Thank you for that kind introduction. It seems like we all have - - PDF document

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• Thank you for that kind introduction.
• It seems like we all have become very dependent on
• ur Blackberries,
• and if it ever goes down it causes us great anxiety.

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• 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.

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• 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
• ur 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.”

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• “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

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• 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. B. More than 700,000 customers worldwide –

• 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 H. Number 14 on the Barron’s 500 I. We are proud of once again being included in Fortune’s list of the World’s Most Admired Companies.

• This list includes 673 companies from 32 countries.

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• 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
• n 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.

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• 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.

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• 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
• f 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.

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• 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
• ur 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.

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• 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
• n 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.

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• 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.

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• 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
• f 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.

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• 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
• ur 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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• “Helping health happen” is clearly seen in our commitment

to society through Henry Schein Cares.

• We seek to be a catalyst organization in public-

private partnerships that include

• private industry, health care practitioners and their

professional associations, educators, governments and NGOs.

• We forge long-term strategic relationships with our NGO

partners and actively participate in planning efforts with them.

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• We mobilize our supplier partners to participate in access to

care programs.

• For many small and mid-sized companies that may have the

expertise and desire to help, we can provide them with an avenue to participate in these programs.

• We help mobilize our customers to participate in these

programs.

• For example, through Henry Schein Cares health

professionals volunteering for outreach missions to serve or train underserved populations in the United States or abroad can apply for Travelers Packs of prepackaged health care products.

• We provide ways for Team Schein Members to volunteer for or

contribute to these programs.

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• Public-private partnership is essential because the global health issues

we face are too daunting for any single sector of society to begin to effectively address.

• A. Corporations in the private sector may have the resources and

infrastructure to respond quickly,

• but they lack the necessary broad mandate of a government.
• B. Governments can provide this power to act on a broad scale,
• but they may not have the specific professional expertise that is

necessary.

• C. Associations representing the various health care professions—

including clinicians and educators—have this expertise,

• but may need the logistical abilities of organizations already on

the ground in affected countries.

• D. And non-governmental organizations (NGOs) may have

committed staff already in place in these countries,

• but are usually dependent on external sources for the products,

services and funding to drive their in-country efforts.

• Viewed in this way—
• with each sector as an integral and interdependent spoke supporting

a wheel that can address today’s global health care challenges—

• it is easy to see the importance of public-private partnerships.

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• By working together and contributing our core competencies –
• those resources and expertise for which we individually

are best suited –

• we can begin to move this wheel and get traction

against the important health care issues of our time.

• An essential element in this model is the hub at the center of the

wheel that has strong ties to each of the sectors

• and

is willing to leverage these relationships, in collaboration with local communities,

• to mobilize support for health care issues of

common concern.

• We see ourselves as a hub,
• and this central catalytic role is the one we seek to

play through Henry Schein Cares.

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• Through Henry Schein Cares, we have been pleased to

support the work of the New York State Dental Association and Foundation for many years.

• For any organization, this is still an era of challenges and

strained economic resources.

• These challenges demand that we use disciplined approaches

to address important health issues.

• We must understand our core competencies, and through

enlightened self-interest, address those issues that intersect with our business.

• Our paths converge in that area that enables us to do well as

a business or association as we also do good for society.

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• We all recognize that we have an obligation to the

patient population that is less fortunate.

• At Henry Schein we are meeting this obligation through
• ur Henry Schein Cares activities.
• At the New York State Dental Association and Foundation,

you are meeting this obligation through individual volunteerism, practice philanthropy and programs

• rganized through the Association and Foundation, such as
• student aid programs such as the Deans Awards to

recognize academic excellence and commitment to public health;

• education and research grants,
• public education campaigns,
• the

promotion

• f

the children’s dental health certification project;

• and the Give Kids A Smile awards to

promote volunteerism.

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• I spoke earlier about the importance of public-

private partnerships,

• and wanted to conclude today with three recommendations
• n how the New York State Dental Association and its

Foundation

• could enhance its position for being part of

these partnerships and encourage the participation of companies.

• When a for-profit company evaluates a request or proposal

from a foundation,

• the first thing they look for is how much support and

representation the foundation receives from its members.

• Regardless of the size of their annual gifts or donations from

their core constituents,

• it is important that the number of dentists participating be

a significant majority representative of that group.

• Yes, it is important to give as much as you can,
• but is also is important that you encourage other members

to give

• so a third party can see that this organization is

well supported by its own core constituents.

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• Second, beyond financial giving a company will look at how

many programs an association’s members participate in and support through volunteerism,

• either individually or collectively.

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• And third, a company will want to evaluate how these programs supported by

the association and foundation resonate with the public that they are intended to serve.

• Are there metrics demonstrating success or reports issued on progress

made?

• Are there testimonials available from those who have benefitted from the

programs?

• Has the foundation achieved recognition in the form of government agency

grants?

• Can the effectiveness of the state foundation programs be evaluated

against other state foundations and their programs?

• Does the foundation represent the interests and social aspirations of the

membership and the community in which the services are intended?

• Is there diversity of opinion and representation represented within the

association and foundation?

• For this final point, we are very proud that our good friend, Dr. Chad Gehani,

has been elected President of the New York State Dental Association,

• and we are looking forward to celebrating with him at his dinner in New

York City on June 25.

• We carefully follow the careers of many members of the diversity community in

the NYSDA and are proud of the fact that that New York is clearly enlightened and well represented,

• both from the perspective of minority populations and of women in the

profession who are taking leadership roles at the county and state level.

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• The long partnership that we have enjoyed with the New York

State Dental Association and its Foundation is one of our most dynamic and productive relationships.

• On behalf of my 14,000 colleagues from Henry Schein,
• we look forward to building on this strong history of success
• and to joining with you in many more public-private

partnerships that will enhance access to oral care

• and further the mission of the Association and

the Foundation for years to come.

• Thank you.