Slide 1: Q2 2024 Earnings Conference Call
Q2 2024 Earnings Conference Call Financial Results & Outlook August 6, 2024
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 second quarter financial results, including strong operating cashflow, that reflected stable end markets Updating our 2024 full-year financial guidance, given the challenging economic environment in certain markets, as well as the delay in recovery from the cyber incident Remain
Slide 4: Q2 Financial Highlights
Q2 Financial Highlights Worldwide Sales Growth* Non-GAAP Diluted EPS** +1.1% $1.23 Experiencing improving sales trends in our Foreign currency exchange impact on our second distribution businesses quarter diluted EPS was unfavorable by approximately one cent versus the prior year Global Dental Globa
Slide 5: Consolidated Results
Q2 2024 Consolidated Results* Q2 2024 Q2 2023 Q2 2024 Q2 2023 BY GEOGRAPHY (in millions of USD except EPS) (GAAP) (GAAP) (Non-GAAP) (Non-GAAP) 9% Total Sales $3,136 $3,100 $3,136 $3,100 Rest of the World Operating Income $159 $201 $242 $253 18% Europe Operating Margin 5.09% 6.46% 7.75% 8.16% 73% Nor
Slide 6: Worldwide Sales Summary
Q2 2024 Worldwide Sales Summary (in millions of USD) Q2 2024 Q2 2023 y/y ∆ y/y LCI* ∆ Global Dental $1,924 $1,957 -1.7% -2.1% Global Medical 998 950 5.0% -4.3% Global Technology/VAS 214 193 10.8% 3.9% Total Sales $3,136 $3,100 1.1% -2.4% *LCI reflects internally generated sales in local currencies e
Slide 7: Progress on BOLD+1 Strategic Priorities
Progress on BOLD+1 Strategic Priorities Objective Update • Closed TriMed acquisition to enter the high-growth high-margin foot and ankle, hand and wrist segments of the orthopedic market • With Biotech Dental and S.I.N. Implant System acquisitions, became the #3 Dental Implant/Biomaterials business
Slide 8: Value Creation Through Focused M&A
Value Creation Through Focused M&A Expands Invests for complementary Annual growth in core Acquisition Strategic Rationale Expected Outcome high-growth software, Revenue specialty and services distribution business businesses • Expand product offering and • Strengthens relationship with existing pro
Slide 9: Balanced Capital Allocation Strategy
Balanced Capital Allocation Strategy Disciplined Approach to Balance Sheet Management $493M YTD Operating Cashflow 2.5x Debt-to-EBITDA ratio as of June 29, 2024 $552M* Remaining share Maintain investment grade repurchase balance sheet authorization as of 8/5/2024 Acquisitions $181M Invested YTD Stro
Slide 10: Financial Guidance – FY2024
Financial Guidance – FY2024 Our 2024 total sales growth is now expected to be approximately 4% to 6% over 2023, versus our previous guidance of 8% to 10% growth. The previous guidance anticipated a stronger economy as well as a faster recovery from the cyber incident. We now expect non-GAAP diluted
Slide 11: Appendix
Appendix 11
Slide 12: Worldwide Financial Results
Q2 2024 Worldwide Financial Results* Q2 2024 Q2 2023 (in millions of USD except EPS) y/y ∆ (Non-GAAP) (Non-GAAP) Total sales $3,136 $3,100 1.1% Gross profit 1,018 975 4.4% Gross margin 32.46% 31.45% +101 bps Operating expenses (Non-GAAP)** 776 722 7.3% Operating income (Non-GAAP)** $242 $253 -4.0% O
Slide 13: Adjusted EBITDA
Adjusted EBITDA (in millions of USD) Q2 2024 Q2 2023 Net Income attributable to Henry Schein, Inc. (GAAP) $104 $140 Income attributable to noncontrolling interests 1 8 Net Income (GAAP) 105 148 Interest income (6) (3) Interest expense 32 19 Income taxes 33 41 Depreciation and amortization 74 59 Rest
Slide 14: Global Dental Sales Summary
Q2 2024 Global Dental Sales Summary (in millions of USD) Q2 2024 Q2 2023 y/y ∆ y/y LCI* ∆ North America Dental Consumables $849 $897 -5.3% -5.2% North America Dental Equipment 280 272 2.7% 2.9% North America Dental $1,129 $1,169 -3.4% -3.3% International Dental Consumables $635 $617 2.9% 1.0% Intern
Slide 15: Global Medical Sales Summary
Q2 2024 Global Medical Sales Summary (in millions of USD) Q2 2024 Q2 2023 y/y ∆ y/y LCI* ∆ North America Medical $970 $925 4.9% -4.3% International Medical 28 25 9.0% -1.9% Global Medical $998 $950 5.0% -4.3% 15 *LCI reflects internally generated sales in local currencies excluding acquisitions from
Slide 16: Technology/VAS Sales Summary
Q2 2024 Technology/VAS Sales Summary (in millions of USD) Q2 2024 Q2 2023 y/y ∆ y/y LCI* ∆ North America Technology/VAS $186 $168 10.8% 2.9% International Technology/VAS 28 25 11.0% 10.5% Global Technology/VAS $214 $193 10.8% 3.9% 16 *LCI reflects internally generated sales in local currencies exclu
Slide 17: Technology/VAS + Dental Specialty Sales Summary
Q2 2024 Technology/VAS + Dental Specialty Sales Summary (in millions of USD) Q2 2024 Q2 2023 y/y ∆ Global Technology/VAS $214 $193 10.8% Global Dental Specialties* 279 260 7.2% Global Technology/VAS + Dental Specialties $493 $453 8.7% % of Total Sales 15.7% 14.6% *Dental Specialties consists of our
Slide 18: GAAP to Non-GAAP Income Statements
Q2 2024 GAAP to Non-GAAP Income Statements Acquisition Change in Q2 2024 Restructuring Cyber Incident Litigation Q2 2024 (in millions of USD except EPS) Intangible Contingent GAAP Costs Costs Settlements Non-GAAP Amortization Consideration Total sales $3,136 $3,136 Gross profit 1,018 1,018 Selling,
Slide 19: GAAP & Non-GAAP Reconciliations: Q2 2024 Financial Highlights
GAAP & Non-GAAP Reconciliations Q2 2024 Financial Highlights Henry Schein, Inc. Second Quarter 2024 Analyst Presentation Q2 2024 - Financial Highlights (in millions, except per share data) Reconciling Items Cyber Incident-Insurance Acquisition Intangible Proceeds, Net of Third-Party Change in Contin
Slide 20: GAAP & Non-GAAP Reconciliations: 2023 Financial Highlights
GAAP & Non-GAAP Reconciliations 2023 Financial Highlights Henry Schein, Inc. Second Quarter 2024 Analyst Presentation Full Year 2023 Financial Highlights (in millions, except per share data) Reconciling Items Cyber Incident- Restructuring and Acquisition Intangible Third-Party Impairment of Impairme