Molina Healthcare Inc · NYSE:MOH
Molina Healthcare — Investor Day (May 2019)
98 slides from Molina Healthcare's investor day presentation, May 30, 2019
Slide 1: Molina Healthcare, Inc. Investor Day 2019
Molina Healthcare, Inc.Investor Day 2019 May 30, 2019 WIFI: Molina Healthcare Password: #MOH2019
Slide 2: Agenda
Agenda 9:30 am Welcome and Overview Julie Trudell Pivot to Growth: Who We Are Joe Zubretsky A Strong Foundation Margin Sustainability Disciplined and Steady Growth Financial Outlook 11:15 am Break 11:30 am Panel Discussion: Margin Sustainability Jim Woys Growth Prospects Pam Sedmak Financial Profile
Slide 3: Cautionary Statement
Cautionary Statement Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:This presentation and the accompanying oral remarks include forward-looking statements regarding, without limitation, the Company’s 2019 guidance, its business plans, expectations, and longer-term o
Slide 4: Pivot to Growth
Pivot to Growth Joe ZubretskyPresident & Chief Executive Officer
Slide 5: Pivoting to Growth
Pivoting to Growth Margin recovery complete, sustainability well under way, pivot to growth has begun Margin Recovery Margin Sustainability Growth
Slide 6: Investment Thesis
Investment Thesis Focused on sustainable industry leading margins and double digit growth Double digit revenue growth Lowest cost / highest margins in the business Low capital requirements and significant excess cash flow Return to shareholders in an accretive way Accomplished management team Pure p
Slide 7: Outlook: Total Company Long-Term Growth
Outlook: Total Company Long-Term Growth 3 to 5 Years Long-term, compound annual growth rates - average over time Premium Revenue Growth 10% - 12% After-Tax Margin 3.8% - 4.2% Net Income Growth 9% - 11% EPS Growth 12% - 15% Additional upside could be provided through capital deployment
Slide 8: Who We Are
Who We Are Joe ZubretskyPresident & Chief Executive Officer
Slide 9: Franchise
Franchise High-quality healthcare through government programs for disadvantaged people 168Ranking $16.4BRevenue2019E 3.4MMembers1Q19 15Markets
Slide 10: Mission
Mission Commitment to providing high-quality care while delivering value to all stakeholders Molina provides the disadvantaged with access to high-quality healthcare The mission is equally balanced among all those we serve Members Government Agencies Employees Shareholders
Slide 11: Footprint
Footprint Geographically diverse and national in scope Approximate Premium Revenue by State: $2.5B $1.5B $ 0.8B ≤$ 0.4B Puerto Rico Strong incumbency status, resilient state relationshipsand growth opportunities Geographically diversified with no state greater than 19% of premium revenue Presence in
Slide 12: Transforming Molina
Transforming Molina Transformation addressed each major component of the enterprise Accountability and ownershipTransparency and trustReliability and commitment The Molina brand Culture Operating Model Self-contained health plan and product line P&L’sClear decision rightsRigorous performance managem
Slide 13: Management Team
Management Team Team of industry-leading executives with over 20 decades of experience President & CEOJoe Zubretsky Chief of StaffRon Kurtz Health PlansPam Sedmak Health Plan ServicesJim Woys Strategy and M&AMark Keim CFOTom Tran Human ResourcesLarry Anderson General CounselJeff Barlow Policy and Go
Slide 14: A Strong Foundation
a ee BRRMOLINA HEALTHCARE A Strong Foundation
Slide 15: Full Year 2019 Guidance
Full Year 2019 Guidance Strong financial performance in a high-growth industry All amounts are estimates and do not include non-recurring significant items. Medical care ratio represents medical costs as a percentage of premium revenueG&A ratio represents general and administrative expenses as a per
Slide 16: Strong, Sustainable Margins
Strong, Sustainable Margins Best in class margins produce significant free cash flow Full Year 2019 Guidance After-Tax Margins ~3%Medicaid ~11%Marketplace ~6%Medicare 4.1 – 4.3%Total Company
Slide 17: Best in Class ROE Drives EPS
Best in Class ROE Drives EPS Significant cash generation creates flexibility for deployment Acquisitions Share Repurchases Organic Growth Significant EPS Growth and AccretionPotential Excess Cash Flow Illustration 1 ~4% After-Tax Margins Capital 10% of Revenue 2 40% Unlevered ROE 3 50% Debt to Capit
Slide 18: A Strong and Stable Balance Sheet to Support Growth
A Strong and Stable Balance Sheet to Support Growth In one year, restored a challenging balance sheet, now a strength 1Q19 Credit Stats Reserve Strength Liquidity Capital Levels 1Q19 Parent Company Cash 1Q19 ~$440M Remaining Subsidiary Dividends 2019E ~$500M Debt Capacity as of May 2019 ~$900M Total
Slide 19: Excess Cash Flow Will be Invested Prudently
Excess Cash Flow Will be Invested Prudently Will deploy capital to achieve stable, consistent growth and accretion Accretive bolt-on membership acquisitions Expert acquisition team in placeRobust pipeline, disciplined approachStrategic fit, operational synergies and EPS accretion Organic growth is t
Slide 20: Margin Sustainability
a ee BRRMOLINA HEALTHCARE Margin Sustainability
Slide 21: Guidance Increases
Guidance Increases Focusing on managed care fundamentals has yielded continued margin improvement Midpoint of Guidance $11.00
Slide 22: High-Performing Health Plan Portfolio
High-Performing Health Plan Portfolio Focus on underperforming business has improved portfolio margins FY 2017 FY 2018
Slide 23: The Rate Environment and Outlook
The Rate Environment and Outlook Rational and actuarially sound Medicaid rate environment with premium tracking to medical cost trend 3 Carved-in / Carved-out benefits Risk adjustment 4 Acuity levels and mix 2 1 Medical cost trend The typical rating dynamics:
Slide 24: The Profit Improvement Inventory
The Profit Improvement Inventory An actionable inventory of initiatives to improve operating and financial performance Medical Costs At-Risk Revenue Corporate G&A Areas of Margin Recovery 2020E and Beyond $450M Original 2018Midpoint $500M + - May 2019 Addition $100M Recognized2019E $200M January 201
Slide 25: Utilization Control
Utilization Control Ensuring members receive the right service, in the right setting, at the right cost PROFIT IMPROVEMENT Standardizing business processesEnhancing medical economics engine High-acuity focus; NICU, OUD, BH, LTSS Refining clinical policiesDetailed management of:Inpatient admissionsER
Slide 26: Payment Integrity
Payment Integrity Building “best in class” payment integrity capabilities to improve performance PROFIT IMPROVEMENT Coordination of Benefits Pre-Pay Post-Pay Fraud, Waste and Abuse Subrogation Capabilities Vendor Partners Improvement Opportunity P P Significant Opportunity P Opportunity
Slide 27: G&A Cost Scalability and Leverage
G&A Cost Scalability and Leverage Continued cost actions and positive operating leverage fund investments while reducing G&A ratio PROFIT IMPROVEMENT Cost Actions OutsourcingSpans of controlLower cost labor poolsIntroducing automation, process redesign, and digitization Funding Investments New busin
Slide 28: Quality Scores and Risk Adjustment
Quality Scores and Risk Adjustment Consistent quality gap closure and risk score data capture will retain at-risk revenue PROFIT IMPROVEMENT Products: Medicaid, Medicare, Marketplace Enhance: Data collection and analyticsProspective interventionsRetrospective capabilitiesData submission accuracy and
Slide 29: Optimal Operating Model
Optimal Operating Model Fully integrated proprietary and rent-to-own operating model provides winning combination PROFIT IMPROVEMENT Outsourced/Co-Source Internal Capabilities Front Line and Pharmacy Utilization Provider Contracting / Network Claims Payment Member / Provider Services IT Infrastructu
Slide 30: Disciplined and Steady Growth
Disciplined and Steady Growth
Slide 31: Addressable Markets
Addressable Markets High growth and synergistic portfolio Source: NHE, Medicaid Actuarial, Medicaid.gov, Medicare Trustees, CMS, CBO Government Sector Managed Care Spending Growth (2016 - 2021 CAGR) 5% - 8% Underlying segment growthIncrease in managed care, high-acuity populations 8% - 12% Elderly p
Slide 32: Pivot to Growth
Pivot to Growth Ongoing growth-oriented investments will drive top-line growth while sustaining margins Rebuilt team Significant managed care deal experienceExpertise in identifying and executing transactionsJoint ventures, member migrationsGrowing pipeline of acquisition targets New Business Develo
Slide 33: Medicaid Market Share Opportunity
Medicaid Market Share Opportunity Current national and local market shares present significant upside opportunity Duals Marketplace #5 Nationally #6 Nationally #8 Nationally Average State Market Share National Market Share Molina Top Competitors Average 15% - 20% 9% 8% 10% - 30% 6% 10% - 30% ~ ~ ~ ~
Slide 34: Molina's Growth Strategy
Molina’s Growth Strategy
Slide 35: Multi-Dimensional Growth Strategy Framework
Molina’s Multi-Dimensional Growth Strategy Framework A disciplined and steady approach to growth Dimensions Characteristics Lenses Win NewTerritories Long-term Annual Growth Inorganic Opportunities Bolt-on Membership Opportunities Opportunistic Capital Deployment Leverage the Existing Portfolio Acti
Slide 36: Leverage the Existing Portfolio
Leverage the Existing Portfolio
Slide 37: Multi-Dimensional Growth Strategy Framework
Molina’s Multi-Dimensional Growth Strategy Framework A disciplined and steady approach to growth Dimensions Characteristics Lenses Leverage the Existing Portfolio Actionability Geography Product Predictable Annual Growth Rates Win NewTerritories Long-term Annual Growth Inorganic Opportunities Bolt-o
Slide 38: Growth Lens One: Actionability
Growth Lens One: Actionability…The “How” Execute on highly actionable opportunity sets LEVERAGE THE EXISTING PORTFOLIO > ACTIONABILITY Opportunity Set: 1 2 3 Increase Medicaid market share 4 Add adjacent Medicaid geographies Pursue Medicaid benefit carve-ins Increase market share and penetration of
Slide 39: Opportunity Set One: Increase Medicaid Market Share
Opportunity Set One: Increase Medicaid Market Share Capture Medicaid market share through tactical operating changes LEVERAGE THE EXISTING PORTFOLIO > ACTIONABILITY > MEDICAID MARKET SHARE Opportunity Actions National market share: 5%In-state market share ~9%; half of market share leaders Service ar
Slide 40: Opportunity Set Two: Add Adjacent Medicaid Geographies
Opportunity Set Two: Add Adjacent Medicaid Geographies Achieve adjacent Medicaid geography growth through successful procurements in existing markets LEVERAGE THE EXISTING PORTFOLIO > ACTIONABILITY > ADJACENT GEOGRAPHIES Opportunity Actions Service area market share ~16% In-state market share is ~9%
Slide 41: Opportunity Set Three: Increase Medicaid Benefit Carve-Ins
Opportunity Set Three: Increase Medicaid Benefit Carve-Ins Drive Medicaid benefit carve-ins with state partners and capture with capabilities LEVERAGE THE EXISTING PORTFOLIO > ACTIONABILITY > MANAGED CARE / CARVE-INS Opportunity Actions Work with states to drive mandatory managed care movement legis
Slide 42: Opportunity Set Four: Penetration of Medicare Products
Opportunity Set Four: Penetration of Medicare Products in Medicaid Footprint Achieve growth in existing and additional counties through enhanced offering LEVERAGE THE EXISTING PORTFOLIO > ACTIONABILITY > PRODUCT PENETRATION Opportunity Actions Increase market share in existing markets Offer DSNP in
Slide 43: Opportunity Set Four: Penetration of Marketplace Products
Opportunity Set Four: Penetration of Marketplace Products in Medicaid Footprint Drive Marketplace growth in existing and additional counties with focused products and pricing LEVERAGE THE EXISTING PORTFOLIO > ACTIONABILITY > PRODUCT PENETRATION Opportunity Actions Unique Marketplace product serving
Slide 44: Opportunity Set Four: Marketplace Profit Pool
Full Year 2019Guidance Market Share Gain Margin Optimization Opportunity Set Four: Marketplace Profit Pool Illustration There are many possible paths to growing the profit pool longer-term LEVERAGE THE EXISTING PORTFOLIO > ACTIONABILITY > PRODUCT PENETRATION Scenario 1: Scenario 2: Premium Revenue (
Slide 45: Multi-Dimensional Growth Strategy Framework
Molina’s Multi-Dimensional Growth Strategy Framework A disciplined and steady approach to growth Dimensions Characteristics Lenses Leverage the Existing Portfolio Actionability Geography Product Predictable Annual Growth Rates Win NewTerritories Long-term Annual Growth Inorganic Opportunities Bolt-o
Slide 46: Growth Lens Two: Geography
Growth Lens Two: Geography…The “Where” Geographic growth presents multiple opportunity sets LEVERAGE THE EXISTING PORTFOLIO > GEOGRAPHY Opportunity Set: 1 2 3 Across all forms of actionability, the growth prospects in existing states are robust 4 Each local health plan has a growth mandate and actio
Slide 47: Growth Lens Two: Geography (cont'd)
Growth Lens Two: Geography…The “Where” (cont’d) Each local health plan has a growth mandate and the opportunities are compelling LEVERAGE THE EXISTING PORTFOLIO > GEOGRAPHY > ALL FORMS OF ACTIONABILITY IN EXISTING STATES Actionable Opportunities = Small Membership Size = Large Membership Size = Medi
Slide 48: Growth Lens Two: Geography Case Studies
Growth Lens Two: Geography… Case Studies Washington and Illinois case studies are instructive LEVERAGE THE EXISTING PORTFOLIO > GEOGRAPHY > ALL FORMS OF ACTIONABILITY IN EXISTING STATES Washington Illinois Case Study Washington: Won re-procurement Increased Medicaid market share Carved-in benefits O
Slide 49: Multi-Dimensional Growth Strategy Framework
Molina’s Multi-Dimensional Growth Strategy Framework A disciplined and steady approach to growth Dimensions Characteristics Lenses Leverage the Existing Portfolio Actionability Geography Product Predictable Annual Growth Rates Win NewTerritories Long-term Annual Growth Inorganic Opportunities Bolt-o
Slide 50: Growth Lens Three: Growth Trajectory by Product Offering
Growth Lens Three: Growth Trajectory by Product Offering…The “What” Even without new RFP wins, long-term growth trajectories by line of business are strong LEVERAGE THE EXISTING PORTFOLIO > GEOGRAPHY > ALL FORMS OF ACTIONABILITY IN EXISTING STATES 14% - 16% 14% - 16% 7% - 8% Marketplace Medicare Med
Slide 51: Win New Territories
Win New Territories
Slide 52: Multi-Dimensional Growth Strategy Framework
Molina’s Multi-Dimensional Growth Strategy Framework A disciplined and steady approach to growth Dimensions Characteristics Lenses Leverage the Existing Portfolio Actionability Geography Product Predictable Annual Growth Rates WIN NEW TERRITORIES Win NewTerritories Long-term Annual Growth Inorganic
Slide 53: Win New Territories: 2020 Addressable Market
Win New Territories: 2020 Addressable Market WIN NEW TERRITORIES > ADDRESSABLE MARKET Remain selective in choosing new states to pursue ~$33B 2020 Minnesota Pennsylvania Kentucky Louisiana Hawaii
Slide 54: Win New Territories: 2021-2022 Addressable Market
Win New Territories: 2021 - 2022 Addressable Market WIN NEW TERRITORIES > ADDRESSABLE MARKET Remain selective in choosing new states to pursue ~$17B 2021 - 2022 Georgia Tennessee Missouri West Virginia Indiana
Slide 55: Win New Territories: 2023 Addressable Market
Win New Territories: 2023 Addressable Market WIN NEW TERRITORIES > ADDRESSABLE MARKET Remain selective in choosing new states to pursue ~$10B 2023 District of Columbia Delaware Iowa Nevada
Slide 56: Foreseeable Addressable Market is ~$60 Billion
Win New Territories: Foreseeable Addressable Market is ~$60 Billion WIN NEW TERRITORIES > ADDRESSABLE MARKET Will target opportunities based on probabilities of success 2023 ~$10 Billion 2021 - 2022 ~$17 Billion 2020 ~$33 Billion Minnesota Louisiana Pennsylvania Hawaii Kentucky Georgia Tennessee Mis
Slide 57: Multi-Dimensional Growth Strategy Framework
Molina’s Multi-Dimensional Growth Strategy Framework A disciplined and steady approach to growth Dimensions Characteristics Lenses Leverage the Existing Portfolio Actionability Geography Product Predictable Annual Growth Rates WIN NEW TERRITORIES Win NewTerritories Long-term Annual Growth Inorganic
Slide 58: Win New Territories: Prioritizing Opportunities
Disciplined approach to selecting opportunities based on probability of success Win New Territories: Prioritizing Opportunities WIN NEW TERRITORIES > PRIORITIZING OPPORTUNITIES 1 Size and duration of contract 5 Rational rate environment 2 Strength of incumbents 6 Future organic growth prospects 3 Nu
Slide 59: Multi-Dimensional Growth Strategy Framework
Molina’s Multi-Dimensional Growth Strategy Framework A disciplined and steady approach to growth Dimensions Characteristics Lenses Leverage the Existing Portfolio Actionability Geography Product Predictable Annual Growth Rates WIN NEW TERRITORIES Win NewTerritories Long-term Annual Growth Inorganic
Slide 60: Win New Territories: Winning Capabilities
Procurement is a technical sale; Molina has proven capabilities and solutions to win Win New Territories: Winning Capabilities InnovationLong-term services and supports (LTSS)Complex care managementPBM and Rx transparencyBehavioral integrationSocial determinants of health Opioid use disorder Table S
Slide 61: Molina's Value Proposition
Molina’s Value Proposition Partner of choice by delivering cost effective, reliable and seamless service WIN NEW TERRITORIES > WINNING CAPABILITIES Partner of Choice Low Cost Effective, High Quality, and Appropriate Access to Care Reliable Service and Seamless Experience
Slide 62: Win New Territories: Reprocurement Pipeline
Win New Territories: Reprocurement Pipeline WIN NEW TERRITORIES > WINNING CAPABILITIES A conservative view of RFP success still drives incremental long-term revenue growth 2020 2021 - 2022 2023 Major RFP opportunities ~$60B Pursue subset of opportunities ~40% Projected competitive win rate ~40% Proj
Slide 63: Inorganic Growth Opportunities
Inorganic Growth Opportunities
Slide 64: Multi-Dimensional Growth Strategy Framework
Molina’s Multi-Dimensional Growth Strategy Framework A disciplined and steady approach to growth Dimensions Characteristics Lenses Leverage the Existing Portfolio Actionability Geography Product Predictable Annual Growth Rates INORGANIC OPPORTUNITIES Win NewTerritories Long-term Annual Growth Inorga
Slide 65: Well-Positioned for Responsible Capital Deployment
Well-Positioned for Responsible Capital Deployment INORGANIC OPPORTUNITIES > BOLT-ON MEMBERSHIP OPPORTUNITIES 1 Molina’s margins are highest in industry 2 Medicaid capital requirements are low relative to healthcare industry 4 EPS accretion can be higher under multiple deployment scenarios Significa
Slide 66: Capital Requirements and Capacity for Growth
Capital Requirements and Capacity for Growth INORGANIC OPPORTUNITIES > BOLT-ON MEMBERSHIP OPPORTUNITIES Molina’s strong cash flow make acquisitions actionable Net income Full-Year 2019E ~$700M Statutory Capital Required for 10% Growth ~$(150)M Remaining Deployable Capital ~$550M Leverage ~2x Levered
Slide 67: Inorganic Growth Opportunities
Inorganic Growth Opportunities INORGANIC OPPORTUNITIES > BOLT-ON MEMBERSHIP OPPORTUNITIES 1 Attractive bolt-on membership opportunities in current states 4 Competitor divestitures present new opportunities 2 More than 200 provider owned plans across the country 5 Opportunities pursued will lead to i
Slide 68: Financial Outlook
@@ wv BRRMOLINA HEALTHCARE Financial Outlook
Slide 69: Outlook: 2020 Premium Revenue Guidance Growth Ranges
Outlook: 2020 Premium Revenue Guidance Growth Ranges Business model provides good revenue visibility into 2020 Premium Revenue $17.0B - $17.3B % Growth 7% - 9% Assumptions Growth in all three lines of business Does not include new RFP wins Assumes steady state in Texas Premium yield ~2% Volume and m
Slide 70: Outlook: Total Company Long-Term Growth
Outlook: Total Company Long-Term Growth 3 to 5 Years Long-term, compound annual growth rates - average over time Premium Revenue Growth 10% - 12% After-Tax Margin 3.8% - 4.2% Net Income Growth 9% - 11% EPS Growth 12% - 15% Additional upside could be provided through capital deployment
Slide 71: Outlook: Premium Revenue Growth by Line of Business
Outlook: Premium Revenue Growth by Line of Business Remain disciplined, as the opportunity is significant even without inorganic growth Long-Term Growth 3 - 5 Years Total 7% - 8% 14% - 16% 14% - 16% $1.5B - 2.0B 9% – 11% Medicare Marketplace 10% - 12% Medicaid Growth Without RFPs Medicaid Growth Fro
Slide 72: Outlook: Drivers of Long-Term Growth (Medicaid)
Strategic initiatives that drive long-term growth in Medicaid Outlook: Drivers of Long-Term Growth ~ ~ ~ Medicaid Premium Revenue(Long Term Growth 9% - 11%) Strategic Initiatives: 1 Increase Medicaid market share 2 Add adjacent Medicaid geographies 3 Pursue Medicaid benefit carve-ins 4 Win Medicaid
Slide 73: Outlook: Drivers of Long-Term Growth (Medicare)
Strategic initiatives that drive long-term growth in Medicare Outlook: Drivers of Long-Term Growth ~ ~ ~ Medicare Premium Revenue(Long Term Growth 14% - 16%) Strategic Initiatives: ~ 1 Increase market share 2 Increase penetration in existing Medicaid footprint
Slide 74: Outlook: Drivers of Long-Term Growth (Marketplace)
Strategic initiatives that drive long-term growth in Marketplace Outlook: Drivers of Long-Term Growth ~ ~ Marketplace Premium Revenue(Long Term Growth 14% - 16%) Strategic Initiatives: 1 Increase market share 2 Increase penetration in existing Medicaid footprint ~
Slide 75: Outlook: Long-Term After-Tax Margin Ranges
Outlook: Long-Term After-Tax Margin Ranges Long-term after-tax margins are expected to be attractive Assumptions After-Tax Margin 2019 Guidance 3 - 5 Year Target Medicaid ~3% 2.8% - 3.2% Medicare ~6% 5.0% - 5.5% Marketplace ~11% 8.5% - 9.5% Total Company 4.1% - 4.3% 3.8% - 4.2% 1 2 3 Good revenue vi
Slide 76: Outlook: Total Company Long-Term EPS Growth
Outlook: Total Company Long-Term EPS Growth 3 to 5 Years Excess cash at the parent of ~$45 per share provides upside to outlook Growth Ranges (Assumes no Acquisitions) Included in EPS Growth of 12% - 15% Outlook generates ~$4B of cash Outlook assumes ~35% of cash for share repurchase or ~300 bps of
Slide 77: Pivoting to Growth
Pivoting to Growth With margin recovery complete, sustainability well under way, pivot to growth has already begun Margin Recovery Margin Sustainability Growth
Slide 78: Panel Discussion
@@ ARRMOLINA HEALTHCARE Panel Discussion
Slide 79: Jim Woys: Margin Sustainability
Jim WoysMargin Sustainability
Slide 80: Payment Integrity
Payment Integrity
Slide 81: Risk and Quality
Risk and Quality
Slide 82: Utilization Management
Utilization Management
Slide 83: IT Capabilities
IT Capabilities
Slide 84: Pam Sedmak: Growth Prospects
Pam SedmakGrowth Prospects
Slide 85: RFP Pipeline and Evaluation Process
RFP Pipeline and Evaluation Process
Slide 86: Approach to Medicaid RFPs
Approach to Medicaid RFPs
Slide 87: Reprocurement
Reprocurement
Slide 88: Why Molina?
Why Molina?
Slide 89: Market Share
Market Share
Slide 90: Tom Tran: Financial Profile
Tom TranFinancial Profile
Slide 91: ROE Model
ROE Model
Slide 92: Long-Term Capital Deployment
Long-Term Capital Deployment
Slide 93: Marketplace
Marketplace
Slide 94: Outlook
Outlook
Slide 95: Executive Q&A
@@ wv BRRMOLINA HEALTHCARE Executive Q&A
Slide 96: Investment Thesis
Investment Thesis Focused on sustainable industry leading margins and double digit growth Double digit revenue growth Lowest cost / highest margins in the business Low capital requirements and significant excess cash flow Return to shareholders in an accretive way Accomplished management team Pure p
Slide 97: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures
Slide 98: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 2019 revised guidance as of 1Q19 Net Income $680M $710M Adjustments: Depreciation, and Amortization of Intangible Assets and Capitalized Software $90M $90M Interest Expense $90M $90M Income Tax Expense $220M $230M EBITDA $1,080 $1,120 Low End High End