Elevance Health, Inc. · NYSE:ELV
Elevance Health — Anthem — Merger or Acquisition (November 2003)
14 slides from Elevance Health's merger presentation, Nov 18, 2003
Slide 1: Anthem
Anthem
Slide 2: Demonstrating Disciplined Performance and Financial Momentum
Demonstrating Disciplined Performance and Financial Momentum Mike Smith Executive VP and Chief Financial Officer
Slide 3: Finance Driven Culture
Finance Driven Culture Success in industry requires timely financial reviews Metric-driven company: “If it moves, we measure it” Monthly close process provides timely insight on financial performance All finance executives participate Close books within 4 business days each month Intensive “Bottoms-
Slide 4: Corporate Governance
Corporate Governance Results with integrity Ethics and compliance training annually Internal audit review and internal control assessments Alignment with Sarbanes-Oxley Act Strong and independent board 13 of the 15 total members are independent Engaged directors: Monthly communication Transparent an
Slide 5: Anthem Since the IPO...
Anthem Since the IPO... Met or exceeded earnings expectations in all 9 quarters Strong EPS growth with 18-19% projected for 2003 Grew membership by 4.0 million members Trigon acquisition: 2.5 million Organic: 1.5 million Invested in our businesses to improve our competitive position Systems consolid
Slide 6: Building a Solid Track Record
Building a Solid Track Record Disciplined pricing Administrative cost control Medical management initiatives Diluted EPS 23% CAGR Simple Strategy 15%+ EPS growth for 2005 and beyond Profitable membership growth Serve our customers’ needs $6.05 - $6.15
Slide 7: Quality of Earnings: Operating Cash Flow
Quality of Earnings: Operating Cash Flow ($ In Millions)
Slide 8: Quality of Earnings: Consistent Reserving Methodology
Quality of Earnings: Consistent Reserving Methodology Consistent and conservative policy = high quality earnings No net benefit to current year’s earnings due to redundancy 178 actuarial associates including 27 FSA’s and 34 ASA’s estimate reserves at very detailed level – not a macro approach Reserv
Slide 9: Operating Gain by Segment
Operating Gain by Segment Above percentages exclude Other segment. 2001 2003E
Slide 10: Operating Performance
Operating Performance $342 $549 3.3% $880 to $890 $755 to $765 4.1% Mid 4% Net Income After-Tax Margin ($ In Millions) Mid 4%
Slide 11: Financial Strength and Flexibility
Financial Strength and Flexibility $7,177.4 million of cash and investments, includes ~$700 million at the parent company Debt-to-capital ratio of 22% is within a targeted ratio of 20% to 30% Insurance subsidiaries adequately capitalized Financial strength ratings AM Best: A (“Excellent”) Standard &
Slide 12: Cash Flow Deployment
Investing in our future and enhancing the value of our company Reinvest in our businesses Share repurchase Strategic acquisitions Debt maturity/repurchase Cash Flow Deployment 1. 2. 3. 4.
Slide 13: Since the IPO… Anthem has Delivered
Since the IPO… Anthem has Delivered Members increasingly recognize the value of our products and services Members supported by a financially secure health insurance company Brokers and Consultants attracted to an industry leader with a proven service platform Clinical networks understand the power o
Slide 14: Mike Smith
Mike Smith Executive VP and Chief Financial Officer