Nobel Biocare moves to the next phase of its organizational realignment

(PresseBox) ( Zurich, Switzerland, )
Nobel Biocare announced today the continuation of its functional re-alignment program, affecting primarily the corporate functions in Gothenburg, Sweden. The company has initiated an appropriate and responsible negotiation process with the respective local labor unions. This re-alignment does not affect the Nordic commercial entity located in Gothenburg, nor the manufacturing sites in Karlskoga and in Stockholm.

In 2012, Nobel Biocare initiated a continuous efficiency and effectiveness program of which part of the benefits are being reinvested to build market share through innovation, customer partnering activities and training and education efforts. Globally, over 250 positions have already been successfully re-aligned and over 70 positions reduced since mid 2012. The company is now moving to the next phase of re-alignment.

Approximately 70 employees in Gothenburg are involved in this next step over a period of 18 months, which will include relocation and early retirement offers. This process will reduce the complexity of the organization, streamline processes and improve communication within the group. It will result in some further headcount reduction in the group over this period. Estimated additional non-recurring costs of EUR 6.2 million for departures, severance, relocation and retention will be booked in the second quarter 2013.

These measures will not change Nobel Biocare's short-term revenue outlook, which remains to target modest market share gains and to deliver modest revenue growth in 2013. Subsequently, barring any unforeseen events Nobel Biocare expects to deliver an EBIT margin improvement of 50 to 100 bps at constant exchange rates (CER), excluding the above stated additional non-recurring cost.

Within the next 3 to 5 years, assuming markets improve beyond 2013 to modest mid single-digit growth, Nobel Biocare targets growing at least in line with the market and improving the EBIT margin also continually between 50 to 100 bps per annum at CER.

Financial calendar:

Interim Report 2, 2013 August 22, 2013
Interim Report 3, 2013 November 7, 2013
Full Year Report 2013 February 18, 2014
Annual General Meeting March 26, 2014

Disclaimer

This media release contains forward-looking statements based on beliefs of Nobel Biocare’s management. When used in this media release, words such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, “plan” and “project” are intended to identify forward-looking statements. They may involve risks and uncertainties, including technological advances in the medical field, product demand and market acceptance, the effect of economic conditions, the impact of competitive products and pricing, foreign currency exchange rates and other risks. These forward-looking statements reflect the views of Nobel Biocare as of the date made with respect to future events and are subject to risks and uncertainties. All of these forwardlooking statements are based on estimates and assumptions made by management of the company and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results or experience could differ materially from the forward-looking statements. Nobel Biocare disclaims any intention or obligation to update these forward-looking
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