Envista Holdings Corporation (NYSE:NVST) Q1 2023 Earnings Conference Call May 3, 2023 5:00 PM ET Company Participants Stephen Keller - VP, IR Amir Aghdaei - President and CEO Howard Yu - CFO Conference Call Participants Elizabeth Anderson - Evercore ISI Jeff Johnson - Baird Erin Wright - Morgan Stanley Jon Block - Stifel Michael Cherny - Bank of America Brandon Vazquez - William Blair Operator My name is David, and I will be your conference call facilitator this afternoon. At this time, I would like to welc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR Securities Registered Pursuant to Section 12(b) of the Act: | Title of each class | Trading symbol(s) | Name of each exchange on which registered | | --- | --- | --- | | Common stock, $0.01 par value | NVST | New York Stock Exchange | Indicate ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________ FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39054 ENVISTA HOLDINGS CORPORATION (Exact name of registrant as specified in its charter) (Stat ...

Fourth Quarter 2022 Earnings Presentation February 8, 2023 Forward Looking Statements Q4 2022: Financial Metrics Certain statements in this press release are "forward-looking" statements within the meaning of the federal securities laws. There are a number of important factors that could cause actual results, developments and business decisions to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking stateme ...

Financial Data and Key Metrics Changes - For the full year 2022, core sales growth was up 4.1% with an adjusted EBITDA margin of 20.1%, representing a 40 basis point expansion over 2021 [8][24] - Fourth quarter sales increased 1.4% to $660.8 million, with core sales growth of 2.3% compared to Q4 2021 [30][33] - Adjusted EPS for Q4 was $0.52, a 13% increase year-over-year from $0.46 [33] Business Line Data and Key Metrics Changes - The orthodontics business saw over 15% core growth in 2022, driven by the Spark aligner system [16][34] - Specialty Products and Technology segment had a core revenue increase of 4.5% in Q4, while the Equipment and Consumables segment saw a 0.9% decline [33][37] - The implant-based tooth replacement business experienced solid mid-single-digit core growth in 2022, despite declines in China and Russia [22][35] Market Data and Key Metrics Changes - Developed markets grew 3.5%, with strong growth in Western Europe, while China and Russia saw significant declines [31] - Emerging markets grew low-single-digits, with China and Russia experiencing double-digit declines in Q4 [31][34] - The adjusted gross margin for Q4 was 56.2%, a decrease of 90 basis points year-over-year, primarily due to inflation and strong growth of Spark [31] Company Strategy and Development Direction - The company aims to accelerate growth, expand operating margins, and transform its portfolio through disciplined capital deployment [49][50] - The focus remains on being a leader in orthodontics and implant-based tooth replacement, leveraging premium offerings and digital capabilities [50][51] - The company is committed to continuous improvement and customer-centric culture, utilizing the Envista Business System (EBS) to drive productivity and operational efficiency [14][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth prospects of the dental market, despite short-term headwinds from economic uncertainties and geopolitical risks [11][46] - For 2023, the company expects low-single-digit core growth and adjusted EBITDA margins over 20%, with an anticipated acceleration in growth as China stabilizes [47][48] - Management highlighted the importance of monitoring patient traffic and appointment bookings, indicating resilience in patient demand but acknowledging potential volatility [12][46] Other Important Information - The company generated free cash flow of $95.1 million in Q4 and ended the year with over $600 million in cash [42][43] - Significant investments were made in long-term growth initiatives, with a focus on optimizing organizational structure to improve customer experience [25][43] Q&A Session All Questions and Answers Question: Health of the dental consumer in the U.S. and Europe - Management noted that patient demand remains resilient, with consistent bookings and patient traffic in specialty businesses, despite challenges in China and Russia [56] Question: Magnitude of VBP headwinds on EBITDA margin - Management indicated that VBP is expected to have a headwind of about 35% on pricing, which will likely be dilutive for the duration of 2023 [61][64] Question: Underlying trends in the first quarter - Management reported continued expansion of the Spark business and solid performance in implant sales outside China and Russia, while noting challenges in those regions [70][72] Question: European growth sustainability - Management expressed confidence in sustained growth in Western Europe due to systematic execution and strong relationships with orthodontists, beyond just DSO wins [81][87] Question: Share gains versus pricing in consumables - Management highlighted that the growth in the consumables business is driven by both share gains and targeted pricing strategies, with expectations for continued mid-single-digit to high-single-digit growth [92]

J.P. Morgan Healthcare Conference Amir Aghdaei President & CEO @ Envista Certain statements in this presentation are "forward-looking" statements within the meaning of the federal securities laws. There are a number of important factors that could cause actual results, developments and business decisions to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These factors include, among other t ...

Financial Data and Key Metrics Changes - Reported sales for Q3 2022 increased by 3.9% to $631.1 million, negatively impacted by 4.1% due to foreign currency exchange rates [34] - Core sales growth was 4.9% year-over-year, reflecting solid performance in Specialty Products & Technologies, offset by weakness in Equipment and Consumables [35] - Adjusted gross margin was 59.2%, a 40 basis point increase compared to the prior year, while adjusted EBITDA margin was 20.2%, approximately 60 basis points higher than Q3 2021 [37][38] Business Line Data and Key Metrics Changes - Specialty Products & Technologies segment core revenue increased by 11.3%, driven by strong growth in premium implants and the Spark business, which grew over 20% year-over-year [39] - Equipment and Consumables segment core sales decreased by 4.7%, primarily due to a slowdown in equipment business volumes, while consumables business saw solid growth [42] - The implant-based tooth replacement business grew mid-single digits, with premium implants showing high single-digit growth [40] Market Data and Key Metrics Changes - Western Europe delivered core sales growth of over 9%, while North America was flat due to higher exposure to traditional imaging equipment [35] - The business in China grew by 9.2% year-over-year, reflecting a ramp-up in activity post-lockdown [36] - Emerging markets continued to grow nicely, up over 15% compared to Q3 2021 [36] Company Strategy and Development Direction - The company aims to partner with dental professionals to improve quality of life through digitization and personalized oral care [11] - Focus on embedding sustainable environmental, social, and governance (ESG) principles into the strategy, with a recent sustainability report highlighting progress [29][32] - The company is committed to transforming its portfolio by investing in fast-growing specialty businesses and enhancing digital capabilities [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the dental market despite macroeconomic uncertainties, including inflation and geopolitical risks [16][51] - The company anticipates continued core growth and profitability, reiterating guidance for mid-single-digit core growth and an adjusted EBITDA margin of 20% for the full year 2022 [51] - Management highlighted the need for productivity improvements in the dental industry, indicating a strong demand for digital transformation [67] Other Important Information - The company generated $19.7 million in free cash flow in Q3 2022, with over $500 million in cash on hand [49][50] - Adjusted EPS for Q3 was $0.47, compared to $0.45 in the prior year [38] - The company is focused on optimizing its organizational structure to improve customer experience and deal with macro uncertainties [21] Q&A Session Summary Question: Current dynamics and outlook for Q4 and 2023 - Management noted that Q4 trends are consistent with Q3, with stable patient volumes and a focus on productivity improvements despite macro uncertainties [63][66] Question: VBP impact in China - Management indicated that while VBP is expected to reduce prices significantly in the public sector, they anticipate volume increases for winning bidders [72][73] Question: European core growth and normalization - Management acknowledged that growth in Europe has been influenced by easy comparisons from last year, but they remain optimistic about future performance [80][81] Question: Pricing strategy in the current environment - Management highlighted that pricing has improved, with over 150 basis points of growth coming from pricing actions, and they expect this trend to continue [85][86] Question: Spark business and customer engagement - Management reported double-digit growth in active Spark customers and emphasized their focus on specialists while also expanding to traditional orthodontists [95][96] Question: Traditional imaging outlook - Management noted that traditional imaging revenue is stable but facing challenges due to supply chain issues and macroeconomic factors, leading to a strategic deemphasis on certain geographies [120][124]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39054 ENVISTA HOLDINGS CORPORATION (Exact name of Registrant as specified in its chart ...

Financial Data and Key Metrics Changes - In Q2 2022, reported sales increased by 1.3% to $645.8 million, negatively impacted by 3.6% due to foreign currency exchange rates, while acquisitions contributed 0.9% growth [30] - Core sales growth was 4% year-over-year, reflecting solid performance in the Specialty Products and Technology segment, offset by weakness in the equipment and consumables segment [31] - Adjusted gross margin was 58.7%, an increase of 40 basis points compared to the prior year, while adjusted EBITDA margin was 19.7%, also up 40 basis points year-over-year [34][20] Business Line Data and Key Metrics Changes - The Specialty Products and Technologies segment saw core revenue increase by 9.6%, driven by strong growth in implants and the Spark clear aligner business [37] - The combined orthodontic businesses grew 17% year-over-year, with Spark revenue accelerating significantly [38] - The equipment and consumables segment experienced a core sales decrease of 4.7% compared to Q2 2021, with declines in both developed and emerging markets [41] Market Data and Key Metrics Changes - Western Europe delivered core sales growth of 11%, while North America increased by 0.5%, impacted by higher exposure to infection prevention and modest destocking [32] - The business in China was down 0.3% year-over-year due to extended lockdowns, but activity ramped up quickly as Shanghai reopened [32] - Emerging markets outside of Russia and China grew approximately 20% compared to Q2 2021 [33] Company Strategy and Development Direction - The company aims to partner with dental professionals to improve patient quality of life through digitization and personalization of oral care [10] - Strategic priorities include accelerating growth, expanding operating margins, and transforming the portfolio through disciplined capital deployment [51][52] - The acquisition of Carestream Dental's iOS business has been successfully integrated, with plans to enhance the DEXIS scanner within the DTX platform [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges from persistent inflation, supply chain issues, and geopolitical risks impacting the second half of 2022 [50] - Despite these challenges, management remains confident in the long-term resilience of the dental market and expects mid-single-digit core sales growth for the full year [51] - The company is focused on maintaining a strong balance sheet and ample liquidity to pursue additional growth opportunities [48] Other Important Information - The company generated $11.9 million of free cash flow in Q2 and ended the quarter with over $500 million in cash [48] - The DEXIS iOS solution received a 2022 Red Dot Design Award, highlighting its design and functionality [26] - The company signed a long-term agreement with dentalcorp, enhancing its position in the implant market in Canada [18] Q&A Session Summary Question: Market volumes outlook in different areas - Management sees a positive overall outlook, with strong patient traffic and continued investment from dental professionals despite macroeconomic concerns [58] Question: Distributor destocking impact - Distributor inventory has reduced by 25% to 30% as they prepare for an uncertain environment, impacting sales [65] Question: Updated guidance for the second half - Management expects mid-single-digit growth in the second half, driven by recovery in China and destocking normalization [71][72] Question: Trends throughout Q2 - Q2 was not linear due to the Shanghai lockdown, with a stronger performance in the last weeks of the quarter [80] Question: IOS business integration progress - The IOS business is expected to contribute $50 million to $60 million in sales for 2022, with strong growth potential anticipated [94]

Second Quarter 2022 Earnings Presentation August 3, 2022 Forward Looking Statements Certain statements in this presentation are "forward-looking" statements within the meaning of the federal securities laws. There are a number of important factors that could cause actual results, developments and business decisions to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These factors include, am ...