Straumann Holding AG

Ladies and gentlemen, welcome to the Strauman Group Q3 2025 results conference call and live webcast. I am Valentina, the chorus call operator. I would like to remind you that all participants will be in listen-only mode and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and 1 on your telephone. For operator assistance, please press star and 0. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Guillaume Danielot, CEO. Please go ahead.

Thank you, and good morning or afternoon to all of you. Thanks for attending this conference call on the Stroman Group's Third Quarter Reasons 2025. Please take note of the disclaimer in our media release and on slide two. During this conference call, we are going to refer to the presentation slides that were published on our website this morning. As usual, the discussion will include some forward-looking statements. As shown on slide three, I will start with the highlights for the third quarter. Isabelle will then cover the financial details, and afterwards, I will share strategic updates and our outlook. We will be happy to answer your questions at the end of the presentation. Let's start with our highlights and move directly to slide five. I'm really proud of our teams globally for the great progress they made this quarter and how they are demonstrating agility to adapt to different market dynamics. In the third quarter, our revenue reached 602 million Swiss francs, representing a strong organic growth of 8.3%. For the first nine months, we achieved 2 billion Swiss francs, which is up 9.6% organically. Building on this strong performance, I'm excited to announce the important steps in our orthodontics strategy, which includes new partnerships that will enable us to transform our ClearLiner business and unlock the full potential of our ClearCorrect brand. Later in the presentation, I will explain how we will accelerate innovation increase profitability, and strengthen ClearCorrect's position for sustainable growth, together with our strategic partners, Smarty and Dental Monitoring. On the digital innovation side, one of the highlights of the third quarter was the launch of our new Sirius X3 intraoral scan. This marks another major step in strengthening our scanner portfolio across all price segments, and our digital ecosystem through its full integration in our Stroman Access cloud-based platform. On the operational side, we are very pleased to announce that our new campus in Shanghai is fully operational by now and delivering first commercial products to the Chinese market. With this, we have significantly strengthened our supply chain resilience ahead of the upcoming VVP 2.0, which is expected to be announced end of this year. These achievements strengthen our foundation and create the opportunity for continued growth, supporting our confirmed full-year 2025 outlook of high single-digit organic revenue growth and a 30 to 60 basis point improvement in the core EBIT margin at constant 2024 currency rate. Outerning to slide six and the regional development, I would like to start by highlighting that EMEA has once again achieved an excellent organic revenue growth with 11.2%. This success was driven by a strong execution across all businesses, including double-digit growth in orthodontics and strong traction from our recent innovations in our core implant segment. The Stroman brand continued to gain market shares. while our challenger brands Nudent and Antogear also grew strongly, reflecting our ability to serve different customer segments across different price points. In North America, we delivered solid growth in a still volatile environment. Organic growth accelerated to 5.7%, reflecting strong execution and growing adoption of IXL implant system and our digital solutions. From a general perspective, patient flow remained rather stable during the quarter, even if we could witness some initial pocket improvements. In Asia Pacific, the significant slowdown compared to the previous quarter reflects two very different dynamics. On the one hand, in China, we have seen a significant slowdown due to the initial effect of EVP 2.0. Some patients have started postponing treatments, and distributors reducing inventories. On the other hand, markets outside China continue to grow strongly, especially India, Thailand, Australia, and Japan, driven by robust patient demand and expanded access to care through intensified education activities. Finally, Latin America once again delivered a remarkable performance with 18% showing double teaching growth across all segments. our challenger brand Neodense remains the key growth driver, while the Stroman Premium brand, our orthodontics and digital businesses contributed strongly. Therefore, overall, our regional performance highlights the strength of our strategy and our ability to execute with discipline and agility across markets, with each region contributing with good growth despite varied market conditions. With this, let me now hand over to Isabel who will take you through the financial performance.

Thank you, Guillaume, and hello, everyone. Let's move to slide eight, where you can see the revenue bridge for the third quarter. Our reported revenue increased from 586 million Swiss francs to 602 million Swiss francs, which represents a 2.9% growth. The foreign exchange rate effect of 30 million is still very significant, but lower than in the second quarter. overall organic revenue growth led us to 8.3%. As already mentioned by Guillaume, EMEA, our largest region, was once again the main growth contributor, accounting for roughly half of the total increase in revenue, followed by strong performance of our Latin America region, which contributed more than 20% to the growth growth. Despite the currency effect, which we still expect to have a top line impact of 470 to 490 basis points for the full year, our underlying business remains very strong, reflecting both the strength of our brands and our disciplined execution across regions. Continuing with slide nine, let's talk about our efforts to mitigate tariffs. As you know, new tariff regulations have added cost pressure to the business. To counteract this, we have continuously implemented a set of mitigating measures over the past month. In the short term, we have increased inventory levels in key markets and adjusted logistic flows accordingly to secure continuity of supply chain. Thanks to these mitigating measures, we could sustainably reduce the effect of tariffs to around 20 to 25 million Swiss francs for the full year 2025. For next year, we are increasing the share of locally produced finished products including local assembly and packaging lines, to reduce tariff exposure and improve supply chain efficiency further. For next year, we currently expect a similar impact from tariffs of around 30 million Swiss francs. With this, we are protecting our margins while maintaining excellent service levels. Finally, a quick reminder on our capital allocation priorities on slide 10. Our first priority remains reinvestment in sustainable business growth, followed by maintaining a strong balance sheet and selected M&A to accelerate strategic execution. With continued earning growth, we also aim to maintain or increase our dividend over time. So in short, we invest where the return on capital is highest, also from a shareholder perspective. With that, let me hand back to Guillaume for the strategic update.