Simon Campion: Yes. Good morning. So, Ortho again performed extremely well and SureSmile in particular, I would say globally, it performed very well. We’re now in over 55 countries. Europe had a tremendous performance and excess of 50% growth in Europe on SureSmile and we’re winning in the in the GP arena. That’s where we’ve been focused on. We are also in the process of equipping our Ortho reps with scanners as we focus on scanner penetration too. So SureSmile is a critical component of our business, has been and will continue to be. We expect to launch some additional simulation tools in the back half of the year. We also expect on the Byte side which is another solid quarter of growth to launch Byte Plus as we roll towards the end of the year which we feel will help drive more patients into the GP channel and so they can actually become patients, not just for the Byte aligners, but also for other preventative and restorative care in the GP space.
So, an area of intense focus, a lot of investment and as we said in our prepared remarks, we continue to evaluate opportunities to invest in commercial channels for our Aligner business on a global basis.
Michael Cherny: All right, thanks.
Operator: Thank you. Please stand by for our next question. Our next question comes from Jeff Johnson from Baird. Please proceed.
Jeff Johnson: Thank you. Good morning guys. Congratulations on the continued progress. Glenn, you touched on it in one of your answers here just recently on a little bit on the cost saving sides. But out of the $200 million that you’re planning over the next several years, can you just remind us what so far is run rate into the P&L? And I think more importantly, as you’ve reactivated some of that Implant training doubling down here on some of the clinical education, the ERP progress is starting to happen. Just remind us, the phasing maybe of that $200 million in savings over the next one, two, three years, does the bulk of it come in year one versus year two and three and how much initially of those savings should we expect to be offset by some of these added investments here at least in the short intermediate term? Thanks.
Glenn Coleman: Hi, Jeff, thanks for your comments. First, I would say we’re on track to our restructuring plans with annualized savings of $200 million to $225 million. That will be realized by mid-2024, so most of the savings would come next year. For 2023, what we said was we’d achieve about $0.30 of savings from the restructuring program. That’s about $85 million. But to your point, we are investing a lot of that back into the business, commercial infrastructure, whether it be North America Implants, DSOs, a lot of investment in clinical education, the ERP system, compliance and qualities, to name a few. We basically said that those investments would consume about $0.25 of the $0.30 in terms of the restructuring programs, only the $0.5 would flow through this year in terms of the restructuring program.
In terms of where we are, the headcount actions have essentially been taken across all countries outside of a few in Europe and those are obviously complex in terms of the multiple workers council approvals that we have to get through. And we’ve also got to get some additional non headcount savings in the back half of the year. But on the whole, everything is progressing as we would expect. If you look at the first half of the year versus second-half of the year for 2023 and the meaningful improvement in the back half of the year, both in terms of EBITDA margins and EPS, so, we did $0.90 of EPS in the first half midpoint of our guidance, which suggests a dollar seven in the back half. Over two thirds of that improvement in EPS is expected to come from the restructuring savings kicking in the back half of the year.
So hopefully that gives you a lot of color on what we’re expecting this year and then obviously as you move forward to next year, we should see another meaningful increase. In the restructuring savings, we haven’t yet laid out how much of that is going to be offset by investments next year, but clearly there will be a nice pull through when we look at 2024.
Jeff Johnson: All right and hopefully this doesn’t count as my follow up, but would you expect those investments to be less as a percentage of the cost savings next year, so more of the cost savings can flow through. But then the follow up question I do want to ask is just on Europe, what’s your just, maybe, sign and your update on state of the economy there? I think your comments this quarter were maybe a little more guarded, obviously leading that to economic indicators have not looked great. Obviously, you have a pretty sizable exposure to Germany with the Sirona legacy business so maybe it’s all equipment, but what is patient demand looking like there? How concerned are you about maybe the next six to twelve months?
Is that something that you think Europe could really see a consumption issue from a general standpoint? Is this just an equipment sluggishness right now because of Germany’s macro? Just how to think about the lay of the land in Europe right now? Thanks.
Glenn Coleman: Well, thanks. Sure. So Jeff, just like we did for the last two quarters, we ran our survey and we got about 450 responses from Europe, about half of those came from Germany. And I would say sentiment in Germany with customers is muted and has deteriorated versus the prior survey. Especially around capital equipment and indeed around patient volumes, let’s say the other geography that is a watch out for us and others I’m sure is Australia and New Zealand. They’ve also, their sentiment has also declined but in the other countries in Europe, the UK is stable, France is stable, Italy is stable. So it’s really centered around, the negative sentiment that we that we found in our survey is primarily centered around Germany and Australia, New Zealand with everywhere else stable to modest improvement very modest improvement.
