Cvs Health Corporation · NYSE:CVS
Cvs Health — Q2 2022 Earnings Presentation
18 slides from Cvs Health's earnings presentation, Aug 3, 2022
Slide 1: Second Quarter 2022 Earnings Conference Call
SECOND QUARTER 2022 Earnings conference call August 3, 2022 KAREN S. LYNCH President and Chief Executive Officer SHAWN M. GUERTIN Executive Vice President and Chief Financial Officer
Slide 2: 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-looking statements are not guarantees of future performance o
Slide 3: Financial highlights
Financial highlights Q2 2022 Adjusted EPS of $2.40 exceeded expectations; Raising FY 2022 guidance for Revenue, Adjusted Operating Income and Adjusted EPS $2.40 11.0% $5.4 billion Q2 adjusted EPS Q2 revenue growth QTD cash flow from operations Exceeded expectations Reflects growth across Committed t
Slide 4: Unify our business around the consumer health experience
1 Advance all-payer primary care delivery capabilities Optimize retail portfolio to serve as community 2 health destinations Unify our business around the consumer health experience Diversify our growth portfolio with new 3 health services and scale new sources of value 4 Drive digital-first, techno
Slide 5: CVS Health continues to lead the nation's COVID-19 response
>4M tests administered in Q2 ~6M vaccines administered in Q2 CVS Health continues to lead the nation’s ~43M new customers through COVID-19 COVID-19 response testing and vaccine services since inception ~15% of customers new to CVS Health through COVID-19 testing services chose to fill new prescripti
Slide 6: Q2 2022 Financial Review
Q2 2022 Financial Review 6 ©2022 CVS Health and/or one of its affiliates.
Slide 7: Consolidated results
SECOND QUARTER 2022 Consolidated results Delivered strong results and exceeded expectations Strong revenue growth in millions, except per share Q2 2022 Q2 2021 Change % of 11.0% vs. prior year amounts Total Revenues $80,636 $72,616 11.0% Interest expense of $583 million Adjusted Operating Income $4,
Slide 8: Capital and cash flow
SECOND QUARTER 2022 Capital and cash flow Liquidity and capital position remain strong Powerful cash generation Committed to investment grade ratings Generated $5.4 billion in cash flow from operations Paid down $1.5 billion of long-term debt Deploying capital to generate shareholder value Repaid ne
Slide 9: Health Care Benefits segment
SECOND QUARTER 2022 Health Care Benefits segment Robust revenue growth across all product lines; strong underlying performance leading to improved medical benefit ratio in millions, except MBR Q2 2022 Q2 2021 Change % Total revenue growth reflects growth across Total Revenues $22,756 $20,525 10.9% a
Slide 10: Pharmacy Services segment
SECOND QUARTER 2022 Pharmacy Services segment Industry-leading drug trend, Specialty management capabilities and leading customer service levels continue to drive growth Total revenue growth reflects increased pharmacy claims volume, growth in specialty pharmacy and brand inflation, partially offset
Slide 11: Retail / LTC segment
SECOND QUARTER 2022 Retail / LTC segment Retail continues to serve as a community health destination for millions of Americans as we continue to grow retail pharmacy script share Total revenue growth reflects increased prescription and front store volume, including the sale of COVID-19 OTC test kits
Slide 12: Retail pharmacy
SECOND QUARTER 2022 Retail pharmacy Significant year-over-year growth in a dynamic environment Change vs. Continued growth in retail pharmacy script Q2 2021 share Retail Pharmacy Script Share of 26.8%1,2 Up ~50 bps Growth in prescriptions filled2 reflects increased utilization and the impact of an e
Slide 13: 2022 Guidance
2022 Guidance 13 ©2022 CVS Health and/or one of its affiliates.
Slide 14: Total company outlook
FULL-YEAR 2022 GUIDANCE Total company outlook Raising guidance for revenue, adjusted operating income, adjusted EPS, and cash flow from operations Q1:22 Earnings Call Q2:22 Earnings Call Revenue growth in billions, except per share amounts of 5 – 7% May 4, 2022 Aug 3, 2022 Adj. EPS growth Total Reve
Slide 15: Health Care Benefits outlook
FULL-YEAR 2022 GUIDANCE Health Care Benefits outlook Guidance unchanged from Q1 2022 earnings release Revenue growth in billions, except MBR and Q1:22 Earnings Call Q2:22 Earnings Call membership May 4, 2022 Aug 3, 2022 of 9 – 11% $89.3 to $90.8 $89.3 to $90.8 Adj. operating Total Revenues income gr
Slide 16: Pharmacy Services outlook
FULL-YEAR 2022 GUIDANCE Pharmacy Services outlook Raising guidance for total pharmacy claims processed in billions Q1:22 Earnings Call Q2:22 Earnings Call May 4, 2022 Aug 3, 2022 Revenue growth of 6 – 8% Total Revenues $162.5 to $165.3 $162.5 to $165.3 6 – 8% 6 – 8% Adj. operating $7.31 to $7.45 $7.
Slide 17: Retail/LTC outlook
FULL-YEAR 2022 GUIDANCE Retail/LTC outlook Raising guidance for revenue and adjusted operating income in billions Q1:22 Earnings Call Q2:22 Earnings Call May 4, 2022 Aug 3, 2022 Revenue growth of 1 – 3% Total Revenues $99.0 to $100.7 $101.0 to $102.7 (1) – 1% 1 – 3% Reflects updated $5.96 to $6.06 $
Slide 18: Other items
FULL-YEAR 2022 GUIDANCE Other items Raising guidance for adjusted effective tax rate in billions, except tax rate. Cost reduction Q1:22 Earnings Call Q2:22 Earnings Call initiatives in millions May 4, 2022 Aug 3, 2022 Interest Expense ~$2.3 ~$2.3 Capital Expenditures $2.8 to $3.0 $2.8 to $3.0 Adjust