At this point, based on the data available, Tabeo would not expect many new aligner case starts linked to SDC UK.

First, our Lenders prefer to provide refunds - and will only do so as/when justified. Most customers are not covered by the Lifetime Smile Guarantee (LSG) from SDC UK. Those customers that qualify for LSG would only receive pro rata refunds for aligners that they i) did not open/use and ii) return to Tabeo at their own costs.

Second, the customers from SDC often chose the same due to price. In other words, the customers did not want to pay for Invisalign or would not be able to afford it. We do not expect the new situation to change the customers’ circumstances.

The big opportunity will likely be to provide retainers for SDC UK customers. In the last 3 years, over 100,000 SDC UK customers have completed aligner treatments and many will regularly purchase retainers.

All retainers are self-pay. SDC UK customers have to pay for retainers separately once they complete their aligner treatment. SDC UK quoted a price of £80 per set (e.g. upper and lower combined). SDC UK recommended to buy a new retainer set every 6 months.

Our Lenders have no exposure to retainers.