Cvs Health Corporation · NYSE:CVS
Cvs Health — Merger or Acquisition (February 2023)
14 slides from Cvs Health's merger presentation, Feb 8, 2023
Slide 1: Creating the Premier Medicare Value-Based Care Platform
& Creating the Premier Medicare Value-Based Care Platform FEBRUARY 8, 2023
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”) or Oak Street Hea
Slide 3: Cautionary statement concerning forward-looking statements (continued)
Cautionary statement concerning forward-looking statements (continued) You are cautioned not to place undue reliance on CVS Health’s or Oak Street Health’s forward-looking statements. CVS Health’s and Oak Street Health’s respective forward-looking statements are and will be based upon each company’s
Slide 4: Our Health Care Delivery Vision
Our Health Care Delivery Vision The acquisitions of and Our vision is to deliver an industry-leading health care experience for consumers and providers through a risk-enabled, vertically- aligned, all-payor value-based care delivery platform combined with Achieving our vision requires the right set
Slide 5: Key Transaction Terms
Key Transaction Terms Purchase Price Organizational Structure Closing Acquiring 100% of Oak Mike Pykosz will continue Transaction expected to Street Health for $39 per to lead Oak Street Health close in 2023 share in cash Oak Street Health will Subject to regulatory ~$10.6 billion operate as a payor
Slide 6: Oak Street Health Is A Leading Medicare Value-Based Primary Care Platform
Oak Street Health Is A Leading Medicare FAST FACTS ON Value-Based Primary Care Platform PROVEN ABILITY TO IMPROVE OUTCOMES & EXPERIENCES As Of December 2022 Over 50% reduction in hospital admissions 5-star HEDIS level performance(1) 42% reduction in 30-day readmission rate Net Promoter Score
Slide 7: CVS Health and Oak Street Health combination has strong strategic merit and alignment
CVS Health and Oak Street Health is a leading senior focused, value- Oak Street Health based, primary care asset combination has strong strategic Expands Oak Street touchpoints in the community, increasing access, adherence and ability to manage risk merit and alignment Strong cultural alignment and
Slide 8: Platform Contribution ($M)
Clear path to profitability, robust clinic growth and meaningful synergies drive double-digit return on invested capital over time Path to profitability evidenced by highly consistent performance across geographies and cohorts(1,2) $8 Project over $2B in embedded Oak Street Health Adjusted EBITDA(3)
Slide 9: Capability-focused capital deployment centered on value-based care to accelerate our health delivery strategy
Capability-focused capital deployment centered on value-based care to accelerate our health delivery strategy Together, Primary these drive Home Physician improved… Care Services Health Enablement Provider tools and ACCESS Consumer-centric, next- Home solutions to extend solutions to enable generati
Slide 10: The premier Medicare Value-Based Care platform
The premier Medicare Value-Based Care platform making healthier happen together More than 100M Caremark & Aetna members ~159K Foundational Businesses 85% of Americans at-risk patients live within 10 miles of a CVS Store ~600 care providers Advanced Nearly 5M Primary customers visit CVS 169 Care loca
Slide 11: Building our Health Care Delivery business and enhancing our sustainable long-term growth rate
Building our Health Care Delivery business and enhancing our sustainable long-term growth rate Long-Term Adjusted Operating Income Growth % Foundational businesses poised to deliver strong growth driven by leading Foundational ~7-8% franchises, market trends Business Growth and efficiency gains comb
Slide 12: Our long-term growth trajectory
Our long-term growth trajectory Sustainable low double-digit adjusted EPS growth with attractive dividend growth 2025 ~$10.00 + upside based on successful resolution of 2024 Medicare Stars Ratings mitigation ~$9.00 efforts 2023 2022 $8.70 to $8.90 Adjusted $8.25 EPS targets (Adjusted Baseline) Expec
Slide 13: Additional Information and Where to Find It
Additional Information and Where to Find It This communication is being made in respect to the proposed transaction involving CVS Health and Oak Street Health. A meeting of the stockholders of Oak Street Health will be announced as promptly as practicable to seek stockholder approval in connection w
Slide 14: For additional questions, please contact:
For additional questions, please contact: TOM COWHEY Senior Vice President, Capital Markets investorinfo@cvshealth.com LARRY MCGRATH Senior Vice President, Business Development & InvestorRelations 1-800-201-0938 investorinfo@cvshealth.com 14 ©2023 CVS Health and/or one of its affiliates.