The State of the Dental Lab Industry

Yesterday

Today

Tomorrow

Norm Weinstock, Chairman

May 8, 2015

2

2008-2014

295,000,000

300,000,000

305,000,000

310,000,000

315,000,000

320,000,000

Population

+4%

0

10,000

20,000

30,000

40,000

50,000

60,000

Technicians

-18%

40,000,000

45,000,000

50,000,000

55,000,000

60,000,000

C&B units

+17%

2,300,000

2,400,000

2,500,000

2,600,000

2,700,000

2,800,000

2,900,000

Full Dentures

+13%

-

1,000,000

2,000,000

3,000,000

4,000,000

Partial Dentures

+27%

0

5,000

10,000

15,000

Labs

-38%

Source: NADL

3

Dental Prosthetics Market by Segment

US 2010 – 2020 (U$$M)

4

Dental Prosthetics Market Breakdown

Source: iData Research

Dental Prosthetics Market Breakdown, US 2013 Dental Prosthetics Market Breakdown, US 2020

5

Development Crown & Bridge Market US

– All Materials*

*Units sold from dental laboratories to dentists

6

Crown Market by Material Type

7

Crown Material by Type

8

Key Takeaways

• Projected growth of the crown market is CAGR* 3.5%

• 41 million crown units were produced in 2012, and it is projected

to exceed 55.4 million units by 2019

• In 2012 the average laboratory selling price for all crown types

was $156; all-ceramic = $139

• Growth in the all-ceramic market is expected to drive down the

average laboratory crown price to $105 by 2019

• Adoption of CAD/CAM technology and the growth of all ceramic

restorations is commoditizing the market

*CAGR = Compounded Annual Growth Rate

9

Total Glass Ceramic Crown & Bridge Market,

US 2010-2020

10

Total Zirconia Crown & Bridge Market

US 2010 - 2020

Monolithic Zirconia Crown Market

US 2010 - 2010

11

Key Takeaways

• Market Driver: Adoption of CAD/CAM production

• Market Driver: Lower cost restorations

• 56.1% of the all ceramic crowns and bridges

manufactured are composed of zirconia

• Competitive pricing will continue to drive down the

cost of both layered and monolithic zirconia crowns

and bridges, but is projected to grow by CAGR 3% -

7%

12

Full Denture Market

US 2010 - 2020

Partial Denture Market

US 2010 - 2020

13

Denture Units by Type

14

Denture Market Facts

•The denture market is projected to grow at

CAGR of 4.9% through 2019

•More than 6.2 million denture units were

produced in 2012, and it is projected to reach

7.7 million by 2019

•ASP of a denture unit will remain relatively

flat through 2019 increasing only 1.7%

•Higher margin, less price sensitivity than

fixed restorations

15

Key Takeaways

• Increased growth of partial dentures,

particularly the demand for flexible partials

•Tripled growth of population over the age of 65

•Demand for implant supported dentures

•Growth of corporate dental chains who now

own 7.5% of the denture market

•Digital denture services

16

Key Takeaways

•12% of full denture cases are now supported

by implants

•The implant-supported denture market is

expected to grow at a CAGR 6.7%

•59.2% of US dental laboratories offer full

denture services

•56.2% of US dental laboratories offer partial

denture services

17

US Implant Market by Type

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Implant Market Facts

•The US market for dental implants is

estimated at $1 billion

•Unit sales for dental implants will increase at

a CAGR 9.6% by 2019

•US dental implant market is projected to

reach $5 billion by 2018

•10% of US dentists place dental implants

19

Glidewell Laboratories 10 years ago

• Our dental technicians were

primarily comprised of waxers,

metal finishers, opaquers and

master ceramists

• Restorations were made by

hand

• There was a strong focus on

artistry and craftsmanship

20

Glidewell Laboratories today • 90% of our cases are now

done via CAD/CAM

• This means we have fewer

master ceramists hand-

stacking porcelain

• Instead we have a growing

number of Technicians,

Engineers and IT

Professionals trained in the

development and support

of CAD/CAM and digital

technologies

21

The Future

• Greater Digitization in the Industry

• New Materials for CAD/CAM and 3D printing

• Modeless Dentistry

• Greater Outsourcing – Products & Services

• Greater focus on Productivity and Profitability

• More focus on education by labs

• Fewer Laboratories

• Lower Prices

22

The Drivers of Rapid Changes in the

Dental Lab Industry

•Outsourcing

•Technology

•Innovation

23

If You Really Want Success…

Embrace

C H A N G E

24

Long and Winding Road

25

The Road to Success (Surviving vs. Thriving)

• Online Opportunities

– The internet, social media, online marketing

• Providing Education and training to your accounts –

–Be a learning source

• Technical Support and Communication

–Be consultative

• Extreme Customer Service

• Building Relationships

–You need to become the dentist’s trusted resource

• Differentiating your lab

–Products and Services

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The Road to Success (Surviving vs. Thriving)

• Be Better Business People

–Know your numbers and understand them

• Increase your lab’s productivity and profitability

–Don’t confuse activity with productivity

• Don’t become complacent

–Success breeds complacency

• Find the right partners

–Manufacturers

–Distributors

–Outsourcing facilities

27

The Keys to Success

Innovate

Differentiate

Affiliate

Integrate

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You can’t stop the wind… but, you can reset your sails

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THE FUTURE IS BRIGHT!