DENTSPLY SIRONA Inc at Robert W Baird Global Healthcare Conference Summary

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

Question: Jeff Johnson - Robert W. Baird & Co. Incorporated - Analyst : Yeah. Great. Thanks. So you covered quite a few topics there from the restructuring and cost takeout to the new products to the just core execution part. Let's start with Primescan 2 just it does -- wasn't in my original script only because we didn't know you were launching it until last week, but I'll give you a couple of minutes here, a commercial for Primescan 2 if you will. And the way I want to phrase the question, kind of couch it is you don't -- you guys have really focused on DS core in this cloud-based solution in the last year or two. How do you see that fitting into the future of dentistry between DS core and then I think Primescan 2 is your first product that directly connects to DS core. And I think you have to be subscribed to DS core or even to use it. I might be wrong on that, correct me if I'm wrong on that, but how are you trying to transform. What can be a slow-moving dental industry as well, but how are you trying to transform that with products like Primescan 2, but more importantly, the DS core. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 1:40PM, XRAY.OQ - DENTSPLY SIRONA Inc at Robert W Baird Global Healthcare Conference

Question: Jeff Johnson - Robert W. Baird & Co. Incorporated - Analyst : Fair enough. And when you move everything to the cloud, the way you're doing is that for convenience for the docs? Is it for lower operating costs over time for the docs? Just what are the key advantages, and have you seen any other companies because of your major competitors, we're not seeing anyone else really push on this cloud-based solution in a big way. Is this what you think at the core is going to be Dentsply differentiating -- differentiation, I guess over the next 5 to 10 years.

Question: Jeff Johnson - Robert W. Baird & Co. Incorporated - Analyst : Okay. And you guys are trying to hit a price point, I think with Primescan 2 and correct me if I'm wrong here, but it's somewhere between Primescan Connect and fully loaded Primescan cart based all that. And theoretically, to your point, it should be hardware light compared to your other Primescan. So one, is this a gross margin play as Primescan 2 a gross margin benefit for you guys? I'm assuming it is, but you can answer that question. And then two, in this market where you do see Primescan Connect has had good success. Obviously, you've had to get into that $20,000 price point, as you've seen from competitors launch down an even lower price point. Is middle of the road, the right price point that will appeal to Dennis for what they're getting here and Primescan 2? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 1:40PM, XRAY.OQ - DENTSPLY SIRONA Inc at Robert W Baird Global Healthcare Conference

Question: Jeff Johnson - Robert W. Baird & Co. Incorporated - Analyst : And in the years you referenced there and thinking out over the next few years. You think more of those and I know most probably -- I don't know how to define most, but most will probably be standalone scanners that you sell, but do you think more of the minority will be attached to CEREC mill or attached to a 3D printer?

Question: Jeff Johnson - Robert W. Baird & Co. Incorporated - Analyst : All right. Fair enough. You mentioned Germany, you mentioned in years as you run over the slides, Europe 39%, your biggest market. We do a lot of survey work, but it obviously we serve a US dentists. And I think I'd feel somewhat comfortable saying the dental market in the US has been relatively stable, again, plus or minus in every month, they probably feel a little better, a little worse versus the prior month. But relatively stable, you do as much if not even more survey work than we do have your own customer base. One, do you agree with that assessment of the US market and then Europe has had pockets of okay, and not okay. But Germany, to your point is your biggest market just given the legacy Sirona, and that's where the survey data has really looked soft, any change in the German outlook in the near term. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 1:40PM, XRAY.OQ - DENTSPLY SIRONA Inc at Robert W Baird Global Healthcare Conference

Question: Jeff Johnson - Robert W. Baird & Co. Incorporated - Analyst : Okay. And those are helpful update. So maybe move on a couple of other topics here. A question I've been getting from investors here just recently. Glenn announced he was stepping down as CFO. We've seen, Andreas, no longer with the company. What signal, if any, are those sending? How do we think about what that means about the internals of Dentsply at the outlook? Is there anything we should be reading there good, bad, and different?

Question: Jeff Johnson - Robert W. Baird & Co. Incorporated - Analyst : And I think I asked you this question last year, I asked it as a you've been there for one year now. I'll ask it as you've been there for two years, you don't have those transformation efforts been more challenging or been about what you expected. And I think look, if we're being intellectually honest, you guys have done a lot of blocking and tackling on some of those transformation efforts. Obviously, it's not easy to go in and shut down factories and or facilities in Germany or what have you and I think Andrea always tells me I'm saying that wrong, and I'm not supposed to phrase it that way or something with the German market. So correct me with exactly technically what you're doing in Germany, but you've had some good success there. Are those -- is the cost savings still on track? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 1:40PM, XRAY.OQ - DENTSPLY SIRONA Inc at Robert W Baird Global Healthcare Conference

Question: Jeff Johnson - Robert W. Baird & Co. Incorporated - Analyst : Okay. Fair enough. In just on the SKU point, again, it's technical. It's not -- I don't even know that we model it directly, although Dan and Tommy would know that better than I do. But you had been talking about taking those endo and resto skews down 60%. Now, you're saying you're only going to take them down 48% to 50%.

Question: Jeff Johnson - Robert W. Baird & Co. Incorporated - Analyst : Okay. Is that a new number? I don't remember you talk about that.

Question: Jeff Johnson - Robert W. Baird & Co. Incorporated - Analyst : Did you? Okay, sorry. Maybe it was a busy day. I'll blame that as opposed to anything else. So maybe I missed it. One of the topic that came up on last quarter's call was obviously, you n't a letter you sent or at least a discussion you had with one of your biggest channel partners out there about whether or not you're going to renew in the '25, '26 time period? The distribution agreement. As I go out there and diligence and talk to some of the private dealers and manufacturers on that, I don't think those letters are too abnormal. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 1:40PM, XRAY.OQ - DENTSPLY SIRONA Inc at Robert W Baird Global Healthcare Conference Let's just call the time I'll give you a chance to go back to the table and say we want to renegotiate some things. One is my assessment of that correct. And two, what are you really looking for different, better, changed from maybe your distribution partners?

Question: Jeff Johnson - Robert W. Baird & Co. Incorporated - Analyst : Okay. And is there any reason to think there was just something with the fiscal calendar that the calendar, calendar, anything that Patterson was just the first, but we might see this same discussion or notice to other distribution partners? Or was it mainly a Patterson focus?

Question: Jeff Johnson - Robert W. Baird & Co. Incorporated - Analyst : Okay. I'll check that off the box. Thank you. A couple of other questions. You don't maybe we'll start on the orthodontic side. It's not quite 10% of your global revenue, but it's probably been the best outside of maybe the healthcare part of the business, the best performing. So talk to me about maybe the sustainability of that SureSmile product, you are talking about now starting to take that into the ortho channel. You don't have an ortho sales force. Is this incremental investments? And how do you go in and build relationships since you've been out of the ortho channel now for what, four years, five years, but it's not really been out of the ortho market since the tsunami, so for 10 years or something. So just how do you overcome those challenges?

Question: Jeff Johnson - Robert W. Baird & Co. Incorporated - Analyst : Your talking the treatment planning?

Question: Jeff Johnson - Robert W. Baird & Co. Incorporated - Analyst : Yeah, fair enough. All right. So yes, I was going to go to implants on that just in -- I think when you came in two years ago, we're going to put 30 new sales reps in the US market. We're going to go out there and hold more education events. We'll get back to market within a year or so. And I think the realization is hit that it's going to take more than just probably you don't education events and what have you? So yeah, on the implant side, I have one question on Byte. I want to come back to as well in ortho. But since we're segue into or implants here for a second, how do you overcome those challenges in implants? And what does it take, does it take new product, a new focus on price point? What does it take to get back to at least market, which from here would probably be a home run just get back to market for your implant business? I mean, it would do a lot for your overall growth.

Question: Jeff Johnson - Robert W. Baird & Co. Incorporated - Analyst : Fair enough. I -- it will be interesting to see how that hypothesis plays out because I do think a lot of GPs still the tough cases. So if you're going to go after the tough cases on the ortho channel, the high-acuity teen cases, especially I think a lot of those do get turns (multiple speakers) We will see what happens on Byte. So Byte you your biggest competitor in the DTC market went out of business at the end of the year that provided some tailwind. How do you see demand at this point on just a x smile direct tailwinds basis. Is there still decent demand out there for the DTC product? How do you keep that demand growing over the next couple of years on the DTC side?

Question: Jeff Johnson - Robert W. Baird & Co. Incorporated - Analyst : Yeah. Fair enough. You've mentioned a couple of times, I hear you talk about it increased the burden maybe on the government affairs, obviously, ERP I think the joke is something like any ERP system that any company puts in and the cost and twice as much and taken 3 times as long or something. But there's definitely some costs here building that orthodontic sales force, things like that. So I think you've done a good job of executing and holding the cost savings. You are delivering to the cost savings you promised. It was at last quarter and I can't find it here in my notes. I'm looking at an incremental $100 million now. You've uncovered that you can take out costs, whatever that number is one, help me out on what that number is, but two, how much of that now can you let flow through or should we think about the vast majority of that now helping fund these additional investments you're thinking about and contemplating.

Question: Jeff Johnson - Robert W. Baird & Co. Incorporated - Analyst : Yeah. Fair enough. Thirty seconds two just very quick questions, one back to implants, and I'm jumping around here, but thoughts on build versus buy, do you have the product you need, you have the capabilities to develop the product you need it to improve your performance in that business.