Slide 1: Filed by Anthem, Inc. Pursuant to Rule 425 and Safe Harbor Statement
Filed by: Anthem, Inc. Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934 Subject Company: WellPoint Health Networks Inc. Commission File Number for Related Registration Statement: 333-110830 SAFE HARBOR STATEMENT
Slide 2: Additional Information and Where to Find It
Neither Anthem nor WellPoint undertakes any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Readers are also urged to carefully review and consider the various disclosures in Ant
Slide 3: Safe Harbor Statement
Larry David SM May SAFE This proposed statements to generally statements. in benefits ratings; expected consuming maintaining obtained the forward-looking circumstances various WellPoint’s 2 future health transaction document 6,Glasscock, Colby, HARBOR 2004 SEC litigation and operations, on care syn
Slide 4: Agenda
ADDITIONAL Anthem connection documents RELEVANT BECAUSE stockholders Circle, PARTICIPANTS Anthem, proposed on regarding statement/prospectus •Agenda This directly Anthem WellPoint Merger Schedule presentation Indianapolis, comparable has WellPoint Summary transaction. Profile the with THEY Profile f
Slide 5: WellPoint Profile: One Company, Broad Product Range
•WellPoint Non-Blue Broad Dental Pharmacy Life/Long Medical Disability Network CHOICE Second Broad Organized Regional One Company, Product Behavioral range Management Access largest =Brands Profile Term geographic VALUE byof Choice customer Care health multiple medical Health focus plan segment and
Slide 6: Diverse Customer Base
Organized Market Individual Senior Small Key Major Special Public State ** to Diverse March 448,000 6,414,000 4,065,000 847,000 654,000 1,524,000 1,425,000 * Employees Includes better Beneficiaries Accounts Sponsored Group Accounts Entities* 31, 1Segment Accounts Customer Seniors Medi-Cal Other unde
Slide 7: Regional Blue Membership Growth
•Regional Blue UNICARE HealthLink Membership Total 16,000 14,000 15,011 8,000 8,201 10,000 10,908 12,000 6,638 1 0 2,000 2,797 4,000 4,485 6,000 * 995 Health Better Greater More Total Cross 1996 Medical 7,515 6,892 (in 13,811 efficient medical network care actuarial Concentration thousands) 1997 lic
Slide 8: Membership Growth versus Peers
Membership (in BCC 8000 6000 7000 4000 5000 1999 •“Same-store” 2002 900 Note: (1) Big 1995 Medical 2003* Total Top * Source: 21% 20% 121% Top thousands) “Same-store” Plans Ten 10 2500 2000 2003 3000 Insured Membership 10 medical growth =growth Bear Health Members Health 61.1 102.4 Will 2001 1Q04 BCB
Slide 9: Fragmented Markets and Uninsured Opportunity
Fragmented Many Georgia California Missouri Kansas/Missouri, Represents Sources: Uninsured 14 9 •Potential Source: Alameda Athens Trinity Western TexCare The Care Columbus Chinese Healthcare, HealthOne Medical Contra Health Phoebe Inland RCare Interplan Rockford Primecare ProMed Union Safeguard San
Slide 10: Targeted Programs for Members
Ethnic Agent – Targeted Members 80% •20% WellPoint 68% 24% 7% 23% 70% Asthma Community Media Partnership Example: Congestive ESRD Diabetes Affordable Experience Limited Partner support Outreach relations pregnancy Medical with •with access Membership Medical •Depression HealthyCheck Etc. and •activi
Slide 11: Managing Costs Where You Live
Cost September The on Total Hysterectomy CA GA MO TX Managing Claritin $3.00 where Hospital operation Hospital Variations Abdominal perOTC you day Rx 19, A BA B Conversion live. $.90 Costs you Cholecystectomy 2000 $$37,700 25,100 14,700 11,400 2,200 2,800 Total 26,200 3,100 get per often day Knee $
Slide 12: WellPoint Clinical and Pharmacy Management
Physician Multi Constraints RN Health WellPoint Clinical ReViewPoint® Online Incentive Services Management PrecisionRx •Integrated Fourth Offers Provide Clinical Directed gives Disciplinary Coaching Reporting full /largest Business Medical innovative Programs didactic programs Centric Pharmacy Mail
Slide 13: WellPoint Specialty Products Segment Profitability
OtherMCS Dental Life Disability Behavioral WC WellPoint Quarter Specialty Health 88% 12% *Excludes Basic Specialty PPO, services, Care Ended Products Segment Group Network Profitability* & Corporate Full Segment DHMO supplemental March Products range including STD Contribute management, & and 31, of
Slide 14: Leveraging Operational Margins
Leveraging G 278 * Operational Medical 80.2% 80 18 60 16 70 50 10 Investment 40 8 35 25 30 20 15 0 1Q98 (a) (b) (c) quarter (d) General 07.3% &417.0% 20 14 12 210 635.2% The Pre-tax bp A10 1Q04 879.7% Expense improvement ended medical SG&A 230 Care 510 and income 6margin Income/Pre-tax Technology 1Q
Slide 15: WellPoint Financial Highlights
Total $ 24 20 16 12 8$ 40 *As WLP Income (in 1000 CAGR 900 800 700 600 200 1996 (a) (b) operations, associated (c) of (d) reclassified loss (e) (f) (in favorable As $20.4 CAGR $12.4 $9.2 6.5 Before 1998 2002 millions) (e) $299.1 1997 Due $660.9 500 100 of billions) $935.2 1997 Revenue Financial of $
Slide 16: Anthem Profile
Agenda Anthem New Maine Viirgiiniia •Full Anthem Among WellPoint Merger #1 12.5market range Hampshire million Profile Summary the Profile BCBS of Kentucky Profile share fastest healthcare medical Connecticut Coverage in growing 8 of members and 9 states ••Nevada Regional BCBS licenses Ohio business
Slide 17: Executing Profitable Growth Strategy
Executing Grow Reduce Optimize Provide Strong Drivers Customers Profitable 9% (In 12.5+ 7.3 1999 Acquisition-related Millions) 7.9 Same 2000 Profitable 11.9 Cash 6.3 Administrative to Distinctive the Store Enrollment Success aAre 2001 11.1 Simple Management Cost First CAGR, Enrollment 2002 ofmembers
Slide 18: National Business Gaining Strength
National Gaining •Value Cross Membership Pharmacy Total Specialty Access Strong 30 Blue ClaimsQuest Interactive Dedicated new Benefit Proposition Selling Cross Strength retention to Accounts account Product membership 7.1 BlueCard Business Realtime Blue (mm) Solutions to Behavioral Existing in wins
Slide 19: Administrative Expense Management
Administrative 19.6% 21.2% 2000 Managing Strategies Management •Management, Advanced Wellness Systems Shared Investments Process Disease Prevention 2001 19.3% service improvements Waiting All consolidation For Overall and 2002 Care and At 18.9% Healthy in identification Improvement product Expense R
Slide 20: Optimizing Medical Costs
Distribution Membership 1% 4% 28% 25% Optimizing Disease MyHealth@Anthem Improving Incentive and Safety the the Hospital of Medical IRIS Medical Cost Reimbursement Patient of Quality Costs Care CostsAdvanced Health Care of ourPrograms ProgramPrograms to Providers Members Health Advisor Physician Too
Slide 21: Excellent Service and Strong Cash Flow
Excellent 82 Service B 5 24 Best 74 Processing 34 % Blues Source: Strong Operating ($ 2001 Net lues ofIncome in responses 2002 Company Cash Customer Claims 40 Smith in Customer Cash 2003 22 millions) Cash Management 20 Barney 30 2Flow AFlow Company Service $1,143 HealthB $991 Benefit Company $774Sur
Slide 22: Strong Financial Momentum
Strong Diluted $6.90—$7.00 $3.30 Operating ($ $18.3+ $13.0 2001 •Agenda Anthem WellPoint Merger 2002 $10.1 Financial $16.5 EPS Summary in Profile Revenue 2003 Profile billions) $5.45 2004E Momentum $4.51
Slide 23: Merger Summary: Transaction Consideration
Transaction Consideration Headquarters: Board Alice Leading Anthem UNICARE Rosenblatt Representation: WellPoint Market and Summary Indiana Per HealthLink Positions WLP58%Share: >100K Anthem, 1 ATH members 42% share WellPoint + $23.80Chairman: cash Name: Leonard WellPoint, Schaeffer Inc. President an
Slide 24: Merger Growth Opportunities
Merger •Growth – Target Increase Cross-sell Utilize ATH WLP “Young Early Other Multi-state Enhanced Increased Information-based National national PBM retirees Benefits uninsured Opportunities individual ATH best invincibles” penetration contracting size other e-commerce employers experienced practic
Slide 25: Operating Synergies and Merger Approval Update
Operating Merger •– Approved Anticipate Recognize Positioned Synergies S-4 Hart BCBSA Shareholder Information Specialty Operations Corporate Formfiled Scott A’s Benefits Update approval Synergies 11/26/2003 filed businesses represent in Rodino mid-2004 & at to$50 meetings technology 9Shared least im
Slide 26: The Disappearance of the Underwriting Cycle
•The Disappearance Underwriting 10.0% All -6.0% 1966 -10.0% -8.0% Source: Track Generally Industry Fewer, Better Premium Blue Underwriting 1968 8.0% records prediction BCBSA, more Plans consolidation 1970 refunds self-inflicted 6.0% Results disciplined ‘66 of of1972 2002 the underwriting Cycle 4.0%
Slide 27: A Very Compelling Transaction
.WellPoint •– .Identified Geographic Diversified Realize Leverage Enhance Better Improve . A Very data significant +productivity product Compelling technology synergies Anthem membership management diversification offerings, growth . lower ..Transaction . base for administrative potential with custo