1 © 2014 Align Technology, Inc. All rights reserved.
© 2014 Align Technology, Inc. All rights reserved.
Jefferies Healthcare Conference
Align Technology, Inc.
Shirley Stacy, VP Investor Relations and
Corporate Communications
June 3, 2014
2 © 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
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.
3 © 2014 Align Technology, Inc. All rights reserved.
“Transforming lives by improving the
journey to a healthy, beautiful smile.”
Our Vision
4 © 2014 Align Technology, Inc. All rights reserved.
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
5 © 2014 Align Technology, Inc. All rights reserved.
© 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
6 © 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
Innovation
Increase Product Predictability &
Applicability
Enhance Customer Experience
Brand Strength
Drive Awareness Among Consumers
Increase Consumer
Purchase Intent
7 © 2014 Align Technology, Inc. All rights reserved.
HUGE
UNTAPPED
MARKET
2.6M ORTHO CASE
STARTS PER YEAR
2.5M TEENS WANT
TO CHANGE THEIR
SMILE
100M ADULTS WANT
A BETTER SMILE
60-70% POPULATION
HAVE CROOKED
TEETH
Align’s Global Market Opportunity
8 © 2014 Align Technology, Inc. All rights reserved.
2.6 M CASE STARTS
11% SHARE
25%
ADULTS
75%
TEENAGERS
6%
TEEN
SHARE
31%
ADULT
SHARE
Global Orthodontic Market Invisalign Unit Share
9 © 2014 Align Technology, Inc. All rights reserved.
‘13 = +15% Y/Y ‘13 = +21% Y/Y
Expanding Adult Treatment and Gaining Share of Teen Case Starts
10 © 2014 Align Technology, Inc. All rights reserved.
Investing in Go-To-Market Coverage and Support
Continued expansion in coverage, marketing &
support and clinical education worldwide
Sales Coverage by Region as of Q4 2013
Note: Quota heads: Sales Representatives and Managers Only
North America
Q4’12 = 162
Q1’14 = 205
Europe
Q4’12 = 50
Q1’14 = 80 Asia Pacific
Q4’12 = 27
Q1’14 = 50
11 © 2014 Align Technology, Inc. All rights reserved.
• 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
Focus on International Expansion
12 © 2014 Align Technology, Inc. All rights reserved.
•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
China – A Tremendous Growth Opportunity
13 © 2014 Align Technology, Inc. All rights reserved.
1 2 3 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”
China – Focused Strategy
14 © 2014 Align Technology, Inc. All rights reserved.
SOLUTIONS
Evolution of Invisalign Innovation
• Next generation of
SmartForce
features for greater
root tip control and
improved
predictability
• Multi-tooth
extrusion for
anterior open bite
• 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
• SmartForce®
features provide
extrusion and
rotation force
systems to
achieve
predictable
tooth
movements
• Next generation
aligner material
improves control of
tooth movements
with Invisalign
• Invisalign G4 for
improved root
control
ClinCheck Pro
• Optimal
treatment
protocols
• Improvement of
device accuracy
and design
• Manufacturing
process
automation
• 3D printing
process
development
Invisalign G4
2011
Invisalign G3
2010
1.5 Release
2009
SmartTrack
2013
Invisalign G5
2014
Process optimization
2000-08
• Comprehensive
SmartForce
features for greater
tooth control and
predictability of
Deep Bite
treatment
• 3D controls
provides more
precise control
over the final tooth
position
TOOL BOX
15 © 2014 Align Technology, Inc. All rights reserved.
Innovation Accelerate Adoption and Utilization
9.8
12.0 12.6 11.9 12.5
14.4 13.7 13.8
18.0
21.9
24.2
26.4
3,000
5,000
7,000
9,000
11,000
13,000
15,000
17,000
30,000
50,000
70,000
90,000
110,000
130,000
150,000
170,000
2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3
Case Shipments
Submitting Orthodontists
Avg # Cases / Orthothodists
G3
G4
1.5
Smart Track
Note: Utilization for North American Orthodontists
16 © 2014 Align Technology, Inc. All rights reserved.
Horizontal rectangular attachments
No features for intrusion
No bite ramps
Optimized attachments for
retention and extrusion
Pressure areas for intrusion
Precision bite ramps customized
per patient, per stage
More Comprehensive Solutions Invisalign G5 for Deep Bites
17 © 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
18 © 2014 Align Technology, Inc. All rights reserved.
0%
10%
20%
30%
40%
50%
60%
70%
Crowding Class II Class I Deep bite MidlineAsymmetry
Spacing PosteriorCrossbite
Diastema Open Bite Class III AnteriorCrossbite
Invisalign Treated
Treated Another Way
Source: Align product efficacy study, Dec 2012 – North America Customers
Crowding Deep Bite Class II Cross Bite Class III
Increasing Invisalign Applicability With Boarder Solutions for All Types of Malocclusions
19 © 2014 Align Technology, Inc. All rights reserved.
563 Patents Issued Worldwide
(322 U.S., 241 International)
248 Pending Patent Applications Worldwide
Patent Categorization
As of Q1 2014
Issued Patents Pending Patents
Extensive Patent Portfolio
20 © 2014 Align Technology, Inc. All rights reserved.
Represents U.S. filing activity
Note: 2011+ data includes iTero/Cadent
G3 G4
1.5
Smart Track
G5
Innovation Cycle Strengthens and Extends Patent Portfolio
21 © 2014 Align Technology, Inc. All rights reserved.
Open Bite
------- Multiplane
Attachments ------
Root Control
2011
Rotation --------
Multiple Tooth
Extrusion
2010
RootTorque
-------- Extrusion
2009
SmartTrack
2013
Aligner Pressure Areas for Intrusion
-----------
Precision Bite Ramps
2014
End-to-end Biomechanics & 3D Software Integrated with
Automated Manufacturing
New Patents Continue to Build Our Competitive Advantage
22 © 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
23 © 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
• 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
1. Align Technology report
24 © 2014 Align Technology, Inc. All rights reserved.
Growth in Digitally Submitted Invisalign Cases
3%
6%
10%
14% 15%
17%
19%
23%
25% 27%
30%
3%
6%
9%
12% 13%
15%
17%
19%
22% 23%
26%
Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
NA
WW
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.
25 © 2014 Align Technology, Inc. All rights reserved.
Brand Strength: Industry Leading Approach with Integrated Consumer Marketing Platform
Traditional
Social
Media
TV &
Broadcast
Event
Marketing
26 © 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.
27 © 2014 Align Technology, Inc. All rights reserved.
“Transforming lives by improving the
journey to a healthy, beautiful smile.”
Our Vision