1 • Thank you for that kind introduction. • It seems like we all have become very dependent on our Blackberries, • and if it ever goes down it causes us great anxiety.
2 • It is a great honor and privilege to speak with the New York State Dental Association House of Delegates today where we have so many good friends. • In particular, I want to offer my congratulations to President- Elect Dr. Chad Gehani, • a friend for many years and a dental visionary • who has done so much to integrate culturally- specific dental organizations into state and national dental associations. • Chad, congratulations on behalf of all of your friends at Henry Schein. • The New York State Dental Association represents 14,000 member dentists – • 76% of all practicing dentists in the state. • As a Company that has its roots in New York, • the close collaborative relationship that we have with the New York State Dental Association is one of our most valued partnerships.
3 • Before I begin my presentation, in addition to Chad I want to thank a few people in particular: • Dr. Robert Doherty, • New York State Dental Association President; • Dr. Deborah Weisfuse, • Vice President; • Dr. Richard Andolina, • Treasurer; • Dr. Robert Peskin, • Speaker of the House of Delegates; • Dr. Mark Feldman, • Executive Director; • Dr. Steven Gounardes, • American Dental Association Trustee; • Dr. Edward Downes, • Chair of the New York State Dental Foundation; • And Laura Leon, • New York State Dental Foundation Executive Director. • This is an extraordinary leadership team • and we could not wish for better partners in the programs on which our organizations collaborate. • One reason why our partnership is so effective is because, like the New York State Dental Association, • we at Henry Schein are committed to “ helping health happen .”
4 • “Helping health happen” has been central to Henry Schein through our evolution over the past eight decades • from a drug store in Queens, New York • to our current position as the largest provider of products and services to office-based dentists, physicians and companion animal veterinarians, • with sales of $7.5 billion in 2010. • 1932 – Henry and Esther Schein open a drug store in Queens • 1950s – Launch product sales to physicians • 1960s – First comprehensive and priced dental products catalog • 1970s – First in industry to automate distribution center • 1980s – First in industry to automate entire supply chain, introduce electronic ordering and comprehensive infection control offering • 1990s – First dental distributor to introduce practice management software and enter international markets • 2000s – Fortune 500 company
5 • That ability to “help health happen” over the decades has helped propel Henry Schein to the leadership position that we now hold. A. 14,000 Team Schein Members, including more than 3,100 field sales consultants and specialists and 1,600 telesales representatives. More than 700,000 customers worldwide – B. • 1 million practitioners. C. Exclusive, innovative technology offerings • Practice management software and electronic health record solutions D. Operations or affiliates in 25 countries around the world E. 190,000 national and Henry Schein brand products in stock or available as special-order items. F. Member of the Nasdaq 100 Index (based on market capitalization) G. Number 317 on Fortune 500 ranking Number 14 on the Barron’s 500 H. We are proud of once again being included in Fortune’s list of I. the World’s Most Admired Companies . • This list includes 673 companies from 32 countries.
6 • Our solid financial performance will make our ability to “help health happen” possible for many years to come . • 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 Diluted Share have seen a CAGR of 17%. • And our market cap has grown from $400 million in 1995 • to $6.2 billion today.
7 • For 2011 we once again have been 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. • Henry Schein has ranked number one in our industry in social responsibility for six of the past seven years.
8 • Helping health happen is important to all five of the constituencies to which Henry Schein remains committed. • 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 practice efficiency and success, so they can focus on what they do best, which is deliver quality care to their patients. • Team Schein, • whose contributions are crucial if we are to take advantage of emerging challenges and opportunities. • Our investors, • who expect us to improve our organizational efficiency, build market share, continue to grow, be profitable and provide a good return on their investment. • And society, • which we serve through Henry Schein Cares. • This mosaic of our five constituencies is where we at Henry Schein see value. • By continuing to serve these five constituencies, we are adding value.
9 • One constituency that is important to our Company is our Dental customers. • Our North American Dental Group is our largest business segment, • representing 35% of our total worldwide sales. • Dentistry remains an excellent profession full of hard-working, well-educated, dedicated, and resourceful health professionals. • Whether you practice in a public or private setting, as a general dentist or a specialist, • we should agree that the public’s appetite for and use of our services is at a record pace, • despite the economic challenges of 2008 to 2010. • We are seeing encouraging signs of recovery in the dental marketplace, and are optimistic about 2011 and the years to come for the profession.
10 • Regardless of the economic condition, our mission remains constant: • We are commitment to providing our customers with the full range of technology-driven products and services they need to operate more efficient and successful practices. • If we do this, then our customers can focus more time on providing high quality care to patients. • To achieve this, our offering addresses virtually every dental practice need – • we truly are the total solution provider. • And as our dental customers achieve more and more financial success, they are able to invest in • new technologies, new equipment, and new clinical services • that will further drive the success of their practices.
11 • One facet of our business that is particularly important to us is corporate social responsibility, • which 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 have been successful because we adhere to a philosophy of enlightened self-interest – • the concept of “doing well by doing good” that Benjamin Franklin proposed centuries ago. • Enlightened self interest is not just randomly giving money or resources to any of the many worthy causes in need today. • As this quote from a 2006 article in the Harvard Business Review explains, it is an opportunity to create shared value for society and for the business. • This article explains that no business can solve all of society’s problems or bear the cost of doing so. • Instead a company must select issues that intersect with its particular business, and leave the other issues to companies in other industries, to NGOs and to governmental agencies. • In our case, we have chosen to focus on expanding access to care for underserved populations.
12 • At Henry Schein, we contribute our core competencies: • Extensive offering of health care products and services • Logistical distribution expertise and capabilities • Extensive communications network • Close relationships with more than 700,000 customers and thousands of supplier partners. • More than financial donations, these are the unique resources that we bring to bear again and again to help society address important issues and to help our Company continue to grow and succeed. • By funneling these resources through Henry Schein Cares, our global corporate social responsibility program, • we are expanding access to care for underserved communities around the world by • advancing wellness, • building capacity in the delivery of health care services • and assisting in emergency preparedness and relief.
13 • This is just one part of our larger corporate social responsibility program, which also includes operating responsibly by • focusing on environmental sustainability, • ensuring accountability, • and engaging Team Schein Members. • In all of these ways, we are “helping health happen” through our corporate social responsibility program around the world. • In fact, the phrase “helping health happen” was originally used to describe our Henry Schein Cares program. • But the reality is that “helping health happen” now describes what we do in every facet of our Company.
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