DENTSPLY SIRONA Inc (XRAY) 2024 Q2 法說會逐字稿

Good day and thank you for standing by, and welcome to the DENTSPLY SIRONA earnings conference call. (Operator Instructions) Again please be advised that today's conference is being recorded.

美好的一天，感謝您的支持，歡迎參加 DENTSPLY SIRONA 收益電話會議。（操作員說明）再次請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your first speaker today, Andrea Daley. Please go ahead.

現在我想將會議交給今天的第一位發言人安德里亞·戴利 (Andrea Daley)。請繼續。

Thank you, operator, and good morning, everyone. Welcome to the DENTSPLY SIRONA second quarter 2024 earnings call.

謝謝接線員，大家早安。歡迎參加登士柏西諾德 2024 年第二季財報電話會議。

Joining me for today's call is Simon Campion, 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.

與我一起參加今天電話會議的是首席執行官西蒙·坎皮恩 (Simon Campion) 和首席財務官格倫·科爾曼 (Glenn Coleman)。我想提醒您，與電話會議相關的收益新聞稿和幻燈片演示可在我們網站 www.dentsplysirona.com 的投資者部分獲取。

Before we begin, please take a moment to read the forward-looking statements in our earnings press release. During today's call, we may make certain predictive statements that reflect our current views about future performance and financial results. And 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 and subsequent SEC filings lists some of the most important risk factors that could cause actual results to differ from our predictions.

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。在今天的電話會議中，我們可能會做出某些預測性陳述，以反映我們目前對未來業績和財務表現的看法。我們的這些陳述以及某些假設和預期是基於受風險和不確定性影響的未來事件。我們最近提交的 10-K 表格和任何更新資訊以及隨後向 SEC 提交的文件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 offer investors valuable additional insight into our businesses financial performance, enable the comparison of financial results between periods where certain items may vary independently of business performance and enhance the transparency regarding key metrics utilized by management in operating our business. Please refer to our press release for the reconciliation between GAAP and non-GAAP results. Comparisons provided are to the prior year quarter unless otherwise noted. A webcast replay of today's call will be available on the Investors section of the company's website following the call.

此外，在今天的電話會議上，我們的言論將基於非公認會計準則財務表現。我們相信，非公認會計準則財務指標為投資者提供了對我們企業財務表現的寶貴額外見解，能夠對某些項目可能獨立於業務業績而變化的時期之間的財務業績進行比較，並提高管理層在經營我們業務時所使用的關鍵指標的透明度。請參閱我們的新聞稿，以了解 GAAP 和非 GAAP 業績之間的調節情況。除非另有說明，所提供的比較均與去年同期進行比較。電話會議結束後，公司網站的投資者部分將提供今天電話會議的網路直播重播。

And with that, I would now like to turn the call over to Simon.

現在我想把電話轉給西蒙。

Thank you, Andrea, and thank you all for joining us this morning for our Q2 2024 earnings call. I will start by providing an overview of our Q2 performance, give an update on the previously announced transformation work and share information about new initiatives, and investments we have been planning. Then Glenn will cover Q2 financial results and our full year 2024 outlook. I will finish with a brief strategic operating update.

謝謝 Andrea，也謝謝大家今天早上參加我們的 2024 年第二季財報電話會議。我將首先概述我們第二季的業績，介紹先前宣布的轉型工作的最新情況，並分享有關新舉措和我們一直在計劃的投資的資訊。然後 Glenn 將介紹第二季的財務表現和我們 2024 年全年的展望。最後我將簡要介紹一下戰略運營的最新情況。

Starting on slide 3. Our second quarter revenue of $984 million was unfavorably impacted by lower sales in our connected technology solutions segment. As expected, capital equipment continued to experience pressure largely but not exclusively due to macro economic conditions. Other factors included some pricing degradation and weaker than expected performance in certain major markets.

從投影片 3 開始。我們第二季的營收為 9.84 億美元，受到連網技術解決方案部門銷售額下降的不利影響。正如預期的那樣，資本設備繼續承受壓力，這在很大程度上但不完全是由於宏觀經濟狀況造成的。其他因素包括價格下降以及某些主要市場的表現低於預期。

We delivered organic sales growth in the other three segments: Essential Dental Solutions, Orthodontic and Implant Solutions, and wellspect HealthCare. We were pleased to see double-digit growth in aligners despite some headwinds, which we will discuss later. Our continued focus and investments in Wellspect HealthCare enabled us to deliver another quarter of strong growth.

我們在其他三個領域實現了有機銷售成長：基本牙科解決方案、矯正和種植解決方案以及 Wellspect 醫療保健。儘管存在一些阻力，我們很高興看到矯正器的兩位數增長，我們將在稍後討論。我們對 Wellspect HealthCare 的持續關注和投資使我們能夠實現另一個季度的強勁成長。

For the full year, we are revising our outlook based on first half performance, FX, evolving market dynamics and the continued macroeconomic headwinds. 18 months ago, we announced a restructuring plan to transform dentsply sirona. We also communicated that this would be a journey.

對於全年，我們將根據上半年表現、外匯、不斷變化的市場動態以及持續的宏觀經濟逆風來修正我們的展望。 18個月前，我們宣布了一項重組登士柏西羅納的計畫。我們也表示這將是一趟旅程。

With our Phase 1 initiatives complete are well underway, we are ready to advance to Phase 2 to build on our progress to date and further advance our transformative agenda to improve efficiencies and drive profitable growth. Although the macro environment has impacted the sales outlook for the global dental market, we remain committed to continued assessment of our business, adapting our organization accordingly, enhancing our efficiency and execution capabilities and investing in high return categories, all with the goal of driving sustainable EPS growth as we highlighted during our Investor Day.

隨著第一階段計畫的順利完成，我們已準備好進入第二階段，以迄今的進展為基礎，進一步推進我們的變革議程，以提高效率並推動獲利成長。儘管宏觀環境影響了全球牙科市場的銷售前景，但我們仍然致力於持續評估我們的業務，相應地調整我們的組織，提高我們的效率和執行能力，並投資於高回報類別，所有這些都是為了推動永續發展正如我們在投資者日期間所強調的那樣，每股收益成長。

As we said in our press release, we have identified $80 million to $100 million in annualized structural and operational synergies that are incremental to our recently completed $200 million restructuring program. We have a clear plan to achieve these synergies and expect to realize them in the next 12 to 18 months.

正如我們在新聞稿中所說，我們已經確定了 8,000 萬至 1 億美元的年度結構和營運協同效應，這是我們最近完成的 2 億美元重組計劃的增量。我們有一個明確的計劃來實現這些協同效應，並預計在未來 12 至 18 個月內實現。

Both our Phase 1 and Phase 2 restructuring plans are fundamentally reshaping our company. We designed these plans to improve our operational performance and drive much higher customer engagement, increase alignment, drive process mand discipline and strategically position dentsply sirona to win. Since announcing Phase 1, we have moved very deliberately in many areas, including reinvestments in key geographies, commercially competencies such as clinical education simplifying our manufacturing, distribution and product footprint, driving a and intentional focus on quality, refining our new product development processes, and implementing a single ERP system.

我們的第一階段和第二階段重組計劃都從根本上重塑了我們的公司。我們設計這些計劃是為了提高我們的營運績效並推動更高的客戶參與度、增強一致性、推動流程要求紀律並策略性地定位 Densply Sirona 以獲得勝利。自從宣布第一階段以來，我們在許多領域都非常謹慎地採取了行動，包括對關鍵地區的再投資、商業能力，例如簡化我們的製造、分銷和產品足蹟的臨床教育，推動並有意識地關注質量，完善我們的新產品開發流程，並實施單一的 ERP 系統。

These cost-saving initiatives and reinvestments were instrumental in reestablishing positive and constructive relationships with key stakeholders of our company, including customers and investors. We remain confident that these Phase 1 initiatives will have a lasting impact, improving performance to drive long-term shareholder value, and contribute meaningfully to our bottom line through 2026 and beyond.

這些節省成本的措施和再投資有助於與我們公司的主要利害關係人（包括客戶和投資者）重建積極和建設性的關係。我們仍然相信，這些第一階段舉措將產生持久影響，提高業績，推動長期股東價值，並在 2026 年及以後為我們的利潤做出有意義的貢獻。

As we discussed in Q1, we have been planning incremental measures to better position ourselves to achieve our profitability and EPS targets. While we always believed there were additional opportunities to shape and structure our company, we prioritize the Phase 1 operational initiatives. We expect these new initiatives will not only improve our financial performance, but also refine our organizational structure and enhance our business processes and better align roles and responsibilities to support our objectives.

正如我們在第一季所討論的，我們一直在計劃增量措施，以更好地定位自己，以實現我們的獲利能力和每股盈餘目標。雖然我們始終相信還有其他機會來塑造和建立我們的公司，但我們優先考慮第一階段的營運計劃。我們預計這些新舉措不僅將改善我們的財務業績，還將完善我們的組織結構，增強我們的業務流程，並更好地調整角色和職責以支持我們的目標。

Specifically, I will discuss shortly how we are executing on new investments to reshape our structure, enhance relationships with our customers, and further strengthen our competitive position and accelerate innovation through disciplined R&D pipeline management. Additionally, we are evaluating further strategic investment opportunities. Though we will not disclose these details today for competitive reasons.

具體來說，我很快就會討論我們如何執行新投資，以重塑我們的結構，增強與客戶的關係，並透過嚴格的研發管道管理進一步加強我們的競爭地位並加速創新。此外，我們正在評估進一步的策略投資機會。不過，出於競爭原因，我們今天不會透露這些細節。

We are laser focused on simplifying our global structure by consolidating product categories within each global business segment to better align our portfolio with our customers' needs. And doing so, we are also simplifying our regional structure and reevaluating our marketing efforts across our business.

我們專注於透過整合每個全球業務部門內的產品類別來簡化我們的全球結構，以便更好地使我們的產品組合與客戶的需求保持一致。為此，我們也簡化了區域結構，並重新評估了整個業務的行銷工作。

We have assessed and reevaluated lower-performing businesses and geographies and have decided to selectively exit certain countries, which we expect to complete in 2025. We expect these exits to have a $5 million impact to revenue with minimal impact to the bottom line. We also initiated plans to reduce external spend and G&A cost by consolidating our vendor and supplier base while tightening expense controls. In addition, we have developed a plan to consolidate service and support activities that in turn will enhance efficiency through streamlined tools and processes, which are enabled by our ERP transformation.

我們評估並重新評估了表現較差的企業和地區，並決定有選擇地退出某些國家，預計在 2025 年完成。我們預計這些退出將對收入產生 500 萬美元的影響，而對利潤的影響最小。我們還啟動了透過鞏固我們的供應商和供應商基礎同時加強費用控制來減少外部支出和一般管理費用的計劃。此外，我們還制定了一項計劃來整合服務和支援活動，從而透過我們的 ERP 轉型實現的簡化工具和流程來提高效率。

So I'll note the time line for this particular project extend beyond 18 months. As we've previously shared, our survey results tell us that we do not have major product gaps in our portfolio and that our company is uniquely positioned to be a partner of choice for customers around the world. These are not our words, but the words of our customers. We will continue working towards better leveraging our portfolio to drive improved performance where we have lagged the market for years.

因此，我會注意到這個特定項目的時間線超出了 18 個月。正如我們之前所分享的，我們的調查結果告訴我們，我們的產品組合中不存在重大產品差距，而且我們公司具有獨特的優勢，可以成為全球客戶的首選合作夥伴。這些不是我們的話，而是我們客戶的話。我們將繼續努力更好地利用我們的產品組合來提高我們多年來落後於市場的表現。

Unlocking the value inherent in our portfolio requires us to think differently to invest strategically and to create our own demand. So what does it mean to create our own demand? We must develop closer more meaningful relationships with all our customers. While we have made progress here, we must continue to assess and take opportunities to advance this crucial strategic objective when and where appropriate.

釋放我們投資組合的內在價值需要我們以不同的方式思考，進行策略性投資並創造我們自己的需求。那麼創造我們自己的需求又意味著什麼呢？我們必須與所有客戶建立更緊密、更有意義的關係。雖然我們在這方面取得了進展，但我們必須繼續評估並抓住機會，在適當的時候和適當的地方推進這一重要的戰略目標。

Our global sales force. As you know, is a critical part of our commercial infrastructure. Moreover, the geographic distribution of dental practices, particularly in the US, can make reaching customers challenging and in some cases, result in marginal return. To augment our efforts and improve our coverage more cost effectively, we plan to increase investments in our own sales channels.

我們的全球銷售團隊。如您所知，這是我們商業基礎設施的重要組成部分。此外，牙科診所的地理分佈（尤其是在美國）可能會使接觸客戶變得具有挑戰性，並且在某些情況下會導致邊際回報。為了加強力道並以更具成本效益的方式提高覆蓋範圍，我們計劃增加對自有銷售管道的投資。

As a first step, we have recruited a sales leader with a strong track record of standing up inside sales organizations around the world. By the end of Q1 2025, we intend to recruit, hire, train, and deploy at least 100 DENTSPLY SIRONA inside sales reps in the US. This team will complement our field-based sales teams by connecting with customers who do not see our field-based reps as frequently as we would like. They will focus on generating demand and funneling it through the appropriate channel, either our direct sales forces in endodontics and orthodontics, for example, or through our dealer partners.

作為第一步，我們招募了一位在世界各地的銷售組織中擁有良好表現的銷售領導者。到 2025 年第一季末，我們計劃在美國招募、僱用、培訓和部署至少 100 名 DENTSPLY SIRONA 內部銷售代表。團隊將透過與那些沒有像我們希望的那樣頻繁見到我們的現場代表的客戶建立聯繫，來補充我們的現場銷售團隊。他們將專注於產生需求並透過適當的管道（例如我們在牙髓學和正畸學領域的直接銷售人員）或透過我們的經銷商合作夥伴來輸送需求。

More specifically, we see an opportunity to increase our in-office aligner business. Particularly with orthodontists where we are underpenetrated. Our studies demonstrate a compelling value and technology proposition leading us to increase investments in commercial and technology assets.

更具體地說，我們看到了增加辦公室矯正器業務的機會。特別是對於矯正醫師來說，我們的滲透率還不夠。我們的研究證明了令人信服的價值和技術主張，促使我們增加對商業和技術資產的投資。

To enhance the effectiveness and performance of our commercial and service teams, we also intend to invest in technology that facilitates a seamless customer service and engagement experience alongside implementing an advanced CPQ system. Furthermore, many of our direct customers would prefer to do business with our company through a robust e-commerce platform.

為了提高我們商業和服務團隊的效率和績效，我們還打算投資技術，以促進無縫的客戶服務和參與體驗，同時實施先進的 CPQ 系統。此外，我們的許多直接客戶更願意透過強大的電子商務平台與我們公司開展業務。

With that in mind, we have developed a detailed plan to upgrade our offering through increased functionality and capability and are now moving into the execution phase. Our plan incorporates many discrete areas of enhancement, which we expect will improve the performance of this channel and customers' experience with our company. We expect most of these initiatives will go live by the end of Q2 2025, and this leads us to our relationships with distributors.

考慮到這一點，我們制定了詳細的計劃，透過增加功能和能力來升級我們的產品，現在正進入執行階段。我們的計劃包含許多離散的增強領域，我們預計這將改善該管道的績效以及客戶對我們公司的體驗。我們預計大部分措施將在 2025 年第二季末實施，這將引導我們與經銷商建立關係。

The degree to which we partner with distributors varies around the world. We value these partners in all geographies, and we have worked hard to strengthen those relationships. That said, changing market and competitive dynamics have impacted our relationships with certain distributors, and we are adjusting accordingly.

我們與世界各地經銷商​​的合作程度各不相同。我們重視所有地區的這些合作夥伴，並且我們一直在努力加強這些關係。也就是說，不斷變化的市場和競爭動態影響了我們與某些經銷商的關係，我們正在做出相應的調整。

For example, some not only distribute for us and others but in certain areas they compete with us directly. Others, execute and matters that do not wholly align with our strategic objectives. We have and will continue to invest significantly and strategically across our businesses, introducing new products and software into the marketplace and training our distribution partners to represent our portfolio to our customers. Through these activities, we enable distributor success, which in some cases is not adequately reflected in our current terms and conditions with them.

例如，有些不僅為我們和其他人分銷，而且在某些領域與我們直接競爭。其他執行和事項與我們的策略目標不完全一致。我們已經並將繼續對我們的業務進行重大策略性投資，將新產品和軟體引入市場，並培訓我們的分銷合作夥伴向客戶展示我們的產品組合。透過這些活動，我們幫助經銷商取得成功，但在某些情況下，我們目前與他們簽訂的條款和條件並未充分體現這一點。

With this in mind, we recently issued a non-renewal notice to Patterson Companies under our equipment distribution agreements, in the United States and Canada. We did not make this decision lightly. It reflects our desire for improved delivery and communication of the value proposition we bring to the industry, including our evolving digitally connected ecosystem. Our current contract remains in effect as we engage in ongoing discussions, which we hope leads to an agreement that aligns more closely with the evolving environment and our strategic objectives.

考慮到這一點，我們最近根據我們在美國和加拿大的設備分銷協議向帕特森公司發出了不續簽通知。我們並不是輕易做出這個決定的。它反映了我們對改善為行業帶來的價值主張的交付和溝通的願望，包括我們不斷發展的數位連接生態系統。我們目前的合約仍然有效，我們正在進行持續的討論，我們希望能夠達成一項更符合不斷變化的環境和我們的策略目標的協議。

To help us achieve the Phase 2 cost savings and advance our strategic initiatives, we have made several organizational and leadership changes, including merging North America and Latin America into one commercial team now called the Americas region. Given their experience and track record, we are confident that the regional commercial leaders now in place can drive the necessary changes to address our operational realities, improve organizational health, and better position DENTSPLY SIRONA for future growth. Furthermore, we announced today that as part of our leadership changes in connection with Phase 2 Andreas Frank will be leaving the organization.

為了幫助我們實現第二階段的成本節約並推進我們的策略性舉措，我們進行了多項組織和領導層變革，包括將北美和拉丁美洲合併為一個商業團隊，現在稱為美洲地區。鑑於他們的經驗和業績記錄，我們相信，現有的區域商業領導者能夠推動必要的變革，以解決我們的營運現實，改善組織健康，並為登士柏西諾納的未來發展提供更好的定位。此外，我們今天宣布，作為第二階段領導層變動的一部分，安德烈亞斯·弗蘭克 (Andreas Frank) 將離開該組織。

Andreas made many meaningful contributions in helping us establish our path forward and in executing the work we have undertaken. These changes are intended to increase alignment between our global business units and our regions, thereby creating positive momentum in our revenue trajectory, which we anticipate we'll improve the leverage of our other margin accretive activities.

安德烈亞斯在幫助我們確定前進道路和執行我們已進行的工作方面做出了許多有意義的貢獻。這些變化旨在加強我們的全球業務部門和地區之間的協調，從而為我們的收入軌跡創造積極的勢頭，我們預計這將提高我們其他利潤成長活動的槓桿作用。

Finally, we have been diligently improving processes in R&D to ensure that we are working on the right programs at the right time. Programs that focus on unmet clinical and workflow needs for our customers. Our ongoing assessment has identified $19 million outside of the Phase 2 initiatives that we plan to reallocate into programs tailored to those needs and with return dynamics that can allow us to alter the return trajectory of our total innovation pipeline. Specifically, we are increasing investments in orthodontic software to improve the dental professionals experience, accelerating DS core capability and making further investments across our connected technology platforms.

最後，我們一直在努力改善研發流程，以確保我們在正確的時間進行正確的專案。專注於滿足客戶未滿足的臨床和工作流程需求的計畫。我們正在進行的評估已確定第二階段計劃之外的 1900 萬美元，我們計劃將其重新分配到根據這些需求和回報動態量身定制的計劃中，從而使我們能夠改變整個創新管道的回報軌跡。具體來說，我們正在增加對矯正軟體的投資，以改善牙科專業人員的體驗，加速 DS 核心能力，並在我們的互聯技術平台上進行進一步投資。

Now let's circle back and talk about our $3 EPS target. As we stated when we announced this objective, achieving this target assumes an improved macro economic environment. Since announcing the target, we've continued to see pressure globally, particularly in markets where we have a significant presence such as Germany and Australia as well as higher interest rates persisting across many of our major markets, including the US.

現在讓我們回過頭來談談我們 3 美元的每股盈餘目標。正如我們在宣布這一目標時所說，實現這一目標的前提是宏觀經濟環境有所改善。自從宣布目標以來，我們繼續面臨全球壓力，特別是在德國和澳洲等我們擁有重要業務的市場，以及包括美國在內的許多主要市場持續較高的利率。

Despite the challenges already noted, the contribution of our Phase 1 activities to our $3 target is meaningful and within our control. This EPS target remains in North Star for us, and we expect Phase 2 to help our path to the $3 EPS targets. We also believe as you heard today that it's crucial to continue investing in our business to drive profitable growth and remain good stewards of our organization as we laid out at Investor Day.

儘管存在已經指出的挑戰，但我們的第一階段活動對 3 美元目標的貢獻是有意義的，並且在我們的控制範圍內。對我們來說，這個 EPS 目標仍然是北極星，我們預計第二階段將幫助我們實現 3 美元的 EPS 目標。我們也相信，正如您今天所聽到的那樣，繼續投資我們的業務以推動盈利增長並繼續成為我們組織的優秀管理者至關重要，正如我們在投資者日所闡述的那樣。

In a nutshell, and while we are still fine-tuning our numbers, some of these initiatives will go towards helping us achieve the $3 EPS target. While the remainder will go towards improving our competitiveness, which we expect will drive even greater value.

簡而言之，雖然我們仍在微調我們的數字，但其中一些舉措將有助於我們實現 3 美元每股盈餘的目標。其餘的將用於提高我們的競爭力，我們預計這將帶來更大的價值。

Before I hand the call over to Glenn to discuss the financial results in more detail, let me add that we had a strong cash flow quarter, resulting in over $100 million in cash becoming available. We plan to return this to our shareholders through additional share buybacks in Q3 of this year. And I will highlight that in total, we now plan to return about $380 million to shareholders this year through share buybacks and dividends.

在我將電話轉交給格倫以更詳細地討論財務業績之前，請允許我補充一下，我們的季度現金流強勁，導致可用現金超過 1 億美元。我們計劃在今年第三季透過額外股票回購的方式將其返還給股東。我要強調的是，我們現在計劃今年透過股票回購和股利總共向股東返還約 3.8 億美元。

Now over to you, Glenn.

現在輪到你了，格倫。

Thanks, Simon. Good morning, and thank you all for joining us today. I'll provide more detail on our second quarter results and an update on our full year 2024 outlook.

謝謝，西蒙。早安，感謝大家今天加入我們。我將提供有關第二季度業績的更多詳細資訊以及 2024 年全年展望的最新資訊。

Let's begin on slide 4. Our second quarter revenue was $984 million, representing a decline of 4.2% versus the prior year quarter. On an organic basis sales declined 2.3% as foreign currency negatively impacted sales by approximately $20 million or 190 basis points, with the largest impact coming from the weakening of the Japanese yen versus the US dollar.

讓我們從幻燈片 4 開始。我們第二季的營收為 9.84 億美元，比去年同期下降 4.2%。由於外幣匯率對銷售額產生約 2,000 萬美元或 190 個基點的負面影響，其中最大的影響來自日圓兌美元貶值，有機銷售額下降了 2.3%。

On a constant currency basis, three of the four segments posted organic growth in the quarter highlighted by double digit growth in aligners and Wellspect HealthCare. These improvements were offset by declines in CTS. We continue to experience the effects of challenging equipment market conditions and competitive pressure.

以固定匯率計算，四個細分市場中的三個在本季度實現了有機成長，其中矯正器和 Wellspect HealthCare 的兩位數成長尤為突出。這些改進被 CTS 的下降所抵消。我們持續經歷充滿挑戰的設備市場條件和競爭壓力的影響。

EBITDA margins contracted 30 basis points, mainly due to a decline in gross margins, which was largely driven by the impact of lower volumes, pricing, and unfavorable product mix in our CTS segment. In the quarter, a larger proportion of our CAD/CAM sales came from Primescan Connect, which has a lower gross margin profile than our other Primescan offerings. This is not a new trend, but one that has become more pronounced.

EBITDA 利潤率收縮了 30 個基點，主要是由於毛利率下降，而毛利率下降主要是由於我們的 CTS 部門銷售下降、定價和不利的產品組合的影響。本季度，我們的 CAD/CAM 銷售額中有很大一部分來自 Primescan Connect，其毛利率低於我們其他 Primescan 產品。這不是一種新趨勢，而是變得更加明顯的趨勢。

Adjusted EPS in the quarter was $0.49, down 4% from the prior year due to lower sales and a higher tax rate. Operating cash flow of $200 million doubled over the prior year due to favorable timing of cash collections and receipt of a foreign tax refund. Free cash flow conversion was 155% compared to 65% in the prior year.

由於銷售額下降和稅率上升，本季調整後每股收益為 0.49 美元，比去年同期下降 4%。由於現金回收和收到外國退稅的有利時機，營業現金流量達到 2 億美元，比前一年翻了一番。自由現金流轉換率為 155%，而前一年為 65%。

In the second quarter, we repurchased $150 million of shares at an average price of $27.85 and paid $33 million in dividends. As Simon mentioned previously, we intend to repurchase $100 million of shares in Q3 and plan to do so without increasing our leverage given the strong cash flow performance in the quarter. For the full year, we now plan to return approximately $380 million to shareholders through a combination of dividends and share repurchases.

第二季度，我們以平均價格27.85美元回購了1.5億美元的股票，並支付了3,300萬美元的股息。正如西蒙先前提到的，鑑於本季強勁的現金流表現，我們打算在第三季回購 1 億美元的股票，並計劃在不增加槓桿的情況下回購股票。我們現在計劃全年透過股利和股票回購相結合的方式向股東返還約 3.8 億美元。

We continue to maintain a strong balance sheet with cash and cash equivalents of $279 million at June 30. Our Q2 leverage ratio remained stable at 2.7 times, and we plan to end the year with leverage ratio slightly lower than current levels.

截至 6 月 30 日，我們繼續保持強勁的資產負債表，現金及現金等價物為 2.79 億美元。我們第二季的槓桿率穩定在2.7倍，我們計劃年底槓桿率略低於目前水準。

Let's now turn to second quarter segment performance on slide 5. Starting with the essential dental solutions segment, which includes Endo, Resto, and preventive products. Organic sales increased 1.5%, driven by steady patient traffic in Europe, partially offset by lower volume in the US. Our new Endo motor X-Smart Pro+ drove increased demand in Europe and Japan in Q2 and recently received 510(K) clearance to launch in the US, which is now planned in Q3.

現在讓我們轉向幻燈片 5 上的第二季部門業績。從基本的牙科解決方案部分開始，包括 Endo、Resto 和預防產品。在歐洲穩定的患者流量推動下，有機銷售額成長了 1.5%，但部分被美國銷售下降所抵銷。我們的新型 Endo 馬達 X-Smart Pro+ 在第二季度推動了歐洲和日本的需求成長，最近獲得了 510(K) 許可，可在美國推出，目前計劃於第三季推出。

Shifting to the Orthodontic and Implant Solutions Segment, organic sales grew 4.6% with double-digit growth from aligners, up 11%. SureSmile, our professional aligner brand grew 6%, driven by double digit growth in Europe. SureSmile also saw accelerated sales growth in Japan, we recently made investments to expand our footprint and coverage. By our direct to consumer aligner brand grew 16% over the prior year quarter. During the quarter, legislative changes required us to adjust our go-to market model in certain states.

轉向矯正和種植解決方案領域，有機銷售額成長 4.6%，其中矯正器實現兩位數成長，成長 11%。在歐洲兩位數成長的推動下，我們的專業矯正器品牌 SureSmile 成長了 6%。SureSmile 在日本的銷售也加速成長，我們最近進行了投資以擴大我們的足跡和覆蓋範圍。透過我們直接面向消費者的定位器品牌，比去年同期成長了 16%。本季度，立法變化要求我們調整某些州的進入市場模式。

Given the evolving legislative and regulatory environment, we now expect buy to grow approximately 15% for the full year compared to our previous estimate of more than 20% growth. Implants and prosthetics grew low single digits in the quarter, driven by strong implants growth in China, partially offset by declines in the US and Europe. Our value implant segment was flat in the quarter as growth in most markets was offset by the impact of Turkey suspension of all imports from Israel.

鑑於不斷變化的立法和監管環境，我們現在預計全年購買量將增加約 15%，而我們先前估計的成長將超過 20%。受中國植入物強勁增長的推動，本季度植入物和義肢增長了低個位數，但部分被美國和歐洲的下降所抵消。我們的價值植入部分在本季持平，因為大多數市場的成長被土耳其暫停從以色列進口的影響所抵消。

On the premium side, growth in our EV family of implants and prosthetic solutions outpaced declines in legacy brands. Supporting our commitment to clinical education, in Q2, we held our implant solutions World Summit in Miami, hosting over 600 implant professionals from 25 countries.

在高階產品方面，我們的 EV 系列植入物和義肢解決方案的成長速度超過了傳統品牌的下降速度。為了支持我們對臨床教育的承諾，我們在第二季度在邁阿密舉辦了種植解決方案世界高峰會，接待了來自 25 個國家的 600 多名種植專業人士。

Wrapping up our dental performance, CTS, our Connected Technology Solutions segment saw organic sales increased 4% sequentially but declined 16% versus the prior year quarter. We saw double-digit declines in both E&I and CAD/CAM as the demand environment for equipment remains soft due to macro headwinds and higher interest rates in most markets. Declines in imaging equipment and treatment centers were also partially driven by a tougher comp versus the prior year quarter.

總結我們的牙科業績，我們的互聯技術解決方案部門 CTS 的有機銷售額環比增長 4%，但與去年同期相比下降 16%。由於宏觀不利因素和大多數市場利率上升，設備需求環境依然疲軟，我們看到 E&I 和 CAD/CAM 業務均出現兩位數下降。影像設備和治療中心的下降也部分是由於與去年同期相比更嚴峻的競爭。

While we anticipate the equipment market will remain challenging through the second half of the year, we expect our current and planned actions, including an upcoming digital equipment launch to improve our performance in the second half. We look forward to sharing more with you about this launch in the near future. We've also seen very good adoption on DS core registrations, which continue to grow, and we now have over 27,000 unique users as of quarter end, representing 37% growth compared to Q1.

雖然我們預計設備市場在下半年仍將充滿挑戰，但我們預計我們目前和計劃採取的行動（包括即將推出的數位設備）將提高我們下半年的業績。我們期待在不久的將來與您分享有關此次發布的更多資訊。我們也看到 DS 核心註冊的採用率非常高，並且持續成長，截至季度末，我們現在擁有超過 27,000 名唯一用戶，與第一季相比成長了 37%。

Moving to Wellspect HealthCare, organic sales grew 11.7%, exceeding our expectations. We saw growth across all regions, and we continue to benefit from new product launches, market share gains and an initial stocking order from a new distributor. In the second half, we expect the Wellspect growth rate to moderate to the mid-single digit range.

至於 Wellspect HealthCare，有機銷售額成長了 11.7%，超出了我們的預期。我們在所有地區都實現了成長，並且繼續受益於新產品的推出、市場份額的成長以及新經銷商的初始庫存訂單。下半年，我們預計 Wellspect 成長率將放緩至中個位數範圍。

Now let's turn to Slide 6 to discuss second quarter financial performance by region. US organic sales declined 0.6% due to lower imaging equipment volume and lower wholesale volumes in EDS. On a retail basis, EDS sales were approximately why in the quarter US CAD/CAM grew low single digits. Distributor inventory levels decreased sequentially by approximately $16 million, consistent with normal seasonality compared to a $23 million sequential decrease in the prior year quarter. We expect US CAD/CAM distributor inventory levels to fluctuate quarter to quarter and be roughly flat by the end of the year compared to current levels.

現在讓我們轉向投影片 6，討論按地區劃分的第二季財務表現。由於成像設備銷量下降和 EDS 批發量下降，美國有機銷售額下降 0.6%。在零售基礎上，EDS 銷售額大約是本季度美國 CAD/CAM 成長較低個位數的原因。經銷商庫存水準較上季減少約 1,600 萬美元，與去年同期較上季減少 2,300 萬美元相比，與正常季節性相符。我們預計美國 CAD/CAM 經銷商的庫存水準將按季度波動，到年底將與當前水準大致持平。

Turning to Europe, organic sales declined 2.6% due to lower CTS volume across the region as a result of prolonged recessionary trends, particularly in Germany, most notably affecting the demand for our equipment. In Q2, we began to deliver units of Orthophos SL, our relaunched 2D and 3D imaging line. While we're pleased with the uptake of the relaunch, we expect have only partially offset the macro headwinds and competitive pressures in the second half of the year.

轉向歐洲，有機銷售額下降了 2.6%，因為長期的經濟衰退趨勢導致整個地區的 CTS 銷售下降，特別是在德國，這對我們設備的需求影響最為顯著。在第二季度，我們開始交付 Orthophos SL 設備，這是我們重新推出的 2D 和 3D 成像系列。雖然我們對重新推出的效果感到滿意，但我們預計只能部分抵銷今年下半年的宏觀阻力和競爭壓力。

The declines in CTS were partially offset by growth in EDS and Wellspect HealthCare, both of which benefited from new product launches. Rest of World organic sales declined 4.3% in the quarter as robust growth in China for Endo and implants was offset by soft demand for equipment in Japan, in Australia, and New Zealand.

CTS 的下降被 EDS 和 Wellspect HealthCare 的成長部分抵消，這兩家公司都受益於新產品的推出。本季世界其他地區的有機銷售額下降了 4.3%，因為中國遠藤和植入物的強勁成長被日本、澳洲和紐西蘭設備需求疲軟所抵消。

With that, let's move to slide 7 to discuss our updated outlook for 2024. We are revising our full-year outlook based upon first half results, anticipated additional FX headwinds, market dynamics and our expectation for prolonged macro challenges. Our July customer survey, which included approximately 20 responses confirmed with external data, indicated about the market and demand dynamics. And we believe it's prudent to take a cautious view through the remainder of the year.

接下來，讓我們轉到投影片 7 來討論我們更新的 2024 年展望。我們正在根據上半年業績、預期的額外外匯阻力、市場動態以及我們對長期宏觀挑戰的預期來修訂全年展望。我們 7 月的客戶調查包括約 20 份經外部數據確認的回复，顯示了市場和需求動態。我們認為，在今年剩餘時間內採取謹慎態度是明智之舉。

Several key markets showed a dip in patient traffic, including the US, France, and Spain. While customers expressed an interest in innovations that can improve their workflows, they also reported that they plan to delay capital investments in the near term, consistent with the ADA data trends. At current FX rates, we now expect full year net sales to range from $3.86 billion to $3.90 billion. We expect organic sales to be down 1% to flat compared to our prior estimate of flat to up 1.5%.

包括美國、法國和西班牙在內的幾個主要市場的患者流量有所下降。雖然客戶對能夠改善工作流程的創新表示了興趣，但他們也表示，他們計劃在短期內推遲資本投資，這與 ADA 數據趨勢一致。以目前的匯率，我們預計全年淨銷售額將在 38.6 億美元至 39 億美元之間。我們預計有機銷售額將下降 1% 至持平，而我們先前的預測為持平至成長 1.5%。

Moving to profitability, our outlook for adjusted EBITDA margin of greater than 18% remains unchanged from our prior outlook. With these updates, we expect 2024 adjusted EPS to be in the range of $1.96 to $2.02, representing growth of 7% to 10% over the prior year.

談到獲利能力，我們對調整後 EBITDA 利潤率超過 18% 的預期與先前的預期保持不變。透過這些更新，我們預計 2024 年調整後每股收益將在 1.96 美元至 2.02 美元之間，較上年增長 7% 至 10%。

For the third quarter, we expect sales to increase low single digits on an organic basis and declined low single digits on a reported basis compared to the prior year sequentially, we project gross margin to improve slightly in Q3 but declined year over year. We anticipate third quarter adjusted EPS will be down mid-single digits year over year, primarily due to a higher tax rate.

對於第三季度，我們預計銷售額將有機成長低個位數，與上年同期相比，報告銷售額下降低個位數，我們預計第三季毛利率將略有改善，但同比下降。我們預計第三季調整後每股盈餘將年減中個位數，這主要是由於稅率上升。

And with that, I'll turn the call back over to Simon.

然後，我會將電話轉回給西蒙。

Thank you, Glenn. Moving on to our strategic update starting on slide 8. We remain confident in the strategy that we have laid out, digitalize our company win in high-growth categories, create a high performance culture, enhance and sustain profitability, and meet our stated financial objectives.

謝謝你，格倫。從幻燈片 8 開始繼續我們的策略更新。我們對我們所製定的策略仍然充滿信心，數位化我們的公司在高成長領域的勝利，創造高績效文化，提高和維持獲利能力，並實現我們既定的財務目標。

As we noted this time last year, we had several areas that we wanted to focus on in 2023, 2024, and beyond to drive this agenda. These included work on our foundational initiatives, designing a winning portfolio, driving network efficiency, redefining our ERP landscape, and executing our restructuring.

正如我們去年這個時候所指出的，我們希望在 2023 年、2024 年及以後重點關注幾個領域來推動這項議程。其中包括我們的基礎規劃工作、設計成功的產品組合、提高網路效率、重新定義我們的 ERP 環境以及執行我們的重組。

Let me now provide you with a brief update on our progress. We are advancing our SKU optimization work and expect to eliminate almost 50% of our endo and restorative SKUs by the end of 2025. We anticipate having the majority of this completed by the end of this year, starting with a non-revenue generating skews while we work towards migrating revenue generating fuse in 2025.

現在讓我向您簡要介紹一下我們的進展。我們正在推進 SKU 優化工作，預計在 2025 年底消除近 50% 的根管治療和恢復性 SKU。我們預計在今年年底前完成大部分工作，從不產生收入的傾斜開始，同時我們努力在 2025 年遷移創收熔斷器。

Our supply chain team continues to seek opportunities to improve our network performance. We have recently closed another US distribution site and announced plans to close another US based manufacturing site. We have been driving towards a Q3 commencement of an initial ERP rollout in Europe for several months. I am pleased to inform you that tomorrow, August 1, we will go live with SAP 4HANA in the UK. We have completed an extraordinarily robust set of tests and simulations, and we'll now shift our focus to a go-live in North America in the latter part of 2024 with other implementations to follow.

我們的供應鏈團隊不斷尋求機會來提高我們的網路效能。我們最近關閉了另一個美國分銷基地，並宣布計劃關閉另一個美國製造基地。幾個月來，我們一直致力於在歐洲第三季開始首次 ERP 部署。我很高興地通知您，明天，即 8 月 1 日，我們將在英國上線 SAP 4HANA。我們已經完成了一組非常強大的測試和模擬，現在我們將把重點轉移到 2024 年下半年在北美上線，隨後將進行其他實施。

Today, we have clearly articulated Phase 2 of our plans to transform DENTSPLY SIRONA. We have demonstrated our ability to deliver on such objectives with our success to date in Phase 1, and we are confident we can deliver on these new initiatives and investments as we strive towards making DENTSPLY SIRONA, the preeminent partner for dentists, hygienists, and practice owners around the world.

今天，我們明確闡述了 DENTSPLY SIRONA 轉型計劃的第二階段。到目前為止，我們在第一階段的成功已經證明了我們實現這些目標的能力，並且我們有信心在我們努力將登士普西諾納打造成牙科醫生、衛生師和診所的卓越合作夥伴的過程中實現這些新措施和投資。

Now let me close with a few remarks on slide 9. Last year, we committed to taking decisive action, and this was not a singular statement in time. We want to capitalize on the opportunity that the dental industry affords an organization like ours. And we believe that the actions we have announced today as well as those we took in Phase 1 will continue to drive efficiency and position us well in this evolving market.

現在讓我對投影片 9 做一些評論作為結束。去年，我們承諾採取果斷行動，這並不是單一及時的聲明。我們希望利用牙科行業為像我們這樣的組織提供的機會。我們相信，我們今天宣布的行動以及我們在第一階段採取的行動將繼續提高效率，並使我們在這個不斷發展的市場中佔據有利地位。

We will continue to regularly assess our business, take decisive action, and pivot as needed to improve our company and its performance, particularly with respect to revenue growth, margin expansion, and EPS. Today, you've heard us expand on further decisive action that we are taking to not only aid our path to our $3 target, but to also improve and increase our proximity to our customers.

我們將繼續定期評估我們的業務，採取果斷行動，並根據需要進行調整，以改善我們的公司及其業績，特別是在收入成長、利潤率擴張和每股盈餘方面。今天，您已經聽到我們進一步採取果斷行動，這些行動不僅是為了幫助我們實現 3 美元的目標，也是為了改善和增加我們與客戶的距離。

To recap, we ended Q2 experiencing continued pressure on our capital equipment business. Our implants business in China has progressed well, while we continue to invest in the US business and do expect growth in the back half of 2024. Our auto business continues to be our fastest growing portfolio globally, notwithstanding the previously mentioned regulatory environment for bites in the US. Our new product launches, particularly in endodontics and Wellspect, have done well for us and we look forward to sharing more information with you at 2024 progresses.

回顧一下，我們在第二季末經歷了資本設備業務的持續壓力。我們在中國的植體業務進展順利，同時我們繼續投資美國業務，預計 2024 年下半年將成長。儘管前面提到了美國的監管環境，但我們的汽車業務仍然是我們全球成長最快的投資組合。我們的新產品發布，特別是在牙髓學和 Wellspect 領域，為我們帶來了良好的效果，我們期待在 2024 年與您分享更多資訊。

And with that, I will open it up for questions.

接下來，我將開放提問。

(Operator Instructions)

（操作員說明）

Brandon Vazquez, William Blair.

布蘭登·巴斯克斯，威廉·布萊爾。

Maybe first, I'll focus a little bit on macro. I mean, it's something that's on everyone's mind these days, and it seems like in certain areas deteriorating a little bit. So maybe can you just spend a couple of more minutes talking about the specific segments? Is this broad-based? Or is this equipment specific where you're seeing macro worsening and what's the exit trajectory of macro conditions as we're going into the back half of the year now for the segments?

也許首先，我會稍微關注宏觀。我的意思是，這是現在每個人都在考慮的事情，而且在某些領域似乎有所惡化。那麼也許您可以再花幾分鐘討論具體的部分嗎？這基礎廣泛嗎？或者，該設備是否特定於您看到宏觀惡化的情況？

Yeah, Brandon, this is Glenn. I'll start. I think first and foremost, I'm not seeing a worsening trend in terms of the macro environment. I think on the equipment side, certainly a challenging environment. It's been challenging for the last several quarters. The biggest challenges for us continue to be Germany, parts of Asia including Japan and Australia and the US market.

是的，布蘭登，這是格倫。我開始吧。我認為首先也是最重要的一點是，我沒有看到宏觀環境出現惡化的趨勢。我認為在設備方面，肯定是一個充滿挑戰的環境。過去幾季一直充滿挑戰。我們面臨的最大挑戰仍然是德國、亞洲部分地區（包括日本、澳洲）和美國市場。

So I wouldn't say it's gotten any worse, but certainly when we look at the equipment market, it's a challenging market.

所以我不會說情況變得更糟，但當我們審視設備市場時，可以肯定的是，這是一個充滿挑戰的市場。

On the consumable side, I would say that patient traffic has been pretty stable. We have seen a bit of a decline in some of the specialty procedures and elective procedures. So aligners and implants, as an example, in the US market. That was confirmed also with our external survey that we do. And so those are overall some of the trends that we're seeing. But Simon, maybe you want to comment as well.

在消耗品方面，我想說患者流量相當穩定。我們看到一些特殊手術和選擇性手術有所下降。以美國市場的矯正器和植入物為例。我們所做的外部調查也證實了這一點。這些是我們所看到的總體趨勢。但是西蒙，也許你也想發表評論。

I think we noted previously that for some of those specialty procedures that patients actually finance their their treatment. So when you have a continued inflationary environment, they are less likely to finance those procedures. And some of the details from the survey reaffirm that this past quarter.

我想我們之前已經注意到，對於某些特殊手術，患者實際上會資助他們的治療。因此，當通貨膨脹環境持續存在時，他們就不太可能為這些程序提供資金。調查中的一些細節再次證實了上個季度的情況。

Okay. Thanks. And then a lot of other updates to hit on. I'm sure other analysts will get to, but I'll maybe focus on the other top inbound and discussion I usually have with investors, which is if macro is performing a little bit worse today, guidance has to come down a little bit. I know, Simon, you were touching on this 2026 EPS target. Help us frame out what macro needs to happen in order to get there. Still, we're tracking a little bit behind that now and what needs to happen in the next two years to still hit that 2026 EPS target in terms of macro? And should we maybe be thinking of that one-third macro in the EPS bridge as something that is coming a little bit lower at this point? Thanks, guys.

好的。謝謝。然後還有很多其他更新。我相信其他分析師也會談到這一點，但我可能會關注我通常與投資者進行的其他頂級入境和討論，即如果今天宏觀表現稍差一些，指導必須下降一點。我知道，西蒙，您談到了 2026 年每股盈餘目標。幫助我們制定需要採取哪些宏觀措施才能實現這一目標。不過，我們現在的追蹤有點落後，未來兩年需要發生什麼才能在宏觀方面仍然達到 2026 年每股收益目標？我們是否應該將 EPS 橋中的三分之一宏視為此時會稍微降低一點？謝謝，夥計們。

Yes, thank you, Brandon, for you as well. As we noted at Investor Day and each quarter, since our assumptions around that target were predicated on a more normalized macro environments. And we have we have still yet to see that, albeit the reports about reduced interest rates continue to Swirl, but it's going to take more than one of those.

是的，布蘭登，也謝謝你。正如我們在投資者日和每個季度所指出的，因為我們圍繞該目標的假設是基於更正常化的宏觀環境。我們還沒有看到這一點，儘管有關降息的報道仍在不斷湧現，但這將需要不止一份這樣的報道。

What you heard is describe today was a balance between aiding our path to the target, but also taking decisive steps to invest in the areas to continue the transformative journey that we are on to invest in orthodontics to invest in our new inside sales team, which will drive increased demand to invest in e-commerce and to streamline our organization.

您今天所聽到的描述是在幫助我們實現目標的道路上取得平衡，同時也採取果斷措施投資於這些領域，以繼續我們正在進行的變革之旅，投資於正畸，投資於我們新的內部銷售團隊，這將推動對電子商務的投資和精簡我們的組織的需求增加。

So on oil, while satisfying some of our investor needs and desires internally as well. We are also extraordinarily focused on transforming this company into a company that provides long-term shareholder value by investing in the high-growth categories that we laid out at Investor Day.

在石油方面也是如此，同時也在內部滿足我們投資者的一些需求和願望。我們也非常致力於透過投資我們在投資者日上列出的高成長類別，將這家公司轉變為一家提供長期股東價值的公司。

And Brian, I would just add that the two-thirds of that bridge that are in our control, we are on track to delivering we are executing against those plans. So obviously, the macro piece and getting back to a normalized macro environment looks to be more challenging, but that's why we've announced some of the additional actions that we're taking today. And as we move forward to continue to drive towards that $3 EPS number.

布萊恩，我想補充一點，這座橋的三分之二在我們的控制之下，我們正在按計劃交付我們正在執行的計劃。顯然，宏觀部分和回到正常化的宏觀環境看起來更具挑戰性，但這就是我們今天宣布採取的一些額外行動的原因。隨著我們繼續朝著每股 3 美元的目標前進。

Kevin Caliendo, UBS.

凱文‧卡里恩多，瑞銀集團。

This is Dylan Finley on for Kevin. Just honing in on some of those comments about your non-renewal of the agreement with Patterson for equipment, I guess from here, does it make sense to work with another distributor or is this a pivot in model entirely knowing your go-to market strategy here? And then secondarily, any context on the timing of when this current contract expires? Thanks.

我是凱文的迪倫芬利。只是針對您不續簽與帕特森設備協議的一些評論，我想從這裡開始，與其他經銷商合作是否有意義，或者這是完全了解您的市場策略的模型的支點這裡？其次，關於當前合約何時到期的時間有什麼背景嗎？謝謝。

It's Simon. The distributors we partner with globally are extraordinarily valuable to us. We feel we are extraordinarily valuable to them as well. We have been discussing with Patterson for some time about about our relationship and we felt that this was an appropriate time to begin negotiations about renewing contracts, et cetera, et cetera.

這是西蒙。我們在全球範圍內合作的經銷商對我們來說非常有價值。我們覺得我們對他們來說也非常有價值。我們與帕特森討論我們的關係已經有一段時間了，我們認為現在是開始就續約合約等問題進行談判​​的合適時機。

And given the value that we bring to them, given the new products that we introduce, et cetera, et cetera. So we very much hope that we get to an agreement a new agreement with Patterson that is more reflective of some of the environment we're in and of the value that we create. And but for now, for the next 12 months, the current contract remains in place and we will continue to partner with them.

考慮到我們為他們帶來的價值，考慮到我們推出的新產品等等。因此，我們非常希望與帕特森達成一項新協議，該協議更能反映我們所處的環境以及我們創造的價值。但就目前而言，在接下來的 12 個月內，目前的合約仍然有效，我們將繼續與他們合作。

Thanks. And then just as a follow-up. No change expected to how you deal with them in terms of your consumables, this is exclusively focused on the equipment that you distribute?

謝謝。然後作為後續行動。預計您在消耗品方面處理它們的方式不會發生變化，這完全集中在您分發的設備上？

That is correct. And just as a reminder, Patterson does the distribution of equipment in both the US and Canada.

這是正確的。提醒一下，帕特森在美國和加拿大負責設備的分銷。

David Saxon, Needham & Company.

大衛‧撒克遜，李約瑟公司。

Maybe I'll start with Glenn on margins. So it looks like first half EBITDA margin is at 17.2%. Obviously, you're reiterating the above 18% guidance for the year. So can you just walk through the bridge to getting second half closer to 19%. I think what's implied how much of this new restructuring program helps out in the back half? And what other factors to help drive that margin improvement?

也許我會從邊緣的格倫開始。因此，上半年 EBITDA 利潤率為 17.2%。顯然，您重申了今年 18% 以上的指導方針。那麼你能不能透過這座橋讓下半場接近 19%。我想這個新的重組計畫對下半年有多大幫助意味著什麼？還有哪些因素可以幫助推動利潤率提高？

If you look at our EBITDA margin progression here, we grew sequentially about 70 basis points from Q1 to Q2 at 17.5%. I would expect we'll see another sequential improvement in Q3 to around 18% based upon some my color that I gave as part of my prepared remarks and then about 20% or even a little bit north of that in Q4.

如果您在這裡查看我們的 EBITDA 利潤率進展，您會發現我們從第一季到第二季連續成長了約 70 個基點，達到 17.5%。根據我在準備好的評論中給出的一些顏色，我預計我們將在第三季度看到另一個連續改善，達到 18% 左右，然後在第四季度大約 20% 甚至稍微高一些。

So clearly, the the hockey stick is going to be in Q4 and a lot of that is going to come from lower OpEx expenses and all the cost reduction efforts that we're doing from both our previous restructuring plan. And now we're seeing the full benefit of those actions, coupled with some of the newer actions that we have outlined this morning.

很明顯，曲棍球棒將在第四季度出現，其中很大一部分將來自較低的營運支出以及我們在先前的重組計劃中所做的所有成本削減努力。現在我們看到了這些行動的全部好處，再加上我們今天早上概述的一些新行動。

So our OpEx is expected to come down. Had -- did come down in Q2 on an absolute basis that will continue to happen in the back half of the year. And then we do expect a slight improvement in gross margins in Q3 and then another improvement in Q4. And so that's the progression of margins for the rest of the year.

因此我們的營運支出預計會下降。第二季確實出現了絕對下降，這種情況將在今年下半年繼續發生。然後我們確實預計第三季的毛利率將略有改善，然後第四季將再次改善。這就是今年剩餘時間的利潤率進展。

And then maybe this is for Simon, just on CTS. So it sounds like E&I is still facing some challenges, you have some unfavorable mix and CAD/Cam going to Primescan Connect. You talked about some improved execution expected in the second half. I guess how should we think about for year 2024 growth at this point, is it closer to down double digits? And then with interest rates, obviously impact on demand. So with a potential rate cut in September. How does that impact? How you think about the level of demand to be? Will that be enough or do we need to see two, three, four rate cuts before demand really recovers? Thanks so much.

也許這是給 Simon 的，就在 CTS 上。因此，聽起來 E&I 仍然面臨一些挑戰，您有一些不利的組合和 CAD/Cam 進入 Primescan Connect。您談到了預計下半年執行力會有所改善。我想現在我們應該如何考慮 2024 年的成長，是否接近兩位數下降？然後是利率，顯然對需求的影響。因此，九月可能會降息。這有何影響？您認為需求水準如何？這是否足夠，還是我們需要看到兩次、三次、四次降息才能真正恢復需求？非常感謝。

This is Glenn. I'll take the question on. If we look at our CTS business in the second half of the year, we're modeling to be down low single digits, which would be an improvement from what we saw in the first half of the year. We clearly recognize it's a challenging environment. Having said that, there's a lot of reasons to believe that we will see better performance in the second half of the year versus first half of the year.

這是格倫。我來回答這個問題。如果我們看看下半年的 CTS 業務，我們的模型將下降低個位數，這將比我們上半年看到的情況有所改善。我們清楚地認識到這是一個充滿挑戰的環境。話雖如此，我們有很多理由相信我們下半年會看到比上半年更好的表現。

So first, I would highlight what we're seeing in terms of retail demand in the US with our imaging business, we were actually flat in our imaging business on a retail level. So we were down double digits. Wholesale which is what we report revenues out. But from a retail perspective, it was encouraging to see a pickup in demand on imaging on a retail level, and that should lead to dealer orders coming forward.

首先，我要強調我們在美國成像業務的零售需求方面所看到的情況，實際上我們的成像業務在零售層面上持平。所以我們的業績下滑了兩位數。批發就是我們報告的收入。但從零售角度來看，零售層級的影像需求回升令人鼓舞，這應該會導致經銷商訂單增加。

In the second half of the year, we talked about the ortho fellows relaunch of our 2D and 3D imaging machine in Germany. Seeing a good momentum they're starting to convert those orders now to sales. We're going to be also relaunching that product in the rest of Europe and Asia in the second half of the year. So that should be a bit of a help.

今年下半年，我們談到了 Ortho Fellows 在德國重新推出我們的 2D 和 3D 成像機。看到良好的勢頭，他們現在開始將這些訂單轉化為銷售。我們也將在今年下半年在歐洲和亞洲其他地區重新推出該產品。所以這應該有一點幫助。

I mentioned earlier as well, our new product launch, we're very excited about. We'll be more specific on what that is in the very near future, but that should drive incremental momentum in sales in the back half of the year.

我之前也提到過，我們對新產品的推出感到非常興奮。我們將在不久的將來更具體地說明這一點，但這應該會推動今年下半年的銷售成長勢頭。

We've got our DS World event coming up in Las Vegas in September that typically leads to a lot of momentum going into and coming out of that conference. Q4 seasonality should help us. Typically it's a stronger quarter. We've got easier comps in the second half of the year versus first half of the year. Germany actually has shown signs of improvement in our survey, albeit slight improvement, but it's moving in the right direction for the first time in over a year. And obviously, we call it Germany because of the significance of the equipment business in that market.

我們將於 9 月在拉斯維加斯舉辦 DS World 活動，這通常會為該會議帶來巨大的動力。第四季的季節性應該對我們有幫助。通常這是一個強勁的季度。與上半年相比，我們下半年的比賽更容易。德國在我們的調查中實際上已經顯示出改善的跡象，儘管略有改善，但一年多來首次朝著正確的方向前進。顯然，我們稱之為德國，因為設備業務在該市場中的重要性。

And then just lastly, there's some favorable reimbursement trends that we're seeing in places like Japan with intraoral scanning. And so there's a lot of things that are going to help us. I think in the second half of the year, with all the things that I just mentioned, we're still modeling to be down, but not down as much as we saw in the first half of the year.

最後，我們在日本等地看到口內掃描出現了一些有利的報銷趨勢。所以有很多事情可以幫助我們。我認為，在今年下半年，考慮到我剛才提到的所有事情，我們仍然會下滑，但不會像上半年那樣下滑。

Simon, I don't know if you want to comment

西蒙，我不知道你是否願意發表評論

Just a quick comment, David, on scanners, I think we've spoken before about the importance of scanners for our business and to unlock value in other parts of our portfolio. In Q2, we had another pretty strong scanner quarter. The mix had shifted, but we had a really strong quarter in standalone Primescan and Primescan Connect and the more challenging quarter in the full line CEREC scanner.

大衛，關於掃描儀，我想簡單評論一下，我想我們之前已經談到過掃描儀對我們業務以及釋放我們產品組合其他部分價值的重要性。在第二季度，我們有另一個相當強勁的掃描器季度。組合已經發生了變化，但獨立的 Primescan 和 Primescan Connect 季度表現強勁，全系列 CEREC 掃描器季度更具挑戰性。

So as you roll forward into a more normalized or even an improved macro environment, having scanners in the marketplace is crucial for us to be able to unlock value quickly in the rest of our portfolio, chairside, aligners, implants, and so on so forth. So we are we are pleased with our scanner performance in Q2, expect that to continue for the rest of the year.

因此，當您進入更標準化甚至改進的宏觀環境時，在市場上擁有掃描器對於我們能夠快速釋放我們其他產品組合（椅旁、對準器、植入物等）的價值至關重要。因此，我們對第二季的掃描器效能感到滿意，預計今年剩餘時間將繼續如此。

Elizabeth Anderson, Evercore ISI.

伊麗莎白·安德森，Evercore ISI。

I had two main questions. One, help us parse out the pricing degradation impact either from competition or from trade downs on equipment versus maybe what's more on the macro side. And then I was intrigued to hear your comment about the improving business in China. Obviously, we're comping against some VBP type quarters, but it obviously at odds to most of the commentary we're hearing about China these days. So just a little bit more detail on what's driving that would be very helpful. Thank you.

我有兩個主要問題。第一，幫助我們分析價格下降的影響，無論是競爭或設備貿易下降，也許還有宏觀的影響。然後我很高興聽到你對中國業務改善的評論。顯然，我們正在與一些 VBP 類型的季度進行比較，但這顯然與我們這些天聽到的有關中國的大多數評論不一致。因此，只要詳細了解驅動因素，就會非常有幫助。謝謝。

On pricing, we have seen some pricing pressure on the imaging side of our business. I'd say that's pretty much been offset in total with our EDS portfolio. So we look at our pricing across our entire business is flat with some pressure on equipment that is being offset with EDS. So it's overall, I would say, having a neutral effect.

在定價方面，我們的成像業務面臨一些定價壓力。我想說，我們的 EDS 產品組合幾乎完全抵消了這種影響。因此，我們認為我們整個業務的定價持平，設備上的一些壓力正在被 EDS 抵消。所以我想說，總的來說，它具有中性的影響。

What we have seen, though, is more volume coming from lower priced products. So Primescan Connect had a really strong quarter. It comes at a lower price point. And so obviously, that results in lower revenues on equal volumes, if you will. And so that's been part of the dynamics that we're seeing in terms of the top line and also some of the impact on gross margins because Primescan Connect has lower gross margins than our other Primescan offerings. So on the pricing side, those are the dynamics that I would call out.

不過，我們看到的是價格較低的產品帶來了更多的銷售量。所以 Primescan Connect 的季度業績非常強勁。它的價格較低。很明顯，如果你願意的話，這會導致同等數量的收入下降。因此，這是我們在營收方面看到的動態的一部分，也是對毛利率的一些影響，因為 Primescan Connect 的毛利率低於我們其他 Primescan 產品的毛利率。因此，在定價方面，這些就是我要指出的動態。

In terms of China, we had another really strong quarter in China. Overall, we grew high single digits. On the implant side. We actually grew over 30%. For the rest of the year, though, we do expect it to moderate. And so if we look our implants business as an example, I would tell you that China is likely going to show slower growth on the implant side because we lap tougher comps, but we do expect to see better performance in the US.

就中國而言，我們在中國度過了另一個非常強勁的季度。整體而言，我們實現了高個位數成長。在植體一側。我們實際上增長了 30% 以上。不過，在今年剩餘時間裡，我們確實預期其成長率將會放緩。因此，如果我們以我們的植入物業務為例，我會告訴你，中國在植入物方面的成長可能會放緩，因為我們的競爭更加激烈，但我們確實預計在美國會看到更好的表現。

And we've talked about that previously. We've got a lot of things that are showing progress there, and that should offset some of the moderation that we're seeing in China in the back half of the year.

我們之前已經討論過這一點。我們在很多方面都取得了進展，這應該會抵消今年下半年我們在中國看到的一些放緩。

And Elizabeth, we did have a strong quarter in China in EDS, but it is no different from any other region with respect to CTS.

伊麗莎白，我們在中國的 EDS 季度確實表現強勁，但就 CTS 而言，它與任何其他地區沒有什麼不同。

Michael Cherny, Leerink.

麥可·切爾尼，萊林克。

This is Dan Clark on for Mike. Just a question going back to the Patterson non-renewal. Could you just help us size in terms of the revenue, are the growth that come from the business that's flown through Patterson and like how should we kind of think about that going further forward, whether there is a renewal or not in 2025?

這是麥克的丹·克拉克。這只是一個回到帕特森不續約的問題。您能否幫我們了解收入規模，成長是否來自透過帕特森的業務，以及我們應該如何考慮未來的發展，無論 2025 年是否續約？

Yeah. So I think first and foremost, I'll give you the publicly available information from our latest 10-K, which was 2023 data. So both Patterson and shine account for about 21% of our annual revenues. So you can think of that as north of $800 million, China is about 14% of that and Patterson's about 7%. So it gives you rough magnitude of the two distributors. So that means Patterson's in that $275 million type range.

是的。因此，我認為首先也是最重要的，我將向您提供來自我們最新 10-K 的公開信息，即 2023 年的數據。所以 Patterson 和 Shine 都占我們年收入的 21% 左右。所以你可以認為在 8 億美元以上，中國約佔其中的 14%，帕特森約佔 7%。因此它可以為您提供兩個分銷商的粗略規模。所以這意味著帕特森屬於 2.75 億美元的範圍。

As a reminder, Patterson is predominantly the US and Canada. They do very little business outside of North America. They're heavily equipment for us. So if you look at the split of their sales, it's about 70% equipment, 30% consumables. China is more 50-50 on equipment consumables. And China is a much more balanced geographically with half the revenues in the US half outside the US.

提醒一下，帕特森主要來自美國和加拿大。他們在北美以外的地區業務很少。它們對我們來說是重型設備。因此，如果你看一下他們的銷售額分佈，你會發現大約 70% 是設備，30% 是消耗品。中國在設備消耗品上更是50-50。中國在地理上更平衡，一半的收入在美國，一半在美國以外。

So those are the overall numbers for our two big distributors. Obviously, we work with other distributor partners as well. And if you look at our total business, we do about two-thirds of our total sales through distribution globally. So hopefully that gives you some framing out of the size of our distribution business.

這些是我們兩大經銷商的總數。顯然，我們也與其他經銷商合作夥伴合作。如果你看看我們的總業務，你會發現我們總銷售額的大約三分之二是透過全球分銷實現的。希望這能讓您對我們的分銷業務規模有所了解。

Jon Block, Stifel.

喬恩·布洛克，斯蒂菲爾。

I guess I'm going to go down a similar road and maybe just as a big first question in a tighter second one that non-renewal to Patterson, we think about is that a function of China's Global Reach in terms of why they're called better insulated? Or is it just the timing of contracts? How do we think about other domestic distributors that I guess you're working with?

我想我會走類似的道路，也許就像第二個問題中的第一個問題一樣，即不續約帕特森，我們認為這是中國全球影響力的一個功能，因為他們為什麼所謂絕緣更好？或只是合約的時間安排？我們如何看待與您合作的其他國內經銷商？

And so I mean, I'm sure some of this is sensitive, but any color would be helpful? And then just to tack on to that, Glenn, your comment to the prior question of two-thirds of your sales, I think you said is through distribution globally, similar with some of those investments that you talked about, just how we think about that two-thirds percentage trending longer term with the ongoing investments in your own sales force? And I promise a second will be tighter? Thank you.

所以我的意思是，我確信其中一些是敏感的，但是任何顏色都會有幫助嗎？然後，格倫，您對之前問題的三分之二銷售額的評論，我認為您所說的是通過全球分銷，與您談到的一些投資類似，只是我們的想法隨著對您自己的銷售隊伍的持續投資，三分之二的百分比會呈現長期趨勢嗎？我保證第二次會更緊？謝謝。

The non-renewal is exclusive to Patterson in the US and Canada. We have 12 months left to run and that we hope we get to a new agreement on that is more reflective of, as I said in the prepared remarks, the current environment and the value that we bring to Patterson specifically. And in relation to your comment on the investments we are making. As all distributors distribute products for many different companies. And we feel it's incumbent upon us to create our own demand and to have our sales forces in front of customers and customers as frequently as possible. So that the end customer then requests either of our own channel in endodontics and ortho, for example, or whatever distribution partner they work with that, they would like to buy your XYZ from DENTSPLY SIRONA.

不續約僅限於美國和加拿大的帕特森。我們還剩下 12 個月的時間，我們希望達成一項新協議，正如我在準備好的發言中所說，該協議更能反映當前的環境以及我們為帕特森帶來的具體價值。關於您對我們正在進行的投資的評論。由於所有分銷商都為許多不同的公司分銷產品。我們認為，我們有責任創造自己的需求，並讓我們的銷售人員盡可能頻繁地出現在客戶和客戶面前。因此，最終客戶隨後會要求使用我們自己的牙髓學和矯形器管道，或者他們與之合作的任何分銷合作夥伴，他們希望從 DENTSPLY SIRONA 購買您的 XYZ。

We have historically, I think abdicated responsibility for creating our own demand to our distributors. And I don't feel that is that is appropriate. We should be doing it ourselves and and allow the customers to make an educated decision on the products that they choose facilitated by the people who are experts on those products i.e., DENTSPLY SIRONA reps.

我認為，從歷史上看，我們放棄了為經銷商創造需求的責任。我覺得不合適。我們應該自己做這件事，並讓客戶在這些產品專家（即 DENTSPLY SIRONA 代表）的幫助下對他們選擇的產品做出明智的決定。

And I guess just to comment on where you see those two-thirds of sales currently through distributors going longer-term? I guess I'd be my follow-up to that. I wanted to shift gears and hit on a different topic by you guys called out legislation and the greater than 20% growth?

我想只是想評論一下您認為目前透過分銷商實現的三分之二的銷售額將在哪裡實現長期發展？我想我會是我的後續行動。我想換個話題，因為你們呼籲立法和超過 20% 的成長？

I think, Glenn, the new number was closer to 15%. I think it's been drip drip drip with some states. So I'd just be curious your thoughts on where does this go longer term? When we think out over the next couple of years, or do you feel like the states that have moved and you've largely ring-fence this as we think about things going forward? Thanks for your time.

格倫，我認為新的數字接近 15%。我認為有些州的情況一直在滴滴。所以我很好奇你對這件事的長期發展有何看法？當我們考慮未來幾年的情況時，或者您是否覺得各州已經採取了行動，並且在我們考慮未來的事情時，您基本上已經對此進行了圍堵？感謝您抽出時間。

So that legislation varies state-to-state, but there are some common themes between them all. We have done a number of things to mitigate that. Number one, we have invested in government relations or more investment in government and government relations to help states understand the process of direct-to-consumer aligners.

因此，各州的立法各不相同，但它們之間都有一些共同的主題。我們做了很多事情來緩解這種情況。第一，我們對政府關係進行了投資，或對政府和政府關係進行了更多投資，以幫助各州了解直接面向消費者的調整過程。

And then secondarily, we have we have adjusted our internal processes to facilitate these changes that some that some states are mandating.

其次，我們調整了我們的內部流程，以促進某些州強制實施的這些變革。

Then I would say, thirdly, the Byte plus model, which continues to gain some momentum and traction is also going to are going to help us here. I think the adjustment that you've seen in the growth rates is because of the incremental steps and arguably costs to patients because they have to take some time out of work to go to the dentist or do a teledentistry visit. So it's not a reflection on the product that we provide. It's a reflection of our rather on the internal steps that these regulations are enforcing or placing on potential customers. And it continues to evolve.

然後我想說，第三，位元組加模型，它繼續獲得一些動力和牽引力，也將在這裡幫助我們。我認為您在成長率中看到的調整是由於增量步驟以及可以說對患者造成的成本，因為他們必須花一些時間去看牙醫或進行遠距牙科就診。因此，這並不反映我們提供的產品。這反映了我們對這些法規強制執行或施加給潛在客戶的內部步驟。而且它還在不斷發展中。

Jeff Johnson, Baird.

傑夫·約翰遜，貝爾德。

Simon, I guess I want to stick on now the bigger picture theme here on the dealer relationships and what have you. I know everything you commented on here in the Q&A sounds like it's focused on Patterson. I want to go back to the transcript, but it sounded like to me, you also made a comment that, some of these relationships you're looking at are with dealers who do compete with you in certain product categories it sounds to me like it is the comment that would bring Shine into discussion as well.

西蒙，我想我現在想繼續討論經銷商關係以及您擁有的更大的主題。我知道你在問答中評論的所有內容聽起來都集中在帕特森身上。我想回到文字記錄，但對我來說，您也發表了評論，您正在考慮的其中一些關係是與在某些產品類別中與您競爭的經銷商的關係，這對我來說聽起來像這樣這一評論也將 Shine 納入討論。

But in one of your answers, you obviously talked about kind of the relationship still looking good with Shine. So just wondering what kind of footing are you on with China at this point? Is there any commentary you meant to be targeted even at them in the prepared remarks. And then I have one follow-up. Thank you.

但在你的一個回答中，你顯然談到了與 Shine 的關係看起來仍然很好。那我想知道您目前與中國的關係如何？在準備好的發言中，是否有任何你打算針對他們的評論？然後我有一個後續行動。謝謝。

Nope. No commentary about any other distributor Jeff, apart from the relationship with Patterson. But as I noted in response to John's question, we have a responsibility to create our own demand and funneling through the appropriate channel, whether it's the direct channel that we have in endo and Ortho, for example, or through distribution partners worldwide. I think we have a positive relationship with China. And indeed with Patterson, we just have to take take steps with Patterson to discuss renewed or alternative terms and conditions.

沒有。除了與帕特森的關係之外，沒有對任何其他經銷商傑夫發表評論。但正如我在回答約翰的問題時指出的那樣，我們有責任透過適當的管道創造我們自己的需求和管道，無論是我們在endo和Ortho方面的直接管道，還是透過全球分銷合作夥伴。我認為我們與中國有著積極的關係。事實上，對於帕特森，我們只需採取措施與帕特森討論更新或替代的條款和條件。

Yeah, understood. And I guess my other question would be you do talk about the inside sales force increasing the efforts there increasing some of the e-commerce investments, things like that?

是的，明白了。我想我的另一個問題是，您是否談論過內部銷售人員加大力度，增加一些電子商務投資之類的事情？

I'll go back and give John maybe a third crack at his question on the percentage that goes through dealers, I guess my question here is if you were in there with insight or if you're generating traction with inside sales force and getting orders for a general consumables product, would you put that order through the dealer. I guess I could understand you saying no, but that changes those dynamics and maybe strange those relationships as well.

我會回去給約翰第三次解答他關於經銷商百分比的問題，我想我的問題是你是否有洞察力，或者你是否正在吸引內部銷售人員並獲得訂單對於一般消耗品，您會通過經銷商下訂單嗎？我想我可以理解你說“不”，但這改變了這些動態，也許也讓這些關係變得奇怪。

So just trying to understand as you go down this path of bigger inside sales, would those orders generated through the inside sales and get transmitted to the dealers? Or would you have other plans for that?

因此，只要嘗試了解，當您走上這條更大的內部銷售之路時，這些透過內部銷售產生的訂單是否會傳輸給經銷商？或者您對此還有其他計劃嗎？

Yeah, I think, Jeff, I was or at least I hope I was very clear in the prepared remarks and questions thus far. That we want to create our own demand and we absolutely will funnel it through the appropriate channel. In some cases, that's our channel. And in other cases, such as the consumables you mentioned that is that a shine in the US or indeed some others in the US. And so we absolutely will go to those distributors.

是的，我想，傑夫，到目前為止，我已經或至少希望我在準備好的演講和問題中非常清楚。我們想要創造我們自己的需求，我們絕對會透過適當的管道傳遞它。在某些情況下，這就是我們的管道。在其他情況下，例如您提到的消耗品，它在美國或實際上在美國的其他一些國家很受歡迎。所以我們絕對會去找那些經銷商。

Jason Bednar, Piper Sandler.

傑森·貝德納，派珀·桑德勒。

A lot of detail today. I think a lot of folks have already covered a lot of the questions around the dealers here. I want to come back to the restructuring program, the Phase 2, maybe just more to get some help on some of the modeling of the pacing around the $80 million to $100 million of savings. I guess, how would you have us layer these into the model?

今天講了很多細節。我想很多人已經回答了很多關於經銷商的問題。我想回到第二階段的重組計劃，也許只是為了在圍繞 8000 萬至 1 億美元節省的節奏建模方面獲得一些幫助。我想，您如何讓我們將這些分層到模型中？

Glenn, is it linear more weighted towards '25, which had to wait till '26 to see the full annualized effect. And it looks like that's a gross savings figure, but you're clearly talking about some of the reinvestment plans and those things, Jeff was just mentioned on the inside reps. How should we be thinking, I guess, about the net savings level and I guess similar question, just CRD for linear net savings. Thanks.

Glenn，它是否對 25 年呈線性加權，必須等到 26 年才能看到完整的年化效果。看起來這是一個總儲蓄數字，但你顯然在談論一些再投資計劃和那些事情，內部代表剛剛提到了傑夫。我想，我們該如何思考淨儲蓄水平，我想類似的問題，只是線性淨儲蓄的 CRD。謝謝。

Yeah, I think the only thing we're going to comment on relative to the restructuring program is the savings are expected to be $80 million to $100 million over 12 to 18 months. Clearly, a lot of that will take place in 2025, but it is a 12 to 18-month window. We've indicated it's about 2% to 4% of the workforce that's going to be affected as a result. And I would expect there's probably somewhere around $40 million to $50 million of charges associated with this restructuring program as well.

是的，我認為我們對重組計劃唯一要評論的是，預計在 12 至 18 個月內將節省 8,000 萬至 1 億美元。顯然，其中大部分將在 2025 年發生，但這是一個 12 到 18 個月的窗口。我們已經指出，大約 2% 到 4% 的勞動力將因此受到影響。我預計，與此重組計劃相關的費用可能約為 4,000 萬至 5,000 萬美元。

In terms of the net savings, obviously, we're going to drop some to the bottom line to drive us towards the $3 EPS target. And then obviously, the reinvestments that Simon talked about should drive better top line performance and help to shore up some of our top line growth that we've got planned over the next several years. So that's I think what we're going to comment down at this time now.

就淨節省而言，顯然，我們將降低一些底線，以推動我們實現每股收益 3 美元的目標。顯然，西蒙談到的再投資應該會帶來更好的營收業績，並有助於支撐我們在未來幾年計劃的一些營收成長。這就是我想我們現在要評論的內容。

Simon, one for you. I think you mentioned in some of your remarks a shift into targeting the orthodontic channel with your clear aligner offering? I think I heard that right. I guess I always figured you had plenty of runway in the GP channel across the globe. But you're saying the orthodontic community is an opportunity for SureSmile.

西蒙，給你一個。我想您在一些言論中提到，您的透明矯正器產品將轉向矯正管道？我想我沒聽錯。我想我一直認為全球 GP 管道有足夠的跑道。但你說正畸社區對 SureSmile 來說是一個機會。

There's some intrigue there. It's completely untapped for you. Sure. But it's also dominated by a key competitor. I guess I'm curious how you respond on the opportunity you see in front of you with the GP channel. Is there some indicator there? And then what's the approach you're looking to take commercially with the orthodontists since you no longer have relationships there after selling the bracket and wire business few years ago?

這裡面有一些陰謀。它對你來說完全是未開發的。當然。但它也被一個主要競爭對手所主導。我想我很好奇您對 GP 頻道所看到的機會有何反應。那裡有什麼指標嗎？那麼，由於幾年前出售托架和鋼絲業務後，您不再與正畸醫生建立關係，因此您希望與正畸醫生採取什麼商業方法？

And we absolutely do still have some runway left in the in the GP channel where we are not suggesting we move away from that. In fact, the in Q2 we had sequential improvement in the number of new customers that we brought online. We had sequential improvement in the number of aligners sold per customer in Q2.

我們在 GP 頻道中確實還留有一些跑道，我們不建議我們放棄這一點。事實上，在第二季度，我們帶來的線上新客戶數量連續增加。第二季度，我們每位客戶銷售的矯正器數量連續增加。

But let's let's face facts. The majority of the volume is in the orthodontic specialty space, and we feel we have a compelling technology offering for the orthodontist with with SureSmile. We've spoken about that before. We also feel and this is based on customer feedback that our software solution is a an excellent solution.

但讓我們面對事實。大部分內容是在正畸專業領域，我們認為我們透過 SureSmile 為正畸醫生提供了引人注目的技術產品。我們之前已經談過這一點。我們也認為，這是基於客戶回饋，我們的軟體解決方案是一個出色的解決方案。

We do some work to do on it around the user-friendliness of it. And that's reflected in some of the some of the comments I make. But the other thing here, too, is orthodontists use three or four aligner brands in their offices. And today we are not one of those line of brands. So we would like to get on their on their formulary as well and give them a choice to choose a dentsply sirona clear aligner that's got great. Clinical outcomes is easy to use and has got great software, albeit somewhat difficult to use. And so we are going to endeavor to address that usability.

我們圍繞它的用戶友好性做了一些工作。這反映在我發表的一些評論中。但這裡的另一件事也是，正牙醫生在他們的辦公室使用三到四個矯正器品牌。如今，我們已不再是這些品牌之一。因此，我們也希望加入他們的處方集，讓他們可以選擇一款非常棒的 Densply Sirona 透明矯正器。臨床結果易於使用，並且擁有出色的軟體，儘管使用起來有些困難。因此，我們將努力解決可用性問題。

Anything on the commercial structure?

有什麼關於商業結構的嗎？

I think it's consistent with where we've invested in other areas. We will invest in and feet on the street in the in the orthodontic business moving forward are more feet on the street and the orthodontic business targeted at orthodontist.

我認為這與我們在其他領域的投資是一致的。我們將投資於正畸業務，並在未來將更多的業務投入到面向正畸醫生的正畸業務中。

Allen Lutz, BOA.

艾倫·盧茨，BOA。

Glenn, a couple for you. And are there any restructuring cost savings embedded in the updated 2024 guide? And then can you provide a little bit about where the headcount reductions will be focused? Thanks.

格倫，給你一對。更新後的 2024 年指南中是否包含任何重組成本節省？那麼能否介紹一下裁員的重點呢？謝謝。

I assume you're talking about the next phase of our transformation in your question. There's a small amount that's factored in associated with the '24 guide. I won't give the specific amount, but think of it as a couple of cents of EPS benefit.

我假設您在問題中談論的是我們轉型的下一階段。有一小部分與 '24 指南相關。我不會給出具體金額，但可以將其視為幾美分的每股收益。

In terms of the headcount, I think a generically speaking, we're just going to say that we see some marketing efficiencies across the organization and more reductions that can be done around some of the corporate functions.

就員工人數而言，我認為一般來說，我們只是想說，我們看到整個組織的行銷效率有所提高，並且可以圍繞某些公司職能進行更多削減。

And then for follow-up, I think someone already asked on macro, but following up a little bit on the customer survey from July, things getting a little bit weaker here. I guess if interest rates do come down, just trying to get a sense of your expectations how long would it take if interest rates do come down for maybe some of that to impact your business? Thanks.

然後對於後續行動，我認為有人已經問過宏觀問題，但對 7 月的客戶調查進行了一些後續調查，情況變得有點疲軟。我想如果利率確實下降，只是想了解您的預期，如果利率確實下降，那麼需要多長時間才能影響您的業務？謝謝。

Yeah, I mean, it's hard to say. I think certainly it would be a couple of moves on the rate side. So it's not one or two. It's probably three or four before we start to see some meaningful improvement. But I think consumer confidence, consumer sentiment would help a lot. I think seeing better patient traffic with our customers will help a lot because they make a lot of money on consumables and that would obviously be money they could use towards upgrading their technology and their offices and their practices. So those are other factors that we're looking at here as well.

是的，我的意思是，這很難說。我認為這肯定是利率方面的一些舉措。所以不是一兩個。可能要過三、四年我們才能開始看到一些有意義的改進。但我認為消費者信心、消費者情緒會有很大幫助。我認為看到我們的客戶的病人流量增加將會有很大幫助，因為他們在消耗品上賺了很多錢，這顯然是他們可以用來升級他們的技術、辦公室和實踐的錢。這些也是我們在這裡關注的其他因素。

I think with some of the innovation we have coming out that could move some of our customers as well. And again, the innovation I'm referencing is going to be out in the very near term.

我認為我們推出的一些創新也可能會感動我們的一些客戶。再說一遍，我提到的創新將在短期內推出。

Thank you. I am showing no further questions at this time. I will now turn it over to Simon Campion for closing remarks. Please go ahead.

謝謝。我目前沒有提出任何進一步的問題。現在我將把它交給西蒙·坎皮恩（Simon Campion）做總結發言。請繼續。

Thank you, everyone, for joining us today. And in closing, I would like to reiterate my thanks to the entire DENTSPLY SIRONA team for their valuable contributions to our organization. And their unwavering commitment to our customers. We are making progress advancing our ongoing transformation and creating an organization and a culture that will benefit all shareholders over the long term from customers to employees to investors. Thank you for your time today.

謝謝大家今天加入我們。最後，我想再次感謝整個 DENTSPLY SIRONA 團隊為我們組織所做的寶貴貢獻。以及他們對客戶堅定不移的承諾。我們正在不斷推進轉型，並創造一種組織和文化，讓所有股東（從客戶、員工到投資者）長期受益。感謝您今天抽出時間。

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

感謝您參加今天的會議。這確實結束了該程式。您現在可以斷開連線。