DENTSPLY SIRONA Inc.

Good day, and welcome to the Dentsply Serena Q3 2022 earnings conference call. All participants will be in list-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note, this event is being recorded at this time. I would now like to turn the conference over to Mr. Andrea Daly. VP of Investor Relations, please go ahead.

Good morning, everyone. Welcome to our third quarter 2022 earnings call. Joining me for today's call is Simon Campion, Dentsply Serona Chief Executive Officer, and Glenn Coleman, Chief Financial Officer. I'd like to remind you that an earnings press release and slide presentation related to the call are available in the investor section of our website at www.dentsplyserona.com. Before we begin, please take a moment to read the forward-looking statements in our earnings press release. During today's call, we make certain predictive statements that reflect our current views about future performance and financial results. We brace these statements and certain assumptions and expectations on future events that are subject to risks and uncertainties. In our most recently filed Form 10-K and any updating information in subsequent SEC filings lists some of the most important risk factors that could cause actual results to differ from our predictions. Additionally, on today's call, our remarks will be based on non-GAAP financial results. We believe that non-GAAP financial measures provide investors with useful supplemental information about financial performance of our business, enable the comparison of financial results between periods for certain items, may vary independently of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business. Please refer to our press release for the reconciliation between GAAP and non-GAAP results. And with that, I will now turn the call over to Simon.

Thank you, Andrea, and thank you all for joining us this morning for our Q3 2022 earnings call. I'm very pleased to be here talking to you all today for the first time as CEO of Dentsply Sirona. Today, I'll provide you with an overview of the third quarter. Glenn will cover both the quarter's financial results and provide an update on our 2022 outlook. And then I will finish by providing a strategic operating update. Before we jump into those topics, I'd like to make a couple of introductory comments and also provide you with an important update regarding the completion of our internal investigation. First, I'd like to thank John Groslaers for leading the business as interim CEO and for helping to make my transition to CEO a smooth one. I'd also like to thank the entire Dents by Serona team. Our employees' continued dedication and ability to stay focused throughout this period of change has only reinforced my confidence in the many opportunities ahead, and I'm excited to be leading this team at Dents by Serona. I'm also joined here today by Glenn Coleman, our new Chief Financial Officer. As you all know, Glenn and I both joined Dentsply Sirona at the end of the third quarter, so this is our first earnings call as CEO and CFO. Together, Glenn and I bring a robust set of global leadership experience and medical device industry expertise that we expect will serve us well as we lead Dentsply Sirona into a new disciplined future. Importantly, we also intend to bring fresh perspectives and a critical eye to the business. I want to convey to you all why I am excited to be serving as the new CEO of Dents by Serona and why my early discoveries have reinforced my enthusiasm. Since I joined, I have spent time meeting with employees, customers, and other stakeholders, observing and better understanding what we do well, but also diagnosing the areas where we can improve. Along with my leadership team, we are making urgent progress on the development of our plan to restore the company to the growth and performance that it is capable of delivering. While we knew that the company would face financial pressures in Q3 and throughout the rest of 2022, we are focused on the future and the value we can drive for our shareholders. I believe we have tremendous opportunity to create value for shareholders over the near, medium, and long term predicated on three key factors. One, the company plays in an attractive and healthy category with strong growth opportunities. The long-term macro trends are supportive and those who can innovate, leverage global scale, invest appropriately, and execute judiciously through the current challenging external environment will emerge as long-term winners. Thoughtful disposition towards expenses, along with balanced and prioritized investments, will be a theme of this leadership team. Two, Dents by Sirona has a strong foundation from which we can accelerate growth. I believe we have the right to win in the dental market, as we are already well positioned with a comprehensive portfolio, and especially with our digital assets, where we can help shape and lead digital trends in the industry, from imaging to aligners to unique delivery models like BITES. Our strong and recognizable brand and legacy of innovation affords us the opportunity to gain share and grow above market. But to do so, we need to be disciplined and execute. Three, in order to support our strong foundation, we need to deliver on a sound strategy with best-in-class execution. Glenn and I, as you can see on slide five, are bringing together the best management models from our collective career experiences. coupled with the expertise and company knowledge from our management team. We have seen what operational excellence looks like and the results it can deliver, and that's exactly what we intend to implement at Dents by Serona. As we move forward, we will not shy away from making big, sometimes difficult decisions to put the company on a path to sustainable growth and long-term value creation. I look forward to sharing details of our plan with you over the coming months including metrics by which our progress can be tracked as we work towards our full potential. I'd also like to provide you an important update on the internal investigation. As you know, on November 1st, we announced that the Audit and Finance Committee of the Board of Directors had completed the investigation. Details on the investigation findings and associated remediation plans can be found in our SEC filings, which include an amended 2021 10-K. Remediation actions associated with the investigation and accounting review are underway, and moving forward, we are focused on creating a culture and company that is committed to accountability and transparency as we continue to implement the necessary remedial actions and operate with the utmost levels of integrity. Glenn will discuss the findings as well as remedial actions that we are taking. On behalf of the board and management, I would like to extend our sincerest thanks to all Dents by Sirona team members, especially our finance, accounting, and legal teams, as well as our audit and finance committee and advisors for their support and commitment as the company works to investigate and resolve these matters. Now, before I turn it over to Glenn, let me cover a couple of key observations on the third quarter. During my first week at Dentsply Sirona, I had the opportunity to experience CS World for the first time and was very impressed by the event, our technology, and our team. The level of engagement with our customers and partners was unparalleled. I had the opportunity to see firsthand our launch of several new digital solutions, including the new PrimeScan Connect, and had the privilege of hearing directly from customers on the tremendous value these solutions will deliver for their practices and patience. I will further discuss the importance of innovation after we cover the quarterly results. The business delivered disappointing Q3 financial results, which were impacted by foreign exchange headwinds, softer volumes in the U.S. and China, and continued global supply chain challenges. Despite recessionary and other external pressures, we were encouraged in the third quarter by solid continued growth across the portfolio in Europe, double-digit growth in clear aligners, and growth in imaging despite some supply constraints. Global demand remains strong in these areas, and we are well-positioned to capitalize on the continuation of the industry's adoption of digital dentistry. I'll share further thoughts on what we can do to drive performance going forward after Glenn provides a more complete overview of Q3 and our outlook. Glenn?