Cvs Health Corporation · NYSE:CVS
Cvs Health — 41st Annual J.P. Morgan Healthcare Conference 2023
16 slides from Cvs Health's conference presentation, Jan 10, 2023
Slide 1: JP Morgan Health Care Conference
JP Morgan Health Care Conference KAREN S. LYNCH President and Chief Executive Officer SHAWN M. GUERTIN Executive Vice President and Chief Financial Officer JANUARY 10, 2023 1©2023©2023 CVS Health CVS Health and/orand/or one of one of its affiliates. its affiliates. Confidential Confidential and prop
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 (“CVS Health”). By their nature,
Slide 3: Powerful combination of foundational businesses
Powerful combination of foundational businesses Health Care Pharmacy Services Retail / LTC Benefits Segment Segment Segment (GUIDANCE AS OF NOV 2, 2022) KEY STATISTICS 2022E TOTAL REVENUE 24M+ 110M+ 1.6B+ $309-314 billion Medical benefit Pharmacy benefit Projected scripts to members members be fille
Slide 4: Our vision
Become the leading health solutions company for consumers our vision Deliver a superior health care experience for consumers Drive improved health outcomes, lower costs, higher levels of engagement and broader access to high quality care 4 ©2023 CVS Health and/or one of its affiliates. Confidential
Slide 5: Our Unparalleled Consumer Reach
Our Unparalleled Consumer Reach More than 100M Caremark & Aetna members 85% of Americans live within 10 miles of a CVS Store Nearly 5M customers visit CVS locations every day 46M+ unique digital customers 74M+ members enrolled in the CVS ExtraCare Loyalty Program Note: All metrics are as of Septembe
Slide 6: Only CVS Health has this unique collection of capabilities…
Only CVS Health has this unique collection of capabilities… We are uniquely Destination and partner of choice for consumers across America positioned to deliver market Most trusted brand associated with health care services leading health solutions Industry-leading pharmacy fulfillment assets
Slide 7: Our strategic imperatives
our strategic imperatives Grow Advance Reimagine Harness Empower our foundational care delivery and our omnichannel cutting-edge tech to our people and businesses health services offerings health experience streamline and simplify culture 7 ©2023 CVS Health and/or one of its affiliates. Confidential
Slide 8: We are executing on our strategy
We are executing on our strategy Imperatives Grow Advance Reimagine Harness Empower our foundational care delivery & health our omnichannel cutting-edge tech to our people and businesses services offerings health experience streamline and simplify culture Surpassed 2022 On track to close Over 8,300
Slide 9: Expect to be at high end of 2022 Adjusted EPS guidance, providing strong momentum for 2023
Expect to be at high end of 2022 Adjusted EPS guidance, providing strong momentum for 2023 (1) HIGH-SINGLE DIGIT GROWTH $8.70 - $8.90 $8.55 - $8.65 2023 Growth 2022 Baseline Target Adjustments(2) $8.20 2023 Preliminary Health Care Benefits: Outlook Net Investment Mid to High-Single Digit Growth +$0.
Slide 10: Health Care Benefits
2023 HEADWINDS & TAILWINDS Health Care Membership growth balanced with Benefits disciplined pricing, including: Medicare Advantage – low to mid-single digit growth Commercial growth driven by strong Individual Exchange enrollment (+700K) Medicaid decline reflecting impact of redeterminations
Slide 11: Pharmacy Services
2023 HEADWINDS & TAILWINDS Pharmacy Services Volume mix and favorable impact of inflation Strength in Specialty Pharmacy including impact of generics Value driven by generic and biosimilar launches Stabilization of 340B dynamics Continued impact of client price 2023 OUTLOOK improvements Mi
Slide 12: Retail / LTC
2023 HEADWINDS & TAILWINDS Retail / LTC Pharmacy script and front store growth Purchasing cost improvements Continued store footprint optimization (At least 600 of 900 closures to be completed by year-end 2023) Ongoing pharmacy reimbursement pressure Continued expense investments to 2023 O
Slide 13: Long-term capital generation and deployment critical to execute CVS Health's vision
Long-term capital generation and deployment critical to execute CVS Health’s vision 25 to 35% | Invest in our business Organic capital expenditures Maintain statutory capital in regulated entities $40 - $50B 20% | Provide attractive dividend yield 2022 to 2024 Dividend growth over time in line
Slide 14: Capability-focused capital deployment centered on value-based care
Capability-focused capital deployment centered on value-based care to accelerate our health care delivery strategy Together, these drive Primary Home Physician improved… Care Services Health Enablement ACCESS Consumer-centric, next- Home solutions to extend Provider tools and generation clinics serv
Slide 15: Long-term low double-digit adjusted EPS growth requires strong execution
Long-term low double-digit adjusted EPS growth requires strong execution Long-term annual adjusted EPS growth Sustained strong foundational business performance, cost Foundational business growth 7-8% improvements and cash flow + cost improvements generation combined with Capital deployment pursuit
Slide 16: What you can expect from CVS Health
Strong, sustainable growth in our foundational businesses Powerful cash flow generation What you can expect Strategic capital deployment from CVS Health Differentiated consumer-focused approach Commitment to sustainable business practices and employee development Pathway to long-term, low double-dig
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