Cvs Health Corporation · NYSE:CVS
Cvs Health — Investor Day (December 2021)
21 slides from Cvs Health's investor day presentation, Dec 9, 2021
Slide 1: Investor Day 2021 – Shawn M. Guertin, CFO
2021 2021 INVESTOR INVESTOR DAY DAY Healthier happens here SHAWN M. GUERTIN Executive Vice President and Chief Financial Officer
Slide 2: Cautionary statement concerning forward-looking statements
These presentations include 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. The statements made in the presentations today and the information that is included in th
Slide 3: Strong momentum into 2022: key highlights
Strong momentum into 2022 Unique and robust portfolio of assets to succeed in care delivery and health services key highlights Powerful cash flow generation that will enable the strategy as well as share repurchases and increased dividends in 2022 Success opens large addressable markets where we can
Slide 4: Consistent outperformance in 2021
Strong Base of 2021 Performance Strong foundation: Consistent outperformance in 2021 Three quarters of beat and raise in billions, except per share amounts FY 2021 Guidance in adjusted EPS Adjusted EPS guidance at least Total Revenues At least $290.3 7% above midpoint of initial 2021 guidance Adjust
Slide 5: 2021: Another year of delivering on our commitments
Strong Base of 2021 Performance 2021: Another year of delivering on our commitments $7.35 to $7.45* 2021E At least At least $8.00 June 2019 $7.00 Investor Day goals* $6.75 to $6.90 2020 $7.50 Adjusted earnings 2019 per share $7.08 Operating Cash Flow $12.8B $15.9B At least $13.5B Leverage Ratio 4.7x
Slide 6: 2022 Outlook: Continued momentum off strong foundation
2022 Outlook Reflects Continued Momentum 2022 Outlook: Continued momentum off strong foundation in billions, except per share Revenue growth of 5 – 6% Y/Y amounts & cost reduction initiatives FY 2022 Guidance Growth2 Stable adjusted operating margin Total Revenues $304 to $309 5 – 6% Adjusted Operat
Slide 7: Health Care Benefits 2022 outlook and key growth drivers
2022 Outlook Reflects Continued Momentum Segment detail: Health Care Benefits 2022 outlook and key growth drivers in billions, except MBR & membership FY 2022 Y/Y Guidance Growth3 Revenue growth of 8 – 9% Total Revenues $88.1 to $89.6 8 – 9% Decline in COVID-19 Adjusted Operating Income $5.76 to $5.
Slide 8: Pharmacy Services 2022 outlook and key growth drivers
2022 Outlook Reflects Continued Momentum Segment detail: Pharmacy Services 2022 outlook and key growth drivers FY 2022 Y/Y Revenue growth in billions Guidance Growth3 of 6 – 8% Stable to improving Total Revenues $162.5 to $165.3 6 – 8% operating margins Adjusted Operating Income $7.31 to $7.45 5 – 7
Slide 9: Retail / Long-Term Care 2022 outlook and key growth drivers
2022 Outlook Reflects Continued Momentum Segment detail: Retail / Long-Term Care 2022 outlook and key growth drivers Revenue growth of 0 – 2% in billions FY 2022 Y/Y Guidance Growth3 COVID-19 vaccination and testing volumes expected to decline versus 2021; Total Revenues $99.0 to $100.7 0 – 2% press
Slide 10: 2022–2024 consumer-centric cost improvements boost adjusted operating income growth
2022 Outlook Reflects Continued Momentum 2022–2024 consumer-centric cost improvements boost adjusted operating income growth Optimize processes to drive value $900M by 2024 in annual adjusted Maximize customer experience and EPS growth contribution business value through new technologies, elevated i
Slide 11: Strong foundation positions us well to accelerate the strategy
Solid Foundational Business Strong foundation positions us well to accelerate the strategy Foundational business growth High single-digit sustainable adjusted operating income Increasing Cost growth dividend improvements 11 ©2021 CVS Health and/or one of its affiliates.
Slide 12: Our foundational accelerators: Unique collection of assets
Solid Foundational Business 1 Unique collection of assets Our foundational accelerators 2 Strong consumer engagement 3 Powerful cash flow generation 12 ©2021 CVS Health and/or one of its affiliates.
Slide 13: COVID-19 demonstrates the power of our integrated business model and consumer engagement
Solid Foundational Business 1&2 COVID-19 demonstrates the power of our integrated business model and consumer engagement Our unique footprint ...positioned us to lead and assets… the nation’s response 85% of Americans >50M COVID-19 vaccines6 live within 10 miles of a CVS Pharmacy location National i
Slide 14: Foundational business has produced strong cash flow
Powerful Cash Flow Generation 3 Foundational business has produced strong cash flow $15.9B At least $13.5B $12.8B Operating cash flow on par with average of competitors 2019 2020 2021 CVS Health Average of competitors 9 …and could be deployed to accelerate adjusted EPS growth and acquire strategic c
Slide 15: Long-term capital generation and deployment critical to execute our vision
Powerful Cash Flow Generation Long-term capital generation and deployment critical to execute our vision 25 to 35% | Invest in our business • Organic capital expenditures • Maintain statutory capital in regulated entities 20% | Provide attractive dividend yield $40 - $50B • Dividend growth over time
Slide 16: Integrating capability-focused M&A into our unique collection of assets
Well Positioned To Expand Integrating capability-focused M&A into our unique collection of assets to accelerate our vision Build a risk-enabled, vertically-aligned, all-payer care delivery business Establish a network of physician-led primary care centers with integrated virtual and home assets Enha
Slide 17: Health services derive new value through:
Well Positioned To Expand Health services derive new value through: Accelerants to our New revenue foundational assets sources New care delivery Medicare-focused risk models accelerate bearing entity foundational growth Care delivery and home Potential new sources Optimize retail portfolio health se
Slide 18: Generating economic return through care delivery and health services
Well Positioned To Expand Generating economic return through care delivery and health services 1 Accelerating foundational growth Adjusted EPS growth contribution 2024: ~1% Better health Improved growth Greater customer outcomes and and adjusted lifetime value Increasing over time, becomes lower cos
Slide 19: Drives a new long-term growth trajectory
Nation’s Leading Health Solutions Provider Drives a new long-term growth trajectory Low double-digit adjusted EPS growth beginning in 2024 with attractive dividend growth 2024E+ Low double-digit Y/Y growth 2023E High single-digit 2022E Y/Y growth ~$8.10 – $8.30 2021E High single-digit growth Adjuste
Slide 20: Healthier is happening here: CVS Health
Nation’s Leading Health Solutions Provider Healthier is happening here: CVS Health Market leader with strong foundation and consumer focus • Drives high single-digit adjusted EPS growth in 2022 and 2023, attractive dividend, strong cash flow • Provides ideal platform to expand into care delivery and
Slide 21: Endnotes
Endnotes All data is provided by CVS Health Enterprise Analytics or other internal CVS Health Sources, unless otherwise noted. All data is as of September 30, 2021, unless otherwise noted. 1. Growth rates for total revenues are calculated against 2020 adjusted revenues. 2020 adjusted revenues remove