A letter to our customers from Stanley M. Bergman

Stanley M Bergman

At the end of 2020, we at Henry Schein made the case for optimism heading into the new year. Now, almost six months into 2021, we remain optimistic that the pandemic ultimately will be contained, that the global economy will continue to recover, and that our health care systems will emerge from the crisis stronger.

Our optimism stems from the increasing availability of vaccines that work, a more stable health care supply chain, and the continued selfless dedication of the world's health care professionals. We also see many sectors of civil society, including corporations, publicly committing to advancing the social good. We firmly believe that history will remember the post-pandemic years for an explosion of economic and social innovation and improvement.

Of course, the world has many hurdles to clear before we arrive at this better place. Global vaccine distribution is terribly inequitable. As some countries celebrate their reopening, others wrestle with a virus that continues to mutate and spread. While the world knows how to defeat the virus, achieving that goal will take time, endurance, and global cooperation. The fortunate must not forget those less fortunate in these difficult times.

Stanley M Bergman
For our part, Henry Schein announced in May the donation of more than 2.5 million items of personal protective equipment (PPE) and other infection control supplies to front-line health care workers in Brazil and India, who are now dealing with a surge of COVID-19. This built on donations in 2020 totaling more than 10 million items, including face shields, hand sanitizer, isolation gowns, thermometers, coveralls, and face masks, toward COVID-19 relief efforts.

These are among the many actions we have taken to alleviate the outbreak, as noted in our 2020 Sustainability and Corporate Social Responsibility Report, titled "Resilience for a Healthier World." In the report, we detailed our efforts to advance the Environmental, Social, and Governance (ESG) movement, publishing new and expanded disclosures and goals on ESG performance. For example, we announced a goal to donate at least $50 million in cash and product by 2025 to advance health equity. We also announced that by 2030, in alignment with our commitment to Paradigm for Parity®, Henry Schein will strive to have gender parity at senior leadership levels.

Specific to the health care markets we serve, the supply chain for PPE has improved considerably, including for examination gloves. The market for certain types of equipment has tightened, and we are watching the supply chain closely as components and logistics have been affected by various factors, similar to other industries. Our mission throughout this period has been to do all we can to ensure that you can rely on us to deliver the products and solutions you need to operate efficiently and effectively.

Throughout the pandemic, Henry Schein was most active in securing PPE and point-of-care rapid tests for office-based medical and dental practitioners (dentists, dental labs, and physicians) and their teams. Our participation in, and leadership of, several public private partnerships allowed us to advance urgent collaborative solutions to the health care product shortages the world faced. We invested considerable resources in conducting rigorous regulatory and quality due diligence on more than 1,000 potential new sources of PPE and tests around the world, expending significant capital in a volatile supply market. We airlifted product when supply channels became jammed as part of our effort to help customers manage through the crisis of a lifetime. Henry Schein also impressed upon government officials at all levels that office-based practitioners are an essential part of the health care infrastructure.

Rest assured that Henry Schein will remain vigilant in securing PPE while pursuing every avenue to alleviate equipment shortages.

As we noted in December, the spirit of optimism that Henry Schein carried into 2021 reflects the enormous contribution you make as health care professionals to improving the life of your patients and, indeed, the health of the world. We remain inspired by your commitment and we thank you, as always, for the privilege of serving you.       Sincerely,
Stanley M. Bergman
Chairman of the Board and Chief Executive Officer