Solventum Corp (SOLV) 2024 Q3 法說會逐字稿

Good afternoon. My name is Amy, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Solventum third quarter 2024 earnings call. As a reminder, this conference is being recorded. (Operator Instructions)

午安.我叫艾米，今天我將擔任你們的會議操作員。此時，我謹歡迎大家參加 Solventum 2024 年第三季財報電話會議。提醒一下，本次會議正在錄製中。 （操作員說明）

I would now like to turn the program over to your host for today's conference, Kevin Moran, Senior Vice President of Investor Relations. Please proceed.

現在，我想將會議議程交給今天會議的東道主，投資者關係高級副總裁凱文·莫蘭 (Kevin Moran)。請繼續。

Good afternoon, and welcome. Today, we will discuss Solventum's third quarter fiscal 2024 results, along with an update to our 2024 outlook. Just after market close today, a press release was issued with our earnings results and updated outlook. The press release and earnings presentation are available on the Investors section of the Solventum website.

下午好，歡迎光臨。今天，我們將討論 Solventum 2024 財年第三季業績，以及我們 2024 年展望的最新情況。今天收盤後，我們發布了一份新聞稿，介紹了我們的獲利結果和更新的前景。新聞稿和收益報告可在 Solventum 網站的投資者部分取得。

Joining me today are Bryan Hanson, our Chief Executive Officer; and Wayde McMillan, our Chief Financial Officer. During the call, we will be making forward-looking statements that are subject to risks and uncertainties. For a full description of these risks and uncertainties, please refer to our SEC filings and the forward-looking statement slide at the beginning of our presentation.

今天加入我的是我們的執行長 Bryan Hanson；以及我們的財務長 Wayde McMillan。在電話會議期間，我們將做出具有風險和不確定性的前瞻性聲明。有關這些風險和不確定性的完整描述，請參閱我們向 SEC 提交的文件以及簡報開頭的前瞻性聲明幻燈片。

Please note that during our discussion, our comments will all be on a non-GAAP basis, unless they are specifically called out as GAAP. GAAP to non-GAAP reconciliations for all relevant periods can be found in the schedules attached to our press release. For the Q&A portion of today's call, we kindly ask that you limit yourself to one question and one follow-up.

請注意，在我們的討論中，我們的評論都將基於非公認會計原則（non-GAAP），除非特別指出為公認會計原則（GAAP）。所有相關期間的 GAAP 與非 GAAP 調整表可在我們新聞稿所附的時間表中找到。對於今天電話會議的問答部分，我們懇請您將自己限制在一個問題和一個後續行動上。

And with that, I'll hand the call over to Bryan.

接下來，我會將電話轉交給布萊恩。

All right. Great. Thanks, Kevin, and thanks to everyone for joining us for the call today. Hard to believe, but we've already completed our second quarter as an independent company. And I'd tell you that I'm increasingly encouraged by the progress our team is making against our phased approach to transform this business. And just as a reminder, for those that might be new to the story, we look at transformation in Solventum in two ways. The first one is the turnaround of our business performance; and the second is just obviously standing Solventum up as an independent company. Both of these vectors provide a real opportunity to drive shareholder value.

好的。偉大的。謝謝凱文，也謝謝大家今天加入我們的電話會議。難以置信，但我們作為一家獨立公司已經完成了第二季的工作。我想告訴你，我們的團隊在分階段實施業務轉型方法方面所取得的進展讓我越來越受到鼓舞。提醒一下，對於那些可能不熟悉這個故事的人，我們以兩種方式看待 Solventum 的轉變。第一個是我們經營業績的改善；第二個顯然是讓 Solventum 成為獨立公司。這兩個載體都提供了推動股東價值的真正機會。

And then looking at the quarter, Q3 is yet another data point that speaks to the team's overall progress in this transformation and the success of our business continuity efforts, which we clearly see as being reflected in both the performance in the quarter and our ability to raise our full year guidance for the second consecutive quarter.

然後看看本季度，第三季度是另一個數據點，它說明了團隊在這一轉型中的整體進展以及我們業務連續性工作的成功，我們清楚地看到這反映在本季度的業績和我們的能力中。

We saw positive top line growth in Q3 despite a challenging year-over-year comparison. And as a result, as I just referenced, we're raising our full year organic growth rate to the upper half of our prior guidance of flat to 1%, and we're increasing our adjusted EPS and free cash flow guidance ranges as well.

儘管同比比較充滿挑戰，但我們在第三季度看到了收入的積極增長。因此，正如我剛才提到的，我們將全年有機成長率提高到先前指引值的上半部（持平至 1%），我們還將調整調整後每股盈餘和自由現金流指引範圍。

We saw operating margins improve sequentially, benefiting from some one-time items that helped offset the known incremental headwind from the 3M supply agreement markups and following our disciplined capital allocation strategy, we paid down $200 million of debt during the quarter. This should clearly show that we are committed to maintaining our investment-grade rating and prioritizing debt paydown.

我們看到營業利潤率連續改善，受益於一些一次性項目，這些項目幫助抵消了3M 供應協議加價帶來的已知增量阻力，並且按照我們嚴格的資本配置策略，我們在本季度償還了2億美元的債務。這應該清楚地表明我們致力於維持我們的投資等級並優先償還債務。

When thinking about our progress to date, I'm just incredibly proud of our teams for their continued and steady performance, especially as they continue to work through separation-related activities and challenges. And I want to make sure that I take a minute to say thank you really to all the solvers that I know are listening out there today. It is your continued focus on working through the separation, maintaining business continuity and most importantly, as we always talk about, delivering for our customers. It is greatly appreciated, it is a clear testament to your resolve to move our mission forward.

當想到我們迄今為止的進展時，我為我們的團隊持續穩定的表現感到無比自豪，特別是當他們繼續努力應對與離職相關的活動和挑戰時。我想確保我花一分鐘時間向我認識的所有今天在場聆聽的解題者表示衷心的感謝。您將繼續專注於完成分離、保持業務連續性，最重要的是，正如我們一直在談論的那樣，為我們的客戶提供服務。我們非常感激，這清楚地證明了您推動我們使命前進的決心。

Okay. Moving from Q3. I'd also like to give an update on our phased approach to stabilizing and separating the business, repositioning us for profitable growth and optimizing the portfolio.

好的。從第三季開始。我還想介紹一下我們穩定和分離業務、重新定位以實現盈利成長和優化投資組合的分階段方法的最新情況。

I'll start with Phase 1. And Phase 1 really is just firmly taken hold as we've made significant progress on our mission, talent, culture and structure as well as separation activities, all of which are critical and I would actually say foundational for driving business growth. It's hard to believe, again, but it's been seven months since the spin and our culture is rapidly taking shape, our new leaders continue to gel as a team, learn and assess the business and finalize our go-forward strategy. And the energy across the organization remains high with tangible excitement as I travel around the world for our new mission at Solventum.

我將從第一階段開始。的以推動業務成長。再次令人難以置信的是，自重組以來已經過去了七個月，我們的文化正在迅速形成，我們的新領導者繼續凝聚為一個團隊，學習和評估業務並最終確定我們的前進策略。當我為了 Solventum 的新使命而環遊世界時，整個組織仍然充滿活力和興奮。

We also continue to advance our planning for the Solventum way restructuring project. This project is focused on creating a more flexible, more decentralized structure that ultimately will complement our culture shift, and it will focus on allowing us to create headroom to invest for growth while also concentrating on margins.

我們也繼續推進 Solventum 方式重組專案的規劃。這個計畫的重點是創造一個更靈活、更分散的結構，最終將補充我們的文化轉變，並將重點讓我們創造投資成長的空間，同時也專注於利潤。

As we finalize the plan, we're going to provide more context to the project and also obviously includes some expected financial impacts. Given our progress to date, our current project cadence, we are on track to complete the largest majority of Phase 1 activities within our original 12 to 24 month timeline. Just overall, I'd say in this area, I'm really encouraged by our progress, and I'm impressed with the team's ability to manage through the challenges and keep us on track.

當我們最終確定計劃時，我們將為該項目提供更多背景信息，並且顯然還包括一些預期的財務影響。鑑於我們迄今為止的進展和當前的專案節奏，我們預計在最初的 12 至 24 個月的時間表內完成第一階段的大部分活動。總的來說，我想說，在這方面，我們的進步讓我深受鼓舞，我們的團隊應對挑戰並讓我們走上正軌的能力給我留下了深刻的印象。

Okay. Let's move to Phase 2. As we've referenced in the past, Phase 2 is focused on a long-range plan that will unlock the profitable growth potential of our business, just really ensuring we take full advantage of the attractive markets that we play in. And as a reminder, because we were able to accelerate talent acquisition in Phase 1, we've been able to compress the timeline in Phase 2, now enabling us to share both our long-range plan and our 2025 guidance during the fourth quarter earnings call that we have coming up in February.

好的。讓我們進入第二階段。 ，由於我們能夠在第一階段加速人才招聘，因此我們能夠壓縮第二階段的時間表，現在使我們能夠在第四階段分享我們的長期計劃和2025 年指導我們將在二月份召開季度財報電話會議。

And as a reminder, some of the elements of the plan will be, first and foremost, our primary market and submarket selection, again, those markets in submarkets where we will concentrate our efforts on a go-forward basis. And as you would expect, the market selection in this process has biased towards those markets that are faster growth, markets where we have an ability to win and markets that have relative profitability benefits versus our other markets. Inside of these markets, we're also going to be selecting our growth driver initiatives and those will be intended to drive scale and share in these attractive areas.

提醒一下，該計劃的一些要素首先是我們的一級市場和子市場選擇，再次是我們將在未來集中精力的子市場中的那些市場。正如你所預料的那樣，這個過程中的市場選擇偏向於那些成長較快的市場、我們有能力獲勝的市場以及與我們其他市場相比具有相對獲利優勢的市場。在這些市場內部，我們還將選擇我們的成長驅動計劃，這些計劃旨在擴大這些有吸引力的領域的規模和份額。

And I would just say that we continue to make solid progress, and we remain on track to finalize these decisions before the end of the year. And this is critical because final decisions here will facilitate the shifting of our commercial, R&D and eventually M&A resources to these growth driver areas and this disciplined focus will help us improve the vitality index and the overall innovation of our businesses, which is a key variable in accelerating our growth. Now that said, even before this shift occurs, we do have some recent product launches that are absolutely worth mentioning.

我只想說，我們繼續取得紮實進展，並且我們仍然有望在年底前完成這些決定。這一點至關重要，因為這裡的最終決策將促進我們的商業、研發和最終併購資源向這些成長驅動領域的轉移，而這種嚴格的重點將幫助我們提高活力指數和業務的整體創新，這是一個關鍵變數加速我們的成長。話雖如此，即使在這種轉變發生之前，我們最近也確實推出了一些絕對值得一提的產品。

Let's just start with MedSurg. In the quarter, we officially launched in the V.A.C. Peel and Place dressing that we've been talking about. This product gives us three advantages. The first is simplifying the procedure. The second is reducing procedure time; and the third is reducing the number of dressing changes per week. All of these combined give us the opportunity to reach a broader set of patients across multiple sites of care. And I would say out of the gate, the very positive early response we're getting from customers has us focus now on increasing capacity of this product and orienting our commercial structure to drive adoption.

讓我們從 MedSurg 開始。本季度，我們正式在 V.A.C. 推出。我們一直在談論的剝離和放置敷料。該產品為我們帶來了三個優勢。一是簡化程序。二是減少手術時間；第三是減少每週換藥的次數。所有這些結合起來使我們有機會接觸多個護理地點的更廣泛的患者。我想說的是，我們從客戶那裡得到的非常積極的早期反應讓我們現在專注於提高該產品的容量並調整我們的商業結構以推動採用。

Okay. Moving to our dental solutions business, we launched the Clinpro Clear Fluoride Treatment, which we believe, and I would tell you, early customer response would indicate, it is a meaningful advancement in fluoride treatment technology. Clinpro is focused on making the fluoride application process simpler for the caregiver, first and foremost, and then improving the experience for the patients. And again, early customer response is positive and would indicate that the product is delivering on its intended outcome.

好的。轉向我們的牙科解決方案業務，我們推出了 Clinpro Clear 氟化物治療，我們相信，而且我想告訴您，早期的客戶反應表明，這是氟化物治療技術的一項有意義的進步。 Clinpro 的重點是讓護理人員的氟化物應用過程變得更簡單，然後改善患者的體驗。同樣，早期的客戶反應是正面的，這表明該產品正在實現其預期結果。

In our health information systems business in collaboration with Sift Healthcare, we recently introduced a new AI-driven payment integrity solution that we're calling the Solventum Revenue Integrity system. This focuses on improving our customers' reimbursement leakage by predicting reimbursement pretty much at every step of the patient journey, and it's intended to not only reduce denials but potentially prevent them all together, really helping our customers ensure that they get the timely and accurate payer reimbursement that they deserve.

在我們的健康資訊系統業務中，我們與 Sift Healthcare 合作，最近推出了新的人工智慧驅動的支付完整性解決方案，我們稱之為 Solventum Revenue Integrity 系統。其重點是透過在患者旅程的每一步預測報銷來改善客戶的報銷洩漏，其目的不僅是減少拒絕，而且有可能共同防止拒絕，真正幫助我們的客戶確保他們獲得及時、準確的付款人他們應得的回報。

All right. And finally, in our purification and filtration business, we recently launched a new product in our Harvest RC family. And this latest addition is focused on improving our customers' manufacturing process. By streamlining time, by streamlining cost of producing, reducing risk during scaling and boosting overall productivity with a clear goal of helping companies bring therapies to market more quickly and with less risk.

好的。最後，在我們的淨化和過濾業務中，我們最近在 Harvest RC 系列中推出了一款新產品。這項最新功能的重點是改善客戶的製造流程。透過簡化時間、精簡生產成本、降低規模擴大過程中的風險並提高整體生產力，其明確目標是幫助公司更快、更小風險地將療法推向市場。

Now these recent launches are encouraging. There's no question. Now they may take a little time to deliver measurable results, but they are just the tip of the spear when it comes to a refocused R&D effort that will begin in earnest and during 2025, again, aligning with the selection of our growth driver areas.

現在，最近推出的這些產品令人鼓舞。毫無疑問。現在，他們可能需要一點時間才能提供可衡量的結果，但對於重新調整研發工作重點而言，它們只是矛尖，該工作將在 2025 年認真開始，再次與我們的成長驅動領域的選擇保持一致。

Okay. So let's move on to Phase 3, our portfolio optimization phase. As I've shared previously, we have been actively assessing the value contribution and the strategic alignment of our markets and businesses. This work has been well underway since announcing our three phased plan back at our Investor Day in March. We continue to make progress against this effort. And at the right time, we will discuss Phase 3 in more detail.

好的。那麼讓我們進入第三階段，也就是我們的投資組合最佳化階段。正如我之前所分享的，我們一直在積極評估我們的市場和業務的價值貢獻以及策略調整。自從三月的投資者日宣布我們的三階段計劃以來，這項工作一直在順利進行。我們在這項努力中不斷取得進展。在適當的時候，我們將更詳細地討論第三階段。

I think it's important to reiterate on these phases that all phases are not sequential. They are running concurrently. So parts may be in execution mode, parts may be in planning mode, but all are moving forward at one-time.

我認為重要的是要在這些階段上重申，所有階段都不是連續的。它們同時運作。因此，部分可能處於執行模式，部分可能處於計劃模式，但所有部分都同時向前推進。

Okay. To close my section out, I'd just like to say that while we are clearly off to a solid start, it is not lost on us that revenue growth remains below market. As we've said, this performance turnaround will take time, but rest assured, we are moving with urgency while also being thoughtful and strategic about building and investing for the long-term. We have an incredible opportunity ahead of us and by focusing on the right areas with the appropriate investments, we are setting the foundation for growth acceleration and ultimately, significant value creation.

好的。最後，我想說的是，雖然我們顯然已經有了一個好的開端，但我們並沒有忘記收入成長仍然低於市場水平。正如我們所說，這種業績轉變需要時間，但請放心，我們正在緊急行動，同時對長期建設和投資也採取深思熟慮和策略性的態度。我們面前有一個難以置信的機會，透過專注於正確的領域並進行適當的投資，我們正在為加速成長並最終創造顯著的價值奠定基礎。

Okay. With that, I'm going to turn it over to Wayde. Wayde?

好的。有了這個，我要把它交給韋德。韋德？

Thanks, Bryan, and thanks to everyone at Solventum for the extra effort to separate from 3M and position us to report a strong second quarter as a public company. As you heard from Bryan, we are tracking to our separation and execution plans across all three phases. I'll focus on updates related to Phase 1 before getting into Q3 financial performance and then wrapping up with guidance.

謝謝 Bryan，也感謝 Solventum 的每個人為與 3M 分離而付出的額外努力，使我們能夠作為一家上市公司報告強勁的第二季度業績。正如您從布萊恩那裡聽到的，我們正在追蹤所有三個階段的分離和執行計劃。在進入第三季的財務表現之前，我將重點放在與第一階段相關的更新，然後以指導結束。

We're continuing to advance our separation efforts. This includes our manufacturing strategy and site selection for our new manufacturing facilities as well as transitioning to our stand-alone distribution centers. We have also made good progress to advance our product licenses and rebranding transitions. We have changed our commercial distribution models in over 60 countries, created structure and hired staff all ahead of schedule.

我們正在繼續推進分離工作。這包括我們的製造策略和新製造設施的選址以及向獨立配送中心的過渡。我們在推動產品授權和品牌重塑轉型方面也取得了良好進展。我們提前改變了在 60 多個國家的商業分銷模式、創建結構並僱用員工。

Shifting to IT. We have implemented new ERP systems in four countries and will continue to roll out globally over the next couple of years. Overall, it's great to see these early successes and our team's resilience as we manage through this complex separation from 3M.

轉向 IT。我們已在四個國家實施了新的 ERP 系統，並將在未來幾年內繼續在全球推廣。總的來說，很高興看到這些早期的成功以及我們團隊在與 3M 的複雜分離過程中所表現出的韌性。

Turning now to our Q3 results starting with sales. For the third quarter of 2024, sales of $2.1 billion increased 30 basis points compared to the prior year on an organic basis, with reported growth increasing 40 basis points slightly ahead of expectations due to some order timing in the US. During the quarter, foreign exchange was approximately neutral. Price was flat for the quarter as we have now normalized from 2023 actions and volume was slightly favorable. From a year-over-year growth perspective, recall that Q3 had a tough comparison.

現在轉向我們的第三季業績，從銷售額開始。 2024 年第三季度，銷售額為 21 億美元，與前一年相比有機增長 30 個基點，由於美國的一些訂單時間，報告的增長略高於預期 40 個基點。本季外匯匯率大致呈中性。本季價格持平，因為我們現在已經從 2023 年的行動中恢復正常，而且成交量略有有利。從年成長的角度來看，第三季的比較很艱難。

Moving to the segments. Our largest segment, MedSurg, delivered $1.2 billion of sales, an increase of 1% on an organic basis. Within infection prevention and surgical solutions, we saw continued adoption of our antimicrobial IV site management solutions with the growth of Tegaderm IV dressing. Sales growth also benefited from continued positive trends in OEM products. Performance in these areas was partially offset by negative pressure wound therapy.

轉向細分市場。我們最大的細分市場 MedSurg 實現了 12 億美元的銷售額，有機成長了 1%。在感染預防和手術解決方案中，隨著 Tegaderm IV 敷料的發展，我們的抗菌靜脈注射部位管理解決方案持續採用。銷售成長也受益於 OEM 產品的持續正面趨勢。這些領域的表現被負壓傷口治療部分抵消。

Our Dental segment delivered $313 million of revenue, a decrease of 3.9%. This decline reflects challenging market conditions and the fact that this segment faced the toughest year-over-year comparison among all four segments. Our health information systems segment contributed $326 million of revenue, an increase of 1.5%, which benefited from growth of our revenue cycle management platform, 360 Encompass. Strength in revenue cycle management was partially offset by declines in Performance Management Solutions and continued headwinds in clinician productivity solutions.

我們的牙科部門實現收入 3.13 億美元，下降 3.9%。這一下降反映了充滿挑戰的市場環境，以及該細分市場在所有四個細分市場中面臨最嚴峻的同比比較的事實。我們的健康資訊系統部門貢獻了 3.26 億美元的收入，成長了 1.5%，這得益於我們的收入週期管理平台 360 Encompass 的成長。收入週期管理的優勢部分被績效管理解決方案的下降和臨床醫生生產力解決方案的持續不利因素所抵消。

Finally, the purification and filtration segment delivered $238 million of sales, a decline of 0.3%, which was impacted by declines in drinking water filtration and dialysis membranes, partially offset by better-than-expected strength in bioprocessing filtration and newly expanded capacity in industrial filtration.

最後，淨化和過濾部門的銷售額為2.38 億美元，下降了0.3%，這是受到飲用水過濾和透析膜業務下降的影響，但部分被生物加工過濾業務好於預期的實力和工業領域新擴大的產能所抵銷。

Looking down the P&L, gross margins were 57.3% in the quarter, ahead of our expectations and down 100 basis points versus prior year. On a sequential basis, gross margins increased 180 basis points. This included approximately 100 basis points of one-time benefits, which offset the impact of the 3M supply agreement markup.

從損益表來看，本季毛利率為 57.3%，超出我們的預期，比去年同期下降 100 個基點。毛利率季增 180 個基點。其中包括約 100 個基點的一次性收益，抵銷了 3M 供應協議加價的影響。

We anticipate some of this onetime benefit will partially reverse in Q4. As expected, operating expenses increased versus the prior year. When excluding the impact of approximately $30 million of discrete items in Q2 2024, operating expenses in Q3 also increased sequentially. As we have shared before, the added spend reflects public company stand-up costs and growth investments to support our business transformation.

我們預計這種一次性收益的一部分將在第四季度部分逆轉。正如預期，營運費用較上年增加。在排除 2024 年第二季約 3,000 萬美元離散專案的影響後，第三季的營運支出也較上季增加。正如我們之前分享的，增加的支出反映了上市公司的維持成本和支持我們業務轉型的成長投資。

We expect the magnitude of the increase in Q4 to be similar sequentially to what was seen in Q3 off the normalized Q2. In total, we delivered adjusted operating income of $475 million, which translates to operating margin of 22.8% ahead of expectations given both sales and the one-time benefits in gross margin.

我們預計第四季的成長幅度將與標準化第二季的第三季相似。總的來說，我們實現了 4.75 億美元的調整後營業收入，考慮到銷售額和毛利率的一次性收益，這意味著營業利潤率達到 22.8%，超出預期。

Moving down the P&L to nonoperating items. Our net interest expense benefited sequentially from a higher cash balance. Lastly, our effective tax rate of 22.4% puts us on track for our full year expected tax rate of 18% to 19%. All in, we delivered earnings per share of $1.64 ahead of our expectations.

將損益表下移至非經營項目。我們的淨利息支出連續受益於現金餘額的增加。最後，我們 22.4% 的有效稅率使我們預計將實現 18% 至 19% 的全年預期稅率。總而言之，我們實現了每股 1.64 美元的收益，超出了我們的預期。

Turning to the balance sheet. We ended the quarter with $772 million in cash and equivalents with no outstanding borrowings on our credit facility. We generated $75 million of free cash flow in Q3, which includes making the first semiannual interest payment, bringing our year-to-date free cash flow total to $712 million.

轉向資產負債表。截至本季末，我們擁有 7.72 億美元的現金及等價物，我們的信貸安排中沒有未償還的借款。我們在第三季產生了 7,500 萬美元的自由現金流，其中包括支付第一筆半年利息，使我們年初至今的自由現金流總額達到 7.12 億美元。

Importantly, we're committed to maintaining our investment-grade rating and given strong year-to-date cash flows, paid down $200 million of our $1.5 billion prepayable term loans earlier than anticipated. We continue to expect debt paydown will remain the priority into fiscal 2026. We maintained strong liquidity and financial position with continued free cash flow generation in addition to our unused $2 billion revolving credit facility.

重要的是，我們致力於維持我們的投資等級評級，並考慮到年初至今強勁的現金流，我們提前償還了 15 億美元的可預付定期貸款中的 2 億美元。我們仍預期債務償還仍將是 2026 財年的首要任務。

Now turning to our 2024 outlook. We expect improved organic sales growth to be in the upper half of our full year guidance range of flat to up 1%. This reflects our performance year-to-date and continued execution of our separation plans. While we are not changing our full year foreign currency impact expectation of approximately 50 basis points unfavorable, given recent rates, we do expect foreign currency to be a headwind in Q4.

現在轉向我們的 2024 年展望。我們預計有機銷售成長的改善將位於全年指引範圍的上半部分，即持平至成長 1%。這反映了我們今年迄今的業績以及我們離職計劃的持續執行。雖然我們不會改變全年外匯影響約 50 個基點的不利預期，但考慮到最近的利率，我們確實預期外匯將成為第四季的阻力。

For earnings per share, we are raising our guidance to $6.50 to $6.65 on our improved sales outlook and stronger Q3 gross margins. We're also raising our free cash flow guidance to a range of $750 million to $850 million to reflect both continued strong cash flow generation and the expectation that capital expenditures will come in toward the lower end of the $400 million to $500 million range we provided earlier this year.

對於每股收益，由於銷售前景改善和第三季毛利率增強，我們將每股收益指引上調至 6.50 至 6.65 美元。我們還將自由現金流指引提高至 7.5 億至 8.5 億美元，以反映持續強勁的現金流生成以及資本支出將接近我們提供的 4 億至 5 億美元範圍下限的預期今年早些時候。

In conclusion, we are off to a solid start as a new public company, delivering two consecutive quarters, a better-than-expected performance, which is encouraging given the complex and highly entangled separation. We're delivering on our near-term financial commitments, executing on our separation activities and focusing on turning around the business, while raising the top and bottom line guidance for the year. Looking ahead, we will continue to execute on our phased approach to transform our business, and we'll use our collective expertise in health, material and data science to deliver our mission. While we know this turnaround will take time and focused investment, we're encouraged by the meaningful progress and remain well positioned to execute our value creation plan.

總而言之，作為一家新的上市公司，我們已經有了一個良好的開端，連續兩個季度的業績好於預期，考慮到復雜且高度糾纏的分離，這是令人鼓舞的。我們正在履行近期財務承諾，執行分拆活動並專注於扭虧為盈，同時提高今年的營收和利潤指引。展望未來，我們將繼續執行分階段的業務轉型方法，並利用我們在健康、材料和數據科學方面的集體專業知識來實現我們的使命。雖然我們知道這一轉變需要時間和集中投資，但我們對有意義的進展感到鼓舞，並保持良好的狀態來執行我們的價值創造計劃。

I'll now hand it back to the operator for the Q&A portion of the call.

我現在將把它交還給接線員以進行通話的問答部分。

(Operator Instructions)

（操作員說明）

Travis Steed, Bank of America.

特拉維斯·斯蒂德，美國銀行。

Everybody. Thanks for the question. I wanted to ask first on the Q4 EPS guidance of $1.22 to $1.37. First, a little bit below the Street, anything to call out there? But really the question is more about what that implies about 2025. If you annualize that at the midpoint, it's around $5.20. Looking at the Street numbers next year, the wide range, $5.30 to $5.80 and just trying to figure out, should we be closer to the lower end of that range, higher end of that range? Just any color so we get models in the right place for 2025 would be helpful.

大家。謝謝你的提問。我想先詢問第四季 EPS 指引值 1.22 美元至 1.37 美元。首先，在街道下面一點，那裡有什麼需要注意的嗎？但實際上，問題更多的是這對 2025 年意味著什麼。看看明年的街道數據，範圍很廣，5.30 美元到 5.80 美元，只是想弄清楚，我們是否應該更接近該範圍的下限，或該範圍的上限？只要是任何顏色，這樣我們就能在 2025 年將模型放在正確的位置，這將會很有幫助。

Travis, it's Wayde. We'll start with the Q4 EPS that you mentioned. So really, what you're talking about is what's driving the decline here from Q3 to Q4. So a few things that we have to keep in mind is we had some timing benefits that we called out in gross margin, which will benefit Q3, and those were onetime in nature, and they'll partially reverse here in Q4. So that's the biggest change and really the biggest impact to Q4.

崔維斯，我是韋德。我們將從您提到的第四季每股收益開始。實際上，您所說的是導致第三季到第四季下降的原因。因此，我們必須記住的一些事情是，我們在毛利率方面有一些時機優勢，這將使第三季度受益，而這些本質上是一次性的，它們將在第四季度部分逆轉。這是最大的變化，也是對第四季影響最大的。

We had favorability -- additional favorability in Q3 that will be a headwind for Q4. And then continued investment -- as we continue to invest in operations and ramp our operating expenses, the -- as we said in our prepared remarks, it will be a similar ramp from Q3 to Q4 as we saw from Q2 normalized to Q3. So both the standup cost of standing up the company as well as our growth investments.

我們有好感度——第三季的額外好感度將成為第四季的阻力。然後繼續投資——隨著我們繼續投資營運並增加營運支出——正如我們在準備好的演講中所說，從第三季到第四季的成長將與我們從第二季正常化到第三季度看到的類似。因此，無論是維持公司的生存成本還是我們的成長投資。

And then we called out as well at this point in time, expecting FX to be a headwind. So those are things that are new to Q4 that have to be contemplated in the Q4 earnings per share. But having said all that, we are also raising our EPS guidance for the full year, given the strength of Q3, even though some of it was onetime in nature. And we're going to give some of that back in Q4 for the year, very happy to be raising our EPS guidance.

然後我們在這個時候也發出了呼籲，預計外匯將成為逆風。因此，這些是第四季度的新內容，必須在第四季度每股收益中考慮。但話雖如此，考慮到第三季的強勁表現，我們也提高了全年每股收益指引，儘管其中一些是一次性的。我們將在今年第四季回饋其中的一部分，很高興能提高我們的每股盈餘指引。

And then you mentioned 2025 as well. We're not guiding to 2025 yet. Certainly, lots of moving pieces as we are in our first year here post separation. We've got a lot going on to grow revenue, expand margins and then the resulting EPS growth over time. I think it's really pretty well understood that 2025 will be pressured by the annualization of some costs post spin. As a reminder, we spun in Q2 of 2024. So we just have this natural annualization in Q1 of 2025.

然後你也提到了2025年。我們還沒有訂定 2025 年的目標。當然，有很多令人感動的事情，因為我們是在分離後在這裡的第一年。我們有很多工作要做，以增加收入、擴大利潤率，並隨著時間的推移實現每股收益的成長。我認為，眾所周知，2025 年將受到分拆後某些成本年化的壓力。提醒一下，我們在 2024 年第二季度進行了旋轉。

And that's going to show up in operating margin in a few areas. We've got the 3M supply markup that impacts COGS. So we'll annualize that in the first half of next year. And then we've got our standup functional expenses, which are ramping this year. We'll annualize those next year. We're making growth investments. Some we've made this year, some will be continue to be made next year.

這將體現在幾個領域的營業利潤率。我們的 3M 供應加價會影響銷貨成本。因此，我們將在明年上半年將其年度化。然後我們的站立職能支出今年正在增加。明年我們將對其進行年度化。我們正在進行成長投資。有些是我們今年做的，有些明年會繼續做。

And then we also have the SKU rationalization program that we're contemplating, Wave 2 and how much of a headwind that could be in the extent of those Wave 2 plants for next year.

然後我們還有正在考慮的 SKU 合理化計畫、第二波以及明年第二波工廠可能面臨的阻力有多大。

And then below the line, we've got things to consider there as well. We've got the annualization of interest expense and then our normalizing tax. And so we certainly got a lot going on to annualize the business into next year. And then as we talked about in prepared remarks, we also have our Solventum way restructuring program, which could give us some tailwind into next year. That program is really designed to do both fund our investments as well as give us some additional margin enhancement. And we'll be putting all of that together into our calculus for 2025. And that will be when we report our Q4 earnings results. We'll give our 2025 guidance.

然後，在線下，我們也有一些需要考慮的事情。我們得到了利息支出的年化率，然後是正常化的稅收。因此，我們肯定會做很多事情來將業務年化到明年。然後，正如我們在準備好的發言中談到的那樣，我們也有 Solventum 方式重組計劃，這可能會為我們明年帶來一些推動力。該計劃的真正目的是為我們的投資提供資金，並為我們提供一些額外的利潤提升。我們將把所有這些匯總到 2025 年的計算中。我們將給予 2025 年的指導。

So having said all that, once we move beyond those items in 2025, we've got a great platform here for which to grow earnings per share and expand margins over-time.

話雖如此，一旦我們在 2025 年超越這些項目，我們就擁有了一個偉大的平台，可以隨著時間的推移增加每股收益並擴大利潤率。

Great, thanks for that. And the follow-up question I have is on how you're thinking about portfolio management and managing the dilution around that. I don't know if you're thinking through. Any updated thoughts on portfolio management would be helpful. Thanks a lot.

太好了，謝謝你。我的後續問題是您如何考慮投資組合管理以及管理相關的稀釋。不知道你思考清楚了嗎？關於投資組合管理的任何最新想法都會有所幫助。多謝。

Sure. I could probably start that one just from a dilution standpoint, we haven't communicated anything in portfolio management yet, so we really can't comment on any dilution at all or how the net impact of any portfolio moves will be. So really no comment there. But I don't know, Bryan, if you just want to talk about our strategy in Phase 3 around portfolio management?

當然。我可能可以從稀釋的角度開始這一點，我們還沒有就投資組合管理進行任何溝通，所以我們真的無法對任何稀釋或任何投資組合變動的淨影響發表評論。所以真的沒有評論。但我不知道，Bryan，您是否只想談談我們在第三階段圍繞投資組合管理的策略？

Yeah. I mean I think we've been pretty front-footed on that all the way going back to March, we've talked about Phase 3 as being portfolio optimization. Obviously, Travis, we wouldn't make those decisions if we didn't think it was good for shareholders. And so we'll look at any dilution and offset that dilution. But just know that we're looking at our businesses from a strategic standpoint, we're looking at the value contribution of those businesses and eventually at some point when we have the right data in front of us, we'll begin to share if there's any changes that we're going to make. But we would be thinking about the financial implications of any change. And certainly, we want to make sure it's good for shareholders.

是的。我的意思是，我認為自三月以來我們一直在這方面處於領先地位，我們已經將第三階段視為投資組合優化。顯然，崔維斯，如果我們認為這對股東沒有好處，我們就不會做出這些決定。因此，我們將關注任何稀釋情況並抵消該稀釋情況。但要知道，我們正在從策略角度看待我們的業務，我們正在考慮這些業務的價值貢獻，最終在某個時候，當我們面前有正確的數據時，我們將開始分享：我們將要做出任何改變。但我們會考慮任何變化的財務影響。當然，我們希望確保這對股東有利。

Patrick Wood, Morgan Stanley.

派崔克‧伍德，摩根士丹利。

I guess the first one, I'm just curious, do you have any updated timeline on the TSAs? And how we're thinking about those rolling off? And how are you thinking about reinvestment as those begin to roll off?

我想是第一個，我只是好奇，你們有關於 TSA 的更新時間表嗎？我們如何看待這些滾動？當這些開始減少時，您如何考慮再投資？

Hey, Patrick, it's Wayde. Yes. So I think the update on the TSAs is really that we're seven months, almost eight months in post spin here, we're making good progress, as we mentioned, in our prepared remarks. But we're also right at the front end of this.

嘿，派崔克，我是韋德。是的。因此，我認為 TSA 的最新情況實際上是，我們已經進行了七個月、幾乎八個月的後期調整，正如我們在準備好的演講中提到的那樣，我們正在取得良好進展。但我們也正處於這方面的前沿。

If you look at the Investor Day presentation that we did back in March, we laid out the four main work streams, 4 main TSAs. And you'll see there that they're in the range of either two to three years, three to three years where we've got the long supply continuity timeline of up to 10 to 12 years. So here we sit in the first year. We don't have any updates on those timelines. I think once we start getting nearer to the two year mark, three year mark, four year marks, that's when we'll be starting to roll off of these different TSAs.

如果你看我們三月所做的投資者日演示，我們列出了四個主要工作流程、4 個主要 TSA。你會看到它們的範圍是兩到三年，三到三年，我們有長達 10 到 12 年的長期供應連續性時間表。所以我們現在正處於第一年。我們沒有關於這些時間表的任何更新。我認為，一旦我們開始接近兩年、三年、四年，我們就會開始取消這些不同的 TSA。

So a lot of work going on within the business. A lot of folks doing just really yeoman's work of trying to separate the business while they do their day-to-day jobs. And as Bryan said in our prepared remarks, we really appreciate all the Solventum employees around the world, taking care of the separation work while they're working through their day-to-day jobs. So a lot to update in the future. But at this point, nothing beyond what we had in the prepared remarks.

因此，企業內部正在進行大量工作。很多人在做日常工作時都在做真正的自耕農工作，試圖將業務分開。正如 Bryan 在我們準備好的演講中所說，我們非常感謝世界各地的所有 Solventum 員工，他們在日常工作中負責分離工作。所以未來還有很多需要更新的地方。但在這一點上，除了我們準備好的發言之外，沒有任何內容。

No, of course. I completely get that. And the follow-up is a little specific, but the traditional negative pressure was a little softer, but disposable was strong. Is that -- to your mind in the market is that a switch out, right? So are we seeing a transition from that more capital equipment reusable sites disposable? Or are they completely separate and disposables gaining traction but it's like something else, I don't know, foam or hydrocolloids that are taking the traditional side. What's going on in that market?

不，當然。我完全明白。而且後續有點具體，就是傳統的負壓稍微柔和一點，但是一次性的很強。在您看來，市場是一種轉變，對嗎？那麼，我們是否會看到更多資本設備可重複使用場所轉變？或者它們是完全獨立的，一次性用品越來越受歡迎，但它就像其他東西一樣，我不知道，泡沫或水膠體正在站在傳統一邊。那個市場發生了什麼事？

Yes. Patrick, thanks for the question. So I would say that there were a couple of things going on with negative pressure wound therapy in the quarter. One that I think is important to note is we had a tough comp -- a tough comp generally speaking in the quarter, but that, in particular, was one that was hit -- one of the hardest in MedSurg so that was part of it. And to answer your question specifically, they are separate. So the Prevena product line, which is our single-use is -- it's a very exciting market, a submarket of negative pressure wound therapy, and that is growing pretty steadily. We're doing well with that product, and we continue to see that kind of traction in Q3, and we expect it to happen beyond as well.

是的。派崔克，謝謝你的提問。所以我想說，本季負壓傷口治療發生了一些事情。我認為值得注意的是，我們有一個艱難的競爭——一般來說，本季度是一個艱難的競爭，但特別是受到了打擊——MedSurg 中最艱難的競爭之一，所以這是其中的一部分。為了具體回答你的問題，它們是分開的。因此，我們的一次性產品 Prevena 產品線是一個非常令人興奮的市場，是負壓傷口治療的一個子市場，並且正在穩步成長。我們在該產品上做得很好，我們在第三季度繼續看到這種吸引力，我們預計它也會在以後發生。

The traditional negative pressure wound therapy is historically slower growth. We do feel like there's real opportunity to unlock growth in that market as well. The Peel and Place product that I referenced in the prepared remarks is one of the mechanisms to do that and the team is pretty excited about that launch.

傳統的負壓傷口療法歷來生長速度較慢。我們確實認為該市場也有真正的機會來實現成長。我在準備好的評論中提到的剝離和放置產品是實現這一目標的機制之一，團隊對這項發布感到非常興奮。

Vik Chopra, Wells Fargo.

維克喬普拉，富國銀行。

Hey, good afternoon and thanks for taking the question. First one for me, I didn't hear an update on the SKU rationalization project. Any update there would be great. And if you can also let us know when we expect to start seeing benefits from this program? And then I had a follow-up, please.

嘿，下午好，感謝您提出問題。首先，我沒有聽到有關 SKU 合理化專案的最新消息。任何更新都會很棒。您是否也可以讓我們知道我們預計何時開始從該計劃中受益？然後我有一個後續行動，請。

Sure. Vik, it's Wayde. So you may recall in last quarter, we mentioned that we had Wave 1 that was launched this year, and we're in the process of executing upon that. And they've got a significant number of SKUs out, over 3,000 SKUs that the team is working on and that will have very little impact on top and bottom line. We're also working on Wave 2, but we don't have any update yet. Teams are just working through that, working through the modeling of it. And Bryan and I will be reviewing that here as we get towards the end of the year and make a decision on what SKU rationalization will look like in 2025.

當然。維克，我是韋德。所以你可能還記得在上個季度，我們提到我們今年推出了第一波，我們正在執行它。他們已經推出了大量的 SKU，團隊正在開發超過 3,000 個 SKU，這對營收和利潤的影響很小。我們也在開發第 2 波，但還沒有任何更新。團隊只是透過它的建模來解決這個問題。臨近年底，Bryan 和我將在此回顧這一點，並就 2025 年 SKU 合理化的情況做出決定。

Okay, thank you. And my follow-up question was on the dental segment. I know you called out tough comps, but you also called out market softness. Just wondering what your expectations are for recovery for the dental market and how you're thinking about growth in 2025?

好的，謝謝。我的後續問題是關於牙科領域的。我知道您指出了競爭激烈，但您也指出了市場疲軟。只是想知道您對牙科市場復甦的期望是什麼以及您如何看待 2025 年的成長？

Yeah. So maybe I'll take a crack at that one. So I can't predict when we're going to see that softness turn. But it is impacting our business, but probably the bigger impact for us again was comps in the dental business. We see softness in the market impacting our business. But given the portfolio that we have and just the procedures that we typically play in that are less elective in nature, we don't usually get as impacted as other players in the dental space. So it's a negative pressure on our business for sure, but not maybe as much as other players in dental.

是的。所以也許我會嘗試一下。所以我無法預測我們什麼時候會看到這種疲軟的轉變。但這正在影響我們的業務，但對我們來說更大的影響可能再次是牙科業務的競爭。我們看到市場疲軟影響了我們的業務。但考慮到我們擁有的產品組合以及我們通常參與的選擇性程度較低的程序，我們通常不會像牙科領域的其他參與者那樣受到影響。因此，這肯定對我們的業務造成負面壓力，但可能不像牙科領域的其他參與者那麼大。

I don't know that I want to speak to when we're going to see that turnaround for us. We're going to focus on what we keep control. And the team is pretty excited about the Clinpro product launch. It doesn't sound that amazing when you talk about fluoride treatment, but it's a pretty amazing innovation in that space, and our customers are seeing it that way. The good news is we got a lot of demand as a result of it. The bad news is we don't have the capacity for it right now. So we're working hard to get capacity in place and support that demand.

我不知道我想在什麼時候看到我們的轉變。我們將專注於我們能控制的事情。該團隊對 Clinpro 產品的發布感到非常興奮。當您談論氟化物處理時，這聽起來並不那麼令人驚奇，但它是該領域的一項相當驚人的創新，我們的客戶也這麼認為。好消息是我們因此得到了許多需求。壞消息是我們現在沒有能力。因此，我們正在努力確保產能到位並支持這項需求。

David Roman, Goldman Sachs.

大衛羅曼，高盛。

Thank you and good afternoon, everybody. Wayde, I was hoping you could maybe unpack a little bit of the drivers in the gross margin line. And specifically, this is a line, obviously, where there are a lot of moving parts. And last quarter, you had some discrete headwinds around international and OEM mix. This quarter, you had some tailwind dynamics. And I believe the full recognition of the 3M supply agreement reflected in there. So as we think about a baseline normalized gross margin, is that 56% and change number a good starting point? And how should we just think about the different moving parts around this line item, whether that's potential SKU rationalization, business mix investments you're making to expand your own supply chain independents, et cetera?

謝謝大家，大家下午好。韋德，我希望你能解開毛利率線中的一些驅動因素。具體來說，顯然這是一條有很多活動部件的生產線。上個季度，國際和 OEM 組合遇到了一些離散的阻力。本季度，您有一些順風順水的動力。而我相信對3M供貨協議的充分認可就體現在其中。那麼，當我們考慮基準標準化毛利率時，56% 和變化數字是一個很好的起點嗎？我們應該如何考慮圍繞該訂單項目的不同移動部分，是否是潛在的 SKU 合理化、您為擴展自己的供應鏈獨立企業而進行的業務組合投資等等？

David, thanks. I'm glad you asked that question because there is a lot of moving pieces on this one. And we took a little extra care to put some additional information in the prepared remarks, but it's always good to talk about it here in Q&A. So I'm glad you brought it up. So just to summarize, we had approximately 100 basis points of onetime benefits here in Q3, and that offset the impact of the 3M supply agreement markup in the quarter.

大衛，謝謝。我很高興你問這個問題，因為這個問題有很多令人感動的內容。我們特別小心地在準備好的評論中添加了一些附加信息，但在問答中討論它總是好的。所以我很高興你提出來。總而言之，我們在第三季度獲得了大約 100 個基點的一次性收益，這抵消了本季 3M 供應協議加價的影響。

We do expect part of that 3M benefit to reverse in Q4, which results in a lower margin in Q4, as you mentioned, and then, as you also mentioned, recall that in Q2, we had some unfavorable higher international cost impacts in gross margin, and that is some of what we saw reverse here in Q3. So if you package all that together, we had some headwinds in Q2 that somewhat reversed in Q3 and then we get a benefit in Q3 that will also be a headwind in Q4.

我們確實預計3M 的部分效益將在第四季度逆轉，這會導致第四季度的利潤率下降，正如您所提到的，然後，正如您也提到的，回想一下，在第二季度，我們對毛利率產生了一些不利的較高國際成本影響，這就是我們在第三季看到的一些逆轉。因此，如果將所有這些整合在一起，我們在第二季度遇到了一些逆風，而這些逆風在第三季度有所逆轉，然後我們在第三季度獲得了收益，這也將成為第四季度的逆風。

So I think one way to think about this, David, would be to take Q2 and Q3 and put them together and then use an assumption for the 3M step-up as well as some of the benefit here. I think what you'll do is come out below -- just below that 56% that you're talking about.

因此，我認為考慮這個問題的一種方法是，David，將 Q2 和 Q3 放在一起，然後使用 3M 升級的假設以及這裡的一些好處。我認為你要做的就是低於你所說的 56%。

That's super helpful. And I appreciate on the portfolio management side but that's a continuously evolving process. But maybe, Bryan, you could help us think through like when you talk about kind of value to the organization. They're sort of like the one way to look at was it's just pure dilution from an EPS perspective. The other way to think about it is how it fits in strategically, whether that's opportunities for cross-divisional product development or commercialization where you have the right to win? Like HIS is a great market, but it may not fit necessarily with the MedSurg business. So help us kind of think about the parameters that you're using to assess the portfolio management decisions?

這非常有幫助。我很欣賞投資組合管理方面，但這是一個不斷發展的過程。但布萊恩，也許你可以幫助我們思考，就像你談論對組織的價值一樣。它們有點像一種看待方式，即從每股收益的角度來看，這只是純粹的稀釋。另一種思考方式是它如何在策略上適應，無論這是跨部門產品開發的機會還是您有權獲勝的商業化機會？就像 HIS 是一個巨大的市場，但它不一定適合 MedSurg 業務。那麼請幫我們思考一下您用來評估投資組合管理決策的參數？

Yeah. I mean, you hit them pretty well. If you think about where we're going to invest, I think that's the most important because you've got to know where you're going to invest, didn't know where you're not going to invest and then you make decisions from there, what you're going to do in those not invest areas. But the areas we're going to contrate on, first and foremost, are the fastest growth markets that we have. We need to make sure that anything we're going to invest in gives us positive mix from a revenue growth standpoint. So that's number one.

是的。我的意思是，你打得很好。如果你考慮我們要投資哪裡，我認為這是最重要的，因為你必須知道你要投資哪裡，不知道你不會投資哪裡，然後你才能做出決定從那裡開始，你將在那些不投資的領域做什麼。但我們首先要關注的領域是我們擁有的成長最快的市場。我們需要確保我們要投資的任何東西從收入成長的角度來看都能為我們帶來正面的組合。所以這是第一。

Number two, as I talked about in prepared remarks and you just referenced, it is to make sure that we concentrate in areas where we do believe we have a pathway to win, right? We have to be in a market position that is favorable and where we believe we have the right to win in that space.

第二，正如我在準備好的發言中談到的以及您剛才提到的，這是為了確保我們專注於我們確實相信我們有獲勝途徑的領域，對嗎？我們必須處於有利的市場地位，並且我們相信我們有權利在該領域獲勝。

And the third is really important as well, going back to mix. But from a margin perspective, we want to make sure that we have a good margin profile in the markets or businesses where we're going to be investing as well. If we're going to grow fast in those businesses, and we don't have attractive margins, then we're going to get negative mix and we don't want that in margin.

第三個也非常重要，那就是回歸混音。但從利潤率的角度來看，我們希望確保我們在要投資的市場或業務中擁有良好的利潤率。如果我們要在這些業務中快速成長，而我們沒有有吸引力的利潤率，那麼我們就會出現負組合，而我們不希望利潤率會出現這種情況。

So those are the primary areas. And to your point, where do our businesses connect and work in a one plus one potentially be a three? Is there value in that? It doesn't have to be there, but that's a nice add as well.

這些是主要領域。就您而言，我們的業務在哪裡進行連接並以一加一的形式開展工作，可能會是三？這有什麼價值嗎？它不一定在那裡，但這也是一個很好的補充。

Rick Wise, Stifel.

瑞克懷斯，史蒂菲爾。

Good afternoon, everybody. Bryan, just reflecting on your opening comments about your increasing encouragement of the progress that's been made. Maybe focusing that thought towards the MedSurg business again. Help us better understand how the -- the new sales and leadership team you brought in place are affecting the business, how the new Peel and Place wound product that you're talking about. How is it going to -- how are some of these changes concretely going to affect the business as you reorient sales as you rethink compensation and just talk through that, if you would, and help us think about where you expect over the next year or two. What's that translate in terms of growth in these early days of Solventum for the MedSurg piece? Thank you.

大家下午好。布萊恩，我想回顧一下您的開場白，您對所取得的進展越來越表示鼓勵。也許再次將想法集中在 MedSurg 業務上。幫助我們更了解您引入的新銷售和領導團隊如何影響業務，以及新的剝離和放置如何傷害您正在談論的產品。當你重新調整銷售方向、重新考慮薪酬時，這些變化將如何具體影響業務，如果你願意的話，只需討論一下這個問題，並幫助我們考慮你對明年的期望或二。這對 Solventum 早期的 MedSurg 項目的成長意味著什麼？謝謝。

Yeah. Thanks, Rick. And I think it's a good proxy actually for the entire business, to be honest, because it's a similar game plan almost across all businesses and functions. But it makes a big difference. If you think about just MedSurg in particular, we've made some pretty significant changes. And if you think them -- think about the deficiency in revenue growth versus market. First thing you need to do is do a root cause analysis. Why am I underperforming markets that are attractive today. And when you do that root cause analysis, you find where those deficiencies lie. And they can be in three different areas. We're already in attractive markets, so we know that's not one.

是的。謝謝，瑞克。老實說，我認為這實際上對整個業務來說是一個很好的代表，因為幾乎所有業務和職能部門都有類似的遊戲計劃。但這有很大的不同。如果您特別考慮 MedSurg，我們已經做出了一些相當重大的改變。如果你想到它們——想想收入成長相對於市場的不足。您需要做的第一件事是進行根本原因分析。為什麼我的表現不如當今有吸引力的市場？當您進行根本原因分析時，您會發現這些缺陷所在。它們可以位於三個不同的領域。我們已經處於有吸引力的市場，所以我們知道那不是一個。

But it could be that you don't have the rigor in place from a commercial standpoint that's pretty easy to fix. So if we get the right talent in place, we start to then as a result of that talent, get better mechanisms to drive commercial rigor, change our compensation structure, which we're doing in 2025 to be more performance based. Those are all things you can do right out of the gate by bringing the right people and getting that rigor in place. And we are doing that, not just in MedSurg but across the board.

但從商業角度來看，您可能沒有做到嚴格的要求，而這很容易解決。因此，如果我們找到了合適的人才，我們就會開始利用這些人才，建立更好的機制來推動商業嚴謹性，改變我們的薪酬結構，我們將在 2025 年這樣做，以更加基於績效。這些都是你可以透過聘請合適的人員並嚴格落實到位而立即完成的事情。我們正在這樣做，不僅僅是在 MedSurg 領域，而是在整個領域。

The second is changing commercial structure. And again, as you start to pick your growth driver areas and you begin to isolate the areas where we want to specialize our sales organization and/or expand it, we're going to be doing that as well as we come into 2025. That takes a little bit longer because you got to isolate the areas, you've got to hire the people and you've got to train the people, you've got to get them to be productive. But that is definitely something that we'll be moving forward on.

二是商業結構轉變。再說一次，當你開始選擇成長驅動領域並開始隔離我們想要專業化我們的銷售組織和/或擴展它的領域時，我們將在進入 2025 年時這樣做。隔離這些區域，你必須僱用人員，你必須訓練人員，你必須讓他們有效率地工作。但這絕對是我們將繼續前進的事情。

The one that takes a little bit longer that we'll have in MedSurg and the other businesses as well, is just getting the innovation gaps filled. That will take us a little longer. You've got to ideate once you know the gaps, you've got to then develop, you have to get regulatory approval, and then you eventually launch. But those are things that the new team will be focused on, obviously.

我們在 MedSurg 和其他業務中需要更長一點的時間，就是填補創新空白。這將需要我們更長的時間。一旦你知道了差距，你就必須構思，然後你必須開發，你必須獲得監管部門的批准，然後你最終啟動。但顯然，這些都是新團隊將重點關注的事情。

But I would just say that I fully expect, given the changes that we've made that we're going to see underlying business improvement in 2025. In MedSurg, and that will be across all of our businesses. And I think we're going to benefit from exactly what you said. The talent upgrades that we've made, the focus they're going to have on commercial rigor and the change in compensation plans that we have and also some of the new launches, just like Peel and Place. We've got to get the capacity up in those areas but we should benefit from those.

但我只想說，考慮到我們所做的改變，我完全期望 2025 年我們將看到潛在的業務改善。我認為我們將從你所說的話中受益。我們進行了人才升級，他們將把重點放在商業嚴謹性上，我們的薪酬計劃也發生了變化，還有一些新推出的項目，例如 Peel 和 Place。我們必須提高這些領域的能力，但我們應該從中受益。

I want to caution everybody, though, if we're getting out over their skis because that's one variable. Obviously, when we look at 2025, we do have some offsets to that. We just talked about SKU rationalization, which put a little pressure on 2025. We've got some comps that we're going to have to deal with in pricing and back order recovery. But make no mistake, I look at 2025 for MedSurg and our other businesses as the tip of the spear to begin to change the underlying business performance of this company. And that will then, as a result, start to take us off that historical underperformance that we've had.

不過，我想提醒大家，如果我們要出去滑雪，因為這是一個變數。顯然，當我們展望 2025 年時，我們確實對此做出了一些補償。我們剛剛談到了 SKU 合理化，這給 2025 年帶來了一些壓力。但請不要誤會，我將 MedSurg 和我們其他業務的 2025 年視為開始改變該公司基本業務績效的矛尖。結果，這將開始讓我們擺脫歷史上表現不佳的局面。

That's great. And just a follow-up, and maybe I shouldn't be focusing on this, but I'd be curious to hear your thoughts. The ERP transition, it's encouraging that you've already implemented in four countries. Where are we in that process? And maybe talk to us about what it means, what you're expecting from those initial efforts and what -- how we think about that as a positive underpinning driver for '25 and beyond? Thank you.

那太棒了。只是後續行動，也許我不該關注這個，但我很想聽聽你的想法。令人鼓舞的是，您已經在四個國家/地區實施了 ERP 轉型。我們在這個過程中處於什麼位置？也許可以和我們談談這意味著什麼，您對這些最初的努力有何期望，以及我們如何將其視為 25 年及以後的積極基礎驅動力？謝謝。

Yeah, Rick, it's Wayde. I can take that one. And you're highlighting one of the biggest areas of the separation. One of the areas that's getting the most attention. We've got some of the biggest project teams, operating mechanisms, Bryan and I are involved and down all through the organization. The ERPs are the backbone of our systems. And so we're spending a lot of time here, no question.

是的，瑞克，我是韋德。我可以接受那個。你強調了分離的最大領域之一。最受關注的領域之一。我們擁有一些最大的專案團隊和營運機制，布萊恩和我參與了整個組織。 ERP 是我們系統的支柱。毫無疑問，我們在這裡花了很多時間。

We are encouraged to get four countries done. But as you can imagine, we picked smaller countries to start with. And that's by design because we want to make sure that we've got all of our teams focused on ERP and the implementation of them and all of the different phases of the program as we execute from planning to execution and then hypercare on the other end.

我們被鼓勵完成四個國家的工作。但正如您可以想像的那樣，我們首先選擇了較小的國家。這是設計使然，因為我們希望確保所有團隊都專注於 ERP 及其實施，以及專案的所有不同階段，從計劃到執行，然後在另一端進行超級護理。

And I would say, out of the first four, a couple of them went really well. A couple of them, we had some bumps and challenges, but the teams really pulled together, worked through them, worked hard with our customers to try to close any gaps that we had, and we're in a much better place after these first four and now we're moving on. And we're going to continue to move, of course, with the biggest one, our US implementation in North America. And so we've got a lot of planning in place, a lot of work being done. But as you're highlighting, this is an important one for us and be very focused on it.

我想說，在前四個中，有幾個進展得非常好。其中一些，我們遇到了一些坎坷和挑戰，但團隊真的齊心協力，克服了這些困難，與我們的客戶一起努力工作，試圖縮小我們所存在的任何差距，在這些第一次之後，我們處於一個更好的位置四個，現在我們繼續前進。當然，我們將繼續採取最大的行動，即我們在北美的美國實施。因此，我們已經制定了很多計劃，並且正在進行很多工作。但正如您所強調的，這對我們來說很重要，並且要非常注意它。

I'll just maybe draft off of those comments, too. And we were very focused when we brought people in, in certain functions, particularly IT, manufacturing and others that have been through this type of ERP consolidation in the past, ERP cutovers and even directly involved in spins. And I think that's really important because if you've lived it and you've been burned by it, you know where to look.

我也許也會起草這些評論。當我們引進某些職能部門的人員時，我們非常專注，特別是 IT、製造和其他過去經歷過此類 ERP 整合、ERP 切換甚至直接參與旋轉的部門。我認為這非常重要，因為如果你經歷過它並且被它燒傷過，你就知道該去哪裡尋找。

So the team, I think, is very capable of managing. It doesn't mean it's not without risk. We're definitely going to see risk. We already have had some challenges to manage through them. But we have a great team that should be able to get this done to get it done effectively.

所以我認為這個團隊非常有管理能力。這並不意味著它不存在風險。我們肯定會看到風險。我們已經遇到了一些需要應對的挑戰。但我們有一支優秀的團隊，應該能夠有效地完成這項工作。

Ryan Zimmerman, BTIG.

瑞安·齊默爾曼，BTIG。

Good afternoon. Thanks for taking the question. So I'll ask both questions upfront. Just if you could, Wayde, remind us, I think you have about 11% of revenue in China. First, is that the right way to think about your exposure there? And look, we're two days into a new administration. There's a lot of discussion about tariffs and potentially the impact there. Just remind us kind of what you're manufacturing potentially over there and how to think about those considerations, if you don't mind.

午安.感謝您提出問題。所以我會提前問這兩個問題。 Wayde，請提醒我們一下，我認為你們的收入大約有 11% 來自中國。首先，這是考慮你在那裡的曝光的正確方法嗎？看，我們新政府上任還有兩天。關於關稅及其潛在影響有許多討論。如果您不介意的話，請提醒我們您在那裡可能生產什麼以及如何考慮這些因素。

And then the second question, in the purification business, given the IV shortages that are going on right now, is there any consideration about the impact to dialysis filtration or things of that nature that may use a lot of saline solution in the near-term?

然後第二個問題，在淨化業務中，考慮到目前正在發生的靜脈注射短缺，是否考慮過對透析過濾或短期內可能使用大量鹽溶液的此類性質的影響？

Do you want to take the P&F and I'll take the first one?

你想買 P&F，我買第一個嗎？

Yes sure.

是的，當然。

So let me just maybe correct on the China view. We have just a little over 5% of our business in China. So it's not as significant as 11% that you referenced. If I just think about the tariffs, I think, first and foremost, we just need to see what actually happens here. I think everybody is going to kind of wait and see what happens. The good news is, though, when I think about what we actually bring in from China, it's a relatively small number. And as a result of that, just given what we know, I really don't see tariffs as being a major impact to our business. Now anything can change. But based on what I see today, I don't see it as a major impact to our business, which is a good thing, obviously. On the P&F, I'm not -- you want to answer that one?

因此，讓我糾正一下中國的觀點。我們的業務只有 5% 多一點在中國。所以它沒有你提到的 11% 那麼重要。如果我只考慮關稅，我認為首先也是最重要的是，我們只需要看看這裡實際發生了什麼。我認為每個人都會等待，看看會發生什麼。不過，好消息是，當我想到我們實際上從中國進口的東西時，這個數字相對較小。因此，就我們所知，我確實不認為關稅對我們的業務產生重大影響。現在一切都可以改變。但根據我今天看到的情況，我認為這不會對我們的業務產生重大影響，這顯然是一件好事。關於 P&F，我不是──你想回答這個問題嗎？

Yeah, sure. I mean we have not seen any falloff in demand for support of the dialysis business out of purification filtration that the teams have brought up to us. So at this point, we think that all the different centers, dialysis centers and all the companies in the value chain are working very hard to continue to service that and that we haven't seen any falloff.

是的，當然。我的意思是，我們沒有看到團隊向我們提出的淨化過濾對透析業務支援的需求有任何下降。因此，在這一點上，我們認為所有不同的中心、透析中心和價值鏈中的所有公司都在非常努力地繼續提供服務，而且我們沒有看到任何下降。

Yes. And as a matter of fact, we are always under capacity constraints here. So if anything, we could add capacity to help out the demand.

是的。事實上，我們這裡一直受到產能限制。因此，如果有的話，我們可以增加產能來滿足需求。

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

Jason Bednar, Piper Sandler.

傑森·貝德納，派珀·桑德勒。

Hey, good afternoon. Thanks for taking the question guys. Bryan, Wayde, I wanted to start with a follow-up on Dental Solutions, you had a distributor with some internal cybersecurity issues that probably affected demand in the fourth quarter of last year. So you've got an easy comp here in the fourth quarter. Obviously, a tougher comp that we just saw that we lapped here in the third quarter. But I just love to hear how you're thinking about pricing and volume dynamics in the dental market once we get past some of the noise with comps here in the second half of the year.

嘿，下午好。感謝你們提出問題。布萊恩、韋德，我想從牙科解決方案的後續行動開始，你們的經銷商有一些內部網路安全問題，可能影響了去年第四季的需求。所以第四節的比賽很輕鬆。顯然，我們剛剛在第三節看到了一個更艱難的比賽。但我只是想聽聽，一旦我們克服了今年下半年的一些競爭噪音，您對牙科市場的定價和銷售動態有何看法。

Yeah. You're actually -- you're right on. When you think about comps. First of all, Q3 was a tough comp. Q4 is an easier comp in the dental space, in particular, because of what you just referenced. When I think about price volume, I think that in the dental business, very similar to our other businesses, pricing is normalizing now. And so I don't know that I think dramatically differently than what we've been saying all along that we need to see volumes increase because we've been depending way too much on pricing as a result of the inflationary period, which is ending and pricing is now normalizing, and that's exactly what we saw in the quarter. So I don't see pricing as being a big lever for us in dental. I see it like all of our other businesses, we have got to get the volume up.

是的。事實上，你是對的。當你考慮比較時。首先，第三季是一場艱難的比賽。 Q4 在牙科領域是一個更容易的比較，特別是因為您剛才提到的內容。當我考慮價格量時，我認為在牙科業務中，與我們的其他業務非常相似，定價現在正在正常化。因此，我不知道我的想法與我們一直以來所說的有很大不同，即我們需要看到銷量增加，因為由於通貨膨脹時期，我們一直過於依賴定價，而通貨膨脹時期正在結束定價現在正在正常化，這正是我們在本季看到的情況。因此，我不認為定價對我們牙科行業來說是一個重要的槓桿。我認為就像我們所有其他業務一樣，我們必須提高銷售量。

And maybe one quick follow-up and then a separate question. But are you still comfortable, Bryan, looking at pricing as being positive in dental? Or is it more neutral-ish in dental going forward? And then as a follow-up, a separate question. And drafting off of some of the past portfolio management question. At what point -- I think it's something -- there's a lever or a metric -- 25% of assets are, and correct me if I'm wrong on that measure, but past that level, if you're looking at a divestiture, you have to get clearance from parent 3M and again, correct me if I'm wrong on that. I'm sure there's some legalities in there. But what's the level you'd have to clear in order to get that clearance? Or asked another way, are there smaller assets? Obviously, you're doing SKU rationalization, but other assets you could sell off where you would not have to get such clearance?

也許是一個快速的跟進，然後是一個單獨的問題。但是，布萊恩，您仍然認為牙科定價是積極的嗎？還是未來牙科領域會更中立？然後作為後續，一個單獨的問題。並起草了一些過去的投資組合管理問題。在什麼時候——我認為這是某種東西——有一個槓桿或一個指標——25%的資產是，如果我在這個指標上錯了，請糾正我，但超過這個水平，如果你正在考慮剝離，你必須得到父母 3M 的許可，如果我錯了，請再次糾正我。我確信那裡有一些合法性。但是為了獲得許可，你必須達到什麼等級？或者換個方式問，還有更小的資產嗎？顯然，您正在進行 SKU 合理化，但是您可以出售其他不需要獲得此類授權的資產嗎？

So on the pricing, I'm just going to hold on that one. We're not going to get specific pricing thoughts on individual businesses, but maybe Wayde in a second, you can just speak to our overall view of pricing when we think about it from a company standpoint, which you've talked about in the past.

因此，在定價方面，我只會堅持下去。我們不會獲得針對個別企業的具體定價想法，但也許韋德，當我們從公司的角度考慮時，你可以談談我們對定價的總體看法，你過去曾談到過這一點。

When I think about the considerations for portfolio moves for us, normally, you have the typical considerations on whether you're going to make a portfolio move. We have additional considerations that you're talking about right now as a result of the fact that we're so close to the spin from 3M. And there are multiple considerations that you've got to think about as a result of that. In some of those, we don't have complete control over. So some of them we do, some of them we don't.

當我考慮我們的投資組合變動時，通常情況下，您會考慮是否要進行投資組合變動。由於我們非常接近 3M，因此我們還有您現在正在談論的其他考慮因素。因此，您必須考慮多種因素。在其中一些方面，我們無法完全控制。所以有些我們做，有些我們不做。

What I would just say there is the same way that we're assessing our businesses, we're also clearly understanding what those considerations are we're assessing them and then managing through them. We feel like we need to do that proactively so that is not a barrier for us to do transactions if we want to. I'm not committing that we are going to do transactions. I'm just saying we don't want that to be a barrier for us. Of course, there's two to play there. It's not just us that 3M has got to be involved in that decision as well. So you want to maybe talk about pricing.

我想說的是，我們評估我們的業務的方式是一樣的，我們也清楚地了解這些考慮因素是什麼，我們正在評估它們，然後透過它們進行管理。我們覺得我們需要主動這樣做，這樣如果我們願意的話，這不會成為我們進行交易的障礙。我不承諾我們將進行交易。我只是說我們不希望這成為我們的障礙。當然，還有兩個人可以在那裡玩。不只是我們，3M 也必須參與這個決定。所以你也許想談談定價。

Yeah. I'll pick up on the pricing comment that you had. And Jason, good to hear you on the call. So just in summary, Q3, as we mentioned in the prepared remarks, we did as we've been communicating for some time now, expecting normalization of pricing, and it was neutral to our Q3 performance. And so the good news is we are starting to see volume improve as revenue growth over the past year and first half of 2024 was more than all driven by price.

是的。我將聽取您的定價評論。傑森，很高興聽到你打電話。總而言之，第三季度，正如我們在準備好的評論中提到的那樣，我們已經溝通了一段時間，預計定價正常化，這對我們第三季度的業績是中性的。因此，好消息是，我們開始看到銷售量有所改善，因為過去一年和 2024 年上半年的營收成長主要是由價格推動的。

So the business has really been benefiting from price for some time. And now we're starting to see volume turn and start to improve. It's not to say we're satisfied at all. We're not satisfied with the results and the growth yet. But it is good to see the volumes start to improve versus the underperformance over the past few years and that's where the business has been experiencing volume declines.

因此，一段時間以來，該行業確實從價格中受益。現在我們開始看到成交量出現轉變並開始改善。這並不是說我們完全滿意。我們對結果和成長還不滿意。但很高興看到銷量開始改善，而過去幾年表現不佳，而這正是該業務一直在經歷銷量下降的地方。

Chris Senyek, Wolfe Research.

克里斯森耶克，沃爾夫研究中心。

Yeah. Hi guys. Thanks for taking my question. Two questions. First, in terms of health information systems, the organic growth rate was a little light relative to some of the past few quarters. Was there anything anomalous in the third quarter that we wouldn't expect to recur going forward?

是的。嗨，大家好。感謝您提出我的問題。兩個問題。首先，就衛生資訊系統而言，有機成長率與過去幾季的某些季度相比略顯緩慢。第三季是否有任何我們預計今後不會再發生的異常情況？

Thanks for the question. So I would say, if I just kind of break down the quarter, it's pretty steady in our revenue cycle management business. I feel really confident and comfortable in that business. The team has a good handle on it. It's somewhat of an annuity business, but that was steady. What we continue to see is, I think, Wayde, you referenced in your prepared remarks some challenges in clinical productivity solutions. That's where our [MModal] business was acquired and I'll just be fully transparent. It just never was really fully invested in. And in that fast-paced market, if you're not investing aggressively, you fall behind, and we did. And that's where we're going to continue to see some pressure. The team is working on a solution, but I really don't see that as any kind of significant improvement in that particular part of the business in the short-term.

謝謝你的提問。所以我想說，如果我對這個季度進行細分，我們的收入週期管理業務相當穩定。我對這項業務感到非常自信和自在。團隊對此處理得很好。這有點像年金業務，但很穩定。我認為，我們繼續看到的是，Wayde，您在準備好的演講中提到了臨床生產力解決方案中的一些挑戰。這就是我們收購 [MModal] 業務的地方，我將完全透明。它只是從未真正得到充分投資。這就是我們將繼續面臨一些壓力的地方。團隊正在研究解決方案，但我確實認為短期內該業務的特定部分不會有任何重大改進。

Where we did see maybe a bit of an anomaly was our performance management business was soft in the quarter. I don't expect that to continue. There was just some volumes in the quarter that impacted that business. I do not expect that to continue.

我們確實看到的可能有點反常的是我們的績效管理業務在本季表現疲軟。我不希望這種情況繼續下去。本季只有部分交易量影響了該業務。我預計這種情況不會持續下去。

On the positive side, as I referenced in revenue cycle management, one of the new product launches that we have around data integrity is pretty interesting. It's early days for sure. We've got to prove some things out.

從積極的一面來看，正如我在收入周期管理中提到的，我們圍繞數據完整性推出的新產品之一非常有趣。現在肯定還為時過早。我們必須證明一些事情。

But as you can imagine, our customers are always worried about leakage when it comes to reimbursement. And we're using this data integrity solution to be able to get them the information they need and submit from a reimbursement standpoint to ensure they get better reimbursement leakage. So that's one thing that we're going to concentrate on and try to drive in the market. But generally speaking, outside of the performance management anomaly in the quarter, which should not repeat next quarter. It was pretty standard.

但正如你想像的那樣，我們的客戶在報銷方面總是擔心漏報。我們正在使用這個資料完整性解決方案，以便能夠為他們提供所需的信息，並從報銷的角度提交，以確保他們獲得更好的報銷洩漏。因此，這是我們要集中精力並努力推動市場發展的一件事。但總體來說，除了本季的績效管理異常之外，下季應該不會再出現這種情況。這是相當標準的。

Okay, great. And then a question maybe for Wayde, in terms of foreign currency, is the guidance based on the spot rate as of the end of the quarter? And then if you could talk a little bit about the revenue cost mix geographically as we think about translation and an (technical difficulty) task of trying to model what that might be?

好的，太好了。然後，Wayde 可能會問一個問題，就外幣而言，指導是否基於截至季度末的即期匯率？然後，當我們考慮翻譯和嘗試建模可能是什麼的（技術難度）任務時，您是否可以談談地理上的收入成本組合？

Sure. Yeah. So FX for us, we typically set the rates near the date when we were guiding. So over the past week or so, we factor that into our guidance discussions and planning. And so we're not using in the quarter. We're using something closer to our earnings call date, which has seen quite a bit of volatility over the past few weeks. I'm sure that's why you're asking the question. And then just to summarize again, we had very little impact here in Q3 but based on the recent FX rates, we do expect a headwind, both top and bottom line here in Q4.

當然。是的。因此，對我們來說，外匯方面，我們通常會在我們指導的日期附近設定匯率。因此，在過去一周左右的時間裡，我們將這一點納入了我們的指導討論和計劃中。所以我們在本季沒有使用。我們正在使用接近財報電話會議日期的數據，該數據在過去幾週內出現了相當大的波動。我確信這就是你問這個問題的原因。然後再次總結一下，我們在第三季的影響很小，但根據最近的匯率，我們確實預計第四季的頂線和底線都會出現逆風。

As far as our revenue and cost mix geographically, I think it's pretty well understood that the HIS business is almost all in the US, but the other businesses have good exposure outside the US. And so we're running manufacturing within the US and outside as well. So we don't have details to provide at this point as far as that translation mix goes.

就我們在地理上的收入和成本組合而言，我認為眾所周知，HIS 業務幾乎全部在美國，但其他業務在美國以外的地區也有良好的曝光度。因此，我們在美國境內外也開展製造業務。因此，就翻譯組合而言，我們目前無法提供詳細資訊。

But I think just generally, the way to think about it would be given the diversification of our three product segments that are a good amount of our business outside the US as well as inside, we're going to be subject to most FX moves like any other med device company. And then from a manufacturing footprint standpoint, we also have a good amount of manufacturing all throughout Europe, a little less in China and Asia Pacific.

但我認為一般來說，考慮到我們的三個產品領域的多元化，這三個產品領域是我們在美國境外和美國境內的大量業務，我們將受到大多數外匯波動的影響，例如任何其他醫療設備公司。從製造業足跡的角度來看，我們在整個歐洲也擁有大量製造業，在中國和亞太地區則稍少。

Okay, great.

好的，太好了。

David Roman, Goldman Sachs.

大衛羅曼，高盛。

Thanks for letting me sneak another one in here. I want to just come back, Bryan, to a comment you've made a couple of times around capacity and your ability to meet demand? And how do we square that with kind of the ramp in CapEx here compared to what you originally provided at the analyst meeting? And should we expect some of the CapEx that may not have occurred this year to flow into next year. And I think you're also retrofitting a headquarters. How do we kind of put all that together? And what does that mean for your future CapEx?

謝謝你讓我再偷偷放一張進來。布萊恩，我想回到您多次就產能和滿足需求的能力發表的評論？與您最初在分析師會議上提供的數據相比，我們如何將其與資本支出的成長相匹配？我們是否應該預期今年可能不會發生的一些資本支出會流入明年。我認為你們也在改造總部。我們如何將所有這些整合在一起？這對您未來的資本支出意味著什麼？

So obviously, I'll pass that over to Wayde to talk about CapEx. But maybe just to make sure that I'm clear, there's a couple of different vectors of capacity when I'm talking about it. One would be in purification and filtration. We are investing capital there to drive capacity. We saw that in our industrial business and it had a benefit in the quarter. We're doing the same when it comes to our membranes business, and those are pretty significant investments that we've made. On the membranes business, it will take a little bit of time for it to come to fruition over the next couple of quarters.

顯然，我會將其交給 Wayde 來討論資本支出。但也許只是為了確保我清楚，當我談論它時，有幾個不同的容量向量。其中之一是純化和過濾。我們正在那裡投資資本以提高產能。我們在我們的工業業務中看到了這一點，並且在本季度取得了收益。當涉及到我們的膜業務時，我們也在做同樣的事情，這些是我們所做的相當重要的投資。在膜業務方面，未來幾季需要一點時間才能取得成果。

When I talk outside of purification and filtration knowing when I think about capacity with Peel and Place or I think about capacity with Clinpro, that's not really a heavy capital intensity there, that's just demand planning. We just did not have the right demand plan in place and the commercialization planning for that launch and we underestimated the demand. And as a result, we just don't have the capacity to fill it. So don't think in those two areas, significant cash spend or capital requirements, they're pretty low-intensity capital businesses. We just didn't get the demand right. But maybe, Wayde, you talk about the total CapEx?

當我談論淨化和過濾以外的問題時，我知道當我考慮 Peel and Place 的產能或 Clinpro 的產能時，這並不是真正的資本密集度，而只是需求規劃。我們只是沒有製定正確的需求計劃和該發布的商業化計劃，而且我們低估了需求。結果，我們沒有能力填補它。因此，不要認為這兩個領域存在大量現金支出或資本要求，它們是相當低強度的資本業務。我們只是沒有得到正確的需求。但也許韋德，你談論的是總資本支出？

Yes. So we've guided to $400 million, $500 million since the start of our public company here in Q2, and we've just updated that this quarter to thinking to the low end of $400 million to $500 million. Having said that, David, we know we're going to have to make investments for both the separation as well as the organic growth of the business.

是的。因此，自第二季上市公司成立以來，我們的指導價為 4 億美元、5 億美元，本季我們剛更新為 4 億美元至 5 億美元的下限。話雖如此，大衛，我們知道我們必須為業務的分離和有機成長進行投資。

And as Bryan said, there's a couple of areas in addition to our new products where we're capacity constrained and I think one of the advantages of the growth driver strategy that will bring is a very focused growth investments. And by doing that, we can be very much planful where we're making our CapEx expenditures and doing them in areas that we know we're going to be growing the business versus kind of a blanketed approach to growing the business.

正如布萊恩所說，除了我們的新產品之外，還有幾個領域的產能受到限制，我認為成長驅動策略的優勢之一將帶來非常集中的成長投資。透過這樣做，我們可以非常有計劃地進行資本支出支出，並在我們知道我們將要發展業務的領域進行這些支出，而不是採用一種全面的方法來發展業務。

And then you're always trying to catch up in the areas that you're growing and maybe over investing in others. So again, one of the byproduct advantages of our growth driver strategy is Bryan mentioned earlier, shifting resources to get behind the growth drivers. But part of that is the capital expenditures. And as Bryan mentioned, one of the criteria for the growth drivers is thinking through the relative profitability, and we include capital intensity in that.

然後你總是試圖在你正在發展的領域迎頭趕上，也許在其他領域過度投資。因此，我們的成長動力策略的副產品優勢之一就是布萊恩先前提到的，將資源轉移到成長動力背後。但其中一部分是資本支出。正如布萊恩所提到的，成長動力的標準之一是考慮相對獲利能力，我們將資本密集度納入其中。

But having said that, we know we're going to be investing. In addition to supporting a faster growth of the business over time is also to separate the business, and we're investing pretty heavily right now, as we talked earlier about ERPs. We also have pretty significant manufacturing line moves, moving our distribution centers and logistics. So we've got a lot of work to do and CapEx is one of the things that we're going to have to spend on to separate the businesses.

但話雖如此，我們知道我們將進行投資。除了支援業務隨著時間的推移更快成長之外，還需要將業務分開，正如我們之前談到的 ERP 一樣，我們現在正在大力投資。我們也進行了相當重大的生產線搬遷，搬遷了我們的配送中心和物流。因此，我們還有很多工作要做，而資本支出是我們必須花在分離業務上的事情之一。

Great. Thanks so much for taking the additional questions.

偉大的。非常感謝您提出其他問題。

Okay. Seeing no further questions, I'll close the call just by saying thank you so much for joining us, and I hope that everyone has a wonderful day.

好的。沒有其他問題了，我將結束通話，非常感謝您加入我們，並希望每個人都有美好的一天。

Thank you. This concludes today's conference call. You may now disconnect.

謝謝。今天的電話會議到此結束。您現在可以斷開連線。