O By : David Chamberlain, Dan Clark, & Audra Lenczowski

Mission Statement O To provide innovative, integrated health care products and services; and to be trusted advisors and consultants to our customers - enabling them to deliver the best quality patient care and enhance their practice management efficiency and profitability. O 80 Years Over 190,000 Products 775,000 Customers

History O Henry Schein, pharmacist in 1932 opened a corner drugstore in Woodside, NY O By 1940’s company introduces private-brand dental, medical, and veterinary products O By 1950 offered mail order to MD offices

History O 1964 criminal complaint for selling counterfeit Dexedrine to 3 out of state pharmacies and illegally selling amphetamine, barbiturates, and PCN tabs to an undercover federal agent O 1970’s when mail order really took off, and when the family really focused on the dental market O Sold his pharmacy in the mid 1970’s to become full time distributor of medical/dental and generic drugs. Annual sales at $40 million.

History O 1980 began automating distribution through telephone or computer O Within decade was dominant in field and by 1988 controlled more than 40% of mail order market for dental supplies O 1990 to separate from the rest- started offering computer and financial products to dentist

History O 1990’s cont. Branched out to European markets, selling through distributor to Mexico and catalog direct to Canada O Annual sales 1990 was $236.3 million up to $415.7 million in 1993 O Went public Nov 1995 raising $72.5 million from initial offering to $16 a share. July 96 raised an additional $124.1 million by selling more stock at $35 a share.

Currently O Mostly in North America, Europe, New Zealand and Australia O Includes- MD practices, dental practices, labs, vet clinics, government and other institutions O Major groups: dental (33.6% of total net sales), medical (16.6% of total net sales), veterinary health (11.6% of total net sales), international (35.3% of total net sales) and technology (2.9% of total net sales)

Awards & Recognition O 2012 ranked #303 in Fortune® 500 for America’s Largest Companies O Ranked #10 in the Barron’s 500 (ranked based on deploying cash flow and growing business) O Worlds Most Ethical Companies 2012 by Ethisphere Institute O Worlds Most Admired Companies by Fortune® 2012

Awards & Recognition O Henry Schein Dental ranks as one of Wisconsin’s Top 100 Workplaces in 2012 & 2011

Current Ratio Henry Schein current ratio for 20X1 and 20X0 YearCurrent Ratio=Current Assets/Current Liabilities 20X11.79= $ 2,272,508/ $ 1,271,640 20X01.86= $ 2,169,302/ $ 1,168,087 Benchmark= 2.0

Acid Test Ratio Henry Schein acid test ratio for 20X1 and 20X0 Year Acid Test Ratio= (Cash + Marketable /Securities)/Current Liabilities 20X10.12= $ 147,284/ $ 1,271,640 20X00.13= $ 150,348/ $ 1,168,087 Benchmark= ????

Days in Accts Receivable Henry Schein Days in Accounts Receivable Ratio for 20X1 and 20X0 Steps 1, 2 Year Average Net Sales Revenues per Day = Net Sales Revenues /365 Days 20X1 =$8,530,242/365 $23, X0$20,621.34=$7,526,790/365 Steps 3, 4 Year Days in Accounts Receivable = Net Accounts Receivable / Average Net Sales Revenues per /Day 20X138=$888,248/$23, X043=$885,784/$20,621.34

Average Payment Period Henry Schein average payment period ratio for 20X1 and 20X0 Steps 1, 2 Year Average Cash Expense per Day = (Operating Expenses - Depreciation & Amortization Expenses) 20X1$4,712.36=$1,835,906-$115,896 20X0$4,208.89=$1,637,460-$101,214 Steps 3, 4 Year Average Payment Period Days = Current Liabilities / Average Cash Expense per Day 20X1132=$621,468/$4, X0140=$590,029/$4, Benchmark= Unknown

Operating Margin Henry Schein's operating margin for 20X1 and 20X0 YearOperating Margin=Operating Income/Total Operating Revenues 20X17%=$582,149/$8,530,242 20X07%=$521,131/$7,526,790

Return on Total Assets Ratio Henry Schein return on total assets ratio for 20X1 and 20X0 Year Return on Total Assets=Net Income/Total Assets 20X10.078=$367,661/$4,740,144 20X00.072=$325,789/$4,547,471 Benchmark= ??

Total Asset Turnover Ratio Henry Schein's Total Asset Turnover Ratio for 20X1 and 20X0 YearTotal Asset Turnover= Total Operating Revenues /Total Assets 20X10.51=$2,418,055/$4,740,144 20X00.48=$2,170,876/$4,547,471

Fixed Asset Turnover Ratio Henry Schein's Fixed Asset Turnover Ratio for 20X1 and 20X0 YearFixed Asset Turnover= Total Operating Revenues /Net Plant & Equipment 20X19.22=$2,418,055/$262,088 20X08.6=$2,170,876/$252,573

Long-term Debt to Net Assets Ratio Henry Schein Corp long-term debt to net assets ratio for 20X1 and 20X0 Year Long-term Debt to Net Assets= Long-term Debt/ Stockholders Equity 20X10.15= $ 363,524/ $ 2,433,623 20X00.16= $ 395,309/ $ 2,412,957 Benchmark= ?

Equity to Total Assets Ratio Henry Schein net assets to total assets ratio for 20X1 and 20X0 Year Net Assets to Total Assets= Stockholders Equity/Total Assets 20X10.51= $ 2,433,623/ $ 4,740,144 20X00.53= $ 2,412,957/ $ 4,547,741 Benchmark= ?

Conclusion O Henry Schein is the largest supplier of healthcare products O At first glance, the 80 year old company looks rock solid O Its balance sheet has $4.8 billion in assets and only $1.9 billion in liabilities.

Conclusion O 5 notable key weakness include: O 1. Current Ratio = 1.79% (↓0.07) O To improve increase assets or decrease current liabilities O 2. Acid Test Ratio = 12% (↓1%) O Not much instantly available cash O Increase cash and marketable securities or decrease current liabilities

Conclusion O 3. Average payment period ratio = 132 days (↑ 8 days) O 132 to make payments seems excessive O 4. Operating margin = 7% (−0%) O Decrease its operating expenses while growing operating revenue.

Conclusion O 5. Total asset turnover ratio = 0.51 (↑ 0.03) O 2 years to make back invested money O Very successful company over the years

Questions Thanks for your time and attention!

Bibliography Henry Schein | Investor Relations | About Henry Schein. (n.d.). Henry Schein | Investor Relations | Investor Relations. Retrieved January 6, 2013, from ww.henryschein.com&hsi_locale=us-en Schein, w. b., management, w. a., 1995, d. i., & Corporation, a. i. (n.d.). History of Henry Schein, Inc. – FundingUniverse. Find Funding with Banks, Investors, and Other Funding Sources | FundingUniverse. Retrieved January 6, 2013, from Zelman, W., McCue, M., & Glick, N. (2009). Financial managment of health care organizations. (3rd ed., pp ). San Francisco, CA: Jossey-Bass