Cvs Health Corporation · NYSE:CVS
Cvs Health — Investor Day (June 2019)
21 slides from Cvs Health's investor day presentation, Jun 4, 2019
Slide 1: Creating Value by Transforming the Consumer Health Experience
Creating Value by Transforming the Consumer Health Experience Larry Merlo President & Chief Executive Officer
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of CVS Health Corporation. By their nature, all forward-looking statements involve risks and uncertainties. Actual
Slide 3: Today's Objectives
Today’s Objectives Strength of our businesses and how they provide a foundation for transformation How we intend to dramatically improve the way health care is delivered in the U.S. Our expectations for 2020 / 2021 and our positioning for long-term growth How current investments will translate into
Slide 4: Agenda
Agenda Key trends in health care Well positioned to drive change Enterprise priorities to accelerate growth 4
Slide 5: As health care challenges mount, the call for change grows louder
As health care challenges mount, the call for change grows louder 5
Slide 6: Trends driving change in the health care landscape
Trends driving change in the health care landscape Empowered Migration Changing Evolution of Evolving health care from sick care perspectives personalized payment consumer to self care on aging care models 6
Slide 7: Agenda
Agenda Key trends in health care Well positioned to drive change Enterprise priorities to accelerate growth 7
Slide 8: Creating the most consumer-centric health company
Creating the most consumer-centric health company Powerful health Owner economics Recognized and Deep local footprint care decision- enable broader ability trusted brand, of consumer-facing making engine to deliver value supported by large assets including informed by data across enterprise workforc
Slide 9: Unmatched ability to engage with consumers
Unmatched ability to engage with consumers – CVS Health interacts with one in three Americans annually In the community In the home In the palm of their hand visits1 ~70% of U.S. population lives within three miles of a 700K annually 72M patients enrolled in text messaging CVS Pharmacy program 9
Slide 10: We are uniquely positioned among managed care peers
We are uniquely positioned among managed care peers Competitor Competitor Competitor 1 2 3 Medical benefits Pharmacy benefits Specialty pharmacy Retail pharmacy Unmatched local consumer Retail clinics touchpoints Other providers/services 10
Slide 11: Agenda
Agenda Key trends in health care Well positioned to drive change Enterprise priorities to accelerate growth 11
Slide 12: Enterprise priorities to accelerate growth
1. 2. Grow and Deliver Enterprise priorities to differentiate our transformational businesses products and services accelerate growth Consumer obsessed – be local, make it simple, improve health 3. 4. Create a consumer- Modernize enterprise centric technology functions and infrastructure capabilitie
Slide 13: Grow and differentiate our businesses
PRIORITY #1 Grow and differentiate our businesses Deliver new Drive and innovative Introduce Win in Improve engagement benefit designs, integrated high-growth productivity through reimbursement products market and efficiency personalization models, and and services segments store formats 13
Slide 14: HealthHUBs: Positive Results Fuel Broader Expansion
HealthHUBs®: Positive Results Fuel Broader Expansion By the end Expanding to of 2019 4 markets By the end Expecting to open of 2021 1,500 locations 14
Slide 15: Products & Services Value Creation
PRIORITY #2 Transformation provides multiple growth opportunities Products & Value Creation Operating Income Services Expectations 2 Medical cost savings Comprehensive chronic care and disease management Membership ~ $850 million growth in 2022 New consumer facing products Expanded use of Optimize g
Slide 16: Creating a consumer-centric technology infrastructure
PRIORITY #3 Creating a consumer-centric technology infrastructure Seamless, connected digital Turning data into and physical insights and experiences insights into action Consumer-centric Simplify the experience Improve outcomes Drive efficiency An intelligent engagement platform 16
Slide 17: Integration and modernization expected to deliver significant savings
PRIORITY #4 Integration and Integration Enterprise synergies modernization modernization • Business integration • Technology expected to • General and enhancements deliver administrative functions • Productivity improvements significant • Medical cost savings savings On track to deliver savings of T
Slide 18: Enterprise priorities create path to accelerate growth
Enterprise priorities create path to accelerate growth 2022+ Low double digits 2021 Mid single digits 2020 Low single Projected Adjusted EPS growth (%)2,3 2019 digits $6.75 to $6.90 18
Slide 19: Our commitment to shareholders
Our commitment to shareholders Consistent vision and strategy Relentless focus on execution across the enterprise Disciplined investment decisions and thoughtful portfolio evaluation Delivering superior returns 19
Slide 20: Today's agenda
Advancing the Enterprise Driving Profitable Growth as a to Unlock Value Consumer Health Company Eva Boratto Karen Lynch Today’s Building the Most Consumer- Centric Health Company Evolving Strategy for a Changing Marketplace agenda Alan Lotvin, MD Derica Rice Establishing the Foundation Consumer Inno
Slide 21: Endnotes
Endnotes 1. Number of in-home visits includes visits by Coram, Aetna, and vendor nurses or other care team members to homes or other community settings. 2. Currently enacted laws and regulations were used in all the Company’s projections. 3. This financial measure is a non-GAAP financial measure. Fo