Henry Schein, Inc. · NASDAQ:HSIC
Henry Schein — Dental Group Practice Association meeting (2011)
23 slides from Henry Schein's conference presentation, 2011
Slide 1: Welcome to the Dental Group Practice Association meeting
1 • It is a pleasure to join you today for the Dental Group Practice Association meeting. • Let me begin by saying, on behalf of everyone at Henry Schein, • how very much we appreciate dental service organizations as a segment of increasing importance in the profession, • and reiterating our commitm
Slide 2: Henry Schein: largest distributor to office-based practitioners
2 • Henry Schein has become the largest distributor of health care products and services to office-based dental, medical and animal health practitioners. A. 14,000 Team Schein Members, including more than 3,100 field sales consultants and specialists and 1,600 telesales representatives. B. More than
Slide 3: Financial growth since 1995 NASDAQ listing
3 • Our financial growth since becoming a publicly listed company on NASDAQ in 1995 has been steadily growing stronger. • During that time, • Sales have soared from $616 million to $7.5 billion in 2010, a CAGR of 18%, • and our Earnings Per Share have seen a CAGR of 17%. • We have expanded Internati
Slide 4: Commitment to five constituencies
4 • Henry Schein remains committed to our five constituencies. • Our supplier partners, • who rely on us to develop the closest possible relationship with our customers, and offer our suppliers’ products as solutions to practice needs. • Our customers, • who rely on Henry Schein to help improve prac
Slide 5: Ranked first for corporate social responsibility
5 • Once again, for 2011 we were ranked first in our industry for corporate social responsibility in Fortune’s list of the World’s Most Admired Companies. • We also led our competitors in the “Wholesalers: Health Care” industry in the category of Global Competitiveness.
Slide 6: Corporate social responsibility and Henry Schein Cares
6 • Corporate social responsibility has become a requisite for companies around the world. • However, Henry Schein has been a leader in this area for years. • Our corporate social responsibility initiatives through Henry Schein Cares have been successful because we adhere to a philosophy of enlighte
Slide 7: Global influences affecting the dental market
7 • Let’s quickly look at some of the most important global influences that are affecting the worldwide dental market. 1. A sluggish and uncertain world economy 2. Demographic shifts 3. Increasing government prevalence in health care 4. Consolidation of health care 5. Health care specialization and
Slide 8: Sluggish and uncertain world economy
8 In January at the World Economic Forum there was more optimism about the global economy than in 2010 or 2009, but still concerns about commodity price inflation, an unstable currency order and very slow recovery in the developed world, especially in the United States. There was not much
Slide 9: Demographic shifts
9 • Our market continues to be reshaped by demographic shifts. • There is a growing world population. • Every day the world’s population grows by more than 200,000. • There is a greater percentage of younger people overall. • Today, almost half of the world’s population of 6.5 billion is under age 2
Slide 10: Health care reform and government involvement
10 • One global influence that is felt most acutely in the United States is health care reform – • government participation and regulation in health care markets, with a focus on cost control. • Health care reform impacts cost control; increase in technology; access to care; outcome-based reimbursem
Slide 11: Consolidation of health care
11 • We are seeing consolidation of health care at all levels: manufacturers, distributors and customers. • Driven by governmental requirements, economic uncertainty, financial pressure and lifestyle factors. • Manufacturers are expanding distribution, distributors are increasing manufacturing and c
Slide 12: Health care specialization and shifting settings
12 • The delivery of health care is specializing and the settings are shifting, driven by clinical advances. • Providers are specializing and adding new procedures to drive income. • At Henry Schein, we have recognized this shift with the creation of our Dental Specialties Group. • New care settings
Slide 13: Technology and social media revolution
13 • Accelerating technology advances and the increase use of social media is a revolution, and we all must be part of it. • At Henry Schein, we are committed to enhancing our marketing, selling and communications capabilities over the Internet and through mobile devices. • Dental practitioners and
Slide 14: Important dental segment trends
14 • In addition to these global influences, there are several important dental segment trends that are affecting our company and the members of the Dental Group Practice Association. • Among these are: 1. The impact of economy on DSOs 2. The outlook for DSOs and traditional practices 3. Demographic
Slide 15: Impact of the economy on dentistry
15 • First, let’s look at the economy, which has been very challenging for dentists in most of the developed countries. • From a short-term perspective, the economics of dentistry generally mirror that of the larger economy. • Dentists typically do not see a downturn in their productivity until well
Slide 16: Outlook for DSOs versus traditional practices
16 • Compared to traditional dental practices, the future growth of DSOs is very optimistic for a number of reasons: 1. Cost of investment for a graduating dentist. • In 2008, only 9% of the graduating students were debt- free at graduation. • 79% of the students owed $100,000 or more and 51% owed $
Slide 17: Demographic trends in dentistry
17 • Recent demographic trends in dentistry are continuing, and bode well for the DSO side of dentistry. 1. Gender distribution in the profession continues to become more balanced. • Women are becoming dentists in far larger numbers than in the 1970s and 1980s. • According to the ADA, 44.5% of 2008
Slide 18: Dental innovations: implants and digital CAD-CAM
18 • We see two important innovations that will affect the dental profession in the future. 1. Expanded use of implants by general dentists for simple and moderate procedures. • The use of implants will be easier for general dentists to understand with clinically targeted education. • Implant system
Slide 19: Outlook for dental schools
19 • Dental demand by an aging population means that the future of dentistry is bright, and so is the future of dental schools. • In the past decade, eight new dental schools have opened, and 10 new schools are under serious consideration. • New dental schools are mostly privately-owned by osteopath
Slide 20: Role of private equity firms in dentistry
20 • As we all know, there also has been the entry of private equity firms into the dental segment in the past few years. • This infusion of capital in DSOs is an important way to expand access to oral health care in more locations across the country. • However, the role of private equity firms in d
Slide 21: Importance of choosing a partner
21 • This leads me to my final topic today – • partnership and the importance of choosing a partner: • Who shares your long-term commitment to practice building; • Who understands the market and has the strength to weather challenging economic conditions; • Who gives back to the dental profession an
Slide 22: Technology leadership and ConnectDental
22 • It also is important to choose a partner who recognizes the importance of technology. • We are committed to being the technology leader in the markets we serve, • providing our customers with software, hardware and networking support and playing a consultative role in building their practices.
Slide 23: Conclusion
23 • In conclusion, we should all remember that even during challenging times, • Henry Schein and the many members of the Dental Group Practice Association who we serve represent the very best that the dental community has to offer. • By remaining committed to each other, • and by working together t
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