Cvs Health Corporation · NYSE:CVS
Cvs Health — Investor Day (December 2021)
42 slides from Cvs Health's investor day presentation, Dec 9, 2021
Slide 1: 2021 Investor Day: Healthier happens now
2021 2021 INVESTOR INVESTOR DAY DAY Healthier happens now KAREN S. LYNCH President and CEO
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: Our purpose and values
Bringing our heart to every moment of your health our Putting people first purpose We are customer obsessed and walk in others’ shoes to improve the experience Create simplicity We design for our customers and continuously innovate Rise to the challenge We boldly innovate to care for our customers I
Slide 4: Deep health care expertise and diverse experience
Deep health care expertise and diverse experience Karen S. Lynch President and CEO Troyen A. Brennan, M.D. David Falkowski Daniel P. Finke Joshua M. Flum Shawn M. Guertin Laurie P. Havanec EVP and Chief EVP and Chief EVP and President, EVP, Enterprise Strategy and EVP and EVP and Medical Officer Com
Slide 5: CVS Health's opportunity
CVS Health’s opportunity
Slide 6: Our vision: leading health solutions company for consumers
Becoming the leading health solutions company for consumers our vision Delivering a superior health care experience for consumers Driving improved health outcomes, lower costs, higher levels of engagement and broader access to high quality care 6 ©2021 CVS Health and/or one of its affiliates.
Slide 7: Established leader in key segments of the health care sector
Overall 2021E revenue of $290B, representing ~8% growth year over year¹ Health Care Benefits Pharmacy Services CVS Health is an established $82B $153B leader in key segments of the health care sector Retail/LTC $99B 7 ©2021 CVS Health and/or one of its affiliates.
Slide 8: Strong execution has led to success in our foundational businesses
Our strong execution has led to success in our foundational businesses Health Care Pharmacy Retail / Long- Benefits Services Term Care 23M+ ~110M 1.5B Medical benefit Pharmacy benefit Prescriptions filled in members members 2020² +15% +10% >26% Medicare Advantage Adjusted operating income Pharmacy m
Slide 9: Our unparalleled consumer reach
Our unparalleled consumer reach 85% of ~66M 2.9B >35M Americans vaccines Rx’s digital customers Live within 10 miles of a COVID-19 and other Enterprise Number of unique CVS Health location vaccines administered3 prescriptions4 in 2020 digital customers 100M+ ~4.5M ~74M >32M members consumers members
Slide 10: Our momentum to lead will continue to deliver sustainable, profitable growth
Health Care Benefits Grow government businesses and offer integrated benefit designs Our momentum to lead will continue to deliver sustainable, Pharmacy Services profitable growth Continue to provide industry-leading drug trend and grow specialty pharmacy Retail / Long-Term Care Become the leading h
Slide 11: Our foundation is strong with more opportunities
Our foundation is strong with more opportunities to meet consumers’ needs 11 ©2021 CVS Health and/or one of its affiliates.
Slide 12: The system remains complicated, inconvenient, expensive, fragmented
The system remains Complicated Inconvenient 25% of U.S. adults 24 days is the average number do not have a PCP6 of days to schedule an appointment with a PCP7 Consumers still have significant Expensive Fragmented needs not $11,100 is the average Chronic patients with addressed in annual health care
Slide 13: Consumers expect convenient, digitally enabled health care experiences
Consumers now expect and demand health care experiences that are convenient and digitally enabled 38x 39% 43% increase in telehealth believe a good digital are using usage compared to experience has a wearable devices pre-COVID-1911 major influence on with digital their experience with health capabi
Slide 14: These unmet needs create opportunities for CVS Health
These unmet needs and consumer trends create opportunities for CVS Health 14 ©2021 CVS Health and/or one of its affiliates.
Slide 15: Capturing greater share of health care spend
We will meet these needs by advancing our care delivery and health services capabilities, capturing greater share of health care spend Total US health care spend14 Our addressable market15 $3.8T $2.4T Foundational businesses $0.6T Care delivery $0.2T Other health services $0.1T Digital health & well
Slide 16: Now is the time to make bold shifts in our strategy
Now is the time to make bold shifts in our strategy 16 ©2021 CVS Health and/or one of its affiliates.
Slide 17: Unifying our business around the consumer health experience
1 Advance all-payer primary care delivery capabilities Optimize retail portfolio to serve as community 2 health destinations Unifying our business around the consumer health experience Diversify our growth portfolio with new 3 health services and scale new sources of value 4 Drive digital-first, tec
Slide 18: Primary care is our focal point
1 Our primary care offering will… 197M Primary care is U.S. preventative visits annually16 our focal point • Organize around the consumer as it serves the across multiple channels widest range of • Focus on a frictionless experience people and drives most clinical • Be convenient ~86% encounters • D
Slide 19: Next generation primary care builds longitudinal relationships
1 Next generation primary care will build longitudinal relationships and drive deeper engagement with patients By combining “traditional” primary care elements… Preventive Acute Chronic Care Care Conditions …with others that engage people in their health Care Mental Coordination Health 19 ©2021 CVS
Slide 20: Maximizing the lifetime value of a consumer
Maximizing the lifetime value of a consumer by shifting from transactional based primary care to addressing holistic health 20 ©2021 CVS Health and/or one of its affiliates.
Slide 21: Optimizing our retail portfolio as community health destinations
2 Optimizing our • Advanced primary care centers retail portfolio to serve as • Enhanced HealthHUB® locations community health destinations • Core pharmacy fleet 21 ©2021 CVS Health and/or one of its affiliates.
Slide 22: Diversifying our growth portfolio with new health services
3 • Launch new payer and provider enablement services Diversifying our • Expand home health services for growth portfolio complex populations with new health services for employers, • Initiate health-related subscription consumers, payers, models for broader populations and providers • Commercialize
Slide 23: Accelerating a digital-first, open-platform approach
4 Accelerating a digital-first, technology forward, open-platform approach >35M 360° • Expanding reach of digital users CVS Health digital Health customers dashboard • Increasing consumer engagement • Launching new capabilities, >80% new products and services Engaged with • Modernizing our infrastru
Slide 24: The future is here: omnichannel health
5 The future is here: omnichannel health services to meet the needs of consumers where and when they want it 24 ©2021 CVS Health and/or one of its affiliates.
Slide 25: Foundational businesses create opportunities to drive deeper engagement
5 Our foundational businesses create opportunities to drive deeper engagement with consumers today Home Focus on highest risk patients with complex Community medical and social needs Virtual National approach that is convenient, affordable and uses intelligent care at the click of a button Virtual C
Slide 26: Making interactions personalized and seamless
5 …to make these interactions as personalized and seamless as possible Leading in omnichannel 80M #1 pharmacy by CVS Health pharmacy most frequent patients today interaction in health care integrating our approach across all fulfillment channels… ~11M 400+ CVS Pharmacy basis points increase interact
Slide 27: Enhance the consumer experience
Enhance the consumer experience by improving efficiency and sustainability 27 ©2021 CVS Health and/or one of its affiliates.
Slide 28: Consumer centric technology foundation by digitalizing how we work
Powering our strategy with a consumer centric technology foundation by digitalizing how we work Digital and technology Foundational process infrastructure improvement Workforce and Vendor and workplace strategies procurement strategies 28 ©2021 CVS Health and/or one of its affiliates.
Slide 29: Only CVS Health has this unique collection of assets
Only CVS Health has this unique collection of assets… Destination and partner of choice for consumers in communities across America 100M+ aggregated health care lives Differentiated care delivery assets (community, home, virtual) Uniquely Industry-leading pharmacy fulfillment assets positioned to de
Slide 30: Deliver value for all
Deliver value for all with bold strategic moves 30 ©2021 CVS Health and/or one of its affiliates.
Slide 31: Clear path to sustainable low double-digit adjusted EPS growth
We have a clear path to sustainable low double-digit adjusted EPS growth 2024E+ Low double- digit Y/Y growth 2023E Adjusted High single- EPS targets 2022E digit Y/Y growth 2021E ~$8.10 – $8.30 At least $8.00 High single-digit growth (Baseline at least $7.60) vs. 2021E baseline 31 ©2021 CVS Health an
Slide 32: Capital management strategy
And a capital management strategy that will enable this path to sustainable growth Deploy capital aligned with strategic priorities M&A to enhance capabilities Share repurchase and dividend growth Maintain strong investment grade credit rating 32 ©2021 CVS Health and/or one of its affiliates.
Slide 33: What you can expect from CVS Health
• Strong, sustainable growth in our foundational businesses • Meaningful cost improvements • Powerful cash flow generation What you can expect from CVS Health • Strategic capital deployment • Consumer-focused approach • Commitment to sustainable business practices and employee development • Pathway
Slide 34: Our foundation is strong, with a dynamic growth strategy
Our foundation is strong, with a dynamic growth strategy 34 ©2021 CVS Health and/or one of its affiliates.
Slide 35: In closing… why CVS Health?
• Strong foundational businesses well-positioned for future growth • Unique collection of assets and capital generation power • Closest to the consumer with our trusted brand and In closing… presence in communities across America why CVS Health? • Right people and deep health care expertise to deliv
Slide 36: 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
Slide 37: Prioritizing and delivering on our commitments to sustainability
Prioritizing and delivering on our commitments to sustainability 37 ©2021 CVS Health and/or one of its affiliates.
Slide 38: Transform Health 2030
Our long-term commitment Transform to invest in sustainability Health 2030 Healthy People Planet Business Community 38 ©2021 CVS Health and/or one of its affiliates.
Slide 39: Proud of key 2021 sustainability accomplishments
• Named to the DJSI for the ninth year in a row - ranked in the 99th percentile¹ • Diverted more than 1 million pounds of unused medication across our in-store kiosks and police station disposal units • 52% of colleagues hired in 2021 identify as Black, Hispanic, or Asian² Proud of key 2021 sustaina
Slide 40: Our commitment to the environment
Among the first of only seven companies globally to have science-based net-zero GHG emissions targets validated by SBTi³, with Programs to… And goals to achieve… Reduce our overall Net-zero emissions by 2050 Our commitment to environmental impact by at least 50% renewable energy by 2040 the environm
Slide 41: Advancing Health Equity
Advancing Health Equity 1 Expand access to health care in our Integrating health equity communities with an emphasis on increasing engagement among underserved populations across our business and leveraging our unique collection of assets to Identify and reduce disparities in health and its 2 assure
Slide 42: 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. https://cvshealth.com/news-and-insights/press-releases/cvs-health-named-to-2021-dow-jones-sustainability-ind