The Cigna Group · NYSE:CI
The Cigna — Cigna — Investor Day (March 2021)
105 slides from The Cigna's investor day presentation, Mar 8, 2021
Slide 1: Cigna Investor Day 2021: Growth with Purpose
A # Cigna. VA growth with purpose CIGNA INVESTOR DAY | 2021
Slide 2: Forward-looking statements
Forward-looking statements CAUTIONARY STATEMENT FOR PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This presentation, the Investor Day webcast of Cigna Corporation (“Cigna” or the “Company”) and oral statements made with respect to information contai
Slide 3: Non-GAAP measures and other key financial information
Non-GAAP measures and other key financial information NON-GAAP MEASURES AND OTHER KEY FINANCIAL INFORMATION Throughout the webcast, the term “earnings” means adjusted income (loss) from operations, “earnings per share” or “EPS” means adjusted income (loss) from operations on a diluted per share basi
Slide 4: © 2021 Cigna
© 2021 Cigna 4
Slide 5: © 2021 Cigna
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Slide 6: Agenda
CIGNA INVESTOR DAY Agenda • Positioned for another era of growth • Delivering on our promise through differentiated value • Fueling growth through partnership and innovation • Expanding our addressable market • Growth outlook and capital deployment • Q&A © 2021 Cigna 6
Slide 7: Positioned for Another Era of Growth
CIGNA INVESTOR DAY Positioned for Another Era of Growth David Cordani, President and Chief Executive Officer, Cigna Corporation aie, © igna Mie ce 2021 Cig €@ Cigna 7
Slide 8: Champions for affordable, predictable, simple health care
CHAMPIONS FOR affordable predictable simple H E A LT H C A R E © 2021 Cigna 8
Slide 9: Three forces changing health care
Three forces changing health care Pharmacological Mental and physical Access innovations health connection to care © 2021 Cigna 9
Slide 10: Virtual care rapidly changing and growing
Virtual care rapidly changing and growing $250B Use of telehealth Use of telehealth in 2019 in 2020 Potential future telehealth spend 11% 46% McKinsey, Telehealth: A quarter-trillion-dollar post-COVID-19 reality? 2020 © 2021 Cigna https://www.mckinsey.com/industries/healthcare-systems-and-services/o
Slide 11: Our growth platforms
Our growth platforms U.S. Medical International Markets Commercial and Government © 2021 Cigna 11
Slide 12: Our growth framework
Our growth framework Deliver Partner and Expand our differentiated innovate addressable value markets © 2021 Cigna 12
Slide 13: Delivering innovative and flexible solutions
Delivering innovative and flexible solutions Integrated Point Coordinated solutions solutions services © 2021 Cigna 13
Slide 14: Meet our team
Matt Manders President Government & Solutions Cigna Corporation Amy Bricker President Express Scripts PBM Evernorth Eric Palmer President and Chief Operating Officer Evernorth Brian Evanko Chief Financial Officer Cigna Corporation Jason Sadler President International Markets Cigna Corporation Joan H
Slide 15: Questions
Given Cigna’s business mix, what is driving your continued confidence in your growth projections? When you think about the risks to your Questions business – economic, legislative and political – why won’t Cigna fall off of its very attractive growth trajectory? What is your outlook for the impact o
Slide 16: Our track record of growth
2010–2017 Our track record of growth U.S. COMMERCIAL ~ 2X Adjusted 9% revenue Adjusted grew on scripts average by grew 13% ~3X Adjusted Adjusted earnings EBITDA grew on (more than 4x grew average by customer growth) 3% Medical customers grew on average by © 2021 Cigna 16
Slide 17: Expanding relationships drives profitable growth and improves affordability
Expanding relationships drives profitable growth and improves affordability Up to 30% Adjusted revenue growth Specialty pharmacy ___ Medical Alternative care access Pharmacy anchor ___ Behavioral anchor health Medical and pharmacy provide the foundation for fast growing services © 2021 Cigna 17
Slide 18: Our capital-light model gives us strategic and financial flexibility
Our capital-light model gives us strategic and financial flexibility • Billions returned in affordability savings • M&A targeted when differentiated or efficient • Innovative new services and solutions created and delivered © 2021 Cigna 18
Slide 19: Long-term growth framework
Long-term growth framework 2 1 APPROX. APPROX. 3 Delivering 6%–8% Long-term average annual 3 Partnering and differentiated adjusted revenue growth value innovating + Expanding addressable markets © 2021 Cigna 19
Slide 20: The future will continue to be dynamic
The future will continue to be dynamic Affordability Actively engaged Regulatory and Technology Pharmacological health care buyer legislative advances innovations groups activity © 2021 Cigna 20
Slide 21: Levers for success
Levers for success • A change culture and orientation • Strategic flexibility and multiple avenues for growth • Significant operating cash flow generation © 2021 Cigna 21
Slide 22: Proven ability to grow and innovate through change
Proven ability to grow and innovate through change $20 Decade track $15 ADJUSTED EPS record of average $10 annual adjusted EPS greater than $5 10%-13% target $- 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 MAJOR ACA Individual Public COVID-19 EVENTS Enacted Mandate Upheld Exchanges Launche
Slide 23: Growth with purpose
Growth with purpose Track record of delivering value Well-positioned growth platforms Durable growth framework Strategic and capital flexibility © 2021 Cigna 23
Slide 24: Delivering on Our Promise through Differentiated Value
CIGNA INVESTOR DAY Delivering on Our Promise through Differientiated Value Matt Manders, President, Government & Solutions, Cigna Corporation Amy Bricker, President, Express Scripts PBM, Evernorth
Slide 25: Affordability is the #1 issue in health care
Affordability is the #1 issue in health care © 2021 Cigna 25
Slide 26: Delivering sustainable medical and pharmacy trend at or below CPI
Delivering sustainable medical and pharmacy trend at or below CPI over time © 2021 Cigna 26
Slide 27: Intensified affordability approach
Intensified affordability approach Provider image DR 1 High-performing providers 2 Lowering drug costs 3 Effective sites of care 4 End-to-end clinical solutions Clinical programs Whole-person health Alternative care delivery capabilities © 2021 Cigna 27
Slide 28: Intensified affordability approach: high-performing providers
Intensified affordability approach 1 High- performing providers 10% $250K 2 Guide to high-performing primary, specialty Average customer savings Average employer savings per providers opportunity per year year with 500 employees Lowering Care at drug costs Optimal procedural, Coordination with drug
Slide 29: Intensified affordability approach: lowering drug costs
Intensified affordability approach 1 High- performing providers $6,000 $1M 2 Value-based pharmaceutical programs with Average annual patient Average annual client specialized savings, inflammatory savings, inflammatory clinical support drug class drug class Lowering drug costs 3 95% + Improved: 16 =
Slide 30: Intensified affordability approach: effective sites of care
Intensified affordability approach 1 High- performing providers Timely cost- $425 +71 2 effective access to virtual care Average savings per virtual NPS Customer NPS compared to visit, compared to in-person in person Lowering drug costs Digital tools, 3 remote monitoring applications Effective sites
Slide 31: Intensified affordability approach: clinical solutions
Intensified affordability approach 1 High- performing providers $3,500 2 Early behavioral, Preventive care, lifestyle interventions virtual wellness that Average savings in future get ahead of disease medical costs per customer Lowering drug costs Treat mental, $2 for $1 3 Medical Pharmacy physical
Slide 32: Intensified affordability approach
Intensified affordability approach Provider image DR 1 High-performing providers 2 Lowering drug costs 3 Effective sites of care 4 End-to-end clinical solutions Clinical programs Whole-person health Alternative care delivery capabilities © 2021 Cigna 32
Slide 33: Innovative pharmacy solutions
Innovative pharmacy solutions Improved adherence Patient Assurance 90-day Encouraged refill size ProgramSM $25 26% Increased adherence rates Price cap for a 30-day for patients with diabetes supply of insulin 40% Better Average annual health patient savings + Lower costs © 2021 Cigna 33
Slide 34: Multiple lower-cost sites of care
Multiple lower- cost sites of Invasive, surgical and diagnostic services care Specialty injectables $1,400 and gene therapies Average savings per colonoscopy $4K $2,000 Average savings per upper GI Incremental savings by endoscopy administering in home $60K Easier access Average savings per patient
Slide 35: End-to-end clinical programs
End-to-end clinical programs Accredo® specialty pharmacist Improved adherence and eviCore medication management Connect to oncology specialists Ancillary support Financial, social and return to health programs Care team Behavioral specialists and services SAVINGS Accredo® Tens of at home infusion Nu
Slide 36: Delivering results
Delivering results 30% Improved customer $10M Client savings by engagement via closing gaps in care our digital tools for 10K+ covered lives 10% Improved pharmacy spend 4% Improved medical spend for clients using our most for integrated clients innovative solutions compared to non-integrated Taking
Slide 37: Differentiated value drives our growth
Differentiated value drives our growth Integrated 2 APPROX. solutions 3 Delivering 6%–8% Long-term average annual Point solutions differentiated adjusted revenue growth value Coordinated services © 2021 Cigna 37
Slide 38: How differentiated value drives our growth
How differentiated value drives our growth End-to-end clinical solutions Value-based programs Digital therapeutics Growth driven across pharmacy, benefits management, care solutions, intelligence that also feed U.S. Medical & International Markets © 2021 Cigna 38
Slide 39: How differentiated value drives our growth: Commercial
How differentiated value drives our growth • Networks that guide to right • Enhanced pharmacy, providers, sites of care end-to-end clinical solutions • Virtual, digital, • Accelerated trend in-home capabilities reduction Growth driven through integrated offerings, enhanced Commercial by Evernorth po
Slide 40: How differentiated value drives our growth: Government
How differentiated value drives our growth • Superior clinical quality, • PPO, HMO, supplemental benefits Stars ratings • Strengthened by affordable • Value-based provider Commercial networks, partner of choice Evernorth pharmacy solutions Government Growth driven through integrated offerings, enhan
Slide 41: How differentiated value drives our growth: International
How differentiated value drives our growth Peace Targeted Access of mind health to care solutions solutions capabilities International Markets Growth driven through supplemental, integrated and coordinated offerings, enhanced by enterprise capabilities © 2021 Cigna 41
Slide 42: Fueling Growth through Partnership and Innovation
CIGNA INVESTOR DAY Fueling Growth through Partnership and Innovation Tim Wentworth, Chief Executive Officer, Evernorth Jason Sadler, President, International Markets, Cigna Corporation
Slide 43: Partnership and innovation fuel our growth with purpose
Partnership and innovation fuel our growth with purpose Strategic partnerships: Accelerate the pace Create Rapidly expand our of innovation mutual value addressable market © 2021 Cigna 43
Slide 44: Our powerful track record of innovation
Our powerful Capabilities Scale and Distribution Culture of Innovation track record of innovation • Medical benefits and management • 175 million global customer relationships • Committed to solving health care’s biggest issues • Pharmacy solutions • 1.6 million global relationships with • Rapid pac
Slide 45: Express Scripts combination accelerated the pace of innovation
Express Scripts combination accelerated the pace of innovation Scale and Culture of Capabilities Distribution Innovation Introduced Launched Created Embarc Benefit Patient Assurance groundbreaking ProtectionSM ProgramSM Digital Formulary © 2021 Cigna 45
Slide 46: Partnership is key to our strategy
Partnership is key to our strategy Expanding our reach Driving the future through an innovative Leading the way to of virtual care partnership enable greater access Vaccine Credential ® Initiative • Gave customers access to • Successfully launched in three virtual urgent care services markets; anoth
Slide 47: Partnership and innovation are key to reshaping the future of health care
Partnership and innovation are key to reshaping the future of health care Innovation Partnership © 2021 Cigna 47
Slide 48: New solutions to differentiate us and fuel our growth
New solutions to differentiate us and fuel our growth Offering coordinated, integrated or point solutions Curator of the best-in-class PHARMACY+ capabilities from within our own organization CARE+ Coordinate or integrate BENEFITS with partners from MANAGEMENT+ across the health care ecosystem INTELL
Slide 49: Building trust and delivering value
Building trust and delivering value Additional Earned the right to 30 million lives expand into home across 23 delivery and specialty health plans pharmacy © 2021 Cigna 49
Slide 50: The power of coordinated services
The power of BY 2025 coordinated services 10M 1 people will encounter fertility challenges Comprehensive medical and treatment guidelines IN 2018 80% Integrated pharmacy management and 24/7 2 support to help patients manage medications Post-birth education and services to help set of people who unde
Slide 51: Intelligence drives results
Intelligence drives results COVID-19 case study Analyzed data from confirmed COVID-19 cases across U.S. Commercial business Results 80% of total COVID-19-related costs were from hospitalized customers Cigna case management reduced 60-day post-COVID-19 costs by ~$2,000 Case management enabled a retur
Slide 52: Partnership and innovation fuel our growth globally
Partnership and innovation fuel our growth globally 30+ Countries/ 7K+ Employer jurisdictions clients ~14M Customer Africa Europe North America relationships Asia Pacific India South Korea Australia Middle East Turkey China New Zealand © 2021 Cigna 52
Slide 53: Using data science to improve outcomes and lower costs
= 50/50 joint venture with nib Group, one of the leading health insurers in Australia Using data science to improve outcomes and lower costs Hospital support program achieved: 17% reduction in the number of readmissions 25% reduction in costs +66 customer NPS Better health outcomes, better customer
Slide 54: Expanding our reach in an important region
+ #1 TPA in the UAE with a shared vision of improving the health care system Expanding our reach in an important region 1M+ 20% customers through of all insurers and medical government clients claims Coordinated health services that put customers at the center © 2021 Cigna 54
Slide 55: Innovation + partnership = sustainable growth with purpose
Innovation + partnership = sustainable growth with purpose © 2021 Cigna 55
Slide 56: © 2021 Cigna
© 2021 Cigna 56
Slide 57: Expanding our addressable market
Expanding our addressable market GEOGRAPHIC PRODUCTS + SOLUTIONS NEW BUYER GROUPS EVERNORTH NEW BUYER GROUPS U.S. MEDICAL U.S. COMMERCIAL U.S. MEDICAL GOVERNMENT © 2021 Cigna 57
Slide 58: Evernorth serves a diversified client base
serves a diversified client base ~ 80 % of Evernorth adjusted revenues from external clients © 2021 Cigna 58
Slide 59: Meeting customers where and when they want
CARE ACCESS CAPABILITIES Meeting customers where and when they want home work virtual © 2021 Cigna 59
Slide 60: Driving the future of virtual care
+ Driving the future of virtual care Primary care Chronic care Behavioral Urgent services services services care © 2021 Cigna 60
Slide 61: Demand for behavioral services will continue to rise
Demand for behavioral services will continue to rise in all markets • Depression • Loneliness • Anxiety • Substance use © 2021 Cigna 61
Slide 62: Putting patients at the center of the care equation
Putting patients at the center of the care equation CARE SOLUTIONS+ © 2021 Cigna 62
Slide 63: Behavioral services enable us to improve the system and grow with purpose
Behavioral services enable us to improve the system and grow with purpose Increasing the addressable 5X market more than © 2021 Cigna 63
Slide 64: U.S. Medical
U.S. Medical Commercial and Government Fueling each other’s growth © 2021 Cigna 64
Slide 65: Increase our addressable market and deliver attractive growth
U.S. MEDICAL Increase our addressable market and deliver attractive growth Improved competitive Broader portfolio of Innovative positioning driven by capabilities to reach partnerships improved affordability new buyer groups © 2021 Cigna 65
Slide 66: Expanding our U.S. Commercial competitive footprint by 25%
Expanding our U.S. Commercial competitive footprint by 25% to win in more geographies by 2025 © 2021 Cigna 66
Slide 67: Evernorth is a differentiator
+ Evernorth is a differentiator Strong partner Early adopter © 2021 Cigna 67
Slide 68: An innovative partnership to expand our reach
+ An innovative partnership to expand our reach New buyer New segment geographies © 2021 Cigna 68
Slide 69: Medicare Advantage
Medicare Advantage 10 -15 % % average annual customer growth Geographic Product Addressing expansion expansion new buyers • Reach 50% of • Medicare Advantage PPO • Employer Group Waiver Medicare eligibles • 150,000 Cigna Commercial Plans, specifically Group by 2025 customers will turn 65 every Medic
Slide 70: Differentiators to achieve our growth
Differentiators to achieve our growth Strong Outstanding Affordability Stars rating Net Promoter Score © 2021 Cigna 70
Slide 71: One Cigna: the power of our brand
One Cigna: the power of our brand Medicare Individual and U.S. Commercial + Advantage + Family Plans © 2021 Cigna 71
Slide 72: Individual and Family Plans growth by 2025
Individual and Family Plans growth by 2025 Doubling Doubling membership to markets to 500K customers 20 states © 2021 Cigna 72
Slide 73: Expanding our addressable market
Expanding our addressable market GEOGRAPHIC PRODUCTS + SOLUTIONS NEW BUYER GROUPS Expanded services and EVERNORTH Expansion of post-acute offerings: virtual capabilities NEWall Serving BUYER GROUPS entities and in home capabilities and behavioral services U.S. MEDICAL Growth from improved Evernorth
Slide 74: Our overall U.S. total addressable market will more than double
OVER THE NEXT FIVE YEARS Our overall U.S. total addressable market will more than double 2025 TODAY $ 2.2T $ 1T © 2021 Cigna 74
Slide 75: Growth Outlook and Capital Deployment
CIGNA INVESTOR DAY Growth Outlook and Capital Deployment Brian Evanko, Executive Vice President and Chief Financial Officer, Cigna Corporation
Slide 76: Our service-based business model drives significant financial capacity
CAPITAL-LIGHT MODEL Our service-based business model drives significant financial capacity and strategic flexibility © 2021 Cigna 76
Slide 77: Key takeaways
Well positioned to deliver in 2021 and 2022 Key Raised Evernorth takeaways long-term outlook Long-term adjusted EPS growth of 10%–13% while paying a meaningful dividend © 2021 Cigna 77
Slide 78: 2021 outlook
2021 outlook $1.25 EPS COVID-19 impact at least $165B Adjusted revenues ~50% Medical care ratio within U.S. Medical at least $6.95B Adjusted earnings1 35%-40% Lower customer volumes at least $20.00 10%-15% Adjusted EPS1 Smaller impacts across our platform © 2021 Cigna 1Includes $1.25 EPS COVID-19-re
Slide 79: Long-term growth framework
Long-term growth framework 6%–8% 2 1 APPROX. APPROX. 3 3 Long-term average annual 6%–8% adjusted revenue growth Delivering Long-term average annual Partnering and differentiated adjusted revenue growth 6%–8% innovating value + Expanding addressable Long-term average annual markets adjusted earnings
Slide 80: Evernorth long-term growth
Evernorth long-term growth Long-term targets 4%–6% Adjusted revenue growth Flexible funding arrangements Percentage of > 75% clients with full 50% 4%–6% pass-through < 50% arrangements on rebates: Adjusted earnings growth Pre-2018 2018 2021 4.5%–5.5% Accredo Specialty Pharmacy ~ 1/3 of Evernorth adj
Slide 81: U.S. Medical long-term growth
U.S.U.S.Medical MEDICAL long-term growth LONG TERM TARGETS Long-term targets 9%–12% Adjusted revenue growth 8%–11% Adjusted earnings growth 9%–10.5% Adjusted pretax margins © 2021 Cigna 81
Slide 82: U.S. Medical: Commercial
U.S. Medical: Commercial Long-term targets Strong track record of growth 8%–10% 16 Millions 15 14.1M Adjusted revenue growth 14 8%–10% 13 12 10.9M Adjusted earnings growth 11 10 12%–14% Adjusted pretax margins 9 8 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 U.S.Commercial Medical Customer
Slide 83: U.S. Medical: Commercial
U.S. Medical: Commercial Long-term targets 8%–10% Adjusted revenue growth Drove 5% full-year 8%–10% 2020 customer growth Adjusted earnings growth in Select segment 12%–14% Adjusted pretax margins © 2021 Cigna 83
Slide 84: U.S. Medical: Government
U.S. Medical: Government Long-term targets Medicare Advantage 12%–15% 10%–15% of customers in 4-Star-rated average annual customer 88% plans or higher Adjusted revenue growth growth through 2025 in 2021 12%–15% Adjusted earnings growth Strong NPS 74 The only national carrier 54 with 4.5 weighted ave
Slide 85: U.S. Medical: Government
U.S. Medical: Government Long-term targets Individual and Family Plans 12%–15% Addressable market growth opportunities 20% 40% Adjusted revenue growth 12%–15% Adjusted earnings growth Doubling ACA customer base and number of states where we offer solutions by 2025 4%–5% Adjusted pretax margins © 202
Slide 86: International Markets long-term growth
International Markets long-term growth Long-term targets 8%–10% Adjusted revenue growth Expanding health solutions and addressable market 8%–10% Adjusted earnings growth 11%–13% Adjusted pretax margins © 2021 Cigna 86
Slide 87: Long-term financial targets by growth platform
Long-term financial targets by growth platform Annual adjusted Annual adjusted Growth platform Adjusted margins revenue growth earnings growth Enterprise 6%–8% 6%–8% 4%–5% After-tax Evernorth 4%–6% 4%–6% 4.5%–5.5% U.S. Medical 9%–12% 8%–11% 9%–10.5% U.S. Commercial 8%–10% 8%–10% 12%–14% Pre-tax U.S.
Slide 88: Competitively differentiated SG&A ratio
Competitively differentiated SG&A ratio Midpoint of 2021 guidance range for SG&A ratio Cigna 7.8% Humana 10.5% Anthem 10.8% CVS* 13.1% UnitedHealth Group 14.0% *CVS reported SG&A for 2020. © 2021 Cigna 88
Slide 89: Cash flow generation and capital deployment framework
Cash flow generation and capital deployment framework Average annual deployment to ~$50B 2021–2025 dividends, share repurchase Cash flow and M&A 2021 to 2025 from operations ~$8B ~$10B Capital expenditures and surplus to fund growth ~20% 2019 to 2020 ~40% Dividend ~$40B ~80% ~$3B Long-term target de
Slide 90: Cigna's cost of debt has declined by more than 20% since 2014
Interest Expense as % of Outstanding Debt 5.5% SINCE 2014 Cigna’s cost 5.1% 5.0% of debt has declined by 4.5% 4.0% >20% 4.0% 3.5% 2014 2015 2016 2017 2018 2019 2020 © 2021 Cigna 90
Slide 91: Approach to strategic M&A
Approach to strategic M&A Care coordination Government Intelligence and International health and alternate site of programs technology care capabilities care capabilities and services capabilities © 2021 Cigna 91
Slide 92: Strong long-term shareholder value
Strong long-term shareholder value 6%–8% 4%–5% 10%–13% Long-term average annual adjusted earnings growth + Long-term average annual contribution from accretive = Long-term average annual adjusted EPS growth capital deployment Meaningful dividend – current ~2% yield © 2021 Cigna 92
Slide 93: Growth with purpose
Growth with purpose Track record of delivering value Well-positioned growth platforms Durable growth framework Strategic and capital flexibility © 2021 Cigna 93
Slide 94: Closing
CIGNA INVESTOR DAY Closing David Cordani, President and Chief Executive Officer, Cigna Corporation © 2021 Cigna
Slide 95: Cigna is positioned for another era of sustained, strategic growth
Cigna is positioned for another era of sustained, strategic growth Three forces Our Our Key changing growth growth differentiators health care platforms framework for growth Pharmacological Evernorth Deliver differentiated Purpose-driven innovations value U.S. Medical Strategic flexibility Mental an
Slide 96: © 2021 Cigna
0@ wie, AE Cigna.
Slide 97: Financial Snapshot appendix
Financial Snapshot appendix © 2021 Cigna 97
Slide 98: Forward-looking statements
Forward-looking statements CAUTIONARY STATEMENT FOR PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This presentation, the Investor Day webcast of Cigna Corporation (“Cigna” or the “Company”) and oral statements made with respect to information contai
Slide 99: Non-GAAP measures and other key financial information
Non-GAAP measures and other key financial information NON-GAAP MEASURES AND OTHER KEY FINANCIAL INFORMATION Throughout the webcast, the term “earnings” means adjusted income (loss) from operations, “earnings per share” or “EPS” means adjusted income (loss) from operations on a diluted per share basi
Slide 100: 2021 outlook
2021 outlook $1.25 EPS COVID-19 impact at least $165B Adjusted revenues ~50% Medical care ratio at least $6.95B within U.S. Medical Adjusted earnings1 35%-40% at least $20.00 Lower customer volumes Adjusted EPS1 10%-15% Smaller impacts across our platform © 2021 Cigna 1Includes $1.25 EPS COVID-19-re
Slide 101: 2021 outlook
2021 outlook Adjusted EPS Additional Metrics Key Ratios Adjusted Revenues: at least $165B Medical Care Ratio: 81% to 82% Total Medical Customer Growth: at least $20.00 at least 325,000 customers SG&A expense ratio: 7.5% to 8.0% 2021 Adjusted Pharmacy Scripts: Adjusted tax rate: 22.5% to 23.5% at lea
Slide 102: Strong long-term shareholder value
Strong long-term shareholder value 6%–8% 4%–5% 10%–13% Long-term average annual adjusted earnings growth + Long-term average annual contribution from accretive = Long-term average annual adjusted EPS growth capital deployment Meaningful dividend – current ~2% yield © 2021 Cigna 102
Slide 103: Appendix: Definitions of Key Financial and Business Terms
Appendix Definitions of Key Financial and Business Terms Adjusted margin, pre-tax, is calculated by dividing adjusted income (loss) from operations, pre-tax by adjusted revenues for each segment. Adjusted margin, after-tax, is calculated by dividing consolidated adjusted income (loss) from operation
Slide 104: Appendix: Definitions of Key Financial and Business Terms
Appendix Definitions of Key Financial and Business Terms Market Segments are defined as follows: U.S. Commercial comprises employers from the following market segments: • National. Multistate employers with 5,000 or more U.S.-based, full-time employees. • Middle Market. Employers generally with 500
Slide 105: Reconciliation of GAAP to non-GAAP financial measures
Reconciliation of GAAP to non-GAAP financial measures Diluted Earnings per share Year Ended December 31, 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Shareholders’ net income (loss) $22.96 $13.44 $10.54 $ 8.77 $ 7.19 $ 8.04 $ 7.83 $ 5.18 $ 5.61 $ 4.59 $ 4.65 After-tax adjustments to reconc