Cvs Health Corporation · NYSE:CVS
Cvs Health — Q1 2023 Earnings Presentation
15 slides from Cvs Health's earnings presentation, May 3, 2023
Slide 1: First quarter 2023 earnings conference call
First quarter 2023 Earnings conference call Karen S. Lynch Shawn M. Guertin President and Executive Vice President and Chief Executive Officer Chief Financial Officer May 3, 2023
Slide 2: Cautionary statement concerning forward-looking statements
This presentation includes 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 (“CVS Health”). By their nature, all forward-looking statements are not guarantees of futu
Slide 3: Financial highlights
Financial highlights Delivered strong revenue growth of 11% and Adjusted EPS of $2.20 in the first quarter Updating 2023 guidance, including net impact of Signify Health and Oak Street Health acquisitions DELIVERED STRONG DEPLOYED CAPITAL TO GENERATE FULL-YEAR 2023 Q1 Financial results Shareholder v
Slide 4: Our strategic imperatives
Grow Harness our foundational cutting-edge tech to businesses streamline and simplify Our strategic Advance Empower imperatives care delivery and health services offerings our people and culture Reimagine our omnichannel health experience 4 ©2023 CVS Health and/or one of its affiliates.
Slide 5: Our vision
Become the leading health solutions company for consumers Our vision Drive improved health Deliver a superior outcomes, lower costs, health care experience higher levels of for consumers engagement and broader access to high quality care 5 ©2023 CVS Health and/or one of its affiliates.
Slide 6: Q1 2023 financial statement changes
Q1 2023 financial statement changes Segmentation Accounting for long-duration Impact of net realized capital realignment insurance contracts gains or losses • Formed new Health Service • Adopted a new accounting standard • Effective for the first quarter 2023, Segment (“HSS”) and created new using a
Slide 7: Aligning our segments with our strategic vision
Aligning our segments with our strategic vision Health Care Benefits Full range of insured and self-insured medical, pharmacy, dental and behavioral health products and services Health Services Pharmacy benefit management solutions as well as specialty pharmacy and other services Multi-payor h
Slide 8: Consolidated results and full-year guidance
Consolidated results in billions, except per share Q1 2022 amounts Q1 2023 Change % Financial highlights (revised) 1 Total Revenues $85.3 $76.8 11.0% Realigned the composition of the Quarter results Adjusted Operating Income $4.37 $4.61 (5.1%) Company’s segments, including: • New Health Services Seg
Slide 9: Health care benefits
Health care benefits in billions, except MBR Q1 2022 and membership Q1 2023 Change % Financial highlights (revised) 1 Total Revenues $25.9 $23.1 12.1% Awarded the City of New York Quarter results Adjusted Operating Income $1.82 $1.86 (2.0%) Medicare Advantage Plan contract, representing one of the l
Slide 10: Health services
Health services Q1 2022 in billions, except pharmacy claims Q1 2023 Change % Financial highlights (revised) 1 Quarter results Total Revenues $44.6 $39.6 12.6% Specialty pharmacy revenue grew 10 percent year-over-year. Adjusted Operating Income $1.68 $1.47 14.2% Adjusted operating income growth Pharm
Slide 11: Pharmacy & consumer wellness
Pharmacy & consumer wellness in billions, except prescriptions Q1 2022 filled Q1 2023 Change % Financial highlights (revised) 1 Quarter results Total Revenues $27.9 $25.9 7.8% In Pharmacy, scripts4 grew 2.5 percent year-over-year in the first Adjusted Operating Income $1.13 $1.57 (27.9%) quarter, or
Slide 12: Front store & pharmacy
Up ~8 bps Retail pharmacy script share of 26.8% 4,6 Front store & pharmacy 11.6% 12.7% Same store growth Total sales 7 Pharmacy sales 7 In a dynamic environment, demonstrated significant 5.0% year-over-year growth 7.7% Pharmacy Front store sales 7 prescription volume 4,7 12 ©2023 CVS Health and/or o
Slide 13: Other items full-year guidance
Other items in billions, except tax rate Q1 2023 call Q4 2022 call May 3, 2023 February 8, 2023 Financial highlights (current Segmentation) 2 (prior Segmentation) 3 Increasing guidance for: Interest Expense ~$2.70 ~$2.23 Full-year guidance Capital Expenditures $2.8 to $3.0 $2.8 to $3.0 • Higher inte
Slide 14: 2023 adjusted EPS guidance crosswalk
2023 adjusted EPS guidance crosswalk We are revising our full-year 2023 adjusted EPS guidance to a range of $8.50-$8.70, reflecting the positive contribution of our strong underlying results and the impact of the Signify Health transaction, which enable us to partially offset the dilution from the e
Slide 15: Footnotes
1. Previously reported Q1 2022 results have been revised to reflect our new segment structure, the adoption of a new long-duration accounting standard and a change in our reporting convention to exclude realized capital gains and losses from adjusted operating income as described in our Press Releas