Slide 1: Q3 FY2022 Earnings Conference Call
Q3 FY2022 Earnings Conference Call Financial Results & Outlook November 1, 2022
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: Agenda
Agenda 01 Q3 Overview 02 Q3 Financial Results 03 FY2022 Guidance 3
Slide 4: Largest Provider of Health Care Products and Related Services to Office-based Dental and Medical Practitioners
Largest Provider of Health Care Products and Related Services to Office-based Dental and Medical Practitioners Operations or Affiliates in $12.4B 1M+ ~22,000 FY2021 Global Customers Team Schein Members 32 Net Sales Countries and Territories Component of Q3 FY2022 Sales Years in Business Fortune 500
Slide 5: Our BOLD+1 Strategic Priorities
Our BOLD+1 Strategic Priorities BUILD complementary OPERATIONALIZE One software, specialty, and services Distribution to deliver exceptional businesses for high growth customer experience, increased efficiency and sales growth LEVERAGE One Schein to DRIVE digital transformation broaden and deepen fo
Slide 6: Our Q3 Results Reflect:
Our Q3 Results Reflect: ▪ Management is highly focused on increasing productivity and margins across each of our businesses, delivering 55bps non-GAAP operating margin expansion. ▪ Overall, we are executing to plan, narrowing our 2022 non-GAAP diluted EPS guidance range which reflects our confidence
Slide 7: Third Quarter Financial Results
Third Quarter Financial Results ▪ Total Sales growth of -3.5% with LCI* Sales growth of -2.4% ▪ Total Sales growth impacted by market declines in PPE pricing and reduced demand and pricing for COVID-19 test kits, as well as a strong US dollar ▪ Worldwide LCI Sales growth of 6.8% when excluding PPE &
Slide 8: Worldwide Summary
Q3 FY2022 Worldwide Summary* Q3 FY2022 Q3 FY2021 Q3 FY2022 Q3 FY2021 $ Millions except EPS HIGHLIGHTS (GAAP) (GAAP) (Non-GAAP) (Non-GAAP) Solid underlying sales growth of 6.8% (excluding PPE and COVID- Total Sales $3,067 $3,178 $3,067 $3,178 19 Test Kits) across our businesses. Excellent growth in o
Slide 9: Worldwide Sales Summary
Q3 FY2022 Worldwide Sales Summary $ Millions Q3 FY2022 Q3 FY2021 y/y ∆ y/y LCI ∆ BY GEOGRAPHY Global Dental $1,785 $1,823 -2.1% 1.2% 8% Rest of the World Excl. PPE 2.3% 5.8% Global Medical 1,106 1,185 -6.7% -8.8% 15% Europe Excl. PPE/COVID-19 Test Kits 12.2% 9.3% 77% North America Global Technology/
Slide 10: Global Dental Sales Summary
Q3 FY2022 Global Dental Sales Summary $ Millions Q3 FY2022 Q3 FY2021 y/y ∆ y/y LCI ∆ North America Dental Consumables $865 $878 -1.6% -3.6% Dental performance driven by growth in North America Excl. PPE 6.2% 3.8% Equipment sales as well as North America Dental Equipment 266 237 12.8% 12.8% Consumabl
Slide 11: Global Medical Sales Summary
Q3 FY2022 Global Medical Sales Summary Continued strength in $ Millions Q3 FY2022 Q3 FY2021 y/y ∆ y/y LCI ∆ Medical sales led by sales of Non- North America Medical $1,088 $1,162 -6.3% -8.7% PPE/COVID-19 Test Kits in North America. International Medical 18 23 -25.1% -12.9% Sales LCI growth excl. Glo
Slide 12: Technology/VAS Sales Summary
Q3 FY2022 Technology/VAS Sales Summary Solid sales growth $ Millions Q3 FY2022 Q3 FY2021 y/y ∆ y/y LCI ∆ exhibited by Henry Schein One North America Technology/VAS $155 $149 4.1% 2.5% Sales growth was impacted by the International Technology/VAS 21 21 1.7% 16.5% expiration of a government contract.
Slide 13: Technology/VAS + Dental Specialty Sales Summary
Q3 FY2022 Technology/VAS + Dental Specialty Sales Summary $ Millions Q3 FY2022 Q3 FY2021 y/y ∆ y/y LCI ∆ Global Technology/VAS $176 $170 3.8% 4.2% Global Dental Specialties* 223 226 -1.4% 2.5% Global Technology/VAS + Dental Specialties $399 $396 0.8% 3.2% % of Total Sales 13.0% 12.5% Our goal is to
Slide 14: Financial Guidance – Full Year 2022
Financial Guidance – Full Year 2022 Previous Revised As of November 1, 2022* Outlook Outlook Total Sales growth over 2021** 3% to 6% 1.5% to 2.5% COVID-19 Test Kit Sales decline over 2021 -25% to -30% 2022 Non-GAAP Operating Margin expansion +20 to 25 bps over 2021 Non-GAAP Operating Margin 2022 Non
Slide 15: ESG Action & Reporting
ESG Action & Reporting ENVIRONMENTAL GOVERNANCE SOCIAL • Working on SBTi readiness and supply • Continued commitment to TSM health and • Issued 2021 Sustainability and CSR Report chain climate roadmap towards our safety to drive a culture of overall wellness per SASB and GRI reporting framework carb
Slide 16: Appendix
Appendix 16
Slide 17: PPE & COVID-19 Test Kits Sales Summary
Q3 FY2022 PPE & COVID-19 Test Kits Sales Summary $ Millions Q3 FY2022 Q3 FY2021 y/y ∆ y/y LCI ∆ North America Dental Consumables PPE $71 $131 -45.8% -46.1% Int'l Dental Consumables PPE 23 39 -41.8% -34.9% Global Medical PPE & COVID-19 Test Kits 150 333 -55.0% -55.1% Total PPE & COVID-19 Test Kits $2
Slide 18: GAAP & Non-GAAP Reconciliations
GAAP & Non-GAAP Reconciliations Q3 FY2022 Financial Highlights Henry Schein, Inc. Third Quarter 2022 Analyst Presentation Q3 2022 - Financial Highlights (in millions, except per share data) Reconciling Items GAAP Restructuring and Integration Costs Gain on Sale of Equity Investment Non-GAAP Q3 2021
Slide 19: GAAP & Non-GAAP Reconciliations
GAAP & Non-GAAP Reconciliations 2021 Financial Highlights Henry Schein, Inc. Third Quarter 2022 Analyst Presentation Full Year 2021 Financial Highlights From Continuing Operations (in millions, except per share data) Reconciling Items Settlement and Net Gain on Sale of GAAP Restructuring Costs Litig