You are on page 1of 28

Jefferies Healthcare

Conference
Align Technology, Inc.

Shirley Stacy, VP Investor Relations and


Corporate Communications
June 3, 2014
2014 Align Technology, Inc. All rights reserved.

2014 Align Technology, Inc. All rights reserved.

Forward-Looking Statements
During this presentation and corresponding commentary we may
make forward-looking statements, including statements regarding
Aligns 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 Technologys 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.
2

2014 Align Technology, Inc. All rights reserved.

Our Vision

Transforming lives by improving the


journey to a healthy, beautiful smile.
3

2014 Align Technology, Inc. All rights reserved.

Align Technology Solutions

Invisalign Full
Invisalign Teen

iTero Scanner

Invisalign Assist

OrthoCAD Services

Invisalign Express 10 and 5

iTero Models & Services

Invisalign Lite 14 and i7 (Europe)

2014 Align Technology, Inc. All rights reserved.

Track Record of Growth and Profitability

2013
2012
2011
2010
2009
2008

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.

2014 Align Technology, Inc. All rights reserved.

Proven Strategic Growth Drivers Ensure


Continued Success

Market Expansion
Increase Teen
Share
Grow Adult
Segment
Drive European
Growth
Continue INTL
Expansion-APAC
6

2014 Align Technology, Inc. All rights reserved.

Innovation

Brand Strength

Increase Product
Predictability &
Applicability

Drive Awareness
Among Consumers

Enhance Customer
Experience

Increase
Consumer
Purchase Intent

Aligns 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
7

2014 Align Technology, Inc. All rights reserved.

Global Orthodontic Market


Invisalign Unit Share

2.6 M CASE STARTS


11% SHARE
31%

ADULT
SHARE

TEEN
SHARE

25%

ADULTS

6%

2014 Align Technology, Inc. All rights reserved.

75%

TEENAGERS

Expanding Adult Treatment and Gaining


Share of Teen Case Starts

13 = +15% Y/Y

2014 Align Technology, Inc. All rights reserved.

13 = +21% Y/Y

Investing in Go-To-Market Coverage and


Support
Sales Coverage by Region as of Q4 2013

North America

Q412 = 162
Q114 = 205

Europe

Q412 = 50
Q114 = 80

Asia Pacific

Q412 = 27
Q114 = 50

Continued expansion in coverage, marketing &


support and clinical education worldwide
Note: Quota heads: Sales Representatives and Managers Only
10

2014 Align Technology, Inc. All rights reserved.

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
11

2014 Align Technology, Inc. All rights reserved.

China A Tremendous Growth Opportunity

Market Size and Potential


- 400K annual Ortho case
starts in 2014
- Growing 20% YoY to 1.1M
Ortho case starts in 2017

Customer Segments
- Top private clinics/chains
- Top public university
hospitals
- Beauty hospitals
12

2014 Align Technology, Inc. All rights reserved.

China Focused Strategy


1

GEOGRAPHIC
EXPANSION

Expand into 80% Tier 2


and 10% Tier 3 cities

Increase confidence
through education and
local support

PROFESSIONAL
ENDORSEMENT

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

13

2014 Align Technology, Inc. All rights reserved.

BUILD
AWARENESS

Build brand awareness and


product awareness via
consumer activities
Drive conversion via
Invisalign Day

Evolution of Invisalign Innovation


2000-08

2009

Process
optimization

Optimal
treatment
protocols

Improvement of
device accuracy
and design

Manufacturing
process
automation

3D printing
process
development

TOOL BOX
14

1.5 Release

SmartForce
features provide
extrusion and
rotation force
systems to
achieve
predictable
tooth
movements

2010

2011

Invisalign G3

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

SOLUTIONS

2014 Align Technology, Inc. All rights reserved.

2013

Invisalign G4

Next generation of
SmartForce
features for greater
root tip control and
improved
predictability
Multi-tooth
extrusion for
anterior open bite

2014

SmartTrack

Next generation
aligner material
improves control of
tooth movements
with Invisalign

Invisalign G5

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

Invisalign G4 for
improved root
control

Innovation Accelerate Adoption and Utilization


Smart
Track

170,000
Case Shipments
Submitting Orthodontists

150,000

17,000

G4

15,000

G3

26.4

Avg # Cases / Orthothodists


130,000

13,000

24.2
1.5

21.9

110,000

11,000

18.0
90,000

9,000

12.0 12.6 11.9 12.5

70,000

14.4 13.7 13.8


7,000

9.8
50,000

5,000

30,000

3,000
2002

15

2003

2004

2005

2006

2007

Note: Utilization for North American Orthodontists


2014 Align Technology, Inc. All rights reserved.

2008

2009

2010

2011

2012

2013

More Comprehensive Solutions


Invisalign G5 for Deep Bites

16

Horizontal rectangular attachments

Optimized attachments for


retention and extrusion

No features for intrusion

Pressure areas for intrusion

No bite ramps

Precision bite ramps customized


per patient, per stage

2014 Align Technology, Inc. All rights reserved.

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

17

2014 Align Technology, Inc. All rights reserved.

Increasing Invisalign Applicability


With Boarder Solutions for All Types of Malocclusions
Crowding

Class II

Deep Bite

Cross Bite

Class III

70%
60%
50%

Invisalign Treated
40%

Treated Another Way

30%
20%
10%
0%
Crowding

Class II

Class I

Deep bite

Midline
Spacing
Asymmetry

Source: Align product efficacy study, Dec 2012 North America Customers
18
2014 Align Technology, Inc. All rights reserved.

Posterior
Crossbite

Diastema Open Bite

Class III

Anterior
Crossbite

Extensive Patent Portfolio

563 Patents Issued Worldwide


(322 U.S., 241 International)

Issued Patents

Patent Categorization

As of Q1 2014
19

248 Pending Patent Applications


Worldwide

2014 Align Technology, Inc. All rights reserved.

Pending Patents

Innovation Cycle Strengthens and


Extends Patent Portfolio
G5
Smart
Track

G4
G3

1.5

Represents U.S. filing activity


Note: 2011+ data includes iTero/Cadent
20

2014 Align Technology, Inc. All rights reserved.

New Patents Continue to Build Our Competitive


Advantage
2009

2010

RootTorque
-------Extrusion

Rotation
-------Multiple
Tooth
Extrusion

2011

Open Bite
------Multiplane
Attachments
-----Root Control

2013

SmartTrack

2014

Aligner
Pressure
Areas for
Intrusion
----------Precision
Bite Ramps

End-to-end Biomechanics & 3D Software Integrated with


Automated Manufacturing
21

2014 Align Technology, Inc. All rights reserved.

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

22

2014 Align Technology, Inc. All rights reserved.

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

1. Align Technology report


23

2014 Align Technology, Inc. All rights reserved.

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 3i1

Growth in Digitally Submitted Invisalign Cases


30%

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.

27%
25%

26%

23%
22%

23%

19%
19%

17%
14%
10%

17%

15%
15%

12%

13%

NA
WW

9%
3%
3%
Q3'11

24

6%
6%

Q4'11

Q1'12

Q2'12

Q3'12

2014 Align Technology, Inc. All rights reserved.

Q4'12

Q1'13

Q2'13

Q3'13

Q4'13

Q1'14

Brand Strength: Industry Leading Approach


with Integrated Consumer Marketing Platform

Traditional
Print

Event
Marketing

Social
Media

TV &
Broadcast

25

2014 Align Technology, Inc. All rights reserved.

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.

26

2014 Align Technology, Inc. All rights reserved.

Our Vision

Transforming lives by improving the


journey to a healthy, beautiful smile.
27

2014 Align Technology, Inc. All rights reserved.

Jefferies Healthcare
Conference
Align Technology, Inc.

Shirley Stacy, VP Investor Relations and


Corporate Communications
June 3, 2014
2014 Align Technology, Inc. All rights reserved.

28

2014 Align Technology, Inc. All rights reserved.

You might also like