McKesson Corporation · NYSE:MCK
McKesson — Merger or Acquisition (June 2016)
12 slides from McKesson's merger presentation, Jun 28, 2016
Slide 1: McKesson And Change Healthcare New Company Supplemental Slides
McKesson And Change Healthcare New Company Supplemental Slides June 28, 2016
Slide 2: Risk Factors
Risk Factors This presentation includes “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, as amended, that are subject to risks, uncertainties and other factors. All statements other than statements of
Slide 3: 1. Strategic Rationale 2. Industry Trends 3. New Company Overview
1. Strategic Rationale 2. Industry Trends 3. New Company Overview 4. Transaction Summary 5. Shareholder Benefits
Slide 4: Compelling Strategic Rationale
Compelling Strategic Rationale • Creates a new company positioned to address industry’s emerging and most pressing challenges • Experienced management team comprised of leaders from both McKesson and Change Healthcare • Significant value for customers by bringing together full suite of end-to-end pa
Slide 5: Healthcare Industry Trends Support Strategic Rationale For Combination
Healthcare Industry Trends Support Strategic Rationale For Combination Focus on Efficiency Increasing Complexity Shift to Value-Based Care • $360 billion spent on • Reimbursement and • By 2018, 50% of fee-for-service administrative services administration requirements Medicare payments to be tied to
Slide 6: Combined Company Will Be Favorably Positioned To Address Critical And Complex Industry Challenges
Combined Company Will Be Favorably Positioned To Address Critical And Complex Industry Challenges Integrated Reimbursement Network-Enabled Value Management Reduce Cost & • Comprehensive solutions to support Complexity • Integrated quality/risk analytics, clinical revenue performance, claims decision
Slide 7: Combination Creates A New Healthcare Technology Company With Leading Capabilities
Combination Creates A New Healthcare Technology Company With Leading Capabilities McKesson Technology NewCo Solutions Focused on improving patient safety, reducing cost and Leading provider of software and analytics, network OVERVIEW variability of care, and better managing revenue streams solutions
Slide 8: Breadth Of Complementary Capabilities Creates Opportunity To Deliver Significant Value To Customers
Breadth Of Complementary Capabilities Creates Opportunity To Deliver Significant Value To Customers McKesson Technology NewCo Solutions Providers Payers Consumers Capabilities to verify patient eligibility, Comprehensive solutions to address Digital tools to access personal health deliver clinically
Slide 9: Transaction Summary
Transaction Summary • McKesson contributes all MTS businesses, except for RHP and EIS businesses. Businesses contributed: MHS, CCA (excluding RHP), BPS, Transaction Structure IWS • Change Healthcare contributes all businesses, except for its pharmacy switch and prescription routing business • Pro fo
Slide 10: Transaction Summary (continued)
Transaction Summary (continued) • Governance will be shared jointly between McKesson and Change Healthcare • CEO: Neil de Crescenzo, Change Healthcare’s current CEO • Chairman of the Board: John H. Hammergren, Chairman and CEO of McKesson Management and Governance • Board of directors (10): CEO; app
Slide 11: Combination Creates Substantial Shareholder Value
Combination Creates Substantial Shareholder Value Enhances MTS’ market opportunity, capabilities and scale Targeting in excess of $150 million of annual synergies with potential to capture further opportunities McKesson to receive ~$1.25 billion in cash at close of transaction while retaining an ~70
Slide 12: Compelling Strategic Rationale
Compelling Strategic Rationale • Creates a new company positioned to address industry’s emerging and most pressing challenges • Experienced management team comprised of leaders from both McKesson and Change Healthcare • Significant value for customers by bringing together full suite of end-to-end pa