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Owens & Minor
4Q 2007 Financial Results

Management Conference Call
Supplemental Information
February 5, 2008
Safe Harbor
Except for the historical information contained herein, the matters discussed in this
presentation may constitute forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from those projected.
These include: the ability to assimilate the operations of an acquired business, the
potential loss of key personnel, intense competitive pressures, such as pricing, within
the healthcare industry. They also include the success of direct marketing programs
in attracting new customers, the ability to retain existing customers, changes in
customer order patterns, changes in healthcare laws and regulations, changes in
government, including Medicare, reimbursement guidelines and private insurer
reimbursement amounts, the ability to maintain product suppliers, product price
increases by suppliers and other factors discussed from time to time in the reports
filed by the company with the Securities & Exchange Commission. The company
assumes no obligation, and expressly disclaims any such obligation, to update or alter
information, whether as a result of new information, future events, or otherwise.
Revenue
(GAAP, dollars in millions)


   $2,000
                                                         $1,748
                              $1,686            $1,687
                                       $1,679
                $1,652
   $1,600

   $1,200

     $800

     $400

         $0
                4Q06          1Q07     2Q07     3Q07     4Q07
Gross Margin
(GAAP, as a percent of revenues)


  10.8%

              10.6%                        10.6%   10.6%
                                   10.5%
                         10.4%
  10.4%




  10.0%
               4Q06      1Q07      2Q07    3Q07    4Q07
Selling, General &
Administrative Expense
(GAAP, as a percent of revenues)

  9.5%
         9.2%
  9.0%
                8.5%
  8.5%

                       7.9%          7.9%
  8.0%                        7.8%

  7.5%

  7.0%
         4Q06   1Q07   2Q07   3Q07   4Q07
Operating Earnings
(GAAP, as a percent of revenues)

   3.0%
                                          2.4%   2.3%
   2.5%                            2.2%
   2.0%
                        1.5%
   1.5%
              0.9%
   1.0%

   0.5%

   0.0%
              4Q06       1Q07      2Q07   3Q07   4Q07
Earnings per Share
(GAAP, diluted)

   $0.60                                      $0.55
                                      $0.52
   $0.50                      $0.45

   $0.40

                      $0.27
   $0.30
              $0.18
   $0.20

   $0.10

   $0.00
              4Q06    1Q07    2Q07    3Q07    4Q07
2008 Outlook
 “Based on our size and penetration of the acute-care
  distribution market, as well as our ability to offer our
  customers innovative supply-chain management
  solutions, we believe we will achieve 2008 revenue
  growth in the 5% to 7% range, outpacing overall
  industry growth rates. We believe that this anticipated
  revenue growth and our ability to manage our business
  efficiently and effectively will translate into earnings per
  diluted share in a range of $2.20 to $2.30, representing a
  23% to 28% increase in earnings for the year.”
      - Craig R. Smith, President & CEO
2008 Outlook
Income Statement
• Revenue Growth
  – Targeted to be in 5% to 7% range

• Gross Margin
  – Targeted to be consistent as a % of revenues compared
    to the 2nd half of 2007

• SG&A
  – Targeted mid-single digit basis point improvement compared
    to the 2nd half of 2007

• Annual Tax Rate
  – Targeted to be consistent with 2007
2008 Outlook
Cash Deployment

 • Capital Expenditures
   – Targeted to be in the range of $25-$35 million

 • Excess Capital Usage
   – Financially/strategically attractive acquisitions
   – De-lever revolver debt
Supplemental Information

Schedule of Sales Days per Year
              2006       2007       2008
1st Quarter   64 days    64 days    64 days
2nd Quarter   64 days    64 days    64 days
3rd Quarter   63 days    63 days    64 days
4th Quarter   62 days    63 days    63 days
  Totals      253 days   254 days   255 days
Owens & Minor
www.owens-minor.com
4th Quarter 2007
Investor Relations Contacts:
Trudi Allcott   truitt.allcott@owens-minor.com 804.723.7555
Chuck Graves    chuck.graves@owens-minor.com 804.723.7556

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Owens_slides

  • 1. Owens & Minor 4Q 2007 Financial Results Management Conference Call Supplemental Information February 5, 2008
  • 2. Safe Harbor Except for the historical information contained herein, the matters discussed in this presentation may constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. These include: the ability to assimilate the operations of an acquired business, the potential loss of key personnel, intense competitive pressures, such as pricing, within the healthcare industry. They also include the success of direct marketing programs in attracting new customers, the ability to retain existing customers, changes in customer order patterns, changes in healthcare laws and regulations, changes in government, including Medicare, reimbursement guidelines and private insurer reimbursement amounts, the ability to maintain product suppliers, product price increases by suppliers and other factors discussed from time to time in the reports filed by the company with the Securities & Exchange Commission. The company assumes no obligation, and expressly disclaims any such obligation, to update or alter information, whether as a result of new information, future events, or otherwise.
  • 3. Revenue (GAAP, dollars in millions) $2,000 $1,748 $1,686 $1,687 $1,679 $1,652 $1,600 $1,200 $800 $400 $0 4Q06 1Q07 2Q07 3Q07 4Q07
  • 4. Gross Margin (GAAP, as a percent of revenues) 10.8% 10.6% 10.6% 10.6% 10.5% 10.4% 10.4% 10.0% 4Q06 1Q07 2Q07 3Q07 4Q07
  • 5. Selling, General & Administrative Expense (GAAP, as a percent of revenues) 9.5% 9.2% 9.0% 8.5% 8.5% 7.9% 7.9% 8.0% 7.8% 7.5% 7.0% 4Q06 1Q07 2Q07 3Q07 4Q07
  • 6. Operating Earnings (GAAP, as a percent of revenues) 3.0% 2.4% 2.3% 2.5% 2.2% 2.0% 1.5% 1.5% 0.9% 1.0% 0.5% 0.0% 4Q06 1Q07 2Q07 3Q07 4Q07
  • 7. Earnings per Share (GAAP, diluted) $0.60 $0.55 $0.52 $0.50 $0.45 $0.40 $0.27 $0.30 $0.18 $0.20 $0.10 $0.00 4Q06 1Q07 2Q07 3Q07 4Q07
  • 8. 2008 Outlook “Based on our size and penetration of the acute-care distribution market, as well as our ability to offer our customers innovative supply-chain management solutions, we believe we will achieve 2008 revenue growth in the 5% to 7% range, outpacing overall industry growth rates. We believe that this anticipated revenue growth and our ability to manage our business efficiently and effectively will translate into earnings per diluted share in a range of $2.20 to $2.30, representing a 23% to 28% increase in earnings for the year.” - Craig R. Smith, President & CEO
  • 9. 2008 Outlook Income Statement • Revenue Growth – Targeted to be in 5% to 7% range • Gross Margin – Targeted to be consistent as a % of revenues compared to the 2nd half of 2007 • SG&A – Targeted mid-single digit basis point improvement compared to the 2nd half of 2007 • Annual Tax Rate – Targeted to be consistent with 2007
  • 10. 2008 Outlook Cash Deployment • Capital Expenditures – Targeted to be in the range of $25-$35 million • Excess Capital Usage – Financially/strategically attractive acquisitions – De-lever revolver debt
  • 11. Supplemental Information Schedule of Sales Days per Year 2006 2007 2008 1st Quarter 64 days 64 days 64 days 2nd Quarter 64 days 64 days 64 days 3rd Quarter 63 days 63 days 64 days 4th Quarter 62 days 63 days 63 days Totals 253 days 254 days 255 days
  • 12. Owens & Minor www.owens-minor.com 4th Quarter 2007 Investor Relations Contacts: Trudi Allcott truitt.allcott@owens-minor.com 804.723.7555 Chuck Graves chuck.graves@owens-minor.com 804.723.7556