Slide 1: Q2 FY2022 Earnings Conference Call
Q2 FY2022 Earnings Conference Call Financial Results & Outlook August 2, 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 Q2 Overview 02 Q2 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 Q2 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 Q2 Results Reflect:
Our Q2 Results Reflect: ▪ Executing on our BOLD+1 Strategic Plan: to better leverage functions, talent, processes, and systems to maximize efficiency and performance and enhance our customer experience ▪ Businesses exhibiting consistent and sustainable growth ▪ Strength of the company’s management,
Slide 7: Second Quarter Financial Results
Second Quarter Financial Results ▪ Total Sales growth of 2.1% with LCI* Sales growth of 2.4% ▪ Total Sales growth impacted by PPE & COVID-19 related products and foreign exchange ▪ Worldwide LCI Sales growth of 6.7% when excluding PPE & COVID-19 related products ▪ GAAP diluted EPS of $1.16 ▪ Affirmi
Slide 8: Worldwide Summary
Q2 FY2022 Worldwide Summary* Q2 FY2022 Q2 FY2021 Q2 FY2021 $ Millions except EPS HIGHLIGHTS (GAAP) (GAAP) (Non-GAAP) 2.1% Total growth, LCI growth of 2.4%, 6.7% growth excluding PPE Total Sales $3,030 $2,967 $2,967 & COVID-19 related products. Strong growth in Medical, Technology/VAS and Dental Equi
Slide 9: Worldwide Sales Summary
Q2 FY2022 Worldwide Sales Summary $ Millions Q2 FY2022 Q2 FY2021 y/y ∆ y/y LCI ∆ BY GEOGRAPHY Global Dental $1,853 $1,912 -3.1% -0.3% 8% Rest of the World EXCLUDING PPE/COVID 0.5% 3.5% Global Medical 996 902 10.3% 6.7% 18% Europe EXCLUDING PPE/COVID 18.1% 13.6% 74% North America Global Technology/VA
Slide 10: Global Dental Sales Summary
Q2 FY2022 Global Dental Sales Summary $ Millions Q2 FY2022 Q2 FY2021 y/y ∆ y/y LCI ∆ NA Dental Consumables $879 $902 -2.5% -3.5% Dental performance driven by growth in equipment Excl. PPE/COVID 3.4% 2.2% sales offset by y/y declines NA Dental Equipment 245 227 7.6% 8.1% in PPE. North America Dental
Slide 11: Global Medical Sales Summary
Q2 FY2022 Global Medical Sales Summary $ Millions Q2 FY2022 Q2 FY2021 y/y ∆ y/y LCI ∆ Continued strength in North America Medical $977 $875 11.6% 7.6% Medical sales led by sales of Non- International Medical 19 27 -30.4% -22.1% PPE/COVID-19 related products in Global Medical $996 $902 10.3% 6.7% Nor
Slide 12: Technology/VAS Sales Summary
Q2 FY2022 Technology/VAS Sales Summary $ Millions Q2 FY2022 Q2 FY2021 y/y ∆ y/y LCI ∆ Accelerating growth North America Technology/VAS $158 $131 20.5% 10.4% exhibited by Henry Schein One International Technology/VAS 23 22 3.5% 13.4% Global Technology/VAS $181 $153 18.1% 10.8% 12
Slide 13: Technology/VAS + Dental Specialty Sales Summary
Q2 FY2022 Technology/VAS + Dental Specialty Sales Summary $ Millions Q2 FY2022 Q2 FY2021 y/y ∆ y/y LCI ∆ Global Technology/VAS $181 $153 18.1% 10.8% Global Dental Specialties* 242 235 3.0% 6.6% Global Technology/VAS + Dental Specialties $423 $389 9.0% 8.2% % of Total Sales 14.0% 13.1% Our goal is to
Slide 14: Financial Guidance – Full Year 2022
Financial Guidance – Full Year 2022 As of August 2, 2022* Previous Revised Outlook Outlook Total Sales growth over 2021** 5% to 8% 3% to 6% COVID Test Kit Sales decline over 2021 -15% to -25% -25% to -30% FY2022 Operating Margin expansion over +39 to 44 bps 2021 GAAP Operating Margin FY2022 Operatin
Slide 15: ESG Action & Reporting
ESG Action & Reporting ENVIRONMENTAL SOCIAL GOVERNANCE • In Q3, expect to publish first TCFD report • Continued commitment to our Team • In Q3, expect to publish our 2021 CSR on climate risks and opportunities with Schein Members’ health and safety to report in accordance with GRI and plans to condu
Slide 16: Appendix
Appendix 16
Slide 17: PPE & COVID-19 Related Products Sales Summary
Q2 FY2022 PPE & COVID-19 Related Products Sales Summary $ Millions Q2 FY2022 Q2 FY2021 y/y ∆ y/y LCI ∆ NA Dental Consumable PPE & COVID-19 related products $85 $133 -36.3% -36.2% Int'l Dental Consumable PPE & COVID-19 related products 29 49 -39.5% -35.2% Global Medical PPE & COVID-19 related product
Slide 18: GAAP & Non-GAAP Reconciliations
GAAP & Non-GAAP Reconciliations Q2 2022 Financial Highlights Henry Schein, Inc. Second Quarter 2022 Analyst Presentation Q2 2022 - Financial Highlights (in millions, except per share data) Reconciling Items GAAP Restructuring Costs Settlement and Litigation Non-GAAP Q2 2021 Q2 2022 Growth 2021 2022
Slide 19: GAAP & Non-GAAP Reconciliations
GAAP & Non-GAAP Reconciliations 2021 Financial Highlights Henry Schein, Inc. Second 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 Liti