Delivering Results POSITIONED FOR GROWTH Analyst & Investor Day October 14, 2015 Paul Guggenheim CEO, Patterson Dental
PAUL GUGGENHEIM CEO, Patterson Dental Former owner and president, Guggenheim Brothers Dental 30+ year dental industry veteran Former president of the Dental Dealers of America, chairman of the American Dental Cooperative and chairman of the American Dental Trade Association 2
Exciting Time for Patterson Dental Large, stable market with promising demographic trends Digital technology transforming dental practices as technology expands, we become more valuable through: Innovative digital technology offerings Industry s most extensive digital training capabilities Unmatched integrated technical service & support infrastructure Dental practice design transforming to address the needs of today s consumer 3
Focused on Growth Our Primary Growth Drivers Digital technology Consumables market growth Core equipment innovation & facility transformation Technical service & training support expansion 4
Patterson Dental Today 11% Consumables 56% Total Equipment & Technology Technical Service & Other 33% $2.4B ANNUAL REVENUE FISCAL 2015 Patterson Dental provides differentiated products, services & solutions partnering with all oral health professionals, creating an improved patient experience & practice lifestyle. 5
Competitive Landscape Patterson Dental North America s largest provider of capital equipment, including CAD/CAM & digital technology >1,500 direct sales reps 33% share >105,000 SKUs ~5,700 Patterson brand products One national distributor Numerous regional and local suppliers Over 135 years in dental business 6
Private Practice Dental Specialist (Ortho, Endo, Perio) Special Markets (National/Large Group Accounts) Global Target Market Currently positioned at ~33% of $7B North American dental market 7
Population Growth: 65+ Age Group 2010 U.S. 40M EU 86M World 528M 2020 U.S. 55M EU 101M World 719M 2030 U.S. 70M EU 118M World 976M 8 Source: www.agingstats.gov
World-Class Product Offering: Consumables Sales of consumable dental supplies increased 3.3% in FY15 on constant currency basis 9
GROWTH DRIVERS IN DETAIL 10 12 10
World-Class Product Offering: Equipment Technology In millions Core equipment $354 $457 Dental equipment & software sales up 3.8% on constant currency basis in FY15 Led by strong CEREC CAD/CAM & digital technology sales Growing tech sales leadership Capturing digital waterfall opportunity CAD/CAM & Digital 11
Growth Driver: Digital Technology Expansion 100 3% 80 40% 60 83% 40 96% 20 0 Computers/ Practice Management Digital X-Ray CAD/CAM Cone Beam/ 3D Existing Opportunity 12
TECHNOLOGY SALES & SUPPORT OVERVIEW Josh Killian Vice President, Marketing Technology and Equipment 13
Best in Class North America Technology, Sales & Support 1,200+ territory reps 100+ CEREC specialists 200+ equipment specialists 400+ support people at Patterson Technology Center 900+ service techs 30 training facilities 125+ implementation specialists 300+ certified clinical trainers 14
15 Get More with CEREC & Patterson
16 Proprietary Patterson ABCD Education & Training
PTC Services Offered Software development Digital integration support North American CAD/CAM & digital support EagleSoft support Software user experience testing Client software training Key PTC Statistics 100,000+ customers 1.2 million calls annually 5,000 calls daily 400+ employees 17
18 Growth Driver: Consumables Share Gains
19 Growth Driver: Core Equipment Innovation & Facility Transformation
Growth Driver: Technical Service & Support Expansion As practices embrace digital technology, our unique support structure becomes essential Every software upgrade a challenge in change management for our customers Integrated support infrastructure: After-sales training & support: Patterson Technology Center Onsite assistance: TechEdge 20
Special Markets Large group practice & institutional customers Deliver world-class logistics & client support Offer unique equipment, technology & technical support platform specific to Special Markets Partner strategically with growing client base for mutual opportunities 21
e-commerce Pattersondental.com Best-in-class e-commerce experience Growing e-commerce traffic: 86% of customer orders 99% of sales rep orders 22
Capture market share (private practice, special markets, dental specialists) Expand leadership position in digital technology platforms Optimize TechEdge service infrastructure Implement NGS initiative to leverage market opportunities Grow through organic expansion & acquisitions Further enhance patient experience & lifestyle practice Strategic Priorities 23
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