Envista Holdings Corporation Common stock, $0.01 par value per share 2026 Global Healthcare Conference

Jeff, I have no prepared remarks.

Yeah. As you've mentioned, Eric and I both joined Envista a little over 2 years ago. We grew up in dental, in and out of dental for 20-something years, and we wanted to come back to dental. Our thesis was threefold, and that is what our first capital markets day in March of 2025 covered. Tenet number one of the thesis was that dental's a fundamentally good category, and that the air pocket in 2023 and 2024 was predictable after the COVID disruption, and that the market would generally return to its consistent pre-COVID long-term growth rate. Second thing we believed is that Envista was a fundamentally good company. We knew the assets well, having grown up in 3M's business. We'd competed with this company. We'd tried to buy many of the components of it.

We thought that it was a good set of assets that could be managed better. Then third, consistent with your question, is we thought, okay, better market, better managed company, the financial results ought to get better as well. Looking back across the last 2 years, I would say the thesis was generally right. A couple of the components have played out more clearly than others. I think there is credible evidence that the market is better today than it was in 2024. Not yet back to 2019. You'll probably ask more questions about that. Second is I think the middle part was absolutely true, that the strength of that portfolio now has become clearer over the past 2 years. We put a lot more money into new product development, a lot more money into the commercial front end.

We've now gained share across the portfolio, most categories, most years. Then third, probably most visibly is yes, the financial performance is better pretty much across the P&L. Eric and his team have done a lot of good work on the balance sheet as well. So I think broadly speaking, the original thesis was correct.

Yeah. No, I think our checks would say about the same. Many nice things about dental. One is there is great data, especially in the U.S., on data. You can just pop onto BLS and you can pull down total dental procedural spending by year. You can even see procedure inflation by year, or you can just ask ChatGPT to pull it all down for you. It gives you a good indication of how close the market is back to its pre-COVID levels. The two things I think that you would see is that dental almost always outgrows the broader GDP. That has again been the case two of the last three years. Inflation in dental is almost always above CPI. That again, is true. Now when you break it down into the categories that you ask about, consumables is one of the covered categories in dental.

About 60% of all dental gets reimbursed in the U.S. from private insurance. In other markets, there is a bigger public insurance component of that. Consumables typically does better on a relative basis than other parts of dental when macro uncertainty is high. It is not sensitive to consumer sentiment because it is covered. I think you are seeing exactly that. Most of the consumables players, us included, are overperforming the long-term trend for those two reasons. One, dental inflation is a little bit higher, so you get more price in consumables. Secondly, it is not impacted by consumer sentiment like the specialty categories, which you will probably come on to.

Yep. You hit the nail on the head. During COVID, clinics were shut down. Nobody bought equipment. When the lockdowns were lifted, some dental providers also got government funding. Everybody bought equipment. Record year for dental equipment in 2021, and then the air pocket you talked about. The diagnostic category was in contraction for 2 and a half, 3 years. Second half of last year, it started to turn back to growth until right now it is the fastest-growing category in dental because of 2 reasons. Principally, your question, easy comps. Very easy comps. So growing as a result of that. The second is, it is a category that is getting a lot of innovation right now, both on the hardware and the software side. All of the AI things we are all familiar with apply in these large data sets you get in particular from a 3D CBCT image.

You can draw a lot of clinical findings with a bit of math. So yes, right now, diagnostics growing mid to high single digits. Over time, that will settle back down into its long-term low single-digit growth rate.