DENTSPLY SIRONA Inc.

Good day and thank you for standing by. Welcome to the Dentsupply Sirona fourth 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.

Andrea Daly Thank you, Operator, and good morning, everyone. Welcome to the Densply Sirona fourth 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 Investors section of our website at www.densebyserona.com. 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 will be based on non-GAAP financial results. We believe that non-GAAP financial measures offer investors valuable additional insights into our business's financial performance. enable the comparison of financial results between periods where certain items may vary independently of business performance, and enhance transparency regarding key metrics utilized by management in operating our business. Please refer to our press release for the reconciliation between GAAP and non-GAAP results. Comparisons provided are to 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. We appreciate you all joining us this morning for our Q4 2023 earnings call. Today, I'll begin by providing a summary of our recent performance. Then Glen will cover Q4 and full year 23 financial results and share our 2024 outlook. I will finish by providing a strategic operating update. Now, starting on slide three, We achieved over 2% organic sales growth in 2023, above our projection, driven by growth in three of our four segments. The ortho business saw double-digit growth in both Byte and SureSmile. The EDS segments posted growth in all regions and product categories, and in total delivered mid-single-digit growth, while WellSpect Healthcare generated high single-digit growth. Through the fourth quarter, the macro environment remained challenging. The CTS segments declined slightly more than expected, mainly due to equipment and instruments with softness in imaging, which we anticipate will continue in 2024. This was partially offset by an increase in demand for CAD-CAM, and particularly for intraoral scanners, which was another bright spot for us. In January, we conducted our latest customer survey with over 3,500 respondents from 12 key geographies. Sentiment in the U.S. improved slightly about the future of the industry and their practices. German and Australian customers continue to express a negative outlook, and this is largely unchanged from the last quarter. The survey also suggested that patient demand in China continues at reduced levels, but with no sequential deterioration. EBITDA margin for 2023 came in at 17.4%, and adjusted EPS was $1.83, both in line with our guidance. As we stated at the beginning of the year, we consider 2023 a transition year for Dents by Sirona. We promptly and decisively executed several critical transformation initiatives to achieve the necessary cost savings, enabling strategic reinvestment for hygiene and growth. We made significant progress on these initiatives, which have strengthened the foundation of the business and set us on a path to improved future performance which we highlighted for you at our Investor Day in November. As we have said, we believe 2024 will be an inflection year for us, delivering double-digit adjusted EPS growth, largely due to the benefits of our transformation initiatives. We remain laser-focused on executing our strategy while simultaneously strengthening our foundation, developing new capabilities, and implementing greater discipline and rigor across our business. Moving to slide four, I would like to share some selected business highlights. In 2023, we continued to bring innovation to the market. We enhanced our DS core offering, expanding the platform, and enabling new clinical functionality. On the last earnings call, I shared that we had already exceeded our DS core target for 2023, and as an update, we ended the year with over 14,000 unique accounts. We believe that DS Core will play an ever-expanding role in shaping dentistry as the industry undergoes a digital evolution that's connecting technology and clinical workflows. We're also focusing on digital print materials, and we recently launched Lucitone for PrimePrint and expanded our splints offering. We believe we are well positioned to advance digital print materials and continue to see opportunities to accelerate the adoption of 3D printing in dental practices. as a standalone office capability or as a complement to in-office milling. As previously communicated, we reinvigorated our focus on clinical education offerings. We know that digital dentistry requires hands-on, in-person training to facilitate practice integration and unlock the potential of digital tools, and we are committed to providing this for our customers. In 2023, we were proud to offer over 9,200 training and education courses globally through live, online, and hybrid formats, which reflects about a 30% increase compared to prior year. We also expanded our reach with digital learning platforms through a partnership with DTI that started in the fourth quarter. Live events play an important role in enriching our clinical education platform. Earlier this month, I had the opportunity to attend our second DS World event in Dubai. This event featured courses on many dental disciplines with over 1,000 participants in attendance. And this is the first of several DS World events we have planned this year. In the fourth quarter, we also conducted several implants-focused events in the U.S. and Europe. Building on the success of these events, we look forward to hosting our Implant Solutions World Summit in Miami in the second quarter. We continue to progress our sustainability strategy. In 2023, we achieved a new record for our injury and illness prevention rate. The safety of our employees is of the utmost importance, and we are very proud of this accomplishment. Our well-specced healthcare business also continues to lead in this area and recently won an award for sustainable medtech innovation for the use of renewable plastic in Lofric L, a female urinary catheter. We were also named to Sustainalytics 2024 ESG top-rated companies list earlier this month. Wrapping up the highlights, we recently announced an expansion of our collaboration with ADEC, introducing a new integrated product offering that will bring together PrimeScan Connect and certain ADEC delivery systems. This builds upon our existing collaboration with ADEC that integrated Cavitron into their platform. The new offering creates a fresh solution to meet customer needs, empowering dental professionals to streamline practice workflows and elevate the patient experience. And with that, I will hand the call over to Glenn for the financial update.