Cvs Health Corporation · NYSE:CVS
Cvs Health — Morgan Stanley 2020 Global Healthcare Conference
15 slides from Cvs Health's conference presentation, Sep 15, 2020
Slide 1: Morgan Stanley 2020 Global Healthcare Conference
Morgan Stanley 2020 Global Healthcare Conference Larry Merlo President and Chief Executive Officer Eva Boratto Executive Vice President & Chief Financial Officer September 15, 2020
Slide 2: Cautionary statement concerning forward-looking statements
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-lo
Slide 3: Transforming health care
We are a different kind of health company with a powerful combination of expertise and health services that is making health care more affordable, simpler and better Transforming Industry leading + Industry leading + Unmatched Managed Care Pharmacy Benefit local community health care Organization In
Slide 4: Delivering health solutions across triad of care
Delivering health solutions across triad of care The environment surrounding COVID-19 is accelerating our transformation, giving us new opportunities to demonstrate the power of our integrated offering and to deliver solutions at scale that meet client and consumer needs 1 2 3 In the Community In th
Slide 5: Advancing our integrated offerings
Advancing our integrated offerings Our integrated, innovation-driven health care model is providing benefits to members and consumers across the health care system, driving better health care outcomes that are grounded in understanding preferences for how care is delivered • Pharmacy Panels operatin
Slide 6: Supporting local community health
Supporting local community health Leadership in diagnostic testing and vaccination COVID-19 Testing Return ReadySM Vaccinations Expect to administer record number >3M Tests administered through early 45 Comprehensive B2B clients testing solution for and growing employers and of seasonal flu vaccinat
Slide 7: Consolidated Enterprise results
Q2 2020 Results Consolidated Enterprise results in millions, except per share data Q2 2020 Q2 2019 Change % Total revenues $65,341 $63,431 3.0% Adjusted operating income $5,328 $4,031 32.2% GAAP EPS $2.26 $1.49 51.7% Adjusted EPS $2.64 $1.89 39.7% 7 ©2020 CVS Health and/or one of its affiliates. Con
Slide 8: August business update
August business update March April May June July August 2020 YoY 2020 YoY 2020 YoY 2020 YoY 2020 YoY3 2020 YoY3 Retail same store sales1 17.5% 1.5% (1.1%) 7.1% 4.6% 4.6% Pharmacy sales 17.2% 5.4% (0.5%) 9.2% 4.5% 5.5% August showed continued Pharmacy adjusted normalization of Retail same store presc
Slide 9: Strong cash flow generation & liquidity
Strong cash flow generation & liquidity Strong cash generation Strong liquidity: access Continue to prioritize to ~$13 billion paying down debt and • Commitment to disciplined • ~$7 billion of cash and short- maintaining dividend capital allocation priorities term investments at June 30, • Tender of
Slide 10: Long-term debt maturity profile
Long-term debt maturity profile Repaid net debt of $2 billion; lowered interest expense & smoothed towers with tender refinancing ($ billions) $10 $9.0 $9 $8.0 $8 $7 $6 $5.6 $5.4 $5.0 $4.8 $5 $4.1 $4 $3.5 $3 $2.7 $2.6 $2.8 $2.5 $2.3 $2 $1.8 $1.0 $1.0 $0.7 $0.8 $0.8 $0.8 $1 $0.5 $0.4 $0.4 $0.1 - 2020
Slide 11: Enterprise outlook
Guidance: 2020 Full Year Enterprise outlook in millions, except per share data Full Year 2020 GAAP EPS lowered by $0.43 cents due to the GAAP EPS $5.16 – $5.29 loss from the early extinguishment of $6 billion in debt during Q3 2020 Adjusted EPS $7.14 – $7.27 We remain committed to delivering on our
Slide 12: Executing on strategic priorities
Executing on Grow and Deliver strategic priorities differentiate our businesses transformational products and services Consumer focused – be local, make it simple, improve health Create a consumer- Modernize Enterprise centric technology functions and infrastructure capabilities 12 ©2020 CVS Health
Slide 13: Appendix
Appendix 13 ©2020 CVS Health and/or one of its affiliates. Confidential and proprietary.
Slide 14: Reconciliation of Non-GAAP financial measures
Reconciliation of Non-GAAP financial measures Year Ending December 31, 2020 Low High Projected GAAP diluted EPS (GAAP measure) $ 5.16 $ 5.29 Non-GAAP adjustments (per share): Amortization of intangible assets 1.76 1.76 Acquisition-related integration costs 0.34 0.34 Loss on early extinguishment of d
Slide 15: ©2020 CVS Health and/or one of its affiliates. Confidential and proprietary.
15 ©2020 CVS Health and/or one of its affiliates. Confidential and proprietary.
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