DENTSPLY SIRONA (XRAY) investor relations material

Strategic priorities and organizational changes

• Immediate focus is on restoring health to the U.S. business through resource reallocation and efficiency improvements.

• Emphasis on investing in value-accretive activities, particularly field force and innovation, while reducing back-office costs.

• Leadership is implementing strict headcount control and prioritizing customer-facing and value-generating roles.

• Lean management practices are being adopted, with non-value-add roles consolidated and cost discipline enforced.

• Durable, long-term decisions are prioritized over short-term margin targets to ensure sustainable growth.

R&D and innovation investment

• R&D spending is set to increase from around 4-5% to 7% of revenue, representing tens of millions in incremental investment.

• New investments will target underfunded areas, especially Essential Dental Solutions (EDS), including both consumables and restorative products.

• Accelerated software development and DS core buildout are key innovation priorities.

• The innovation pipeline is being expanded, with a disciplined process and broader focus than before.

• Customer experience improvements, especially in the U.S., are central to innovation efforts.

Margin trajectory and cost management

• Operating margin is currently above 19%, with a goal to maintain or improve margins while increasing R&D and sales investments.

• SG&A is targeted to decrease from mid-high 30s to around 30% over the next few years through efficiency gains.

• Gross margin improvements are expected via supply chain leadership, SKU rationalization, and footprint optimization.

• ERP integration and further cost synergies are anticipated to yield additional savings.

• Margin volatility is being addressed by focusing on durable, value-driven decisions rather than reactive cost-cutting.