 PSS World Medical Investor Day Conference June 5, 2007 Jacksonville, Florida Exhibit 99.2 |
 David M. Bronson Executive Vice President and Chief Financial Officer Investor Day Conference June 5, 2007 Jacksonville, Florida |
 Revenue Growth 1000 1200 1400 1600 1800 2000 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 $1,178 $1,350 $1,474 $1,619 ($ in millions) $1,742* $1,825 - $1,830 FY 08 Goal 10.3% PSSI FY 03 - FY 07 compound annual growth rate 3.7% compound annual growth rate U.S. Alternate site market segment FY03 – FY 07 *Expected sales growth of 7.5% - 8.5% excludes $48.6 million of FY 07 influenza vaccine sales |
 Revenue Growth ($ in millions) Elder Care Business Revenues Physician Business Revenues FY 07 FY 08 FY 07 FY 08 $1,227 $1,285 - $1,288* $514 $539 - $541 *Mid point of FY 2008 Goals |
 Revenue Growth Drivers Physician • Accelerate growth of Select sales • Continue to grow Rx • Renewed growth of equipment • No participation in flu vaccine market Elder Care • Accelerate growth of Select sales • Grow Home Health revenues • Expand and improve sales & marketing teams |
 Gross Margin FY 03 FY 04 FY 05 FY 06 FY 07 (in percent) 28.52% 28.55% 28.72% 28.86% 28.71% |
 Gross Margin Drivers + Increased mix of Select Brand + Margin enhancement programs with brand manufacturers + Training and tools for sales reps – Continued competitive pressures – Increased utilization of GPO’s by providers – Globalization |
 Select % of Total Revenues 12% Global Sourcing FY 2008 Goals Import vs Direct 66% Direct 34% Import & Suppliers |
 Operational Initiatives Cost-To-Serve as % of Sales FY 05 FY 06 FY 07 0 5 10 15 20 FY 05 FY 06 FY 07 14.2 12.4 11.8 16.7 17.3 16.2 Physician Business Elder Care Business |
 Operational Initiatives • Professional delivery program • Employee retention and incentives • Improved inventory accuracy • Warehouse management technology |
 Operating Income Growth: FY 2003 – FY 2007 0 25 50 75 100 FY 03 FY 04 FY 05 FY 06 FY 07 $25.9 $47.8 $61.6 $72.4 ($ in millions) $89.5 1 FY 2007 excludes $7.0 million write-down of influenza vaccine inventory 36% C.A.G.R. 1 |
 Goal: 6% - 6.5% (run rate FY2008) Strategic Plan Continued Operating Margin Expansion FY 06 FY 07 FY 08 Total Costs As % of Revenue 96.0% 95.0% 94.0% Total Revenue ($ in Billions) $1.5 $2.0 Total Revenue Total Costs as % of Revenue 4.5% FY06 5.1% FY07* * Excludes $7.1 Million write-down of influenza vaccine inventory |
 Operating Margin Growth: FY 2003 - FY 2008 Goal 1 2 3 4 5 6 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 2.2% 3.5% 4.2% 4.5% 5.1% 5.5%-5.6% Actual Goal |
 Shared Services Initiatives • “ETDBW” • Invest in Product Customer Intelligence (PCI) systems • Global sourcing infrastructure and execution • Develop management talent • Balanced investments in information technology • Working capital and risk management |
 “ETDBW” |
 Product Customer Intelligence (PCI) Objective: Strategy Owner: PCI Executive Director Strategies/Contributions: Objective: Strategy Owner: David Remisiewicz Strategies/Contributions: Objective: Strategy Owner: PCI Executive Director Strategies/Contributions: Objective: JD Edwards based functionality for the automation of contract management, price changes, etc. Leverage supplier EDI capabilities Implement Costing Strategies in Target Categories Leverage cross-reference data capabilities Support Supplier Management in achieving more lucrative deals with Top 150 Suppliers not yet targeted for category consolidation Simplify PCI processes and structure to enable ETDBW improvements Strategic Objectives: Create a dedicated PCI Help Desk Implement tracking and visibility system for all inbound calls Align PCI Service Level Agreements with Divisional objectives Design and Implement a new Contract, Pricing, and Rebate Management System Collaborate with Supplier Management to support the development of internal costing strategies Implement costing accuracy metrics |
 Global Sourcing Objective: Strategy Owner: Tom D'Innocenzi Strategies/Contributions: Objective: Objective: Strategy Owner: Tom D'Innocenzi Strategies/Contributions: Objective: Strategy Owner: Steve Martin Strategies/Contributions: Objective: Strategy Owner: Seve Martin Strategies/Contributions: Grow Divisional Margins by Leveraging & Increasing Select Product Line Strengthen the Global Sourcing Infrastructure Strategic Objectives: Build and develop a China based team Ensure quality, availability and control of Select Brand products Strengthen the manufacturer, product quality, and monitoring processes Implemtn and maintain initiatives to ensure availability and control Select brand products - GOAL: 99% Fill Rates Strengthen image, position and performance of Select Brand products Establish and maintain quality standards for new and existing products to meet product scoping Update all Select products to new graphic standard Maximize "ROCC" for Select Brand products Improve overall profitability through increased logistics efficiencies - GOAL: $11.35 MM |
 Management Development |
 Information Technology |
 Working Capital & Risk Management Objective: Strategy Owner: David Klarner Strategies/Contributions: Objective: Strategy Owner: John Willim Strategies/Contributions: Objective: Strategy Owner: David Klarner / Chad Appleby Strategies/Contributions: Objective: Strategy Owner: David Klarner Strategies/Contributions: Objective: Strategy Owner: John Willim / Hua Li Strategies/Contributions: Objective: Strategy Owner: John Willim Strategies/Contributions: Improve Cash Flow Forecasting Accuracy and Transparancy Leverage Hyperion for collection and consolidation of Cash Flow "Inputs" Collaborate with CP to improve Inventory forecasting capabilities related to cash flow Strategic Objectives: Maximize Generation of Operating Cash Flow Reduce "Net Investment" in Inventory Develop model to mazimize ROCC and OCF Reduce total cost of Insurable Risk as a % or Revenue Identify material unmitigated risk and develop model Enable shift of Tax focus from Compliance to Strategic Identify and implement tax strategies aimed at reducing Company's overal effective tax rate Achieve "World Class" Efficiency in Treasury Services Leverage the "Treasury Leadership Roundtable" Best Practices guidelines for "World Class" Leverage technology to enhance efficiencies throughout the Sales Order to Cash Cycle Implement Remote Deposit Capture enterprise wide for handling of check deposits Collaborate with divisions on credit card acceptance practices - fully automate with JD Edwards |
 EPS Growth 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 $0.12 $0.42 $0.51 $0.66 Earning Per Diluted Share from continuing operations 1 1 Excludes tax benefit of $5.6 million, or $0.09 per diluted share in FY 2005 $0.73 $0.86 - $0.88 FY 2008 Goal |
 Fiscal Year 2003 - 2007: Historical Earnings Progression By Quarter 10% 15% 20% 25% 30% 35% 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr FY 2006 FY 2005 FY 2004 FY2005 excludes tax benefit of $5.6 million or $0.09 per diluted share FY 2003 FY 2007 |
 10 20 30 40 50 60 70 FY 05 FY 06 FY 07 FY 08 Operating Cash Flow Growth $36.3 $67.7 ($ in millions) $54.6 $16.6 $63 - $67 FY 08 Goal $59.8 $63.5 $65.0 Excludes NOL tax benefits of $3.7, $13.1, $19.7, and $18.3 million for FY 2007, FY2006, FY2005 and FY2004, respectively, which were primarily related to 2002 sale of the Imaging Business |
 Capital Spending FY 2008 $20 - $22 Million • Maintenance Capital $6 - $7 Million • PCI Platform $4 - 5 Million • Strategic systems development $5 - $6 Million • Infrastructure & rollover $3 - $4 Million |
 Return on Committed Capital FY 04 FY 05 FY 06 FY 07 24.2% 24.6% 25.4% 26.5% 31.1% in Q4 |
 Acquisition Strategy: FY 2008 • Target assets complementary to core business strategy - Fold-ins - Strategic • Size range $10mm-$50mm of revenues; potential for larger strategic assets • Accretive within 12 months • Funded with cash flows and bank debt • 1 - 2 each year, both businesses |
 Acquisition Strategy: Activus Healthcare Solutions • A $22 million CA.-based physician market distributor • Adds 14 sales reps with 19-year avg. tenure • Presence in ambulatory surgery centers • Accretive within 12 months; dilutive by $0.01 in FY 2008 |
 FY 2008: Financial Goals • Consolidated revenue growth 7.5% - 8.5% (excluding FY 07 Influenza sales of $48.6 million) • Operating cash flow $63.0 - $67.0 million • Earnings per diluted share $0.86 - $0.88 • Consolidated operating margin growth 40 - 50 bps (from 5.1% in FY 07, which excludes influenza inventory write-down) • Capital expenditures $20.0 - $22.0 million ($17.2 million in FY 07) Includes $0.01 EPS dilution due to partial year of Activus acquisition in FY 2008 |
 PSSI Investors have benefited from consistent execution of strategies and programs -20 30 80 130 180 230 280 330 380 430 480 530 580 630 680 730 780 10/10/00 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 Prices as of March 30, 2007, based on $100 investment PSSI HSIC PDCO MCK CAH % of Share Price Increase % 3/30/07 |
 GROWTH GROWTH CUSTOMER PROFIT ETHICS ETHICS CULTURE CULTURE EXECUTION EXECUTION |
 Thank You |