Cencora, Inc. · NYSE:COR
Cencora — AmerisourceBergen — Investor Day (December 2011)
122 slides from Cencora's investor day presentation, Dec 14, 2011
Slide 1: Investor Day December 14, 2011
Investor Day December 14, 2011
Slide 2: Comment Regarding Forward Looking Statements
Comment Regarding Forward Looking Statements Certain of the statements contained in this presentation are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's cu
Slide 3: Steve Collis, President and Chief Executive Officer
Steve Collis President and Chief Executive Officer
Slide 4: Agenda
Agenda 17 Years Steve Collis President and Chief Executive Officer 29 Years Dave Neu President AmerisourceBergen Drug Corporation 4 Years James Frary President AmerisourceBergen Specialty Distribution and Services 20 Years Peyton Howell President AmerisourceBergen Consulting Services 5 Years Tony Pe
Slide 5: A Decade of Delivering
Ame ourceBergen A Decade of Delivering ——————
Slide 6: Earnings Per Share from Continuing Operations
17% CAGR 19% CAGR +14% +17% +31% +20% +14% Earnings Per Share from Continuing Operations (GAAP) A Decade of Delivering
Slide 7: Diversity Within Our Over $80B Revenues
Diversity Within Our Over $80B Revenues (CHART) (CHART) Customer buys generics from ABC A Decade of Delivering
Slide 8: The First Decade
Integrated two large companies Built highly efficient distribution network Implemented new ERP system Built market-leading specialty business Expanded PRxO(r) Generics Improved our balance sheet and credit ratings Delivered tremendous value to shareholders A Decade of Delivering The First Decade
Slide 9: The Next Decade: Vision, Mission, Values
A Decade of Delivering The Next Decade Vision To be the preferred partner to healthcare providers and pharmaceutical manufacturers Mission To improve patients' lives by delivering innovative products and services that drive quality and efficiency Values Accountability • Collaboration • Customer Focu
Slide 10: The Next Decade
A Decade of Delivering Continue to take advantage of the growth areas of the market Generics Specialty/Biosimilars Continue to deliver innovative services and thought leadership Invest in our platform to drive efficiency Utilize robust cash flow and financial flexibility to grow our business The Nex
Slide 11: The Next Decade: Growth Drivers
A Decade of Delivering The Next Decade Demographics continue to drive organic growth Healthcare coverage expands significantly Cost containment efforts drive demand for our services Distributors more entrenched than ever with manufacturers
Slide 12: Industry Landscape
Industry Landscape + demographics +expansion of coverage +new drug launches +new uses for existing drugs -generic conversions -increased focus on value -safety concerns -reimbursement pressures Pharmaceutical Sales We're built to succeed in this environment Trends (CHART) Source: IMS Health 2011 Pro
Slide 13: The Role of Distributors
Replacing distributors with direct service model adds over $41 billion in costs Industry costs to serve declined by 80 bps since 2007 due to efficiency and productivity gains Industry Landscape The Role of Distributors Source: The Role of Distributors in the U.S. Healthcare Industry by The Center fo
Slide 14: Fiscal 2011 Highlights
Ame ourceBergen Fiscal 2011 Highlights ——————————
Slide 15: FY 2011 Financial Highlights
FY 2011 Financial Highlights A Decade of Delivering Met or exceeded all of our goals
Slide 16: FY2011 Highlights
FY2011 Highlights Good Neighbor Pharmacy received the highest numerical score among chain drug store pharmacies in the proprietary J.D. Power and Associates 2010-2011 National Pharmacy StudiesSM, tied in 2011. 2011 study based on 12,360 total responses, and measures 7 chain drug pharmacies. Propriet
Slide 17: 2011 VIP Award from Our Largest Customer
2011 VIP Award for Value, Innovation, & Performance from Our Largest Customer Second Year in a Row FY2011 Highlights
Slide 18: FY2011 Highlights: Operational Excellence
18 FY2011 Highlights Operational Excellence Capitalized on specialty generic opportunities Implemented SAP in ABDC and corporate Reorganized ABDC sales force Added new business in targeted markets
Slide 19: Strengthened Leadership Areas With Acquisitions
Premier Source IntrinsiQ TheraCom* FY2011 Highlights * Closed 11/1/11 Strengthened Leadership Areas With Acquisitions Increase value for customers and suppliers Strengthen core competencies Domestic and international niche opportunities Increase shareholder value Acquisition Strategy FY2011
Slide 20: Realigned Business Units
Realigned Business Units Drug Company North Region South Region East Region West Region Canada Technology Solutions American Health Packaging Specialty Distribution and Services Oncology Supply ION-IntrinsiQ Besse ASD ICS US Bio Consulting Services Lash Xcenda Premier Source TheraCom AndersonBrecon
Slide 21: Looking Ahead
Ame ourceBergen Looking Ahead ee
Slide 22: Looking Ahead: Our Core Tenets
Looking Ahead Our Core Tenets
Slide 23: Collaboration Drives Innovation
A Decade of Delivering Collaboration Drives Innovation
Slide 24: ABC Value Proposition
» ABC Value Proposition AmensourceBergen »)) ‘AmenisourceBerger’
Slide 25: Conclusion: Key Challenges in FY12
Conclusion Key Challenges in FY12 We have the team to succeed
Slide 26: David Neu, President, AmerisourceBergen Drug Corporation
David Neu President AmerisourceBergen Drug Corporation
Slide 27: AmerisourceBergen Drug Corporation
Approx. $65 billion in annual revenue 5,000 associates 35 distribution centers in North America ABDC works with every major U.S. manufacturer (1,500+) Branded Rx Generic Rx Biotech and specialty medicines Over-the-counter (OTC) remedies, HH Care, Health Beauty Aids ABDC provides services across seve
Slide 28: Operating Efficiency Driving Value
Number of Divisions 35 TOTAL: Distribution Sq. Ft. Inventory $'s Lines Per Day 4.7M $3.9B 800,000 Average SKU's Per Division 24,000 Customer Service Level 99.4% Order Accuracy 99.95% 20,000 deliveries/day Operating Efficiency Driving Value to Customers and Shareholders
Slide 29: FY11 Financial Highlights
Strong Performance ABDC revenues up 5% Gross margin up Expenses flat Operating margin up Excellent management of working capital FY11 Financial Highlights
Slide 30: Continued Operating Efficiency Improvement
Continued Operating Efficiency Improvement
Slide 31: ABDC Supply Chain Network with Canada Expansion
Invested $1 billion over past 10 years in distribution network and IT systems Strategically located distribution centers in US and Canada Distribution technology and engineering used as part of Canada expansion plan ABDC Supply Chain Network with Canada Expansion
Slide 32: Innovation and Operating Efficiency Drive Value
Innovation and Operating Efficiency Continue to Drive Value for Our Customers and Shareholders Improved System Efficiency with SAP Improved returns processing Optimized customer service Consolidated inside sales Instituted virtual service model Operational Improvements Improved Track and Trace desig
Slide 33: Productivity Increases Continue for Distribution
Productivity Increases Continue for Distribution Productivity Continued Productivity Improvements Expense per line Lines per hour Expense per Line Lines per Hour
Slide 34: Improving Back Office and Distribution Systems
Master Data Management Back-Office Migration Distribution Center Deployments Foundational data used to build business transactions Accounts receivable, accounts payable, inventory management; Financial management and reporting Order management, customer service, and credit management; New customer o
Slide 35: Collaboration Drives Innovation and Value
Collaboration Drives Innovation and Value
Slide 36: Good Neighbor Pharmacy Provider Network
Good Neighbor Pharmacy Provider Network
Slide 37: GNP Expands into Social Media
GNP Expands into Social Media with Focus on a Changing Demographic
Slide 38: ABC PassPort
ABC PassPort(tm) An integrated procurement platform for all customer interactions with AmerisourceBergen A customer portal integrated with other AmerisourceBergen "back office" processes Developed based on customer input Built with usability in mind
Slide 39: Generic Scale Expanding Channel Leverage
Focus on compliance management Customized portfolios Targeted incentives Multi-channel approach First to Shelf placement Vigorous contract process Inside Sales focus across segments Generic Scale Expanding Channel Leverage
Slide 40: Targeting Growth Markets
AmerisourceBerger’ a decade of delivering Targeting Growth Markets —————————
Slide 41: Improving the Customer Experience: Two New Consolidated Business Segments
Community and Specialty Pharmacy Improving the Customer Experience: Two New Consolidated Business Segments Health Systems GPOs Government
Slide 42: Providers Face a New Productivity Imperative
Providers Face a New, Unprecedented Productivity Imperative Legislative changes will erode the commercial market and grow Medicaid and Exchange participation Medicare reimbursement declines expected to increase pressure on productivity As a result providers will experience: More patients, more total
Slide 43: Improving the Customer Experience
Improving the Customer Experience Improved customer coverage Enhanced national/regional acct mgmt Enhanced solutions portfolio Increased resources for high-touch segments Telesales supplement to direct sales Consolidation of Alt Care and Retail
Slide 44: Community & Specialty Pharmacy
Retail Independent Retail Chain Long Term Care Behavioral Health Pharmacy Health Maintenance Organization (HMO) Pharmacy Mail Order Pharmacy Specialty Pharmacy Home Infusion Home Healthcare Clinic Services Dialysis Surgery Center Rehabilitation Community & Specialty Pharmacy Help community pharmacis
Slide 45: Channel Strategy Focuses on Quality Care, Market Growth and Cost Control
45 Cost Control Solutions Quality Care Solutions Market Growth Solutions Channel Strategy Focuses on Quality Care, Market Growth and Cost Control Performance Assessment Inventory Management Pharmacy Transition Execution Integrated Services Center Medication Process Medication Policy Medication Track
Slide 46: ABDC Will Continue to Invest in Our Core
ABDC Will Continue to Invest in Our Core While Leveraging the Improved Solution Portfolio Our Promise Our ultimate goal is to focus our business to best serve our customers. We have, and are continuing to provide, services and solutions that align directly with our customers' needs. Customer Experie
Slide 47: Focus for FY12
Focus for FY12 Generics, Generics, Generics Generics, Generics, Generics Cross Company Leverage of Specialty Assets SAP Implementation Provide a "Best in Class" Customer Experience Growth in Target Markets
Slide 48: In Conclusion...
ABDC has had a decade of strong performance. Generics, Generics, Generics Our investments in operations, technology, and the commercial organization will ensure the sustainability of earnings growth going forward. Generics, Generics, Generics AmerisourceBergen Drug Corporation is well-positioned for
Slide 49: James Frary, President, Specialty Distribution and Services
James Frary President, AmerisourceBergen Specialty Distribution and Services
Slide 50: ABSG at A Glance
Ame douceBergen ABSG at A Glance AmerisourceBergen’ Specialty Group DIASD Healthcare: Dics ‘AmerisourceBergen Specialty Group ‘AmerisourceBergen Specialty Group D)Besse Medical Wus Bioservices ‘AmerisourceBergen Specialty Group AmerisourceBergen Specialty Group ) Oncology Supply DIION Solutions Amer
Slide 51: Services that Span the Specialty Industry's Needs
Services that Span the Specialty Industry's Needs
Slide 52: ABSG Revenue Strength
ABSG Revenue Strength Oncology Supply Other Services ASD Healthcare ICS Besse Medical $15.5 Billion Business
Slide 53: Leader in Specialty Distribution & Services
Leader in Specialty Distribution & Services Largest oncology products distributor Largest blood plasma products distributor Leading distributor in dialysis Strong positions in other physician specialties Largest specialty 3PL provider dedicated to Rx
Slide 54: Value of Specialty Distributors
Value of Specialty Distributors Value of specialty distribution calculated in recent study April 2011 by Arthur D. Little & Center for Healthcare Supply Chain Research Replacing specialty distributors would add $3.5 billion in costs to manufacturers and providers (~13% of product value studied) Trad
Slide 55: Specialty Generics
Specialty Generics Historic performance in FY2011 On top of historic FY2010 Successful oxaliplatin buy-in, gemcitabine and docetaxel launches Modest opportunity for FY2012 Reduced profit contribution from gemcitabine and docetaxel Oxaliplatin returning August 2012 Opportunity for future launches
Slide 56: Biosimilars
Biosimilars ABSG extremely well positioned for biosimilars, in collaboration with ABCS Commercialization of biosimilars will follow mold of branded products and require more services than traditional generics e.g. Market analysis and access strategies, special distribution and administration, compli
Slide 57: Oncology Demand Will Grow
Oncology Demand Will Grow Sources: National Health Expenditure data, , National Cancer institute, 2010; "Unhealthy America: economic burden of chronic disease" (Milken institute), Oliver Wyman analysis;
Slide 58: Role of Community Practices
Role of Community Practices Community practices key to patient access and high quality, efficient care Reimbursement pressures continue to challenge practices Community Oncology Alliance found (as of March 2011): 315 practices acquired by a hospital since late 2007 111 practices merged into another
Slide 59: ABSG's Broad Practice Solutions
ABSG's Broad Practice Solutions Core Services (Distribution, GPO) Practice Management Patient Value Market leadership Distribution - best service, value IV, orals, supplies GPO - best contract value Flexibility Engagement Information Nucleus Solutions Flexibility Interoperability Rich informatics Ph
Slide 60: Adoption of Practice Tools Underscore Value
Adoption of Practice Tools Underscore Value Nucleus Solutions Installed base grew 118%+ yoy Dispensing grew 295% yoy Installing cabinets in larger practices with higher treatment volumes AND practices are improving their utilization
Slide 61: IntrinsiQ Acquisition
IntrinsiQ Acquisition Industry leading provider of oncology software and informatics IntelliDose: Meaningful-use certified software tracks and manages complex chemotherapy dosing Practices using Nucleus Solutions will soon have access to a much more robust data set to support treatment decisions Exp
Slide 62: Physician-driven Quality Initiatives in Action
Physician-driven Quality Initiatives in Action Michigan Oncology Medical Home Initiative In conjunction with Priority Health and Physician Resource Management Beyond pathways - e.g., side effect management, reduced hospitalizations Flat monthly fee for patient support services, such as patient and f
Slide 63: Summary
Summary Specialty market continues to be a growth driver Growth fundamentals are strong Generics and biosimilars create new opportunities ABSG will continue specialty leadership Breadth, depth and collaboration across ABC Quality service and customer satisfaction We continue to innovate to enhance t
Slide 64: Peyton Howell, President, AmerisourceBergen Consulting Services
Peyton Howell President, AmerisourceBergen Consulting Services
Slide 65: AmerisourceBergen Consulting Services
AmerisourceBergen’ Consulting Services AmerisourceBergen’ Consulting Services VY AndersonBrecon Wash Group reaBergen ConitngSences smersourceBergen Comitng Sonices DW) Premier Source: D)theraCom dmerisourceBergen Conn AmveiscurceBergen Coating Services WD) Xcenda ‘AmerisourceBergen Consulting Servic
Slide 66: Consulting Services: A Decade of Delivering
Consulting Services A Decade of Delivering
Slide 67: AmerisourceBergen Consulting Services
AmerisourceBergen Consulting Services Focused on the manufacturer Pharmaceutical, Biotech, Device, Diagnostic, and other medical technology or treatments Focused on innovation to provide value and expertise to manufacturers and support product access A trusted, essential partner to manufacturers Acq
Slide 68: Aligned Business Strategy
Aligned Business Strategy Aligned Business Strategy 5
Slide 69: Combined Business Unit
AmerisourceBergen’ Combined Business Unit Over 5,000 Associates FY11 Revenue Growth of 20% Above Market Growth Opportunities Collaboration to support growth includes: * Business Development * Solution Selling (eg Compliance solutions) * Operations & Quality Management Tools * Expansion of Global bus
Slide 70: AmerisourceBergen Consulting Services Locations
AmerisourceBergen Consulting Services US Locations US Locations Charlotte, NC Rockville, MD Dallas, TX Portland, OR Lincoln, RI San Francisco, CA Pittsburgh PA Tampa, FL Rockford, IL Washington, DC United Kingdom Hay-on-Wye, Wales Call Center Locations
Slide 71: Patient Services
Patient Services Lash Group Premier Source TheraCom 8
Slide 72: Patient Services
Patient Services A Full Strategic Partner...Dedicated to Supporting Patient Access 9 Benchmarking Exposure Analysis Support Services Strategy & Development Reimbursement Support Co-pay Assistance Patient Assistance Clinical Services & Adherence Programs Analytics & Reporting Performance Management /
Slide 73: TheraCom
TheraCom Closed on Acquisition of TheraCom on November 1 Provides outsourced reimbursement support and product hubs for pharmaceutical and biotech manufacturers Founded in 1996, acquired by a Caremark legacy company in 2002. Exceptional growth over the past three years Over 950 associates Unique fro
Slide 74: Strategic Rationale: Lash & TheraCom
Strategic Rationale: Lash & TheraCom - 11 -
Slide 75: Leading Market Position
Leading Market Position 12 12
Slide 76: Health reform will expand need for these services
Health reform will expand need for these services Health reform will expand need for these services 13
Slide 77: Strategic Consulting Xcenda
Strategic Consulting Xcenda 14
Slide 78: Strong double-digit top line growth continues
Strong double-digit top line growth continues a = z = & 1,130 projects across 120 active clients A ‘ Significant growth in managed markets agency clients, field reimbursement and international projects 2 Za
Slide 79: Xcenda: A Decade of Delivering
Xcenda A Decade of Delivering
Slide 80: The Value Cycle
The "Value Cycle" PRE-LAUNCH Foreseeable unmet need in the market "Reason for Being" Current unmet need in the market and your product as solution "Reason to Listen" Data showing your product addressing that need clinically "Reason to Believe" Data showing your product addressing that need economica
Slide 81: Manufacturers Face Opportunities and Challenges in the Post-reform Era
Development of health insurance exchanges Need for new solutions to ensure patient access Manufacturers Face Opportunities and Challenges in the Post-reform Era Patient education and navigation support Medicaid expansion Comparative effectiveness research Integrated healthcare systems Impact of ACOs
Slide 82: Contract & Clinical Packaging AndersonBrecon
Contract & Clinical Packaging AndersonBrecon
Slide 83: AndersonBrecon
BY) AndersonBrecon AmensourceBergen Largest contract packager in US. + Long history of quality and scale across wide range of packaging needs + Branded, Generic, OTC, Specialty and Biologics + 1,522 associates across over 1 Mil square feet of facilities Global business model with UK facility |_—___—
Slide 84: Unique Strengths
Unique Strengths Unique Strengths
Slide 85: Clinical Trial Packaging
Clinical Trial Packaging Clinical Trial Packaging
Slide 86: Specialty Pharma Center (SPC)
Specialty Pharma Center (SPC) Specialty Pharma Center (SPC)
Slide 87: Concluding thoughts
Ame ourceBergen Concluding thoughts ———————————
Slide 88: Manufacturer Services Environment is Driving Growth
Manufacturer Services Environment is Driving Growth Manufacturer Services Environment is Driving Growth
Slide 89: Strong Strategic Fit to Support ABC
Strong Strategic Fit to Support ABC Strong Strategic Fit to Support ABC 26 Service offering includes services essential to product access
Slide 90: Tony Pera, Senior Vice President Supply Chain
Tony Pera Senior Vice President Supply Chain
Slide 91: Branded Pharmaceuticals
Ame ourceBergen Branded Pharmaceuticals ——————————
Slide 92: The Status of Fee For Service
The Status of Fee For Service Effectively all manufacturers covered FFS renewals continue to pay us for the value we provide Performance very near 100% Less than 10% is now subject to price fluctuation Retained our value with key pharmaceutical companies A Decade of Delivering
Slide 93: Pharmaceutical Services Value
Pharmaceutical Services Value A Decade of Delivering
Slide 94: Generic Pharmaceuticals
Ame ourceBergen Generic Pharmaceuticals ——————————
Slide 95: Generics Growth Continues
Generics Growth Continues Patent expirations Use of generics reduce healthcare costs Increased awareness and acceptance Generic dispensing rates continue to rise A Decade of Delivering
Slide 96: Generics Growth Continues: Sales and TRx Share
(CHART) (CHART) % MARKET SHARE Source: IMS Health Generics Growth Continues Sales and TRx Share of Brands and Generics
Slide 97: Generics Growth Continues: Patent Expirations
Generics Growth Continues Generics Growth Continues Patent Expirations ABC Fiscal Year
Slide 98: The Right Customer Mix at ABC
Retail Healthcare Providers Regional drugstore chains Food/Drug combination Independent pharmacies Institutional Healthcare Providers Hospitals Long Term Care/Alternate Site Specialty Physician Oncology/Rheumatologist/Ophthalmologist The Right Customer Mix at ABC Generics Growth Continues
Slide 99: Economics of Generic vs. Branded
Make as much or more gross profit dollars per unit on generics Reduced receivable risk Reduced working capital Can negotiate better terms, i.e. 60 days DPOs Produces higher ROCC Holds true even after exclusivity periods Economics of Generic vs. Branded Generics Growth Continues Time Gross Profit Dol
Slide 100: Generics Philosophy
Monitor and react to industry trends Manage PRxO(r) Generics Program Procure products from reliable sources Provide manufacturers market access Deliver optimal value to customers Market shortages Support the Prime Vendor Model Generics Philosophy Generics Growth Continues
Slide 101: PRxO Generic Program
Formulary that consist of over 7,500 SKUs Value Pricing Portfolio management Tailored programs address specific customer needs Focused on customer profitability Dynamic market response 100+ manufacturers in PRxO(r) generics Key component of Prime Vendor Model PRxO(r) Generic Program Generics Growth
Slide 102: Factors Considered in Forecast
Date of expiry/launch Sooner Status of exclusivity Exclusivity Authorized Generic (AG) Yes Number of players expected Fewer is better Who the players are Channel Consideration Retail/Oncology Mail Order/Retail/Hospital/Oncology Expected conversion Higher is better Database of more than 100 recent la
Slide 103: FY 2012 Generic Launches
Total 34 product launches 7 represent 80% of new product dollars None is bigger than 25% of all new products Two big ones 17 are expected to have an exclusivity period All are predominately retail/mail order 17 are large mail order products (> 25% of scripts) No product > 2% of generics FY 2012 Gene
Slide 104: Early read on two largest launches
Early read on two largest launches Generics Growth Continues Zyprexa(r): Normal generic launch patterns Conversion rates as expected Lipitor(r): Generic launch generally as expected Conversion rates appear to be lower than expected
Slide 105: Summary
Branded Rx market is challenging ABC expects to retain value Generics growth is robust ABC is in great position The right customer mix PRxO(r) Generics program Summary A Decade of Delivering
Slide 106: Mike DiCandilo, Executive Vice President and Chief Financial Officer
Mike DiCandilo Executive Vice President and Chief Financial Officer
Slide 107: Long Term Financial Goals
Long Term Financial Goals A Decade of Delivering
Slide 108: Earnings Per Share from Continuing Operations
17% CAGR 19% CAGR +14% +17% +31% +20% +14% Earnings Per Share from Continuing Operations (GAAP) A Decade of Delivering
Slide 109: Revenues
(CHART) Revenues (Billions) A Decade of Delivering 6% CAGR
Slide 110: Operating Margin Expansion
Operating Margin Expansion (CHART) bps +8 +6 +7 +5 +16 +8 A Decade of Delivering
Slide 111: Asset Management
Asset Management Asset Management Inventory Days A/R Days Days A Decade of Delivering
Slide 112: Return on Invested Capital
(CHART) Return on Invested Capital WACC ROIC A Decade of Delivering Value Creation
Slide 113: Cash Generation & Returns to Shareholders
(CHART) Cash Generation & Returns to Shareholders A Decade of Delivering billions 30% Minimum FCF returned to shareholders
Slide 114: Fiscal Year 2012 Targets
Fiscal Year 2012 Targets GAAP Diluted EPS in the range of to $2.74 to $2.84, up 8% to 12% A Decade of Delivering
Slide 115: FY12 EPS Growth Drivers
FY12 EPS Growth Drivers Fourth quarter highest growth rate 8-12% EPS Growth +Share repurchase $400 million -Net interest expense up 3-4% Cash Deployment 5-8% Op Inc Growth +ABDC generics - ABSG generics -Canada, ABCS expenses (acquisitions) 5-7% Margin Expansion +Market growth 0-1% +ABSG growth -Lar
Slide 116: EPS Impact of Key Specialty Generics
EPS Impact of Key Specialty Generics Year Product(s) Contribution FY2011 Oxaliplatin Gemcitabine Docetaxel $0.48 FY2012 Gemcitabine Docetaxel Oxaliplatin $0.14-0.15 A Decade of Delivering Substantially offset by ABDC generic launches
Slide 117: Fiscal Year 2012 Targets by Business Unit
Fiscal Year 2012 Targets Revenue Growth and Operating Margin by Business Unit Business Unit % of Revenue Revenue Growth ABDC ABSG ABCS Total -1% - 0% 5% - 6% >100% 0% - 1% 79% - 81% 18% - 20% 1% 100% Operating Margin Range 1.43% - 1.47% 1.95% - 2.05% 5% - 6% 1.57% - 1.62% A Decade of Delivering
Slide 118: Fiscal 2012 Capital Deployment
Fiscal 2012 Capital Deployment Significant Financial Flexibility A Decade of Delivering $1.8 billion of cash @ 9/30/11 ($1.3 billion available) Free Cash Flow of $700-$800 million expected for FY12 $500 million from recent debt offering Total available for investment about $2.5 billion to $2.6 billi
Slide 119: Financial Flexibility
A Decade of Delivering Financial Flexibility Ability to fund strategic growth and return cash to shareholders
Slide 120: Conclusion
A Decade of Delivering Conclusion
Slide 121: Q&A
Are vourceBegen Q&A
Slide 122: The next decade of delivering
Steve Collis President and Chief Executive Officer the next decade of delivering