I was born with a cleft palate, and that meant a lifelong struggle with dental issues. I need to develop adult teeth to replace a lot of my baby teeth. I'm missing a lot of teeth, and it's all because of my genetic syndrome called Ectrodactyly-Ectodermal Dysplasia-Cleft (EEC) Syndrome. My family and I have always known that, my entire life was going to be full of maxillofacial surgeries and dentist appointments. I have lost count of how many surgeries I've had, but I'm pretty sure it's well over 30, probably closer to 40. It's a barrier when it comes to trying to move up in my career. I just know that I have so much to offer to this world, and I haven't really felt like the right people have given me the chance. I'm pretty sure it's because of the way I look.
Her teeth were not just decayed, but also developed abnormally, and they were different sizes. They were in different locations, upper and lower. Her bite was not in any normal or any kind of functional bite.
This does not come around every day or every time. I have done tons of smiles. I have been in this profession for 30 years, and I have seen it all. This case certainly is a very unique case.
Dentures would be really difficult for someone like Jackie to wear, just because dentures, by definition, are sort of made in a way that they work on a, on a normal jaw. Jackie was not born with a normal jaw.
The costs of all these surgeries and corrective work has been an extreme burden on my family and me.
She knew that she needed implants. She just didn't know how to get them. I just knew we had to do something. She deserved at least the chance to live a normal life.
Dr. Denitsa called me, and he said he'd been selected for the Let Them Shine program. My whole life flashed before my eyes. I felt the greatest joy I've ever felt. Finally, I'm gonna live a normal life.
This is the minimum a human being can deserve or wish.
In combination between the Let Them Shine program and our Saving Face Foundation, we were able to provide this care at the highest level that dental implants can provide.
When I got home after getting my first set of temporary teeth, I would catch myself looking at the mirror more often. I would be like, "Wait, who's that? That's me." Like, my feelings are like, I want to do everything. I think the main thing is I'm looking forward to growing my career. Now that I have these brand new pearly whites, I feel like I can take on the world. I was in a call with a friend after not talking to her for several months, and she said, "Wow, I can understand you. You're coming in so clear." I was just so blown away by the fact that she had actually noticed without even seeing the teeth. Just knowing that it's made a difference in that way has really boosted my confidence.
To the people at the Let Them Shine program, you've changed many lives, including mine. The work that you do is invaluable.
Wow. Good morning and a very warm welcome to all of you to Straumann Group Capital Markets Day 2025. After a fantastic day yesterday in Villeret, where we visited the production site, it's a pleasure to have you all here. Four years ago, at the last Capital Markets Day, we were all on our own up here. Thank you very much for coming from very far away and to be with us for the whole day. Some housekeeping. Take note of the disclaimer. We will record this session, and we'll make it available on the website, obviously, once all is done. We have a fantastic agenda for you that you have seen. It's all about perform and transform. I don't want to steal the thunder, so I leave all more details to my colleagues speaking afterwards.
During the break, you will see outside, we have some booths, some small kiosks where you can see the products and the solutions that we have. These people will also be available at the end of the session after the Q&A during the flying lunch. These people will be there to show you hands-on also what we will talk about. With no further ado, I will now hand over to Guillaume Daniellot, our CEO. I think he's even more excited to talk to you than I am.
Thank you, Marcel, and good morning from my side as well. Good to see everyone here. Thanks for being with us physically as well as everyone who is also then online. We are really excited to have the opportunity to share with you, of course, our perspective, our vision, and our ambitions for the next strategic period, 2026-2030. For starting, I would like just to echo the patient movie that we have just seen, which is really the symbol of the purpose of our organization that we have set in 2021. Unlocking the potential of people's lives, this is really what we do every day, in partnership with dental professionals. This is really critical for all of us because that's also why we are getting up in the morning.
You have seen the patient of the people in the factory yesterday, that you would see that in all our different organizations. That is where, that is the way also we are creating those smile movements that are financing the Let Them Shine program that you have seen. This is a very central part of who we are as an organization. How are we unlocking the potential of people's lives? Beside doing all those philanthropic activities is obviously delivering the best product to dental professionals, the best educations, and by being the most innovative, customer-focused, and digitally powered oral care organization in the world. That is the bold ambition we had set for ourselves in 2021. Back then, we have really defined clearly how we would like to move forward. The previous Capital Markets Day, four years ago, have really set the scene.
We have, clearly, presented our bold ambition of having a double-digit growth CAGR over the 2021-2030 period and being able to touch, transform more than 10 million smiles annually by 2030. We have set also our clear strategic compass to define how we are going to do this from a strategic standpoint. It was four major, strategic dimensions: product dimension on the perform side, that was implant and orthodontics; two strategic customer dimension on the right side for the transform, that was especially the winning, target groups, strategic target groups that have been DSOs and, developing, consumer presence.
That was very important at that time and enabled by two strategic, then, aspects of our, let's say, strategy that was, on the one side, double down on our culture in a sustainable manner and also, of course, starting a digital transformation that was very important in our eyes to be at the edge of the transformation of dentistry that we were starting to see, then happening. We have also doubled down and reconfirmed our core belief. You know that our high-performance culture of player-learner is central to what we do. This is what is about, the customer focus that we have been talking before. Everything we do is really related to customer needs, developing that intimacy with customers to make sure we are doing meaningful innovation, being able to anticipate the trends.
That is why we have our culture about entrepreneurship, being able to take calculated risk and delivering on expectations, but doing that as a team, which is the we dimension, and of course, supporting every individual in our organization to grow, because better people in our organization are making better teams that are making better results. This was the scene that we have done. When we arrived in 2025, we said it is the right moment, midpoint in between 2021 and 2030 to assess how we have done and if we are on the right path and how we are going to continue to develop. That is what we have done, during 2025, and that is what we are going to present to you today.
If we look at the pure financial performance, then we are very pleased with what we have achieved: 16.2% CAGR between 2021 and 2024 in net revenue that translates to 9% CAGR in Swiss francs. We see already some significant impact in the Swiss francs at the FX rate. From an EBIT standpoint, 18.5% CAGR from 591 million to 983 million, sorry, which is, I think, 32.4 at fixed FX rate from 2021. The 30.6% is coming from the DrSmile Restated P&L. You know that we have then divested DrSmile in 2024. This is the restated EBIT profitability that we have done in 2021.
This translates in 3.2% CAGR, from NIBIT margin progress, really demonstrating once again here the very strong FX impact that we're having, in when we are then translating everything in Swiss francs, which is one of the aspects that we are obviously working on to be able to mitigate a part of this moving forward. All in all, we are ahead of our plan when it comes to top-line growth and when it comes to EBIT margin development. Now, when we look at how we have done from a strategic dimension standpoint, which is the how have we delivered those results, we have really defined a very clear strategy for us, which has been very, very important that it cascaded very well in all the different sites and subsidiaries to have consistency in delivering on those strategic dimensions. The first one is on the cultural side.
While we have been growing significantly in terms of team members, reaching around 12,000 team members in 2025, our engagement score kept improving. We were 77 in 2021. We even moved up to 82 engagement score, which is placing our organization among the top organization in terms of corporate culture engagement, and which is very, very important in our eyes because this is supporting our capability to execute in a very fast manner, but especially our capability to be agile with regard to a very volatile environment. We have been able to deliver 6.7 million smiles already. We are ahead of plan as well, especially by a strong volume of implants sold, that have been also very much ahead of what we have been planning. When it comes to the top left quadrant, which is the implant side, very strong performance.
We grew our market share from 29% to 35% on the implant segment, especially leveraging on the one side the innovation capability of our organization, but also leveraging a lot the multi-branding strategy, multi-brand, multi-pricing from a geographical expansion standpoint. Looking at the winning the strategic target group, you know that we have done a lot on the DSO side. We developed specific DSO team, worldwide. We developed a specific way to address them, specific customized value proposition to be really a business partner, much more than an implant provider. We have also here delivered double-digit CAGR over the period on the DSO segment, which is one of the significant growth drivers also for us as an organization. Finally, one of the aspects that has also been very strong in 2021, 2025 almost, is this digital transformation.
We have invested significantly in digital transformation because we believe that the digital aspect of dentistry is going to lead a significant, significant way to select product, to use product in the future. We have significantly increased our intraoral scanner base with more than 50,000 scanners at the moment, still growing significantly. Especially, we have been able to develop and now make available to the market our Straumann cloud-based Access platform, which is going to orchestrate the entire Straumann ecosystem that we are going to see later.
One of the aspects that we have been behind our plan has been the clear aligner development, where we have still having a 5% or a bit less than 5% market share, especially because we have been investing and believing in 2021 into a direct-to-consumer business model, where we have invested in DrSmile in May 2020, working very well until the big period of significant inflation after the Ukraine invasion by Russia, making it very challenging for a lot of consumers to, well, I would say, acquire or buy those kind of aesthetic treatments.
We have seen that very quickly, past 2022, that this business model is not going to be sustainable from a profitable standpoint and that it needed to be in different hands that are having a clinical network and physical network to be able to perform. That is one of the reasons that we decided then to divest DrSmile to the Impress Group, that we have done mid-2024. This is one of the ways where our total critical mass in clear aligner decreased as our direct-to-consumer web, a significant part of it. While we have been growing very well on the B2B side, I think we were expecting to be, from a clear aligner standpoint, at a bigger part of our total top line.
Obviously, the B2B is still a very interesting segment, and we are going to see how we are going to court, back here and being able to perform also to get those elements in green as well at the end of the period. All in all, you see a very strong development, positioning us very well for 2026, 2030, as we have a lot of strength that we can build on and a lot of area where we are already starting to transform, to make sure that we can still develop very significant growth moving forward.
Starting from the strong base, where we can see that, while we have been delivering on almost all our strategic intent, what is, what was really important for us was also to reflect about what are the trends around us that we need to take into consideration and use them, obviously, as a tailwind instead of taking them as a constraint. When we have done that analysis with customers, with internal teams, we have defined four major trends that are impacting our environment and that are impacting our business and industry, as well. There are two new ones that were not there in 2021, two that are accelerating and that we are going to continue to anticipate. First one is, we have all seen, about what's happening around us. We are really moving from globalization to a much more fragmented world and fragmented environment.
There is a lot of policies by major countries to try to restrain market access. We have seen that with, lately the new Trump administration placing a lot of tariffs for a lot of import goods. We have seen that also in China as an example. VBP is a way to restrict market access, also potentially in the next VBP 2.0 to favor local manufactured product. We see that also in different countries that are intending to do that potentially that we have heard. There are those kind of discussions that are happening in India, also in Saudi, then meaning that we have a lot of areas where we need to be prepared to a very different way to do business when it comes to supply chain.
The good news for us is that we have already anticipated this, and you will see we have a manufacturing network which is going to help us to be very resilient with regard to this new state of the world when it comes to the fragmentation. Another very important shift that we have seen, it's a shift in the competitive landscape. We have been used to have the regular competitors that are mainly coming from Europe or North America, and we see a lot of competitors coming from Southeast Asia and now in China. If you take, for example, implants, we have seen Koreans are very strong competitors for the past years, but we have seen in the regenerative business, for example, Chinese companies being now very strong, going against the leader of this segment.
Intraoral scanning, we see major technologies that are coming from China and that are very, very successful and that we are leveraging actually, one of them, by having anticipated this move. We see, also in clear aligner, very strong competition, coming from China as well. We need to be prepared to have very different, competitive landscape moving forward and being able to embrace this as an opportunity instead of looking at that only as a major risk or threat. We have also seen some, two very important trends that are accelerating and, actually that we are pushing further as well because we do believe digitalization is a very strong opportunity of differentiation. We have seen a lot of, then the digitalization of equipment. We have seen a lot of software coming into, dental, but it has not always been easy to use.
With the introduction of AI now, which while it has been a buzzword, there is very clear application now of AI in dentistry, which is changing significantly processes, workflow, and driving efficiency and profitability in the dental space. Being able to, be ahead or leveraging this to differentiate and bring more value to clinicians and practice is going to be critical in the next period. Last but not least, consolidation in dentistry continuing. We are seeing the dental service organization, you know, grabbing more share of the, the care delivery market. They are representing now, when it comes at least to the implant side or in dentistry in general, around 30% of, total dentistry. And we see that everywhere. We have been talking about DSOs a lot in North America, but, it's exactly the same in China.
It's exactly the same now, moving significantly in Europe and Latin America in the same. In all our regions, we can leverage all the processes and the value propositions we have already started to develop, because those DSOs are really supporting significant also transformation of dentistry. Why do we appreciate this consolidation? DSOs are key partners for opening the market. They are really also here to make sure that they are driving patient flow. They are investing in advertising for high-end treatments. It happens that as implant and orthodontics are the most profitable treatment in dentistry, they are pushing also for those treatments versus the more classic, I would say, than tooth restoration or prevention. DSOs are partner of growth for us as an organization, and it's then a very important segment that we need to continue to lead.
Beside the trend in DSO consolidation, we also see dental laboratories consolidation as a response to this DSO consolidation, as those large network of clinics are looking for consolidating their prosthetic work. We see a lot of labs now getting together, and we'll see also the same trends in the lab space. Those are the very important trends that we are taking into consideration for setting up our 2026, 2030 strategy. We have also additional trends, but that are very specific then to dentistry that are going to be, on this one, very significant tailwind. We know them. They are the one, the trends that are very traditional to our market, but are really fundamentals that are the one that are pushing our market to grow.
That's why we know that in the next strategic period, we are all, we are going to continue to benefit from the aging of the population. We see that everywhere. I think it's pretty, explain and talk everywhere about the aging population of China, aging population of Japan, same a lot into, then the Europe, actually Germany, Switzerland, very significantly, trend of population aging, with people wanting to get, really a really good quality of life and then having, placing tooth replacement as one of their priorities in term of spending discretionary income. Something which is also important that we have heard a couple of times is that, yeah, but with hygiene improving, then maybe, as decay will go down, then indication for tooth replacement will decrease. Actually, we see more and more implant indication coming from other, incidents, disease like diabetics.
Diabetics is leading to periodontal disease, which is leading afterwards to tooth loss. That is why we are seeing significantly that tooth loss incidents is not going down significantly, but because of also different reasons. There is higher awareness, I think, through all the information and of course internet and so on. Patients are seeking for what are the alternative for treatment. It's pretty known that implant is gold standard, and also that orthodontics could be done differently than brace and brackets. Patients are also asking for those high-end treatments, which is also supporting then the segment in which we are. Rising affordability is also a trend we have seen. That is why emerging markets are really growing faster.
We have more dentists being trained, but we have also more patients capable of affording dental treatments, especially because not only middle class have been expanding, but we have seen also the price of implant has been also decreasing in many geographies. Finally, patients are asking for faster time to treatment, more aesthetic because of that, social pressure. You know, won't mention all the social media and so on, but image is still something very important, more and more important in all the different, then cultures and part of the world, which is also driving significantly opportunity for us moving forward. You see we are in a really interesting industry as when we look at the fundamentals, it will remain for quite the long period, moving forward. This is where we are going also to base our capability to continue to grow.
The second aspect, behind those fundamentals, is also the fact that we are in very under-penetrated market segments. We said that many times, but we have been talking about implant for quite some time. But implants, when you look at the market, whatever the geographies, there is 220 million patients per year who can afford an implant treatment and that have missing teeth. It happens that only 17 million are doing a treatment on a yearly basis. There is a very important reservoir moving forward about patients that we have the possibility to pay a treatment and will be able to, undergoing, this implant or orthodontic treatment as well. We will see it's the same. There are more than 600 million, for example, of patients with, then the crowded teeth in the GP segments.
When we look at the total ortho starts per year, which is 20 million, only 5 million are done with clear aligners. Not only is there a lot of under-penetrated treatment on the orthodontics cases, there is also a lot of them that are still done with braces and brackets, at least on the adult side, that could be switched to clear aligner. Here the market potential is also very significant. The third segment in which we are, which is digital dentistry, you have seen certainly that there are 2 million dentists out there, more or less, and everyone is going to work with intraoral scanners in the future and digital workflow. We assess that the market penetration is between, well, 35% or at least anywhere between 30%-40% of intraoral scanners have been purchased by one practice.
Tomorrow, with the technology and the price level, we are going to see one iOS per chair. The potential of intraoral scanner in the next five years is massive, meaning that again here we can really benefit not only from the secular trends that we have seen in dentistry, but by really very significantly under-penetrated segment in which we are having a very strong value proposition to propose. All in all, if we would like to look at numbers from an addressable market, we have a somewhere between $20 billion addressable market across all segments. I would say on this side, this is all our core segment in which we have been acting in. The implant segment, you see here, $6 billion, from a total value standpoint, 35% market share as of today.
We plan a mid-single digit growth for the market between 2026 and 2030. Regenerative, which is really connected to surgery of dental implants, $700 million, with 15% market share and same mid-single digit growth. This is where we have our core strength. This is where we are bringing a lot of our innovation capability, where we differentiate very significantly, where we have a lot of very strong connections with all clinicians with very strong brands, Straumann on one side, Neodent on the challenger side, completed by Anthogyr and Medentika. Very strong capability to keep growing this business on our side in still a very under-penetrated market. On the right side, we have three segments in which we are in for quite some time where we have limited market penetration.
The clear aligner side, with a little bit less than $5 billion market, we have around 3% market share here. We believe still that it will be a low double digit in 2026, 2030 when macro will be a little bit better. This is really a segment where we do believe we have, then the strong opportunity moving forward through significant transformation. Digital equipment, especially iOS, as I expected, explained a little bit before, 5% market share, a little bit more now, significant growth on our side. It will be also double digit growth in the next period. We are going to see also we have a very new value proposition to bring very new technology, which is going to allow us to accelerate our development. Finally, CAD/CAM prosthetic, a very significant market, $5.6 billion.
We have less than 5% mid-single digit growth over the period. We are also bringing here a new technology with a strong partnership with SprintRay, but also leveraging the investment we have done on our digital transformation. You see two different aspects when we look at our addressable market. On the left side, strong capability, strong market share, further development coming based on all the very strong development pipeline we have. On the right side, historically low market share in very interesting markets, but where for each of them we have a new technology to propose. We are transforming our clear aligner with that partnership with Smartee, and Florian will talk about this, which is going to change completely our competitive situation. IOS, very strong also value proposition, which is new, just starting, our Sirius X3 has been launched a couple of weeks ago.
Very strong new competitive situation and value proposition for us. CAD/CAM prosthetic with a very new technology as well, with at the beginning of disrupting potentially this workflow. You see that a lot of movement will come also from the right side, which has been historically one space where we have been small progress. We are going to do a very strong acceleration on those ones that will complement our core competencies. Now we are two additional strong assets that we are going to build on, moving forward. First, a well-balanced revenue across all regions. You know, a very strong, of course, historical presence in EMEA with 40% of our total top line. A third almost in North America with 28%. Very strong development in the past five years in Asia-Pacific with 23%.
This very significant presence in Latin America, very high market share thanks to the Neodent brand in Latin America representing a little bit less than 10% for our total top line. We are able to benefit to all the different, of course, growth or dynamic growth in any of the specific region when it's coming. It is also allowing us to have more resilience when we have a part of the regions which is not working very well or facing more macro challenges. I think, mirroring this, we have also set up a very diverse and resilient supply chain, then the network and especially manufacturing network with, as you see here, we have manufacturing sites all across the planet, but especially more importantly when it comes to our core business on implants, we have one important manufacturing site in Andover, North America.
Obviously, one central, very important site in Villeret that you have visited yesterday in Switzerland. We have just opened our Shanghai manufacturing site in China that will also manufacture then Straumann Green and Anthogyr, one of our challenging brands. We have really the capability to be resilient when it comes to any potential supply chain disruption. As we see the volatile environment, this is also a very strong asset for us to rely on for the next period. Exciting addressable market, strong asset to play with. We are very confident to have a strong 2026-2030 period. We have also defined very clearly the playbook with which we want to grow during this next strategic period. Three major strategic dimensions for our 2026-2030 playbook.
First one is expanding implant leadership, playing with our core capability to double down on the innovation and a very strong brand that we have on our core segment. We are transforming our orthodontic franchise, very different way of, then, delivering our value proposition, very, strengthened, significantly strengthened value proposition in that orthodontic franchise that will allow us to be very competitive, focusing especially on the GP DSO segment and disrupting the chairside prosthetic thanks to digitalization and all the capability to have very affordable imaging capturing devices, AI, then, automated design and now 3D printing technology, which is arriving in our practices and that can deliver now final crowns with new resin technology, which is just the beginning, but we have the capability to do one of the dream of clinicians that has been doing a crown in one hour.
This is what we see coming in dentistry and we want to be part of it. At the end, we have a very strong vision and a very strong belief that market share gain will come from the very powerful combination of innovation and digitalization, product innovation and digital innovation. The combination of both will create significant competitive advantage. To go a little bit deeper into this, the innovation side is what is driving product excellence. This is what we are very strong at. This is our core competencies for decades with expanding indications, driving improved clinical outcomes, driving confidence within clinicians, even for pushing boundaries in indications and being able to simplify treatments in trying to reduce as much as possible all the different inventories while being able to enlarge indication.
At the same time, now clinicians are really asking for having accelerated treatment because patients want, well, a smaller time to teeth or shorter time to teeth. They want to have less appointment, which is creating, of course, profitability and efficiency in the dental practice side. As we have talked about DSOs, they are looking for standardization and driving scalability in their large network because they are having a lot of dentists that sometimes are doing, surgeries or they're doing implant treatment of orthodontics in a different manner. Being able to standardize and drive scale thanks to digital technology is also one of the very important requests in the market moving forward on which we have invested. How do we translate this?
I think we will see product innovation, which is something which is very important, but we have invested very significantly on the digital, the transformation side as we expressed, I think, four years ago in order to digitalize the end-to-end treatment journey of a patient. That is what we call then the platform technology being able to link together all the different aspects of dentistry. This is the Straumann Access platform that Thomas will present to you in more detail afterwards and why a cloud-based platform is critical in the period to come. What we have seen before and what we had before, the current period is we had a lot of digital tools, a lot of digital equipment, CBCT scanners, intraoral scanners, but you have software being done by different companies. You have consumables like implant orthodontics done by, again, different companies.
You have some software as well for monitoring treatment or doing clinical reviews that are done also from other companies. What was the challenge is that connectivity has been always a mess or challenging because you need to use like WeTransfer to upload some very heavy data file like DICOM data file. You have not software that are connected. You need to go in different websites. You have different logging, different passwords. At the end, we had digitalization that was like a huge potential opportunity, but has never been transformed because of the cumbersome way to work with all those tools. The big, big differentiation now is that a platform, cloud-based platform, is bringing all of this together. It is making, then you will see, data exchange easier, collaboration better.
At the end, when you have a digital experience, which is really positive, you will be, of course, loyal to it. You will be sticking to it. I don't know how many of you are using Amazon, obviously, but we are used to say Amazon is not in the distribution business. They are in the one-click business. They are in the customer frictionless business where you have in one click, you have all your data anywhere available. You go there because you know it's going to be easy, fast, and convenient. We do believe that in the future, the selection of the consumables at the end of the process will be driven a lot by the workflow to which to get there.
That is why, of course, it is really critical, strategically speaking, to drive clinicians to the workflow of their choice, but that are going to deliver the value that they are looking for and, of course, being able to deliver and support them with the consumables that are coming from our side, meaning implants, meaning prosthetics, meaning clear aligners. How do we make money with that platform? That has been a lot of, of course, investment from our side. We make money with, of course, selling digital equipment. That is why it was very important for us to have solutions which are going to allow us to have a very competitive value proposition. Because the more you sell scanners, the more you have the capability to connect a lot of users on your platform.
We have the opportunity and we have already more than 50,000 users that could be connected to that platform. We have all the open technology scanners that could connect. The way to, of course, monetize those investments is also to have the opportunity to sell a lot of those intraoral scanners moving forward. There are the software subscription fees because now we have our software solutions that are going to be on the cloud platform where clinicians can opt in, opt out, as they want. It is not going to be the major, the major revenue stream of this digital transformation because obviously our goal on our side and the major revenue and strategic reason why we are doing this is obviously selling more implants, selling more prosthetics, and more aligners.
This is the way we monetize, then, this digital investment is obviously driving still significant growth and market share on the key segment in which we are in and, of course, leveraging all the digital technologies like iOS that we have been acquiring in 2023. This is the new part of our organization, leveraging very strongly our deep expertise in product innovation. We are going still to come up, you will see with Andreas, with new surface, with new materials, with new design. This is not stopping, but we are adding the digital competencies in order to ensure that we can multiply our results of innovation through the digital and the digitalization and the clinician experience, which is going to drive future choices. At the end, what we're expecting from all of this, we have seen strong culture.
This is a very strong differentiation with our high performance culture that we have been building up and still doubling down. Innovation from the product side, I have said, continuing strong innovation flow that we are going to come in all the different segments. Digitalization, which is now kicking in as we have done those investments. The platform has just been released at the beginning of this year at IDS for EMEA. It was a little bit earlier in North America. It is the starting point of transforming that clinical experience, but connecting everything together. Clinical evidence is really still for us our trademark. This is who we are also when it comes to product.
We are here to unlock the quality of people's life, to unlock their confidence also because clinicians have a very strong confidence in our solutions backed up by all the clinical evidence that we are doing from clinical research publications, which is a strong differentiation with some of our competitors. Finally, a big asset beside our supply chain and manufacturing network is also the brands that we're having, recognized brands that are driving confidence, that are seen as very reliable. That's why we are very proud of those Swiss-rooted Straumann Group quality of implants, but also obviously Neodent being now a global brand recognized worldwide, which is also a very strong asset for us moving forward.
This is why we are confident that our ambition for 2030 is being able to deliver over the period, 10% CAGR average, for revenue growth and being able to grow profitability by 40-50 basis point core EBIT margin per annum on average as well at 2026, at constant FX rate, during the 2026-2030 period. I would say this is where we are and this is our ambition where we want to be with a very differentiated and a value proposition and a lot of new competitive capabilities in the segment in which we have not been strong so far and obviously doubling down on the core business in where we are going to gain shares.
For illustrating all of this and being able to give much more detail on each of those segments and those new competitive value proposition, we are going to have our teams that are going to detail a lot of this for you. Next, in order to finalize the big picture on the digital transformation, I will ask Thomas to present you more of the digital transformation.
Thank you, Guillaume. Thank you, Guillaume. Sorry. Good morning also from my side. I'm trying to do something which I did for 20 years, show you what I did while you hopefully as a user of our products do not see it.
Step in the back with the digital transformation we are bringing and, picking up on what Guillaume said and thinking about why are we transforming the, the experience, especially the digital experience that our customers are having is, when we talk to them, the, the feedback is more and more. It's not only the product, but also especially this digital experience that is driving why they are consuming our products and how they can treat patients very good. The core principles that we follow are essentially driven by simplicity. Take the hassle out of the treatment because what we are looking for is an improved quality of care, a faster treatment, and an increased efficiency while you achieve that faster treatment. Everybody involved in the process wants that.
Guillaume said it as a patient, I want to be at the end of my treatment more quickly. I want my restoration done with fewer visits to the practice, for example. For the practice, they want to achieve that, because chair time is essentially what they earn money with. If they have patients for a shorter time in the chairs, they get the time to actually treat more patients and grow their business. For us as a company, this is important, since, if they treat more patients and provide access to excellent care, then we sell more of our products in the end. This is what we are after. This has been driving the principles under which we have been developing the cloud-based Straumann Access platform so far, to make treatment, especially digital treatment, simple. We have co-created this with customers.
We even apply AI in that context. We have hundreds of hours of customer interviews that we analyze for what are the problems that people actually have. If you talk to them, they will often say, take the hassle out of it. I don't want to fiddle and fidget with stuff during the treatment. It needs to step out and solve all the complexity that I, as a dental professional, don't really care about dealing with. When you want to turn dental treatment digital, first of all, remember the workflow that, the patient journey that Guillaume showed you.
From the acquisition of the data that tells you the situation of the patient through diagnosis and engagement, getting their decision to actually go for the treatment through developing a plan, how you are going to deliver the outcome to actually performing the surgery, and then in the end, looking at a larger scale at what you did. This question of how do you even measure whether clinical outcome is good or up to standard, this entire journey needs digitization. There is a lot of data that is generated in that context, and it's growing like in every other area of life, but that data somehow needs to come to the people who actually deal with it. Connectivity, storage, data handling is a topic. Security and compliance to regulation is a very strong concern.
We talk to the information security offices of organizations that get questions from regulators. Hey, you, you actually deploy a lot of scanners. How do you make sure that the data that is stored on these devices stays safe, that it doesn't leak to the outside, that it's getting deleted when it's not needed anymore? We invested a lot of effort into building traits into the platform to make that management very easy for the adopters of the technology. We see an extremely strong impact of AI into the automation of the treatment steps. I will have some examples in that context. Data in its raw form often is not even usable. You need to make sense of the data in that context. We see AI. We have also invested very early into the development.
For us, a lot of the basic problems that you have in the digital treatment are solved in the meantime. Finally, simplicity as a design criterion has to do also with the user interfaces that you deal with as a customer. How can you come to this mobile-like experience that we see today where in the end, treatment delivery, treatment planning, collaboration with others becomes a one-click affair? I think one of the things that is very dear to our hearts is openness in the platform. You see a lot of closed ecosystems out there. If you keep an ecosystem closed, you do not actually manage to collaborate with others to bring partners to invite them, to allow customers to do whatever they choose to do in their practice to automate and digitize this entire treatment workflow.
We see a strong pickup also of customers using the open interfaces of the platform to integrate better into what they have chosen to adopt in the past already, which is a strong driver for customers to decide for a certain ecosystem to join and to stay with that ecosystem in the end. Going forward or going through the entire steps of the journey, every treatment essentially starts with data capture. You need to know and the systems that you are later on going to use and the collaborators that you are working with need the data for input. We have two major modalities that we use in dentistry. One is X-ray-based, the CBCT. The traditional thing that revolves around your head, you probably have experienced yourself in a practice. This is very much standardized.
The data exchange formats are known, and it's relatively easy to integrate them. What we find extremely interesting for treatment going forward, because in order to restore the, the dental situation, you need to understand the geometry and you need to get the data into the system. There was a lot of hassle that is an adoption burden, to actually using intraoral scanners in the past. You needed to be actually very handy to do the scan right. Then you had the data sitting in the device and you were fiddling around with USB keys, for example, to change to others. What we have invested in the past is to reach a state where the handling of the devices has become so easy that our customers even describe them as life-changing experience in the meantime.
They say picking up the device, just going for the scan without an elaborate scan strategy is so easy to generate the data. The systems being automatically connected to the cloud infrastructure makes it so easy to bring the data into the environment that we think this will drive adoption of the digital equipment going forward and consequently also the foundation for the digital workflows happening later on. We actually see customers who incentivize even their hygienists to scan every patient when they come into the practice because they see that as a library of what the teeth look like and see that as a basis for all the treatments they can provide to the customers later on. Like I said in the beginning, data in its raw form often is more a burden than something useful.
The next step is you need to understand what is actually in the data. If you have an image, this is just pixels first of all, but what is tooth, what is bone, what is gingiva, that's a question that you need to solve and clear before you can go on in the treatment. Combining the data that you get from the CBCTs and the surface scan that you get from inside the mouth is one of the first tasks that the clinicians need to go through or technicians need to go through in order to prepare for further treatment. We apply AI to do the segmentation, to do the alignment, to do the fusion between the data.
We have processed millions of cases in the meantime, and we reach a level where in the high 90% digits, the automatic alignment and segmentation of data is accepted without human interaction. That's why we say actually this data preparation is done, and forms a basis, a digital twin of the patient in the system that you can then use along the rest of the treatment. Now, when you have digitized your patient, the next step in the treatment is to engage with them. You know what you roughly want to do. You need to replace a tooth, for example. You want an orthodontic treatment, but it's still the decision of the patient to go with the treatment that you propose to them. For that, we work with SmileCloud, for example, integrated into the platform.
Data automatically flows into the environment, and you can show as a clinician to the patient what the outcome will look like, what you propose to them. If you imagine that as a patient, saying yes to something that you do not know what it would look like is significantly harder than when somebody shows you in your own face. In the meantime, we can even do that in video. You could imagine yourself, what you look like after a treatment, with the system showing you the difference from before treatment and after treatment. As a patient, I would absolutely prefer to see that. As a clinician, I have just created a problem for myself because how do I make sure that I actually will also arrive at what I promised to the patient?
I gave them a promise, and this is what you see on the right side. If you have the digital twin of the patient showing them something and visualizing something that is linked to the data set in the back that gives you the entire insight into the 3D situation, you can see the limits where you can move it to, for example, within the jaw. You can show how the geometry will look like. You can look at the details of wall thicknesses of material that you are bringing in and see the limits of what you can achieve.
With that integration and only through the integration of the data, you can make sure that you will be able to deliver on the promise that you are giving the patient when you show them, this is what you could look like after the treatment. Again, something that would not be possible if we had not taken the hassle out of getting the data into the systems, understanding the data and providing it in a way that it can be used for the further treatment steps. Logically, the next thing you need to do is you need to come to the plan, to the actual treatment plan. There are some treatments that are rather simple, but the more complex the treatment goes.
If you replace a full arch of teeth, for example, you need to understand very well how you will do the surgery in the end in order to come out with the right outcome. We build on 25 years of history on dental implant planning or surgical planning, with customers planning hundreds of thousands of cases every year in co-diagnostics, our system for surgical planning. You see the digital twin of the patient being integrated into the system and functionality that is used thousands of times every week. In the meantime, the system understands the data that is in, and it has become hassle-free to project what the actual procedure will look like.
Customers can virtually extract the teeth, see what the socket will look like, and already have an understanding for how the implant will sit in that socket during the procedure, taking away the surprises that they might encounter in that context. Early studies have shown us more than 60% of time savings in preparing the data through AI to that case. Like I said in the beginning, also in this case, understanding the dental structures is accepted by the human users in a high 90% of cases, as well as the integration into the platform now allows customers to collaborate with AI agents and human experts who are planning. We have data in a digital environment in which the AI can act on that data to understand it and help humans plan how they will execute the procedures that deliver on the patient outcome.
This gains efficiency, this gains confidence, and ensures better clinical outcomes actually if you are going into a surgery with a clear plan instead of not having that clear plan, obviously. Now, taking the connectivity of the systems into account and trying to make sure that you deliver excellent clinical outcome, requires the data to also be usable at the situation where you are in the actual surgery. We ask ourselves, how can you augment clinicians and probably also the clinicians who aren't as experienced as expert implantologists to perform excellent implant surgery? The industry's answer to that is, guidance through the procedure. Much like a GPS system in the car, you want to know where you are during the surgery.
Ideally, the system tells you what to do next in order to place the implant exactly like you have planned it, again, to deliver on that patient experience. What the platform allows us in this situation is we can generate static guides, so drill guides that you put on the remaining teeth or that you affix to the jaw in order to guide you during the implant surgery. We see the adoption rising of systems that provide dynamic navigation, so that use computer vision to understand where the tools and instruments are in comparison to the dental situation that was planned beforehand and follow exactly the implantation plan to perform the surgery according to the outcome you want to generate. What we need in that situation, obviously, is again, having digital data in that environment.
If you think about it in the past, again, you have been dealing with a USB key that you needed to bring to that system. How did you get to a fitting 3D print of that guide you needed in the mouth of the patient? In the end, the platform now provides you the flexibility to deliver the plan automatically through the connected device. Planners who have been maybe supporting you from a lab or even Straumann employees who have been supporting you can provide the plan. You select it on the device and you start the procedure. That is what digital transformation changes in the workflow when you come to the treatment step. Finally, I mentioned it, the question or how do you answer the question, whether you actually perform according to standard? This is also an interesting question for us.
How do the devices that we provide to our customers that they use to treat patients, how do they perform? Is there implant loss or in which situations do you have implant loss? For that, as the last step, as an example, we created what we call the implant registry, which allows customers to very easily, with a very simple scan of the packaging of the device. It is not only our products, it is thousands of products on the market to enter it into a system. We built the largest registry of its kind. In the meantime, more than 90,000 patients and their outcome and their long-term outcome also are registered in the platform. With that, what you can do is go quantitative.
Analyze the clinical outcome of what you are performing, analyze how you are performing according or against the expectation for the type of treatment that you are delivering. All this in a very simple way, get the traceability of what you did, get insights into the process quality of what you are delivering. We can even start to normalize against the patient cohort that you are treating. Guillaume has been speaking about an aging population. There is a difference if you treat the 30-year-old who had a mountain biking accident and broke their tooth versus the 90-year-old with a lot of comorbidities, for example.
We see customers in the meantime applying the process, looking at their clinician performance, looking at are there systemic signals of where they need, for example, additional training in order to improve the clinical outcome that their entire population of clinicians can reach. I mean, with that, we also believe to provide better care and provide the insight to again improve on the process quality that our customers are providing to patients. I mean, in the end, would not you also want to go to a dentist where you know somebody has been systematically looking into how are they clinically performing? You get an almost assured, almost guaranteed good outcome in the end. These are examples I wanted to show you.
We see, we will see a lot more examples in the following hours, with products being connected to the infrastructure and how they make sense in the individual treatment steps to again drive simplicity, which drives time for our customers to treat more patients and thereby, consuming the products we are providing and that customers have come to love so much. My takeaways are a little bit, summarizing what Guillaume also introduced. The equipment and products we are providing to customers are going to drive the or bring the major revenue streams. We provide subscription software and services on behalf of our customers that generate an additional, recurring revenue stream. We drive efficiency gains through simplification, through automation of steps, in the treatment journey that patients go through in their practices. This can generate up to 50% of free chair time.
We have seen customers driving down from 20 patient visits during a very complex treatment down to almost half of it only. This translates again into higher equipment and product consumption. The integration of a digital portfolio with the leading product portfolio that we bring to the market in implantology, we believe, is a strong argument for adoption. Customers are rarely deciding on just a software system, but usually they want the digital experience to surround the product that they are using to treat patients. It attracts new customers to the platform since the ease of use of the workflows actually is an argument to buy into it and start from the treatment journey that they have established already and go into additional fields. What we absolutely see is a very strong adoption of AI use cases.
Where we saw two years ago, maybe two-thirds of treatments were not AI powered. In the meantime, more than two-thirds of treatments are AI powered in the hundreds of thousands of cases we see every year. With that, I want to close and hand over to Andreas, who will talk about the physical products who are embedded in this digital journey.
Thanks a lot, Thomas. Your applause. Thanks a lot, Thomas. Always a pleasure to listen to you and to what you envision and brought to life. Welcome also from my side here to everybody in Basel and to the people out there in the screens. My name is Andreas Utz. I'm leading the implant business unit in Guillaume's executive management team, and it's my pleasure to lead you through the chapter of expanding our implant market leadership.
I think I can start saying that we feel very confident about this chapter and about the dynamic growth we are going to generate over the next five years to come. If we speak about implant dentistry, I really would like to start with you in the very beginning. This is what Guillaume already teased a little bit, it's about the penetration and the potential that this market is still owning to everybody, not only to the Straumann Group, but to everybody in this industry. We know from data that we have 220 million patients actually every year. This is incidence, not prevalence. This is incidence. 220 million patients every year that are potential implant patients. Only 16 million out of those patients today receive an implant actually. That's round about 7-8% of the potential patients.
The penetration is still very, very low. It's very different in different geographies. We see in Europe, as an example, penetration is around 15%. North America, probably 10-12%. In some developing geographies, it's probably lower. We see that this penetration, it's not a static number at all. It's developing. The penetration is growing every year. It's growing this year as well. There are reasons for this penetration to grow. First of all, and it's been there already, is patient awareness. Patient awareness is really increasing. With this, the awareness of implant treatments and patients are seeking for implant treatments. As well, patients are looking for aesthetic treatments and for fast treatments.
Implant dentistry became much better in also having an answer for those desires of having fast and flawless and quick treatments for the patient's problem, also gearing patients more to implant treatments. The provider base, we see that the provider base is still somewhat a limitation and we see the provider base growing. If there are more providers offering dental implants, we also know that there will be more implants will be placed. We also know that one of the customer groups, and I think this is very important, this is the DSOs, the big clinic network, Guillaume alluded on it already. They are focusing on big ticket and very profitable treatment. Implant dentistry is very clearly one of the most profitable treatments in dentistry. These DSOs are focusing on implant dentistry.
With this also, they are driving the penetration actively in many geographies that they are very active and are helping us to penetrate this market even stronger. I would also mention the financial means that are driving it. We see a rising middle class in developing countries, but we also see the increase of financial means, availability of financial means in many developing countries. This is a very healthy state to be in. The penetration is still low. Penetration is growing. We also know how to influence the penetration. It is a very strong market to be in. We do not see an end of the growth of this market for the next years or decades to come. Now let's look a little bit into our position and how we developed over the last recent years in implant dentistry in a bit more detail.
What you can see on the left-hand side is that we actually outgrew the competition by the factor two over the last four years. We gained significant market share. You see that our market share was growing from 29% in 2021 to 35% in 2024. The development is still continuing. We saw a very strong trajectory of all our implant brands. We were outgrowing the market big time by the premium brand, but also our value brands were growing above average in the market. Still there is a lot of room for us to grow. There's a massive opportunity still for us to continue to gain share in this market, as you can see. On the right-hand side, what you see is that this is the subsegments, I would say, of implant dentistry in the premium segment.
Today we own round about 53-55% market share. When 2021, this was round about, I'd say, 47%. In the value business, we made strong progress, especially based on geographic expansion and the strong portfolio of brands we are having. Today we look at 18-20% that we are owning of this market, where this was in 2021, it was only 13%. A very strong trend line that we see in this and continuing to grow. Now looking ahead, we also know what it takes to continue growing and we know the playbook, what it needs to continue to grow. I would like to structure my presentation the next 25 minutes in four chapters that are, let's say, talking to this playbook. First of all, growing market share and growing above, competition and the market growth.
We know that innovation is really the name of the game. Innovation is two things. It is product innovation, and I come to this, and it is digitization, and it is also about how to connect both, because this is, I think, this is where the magic and the acceleration happens if we connect both of this. We know education is a very, very strong lever to success. This is why we are investing very intentionally in education. I will also tell you why we do this and how we do this in this chapter. Geographic expansion has been a key driver of our growth and our success for all of our brands. Most importantly, I would say for our value brands, where we saw very strong geographic expansion over the last five and 10 years, I would say.
Let's start with the topic of product innovation. I think we can say with confidence that we developed ourselves to be the innovation leader in this industry. Very clearly, we brought a very strong track record of innovations to the market over the last 20 years, over the last 10 years, but also over the last five years. We are not innovating for the sake of innovation and for the sake of bringing new products to the market. We are innovating for impact. By impact, I mean delivering better clinical outcomes, pushing clinical boundaries, and by that innovating to expand the market, but also innovating to increase, let's say, user friendliness as an example and create efficiency for the clinicians. We know SLActive has been probably one of our star innovations that is still unparalleled today.
It has changed actually the way we look at the implant dentistry today and what is possible today. I come to this, but also BLT, when we launched a bone level tapered implant and we launched a BLX implant, they've been super important innovations for us and have been super important for us growing our customer base and with this also growing our market share. I think as a result, what you can see is that today for the Straumann premium brand that we speak about now, 64% of the revenue we are doing today with the Straumann premium brand, we do with products that did not exist 10 years ago. This is why you can, where you can see how important innovation is to drive a healthy growth and a sustainable growth and differentiation, I would say, for the Straumann premium brand.
You see on the right-hand side, we have a lot of ideas how to carry this innovation and differentiation forward and how to fuel the health of the Straumann premium brand. If you look a little bit in the growth potential of our Straumann premium brand, one lens that we can truly look into is actually the lens of the different implant types, so product segments. What do I mean by this? There are actually three different, and you are certainly aware, three different implant types available in the market. If we look on the parallel wall implants, this is really the market we are owning. This is our heritage as a Straumann premium brand, and we have a very strong position there, and there is no one that challenges us in this position. The epic tapered segment is actually the biggest segment.
With the introduction of the bone level tapered implant, around 2014, 2015, we were starting capturing market share. You can see that we have built a very significant market share in that segment. The fully tapered segment, I would say this is the fastest growing segment here on the chart. This is where with the BLX, the BLX has been such a key to unlock the potential for us in this segment. We built this, I would say, a solid presence there, but we still see a lot of room to grow. If we combine those two segments, the fully tapered and the epic tapered segment, we would have round about 40% of market share in the premium segment.
We feel very confident to grow this significantly, this market share with the BLX, with the IXL system that I speak later to. This will be key to unlock this. Imagine we add another 10% of market share, which is absolutely realistic. This would add another $200 million of revenue to us every year. What has been driving really the key driver of, let's say, premium differentiation, fueling our customer base with this, the growth and also the market share gains has been, I would say, three premium technologies that are still driving the growth of the Straumann premium brand today. All of those innovations, I think it's very important to mention, all of those innovations, they are proprietary, they are unique, and they are all backed by a significant body of scientific evidence.
There's, from our perspective, there's no point in launching new surfaces, materials, and implant designs when you cannot prove the performance of those technologies. We really want to prove the performance of those technologies. We did so, especially with Roxolid and SLActive, but also with IXL. Roxolid is a high-strength implant material. If you have a high-strength implant material, you can design smaller diameter implants, shorter implants that have a much better performance or the same performance than bigger implants of another system. If you have smaller and shorter implants with such a performance, you can use those for patients that have a, let's say, a certain indication, and you can spare this patient, as an example, an augmentation procedure. Now, an augmentation procedure for our patient, it's painful, it's complex, it's costly, and it takes a lot of time.
It is nothing that a patient is really looking forward to have. If we can reduce the invasiveness, we are not only, let's say, having a strong value proposition to our clinicians and they have to their patients, but we are also expanding actually the market because we can treat now patients that actually are not shying away from an implant, but they shy away from an augmentation procedure. This is really where Roxolid is pushing clinical boundaries. SLActive, our unique hydrophilic surface, is a technology that is still unparalleled in this market and is also pushing clinical boundaries. How SLActive is delivering faster healing. The implant is osseointegrating faster, which is critical in immediacy cases that today are the trend. Patients want fast time to teeth.
If you want to have fast time to teeth, you want to have an implant that is healing fast. Additionally, SLActive is pushing boundaries also in very demanding cases. Imagine diabetes patients, imagine smoker patients, all of those patients or cancer patients, all of those patients 15 years ago, they have been contraindications or relative contraindications to implant dentistry. Today, people using SLActive can treat those patients with confidence. This is how we push clinical boundaries. SLActive comes with a body of evidence supported by more than 1,000 publications. There is IXL. What IXL does is really IXL is delivering to all of the clinicians and lab technicians out there, the largest variety of implant types that we have ever seen in one system.
What I mean by this, it offers you an epically tapered implant, the BLT, a fully tapered implant, the BLX, and you get both on bone level and you get it on tissue level, which is the TL and TLX. This is offering you great flexibility and treatment flexibility. Usually, if you as a clinician would like to have this treatment flexibility with those types of implants, you would usually need three to four systems in your practice, three to four systems with different connections, with different surgical kits, adding a lot of complexity to you, to your team, to your lab technician, a lot of stock keeping that you need to do for auxiliaries and prosthetic components and what more. With IXL, we do all of this with one surgical kit that you only need, and we do it with one restorative connection.
With this, we reduce tremendously the amount of auxiliaries you need, the amount of prosthetics you need, and the surgical kit, reducing also the complexity a lot for the surgical teams and for the practice teams out there. There is more. IXL is also, it's the first implant that has been designed really specifically for the use and the application of the Roxolid material. Before, we applied Roxolid actually to existing diameters. With IXL, we really pushed the boundaries. We now, as an example, have a 3.75 mm implant for all the indications that you can reduce invasiveness. We have a very strong, let's say, 4 mm short implant, as an example, that you can use in very atrophized situations in the lower jaw, which is very unique and is offering an extremely valuable solution for those types of cases, again, pushing clinical boundaries.
The feedback on IXL and on the concept and the combination of Roxolid and SLActive has been outstanding. We see an extremely strong growth of IXL in our customer base, but also outside our customer base. Only this year, we have already sold more than 1 million IXL implants. The customer feedback has been amazing. I think what we are very proud of and it's very important also to drive our growth and market share gains. 20% of IXL users that we see today are actually users that we have converted from competition to the Straumann premium brand. Enough of me. Let's listen to one of our customers or two of our customers that Grant, our Executive Vice President for North America, has interviewed on the success of the IXL system.
What were some of the biggest challenges you faced before using the IXL platform?
Maybe you'd be willing to share a little bit with us. Before, you know, the IXL, the biggest limitation was the complexity and inconsistency, you know, across the different systems, you know, different connections, different components. There were too, too many parts and pieces, and this sometimes increases the risk of confusion, you know, especially, you know, when it comes to the matching of the correct components, you know, about scanning, final impressions, and, depending on the implant type that was being used. The last thing in full arch cases that is also resolved is basically that, with a CrossFit connection in the multi-unit abutments, we have type A, type B. It was kind of confusing. Now we do not have this problem anymore. I think these were the challenges that we were facing before IXL.
I guess what made the IXL system stand out as compared to some of the other solutions that you kind of used in the past before? I love the workflows because now I can, from the patient perspective, I can communicate much better. I can use all the softwares to show the smile design before I even perform it, plan it with core diagnostics, place my implants with the guided surgery through the smile box portal. Most importantly, the workflows, whether I do a single, even if I do immediacy, I can put my customized healing abutment, which is the ultimate game changer in the business, according to my opinion, which the patient can heal well. I can also take the implant impression and scan the patient. Game changer.
I can go from multiple, multiple visits and the lengthy visits of trying to approximate the flaps and do all these complex immediate implant placements, simplified two-visit protocol. It all comes down to patient satisfaction with the two. Even if you do three visits, then most importantly, profitability, because yes, the Straumann system is the most expensive system, but you save money in the end because the workflow is such, but you reduce the number of visits and hence you increase your profitability. The upfront investment of placing, yes, the implant that costs more than what the competitors charge is not an, is such an investment because you will save money by using the whole workflow, reduce the number of visits, and increase the patient satisfaction and increase your profitability. Game changer. Exactly.
Also, do not forget the more options that we have, like wider diameter implants, new tissue level designs. You know, we did not have any tissue level since the classic, you know, regular neck and wide neck implants. Anatomic healing abutments, you know, offer, you know, the flexibility, the two-visit protocol as well, especially for posterior restorations, new variable-based designs. We have more options now. We can design, you know, we can select the height, so we can customize it. Of course, more flexibility during the surgery, as well as the new i-Guide system, you know, with no handles. Basically, I would say in simple words, simplicity, versatility, and flexibility. These are all, you know, many advantages that we have now with IXL. I would love the efficiency because you reduce the treatment, the chairside time and the treatment time.
That's what brings profitability to all the dentists, whether you are a specialist or a GP, whether you are a business owner like me, or if you're an associate, you save time and time translates into money to the dental business. I really, really appreciate you sharing that perspective. I think that's definitely some compelling arguments that you've shared.
Thank you, Grant. Thank you, Dr. Panos and Konstantinos. It's impossible for me to spell the last names of both. As you can see, two very different profiles of customers and two very different feedbacks, but very strong feedbacks. Both of them, we have converted those customers in the course of the BLX launch that we did over the last years. You see that the IXL is a very strong platform. Remember, we have introduced this 2024.
We are expanding the launch as we speak, and it's a very strong platform for growth for us for the next three to four years to come. It's a full pipeline of innovation that strengthens and further differentiates the system over the next two to three years. We, of course, have also a very, very strong pipeline in place. I can say, for the mid and the long term, we are working as an example on new implant designs. We are working on future new surface technology, and we are working on a series of disrupting workflow innovations that will also help us differentiate. I think Panos has summarized this very well. It's not about the initial cost of an implant. It's about how the long-term performance of this implant is combined with the profitability it delivers you in your treatment.
I think that's a very strong statement. Let's continue along this line, this line workflows. You have heard this now a lot, and I would like to bring you a very tangible example and move into my second chapter, which is digitization. Let's embark on a mind experiment quickly. Imagine for a second you are a dentist and you own a dental practice, and you have this patient coming in your door that needs a replacement of a posterior single tooth, a posterior single tooth. For you and your practice, if you are like others, this would be bread and butter because we know two-thirds of the implant restorations are single tooth, and half of your patients, half of your implant patients would be posterior single tooth. Now, to the patient, this is not visible to friends and family.
Aesthetics is not so much a need, but it's efficiency, it's speed, and it's experience that is a need for you and for the patient. Now, the question is, you know, how can we help you to treat this bread and butter case that is 50% of your implant cases in the most efficient way? I would like to introduce you a little innovation that combined with the digital ecosystem made a huge difference. Actually, Panos mentioned it. I think he said game changer. This is actually the anatomic healing abutment. The anatomic healing abutment as such is actually a small little smart innovation that is combining what you can see here. It's actually combining a healing abutment, a conventional healing abutment, and a scan body, and it's combining both functionalities. The product as such is actually not doing a game changer.
It would just be another scan body. Now connecting this product to Straumann Access and to all of the workflows is really changing the game. What we want to do by this is really to deliver product innovation because we believe 50% of the success is product innovation in the future that we are committed to deliver. Fifty percent of the success will be also about driving the experience of the users. If we combine all of this, this is how your treatment of your patient could look like. So far, you treated these patients in a conventional way. You saw the patient coming in. The first surgery, you really extracted the tooth and you placed some biomaterial to preserve the socket. You let the site heal.
After a couple of weeks, you would reopen, you would do a second surgery, you would place the implant, and you would place a closure screw. In a third visit, you would remove the closure screw, you would place a healing abutment, and you would again send the patient back home. Third visit. In visit number four, the patient will come back. You have to remove the healing abutment. You have to place the scan body. You scan, you have to remove the scan body again, place the healing abutment back in, and you send the patient home. The scan you send probably via WhatsApp or via WeTransfer. You send to your lab that is then working on the restoration.
In visit number five, you would deliver the final crown, and the whole process could take up to 34 weeks for the patient to have the final tooth. If we apply Straumann Access and our little helper, the anatomic healing abutment, in the first visit, you would extract the tooth, and now you have an extraction socket. Because we have the BLX implant with Roxolid and the SLActive surface, you feel very confident to place this implant immediately in the extraction socket with all the potential this implant has. You surround it a bit by biomaterial. You place the anatomic healing abutment. You do the wound closure ring, and then you scan in the same visit, extract the tooth, place the implant, place the healing abutment. You will also, with the Sirius, scan over the situation.
What the Sirius will do automatically, because it's connected to Straumann Access, it will automatically upload the data file, the patient file into Straumann Access. This is where your lab technician will immediately take the file and continue working on the case and might, as an example, order a Straumann Unique restoration. The lab will finalize the Straumann Unique restoration in the lab, will provide it back to you into your practice that you are owning. In the second visit, only eight weeks after, you are able to put the final restoration back in again. This is, you know, how much of a disruption such a little innovation, smart innovation, combined with our digital ecosystem is.
What we did now to you and your practice, we saved ultimately, first and foremost, I think the patient, we saved him 26 weeks, and that's a lot of time. Imagine the patient comes in late October and wants to have, you know, the restoration done before Christmas. It makes all the difference. We saved you 50% of chair time that you can use treating other patients, you know, creating incremental revenue. We have trimmed down the number of appointments from five down to two appointments. This is a very powerful example of how much of a game changer workflow innovation can be. Now, this was a very straightforward case, bread and butter for you, 50% of your implant patients. The same applies also to more complex treatments.
There is a second, let's say, indication that is very critical to our business, which is full arch indication. 20% of the cases are full arch indications. The same logic actually applies for full arch indications where we have created these little helpers. It is scanning bars that is connecting the implants because the scanner cannot, if you have an edentulous jaw, you have six implants, the scanner cannot connect automatically these implants. We build a bridge. The scanner again scans over it, Sirius uploads the data automatically to Straumann Access. Your lab technician takes the case, orders a Straumann Unique directly on the Straumann Access platform, delivers the final restoration back to you. What we did to you and your practices, we reduced your total chair time by 50%.
We reduced the key appointments that are long appointments for you and for your patients, long and demanding. We reduced them by 60 minutes, and we have reduced the number of the processing steps from 19 to 10, which is really significant. You can see this is the sort of innovation that is really driving and accelerating the growth of the Straumann premium brand. We are big believers that this is a big source of differentiation going forward. We have many more ideas how to progress this kind of innovation. Also speaking about same-day provisionalization, as Guillaume mentioned, and other ideas that we have in this, in this space. Now let's move on to education. Education is a big part of our success model, as I said before. What it truly does, education for us, it generates growth in two dimensions.
Number one is generating growth by educating starters. Okay. With educating starters, we are fueling our customer base, but we are also expanding the market. We know from data that 60% of clinicians today, they are still using the system, the implant system that they have been initially trained on. So 60% are still using the system they have been trained on. It is a very powerful lever, education. Number two, education is very important to train users on our innovation. Driving penetration of our innovation into the market, education is key to this. This is also where we are converting, of course, a lot of competitive accounts and are creating also growth for our customer base. What you see here on the slide is really, truly unique to the industry. I think I can say this. We do education on different levels.
We do large events like our flagship event, the ITI World Symposium, or the Aesthetic Days, or the Neodent Symposiums we are doing. We are also doing small physical courses, classic courses. We do remote courses, hybrid courses. We have adapted education to the needs of modern dentistry and the users and the new generations and the new workforce that we see out there. What you see on the left-hand side is the very strong impact that Straumann and the ITI are creating together. Every year, we are training more than 300,000 clinicians globally, the ITI and Straumann together. We do this in 7,000 activities from big events to courses. I think one thing that I want to mention is the ITI still is very, very unique in this industry.
It's the largest network of clinical users in implant dentistry globally with 25,000 active members that are actively educated in the ITI every year. The flagship is actually the study clubs. We have 1,000 study clubs around the globe that is really bringing education to the doorsteps of all the clinicians. The same we also see for Neodent. Neodent is very strong in education, very active as well. 34,000 doctors trained every year in 1,500 courses. I think the true flagship of Neodent is the ILAPO. The ILAPO is an education site attached to an active clinic. We can have a very interactive training there that people can experience in Brazil. It's a true success model that we now bring international.
We speak about opening ILAPOs as an example in India and Malaysia and other countries to really fuel the growth of Neodent by education. Now let's shift gears a bit. Geographic expansion. When so far you learned also mainly about the playbook of the Straumann premium brand, how we drive the Straumann premium brand by innovation, combine it with digitization and education. Now, geographic expansion is really important for the value brands. The value brands have been a big part of our success of the company to drive our growth over the past five to ten years. Geographic expansion was truly one of the big levers for this success, and it will continue to be so. Let's start to look into our value brands. We are very happy and very proud to have a very strong portfolio of brands.
If it comes to the value brands with Neodent, we have one of the few truly global value players that has its heritage actually in Brazil. This is where we also own the strongest market share. Since Neodent joined the Straumann Group, we were driving internationalization strongly. Today, Neodent is truly an international success story. Anthogyr and Medentika are really known for excellence, and they are very strong regional brands. I come to Anthogyr and Medentika, to them in a second. What you see on the right-hand side is actually our status in the value segment broken down to regions.
What you can see is that we have a tremendous potential to grow with these value brands, especially in EMEA, but still also in North America and Asia-Pacific, where I think we have a very solid and strong and dominating position already in Latin America, but very, very strong growth potential, especially in EMEA and Asia-Pacific. Now, what has been the success of Neodent in the past? You saw already one secret to success. This was education. Education has always been at the heart of Neodent, but there is one more lever. Also, Neodent is very strong in innovation. I would say Neodent is excellent and very strong also in responsiveness to customer needs. They have proven to be very quick in turning around needs of customers into products.
This is why Neodent has built a very strong position in the GP segment based on its simplicity. It has built a very strong reputation in the specialist segment, delivering specialty implants like zygomatic implants for very atrophied and very challenging cases. It has also built a very strong position and profile for DSOs, being a very comprehensive portfolio, very easy to use, and a great product to help DSOs scaling successfully an implant business. This is really what Neodent has built, a very strong position based on responsiveness and innovation, I'd say. Back to geographic expansion. Geographic expansion, I brought you this picture, and what you see on the picture is that all the markets where we have around 20% or more market share is gray, and the purple markets are either we are not present yet or we have a market share below 20%.
You see we can still continue growing in North America and most of the gray markets, but there is a lot of growth potential in existing markets already that we are existing, but we still have a low percentage of market share. This is all about commercial execution and education. There is also the potential of opening new markets. This is often a regulatory hurdle. We need to register the system and get regulatory approval, like we just did for Czech Republic as an example, for Kazakhstan and Georgia. The main thing is we are very much looking forward to have Neodent and the approval in China in 2027.
We are strongly convinced that Neodent is in an excellent position to gain very strong traction in China, which is, as you know, one of the largest implant markets in the world. A lot of growth potential for Neodent. To close, I would quickly come also to Medentika and Anthogyr. Those two brands have really turned into significant-sized implant brands, both Medentika and Anthogyr. I would like to start actually with Anthogyr. Anthogyr is a brand that has its heritage in France and is having in its home market a leading position today and is very strong, has a strong presence in Western Europe, Eastern Europe, but also in Turkey. Anthogyr has built a very strong presence in China and is very well positioned to continue growing China as a part of the VBP that we see in China.
Medentika is actually very similar. It's a prosthetic brand and an implant brand. It has a leading position in its home market, which is Germany, a very strong position there. Also has an excellent presence in Western Europe and Eastern Europe and Turkey, actually, but also in these areas there for both of the brands. For Anthogyr and Medentika in the European context, there is a lot of room to grow in terms of geographic expansion for both of the markets. One of the strongest potential for Medentika clearly is North America, and we are just about to prepare market introduction of Medentika MPS in North America, which we are looking into 2026, which will be a big growth driver for Medentika. A true highlight to close with is, the Medentika Eco Implant line that we have developed together with a local partner in China.
This brand, we were, we are just about launching this brand, and this brand is geared towards helping the Straumann Group capturing market share in the Chinese market, specifically in the lower value and in the eco segment, where we see a lot of potential based on the VBP to gain strong traction with a brand, an implant brand with German roots, Medentika, German engineering, but locally designed and manufactured with a strong local partner that will be a very important puzzle piece to our success in China. With this, I come to my conclusions. First of all, I hope you have seen this. We have a massive opportunity in both premium and the value segment, and I think we still have to keep in mind that this market for implant industry will continue to grow dynamically for many, many years to come.
Innovation leadership is really driving our market share gains, has helped us gain market share, does today, and will also help us in the future. Digitization will drive practice value creation and differentiation. I truly believe the connection to the digital ecosystem and the innovation we are doing on the product side is an accelerator to the growth of our implant system. I truly believe in this. The multi-brand strategy is key for us. It is really supporting the long-term growth, the growth acceleration as well, and to also expand our leadership position in the total implant market. With this, I thank you for your attention, and I turn it back to Marcel. Thank you.
Thank you very much for your presentation, Guillaume, Thomas, and Andreas. I have the pleasure to invite you now to a coffee break.
Also for you, 160 people being online, I mean, grab a coffee. We will have a timer, 10 minutes, 10 minutes before we will come back. You will hear a sound outside 10 minutes before we should come back, and five minutes again. Let's try to be on time that we can also listen to Florian afterwards on Ortho, which I look very much forward to. Enjoy your break. There are people outside who will show you products and solutions from our great company. See you later, guys.
Starting in five minutes. Starting in three minutes. Take your seats, please. Starting in one minute. Take your seats, please. I was born with a cleft palate, and that meant a lifelong struggle with dental issues. I didn't develop adult teeth to replace a lot of my baby teeth.
I'm missing a lot of teeth, and it's all because of my genetic syndrome called Ectrodactyly-Ectodermal Dysplasia-Cleft (EEC) Syndrome. My family and I have always known that my entire life was going to be full of maxillofacial surgeries and dentist appointments. I have lost count of how many surgeries I've had, but I'm pretty sure it's well over 30, probably closer to 40. It's a barrier when it comes to trying to move up in my career. I just know that I have so much to offer to this world, and I haven't really felt like the right people have given me the chance. I'm pretty sure it's because of the way I look. Her teeth were not just decayed, but also developed abnormally, and they were different sizes. They were in different locations, upper and lower.
Her bite was not in any normal or any kind of functional bite. This does not come around every day or every time. I have done tons of smiles. I've been in this profession for 30 years, and I've seen it all. This case certainly is a very unique case. Dentures would be really difficult for someone like Jackie to wear, just because dentures, by definition, are sort of made in a way that they work on a normal jaw. Jackie was not born with a normal jaw. The costs of all these surgeries and corrective work have been an extreme burden on my family and me. She knew that she needed implants. She just did not know how to get them. I just knew we had to do something. She deserved at least the chance to live a normal life. Dr.
Dimitz called me, and he said, "You've been selected for the Let Them Shine program." My whole life flashed before my eyes. I felt the greatest joy I've ever felt. Finally, I'm going to live a normal life. This is the minimum a human being can deserve or wish. In combination between the Let Them Shine program and our Saving Face Foundation, we were able to provide this care at the highest level that dental implants can provide. When I got home after getting my first set of temporary teeth, I would catch myself looking at the mirror more often. I would be like, "Wait, who's that? That's me." Like, my feelings are like, I want to do everything. I think the main thing is I'm looking forward to growing my career.
Now that I have these brand new pearly whites, I feel like I can take on the world. I was in a call with a friend after not talking to her for several months, and she said, "Wow, I can understand you. You're coming in so clear." I was just so blown away by the fact that she had actually noticed without even seeing the teeth. Just knowing that it has made a difference in that way has really boosted my confidence. To the people at the Let Them Shine program, you've changed many lives, including mine. The work that you do is invaluable.
Welcome back, everybody here in the room and also online. Online, you guys missed some nice presentation of our products outside, but it is what it is. Thanks for being back on time.
I will not steal any of your time, as you told me. I'll introduce our Head for Orthodontics. Here we go, Florian. Rock it.
Perfect. Welcome as well from my side. I hope you're all very well caffeinated and ready for what Guillaume explained before, a bit the right side. My name is Florian. I'm responsible for the ClearCorrect business that we're going to speak first today about, but as well for the digital enabler business and as well for the CADCAM prosthetic business. We're very much looking forward to guide you a little bit through the tremendous opportunity that we see on these segments to gain significant market share going forward. You know the ortho business, and you have all heard in the Q3 results that we embarked on a transformation journey on the ortho side. Let me jump first into the market.
Guys, this is an incredible market to be in. An incredible market. I mean, you see CHF 4.7-4.8 billion market. It's a market that is almost already at the size, if you remember well, the CHF 6 billion implant market. It's a market where we strongly believe, and all market indicators as well show this, this market is going to grow low double-digit over the course of the next years until 2030 from a CAGR point of view. You know when you look at this market growth and this market potential that Guillaume already mentioned in his presentation, it became really obvious for us. We did a lot of market research in the last one and a half years. The main drivers for this growth, it's going to be GPs and autos. GPs and autos.
That is why we, as an organization, decided that this is, for us, the sweet spot of the customer segment, because it is the biggest intersection set that we have with our customers. We know the GPs. We know the DSOs. This is, from our customer acquisition cost point of view, for us, the absolute sweet spot because we have an existing relationship with these guys out there. You see our aspiration. You know we strongly believe that with everything that we are going to show you today over the course of the next 20 minutes or 90 minutes that I still have to explain to you this very exciting opportunity, we really are convinced that we are going to grow significantly faster than this market, that we are going to gain significant market share in the aligner business.
Very importantly, we will have the capability and the ability to translate this significant growth on the top line into respective P&L profitability. Very, very exciting. When we talk about transformation, always one thing comes to mind. What is going to change? How, as an organization, Straumann, are we going to multiply the growth we already have in this business? What are really the core things that matter? For us, this change will come in three dimensions. It is a lot about progress. It is about scale. It is about speed. It is about focus. The first part is the change in value proposition, and the change or the upgraded value proposition. You will learn a lot more about this over the course of my presentation later on. The second dimension is going to be the manufacturing side.
You heard a lot in the Q3 results already about our partnership with Smartee, and we're going to get into this. The scale in production is absolutely critical to drive down cost on the aligner side. This will be a fundamental pillar of this transformation. Thirdly, this is what we call the high-performance go-to-market engine. This is really split into two things. It is around focus, and it is around speed. First, focus from a geographical point of view. We have done our homework, and we've really looked at all the markets in the world. What we see is that there is a certain set of markets out there that really, truly matter in the aligner business. We're looking at these markets from a top-line potential point of view, but as well from a bottom-line point of view.
We have decided to truly focus and double down on these markets and not exit from markets where actually we did not have the critical mass, or we believe it's not the right place for us to be, to truly create value and impact in these strategic markets. Secondly, it's about organization. We really want to be a lot faster, a lot more agile to really capture the value of the market potential out there. This is something where we really looked at our organization. We streamlined our organization. We harmonized our organization to truly be able to move in an agile and very fast way as well, when we look at our competitors, there are a lot of pure players to match the speed or even be faster on this side. You heard a lot about Smartee.
There have been actually a lot of questions coming after the Q3 results about Smartee. Let me introduce this company to you again. It is a company from China. It is one of the leading aligner companies. It is the last company at this scale that is still founder led. It is a company that has been around for a very, very long time. For more than 20 years, this company has learned their audience from the bottom up. They have done all the mistakes that you do in the aligner business. They have now developed into a company, a very serious player that is driving innovation to the market. We have seen this over the last three to four years. They have brought significant market innovation, like their GS line, for instance.
They are really a company that has the scale already that is really exciting for us. When you look about Smartee, and we've received a lot of questions from you guys, what does this partnership really mean? It's a strategic partnership or whatever. Let me put this into the right context. When we look at Smartee and the partnership that we have with them, it's a technology partnership. A technology partnership in mainly two dimensions. On the very one-hand side, you have the technology partnership on the manufacturing side. This is really, really important because we want to reduce our costs. We have decided that we are going to outsource our EMEA production, our Asia-Pacific production to Smartee, and they are as well supporting us in upgrading the rest of our production sites.
Secondly, and it's the second big pillar of this partnership, technology on the workflow side and on the clinical indication side. This is really important. There were quite some questions after the Q3 results that came from you guys that, what does this mean, technology? Are you going to distribute the Smartee now around the world? I said, no. The technology partnership means that we are taking very specific elements of Smartee, and we are natively integrating this into ClearCorrect. So ClearCorrect is keeping all the differentiators that it has today, the go-to-market, the customer relationship, the planning, the service function, everything. There are certain bits and pieces, and I'm going to lead you through this where this really plays a significant role for us on the aligner side, that we are going to integrate into ClearCorrect.
We're not going to distribute Smartee going forward. That's a very powerful partnership. Let's jump right in. We call it the Straumann Auto Digital Ecosystem. When you look at this, one thing comes to mind, I believe, immediately. Wow, it's exactly the same step. It's exactly the same workflow that you saw on the implant side, that is, on the prosthetic side that you saw in Thomas's presentation, because that's what it really is. That's what digital dentistry is. You're starting from the capture. You have a diagnose phase, and you're always ending on the monitoring side. This shows the incredible potential we have from a synergy point of view between our access and everything we are investing and our aligner business. You see here down there, that's the ClearCorrect Doctor Portal.
It's the front end where you're landing when you want to do aligners with us. In the back end, it's deeply connected as well with our Access platform to create a customer experience that is really unique. We're really combining these worlds between Access and Doctor Portal. At every step of this journey on the workflow, you start with capture. I want to really emphasize that ClearCorrect and Straumann Group in general, we're an open platform. We really truly believe in the openness of digital dentistry. From a ClearCorrect point of view, we're connecting to all of the scanners out there. We have integrations with Medit and 3Shape and Shining 3D and all of them to really truly give access to as many doctors as possible.
On the very left-hand side, and this is what Guillaume mentioned before, you see our Sirius family. This is the Sirius family, and I will speak a little bit about this later on, has evolved through our acquisition of AlliedStar back in 2023. With the Sirius X3 that you as well see out there, and hopefully some of you could get a little bit the feeling for it, it's the first exclusive Straumann scanner. What changes here, or what is important for us, particularly in combination with the aligners, is that we have end-to-end control. We can actually have our own iOS scanners deeply integrate via Access into our aligner world. This is a huge differentiator because when we talk about GPs and we talk about DSOs, they want options. They want to have different ways of doing different treatments.
When they start with the capture phase and with the IO, they as well would like to do, yes, they want to do an amazing aligner treatment, but as well they want to do implant treatment. They want to do prosthetic treatment. These options that we can give to GPs and to DSOs out there, it's fantastic. It's maybe not as relevant on the specialist side, but in the GP world, this full end-to-end experience in an open way plays a significant role. Now we go in a little bit as well, how do we progress on the value proposition side and how do our partners that we have announced come into this game? We go to diagnose. On the diagnose part, imagine now you are a patient and you walk into a practice. We have developed something that we call the case complexity evaluation.
We have done that in collaboration with our partner, DentalMonitoring. What does it do? It actually uses the images of the patient, and it gives you already an indication for a traffic light system. Is this an easy case? Is this a case that I can treat immediately as a GP? Is this maybe a case that is a little bit more complex where you want automatically to have a discussion with a clinical advisor or a case success partner? Is it a very complex case where as a GP, you might end up in a situation that is not favorable, where maybe this is beyond the skills you have today, that you rather would like to refer to an absolute specialist?
This drives confidence on the side because you know what you're doing and you know that you have the highest likelihood of success when you treat your patient. Really, really great and will significantly help us on the GP side. We go to engage. On the engage side, at the end, it's a lot about the yes of the patient. We've developed something we call the clinical outcome simulator. You can have a lot of outcome simulation. You can render a nice smile. What is the problem with this? You're promising something to your patient that maybe is not achievable. Here, in combination or in collaboration with Smartee, we have a clinically relevant outcome simulator. This software or this AI gives you an 80% version of a treatment plan in about 10 minutes.
When you're a patient and you're sitting in the chair, you basically, the doctor, the clinician can have a conversation with the patient already and can significantly drive conversion. On the back end, it's going to help us because this treatment plan that was generated is so clinically relevant that our treatment planners afterwards are going to use it to finalize the full treatment plan. A great way to drive conversion and, of course, then the selling experience, what is really fantastic for our core customer segment. We jump over to plan. On the plan side, we've received a lot of feedback from customers that really want, like the other very advanced players in the market, they want to have a CBCT integration. What does this mean? It's like you will see the roots of the teeth when you move teeth.
This is something that, as well with our partner Smartee, we are now natively integrating into ClearCorrect in a very fast way to help the clinicians to plan the cases better and understand much better the root movements and the teeth movements in combination. In your planning phase, you have actually two options. You are receiving a treatment plan from us. You can say, "I would like to, in my do-it-myself mode, I would like to make a few minor adjustments to this case, but I do not want to speak to a treatment planning center again." Basically, I have an editor, I edit a few things, and I send it to production, and you are done. Efficiency. In some more complex cases, you want to have a more personalized service with our case success partners.
These are people who are working with the treatment planning center, who are trained on treatment planning, where you can have an on-demand video call. They are discussing the case with you. They're giving input according to the protocols. They help you get there. When you finish the call, it's automatically sent to production. Highly personalized to overcome as well the hurdle of when you have a certain level of uncertainty about the case, and really efficient because you don't have to do two or three rounds with your treatment planning center. We go into treat. On the treat side, value proposition, we're building on this super strong foundation ClearCorrect already has. It's our proprietary material, Clear Quartz. It's really a material that has been accepted by the market in a fantastic way.
It stains significantly less, and it's a high-performance, highly efficient material, particularly in combination with our high and low trimline options. What does this mean? It's actually moving the teeth a lot faster than comparable aligner systems, what for the patient translates to, "I don't have to have 30 or 40 weeks. Maybe I can do this in 25 weeks already." As well here, we have listened to customers, and we are complementing the offering now because in some indications, or according to patient preference, you would like to have a scallop trimline. The scallop trimline is when the aligner follows the gingival line. This is an option for our trimline. As well now with our partner Smartee, we're natively integrating into ClearCorrect. From now on, you're going to have all the trimline options available.
Interestingly, now working with our customers and clients out there, there's a lot of ways to combine them. You might want to start with a low trimline and finish up with a scallop trimline. We give all the options, and the options are complete now. Thirdly, and this is a very important one, what is the mandibular repositioning. When you talk on the GP side or DSOs about teeth, teeth are a very exciting segment that is growing, that will drive a lot of growth going forward. There's a certain clinical or orthopedic aspect as well to the aligner business, where you want to reposition the mandibular. There are two major devices. You have your palatal expander, or you have your mandibular advancement devices. These are more advanced treatment options that take quite a long time with clinical studies, etc., to get there.
Here we are going to use as well our partner Smartee with their very, very successful GS line. We are going to include this natively into ClearCorrect to truly complete the whole value proposition for our core customer segment. We end up in monitoring. We have something what we call the ClearCorrect Sync app. This is your integration, and this is your interaction with ClearCorrect on the go. Our customers really love it, and we are doubling down on this one. Today, the star of the game, it is really our ClearCorrect Remote Care. ClearCorrect Remote Care, and some of you might know the company DentalMonitoring. They have been the trailblazers when it comes to aligner remote monitoring. What kind of problem is this actually solving?
When you do aligner treatment and the patient goes home, sometimes the patient is maybe not wearing the aligner sufficiently, or something goes wrong, and you have, as a clinician, you have to see these patients with the wires and brackets every six, eight weeks. Most of these appointments are like, everything is okay. You can go home. Very cumbersome for the patient, and not a good use of the time of the clinician. This technology helps you to solve the problem because the patient is scanning themselves at home, and AI at the end is checking that everything is fine. You will, as a clinician, only see your patient when you really need to see your patient, what is significantly improving chair time. Dental Monitoring has been out there, but they are a super specialist. Dental specialists love them because they have all the options.
You can imagine when you're a photographer and you look at Photoshop, there's a lot of options. I don't know how many of you tried Photoshop. You can do everything with this, but you need to really know what you're doing there. This is a bit the same on the Dental Monitoring side, the specialist solution with a lot of options what you can do. At the end of the day, it's something for a GP or a DSO that's far too much. What we have done is, together with Dental Monitoring and a lot of voice of customers, we have created a completely new solution that is natively integrated into ClearCorrect and significantly improving the ClearCorrect value proposition. Nobody better for you to tell a little bit the story of what we believe and what is really valuable here than a customer.
Hi, my name is Dr. Mustafa Altalebi, and I'm really excited about this new partnership between ClearCorrect and DentalMonitoring. I find those are two products that I use very often with my patients. It's something that will really streamline our processes and really give a lot of value to the ClearCorrect aligner system. My patients receive DentalMonitoring as a way of reducing their number of appointments. It also allows me to track from a distance, to communicate through two-way communication with them, and really to have more control over their treatments in terms of knowing when they switch their aligners or when they should stay in their aligners.
This helps me personally in that I won't have to have multiple sites open the way I have right now, where I have my Dental Monitoring site and my ClearCorrect site, and I have to go between them to understand what the patient is going through, as well as my practice management site. Having it all in one site really has a lot of streamlined benefits to me, where I can have one site now open with all the information that I need. That should help other dentists and orthodontists as well. For people that are newer to the ClearCorrect system or to the Dental Monitoring system, it'll also help them out because they'll get more effective aligner movements. If they're not switching their aligners haphazardly at one-week intervals, they can now switch it to when the biology of the teeth is most readily available.
Now, that could be less days. It could be more days. You can really titrate it to move the teeth exactly at the speed at which the teeth want to be moved in. That's a huge advantage and a huge value add. I'm really excited about this partnership between the two companies that I use most.
Perfect. We are really excited about this solution as well in ClearCorrect. Before we close, I would quickly like to double down on the customer segment side. We talk a lot about GP and DSO, particularly on the GP side. What are the three main hurdles for GP to access this kind of treatment? On the one hand, it's a lot about the uncertainty of selecting the right aligner case and managing aligner cases.
I've shown you today that the ClearCorrect value proposition with the complexity evaluator, the outcome simulator, and now with remote care is actually solving this problem. We truly believe that this will be a game changer on the GP side. The second one is the uncertainty about what kind of technology I'm going to use, what kind of trimline, what kind of partner. Here as well, we have seen a lot of change on the value proposition side, but overarchingly with our case success partners that are all in local language, hand-holding these customers to really be absolutely certain about what they do to drive confidence in the treatment. This is something where we believe we will be able to overcome this kind of hurdle on this side. Last but not least, a lot of customers feel locked in today in the aligner world.
You have your intraoral scanners, and you're only doing aligner treatment. On the GP side, they want to do implant treatment. They want to do prosthetic treatment. Here as well, we are bringing something between Access, our Sirius X3, and Dr. Portal on the aligner side that gives you all the options, total optionality to access all of the treatments that you would like to do as a GP. In a nutshell, we truly believe that we are positioned fantastically to unlock the potential on the GP and DSO side that is really the big intersection set with our Straumann Group core customer base. We believe that we have a go-to-market that will be efficient and focused to really deliver as well on the speed that we require. We are transforming our manufacturing sites and manufacturing strategy and footprint worldwide to significantly reduce our cost.
Last but not least, our customers stay in the absolute center of what we are doing. We believe that our go-to-market, the way we have structured it, will as well deliver on our big ambition on this side. With this one, I'm closing the art side, and I'm very much looking forward to the Q&A later on because I can see already some faces that you might have one or the other question. Now we are actually jumping and fast-tracking already into the next big topic. If you remember well, we have two big sides. I'm responsible more for the right side, where we have ticked the clear aligners, and now we go into digital equipment and CAD/CAM prosthetics. That's super exciting.
I will show you at the end of the day, what does this mean to really unlock value through Access in our digital investment. Guillaume mentioned before, it's about selling digital equipment on the one hand, and it's about driving prosthetic consumable revenue. We are totally underpenetrated today in these markets, but we believe with the new technologies that are available right now, we can make significant inroad. Again, everything starts with the scan. Everything starts with the intraoral scanners. That is the gateway into digital dentistry and into the Straumann Access ecosystem. Guillaume mentioned this before, and I think it's just incredible to see this potential. We see a penetration of digital dentistry in clinics today already at 30-35%. This means the clinic has opted in for digital dentistry.
This does not mean that you have an intraoral scanner at every chair, but this is at the end a standard of care. That is where it goes. There will be an intraoral scanner at every chair in the future period. We see this already on the DSO side. The DSO side, they have been the trailblazers of this because they have very early on understood the incredible potential of efficiency through digital. If you go to DSOs today, you will see armies and armadas of intraoral scanners everywhere because they really see it happening in their afterwards and affecting their P&L significantly. We believe we are in the middle of this S-curve right now. This will significantly accelerate. With more than 2 million clinicians out there, we believe that the market potential is gigantic.
To capture this market potential, what is really, really important is that you really—and you saw this on the implant side before from Andreas—is you're able to capture and play in all of the segments. You need to be the premier. You need to have a premium solution, what is our partner ThreeShape, that are consistently innovating and pushing the boundaries with just what they launched as their diagnostics module, where you can use an IO scanner to diagnose as well carriers and everything. This is really a deep innovation driver, and it's our premium segment. ThreeShape saw the need because Straumann Access is becoming so powerful to deeply integrate with Straumann Access directly because it's important for the customer experience at the end of the day. There, they saw as well the need to further drive this.
We have our mid and our entry-level segment. This is the Sirius family. This comes from the Allied Star acquisition, where we have worked with Allied Star together to create—and this is the Straumann X3—an exclusive scanner solution only sold through Straumann that is actually an Axis scanner. It's like Axis is Axis and the X3. It's becoming deeply intertwined. From your scanner interface, you already can access everything. You go to your aligner treatment, to your implant treatment, to your prosthetic treatment, and it's positioned perfectly from a price value point of view. It truly delivers on the things that really matter for this segment. It's super fast. It's super accurate. It's lightweight.
It has industry benchmark battery life because when you have intraoral scanners that are wireless and they're kind of out after 30, 40 minutes of battery, that's quite annoying in a clinical environment. Here we have made a lot of effort to deliver really industry benchmark. It is deeply integrated, like I said, with Access. All the interaction, everything what you do on Access, you will see in your scanner interface in the future, and you're interacting with the platform. Sometimes you don't even have to go to the web-based Access platform. You do this from your interface directly. This is really incredible. What I showed you before about the outcome simulator, it as well is going to come on the Sirius side because it's really important. You see how everything is going to step by step connect.
Remember, maybe from Andreas' presentation, it's actually nicely linking Thomas' presentation, customer feedback, our X3 together with the Exact solution. Andreas mentioned the incredible potential of our full arch business. That is really, really important for us to drive implant revenue. You have already seen the customers talking of how much they love Exact and Sirius. Next year, we're going to push it even further. We have developed in collaboration with the deep optical experience and expertise of Allied Star, together with our implant franchise, a completely new solution that will even make it faster and easier and more accurate going forward to offer workflow that will be guided through the Straumann X3. Where you step by step do something, the artificial intelligence that is proprietary on the side will help you to really deliver this in record speed.
That is innovation that is already going to come next year. Now we have IO. How do we turn this into consumables? Now I want to really speak about the chair side. You know that the CAD/CAM prosthetic side has two elements. You have the lab sides, where you already have heard from Andreas, our Straumann Unique Access solution is on our CAD/CAM sites around the world that are delivering incredible value for labs. Now let's talk about chair side. Guillaume mentioned this before. There has always been a dream to have a full contour crown in one hour. This has been a dream for a very, very long time. This dream is coming to reality through platform, through AI, and a combination of this. You can see there over in the coffee area, the SprintRay Midas.
The SprintRay Midas is an incredible technology because it's clean. When you do chairside, usually, it is kind of a dirty process. Now it's crystal clean. For some of you that have not seen this, that's the crown. It's complete. You place it on your printer, and it's there in 10 minutes. You can do three of them: inlays, onlays, crown, implant-borne, or tooth-borne. This is going to revolutionize the chairside business. What is even more important is, at the end of the day, it's the combination of this with our platform. What we have done in the partnership with SprintRay is we've brought everything together. All of the workflows that we are using are natively done on Access on the strong foundation that we have been building over time.
In record time of only nine to ten months, we were able to create a complete chairside workflow on our technology, on our AI, to deliver something that has been unheard of before. This is why we strongly believe that we will be able, with the solutions that we bring to market on the iOS side, on the Midas side, drive significant revenue going forward as well on the capsule side, but as well on stock prosthetics. You have seen from Andreas before, super exciting, our Aha innovation. Now you can combine this with this in the future, and it is just going to be incredibly fast and efficient workflows that will really change the industry for quite some time. As I am already one minute over time, three takeaway messages. We have the clear ambition to be a significant market player in the intraoral scanner market.
We believe in intraoral scanners. We have a full portfolio with our partner ThreeShape and our own produced scanners that are deeply integrated into our Access solution. We believe that chair side is ready for disruption, and we believe that we have everything necessary to deliver on this going forward. We talked about the monetization of all the digital investment that we've done, significant consumable revenue, both on the stock component side. If you look at your Aha or the capsules that you can see over there on the 3D printer side, this is going to have a significant impact on our top line and our profitability going forward. Nothing would be possible without the right culture and right collaboration to get these kind of cross-functional things to life. Over to you, Arno, for the culture. Thank you, Florian.
It's always a great pleasure to speak after a high-energy speaker like Florian. I try to keep the curve high here. Warm welcome from my side, ladies and gentlemen. My name is Arno. I'm heading off the people department in Guillaume's team. You've heard where we want to take the company and what great potential we have ahead of us. What I'm going to do today with you is to guide you through how we ensure execution through our people and culture, which we believe is a unique asset which we have. A unique asset in the sense that our high-performance culture is a true driver of success. It has helped us to navigate in the past through more challenging times that we have behind us in the last couple of years, COVID, the terrorists now with VBP1 coming into play.
It will scale with us in the future, and it will help us to drive and succeed in the strategy that we're just about to explain to you. Now I'm going to zoom in on three topics, quickly explain the framework that we have built. I can mention already now, it's not a framework that is just on paper. It's just a concept. It's something which is manageable. It's traceable. It's trackable. That's the second point I'm going to share with you. What are the specific initiatives and the key KPIs we track to see where we create impact on the actions we are taking? Let me start with the environment. You heard in the introduction from Guillaume, we are living in a fast-paced, volatile, complex environment, which is also disruptive, mainly driven by AI. This has all effects on our organization, on our culture.
Now, how we react to this and what we believe is important, and what are the institutional answers that we are going to give? Speed and agility. We want to build an organization which is decisive, agile, flexible to react to this outside world and to these outside challenges. Collaboration is a key muscle we are strengthening, and we are focusing on why? Because the complexity and the confusion in the world around us is bringing us problems that we have to solve, which no one can solve on their own. It needs collaboration. It needs collective intelligence to find the right solution and to drive innovation. The third important organizational competency that we are looking into is the readiness. When disruptive things like AI happen, it creates also a skill shift.
We want to make our people and our organization ready to perform not only today, but to also be able to perform tomorrow. Let me kind of introduce to you our cultural framework that you see on the left hand. Nothing has changed, which means when nothing changes, it is solid, it is good, and we continue to do the same thing. You see the core beliefs that have been introduced in 2021. In the middle, you see the I with it, what we call the magic triangle, and center and front is our customer. Whatever we do, kind of we keep the customer in mind. Let me guide you through the three dimensions. For us, it all starts with a strong I. What do we mean by this?
Strong individuals with the right skills, with the right mindset, with the passion for learning, with the ability to take ownership and drive results. That's key for us. It is not enough because if you have strong individuals, if they do not work together, and if they do not form a strong collective, nothing is going to happen. This is where the we dimension comes into play and where leadership excellence plays an important role. Leaders are expected and trained and kind of held accountable to really bring these strong individuals together to form a strong we, to create an environment where these people can collaborate, where they can speak up, where there is psychological safety, where all of the kind of the collective intelligence can happen. Once you have this in place, you can drive the it, a strong result, strong value to the customer, strong customer experience.
This is what our cultural framework is all about. Now I'm going to dive into each and every dimension to quickly show you what type of initiatives we focus on and what we drive and how we measure it. On the I dimension, it's about talent. It starts attracting and selecting the right talents. We focus a lot when we speak to talents and when we recruit talents, we pay a lot of attention to the cultural fit. This is key to us. We want to have people that have a good cultural fit, that have a learning mindset, that have a willingness to grow with us as a growing company, that have the ability to take ownership. Once we have kind of integrated these people into our family, it's about developing.
It's about developing our people to give them the skills they require today, but to also make them ready to take a next opportunity. This is then the third dimension of structured talent management. Structured talent management means for us to be more independent from the market, to build our talent internally, and to build a strong succession pipeline for our most critical roles. Most critical roles being the most senior roles that have a strong impact and leverage on driving our strategy, but also critical roles in the market. I'm happy to share with you that for all the critical roles, on average, we have more than three successors, which shows that we have a strong talent pipeline and the risk of execution or the risk of falling out on the execution is pretty much under control.
It is about building the right skills for the future. We have launched two years ago a program which is called EdgeUp, a beautiful initiative with the aim to create digital readiness in the organization, to help individuals to lower the hurdle to use these tools, to integrate these tools in their style and way of working. We have trained thousands of people around the globe in many, many workshops. We have kind of created EdgeUp days, working labs, interaction sessions, outside inspirations, created tons of learning material which are available on our learning platform. You see the result, and that's the KPI. We track this in our VEE Engage or in our employee engagement survey. We have a digital readiness score of 78, where people express, "I'm confident in the digital skills I have to do my job." On the V dimension, it's about leadership in more detail.
We invest a lot in our leaders to make them ready. You see some of the programs there, Manager Essentials and Leadership Academy, where we invest a lot in managers to be ready, to be excellent, to drive the people performance here. We have done great progress also on the manager effectiveness score in the last couple of years, 80%. We aim for 85% of our managers having scored in more than 70%. Manager effectiveness score being a subset of questions. It sounds pretty basic, but we know from evidence and also from research that this is important. Do I set clear goals? Do I have development discussions? Do I give feedback? Do I really speak with my employees how their job integrates into the strategy delivery and into the bigger picture?
This is really something we have invested a lot in and continue to drive this as we believe this is a strong driver of the culture and of our performance. On the engagement score, we truly believe that employee engagement is a really leading indicator of performance, of really driving something of retention because engaged people, they do more. They are more open to learn. They are more open to change. They are more open to go the extra mile. This is why managing and driving this employee engagement is a really important factor and driver to our culture and to our performance. I am really proud about what has been achieved in the last couple of years. We have an engagement score currently of 92, which is one point above the 10th percentile of the global Clint universe, which is higher.
Some of the key other factors are on or beyond or above the 25th percentile of the same universe, like growth or culture, which are the questions here. Now let me conclude. What I want you to take home: Culture in Straumann is not just a word. It's not just a concept. It's not just a framework on paper. It's really something we have built that we drive, that we actively manage, that we really measure where we create the impact. Culture is our foundation. We invest a lot in our skills and fueling our talents because this is the engine of how we grow. We have a strong focus on our leaders, which I just explained to you because they are the multiplying factors. They create the culture. They drive the talents and make them ready to perform.
When this comes together, we have a strong performance not only today, but also going forward with the execution of the new strategy. Thank you. With this, I hand over to m y colleague Isabel.
Thanks, Arno. I think, wow. I mean, what a lineup we have seen, right? We have all the right products in place, the right strategy, all the right people to execute. This is why we said, let's save the best for last, which is Guillaume. Before I hand back to him, I want to take you on the journey. What we've seen, we've done our homework, and I think we are well positioned to unlock the growth and drive the growth of the company further.
What we've achieved in the last couple of years was remarkable because if you look at how we actually stand here today compared to 2021, what we can see amongst everything, we are stronger and we are more diversified. I think this is a very important remark, more profitable when we look at our organizational development. It's looking at the major drivers we have seen throughout the presentations of the last couple of hours. In terms of product mix, we are more balanced. What you can see there in the lower corner, we have outgrown massively in our non-premium and the challenger segment, Andreas has shown earlier, with Neodent, but not only with Anthogyr and Medentika as well, which really means we're making huge progress in gaining market share and increasing the penetration.
When we look at the geographical mix, we have grown massively in Latin America and in APAC when you look at those two curves, which is something we really like to see because it shows we have done our homework in making sure we have the right portfolio and the right competency offering, not only in the very developed and mature markets, but in all of the other markets as well. Last but not least, the customer mix. We made significant inroads for the dedicated team to gain market share in the DSO segment. Why is this so important? I think we've seen that throughout the other presentations. They really help us to bring patients into the practices who beforehand thought, implants, maybe not for me. It's too expensive.
It's too fancy." Since they really go to market very aggressively, a lot of marketing, a lot of communication, they help us to increase our addressable market. Last but not least, they are usually a very early adopter when it comes to the digital workflows. All of this taken together made sure we exceeded our growth targets and we exceeded our profitability ambition. This is, for me, a very important message because I very often, when I talk to you, when I talk to our investors out there, get the question, "Why is your profitability going down? Is it the bigger share of DSO? Is it because your mix of products is not that good anymore? Is it because you have lower profitability in the emerging markets?" The clear answer when you look at that is, "No, it's not.
We're growing in a very profitable way. The only thing or the only factor that actually brought us down a little bit, and as reported, was the Swiss franc when we did the conversion. What we're planning to do about that, I will talk about in the next couple of minutes. For me, this is the one very important message. If we keep on executing like we did and with all of those exciting new innovations, with a new setup in auto in the pipeline, with a digital platform, the digital enablers, we are very well set up to make sure we can keep on growing as we did in the past, and we can do so in a very profitable way. Of course, looking into how do we want to do this and other things that can be improved.
I mean, given I'm with a company for roughly half a year now, I get this question quite a bit. It's a fantastic company. Can we still improve? Always. When we look at our player-learner mindset, I think we really want to understand what are the levers we can somehow pull and how can we make sure we do not only grow with around 10%, but we do that in a profitable way, and we do that in a cash-accretive way to unlock the full potential of the group and make sure we can invest into our future. What I did in the first couple of months together with a fantastic team, we somehow assembled our finance strategy and my CFO agenda of what I want to focus on in the years to come. This agenda has the nice title of Unlocking Value.
I really said, "Let's look at the company in a different way and let's think about what can we do to make sure in each of those lines of the P&L, we increase the conversion as much as we can to make sure we can take the strategic decisions we want to take and invest into our future growth." Looking at our top-line development, in constant currency, an amazing development over the last four years with a CAGR of 16%. We outgrew our markets massively. What I always said when we prepared for the presentation, you saw the market somehow grew 15% since we started. We did this every year. I think this really helped us to gain market share as much as we did.
I think to continue to do this, and Guillaume already showed our ambition level for 2030, we want to continue to grow around 10% in the next five years. To do this, the most important thing is to keep the focus on innovation, the multi-brands we do have in the market to make sure we have the right value proposition for everybody, and to keep on increasing our market share, especially with the DSOs. What we will do in addition to that, we will further strengthen our revenue management. What does that mean?
That we look in how we convert gross revenue into net revenue in a much more diligent way than we did in the past, and that we harmonize that much more than we did in terms of how do we handle rebates, how do we handle free of charge products, how do we bill for shipping, how do we want to handle this? Because we believe there's a very strong avenue for growth for us in that as well.
We always do this little exercise in our sales meetings and say, "Hey, if we can only reduce the rebates we have to give by 1% for the entire group, this is equal to buying 150 CNC machines, or this is equal to the OpEx of Italy and Spain combined for one year." I think this really gives you an idea of the dimension we're talking about if we really manage to get this program forward. We saw some very nice and promising things we've seen across.
Last but not least, the fantastic things Florian showed us with those new potentials we unlocked in auto and the digital platform Access we saw from Thomas earlier that we say, "Hey, we can bring more customers on, and we can really accelerate how we sell our core products by using that platform." Obviously, our P&L or cash flow statement does not stop there. I think what is important for us as well, we want to do this in a very profitable way. Let's look at gross profit first. I think the development you saw here is very similar to what you saw in terms of sales, which I think is good news that we were able, despite all of the headwinds we were looking at, to maintain a very high margin.
You can see here we got a lot of headwind from the Swiss franc as well. I think what is very important for us in the next couple of years is to keep on executing on our local-for-local production strategy. If you look at it this year, we opened our new campus in Shanghai, where we will now step by step ramp up all of the Straumann Green product lines for the Chinese market, as well as the Anthogyr product lines we need to sell in China. What we did then as well, when we look at the tariff compensation effects, we significantly increased the products we can produce in the US for the US market, which really helps us to somehow make sure that the 6% moves towards the 16% a little more going forward, and we do not lose so much in translation.
In orthodontics, I think I don't need to say more than what Florian already explained. I think from a financial point of view, this partnership with Smartee is wonderful because I think for us, it would have taken a really long time to get the same economies of scale and the same expertise Smartee already has. Directly when switching over countries to their production capabilities, we really see cost per line coming down drastically, which means we have to have substantially lower costs and a higher gross profit. Last but not least, in terms of products, the Sirius X3 you saw right now, which is our own development through our acquisition Allied Star. This comes obviously at a much nicer margin when you look at our digital business than for us selling third-party products. This is where we believe we have a huge upside potential too.
Last but not least, I already indicated we're looking at this local-for-local production strategy. At the same time, we've significantly improved our global supply chain management capabilities so that we look at where do we produce, but where do we have inventories on a much more global scale than we did before, which in the long term will help to reduce cost, obviously. At the same time, we will see that in a couple of minutes will help us with managing our working capital quite significantly. If we, for example, look at projects like our digital—too much digital for today—our regional distribution centers, we are currently building in all parts of the world.
We do not need to have the same big amount of stock in every country anymore, but we bundle that on regional level and really make sure we can use our products most efficiently and most value-accretive. Next step would be to come from our gross profit to the EBIT. I think there it really shows the first point you can see here is the most important one we need to work on. When you look at our EBIT, I think for me this is the most important message is the EBIT growth was faster than the top-line growth in the last four years at constant currency, which means a lot of things we have done were the right things to do, but we somehow need to make sure we do not lose everything on the way down through the translation in the Swiss franc.
Because if you look at 18% over 3%, where is that coming from? Basically, when you look at the distribution of cost compared to the distribution of revenue, we're usually talking about 1% to 2% of our revenues in CHF compared to roughly 20% of our cost. Can we move that in the direction towards 1% or 2%? Potentially not, but there are a lot of levers we can pull in terms of OpEx as well. This is what we will focus on in the years to come together with a lot of other efficiency measures we put into place.
I think one very important one is our shared service initiative and other operational efficiency measures we put into place, which on the one hand side means doing more volume with the same number of people, but then at the same time thinking about what are the right locations to put those people in terms of having a good cost leverage, but in terms of creating this natural hedge towards the Swiss franc a little better so we can move from 2% to 20% to something much lower in that ratio and make sure we do not lose so much margin anymore going forward. Having said this, I think one important message when I talk about the currency effect is when we look at those numbers, it is a translational effect only. For the transactional part, we are 100% hedged.
It means we're not losing money in terms of free cash flow, really cash on the bank. This is the translational effect because all of the revenues take place outside and we have costs coming in from outside as well. It's not that we say it's actual payment transactions we do not hedge. This is more or less 100% hedged, especially for the big currencies. This for us is really something to make sure we safeguard our margin and can deliver this nice increment year over year to look into this a little bit more in as reported numbers as well. I would say two more very important initiatives we are looking at is on the one hand side introduction of a procurement excellence program. Obviously, we've done procurement before, but never looked at it on a global scale.
What we already see right now with the first categories we centralize, there's huge potential for the group in terms of direct material, but especially in terms of indirect spend as well. This will be a huge benefiting factor for us in terms of OpEx going forward that we make sure we get the right organization, the right level of skills, the right focus in place to category by category really manage our spend globally, which helps on the one hand side obviously to get better pricing, but on the other hand side helps with alignment as well. I give you one example. We had a discussion in our factory yesterday when we were in Villeret.
This is CapEx, but I think we looked into how do we buy CNC machines and at the same time use this discussion to somehow get an understanding of what are the actual specifications we need and what are the machines we need for the job to be done. Basically what we did right now is now per CNC machines. Since we can use a different vendor, we only pay half of what we paid before, which is a huge thing. This is where we said for us procurement, it's not just about reducing price, but really using this opportunity to make sure we buy the right thing, fit for purpose, plus we leverage the scale.
Obviously, last but not least, it is about having the right processes, the right systems, the right tools in place to have the right data structures to make sure we can grow in a scalable way and we can leverage the full potential of shared services or global business services at one point in time with the right OpEx intensity. I think last but not least, the cash flow. This is obviously for all of us a very important topic for us as a company, but for you as investors, as analysts as well. I think what is important to understand since we get a lot of questions, why is the free cash flow and the cash conversion coming down a little bit? In the last five years, we invested over $1 billion into the company. This number includes 2025.
This was to make sure we can deliver on our growth expectations. I mean, you saw Villeret yesterday with all of those nice new machines, but we have a complete new campus in Shanghai. We are in the process of building the single biggest factory we have in the Straumann Group in Curitiba at the moment for the Neodent plant. We significantly enhanced Medentika with a new factory that just opened this year, and I could go on for a couple of minutes. Having said this, looking into the future, it means for the next five years, we will need a lower CapEx intensity because come next year, compared to 2021, we will have doubled the production capacity of implants in the group, which means we still have a lot of leeway.
Of course, we continuously need to invest because you can imagine a 10% growth number right now means many, many more implants compared to 10% 10 years ago. With this production footprint we now have and the production network we are using flexibly, we do not expect that we need to do the same thing in terms of CapEx intensity again in the next couple of years and in the period until 2030 we are now looking at. Second big cornerstone, obviously speaking, the net working capital. I think this year with the tariffs has been a little special, and we are all aware of this, but we see generally we still have potential to reduce our net working capital and designed a designated program to look into all of those levers.
One I already talked about with the supply chain management, we continuously enhance looking at regional distribution centers, for example, looking at what is needed where. Procurement, of course, helps with the cost, but once you centralize, helps with the payment terms as well. I think this is something very important for the future to look into too, that we say, hey, it's not only about getting the right price, but we somehow need to make sure in every country to look at matching accounts payable or accounts receivable payment terms as good as we can because I think we need to be mindful in terms of day sales outstanding. This is very different in a lot of countries, and especially when you look at the DSOs, they have a very high purchasing power.
This is where we very diligently look at countermeasures to be defined to make sure we maintain the strong cash conversion focus in every business and constantly increase our free cash flow conversion going forward. Having said this, in terms of capital allocation, I think as before we said, we invest into where we believe we see the biggest return. Given our high profitability we already have and we expect to maintain in the next five years, for us, priority number one is to make sure we can reinvest into the business and finance the sustainable growth in a profitable manner. Of course, we also want to maintain the strong balance sheet we have to accelerate implementing the strategic priorities and pursue M&A in case the right targets come up.
Last but not least, of course, maintain and increase our returns to the shareholders and increase the dividends with our earning potential. Having said this, I have four key takeaways. I think revenue, we feel very confident we have a balanced portfolio across products, across geographies, across customer segments to keep on executing this very high growth we have seen in the past. This is why we earlier already said we plan to grow around 10% CAGR in the next five years as well, knowing this is a rather difficult, challenging environment, but we believe we have done our homework and we can execute on this growth.
We cannot only grow, but we can grow in a profitable and value-accretive way through all of those measures I have just talked through, which will lead to an increase of our EBIT margin of an average of 40-50 basis points year over year at constant currency. It means, obviously speaking, we hope we do not see the same currency effects again, but then having done our homework, we can mitigate a little bit more of that. Based on this higher EBIT generation, we expect to see a higher free cash flow conversion year over year as well. To continuously improve this number due to the lower CapEx intensity and the lower networking capital levels. With all of this, we believe we are very well positioned to convert the growth into sustainable value creation for the company. Yeah, and thanks for listening.
To give you a very good picture of what we talked about and what to take home for you as well, I will hand back to Guillaume for some closing remarks.
Thank you, Isabelle. Thank you, Isabelle. Thank you, everyone, for the presentation. I have the pleasure to put everything together in the next five minutes or so. If there is the first message that I want you guys to take back home, it is that we are in a very exciting under-penetrated market of $20 billion, okay? We are looking at this under-penetrated market in two sides. The left side where we have very strong core competencies, where we have proven we can grow twice as fast as the market.
I think we have demonstrated with innovation capabilities, with geographical expansion and education that we will continue to capture most of that growth opportunities in the next period. What is very important to us and what is rather new in the presentation today is that when you look at the right-hand side, which are somewhat I would call our new segments, we have completely changed our competitive capabilities by bringing very significant new technology and new capability to compete, which is unlocking a lot of those growth potential that was just in front of us in the past years.
Something that we have presented today is that around all those segments, we have created a digital Straumann ecosystem, which is going to benefit all those different segments by creating an environment and a digital workflow, which is going to drive not only better clinical outcome, but also a lot of practice efficiency and a lot of potential for scale and standardization for the critical target group that are the DSOs. If we look quickly one by one on our core side, I think we really demonstrated that we are keeping the investment on the product innovation very high. We have really big expectations and we see IXL already winning market share, but we have also a very strong pipeline moving forward, be it material, be it surface, be it design, to keep the amazing history of meaningful innovation on the Straumann side.
Our vision is very clear. The product innovation alone is not enough in the future. It has to be upgraded by the clinician experience, which is delivered by our digitalization. You have seen the example of the fast molar where we can move from five appointments to two appointments, which is going to be the new standard of care when it comes to fast molar replacement. This is thanks to that very strong combination in between product specifically designed to leverage the digital platform that has been created. This is a huge differentiation for the future. It is going to be challenging for smaller organizations to replicate.
I think this is very important to capture as an element because we have seen in the past a lot of small companies being able to copy or replicate some of implant design, but it will not be enough tomorrow. All those kinds of investment in cloud-based platforms into those workflows that are leveraging the digital capabilities are very costly from an investment standpoint. That is why we have been very clear in 2021 that we are going to start an investment cycle. We have been very excited today to share with you the outcome of this investment cycle on the digital side.
Education, as Andreas presented, is also one of the very important elements, not only to train on our innovation, but obviously to increase the pie because we know that in emerging markets, as an example, there is still a lot of clinicians to train for doing implant surgery. One thing that I want to highlight also on the geographical expansion, we have a core competency in product registration. Globalization, especially on challenger brands, is coming just because there is a very strong investment and capability in registering in all the different markets, all those product portfolios. That is why there is almost only one or a couple of global challenger brands, because you have a lot of those local champions that do not have the capability from a financial standpoint to expand.
This is going to be even more important in the future, as you know that MDR came in Europe, which is making mandatory for every new product to be introduced in the European market to prove its clinical performance. A lot of those small companies have never invested in clinical capabilities. That is why we believe that our innovation will be even more differentiating in the future in markets where clinical evidence are now becoming mandatory. To paraphrase Andreas, we are very optimistic and confident about our capability to grow our market share and expand our leadership on the implant side. The second aspect that we have presented has been the transformation of our auto business, and as Florian put it, it is about progress, it is about scale, it is about speed, and it is about focus. Progress is about strengthening very significantly our value proposition with that Smartee partnership.
I will not, again, enumerate all the additional elements of our value proposition. Also, I would say upgraded with the DentalMonitoring capabilities, but we are really having a value proposition which is significantly more competitive and will allow us to gain significant share in our focused GP segment. It is about scale because through the Smartee partnership, we are going to leverage manufacturing capabilities at scale from Smartee and especially automation that has been possible thanks to the volume they are doing. We were looking at doing automation, but at small scale, your return on investment is obviously not sustainable. It is not easy. We are going to benefit from that scale and automation for driving significant profitability moving forward. It is about focus and speed in decision-making by having a much more streamlined organization on the go-to-market side with very clear expertise that we are going to drive strongly.
We went on the digital equipment and digital prosthetics, and it's where a lot of new technology we are bringing as we speak just now. In addition to our platform that we just launched this year for EMEA, end of last year in North America and Latin America, we are bringing new digital capabilities with our intraoral scanner, super well-positioned for the current expectation of the market. Once again, dental service organizations are looking at standardizing and scaling their activities, but they want to do that in a cost-effective manner. This is why our current IOS, in addition to our partnership with ThreeShape, is really at the moment very well-positioned to supporting this digitalization of the DSO side. You can do digitalization at a much lower cost than was possible before.
They want, and we were discussing about that ecosystem, they also want to look at the quality of the dental surgery that has been done. Through all data gathered in one platform, they can have access also in all their clinic network to exactly know how they are performing. What is very interesting, we are arriving in the area of customized education. Based on the data we are going to have on their capability to do surgery, their capability to do prosthetics, we'll be able also to assign or propose specific education based on the indication they treat or being on the area where they need to improve. This is what our digital capabilities are going to allow us moving forward. We have best-in-class connectivity for then all the different tools and softwares that we are proposing.
Last but not least, we are at the beginning of disrupting that prosthetic workflow where the crown in one hour or the inlay in one hour is going to be possible. One can say it was possible before because it was with a milling technology. For acquiring a system for chairside prosthetics, it was around $150,000 because the intraoral scanner technology, the software technology, and the milling technology are pretty expensive. Now we can offer a full system chairside prosthetic for $20,000-$25,000. The accessibility and the affordability of such technology is really changing the game here. That's why our strong expectations that not only this technology will help strong efficiency on the practice side, but it is affordable for every single practitioner in all the markets where this technology is available.
That is why our growth picture and our playbook is very exciting, and we are really looking forward now to rolling out all those technologies. You understand why our edge-up campaign that Arno presented is really important because we need to have our entire team understanding, embracing, promoting digital technology. It is not so much about digital technology. It is especially the benefit at the practitioner side. We need to demonstrate that technology, the complexity we handle and simplicity is really what we give to customers.
At the end, from a conclusion, of course we want to translate afterwards those significant revenue growth opportunities into profitability like Isabel presented, increase manufacturing and supply chain efficiency, a lot of opportunity to care about our gross margin from investment in automation, but also from partnering where it's necessary, driving operational excellence on our processes and our strong culture in order to keep this entrepreneurial mindset, this agility, this fast decision-making, which is also afterwards from a huge engagement being able to execute very strongly. With this, being able to unlock free cash flow to fund our future growth with improving our networking capital and being able to mitigate, of course, this very strong Swiss francs counter effect.
At the end, what we commit to when we have our big picture ambition for 2030 is what we expressed, and the 10% CAGR average on a revenue growth standpoint and 40-50 basis point core EBIT margin and average per annum that we are looking for based on the plan. Thanks for listening. Really happy to have shared all of this with you, and we are looking forward to answer any questions you may have on all the dif ferent parts of the strategy.
Thank you very much for all your presentations, Florian, Arno, and also Isabel, and obviously Guillaume. We will now go into Q&A. We have colleagues with mics. I see many hands up already. We will first take the questions here in the room. We also have people asking questions online. Please, as always, state. Yeah, we're on.
State your name and your company, and then the question. If you may come up, please. Ladies first.
Thank you very much, Marcel. That's good, guys. Thank you. Excellent. Thank you so much, and thank you for a great morning of content. Really appreciate it. It's Veronika Dubajova from CITI. I'll keep it to two questions. Maybe just a quick clarification if I can on the guidance first and foremost, and then my two questions. The guidance is from 2025 as a starting base or from 2026 as a starting base, Isabelle?
2026.
And it's an ambition, not a guidance. Got it. That's very clear. Thank you. My two questions, the first one is really for Florian and Guillaume. Obviously, lots of exciting opportunities. I'm wondering if you're willing to quantify your market share ambitions for the three businesses on the right.
As we look at that current position that you have, what do you think is realistic by the time we get to 2030? If you are willing to put some numbers on that, that would be great. My second question is for Isabelle on the margin guidance. Obviously, the ortho business is driving a pretty substantial margin improvement within the timeframe as you've committed to bringing it to break even by 2027. Just trying to understand, is that getting reinvested into the business? If I kind of look at the cumulative margin improvement, ortho should explain two-thirds of that, and that suggests that there is not a ton of margin upside elsewhere, or are you being cautious and conservative? Thank you.
Yeah, I will maybe try to unpack the ambition on the clear aligner side.
When you look at if we are somewhat a bit independent from the market growth from that perspective, we are expecting our ortho business to reach a low double-digit % of our total top line by 2030. I think that's a little bit then somewhat doubling our current weight of ortho in our total business. If you want to translate from a market standpoint, I would say it would be reaching double-digit market share in the GP segment. We're expecting the GP segment to be somewhat like 40% of the total business, and we think that if you take this into consideration, then we should reach almost a low double-digit share on that GP-specific segment. When it comes to IOS, I think we have not really then defined market share per se, but I would say I believe by that 2030, we will be above double-digit.
I would not say any market share when it comes for prosthetics because the market does not exist per se. It is really here a game of making sure that we are making this technology penetrating the market, being seen as very good solutions moving forward. Based on this, I believe there will be new movers potentially in this space, and then we can talk about market share. At the moment, together with our partner, SprintRay, it is really opening up a very new segment into chairside prosthetics.
Towards your margin question, Veronika, I think there are a lot of different elements obviously you have to take into consideration when modeling a five-year margin, right? I mean, you are correct, only looking at basically next year or the year after that we expect a huge tailwind from Ortho with a Smartee partnership.
This is not something, of course, that will be replicated every year going until 2030. You can imagine just looking at Ortho. We need to reinvest into the business at one point in time as well to make sure we can absorb the growth Florian was talking about. Because if you're going from 3% market share, we said we want to significantly increase market share. You need to hire new people in sales and train them, wait until they're efficient. All of that is modeled in there as well. If you then think about what Andreas presented, this will come at a fantastic additional margin too. I think what is important to understand, we're starting from a very high margin already, right? Point one, we really need to make sure we have everything into place to defend this very high margin.
Obviously, there are a lot of headwinds we are confronted with as well. Look, on the one hand side, the increasing share of the DSO, we like that obviously because they help us increase penetration and digital penetration. You can imagine that those huge organizations have a very different purchasing power. This is why we continuously have to look into things like reducing our COGS, for example, to make sure we can maintain the same margin level to begin with. Add on top of that all of the innovation we bring to the market. Same, I think what we cannot forget is the VBP in China. Yeah, we expect to see something like that every three years from now on. Obviously, given the size China has, this puts pressure on the margin too. We need to absorb elsewhere.
This is why we're confident with all of those initiatives we put into place from Smartee over the operational excellence, over our operational footprint we now have with different locations. We did our homework in a way that from the very high base we are growing from, we can deliver this 40-50 basis points per year on average.
Just to comment in addition to Isabel that I'm fully aligned with, we also want to create a condition to be able to choose. That's very important for us. We are in a, we are in front of potential fast-growing opportunities. If we see opportunity to double down in some area, we want to be able to reinvest in the business, as Isabel has said.
If everything is, yeah, unfolding as planned, I think we will have that option to choose to potentially give it even more on the EBIT side or the doubling down for multiplying top line. Having that flexibility is really something which is important from leading high-growth organization.
Hi, good morning. Günter Zeichmann from Dreyfus. I've got one for Isabelle and one for Florian, please. Isabelle, you say that the transactional FX is 100% hedged. Will that roll off at some point? I mean, you've committed to 2030 ambitions today. Is it hedged to 2030? Sounds quite long if you could just put some clarity around that. Following on from that, if all FX impact is purely translational, does that mean therefore that 100% of the EBIT becomes free cash flow with full conversion rate?
For Florian on the clear aligners, Aligntech are 56% of the market and they grow low single digit. You say market growth to 2030 is low double digit the way you see it. What am I missing here in terms of market growth given that they're such a substantial part of the market? Thank you.
Let's start with the hedging. I think for the transactional part, I mean, obviously we don't have visibility on our transactions till 2030, but we have a very clear guideline on how we handle this, which is basically that we anticipate our exposure for the next six months and then make sure we are 100% hedged. The majority of what we're looking at is on the one, it's usually only intercompany transactions given we have very empowered organizations in the countries.
We're either talking about intercompany loans or intercompany transactions. There we're very diligent to make sure we do not lose actual money. Around the translational impact, can this be brought down to zero? For sure not, because we still have a headquarter in Switzerland and we have a huge factory in Villeret you saw yesterday. We are not planning to change that, but we are obviously questioning for every investment we need to do, every position we need to hire, does it make sense to have that person or that kind of investment here in Switzerland? Or is there a better location in the group? What this should do is when you look at the Abbott bridge I showed to basically bring the 3% closer to the 18% to somehow close that gap because it will be a little more in line with our revenue ambition.
A direct impact on free cash flow you would not see in terms of having something in the free cash flow lines, but obviously just because you have a higher EBITDA or EBITDA to start from in the as reported numbers. When you look at the categories that actually determine the cash conversion you have in there, it's the CapEx and the net working capital. In terms of hedging, this will not be one of the biggest influencing factors.
Okay. Like always, I mean, we are not commenting on our competitors directly, but from a Straumann point of view, we believe we are very well positioned with the value proposition we have right now. Focusing on these two customer segments on the GP and DSO side where we believe significant growth is coming from, we believe we are perfectly positioned right now in this area.
Obviously, as well on our strategy side, there's a certain switcher strategy involved. I mean, you know that the market has, and I think that's no, it's very obvious that the market has become significantly more competitive with a lot of market entries, Angel Align, Spark, etc. You see Smilers in this market. In a competitive environment, it's about the value proposition that you bring. It's about the customer relations that you have. We believe that in our core customer segment, the potential is significantly there to outgrow this market. Based on the market research that we have done, we believe that with lower interest rates as well in North America and in the whole world, this more susceptible treatment to the interest rate level will become sort of whole macro will help. We believe that this segment is going to return to double-digit growth.
We believe we are very well positioned from a value proposition point of view. Yeah, I think you were when we have our growth on the segment, and I said that for everything, we are not talking about the growth right now. We have been always saying it's a growth on 2026 to 2030. We do believe that, and it's the case also from our competitors on the field, believing that this over the period will grow low double-digit also because of a better macro moving forward.
It's Oliver Metzger from Autoviachef. Hello? Okay, one question. Okay, sorry. Okay, no, good. It's Oliver Metzger from Autoviachef. One quick question on the guidance. Historically, we had a big M&A contribution. You also mentioned M&A. Regarding this 10% growth, which M&A factor have you baked in?
Second, about the overall competitive landscape as well as the market segmentation. We know in emerging markets, it's primarily about discounts, so very cheap implants. You also mentioned in this context, okay, you see strong competition from China arising. Given the stronger competition which comes in, do you expect that the emerging markets move upsales or move more towards value implants over time, or do you expect they remain discount? Having said this, excluding Europe because MDR is something special, do you see that, for example, the very aggressive competitors will gain traction, will make a more fierce environment for you also in this, let's say, growing markets?
I will take the one first on guidance or ambition. There is no M&A included into this one. M&A would then come on top. It is all about organic growth for achieving this guidance.
That's very clear on this side. When it comes to implant, I think, Andreas, do you want to take a first shot at this one? We'll be happy to complete. Sure, sure. You have to switch it on. Yeah, okay. Actually, didn't switch it on.
Okay, so fierce competition, I think if it comes to, let's say, the developing markets where you asked the question, is there fierce competition coming in that will make our life more difficult? I think that the truth is that all the competitors are trying at the moment. I think that the competitors that we are seeing globally present, they are trying hard to be successful in Europe and North America. We don't see this trend becoming more aggressive and more pronounced.
We are very confident that with what we have in place, the pipeline, the commercial execution that is also key, the education that we spoke about, we can handle this and we are very well positioned to defend this and to build further market share there. I think if it comes to emerging markets, I think your observation is correct. Many of those emerging markets are today a lot of value plays. Also there we see that a premium segment is developing. We see this very strongly in China where there is a significant potential for all our brands, so for the Straumann brand in the building premium segment in those geographies. Also, of course, we are very well positioned then with our brands like Neodent and the other value brands that are key to success in those markets.
Yeah, I will add two things on Andreas' point. We have always had those very aggressive players. I think Korean implants and Israeli players, Turkish players have been there five, seven years ago. I do not think it has changed significantly for more aggressive pricing. The second thing what I would consider that we have seen now in the past, I would say, nine to twelve months is that thanks to the clinician experience, we are gaining value implant users back to premium. We have not seen that for quite some time. I think it was very well captured by Dr. Panos, which was not, it is not about price, it is about value creation at the practice level. He was saying that the Straumann implant could be the most expensive.
If I can have two appointments instead of five, then I'm better off with a Straumann implant than anything else. This is really our strategy when it comes to premium. It's a lot about value creation. This is going with service, with digitalization, and with a lot of different, yeah, I would say eco environment that we are driving this value creation to dentist. It was a lot required by specialists before, but we see a lot of GPs now being very interested by the value creation we deliver with our platform and the digital workflow. I think this kind of approach is also rebalancing the pure implant pricing when it comes to the product dimension only.
Hi, Susannah Ludwig from Bernstein. I have two questions, one on China competition and two on the prosthetics market.
I guess first on China, you talked about specifically players in iOS and orthodontics. Are you also seeing the emergence of strong implant players in China? I guess with that, how do you see the maturity of the dental market in China and what is sort of Straumann offering in terms of building out the infrastructure in that market? Second, on the prosthetic side, do you guys feel that sort of with the current technology, you obviously talked about a much cheaper price, but do you think that you have the right offering to catalyze the shift to chair side? Often the prosthetics are talked about more as an art, and so having sort of a lot of different offerings I think is important, particularly when we start to talk about front teeth and not molars.
Yeah, when I will come to China, I think the Chinese company has disrupted different places, not so much on the implant side yet. I mentioned a lot of Koreans that have been there for quite some time. One of the challenges now of the China market is that with very, let's say, cost-effective pricing, it's also a challenge of small company profitability. That's one of the reasons why Chinese companies on the implant side have not been able to invest a lot in innovation, go-to-market education. We are not seeing, at least yet as we speak, the emergence of a very strong player as a Chinese market. This is true as we speak. Tomorrow with the VBP 2.0, if they are also having a favoring local manufacturing and local company, this might change.
That's one of the reasons, and I think it's very important that we anticipate all potential options for us. One, we have our local manufacturing production now, local production that have been localized, that have been licensed, and that have been, if I can use this word, equalized. That means we have approved by the Chinese authorities the fact that our Chinese production is equal to our Swiss production, meaning that we can apply the same pricing. We are the only international company in this case before VBP 2.0, which we believe in addition to the local manufacturing of our new Medentika line, will open up a lot of options to play depending on what the VBP 2.0 is going to be about.
That's a little bit how we want to make sure we leverage our Chinese capabilities from a local basis to play also in this market and make sure that, yeah, we manage a little bit the solution from that new potential competition coming up. Prosthetic, do you want to take that up?
I mean, the question was, do we believe we are perfectly positioned? The answer is yes, definitely. Because there's two worlds. On the one hand, and I alluded to this, there's a lab world that we are significantly playing. Guillaume explained that end of 2024, we launched this already in North America, or a unique offering that will really cater to these kinds of needs. As well, we'll do so for many years to come. Labs really love the offering that we have on the table.
On the chair side, yes, 3D printing is not on the anterior teeth aesthetics yet. Is it going to get there over time? Yeah, we strongly believe so. I mean, it starts with temporary, then it becomes fine, etc. If you look at the innovation pipeline that we see on the resin side, both from our partner SprintRay or what we see in the market as well, the resin development is evolving fast. Obviously, these are permanent teeth, so the registration timeline takes some time. Do we believe that the workflow and the system to make it clean, easy, and simple will really transform chair side dentistry on the prosthetic side? Absolutely, yes. I think we're perfectly positioned right now with the lab side and our technology partner and our platform.
Great, thank you. Hey, hi, thank you for the presentation. Julien Ouaddour from Bank of America.
I have one quick follow-up on Veronika's question about margin. If I understand correctly, your aspiration for margin expansion, is it a little bit front-end loaded in 2026, 2027 with the savings and then maybe, let's say, a little bit more muted after? Question, clear aligner. The market has proven to be a little bit more complex, competitive, macro-sensitive than what you initially thought in 2021. You're taking some assumptions in your new aspiration, both on the market and on the share gains. I'm just wondering, in the case clear aligner market remains muted for longer or just, I mean, you can't really deliver on the margin, can you still commit on your 2030 aspiration for the group 10% growth CAGR and on margin? And last question on buyback. You mentioned better free cash flow, control working capital, less CapEx. You have pretty strong balance sheets.
I mean, I was wondering, sorry, why you have not discussed any buyback for the next five years? Is it something on the table? And if not, why? Thank you.
We'll take the first one, then I think you guys can follow. I think our ambition is we talk about 40-50 basis point average. Then obviously, there is some moment where it might be a bit higher, some moment where it might be a bit lower, and it will depend on, of course, then some of the macro, but also our capability to execute on those sides. Are we going to say that it is front-loaded? No, I do not think that we are going to say that. Do we have the opportunity short-term to improve our EBIT capabilities? Yes, with regard to what we have presented.
Now, I think we don't want to plan and already guide for the next one or two years because this is not the goal of these sessions. I think looking at how we are going to enter into 2026, we'll be able to deliver what is our guidance perspective for 2026 and what it would mean for the next 12-18 months. Obviously, the partnership with Smartee will help here. Liner, then yeah, you can take it, but yeah, go ahead. Good. No, I mean, if you look at, and even if the market stayed muted, I mean, we have a market share roughly in the 3% range. The potential that is out there in the market is tremendous. We have been growing in the higher double-digit range for quite some time. It's about, and I said this, I think it's multiplying the growth.
The potential is there. Now we have the value proposition. We have the right go-to-market with the right agility and the right focus. Plus, we have as well room for a more, let's say, competitive environment when it comes to a COGS level because it is becoming more competitive. We strongly believe that we can deliver on our doubling the weight ambition in the overall revenue with the offering and the setup that we have right now.
Talking about ambition, I mean, I think we presented today, we do have very ambitious growth plans. This is why we reiterated the capital allocation during today's presentation, which means we invest into what we believe brings the biggest return for our investors as well. This is first and foremost our organic growth.
You can imagine if you want to grow double-digit, like around 10% with the company we currently are, you need to reinvest back into the business. To execute on all of those strategic initiatives we presented, this will require allocation of cash as well. This is why as we speak, I can confirm we do not have any plans to do a share buyback.
Thank you very much, Richard Felton from Goldman Sachs. First one, maybe for Florian, you mentioned taking some of the specific elements of Smartee's capabilities and integrating with ClearCorrect. What is the timeline for that process and how quickly can you have a more comprehensive set of products in the market? That is the first one. Second question for Isabel, you outlined the clear opportunities to drive a better free cash conversion.
Could I maybe sort of ask you to push on for a little bit more color on the scale of benefit on CapEx or working capital as we think about assumptions and modeling? Thank you.
Okay, then I take the first one. I think that's a good one. Maybe take it apart. The first manufacturing side, I mean, this is already starting early, not early next year, but already December, January for EMEA and Asia-Pacific on the one hand. Secondly, I think there's a lot of value propositions that I've shown you, complexity evaluator, etc. This is already going to come in end of Q1. It's not something that we have a partnership and now we're discussing how to do it. We have been working on this for quite some time.
This is obviously a combination of Smartee and our own software development teams to make this happen. The first solutions will come to life and be accessible for customers already early next year. Dental Monitoring already started now. Exactly.
In terms of free cash flow conversion, I mean, we deliberately looked at the conversion part to send the strong signal that we believe free cash flow conversion will grow overproportionately to the improvement in terms of margins, in terms of EBIT margin. To think about that as, I think, more a decrease in terms of intensity we need for both the CapEx over revenue as well as the net working capital over revenue. If you estimate something like, let's say, 50 basis points per year, I would not say you are too wrong with that.
Hi, thank you for taking my questions, Hassan Al-Wakeel from Barclays.
Firstly, on implants, can you talk to whether you think the growth in this business will be more skewed to the value side of the business over the coming five years compared to what we've seen over the prior five years, or whether you think whether you expect to see a similar rate of premium share gain given recent innovations? On that, the 20% of IXL users being new customers is good to see. How is this compared to other product or platform launches in the past? Secondly, over the last year, you've announced a lot on the digitization agenda, such as your partnership with SprintRay. Can you talk about pricing dynamics, whether this could get more competitive to your mind, and to what extent do you think we are at an inflection point in terms of penetration and how meaningful a contribution this could be in 2030?
A final one on the guidance for Isabelle, can you talk about how your midterm targets bake in buffer from a softer macro environment such as the one that we are in today? Thank you.
I would start with the implant business, and thanks for your questions. Let's start with your second question. IXL and the new customer acquisition rate we find with IXL. It is truly comparable to what we see with previous launches like BLT, BLX. In a tendency, it is higher even compared to BLX. We see a very nice traction of growing our business with IXL. I think this is also a part of the answer for your first question, that is, are we confident to continue to grow the premium brand at the same pac e relative to value brands in the future? We are confident to do so.
A part of the answer is that we really see it's what Guillaume Daniellot said, and I really want to underline this. We feel very confident that with the Straumann premium brand, we can also convert users today that are today using value brands. With this, also accelerate the growth and keep the growth momentum on the premium side. I would say what you saw in the past is pretty much what we expect also to happen in the future.
Okay, I take the digital side. Obviously, I mean, it is becoming more dynamic from a pricing point of view when you look at iOS. That is why as well what we have shown you.
It's a lot about being able to play all of the different price points and as well having your own, and Isabel alluded to this, our own iOS manufactured, whereas well we have a different gross margin profile on the product to really be able to unlock the potential and read the strategic element to connect as many customers to this platform as possible to really drive the adoption. You mentioned the SprintRay partnership. That's exactly what, and I mentioned this before in one of the slides, is why we have hooked this up to Access because we have the full workflow control. It's really about what kind of value can you create in the workflow, how can you shape your own workflow, and how do you capture workflow at the end?
We did not want to have because the SprintRay Midas is as well available through Henry Schein and other companies, but that's a generic version. We have created a specific version where as well the capsules that you get are directly linked to us. It is like you have the Straumann Midas with the Straumann capsules in a unique workflow where the value lies in the workflow and maybe the specific price. If this Midas is maybe $1,000 or $2,000 more expensive, it actually return investment is very fast because the workflow delivers so much efficiency that we do not have to enter into this me too price war of distributor business.
Maybe we can say from the question also from us, and we are still seeing this business as being a low double-digit contribution of our top line in 2030.
Once again, I think this is from a business model standpoint. We think we have a lot to win from a top line standpoint with digital equipment in the next period, but the clear underlying business model is growing our auto share and our implant share. Because the trap with digital equipment is when you have done a good year, you need to do exactly the same. Growing a year over year means more volume and more capability to sell more scanners. Our goal is really enabling our workflow and selling much more for our differentiated solution. We want to keep our capability to significantly land grab the space and being able to connect with all open scanners out there. We believe that with our value proposition of Sirius X3, we are super well positioned for digitalizing DSOs, digitalizing GPs, and so on.
Still, the business model is a lot on the consumable side.
Regarding your question towards our ambition level, did we explicitly figure in a softer macroeconomic environment? I will try to answer that from a different angle because when you look at Straumann, I mean, what we do best is take challenges and turn them into opportunities, if you ask me. If you look at 2025, we're delivering on the guidance we gave beginning of this year, despite all of the tariff impacts we saw, despite VBP kicking in a little earlier. This is, I think, what we gave ourselves as targets for the year to come. I mean, we're very well aware of the world we're living in. We're very well aware of all of the macroeconomic challenges of the headwinds we have because of the markets we operate in.
Having taken all of that into account, we strongly believe we can deliver this roundabout 10% KEGA growth for the five years to come with a higher EBIT margin of 40-50% on average, 40-50 basis points on average. I think what is important, as Guillaume already stated, we're looking at a KEGA and we're looking at an average EBIT margin improvement. That obviously means there will be some years where everything is playing out in our favor and we can significantly outperform. There can be years, like we example look at this year where you have a VBP and tariffs and a lot of unexpected things piling up where we will potentially be slightly below. This is why we say on average, we strongly believe that this is manageable for us.
Hi, Brandon Vazquez from William Blair.
Guillaume, first for you, if I look at the history of Straumann, the brand that you guys have built, if I look at Roxolid, SLActive, IXL, and implants, these are internally organic generated products. You build these brands on the things that you do. If I look at a lot of the other areas that you're entering now, a lot of it is partnerships. The question to me becomes, can you be a winner in these spaces? Is there something different about those spaces that would allow you to win in them simply in partnerships rather than bringing them inside, investing the R&D needed to be the real winner? Second question, slightly different topic on the clear aligners.
Look, if I look at the top three or the two of the three initiatives to transform that section or that segment, two of the three are focused on cost. We have a lot of competition coming in the space, including some in China that are very low cost. Question here being, is this a coincidence that turning this around is based on two of the three pillars here are lowering costs? Is this simply an environment in clear aligners where cost is going to be kind of your biggest leverage in gaining share over time? Thank you.
Yeah, very good question. Brand power is really strong in dentistry. It is all about driving reliability, at least when it comes to the brand we developed. Also very strong customer intimacy by developing solutions that people ask us directly, and we have been building a very strong relationship.
This is one of the reasons that not all of our solution will be built on partnership because iOS, it's going to be our own. This is one of the major, of course, acquisitions we have done to keep our destiny in our hands when it comes to the digital workflow and especially in the entry side. We believe that with Sirius, we are creating a brand that is also going to have a lot of value in the future when it comes to the entry point of the workflow. Secondly speaking, maybe you have seen, we have branded our platform. It's called the Straumann Access platform because we believe that this platform will drive, as we have seen with the doctor, a lot of value per se.
We want to market the platform as a very significant differentiator for our organization and bringing this platform at the center also of our value proposition independently than the segment you use. We do one partnership with Smartee, but Smartee will not appear in what we do. We are just very transparent to everyone about how we are executing on our transformation, but it's going to be ClearCorrect brand. It's going to be the ClearCorrect material, which is our specific Clear Quartz. It's going to be the ClearCorrect portal, which is going to be, which is our then platform, is the Clear Pilot, which is our planning software, and it's going to be our then ClearCorrect box. Everything is ClearCorrect branded. This is significantly differentiated versus what is existing. I'm with you, we will keep going to develop very strong brand.
It happens that with some, we are going to do, especially what we have done with ThreeShape and in SprintRay on specific partnerships that are going to deliver technology that we do not have or would take too much time to develop. Other than this, all the brands we have been talking about, iOS, clear aligners, and so on, will be our own brands, and we will keep building up strong brands. I think it is a very, very important point as we really strongly believe in brand power for premium pri cing and for further differentiation.
Okay, I take the next one. I would actually object that all three initiatives are driving cost savings and all three initiatives are driving top line.
Because if you go from the value proposition point of view, the technology that we have shown will not only complete the portfolio, but as well drive back office efficiency, which is going to reduce operating cost. On the logistics side or on the production side, you're looking at it, okay, the aligner cost is lower, but if you're fully automated, your service experience is going to transform radically. You are going to deliver an aligner in three to four calendar days, which you can only do at scale and with a lot of automation. Your value proposition on the delivery of the aligners is huge. I mean, you have to wait two or three weeks in Japan or other countries to receive your aligner case. That is really a problem. If you lose an aligner, you cannot wait two or three weeks.
This is a real value proposition as well on the shop line side, what we're doing from a manufacturing partnership on this side. On the go-to-market side, yes, it's focusing on a country that really matters, doubling down. Yes, to save some costs, but as well cost that is reinvested in the markets that really matter, creating critical mass on this side and creating an even better customer care and even better case success partner network where we can significantly as well drive the top line through this because it's always product, it's the service, and it's the experience that need to go hand in hand on this side. To summarize as well what you asked before is like, yes, the aligner market will become more competitive.
If you are out there and you have really high operating costs with all the competition that is coming in, you as an aligner company in the long term will have a problem. We believe now with everything that we changed, we are perfectly positioned now to really attack this market in the right way and gain the market share according to the ambition that we put out.
Maybe I will add one thing, Florian, which is, yes, cost in this business is very important. If you look at the business model, we are talking mass customization. In mass customization, every product is different than from a pure business model standpoint, and that means it is rather costly to manufacture.
You don't have a line where you are going to produce thousands and thousands of implants, and you are able to do economy of scale like this, which means that scale is critical because that's where you can automate. Otherwise, your mass customization is going through human labor, and then you are not able to compete. For us, it was very important to find scale, and scale is the proxy for cost. That's why I would turn it this way. It's really we needed to be successful to find scale to be able to leverage all the strength that we have, which is the synergy with our implant business on GPs, our capability to act fast and make sure that we are leveraging our digital ecosystem that we have created.
If on the back end, you do not have the profitability and the efficiency to deliver at a really lower cost, we would not have been able to compete. It is not so much cost. It was really scale to leverage what we have done. I think we have a really good now setup for being competitive and profitable on that space.
Thank you so much, Harry Gunji, of CIIs. Very simple, sorry, follow-up questions on your FX impact on margins because that seems quite significant. My first question is, the most impact seems to be happening in the gross margin, like a COGS area. Why is the impact so large if 0% of the impact is transactional? What percentage of the COGS is in Swiss francs? What exactly are they? Are the regional gross margins very different for your business?
A lot of questions baked into one. Let's try to go into the big drivers of the translational part. You saw an impact in COGS, although when you look at the differential, you basically were around about 16% growth adjusted at 2021 FX, and then around about 8% for revenue as well as for gross profit. We do have an impact in COGS. Where's that coming from? Basically, we are producing in Switzerland, right, when you look at Villeret. A lot of cost for the product itself occurs here in Switzerland, whilst the revenue is somewhere else. With the consolidation taking place, I mean, from a transactional point as such, this does not really hurt us.
You can imagine this EUR 100 million, let's say euros or dollars, worth of revenue are much lower now, but the cost base still stays the same in terms of COGS. The same thing we have being headquartered here in Switzerland, looking at our OpEx, right? A lot of headquarter functions are based here, and a lot of things we're currently looking into if we can move them somewhere else. It is really purely, if you think about the group P&L, where do we have our revenue and where do the costs occur? You really have this ratio of 20% of cost in Swiss francs. This is true for the COGS part. This is becoming better already starting next year with the Shanghai campus, obviously, and the US being able to produce for themselves.
We have the OpEx part, which is majorly the building you're currently in. If you look at it, 20% of our global cost in CHF, this is massive. You do not really have the leverage anywhere else, but it's pure translational.
Basically, the 20% will just go down from here, and then the impact will just go down. If you could just simplify it, if the Swiss franc appreciates by 1%, how much impact did it have on your margin in the past, and how much will it have going forward? I need to. That'll help make our job easier.
Let us look into this and give you an indication.
On top of my head, this is quite difficult given there's so many because, I mean, you cannot say across all currencies, given we have quite a big exposure towards the US dollar, towards the euro, to the Chinese RMB. It is always a little bit entangled. We will look into that and give you an indication.
Hi, David Adlington from JP Morgan. Just on the revenue side, your 10% organic growth ambition, maybe you could break down your thoughts geographically rather than by business unit. Should we read anything into the fact there's a 26 base rather than 25, i.e., could you be below the 10% ambition next year? Is there anything with the Chinese VBP2 or the Smartee deal in terms of revenue recognition that means we get a rebase effect next year?
Maybe just on the margins very quickly, your ex-currency or margins were above the top of the previous 25%-30% range. It looks like you're expecting less underlying margin expansion over the next three to four years. What's changed in the business? Is it getting more expensive to grow, or is it because you've got more growth coming from newer areas that require more investment?
I will take the first one. You want to follow up? Yeah, I think very schematically, we are going to say we see over 26%-30% isogon digit in very mature regions like EMEA and North America. We see double digit in Latin America and Asia-Pacific. That's, if you will, a little bit the big picture from that 26-30 period from an overall top line growth approach.
Looking at the underlying margin expansion, I mean, what we guide for is pretty much what we delivered over the last four years. If you look at the FX corrected numbers, we went from something a little bit above 30, corrected for DrSmile, to 32.6. If you do the same exercise over the next couple of years, as we say, we are quite confident we can maintain this growth momentum we have seen with all of the initiatives we put into place. From our, how we look at it, it's reiterating what we've done before. Although, I mean, we've seen this at constant currency somehow gets lost in translation a lot of times. This is why we decided to guide on increment year over year.
Just a 26 question in terms of why 26 is a base rather than 25.
I mean, given we have our 2025 guidance out in the market already, right? We are very much confident we will deliver on those targets, which is pretty well aligned with what we guide for today. Given we said, okay, let's look at the first years of our strategy execution, do this midpoint, and then let's guide for the next five years. There was no specific thinking behind if you're aiming at that, that 2025 will be a year that somehow doesn't fit in, but it's really just reiterating our strategy starting from next year.
That definitely was purely because when we look, we said we are at midpoint, then 2021, 2025, we look at the next period, which is 2026. We have talked about just midpoint assessment. That's purely more this kind of approach from cutting really our strategic period into equal part. Thanks. Hi, thank you.
Just a quick follow-up. There's the bad one. Just a quick follow-up on Davi's question. Is there then, putting Smartee benefits aside, any reason why 2026 should deviate materially from 2025 on margin? On innovation, over a third of your revenues today are coming from product launches over 10 years ago. What are the product categories where you have a higher share of legacy products? Is there a plan or is it even possible to phase out legacy products? Could this help increase your price mix? Guillaume, I think in your prepared remark, you mentioned that countries other than China could implement VBP-like policies. I am just curious if you could elaborate a bit on the sales exposure to those countries, give us some timeline, and to what extent is it reflected already in the guidance for 2030? Thank you.
Okay, starting with the margin. I mean, generally, there's no massive deviation we see for next year compared to this year. I think, I mean, big unknown we are all aware of is the VBP in China, and we will hopefully know more how it will actually play out. Meaning, what is the new price point we're looking at, and what are the products that are in or that are not in? Hopefully somewhere in mid Q1. This for me is still the biggest uncertainty when looking at 2026. Answering your question directly, for me, there's no other reason where there should be a deviation towards this year. When it comes to the one third of our business, which is new product, your old products, sorry, it's mainly on the implant side.
It's mainly Straumann, and it's mainly our legacy line, which is our tissue level, where we own somewhat 80% of the overall segment. Those are customers that are very loyal to us, that are very long-term users, and that are also then looking at being developed from our teams. We are not looking at changing this because dentistry being very conservative, if you start removing this, you open up the opportunity for them to look around about what would be available. I think we have a very, very loyal customer base that we want to keep, and I think we are losing around 8%-10% of this business every year from people switching to more advanced portfolio. I think this is a very captive and very profitable segment that we are keeping.
Now we are, of course, every year looking at what we called our then the slow mover, and that are now some SKUs that are not going to be used on a frequently basis. As part of our efficiency program, we are looking at them and removing, of course, those ones from our portfolio to increase manufacturing efficiency. When it comes to VBP-like, I would say there is not so much country that are implementing VBP, so to say, but that are starting to, I would say, recommend local manufacturing for market access. There is nothing which is set in stone yet, but we have seen some of those discussions in India, some of those discussions in Saudi as an example, in order to favor local investment from a manufacturing standpoint. That's the two only countries that we have heard about.
Obviously, this is something that we are strongly looking at and considering in seeing how this would develop if this is really something which will materialize to have access to those markets, taking into consideration that those markets are very interesting from a future growth standpoint. Closer to VBP, I would say, but a bit more interesting than VBP, Sweden is, for example, the next country in Europe which is going through implant reimbursement. They are going to set the price for a certain category of people, and I don't remember the entire detail, but it's people over 60 or 65 years old. It's going to be two implants reimbursed for an overdenture treatment. That is exactly what has happened in Korea.
Korea is so much developed because there have been some government policies that have reimbursed implant treatment for a specific category of people for a specific type of treatment. We are going to see those kinds of reimbursing policies really benefit the category of people that are needing that most. For sure, it will significantly increase the volume of the Swedish market moving forward. This is currently under preparation, which should be executed by the beginning of 2026. We have taken everything into consideration for our long-term ambition, knowing that this is really depending on any kind of government that is taking power in the different countries with regard to the social or liberal kind of agenda that they are going to have on the healthcare side.
When it comes to China, it has been very clearly the fact that it has been in the five-year plan of the Chinese government, the previous five-year plan, to be able to decrease significantly healthcare costs for the Chinese households as healthcare and real estate or, let's say, rental has been the two biggest amounts of spending that they are having, which is somewhat blocking the rest of the consumptions and, of course, fueling then consumption growth. This is what has been the theory that has been applied and very well executed in all the different healthcare segments of China. This is where the VBP has been executed, at least the first time in 2023 that we are seeing in 2025 now happening for execution in 2026.
Daniel Jelovcan, HCKB.
Just to make sure that I got the right interpretation, the 10% growth, it looks like you have so many door openers across the segments, does not need a major innovation until the end of the decade, being it in implants or aligners or do we have a special icing on the cake later? That is the first question.
I think if you look at all the different segments and the significant growth we have, you need to have innovation. I think Andreas put it very clearly, innovation is the name of the game. To the question to Hassan before, saying, how do you expect premium or non-premium growing or it has to be with innovation? We expect to deliver the same out-market performance versus the past period, and it has been with innovation. We have started benefiting from the launch of BLT. We launched BLX.
We are now going to benefit from an IXL launch and another innovation on the premium side during the sequence, during 2026, 2030. Same for Challenger. We have a very strong system that will come also during the period. We are going to see that on iOS as well. Yes, innovation is at the heart of what we do for market share gain and delivering on this ambition.
Okay, quite clear. Last question on Smartee. I understand your rationale, but the Chinese side, I do not really get, I mean, they are not stupid. They do not do it for free. They produce for you 20% cheaper. They give it to you and you sell it under the ClearCorrect brands in your territories. I understand that there are different lines, high line, low line, scalloped, but the scalloped are more popular in Asia where they are anyway.
I do not really get the rationale for them if you can elaborate a bit on that.
I will let the different streamline explanation to Florian. I think it is simple, and I would say it is a huge opportunity for us as an organization. We were looking for scale as a partner, and there are not many. It happens that Smartee, which is still, as Florian clearly expressed, still owned in majority by the founder. He spent a lot, of course, of investment of his own money and energy to start building this company more than 20 years ago. He has really been able to become a significant player among the leaders in the Chinese market. He was having, when we met him, no plan and no investment capability for internationalization.
His benefit is having someone who is going to do the entire internationalization of the technology that he has been setting up, and he's going to have revenue he would have never had otherwise. That will obviously very significantly increase the valuation of his organization by increasing significantly in top line and obviously increasing significantly on the EBIT side because he is going to manufacture for us, but he will not have any cost of sales and zero cost related to this incremental sales that he will be able to recognize at a lower price level, obviously, because it's more as a kind of distributor-like revenue, but with zero cost associated to this. We have been really, I think we met each other with each of us having a significant opportunity of value creation on both sides.
It is where at this level of partnership, this is really what you must have. We have really aligned interest in what we are doing from his side for company valuation and for our side for being able to deliver a very competitive value proposition. From streamline and so on, yes, he has a streamline that I think most of the customers are used to, and this is one of the huge opportunities. I think the choice of streamline is actually a new significant advantage when it comes to ClearCorrect. I think this is something that you can allude to, Florian.
Exactly. No, I mean, the scalloped trim line is actually the most dominant trim line in the whole market. You see in Europe, even Align Technology, for instance, or other competitors, Angel Align, they only started with the scalloped trim line.
We know that some of them are launching now a low trim line as well, but scalloped trim line is very, very prevalent in the North American market, in the Brazilian market, and in the European markets. I think, like Guillaume put it extremely nicely, they're the big players in China. They see how much internationalization costs when you look at Angel, for instance, with your legal entities, with your planning centers, local language, etc. I think Mr. Yao is a founder. That's why he complimented us very well. It's like he wants to do this in a smarter way. I think together with Smartee and Straumann, we can really play a significant role going forward.
Julien Dormois from Jefferies, three questions on my side.
The first one is partly a follow-up to what you mentioned, Guillaume, about reimbursement, increasing the share or the penetration of implants versus conventional treatments. I'm just curious whether you guys have a sense of how the penetration of implants versus conventional treatments has evolved over the past decade and how you see that evolving into the next decade. Maybe what are you doing in terms of lobbying the market, maybe with clinical evidence or anything like this that would accelerate this move? The second question is on value implants. There is a pretty steep difference in market share for value implants on your side between North America and LATAM versus Europe and APAC. Just interested in what is there a specific strategy or initiative that you plan to have to increase your share in value implants in those under-penetrated markets for you guys?
The last question is on orthodontics. I think you mentioned that 40% of the market right now is probably in the hands of GPs. That is actually probably higher than what I had in mind. Just curious how you see this evolving. Is this really GPs taking a bigger share of that pie going forward? What is the reason behind this, please?
I will start with reimbursement. I propose Andreas to take the value expansion. Florian also then on the clear aligner side. I think, Julien, it is a very good question, and I do not think we have done enough on the lobbying side when it comes to bringing more reimbursement. As you know, public policies right now are much more on shrinking those kinds of reimbursements than increasing it, even though you see Sweden is having a different view.
It's obviously because at the end, the total cost of treating those decays and those very important challenges on oral health is having a systematic consequence on global health. I think there is clear evidence of this now. We may not have, let's say, pushed that enough in lobbying activities, and this is something that we are really thinking about, especially associating insurance companies with this. That, especially for the European side, should be really significantly developed because when we see actually the very strong health of the EMEA business, it is a lot related to that caution effect given by reimbursement, either by the private insurance sector, which is driven by the employer, or by also the fact that you have some still social public policies that are reimbursing a part of the implant treatment.
When you compare what's happening in North America or in Asia-Pacific, where you have a big up and down from a macro standpoint, we don't see that in EMEA at all anymore. This is something that we need to push from our, let's say, overall agenda. This is something we are working on because before we were not having the data on how much free and neutral bridge is done and how much implant is done. Actually, the beauty of all those digital strategies is that we are getting those data now. We will be able to see how much of those free and neutral bridge are failing, are working, and being able to compare a lot more data that we have done in the past. What we can see, this is exactly what we have noticed with our ThreeShape partner.
When we look at data from a global standpoint, there are six to seven times more alternative treatments done versus an implant treatment. Then we have so much to do still to grow the market and train dentists doing the gold standard, which is implant treatment.
Yeah, I think value side. On the value side, you're correct. I mean, looking at LATAM, I think the success formula is easy. I mean, this is the home market of Neodent. Neodent is really owning the Brazilian market and is having a strong position there, still expanding. I think the success in North America was somewhat a product that is very much geared to immediacy and full arch indications. Also, we gained a lot of traction in the DSO space based on a very strong sales execution and education that the North American team did. They did an amazing job there.
I think APEC, the topic is twofold. I think it's registration. I mean, you see the biggest value back at APEC, which is China. We are waiting for the registration to happen for Neodent, and that will make a big impact. There are other registrations that we are waiting for. The second part is in APEC, we were focusing a lot of our activities on the premium brand so far, and we continue to do so. Additionally, we will also focus our, let's say, go-to-market, but especially also education pieces for educating starters more and more on Neodent and the value brands there. With this, driving penetration in APEC, and I think EMEA, there's probably not one EMEA. I mean, EMEA, I think we have a very strong penetration already.
We see markets like Italy and Spain, where we have a lot of traction, a lot of market share with our value brands already. We see other markets like Germany and maybe the U.K. and the Nordics that are more premium markets, that are also less immediacy markets. In those markets, I would say we have a bit of a time lag. Also there, it is all about go-to-market and education that will do the trick over time.
Okay. On the other side, your question was, why do we believe that GPs actually are going to contribute more to the growth going forward? It is a very straightforward answer. GPs see a lot more patients. When you are in a specialist practice, you see usually a lot of children, where you can obviously do your aligner treatment on children as well, on mixed dentition.
The older the patient grows, you would not, let's say, you're in the 30s or the 40s, you go to an orthodontist to do this kind of treatment, maybe when you've seen something in advertisement about this, and okay, where do I go? The GP is much more able to identify potential cases for the aligner treatment or aligner therapy. This was my last but one slide, there are certain obstacles to adoption. They need confidence because for them, it's not a one-time stop of this patient. It's a lifetime. Usually, you're not changing your dentist all the time unless you're moving around the world, right? They need the confidence that doing the right cases.
That is why we as well have this kind of complexity elevator to tell them, okay, this is what you can easily do, or we are helping you to do that. We're handholding you. If you create this kind of confidence, you really have already, you have the first step. Secondly, it's about selling this kind of treatment, as well as supporting them with this kind of outcome simulator technology, but as well other means to really convert the patients afterwards. If you have this because you have the access to the pool, you see the indications, it's T&E as well what we have on the implant side, but then as well the confidence, the selling capability. This will increase. With AI and all of the platform technology out there, how it's going to evolve, it will become easier and easier and easier to do.
That is why we believe that on the GP side, they will contribute significantly more growth in the future.
There is one last question left online. Let's take this one and then close the session. CorosCall, could we please have Vic?
Good morning, and thank you for taking the questions. Really appreciate you putting this day together. A couple for me, maybe perhaps you can talk about the puts and takes around your EBIT margin expansion goals and how we should think about peak margins for Straumann. My follow-up question was on M&A. You highlighted M&A included in your updated target plan. I am just curious how you think about the targets for M&A adjacencies and current valuations in the market. Thank you.
Let's start. I think EBIT margin expansion, we have discussed quite exhaustively already.
I think, I mean, the building blocks we saw were really in terms of getting all of those operational and organizational excellence things into the organization to make sure we can grow in a more value-accretive way. On the other hand side, it's obviously the innovation we've seen Andreas presents. Usually when you launch new products, you come in at a higher margin. It's all of the auto improvements. I think it's a mix of a lot of things we can do to positively influence and then combined, obviously, with the headwinds we see in the market, with the VBP in China taking place, with the DSOs on the rise. I think all of that is baked into that guidance.
The volatility we're trying to manage with giving an average guidance over the five-year period because we're quite confident we can deliver on that one. Yeah, when it comes to M&A, while M&A is still a very important part of what we do from scouting for assessing then the space. What is important is that we can achieve our 2030 ambition without M&A from the model that we have been building. Now, every M&A for us that would accelerate our strategic agenda is obviously on the list. We are having regular analysis and discussion and also making sure that we can scout new technology that will allow us to disrupt some of the segment that we have seen. The best example is obviously the intraoral scanner with AlightStar or some potential partnership like Smartee or the SprintRay.
There are some M&A opportunities here that we are looking on a regular basis together with some of our partners, together with the board and each of our business unit and regional leaders. Yes, M&A is still something very important we are looking at. We do not have any, let's say, imminent target as we speak, but we have a lot of potential improvement of our strategic agenda that we are assessing at this moment in time. When it comes to valuation of M&A, it depends a lot about where they are located, what is their current market positions and their current potential of development. I would say it is really depending target by target and especially making sure that we can have a very clear plan of shared value creation. This is what we are looking at especially. With this, Marcel, can we close?
We can. You will have the last word. Just everybody in here, you're invited to our flying lunch. People still, the colleagues will still be outside. We also have some colleagues still of the management board being there. Thank you very much for coming. It was a huge pleasure. Thanks for being here. Safe travels back home. Yeah, the last word is yours, Guillaume.
I think it's time to go. A big thank you for everyone coming. Big thank you to the team for the preparation and for everyone setting that up. I think it's always quite a lot of work for us, but it was really exciting to share all this news, the excitement we have with everything's coming. We are looking forward to see you in all that different meetings and one-to-one and congresses that we are going to share. Thanks again.