Cvs Health Corporation · NYSE:CVS
Cvs Health — Q3 2021 Earnings Presentation
18 slides from Cvs Health's earnings presentation, Nov 3, 2021
Slide 1: Third Quarter 2021 Earnings Conference Call
THIRD QUARTER 2021 Earnings conference call Karen S. Lynch Shawn Guertin President & Chief Executive Vice President Executive Officer & Chief Financial Officer November 3, 2021
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: Q3 & Full-Year 2021 highlights
Q3 & Full-Year 2021 highlights Exceeded expectations; Raising FY 2021 guidance for Revenue, Adjusted EPS and Cash Flow from Operations $1.97 10.0% $5.5 billion Q3 adjusted EPS Q3 revenue growth Q3 cash flow from operations Reflects adjusted operating Reflects growth across Committed to disciplined i
Slide 4: Delivering an integrated health care experience centered around the consumer
Delivering an integrated health care experience centered around the consumer Expanding our role in care delivery Creating community Expanding our virtual Entering individual health destinations primary care program exchange market in that include primary with the first national eight new states1: ca
Slide 5: CVS Health continues to lead the nation's COVID-19 response
CVS Health continues to lead the nation’s COVID-19 response ~38M ~43M tests administered since vaccines administered program inception1; at LTC and CVS Health locations since program • 8.5M tests in Q3:21 inception and YTD1; • ~26M tests YTD1 • 11.6M vaccines in Q3:21 ~27M new customers to CVS Healt
Slide 6: Q3 2021 financial review
Q3 2021 financial review 6 ©2021 CVS Health and/or one of its affiliates. Confidential and proprietary.
Slide 7: Consolidated results
Q3 RESULTS Consolidated results Delivered strong results and exceeded expectations Interest expense in millions, except per share data Q3 2021 Q3 2020 Change % of $602 million Total revenues $73,794 $67,056 10.0% Adjusted effective Adjusted operating income $4,073 $3,622 12.5% tax rate of 25.8% GAAP
Slide 8: Capital and cash flow allocation
Q3 RESULTS Capital and cash flow allocation Generated strong cash flow from operations and continue our commitment to meeting leverage target Strong cash generation Continue to prioritize paying down debt $5.5 billion cash flow from operations Repaid net $1.1 billion of long-term debt Paid $659 mill
Slide 9: Health Care Benefits segment
Q3 RESULTS Health Care Benefits segment Sequential membership growth across all products lines; strong revenue growth reflecting strength in Government Services business Total revenue growth reflects growth in Government Services, partially offset by the in millions, except MBR Q3 2021 Q3 2020 Chang
Slide 10: Pharmacy Services segment
Q3 RESULTS Pharmacy Services segment Continued outperformance: sequential claims growth in Specialty, Network and Mail; $8.9B net new business wins with >98%3 retention in 2022 selling season Total revenue growth reflects increased pharmacy claims volume, growth in Specialty pharmacy, and brand infl
Slide 11: Retail / LTC segment
Q3 RESULTS Retail / LTC segment Strong revenue and adjusted operating growth reflecting Total revenue growth reflects increased COVID- growth from COVID-19 vaccines, diagnostic testing and OTC 19 vaccinations and testing and over-the-counter (“OTC”) test kits, increased prescription and front test k
Slide 12: Retail pharmacy
Q3 RESULTS Retail pharmacy Significant year-over-year growth in a dynamic environment; volume growth in majority of Front Store categories Change vs. Q3 Continued growth in Retail pharmacy script 2020 share in a dynamic environment Retail pharmacy script share of 26.4%1, 2 Up ~30 bps Growth in presc
Slide 13: 2021 guidance
2021 guidance 13 ©2021 CVS Health and/or one of its affiliates. Confidential and proprietary.
Slide 14: Total Company outlook
GUIDANCE: FULL-YEAR 2021 Total Company outlook NOV 3 AUG 4 in billions, except per share data FY21 Guidance2 FY21 Guidance Total revenues1 $286.5 to $290.3 $280.7 to $285.2 6.75% to 8.25% 4.50% to 6.25% Guidance raise reflects strong performance in Pharmacy Adjusted operating income $16.4 to $16.6 $
Slide 15: Health Care Benefits outlook
GUIDANCE: FULL-YEAR 2021 Health Care Benefits outlook in billions, except MBR and NOV 3 AUG 4 membership FY21 Guidance FY21 Guidance Total revenues1 $80.7 to $81.9 $79.9 to $81.2 Raising total revenues to reflect 7.50% to 9.00% 6.25% to 8.00% growth in Government Services Adjusted operating income $
Slide 16: Pharmacy Services outlook
GUIDANCE: FULL-YEAR 2021 Pharmacy Services outlook NOV 3 AUG 4 in billions FY21 Guidance FY21 Guidance Raising total revenues and Total revenues $151.0 to $153.2 $148.4 to $150.9 adjusted operating income to 6.50% to 8.00% 4.50% to 6.25% reflect the strength in Q3 and continued strong outlook Adjust
Slide 17: Retail/LTC outlook
GUIDANCE: FULL-YEAR 2021 Retail/LTC outlook NOV 3 AUG 4 Raising total revenues and in billions FY21 Guidance FY21 Guidance adjusted operating income to reflect the strength in Q3 Total revenues $97.8 to $99.1 $94.3 to $95.6 7.25% to 8.75% 3.25% to 4.75% Expect vaccinations to continue into Q4 at a l
Slide 18: Other items
GUIDANCE: FULL-YEAR 2021 Other items in billions, except tax rate and NOV 3 AUG 4 share count in millions FY21 Guidance FY21 Guidance Interest expense ~$2.5 ~$2.6 Capital expenditures $2.7 to $3.0 $2.7 to $3.0 Adjusted effective tax rate ~25.6% ~25.5% Weighted-average diluted share count ~1,330 ~1,3