DENTSPLY SIRONA Inc (XRAY) 2023 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Dentsply Sirona First Quarter 2023 Earnings Conference Call. (Operator Instructions) As a reminder, today's conference is being recorded. And I would now like to turn the conference over to your host, Andrea Daley; Vice President for Investor Relations. Andrea, please go ahead.

美好的一天，謝謝你的支持。歡迎來到 Dentsply Sirona 2023 年第一季度收益電話會議。 （操作員說明）提醒一下，今天的會議正在錄製中。現在，我想將會議轉交給主持人安德里亞·戴利 (Andrea Daley)。投資者關係副總裁。安德里亞，請繼續。

Thank you, operator, and good morning, everyone. Welcome to our first quarter 2023 earnings call. Joining me for today's call is Simon Campion, Dentsply Sirona's Chief Executive Officer; and Glenn Coleman, Chief Financial Officer. I'd like to remind you that an earnings press release and slide presentation related to the call are available in the Investors section of our website at www.dentsplysirona.com. Before we begin, please take a moment to read the forward-looking statements in our earnings press release.

謝謝接線員，大家早上好。歡迎來到我們 2023 年第一季度的財報電話會議。和我一起參加今天電話會議的是 Dentsply Sirona 的首席執行官 Simon Campion；和首席財務官 Glenn Coleman。我想提醒您，我們網站 www.dentsplysirona.com 的投資者部分提供了與電話會議相關的收益新聞稿和幻燈片演示。在我們開始之前，請花點時間閱讀我們的收益新聞稿中的前瞻性陳述。

During today's call, we may make certain predictive statements that reflect our current views about future performance and financial results. We base these statements and certain assumptions and expectations on future events that are subject to risks and uncertainties. Our most recently filed Form 10-K and any updating information in subsequent SEC filings lists some of the most important risk factors that could cause actual results to differ from our predictions.

在今天的電話會議中，我們可能會做出某些預測性陳述，以反映我們當前對未來業績和財務結果的看法。我們將這些陳述以及某些假設和預期建立在受風險和不確定性影響的未來事件的基礎上。我們最近提交的 10-K 表格和隨後提交給美國證券交易委員會的任何更新信息列出了一些可能導致實際結果與我們的預測不同的最重要的風險因素。

Additionally, on today's call, our remarks will be based on non-GAAP financial results. We believe that non-GAAP financial measures provide investors with useful supplemental information about financial performance of our business, enable the comparison of financial results between periods where certain items may vary independently of business performance and allow for greater transparency with respect to key metrics used by management in operating our business. Please refer to our press release for the reconciliation between GAAP and non-GAAP results. And with that, I will now turn the call over to Simon.

此外，在今天的電話會議上，我們的評論將基於非 GAAP 財務結果。我們認為，非 GAAP 財務措施為投資者提供了有關我們業務財務業績的有用補充信息，能夠比較某些項目可能獨立於業務業績而變化的時期之間的財務結果，並允許提高我們使用的關鍵指標的透明度經營我們業務的管理。請參閱我們的新聞稿，了解 GAAP 和非 GAAP 結果之間的對賬情況。有了這個，我現在將把電話轉給西蒙。

Thank you, Andrea, and thank you all for joining us this morning for our Q1 2023 earnings call. Today, I'll start by providing an overview of our recent performance, Glenn will cover Q1 results and our updated 2023 outlook, and then I will finish by providing a strategic operating update. Starting on Slide 5. We were pleased to begin 2023 with a strong quarter delivering more than 5% organic sales growth.

謝謝安德里亞，感謝大家今天早上加入我們的 2023 年第一季度財報電話會議。今天，我將首先概述我們最近的表現，格倫將介紹第一季度的結果和我們更新的 2023 年展望，然後我將提供戰略運營更新作為結束。從幻燈片 5 開始。我們很高興以強勁的季度開始 2023 年，有機銷售額增長超過 5%。

Our top line returned to growth with Consumables and our Aligner businesses, SureSmile and Byte delivering double-digit growth. The U.S. region grew nearly 15% in the quarter, driven by the strength in Consumables and Aligners in addition to some favorable timing of CAD/CAM dealer orders. Outside of the U.S., we saw some growth in Europe, while performance in Rest of World was flat due to the headwinds in China. In addition to revenue performance, we also over delivered on adjusted EPS.

我們的收入恢復增長，耗材和我們的 Aligner 業務、SureSmile 和 Byte 實現了兩位數的增長。美國地區本季度增長近 15%，這主要得益於耗材和對準器的強勁增長以及 CAD/CAM 經銷商訂單的一些有利時機。在美國之外，我們看到歐洲有所增長，而由於中國的逆風，世界其他地區的表現持平。除了收入表現，我們還超額交付了調整後的每股收益。

As we have repeatedly noted, fulfilling our commitments internally and externally is a top priority for this leadership team. The combination of the progress we are making on our strategic objectives, our organizational transformation and our Q1 performance is increasing our confidence in our trajectory through this transition year. As a result, we are now raising the low end of our 2023 outlook for net sales, organic sales growth and adjusted EPS. which Glenn will cover in a moment.

正如我們一再指出的那樣，履行我們對內和對外的承諾是這個領導團隊的首要任務。我們在戰略目標、組織轉型和第一季度業績方面取得的進展相結合，增強了我們對這一過渡年軌蹟的信心。因此，我們現在提高了 2023 年淨銷售額、有機銷售額增長和調整後每股收益展望的下限。 Glenn 將在稍後介紹。

In Q1, we participated in IDS in Cologne, Germany for the first time since 2019. The trade show was well attended with more than 120,000 dental professionals from 162 countries. I was impressed by the power of our presence at the event. I'm proud of the way our commercial team engaged with customers. It was very clear that there is [cache] associated with Dentsply Sirona in this industry. We think it's vital to our success to leverage this reputation into a greater customer and patient-centric approach as we execute on our transformation plans.

在第一季度，我們自 2019 年以來首次參加了在德國科隆舉辦的 IDS。展會吸引了來自 162 個國家的 120,000 多名牙科專業人士參加。我們出席活動的力量給我留下了深刻的印象。我為我們的商業團隊與客戶互動的方式感到自豪。很明顯，這個行業存在與 Dentsply Sirona 相關的[緩存]。我們認為，在執行轉型計劃時，將這一聲譽轉化為以客戶和患者為中心的方法對我們的成功至關重要。

Additionally, 2 weeks ago, we brought together our top leaders across the company for a leadership summit to reinforce and engage on our short- and long-term expectations. Hearing from customers, investors, Board members and other CEOs delivered a palpable impact, and I believe further motivated this team to believe in our future, to get some swagger back, to think boldly and courageously and to bring their best to our company every day.

此外，2 週前，我們召集了全公司的最高領導人參加了一次領導力峰會，以加強和參與我們的短期和長期期望。聽取客戶、投資者、董事會成員和其他首席執行官的意見產生了明顯的影響，我相信這進一步激勵了這個團隊相信我們的未來，重新振作起來，大膽和勇敢地思考，並每天為我們的公司帶來最好的自己.

Our purpose for change is clear, to make Dentsply Sirona a better place for employees to work in, for customers to work with and for shareholders to invest in. I am very pleased with the engagement and traction that we are beginning to achieve with our customers, employees and partners. We have built positive momentum inside and outside of our company, which is critically important for all our stakeholders. We are also delivering on our ESG commitments and are proud to announce that the first ever global standard protocols for digitalized cleft treatment have been developed through our partnership with FDI and Smile Train, the world's largest cleft-focused organization.

我們變革的目的很明確，就是讓 Dentsply Sirona 成為員工工作、客戶合作以及股東投資的更好場所。我對我們開始與客戶實現的參與和牽引力感到非常高興、員工和合作夥伴。我們在公司內外建立了積極的勢頭，這對我們所有的利益相關者都至關重要。我們還兌現了我們的 ESG 承諾，並自豪地宣布，通過與 FDI 和全球最大的唇裂組織 Smile Train 的合作，已經制定了第一個數字化唇裂治療全球標準協議。

These protocols are expected to significantly improve the accuracy and efficacy of the current treatment by providing dental professionals with a comprehensive digital clinical approach across all stages of care for these patients. This initiative builds upon an ongoing global partnership we have with Smile Train, which has funded over 1,000 cleft surgeries to date and is an excellent example of how we can contribute to our vision of transforming dentistry to improve oral health globally while giving back to our communities. And with that, I'll turn it over to Glenn for greater financial detail. Glenn?

通過為牙科專業人員提供涵蓋這些患者所有護理階段的綜合數字臨床方法，這些協議有望顯著提高當前治療的準確性和有效性。該計劃建立在我們與 Smile Train 的持續全球合作夥伴關係的基礎上，該合作夥伴迄今已資助了 1,000 多次唇裂手術，並且是一個很好的例子，說明我們如何為實現牙科轉型以改善全球口腔健康的願景做出貢獻，同時回饋我們的社區.有了這個，我會把它交給格倫以獲得更多的財務細節。格倫？

Thank you, Simon. Good morning, and thank you all for joining us. Today, I'll provide more detail on our first quarter results and an update on our 2023 outlook. Dentsply Sirona had a very strong start to 2023, with first quarter organic sales growth of 5.1%, exceeding our outlook of approximately 1%. The first quarter outperformance on the top line of about $40 million was driven by stronger-than-expected growth in Consumables and Aligners.

謝謝你，西蒙。早上好，感謝大家加入我們。今天，我將提供有關我們第一季度業績的更多詳細信息以及我們 2023 年展望的最新情況。登士柏西諾德 (Dentsply Sirona) 到 2023 年開局非常強勁，第一季度有機銷售額增長 5.1%，超過了我們約 1% 的預期。第一季度約 4000 萬美元的超額業績是由消耗品和對準器的增長強於預期推動的。

Our top line results also drove better-than-expected adjusted EPS. Though we're still in the early innings of our transformation work and have more work to do, we believe that delivering consistently on our commitments is critical to rebuilding investor confidence. So let's begin on Slide 7. Our first quarter revenue was $978 million, which represents reported sales growth of 0.9%.

我們的營收業績也推動了好於預期的調整後每股收益。儘管我們仍處於轉型工作的早期階段並且還有更多工作要做，但我們相信始終如一地履行我們的承諾對於重建投資者信心至關重要。那麼讓我們從幻燈片 7 開始。我們第一季度的收入為 9.78 億美元，報告的銷售額增長了 0.9%。

Foreign currency negatively impacted sales by approximately $40 million as compared to the first quarter of 2022. Excluding the impact from foreign currency, organic sales grew 5.1% with strong regional performance in the U.S., Europe and Latin America. Excluding China, organic sales grew 6.6% overall. EBITDA margin of 16.4% was consistent with our outlook of at least 15%. On a year-over-year basis, EBITDA margin contracted 320 basis points due to continued foreign exchange and inflation headwinds, partially offset by favorable mix from Consumables and profitability improvements in Aligners.

與 2022 年第一季度相比，外幣對銷售額的負面影響約為 4000 萬美元。排除外幣的影響，有機銷售額增長 5.1%，美國、歐洲和拉丁美洲的區域表現強勁。除中國外，有機銷售額整體增長 6.6%。 16.4% 的 EBITDA 利潤率與我們至少 15% 的預期一致。與去年同期相比，由於持續的外彙和通脹逆風，EBITDA 利潤率收縮 320 個基點，部分被消耗品的有利組合和 Aligners 的盈利能力改善所抵消。

SG&A as a percentage of sales increased 220 basis points in the quarter primarily due to commercial headcount investments and trade events with customers, both of which we believe will drive better sales performance later this year. Adjusted EPS in the first quarter was $0.39 as compared to $0.54 in the prior year quarter. We attribute $0.10 of the EPS decline to commercial investments, $0.10 to higher inflation and below-the-line expenses and $0.04 to foreign currency headwinds. This was partially offset by a $0.09 tailwind from strong organic sales. Operating cash flow in the quarter was an outflow of $21 million due to unfavorable changes in working capital, primarily driven by accounts receivable and accounts payable timing.

SG&A 佔銷售額的百分比在本季度增長了 220 個基點，這主要是由於商業人員投資和與客戶的貿易活動，我們認為這兩者都將在今年晚些時候推動更好的銷售業績。第一季度調整後的每股收益為 0.39 美元，而去年同期為 0.54 美元。我們將每股收益下降的 0.10 美元歸因於商業投資，將 0.10 美元歸因於更高的通貨膨脹和線下支出，將 0.04 美元歸因於外匯逆風。這部分被強勁的有機銷售帶來的 0.09 美元的順風所抵消。由於營運資本的不利變化，本季度的經營現金流流出 2100 萬美元，這主要是受應收賬款和應付賬款時間安排的驅動。

Operating cash flow was also impacted by increased operating expenses associated with commercial investments and nonrecurring charges, such as restructuring and remediation costs. As a reminder, we still expect to have significant cash outflows for severance and restructuring costs for the remainder of the year. In the first quarter, we returned $27 million of cash to our shareholders through dividends, and we announced a $150 million accelerated share repurchase program.

經營現金流還受到與商業投資和非經常性費用相關的經營費用增加的影響，例如重組和補救費用。提醒一下，我們仍然預計今年剩餘時間將有大量現金流出用於支付遣散費和重組費用。第一季度，我們通過派息向股東返還了 2700 萬美元現金，並宣布了一項 1.5 億美元的加速股票回購計劃。

Our reduced share count in the quarter was primarily driven by the initial receipt of shares in March under the terms of the ASR. The ASR was completed at the end of April. Let me now turn to our segment performance in the quarter on Slide 8. Organic sales in Technologies & Equipment, or our T&E segment grew 1.7%, while organic sales in the Consumables segment grew 9.8%. The T&E organic sales growth was led by strong growth in Aligners, up over 25% in the quarter versus prior year as well as strong growth in our CAD/CAM business, particularly in the U.S.

我們在本季度減少的股票數量主要是由於 3 月份根據 ASR 條款首次收到股票。 ASR 於 4 月底完成。現在讓我談談幻燈片 8 本季度的部門業績。技術與設備或我們的 T&E 部門的有機銷售額增長了 1.7%，而消耗品部門的有機銷售額增長了 9.8%。 T&E 有機銷售增長的主要原因是對準器的強勁增長，本季度比去年同期增長超過 25%，以及我們的 CAD/CAM 業務的強勁增長，尤其是在美國。

These improvements were partially offset by lower volumes in Implants, Imaging and Instruments. Aligners grew double-digits for the third consecutive quarter, driven by strong growth in both SureSmile and Byte. SureSmile continues to benefit from regional expansion, particularly in Europe and new product offerings and clinical differentiation. Our direct-to-consumer Aligner brand, Byte, also saw strong growth despite slowing consumer spending trends, driven by higher customer conversion rates and lower customer acquisition costs, which not only drove higher top line revenues but also better profitability.

這些改進部分被植入物、成像和儀器的銷量下降所抵消。在 SureSmile 和 Byte 強勁增長的推動下，Aligners 連續第三個季度實現兩位數增長。 SureSmile 繼續受益於區域擴張，特別是在歐洲以及新產品供應和臨床差異化。我們的直接面向消費者的 Aligner 品牌 Byte 在客戶轉化率提高和客戶獲取成本降低的推動下，儘管消費者支出趨勢放緩，但也實現了強勁增長，這不僅推動了更高的收入，也提高了盈利能力。

Our CAD/CAM business grew mid-single digits in the quarter, primarily due to wholesale demand in the U.S., which was expected as dealers had exited 2022 at lower inventory levels. The Equipment & Instruments business declined by mid-single digits in the quarter, driven by lower demand in the U.S. and Europe, but was partially offset by strong imaging growth in Canada. Implants was down high single digits in the quarter and performed in line with our projections. We continue to work through headwinds in China, including the impact of VBP. While we saw reduced patient traffic year-over-year, trends are improving, and we expect China to return to growth later this year.

我們的 CAD/CAM 業務在本季度增長了中等個位數，這主要是由於美國的批發需求，這是預期的，因為經銷商在 2022 年以較低的庫存水平退出。受美國和歐洲需求下降的推動，設備和儀器業務在本季度出現了中等個位數的下滑，但部分被加拿大成像業務的強勁增長所抵消。植入物在本季度下降了高個位數，表現符合我們的預測。我們繼續努力克服中國的不利因素，包括 VBP 的影響。雖然我們看到患者流量同比減少，但趨勢正在改善，我們預計中國將在今年晚些時候恢復增長。

Moving to consumables. Organic sales grew approximately 10%, primarily attributable to strong demand for restorative and preventive products. Retail demand for consumables was strong, particularly in comparison to the prior year period, which was impacted by the Omicron variant. The current year quarter also saw stable patient traffic across most geographies.

轉向消耗品。有機銷售額增長約 10%，主要歸因於對修復和預防產品的強勁需求。消耗品的零售需求強勁，特別是與去年同期相比，後者受到 Omicron 變體的影響。在本季度，大多數地區的患者流量也保持穩定。

Now let's turn to Slide 9 to discuss first quarter financial performance by region. U.S. organic sales grew 14.6%, driven by higher volume in Consumables, Aligners and CAD/CAM. While patient traffic in the U.S. continues to be stable, -- we did see lower demand for Imaging equipment, which we attribute to higher interest rates and recessionary concerns in the market. Our U.S. CAD/CAM dealer inventory levels grew $10 million sequentially in the first quarter, consistent with the expectations we laid out on our February earnings call.

現在讓我們轉到幻燈片 9，按地區討論第一季度的財務業績。美國有機銷售額增長 14.6%，受耗材、對準器和 CAD/CAM 銷量增加的推動。雖然美國的患者流量繼續穩定，但我們確實看到對成像設備的需求下降，我們將其歸因於較高的利率和市場對經濟衰退的擔憂。我們的美國 CAD/CAM 經銷商庫存水平在第一季度連續增長了 1000 萬美元，這與我們在 2 月份的財報電話會議上提出的預期一致。

We expect CAD/CAM dealer inventory levels to fluctuate quarter-to-quarter and be slightly lower by the end of the year compared to current levels. Turning to Europe. Organic sales grew 1.1%, due primarily to strong growth in both Consumables and Aligners. This growth was partially offset by softer demand for Imaging equipment. Rest of world organic sales were approximately flat versus the prior year. Excluding China, rest of world organic sales had a strong quarter and grew 5.7% led by strong demand for Imaging equipment and Consumables. In China, as expected, we experienced lower sales across the portfolio as well as headwinds in implants due to the continued impact of VBP.

我們預計 CAD/CAM 經銷商的庫存水平將按季度波動，到年底時會略低於當前水平。轉向歐洲。有機銷售額增長 1.1%，主要是由於耗材和對準器的強勁增長。這一增長部分被成像設備需求疲軟所抵消。世界其他地區的有機銷售額與上一年基本持平。除中國外，世界其他地區的有機銷售額季度表現強勁，增長 5.7%，這得益於對成像設備和耗材的強勁需求。在中國，正如預期的那樣，由於 VBP 的持續影響，我們整個產品組合的銷售額以及植入物的逆風。

With that, let's move to Slide 11 to discuss our updated outlook for 2023. We've updated our full year outlook to reflect our better-than-expected performance in the first quarter. as well as our increased confidence for the remainder of 2023.

有了這個，讓我們轉到幻燈片 11 來討論我們對 2023 年的最新展望。我們更新了全年展望，以反映我們第一季度好於預期的業績。以及我們對 2023 年剩餘時間的信心增強。

We're increasing the low end of our full year net sales range by $50 million to a new range of $3.9 billion to $3.95 billion, with organic sales now projected to be flat to up 2%. This represents a 100 basis point increase to the low end of our previous outlook range. While we're still operating in a challenging macro environment, we are seeing stable to improving patient traffic in key markets. In addition, foreign currency exchange rates are largely unchanged compared to our prior outlook.

我們將全年淨銷售額範圍的下限增加 5000 萬美元，達到 39 億美元至 39.5 億美元的新範圍，有機銷售額現在預計將持平至 2%。這意味著我們之前的展望範圍的低端增加了 100 個基點。雖然我們仍在充滿挑戰的宏觀環境中運營，但我們看到主要市場的患者流量穩定到改善。此外，與我們之前的展望相比，外幣匯率基本沒有變化。

And as such, we're still expecting FX will be a 100 basis point headwind to full year net sales, most of which was realized in the first quarter. Based on current FX rates, we expect a minimal impact for the remainder of the year. We estimate full year EBITDA margin to be greater than 18%, unchanged from our prior outlook. Given the better-than-expected organic sales performance to start the year, we're also raising our full year adjusted EPS outlook by $0.05 on the low-end, which brings our adjusted EPS range to $1.85 to $2.

因此，我們仍然預計外匯將對全年淨銷售額產生 100 個基點的不利影響，其中大部分是在第一季度實現的。根據當前的匯率，我們預計今年剩餘時間的影響很小。我們估計全年 EBITDA 利潤率將超過 18%，與我們之前的預期持平。鑑於今年年初的有機銷售業績好於預期，我們還將全年調整後的每股收益預期低端上調了 0.05 美元，這使我們調整後的每股收益範圍達到 1.85 美元至 2 美元。

The updated EPS outlook includes a weighted average share count of approximately 214 million, which includes the previous mentioned ASR. For the second quarter, we expect a slight sequential increase in sales and adjusted EPS over the first quarter. On a year-over-year basis, Q2 organic sales is expected to decline as the prior year included the benefit of some back order recovery and a better capital equipment demand environment.

更新後的 EPS 展望包括約 2.14 億股的加權平均股數，其中包括前面提到的 ASR。對於第二季度，我們預計銷售額和調整後的每股收益將比第一季度略有環比增長。與去年同期相比，第二季度的有機銷售額預計將下降，因為前一年包括一些延期交貨訂單恢復和更好的資本設備需求環境的好處。

While we anticipate fluctuations in our quarterly sales performance, we expect the first half of the year to show organic sales growth over the prior year period. We are confident in the progress we're making. We remain cautious on the external environment, particularly with capital equipment. -- as well as the overall macro challenges in certain markets such as China, Brazil and Australia. Wrapping up my second quarter comments, we expect EBITDA margins will be at least 16%.

雖然我們預計季度銷售業績會出現波動，但我們預計今年上半年的銷售額將比去年同期有機增長。我們對我們正在取得的進展充滿信心。我們對外部環境保持謹慎，尤其是資本設備。 ——以及中國、巴西和澳大利亞等特定市場的整體宏觀挑戰。總結我的第二季度評論，我們預計 EBITDA 利潤率將至少為 16%。

Let's move to Slide 12 to quickly touch on upcoming changes to our segment structure. Starting in our second quarter, we'll begin reporting using a new segment structure. The new structure will include 3 dental segments, which are; Connected Technology Solutions, Implant and Orthodontic solutions and Essential Dental Solutions. Wellspect HealthCare, which operates in the continence care market for urinary and bowel dysfunction will be the fourth segment. The revised structure aligns with the new operating model that we detailed on our last earnings call, and we believe will provide greater transparency in our financial reporting. And with that, I'll now turn the call back to Simon.

讓我們轉到幻燈片 12，快速了解我們的細分結構即將發生的變化。從第二季度開始，我們將開始使用新的細分結構進行報告。新結構將包括 3 個牙齒部分，它們是；互聯技術解決方案、種植體和正畸解決方案以及基本牙科解決方案。 Wellspect HealthCare 在泌尿和腸道功能障礙失禁護理市場開展業務，將成為第四部分。修訂後的結構與我們在上次財報電話會議上詳述的新運營模式保持一致，我們相信這將使我們的財務報告更加透明。有了這個，我現在將電話轉回給西蒙。

Thank you, Glenn. Moving on to our strategic update, starting on Slide 14. First, I want to reiterate our strategy, to 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. Said simply, to fulfill our strategy, we must focus on a simple, more secure and connected workflow experience that our clinic and lab customers trust to deliver better treatment journeys and patient outcomes.

謝謝你，格倫。繼續我們的戰略更新，從幻燈片 14 開始。首先，我想重申我們的戰略，即通過數字化牙科工作流程、推動產品和服務創新以及通過敬業和多元化的員工隊伍提供卓越的客戶和患者體驗來轉變牙科。簡而言之，為了實現我們的戰略，我們必須專注於簡單、更安全和互聯的工作流程體驗，我們的診所和實驗室客戶相信這種體驗可以提供更好的治療過程和患者結果。

As we execute on our strategy, we continue to be intently focused on improving the delivery of our products and services in a predictable, repeatable and reliable manner, and we are making good progress. On Slide 15, you will see the 2023 and beyond strategic objectives that I shared with you at the start of this year. We are focused on 5 core tactical and strategic objectives which are to: one, deliver on our annual growth and margin commitments; two, enhance and sustain profitability; three, accelerate enterprise digitalization; four, win in Aligners & Implants and five, create a high-performance culture. This is our true north. And as we make progress on these objectives, we have our eye on fulfilling our commitment to return to industry growth and increase profitability.

在執行我們的戰略時，我們繼續專注於以可預測、可重複和可靠的方式改進我們的產品和服務的交付，並且我們正在取得良好進展。在幻燈片 15 上，您將看到我在今年年初與您分享的 2023 年及以後的戰略目標。我們專注於 5 個核心戰術和戰略目標，即：第一，實現我們的年度增長和利潤承諾；二、增強和維持盈利能力；三、加速企業數字化；第四，在牙套和植入物領域取勝，第五，打造高績效文化。這是我們真正的北方。隨著我們在這些目標上取得進展，我們著眼於履行我們的承諾，恢復行業增長並提高盈利能力。

Turning to Slide 16 for a progress update on our objectives. Starting with our overarching goal to achieve our annual growth and margin commitments, Q1 provided us with a good start, showcasing our focus on fulfilling commitments. In February, we announced our new operating model and restructuring plan. In Q1, we made meaningful progress on the transformation work. with workforce reductions largely complete in regions outside of Europe. We are in active discussions with applicable workers' councils to align on our plans. As we look for other opportunities to enhance and sustain profitability, we have already identified and are executing on some network and operational simplification opportunities. Enterprise digitalization is critical to our success, and we have made significant progress in this regard. We received Board approval for our multiyear ERP implementation project and have selected the next-generation platform.

轉到幻燈片 16，了解我們目標的最新進展。從我們實現年度增長和利潤承諾的總體目標開始，第一季度為我們提供了一個良好的開端，展示了我們對履行承諾的關注。 2 月，我們宣布了新的運營模式和重組計劃。第一季度，我們在轉型工作上取得了有意義的進展。在歐洲以外的地區，勞動力裁員基本完成。我們正在與適用的工人委員會積極討論，以調整我們的計劃。當我們尋找其他機會來提高和維持盈利能力時，我們已經確定並正在執行一些網絡和運營簡化機會。企業數字化對我們的成功至關重要，我們在這方面取得了重大進展。我們的多年 ERP 實施項目獲得了董事會的批准，並選擇了下一代平台。

On our strategic objective to win in Aligners & Implants, we are seeing great traction with another quarter of double-digit performance in both SureSmile and Byte. Byte not only delivered top line growth, but also made significant strides on improving operational performance. With SureSmile, we have a clinically differentiated solution compared to the other offerings on the market. These clinical benefits, which include fewer refinements and shorter treatment time are resonating with customers and contributed to the strong continued growth in this business in Q1. We launched DS OmniTaper in the U.S. this past quarter. With this product, we now have a full range of premium implants, all of which are harmonized with one EV digitally enabled connection.

為了實現我們在對準器和植入物領域獲勝的戰略目標，我們看到 SureSmile 和 Byte 的另外四分之一的兩位數業績帶來了巨大的吸引力。字節不僅實現了收入增長，而且在提高運營績效方面也取得了重大進展。與 SureSmile 相比，我們擁有與市場上其他產品相比具有臨床差異化的解決方案。這些臨床益處（包括更少的改進和更短的治療時間）引起了客戶的共鳴，並促成了第一季度該業務的強勁持續增長。上個季度，我們在美國推出了 DS OmniTaper。有了這款產品，我們現在擁有全系列的優質植入物，所有這些都與一個 EV 數字化連接相協調。

While VBP in China has been a headwind for us since September, securing a winning position in the [VBP] process will allow us an opportunity to acquire incremental volume that will support long-term growth in our business. We are also working to create a high-performance culture. This is critical to enable achievement of our other strategic objectives and foundational to driving long-term value creation for our stakeholders.

雖然自 9 月以來，中國的 VBP 一直是我們的逆風，但在 [VBP] 流程中取得成功將使我們有機會獲得增量銷量，從而支持我們業務的長期增長。我們還致力於打造高績效文化。這對於實現我們的其他戰略目標至關重要，也是推動為我們的利益相關者創造長期價值的基礎。

Our new operating model is taking shape, providing clarity, efficiency and putting the customer back at the center of everything we do with compliance at the forefront. This operating model gives meaning to the KPIs that we have identified and rolled out across the organization. It enables us to set the right expectations and guardrails with clear lines of measurement and accountability.

我們新的運營模式正在形成，提供清晰、高效，並將客戶重新置於我們所做的一切的中心，並將合規性放在首位。這種運營模式為我們在整個組織中確定並推出的 KPI 賦予了意義。它使我們能夠通過明確的衡量和問責制來設定正確的期望和護欄。

I am also excited to announce that as part of our new operating model, we are elevating the role of quality within our organization, and we have hired a new SVP of quality and regulatory affairs. This individual will be part of my leadership team and will be key to ensuring that customers and quality are at the center of everything we do. As a team, we have made solid progress on our strategic objectives. We remain confident that our transformation plans combined with more normalized market conditions, will position Dentsply Sirona to grow revenue in line with the market while also increasing profitability.

我也很高興地宣布，作為我們新運營模式的一部分，我們正在提升質量在我們組織中的作用，並且我們聘請了一位新的質量和監管事務高級副總裁。此人將成為我領導團隊的一員，並將成為確保客戶和質量處於我們所做一切工作中心的關鍵。作為一個團隊，我們在戰略目標方面取得了堅實的進展。我們仍然相信，我們的轉型計劃與更加正常化的市場條件相結合，將使 Dentsply Sirona 的收入增長與市場同步，同時提高盈利能力。

The combination of these positive factors can enable Dentsply Sirona to deliver meaningful earnings improvement with adjusted earnings per share of $3 targeted in 2026. Now let me close with a few remarks on Slide 17. The year is off to a strong start. While 2023 remains a transition year with a challenging macro environment, we are increasingly optimistic about what we can deliver. For that reason, we are raising the low-end of our full year outlook.

這些積極因素的結合可以使 Dentsply Sirona 實現有意義的收益改善，目標是在 2026 年調整後的每股收益為 3 美元。現在讓我對幻燈片 17 發表一些評論。今年開局良好。儘管 2023 年仍然是充滿挑戰的宏觀環境的過渡年，但我們對我們能夠實現的目標越來越樂觀。出於這個原因，我們提高了全年展望的下限。

We are making significant progress on our transformation and strategic objectives. We committed to taking decisive action at Dentsply Sirona, and we are boldly putting our plans into motion to improve the company and its performance. This is just the beginning. There is more hard work ahead of us to transform our company, but we are confident that our plans place the company on the right path.

我們在轉型和戰略目標方面取得了重大進展。我們承諾在 Dentsply Sirona 採取果斷行動，我們正在大膽地將我們的計劃付諸實施，以改善公司及其績效。這僅僅是個開始。我們要對公司進行轉型還有更多艱鉅的工作要做，但我們相信我們的計劃會讓公司走上正確的道路。

Progress will be aided by our collective experience, the support of the Board and the belief that has been instilled in our leadership. Later this year, we look forward to sharing more details with you all at our upcoming Investor Day on November 9 in Charlotte. And with that, I will open it up for questions.

我們的集體經驗、董事會的支持以及我們領導層灌輸的信念將有助於取得進展。今年晚些時候，我們期待在即將於 11 月 9 日在夏洛特舉行的投資者日上與大家分享更多詳細信息。有了這個，我會打開它來提問。

(Operator Instructions) And our first question comes from the line of Elizabeth Anderson with Evercore.

（操作員說明）我們的第一個問題來自 Evercore 的 Elizabeth Anderson。

I -- one, obviously, this was a nice outperformance in the first quarter, especially given everyone's worries about the dental market. And we're seeing -- you raised the low-end of your guidance. Can you talk about sort of trends that you saw either sort of towards the end of the quarter or into April, just as people kind of continue to wonder about the shorter-term volatility. And then secondly, can you also talk about the Aligner profitability. Where is the real drivers of that? And kind of if you can talk about sort of when you expect that to be sort of positive from a like corporate margin contributor, that would be helpful.

我 - 一個，顯然，這是第一季度的出色表現，特別是考慮到每個人都對牙科市場感到擔憂。我們看到 - 你提高了指導的低端。您能否談談您在本季度末或進入 4 月時看到的某種趨勢，就像人們繼續對短期波動感到疑惑一樣。其次，您能否也談談 Aligner 的盈利能力。真正的驅動因素在哪裡？如果你能談談你希望從類似的公司保證金貢獻者那裡得到某種積極的東西，那將是有幫助的。

Elizabeth, it's Glenn. Relative to trends in the quarter, I think we saw really strong trends in January and February. March, not so much. So March was a little bit weaker than the first 2 months. But as we look forward to April, we're actually seeing a very stable environment. So April looks good as well here. So trending-wise, obviously, we outperformed the quarter A lot of that came in, I would say, January and February, but we're seeing positive trends even in April here.

伊麗莎白，是格倫。相對於本季度的趨勢，我認為我們在 1 月和 2 月看到了非常強勁的趨勢。三月，沒那麼多。所以 3 月比前 2 個月略微疲軟。但當我們期待 4 月時，我們實際上看到了一個非常穩定的環境。所以四月在這裡看起來也不錯。很明顯，從趨勢上看，我們的表現優於本季度，我想說，一月和二月有很多，但即使在四月，我們也看到了積極的趨勢。

So that's a good sign overall. And when you think about the outperformance in the first quarter, clearly, the trends were very favorable in Consumables, improved pace in traffic, procedure recovery was very strong, and it was pretty much across the board across all Consumable categories. So our Endo and Resto business was actually up double digits. We saw really good performance in both the U.S. and Europe, Preventive was up double digits as well. We did have some easier comps when you look at our consumables business.

所以這總體上是一個好兆頭。當你考慮第一季度的出色表現時，很明顯，消耗品的趨勢非常有利，流量速度加快，程序恢復非常強勁，而且幾乎涵蓋了所有消耗品類別。所以我們的 Endo 和 Resto 業務實際上增長了兩位數。我們在美國和歐洲都看到了非常好的表現，Preventive 也增長了兩位數。當您查看我們的消耗品業務時，我們確實有一些更容易的比較。

So obviously, I mentioned Omicron impacted the first quarter of last year in a negative way. So that helped the year-over-year growth rates. And we have put forward some price increases last year and this year, that will take effect in May. So we probably saw a bit of a pre-buy in certain cases with dealers on some consumables. But on the whole, we were delighted to put up almost 10% growth in consumables.

很明顯，我提到 Omicron 對去年第一季度產生了負面影響。因此，這有助於實現同比增長率。我們在去年和今年提出了一些價格上漲，將於 5 月生效。因此，在某些情況下，我們可能會看到經銷商對某些消耗品進行了一些預購。但總的來說，我們很高興在消耗品方面實現近 10% 的增長。

So the trends there were quite positive. Relative to the Aligner profitability, I think the key around this is our Byte business. And the most important thing is really looking at the quality of the funnel and how we're targeting customers. And we're seeing an increase in our overall customer conversion rates, which really helped to reduce customer acquisition costs and drive increased profitability.

所以那裡的趨勢非常積極。相對於 Aligner 的盈利能力，我認為關鍵是我們的 Byte 業務。最重要的是真正關注渠道的質量以及我們如何定位客戶。我們看到整體客戶轉化率有所提高，這確實有助於降低客戶獲取成本並提高盈利能力。

So when you look at our outperformance on EPS, clearly, a lot of it was due to the stronger-than-expected organic performance, but also we did see a nice improvement in our Aligners business, in particular Byte, and we expect that to continue as we go forward here.

因此，當您查看我們在 EPS 上的出色表現時，很明顯，這在很大程度上是由於有機表現強於預期，但我們也確實看到我們的 Aligners 業務有了很好的改善，尤其是 Byte，我們預計繼續我們在這裡前進。

(Operator Instructions) And our next question comes from the line of Jeff Johnson with Baird.

（操作員說明）我們的下一個問題來自 Jeff Johnson 與 Baird 的對話。

And Glenn, maybe just following up on the 2Q question there from Elizabeth. Just your guidance in negative organic growth in the quarter, you just put up to 5.1%. And I understand what you're saying on maybe the price increase pulling some business forward, but you also talked about a solid April. I guess when I look at your 3-year stack comps, they actually are fairly stable in first, second and third quarter. So not a whole lot of volatility going from one quarter to the other on kind of the comps you're going to come up against. So what would change that business by a full, call it, 5, 6, 7 points wherever you're guiding to end up in that second quarter?

格倫，也許只是跟進伊麗莎白提出的 2Q 問題。只是你對本季度負有機增長的指導，你只提出了 5.1%。我理解你所說的價格上漲可能會推動一些業務向前發展，但你也談到了穩固的 4 月。我想當我查看你的 3 年堆棧組合時，它們實際上在第一、第二和第三季度相當穩定。因此，從一個季度到另一個季度，您將要遇到的那種組合併沒有太大的波動。那麼，在第二季度結束時，無論您指導的是什麼，都會使該業務完全改變，稱之為 5、6、7 點？

Yes. So Jeff, thanks for the question. On a sequential basis, we did mention that we expect to see a slight sequential increase in both revenue and EPS. Some of it because of the really strong performance in the first quarter that being somewhat timing related for consumables. But keep in mind, last year's second quarter is our toughest comp quarter. We did see some back order recovery in the prior year quarter.

是的。傑夫，謝謝你提出這個問題。在連續的基礎上，我們確實提到我們預計收入和每股收益將略有連續增長。部分原因是第一季度的強勁表現與消耗品的時間有關。但請記住，去年的第二季度是我們最艱難的季度。我們確實在去年同期看到了一些延期交貨訂單的恢復。

And overall, when we look at the equipment market, last year is more favorable versus this year. We're being very cautious on larger equipment spending, especially Imaging as an example. So we feel quite good about our overall first half of the year performance in our guidance. We do expect to see a bit of a decline in organic sales growth based upon our guidance, and we're going to continue to be cautious on the Equipment environment. But just keep in mind, for the first half of the year, when we look at what we said back in February, we do expect to see organic growth. We do expect to outperform our initial comments on the first half of the year.

總的來說，當我們看設備市場時，去年比今年更有利。我們對更大的設備支出非常謹慎，尤其是成像。因此，在我們的指導中，我們對上半年的整體表現感到非常滿意。根據我們的指導，我們確實預計有機銷售增長會略有下降，我們將繼續對設備環境持謹慎態度。但請記住，今年上半年，當我們回顧 2 月份所說的內容時，我們確實預計會看到有機增長。我們確實希望在今年上半年的表現優於我們最初的評論。

And we're being cautious because it's still very early in the year. Having said that, we do expect to see in the second quarter, an improvement in our China business, both on a sequential and a year-over-year basis. And we do expect to post growth in our Ortho business given the strong momentum that we have. But again, we're going to continue to be very cautious on the Equipment environment given what we're seeing from a recessionary perspective and also a macro slowdown. Sam, I don't know if you want to add anything.

我們很謹慎，因為現在還很早。話雖如此，我們確實希望在第二季度看到我們的中國業務在環比和同比基礎上有所改善。鑑於我們擁有的強勁勢頭，我們確實希望我們的 Ortho 業務實現增長。但同樣，鑑於我們從經濟衰退的角度以及宏觀經濟放緩所看到的情況，我們將繼續對設備環境非常謹慎。山姆，我不知道你是否想補充什麼。

Yes. Jeff, you all do your surveys. We've also started doing our own surveys. And we have a 1,600 dentist survey that we completed just in April in relation to technology and equipment and capital spend, there is still some bearishness from customers around the world in the U.S. and Australia, in particular, about their willingness to invest in some high-end capital equipment. So that's a factor in our consideration as we move into Q2 and beyond.

是的。傑夫，你們都做了你們的調查。我們也開始進行自己的調查。我們在 4 月份完成了一項關於技術和設備以及資本支出的 1,600 名牙醫調查，美國和澳大利亞的全球客戶仍然有些看跌，特別是他們願意投資一些高- 終端資本設備。因此，當我們進入第二季度及以後時，這是我們考慮的一個因素。

All right. That's helpful. And then maybe just one follow-up question. But first, Simon, maybe you and I can just share each other surveys then if I share mine, maybe you'll get me yours back to, and that would be helpful. But just on the Implant business, what was the implant number ex China? I don't think I heard that. And I'm sure you saw overnight Straumann put up 3%, 3.5% implant growth might have been a little below that, I guess, depending on their ortho business.

好的。這很有幫助。然後可能只是一個後續問題。但首先，西蒙，也許你和我可以互相分享調查，然後如果我分享我的調查，也許你會把你的調查還給我，這會很有幫助。但就植入業務而言，中國以外的植入數量是多少？我不認為我聽到了。而且我敢肯定你看到一夜之間 Straumann 提出了 3%，3.5% 的種植體增長可能略低於這個數字，我猜，這取決於他們的矯正業務。

So what is the path back from your high single-digit decline to Straumann's kind of low single-digit organic growth this quarter? What's the path back to getting closer to what I'm sure is kind of a market rate that Straumann is almost setting there with other one quarter report?

那麼，從您的高個位數下降到本季度 Straumann 的低個位數有機增長的路徑是什麼？回到接近我確定的市場利率的途徑是什麼，Straumann 幾乎在其他季度報告中設定了這種市場利率？

Jeff, thanks for the question. Our implants business, excluding China, is down low single digits, largely due to the U.S. being down. And that's not surprising to us. It was in line with our expectations. The road for us to get back to growth really comes from 2 markets. So China being the first. And obviously, I think we all know the challenges of VBP for us in total in China, we were down 30% in the first quarter. The good news is we're seeing a really nice recovery as we exit Q1 and even stronger recovery in the month of April relative to our implants business in China.

傑夫，謝謝你的提問。我們的植入物業務（不包括中國）下降了個位數，這主要是由於美國的下滑。這對我們來說並不奇怪。這符合我們的預期。我們恢復增長的道路真正來自兩個市場。所以中國是第一個。顯然，我想我們都知道 VBP 在中國給我們帶來的挑戰，我們在第一季度下降了 30%。好消息是，隨著我們退出第一季度，我們看到了非常好的複蘇，相對於我們在中國的植入物業務，4 月份的複蘇更為強勁。

So we are much more optimistic, but I'm not yet reflecting that in the full year numbers because I want to see some more data points before I get too bullish on China, but the signs of recovery are there, especially volume in Implants in China. So we feel good about that. The other part is the U.S. business, and we've lost share over the last couple of years in Implants we've underinvested.

所以我們更加樂觀，但我還沒有在全年數據中反映這一點，因為在我過於看好中國之前我想看到更多的數據點，但復甦的跡像已經存在，尤其是植入物的數量中國。所以我們對此感覺很好。另一部分是美國業務，過去幾年我們在投資不足的植入物領域失去了份額。

And as we spoke about previously, we've made significant investments in our commercial organization to add more resources, add more reps. We have a significant training program that we're rolling out. We've got all of our Implant reps, in fact, coming in to Charlotte in the month of May, which is going to be another step forward here. Our territories are now filled. And I am expecting to see better Implants performance starting here in the second quarter in both the U.S. and China.

正如我們之前所說，我們已經對我們的商業組織進行了大量投資，以增加更多資源，增加更多代表。我們正在推出一項重要的培訓計劃。事實上，我們所有的植入代表都在 5 月份來到夏洛特，這將是這裡向前邁出的又一步。我們的領土現在已經滿了。我期待從第二季度開始在美國和中國看到更好的植入物性能。

So yes, we were down in the implants, down low single digits if you pull out China. I think as we move forward, we should be talking about growth in our implants business and showing sequential improvement from this point forward. Simon, do you want to add anything?

所以是的，如果你撤出中國，我們的植入物就會下降，下降個位數。我認為，隨著我們向前邁進，我們應該談論我們植入物業務的增長，並展示從這一點開始的連續改進。西蒙，你想補充什麼嗎？

Yes, Jeff, just one more comment on implants in China. We have not been selective in terms of the implants that we offer in China as a result of VBP. All the products that were offered by Dentsply Sirona in China pre-VBP continue to be offered by Dentsply Sirona in China post-VBP. So customers can choose whatever product they use and haven't been forced on any particular corridor.

是的，Jeff，就中國的植入物再發表一點意見。由於 VBP，我們在中國提供的植入物方面沒有選擇性。 Dentsply Sirona 在 VBP 之前在中國提供的所有產品在 VBP 之後繼續由 Dentsply Sirona 在中國提供。因此，客戶可以選擇他們使用的任何產品，而不會被迫進入任何特定的渠道。

Next up, we have Erin Wright from Morgan Stanley.

接下來，我們有來自摩根士丹利的 Erin Wright。

Can you quantify the distributor timing dynamic in across the CAD/CAM segment? Was that primarily U.S.? And how should we be thinking about the quarterly progression? And just broadly speaking, on equipment demand trends and how the order book is shaping up? How is the traction at IDS? And if you could give us some broad sense of how you're seeing things there and how we should think about the quarterly progression across core equipment?

您能否量化整個 CAD/CAM 細分市場中的分銷商時間動態？那主要是美國嗎？我們應該如何考慮季度進展？從廣義上講，關於設備需求趨勢以及訂單如何形成？ IDS 的吸引力如何？如果你能告訴我們你是如何看待那裡的事情的，以及我們應該如何考慮核心設備的季度進展？

Yes. A lot of the distributor timing is related to the U.S. business. So that is specific to the U.S. And as we talked about throughout 2022, we were reducing our dealer inventory levels for CAD/CAM. And so we exited 2022 in a very good position. And so now we're seeing essentially retail demand translate to wholesale demand at our dealers.

是的。很多分銷商的時機與美國業務有關。所以這是美國特有的。正如我們在整個 2022 年所討論的那樣，我們正在降低 CAD/CAM 的經銷商庫存水平。因此，我們以非常有利的位置退出了 2022 年。所以現在我們看到零售需求基本上轉化為我們經銷商的批發需求。

But we did see a good pickup. So when you talk about timing, it's really last year was a low quarter versus this year and seeing more normalized inventory levels. Overall, when we look at just the volume gains, we did see good volume gains in our DI business. Our CEREC mills performed quite well in the quarter. And maybe we could circle back to that with Simon in just a few minutes. Obviously, the concerns in our business are really around the recessionary environment, higher interest rates and the effect it's having on the higher-priced equipment such as Imaging. And so we're being very cautious. We were down in the quarter on our Imaging equipment. So we're being cautious as we go forward.

但我們確實看到了一個很好的皮卡。因此，當你談論時機時，去年真的是一個比今年低的季度，而且庫存水平更加正常化。總的來說，當我們只看銷量增長時，我們確實看到了 DI 業務的銷量增長。我們的 CEREC 工廠在本季度表現良好。也許我們可以在幾分鐘內與西蒙一起回到那個話題。顯然，我們業務中的擔憂實際上是圍繞經濟衰退環境、更高的利率及其對成像等高價設備的影響。所以我們非常謹慎。我們在本季度的成像設備方面表現不佳。因此，我們在前進時保持謹慎。

But I think, ultimately, there's probably more upside than downside in our forecast relative to equipment. But we're going to continue to be cautious until we see more positive data points. So with that, Simon, do you want to make any additional comments?

但我認為，最終，我們對設備的預測可能利大於弊。但我們將繼續保持謹慎，直到我們看到更多積極的數據點。那麼，西蒙，你想發表任何補充意見嗎？

Yes. So just 2 comments, Erin. We are getting traction now on Primescan Connect, particularly in Europe, where we saw sequential improvement month-over-month in the quarter. And then there's a lot of noise and discussion in the marketplace about milling versus printing. And we continue to be of the opinion here that milling for Crowns offers more durability. 3D printing has much lower strength than a mill crown, the speed is quicker, which, as we know, is important for customers, particularly when you think of the impact on staffing levels in the dentist market today.

是的。所以只有 2 條評論，艾琳。我們現在在 Primescan Connect 上越來越受歡迎，特別是在歐洲，我們在該季度看到了逐月的環比改善。然後市場上有很多關於銑削與印刷的噪音和討論。我們仍然認為，為牙冠銑削可提供更高的耐用性。 3D 打印的強度比磨牙冠低得多，速度更快，正如我們所知，這對客戶很重要，尤其是當您考慮對當今牙醫市場人員配置水平的影響時。

And then the aesthetics and the accuracy of milling versus printing is very much in millings' favor, where we have a broader range of colors, for example. So we will be on the front foot here with respect to milling versus 3D printing on a go-forward basis. We continue to believe that milling is the best option for patients and we're pleased to have the market-leading mill in our portfolio.

然後銑削與印刷的美學和準確性非常受銑削的青睞，例如，我們有更廣泛的顏色範圍。因此，在前進的基礎上，我們將在銑削與 3D 打印方面處於領先地位。我們仍然相信研磨機是患者的最佳選擇，我們很高興在我們的產品組合中擁有市場領先的研磨機。

And then, Erin, on your question on IDS, I was -- I had the pleasure of joining my first IDS in Germany this past go around. And we did see a lot of good momentum and customer interest in our DS core software, how it's digitalizing the entire workflow for our customers. So really good interest and progress on getting orders for Primescan Connect coming out of our DS. And so we were really enthusiastic about a lot of the progress and customer feedback we received at that convention.

然後，艾琳，關於你關於 IDS 的問題，我很高興過去在德國加入了我的第一個 IDS。我們確實看到了很多良好的勢頭和客戶對我們的 DS 核心軟件的興趣，它如何為我們的客戶數字化整個工作流程。因此，從我們的 DS 獲得 Primescan Connect 訂單的興趣和進展非常好。因此，我們對在那次大會上收到的許多進展和客戶反饋充滿熱情。

Great. And -- if I could just ask one more just on the portfolio optimization. Where are we at now with derationalization and to the extent there are divestitures, can you speak to use of proceeds here?

偉大的。而且 - 如果我能再問一個關於投資組合優化的問題。我們現在在哪裡進行非理性化，在資產剝離的範圍內，你能談談這裡的收益使用嗎？

Yes. So I'll take the SKU rationalization piece, Erin. We've made very good progress on Resto and Endo. We haven't eliminated any SKUs, that's a work in progress. As we have noted before, we're going to be very diligent and thoughtful about where and when we reduce SKUs. But we have, as we've noted all the data available to us now, and we are beginning to test in different markets if we can eliminate specific SKUs.

是的。因此，艾琳，我將接受 SKU 合理化部分。我們在 Resto 和 Endo 方面取得了很好的進展。我們還沒有消除任何 SKU，這是一項正在進行的工作。正如我們之前所指出的，我們將非常勤奮和深思熟慮地考慮何時何地減少 SKU。但是我們已經註意到了我們現在可用的所有數據，並且如果我們可以消除特定的 SKU，我們將開始在不同的市場進行測試。

As we did note in our prepared remarks, we have seen some opportunities for network optimization, and we have begun to take those opportunities in a couple of sites this past quarter, and those sites have been notified. And then I'll let Glenn take the other part of that question.

正如我們在準備好的評論中所指出的那樣，我們已經看到了一些網絡優化的機會，並且在上個季度我們已經開始在幾個站點中利用這些機會，並且已經通知了這些站點。然後我會讓 Glenn 回答這個問題的另一部分。

Yes. Obviously, in our last earnings call, we talked about a significant amount of interest in our Wellspect asset. So we're still evaluating different alternatives relative to what to do with that asset, one of which could be divesting, another could be keeping the asset because it is very attractive. It's performing very well, both in terms of top line and bottom line.

是的。顯然，在我們上次的財報電話會議上，我們談到了對我們的 Wellspect 資產的大量興趣。因此，我們仍在評估與該資產相關的不同替代方案，其中一種可能是剝離，另一種可能是保留該資產，因為它非常有吸引力。它的表現非常好，無論是在頂線還是底線方面。

So no decisions have been made around that. To the extent we were to divest that asset, obviously, use of proceeds would likely go towards paying down debt and possibly buying back shares. But again, no decision made on Wellspect. I would also say that we've concluded the rest of our evaluation on the portfolio at this point in time. We do not expect any more significant divestitures coming out of that review.

因此，尚未就此做出任何決定。就我們要剝離該資產而言，顯然，收益的使用可能會用於償還債務並可能回購股票。但同樣，沒有對 Wellspect 做出任何決定。我還要說的是，此時我們已經完成了對投資組合的其餘評估。我們預計該審查不會出現任何更重大的資產剝離。

Having said that, just keep in mind, a portfolio review as part of an ongoing assessment that we do. It's not a one and done process. So as part of our regular cadence and operating model, we do a continuous evaluation of portfolio. But for the initial go around, we've include it. And at this point in time, there's no further significant divestitures expected. Thank you for your questions.

話雖如此，請記住，投資組合審查是我們正在進行的評估的一部分。這不是一勞永逸的過程。因此，作為我們常規節奏和運營模式的一部分，我們會對投資組合進行持續評估。但對於最初的解決方案，我們將其包括在內。目前，預計不會有進一步的重大資產剝離。謝謝你的問題。

(Operator Instructions) And our next question comes from Brandon Vazquez with William Blair.

（操作員說明）我們的下一個問題來自 Brandon Vazquez 和 William Blair。

First, I just wanted to ask about -- or sorry, clear Aligners. And where are you guys seeing the most success? Maybe what channels specifically -- I'm curious if you could talk a little bit about what is it about your technology that is able to allow you to deliver these fewer refinements and shorter treatment times compared to the competition?

首先，我只是想問一下——或者抱歉，清除對準器。你們在哪裡看到最成功的？也許具體是什麼渠道——我很好奇你是否可以談談你的技術是什麼能夠讓你與競爭對手相比提供更少的改進和更短的治療時間？

Sure. I'll start and then maybe ask some others to comment. So I think first off, our aligners business had a record quarter, both SureSmile and Byte, not only did we see a double-digit sequential improvement, but obviously up 25% year-over-year. If I look at the 2 businesses, starting with SureSmile, I think a big part of the growth is driven by regional expansion, particularly in Europe. We also do have clinical differentiation of our product.

當然。我會開始，然後可能會請其他人發表評論。因此，我認為首先，我們的對準器業務在 SureSmile 和 Byte 方面都創下了創紀錄的季度業績，我們不僅看到了兩位數的環比增長，而且明顯同比增長了 25%。如果我看一下這兩項業務，從 SureSmile 開始，我認為增長的很大一部分是由區域擴張推動的，尤其是在歐洲。我們也確實對我們的產品進行了臨床區分。

And to give you some context, 3 out of 4 cases require no revision, which is a big deal in the Aligner space. And so we're really showing clinical differentiation that is driving increased market share, especially with the GPs. And so that's a big part of our growth story. We're also winning more with DSOs. So we've got a couple of DSO wins in the aligner space as well.

為了給你一些背景信息，4 個案例中有 3 個不需要修改，這在 Aligner 領域是一個大問題。因此，我們確實展示了推動市場份額增加的臨床差異化，尤其是與 GPs 的差異化。所以這是我們成長故事的重要組成部分。我們還通過 DSO 贏得了更多。因此，我們在對齊器領域也獲得了一些 DSO 勝利。

All of that is enabling us to have really strong growth coming out of SureSmile. On the Byte side, I think we're doing a much better job of targeting customers and driving better customer conversion rates that I mentioned earlier. In addition, we've rolled out our My Byte app, which is giving a full customer treatment plan to our customers, engages with them throughout the entire process.

所有這些都使我們能夠從 SureSmile 中獲得真正強勁的增長。在 Byte 方面，我認為我們在定位客戶和推動我之前提到的更好的客戶轉化率方面做得更好。此外，我們還推出了 My Byte 應用程序，為我們的客戶提供完整的客戶治療計劃，並在整個過程中與他們互動。

And we've also rolled out HyperByte, which is helping speed of treatment for customers on the direct-to-consumer side. So on the whole, we are capturing more market share in both direct-to-consumer and the GP space. And obviously, this is still an underpenetrated market in one of the fastest-growing areas because aesthetics are still a very fast-growing area in the dental space. Simon, do you want to make some further comments?

我們還推出了 HyperByte，這有助於加快直接面向消費者的客戶的處理速度。因此，總的來說，我們在直接面向消費者和 GP 領域都獲得了更多的市場份額。顯然，在增長最快的領域之一，這仍然是一個滲透不足的市場，因為美學仍然是牙科領域中增長非常快的領域。西蒙，你想做進一步的評論嗎？

Yes. So just -- we've spoken before about the investment that we've made in DSOs, adding some headcount there, and we had nice growth in that business in the first quarter. But one of the ways that we are winning with some of our DSO partners is through digital scanning and aligners. So we've had pretty robust traction where we place our Primescan product and then enable some of the DSOs to begin to drive their aligner business in a more meaningful way. We had good traction from that regard in our SureSmile business, in particular, in the first quarter.

是的。所以，我們之前已經談過我們在 DSO 上的投資，在那裡增加了一些員工，第一季度我們在該業務上取得了不錯的增長。但我們與一些 DSO 合作夥伴取得成功的方式之一是通過數字掃描和對準器。因此，我們在放置 Primescan 產品的地方獲得了相當強勁的牽引力，然後使一些 DSO 能夠開始以更有意義的方式推動他們的對準器業務。我們的 SureSmile 業務在這方面有很好的吸引力，特別是在第一季度。

Got it. And then can I go back to China for a second. If you look at -- I know you had a big exposure more to the private side of that market. Are price cuts spilling into the private side at all. I think we've heard a little bit of mix reviews on that. I know you guys kind of happy with volume increases to help offset these price declines? Like how are volume growth trends looking relative to your expectations, especially as we move through into the back half of the year?

知道了。然後我可以回中國一秒鐘嗎？如果你看 - 我知道你對該市場的私人方面有更多的敞口。降價是否會波及私營部門？我想我們已經聽到了一些對此的混合評論。我知道你們對增加銷量以幫助抵消這些價格下跌感到滿意嗎？比如銷量增長趨勢與您的預期相比如何，尤其是在我們進入下半年的時候？

Yes. So keep in mind, most of our business in China is in the private sector. And yes, we are seeing the price spillover into the private sector. As we previously talked about, we're seeing price reductions anywhere from 35% to 40%, and that's in fact, what's happened. The good news is we are a winner in the VBP space, and we are seeing a pickup in volumes, and it's sequentially getting significantly better here in the month of April.

是的。所以請記住，我們在中國的大部分業務都在私營部門。是的，我們看到價格溢出到私營部門。正如我們之前談到的那樣，我們看到價格下降了 35% 到 40%，事實上，這已經發生了。好消息是我們是 VBP 領域的贏家，我們看到交易量有所回升，並且在 4 月份這裡連續好轉。

But again, I don't want to get too excited yet because I need to see more proof points and more data points before I become more bullish. But definitely, the volumes are picking up in the short term here. We're very encouraged by what we're seeing in the month of April. I don't expect the volume to offset the price reduction in the second quarter for Implants. So I do expect Implants overall in China will be down even though the total business in China should be flat or up.

但同樣，我還不想太興奮，因為在我變得更加樂觀之前，我需要看到更多的證據點和更多的數據點。但可以肯定的是，短期內這裡的交易量正在回升。我們對 4 月份所看到的情況感到非常鼓舞。我預計銷量不會抵消第二季度植入物的降價。因此，我確實預計中國的整體植入量會下降，儘管中國的總業務應該持平或上升。

But I think once we get to the end of this year, the volume should offset the price reduction. And I previously made a comment last call that I expect China to be flat on a full year basis despite being down 30% in the first quarter. I think my view right now is China should be growing this year, given what I'm seeing right now in the last couple of months. So we're more bullish on China, but still cautious. Thanks for your question. Operator, we had another question?

但我認為，一旦我們到了今年年底，銷量應該會抵消降價。我之前在上次電話會議上發表評論說，儘管第一季度下降了 30%，但我預計中國全年將持平。我認為我現在的觀點是，鑑於我在過去幾個月中所看到的情況，中國今年應該會增長。所以我們更看好中國，但仍持謹慎態度。謝謝你的問題。接線員，我們還有一個問題？

Yes. Our next question comes from the line of John Block with Stifel.

是的。我們的下一個問題來自 John Block 與 Stifel 的對話。

Great. Simon or Glenn, just general high level, when you guys see return to dental industry growth for the company, how do you view that industry growth? And I ask because the industry growth really deviates so much depending on your weightings for Aligners, Implants, Equipment, et cetera. So when we think about your portfolio, what do you think that industry growth looks like. And then over what period of time do you expect to get there?

偉大的。西蒙或格倫，只是一般的高層，當你們看到公司恢復牙科行業增長時，您如何看待該行業的增長？我之所以問，是因為行業增長確實存在很大偏差，具體取決於您對對準器、植入物、設備等的權重。因此，當我們考慮您的投資組合時，您認為行業增長是什麼樣的。然後你希望在多長時間內到達那裡？

Yes. So John, it's Simon. I would say on average, we think it's growing in the 3% to 5% range. Clearly, there are hotspots within that, aligners in particular, maybe some of the mills and the 3D printing is also growing at a faster clip. But then we have areas that are in the 1% to 2% range in the Consumable business. We've spoken before about getting back to $3 of EPS by 2026.

是的。約翰，是西蒙。我想說平均而言，我們認為它在 3% 到 5% 的範圍內增長。顯然，其中存在熱點，尤其是對準器，也許一些工廠和 3D 打印也在以更快的速度增長。但是我們在消耗品業務中有 1% 到 2% 的區域。我們之前談到過到 2026 年將每股收益恢復到 3 美元。

As we noted, we believe we're on track to that. And we've previously commented that getting back to market growth in that time frame is a key driver to getting to that $3 of EPS in '26. So that's the kind of time frame that we are thinking about it. As we've noted before, we have transformation work to get through. We now have ERP to get through as well. So there is much hard work to do for us here to get there. But we are -- our confidence is increasing in our ability to get this done and to move Dentsply Sirona back to that market growth rate.

正如我們所指出的，我們相信我們正在朝著這個方向前進。我們之前曾評論過，在那個時間範圍內恢復市場增長是在 26 年實現每股收益 3 美元的關鍵驅動力。這就是我們正在考慮的時間框架。正如我們之前所指出的，我們有轉型工作要完成。我們現在也有 ERP 可以通過。因此，要到達那裡，我們需要做很多艱苦的工作。但我們 - 我們對完成這項工作並將 Dentsply Sirona 恢復到該市場增長率的能力的信心正在增強。

And then I think the second one, Glenn might be a little bit more for you. But I think the investments for the quarter were a $0.10 drag year-over-year, I don't believe the $0.25 that you called out last quarter change. So the $0.25 is unchanged for the year. How do we think about the cadence? In other words, is this sort of another dime or so for 2Q turn sort of flattish in the 3Q and exit the year, call it accretive? And sort of the follow-on to that would be, Glenn, as a function of that cadence that I just laid out, is there any more specific color on 2Q EPS as a result of those investments?

然後我認為第二個，Glenn 可能更適合你。但我認為本季度的投資同比下降了 0.10 美元，我不相信你上個季度所說的 0.25 美元的變化。所以 0.25 美元全年不變。我們如何看待節奏？換句話說，對於 2Q 轉而在 3Q 和退出這一年來說，這是否又是一角錢，稱之為增生？ Glenn 的後續行動是，根據我剛剛提出的節奏，由於這些投資，第二季度 EPS 是否有更具體的顏色？

Yes, I don't want to give too much specifics on EPS guide for commercial investments only to say that obviously, we expect it to continue throughout the remainder of the year. But keep in mind, we should have offsets now starting in the second quarter with our restructuring program, right? So part of the investments and the reason why we had to do the restructuring was to fund those investments, whether it be North America commercial sales, DSOs or ERP systems, compliance, et cetera.

是的，我不想就商業投資的 EPS 指南提供太多細節，只是想明確地說，我們預計它會在今年餘下時間繼續。但請記住，我們現在應該從第二季度開始通過我們的重組計劃進行抵消，對嗎？因此，部分投資以及我們必須進行重組的原因是為這些投資提供資金，無論是北美商業銷售、DSO 還是 ERP 系統、合規性等。

So yes, the commercial investments are going to be with us from a headwind perspective for the rest of this year. But we should start to see the restructuring savings kick in and be much more meaningful in the back half of the year. So when we look at the EPS cadence, we do expect to see a slight sequential increase in EPS in Q2.

所以是的，從今年剩餘時間的逆風角度來看，商業投資將與我們同在。但我們應該開始看到重組節省的資金開始發揮作用，並且在今年下半年變得更加有意義。因此，當我們查看 EPS 節奏時，我們確實預計第二季度 EPS 會略有環比增長。

And then we should see a much better performance when those restructuring savings kick in, in Q3 and Q4. Keep in mind, the reason why the restructuring savings happen later this year is a lot of what Simon had in his prepared remarks around still having to get through the workers' council approvals in Europe, which is where a large part of the savings come from.

然後，當重組節省的資金在第三季度和第四季度開始出現時，我們應該會看到更好的表現。請記住，今年晚些時候發生重組節餘的原因很多是西蒙在他準備好的發言中談到仍需通過歐洲工人委員會的批准，這是大部分節餘的來源.

So that work is still ongoing. It's one of the reasons why we're still being conservative in our EPS guide until we get through that work in those discussions. We want to make sure that we don't have any delays or timing issues pushing out. So once that's finish, I think we'll be much more confident that our EPS can be achieved or exceeded. But that's still work in front of us.

所以這項工作仍在進行中。這就是為什麼我們在我們的 EPS 指南中仍然保持保守，直到我們在這些討論中完成這項工作的原因之一。我們希望確保不會出現任何延誤或時間問題。因此，一旦完成，我認為我們將更有信心實現或超過我們的每股收益。但這仍然擺在我們面前。

Our next question comes from Jason Bednar with Piper Sandler. Jason, your line is open.

我們的下一個問題來自 Jason Bednar 和 Piper Sandler。傑森，你的線路是開放的。

A nice start to '23 here. I wanted to come back to maybe where we started on the consumables growth. It was impressed -- I'm trying to really get a sense of maybe what underlying growth might have been if we exclude some of those onetime elements like easier Omicron comps and weather-related closures that might have happened to offices last year, you mentioned good retail demand, but then also trying to reconcile that against commentary around patient traffic stability. So again, just maybe considering all those points and then the buy-in, you mentioned ahead of the May price increase, if you could just wrap into your answer, maybe how sellout performed versus sell-in for consumables?

這裡是 23 年的一個不錯的開始。我想回到我們開始消耗品增長的地方。這給我留下了深刻的印象——我試圖真正了解如果我們排除一些曾經的因素，比如去年辦公室可能發生的更容易的 Omicron comps 和與天氣有關的關閉，你提到的潛在增長可能是什麼良好的零售需求，但隨後也試圖將其與圍繞患者交通穩定性的評論相協調。因此，再次考慮所有這些要點，然後再考慮買入，你在 5 月價格上漲之前提到過，如果你能總結一下你的答案，也許賣完與賣完消耗品的表現如何？

Yes, I would say, overall, probably mid-single digits if you exclude some of the year-over-year easier comps and price increases and some of the buy-ins is probably about half of it true real underlying improved demand and the other half is just some easier comps and timing relative to Q2 versus Q1.

是的，我會說，總體而言，如果你排除一些同比更容易的補償和價格上漲，並且一些買入可能是真實潛在改善需求的一半左右，那麼總體來說可能是中個位數half 只是一些相對於 Q2 和 Q1 更簡單的組合和時間安排。

So very strong, but it's across the board. It wasn't just in one geography. It wasn't just in one part of our consumables business. As I mentioned earlier, we are really pleased to see the growth across Endo, restorative, preventive, across the globe. So I think it's a good sign relative to patient traffic coming back because some of the comments just around these comps is really a U.S. comment.

非常強大，但它是全面的。這不僅僅是在一個地理區域。這不僅僅是我們消耗品業務的一部分。正如我之前提到的，我們真的很高興看到 Endo 在全球範圍內的恢復性、預防性增長。因此，我認為相對於患者流量的回歸，這是一個好兆頭，因為圍繞這些 comps 的一些評論實際上是美國的評論。

Sure. Yes. Understood. That's helpful. Maybe then looking at one other deviation at least relative to how we were thinking about things for the quarter, but maybe on the other side, T&E operating margin in the quarter, it does look like it stepped down. It was a little bit lower than what we were thinking. I'm sure some of this is tied to VBP, also probably some of the investments you're making in implants and clear aligners. But when we look at, I think it was 12.2% operating -- adjusted operating margin for the segment, is this a low watermark for segment profitability?

當然。是的。明白了。這很有幫助。也許然後至少相對於我們對本季度事情的思考方式來看另一個偏差，但也許另一方面，本季度的 T&E 營業利潤率看起來確實有所下降。它比我們想像的要低一點。我敢肯定，其中一些與 VBP 有關，也可能與您在植入物和透明矯正器上所做的一些投資有關。但是當我們看的時候，我認為這是 12.2% 的運營 - 該部門調整後的運營利潤率，這是該部門盈利能力的低水位線嗎？

And I guess if so, how are you thinking about the pace of improvement for T&E margins from here? Again, understanding you're changing your reporting methodology. So I guess, however you want to answer that question with the segments or the products that are currently in that category?

我想如果是這樣，您如何看待 T&E 利潤率的改善步伐？同樣，了解您正在改變您的報告方法。所以我想，但是你想用當前屬於該類別的細分市場或產品來回答這個問題嗎？

Yes. No. I think certainly, the profitability was impacted by VBP. So that did have an impact. There were also some other -- I'll call them nonrecurring charges that are reflected in our numbers in the T&E segment. So we were able to absorb those and still deliver really good performance. I do expect we'll see better performance in the T&E segment, although we're going to be changing our segments to your point. But that part of our business should show improvements.

是的。不，我認為當然，盈利能力受到 VBP 的影響。所以這確實有影響。還有一些其他——我稱之為非經常性費用，這些費用反映在我們 T&E 部門的數字中。所以我們能夠吸收這些並且仍然提供非常好的性能。我確實希望我們會在 T&E 部分看到更好的表現，儘管我們將根據您的觀點改變我們的部分。但我們業務的這一部分應該有所改善。

But again, I don't want to underestimate the strong profitability improvements in Ortho. Ortho did show really good progress sequentially year-over-year, and we're expecting to see better performance in our Ortho business going forward. So to your point, I would expect there's probably a low watermark for our T&E segment.

但同樣，我不想低估 Ortho 強大的盈利能力改善。 Ortho 確實逐年取得了很好的進展，我們期待在未來的 Ortho 業務中看到更好的表現。所以就你的觀點而言，我預計我們的 T&E 部門可能會有一個低水位線。

You can only get better as we move forward.

隨著我們的前進，您只會變得更好。

And just real quick follow-up. Any quantification on run where you currently sit with Ortho profitability?

並且只是真正的快速跟進。您目前使用 Ortho 盈利能力的任何運行量化？

No. I would just say we're making really good strides. We had questions on is Byte profitable. I'd just tell you Byte was profitable in the quarter just to alleviate that question that we typically get. But no, I think on the whole, we feel good about it. It's still dilutive to the overall corporate margins. So we have more work to do, but we intend on making progress each and every quarter.

不，我只想說我們正在取得很大的進步。我們對 Byte 是否有利可圖提出了疑問。我只是告訴你 Byte 在本季度盈利只是為了緩解我們通常會遇到的問題。但不，我認為總的來說，我們對此感覺良好。它仍然會稀釋公司的整體利潤率。所以我們還有更多工作要做，但我們打算每個季度都取得進展。

And the team has done a real nice job to not just get this top line performance going in a meaningful way, which is going to help on the leverage side but also working on profitability improvements.

該團隊做得非常好，不僅以有意義的方式實現了這一頂級業績，這將有助於提高槓桿率，同時也有助於提高盈利能力。

And our next question comes from the line of Michael Cherny with Bank of America.

我們的下一個問題來自美國銀行的 Michael Cherny。

This is Dan Clark on for Mike. Are you seeing or hearing of any recent impacts to equipment demand just thinking through potentially tighter lending standards that might be hitting the market as a result of recent banking headlines?

這是邁克的丹·克拉克。您是否看到或聽到最近對設備需求的任何影響，只是考慮可能會因最近的銀行業頭條新聞而衝擊市場的可能更嚴格的貸款標準？

Yes. So it's Simon. Obviously, the survey that I quoted earlier on with those 1,600 customers around the world. While sentiment about capital purchases has not gotten worse since the last time we did the survey in February. There is, there is still some heightened concern from customers about making those investments. So Glenn commented earlier on about some thoughtfulness that we've put into Q2 and beyond with respect to that part of our portfolio. And until our survey or all your surveys point to a more favorable environment, then we'll continue to exhibit some caution in that space.

是的。所以是西蒙。顯然，這是我之前引用的對全球 1,600 名客戶的調查。自從我們上次在 2 月份進行調查以來，資本購買情緒並沒有變得更糟。確實，客戶對進行這些投資仍然非常擔心。因此，格倫早些時候評論了我們在第二季度及以後對我們投資組合的這一部分所做的一些深思熟慮。在我們的調查或你們所有的調查都指向一個更有利的環境之前，我們將繼續在那個領域表現出一些謹慎。

And then just a quick clarification. Are you still seeing supply chain issues in equipment and instruments?

然後只是一個快速的澄清。您是否仍然看到設備和儀器的供應鏈問題？

So I would say that the supply chain status has not got any worse at all. In fact, we would say probably a slight improvement. We are -- last year, we had these middlemen who are supplying electronic components, they are still playing a role, although their role is being reduced each and every month. We are making a lot of internal progress with respect to our turnaround times as well. So I would say it's less of a concern than it has been in the past, but we are still very watchful about it.

所以我想說供應鏈狀況一點也沒有變得更糟。事實上，我們會說可能會有輕微的改善。我們 - 去年，我們有這些供應電子元件的中間商，他們仍在發揮作用，儘管他們的作用每個月都在減少。我們在周轉時間方面也取得了很多內部進展。所以我想說它不像過去那樣令人擔憂，但我們仍然非常關注它。

And our next question comes from the line of Nathan Rich with Goldman Sachs.

我們的下一個問題來自 Nathan Rich 與高盛的合作。

Maybe a numbers one to start. I'm just trying to reconcile the first quarter top line outperformance relative to your guidance. And then your commentary on where 2Q organic growth would be. I guess it seems like you outperformed by about $40 million relative to your initial expectations. I think you called out the CAD/CAM inventory stocking was about $10 million, the consumables buying ahead of the price increase. It seems to be about $20 million.

也許是第一個開始。我只是想調和第一季度與您的指導相關的最高表現。然後是您對第二季度有機增長的評論。我猜你的表現似乎比你最初的預期高出大約 4000 萬美元。我想你說的 CAD/CAM 庫存庫存約為 1000 萬美元，是在價格上漲之前購買的消耗品。好像是2000萬美元左右。

Is that -- are those in the right ballpark? And I guess, does that $30 million total kind of turn into a headwind in 2Q. And I guess in either case, it seems like you're kind of tracking at the high end of your guidance for the year. So is there anything else in the back half of the year that we should have on the radar because it seems like you've kind of pointed to sales improving throughout the year this year.

那是——那些在正確的球場上嗎？我想，這 3000 萬美元的總額是否會在第二季度變成不利因素。而且我想在任何一種情況下，您似乎都在跟踪今年指導的高端。那麼，今年下半年還有什麼我們應該關注的，因為您似乎已經指出今年全年的銷售額都有所改善。

Thanks for your question. So yes, the overperformance in Q1 was consumables. I would also highlight Ortho outperformed and CAD/CAM. I don't know the exact amounts for each of the buckets. But clearly, those are the 3 big drivers for us. Within CAD/CAM, I would say that the mill has also outperformed. So some of the timing, but yes, there is good, strong underlying demand, though, outside of some of the timing items that we've called out relative to consumables as an example, in the prebuys.

謝謝你的問題。所以是的，第一季度的超額表現是消耗品。我還要強調 Ortho 的表現優於 CAD/CAM。我不知道每個桶的確切數量。但很明顯，這些是我們的三大驅動力。在 CAD/CAM 中，我想說工廠也表現出色。所以一些時間，但是，是的，除了我們在預購中提到的一些與消耗品相關的時間項目之外，還有良好、強勁的潛在需求。

So patient traffic was much stronger that helped to drive the consumables outperformance. Our Ortho take share has absolutely created more upside versus our forecast. We're being cautious for the rest of the year. If you look at our guidance right now, obviously, we're not projecting to show sequential improvement in the back half of the year versus the front half of the year. We're being cautious around the equipment environment.

因此，患者流量要大得多，這有助於推動消耗品的出色表現。與我們的預測相比，我們的 Ortho take share 絕對創造了更多的上行空間。在今年餘下的時間裡，我們會保持謹慎。如果您現在查看我們的指導，顯然，我們預計下半年與上半年相比不會出現連續改善。我們對設備環境持謹慎態度。

And I think it leaves us opportunity to overachieve if things continue to go well. But we're obviously expecting to see improvements in China, expecting to see improvements in our implants business, continuing to see momentum with Ortho. And if the macro environment does not erode, then I think there's opportunity to do better and probably get to the upper end of our guidance range or even better than that.

而且我認為，如果事情繼續順利進行，我們就有機會取得超額成就。但我們顯然希望看到中國的改善，希望看到我們的植入物業務有所改善，並繼續看到 Ortho 的發展勢頭。如果宏觀環境沒有受到侵蝕，那麼我認為有機會做得更好，可能會達到我們指導範圍的上限，甚至更好。

So we'll see how the rest of the year plays out. But to your point, we've got good momentum here in the first quarter, but being cautious, especially around the equipment environment.

因此，我們將看看今年餘下時間的表現如何。但就你的觀點而言，我們在第一季度取得了良好的勢頭，但仍持謹慎態度，尤其是在設備環境方面。

Great. And then, Simon, maybe a follow-up just on R&D. How are you thinking about the allocation of R&D dollars between consumables and equipment and some of the growth categories that you talked about? And can you talk maybe about the time line for making those changes. And where you're kind of focused on bringing innovation to market and one we could potentially see some of those fruits come to bear as we think about the forward?

偉大的。然後，西蒙，也許只是關於研發的後續行動。您如何看待消耗品和設備之間的研發資金分配以及您談到的一些增長類別？你能談談做出這些改變的時間表嗎？在您專注於將創新推向市場的地方，我們可能會在考慮未來時看到其中一些成果產生？

Nathan, we brought in Andreas Frank, who's our Chief Business Officer, with us today, who leads our [GPU]. So I'll give Andreas an opportunity to take that question.

Nathan，我們今天請來了我們的首席商務官 Andreas Frank，他是我們 [GPU] 的領導者。所以我會給安德烈亞斯一個機會來回答這個問題。

Thank you, Simon. So I think I'd point to our new operating model that we're putting in place. And first and foremost, that enables us on the investment side and on the innovation side to have a more dynamic resource allocations. One of our biggest investment areas is clearly software. So we're continuing to invest behind DS core and to enable that platform with next-generation clinical applications as we upgrade our software stack.

謝謝你，西蒙。所以我想我會指出我們正在實施的新運營模式。首先，這使我們能夠在投資方面和創新方面進行更動態的資源配置。我們最大的投資領域之一顯然是軟件。因此，我們將繼續投資 DS 核心，並在升級我們的軟件堆棧時為該平台提供下一代臨床應用程序。

And then secondly, as we continue to execute on our portfolio optimization and simplification strategy, fewer R&D dollars will be spent towards maintenance, which will free up resources to also invest behind more meaningful innovation products that solve significant challenges for our patients and for our customers.

其次，隨著我們繼續執行我們的產品組合優化和簡化戰略，用於維護的研發資金將減少，這將釋放資源，用於投資更有意義的創新產品，為我們的患者和客戶解決重大挑戰.

And our next question comes from the line of Rachel Vatnsdal from JPMorgan.

我們的下一個問題來自摩根大通的 Rachel Vatnsdal。

So first on here just on the visibility that you have in the customers' CapEx budget. You've spoken a fair amount today about the caution you have around equipment and instrumentation. So can you just walk us through the conversations you're having with customers? And at this point, do you expect CapEx budgets to be pressured into 2024. And then as a follow-up, you flagged some strength in equipment and instrumentation within Canada. So can you just talk about what drove the strength there relative to the U.S. and Europe.

所以首先在這裡只是關於您在客戶的資本支出預算中的可見性。你今天已經談了很多關於你對設備和儀器的謹慎。那麼，您能否向我們介紹一下您與客戶的對話？在這一點上，您是否預計到 2024 年資本支出預算會受到壓力。然後作為後續行動，您指出加拿大在設備和儀器方面有一些實力。那麼你能談談是什麼推動了那里相對於美國和歐洲的實力嗎？

So, I would say we've obviously read all the surveys that you all put out. We've done our own work as well. I don't know if -- I don't have the details to say if their capital budgets are being constrained in any way with respect to the dollars that are in those budgets. But their willingness to spend it is certainly is certainly being constrained.

所以，我想說我們顯然已經閱讀了你們所做的所有調查。我們也做了自己的工作。我不知道 - 我沒有詳細信息可以說明他們的資本預算是否在這些預算中的美元方面受到任何限制。但他們的消費意願肯定受到限制。

We discovered that 1 in 4 customers in that survey across the globe, across the entire globe, we're exhibiting caution around capital equipment spending. So that's the data that we have to go on. And then with respect to your question on Canada, some of that demand, but also some of that is timing as well. So that's the greatest color we can give you on that.

我們發現，在全球範圍內的這項調查中，有四分之一的客戶對資本設備支出表現出謹慎態度。這就是我們必須繼續的數據。然後關於你關於加拿大的問題，其中一些需求，還有一些也是時機。所以這是我們可以給你的最好的顏色。

And then maybe a quick one here on Clear Aligner. As you noted that SureSmile and Byte grew double digits in the quarter. So can you just walk us through how much of that performance in Clear Aligners has been driven by greenfield wins versus brownfield?

然後可能是 Clear Aligner 上的一個快速的。正如您所指出的，SureSmile 和 Byte 在本季度增長了兩位數。那麼，您能否向我們介紹一下 Clear Aligners 的性能有多少是由綠地與棕地的勝利驅動的？

Well, look, as Glenn noted earlier on, we've seen really robust growth through, I think, the third quarter in a row now in SureSmile and Byte. I also noted that we are gaining traction with some DSOs as we bring our Imaging equipment in there as well, and they're expanding their offerings to include our SureSmile -- our SureSmile offering. We've also expanded globally. So we are present in excess of 50 countries now.

好吧，正如 Glenn 早些時候指出的那樣，我認為 SureSmile 和 Byte 已經連續第三個季度實現了真正強勁的增長。我還注意到，隨著我們也將我們的成像設備帶到那裡，我們正在獲得一些 DSO 的關注，並且他們正在擴展他們的產品以包括我們的 SureSmile——我們的 SureSmile 產品。我們還在全球範圍內擴張。因此，我們現在遍布 50 多個國家/地區。

And then as Glenn noted too, we have been passing or rolling through an improved process at Byte in relation to customer acquisition, ensuring that the customers that we are bringing into the funnel are more likely than in the past to end up ordering Aligners. We've worked on our sales incentive program and the sales training programs with our sales force and to onboard SureSmile and Byte. So there are a lot of legs to the Aligners tool that we're using to drive increased growth and increased profitability.

然後正如格倫也指出的那樣，我們一直在 Byte 通過或推出與客戶獲取相關的改進流程，確保我們帶入漏斗的客戶比過去更有可能最終訂購對準器。我們與銷售人員一起制定了銷售激勵計劃和銷售培訓計劃，並加入了 SureSmile 和 Byte。因此，我們正在使用 Aligners 工具來推動增長和盈利能力的提高。

And our last question comes from Michael Petusky with Barrington Research.

我們的最後一個問題來自 Barrington Research 的 Michael Petusky。

I may have missed this, but have you guys talked about sort of cadence of free cash flow for the rest of the year? I mean Q1 is always seasonally weak, but usually, Q2 bounces back, but I know you're only expecting sort of modest EPS growth. Could you just talk about to any extent you can, sort of what you expect in terms of cadence for free cash for the rest of the year?

我可能錯過了這一點，但你們是否討論過今年剩餘時間自由現金流的節奏？我的意思是第一季度總是季節性疲軟，但通常情況下，第二季度會反彈，但我知道你只期望每股收益略有增長。您能否盡可能地談談您對今年餘下時間的免費現金節奏的期望？

Thanks for the question. I think, first and foremost, on Q1, obviously, we had a cash outflow from operations. That was not unexpected. We had nonrecurring expenses associated with the restructuring, a lot of onetime items from last year that we paid in the first quarter of this year and timing of receivables and payables. I just think as we go forward, keep in mind, we have more restructuring and nonrecurring payments that are going to be made.

謝謝你的問題。我認為，首先，顯然，在第一季度，我們有運營現金流出。這並不意外。我們有與重組相關的非經常性費用，我們在今年第一季度支付的很多去年的一次性項目以及應收賬款和應付賬款的時間安排。我只是認為在我們前進的過程中，請記住，我們將進行更多的重組和非經常性付款。

So this year, overall, will be a lower year than what you typically would see on free cash flow and free cash flow conversion. Having said that, we do expect to see improvements throughout this year on both our free cash flow performance and free cash flow conversion. So it will certainly get better as we go forward.

因此，總體而言，今年將低於您通常在自由現金流和自由現金流轉換方面看到的年份。話雖如此，我們確實希望今年全年我們的自由現金流量表現和自由現金流量轉換都會有所改善。因此，隨著我們的前進，它肯定會變得更好。

But this will be a year that's lower than most normal years given the restructuring efforts and the payments that have to be made associated with getting the annualized savings that we've quoted for 2024.

但考慮到重組工作以及與獲得我們為 2024 年報出的年度化儲蓄相關的付款，今年將低於大多數正常年份。

Is it fair to say it should be sequential growth sort of going forward, Q2, 3, 4?

可以公平地說，它應該是連續增長的，第二季度、第三季度、第四季度？

Yes.

是的。

And that concludes our Q&A for today. I would like to now turn it back to Simon Campion, Chief Executive Officer, for closing remarks. Simon?

今天的問答到此結束。我現在想把它轉回首席執行官西蒙坎皮恩的結束語。西蒙？

Thank you, and thank you all for your thoughtful questions this morning. I would also like to thank the entire Dentsply Sirona team, including those employees who have left the organization recently for their valuable contributions to our company and their unwavering commitment to our customers. While we have much more hard work ahead of us, I am energized by our progress and the passion and belief that our team has that we can deliver a brighter future for this organization together. Thank you.

謝謝大家，感謝大家今天早上提出的深思熟慮的問題。我還要感謝整個 Dentsply Sirona 團隊，包括最近離開該組織的員工，感謝他們為我們公司做出的寶貴貢獻以及他們對我們客戶的堅定承諾。雖然我們面前還有更多艱苦的工作要做，但我為我們的進步以及我們的團隊所擁有的熱情和信念感到鼓舞，我們可以共同為這個組織創造更光明的未來。謝謝。

Thank you for your participation in today's conference. This does conclude the program, and you may now disconnect.

感謝您參加今天的會議。這確實結束了程序，您現在可以斷開連接。