Slides
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1 November 4, 2025 Henry Schein Overview Q3 2025
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2 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 cause future results to differ materially from the forward-looking statements, expectations and assumptions expressed or implied herein. All forward-looking statements made by us are subject to risks and uncertainties and are not guarantees of future performance. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These statements include total sales growth, EPS and Adjusted EBITDA guidance and are generally identified by the use of such terms as “may,” “could,” “expect,” “intend,” “believe,” “plan,” “estimate,” “forecast,” “project,” “anticipate,” “to be,” “to make” or other comparable terms. A fuller discussion of our operations, financial condition and status of litigation matters, including factors that may affect our business and future prospects, is contained in documents we have filed with the United States Securities and Exchange Commission, or SEC, including our Annual Report on Form 10-K, and will be contained in all subsequent periodic filings we make with the SEC. These documents identify in detail important risk factors that could cause our actual performance to differ materially from current expectations. Risk factors and uncertainties that could cause actual results to differ materially from current and historical results include, but are not limited to: our dependence on third parties for the manufacture and supply of our products and where we manufacture products, our dependence on third parties for raw materials or purchased components; risks relating to the achievement of our strategic growth objectives, including anticipated results of restructuring and value-optimization initiatives; risks related to the Strategic Partnership Agreement with KKR Hawaii Aggregator L.P. entered into in January 2025; transitions in senior company leadership; our ability to develop or acquire and maintain and protect new products (particularly technology and specialty products) and services and utilize new technologies that achieve market acceptance with acceptable margins; transitional challenges associated with acquisitions and joint ventures, including the failure to achieve anticipated synergies/benefits, as well as significant demands on our operations, information systems, legal, regulatory, compliance, financial and human resources functions in connection with acquisitions, dispositions and joint ventures; certain provisions in our governing documents that may discourage third-party acquisitions of us; adverse changes in supplier rebates or other purchasing incentives; risks related to the sale of corporate brand products; risks related to activist investors; security risks associated with our information systems and technology products and services, such as cyberattacks or other privacy or data security breaches (including the October 2023 incident); effects of a highly competitive (including, without limitation, competition from third-party online commerce sites) and consolidating market; political, economic, and regulatory influences on the health care industry; risks from expansion of customer purchasing power and multi-tiered costing structures; increases in shipping costs for our products or other service issues with our third-party shippers, and increases in fuel and energy costs; changes in laws and policies governing manufacturing, development and investment in territories and countries where we do business; general global and domestic macro-economic and political conditions, including inflation, deflation, recession, unemployment (and corresponding increase in under-insured populations), consumer confidence, sovereign debt levels, fluctuations in energy pricing and the value of the U.S. dollar as compared to foreign currencies and changes to other economic indicators; failure to comply with existing and future regulatory requirements, including relating to health care; risks associated with the EU Medical Device Regulation; failure to comply with laws and regulations relating to health care fraud or other laws and regulations; failure to comply with laws and regulations relating to the collection, storage and processing of sensitive personal information or standards in electronic health records or transmissions; changes in tax legislation, changes in tax rates and availability of certain tax deductions; risks related to product liability, intellectual property and other claims; risks associated with customs policies or legislative import restrictions; risks associated with disease outbreaks, epidemics, pandemics (such as the COVID-19 pandemic), or similar wide-spread public health concerns and other natural or man-made disasters; risks associated with our global operations; the threat or outbreak of war (including, without limitation, geopolitical wars), terrorism or public unrest (including, without limitation, the war in Ukraine, the Israel-Gaza war and other unrest and threats in the Middle East and the possibility of a wider European or global conflict); changes to laws and policies governing foreign trade, tariffs and sanctions or greater restrictions on imports and exports, including changes to international trade agreements and the current imposition of (and the potential for additional) tariffs by the U.S. on numerous countries and retaliatory tariffs; supply chain disruption; litigation risks; new or unanticipated litigation developments and the status of litigation matters; our dependence on our senior management, (including, without limitation, succession planning for our Chief Executive Officer), employee hiring and retention, increases in labor costs or health care costs, and our relationships with customers, suppliers and manufacturers; and disruptions in financial markets. The order in which these factors appear should not be construed to indicate their relative importance or priority. We caution that these factors may not be exhaustive and that many of these factors are beyond our ability to control or predict. Accordingly, any forward-looking statements contained herein should not be relied upon as a prediction of actual results. We undertake no duty and have no obligation to update forward-looking statements except as required by law. Included are non-GAAP financial measures that supplement the Company’s Consolidated Statements of Income prepared under generally accepted accounting principles (GAAP). These non-GAAP financial measures adjust the Company’s actual results prepared under GAAP to exclude certain items. In the schedule attached to the press release, the non-GAAP measures have been reconciled to and should be considered together with the Consolidated Statements of Income. Management believes that non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance and allow for greater transparency with respect to key metrics used by management in operating our business. The impact of certain items that are excluded include integration and restructuring costs, and amortization of acquisition-related assets, because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions we consummate and occur on an unpredictable basis. These non-GAAP financial measures are presented solely for informational and comparative purposes and should not be regarded as a replacement for corresponding, similarly captioned, GAAP measures.
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3 Henry Schein #1 global provider of dental merchandise, specialty products, traditional and digital equipment, parts and services and a leading provider of medical products, equipment and services to the alternate care market with $3B+ in corporate and owned brands portfolio and related services (incl. technology) YEARS IN BUSINESS93 MORE THAN TEAM SCHEIN MEMBERS 25,000 33 COUNTRIES OPERATIONS IN SERVING MORE THAN 1 MILLION CUSTOMERS $12.7B FY2024 GLOBAL NET SALES COMPONENT OF S&P 500® INDEX 8 YEARS
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4 Key Developments Since IPO In 1995 TRANSFORMED: From the leading U.S. mail-order dental distributor to the leading global dental and medical products and services provider to office-based practitioners and alternate care sites 1 SIGNIFICANTLY EXTENDED POSITION IN: • Specialty products • Corporate brands and proprietary products • Digital solutions • Value-added services • Medical alternate care sites #1 global provider of dental merchandise, traditional and digital equipment, parts and services to office-based dental practitioners ~$7B in global dental merchandise, equipment, & value added services #2 US provider of medsurg, vaccines, pharmaceuticals, equipment and diagnostics to medical alternate care sites 1 and in the home ~$4B in U.S. medical sales #2/#3 #3 Global manufacturer of implants [& bio-materials] #2 Global manufacturer of endodontics ~$1B in global dental specialty portfolio sales #1 in global dental practice management software ~$600M in global dental practice management solution sales 11% CAGR NON-GAAP EPS212% Since IPO: CAGR STOCK APPRECIATION 3 1 Excludes specialty drugs. 2 From Continuing Operations, based on 12 -month data through Q4 2024. Excludes Animal Health in 1995. Also excludes certain non -recurring items to provide a more comparable basis for analysis. A reconciliation of GAAP to non -GAAP adjustments is included in the Appendix. 3 Calculated using the stock price as of September 26 th, 2025 close. CURRENT STATE1: ~$3B in corporate & owned brands portfolio (including technology)
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5 Favorable Long Term Macro Trends Demographics • Aging global population Healthcare Developments • Movement of procedures from hospital to physician offices and alternate care sites • Growing awareness of correlation between good oral health and overall health • Expanding healthcare coverage and access to care • Increasing importance of wellness and prevention • Untapped patient demand for healthcare services • Consolidation of practitioners to multiple locations under common management Increased Adoption of Digital Technology • Advancements in practice management software and electronic medical records • Improved clinical workflow driving better patient outcomes • Utilization of AI to improve patient case acceptance and diagnosis • Enhanced patient communications Henry Schein benefits from: • Market leadership • Broad customer base • Large-customer relationships • Diversified business portfolio • Integrated solutions
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6 Henry Schein – Resiliency of the Business Note 1: Reconciliations between GAAP and non-GAAP measures can be found in the Financials and Filings section of our investor relations website under the Supplemental Information heading. We have a track record of transformation, with BOLD+1 representing the latest reinvention to become a higher growth, higher margin company Long term track record of delivering double-digit earnings growth, with 12% non-GAAP EPS CaGR since IPO1 Some recent headwinds have impacted our business that we are working through, including the cyber incident, macro- economic conditions (specifically higher interest rates impacting equipment sales and high-end procedures) and PPE/Covid Tests volatility
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7 7 2022-2024 BOLD+1 Strategic Plan: Successful Execution • BOLD+1 has been adopted as a “brand” for our transformation to a more agile, customer centric, digital, efficient and high growth, high margin company with synergies generated by leveraging our portfolio of complementary businesses. • We have made significant progress transforming from a pure play distribution company, to a higher growth value-added products and services company. High-growth, high-margin (“HGHM”) businesses now account for: • ~25% ($3B) when including corporate and owned brands portfolio and related services, of our sales • ~40% of operating income, with another ~10% contribution from private brand product offering
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8 Successfully Advanced our Strategic Priorities We have made significant progress advancing our 2022 – 2024 BOLD+1 strategic priorities, with the following highlights: • Established Digital Revenue team • Global eCommerce platform (GEP) successfully launched in the UK and Ireland • Henry Schein LinkIT clinical workflow software offering (3-Click Dentistry) poised for growth • AI has become a driver for revenue and efficiency, through AI clinical-based digital solutions, like Detect AI powered by Videa Health and Eligibility Pro, a module which calculates patient insurance eligibility Outstanding high-growth high- margin businesses: • #1 global dental software services with accelerating sales of cloud and digital solutions - accelerated new product development • #2 global endodontic products with accelerating sales - opportunity to further integrate businesses and create efficiencies • #3 global implant and biomaterial products (ex. China), gaining market share • Entered the orthopedic market through acquisition of TriMed, synergistic with medical distribution business • Implemented “blended distribution” go-to-market strategies for Henry Schein corporate brand products and services offering value opportunities to accelerate sales • Implemented sales channel through distribution business for HS Products (eg Edge Endo) and leverage Henry Schein’s customer base • Focus on customer segmentation, satisfaction and efficiency • Retain and grow customer base following cyber incident • Restructuring initiatives are creating significant efficiencies throughout the distribution business and manufacturing businesses • Built a top 5 home health distribution company with annualized sales of approximately $400M and high operating margin. BUILD HIGH-GROWTH HIGH-MARGIN BUSINESSES OPERATIONALIZE ONE DISTRIBUTION LEVERAGE ONE SCHEIN DRIVE DIGITAL TRANSFORMATION
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9 Together, we make the world healthier. Better Serving Our Stakeholders +1 Attract, retain, and develop talent Further solidify position as a high-value partner Deliver sustainable long-term growth Continue to enhance practice efficiencies and patient outcomes Maintain commitment to corporate citizenship
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10 Image to come Image to come Image to come Henry Schein’s High-Touch, Value-Added Market Approach: Full-service provider of supplies, equipment, Specialties, and Value-added services Our strategy is focused on delivering solutions that enable our customers to provide the best quality patient care while optimizing the efficiency of their practice. SUPPLY CHAIN SOLUTIONS SPECIALTIES VALUE-ADDED SERVICES RELATIONSHIPSSERVICE AND SUPPORT Global Distribution and Value-added Services
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11 Global Distribution and Value-added Services -- Supply Chain Excellence • 300K Unique Stocking SKUs Globally • 22K Unique Private Brand Products • Enhanced Transportation Network • 90% of Worldwide Customers Serviced Next Day • Globally operates out of 36 distribution and 15 manufacturing facilities * Warehouse and Manufacturing data as of Q4 2024.
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12 Global Dental Distribution Market Market Share 2024 GLOBAL DENTAL DISTRIBUTION SALES BY GEOGRAPHY $6.7B or 52% of Net Sales35% to 40% United States 20% to 25% EMEA 35% to 40% Rest of World (includes Canada) Source: Henry Schein Estimates. Market share represents Henry Schein estimates and is based on 12-month data through Q4 2024. Only global dental distributor and solutions company for general practitioners, specialists, and laboratories • #1 in sales in the US and Canada • #1 in sales in Europe • #1 in sales in Australia/New Zealand • #1 in sales in Brazil Active customers (approximate) • 90% of U.S. dental practices • 80% of dental labs in North America • 65% of European dental practices • 80% of Australia/New Zealand dental practices • 60% of Brazil dental practices 28% EMEA 52% United States 20% Rest of World (Includes Canada)
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13 Global Dental Distribution Market Position Active customers (approximate) • 90% of U.S. dental practices • 80% of dental labs in North America • 65% of European dental practices • 80% of Australia/New Zealand dental practices • 60% of Brazil dental practices Multifaceted sales and marketing approach • Approximately 2,800 dedicated Dental Distribution Field Sales Consultants • Product specialists, e.g., capital equipment, technology, specialty products, etc. • Unique offerings with supplier partners • Direct marketing using sophisticated E-Commerce, database tools and information • Telesales Integrated Business Solutions • Full-service provider of financial services • Providing transitions services • Advisory services to help practices operate more efficiently and profitably • Outsourced virtual dental billing market through e-Assist Source: Henry Schein Estimates. Market share represents Henry Schein estimates and is based on 12-month data through Q4 2024.
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14 Global Dental Distribution Key Acquisitions * Last 12 months revenue as publicly disclosed at time of acquisition in USD. Key Acquisitions Description Revenue* abc dental AG (2024) Expands dental distribution in Switzerland $28MM LPS (2023) Large practice transitions brokerage $40M Unitas (2023) PPO insurance solutions NA Midway Dental Supply (2022) Expands dental distribution in North America $110M Condor Dental (2022) Expands dental distribution in Switzerland $18M eAssist (2021) Adds Outsourced Virtual Dental Billing Platform $31M** Casa Schmidt (2021) Expands dental distribution in Spain/Portugal $42M TDSC.com (2020) Expands distribution in N.A. online channel $20M Cliniclands (2019) Entry into dental market in Sweden $10M Wuhan (2019) Expands our dental business in China $40M SAS (2017) Enhances dental surgical supply offering $72M Marrodent (2016) Entry into Poland dental market $32M CAP (2016) Expands lab supply business in the U.S. $30M Dental Cremer (2016) Expands our dental business in Brazil $145M
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15 Global Dental Distribution Long-Term Growth Strategy • Increasing penetration with existing customers • Grow further corporate brand products • Continued focus on large group practices • Digitalization of prosthetic solutions • Geographic expansion
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16 Global Medical Distribution Market 2024 GLOBAL MEDICAL DISTRIBUTION SALES BY GEOGRAPHY $4.1B or 32% of Net Sales U.S. Market Share: Approximately 20% U.S. distributor to healthcare providers in multiple segments: alternate-site practices, ambulatory surgery centers, laboratory, public safety, government and health systems, and home health care Market Includes: branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products, X-ray products, equipment, PPE products and vitamins. 3% EMEA 97% United States 1% Rest of World (Includes Canada)
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17 Global Medical Distribution Key Acquisitions & Long-Term Growth Strategy Key Acquisitions Description Revenue* Acentus (2025) Entrance into business that delivers Continuous Glucose Monitors (CGMs). $35M Shield Healthcare Inc. (2023) Establish scale of business that delivers products directly to the patient in U.S. $180M Regional Healthcare Group (2023) Expands Medical business to Australia & New Zealand $42M Prism Medical Products (2021) Entrance into business that delivers products directly to the patient in U.S. $52M North American Rescue (2019) Medical products for defense/public-safety $184M * Last 12 months revenue as publicly disclosed at time of acquisition in USD. GROWTH DRIVERS Increase active U.S. physician practice customers Increase penetration organically and through acquisitions Continued focus on large accounts, health systems and surgery centers Focus on specialty segments and home solutions Create unique offering with supply partners
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18 Global Specialty Products 2024 GLOBAL SPECIALTY PRODUCTS AND OTHER SALES BY GEOGRAPHY $1.4B or 11% of Gross Sales 1 Implant-based tooth restoration market includes implants, abutments, implant-based custom prosthetics, related instruments and restorative components, hard and soft tissue bone regeneration. 2 Market defined as manual and engine-driven files, obturation materials and irrigation products. Source: Henry Schein Estimates. Market share represents Henry Schein estimates and is based on 12-month data through Q4 2024. ~ 10%1 Implants & Biomaterials ~ 15%2 Endodontics <1% Orthodontics Healthcare Specialty Product Market Share <1% Other Categories 29% EMEA 58% United States 13% Rest of World (Includes Canada)
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19 Oral surgery solutions (#3 market share1) • A leading provider of the entire assortment of oral surgery products • Comprehensive portfolio of premium value and value implant lines and full range of biomaterial products • Digital workflow solutions and a broad assortment of value-added services, including education Endodontics (#2 market share1) • Innovative product portfolio, primarily through Brasseler, Edge, FKG and Angelus brands • Global presence through multiple sales channels and brands • Enhanced customer experience through education Orthodontics • Fully integrated treatment systems with customized capabilities for orthodontic and general practitioners, including self-ligating brackets, three-wire systems, and clear aligners • Digital solutions for developing patient treatment plans Orthopedics • High growth product category Global Specialty Products Market Position 1 Henry Schein Estimates. Market share represents Henry Schein estimates for the markets we serve and is based on 12-month data through Q4 2024. • Higher margin products • Historically faster growth than core dental market • Ability to leverage existing relationships with specialty practitioners • General practitioners increasingly performing specialty procedures Specialty Products BIOMATERIAL ENDODONTIC CAD/CAM ORTHODONTIC IMPLANT ORTHOPEDIC Integrated Portfolio Delivers Value Across Specialty Segments
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20 Global Specialty Products Key Acquisitions * Last 12 months revenue as publicly disclosed at time of acquisition in USD. Key Acquisitions Description Revenue* TriMed (2024) Entrance into orthopedic products $50M S.I.N. Implant Systems (2023) Expands dental implant offering to Brazil and FDA approved value implant $60M BioTech Dental (2023) Expands dental implant, clear aligner and clinical workflow software offerings $100M Medentis/Intra-Lock/Pro-Cam (2018) Strengthens global dental implant offerings $45M Edge Endo (2017) Expands our line of endodontic solutions $17M
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21 Global Specialty Products Long-Term Growth Strategy Drive new product development and launch of owned brands Maximize distribution sales channel opportunities Create additional dedicated, focused specialty sales teams Geographic expansion of owned brands Additional product acquisitions Leverage existing infrastructure
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22 Global Technology 2024 GLOBAL TECHNOLOGY SALES BY GEOGRAPHY $630M or 5% of Net SalesPractice Management Solutions • Three-quarters of revenue is recurring - Cloud usage - Support - RCM and other recurring services - Analytics • U.S. penetration (approximate) - 55% dental practices • A leader in servicing small and large practices in Dental • Support more than 90% of dental schools in North America • Leading software solutions in Canada, UK, France, Italy, Spain, Australia and New Zealand Source: Henry Schein Estimates Market data as at Q4 2024. Leading global provider of technology solutions and integrated clinical workflow to dental practices 14% EMEA 80% United States 5% Rest of World (Includes Canada)
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23 Global Technology Key Acquisitions & Long-Term Growth Strategy Key Acquisitions Description Revenue* Jarvis (2021) Expands Dental Analytics Solutions $2M Dentally (2020) Expands international software presence $2M Elite Computer Italia (2019) Establishes software presence in Italy $6M Kopfwerk (2019) Establishes software presence in Austria $2M Lighthouse (2019) Expands patient communication software offering $50M GROWTH DRIVERS Continue to generate synergies with broader distribution business Leverage R&D, marketing, and technology across business solutions Further development of new solutions With ~100,000 technology customers worldwide, opportunity to grow revenue per customer * Last 12 months revenue as publicly disclosed at time of acquisition in USD.
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24 FOUNDATION OF SECURIT YSOC2 Compliant Granular Rights AdministrationSSL Encryption Technology Patient Demand Generation Patient Experience Practice Management Software Revenue Cycle Management Dental Analytics Clinical Workflow Global Technology Technology and services across workflows Digital Presence Patient Forms Booking Communication Charting Treatment Planning Claims Processing Billing & Payments Optimize Operations and Profitability Embedded Imaging with AI Services HENRY SCHEIN ON E | TRUSTED SUCCESS PARTNER Data & Image Conversions Self-serve & Live Training AI Powered Knowledge Base Dental Consulting IT & Hardware Support Best-in-class Support #1 Dental Practice Management 12 Countries 2,000+ team members Empowers dentists to focus on patient care and practice success
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25 Global Technology – Opportunities Source: Henry Schein Estimates. New Patient Acquisition Office Spend Opportunity: $200-$2000+/month Patient Engagement & Communication Office Spend Opportunity: $200-$550/month Revenue Cycle Management Office Spend Opportunity: $120-$700/month Platforms – Practice Management Systems Software Platform, Support, Virtual Business Services Office Spend Opportunity: $200-$1000+/month Hardware, Networking, Protection and Success Services Office Spend Opportunity: $1,000-$1500+/month Average revenue per account of ~$500/month, provides significant revenue growth opportunity Office Spend Opportunity: $200-$600+/month Analytics
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26 Caring for the Environment Caring for Our Communities and Team Schein Good Governance •Completed the Science-based Targets initiative (SBTi) validation process •Refreshed the branding and focus areas of our global Practice Green initiative, which provides customers and suppliers with products, solutions, and resources, enabling health care professionals to create a greener practice •Continuing to strengthen our supplier engagement by collecting baseline sustainability information •Executing strategies focused on our commitment to living our Team Schein Values – Community, Caring and Career •Announced the creation of the Core Leadership Capabilities (CLCs), a skills-based model for all TSMs to demonstrate for career development, mobility, and success. •Expanded wellness campaigns such as the Steps for Suicide Prevention Program that aims to reduce stress and burnout and provide TSMs with practical steps to address mental health concerns •Continued to expand our internal values training through a bespoke Inclusive Culture Learning catalog globally •Piloted the Henry Schein Cares Package Program, a series of six kits geared toward health care professionals volunteering to care for discrete vulnerable populations •Recent Board refreshment to further advance our BOLD+1 strategy •Started our double materiality assessment to meet the EU Corporate Sustainability Reporting Directive •Expanding our sustainability governance to include a new working group on data process and reporting •Building strategies to improve awareness of our sustainability efforts, based on results from our first Corporate Citizenship Barometer, engaging stakeholders for input and feedback on perception of sustainability impact Sustainability Action & Reporting
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27 27 Financial Performance
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28 Growth Since Going Public ¹ Excludes certain non-recurring and non-cash items to provide a more comparable basis for analysis. See the appendix of this slide. set for a reconciliation of GAAP and non-GAAP measures.. * Average annual increase. 1995 2024 Compound Annual Growth Rate Net Sales $584 $12,673 11.2% Operating Income1 $18 $949 14.6% Operating Margin1 3.14% 7.49% 15 bps* Net Income1 $9 $605 15.8% Diluted EPS1 $0.16 $4.74 12.4% Non-GAAP1 ($ in millions, except EBITDA and per share data)
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29 Annual Financial Performance ¹ Excludes certain non-recurring items to provide a more comparable basis for analysis. See the appendix of this slide. set for a reconciliation of GAAP and non-GAAP measures. 2023 2024 Delta Net Sales $12,339 $12,673 2.7% Operating Income1 $890 $949 6.6% Operating Margin1 7.21% 7.49% 28bps Net Income1 $593 $605 2.0% Diluted EPS1 $4.50 $4.74 5.3% Non-GAAP1 ($ in millions, except EBITDA and per share data)
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30 Diversified Sales in Complementary Markets 2024 Worldwide Sales: $12.7 Billion BY SEGMENT BY GEOGRAPHY 20% EMEA 68% United States 12% Rest of World (Includes Canada) 11% or $1.4B Specialty Products and Other 84% or $10.8B Distribution and Value-added Services 5% or $630M Technology
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31 Operating Income and Margin Highlights Long Term Financial Goal: Continued operating margin expansion NON- GAAP OPERATING INCOME 1 ($ IN MILLIONS) 5 - year Op. Inc. CAGR +2.5% 1995 2024 Operating Margin 3.1%(1) 7.5%(1) Result: Operating Margin Growth 2019 $500 $1,000 $0 $1,500 2020 $690 $837 $999 2021 $1,038 2022 1 From Continuing Operations. Excludes animal health in 1995. Excluding certain non-recurring items to provide a more comparable basis for analysis. See the appendix of this slide set for a reconciliation of GAAP and non-GAAP measures. Adjusted for amortization expense on acquired intangible assets. 2023 $890 * *includes estimated $120 – 130 million impact in 2023 from cybersecurity incident $949 2024
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32 Earnings Highlights NON- GAAP EARNINGS PER DILUTED SHARE 1 ($ IN MILLIONS) 5 - year EPS CAGR +3.6%* Long Term Financial Goal: Continued year-over-year EPS growth 1995 2024 Diluted EPS1 $0.16 $4.74* (CAGR of 12.4%*) Split Adjusted Result: Earnings Growth 2019 $3.00 $6.00 $0 2020 $3.52 $3.97 $5.05 2021 $5.38 2022 1 From Continuing Operations. Excludes animal health in 1995. Excluding certain non-recurring items to provide a more comparable basis for analysis. See the appendix of this slide set for a reconciliation of GAAP and non-GAAP measures. Adjusted for amortization expense on acquired intangible assets. 2023 $4.50* *includes estimated $0.70 - $0.75 impact in 2023 from cybersecurity incident 2024 $4.74
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33 Cash Returned to Shareholders: Share Repurchases 20202018 $0 $700M $500M $400M $300M $200M $100M $600M $200M * 2019 $401M $525M 2021 $74M** Long Term Financial Goal: Cash flow from continuing operations to exceed net income * Blackout in part of 2018 due to spin-off of animal health business. ** Impacted by COVID-19.*** Impacted by cybersecurity incident. $485M 2022 $250M** * 20242023 $385M
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34 Return on Invested Capital (ROIC) 20202018 0.0% 10.0% 8.0% 6.0% 4.0% 2.0% 11.9% 2019 17.3% 14.9% 2021 12.9%* * Impacted by COVID-19. ** Impacted by cybersecurity incident. 16.7% 2022 12.5%** 2023 12.0% 14.0% 16.0% 18.0% 20.0% Long Term Financial Goal: ROIC exceeding Weighted Average Cost of Capital. 11.5% 2024
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35 Balanced Capital Allocation Strategy Disciplined Approach to Balance Sheet Management Available borrowing capacity$848M of annual operating cash flow 1 in 2024 2.2x Debt2/Adjusted EBITDA ratio as of Dec 30, 2024 Maintain investment grade balance sheet ~$1.9B 1 Operating cashflow positively impacted by payments that pushed into 2024 due to our cybersecurity incident in 2023. 2 Debt defined as: Bank Credit Lines plus Current Maturities of Long-term Debt plus Long-term Debt. Return of Capital M&A Capital Expenditures Capital Allocation Priorities • Drive organic growth and expand operating margins ﹣Focus on operational efficiency and digital commerce • Invest in focused M&A opportunities • Return excess capital through stock repurchases $100M Average per year. $300M-$400M Average per year (higher in the short term as we execute our strategic plan). $300M-$400M Average per year. 1
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36 Active pipeline of transactions • M&A characterized by bolt-on transactions, typically with privately held companies • Opportunistic regarding structure and timing • Operational synergies • Generally, require financial consolidation Focused M&A strategy Focus of new 2025-2027 Strategic Plan hasn’t changed: • Expanding complementary high-growth software, specialty and services businesses • Investing for growth in core distribution business Resulting in value creation Pursue financially compelling opportunities: • Non-GAAP accretion after year 1 • ROI exceeding weighted average cost of capital by year 2-3 Disciplined M&A Approach Clear strategic and financial framework to deliver long-term value creation
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37 Examples of some key M&A transactions Scaled high-growth, high- margin businesses across Value-added Services, Dental Specialties and Dental & Medical distribution Ye a r A cquired A nnual R ev enue at A cquisition 2024 Revenue 2024 A djusted Operating Ma r g i n % BioHorizons 2013 ~$115m ~$300M >20% D ental Cremer 2016 ~$145m ~$225M >10% Edge Endo 2017 ~$15m ~$60M >20% NAR 2019 ~$185m ~$200M ~10% eA ssist 2021 ~$30m ~$100M ~10% * Measured in GAAP.
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38 Investment Merits BOLD+1 Strategic Plan Accelerating growth and realizing long-term sustainable mid to long-term high single-digit / low double-digit earnings growth, including through strategic acquisitions • Clear strategic plan for growth • Proven track record of earnings growth • Leading positions in attractive markets • Scaled platform of highly complementary products, services and technologies • Opportunities to gain additional share of customer wallet • Deep and experienced management team
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39 39 Appendix
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40 GAAP to non-GAAP Reconciliation Growth Since Going Public
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41 GAAP to non-GAAP Reconciliation Annual Financial Performance
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42 GAAP to non-GAAP Reconciliation Net Income and Earnings per Share Full Year Earnings Highlights From Continuing Operations (in millions, except per share data) 2019 2020 2021 2022 2023 2024 Q4 2024 2019 2020 2021 2022 2023 2024 Q4 2024 GAAP Earnings per share 4.69$ 2.81$ 4.45$ 3.91$ 3.16$ 3.05$ 0.74$ GAAP Net Income 701$ 403$ 631$ 538$ 416$ 390$ 94$ GAAP EPS Growth % -19% -3% GAAP EPS CAGR -8% Net Income Reconciling Items 2019 2020 2021 2022 2023 2024 Q4 2024 2019 2020 2021 2022 2023 2024 Q4 2024 Restructuring and integration costs 0.07$ 0.17$ 0.03$ 0.74$ 0.40$ 0.62$ 0.23$ Restructuring and integration costs 11$ 24$ 5$ 103$ 53$ 79$ 28$ Acquisition Intangible Amortization 0.46 0.48 0.54 0.57 0.70 0.88 0.22 Acquisition Intangible Amortization 69 69 76 78 92 112 27 Litigation Settlements - - 0.08 - - 0.03 - Litigation Settlements - 11 - - 4 - Gain on Sale of Equity Investment (1.25) - - - - - - Gain on Sale of Equity Investment (187) - - - - - - Transitional Tax on Repatriated Foreign Earnings - - - - - - - Transitional Tax on Repatriated Foreign Earnings - - - - - - - Cyber Incident-Insurance Proceeds, Net of Third-Party Advisory Expenses - 0.06 (0.18) (0.12) Cyber Incident-Insurance Proceeds, Net of Third-Party Advisory Expenses - - - - 8 (23) (15) Tax credit realted to Animal-Health spin- off (0.01) - - - - - - Tax credit realted to Animal-Health spin- off (1) - - - - - - One-time tax on reorganization related to HS One - - - - - - - One-time tax on reorganization related to HS One - - - - - - - International Legal Entity Reorganization - - - - - - - International Legal Entity Reorganization - - - - - - - One-Time Tax Charge Related to the Animal Health Spin-Off - - - - - - - One-Time Tax Charge Related to the Animal Health Spin-Off - - - - - - - Impairment of Intangible Assets - 0.08 - 0.16 0.04 0.00 - Impairment of Intangible Assets - 11 0 23 5 0 0 Impairment of Capitalized Assets - - - - 0.15 0.05 0.05 Impairment of Capitalized Assets - - - - 19 6 6 Change in Contingent Consideration - - 0.27 0.05 Change in Contingent Consideration - - 35 7 Net Gain on Sale of Investments - (0.01) (0.05) - - - - Net Gain on Sale of Investments - (2) (7) - - - - Costs Associated with Shareholder Advisory Matters - - - - - 0.01 0.01 Costs Associated with Shareholder Advisory Matters - - - - 0 2 2 2019 2020 2021 2022 2023 2024 Q4 2024 2019 2020 2021 2022 2023 2024 Q4 2024 Non-GAAP EPS 3.97$ 3.52$ 5.05$ 5.38$ 4.50$ 4.74$ 1.19$ Non-GAAP Net Income 592$ 505$ 716$ 741$ 593$ 605$ 149$ Non-GAAP EPS Growth % -16% 5.3% Non-GAAP EPS CAGR 3.6% Note: Amounts may not sum due to rounding. Prior periods have been restated to the current period presentation. Non-GAAP Non-GAAP GAAP Net IncomeGAAP EPS
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43 GAAP to non-GAAP Reconciliation Operating Income
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44 Adjusted EBITDA Reconciliation Note: amounts may not sum due to rounding