McKesson Corporation · NYSE:MCK
McKesson — J.P. Morgan Healthcare Conference 2016
11 slides from McKesson's conference presentation, Jan 11, 2016
Slide 1: McKesson Corporation J.P. Morgan Healthcare Conference
McKesson Corporation J.P. Morgan Healthcare Conference John Hammergren Chairman and Chief Executive Officer
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the information in this presentation is not historical in nature and may constitute forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the
Slide 3: Fiscal 2016 Outlook
MCKESSON Fiscal 2016 Outlook
Slide 4: January 11, 2016: FY16 Update
January 11, 2016: FY16 Update • Revised FY16 Outlook: Adjusted EPS range $12.60 – $12.90 • Generic pharmaceutical pricing weaker in second half • Reduction in full-year adjusted tax rate • Additional share repurchases completed and planned • Review of administrative cost structure 4
Slide 5: FY16: Evolution Of Adjusted EPS Guidance
FY16: Evolution Of Adjusted EPS Guidance $12.60 – $12.90 $12.20 – $12.70 FY16 Original Gain on Business Business Customer FY16 Guidance Sales, Tax Rate Performance and Consolidation and Updated Guidance May 2015 and Discrete Items Capital Deployment Generic Pricing January 2016 Trends 5
Slide 6: Pricing Trends Evolving Different To Our Expectations
Pricing Trends Evolving Different To Our Expectations McKesson Sees Generic FY16 Quarterly Breakdown Inflation Rates Slowing Q1 Q2 Q3 Q4E FY13 FY14 FY15 FY16E FY17E 6
Slide 7: FY16 Tailwinds And Headwinds
FY16 Tailwinds And Headwinds Tailwinds Headwinds • Solid organic revenue growth – Demand from largest customers – Health Mart banner expansion – Specialty, Canada, Medical-Surgical and Celesio • Generic pharmaceutical pricing and • Celesio and PSS transaction synergies customer consolidation • Gener
Slide 8: Fiscal 2017 Preliminary Outlook
Fiscal 2017 Preliminary Outlook
Slide 9: January 11, 2016: FY17 Update
January 11, 2016: FY17 Update • Preliminary FY17 Adjusted EPS growth of 7% to 12%*, with 3% to 4% from capital deployment • Key underlying assumptions: – Nominal benefit from generic pharmaceutical pricing trends and impact of FY16 customer transitions – Pricing for brand pharmaceuticals modestly be
Slide 10: Long-Term Fundamentals Remain Strong
Long-Term Fundamentals Remain Strong Attractive Well-positioned healthcare markets business In Business for Better Health Portfolio Experienced approach to management and capital strong track record deployment 10
Slide 11: McKesson
MCKESSON