huge Market Opportunity and Favorable Environment Support Continued Rapid Growth Align Technology, Inc. All rights reserved.

12 China A Tremendous Growth Opportunity Market Size and Potential - 400K annual Ortho case starts in Growing 20% YoY to 1.1M Ortho case starts in 2017 Customer Segments - Top private clinics/chains - Top public university hospitals - Beauty hospitals Align Technology, Inc. All rights reserved.

13 China Focused Strategy GEOGRAPHIC EXPANSION PROFESSIONAL ENDORSEMENT BUILD AWARENESS Expand into 80% Tier 2 and 10% Tier 3 cities Increase confidence through education and local support Public Hospitals: Initiate Professional Education program through leading public university hospitals Private Practices: Grow customer base and drive utilization Beauty Hospitals: Phased entry into beauty hospital for Tier 1 cities Build brand awareness and product awareness via consumer activities Drive conversion via Invisalign Day Align Technology, Inc. All rights reserved.

14 Evolution of Invisalign Innovation Process optimization 1.5 Release Invisalign G3 Invisalign G4 SmartTrack Invisalign G5 Optimal treatment protocols Improvement of device accuracy and design Manufacturing process automation 3D printing process development TOOL BOX SmartForce features provide extrusion and rotation force systems to achieve predictable tooth movements SOLUTIONS Improved Power Ridge feature for control of lingual root torque Precision Cuts designed for use with elastics to help treat Class II and Class III Next generation of SmartForce features for greater root tip control and improved predictability Multi-tooth extrusion for anterior open bite Next generation aligner material improves control of tooth movements with Invisalign Invisalign G4 for improved root control ClinCheck Pro Comprehensive SmartForce features for greater tooth control and predictability of Deep Bite treatment 3D controls provides more precise control over the final tooth position Align Technology, Inc. All rights reserved.

15 Innovation Accelerate Adoption and Utilization Smart Track 170,000 Case Shipments G4 17, , , ,000 Submitting Orthodontists Avg # Cases / Orthothodists 1.5 G ,000 13,000 11,000 90, ,000 70,000 50, ,000 5,000 30, ,000 Note: Utilization for North American Orthodontists Align Technology, Inc. All rights reserved.

16 More Comprehensive Solutions Invisalign G5 for Deep Bites Horizontal rectangular attachments Optimized attachments for retention and extrusion No features for intrusion Pressure areas for intrusion No bite ramps Align Technology, Inc. All rights reserved. Precision bite ramps customized per patient, per stage

17 ClinCheck Pro Ease of Use with Greater Control Simple user interface for precise control of the treatment goal for each patient Adjustments for moving single tooth to whole dentition in real-time Align Technology, Inc. All rights reserved.

18 Increasing Invisalign Applicability With Boarder Solutions for All Types of Malocclusions Crowding Class II Deep Bite Cross Bite Class III 70% 60% 50% 40% Invisalign Treated Treated Another Way 30% 20% 10% 0% Crowding Class II Class I Deep bite Midline Asymmetry Spacing Posterior Crossbite Diastema Open Bite Class III Anterior Crossbite Source: Align product efficacy study, Dec 2012 North America Customers Align Technology, Inc. All rights reserved.

19 Extensive Patent Portfolio 563 Patents Issued Worldwide (322 U.S., 241 International) 248 Pending Patent Applications Worldwide Issued Patents Patent Categorization Pending Patents As of Q Align Technology, Inc. All rights reserved.

20 Innovation Cycle Strengthens and Extends Patent Portfolio G3 G4 Smart Track G5 1.5 Represents U.S. filing activity Note: data includes itero/cadent Align Technology, Inc. All rights reserved.

21 New Patents Continue to Build Our Competitive Advantage RootTorque Extrusion Rotation Multiple Tooth Extrusion Open Bite Multiplane Attachments Root Control SmartTrack Aligner Pressure Areas for Intrusion Precision Bite Ramps End-to-end Biomechanics & 3D Software Integrated with Automated Manufacturing Align Technology, Inc. All rights reserved.

22 Leveraging our Digital Footprint with the itero Scanner Great value to Invisalign user base Best restorative scanner for dentists with greatest utility Practice accelerator for those itero practices that do Invisalign Align Technology, Inc. All rights reserved.

23 itero Changes the Game and is the Best Option for Orthodontists and Dentists ClinCheck treatment plans posted 50% faster than traditional PVS impressions itero scanning for Invisalign translates into better aligner fit More accurate restorations Shortens seating appointments 22% and eliminates return appointments Seamless integration with labs, CAD/CAM systems, and validated implant solutions including Straumann and Biomet 3i 1 1. Align Technology report Align Technology, Inc. All rights reserved.

24 Growth in Digitally Submitted Invisalign Cases The continued trend in digital dentistry leads to better back office integration, improved clinical workflows and greater use of intraoral scanning -- setting up significant growth opportunities for our scanner business. 3% 3% 6% 6% 10% 9% 14% 12% 15% 13% 17% 15% 19% 17% 23% 19% 25% 22% 27% 23% 30% Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 NA WW 26% Align Technology, Inc. All rights reserved.

25 Brand Strength: Industry Leading Approach with Integrated Consumer Marketing Platform Traditional Print Event Marketing Social Media TV & Broadcast Align Technology, Inc. All rights reserved.

26 Brand Strength: Engage Consumers, Raise Awareness, and Create Demand Raising awareness of Invisalign as the best option for a healthy, beautiful smile among adults (especially moms) and teens Align Technology, Inc. All rights reserved.

27 Our Vision Transforming lives by improving the journey to a healthy, beautiful smile Align Technology, Inc. All rights reserved.

28 Jefferies Healthcare Conference Align Technology, Inc. Shirley Stacy, VP Investor Relations and Corporate Communications June 3, Align Technology, Inc. All rights reserved Align Technology, Inc. All rights reserved.