Straumann Holding AG (STMN) Earnings Call Transcript & Summary

[Presentation] Good afternoon and good evening, and welcome to Straumann Group's Capital Markets Day 2021. My name is Marcel Kellerhals, and I'm the Head of Investor Relations, and I hope that you and your families are in good health. We would have loved to welcome you here in Basel, but given the current circumstances, this, unfortunately, is not possible. We already have about 200 people on the webcast, which is fantastic, and thank you very much for your interest and the time that you're going to spend with us. We have prepared a great program for you. But before we go into that, let's quickly have a look into the disclaimer, which in essence says, we will do forward-looking statements, which are not any -- subjected to any buy or any sale of any securities. Today, we will not talk about the past but about the future, our evolved strategy and how to achieve our ambition. And with no further delay, I would like to hand over to Guillaume, our CEO, to kick off this inspiring day. The clicker is yours. You already have one.

Thank you. Thank you, Marcel. Thank you, and well, a warm welcome from my side as well. Thank you for taking the time to connect to our online conference. As Marcel just said, we would have appreciated very much to have at least a hybrid event and having some of you here with us. But we have to keep staying agile and making sure that we can adapt to the circumstances and making the best of it. And anyway, I'm honestly really excited about the program that has been put together for you. And you know that we can share where we want to go. We have -- then also do that in a very good moment, I believe, because this is the end of another very intensive and successful year. But beside that, we also took the time to reflect on our strategy and how we can continue to keep our momentum and our high performance that we have been delivering during the past month and the past years. Look, my introduction is going to cover, first, the three really important point that are critical to understand the fundamentals of our organization, of the Straumann Group. And then in a second part, I will be happy to walk you through the updated strategic framework that we put together in order to continue our journey. And then let's start by then this first very important point of the three, one I want to explain that characterize the Straumann Group. The first one is our huge addressable market. We have a CHF 18 million addressable market in which we are playing in with amazing, still, future potential. And we have built it over the past years by expanding our product portfolio. And it has started, obviously, with our core implant business, CHF 5.2 billion from a potential overall. And this is combining two segment or two subsegment, the premium one and value one, both having equal then the value of CHF 2.6 billion. And we are leading very significantly the premium side with more than 45% now that has been achieved thanks to all the different campaign that have been done especially through our innovation and being a challenger, still pushing very much on the value segment. Something that we sometimes actually not highlight enough is the further potential of this implant market and the fact that dental implant is still a very underpenetrated segment. Actually, from our analysis, there are 30 billion missing teeth out there. And out of this 30 million (sic) [ 30 billion ] missing teeth, they are from an accessibility standpoint when it comes especially to accessible -- accessibility to care but also affordability, 2 billion that could be placed. Then we believe that there is an overall 2 billion implant market there, and our analysis shows that there are only 32 million implant placed per year. You will be a little bit led through into more detail about this when we'll go in the implant section, but this is showing that this CHF 5.2 billion market on the implant side is still going to continue to grow significantly through accessibility and affordability. Beside our core implant market, there is, of course, the clear aligner segment that we started to be playing at since 2017. And this is, of course, a very exciting segment as well with CHF 5.3 billion as of today, keep growing significantly, where we have a limited market share, and we are obviously expecting to continue growing it and being able to enjoy this huge opportunity. They are, as you have seen in the different communication, more than the 500 million potential ortho cases that could be treated. And actually, we have only 21 million ortho case starts that are happening, showing the magnitude of the potential. And again, only 4 million are case start with clear aligner; the rest is braces and brackets. That not only, this category, is going to very significantly grow because of so much population with crowded teeth, but also the technology of clear aligner will, step by step, continue to replace the braces and brackets. And those are the two huge segment that representing already more than CHF 10 billion just with both of them. And we are also present on somewhat we call adjacencies but strategic adjacencies, first one being biomaterial with CHF 700 million growing as well significantly through the implant development, and the surgical dentistry activities keep developing and the very important segment of digital dentistry. On one side, the consumable side, we've tendered almost CHF 5 billion as well, which is crown and bridge on the customized side but also customized abutment that are the prosthetic side of the implant. And last but not least, the digital equipment, mainly here intraoral scanner with over CHF 2 billion market and keep growing also significantly because the equipment rate or the penetration rate of such equipment is still very limited, and we see digitalization still progressing at a very high speed. Then this is the market in which we are acting in. Then as you can see, really exciting opportunity ahead of us. Not only then the huge market per se but also a market which is continuing to grow significantly. That's the first point of what is really a very important characterization of the Straumann Group. The second point about our, here, organization is that to try to capture more share and being able to grow faster for the market, we have three major global brands, three major global brands that are very much known and developed with high brand awareness and high brand equity from a B2B standpoint. And obviously, the first one is our Straumann brand that is active and not only into the premium segment, but we have leveraged also on the biomaterials side, on the customized prosthetic side and, together with some also leading partner, such as 3Shape and Medit, being able also to leverage our very strong Straumann premium brand within the dental digital equipment segment with intraoral scanner. Very, very strong asset for us, building a lot of reliability, a lot of trust in the product that are Straumann-branded. And this is also thanks to all the quality and all the intensity we are putting in the quality of our manufacturing that we have been able to develop this brand and, of course, being one of the major characterization of this brand is the clinical evidence that are really a trademark of our organization. Beside the Straumann brand, another very important brand, very solid from a global standpoint has been developed over the past, I would say, 10 years now, which is the Neodent brand. Neodent brand is the very first global implant value brand present in more than 80 different countries, growing very, very solidly since 10 years. And we are seeing now Neodent being a very, very strong second leg for us as an organization within our core business. And we are going to keep developing it, but we see Neodent being a very strong brand now in North America, building up very significantly in Europe and getting also the very first wins in Asia Pacific. And we want to continue building that brand as we believe having a strong brand in premium and a strong brand in value will be very, very significant for keeping market share gain. And the third international brand, global brand we have is ClearCorrect within the clear aligner segment. It was a North American brand in 2017. We have been able to internationalize it very significantly over the past 3 years. We've now been launched in all the different continent, still have a way to go, but we see its brand awareness and also brand equity progressing. And with those three very significant global brand, we know that we have everything we need in order to continue capturing share and growing faster than the market. Because behind those brand, we have amazing technology, huge product portfolio that are dedicated to customers and especially something which is very, very critical for us as an organization is our capability to innovate as we have a full pipeline behind each of those three brands for the month and the years to come. Then our capability to have already strong brand that will be nurtured through innovation is giving us, really, the confidence in being able to be successful in this market segment. And besides a very large addressable market, very strong brand and technology in order to be able to compete, the last one, which is a very important point to understand, the fundamentals of our organization is our culture. We have been developing culture very significantly over the past 10 years. We are a team of player-learner being able to be agile, being able to respond to change. And we have seen actually that this culture that has been developed over the years that was done for, of course, developing growth, capturing opportunities have been also very, very useful and critical in the moment of crisis in order to make sure that we can adapt quickly to our environment, we can adapt to unforeseen circumstances like COVID delivered to us. Then this culture is a huge asset of our organization, and we are also planning to keep developing it very significantly. Then this culture, combined with our capability to innovate and the strength of our brand on the B2B side are going to allow us to capture that very significant opportunity of our addressable market. And those are the three really critical point I want at least that you are keeping with you after this conference because this is really what is defining the Straumann Group and how we are going to leverage those in order to continue then our successful journey. Then the second part of my introduction is then looking at how we are planning to keep this momentum and how we are planning to evolve our strategy to make sure that we continue being successful in this VUCA world. It has proven to be excessively volatile or at least uncertain in the past 2 years, and we believe it will remain like this a little bit for a certain time. And we are -- make this quote a little bit our motto in our organization is, we want to anticipate all the time. We want to be able to shape our future instead of being reactive. And then for this, we have started a large strategic project together with the top 150 leaders of our organization that we call GO5. GO5 has been a way to also then leverage all the experience from inside but also trying to leverage a lot of knowledge from the outside. From outside-in learning, we have sent all our leaders in different companies out there trying to evaluate how they have been able to navigate some of the VUCA world and trying to take the best experience, so the best practices also in our own organization. Then GO5 allowed us to really be very clear on the different trends that are happening around us that we want to tackle and also then defining what are the strategic areas on which we want to invest in order to continue to be more than relevant being able to outperform our market environment. On those trends, there are three different dimensions that we have looked at when it comes to the market trends: customer dimension; the product and technology dimension; and the last, but important, obviously, the social and political environment, which is continuing to change at a very fast pace. On the customer side, we see a significant shift around us. We know that there is, on one side, consolidation because we are seeing the growth and the market penetration of what we call the dental service organization and the way how dental care is structuring itself in standardization of care, and we believe this will significantly continue to develop. We see also the independent practice actually that are, let's say, grouping together in order to also develop capabilities to respond to this DSO trend that is called GPO, and that is going to be also something to take into consideration for the future. And on the other hand, we see the rise of what we call the health consumer. We know that every consumer are now much more informed about their health. We have seen, through COVID, people wanting to spend even more time understanding how they can take more of themselves and deciding themselves for treatment even before interacting with health professionals. Then this is going to be a trend that is going to continue to develop massively, and we need to take this into consideration. On the product and technology side, actually, there are also two important area to consider. The first one is the commoditization of product or at least the risk of overcommoditization. And we know that some are saying, "Oh, well, that's an implant is an implant, or clear aligner is just a piece of plastic." And this is actually not at all what we are thinking here at the Straumann Group. We believe innovation has still a lot of room in our two major core segment, together with, obviously, the digital side. They are an amazing capability to continue to differentiate on the implant side through material science, through additional technologies on the biomaterials side. Then there will be innovation, and we want to be at the forefront of it. Same on the clear aligner side, there will be major disruption potentially from a material standpoint, 3D printing standpoint. Then we want also to be able to be one of the leading players there, and that's why we believe product commoditization is a risk, but innovation has some great chance to be able to allow the ones that are investing in R&D to be ahead of the curve. On the digital transformation side, we know that digitalization is everywhere. Then making sure that we can be at the age of digital transformation, not only for, let's say, the digital dentistry from a dental procedure standpoint but a lot about how we are acting as an organization, how we are doing business will be very important in the future. And this will be an area of development for us at the Straumann Group. And last but not least, the social political environment. On the one side, there is a clear call for sustainability. And you have seen we are really wanting to be also one of the leading organization here in our industry. We want to make sure that we are keeping this planet as a great place to live and creating our environment here and the company as a great place to work. And those are the two areas where we are going to focus on. And we want to make sure that we are playing our role here and making sure that we are doing well, but we are doing well by doing good. And lately, the generation shift is, of course, happening. We see that everywhere. We are, in our organization, a lot of young talent. Expectations is also different in the workplace. And that's why our culture is so important, making sure we can flex to deliver what the young generation are looking for and making sure we can transfer the very, very strong knowledge of our long-tenured employees to this new generation in order to keep our expertise but also building the new one that we will be necessary to excel in the future. Then you see we have six important blocks to take care of to still be very successful in the future, and those have been the framework in which we have built afterwards our evolved strategy. And now to be successful in this new environment, which we have all seen this environment is a -- keep accelerating a change standpoint, and COVID has been a big acceleration in a lot of those trends and especially the digitalization side. We believe that in order to be successful tomorrow, we have three strategic shift to achieve. And those three strategic shift are going to happen over the long term. It's not going to be done tomorrow, but those are going to be very important areas where we will be investing moving forward. The first one, it's about customer centricity and customer obsession. This is now the #1 core belief in the organization that will -- you will see a little bit later. We have been very product-centric in the past, and we have evolved, but still, product is a key part of what we do and how we are differentiating ourselves. But we know that product will not be enough tomorrow. Product will be a key part of the value proposition, but what would be more important is the customer experience and all the extended value proposition around not only product and solution but also the service around it. Then we are working a lot on that customer-centricity dimension, and we are going to make sure that this core belief of customer obsession is going to develop over time in the Straumann Group. Beside the customer-centricity, the second strategic shift that we want to do is that digital transformation. We have been an implant company. We have developed into a dental company or esthetic dental company, and we want really to become, in some years from now, a digitally power oral care company. And what does it mean? It mean that we need to make sure that everything we do will be exponentially improved by digital transformation, making sure that our offering will benefit from all the technology, which is available and that we are developing. We know those buzzwords, AI or those extended reality, virtual reality. We have some key project around this, and this is going to be part of value proposition, for sure, moving forward. And also, the digital transformation will be from an oral care standpoint, meaning that it's not only dedicated to implant or clear aligner, but we are going to look at dentistry as a whole as we are really here to make sure that patient are going to have a better oral care at the end, much more than the fixing a problem being able to deliver oral care from a global standpoint. And the last very important shift that we need to continue building in our organization is the business model and that, I would say, keeping mastering complexity, I would call it. We were also a lot into simple business model, B2B with a direct sales force and operating this very simple business model. And we see that with this strategic shift on the customer dimension, we need to be able now to deal with B2B but also with B2C2B because we need to build the direct presence to the consumer, still keeping the clinician in the loop, which is adding complexity, but also being able to manage different brands, different offering in the same segment. Then multibrands, multichannel is, of course, a key for success in the future. Our organization has very well evolved into this, being able to find its way, but there is more to come as there will be multiple customer dimension in the future. And those are the three major area where we will have to work on all the different strategic, let's say, framework that we have put together. And in order then to be able to be successful, then that's why we have reevaluated our strategic framework, and we are coming up with now what we call six strategic areas, two very important strategic enablers and four strategic dimensions. And for this, we start with customer centricity. I said that, that customer centricity will be paramount for everything we do. And again, a product per se will not be enough in the future. And in order to support all our investment and development, there are those two strategic dimension that are, on the one side, keeping investing on our high-performance culture and, of course, adding the sustainability part of it because this is also, as a whole, again, making our environment a great place to work and supporting this planet to be a great place to live. And secondly, digital transformation will be a strong enabler for all the rest of the activity we are going to put in place. And along those two strategic enablers, we have then -- those are four strategic areas where we are going to continue delivering very significantly. The first one is, will not be a surprise, is making sure that we expand our implant market leadership. We have 29% market share here. We are leading here this segment, but we want to continue expanding this leadership by digitally transforming, digitally developing our value proposition and, obviously, innovating. Innovation is going to be key in this area, and thanks to our pipeline, we believe that we are very strong way here to keep being successful. The second dimension here is the ortho segment. And here, we need to enhance what we do. We need to continue to develop our capability and our expertise for a segment which is still new for us versus our very deep expertise in the implant side. And we definitely want to become a leading player here, having a leading ortho franchise, which will be very, very important for the future. Then enhancing and grow will be a second very, very critical pillar for the Straumann Group in the future. Then when you look at the -- this left side, this is focusing on the core, keeping the focus on what has made us successful so far, and that will continue to make us successful in the midterm. And this is also what will continue to help us to continue invest in what we call creating the new, developing some new area that are area that are going to be critical for success because this is where we see the most important shift. And the first of those, I would call the new area is this consolidated environment, and we really definitely need to win in the strategic target groups. When we say strategic target groups, they are the -- those new customer category that are the dental service organization that are very important to us, that are strong partner for growth because they are also helping to increase the pie. And this is what we have seen in some of the market where they are present. If we are able to join forces, we know we can expand the implant treatment, we can expand the clear aligner market accessibility, and we can also help them to become more efficient and then more successful. Then there is a clear business partnership to find and to continue to build with those very important organization being a medium size, being large size, being local, being international. And this is where we are going to continue to invest, and we position ourselves as a strategic partner here. There is also the GPO segment in this strategic target group that we are taking into consideration that we are partnering with because we believe they will become also more and more important in the future. Then here, we need to continue to scale and piloting some program in order to get out of our pure product comfort zone and delivering services and added value services that the team will present to you a little bit more in -- during this presentation. And the last strategic dimension for us is the direct to consumer or the direct-to-consumer presence, which is still very important for us that I want to highlight here. We believe strongly into clinician treatment into treatment directed by clinician. Then for us, direct-to-consumer presence mean supporting the customers and the health consumer finding the right advice, the right place to get the treatment they want to be conducted, but it has always to be within a very clinical environment and being supported by clinician. For us here, this is also a very new segment with the acquisition of DrSmile. We believe that having a direct contact with health consumer in the future will be critical. Then we are going to develop a different way in doing this. But being able to advise customers on what an implant treatment is, about what a clear aligner treatment is, being able to channel them to the right clinical practice, being able to build relationship in order that they can keep also a very good oral health over time, it's something in which we will continue to position our organization as this direct-to-consumer presence will be a critical aspect of what the tomorrow environment will be. Then this is then our overall framework from a strategic standpoint that we are going to play within the coming years and, well, in the -- in coming month and weeks. We have already started to operate along those lines. And this is also a really good way for us to communicate internally. You know how much it's important that the strategy is rolled out and understood in an organization. We have 150 leaders that participating in setting that up that are also all ambassadors for making sure that every decisions that is made in our organization will keep this framework in mind and that everyone in our organization can understand the contribution that they are going to do every day to achieving our goals. And the second part of my presentation will cover just some highlights about those two areas that are our culture infrastructure and our culture architecture, I would say. And the second part will be some insights about our digital transformation. We have looked and worked a lot about culture, as I said. And why is that so important? Because this is the north star for all our decisions. This is the north star for every employees, especially when management is not there in order to help them defining what good looks like. And purpose, vision, mission is critical to make sure that we deliver a very clear perspective to everyone and also because we want to define very clearly why we are here, why we are doing what we do and how we would like to do it. And actually, we are receiving a lot of testimonial from clinician, from patients about the impact we are creating in the community we serve. And this is creating a lot of inspiration for the management team and for all the different people participating in the Straumann Group activity, being directly involved or even indirectly involved. And we have chosen one testimonial to share with you that have been received and shared by your clinician. [Presentation]

Well, this is -- then this is one of the testimonial we are receiving on a regular basis. And this is our inspiration, which is driving us every day. And this is really honestly giving us a lot of energy to give the best. This is fueling actually our culture and trying to make sure that we are waking up every day with a big smile on our face in order to deliver, together with dental professionals, those kind of a changing life experience. We know that we are sharing that very significantly with all the dental professionals, all the organization with whom we are working, and we see those transformations every day. Then that's why we want to make sure that we are clear about our purpose and why we exist, and we exist to unlock the potential of people's lives, giving them that power afterwards to really enjoy life in all its dimensions. We are supporting this with different programs just because we really want to achieve our vision, which is to create a world where oral health is a source of confidence. And this is a very strong commitment from our side because we do believe that a lot of talent want to join our organization to be able to participate for something which is greater than themselves. At least, this is the case for all of us. We have a role and a mission out there. And the more we can support patients and the more we can support dental clinicians providing those kind of life-changing experience, be it a small one, large one, like the experience we have just seen, then this is really then delivering on the greater purpose that we are having. Then how are we doing this? Then that's the mission that we have also clarified if we want to do this by becoming the most customer-focused and innovative oral care company in the world, and all the words here are very important. I touched about innovation quite a lot in the beginning because I believe that innovation has that power to deliver improved oral care in all its sense, be it in the implant side, be it in the clear aligner side, being on the prevention side in the future. We know that being customer-focused will be critical to make sure that we put dental professional in the best way in order to provide those care. And at the end, we want to make sure that we are helping patient out there with their oral care in the different geographies. Then becoming the most customer-focused and innovative oral care company in the world is a very strong statement. It's aspirational because we are not, again, fully here in all our segment, but this is going -- this is something which is going to drive us also for the months and years to come. And at the end, then we believe that the outcome will be a result of this commitment. And we are committed then to reach 10 million smiles achieved by 2030 on a yearly basis with a milestone in 2024 with 5 million smiles. This is the translation of our CHF 5 billion, CHF 5 billion being a financial performance, but we want also to translate that into how much impact we are creating in the communities we serve. Then CHF 5 billion by 2030, 10 million smiles that will be created in the meantime. And this is, here, then the big picture that I wanted to share with you. And on the cultural side, you will have, just after my introduction, Alastair, that will present you a little bit more about this. And to end up my presentation, I would like to lead you through a couple of insights on our digital transformation, which is the second strategic enabler of our strategic framework. And I not -- I don't need to explain you how digital is transforming our life. We are, of course, very different consumers also ourselves. We are leveraging digitalization for everything in our professional life, in our personal life. And then we are really becoming digital human beings. That's why we are saying there is no digital dentistry anymore. There is just dentistry. And dentistry became digital. It has been accelerated very significantly with COVID. And this is really something that we have also accelerated on our side. And we are glad to have also then, as you know, CIO, Christian Ullrich, that joined our Executive Management Board that will also help us to continue driving this digital transformation, just arrived together with the team then in October this year. And then he will be able to give also, during 2022, some more detail about how we are moving forward and what investment we are planning. But to give you a little bit some insights about this, then we are looking at digital transformation around three areas. The first one is the one that is the tip of the iceberg. It's the one that everyone sees. Those are the customer-facing products and services. Those are the intraoral scanners. Those are the digital workflow and everything which are around it, which are helping clinicians providing a faster, better and actually more precise dental outcome and dental treatment. But you have a second side for us as organization, which is also the -- our internal processes, where the order to cash, the forecast to sales kind of workflow that we are digitalizing in order to be faster, in order to be more efficient and in order to be more predictable. And that's also very important here to make sure that we are investing on our internal processes to be more agile moving forward. And last but not least, data and technology or the last piece, which is the one, I would say, the last part of the iceberg where this is all the cloud development and all moving our tech infrastructure to cloud, which are also needing some significant investments and where we have a strong commitment because this is the infrastructure of the future, allowing us to put all the different strategy we have planned in place. Then to illustrate a little bit those points, those are the kind of development we are doing and investment we are doing on the first area, which is the customer-facing activity. We are developing an end-to-end solution for restorative dentistry, including implants, and, of course, the same on the clean aligner side. You will have a little bit more detail during the presentation that will come afterwards, moving from patient awareness from a patient case acceptance, from patient treatment and also then for patient monitoring and generating feedback. And it's all about mastering and orchestrating the journey of the clinician and the patients and supporting, through digital technology, the different communication and the different dental treatment. On the other side on how we are also making sure that we are organizing ourselves, our data technology to be an easier company to work with, we are setting, for example, infrastructure to allow customers to -- are having one place where they can have all the interaction with us as a company and not keeping some siloed organization where you do clear aligner in one place, you do implant on the other side, or you do customized prosthetic in another place. It's really grouping everything in a customer portal where the customer can navigate the Straumann value proposition and the Straumann services and product portfolio, supporting them not only from a product standpoint but also from a service standpoint and giving them all the different education and the different support for helping them to leverage the technology that we are giving them at their fingertips. Then this is still work in progress. We have the first version of our customer portal that should be available by the beginning of 2022. And obviously, those digital transformation are not happening in one day. That will be an ongoing journey where we are making a very strong commitment to it because, once again, without facilitating the clinician experience and supporting in providing very strong health consumer experience, there will be no success at the end of the road. Then this is the major transformation that we have decided to embark on. We are actually very excited about this new strategic framework. And you are going to discover a little bit more during the course of this session with the different presentation. And now, it's my pleasure also then to welcome Alastair Robertson, our Chief People Officer, to give you a little bit more insight about our cultural journey and how we do things around there. Alastair?

Thank you. Thank you, Guillaume, and very, very welcome from me. It's my pleasure today to talk about our high-performance culture. Guillaume mentioned it a few times through the presentation. But many of you have realized, probably listening, that we are incredibly intentional about what we do with culture. So I just want to spend the next few minutes giving you, perhaps, a few insights. Culture is how we do things around here. You've probably heard that many times. But for us, it's real. It's the air that we breathe. It's the ocean that we swim in. And what I want to do is try and give you a couple of elements, perhaps, of the secret soup that we think we have because we firmly believe that it is a culture that gives us a clear advantage over our competitors. Our journey started back in about 2014, when the CEO at the time and the executive committee actually made a decision to become incredibly intentional about what we do. So we set out some basic programs. We set out some basic models. We took advice. We listened. But we really started a journey that we were continuing today. We used some basic models, as I said, so -- and I will come back to these in a minute. We drove programs right through the organization, but we focused at the beginning with all the senior leadership, and it's that old analogy of walking the talk. We really wanted our senior leaders to get deeply involved. And to that end, actually, many of the programs that we ran back in those early days all the way through to even now, it is the executive team or the very senior leaders who actually stand up and facilitate those and show their own vulnerability, if you like, and their own expertise in trying to explain what does leadership -- what does culture mean around here? We looked at core beliefs -- or sorry, we looked at core behaviors. We also had that challenge, as you recall, of bringing the whole group together. In the end, there's absolutely no doubt the whole journey that we have taken and we started back then is producing results. But let me just go into a couple of the two foundational models. One model we have, it doesn't look sophisticated, but it's actually ingenious in its design, not designed by us. We brought it in. It's called I/We/It, and essentially, what we do is we talk about, actually, what do I bring? Who am I? Am I self-aware? Because we believe that if you focus on the I, if you really understand self, then that really helps grow the we or the collaboration, and that, in turn, delivers the it. And it is very, very intentional. So we will often have conversations just focusing on what do I bring? What does this mean for me? And in turn, that delivers high performance because that's, in the end, what we're after. One of the other crucial models we have is player-learner. Let me try and explain this one. On the learner side, we want people to join. We want people who are here who are inquisitive, who want to learn, who ask questions. They don't make statements, but they seek to find the greater truth in what everybody is saying in order to grow the pie, if you like. On the player side, we want people to come to play to win, but we want them to be accountable. We want people to pick up the ball if it lands at their feet and run with it, not just to leave it there. We want them to be accountable, to take ownership and produce results. Again, it's a very simple explanation, but there's a lot to this. And you'll see in a minute this also is very deeply embedded in now our recruitment process because we want to ensure that we bring on people who have this player-learner mindset. Since Guillaume joined as CEO, the journey has continued. Actually, the journey has accelerated. So many of the things that we did in the past, we have reviewed as part of the GO5 project, some of the things that we have simplified. But one of the things we haven't done or one of the things, should I say, we have done is make sure that we didn't throw the baby out with the bathwater. There was an awful lot, and there is an awful lot that's gone on in the past that we've continued. But we're also now evolving with, for example, now been able -- during COVID, we've had to evolve, and we've had to be able to deliver programs and, for example, interview and recruit people without actually seeing them physically. So we've really taken the step into now this new world. One of the things I should also say here, it's very important for us that when people join, they can be at their best. So when we recruit people, we are also not just looking at the it side, what -- in other words, what people do. We're also looking to make sure that when they come, they can be at their best and perform at their best. One of the other things that we did or we have done is we've taken the I, the we and the it. And here, you can see, as Guillaume talked earlier, the customer obsession smack bang in the middle. And that we are, again, very, very intentional about and focusing on. But the model here also fits with our beliefs. We want to make sure, and we do make sure now, that in all of our beliefs, when people look at them, they can operationalize, what does that mean for me and my job? Many organizations have things on the wall. That was great, but what we really want to do is make sure that every single person in our organization can understand, what does passion for learning mean for me in my job? What does entrepreneurial mindset mean? And as a result of that, wanting to do that, we're rolling out and have started to roll out programs to make sure every single employee has the opportunity, not just once but several times, to really explore with their colleagues, what does it mean for us? Also, you'll see with the model, the beliefs fit very uniquely with the I, we and it model. In other words, from the I side, there are two beliefs that we think are particularly important. And then two on the we, and two on the it. So these are some of the models and some of the activity that we do right through the organization. I mentioned a couple of these before, but let me just spend a couple of seconds on this. What levers do we really pull? I talked about the programs that we have. We not only have the programs on the beliefs, but we also have many other programs, including, for example, we make sure that every single person goes through a very detailed induction. And so for example, here in Basel, I will often go or my colleagues will go as an executive board member and spend a significant amount of time every month helping people understand what our culture means to our organization, and that is repeated all around the world. We want our leaders to walk and talk. We want them to exhibit and behave the way we want everybody. And that is, again, very, very intentional. And to that end, we've also now developed a set of leadership expectations. They're not complicated. It's not a list of 5,000 different things. It's five or six very simple things that we believe are very important. And again, to that end, we've developed a leadership academy, which we're putting many, many of our senior leaders through to help them also build their leadership skills. And then lastly, what we're doing is making sure that all of our culture activity is deeply embedded in the -- in all of the HR and, indeed, other processes that we have. So for example, I talked about attraction. I talked about recruiting. So we make sure, as I said, that when we recruit, we spend significant amount of time making sure that when people do turn up, they are going to really enjoy and be able to grow in our culture. The last point on the bottom right, measurement. So how are we doing? How do we measure what we are doing? I just want to show you this. We run an engagement survey. We've run it twice now with new technology, so that's over a period of 2 years. Here are basic numbers. Our response rate -- so this is right across our world, our response rate in the engagement survey is at 87%. And for those of you that have an interest in this stuff or know this stuff, that is a phenomenal response rate, which for me and for my colleagues, that represents people really do want to be engaged and they do want to listen. And then if I go to the bottom one, not only do 87% respond, we have over 7,300 comments from right across the globe. And with the technology we have now, we can analyze those no matter what language they're in, but we can also start to analyze what's the sentiment and actually get to the bottom of what are the three or four key engagement drivers in every location we have. If I go back up towards the top, our engagement score, 80. We're in the global top 25th percentile benchmark that is given to us by the organization that we partner with, which represents thousands of companies across the world. 80 is a good score. Last year, it was slightly less, so we're improving. But we're not going to rest on our laurels. This, for us, is incredibly important that we keep focusing on this. The other number that you'll see on this slide is 78. Embedded in the engagement work, we have six questions that are focused on, how do I perceive my leader? How do I perceive my manager? And so every leader in the organization gets an effectiveness score. We don't point fingers at this. We don't check this. What we want our leaders to do is to take this score and to have deep conversations with their colleagues about, what does this mean? What can I do better? What am I not doing as well as I should? Again, I just want to -- I have to say, a score of 78, improvement on last year, but it's still not where we want to be. And again, we will be incredibly intentional going forward in making sure that we help everybody in the organization keep this high level of engagement and high level of effectiveness. So that was me. I'm now delighted to be able to hand over to my colleague, Holger, who will take you through the implant market leadership.

Thanks a lot, Alastair, for your excellent presentation. Thank you. So welcome from my side. My name is a Holger Haderer. I'm heading the business unit Implantology at Straumann Group. It's a privilege for me to show you how we ensure our market leadership in this important core segment. This is, obviously, as presented by Guillaume, one of the key driver to ensure future growth. And the key question, obviously, is, is implantology still that attractive that we can ensure the financial power of our organization? You already have seen some important numbers, and I think I owe you some details to dive into that because before we talk now about the existing market, I want to guide you through the analysis versus the market potential given. So the key question to us, obviously, is, how many missing teeth are out in the world? Because that's the prerequisite in order that you can place an implant. So if there is close to 8 billion people, we have analyzed a strong data set of important analysis for Europe, for North America and for China. And this allowed us to have a very, very clear picture about the situation that there is way more than 30 billion missing teeth as of today. This does not mean that there is a market for 30 billion implants because, unfortunately, not even from a clinical perspective, you have to replace missing teeth, every missing teeth, by an implant. Just think about edentulous patient. This is about 28 missing teeth. We don't take -- or our clinicians don't take 28 implants for that. By the way, we count always 28 because wisdom tooth is out of statistics. So -- but there is also single tooth restoration, patients missing one tooth, having neighboring tooth, and there, obviously, you need to replace the missing teeth one by one with an implant. Applying this formula, this translate 30 billion missing teeth to at least 20 billion implant. However, the key question is, how many patients can afford this treatment? And also here, we dive into a lot of analysis, and those analysis are clearly showing that we can count at least 10% of the population who have the financial means to afford implant treatment. So that's an easy math how we got to the 2 billion. This is the more than 20 billion potential implants. Multiplied by 10%, this goes to the 2 billion. So -- but the market is 32 million implants per year only. I guess this clearly indicates that implantology is a very attractive market also for the next years. The key question why there is still a relatively low implant penetration, there's ample of reasons. Let's focus on three. First of all, our key competitors is still the so-called three-unit bridge. This means one teeth is missing, and the GP, instead of placing an implant, decides to grind down neighboring, yes, grind down means damage, neighboring teeth in order to build a bridge. This has some reasons. First of all, in some countries, it's way more affordable. However, unfortunately, many dentist doesn't neither know better or they can't do better because they are not educated on this. And the third dimension, obviously, is the patient, they are not aware about this. So these are obviously the key drivers to further increase the pie in implantology. But now it's about talking about the existing market, so the 32 million implants. And let's see what this means money-wise. I think this has been already indicated in the first presentation. We talk about CHF 5.2 billion market globally. And you can take different perspectives on the market. Let's start with price point. So we distinguish the market into premium and into value. And here already, we see a 50-50 split. There is also another dimension in here. I take the volumes, the 32 million. And please, it's not about designs of the implant. Yes, it's indicated here, with parallel walled; apically tapered, this means the lower end is tapered; and the fully tapered implant. Those designs are representing treatment protocols. And there is also a history in treatment protocols. Whereas the parallel walled systems are representing a more conservative protocol, which has been very important decades ago where people have been unsecured whether this is a reliable treatment. Whereas now the more fully tapered one, this is supporting the so-called immediacy, the more progressive protocols, which up to extreme if clinical situations allow that patients getting teeth extracted at the same day where they get the implant placed but also a provisional prosthetic gets applied. It means the patient walks out the door of the practice with already having a kind of a teeth. Also here, you can see that the apically tapered is by far the strongest one. The fully tapered, this is already a meaningful one. And I can tell you, this is the one growing the most because finally, this is what patient wants. They want to have a teeth as soon as possible. So time to teeth is essential. Let's see how is the relative market position in those segments. Let's focus first on premium and value. And here, you can see that with the Straumann Dental Implant System, we have, worldwide, already a big success. This is why we have such a strong position in this market, whereas in the value segment, there is still significant room to grow. And if you take a look at the indication side, at the treatment option side, you can see that the parallel walled segment, this is very strong, owned by the Straumann Dental Implant System because this is where we historically come from. However, you can see that there's already a good position in the apically tapered one but still a huge room to grow and also the same with a fully tapered one. Let me allow another dimension where we have another look at value and premium, and this is then on the distribution on the volume of the 32 million. So let's first -- let's look first on the left side, on the premium segment. So here, we talk about an 8-million implant market. And here, we have displayed again the shape of the implants, which is somehow representing which treatment options are performed with the Straumann implants at this stage. And here, we talk about the SDIS, the Straumann Dental Implant System only. So historically, we own the parallel walled implant side, and the apically, we have already a meaningful market share. You can see that, and this might be astonishing to the people who know us since decades, and we already start to conquer the fully tapered. To be honest, if I would have shown you this slide 5 years ago, we would have a significant presence on the parallel walled but almost nonexisting on the other two. So this shows you also our capability to conquer new segments. If you look at the 24-million value segment, you can see that we have a stellar performance already in Latin America. And this -- no surprise, this comes with our second leg with our Neodent brand, an amazing success story in Brazil but not just in Brazil, it -- especially in Latin America, but also, as indicated already, very successful in North America. And this comes via two important sales channels. It's an amazing sales execution at the dedicated sales force of Neodent but also very, very strong successes with the DSO department. If you look at Europe and if you look at Asia Pacific, there is first success stories, however, still a beautiful room to grow. So now we have indicated where we want to play, I guess. But it's also about how to win. And we are convinced, especially if it's about the premium segment, we need to justify the premium. And this is justified via strong innovations. On one hand, we have a very strong brand with Straumann, and this is based on clinical evidence over decades. However, this is not enough. We need further drive innovation in order to be the winner in the premium segment. Talking about the value segment. Obviously, it's way more about geographically expansion, way beyond Brazil to us. And it's also driving market access. What do we understand with market access? Honestly, we translate that very much into education because there is still way too many dentists who prefer to grind down, to damage neighboring teeth instead of placing an implant. So let me now distinguish with the next slide how we want to be successful, how we want to further drive our position in the premium segment but also in the value segment. And I start with the premium segment. I have disclosed that in the so-called apically tapered but also fully tapered market segment, we have been nowhere about 6 months ago -- 6 years ago, excuse me. So when we launched in 2014, the so-called BLT implant, which is the first apically tapered implant system of Straumann, we have started an unbelievable story. This story is not just about an implant design. This is about solutions, but it's also about the mindset of our colleagues. And believe it or not, this goes hand-in-hand with our conviction about the cultural journey because we started not just to look to our existing customers but also to the needs of the ones who haven't decided for Straumann so far, and this is a beautiful new mindset. This is where the player came to us. First of all, we learned about those needs, but we also acted on those, and this is where the story starts. However, learning about the beauty of immediacy, we really learned about the real immediacy, and this is about the tapered implants. And here, we found very strong collaborator on the clinical side, and we have launched the so-called BLX implant. And please, this was 2019. And you have seen already our prominent presence at the fully tapered market segment. And please, you all know that within 2019, and today, there's 2 years of COVID-19 impact. But still, we have managed to conquer the market. This is our conviction, and this is also why we merged two very important things at the Straumann world. On one hand, the biological aspect of the tissue-level implant but also the [ inner cell ], the screw designs of the BLX. And this enables all our customers, our existing customers who are in favor of the biological concept of tissue level to apply immediacy concept. The big surprise to us is that there is also many customers out in the world who always have preferred immediacy concept. However, they missed also the tissue level concept. And now it's not just that the old Straumann customers are going with tissue level, TLX, but also the ones who are in favor of immediacy but also trust to the tissue level. And this is why we are very, very fascinated about the early success of TLX. In order to complete this story, we have launched the so-called zygoma implant. This is an implant, which is rather a niche product, but it completes the immediacy story. It's about graftless procedures in edentulous patients, which is also reducing time to teeth. Unfortunately, time is not left now to show you all innovations we're going to bring in the next 3 years. But be assured, we know exactly what to do. Everything is defined, and we have a clear roadmap with the so-called next system to rock the premium market. Let's talk about the value segment. And here, first of all, it's about the geographical expansion. And this is not a wishful thinking. You already have seen the beautiful story about Neodent. But honestly, we can talk in a similar dimension, but those brands are a bit younger in our organization. Therefore, it's not that prominent like Neodent. However, what all these three brands have in common, these have been strong local brands, and they made it already on an international scale because all of those brands make more business outside the original country. And the ones who are experts in implantology, you know there is dozens of local brands who never make it to a second or a third country. We have proven those brands have proven to do so. With a dedicated sales force, strong sales commitment, we're going to get there, however, also here with meaningful innovations. And I have displayed here two solutions. So the Neodent brand gets an amazing push starting next year with a brand-new ceramic implant for Neodent. And with the Axiom X3 implant system, we conquer the immediacy market on the value segment with the power of Anthogyr. Finally, it's about digital transformation, also implantology. So whenever we talk about digital transformation in implantology, this is not bind to the Straumann implant system only. This is a group solution. As you will see that slide in various presentations today, I focus on the implant treatment. We can say that all price points, all TRIOS solution, our all IOS solutions are capable to perform and to support the implant treatment, which is already important. However, there is one dedicated software which is called the coDiagnostiX software. And this is one of the most preferred solution in implant treatment planning for clinicians but even as important for lab technicians. But honestly, if it's about digital transformation, yes, it is about hardware. It is about software, but it is about service because it is about to enable our clinician to go that journey, and for this, service is essential. And for this, we have invented the so-called Smile in a Box service. This is where we make their life easier because we own the competence, we can support them, so we make them easy to transfer the data to us. We care about the planning, and they approve it because they still own the treatment, but we are not just delivering the screws in a box. We are delivering important tools, such as the guide, which is translating the digital planning into real practice, and this is driving predictable outcome. This is important to the patient, but it's important to our clinicians. Last but not least, we have the implant registry, which is allowing also our clinicians to document, to monitor and to follow up the success of the treatments. With what I could show you in the last minute, I'm personally convinced that with the strong collaboration with our strong sales execution in the regions, we are able to outperform the market to ensure our strong market position. If it's about to gain the yes of the dentists and the yes of the patients towards implant treatment, we need to work in the future strategically on three key pillars. One is obviously affordable -- the affordability of implants. This is key. And here, it will be important that we drive further price points. And also with the NUVO system, we have a very meaningful solution to get more important here. However, it's also to drive more efficiency within those workflows because this is also reducing the cost of the treatment. And obviously, different payment model towards patients will enable them to swallow this invoice. From my perspective, one of the biggest hurdles is still to get the yes of the GPs globally because it's still too many who are not educated on implant treatment. And the third one will be finally then the awareness of the patients. And here, you have also seen in the previous presentation that we have some quite important projects already launched where we will enable our clinicians to promote implant treatment. I have in mind very strong programs in North America, in Germany and in Japan, but they are way more currently where we are piloting because we want to learn more about it. So I'm very much convinced that we do own the power to outperform the market within the upcoming years. And we understood that digital transformation is more than just hardware and software. It's about to service our customers. And please, who has the better means to service all customers than us with our global presence and with our strong commitment to be there for our customers? And this is featured by our strong educational program. I'm talking about the strong collaboration to our friends from the ITI. This is more than 16,000 members globally already. Our friends from ILAPEO, which is the strong partner to Neodent. But honestly, also us, the Straumann Group organization, we have so many educational events where we are really very strong, and we are very proud about hundreds of strong key opinion leaders who stand in front of the crowd hopefully as convincing as we are today, and they are. We are committed to more than 7,000 educational events per year, which is translating that we are educating more than 300,000 clinicians a year. This is not a wishful thinking. This is today's reality. With this, I hope we have been convincing to show you that we take it very serious. We don't rest on our laurels. We are the players. And with this, you have a well-deserved break of 15 minutes. Thank you very much. [Break]

Welcome back. We have now more than 300 people on the webcast, wow. Please remember that we will have a Q&A session at the end, and you will find the details in the Q&A tab in the webcast. [Operator Instructions] We will now move on with our strategic compass after Alastair talked about culture. And Holger gave us all the insights on the implants. Our Head of Orthodontics, Camila Finzi, will now take over. I should already actually see her on -- somewhere on the screen, which I hope, will happen soon. Here she is. She will now help us to transition from grow the core into create the new. I'm very much excited to hear your presentation. You know that I'm very much a great fan of clear aligner. So, the floor is all yours. It's very early at Round Rock in Texas, I know. So, thank you very much for being with us. And well, the floor is yours, Camila.

Can you hear me now?

Yes. Now, we can hear you.

Okay. Great. Sorry, yes, exactly. It's very early here, but thanks to technology, we can all be together and I'm very glad and honored to be here with you. So, as Marcel said, my name is Camila Finzi and for almost 2 years, I have the pleasure and the honor to be the Head of the Orthodontic business unit for Straumann. Next slide. As you heard from Guillaume, I'm going to concentrate my presentation in the bottom of our strategic compass. I'd like to reinforce that everything that we do is deeply grounded on our customer centricity imperative. And that's why we get up from bed every morning. It is what gives us energy to go every day, and that's where we start to prioritize our day-to-day activities and projects. The other one is our high-performance culture. It's shown by our sense of urgency, always learning, always trying something, when we fail, we fail fast. We start over, no blaming, only learnings and that's what we do to address our customer needs and to act with high ownership and accountability. More specific on my topic, we are going to discuss on how we are becoming a leading orthodontic franchise and how we are building our direct-to-consumer presence during this presentation. Next slide. In this slide, you can see our market potential, and it is divided in some parts, right, as you heard before. So, the clear aligners continues to grow strongly, as it only represents 4 million cases a year in our overall market of 21 million. In addition, 500 million people could afford the aligner treatment, which makes our market opportunity very interesting. Next slide. In this slide, you can see that the market potential is divided in some segments: first, the patient group. Teens and children are a very important segment, but still, as you know, majority of cases are still done with braces and brackets. As ClearCorrect, we are not actively exploring this segment, which should change throughout 2022 as our software capabilities and our market readiness evolve. The other important segment is the geographic footprint. It is almost evenly distributed between APAC, EMEA and the Americas in numbers of cases. During this presentation, you will see that we are getting better and better on this segment. And finally, the target group. As you know, the B2B channel is divided between GPs and orthodontics. And on the -- which the GPs, which accounts for 20%, the orthodontics, which accounts for 50%. And finally, the DTC or how we call the B2C2B segment, which historically accounts for 20%. In general, ClearCorrect has focused on GPs, due to our software capabilities. And we estimate, overall, that we account with all our 3 brands. ClearCorrect, DrSmile and Smilelink, we account for less than 5% of the market. Next slide. As you know, ClearCorrect started in 2006, and it was acquired by Straumann Group in 2017. It was a family-owned business created by a dentist to serve his patients, with majority of cases in the U.S. Since then, Straumann Group has started the journey to transform ClearCorrect into a global brand, by investing in other partnerships and acquisitions to master the value chain. With rapid shape for 3D printers, with [indiscernible] for resins, with digital planning center for treatment set up, with Bay Materials for thermoplastic, with dental monitoring for patient acquisition and remote treatment follow-up, and most recently with DrSmile and Smilelink to enter in the B2C2B segment. We also recognized that our software needed to be improved. So, we are investing to increase our software capabilities, and we recently released a new version of ClearPilot. We also started to update our internal cut and stage software to make it easier for our treatment setup team to deliver faster and more predictable and more customized treatment set up. On the geographic footprint, although some important markets like China is still missing, I can certainly tell you that ClearCorrect is a global brand available in 46 markets. Next slide. On this slide, you can see better what are our key strategies. First, we will focus on sharpening our value proposition through innovation and expanding our addressable market. With the launch of the team campaigns and the new [indiscernible] indication in the U.S. in Canada already in Q1 2022. Second, we will focus on increasing our clinician usage through better customer support and enhanced training and education with the launch of what we call the Ortho Campus that I will explain a little bit later. As our software and the clinical indication evolves, we will also start to shift our positioning from GP competitive and ortho friendly, to GP and ortho competitive. This will also expand our addressable market. Third, expanding the geographic footprint. And fourth, in the B2C2B segment, we will continue our breadth and depth strategy in the coming years. Next slide. Okay. In this slide, we are going to talk about how we are going to sharpen our value proposition through innovation and expanding our addressable market. As you know, ClearQuartz, our new 3-layer material is now widely available, and we are receiving very positive feedback. We believe that the unique combination between ClearQuartz and our high and flat trim lines move teeth more predictably and optimize [indiscernible] and retention, which leads to a better patient experience. As I said before, we started the journey of improving our software and more releases are expected in the next year. On empowering dentists, we continue to create similar integration with our intraoral scanner partners, with 3shape TRIOS Unite, with Virtuo Vivo and Medit. A very important point is that ClearCorrect is also an open source system to all scanner types, which makes it easier to submit cases to us. During this year, we released ClearPilot 2.0, ClearPilot 2.1 and ClearPilot 3.0 is in limited market release today. Our 4 market release is expected for Q1 2022. On next slide. Here, you can see that we are building our end-to-end solution for GPs and orthos, starting with the patient acquisition and awareness. And here, you have all our acquisition, our momentum, our sales force, our deep presence in market, the strong heritage, especially with the GPs. And then, we move to increase conversion and meeting the clinician requirement. With that, we have the integration with intraoral scanners and many more other things that are coming in the future, all our training and education. And then, we move to conversion with ClearPilot with our treatment success partners who help doctors in the set-up conversion, and then, we go to meeting the requirement of the treatment. And I can tell you, overall, we do have a very rich pipeline of projects. And as we release them in the years to come and next year, we will master more and more of our value chain. Next slide. This is my favorite slide, because we continue our journey of spreading smiles across the globe. ClearCorrect [indiscernible] are available in 46 markets worldwide, and we serve these markets out of 3 manufacturing sites. One in the U.S., 1 in Brazil and 1 in Europe, which makes our time to market faster, and sometimes faster than some of our competitors. During Q1 2022, we are planning to launch our China manufacture and treatment setup center, which will mark ClearCorrect interest in the Chinese market. That's a huge milestone. The team has been working super hard during the last year to make it happen, and I cannot wait to visit our Chinese plant. In addition, we are planning other 7 country launch for next year, reinforcing ClearCorrect as a global brand and expanding our geographic footprint. To help and guide our clinicians on the Clear Aligner journey, we recently launched Straumann Group Ortho Campus, which is a comprehensive collection of orthodontic tools and curricular for treatment success. Here, you will find a vast array of resources for clinicians of all SKU levels, available in a variety of formats for different learning styles and interests. But of course, it's much more interesting to hear from our customers, what they think of ClearCorrect and why they use ClearCorrect than listen from me, right? So with that, we created a short video that I'd like to show to you in the next slide. [Presentation]

All right. I hope you enjoyed the video. That -- like I said, that's what gives us energy. That's why we do everything that we do. we start all our development process, what we call a process called voice of the customer, so, we hear a lot, our dentists and that's why we need to improve, and we like to improve, and that's what we do every day. To my last point, as I said before, around 20% of the market is in the B2C2B group. And as Straumann Group, we are also playing in this field. As you know, with DrSmile for Europe that at this point, is available in 9 markets besides his home country in Germany. And also, we announced in August this year, we acquired Smilelink. It's a similar doctor-led business from Brazil, and they are in their journey of expanding their territory expansion and spreading smiles across the country. And with that, that's the end of my presentation. I'd like to hand over to Rahma. Thank you.

Hello. Thank you very much, Camila. My name is Rahma Samow. I joined Straumann Group March this year. I'm very proud leading the DSO solutions and services business division. So, now, we can go to the next slide. So today, I am very pleased to give you an overview of our strategic target, group's initiatives, that is laying the foundations required, for us, as a Straumann Group to dominate the DSO, the dental service organization, and GPO space in the coming years. As you have heard from Guillaume already earlier, consolidation is a key trend in oral health. And it will continue to see practices, consolidation with fewer solo practices and more midsized and large private equity-backed DSOs with, of course, varying governance structures. And in addition, the group purchasing organizations are emerging in dentistry over the last few years. And if we can go to the next slide, please. Currently, DSOs, as we are seeing, are the fastest-growing segment in dentistry around the globe, driving both implant and aligned penetration due to their increased spending power on patient marketing outreach and thus, resulting higher treatment conversion. There is not a single day in California where I don't see our DSO customers on TV and pulling patients to their practices to actually get consultation and understand what type of treatment they could have. So, if we click this slide -- just briefly, in 2015, 7% roughly, of implants placed -- were placed by GPs who are part of the DSO. And 2015, we're seeing that this digit actually grew double digit. And 30% of implants in major markets we're seeing in 2025 will be placed by GPs that are affiliated or part of a DSO affiliated practices. However, as we all know, and seeing today, DSOs are also facing unique and unprecedented challenges. And the reason being, due to their de novos and acquisition of practices, with different philosophies systems and protocols and leading to more heterogeneous GP expertise. And as we have seen in the videos earlier, digitally empowered patients are better performed, being the main catalyst of rising health care consumerism. And growth is happening faster than manpower, leading to shortage of dentist placing implants. And as Holger earlier indicated, prosthetics are, unfortunately, still largely determining treatment options. In addition to that, lack of a standardized treatment protocols in these different practices and de novos with weak tracking and analytics overall, to quantify, really, the clinical treatment outcome. And last but not least, digitalization is impacting in terms of how do we -- how do health care providers are delivering care. So, if we can go to the next slide. Modern DSOs, as we have heard before, with diverse expectation, also requires, more than ever, a holistic and customized approach to cater for the variation in infrastructure, focus and maturity of their individual needs. But every DSO has the aspiration to become the provider of choice and employer of choice. Therefore, our strategic imperatives, what you are seeing here, is to succeed with DSOs in very customer-centric and tailored way. And how do we want to do that? We want to support them in transforming their end-to-end clinical excellence, by ensuring best-in-class treatment quality and reducing variability in care delivery. Driving standardization in their practice network to enable efficient operations and increasing throughput through digitally enabled workflows, further supporting on enhancing consumer experience by providing better patient value proposition. And who else is better positioned than Straumann Group with our unmatched global footprint and customer proximity. Now, we are helping DSOs to advance their level of innovation through best practice sharing across all geographies. And if we go to the next slide, please. End-to-end excellency, for me, starts and for every customer that I talked to with a very well-established portfolio of leading health solutions that are both scientifically and clinically proven. And this is helping us to customize our leading product innovations and services that are both simple and versatile to enable DSOs to provide premium and affordable care. And then, if we go to the next slide. We have seen a repetition of this slide. And why is it so important is, because Straumann is now becoming an intrinsic part of patient care, by driving the end-to-end fully validated. And this is very important, clinical workflows along the patient journey. And if I just quickly start, patient education and awareness and we are also facilitating digitally enabled diagnostic, being a company that is an open ecosystem and putting together the best of the breed cutting-edge technologies that is, today, in the market. And with this, we are helping the clinicians to consult the patient to drive case acceptancy. But that is not where we are stopping. Because we also want to support clinicians to be able to have simple to complex cases with surgical planning at the fingertips of each practitioner. This type of workflows provides confidence to the dentists and their clinical staff, which allows the patients to have the confidence to make a more informed decision about treatment options and increases case acceptance. And Holger made my day this morning, already, with the implant registry that he has already mentioned. Patient monitoring and following up to maintain high-quality clinical outcome and building advocacy is an utmost important part for our value proposition to the DSOs. So, to summarize this slide, our end-to-end solution promotes shorter treatment time, drives the standardization, efficiency and reduces risk while improving the consumer value proposition. Next slide, please. And since I have joined Straumann Group and every customer that I am visiting is talking about what type of a leader we are in training and education. So, based on that, our deep belief that our industry-leading growth is also closely linked with the successful growth of our customers and their doctors, it's paramount for us investing in advancing clinicians skills by providing a customized and comprehensive training and education platforms to DSOs for clinical, but as well as patient communication. So, we have globally standardized structured learning that addresses, of course, the different skill set, foundation, intermediate and advanced skills to rise the GPs cost level in treatment planning, diagnosis and restorations when working with the existing specialist network. So, providing, actually, blending training, which is hands on training, on patient treatment, but then as well as online education. And then, we can go to the next slide, please. So, we're not stopping in giving them end-to-end products, software, services solution combined with education, but we also want to make sure that we drive standardization and predictable outcome and sit together with our customers to discuss how can they optimize their treatment delivery within their own network, how efficient was their treatment delivery. So, this is where, really, value-added services comes into place where we are understanding to benchmark their network and analyzed the potential improvement steps along each of these clinical pathway, and then, provide and optimize productivity and implement advanced clinical workflow methodologies. So, we are positioning ourselves in becoming a business and trusted partner, where it's not only about selling products, selling digital software solutions and training, but also wanting them to drive the standardization to have a better clinical and patient outcome satisfaction. And if we go to the next slide. This is somewhat also summarizing it at the end of the day. Benchmarking clinical excellence and increasing operational efficiency through digitalized workflows, empowers DSOs to improve their value proposition towards the patients and consumers. And with that, combined with the customer success management, strategic account development and training programs, we are very well positioned to become a holistic and a strategic partner of DSOs. If we go to the next slide. With our exceptional brand equity, unparalleled portfolio of oral health solutions, and comprehensive education program in one of the largest scientific network, and in addition into our unmatched global footprint and customer proximity, it has enabled Straumann Group, already, to successfully win and partner DSOs around the globe. And the most, really, important is and the key takeaway here, what we are taking is that we are uniquely positioned to empower DSOs. It's very important, these 3 messages, yes, to increase their clinical effectiveness, improve their operational efficiency and enhance their patient experience. And with this, I would like to thank you for listening to us, and I would like to hand it over to Peter. Thanks a lot.

Thank you very much, Rahma. My name is Peter Hackel, and I'm the CFO Group of Straumann. I have the pleasure to present you today, 2 different topics, and I'm especially proud to present also, our new sustainability framework on which we have been working intensively over the last couple of months. But before we dive into sustainability, let me talk about the financials. And I would like to run you through our growth story quickly over the last couple of years, and to show you in which solid and healthy financial positions we are in terms of margin, in terms of operating cash generation, but also in terms of balance sheet structures, and that allows us to significantly invest in all the growth opportunities that we have been just in over the last couple of presentations. Over the last 8 years, we generated an average CAGR of 14% organically. We started in 2012 as an implant provider, as a pure player, basically, focused on parallel world, Straumann-branded premium implants, and we were addressing a market of less than CHF 4 billion. Until 2016, we enlarged significantly our portfolio. We acquired value companies in the value implant and abutment market, and we launched our first tapered premium Straumann-branded BLT implant. Until 2016, we were addressing a market of roughly CHF 17 billion. And in 2017, then, we decided to significantly expand our business scope and enter the aligner ortho market with the acquisition of ClearCorrect, a U.S.-based company, and Camila has been talking about ClearCorrect extensively. Since then, we have done several acquisitions along the value chain to master the whole value chain in the aligner business with Bay Materials and with [indiscernible]. In 2017, we also significantly invested in building up our digital offering with the investment in 3Shape in Dental Wings, with entering different collaborations with different third-party suppliers for digital equipment, mainly into our scanners but also milling machine. And until 2020, we developed ourselves into a total solution provider for aesthetic dentistry. And as we speak now, we can address a market of CHF 18 billion, and we have a market share of good 10% in that CHF 18 billion market, showing the further growth potential that we have in our journey to develop into the most customer-focused and innovative oral care company in the world. Obviously, that transformational journey over the last couple of years, that increase of the addressable market also had a significant impact on our revenue mix. On the one hand, on the revenue mix, in terms of product mix and in terms of product franchises, but also from a regional perspective. Let's first look at the product mix. In 2013, almost 95% of our revenue was generated with parallel-walled Straumann implant, and we only had a very small digital equipment with the Etkon, CADCAM products as well as the lab scanners that we had in our portfolio. When we look at our current revenue mix in terms of product franchises in '21, almost 1/3 of our revenue is already contributed by digital equipment, by value implants and by the Ortho franchise, all new markets in which we have entered over the last couple of years and markets, where we have significantly lower market shares compared to the premium implant and abutment market, showing the growth opportunities that we have. When we look at the revenue distribution from a regional mix. In 2013, we generated more than 50% of our revenue in the established markets, mainly in the European region. And if you compare at our footprint today, we generate more than 25% of the revenue already in the high-growing regions such as Asia Pacific and Latin America, with many emerging countries in which we entered over the last couple of years. If we look at the product mix and if you look at the product franchises that we added, most of them are coming in with a slightly lower gross margin compared to the premium abutment business, be it value on ortho, with slightly lower gross margins and digital equipment with a bit -- with significantly lower gross margins, if we look at the product franchise alone, but not if we look at the bundles that we are selling together with the other products. However, despite that dilutive impact and despite that over proportional growth of these new product segments, we were able to maintain a gross margin at a very high level, around 75%. And since 2017, gross margin has been stable at 75%. A very impressive figure that also illustrates that increasing complexity is the number of stock keeping units, SKUs. We more than quadrupled the number of stock keeping units over the last couple of years. And currently, we have more than 23,000 different articles in our inventory that we are selling to our customers. What is the root cause and the driving factor why we were able to maintain our gross margin at that high level? I will quote the 2 main activities. On the one hand, it's economies of scale. We can better leverage the fixed cost structure with the increase and the growth of the company. And the second factor is continuous improvement. It's operational excellence, it's in-sourcing of processes, it's capturing more part of the value chain by that in-sourcing. And all these factors, together, enabled us to mitigate the slightly dilutive impact from the over-proportional growth of the lower gross margin product franchises. Compared to the stable gross margin. If you look at the operating profitability, we were able to significantly increase our core EBIT margin over the last couple of years from 17% to around 27% as we speak, according to our guidance. And also here, there are 2 driving factors. On the one hand, it's again economies of scale, and we see that a little bit by the illustration of the number of employees. We quadrupled the number of employees over the last couple of years. And we increased our sales footprint. We increased the number of direct sales organizations in the dental markets from 26 to more than 70 different sales subsidiaries, covering more than 70 markets with a direct sales presence, and we are present in all the major dental markets. That does not mean that we can't further drive geographical expansion, and we are doing that. The latest example is Malaysia, where we have just established a sales organization as we have communicated in our Q3 results. And also here, what were the driving factors to increase our profitability that much over the last couple of years? It's economies of scale, once again, but even more important, it's operational excellence. So, we have established over the last year's operational excellence framework, which we call business excellence at Straumann or short, we call it best internally. And we are focusing especially on all our administrative back office and sales processes. One example is that we are currently running a project with a process mining software to go deep into our order to cash process, a very important process within our organization that we are running in all the sales subsidiary, one of the most important processes, and with the process mining software, we are analyzing the processes in the different sales organizations. We are identifying inefficiency. We are identifying waste, we standardized process and we can increase our efficiency and profitability in order to free up resources that we can then further invest into our growth opportunities. Over the last years, we have invested more than CHF 500 million CapEx in various functions, but the majority of it, into the expansion of our manufacturing footprint. In 2017, we had 6 different locations for our implant production as well as for our CADCAM milling production. As we speak, in 2021, we expanded that footprint to 17 locations by adding manufacturing sites all around the globe, in North America, in Latin America in the European regions, but also in Asia Pacific. And I think in times where we are talking about disruption of supply chains, having such a broad geographic manufacturing footprint is a huge asset that cannot be overestimated, especially in business franchises, where time to the patient. So the time when a product is ordered, is getting produced, until it is in the dental office, at the customer or until it is at the patient side, where that time spend is crucial, we have a huge asset with that footprint. For example, in CADCAM milling business, in the CADCAM elements business, customized prosthetic for implants, we have a manufacturing site in the U.S. We have a manufacturing site or 2 sites in the European market. And we also have a manufacturing site in Asia Pacific. Or if we talk about the Ortho business, we have manufacturing sites in North America, in Europe, in Brazil, and we will see, in a minute, as of next year, we will also have manufacturing capabilities in the Chinese market for the Chinese market and Asia Pacific. But not only in these business franchises, where time to market from production to the patient or the customer is crucial. Also on the implant side, we have a very broad manufacturing footprint with manufacturing Straumann implants in Europe and in North America. And as we speak, we are building up a new manufacturing site in Shanghai for all the different franchises. So, we will also have in a few years, the capability to manufacture Straumann implants in China for the Chinese market. Current expansion projects are, on the one hand, in China, for the China campus where we are going to invest CHF 170 million over the next 8 to 10 years. We will open up a Clear Aligner manufacturing site in China for the ClearCorrect launch in '22 and we are significantly enlarging our production site for CADCAM milling elements in Texas, North America. All these CapEx investments of CHF 500 million over the last 8 years, we were able to finance them out of our operating cash flow. We have a very strong, stable operating cash flow margin over around 20%. We have, also, a very favorable net debt position with less than CHF 100 million net debt. So, net debt EBITDA ratio is less than 0.2%, which shows that we have significant opportunities to leverage our balance sheet if we would like to. And we also see we have a high equity ratio of around 0.5%. The slight decline in the equity ratio from 2017 to 2021 comes from a balance sheet expansion which was, on the one hand, driven by the IFRS 19 lease accounting standard that was introduced in 2019. And on the other hand, it was also expanded due to the issues of 2 bonds to increase our senior debt, but also to increase our cash position. And in half year '21, we had more than CHF 700 million cash on our balance sheet. So, you see, not only from an operating point of view, from the operating margins, also, from the cash generation and the balance sheet structure, a very solid and healthy position that enables us to further invest into growth. And where do we want to invest now? We have seen the strategic compass, and we discussed all the 4 strategic directions. And we also discussed the 2 enablers, our high-performance culture and the digital transformation. Let's quickly run through that strategic compass and summarize all the growth initiatives, in which we are going to invest. Let's start with expanding our implant market leadership. Key activities, as explained by Holger, are investing in innovation, not only for the premium brand, but especially for the premium brand, with a focus on immediacy and our tapered implant franchise. On the value side, key growth driver is expand our value offering geographically with our multi-brand strategy that we have for the different regions with a big focus on the European market, Eastern Europe, Middle East and Asia Pacific, where we are currently still underrepresented in terms of our value offering. And the third strategic initiative to expand our implant market leadership, is drive market access through offering less complex solution and through investing significantly in our training and education activities as we have done in the past, not only in the established market, but also in the emerging regions and emerging countries. On the Ortho side, we want to become a leading ortho franchise by sharpening our value position through investing into innovation, into training and education. And we want to drive the increase of the usage of our offering by the clinicians. On the one hand, in our current customer segment, the GPs, but also with the new software releases and new software versions to expand our offering to the specialists and to orthodontists. Also, expanding our geographical presence is a key growth driver for the Ortho franchise, and Camila has shown us we have 8 launches planned already for 2022. But it's not only adding new countries or penetrating new countries with our offering. It's also increasing the market share in the countries in which we have only entered recently and expanded our offering very recently. The fourth growth driver in becoming a leading Ortho franchise is also a little bit linked to the right side of the compass, it's driving complementary business model. We acquired DrSmile in Summer '22. We acquired Smilelink in Brazil in summer '21, and we are investing in building up these brands in order to drive and build up a direct-to-consumer presence in our doctor-led direct-to-consumer auto offering. Then, Rahma has shown us how we want to win strategic target groups, the customer segments where that is growing over proportionally. We have seen that the DSOs will cover around 30% in a few years of market share, including the more and more increasingly important strategic customer groups, the GPOs, how do we want to increase our market share there by supporting end-to-end clinical excellence along our frictionless digital workflows in order to enhance the consumer experience, the patient experience. We want to support the DSOs and drive practice network efficiency and performance. We have seen a big pain point of the DSOs is that they were growing via the acquisition of GPs, so they have a little bit -- not frictionless processes. They have different standards. We will support them with the standardization of the processes along our frictionless digital workflows, and we want to deliver that offering in all our geographies across the globe. Digital transformation is a big investment area for us, not only on the customer side, where we want to expand our services for an excellent customer experience, with our end-to-end digital solutions for the customers. We are also investing internally in our processes. And I've just mentioned operational excellence. So we will significantly invest in the digitalization of internal processes. Once again, in order to increase efficiency, freeing up resources that we can reinvest into the growth of the company. And also, that's the last digital enabler here on the compass that I'm going to talk about. It's the most important one, driving our high-performance culture and organization sustainability. So, there are 3 major initiatives there. High-performance culture, which is by far the most important, must-win battle that we have. And Alastair has presented us his thoughts and the details about that must-win battle. Business excellence at Straumann, I already mentioned how important operational excellence is, and sustainability, our new framework for doing business in a sustainable manner in which, we are going to deep dive in a few minutes. So, by investing in all these different activities, our revenue mix will also going to change until 2030, significantly. We see the business franchises value, digital and ortho, where we have significantly lower market share will grow over proportionately until 2030 and will contribute a much more significant part to our revenue in 2030. And if we look at the regional mix, then we see that especially Asia Pacific is increasing over proportionately and will contribute a substantially bigger revenue share in 2030. And that is also shown by our commitment in investing there with the China campus that I have just elaborated a few minutes ago. So, all these investments and all these changes, where will they bring us? And that's our growth ambition for 2030. By 2030, we want to generate CHF 5 billion in turnover or CHF 10 million smiles, as Guillaume has presented to us, with the organic CAGR of at least 10%. Core EBIT margin stays in the very high range of 25% to 30%, allowing us also to invest in selected growth opportunities significantly and to drive further growth. And the growth and the high operating margin is also allowing us to further increase our gross dividend payout as we have done since 2016 on an annual base, with an exception of the payout for last year due to the very difficult 2020 and the pandemic in 2020. So, this is our growth ambition for the current decade until 2030. However, that is not going to replace our annual guidance that we will also continue to issue on an annual base. Next time, we will talk about our guidance for '22 together with our full year results '21 in mid-February at our press conference. So, that was the snapshot on the financial development over the last couple of years as well as the outlook until 2030. And I'm now very pleased to talk about sustainability, the next topic. Sustainability, and we have seen that also in the strategic compass, is an integral part of our business strategy, is an integral part of how we are doing business. And is also a part of the family heritage of our company. On the one hand, a part of the DNA of the Straumann family, but also, a part of the heritage of the families that have founded all the companies that we have acquired over the last couple of years, and we were very active in our acquisition strategy there. So, we see sustainability as a huge opportunity for us going forward. We have already been very active in that respect in the past, but we did not have had explicit framework, how we want to drive sustainability. And we have changed that over the last couple of months. At the beginning of this year, we have established a task force under the leadership of the Board, including the Chairman of the Board. In the task force, there are several members of the Executive Management Board and other representatives from different functions within the Straumann Group. We have been discussing intensively on the different sustainability themes and topics that we want to cover. And we want to become an industry leader in sustainability in the near future. So, we started and engaged in a dialogue, also, with external stakeholders, be it key opinion leaders, be it customers, but also including analysts and investors, and I thank everybody who got engaged in that discussion and who contributed to that discussion in our materiality assessment. So, we were identifying all the different teams, which are important for us, which are important for the respective stakeholders and which are important for the sustainability -- for the sustainable and long-term success of our company. And we grouped these sustainability themes around 4 different commitments. And all these 4 different commitments are then ordered around our purpose to unlock the potential of people's life. The first commitment is advancing oral care, which is tightly linked to our business strategy. The second commitment, empowering people, an integral part of our cultural journey. The third commitment, caring for the planet and for society. So, a commitment not only for the current society, but also a commitment to safeguard the environment for the future generations. And last, but not the least, acting with responsibility, the way how we are doing business. So, let's have a closer look at all of these commitments and let's discuss the targets. We have defined 2 targets for each commitment, including a timeline until we want to reach that target. Advancing oral care, it's about being at the forefront of innovative solutions in oral care, with having the patient's health and safety in mind, but also fostering customer learning and education for the benefit of the patients and for increasing the access to oral care around the globe. We have defined 2 targets, 10 million smiles by 2030. And the other target linked to educational activities, maintain a 35% share of all our educational activities in low and middle income countries, also, to advance oral care, especially in these emerging regions. Empowering people and having an inclusive and diverse culture is at the heart of our success, and I think Alastair has very impressively shown how we are driving that. But not only having an inclusive and diverse culture, we also want to provide all our employees an environment where they are feeling safe, where we are caring about their health, and where they can further develop. We have defined 2 targets, one linked to gender equality. We want to have 50% of women in leadership by '26. And as we speak, we're starting already with around 40% of women in leadership positions. So, we are increasing that to 50% in the next 4 years. The second target is about providing a good environment and opportunities to learn and grow at the Straumann Group for all the employees. The recent engagement survey showed we are already at 74% of people are confirming that they have such opportunities within our group, but we want to further increase that share and push it to 80% by '26. Caring for the planet and society, safeguarding our environment, minimizing our emissions, but also caring for our local communities' development and managing all the supply chain relationships and the supplier relations that we have. We have defined 2 targets, one around renewable electricity, the other around greenhouse gas emissions. So, let's start with the first one. Why renewable electricity? Because on all the different production sites that we have just been reviewing, we are running a lot of CNC machines, a lot of 3D printers, meaning, we are a high consumer of electricity. Our current share of renewable electricity is already around 70%, but we want to push that to 100% until the end of '24. The second target, we commit to a net zero emission strategy. We are currently analyzing all the data that we have, the Scope 1, Scope 2, and especially the Scope 3 emissions that we have. So currently, we are not in a position to commit already to a timeline, but we are working intensively on the timeline, and we target that we can commit to a timeline until mid-'22. And we fully commit ourselves to the science-based target initiative, and we have submitted our commitment letter in that respect. So, we will -- our strategy will be in compliance and will be reviewed by the same spaced target initiative. For the last commitment acting with responsibility, we have not defined explicit targets in that respect, because we are shooting for a zero tolerance policy. We want to lead by example through an ethical approach and sound governance. And obviously, we adhere to all the legal and regulatory requirements around the globe. Therefore, it does not make sense to issue explicit targets for that commitment, but we aspire a zero tolerance policy. If we summarize all these commitments once again around our purpose, you see that all the commitments are also closely linked to the different sustainable development goals of the United Nations. That is our framework, how we want to drive sustainability going forward and how we want to become an industry leader in sustainability topics in the near future. And with that, I'm at the end of my presentation, and I have the pleasure to hand back to Guillaume to close the circle and share his wrap-up and conclusions with us. Thank you, Guillaume.

Thank you, Peter. Great to see the commitment also that we, as an organization, want to take from a sustainability standpoint on top of the long-term performance that we have just presented from that long-term guidance. And I hope then the different presentation of our Executive Committee members have helped you to understand more in detail about how we would like to keep the great momentum we are having as an organization. And to put everything together, we are using just one slide to all our organization, but also externally, which what we are calling our growth architecture that are used then on a regular basis. And then if I'm sure I will be able, yes, to make the clicker work. Then it starts with our North Star, and this is the top of our house, unlocking the potential of people's life in order to well drill that world, where oral health is a source of confidence. Then this is, again, what is at the base of everything we do. And what we are doing, it's all our mission. It's to be the most customer-focused and innovative oral care company in the world with those 6 strategic dimensions. Our 2 enablers, again culture and sustainability and, of course, the digital transformation. And 4 strategic areas, which is the, let's say, product-based, more the core with our implant and core aligner segment that we want to lead. And on the other side, more focusing on building up this customer dimension, those different target groups that are evolving on top of the independent dental practice, those dental service organization, those group purchasing organization and, of course, the health consumer dimension on which we want to do much more in the years to come. And the last part of our growth architecture is how we are doing this. And this is the cultural dimension that has been presented and which is very critical for us in order to be able to deliver on promises. And it's very important for us to have a very structured way of how we are looking at our future. But of course, this culture is also helping us to be agile and to be able to adapt in any circumstances that we would face, as we have done with COVID, but as we are doing with any potential adverse events. We have seen that as an organization, we became much more resilient, thanks to the fact that we have a geographical footprint much more diverse than we were before, as Peter explained you. But we have also the possibility to cover much more different price point, almost all the price point of the different segments in which we're acting as both, for example, Holger and Camila presented. Then to conclude and close this presentation. If there are just 5 key numbers to remember from that presentation, that would be the following one. The first one would be our addressable market of CHF 18 billion and keeping, growing significantly, where we have 11% market share. Then a lot of way to grow through generating more market share gain and also benefiting from that market growth. How to do this? Then it's with our 3 global brands that are really then internationally developed, the Straumann brand, Neodent brand and the ClearCorrect brand. And also then supported by all -- the more localized regional brand for the time being, be it Medentika, be it Anthogyr, be it DrSmile, as presented by the different presentation. But those 3 global brands are a very, very, very strong way for us to capitalize on this addressable market. 10 million smiles by 2030, that's the commitment for growth that we are taking. It means at least a 10% average organic growth. We are really committed to keep this growth momentum by, of course, keeping investing on the key driver of our organization and also continuing bringing a lot of talent in order to be able to achieve that and keeping that customer obsession, which is leading me to the last number, we are talking about talent. Then it's all about keeping our people engaged, committed to what we do, excited by the future and making sure that we keep and improve further even our 80% engagement score, which would be the good sign of -- we are building that great place to work and we are able to serve the communities better. This 80% engagement score, obviously, is related also to the sustainability target that we have taken for ourselves and making sure that we are delivering as a very good corporate citizen. Thank you for your attendance. Thank you for listening. We hope then that you are then understanding better our organization and especially the exciting future that we have in front of us. Thank you for also the confidence and the trust you have had and you are having in our organization. And we are looking forward then continuing explaining that through the Q&A session that is going to start now. I will be happy, together with Peter, to answer the different questions you're having. And we are going to do this with Chorus Call that will take the questions. And we thank you to take two questions maximum each time. Then Chorus Call operator, if you can help us to get started with the Q&A session.

The first question comes from David Adlington from JPMorgan.

First two. So firstly, on the margin, obviously quite a wide range over the course of the next few years. Just wondering if you could help us with the sort of cadence of that progression and what might actually drive you towards the top or the bottom of that range? And then secondly, something I think we've discussed previously on. But just in terms of disclosed financial disclosure, I just wondered if you put any thought into disclosure by segment, i.e., revenue type rather than the current regional disclosure that you have.

Thanks, David. I will take the second question first. The second question, while we are not disclosing then by business franchise. As you know, we are disclosing by geographies. We are not planning to do that short term. But here, to be also honest, we try to give very strong, let's say, support in order to get that back in some small calculation. If you take a little bit the market share that we are talking about, you are not going to be very far from where we are. And that's why -- that's a very strong indication that we want to give you to make sure that we are delivering the necessary transparency. You want to comment on the margin side?

Yes, I'm happy to comment on the margin side and on the range of the margin that we gave there. First of all, on a short-term notice, we have a guidance out for this year for 27%. I always said that margin is not sustainable going forward in '22 due to the very low business activities that we had, especially at the beginning of this year in the first quarter and also at the beginning of the second quarter. And I think in that range, that range gives us also the flexibility to invest into growth opportunities that we see and to invest in 1 year maybe a bit more than we would have in the past, investing in these growth opportunities, especially on the doctor-led direct-to-consumer business models that we want to build up and where we want to invest into the brand building there into the geographical expansion, but also into all the innovation projects that we are running, be it on the implant side, be it on the ortho clear aligner side. So it gives us the flexibility to manage our margin within that range in -- over that decade that we are shooting now for the 5 billion in revenue by 2030.

Thank you, Peter. I might also, David, add, we have taken a very significant commitment to growth. I think having at least low double-digit growth up to 2030, it's a very strong commitment from our side. And then we want to make sure we don't miss the huge opportunities we have in front of us. What does it mean is that one of the risks would be actually to underinvest. Looking at the transformation that we see in our market here; rise of the health consumer; digital transformation, which is critical; building up our ortho franchise, then we have a huge opportunity. And trying to make sure we try to maximize EBIT would potentially give us the risk of missing the next S curve, be it on the consumer dimension or even the technology dimension. Then we want to show here that investment will be critical for being able to commit to this double-digit growth. And we are just excited by the fact that we have the opportunities to be able to deliver on them.

And looking at the absolute figures. With that growth opportunity and the double-digit growth that we are shooting for, it's clear that the absolute EBIT will increase year-over-year.

The next question comes from Chris Gretler from Credit Suisse.

I have now 2 questions. The first with respect to your comments on the dividend, could you actually kind of also indicate that this involves a payout ratio increase and maybe more broadly on the use of cash strategy, now whether how you could prioritize organic growth, M&A and payout to shareholders, given, I guess, you presented this very strong cash flow generation. And then the second question is maybe could you be a bit more specific on the bridge from we look at consensus around CHF 2 billion in sales for this year to this CHF 5 billion in our sales target by 2030. Specifically kind of maybe a bit better kind of indication where basically these individual businesses will contribute to that, let's say, CHF 3 billion in increase, that will be great.

So shall I start with the first part of the question concerning the dividend? Thank you for that question, Chris. The comment is more about increasing the absolute dividend and remaining with a stable payout ratio at least for the near future. And the reason for that is I think we have shown the growth opportunities that we have, and we want to redeploy the cash especially in order to secure the growth opportunities that we can capture them going forward. And payout ratio would stay stable, at least for the foreseeable future. And cash deployment, the second question about cash deployment, we will not accumulate excessive cash on the balance sheet. But I think also with the investment opportunities that we have in the near future, that won't be the case. And the most preferable opportunity is to redeploy and reinvest the cash that we are generate in these growth opportunities. However, should we see in the midterm that we are accumulating excess -- excessive cash on the balance sheet, then obviously we would think about how to repay and refund that cash back to the shareholders.

Yes. Thank you, Peter. Chris, yes, with regard to the second question, and then, well, to make sure I well understood is, how do we believe the different franchise are going to evolve over time. Then our expectation is that, first, we have 2 huge core segments where we can generate growth. And what we see also from our perspective is that our clear aligner franchise will grow much faster than our implant franchise. Now saying how much are we going to end in 2030? It will be, I don't know, we have a wide range here. It could be in between CHF 1.3 billion to CHF 1.7 billion as an example, but it will depend how we are able then to drive the different penetration in the different segments, how fast we are going to be entering into, especially the ortho, the specialist segment, where we are still not present there because of the software development that we are doing very strongly right now. And our implant being still underpenetrated, we know that we have very significant opportunity. Then once again, growth of clear aligner will be over proportional of any other growth of the different segments. Thanks for -- thanks to the investment we are going to do there. But also the implant will continue to grow, even though, of course, from an overall weight in the total top line, it will represent less, and especially on the premium side. Now we believe that our digital business will continue to grow proportionally to the rest of the organization. That's why from a total share standpoint of total net sales, it will remain almost the same, but which means that in absolute value, it will be much more significant.

The next question comes from Daniel Jelovcan from Mirabaud.

Thanks for the interesting morning. Two questions also. The first one on the margin for clear aligners. You didn't really talk a lot about this in the past few years and, of course, it's clear that it's still loss-making, I guess. But can you shed a bit more light on how clear aligners will look like in -- let's say, in 10 years in line with your long-term targets, where the margin will be? And the second one is the number for the SKU, the 23,000. I mean you remember the old times when [indiscernible] massively cut the number of SKUs 10 years ago or even older, saying that they want to reduce complexity, especially for GPs. And now you have 23,000. Isn't that a bit too much, too complex to understand, especially for the GP franchise? Those are 2 questions.

Why don't we start with the first one?

Yes, I can start with the first one on the margin side on the ortho business. Overall, I see the ortho business and the ClearCorrect business a bit similar to the value business. I mean when we started the value business, it was loss-making. And after a couple of years, or it usually took us 2 to 3 years until a country was really profitable and for 3 years until the margin was at a similar level as the premium business. And if we look at the ortho franchise overall, it's also still an investment case for us, but not because we are generating lower margins within a specific country where we have the ortho offering already established for quite some years, such as the U.S. market, for example, mainly because of the expansion and the rollout of the offering and the geographical expansion across the different regions, be it European regions, be it Latin America or Asia region as well. So I would see -- in the mid to long term, I would not see a reason why we should generate lower margins with the ortho business compared to the implant and abutment business, within that range that we have just indicated through our long-term ambition to which we shoot.

Thanks, Peter. And Daniel, great question. To add just a little bit on what Peter said. One of the actually very important focus for us has been to make sure that we can master the entire value chain of the clear aligner side in order to maximize potentially also gross margin and then bottom line at the end. Then I'm sure you recall the different acquisitions that we have done, that sounds a little bit, to some extent, maybe minor, but which are actually very critical for our overall profitability on clear aligner. We have acquired Bay Materials in 2019 in order to master the raw material, which is the thermoplastic. But not only to master technology and R&D moving forward, but also to make sure that we are internalizing the margin. We have acquired also then end of '19 as well, resin company, which is called Yller in Brazil, which we are now actually using for manufacturing all our model that are necessary for the manufacturing of the clear aligner, meaning internalizing once again the overall value chain. We are leveraging now the technology of the Rapid Shape company for the entire manufacturing of our clear aligner, which is Rapid Shape. And we are leveraging those 3D printing, allowing us also to make sure that we keep some -- the benefit of this integration. And at the end, we have also, of course which is critical for the value proposition, internalized the treatment planning with the acquisition of the large treatment planning company in Pakistan that we have done also very early 2020. Then this is a way for us to have secured our gross margin and making sure that we can develop all the different technology, allowing us to maximize on the upper side of the P&L and leveraging afterwards the entire Straumann infrastructure to make sure that our bottom line will be delivering, as Peter said, over time, the same profitability that, for example, the value business on our implant side is delivering. Covering your second question, which is I think I really like this question, because it's how do we deal with complexity? And it's actually, would it be a good thing to reduce SKUs? The very important thing here to consider is that if you would like to be successful in the implant field, you also have to adapt to the different marketplace. And one of the very interesting approach for us is to have specific brands that we are leveraging by geographies, Neodent being our international brands for value, but having also very local brands to tailor or to adapt to the very specific need of different geographies. And we are never presenting our entire SKUs obviously to any GPs. And this is where the go-to-market is really, really important. You have to present to a GP only what he will be needed for his practice success. And this is where the secret sauce is relying in the go-to-market approach, making sure that your team are able to present only what is necessary. And what I was saying before, in that customer obsession mode, in order to come up and present what you have, it's all about making sure you ask question, you understand the objective of the customer and you help them out with the solution that you're having. Then what is very important for us as an organization is managing complexity inside and delivering simplicity outside. And this is where digital technology is very important for this. This is also why having a very strong sales force is very important for this. But this is one of the explanation of the success of our different brands on the implant segment by being able to do that. Managing complexity internally because this is -- there is no way around this. You have to have some complexity to deliver to the different market and the different way of working, but you have to make it simple for the customer. And there is a lot of our pipeline which is also actually related to this.

The next question comes from Julien Dormois from BNP Paribas.

Thanks for gathering all those slides and all these insights into the company, truly appreciate it. So I have two questions. The first 1 relates to the implant business. I'd like to dig more into the prospects of your market share gains, specifically focusing on the fully tapered segment. Basically, do you still see that penetration in it fully tapered, reaching possibly the sort of BLT-like penetration that you've had, probably around 40% plus as we speak? And then on the value side of your business, I think you previously referred to 10% to 12% share you would have in the value side of the business. And do you expect that maybe, I don't know, to double by the end of the decade? And does that underpin your ambitious growth plan? And maybe another question now on orthodontics on clear aligners. I'd like to better understand how you're planning to balance investments between the B2B channel and the B2B2C channels. I think right now, your B2B business is probably around 60% of your clear aligner business and the B2B2C is around 40%. How do you see that number? Well, first, am I right in assuming this? And then second, how do you see that evolving in the coming years?

Thanks, Julien. See, you know well our company, and it's great to have those very specific questions like this because they are really making sense then. To try to start with then the first question on the fully tapered segment. Let's try to step back, take a little bit the big number that we have presented. Then we said the total market is 32 million implant. If you take the shape -- the share that Holger presented by implant design, let's take then the 25% share of the fully tapered, then out of the 32 million, you will get an 8 million. And let's say that in this 8 million, you have a 30%, which is going to be a premium because, again, as you know, that the parallel world is almost entirely premium. Then there is a lower market share premium in that total fully tapered segment, then what if you have your 8 million, you take 30%, you are going to be, what, something like 2.4 million, something like this. And you have 2.4 million as the segment in which we are playing in. And then we want to have, yes, I think something like 35%. We always told us, 35% in 4 years after launch, which something like 35% of 2.4 million. It's going to be a bit more than 800,000 implant -- And 850,000, let's say, which is our target right now. And if you take also a price tag of CHF 450 more or less, which were a little bit the ASP for abutment plus implants, then I think we have an overall market potential of a bit above 3.5 million, I think 3.8 million, if I remember well. And this is really what we want to generate incrementally for our business on the premium side, thanks to that BLX, TLX Zygoma initiatives. And I have to say that the team have done an amazing job here from not only a sell side but also on the education side, making sure that we have all our key opinion leaders that are really believing in this technology. And we are really on our way for our 35% market share after launch, 4 years after launch. We believe that by the end of the year, we are going to be like in between 15% to 17% with our BLX, TLX and well underway. And I would say a great perspective for us in continuing to drive premium. The second question was about the market penetration on the value segment. And on the value segment, yes, we have 12 -- something 12% market share, and it's a very fragmented market. And this fragmenting market is then giving us well opportunities to make sure that we are building up a very strong international brand that would make sure that we can leverage all our infrastructure also behind it. And one of the very important here, I would say, a part of implant dentistry is also regulatory. You know that regulatory is getting tougher and tougher. We have that MDR in Europe which is going to close some door of many small players, we believe, because it's going to be very difficult to continue to innovate if you don't have the right clinical power and regulatory power to bring those innovations in the marketplace. Then we believe we are the best company placed for this to further innovate with our challenger brands. Neodent is continuing to innovate. You have seen, Holger presented a full zirconia implant which is going to be the first one in the marketplace being fully zirconia from the abutment, the implant with a narrow diameter, without entering too much in detail. You see our Anthogyr, it's coming also -it's edge-free, which is a fully tapered implant for the value segment. And we are building up regulatory work for NUVO, especially in Asia Pacific, together with Neodent, to be able to have the full portfolio. Then this is a very constant activity on the value market. It's, let's say, much more demanding because it's a bit more fragmented from an activity and also a go-to-market standpoint, but this is really the way to go, and it's linked to Daniel questions about how we are ready to master complexity. And when it comes to your last question about the B2C2B and the B2B activity from our ortho business, yes, I think you are not too far off when it comes to our share of the different business model. And what is very important for us, and this is where we see the beauty of it is one is also supporting the other. Then the investment in the 2 sides are supporting then the 2 different business channel. And the logic is rather simple. When you drive then the ClearCorrect brand on the B2B side and you make sure that more GPs are going to be feeling at ease with a clear aligner treatment, then they are all interesting to get more patients and the opportunity to increase their capability to treat more patients, which is a lot of the GPs are asking for this. And the DrSmile activity, for example, the B2C2B, are giving them the opportunity to bring more patients that they would not have been in contact with in their practice. And on the other side, every activity that we are investing on the direct-to-consumer, together with DrSmile business model, is not only helping us to sell more clear aligner on this segment, but also helping to fuel then those new patients to our B2B customers that are also very happy with generating this kind of new marketing means for them that they were not having in order to get access to this young, urban, dynamic population that usually don't have any assigned dentist on a regular basis. Then this is their job after, to make sure that they can upsell or cross-sell the patients that are going to cross their door. then the investment we are doing on those 2 business models are really helping the overall approach of: one, growing our ortho franchise; secondly, growing our B2B customer satisfaction and helping them to be a closer customer of ours.

The next question comes from Lisa Clive from Bernstein.

A few questions. Just in terms of your competitive position, I mean, one of the things that this has been, I'd say, the most remarkable about Straumann over the last 5 or 6 years, is this was a market that was dominated by 2 or 3 premium brands. And today, you really seem to stand out from the others. Do you think this is also partially due to your competitors not performing as well? And what do you think the competitive landscape would look like if they can turn their businesses around?

Yes. Thank you, Lisa. It's -- we have always had a lot of respect for competition. and it's a very competitive, intense field, be it clear aligner, be it implant. And when maybe some of our peer premium competitors have not follow sometimes some of the innovation rate that we had, it's much more also because we have been able to differentiate ourselves than counting on the weakness of any competitors. And additionally, even though we see -- or we have seen a bit less competition on the premium side, we have seen a huge competition and very fierce competition on the value side. And here, you have a champion per country. In Germany, we will have Camlog, which is mainly a national player. You will have an Implant Direct or BioHorizons in the U.S. You will have Conexão in Brazil. You will have then -- every time you go in a market or Sweden & Martina in Italy, or Phibo in Spain, you will have a large local player which is putting all his energy and resources into its home country because internationalizing the brand would be too difficult and too costly for them. Then for us, competition is still tough at all level of our industry. And this is why being still very concentrated and focused on the customer makes a lot of sense. We are not really acting based on what competitors are doing or not doing. We are really trying to be customer-obsessed, trying to understand how they are working today, how they will work tomorrow, what their patients asking for and trying to be at the forefront of their pain points and their expectations. And I think this is the way we want to continue to lead our business franchises, by being so close to customers and being very agile and innovative to deliver what they need to be successful and still bringing more smiles out there.

Great. And just a follow-up on that. You mentioned obviously both the premium players and also the value players, and I imagine this differs significantly by country. But where you have gained significant share? Has it been more on the premium side or more on the value side? And where you have gained premium, have you been taking it from other premium players? Or have you been converting dentists from value over to your premium platform?

There are many aspects to your question, Lisa, on this one, but I think I would answer that this way. The very first thing that we have been asked when it was the financial crisis is, well, there is a lot of shift between premium going to value and we see the premium share going down significantly. And we were potentially expecting some effect here with the crisis and the COVID crisis. And what we see is that we are pretty stable share, as you have seen in order presentation, versus the past years of premium and value. Meaning that premium is holding ground, which is a really good news for the market as a whole and for us in particular leading very significantly the premium franchise. Why is this? The first reason is because premium became much more agile than it was 5, 7 years ago by adapting also prices and being able to support better customer, to create a true difference versus value. And also because technology has supported especially digital workflow integration, the fact that premium has been holding ground. Then have we switched some people from value to premium? Yes, some, because they are expecting more and more. If you are a value user and first being converted because of price but you want to grow very significantly your implant practice, you will need more services, you will need more digital integration. And it's where it makes sense for some of those customers to go then to the premium side and to the company like us to be able to upsell, thanks to the differentiation. We know that a lot of GPs still are wanting to have good enough product and are happy with value and continuing to use value. And as soon as we have a very good offering on this side, I think this is totally fine with us. At the end, for the specialist, it's all about making sure that they are pushing boundaries in clinical treatment, in pushing the time to teeth, having that as reduced as possible, somewhat not taking some risk but, let's say, building their reputation on premium brands capabilities like it's the case with our product. Then I would say, from that standpoint, we have seen some rather stable share of premium and value because of those different dynamics. When it comes to the geographical side, you have seen in our financial performance, they are all very strong in all the different geographies. Then we have been able to gain share in both value and premium in all the different continents. North America has been very strong in all the different sites. Europe has been particularly strong also in 2021, rebounding very strongly from the pandemic. And also being able to push a lot of premium and value even in markets like Russia or some of Eastern Europe countries that are mainly driven value, they have been able to deliver very strongly on our new innovation on premium. And you see Asia Pacific has been delivering significantly on the Straumann side, but leveraging also local brands or regional brands as the Anthogyr brand has been significantly sold in China. Latin America being the same. It's obviously mainly a value market, very significant growth on value and helping Neodent to continue growing his leadership there. There is not a region in particular that have been down or one segment that has been down. And it's also one of the reasons why our results have been very consequent and very consistent is because all regions and segments have been delivering on a very high basis.

The next question comes from Oliver Metzger from ODDO.

The first one is on the clear aligner business. So in the U.S., you are basically only active B2C. And first, it's a question on the market. So is there a higher share in the U.S. of B2C or B2B? And the second part of this question is, how do you plan to address the B2C in the U.S.? So in my view, it's a market which cannot be ignored. Do you think more about an organic entry or about your traditional way of entering markets via acquisition? The second question is on your -- on the DSO position in U.S. So potentially on this regional slide, it looked like that you're underpenetrated in this region. So how do you plan to grow stronger in the U.S. at DSO?

Yes. Thank you, Oliver. When it comes to direct-to-consumer, clinician-led activity, in the U.S., we are not. And all our business in the U.S. is B2B. And when it comes to then the activity to Europe, I think this is where we have a share B2B and B2C. Then this is -- then the DrSmile activity. And we are just starting, as Camila presented, in South America with the Smilink acquisition, which is our B2B activity there, but this is just the starting point and it's a very small organization. Then are we interested to enter into the B2C segment on our own in North America? Yes, it would be an interesting market from a volume-wise. But today, when you look at the current intensity of the B2C side, clear aligner in North America, honestly, there is no way to have a market entry for the time being because there are too much competition on the what we call performance marketing and people trying to advertise directly to patients. And the current cost of customer acquisition is going way beyond what is acceptable to make a profitable business. Then we are looking at, as we said, different business model. We have piloted different business model to again contact or communicate directly to the customers, but without going full-fledged investment from that direct-to-consumer advertising which is making -- and we see with some of the major players in North America, which is making the whole game rather ineffective and productive and, at the end, not delivering any profitability. The last part of your question was -- help me again, Oliver. Last part was?

It was on the DSO position in the U.S.

Yes. Thank you. No, actually, then sorry for this, then wrong color of the slide maybe. We have been, in the past, underrepresented in DSO in North America, but we have made a major progress here, thanks to, I would say, very strong results from the North American team, DSO team, because we have announced some of the very large, let's say, customer development and contract that has been won Western Dental has been one. The ADMI, what we call the Aspen Group, also lately, where we have been able then to partner for something like 150,000 implants a year and that's really a huge win. Then all in all, we believe that we have gained significant share on the DSO market in North America, and we will keep developing our capability to partner on a business level and not only focusing on product but focusing on helping them to grow. And actually, I use your question, Oliver, for also something that I'm hearing or where we have often questions saying, but DSO is going to be dilutive on the margin and the EBIT, how do you make sure that you keep a decent margin on this business? First, I think we have to say that for us, DSO are a strong opportunity because they are a business partner. And I was discussing with one DSO CEO that was having an interesting view, saying that, generally speaking, an independent dentist is more on the passive way when he is interacting with patients, which is not the case everywhere. But yes, that means there is more this dialogue and taking time on implementing treatment. Where at DSO, they are really trying to bring oral care out there. They are on the proactive side. And by partnering with DSO, we believe we can really increase the pie. Then making sure that we can address more of our addressable market in the future, thanks to DSO partnership, is actually a really good news because it's going to allow us also to amortize some of our overall infrastructure. Then all in all, we see that DSO being then a good opportunity for us to continue to grow our share within the DSO, but also growing the reach of the implant case out there.

Okay. Great. Just one quick follow-up to the DSO. So do you think that your share at the DSOs in the U.S. is higher or lower than the general U.S. market share you have?

I think we are now getting very close to where we are on the regular business that we have also through independent practice, thanks to the past very successful 18 months. Okay. Thank you. Then let's take the three last questions. Let's get.

The next question comes from Veronika Dubajova from Goldman Sachs.

I have 2, please. One, I want to start with China, obviously, growing focus for you. I'd love to maybe if you can set the theme for us a little bit in terms of what your kind of revenues are today, where you think they might be in 2030. And if you can touch a little bit upon the competitive environment here as well, be great to hear kind of what type of competition you see in the various segments that you're competing in and how that's changing? And related to that, we're picking up some noise from some of your peers that there is a little bit of softening in demand in China in the last couple of months. So I don't know if you have any comments on that, if you can give us a little bit of a current trading update that you see there. So that's my first question. I know a lot of parts, I apologize, but it's an important region. And then the second question I have in that CHF 1.3 billion to 1.7 billion ambition for revenues that you have for the clear aligners business. Would just love to think about how you think about the geographic composition of that, very high level, U.S., Europe versus rest of the world. And I don't know if I've worked to sound correctly, but I think you said you're in 43 markets today with clear aligners. What is that number in 2030? And thank you for hosting this event, very helpful.

Thank you, Veronika. That's challenging us to remember all the questions you asked. But just China. China, indeed, is a strategic market for us. We are doing then a very significant part of our business there. Well, we -- you will see we will -- we take now the decision to disclose our top line in China because it's among our top 5 market. We were, last year, something like 110 million -- over 100 million, in China, and keeping, of course, very significant growth there. What's our approach? We believe China is one way to grow our business and also one way to deliver on our purpose and sustainability. Because in China, there is a lot of market potential. There is a lot of education need. There is a lot of infrastructure development need. And this is also why we have taken the decision to invest 170 million in the next 5 to 7 years to build our Straumann campus, which will be putting together a huge manufacturing place, but also doing a very significant training center and also building up R&D capabilities because we know that there is a lot of technology now coming from China. Then this is, of course, a very strong commitment from our side to the Chinese market and to our capability to grow locally and to bring a significant value for the organization. What's the landscape from a competitive standpoint? Then we have -- of course, it's mainly value side even though in the -- I would say, the public side, the public hospital, the public segment of the Chinese market, it's still very significant led by premium and by the Straumann brand, where we have the leadership there. On the private sector, a lot led by DSOs, and that's why DSOs are also so important in this part of the region. They are much more than the value brands and very strong value brands in China are the Koreans. And that's why for us, the introduction of Neodent, but also the introduction of NUVO, in addition to our Anthogyr brand, is making a lot of sense. And we are currently then investing significantly on regulatory and on training to be able to provide our entire or a significant part of our value brand portfolio to be able to match with the Korean brands' offering. When it comes to then the clear aligner questions, well, the split by geographies, it's going to evolve, obviously. We were very significantly then depending on North America, and we have finally been able to have enough time to roll out now our European businesses. I think here, we are in more than 40 countries, but we hope that in 2030, we are going to be at least, like Neodent today, meaning more than 80 countries in the world. We want to be, of course, a global international brand as we are with Neodent and as we are with Straumann. And we are going to have a rather balanced approach from what we believe in between North America, Europe and Asia Pacific. This is why we are already investing significantly again in China, to take the China example, on clear aligner market this time. And as presented by Camila, we hope, by Q1, being able to launch our ClearCorrect activity. We just need a final regulatory side, but our treatment planning is ready locally, our manufacturing is ready locally, and we are ready to go on China with clear aligner as well. Then we should be with clear aligner, very balanced from a geographical standpoint and, of course, having also a very, very strong brand on the B2B side.

And any comment on current conditions in China? Have you seen any change in customers' willingness to spend and go to dentists? And I know very different discretionary kind of dynamics there than the rest of the world.

We have not seen so much change lately. We have seen China still being dynamic. Then I would say there is not evident change short term, I would say, of what we have seen in China, even though China is obviously going through some, let's say, structural changes as well. But so far, so good from our Chinese activity.

The next question comes from Maja Pataki from Kepler.

Most of my questions have been answered, but still two remaining. And it is centered around your focus or your presentation about the DSOs and the growth or extraordinary growth that the DSOs are seeing and the importance for the Straumann Group going forward. Could you help me understand how important the DSO exposure is for your 2030 target on the orthodontic side? I believe that currently you have a very limited exposure, if at all, through your clear aligner business to DSOs, yet it seems to be a very obvious sell-through, if you want so. So that will be my first question. And then my second question, there are, obviously, a lot of opportunities with the DSO that we're seeing, and you're also very well positioned with the education and the learning and everything. But what is the risk if you lose a large contract? Can you remind us on how the contract with DSOs are established and how you're locking those in?

Thank you, Maja. I think to answer your question, yes, you're right. We have -- our major activity with DSO today is on the core implant side because we have been also just developing our internationalization with ClearCorrect. And we have now to make sure that we can become a significant partner of DSOs in the clear aligner side, then work in progress, still a lot of work to do, which is also an opportunity. What is the share of our DSO business within the ortho franchise in 2030? I will be honest, we did not go exactly in that granularity of planning 2030. But obviously, if we want to be successful, it has to be a significant side. And we have to make sure that we will also be able to be winning DSO on the clear aligner side through the right approach. Then we don't have a very precise number to share here. But what we can say is that we have to have a decent penetration in DSO to be able to achieve our 2030 target in the clear aligner space. When it comes to the contract with DSO. First, we are not going to -- and we are not using locking them down because we are looking much more as a commitment standpoint from both sides. If we want to position ourselves as a business partner, it's important that they see a lot of value in what we are doing and they don't feel they are constrained to stay, but they are more willing to stay for what the value we are providing. And this is where we are saying we need to still pilot some of the program and scale because we want to create those added value services that will make DSO then a partner for growth, much more than a customer that we need by every means to retain. That's more from the global perspective on how we are dealing with DSO. From a pure contractual standpoint, very often for large DSO, those are 3 to 5, 6 years contract. Because when you are -- services large DSOs, there is a lot of infrastructure to put in place, a lot of education to put in place obviously. And to get the return on investment or at least the outcome of all the plans that we are putting together with the DSO and the energies putting in growing the business and the energy we are putting in there, then we need a little bit midterm contract in order to make sure that we can generate the value that we are expecting on both sides.

The last question for today's call comes from Falko Friedrichs from Deutsche Bank.

Let me keep it to one question. It is on the custom prosthetics and CADCAM equipment market, right? So according to your slide, that's very sizable, 7 billion market. Your market share is still fairly low. Can you share a little bit of insight into the competitive dynamics in that market? Is that also one that is heavily dominated by local players? Or are there sort of a couple of bigger players out there globally? And then also, do you feel like you currently have the right setup in terms of your portfolio to gain further market share? Or would that require further strategic acquisitions going forward?

Yes. Thank you, Falko. This customer is prosthetic. It's a very interesting market, and it's obviously very appealing with being almost 5 billion. And one of the key explanation why we have a still low market share. So first, it's a very fragmented market. And it's a lot of different companies providing different kind of raw material or technology in order to do this customized crown and bridge, and especially those CAD/CAM side that are done by either milling or either printing or different kind of technology. And we also think that this has been delivered by many different companies with also some limited product differentiation at some point. Zirconia is, of course, the material, the most used in this segment, and you are finding zirconia from almost all providers, local providers, in all geographies at rather limited prices. One of the things that would be attractive in this market and that we are following up and, of course, having some investment is 3D printing. And 3D printing will be the next generation of customized prosthetic. That will be very disruptive because we believe that all the crown and bridge that are currently milling will be freely printed in the future. This is going to be 3, 5, 7 years. No one knows exactly. It will depend on how fast the capacity of resin will be able to mimic the current ceramic outcome, be it in the mechanical characteristic, but also in aesthetic rendering, but we are really not far from this. We see a lot of temporary crown, a lot of temporary [indiscernible] that are already done completely through 3D printing. We see a lot of those workflow then being implemented right now. And why this is going to take up for sure is that this is a much more standardized approach to customized prosthetic. You don't need to have so much skilled dental technician. There are less and less dental technician available actually on the marketplace that will anyway then push very significantly this technology development. Then for us as an organization, how do we want to work in this field, then we want to be a player in the resin technology that was -- we have done this acquisition with Yller. We are also distributing some product from key partners in order to provide complete portfolio for the laboratory that are leveraging this 3D printing and continuing delivering especially on the prosthetic on implant, a complete workflow, being able to deliver from the implant to the full-control crown, including this 3D printing technology. Then tomorrow, we will be able to enter more in this space by solution selling, by workflow integration and by technology development. This is still early stage for us on the resin side, but this is an area that we are looking very precisely because opportunity will arise. Well, with this, then we would like to thank really all of you for the time that you have dedicated to this Capital Markets Day. We have been really delighted to have so much time with you presenting where we want to go and the commitment that we want to take from a performance standpoint, but also on how we are going to do that and leveraging also our capability of growing by also delivering more out in the communities with our purpose and also our new sustainability framework. We wish you then all a great holiday season, of course, being healthy, especially in the current circumstances. And we are looking forward then continuing the dialogue and looking at the next appointment where it's going to be our full year 2021 financial results release. Thank you very much, and have a great day.