Slide 1: Q1 FY2023 Earnings Conference Call
Q1 FY2023 Earnings Conference Call Financial Results & Outlook May 9, 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: Agenda
Agenda 01 Q1 Overview 02 Q1 Financial Results 03 FY2023 Guidance 3
Slide 4: Henry Schein
Henry Schein The Leading Provider of Health Care Products and Related Services to Office-based Dental and Medical Practitioners and Alternate Care Sites* SERVING MORE THAN MORE THAN $12.6B 1 MILLION 22,000 FY2022 GLOBAL NET SALES CUSTOMERS TEAM SCHEIN MEMBERS OPERATIONS IN COMPONENT OF 90 32 S&P 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: Key Takeaways
Key Takeaways: Strong internal sales growth of 6.3% in local currencies (excluding PPE products and COVID-19 Test Kits), reflecting the underlying health of our business. Updated 2023 Guidance to include effects of the Biotech Dental acquisition (refer to slide 14). Strong operating performanc
Slide 7: First Quarter Financial Results
First Quarter Financial Results Worldwide LCI Sales growth of 6.3% when excluding sales of PPE & COVID-19 Test Kits Total Sales growth continues to be impacted by lower pricing of PPE products and lower volume of COVID-19 Test Kits vs. prior year Total Sales growth of -3.8% with LCI* Sales gro
Slide 8: Worldwide Summary
Q1 FY2023 Worldwide Summary* Q1 FY2023 Q1 FY2022 Q1 FY2023 Q1 FY2022 HIGHLIGHTS $ Millions except EPS (GAAP) (GAAP) (Non-GAAP) (Non-GAAP) Strong LCI sales growth of 6.3% (excluding PPE and COVID-19 Test Total Sales $3,060 $3,179 $3,060 $3,179 Kits) across our businesses. Excellent growth in our Tech
Slide 9: Worldwide Sales Summary
Q1 FY2023 Worldwide Sales Summary $ Millions Q1 FY2023 Q1 FY2022 y/y ∆ y/y LCI* ∆ BY GEOGRAPHY Global Dental $1,898 $1,828 3.8% 4.0% 8% Rest of the World Excl. PPE 7.2% 7.4% Global Medical 971 1,172 -17.2% -17.1% 18% Europe Excl. PPE/COVID-19 Test Kits 4.1% 4.2% 74% North America Global Technology/V
Slide 10: Global Dental Sales Summary
Q1 FY2023 Global Dental Sales Summary $ Millions Q1 FY2023 Q1 FY2022 y/y ∆ y/y LCI* ∆ North America Dental Consumables $896 $868 3.3% 1.3% Consumables LCI growth Excl. PPE 8.8% 6.6% excl. PPE was 6.6% in North America Dental and 11.0% North America Dental Equipment 248 237 4.2% 2.6% in International
Slide 11: Global Medical Sales Summary
Q1 FY2023 Global Medical Sales Summary $ Millions Q1 FY2023 Q1 FY2022 y/y ∆ y/y LCI* ∆ North America Medical $951 $1,150 -17.3% -17.3% Medical Sales LCI growth International Medical 20 22 -11.6% -6.3% excl. PPE and COVID-19 Test Kits was 4.2%. Global Medical $971 $1,172 -17.2% -17.1% Excl. PPE/COVID
Slide 12: Technology/VAS Sales Summary
Q1 FY2023 Technology/VAS Sales Summary Excellent sales growth $ Millions Q1 FY2023 Q1 FY2022 y/y ∆ y/y LCI* ∆ exhibited by Henry Schein One, particularly from North America Technology/VAS $166 $156 7.1% 5.4% Dentally in our International businesses and North America practice International Technology
Slide 13: Technology/VAS + Dental Specialty Sales Summary
Q1 FY2023 Technology/VAS + Dental Specialty Sales Summary $ Millions Q1 FY2023 Q1 FY2022 y/y ∆ y/y LCI** ∆ Global Technology/VAS $191 $179 6.8% 6.5% Global Dental Specialties* 233 227 2.6% 4.4% Global Technology/VAS + Dental Specialties $424 $406 4.4% 5.3% % of Total Sales 13.9% 12.8% Our goal is to
Slide 14: Financial Guidance – Full Year 2023
Financial Guidance – Full Year 2023 We are updating our non-GAAP diluted EPS financial guidance for 2023 to include $0.05 to $0.10 dilution for the Biotech Dental acquisition, primarily due to acquisition accounting adjustments for inventory and transaction-related expenses. Our outlook for the unde
Slide 15: ESG Action & Reporting
ESG Action & Reporting Environmental Social Governance • Issued our first TCFD Report • Engaged our executive leadership team to • Issued 2021 Sustainability and with our TCFD Scenario re-evaluate our workplace norms and the CSR Report per SASB and GRI Analysis work in progress way we are working in
Slide 16: Appendix
Appendix 16
Slide 17: Worldwide Financial Results
Q1 FY2023 Worldwide Financial Results* $ Millions Q1 FY2023 Q1 FY2022 y/y ∆ Total Sales $3,060 $3,179 -3.8% Gross Profit 966 973 -0.7% Gross Margin 31.57% 30.60% +97 bps Operating Expense 731 697 -5.0% Operating Income (Non-GAAP) $235 $276 -15.0% Operating Margin (Non-GAAP) 7.68% 8.70% -102 bps Net
Slide 18: PPE & COVID-19 Test Kit Sales Summary
Q1 FY2023 PPE & COVID-19 Test Kit Sales Summary $ Millions Q1 FY2023 Q1 FY2022 y/y ∆ y/y LCI* ∆ Global Dental Consumables PPE $92 $140 -34.2% -34.1% Global Medical PPE 57 94 -39.9% -39.7% Total PPE 149 234 -36.5% -36.4% COVID-19 Test Kits 52 254 -79.4% -79.4% Total PPE & COVID-19 Test Kits $201 $488
Slide 19: GAAP & Non-GAAP Reconciliations
GAAP & Non-GAAP Reconciliations Q1 FY2023 Financial Highlights Henry Schein, Inc. First Quarter 2023 Analyst Presentation Q1 2023 - Financial Highlights (in millions, except per share data) Reconciling Items Amortization Expense from GAAP Restructuring Costs Acquired Intangible Assets Non-GAAP Q1 20
Slide 20: GAAP & Non-GAAP Reconciliations
GAAP & Non-GAAP Reconciliations 2022 Financial Highlights Henry Schein, Inc. First 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 Res