DENTSPLY SIRONA Inc at JPMorgan Healthcare Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Rachel Vatnsdal - JPMorgan - Analyst : Perfect. Thank you, Simon. So first up, I just want to kind of walk through some of the dynamics on aligners given the updates that you gave us this week. At your most recent Analyst Day, you noted that you expected over 20% growth in the aligner market just given SureSmile and Byte. Today you noted that aligners are targeting kind of that double-digit growth range. So given some of the refocus on the Byte model here, are you still expecting double digits to be into that 20% range, or could double digits mean more something like 10% just given some of that reprioritization there?

Question: Rachel Vatnsdal - JPMorgan - Analyst : Perfect. Then just kind of sticking on that same topic of aligners. So in the press release, you noted that you're planning on repositioning Byte within that aligner portfolio to include more in-person dentist oversight. So can you provide more details on what the future operations of how that repositioning will work out? And then specifically, will that DTC model still play a role at all in the positioning, or will you entirely shift that focus into the in-person dentist visits?

Question: Rachel Vatnsdal - JPMorgan - Analyst : Perfect. And then you also mentioned in that press release leveraging some of Byte's core competencies and expanding that digital customer journey for patients. So can you talk about how you plan on integrating some of those core competencies in the digital customer journey into the broader aligner portfolio?

Question: Rachel Vatnsdal - JPMorgan - Analyst : That's helpful. Maybe shifting over more to just your view on the market expectations across dental, obviously, 2024 was a challenging year for the dental end-market. So can you walk us through how that environment has really progressed throughout 4Q and if customer demand is trending better and during 2025? And overall, do you expect that end market to materially improve in 2025?

Question: Rachel Vatnsdal - JPMorgan - Analyst : Perfect. Maybe just digging into that equipment versus consumable trends a little bit more, can you walk us through your customer conversations toward the end of the year across equipment versus the consumables part of the portfolio? You've mentioned that consumables have remained more stable. So how should we expect that to trend into 2025? Are you seeing heightened pressures anywhere, just given macro challenges, some of the elective procedures and things like that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 15, 2025 / 3:30PM, XRAY.OQ - DENTSPLY SIRONA Inc at JPMorgan Healthcare Conference

Question: Rachel Vatnsdal - JPMorgan - Analyst : Perfect. That's helpful. Then just sticking on this idea of end market backdrop and market growth, are there anywhere where you believe that Dentsply can outgrow the market in 2025? Which products do you view is taking a little bit longer to recover on the flip-side as well?

Question: Rachel Vatnsdal - JPMorgan - Analyst : Perfect. Maybe a more general market question as well is just one of the updates that we've gotten in recent months is the election and the new Trump administration. There's been a lot of noise for, I think, all the health care investors in the room, and I would say that maybe dental is one of the areas that's been a little bit more insulated from that noise. So can you walk us through, do you see any impact in light of the new administration to Dentsply's business? And has it impacted any of your customer conversations as well? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 15, 2025 / 3:30PM, XRAY.OQ - DENTSPLY SIRONA Inc at JPMorgan Healthcare Conference

Question: Rachel Vatnsdal - JPMorgan - Analyst : Perfect. And then maybe shifting to some of your targets. You previously had this $3, 2026 EPS target. You've talked about how you're withholding comments on that, just given some of the dynamics of the Byte situation, which is understandable. But can you give us an update on some of the other moving parts in terms of how you were planning on getting there? Things like the restructuring, SG&A savings initiatives, the SKU optimization efforts as well?

Question: Rachel Vatnsdal - JPMorgan - Analyst : That's helpful. Maybe shifting over to implants then. So on implants, can you just walk us through where are we in terms of the revamped go-to-market strategy here? Can you elaborate on what changes you've made on the commercial side and what you have left in order to revamp growth in this segment? And then also, how should we specifically think about value and plans as we head into '25?

Question: Rachel Vatnsdal - JPMorgan - Analyst : Perfect. Then maybe just shifting over to distributor relationships. Can you spend a minute talking about your relationships with your distribution partners? And any changes in channel dynamics that might affect your sales strategy here?

Question: Rachel Vatnsdal - JPMorgan - Analyst : Perfect. That's helpful. Maybe just shifting over then to the cost savings, can you spend a minute talking about how you're progressing towards your $80 million to $100 million run rate cost savings target for 2025? And then what impact do you anticipate that will have on your margins?

Question: Rachel Vatnsdal - JPMorgan - Analyst : Perfect. Then maybe in the last minute or two, Simon, can you just walk us through what do you think is the most underappreciated aspect of the Dentsply story?

Question: Rachel Vatnsdal - JPMorgan - Analyst : Perfect. And with that, we are out of time. So thank you so much, everyone, for joining us today.