Dentsply Sirona Inc. · NASDAQ:XRAY
Dentsply Sirona — Investor Day (November 2023)
110 slides from Dentsply Sirona's investor day presentation, Nov 9, 2023
Slide 1: 2023 Investor Day
2023 Investor Day November 9, 2023 Charlotte, NC
Slide 2: Welcome and Opening Remarks
Welcome and Opening Remarks Andrea Daley VP, Investor Relations November 9, 2023
Slide 3: Forward-Looking Statements and Associated Risks
Forward-Looking Statements and Associated Risks This presentation contains statements that do not directly and exclusively relate to historical facts which constitute forward-looking statements, including, statements and projections concerning, among other things, the expected timing, benefits and c
Slide 4: Today's Agenda
Today’s Agenda 8:30 am Welcome and Opening Remarks 10:40 am Commercial Excellence Panel Andrea Daley VP, Investor Relations Andrea Frohning SVP, Chief Human Resources Officer Andrew Robinson SVP, North America RCO Bruce Peatey GVP, APAC RCO Transforming Dentistry Gerry Campbell GVP, EMEA RCO Simon C
Slide 5: Transforming Dentistry
Transforming Dentistry Simon Campion President and Chief Executive Officer November 9, 2023
Slide 6: Key Messages
Key Messages Dental is an attractive industry with DS well-positioned for profitable growth by executing on our clear strategy Our transformation plans will shape a more durable, nimble and faster growing business over the long-term Winning portfolio with sustainable competitive advantages including
Slide 7: Vision and Renewed Commitment to Our Values
Vision We transform dentistry to improve oral health globally Renewed Commitment to Our Values Accountable Agile Collaborative Respectful Trustworthy We hold ourselves We innovate. We We are good We listen. We foster Our customers can and each other challenge ourselves partners. We learn diversity a
Slide 8: Dentsply Sirona Snapshot (NASDAQ: XRAY)
Dentsply Sirona Snapshot (NASDAQ: XRAY) Key Statistics Business Strengths 1877 Charlotte, NC ~15,000 100+ 400,000+ $3.9B Founded Headquarters Total Employees Countries Served Dental Professionals 2022 Net Sales Trained Annually(1) End-to-End Dental Portfolio Orthodontic and Essential Dental Rest of
Slide 9: Dental: An Attractive and Evolving Market
Dental: An Attractive and Evolving Market Integrated, Connected and Long-Term Macro Tailwinds An Evolving Industry Accessible Care ▪ Positive demographic trends ▪ Efficient digital workflows enabled by ▪ Growing adoption of digital technologies interoperable and connected technology ▪ Increasing glo
Slide 10: Opportunity to Capture Share in Growing Segments
Opportunity to Capture Share in Growing Segments Total Addressable Markets ~$10B ~$8B ~$7B ~$5B ~$30B ~$32B ~$2B Connected Orthodontic and Implant Solutions Essential Total Wellspect Technology Implants and Dental Healthcare Total Aligners Dental Solutions Prosthetics Solutions Estimated Long-term M
Slide 11: Our Strategy
Our Strategy Transform dentistry by digitalizing dental workflows, driving product and service innovation and delivering an exceptional customer and patient experience through an engaged and diverse workforce 1 2 3 4 5 ACHIEVE ANNUAL ENHANCE & ACCELERATE WIN IN CREATE HIGH GROWTH & MARGIN SUSTAIN EN
Slide 12: The DS Operating Model
The DS Operating Empowering Customers Model Plan | Process | Performance 12
Slide 13: Winning as One Team
Winning as One Team … Ethics and Compliance ▪ Tone from the top ▪ Code of Ethics and Business Conduct ▪ Speak up culture Empowerment ▪ Bold decision making Empowering ▪ Generation of new ideas Customers Commitment ▪ Mission driven ▪ Organizational structure drives alignment, accountability and disci
Slide 14: A Sustainability Strategy Aligned to Our Company Strategy
A Sustainability Strategy Aligned to Our Company Strategy SELECT 2022 ESG HIGHLIGHTS 2025 PRIORITY GOALS HEALTHY SMILES 25 million smiles 5.4M+ +7,000 +416,000 Empowered Clinical education Dental professional smiles and training courses clinical education across 75 countries course registrations(1)
Slide 15: Achieving 25 million smiles by 2025
Achieving 25 million smiles by 2025 Empowering Women Project 32 Amazon Doctors Smile Train Making dentistry an inclusive Transforming access to Donating equipment and Advancing the future of cleft industry by supporting women dental care by providing volunteering time to deliver care together. Throu
Slide 16: New Leadership Focused on Execution, Accountability and Value Creation
New Leadership Focused on Execution, Accountability and Value Creation Simon Campion Glenn Coleman Andreas Frank Rich Rosenzweig Tony Johnson Emily Miner President and EVP, Chief Financial Officer EVP, Chief Business Officer SVP, Corporate SVP, Chief Supply Chain SVP, Quality and Regulatory Chief Ex
Slide 17: Growing Through Innovation ...
Growing Through Innovation ... Digitalization Focused on Customer Needs ▪ Acceleration of digitally connected solutions ▪ Digitally mapped dental workflows ▪ Customizable and scalable Customer Centricity ▪ Deeper and continuous customer needs assessment and Empowering involvement in product design C
Slide 18: Customer Perceptions Provide Portfolio Insights and Opportunity
Customer Perceptions Provide Portfolio Insights and Opportunity Voice-of-Customer Results Voice-of-Customer Research 2,000+ THREE NPS is At or Above customers Key Markets Key Competitors(1) USA DE CN Strong Customer Advocacy Key Focus Areas for Strong Customer Advocacy in Endo Files, Chairside Mill
Slide 19: Driving Disciplined Execution ...
Driving Disciplined Execution ... Integrated ▪ Enterprise first ▪ Infrastructure investments to drive efficiencies, improve customer experience and enable new business strategies Efficient ▪ Ongoing portfolio optimization Empowering ▪ Streamlining the organization; improving processes Customers ▪ Si
Slide 20: Transforming the Business
Transforming the Business … Organizational Strategic Reinvestments for Realignment Hygiene and Growth $200M+ SKU Optimization ERP Network Optimization Est. annual run-rate savings Channel Clinical Compliance Investments Education … To Increase Efficiency and Effectiveness 20
Slide 21: Execution x Transformation = Performance
Execution x Transformation = Performance ✓ Higher growth trajectory ✓ Actions taken to reduce cost structure (1) 4% – 6% +500 bps $3.00 Organic Growth CAGR Margin Expansion 2023E – 2026E 2026E Adj. EPS ✓ Focus investments on high-growth platforms and geographies ✓ New capital deployment strategy ✓ D
Slide 22: Accelerating Profitable Growth
Accelerating Profitable Growth Andreas Frank Executive Vice President, Chief Business Officer November 9, 2023
Slide 23: Key Messages
Key Messages Connected Portfolio – largest end-to-end dental platform positioned for digital growth DS Core – cloud-enabled force multiplier to connect clinical workflows and technology Global Clinical Education – expansive and evolving programs to support customers Commercial Excellence – focus on
Slide 24: Levers to Accelerate Profitable Growth
Levers to Accelerate Profitable Growth Key Value Drivers Winning Portfolio Digitalization Customer Intimacy Clinical Commercial Education Excellence Disciplined Execution Differentiated Customer Experience with Dentsply Sirona 24
Slide 25: Comprehensive End-To-End Portfolio Across Served Markets
Comprehensive End-To-End Portfolio Across Served Markets Connected Technology Orthodontic and Implant Essential Dental Wellspect Solutions Solutions Solutions Healthcare Implants Aligners $1.2B MSD+ $0.7B MSD $0.3B 20%+ $1.4B LSD $0.3B MSD+ Target Target Target 2022 Net Sales Target Growth(1) 2022 2
Slide 26: Wellspect Healthcare Business Overview
Wellspect Healthcare Business Overview Key Categories Urology Enterology LoFric, Orego Navina Sales by Category Sales by Region Market Size (MSD Est. LT Growth) United States Urology Dentsply Sirona Rest of World $0.3B $0.3B ~$2B 2022 2022 Total Addressable Enterology Net Sales Net Sales Europe Mark
Slide 27: Wellspect Healthcare Growth Drivers
Wellspect Healthcare Growth Drivers Key Initiatives Sales Growth Gain share through innovation and 1 commercial execution (B2B and DTP) MSD+ 3-Year CAGR Enterology 2 Expand in markets with favorable reimbursement 3 Leverage investments in lean operating model Urology 4 Maintain leadership in sustain
Slide 28: DS Core as Force Multiplier for the Digital Dental Practice
DS Core as Force Multiplier for the Digital Dental Practice Advancing Oral Health TRUSTED CONNECTED WORKFLOW TECHNOLOGY Patient Clinician Lab Trusted Workflow Experience Accretive Growth Through Connected Portfolio >45% of Revenue Today 28
Slide 29: Connected Technology Solutions Business Overview
Connected Technology Solutions Business Overview Key Categories CAD/CAM (IOS, Mill, Print) Treatment Centers and Instruments Imaging CEREC, Primescan, Primeprint, Primemill Axano Schick, Axeos, Orthophos Sales by Category Sales by Region Market Size (MSD Est. LT Growth) Imaging Rest of World United
Slide 30: Connected Technology Solutions Growth Drivers
Connected Technology Solutions Growth Drivers Key Initiatives Sales Growth 1 Improve workflow efficiency MSD+ 3-Year CAGR Treatment Centers and Instruments 2 Expand open, cloud-based DS Core platform Imaging 3 Connect IOS and imaging installed base to DS Core Leverage CEREC leadership for milling 4
Slide 31: Implants and Prosthetics Solutions Business Overview
Implants and Prosthetics Solutions Business Overview Key Categories Premium Implants Regenerative and Digital Services Lab Materials Value Implants PrimeTaper, OmniTaper OSSIX, Atlantis Lucitone MIS Sales by Category Sales by Region Market Size (MSD Est. LT Growth) Value Implants Lab Materials Rest
Slide 32: Implants and Prosthetics Solutions Growth Drivers
Implants and Prosthetics Solutions Growth Drivers Key Initiatives Sales Growth MSD 1 Improve sales force effectiveness 3-Year CAGR Lab Materials Regenerative and 2 Continue focus on enhanced clinical education Digital Services 3 Accelerate digitally connected portfolio Implants 4 Execute premium / v
Slide 33: Orthodontic Aligner Solutions Business Overview
Orthodontic Aligner Solutions Business Overview Key Categories In-Office Solution At-Home Solution Hybrid Solution (in Pilot) Sales by Category Sales by Region Market Size Europe (15%+ Est. LT Growth) Dentsply Sirona SureSmile Rest of World $0.3B $0.3B ~$5B 2022 2022 Total Addressable Net Sales Net
Slide 34: Orthodontic Aligner Solutions Growth Drivers
Orthodontic Aligner Solutions Growth Drivers Key Initiatives Sales Growth Improve customer acquisition and 1 conversion rates (DTC and professional) 20%+ 3-Year CAGR SureSmile 2 Continue global expansion and market penetration 3 Increase manufacturing and treatment planning efficiency Byte 4 Expand
Slide 35: Essential Dental Solutions Business Overview
Essential Dental Solutions Business Overview Key Categories Endodontics Restorative Preventive X Smart Pro, WaveOne, Reciproq, ProTaper CEREC Tessera, Palodent, SDR Flow+ Cavitron, Nupro Sales by Category Sales by Region Market Size (LSD Est. LT Growth) Preventive Endodontics Rest of World United St
Slide 36: Essential Dental Solutions Growth Drivers
Essential Dental Solutions Growth Drivers Key Initiatives Sales Growth LSD Refine portfolio through strategic product 1 3-Year CAGR life-cycle management and SKU optimization Preventive Focus incremental innovation on procedural 2 efficiency and clinical performance Restorative Improve cost and valu
Slide 37: Levers to Accelerate Profitable Growth
Levers to Accelerate Profitable Growth ▪ Enable digital dental practice Key Value Drivers ▪ Drive focused innovation ▪ Manage product lifecycles Winning Portfolio Digitalization ▪ Leverage global ▪ Expand reach and Customer Intimacy footprint channels ▪ Enhance digital ▪ Increase engagement content
Slide 38: Focused Innovation Driving Return on Investment
Focused Innovation Driving Return on Investment Key Launches Core Capabilities Expanded Milling and Patient Canvas Printing Materials Midwest Energo Lab Connectivity Materials Expertise $180M (~4% of sales) R&D Spend SureSmile Technology Know-How X – Smart Pro+(1) Ossix Agile Outcome Simulator Softw
Slide 39: Efficiency Through Life-Cycle Management
Efficiency Through Life-Cycle Management SKU Optimization Expected Outcomes ▪ Initial focus on Endodontic and Restorative categories $30M ▪ Less than 15% of products driving ~90% of revenue ’24 - ’26 targeted gross profit benefit ▪ Many small SKUs add complexity with ~375 brands at <$5M revenue ▪ Ro
Slide 40: World-Class Global Scale of DS Academy
World-Class Global Scale of DS Academy Key Clinical 55 Education Benefits Education centers; 51 with showrooms Developing relationships and engaging network of “digital” dentists 33 Reinforcing DS brand Countries worldwide and industry leadership 416K 20 Preparing next generation Academies teaching
Slide 41: Education Strengthens Global Clinical Network
Education Strengthens Global Clinical Network 500+ 300+ attendees from >40 countries courses hosted in Implants World Summit Charlotte each year University Partnerships ~7,000 3 major KOL participants at international forums 2023 DS world events (Endo, Resto, Implant) >250 >1,300 education tracks at
Slide 42: Global Commercial Footprint is an Important Differentiator
Global Commercial Footprint is an Important Differentiator 4,800+ 100+ 70% Distr. / 30% Direct Direct to Patient Commercial Employees Countries Business Conducted Global Channel Breakdown Infrastructure at Byte / Wellspect North America Top 15 Markets(1) EMEA 2 Countries / markets 69 Countries / mar
Slide 43: Digital Platforms Drive Customer and Patient Engagement
Digital Platforms Drive Customer and Patient Engagement Growing Consumer Brand Patient Engagement App Hybrid Solution and E-commerce Engine and Support Capabilities with Local Provider Connectivity ▪ ~1M monthly unique visitors ▪ High repeat usage and ratings ▪ Currently in pilot phase ▪ 40% without
Slide 44: Committed to Win with DSOs
Committed to Win with DSOs DSO Needs Our Value Proposition ✓ Comprehensive Portfolio Practice-level + Enterprise-level ▪ ▪ Cohesive and integrated solutions Support with clinical and operational workflows Deliver patient outcome Manage tech and infrastructure ✓ Key Account Coverage ▪ Executive level
Slide 45: Summary
Summary 1 2 3 4 Largest end-to-end DS Core uniquely Expansive and evolving Competitive advantage connected portfolio positioned to connect global education enabled through in dental; accretive clinical workflows footprint to support commercial excellence position in and technology customers worldwid
Slide 46: Connecting the Future of Dentistry
Connecting the Future of Dentistry Max Milz GVP, Connected Technology Solutions November 9, 2023
Slide 47: Key Messages
Key Messages Leading the industry forward with innovative solutions that increase our addressable market and connect the future of Dentistry Enabling better patient outcome as well as growth and efficiency for dental practices Driving competitive differentiation with full suite of proprietary and in
Slide 48: Dentists Across the World Desire Connected Technologies
Dentists Across the World Desire Connected Technologies “ We want User-friendly functions I would expect are incredibly from one company predictable “ important. I want to that all their be able to focus on devices connect results. the treatment very easily. that I deliver. Dr. Brown Dr. Chung USA D
Slide 49: Digital Technologies Drive Better Outcomes for Patients and Clinicians
Digital Technologies Drive Better Outcomes for Patients and Clinicians Driving Better Patient Experiences and Clinical Outcomes Enabling Growth Increasing Efficiency with higher value procedures by saving time in workflows and reducing costs ▪ See more: fast diagnosis of oral health issues ▪ Make to
Slide 50: Growth in High-Value Procedures and Need for Efficiency Gains Drive Adoption of Digital Technologies
Growth in High-Value Procedures and Need for Efficiency Gains Drive Adoption of Digital Technologies Adoption Rates of Digital Technologies ▪ Practice needs to drive tech adoption Intraoral Scanner (IOS) – Greater efficiency (IOS, In-Office Milling, CBCT 3D Printing) AI and Cloud enable adoption of
Slide 51: Simplifying Dentistry with Cloud-based Technology
Simplifying Dentistry with Cloud-based Technology Dentistry today: Dentistry tomorrow: cluttered IT landscape cloud-based ▪ Works on any screen ▪ Automatic software updates ▪ Simplified IT in practice ▪ One user experience ▪ Reduced costs ▪ Easy to service 51
Slide 52: DS Core is at the Heart of Our Connected Solutions
DS Core is at the Heart of Our Connected Solutions DS Digital Technology Trusted Workflow Experience Imaging Intraoral Milling Treatment Prevention and Implants and Aligners Scanner and Printing Centers Restorative Prosthetics Simple, secure and connected cloud platform Diagnosis Patient Treatment C
Slide 53: DS Core Capabilities Today
DS Core Capabilities Today Equipment management Cloud-based media library In-office milling and printing Enhanced patient consultation Virtual simulations Access to treatment services Efficiency through equipment management: Connect and remote service IOS, Mills, 3D Printers, Extraoral Imaging 53 IO
Slide 54: DS Core Capabilities Today
DS Core Capabilities Today Equipment management Cloud-based media library In-office milling and printing Enhanced patient consultation Virtual simulations Efficiency through patient media library in Access to treatment the cloud: All patient media accessible from services anywhere – secure sharing w
Slide 55: DS Core Capabilities Today
DS Core Capabilities Today Equipment management Cloud-based media library In-office milling and printing Enhanced patient consultation Virtual simulations Access to treatment services Efficiency for in-office milling and printing: Trigger milling and printing software – open to 3rd party formats 55
Slide 56: DS Core Capabilities Today
DS Core Capabilities Today Equipment management Cloud-based media library In-office milling and printing Enhanced patient consultation Virtual simulations Access to treatment Enabling growth through services case acceptance: Flexible patient consultation on any screen and ability to share with patie
Slide 57: DS Core Capabilities Today
DS Core Capabilities Today Equipment management Cloud-based media library Growth through case In-office milling acceptance (“educate more”): and printing Aligner treatment simulation Enhanced patient including case complexity and consultation patient sharing Virtual simulations Access to treatment s
Slide 58: DS Core Capabilities Today
DS Core Capabilities Today Equipment management Cloud-based media library In-office milling and printing Enhanced patient consultation Virtual simulations Access to treatment services Growth through easy access to treatment services: Real-time collaboration with labs and access to DS services like S
Slide 59: We Closely Involve Our Customers in the DS Core Roadmap
We Closely Involve Our Customers in the DS Core Roadmap DS Core Innovation Day Across Specialties (October 2023, Zurich SW Engineering Hub) ▪ Key Opinion Leaders from APAC, EMEA, North America and Latin America ▪ Dental specialties (implants, ortho, endo, resto, GPs, labs) ▪ DS clinical experts, eng
Slide 60: DS Core Target State: Achieving More with Less
DS Core Target State: Achieving More with Less Dentists’ revenue challenge: Dentists’ efficiency challenges: only ~30% of treatment plans realized(1) staffing, reimbursements, increasing costs(2) More with Less Milling workflow See More Less Time up to 30% faster Diagnosis Efficient Workflows (-15 m
Slide 61: Connecting the Industry's Largest Installed Base as Foundation for Digital Leadership
Connecting the Industry’s Largest Installed Base as Foundation for Digital Leadership ▪ Aligners ▪ Implant Services ▪ Lab Services (Restorative) Imaging(1) Intraoral Scanners Mills and 3D Printers Treatment Centers DS Installed Base 175,000+ 60,000+ 30,000+ 110,000+ Usage Data 600,000,000+ 10,000,00
Slide 62: Milling and Printing: Combining Both Technologies in DS Core
Milling and Printing: Combining Both Technologies in DS Core Attractive incremental revenue Through DS Core, growing 90% of dentists see both ✓ Milling and Printing by extending access to 3rd party equipment ✓ opportunities with +40% revenue for DS over system lifetime from consumables, accessories
Slide 63: Summary
Summary 1 2 3 4 Connected Technology DS is a leader in DS Core: integrating the Connected digital Solutions are the Connected Technology biggest equipment workflows as basis for backbone of dental Solutions installed base as growth in equipment practice efficiency and (brand, installed base, foundat
Slide 64: Q&A
Q&A Dentsply S Sirona
Slide 65: Break
Break Dentsply S Sirona
Slide 66: Key Opinion Leaders (KOL) Panel Discussion
Key Opinion Leaders (KOL) Panel Discussion November 9, 2023
Slide 67: Panelists
Panelists Lauren Seymour Dr. Shivi Gupta Dr. Meena Barsoum VP of Sales, California Clinical Leader, Resident Illinois Clinical Leader and North America Faculty with CDOCS & international recognized technology educator; Commercial lecturer with more than 19 years of CAD/CAM & 3D CBCT user since 2010
Slide 68: Break
Break Dentsply S Sirona
Slide 69: Commercial Excellence Panel Discussion
Commercial Excellence Panel Discussion November 9, 2023
Slide 70: Panelists
Panelists Andrea Frohning Andrew Robinson Gerry Campbell Bruce Peatey SVP, Chief Human SVP, GVP, GVP, Resources Officer North America RCO EMEA RCO APAC RCO 70
Slide 71: Break
Break Dentsply S Sirona
Slide 72: Enhancing Performance Through Global Supply Chain Transformation
Enhancing Performance Through Global Supply Chain Transformation Tony Johnson Senior Vice President, Chief Supply Chain Officer November 9, 2023
Slide 73: Key Messages
Key Messages Optimizing our manufacturing and distribution network to operate more efficiently, cost effectively and profitably Building a long-term strategic manufacturing and distribution network roadmap Driving tangible improvements through more efficient and standardized Global Supply Chain (GSC
Slide 74: Global Supply Chain Alignment to DS Strategic Objectives
Global Supply Chain Alignment to DS Strategic Objectives Strategic Objective Global Supply Chain Alignment Achieve Annual Growth ▪ Back-order levels and make-to-order product lead times at targeted levels & Margin Commitments ▪ Achieving 2023 cost savings commitments Enhance & Sustain ▪ Partnering w
Slide 75: Current Supply Chain Network
Current Supply Chain Network 29 Manufacturing Sites in 14 Countries 73 Distribution Sites in 30 Countries Americas EMEA APAC Americas EMEA APAC 12 Sites 14 Sites 3 Sites 17 Sites 29 Sites 27 Sites Europe Europe USA / Canada USA Japan Japan 11 China 25 China 9 India 1 1 10 India 3 3 Middle East 3 1 M
Slide 76: Near-Term Network Optimization
Near-Term Network Optimization Desired Outcomes ✓ Simplify network and product flows ✓ Reduce lead times and improve sustainability ✓ Reduce total delivered cost and inventory Non-Negotiables Safety and Quality Product Fulfillment Regulatory Compliance Approach Execution ▪ Dedicated cross-functional
Slide 77: Significant Opportunities for Current Plan and Beyond
Significant Opportunities for Current Plan and Beyond Strategic Planning Process Underway ✓ Unlock value in our manufacturing and distribution network ✓ Reduced costs and inventory levels, while shortening lead times and reducing GHG impact Manufacturing Goals Distribution Goals 1. Continued Site Co
Slide 78: Standardize and Leverage GSC Business Processes
Standardize and Leverage GSC Business Processes Planning and Procurement Goals Engineering and Operational Excellence Goals ▪ Drive improved forecast accuracy through ▪ Centralized resources driving standardized technology and process processes and best practice across GSC ▪ Reduce Days of Inventory
Slide 79: Building Cross Functional Partnerships – GSC + QARA + R&D
Building Cross Functional Partnerships – GSC + QARA + R&D Culture Organization Process ▪ Shifting from siloed ▪ GSC / QARA fully aligned ▪ Embedding GSC + QARA approach in GSC, QARA direct staff to GBU model earlier in New Product and R&D ▪ Structuring to enhance Development process ▪ Defining joint
Slide 80: Summary
Summary 1 2 3 4 Delivering tangible Developing further cost Unlocking Partnering cross near-term results reductions through organizational capacity functionally to through early additional mfg and and efficiency through accelerate growth and transformation actions distribution footprint business pra
Slide 81: Financial Review
Financial Review Glenn Coleman Executive Vice President, Chief Financial Officer November 9, 2023
Slide 82: Key Messages
Key Messages Clear strategy to deliver above market sales growth fueled by innovation and disciplined execution Confident in path to $3.00 adjusted EPS target by 2026 Double-digit adjusted EPS growth expected in 2024 Increased capital deployment with a plan to return ~75% of free cash flow to shareh
Slide 83: Initial 2024 Projections
Initial 2024 Projections 2023 2024 Current Outlook ▪ Double-digit adj. (as of 3Q23 Earnings Call) EPS growth expected in ‘24 Sales $3.90B – $3.94B ▪ Adj. EBITDA margin +100 bps vs. 2023 ▪ Commercial Organic Growth ~1% investments in DSOs, implants and aligners deliver returns Adj. EBITDA Margin >17%
Slide 84: Enabling Performance and Driving Margin Improvement
Enabling Performance and Driving Margin Improvement Where We Were Where We Are Going (‘24 – ‘26) ▪ Streamlined organization ▪ Siloed, inefficient organization ▪ On track to deliver $200M+ in annualized savings ▪ ~30K SKUs in Endodontics/Restorative ▪ ~12K SKUs, ~60% reduction evaluated for SKU optim
Slide 85: ERP Transformation
ERP Transformation Success Factors Benefits ▪ Leverage best practices for limited risk Improved customer experience – Not complete overhaul; ~40% of revenue already flows through next-gen platform ▪ Minimize customization Informed decision making – Robust design blueprint to reduce complexity – Glob
Slide 86: 3-Year Financial Targets
3-Year Financial Targets Key Enablers Metric 3-Year Targets Organic sales growth in-line Organic Growth CAGR 4% – 6%(1) or above market Adj. EBITDA Margin +500 bps Return on growth investments Adj. EPS Target $3.00 in 2026 Winning portfolio FCF Conversion ~100% Transformation initiatives Key Assumpt
Slide 87: Achieve 4% to 6% Organic Sales Growth
Achieve 4% to 6% Organic Sales Growth $4.4B – $4.7B Key Enablers Regular cadence of new product launches +4% - 6% Above market aligner growth ~$3.9B CAGR Implants return to market growth Leveraging DS Core and connected digital installed base Focus on commercial and 2023E Sales Orthodontic and Conne
Slide 88: Multiple Levers Drive Margin Expansion
Multiple Levers Drive Margin Expansion Adj. EBITDA Margin Key Enablers >22% Increased volume leverage +500 bps Efficiency and improved >17% execution Fewer SKUs and a more efficient mfg. footprint ERP transformation 2023E Organic Restructuring Global Aligners ERP 2026E Growth Savings Operations Prof
Slide 89: Building Blocks to $3.00 Adj. EPS Target
Building Blocks to $3.00 Adj. EPS Target ~$0.15 $3.00 ~$0.05 ~$0.05 ~$0.20 Share buyback; SG&A reduction Byte customer net investment in ‘26 ~$0.30 conversion and hedge income lower financing Supply Chain costs Offset by Transformation higher tax rate $0.40 - $0.45 SKU Optimization Run-rate savings
Slide 90: Enhancing Free Cash Flow
Enhancing Free Cash Flow Long-Term Free Cash Flow Key Drivers $700M Free Cash Flow Conversion $600M+ 2023 restructuring $600M cash outlays $500M Improved profitability $400M $368M $300M 100% Working capital optimization; 81% 60% - 70% improve DIOH by 15 days ~$150M $200M $100M ~40% Prioritizing high
Slide 91: Disciplined Capital Allocation Strategy
Disciplined Capital Allocation Strategy Capital Deployed 2021 – 2023E Go Forward Priorities Reinvest for Growth and Efficiency (Capital Expenditures) Dividends Capital ▪ High-return projects; ERP modernization Expenditures ▪ Network and SKU simplification shifts from maintenance to growth capex Purs
Slide 92: M&A Framework
M&A Framework 1 2 3 Financial Fit Strategic Fit Feasibility Fit ▪ Accretive sales growth and ▪ Addresses customer and ▪ Internal capabilities margin rates market needs ▪ Location ▪ Accretive to EPS within ▪ Capabilities enhancement 2 years ▪ Competitive advantage ▪ Strengthens / ▪ ROIC > XRAY cost o
Slide 93: Increasing Return of Cash to Shareholders
Increasing Return of Cash to Shareholders Annual Dividends Diluted Per Share Share Count Dividends $0.56 ▪ Expect dividend growth in-line with earnings 220 growth through 2026E $0.50 216 ▪ 12% dividend increase announced in 1Q23 $0.43 ~213 ▪ Attractive payout ratio relative to peers Share Repurchase
Slide 94: Delivering Profitable Growth...
Delivering Profitable Growth… Well-Positioned in an Roadmap to Accelerate Disciplined Attractive Industry Profitable Growth Capital Allocation ▪ Broad portfolio >45% ▪ Delivering a regular cadence of new ▪ Healthy balance sheet and strong digitally-connected products launches cash flow generation ▪
Slide 95: Q&A
Q&A Dentsply S Sirona
Slide 96: Closing Remarks
Closing Remarks November 9, 2023
Slide 97: Creating Value for Shareholders
Creating Value for Shareholders 1 Dental is an attractive industry with DS well-positioned for profitable growth by executing on clear strategy 2 Transformation plans will shape a more durable, nimble and faster growing business over the long-term 3 Winning portfolio with sustainable competitive adv
Slide 98: Appendix
Appendix Dentsply S Sirona
Slide 99: Non-GAAP Measures Definitions
Non-GAAP Measures Definitions Organic Sales Adjusted Gross Profit The Company defines "organic sales" as the reported net sales adjusted for: (1) net sales from acquired Adjusted gross profit is computed by excluding from gross profit the impact any of the above adjustments that businesses recorded
Slide 100: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted Free Cash Flow Conversion (unaudited) A reconciliation of adjusted free cash flow conversion for the year ended December 31, 2022, is as follows: (in millions, except percentages) 2022 Net cash provided by operating activities $517 Capital Expen
Slide 101: Speaker & Leadership Bios
Speaker & Leadership Bios
Slide 102: Speakers & Leadership Team
Speakers & Leadership Team Simon Campion joined Dentsply Sirona as President and Chief Executive Officer as well as a member of the Board of Directors in September 2022. Mr. Campion previously served as Executive Vice President & President of the Interventional and Medical segments at BD (Becton, Di
Slide 103: Speakers & Leadership Team
Speakers & Leadership Team Andreas Frank serves as EVP, Chief Business Officer at Dentsply Sirona. Mr. Frank, who joined the company in April 2022, is a seasoned executive with broad background in driving business and portfolio growth, developing talent and strategic deployment and execution. He joi
Slide 104: Speakers & Leadership Team
Speakers & Leadership Team Tony Johnson is the Chief Supply Chain Officer of Dentsply Sirona. Before joining Dentsply Sirona in November 2022, Mr. Johnson served as the President of Global Products and Supply Chain at Cardinal Health where he led upstream product marketing, research and development,
Slide 105: Speakers & Leadership Team
Speakers & Leadership Team Andrea Frohning joined Dentsply Sirona as Senior Vice President, Chief Human Resources Officer in July 2023. She has over twenty-five years of experience in diverse business environments and industries including consumer products, industrial manufacturing, healthcare, dist
Slide 106: Speakers & Leadership Team
Speakers & Leadership Team Bruce Peatey is the Group Vice President for the Asia Pacific (APAC) RCO, leading Japan, China, Hong Kong, Taiwan, South Korea, Australia, New Zealand, Philippines, Southeast Asia, and India. Mr. Peatey joined Dentsply Sirona in 2022 and brings more than 25 years of experi
Slide 107: Speakers & Leadership Team
Speakers & Leadership Team Rich Rosenzweig is the Senior Vice President, Corporate Development, General Counsel and Secretary of the Company and he serves as a member of the company’s Management Committee. Most recently, he served as Senior Vice President, General Counsel & Secretary at AngioDynamic
Slide 108: Speakers & Leadership Team
Speakers & Leadership Team Rodrigo Canelhas joined Dentsply Sirona in 2010 where he currently serves as Group Vice President for the LATAM RCO, including 20 countries. Mr. Canelhas boasts a 24-year career in management roles in startups and leading multinationals from the health care, consumer goods
Slide 109: Speakers & Leadership Team
Speakers & Leadership Team Andrea Daley is the Vice President, Investor Relations for Dentsply Sirona. Ms. Daley joined Dentsply Sirona in 2021 and brings nearly 20 years of healthcare industry and corporate finance experience to her current role. Before joining Dentsply Sirona, she worked at McKess
Slide 110: Key Opinion Leaders
Key Opinion Leaders Dr. Shivi Gupta owns a practice in San Diego, California that is focused on CAD / CAM and CBCT technology. She completed advanced education in general dentistry residency at The University of Texas Health Science Center in San Antonio and graduated from dental school at the Unive