All right. Hi, everyone. My name is Jaden Rismay from the Life Science Tools and Diagnostics team here at J.P. Morgan. Thank you so much for joining us today. It's my pleasure to introduce Envista. Today's session will be 40 minutes with roughly 20 minutes of presentation, followed by 20 minutes of Q&A. If any of you in the room do have questions, feel free to either submit them on the portal or you can ping me directly. And with that, I'll turn it over to the Envista management team. OK, thanks, Jaden. Good morning, everybody. Thanks for joining us. Sharing the stage with me this morning is our CFO, Eric Hammes. As a reminder, this presentation will be recorded. It'll be available on the IR portion of our website later, and it does contain some forward-looking statements. Now, as some of you know, I joined Envista earlier this year in the spring, and Eric would follow a couple of months after that. He and I have spent most of our careers in and out of dental, and although we were both gainfully employed at the time, we jumped at the opportunity to come back to dental and to this company in particular for the three core beliefs you see on this slide. First, that dental is a secularly attractive industry. I'm going to say more about this here in the coming slides, but as a quick overview, it's about a $40 billion global category. It grows consistently in the mid-single digits, and it's supported by a number of clinical, demographic, and economic factors that support that long-term growth. In the same way, it tends to be quite a profitable industry. All of the participants in the value chain have the opportunity for good margins. Certainly true of our clinicians, who are our customers, most of the manufacturers, and even the distributors relative to other MedT ech categories in the parts of dental that aren't sold direct. Second core belief is that Envista has a very good portfolio of businesses that are focused on some of the most attractive sectors within dental. Now, this portfolio was first put together inside of Danaher. You'll remember in the early 2000s when Danaher shifted from being an industrial company to a health care company. They identified dental as a particularly attractive sector within the broader health care landscape, and then maybe 15 years after that, when Danaher focused or tightened their focus on life sciences, that led to Envista being spun out as an independent public company in 2019. I mentioned that Eric and I have been in and out of dental for decades, so we know this portfolio very well. We know it from a number of different vantage points, and we know that it's quite good. Third, importantly, dental, as I mentioned, has had long-term consistent growth, but of course went through an unusual disruption with COVID. This, plus some missteps on the part of Envista, led our company's performance to soften in 2023 and the first half of 2024. And it's the combination of those that we think creates a very interesting opportunity to help a great company perform again better in line with its vast potential. So now, nine months in, most of what I believed coming in has been borne out. Nothing has changed in the dental market. It remains very, very interesting. And now that I'm on the inside of Envista and can see the businesses firsthand, probably even stronger than I knew from the outside. And with that as an overview, let's just click through each of those three core tenets here of the value proposition in turn. And we'll start with the overall market. So total dental, so if you include the provision of care, what our customers do, the distribution of dental products, what our distribution partners do, and then the product piece in the middle where we are, it's about a $400 billion category. But we focus on these four product categories that you see here. We have been in and out of dental, different parts of the dental market across our history, but we like these four for a couple of reasons. First, there is a continuum of care that exists across the dental landscape. Almost every dental procedure has the same three steps. It has an upfront diagnostic step where you assess the patient's needs. It has a treatment planning step in the middle where you design the care. And of course, it has a therapeutic step, the actual treating of the case. Now, it's difficult to serve all three parts of the continuum, but if you can, there are efficiencies, clinical, economic, and operational, and Envista is one of a very small handful of companies that does serve the full continuum. Secondly, roughly two-thirds of our business focuses on these specialty categories, in particular orthodontics and implants. Both of those categories, as I'll say more about here in a moment, grow more quickly than overall dental, and they tend to have higher margins because they go direct to the customer without the distribution layer. Third, importantly, consumables and diagnostics touch almost every dental procedure, and so if you have the global scale where you can service those two parts of the market, they can be pretty attractive businesses in and of themselves. Here's that same group of product categories over time. We show a 10-year period here from 2013 to 2023. But those of you who follow the sector know you can pretty much pick any 5, 10, 15-year period you want. You will get that same 3%-5% CAGR. It's a GDP-plus growing category. We also, of course, added the last four years because of the important disruption that COVID put in there. For the most part, nobody in this room went to see a dentist for the 12-18 months during COVID. And then every one of us hopefully went in the year or two afterwards. So you had two years of demand packed into 2021 and 2022. And in many cases, the care that was postponed during COVID was a more complicated case afterwards. So now, in retrospect, we should have known there would be a softening to the dental market. That's exactly what we have seen. You may have heard in other dental presentations, there are two macro factors that also play a role in dental parts of the landscape, equipment, and some high-ticket procedures are financed, so interest rates play a role, and then dental is more sensitive than other parts of health care, so consumer confidence plays a role. You put all those together and you see the softening of the market over the past couple of years, but nothing has structurally changed in global dental in the last three years. Most forecasts that I've seen predict it will return to its normal 3%-5% long-term growth average. Let's talk a little bit about the underlying structural factors that support that long-term growth. Now, all markets that have long-term secular growth have at least one thing in common, that, of course, being that demand persistently exceeds supply. Sometimes it's a demographic driver. We see that in consumer sectors. Sometimes it's an innovation factor, like you see in tech. Here at a health care conference, of course, regulatory plays a role in a lot of health care sectors. Dental benefits from all three of those long-term growth drivers. It's well understood that populations around the world are aging. We are now quite literally outliving the biologic life of our teeth. By the age of 60, all of us in the room will have lost, on average, at least one of our teeth. And an unlucky 20% of us will have lost all of our teeth. I'll give you a moment to ponder that. Digitization, like the rest of health care, is very important here. Same kinds of technologies you hear about in other health care segments, 3D printing, digital treatment planning, customized prosthetics, all of that leads to meaningful productivity advantages for the customers, for the clinicians. Also leads to a much better clinical experience for you and I as patients, and then thirdly, economically, of course, expanding middle classes also expand the demand for health care, very true in dental, both for aesthetic reasons, but also for clinical reasons. Well-known connections between oral health and overall well-being. As you can see from this slide, these are not temporary factors. These are structural, foundational, long-term contributors that lead to that stable growth I showed on the previous chart. OK, having talked a little bit about the overall market, let's go into a couple of the sectors. Ortho and implants are the two largest specialty segments. They have a lot in common. The global ortho product market is about $6 billion in annual revenue, grows mid to high single digits. Despite its fast growth over time, though, it remains highly underpenetrated. Fewer than 5% of qualified patients, meaning those with a clinical indication as well as the economic wherewithal to pay for the case, fewer than 5% of qualified patients get treated in any given year. A couple of different reasons for that, but certainly part of it is that dental schools and residencies, like other parts of health care, are accredited by the clinicians. The ADA, through CODA, accredits those programs and wants to keep the quality level very high. So there's an ongoing deficit of clinicians to treat the patients. As I'll come on to in a moment, most of that training comes from the suppliers. You need a dental degree, a dental license, of course, to practice, but you don't need a special degree to do orthodontics or implants. So the suppliers, through customer education, can increase that supply. The orthodontic sector is principally comprised of two categories: fixed appliances, or what are more commonly called braces, and then clear aligners. In volume terms, about 70%-75% of all cases around the world are treated with braces. But because of the higher price point in clear aligners, in dollar terms, that's currently a bigger part of the global market. Now, as I mentioned, implants are very similar to ortho, similar in size, about $6 billion, similar in growth, mid-single digits, similar in terms of underpenetration. In this case, one out of every two people on the planet is missing a tooth. That is not exclusively or even principally a developing market phenomenon. The exact same ratio is true here in the U.S. And of those 4 billion people, fewer than 1% get an implant in any given year, again, largely because that procedure is very clinically sophisticated. So it takes a lot of training in order to participate. Having talked a little bit about the market, let me say now a few words about Envista, where and how we compete in it. Envista is a global dental player. We have two reporting segments. You see on the left side of the chart, SP&T, specialty products and technologies, about two-thirds of our business. Those are those two specialty categories I just mentioned. And then equipment and consumables is the remaining third. We have been serving the dental community for more than 130 years. I have accumulated more than 1,800 patents across that time. Several of the best-known innovations in all of dentistry have come out of Envista, the invention of dental implants, the invention of fixed-wire orthodontics, or modern orthodontics, the invention of panoramic X-rays, et cetera. Those are all part of the innovation history of our company. The portfolio, as you see on the right side of the slide, is very nicely balanced, balanced in terms of specialty category, balanced in terms of geography, and balanced in terms of go-to-market model. I talked about the category balance, two-thirds specialty, one-third ENC. Geographically, in the blue pie, about half our sales come from the U.S., which is by far the world's biggest dental market, and then a quarter each come from Europe and developing markets. Then in terms of go-to-market model, about 60% of our sales are direct to our customers. The remaining 40% go through our channel partners, with whom we work very, very collaboratively and closely. OK, let's now just quickly walk through each of those four businesses, and we'll start with the largest, implants. Envista has long been a leader in global implantology, including through our flagship brand, which is Nobel Biocare. In partnership with Dr. Brånemark back in 1965, this was the invention of the modern dental implant, the first two-stage implant placed in a live patient. From that auspicious beginning and the clinical advantage that came from that, a number of the other best-known inventions in implantology have come out of Nobel, the first zygomatic implant, the first angulated abutment, the all-important All-on-4 procedure for doing a full arch restoration. That's all thanks to Nobel. And supplementing our strength and premium, we have two very good challenger businesses, or what some in the industry call value implants. But across all three of them, we have complete implant systems, complete treatment planning, complete regenerative or biologic solutions, and then fully customized prosthetics as well. Now, across this leading brand, I mentioned that education is a very important part of expanding the provision of implants. We have 1,300 sales, marketing, and training people around the world. They do more than 1,200 events each year, and they touch more than 30,000 clinicians. Orthodontics, in the same way that Nobel has had a very important role in implants. Ormco, very critical to the growth of ortho over time. Dr. Larry Andrews, working with Ormco, invented that first fixed-wire system that I mentioned. Dr. Damon, a name those of you who are around dental will know well, the first full passive self-ligation system. Ormco remains the number one player in fixed appliances, and we have a number two position in clear aligners through our Spark brand. That has been entirely developed and funded in-house. It's gone from zero to almost $250 million in sales in five years, and the vast majority of orthodontists around the world treat with both modalities, depending upon what best fits the patient needs. They treat with braces, and they treat with clear aligners. There's only a couple of players who offer both, and we're the only player globally to do both at scale, which we think is a big advantage for our customers, and then, as you can imagine, creates efficiencies for us. Training and customer support are also very critical in this specialty segment. We have 500 commercial resources around the world, and they're pretty busy. They do 3,000 events and touch over 50,000 clinicians a year. Now, in addition to our strong position in specialty, we're a top three player in most consumables categories. Kerr is one of the best-known brands in all of dentistry. It has been around for more than 100 years and is synonymous with endodontics and with various restorative procedures, and Metrex is a global leader in infection prevention. Across our consumables family, we can be found in an incredible 90% of all dental clinics around the world. It's a very telling statistic of the importance of Envista to the global dental community. Our fourth business is diagnostics and digital treatment planning, so these guys cover those first two steps of the continuum of care that I mentioned. Because those are in almost every dental procedure, you can see on the chart that we impact more than 200 million dental procedures a year. DEXIS, one of our leading brands there, also has been very important to the development of diagnostics. They're pioneers in both 2D and 3D imaging. And as a consequence, they have the largest installed base in the U.S. and one of the largest globally. More than 165,000 active units are in service. In addition to that, we have intraoral scanning, treatment planning, et cetera. OK, having touched on the industry and our position in it, let me now say a bit more about the steps that we're taking to better access this exciting opportunity. We're focused on a short list of critical priorities this year that cluster around accelerating our growth, improving an already strong operational capability, and then investing in our wonderful people. In the interest of time, I won't drag you through all of them. I'll just touch on a couple from each of the three. On the growth side, as I mentioned, Nobel is our largest business, and North America is our largest market, very focused on the acceleration and the intersection of the two. We put about $25 million incrementally last year into accelerating growth in North America, about maybe one point of margin. We saw momentum build across the first three quarters of last year. We'll announce our fourth quarter here in a couple of weeks, and we expect to see continued benefits from those investments here in 2025. I mentioned that Spark has been a tremendous success for Envista. It's now at a scale that we expect it to turn operating margin profitable here in 2025. It's gross margin profitable. But as I said, we have fully funded that out of organic cash flow here to date. And as it turns from being a cash consumer to a cash generator, that'll be an important milestone for our company. On the operations front, very focused on both factory and overhead productivity. We expect the global dental market to return to its long-term average growth rate. And the work we're doing here then will be helpful in terms of earnings leverage. And then with respect to people, we've come a long way in nine months. When I joined, three important roles that report to the CEO, the CFO, and the president of both Nobel and Ortho were all open. We recruited three world-class leaders. You'll hear from Eric. You can judge for yourself on him. But all come from deep dental backgrounds, all have lived and worked in multiple parts of the world. All of them have really proven track records of creating value for all stakeholders. OK, let me wrap up the same way I started by talking about these three central tenets of the investment thesis here. First, in my mind, no question that dental is a securely attractive category. Again, now being on the inside of Envista, I tell you, a very good company with a particularly strong portfolio. And then third, we have the commercial reach. We have the operational capabilities. We have the high-performing culture to turn this vast potential into improved performance. So with that, I'll thank you for your kind attention. And turn it back, start the Q&A. OK. All right, perfect. So starting off, Paul, you were appointed CEO in April. Eric, you have been CFO since July. Can you both reflect on the progress made on your transition plans, since appointments, and what your key objectives are over the next 12 to 18 months? I sort of told you my view, so maybe I'll let Eric talk. Yeah, a couple of things. So I think one of the most important things for our investors and even our company from the very beginning was to reinstate guidance. That's important for multiple reasons, right? It's important so you all know where we're headed. It's important for our own credibility. But it also puts an onus on us to make sure that we've got good business predictability. So I would say a small step, but a pretty significant step for us to reinstate guidance and make sure that we're building investor confidence against that. Very much in line with that, we're working on predictability of our business, right? We know that over the past couple of years, the predictability has been a little bit less than we would have wanted it to be. So business predictability has been another thing. Paul mentioned several areas where we've been investing. We talk externally about $25 million this year, mostly in commercial front-end investments. So a big part of our focus is making sure that, number one, we know how those investments are being put in place. And we have a return on investment view as to how things are progressing. And of course, sort of an agility around where we continue to invest. We've talked about some of the green shoots in our most recent earnings calls. Paul and I will talk about it more as we get into fourth quarter. But importantly, returning our investment in the areas of that $25 million is an area of focus. And then maybe for me in particular, cash and capital allocation has been an area that myself and my team have been focused on. Paul and I have talked with many of you about our view relative to returning cash to shareholders. But before we work that agenda, we needed, one, to understand what our cash position was with Envista, where we had cash, and making sure that we have cash in the right places to organically invest in the right places, to be able to do a creative M&A in the right places, and then eventually to look at returning cash to shareholders. So those are a few of the areas, not to mention many other areas where we're focused. All right, perfect. Thank you. So you touched on this a little bit, but reinvestment into the business has been a key priority for you since you signed on after Envista's historically cut costs and has optimized a portfolio after spinning out of Danaher in 2019. Can you elaborate on this strategic shift and why you believe now is the right time to accelerate these reinvestments? And can you walk us through the specifics on what sort of investments are being prioritized? Yeah, to me, one of the things, of course, we all like about MedTech is that in high gross margin businesses with underlying long-term growth drivers, if you can accelerate growth, you can't spend the incremental gross margin dollars that they throw off. Some of our businesses are mid to high 60s gross margin businesses. And so over time, an investment in accelerating growth is very likely to generate a strong return. That's why beginning last year, very shortly after joining, I took that step to put more money in rather than to cut costs because of that algorithm that has played out so many times across my career. Most of the $25 million goes into Nobel. Most of it is focused, as I mentioned, on North America. But we are putting money into other really high margin businesses in that portfolio. And it typically clusters around the three same categories. About half of it goes into the commercial front end for reasons I understand but differ with. When I joined, we had open sales territories in implants and ortho. So quickly filled those. I mentioned the critical importance of training here. You can increase the supply. You can grow the category faster if there's more specialists who are doing these procedures. You don't place implants in dental school. You learn that when you get out, and the suppliers have an important role in providing that training. So that's a big part of it, and then third, of course, these are innovation categories. I mentioned the long legacy of important innovations that have built Envista. We took our eye off the ball a little bit there over the past two years, and we're back very focused on innovation. So that'd be my view. Yeah, perfect. Thank you. Then just going to 2025, 2024 was a challenging year for the dental end market. During 3Q, you characterized the total dental market as generally flat. Can you walk us through the expectations for customer demand in 2025? And do you expect the end market to materially improve in 2025? And ultimately, when do you expect the market to return to a more normalized growth? Yeah, most of the slowdown I showed on that chart can be explained with three factors. The biggest part of it is what you see in multiple health care categories. It is the normalization post-record, post-COVID surge. That's a big part of it. But there are two other macro factors that play in. I mentioned parts of the landscape get financed. Some procedures get financed. Large diagnostic equipment gets financed. And then, of course, our customers will finance the opening of new clinics. In particular, DSOs are financed. So interest rates play a role. And then consumer confidence comes in. No question it's a regulated industry. There's a reason there are only six global players on the product side. It takes decades, in our case, 100 years to get that full portfolio registered in 130 countries where we compete. But these are not like other MedTech categories where they're Class III or they're PMA regulatory paths. We don't have the same regulatory risk, nor do we have the same reimbursement volatility as other MedTech categories. The flip side of that is that means there's more discretionary consumer spend. So those of you who track consumer sentiment, it hit an all-time low in 2022. University of Michigan's been publishing statistics since 1965. All-time low in 2022 got into the low 50s. It's now back up about 20 points. So past couple of years, nice progression. But it's still 20 points, 20-plus points off where it was pre-COVID. So as the interest rates, you guys will know more than we will about what's going to happen there. But as they continue to go down, consumer sentiment continues to go up. We're very confident this market will return to pre-COVID levels. We have a top three position in several of the most attractive categories. We think that'll benefit us. Maybe just a couple of other points on that. So we choose our words carefully. And I think others have chosen a similar description of the market, soft but stable. And I think the reason that's important is because while we have seen lower growth and in some cases even negative market growth based on higher comp levels, the stable part of that comment is important. So as we look at the last couple of quarters, and we believe fourth quarter will be similar to this, the stable part of it means we believe the market has largely bottomed out. We see that in North America in equipment pretty clearly. We see that in the higher acuity spaces of premium implants or implants broadly, maybe to a lesser degree in aligners. But I think the point we're trying to make here is that while the market is soft, we do see the sequentials, how things have been moving the last few quarters and the last few months as being relatively stable. That generally bodes well for an eventual bounce, if you will, an eventual uptick in the market. We don't see much of that. And I think our peers have been saying the same thing just this week. But the stable part of it for us is important because it provides a bit of a firm foundation for the time being. That's helpful. And then just shifting to pricing, can you elaborate on the pricing trends you've observed for different parts of your portfolio and how has that impacted business performance in 2024? And how do you expect that to play out in 2025? Yeah, maybe three thoughts in this regard. So I mentioned it's a GDP plus grower, 3%-5% sort of category. The plus is typically price, two-three points of volume consistent with broader GDP growth, and then a point or two in price. That'd be a long-term comment. When Eric and I joined, we started sharing more information on price. Our last two earnings calls, we shared the net benefit from price. And it was in that same kind of range, a point to a point and a half. Third comment I would make is different pieces of that landscape are more or less price sensitive. We've been getting decent price on the consumable side of our business. That, however, is flattered by we have been, as part of this normalization after the post-COVID run-up, we have been normalizing the amount of inventory we've had in channel. As the distributors buy less, of course, they get less discounts. So that helps your price. We've also been getting decent price on both sides of our orthodontic business because we have a couple of product advantages that we think allow us to do that. It's been trickier to get price on the implant side. And then, as Eric mentioned, the global diagnostics category is in contraction. Very difficult right now to get price in diagnostics. That's great. Has the appointment of the Trump administration or has the Trump administration and some of the potential cabinet appointees changed customer spending outlooks for 2025? And can you also walk us through your potential tariff exposure? Sure. Let me take both parts of the equation. Again, as I mentioned, dental is certainly regulated, but not in the same way that other MedTech categories are. So policy changes in terms of CMS reimbursement or changes to the FDA would not impact dental in the same way that it might other health care businesses. So that'd be thought number one. Thought number two, specific to tariffs. Long before Eric and I got to Envista, we've always architected our supply chains with a local-for-local mindset. We principally do that for customer reasons. We like to source raw materials in the same region, hopefully the same country that we manufacture them. And then we like to serve our customers from a factory that's close to them. So all of our businesses have manufacturing in multiple parts of the world. Our implants business has factories in the U.S. and Europe, diagnostics U.S., Europe, our Spark business on three different continents. So hard to know what will happen with tariffs. I think the point I'd leave you with is that our supply chain allows us to be agile depending upon what happens. That's helpful. And just shifting on to implants, during 3Q, you noted that value implants have been growing more quickly than premium and have been growing for three consecutive quarters, including a mid-single-digit growth in value implants in North America. Do you expect this trend to continue in 2025? And at what point do you see value implants returning to a more normalized growth? Yeah, we do. We expect total dental to accelerate. As Eric said, we don't know if it'll be Q1, half one, half two. But all the structural drivers say it will return. And we expect implants to grow more quickly than total dental. We agree with your view that in recent past, value implants or challenger implants have grown more quickly than premium. That's because of this training phenomenon that I mentioned. There are more general dentists than there are specialists. You don't need a special license to place an implant. So if you can train a general dentist, they can do implant placement. They typically participate in the value segment. It's much more complicated in premium. That takes decades of training to participate there. So yes, we like both categories. We think implants as part of the global landscape, attractive. We think both premium and challenger, very attractive. And we have good positions in each. That's helpful. And then shifting on to Spark, could you elaborate on the investments made in Spark business throughout the year? And have they mostly been commercial-focused or elsewhere like Spark on demand? Do you see these investments translating to competitive share gains in the near to medium term? Yeah, there's three categories of investments we've made really over the last five years in building the Spark business. Some of them are discrete to clear aligners. Some of them, though, we get good efficiencies because of having the largest position in traditional orthodontics. So the three categories, first, of course, there's a manufacturing investment you need to make. From the outset, we intend to compete globally. So we made an important sizable investment. We have, as I mentioned, three factories, one for North America, one in Europe, and one in Asia. So that's a big investment. Second investment is around the commercialization of the product. It's a different procedure. There's different training courses to teach an orthodontist to do clear aligners versus fixed appliances. But it's the same sales force. It's the same marketing force. It's typically the same customer event. Again, most orthodontists do both fixed appliances and clear aligners. So we get good efficiencies there. The third piece is R&D. As you would expect, there's a lot more software and treatment planning and technology that goes into clear aligners than fixed appliances. A lot of that is in the software. But there's also investments in manufacturing technology that have allowed us to have many successive quarters of gross margin improvement in that business, very sophisticated manufacturing. This is mass customization. Not only is every case different, every aligner is different. And you have to have the sequencing of those aligners exactly right or N plus 1 doesn't fit if aligner N didn't do its job. So that's what the investment's going into. Great. On China, the business declined low double digits in 3Q, as you called out weak diagnostic sales and continued lowering channel inventories in the region. As we look to 2025, you have several moving parts related to VBP and macro. How should we think about growth in China in 2025 and in the longer term? Can you provide some more color on what you're hearing from your teams on the ground in the region? Sure. I mean, Eric lived in Hong Kong. You probably know more about it than I do. Yeah, so a couple of things. I would start by just saying that as we look at the global macro, the global market, China's probably the outlier right now given the complexities that you're mentioning. So slightly softer market in the near term, notwithstanding amazing opportunities for growth given the portfolio that we have. For us in particular, it's our premium implant business and it's Ormco, our orthodontic business. VBP, so we don't have the specifics on VBP for 2025, but we can see a pretty intentional lineup of VBP for orthodontics. The same individuals that worked on VBP for premium implants or implants broadly are the same team of individuals that are working on it for orthodontics. We do expect to have more information within the next couple of weeks. Our greatest, or call it best view, is that sometime late in the first half of 2025, we would expect to have the depth of information on VBP and an implementation in the market. As we look at that sort of view on a broad basis, we see it as favorable, right? So the growth or the opportunity for VBP is to grow the total number of users in the market. That was a successful play for implants. We saw the benefit of the volume offset by, of course, the lower prices throughout the channel and to end-to-end consumers. We have a good ortho business. We have a broad brackets and wires business in addition to aligners, and so we look for that to also be a good value driver in the long term, notwithstanding some of the challenges of implementation in the short term, and with that, we're out of time. Thank you, Envista, for joining us, and I would like to thank you all for attending. Thanks, everyone. Thanks, all.