Slide 1: McKesson Corporation First Quarter Fiscal 2025 Earnings Call
McKesson Corporation First Quarter Fiscal 2025 Earnings Call August 7, 2024
Slide 2: Cautionary Statements
Cautionary Statements Cautionary Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward- looking statements may be identified by their use of terminology such as
Slide 3: Our Company Priorities
Our Company Priorities Expand Focus on Oncology Evolve and People Sustainable Core and Grow the and Biopharma Portfolio Culture Growth Platforms Commitment to Scaled and durable Differentiated assets Digital enablement and AI investing in talent distribution capabilities and capabilities in communit
Slide 4: First Quarter Fiscal 2025 Results
First Quarter Fiscal 2025 Results
Slide 5: Continued progress against strategic priorities leveraging broad capabilities
Continued progress against strategic priorities leveraging broad capabilities Business Summary Company Updates • Revenues of $79.3 billion increased 6% • McKesson’s Board of Directors approved: • 15% increase to the quarterly dividend to $0.71 per • Earnings per diluted share of $7.00 decreased $0.0
Slide 6: Consolidated adjusted financial information
Consolidated adjusted financial information Q1 Fiscal 2025 Results Adjusted Results Q1 YoY ($ and shares in millions, except per share amounts) FY 25 Change GAAP Revenues $ 79,283 6% Gross Profit $ 3,060 4% Operating Expenses $ (1,927) 7% Operating Profit $ 1,305 12 % Interest Expense $ (70) 67 % In
Slide 7: U.S. Pharmaceutical
U.S. Pharmaceutical Q1 Fiscal 2025 Results Results Q1 YoY ($ in millions) FY 25 Change U.S. Pharmaceutical Revenues $ 71,715 7% Adjusted Segment Operating Profit $ 815 6% Adjusted Segment Operating Profit Margin 1.14 % (1) bp Q1 revenue growth driven by increased prescription volumes, including high
Slide 8: Prescription Technology Solutions
Prescription Technology Solutions Q1 Fiscal 2025 Results Results Q1 YoY ($ in millions) FY 25 Change Prescription Technology Solutions Revenues $ 1,241 —% Adjusted Segment Operating Profit $ 223 —% Adjusted Segment Operating Profit Margin 17.97 % 4 bp Q1 revenue flat to the prior year driven by grow
Slide 9: Medical-Surgical Solutions
Medical-Surgical Solutions Q1 Fiscal 2025 Results Results Q1 YoY ($ in millions) FY 25 Change Medical-Surgical Solutions Revenues $ 2,636 1% Adjusted Segment Operating Profit $ 200 (15) % Adjusted Segment Operating Profit Margin 7.59 % (141) bp Q1 revenue increase driven by higher volumes of special
Slide 10: International
International Q1 Fiscal 2025 Results Results Q1 YoY ($ in millions) FY 25 Change International Revenues $ 3,691 6% Adjusted Segment Operating Profit $ 102 13 % Adjusted Segment Operating Profit Margin 2.76 % 16 bp Q1 revenue and Adjusted Segment Operating Profit increase driven by higher pharmaceuti
Slide 11: Corporate
Corporate Q1 Fiscal 2025 Results Results Q1 YoY ($ in millions) FY 25 Change Corporate Adjusted Corporate Expenses $ (35) (77) % Q1 Adjusted Corporate Expenses decreased by $114 million, driven by pre-tax gains of $110 million associated with McKesson Ventures’ equity investments, compared to pre-ta
Slide 12: Cash
Cash ($ in millions) YTD Cash Balance Walk Cash Dynamics Balance at March 31, 20241 $ 4,585 Operating cash flow of ($1.4) billion, a portion of which was used in support of onboarding new customers Operating cash flow (1,380) Capital expenditures (167) Free Cash Flow of ($1.5) billion Free Cash Flow
Slide 13: Fiscal 2025 Outlook
Fiscal 2025 Outlook On the following slides, McKesson presents an overview of its fiscal 2025 Outlook and assumptions. The company does not provide forward-looking guidance on a GAAP basis as McKesson is unable to provide a quantitative reconciliation of forward- looking Non-GAAP measures to the mos
Slide 14: Raising Fiscal 2025 Adjusted EPS outlook
Raising Fiscal 2025 Adjusted EPS outlook $31.75 to $32.55 Strong Business Performance Capital Deployment Fiscal 2025 Adjusted Operating Profit growth of 10% to Anticipate approximately $2.8 billion in share repurchases in 15% compared to the prior year Fiscal 2025 Fiscal 2025 Adjusted Earnings per D
Slide 15: Fiscal 2025 Adjusted EPS outlook
Fiscal 2025 Adjusted EPS outlook $31.75 to $32.55 $31.25 to $32.05 FY25 Outlook Q1 FY25 McKesson Ventures Operating Other1 FY25 Outlook Performance May 7, 2024 August 7, 2024 See endnotes for details 15 © 2024 McKesson Corporation. All rights reserved.
Slide 16: Fiscal 2025 Adjusted EPS outlook
Fiscal 2025 Adjusted EPS outlook $31.75 to $32.55 $27.44 FY24 McKesson Ventures Operating Other1 FY25 Outlook Performance Actual August 7, 2024 See endnotes for details 16 © 2024 McKesson Corporation. All rights reserved.
Slide 17: Fiscal 2025 adjusted outlook: consolidated metrics
Fiscal 2025 adjusted outlook Consolidated metrics Metric Fiscal 2025 Outlook Fiscal 2024 Actual Earnings per Diluted Share $31.75 to $32.55 $27.44 Previously $31.25 to $32.05 GAAP Revenues 13% to 15% growth 12% growth Previously 15% to 17% growth Operating Profit 10% to 15% growth 2% decline Previou
Slide 18: Fiscal 2025 adjusted outlook: segment metrics
Fiscal 2025 adjusted outlook Segment metrics U.S. Pharmaceutical Prescription Technology Medical-Surgical International Solutions Solutions Revenue 13% to 16% growth 14% to 18% growth 3% to 7% growth 4% to 8% growth Previously 16% to 19% growth Previously 18% to 22% growth Previously 4% to 8% growth
Slide 19: Appendix
F: Sy Appendix e ad “RESON |
Slide 20: Endnotes
Endnotes These notes refer to the financial metrics and/or defined terms presented on: Slide 3 – Our Company Priorities 1. Long-Term Adjusted EPS Growth Target excludes gains or losses associated with McKesson Venture’s portfolio investments Slide 6 – Consolidated adjusted financial information 1. N
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Fiscal 2025 and Q1 Fiscal 2024 McKESSON CORPORATION Schedule 2 RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (unaudited) (in millions) Three Months Ended June 30, 2024 2023 Change Net income (GAAP) $ 960 $ 997 (4)% Net income attributable
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Fiscal 2025 and Q1 Fiscal 2024 McKESSON CORPORATION Schedule 2 RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (Continued) (unaudited) (in millions, except per share amounts) Three Months Ended June 30, 2024 2023 Change (a) Earnings per dilu
Slide 23: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Fiscal 2025 and Q1 Fiscal 2024 McKESSON CORPORATION Schedule 2 RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (Continued) (unaudited) (in millions) Three Months Ended June 30, 2024 2023 Change Gross profit (GAAP) $ 3,152 $ 3,022 4% Pre-tax
Slide 24: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Fiscal 2025 and Q1 Fiscal 2024 McKESSON CORPORATION Schedule 2 RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (Continued) (unaudited) (in millions) Three Months Ended June 30, 2024 2023 Change Interest expense (GAAP) $ (75) $ (47) 60 % Pre-
Slide 25: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Fiscal 2025 and Q1 Fiscal 2024 McKESSON CORPORATION Schedule 2 RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (Continued) (unaudited) (in millions, except per share amounts) (a) Certain computations may reflect rounding adjustments. Any per
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Fiscal 2025 and Q1 Fiscal 2024 McKESSON CORPORATION RECONCILIATION OF GAAP SEGMENT OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) Schedule 3 (unaudited) (in millions) Three Months Ended June 30, 2024 2023 Change As reported As adjusted As reported As adjusted As
Slide 27: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Fiscal 2025 and Q1 Fiscal 2024 McKESSON CORPORATION Schedule 6 RECONCILIATION OF GAAP CASH FLOW TO FREE CASH FLOW (NON-GAAP) (unaudited) (in millions) Three Months Ended June 30, 2024 2023 Change GAAP CASH FLOW CATEGORIES Net cash used in operating activities $ (1,
Slide 28: Financial Statement Notes
Financial Statement Notes 1 of 1 1. Restructuring, impairment, and related charges, net for the three months ended June 30, 2024 includes pre-tax charges of $10 million ($8 million after-tax), primarily within Medical-Surgical Solutions and Prescription Technology Solutions. The three months ended J
Slide 29: Supplemental Non-GAAP Financial Information
Supplemental Non-GAAP Financial Information McKESSON CORPORATION 1 of 3 SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION In an effort to provide investors with additional information regarding the Company's financial results as determined by generally accepted accounting principles ("GAAP"), McKesson Cor
Slide 30: Supplemental Non-GAAP Financial Information
Supplemental Non-GAAP Financial Information SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION (continued) 2 of 3 • Adjusted Segment Operating Profit (Non-GAAP) and Adjusted Segment Operating Profit Margin (Non-GAAP): We define Adjusted Segment Operating Profit as GAAP segment operating profit, excluding a
Slide 31: Supplemental Non-GAAP Financial Information
Supplemental Non-GAAP Financial Information SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION (continued) 3 of 3 Other adjustments - The Company evaluates the nature and significance of transactions qualitatively and quantitatively on an individual basis and may include them in the determination of our ad