Cvs Health Corporation · NYSE:CVS
Cvs Health — Q2 2021 Earnings Presentation
18 slides from Cvs Health's earnings presentation, Aug 4, 2021
Slide 1: Second Quarter 2021 Earnings Conference Call
SECOND QUARTER 2021 Earnings conference call Karen S. Lynch Shawn Guertin President & Chief Executive Vice President Executive Officer & Chief Financial Officer August 4, 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: Q2 & Full-Year 2021 highlights
Q2 & Full-Year 2021 highlights Q2 results exceeded our expectations; raising FY 2021 guidance for Revenue, Adjusted EPS and Cash Flow from Operations $2.42 11.1% $5.8 billion Q2 adjusted EPS Q2 revenue growth cash flow from operations Reflects outperformance Reflects growth across Committed to disci
Slide 4: Advancing our care delivery strategy
Advancing our care delivery strategy making health care local, affordable, and connected Expanding our role in care delivery Offering health Integrating Entering eight new services benefit designs markets1 to address critical seeing Aetna commercial with our first CVS-Aetna areas of need including m
Slide 5: CVS Health continues to lead the nation's COVID-19 response
CVS Health continues to lead the nation’s COVID-19 response 29M 30M tests vaccines administered administered since program at LTC and CVS Health inception1; >6M locations since tests during Q2 program inception1; 2021 ~17M vaccines during Q2 2021 ~12% of customers new to CVS Health through COVID-19
Slide 6: Q2 2021 financial review
Q2 2021 financial review 6 ©2021 CVS Health and/or one of its affiliates. Confidential and proprietary.
Slide 7: Consolidated results
Q2 RESULTS Consolidated results Delivered strong results with all businesses exceeding our expectations Interest expense in millions, except per share data Q2 2021 Q2 2020 Change % of $636 million Total revenues $72,616 $65,341 11.1% Adjusted effective Adjusted operating income $4,887 $5,328 (8.3%)
Slide 8: Capital and cash flow allocation
Q2 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 $5.8 billion cash flow from operations Repaid $2.4 billion of long-term debt Paid $650 million
Slide 9: Health Care Benefits segment
Q2 RESULTS Health Care Benefits segment Strong revenue growth; adjusted operating income reflects return to normal utilization vs. historically low utilization in Q2 2020 due to COVID-19 in millions, except MBR Q2 2021 Q2 2020 Change % Total revenue growth reflects growth in Total revenues $20,525 $
Slide 10: Pharmacy Services segment
Q2 RESULTS Pharmacy Services segment Significant outperformance: Specialty, Network, and Mail all delivered sequential claims growth in the quarter Total revenue growth reflects increased pharmacy claims volume, growth in Specialty pharmacy, and brand inflation, partially offset by continued price c
Slide 11: Retail / LTC segment
Q2 RESULTS Retail / LTC segment Strong revenue growth driving operating income rebound Total revenue growth reflects increased prescription volume, COVID-19 vaccinations and testing, and higher front store revenues across all product categories, partially offset by continued pharmacy reimbursement p
Slide 12: Retail pharmacy
Q2 RESULTS Retail pharmacy Balanced growth from both Front Store and Pharmacy Change vs. Q2 Continued growth in Retail pharmacy script 2020 share in a dynamic environment Retail pharmacy script share of 26.3%1, 2 Up ~20 bps Growth in prescriptions filled reflects COVID-19 vaccinations, continued ado
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 AUG 4 MAY 4 in billions, except per share data FY21 Guidance2 FY21 Guidance Guidance raise reflects strong performance in Q2 and solid $280.7 to $285.2 $279.2 to $283.7 outlook Total revenues1 4.50% to 6.25% 4.00% to 5.75% Q2 outperformance is partially
Slide 15: Health Care Benefits outlook
GUIDANCE: FULL-YEAR 2021 Health Care Benefits outlook in billions, except MBR and AUG 4 MAY 4 membership FY21 Guidance FY21 Guidance Total revenues1 $79.9 to $81.2 $79.4 to $80.7 6.25% to 8.00% 5.50% to 7.25% Raising HCB segment total $5.25 to $5.35 $5.25 to $5.35 revenues to reflect growth in Adjus
Slide 16: Pharmacy Services outlook
GUIDANCE: FULL-YEAR 2021 Pharmacy Services outlook AUG 4 MAY 4 in billions FY21 Guidance FY21 Guidance Raising total revenues and adjusted operating income to Total revenues $148.4 to $150.9 $147.9 to $150.4 reflect the strength in Q2 and 4.50% to 6.25% 4.25% to 6.00% visibility to the H2 Adjusted o
Slide 17: Retail/LTC outlook
GUIDANCE: FULL-YEAR 2021 Retail/LTC outlook AUG 4 MAY 4 in billions FY21 Guidance FY21 Guidance Raising Retail/LTC total revenues to reflect the strength Total revenues $94.3 to $95.6 $93.8 to $95.1 in Q2 3.25% to 4.75% 2.75% to 4.25% Guidance reflects the reduced Adjusted operating income $6.6 to $
Slide 18: Other items
GUIDANCE: FULL-YEAR 2021 Other items AUG 4 MAY 4 in billions, except tax rate FY21 Guidance FY21 Guidance Interest expense ~$2.6 ~$2.6 Capital expenditures $2.7 to $3.0 $2.7 to $3.0 Adjusted effective tax rate ~25.5% ~25.4% Weighted-average diluted share count ~1,330 ~1,330 Cash flow from operations