POSITIONED
Delivering Results
FOR GROWTH
Analyst & Investor Day October 14, 2015 Paul Guggenheim CEO, Patterson Dental
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
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)
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
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
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%
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
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?