Slide 1: Q2 2023 Earnings Conference Call
Q2 2023 Earnings Conference Call Financial Results & Outlook August 7, 2023
Slide 2: Cautionary Note Regarding Forward-Looking Statements and Use of Non-GAAP Financial Information
Cautionary Note Regarding Forward-Looking Statements and Use of Non-GAAP Financial Information In accordance with the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995, we provide the following cautionary remarks regarding important factors that, among others, could ca
Slide 3: Key Takeaways
Key Takeaways Solid financial results for the second quarter driven by our North America dental businesses and continuing strength in sales of our technology and value-added services businesses Our financial results and guidance demonstrate the strength of the business and continued advancement of o
Slide 4: Q2 Financial and Operational Highlights
Q2 Financial and Operational Highlights Worldwide LCI* Sales Growth Non-GAAP Diluted EPS** 3.3% $1.31 When excluding sales of PPE products & COVID-19 test kits Reflecting solid core business growth offset by continued lower Driven by strength in the North American dental businesses contribution from
Slide 5: Consolidated Results
Q2 FY2023 Consolidated Results* Q2 2023 Q2 2022 Q2 2023 Q2 2022 BY GEOGRAPHY $ Millions except EPS (GAAP) (GAAP) (Non-GAAP) (Non-GAAP) Total Sales $3,100 $3,030 $3,100 $3,030 8% Rest of the World Operating Income $201 $220 $253 $251 19% Europe Operating Margin 6.46% 7.27% 8.16% 8.30% 73% North Ameri
Slide 6: Worldwide Sales Summary
Q2 FY2023 Worldwide Sales Summary $ Millions Q2 2023 Q2 2022 y/y ∆ y/y LCI* ∆ Global Dental $1,957 $1,853 5.6% 2.0% Excl. PPE 7.5% 3.7% Global Medical 950 996 -4.6% -5.3% Excl. PPE/COVID-19 Test Kits 2.8% 2.0% Global Technology/VAS** 193 181 6.7% 5.5% Total Sales $3,100 $3,030 2.3% -0.2% Excl. PPE/C
Slide 7: Progress on BOLD+1 Strategic Priorities
Progress on BOLD+1 Strategic Priorities Objective Quarter Update • Biotech Dental and S.I.N. Implant System acquisitions accelerate the BUILD complementary software, specialty, and services businesses implementation of our strategy, adding high-growth, high-margin products and services businesses to
Slide 8: Value Creation Through Focused M&A
Value Creation Through Focused M&A Expands complementary Invests for Annual high-growth software, growth in core 2023 Acquisitions Strategic Rationale Expected Outcome Revenue specialty and services distribution businesses business • Expands dental implant, • Market leader in France clear aligner bu
Slide 9: Balanced Capital Allocation Strategy
Balanced Capital Allocation Strategy Disciplined Approach to Balance Sheet Management ~$301M YTD Operating Cashflow 1.39x Debt-to-EBITDA July 1, 2023 ratio as of ~$1.8B Available borrowing capacity as of July 1, 2023* Maintain investment grade balance sheet Acquisitions $1.0B+ Committed YTD Strong b
Slide 10: Acquisition Expenses and Acquisition-Related Adjustments
Acquisition Expenses and Acquisition-Related Adjustments 2023 QTD & YTD ($ Millions except EPS) Q2 2023 YTD 2023 Operating Income EPS Operating Income EPS Acquisition Expenses* ($6) ($0.04) ($13) ($0.08) Acquisition-Related Fair Value Adjustments** 16 $0.09 16 $0.09 Total Acquisition Expenses and $1
Slide 11: Financial Guidance – Full Year 2023
Financial Guidance – Full Year 2023 We are affirming our guidance for 2023 non-GAAP diluted EPS attributable to Henry Schein, Inc. of $5.18 to $5.35. This guidance includes the previously announced $0.05 to $0.10 dilution for 2023 acquisitions that have been announced, including Biotech Dental, S.I.
Slide 12: Appendix
Appendix 12
Slide 13: Worldwide Financial Results
Q2 FY2023 Worldwide Financial Results* $ Millions Q2 2023 Q2 2022 y/y ∆ Total Sales $3,100 $3,030 2.3% Gross Profit 975 945 3.1% Gross Margin 31.45% 31.20% +25 bps Operating Expense** 722 694 4.1% Operating Income (Non-GAAP)** $253 $251 0.6% Operating Margin (Non-GAAP)** 8.16% 8.30% -14 bps Net Inco
Slide 14: Global Dental Sales Summary
Q2 FY2023 Global Dental Sales Summary $ Millions Q2 2023 Q2 2022 y/y ∆ y/y LCI* ∆ North America Dental Consumables $897 $881 1.8% 0.0% Excl. PPE 4.5% 2.6% North America Dental Equipment 272 243 12.3% 9.8% North America Dental $1,169 $1,124 4.1% 2.1% International Dental Consumables $617 $561 9.9% 1.
Slide 15: Global Medical Sales Summary
Q2 FY2023 Global Medical Sales Summary $ Millions Q2 2023 Q2 2022 y/y ∆ y/y LCI* ∆ North America Medical $925 $977 -5.3% -5.3% International Medical 25 19 33.7% -5.4% Global Medical $950 $996 -4.6% -5.3% Excl. PPE/COVID-19 Test Kits 2.8% 2.0% COVID-19 Test Kits (Worldwide) $26 $68 -62.0% -62.0% 15 *
Slide 16: Technology/VAS Sales Summary
Q2 FY2023 Technology/VAS Sales Summary $ Millions Q2 2023 Q2 2022 y/y ∆ y/y LCI* ∆ North America Technology/VAS $168 $158 6.0% 4.5% International Technology/VAS 25 23 11.0% 12.7% Global Technology/VAS** $193 $181 6.7% 5.5% *LCI reflects internally generated sales in local currencies excluding acquis
Slide 17: Technology/VAS + Dental Specialty Sales Summary
Q2 FY2023 Technology/VAS + Dental Specialty Sales Summary $ Millions Q2 2023 Q2 2022 y/y ∆ Global Technology/VAS $193 $181 6.7% Global Dental Specialties* 270 234 15.7% Global Technology/VAS + Dental Specialties $463 $415 11.8% % of Total Sales 15.0% 13.7% *Dental Specialties consists of our Implant
Slide 18: PPE & COVID-19 Test Kit Sales Summary
Q2 FY2023 PPE & COVID-19 Test Kit Sales Summary $ Millions Q2 2023 Q2 2022 y/y ∆ y/y LCI* ∆ Global Dental Consumables PPE $88 $114 -23.0% -23.5% Global Medical PPE 49 77 -35.5% -35.9% Total PPE $137 $191 -28.0% -28.5% COVID-19 Test Kits 26 68 -62.0% -62.0% Total PPE & COVID-19 Test Kits $163 $259 -3
Slide 19: GAAP & Non-GAAP Reconciliations
GAAP & Non-GAAP Reconciliations Q2 FY2023 Financial Highlights Henry Schein, Inc. Second Quarter 2023 Analyst Presentation Q2 2023 - Financial Highlights (in millions, except per share data) Reconciling Items Amortization Expense from GAAP Restructuring Costs Acquired Intangible Assets Non-GAAP Q2 2
Slide 20: GAAP & Non-GAAP Reconciliations
GAAP & Non-GAAP Reconciliations 2022 Financial Highlights Henry Schein, Inc. Second Quarter 2023 Analyst Presentation Full Year 2022 Financial Highlights (in millions, except per share data) Reconciling Items Amortization Expense Settlement and Net Gain on Sale of Impairment of from Acquired GAAP Re