Slide 1: Q4 2023 Earnings Conference Call
Q4 2023 Earnings Conference Call Financial Results & Outlook February 27, 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 We are pleased with our performance in the fourth quarter and for the full year 2023, which was in line with our expectations and reflects a solid recovery from last year’s cybersecurity incident Our fourth quarter financial results included strong growth in our Technology and Value-Ad
Slide 4: Q4 Financial and Operational Highlights
Q4 Financial and Operational Highlights Worldwide Sales Growth Non-GAAP Diluted EPS* Global Dental Sales Growth -10.5% $0.66 -10.2% Estimated reduction in sales of $350 million to Cybersecurity incident impacted EPS by Underlying sales growth being offset by the $400 million, or 10% to 12%, due to t
Slide 5: Consolidated Results
Q4 FY2023 Consolidated Results* (in millions of USD except EPS) Q4 2023 Q4 2022 Q4 2023 Q4 2022 BY GEOGRAPHY (GAAP) (GAAP) (Non-GAAP) (Non-GAAP) Total Sales $3,017 $3,371 $3,017 $3,371 9% Rest of the World Operating Income $39 $72 $146 $258 18% Europe Operating Margin 1.28% 2.15% 4.86% 7.65% 73% Nor
Slide 6: Worldwide Sales Summary
Q4 FY2023 Worldwide Sales Summary (in millions of USD) Q4 2023 Q4 2022 y/y ∆ y/y LCI* ∆ Global Dental $1,802 $2,007 -10.2% -10.9% Global Medical 1,003 1,177 -14.9% -17.0% Global Technology/VAS 212 187 13.4% 7.1% Total Sales $3,017 $3,371 -10.5% -12.0% GAAP and Non-GAAP results impacted by Cybersecur
Slide 7: Progress on BOLD+1 Strategic Priorities
Progress on BOLD+1 Strategic Priorities Objective Update • Signed 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 BUILD complementary software,
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 specialty and services distribution Revenue 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 $500M YTD Operating Cashflow 2.31x Debt-to-EBITDA ratio as of December 30, 2023 ~$1.75B Available borrowing capacity as of December 30, 2023 Maintain investment grade balance sheet Acquisitions ~$1.0B Invested YTD
Slide 10: Acquisition Expenses and Acquisition-Related Adjustments
Acquisition Expenses and Acquisition-Related Adjustments 2023 QTD & YTD (in millions of USD except EPS) Q4 2023 Full Year 2023 Operating Income EPS Operating Income EPS Acquisition Expenses* ($4) ($0.03) ($22) ($0.15) Acquisition-Related Fair Value Adjustments** (2) ($0.02) 10 $0.06 Total Acquisitio
Slide 11: Financial Guidance – Full Year 2024
Financial Guidance – Full Year 2024 We are introducing 2024 financial guidance for Total Sales growth and Non-GAAP Diluted EPS. We are also introducing Adjusted EBITDA guidance as we believe this provides investors an additional metric that reflects the performance of the business as we pivot to hig
Slide 12: Appendix
Appendix 12
Slide 13: Worldwide Financial Results
Q4 FY2023 Worldwide Financial Results* Q4 2023 Q4 2022 (in millions of USD except EPS) y/y ∆ (Non-GAAP) (Non-GAAP) Total Sales $3,017 $3,371 -10.5% Gross Profit 925 999 -7.4% Gross Margin 30.66% 29.62% +104 bps Operating Expenses (Non-GAAP)** 779 741 5.1% Operating Income (Non-GAAP)** $146 $258 -43.
Slide 14: Adjusted EBITDA
Adjusted EBITDA (in millions of USD) 2023 2022 Net Income attributable to Henry Schein, Inc. (GAAP) $416 $538 Income attributable to noncontrolling interests 20 28 Net Income (GAAP) 436 566 Interest Income (17) (8) Interest expense 87 35 Income taxes 120 170 Depreciation and Amortization 248 212 Res
Slide 15: Global Dental Sales Summary
Q4 FY2023 Global Dental Sales Summary (in millions of USD) Q4 2023 Q4 2022 y/y ∆ y/y LCI* ∆ North America Dental Consumables $770 $920 -16.3% -11.9% North America Dental Equipment 283 348 -18.6% -12.5% North America Dental $1,053 $1,268 -17.0% -12.1% International Dental Consumables $578 $554 4.4% -
Slide 16: Global Medical Sales Summary
Q4 FY2023 Global Medical Sales Summary (in millions of USD) Q4 2023 Q4 2022 y/y ∆ y/y LCI* ∆ North America Medical $977 $1,160 -15.7% -17.0% International Medical 26 17 35.8% -16.4% Global Medical $1,003 $1,177 -14.9% -17.0% COVID-19 Test Kits (Worldwide) $57 $93 -38.7% -35.2% 16 *LCI reflects inter
Slide 17: Technology/VAS Sales Summary
Q4 FY2023 Technology/VAS Sales Summary (in millions of USD) Q4 2023 Q4 2022 y/y ∆ y/y LCI* ∆ North America Technology/VAS $186 $164 13.4% 6.8% International Technology/VAS 26 23 13.5% 9.8% Global Technology/VAS $212 $187 13.4% 7.1% 17 *LCI reflects internally generated sales in local currencies excl
Slide 18: Technology/VAS + Dental Specialty Sales Summary
Q4 FY2023 Technology/VAS + Dental Specialty Sales Summary (in millions of USD) Q4 2023 Q4 2022 y/y ∆ Global Technology/VAS $212 $187 13.4% Global Dental Specialties* 281 240 17.2% Global Technology/VAS + Dental Specialties $493 $427 15.5% % of Total Sales 16.4% 12.7% *Dental Specialties consists of
Slide 19: GAAP to Non-GAAP Income Statements
FY2023 GAAP to Non-GAAP Income Statements Acquisition 2023 Restructuring & Cybersecurity Impairment of 2023 (in millions of USD except EPS) GAAP Integration Costs Intangible Incident Costs Intangible Assets Non-GAAP Amortization Total Sales $12,339 $12,339 Gross Profit 3,861 3,861 SG&A 2,956 (38) (7
Slide 20: GAAP & Non-GAAP Reconciliations
GAAP & Non-GAAP Reconciliations Q4 FY2023 Financial Highlights Henry Schein, Inc. Fourth Quarter 2023 Analyst Presentation Q4 2023 - Financial Highlights (in millions, except per share data) Reconciling Items Cybersecurity Incident- Restructuring and Acquisition Intangible Professional Fees and Impa
Slide 21: GAAP & Non-GAAP Reconciliations
GAAP & Non-GAAP Reconciliations 2023 Financial Highlights Henry Schein, Inc. Fourth Quarter 2023 Analyst Presentation Full Year 2023 Financial Highlights (in millions, except per share data) Reconciling Items Cybersecurity Incident- Restructuring and Acquisition Intangible Professional Fees and Impa