DENTSPLY SIRONA Inc.

Good day and thank you for standing by. Welcome to the Dent Supply Sirona third quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Andrea Daly, Vice President of Investor Relations. Please go ahead.

Thank you, Amy, and good morning, everyone. Welcome to the Dents by Sirona third quarter 2023 earnings call. Joining me for today's call is Simon Campion, Chief Executive Officer, Glenn Coleman, Chief Financial Officer, and Andreas Frank, Chief Business 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.densebyserona.com. Additionally, historical financial data related to our new segments is also available on our website. Before we begin, please take a moment to read the forward-looking statements in our earnings press release. During today's call, we may make certain predictive statements that reflect our current views about future performance and financial results. We base these statements and certain assumptions and expectations on future events that are subject to risks and uncertainties. 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 are 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 where 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. Comparisons are provided versus the prior year quarter unless otherwise noted. A webcast replay of today's call will be available on the investor section of the company's website following the call. 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 2023 earnings call. Today, I'll start by providing an overview of our recent performance, and then Glenn will cover Q3 results and the revised 23 outlook. Before we discuss recent performance, I want to comment on the recent events in the Middle East. I am deeply saddened by the horrific terrorist attacks on Israel and the continued injuries and loss of innocent lives. We have over 300 employees in the country, and the safety of our employees and their families is our utmost priority. Currently, our business in Israel remains operational, and Glenn will touch upon this topic again when he covers the outlook assumptions. I would like to remind you all that we are hosting our Investor Day next Thursday, November 9th, where we plan to cover our strategy and three-year plan in more detail, including the path to the adjusted EPS target of $3. As such, for today's call, our prepared remarks will be brief and focus primarily on a few key messages, Q3 financials, and our outlook for the rest of the year. Now, starting on slide four, In Q3, we continue to execute on our strategic plans to transform the business to deliver sustainable performance over the long term. We are making meaningful progress on our objectives despite the challenging macroeconomic conditions that negatively impacted top-line growth in the quarter and led to the revised 2023 outlook. The business experienced headwinds in certain markets, particularly Germany and the US. I'm sure you've seen the data from ADA and I'll comment momentarily on our own survey data. There were, however, some bright spots in the quarter, including 20% growth in China and double-digit growth in our U.S. CAD-CAM business. Our liners business with Byte and SureSmile also delivered another quarter of double-digit growth. In Q3, our EBITDA margins expanded 70 basis points with additional contributions generated by our restructuring program. These initiatives remain on track to deliver the full $200 million run rate savings by mid-2024. Additionally, today, we announced our plan to execute $150 million in share repurchases during the fourth quarter. Despite the headwinds we faced in the quarter, we continue to build capability and stay focused on our transformation journey. Now, moving to slide five, let's start with DSOs. we're seeing positive results from our reinvestment into our relationships with DSOs. We continue to repair, rebuild, and refocus on our relationships with this important and growing customer segment. Our performance in this quarter was slapped sequentially. We are building positive momentum with a healthy funnel of DSO opportunities over the next several quarters. We are also fulfilling our renewed commitment to clinical education. Our live education events such as DS World serve as an important component of our overall clinical education infrastructure. These events give us the opportunity to engage with customers and provide unparalleled clinical education. This year, we hosted four DS World events in the US, Spain, Italy, and Dubai, with three held this past quarter. Approximately 7,000 participants attended globally, and we delivered over 250 education courses. At DS World in Las Vegas, we presented the future of care. We believe DS Core will play an increasingly important role in delivering the future of care as the digital paradigm shift connects products and technologies in delivering care to patients. It's a key element of our strategy, and we highlighted expanding features at this year's events. Now, of course, we continue to focus on innovation. We recently launched a new SureSmile simulator on DS Core, which has generated positive feedback. Customers have highlighted patient experience and efficiency benefits with the integration of the simulator into DS Core. We have also released updates to DS Core, including the communication canvas and lab ordering and viewer functionality. We are particularly pleased with the communication canvas as it enables customers to highlight the entirety of a patient's clinical data and proposed treatment plan in one place. Anecdotal commentary from customers indicates that it drives an increase in treatment acceptance rates with customers. We look forward to discussing and showcasing DS Core's capabilities in greater depth at our Investor Day next week. I'd also like to highlight Optics Agile, which we recently launched as part of our implants bone regeneration portfolio. Implants clearly remained an important part of our business, and while we have a robust portfolio, we continue to increase the capabilities of our commercial teams, expand investment in clinical education, and incentivize commercial execution. And finally, in Q3, we continued our cadence of quarterly regional business review meetings with meetings in APAC and LATAM. These meetings provide us the opportunity to dive deeper into each business and to engage with employees and customers. As a result of these reviews, we have identified key opportunities in each region for potential growth investments and have already taken action on some. The consistent and highly positive feedback from our employees and customers strongly supports continuing this in 2024. Now, just before I turn it over to Glenn to discuss our third quarter results in more detail, I'd like to take a moment to comment on our revised outlook. As we continue to focus on the transformation of our organization, including driving greater discipline and accountability, customer centricity will continue to stand as a core theme. As such, we believe our quarterly surveys have helped inform us and you of market trends. The weak sentiment in Australia and Germany in Q1, followed by reduced sentiment in Germany in Q2, led us to exhibit caution during our Q2 earnings call in August, especially given our presence in Germany. With continued negativity among German and Australian customers, in addition to reduced patient volume trends in the US, we decided to revise our outlook. which now sits within the guidance ranges set at the beginning of the year, despite a worsening macroeconomic environment. And with that, I'll hand it over to Glenn.