Cvs Health Corporation · NYSE:CVS
Cvs Health — Q4 2021 Earnings Presentation
19 slides from Cvs Health's earnings presentation, Feb 9, 2022
Slide 1: Fourth Quarter 2021 Earnings Conference Call
FOURTH QUARTER 2021 Earnings conference call February 9, 2022 KAREN S. LYNCH President and Chief Executive Officer SHAWN M. GUERTIN Executive Vice President and Chief Financial Officer
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. By their nature, all forward-looking statements are not guarantees of future performance o
Slide 3: Financial highlights
Financial highlights FY 2021 Adjusted EPS of $8.40 exceeded expectations; Maintaining FY 2022 guidance for Adjusted Operating Income and Adjusted EPS $1.98 10.6% $4.0 billion Q4 adjusted EPS Q4 adjusted Q4 cash flow from operations Reflects adjusted operating revenue growth Committed to disciplined
Slide 4: 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 5: CVS Health continues to lead the nation's COVID-19 response
>32M tests administered in 2021 >59M vaccines administered in 2021 CVS Health continues to lead the nation’s ~37M new customers through COVID-19 COVID-19 response testing and vaccine services since inception ~14% of customers new to CVS Health through COVID-19 testing services chose to fill new pres
Slide 6: 2021 Financial Review
2021 Financial Review 6 ©2022 CVS Health and/or one of its affiliates.
Slide 7: Consolidated results 2021
FULL-YEAR 2021 Consolidated results Delivered Adjusted EPS >12% above midpoint of initial 2021 guidance Strong adjusted revenue in millions, except per share growth1 of 8.8% vs. prior year amounts 2021 2020 Change % Total Adjusted Revenues1 $292,111 $268,395 8.8% Interest expense of $2,503 million A
Slide 8: Capital and cash flow
FULL-YEAR 2021 Capital and cash flow Liquidity and capital position remain strong Powerful cash generation Committed to our investment grade ratings $18.3 billion cash flow from operations, ~15% growth over prior Repaid net $8.8 billion of long-term debt year Repaid net $21 billion of long-term debt
Slide 9: Fourth quarter 2021 consolidated results
FOURTH QUARTER 2021 Consolidated results Results exceeded expectations; robust revenue and adjusted operating income growth across all segments in millions, except per share Adjusted revenue growth1 of amounts 2021 2020 Change % 10.6% vs. prior year Total Adjusted Revenues1 $76,604 $69,243 10.6% Int
Slide 10: Health Care Benefits segment
FOURTH QUARTER 2021 Health Care Benefits segment Sequential membership growth across all product lines; another strong year of Medicare membership growth in millions, except MBR 2021 2020 Change % Adjusted revenue growth1 reflects growth in 1 Total Adjusted Revenues $20,699 $18,792 10.1% Government
Slide 11: Pharmacy Services segment
FOURTH QUARTER 2021 Pharmacy Services segment Continued outperformance; $8.8B net new business wins Total revenue growth reflects increased pharmacy claims volume, growth in Specialty pharmacy, and brand inflation, partially offset by continued client price improvements in millions 2021 2020 Change
Slide 12: Retail / LTC segment
FOURTH QUARTER 2021 Retail / LTC segment Exceptional revenue and adjusted operating income year-over-year growth, exceeding expectations Total revenue growth reflects increased prescription and front store volume, administration of COVID-19 vaccinations and diagnostic testing, and brand inflation, p
Slide 13: Retail pharmacy
FOURTH QUARTER 2021 Retail pharmacy Significant year-over-year growth in a dynamic environment; volume growth in majority of Front Store categories Change vs. Continued growth in Retail pharmacy script share in a dynamic environment Q4 2020 Retail Pharmacy Script Share of 26.7%1,2 Up ~60 bps Growth
Slide 14: 2022 Guidance
2022 Guidance 14 ©2022 CVS Health and/or one of its affiliates.
Slide 15: Total company outlook
FULL-YEAR 2022 GUIDANCE Total company outlook Maintaining guidance for revenue, adjusted operating income and adjusted EPS; updating guidance range for cash flow from operations in billions, except per share amounts Q4:21 Earnings Call 2021 Investor Day1 Feb 9, 2022 Dec 9, 2021 Revenue growth of 4 –
Slide 16: Health Care Benefits outlook
FULL-YEAR 2022 GUIDANCE Health Care Benefits outlook Guidance unchanged since 2021 Investor Day in billions, except MBR and Q4:21 Earnings Call 2021 Investor Day1 membership Feb 9, 2022 Dec 9, 2021 Revenue growth Total Revenues $88.1 to $89.6 $88.1 to $89.6 7 – 9% 8 – 9% of 7 – 9% Adjusted Operating
Slide 17: Pharmacy Services outlook
FULL-YEAR 2022 GUIDANCE Pharmacy Services outlook Guidance unchanged since 2021 Investor Day in billions Q4:21 Earnings Call 2021 Investor Day1 Feb 9, 2022 Dec 9, 2021 Revenue growth of 6 – 8% Total Revenues $162.5 to $165.3 $162.5 to $165.3 6 – 8% 6 – 8% Adj. operating $7.31 to $7.45 $7.31 to $7.45
Slide 18: Retail/LTC outlook
FULL-YEAR 2022 GUIDANCE Retail/LTC outlook Guidance unchanged since 2021 Investor Day Q4:21 Earnings Call 2021 Investor Day1 Expected Revenue in billions of (1) – 1% Feb 9, 2022 Dec 9, 2021 COVID-19 vaccine volumes Total Revenues $99.0 to $100.7 $99.0 to $100.7 expected to decline ~70-80% (1) – 1% 0
Slide 19: Other items
FULL-YEAR 2022 GUIDANCE Other items in billions, except tax rate. Cost reduction Q4:21 Earnings Call 2021 Investor Day initiatives in millions Feb 9, 2022 Dec 9, 2021 Share repurchase program to offset Interest Expense ~$2.3 NA dilution Capital Expenditures $2.8 to $3.0 NA 10% dividend Adjusted Effe