The Cigna Group · NYSE:CI
The Cigna — Cigna — Investor Presentation (May 2016)
24 slides from The Cigna's investor presentation, May 6, 2016
Slide 1: Cigna Corporation Investor Presentation
CIGNA CORPORATION INVESTOR PRESENTATION May 6, 2016 © 2016 Cigna 1
Slide 2: Forward looking statements
Forward looking statements CAUTIONARY STATEMENT FOR PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This presentation, and oral statements made with respect to information contained in this presentation, may contain forward-looking statements within t
Slide 3: Non-GAAP measures
Non-GAAP measures NON-GAAP MEASURES AND FINANCIAL INFORMATION The Company uses adjusted income from operations as the principal measure of performance when describing its financial results and outlook. On a consolidated basis, adjusted income from operations is not determined in accordance with acco
Slide 4: Table of contents
Table of contents Strategic focus Business segment profile Value creation framework Outlook and investor considerations © 2016 Cigna 4
Slide 5: Strategic Focus
Strategic Focus Strategic Affordability imperatives Personalization Enablers Insights Brand Localization Talent Value-based solutions with aligned incentives © 2016 Cigna 5
Slide 6: Global footprint
Global footprint Netherlands Belgium Denmark, Norway, Sweden Ireland Germany U.K. France Canada Spain Italy China USA Turkey Portugal South Korea Switzerland Kuwait Bahrain Hong Kong Taiwan Saudi Arabia UAE India Oman Thailand Singapore Operating in 30+ countries/jurisdictions Indonesia More than 39
Slide 7: Strong consistent track record in a challenging market
Strong consistent track record in a challenging market CAGR CI 13% Peers 8% CI 13% Peers 10% (in $ billions) $37.9 $34.9 $8.66 $32.4 $7.87 $29.1 $7.29 $6.49 $21.1 $21.9 $5.11 $18.3 $4.53 $4.07 2009 2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014 2015 Total Revenue Earnings Per Share* U.S
Slide 8: 2015 Business segment profile
2015 Business segment profile Operating Global Health Care Earnings* * Revenue* Operating Revenue* 1% 4% 2% 5% 11% 13% 9% 11% 21% 68% 79% 76% Global Health Care Commercial Medicare Global Health Care Global Supplemental Benefits Medicare Part D Medicaid Global Supplemental Benefits Group Disability
Slide 9: Global Health Care - Commercial
Global Health Care - Commercial Business overview / How we win Focus on health improvement and risk management, including a broad portfolio of health & wellness services which engage individuals to improve their health and productivity Partnering, providing information, and incentivizing physici
Slide 10: Global Health Care - Government
Global Health Care - Government Business overview / How we win Medicare Advantage Unique model focused on physician engagement and risk sharing arrangements Strong clinical capabilities and extensive experience in care coordination Top 3 market presence in our established MA markets Ongoin
Slide 11: Global Supplemental Benefits
Global Supplemental Benefits Business overview / How we win Leveraging deep consumer insights to drive product innovation and optimize distribution Meeting the rapidly growing demand for health protection needs Targeting the growing middle class and seniors populations globally Leading innov
Slide 12: Group Disability and Life
Group Disability and Life Business overview / How we win Disability absence management model that reduces overall costs to employers Integration of disability products with medical and specialty offerings, promoting health, wellness and optimizing employee productivity Complementary portfolio
Slide 13: Key themes of our strategy
Key themes of our strategy Go Go Go Deep Global Individual Focused on market needs Leveraging key capabilities Competitively superior revenue and earnings Growth drivers and new opportunities growth Strong margins and effective capital deployment Delivered 6 year CAGR of 13% total revenue and EPS* g
Slide 14: Our customer focus
Our customer focus © 2016 Cigna 14
Slide 15: Market needs: customers, employers, government
Market needs Customers Employers Government • Affordable, • Employee productivity • Effective, high value personalized solutions / Engagement base social programs • Provide peace of mind • Incentive-based programs • Programs for higher • Evolving process due risk / complexity to life and health stag
Slide 16: Guiding framework to deliver value
Guiding framework to deliver value Leverage Strong Pursue capabilities in margins and additional existing significant growth businesses free cash flow opportunities generation Driving differentiated value creation for customers and shareholders © 2016 Cigna 16
Slide 17: Leveraging capabilities in existing businesses over the long term
Leveraging capabilities in existing businesses over the long term Seniors Commercial Global Employer Supplemental Benefits 8%-10% average annual revenue growth over the long term Group U.S. Individual Disability and Life Multiple avenues for long term growth © 2016 Cigna 17
Slide 18: Leveraging capabilities in existing businesses over the long term
Leveraging capabilities in existing businesses over the long term High Double High Mid to high Mid teens single digit digit single digit single digit Commercial U.S. Individual Seniors Group Disability Global Employer and Life Supplemental Benefits Customer growth Customer growth Demographics Produc
Slide 19: Capital deployment history
Capital deployment history M&A and partnerships Reinvest in core businesses to accelerate growth • Increased investments in service and capabilities • Global branding • 150 Collaborative Accountable Care programs* Return capital to shareholders Joint Repurchased ~5.5 million shares of Ventures stock
Slide 20: Additional growth opportunities
Additional growth opportunities Long Term Potential Opportunities New Distribution Segment and Geographic Expansion Marketplaces Service Expansion • Public and Private • International • MSO Exchanges Marketplaces • Affinity Groups • Dual eligible / ABD • Additional Medicare populations Advantage Mar
Slide 21: 2016 Outlook
2016 Outlook** Full-Year Ending Projected 2016 Growth in: December 31, 2016 Total Revenue Mid-single digit percentage range Consolidated Earnings* High single digit percentage range Global Medical Customers Low single digit percentage range Earnings Per Share* $ 8.95 to 9.35 Competitively attractive
Slide 22: Investor considerations
Investor considerations Focused strategy and effective execution Multiple avenues for growth Attractive Competitively EPS growth attractive long Enabled by differentiated capabilities over the term outlook long term Strong margins and effective capital deployment Strong rationale for Cigna-Anthem co
Slide 23: Appendix: Reconciliation of Non-GAAP to GAAP Financial Measures
Appendix Reconciliation of Non-GAAP to GAAP Financial Measures (Dollars in millions, except per share amounts) YEAR ENDED 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013 12/31/2014 12/31/2015 CONSOLIDATED EARNINGS: Adjusted income from operations $ 1,122 1,247 1,402 1,878 2,076 2,115 2,256 Re
Slide 24: Offered by: Connecticut General Life Insurance Company or Cigna Health and Life Insurance Company.
Offered by: Connecticut General Life Insurance Company or Cigna Health and Life Insurance Company. “Cigna” and the “Tree of Life” logo are registered service marks, and “Together, all the way.” is a service mark, of Cigna Intellectual Property, Inc., licensed for use by Cigna Corporation and its ope