delivering results - s22.q4cdn.com · core equipment • dental equipment & software sales up...
TRANSCRIPT
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POSITIONED
Delivering Results
FOR GROWTH
Analyst & Investor Day October 14, 2015 Paul Guggenheim CEO, Patterson Dental
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PAUL GUGGENHEIM
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• 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
CEO, Patterson Dental
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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
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Focused on Growth
Our Primary Growth Drivers
Digital technology
Consumables market growth
Core equipment innovation & facility transformation
Technical service & training support expansion
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56%
33%
11%
Technical Service & Other
Total Equipment & Technology
Consumables
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Patterson Dental Today
$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.
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Patterson Dental Competitive Landscape
• North America’s largest provider of capital equipment, including CAD/CAM & digital technology
• >1,500 direct sales reps
• >105,000 SKUs
• ~5,700 Patterson brand products
• Over 135 years in dental business
33% share
One national distributor
Numerous regional and
local suppliers
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Private Practice Special Markets (National/Large
Group Accounts)
Target Market Currently positioned at ~33% of $7B North American dental market
Global Dental Specialist (Ortho, Endo, Perio)
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2010
U.S. 40M EU 86M
World 528M
2020 U.S. 55M EU 101M
World 719M
2030 U.S. 70M EU 118M
World 976M
Population Growth: 65+ Age Group
Source: www.agingstats.gov 8
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World-Class Product Offering: Consumables
Sales of
consumable dental supplies increased 3.3%
in FY15 on constant
currency basis
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GROWTH DRIVERS IN DETAIL
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World-Class Product Offering: Equipment Technology
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CAD/CAM & Digital
Core equipment
• 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
In millions
$457 $354
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Growth Driver: Digital Technology Expansion
Existing Opportunity
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0
20
40
60
80
100
Computers/Practice Management
DigitalX-Ray
CAD/CAM Cone Beam/3D
3%
40%
83%
96%
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TECHNOLOGY SALES & SUPPORT OVERVIEW Josh Killian Vice President, Marketing Technology and Equipment
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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
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Get More with CEREC & Patterson
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Proprietary Patterson ABCD Education & Training
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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
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Growth Driver: Consumables Share Gains 18
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Growth Driver: Core Equipment Innovation & Facility Transformation
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• 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
Growth Driver: Technical Service & Support Expansion
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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
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e-Commerce
Pattersondental.com • Best-in-class e-commerce
experience
Growing e-commerce traffic: • 86% of customer orders • 99% of sales rep orders
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• 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
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POSITIONED
Delivering Results
FOR GROWTH
Questions?