Henry Schein, Inc. · NASDAQ:HSIC

Henry Schein — Q4 2024 Earnings Presentation

22 slides from Henry Schein's earnings presentation, Feb 25, 2025

  1. Slide 1: Q4 2024 Earnings Conference Call

    Q4 2024 Earnings Conference Call Financial Results & Outlook February 25, 2025

  2. 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

  3. Slide 3: Key Takeaways

    Key Takeaways Fourth-quarter financial results and full-year 2025 guidance are consistent with the preliminary financial results and guidance provided on January 29th . 2025 guidance of 2% to 4% revenue growth and non-GAAP EPS of $4.80 to $4.94. 2025 is expected to be the base year from which to gro

  4. Slide 4: Q4 Financial Highlights

    Q4 Financial Highlights* Total Global Sales Growth Operating Cash Flow Non-GAAP Diluted EPS** $1.19 +5.8% $204M 2024 operating cash flow of $848 million, +5.5% local currency internal sales growth (LCI) Compares with $0.66 in Q4 2023 up $348 million compared with 2023 (+6.6% LCI growth excluding sal

  5. Slide 5: Consolidated Results

    Q4 2024 Consolidated Results* (in millions of USD Q4 2024 Q4 2023 Q4 2024 Q4 2023 Sales: except EPS) y/y ∆ y/y ∆ (GAAP) (GAAP) (Non-GAAP) (Non-GAAP) Sales growth of 5.8% reflects 5.5% LCI sales growth, 0.7% sales growth from Total Sales $3,191 $3,017 5.8% $3,191 $3,017 5.8% 9% and a 0.4% sales decre

  6. Slide 6: Henry Schein Sales Performance

    Q4 2024 Henry Schein Sales Performance LCI Growth Total % Excl. PPE Products Sales Sales LCI & COVID Commentary ($’million) Growth % Growth % Test Kits • US merchandise LCI sales growth of 4.8% (6.5% excluding sales of PPE products) Global Dental Merchandise $1,145 6.2% 6.4% 7.3% • Int’l Dental merc

  7. Slide 7: Global Distribution & Value-Added Services Group

    Q4 2024 Global Distribution & Value-Added Services Group Reflects Continued Improving Sales Sales Growth (%) 8.00% 7.3% 7.4% Sales: 7.00% 5.8% 5.9% 5.9% sales growth reflects 5.8% internal sales growth.9% 6.00% 5.2% 5.3% 5.00% Internal sales growth was Rest of the World 4.00% 7.3% excluding sales of

  8. Slide 8: Global Specialty Products Group

    Q4 2024 Global Specialty Products Group Driven By Good Growth in Implants, Biomaterials and Endodontics Sales Growth (%) 8.00% 7.00% 7.2% Sales: 6.00% 5.0% 7.2% sales growth reflects 5.0% internal 5.00% sales growth, driven by strong growth in 4.00% 3.00% our global dental implants and 2.00% biomate

  9. Slide 9: Global Technology Group

    Q4 2024 Global Technology Group PMS and RCM Sales Continue to Grow Well Sales Growth (%) Sales: 2.50% 2.4% sales growth reflects 2.1% internal 2.4% 2.40% sales growth, driven by Revenue Cycle 2.30% Management and Practice Management 2.20% 2.1% Software, with double-digit growth in 2.10% Ascend and i

  10. Slide 10: Successfully Advanced our 2022 to 2024 BOLD+1 Strategic Priorities

    Successfully Advanced our 2022 to 2024 BOLD+1 Strategic Priorities The successful implementation of our BOLD+1 Strategic Plan is driving growth and efficiency Build Operationalize Leverage Digital Outstanding high-growth • Focus on customer • Implemented “blended • Established Digital high-margin bu

  11. Slide 11: Value Creation Through Focused M&A

    Value Creation Through Focused M&A Expands complementary Invests for growth Annual high-growth software, in core Acquisition Strategic Rationale Expected Outcome specialty and services distribution Revenue businesses business • Strengthens relationship with existing • Expand product offering and $52

  12. Slide 12: Balanced Capital Allocation Strategy

    Balanced Capital Allocation Strategy Disciplined Approach to Balance Sheet Management $848M Full Year Operating Cashflow 2.3x Debt-to-EBITDA ratio as of December 28, 2024 $880M* Remaining share repurchase Maintain investment grade authorization as of balance sheet 2/25/2025 Acquisitions $230M Invest

  13. Slide 13: Financial Guidance – FY2025

    Financial Guidance – FY2025 Guidance assumes modest improvement in the dental and medical markets during the year and is supported by strategic initiatives outlined in our strategic plan and recent acquisitions, as well as a positive contribution from our restructuring plan. This is partially offset

  14. Slide 14: Appendix

    Appendix

  15. Slide 15: Q4 2024 Worldwide Financial Results

    Q4 2024 Worldwide Financial Results* Q4 2024 Q4 2023 (in millions of USD except EPS) y/y ∆ (Non-GAAP) (Non-GAAP) Total sales $3,191 $3,017 5.8% Gross profit 993 924 7.5% Gross margin 31.14% 30.64% 50 bps Operating expenses (Non-GAAP)** 755 778 -2.8% Operating income (Non-GAAP)** $238 $146 62.6% Oper

  16. Slide 16: Adjusted EBITDA

    Adjusted EBITDA (in millions of USD) Q4 2024 Q4 2023 Net Income attributable to Henry Schein, Inc. (GAAP) $94 $18 Income attributable to noncontrolling interests 2 (1) Net Income (GAAP) 96 17 Interest income (6) (5) Interest expense 35 29 Income taxes 31 1 Depreciation and amortization 76 68 Restruc

  17. Slide 17: Sales Summary: Global Distribution and Value-Added Services Group

    Q4 2024 Sales Summary Global Distribution and Value-Added Services Group (in millions of USD) Q4 2024 Q4 2023 y/y ∆ y/y LCI* ∆ Merchandise $562 $536 4.8% 4.8% Equipment 248 225 10.0% 10.0% Value-Added Services 51 50 3.9% -0.7% Total Dental 861 811 6.2% 5.9% Medical 996 954 4.5% 4.5% Total U.S. Distr

  18. Slide 18: Sales Summary: Global Specialty Products Group

    Q4 2024 Sales Summary Global Specialty Products Group* (in millions of USD) Q4 2024 Q4 2023 y/y ∆ y/y LCI** ∆ Global Specialty Products Group $368 $344 7.2% 5.0% *Global Specialty Products Group includes certain expenses related to managing owned-brands that support sales in the distribution busines

  19. Slide 19: Sales Summary: Global Technology Group

    Q4 2024 Sales Summary Global Technology Group* (in millions of USD) Q4 2024 Q4 2023 y/y ∆ y/y LCI** ∆ U.S. HS One $121 $122 -1.2% -1.2% International HS One 32 28 14.6% 12.8% Global HS One 153 150 1.8% 1.4% Other 7 6 19.0% 19.0% Global Technology Group $160 $156 2.4% 2.1% *Shift to a SaaS model crea

  20. Slide 20: GAAP to Non-GAAP Income Statements

    Q4 2024 GAAP to Non-GAAP Income Statements Cyber Incident- Costs Insurance Acquisition Change in Impairment of Impairment of Associated with Q4 2024 Restructuring Proceeds, Net Q4 2024 (in millions of USD except EPS) GAAP Costs Intangible of Third-Party Contingent Capitalized Intangible Shareholder

  21. Slide 21: GAAP & Non-GAAP Reconciliations: Q4 2024 Financial Highlights

    GAAP & Non-GAAP Reconciliations Q4 2024 Financial Highlights Henry Schein, Inc. Fourth Quarter 2024 Analyst Presentation Q4 2024 - Financial Highlights (in millions, except per share data) Reconciling Items Acquisition Cyber Incident- Costs Associated Intangible Insurance Proceeds, Change in Conting

  22. Slide 22: GAAP & Non-GAAP Reconciliations: 2024 Financial Highlights

    GAAP & Non-GAAP Reconciliations 2024 Financial Highlights Henry Schein, Inc. Fourth Quarter 2024 Analyst Presentation Full Year 2024 Financial Highlights (in millions, except per share data) Reconciling Items Cyber Incident- Costs Insurance Associated with Acquisition Proceeds, Net Change in Impairm

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