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Scott Anderson. Steve Armstrong. Chairman, President & Chief Executive Officer. Executive Vice President & Chief Financial Officer

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Steve Armstrong

Executive Vice President &

Chief Financial Officer

Scott Anderson

Chairman, President &

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Forward-Looking Statements

This presentation contains forward-looking statements as defined

in the Private Securities Litigation Reform Act of 1995.

Forward-looking statements are information of a non-historical nature and

may be affected by risks and uncertainties that are inherent in the

Company’s business and beyond the ability of the Company to

control. Such risks and uncertainties could cause actual results to

differ materially from those anticipated. Accordingly, these risks are

qualified in their entirety by the cautionary language contained in

the

Company’s

filings

with

the

Securities

and

Exchange

Commission.

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Agenda

Business Overview

Strategies and Operations

Financials

(5)

About Patterson

Patterson Companies

Specialty, value-added distributor serving three growing markets - Dental, veterinary, & rehabilitation supply

Patterson Dental

Provides a virtually complete range of consumable dental products, equipment and software, turnkey digital solutions and value-added services to dentists and dental laboratories throughout North America

Patterson Veterinary

Leading distributor of consumable veterinary supplies, equipment and software, diagnostic products, vaccines and pharmaceuticals to companion-pet veterinary clinics

Patterson Medical

World leading distributor of rehabilitation supplies and non-wheelchair assistive patient products to the physical and occupational therapy markets.

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Patterson Companies

Dental

65%

Medical

14%

Veterinary

21%

Specialty Distributor Serving Three Markets

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Patterson Dental

• 33% market share (est.)

• Highly developed single-source strategy

• Over 120,000 customers in North America

• Leading provider of next-generation technology

• Largest distributor of dental equipment • Industry’s largest sales force

• Branch office network spans US & Canada

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Patterson Veterinary

• 21% national market share (est.) • Full-service model

– Sells widest range of consumables and

pharmaceuticals in industry

– Expanding offerings of equipment, software, technical service, and other value-added services

– Growing range of technology solutions

• Serves companion-pet practices throughout U.S.

• Growth via internal expansion and acquisitions

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Patterson Medical

• 12% global market share (est.) – 3X-4X larger than nearest

competitor

– Operations in North America, U.K., France & Australia

• Only single-source of supply in industry • Owns/manufactures many leading

brands

• Largest sales force in industry and major catalog operation

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Patterson’s Markets

Dental

• Projected long-term growth rate: 4 - 6%

• Growth drivers: aging population, demand for specialty services, aesthetics, technological advancements, and insurance

Companion-Pet Veterinary

• Projected long-term growth rate: 4 - 5%

• Fastest growing segment of overall vet market

• Growth drivers: growing pet ownership, families spending more on pet care, human/animal bond

Rehabilitation

• Projected long-term growth rate: 3 - 5%

• Growth drivers: aging population, active lifestyles and sports injuries, medical procedures with rehab protocols

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Shared Market Characteristics

• Fragmented markets populated by large numbers of

practitioners and small practices

– Many practices lack back-office support

• Customers value relationship with skilled sales representative

• Strong demand for relatively low-cost goods

– Supplies do not account for high percentage of customer’s

operating expenses

• Market leaders with strong competitive positions

• Markets growing faster than overall economy

• Sustainable competitive advantages

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Agenda

Business Overview

Strategies and Operations

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Full-Service, Single-Source Model

Well-suited to needs of Patterson’s markets

Enables businesses to meet complete needs of customers

Makes value-add proposition tangible for customers

Patterson Dental

• Most highly developed value-added business model

• Meets complete needs of dental offices and labs

Patterson Veterinary

• Strong progress at adopting value-added platform

• Growing range of equipment, local technical support, equipment financing,

value-added services, client communication tools

Patterson Medical

• Advancing value-added model; strong upside potential

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Value-Added Model

• Highly trained sales force; business confidant

• Most extensive inventory; very high service levels

• Specialized customer service personnel

• No questions asked return policy

• Financing

• Over 1,500 service technicians

• Office design and project management

• Electronic order entry

• Loyalty programs

• E-claims and statement processing

• Continuing professional education

• Patient education programs

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Distribution Strategy

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Field Sales Force

Forges close customer relationships

Offers visibility into current and future customer needs

Enables unsurpassed customer service

Patterson Dental

• Industry’s largest sales force with over 1,500 field representatives

• Specialized equipment and CEREC reps

Patterson Veterinary

• Over 240 field sales reps in 18 branches

• Specialized equine, equipment and technology representatives

Patterson Medical

• Industry’s largest sales force with over 280 representatives

• Augmented by industry’s most extensive catalog operation

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Decentralized Management

Customer decisions made at branch level

Encourages entrepreneurism

P&L responsibility fosters local accountability

Patterson Dental

• 75 U.S. branches from coast to coast; 9 in Canada

Patterson Veterinary

• 18 branch offices

• Growing geographic footprint via internal expansion and

acquisitions

Patterson Medical

• 18 branch offices

• Branch initiative started in 2006 through acquisitions and internal

start-ups

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Strong Focus on Technology

Improves practice productivity

Enables practitioners to generate additional revenue

New procedures/improves clinical outcomes

Patterson Dental

• CEREC

®

dental restorative system; Schick digital x-ray; cone beam;

Eaglesoft practice management software; CAESY patient education

software; Dolphin imaging software

Patterson Veterinary

• ePetHealth; EquiHealth; Vetsource; Diagnostic Imaging Atlas®; IntraVet

practice management software;

Patterson Medical

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Patterson Technology Center

• Provides Patterson a strong competitive advantage

• Software development and customer support for all three businesses • Manufacturer support, including warranty services

– Exclusive distributor of Sirona products (Schick, CEREC, Galileos) – Also, Air Techniques and Planmeca

• Supports Patterson branded computer hardware

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Agenda

Business Overview

Strategies and Operations

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5-Year Sales

2009

2010

2011

2012

2013

$2,174

$2,167

$2,236

$2,288

$2,380

$551

$644

$675

$735

$755

$369

$426

$505

$513

$502

Patterson Medical

Patterson Veterinary

Patterson Dental

$3,637

(in millions)

$3,536

$3,094

$3,237

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5-Year Earnings Per Share

2009

2010

2011

2012

2013

$1.69

$1.78

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Operating Expense Ratio

2009

2010

2011

2012

2013

(24)

2009

2010

2011

2012

2013

11.2%

11.0%

11.0%

10.1%

9.7%

(25)

Free Cash Flow

2009

2010

2011

2012

2013

$92

$236

$226

$292

$279

(26)

Book Value Per Share

2009

2010

2011

2012

2013

$9.72

$11.68

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Cash Returned to Shareholders

2009

2010

2011

2012

2013

$-

$12

$147

$417

$223

(in millions)

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4th Quarter, Fiscal 2013

• Consolidated sales: +3.1% to $936.3 million

• EPS: $0.62 vs. $0.58 in Q4 FY12

Patterson Dental

• Sales increased 6.4% from the year-earlier period

• Sales of equipment rose nearly 14% from the year-earlier level, driven by

strong performances in technology categories, particularly digital imaging

• Strong demand for next-generation CEREC system with new Omnicam

acquisition unit

Patterson Veterinary

• Internally-generated sales +1.9%

– Adjusted to exclude the impact from the change in a nutritional

distribution agreement in the spring of 2012 (approx. 4% impact)

– Attained goal of being a national technical service provider

Patterson Medical

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Fiscal 2014 Outlook

• Company provided full-year earnings guidance to be in the range of $2.10 to $2.20 – Assumptions

• Stable economic conditions in North America

• Modest operating margin expansion, excluding information technology investments

• EPS impact of $0.06 from information technology investments • No impact from share repurchases that may occur during the year • Strong cash flow generation similar to fiscal 2013 levels

• Businesses have strong competitive positions in markets and aggressively pursuing opportunities

• Conservative, flexible balance sheet • Capital deployment

– Investing in business remains #1 priority – Dividends

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References

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