Cencora, Inc. · NYSE:COR
Cencora — AmerisourceBergen — Raymond James 37th Annual Institutional Investors Conference (March 2016)
23 slides from Cencora's conference presentation, Mar 8, 2016
Slide 1: 37th Annual Raymond James Institutional Investors Conference
37th Annual Raymond James Institutional Investors Conference Tim Guttman, EVP & CFO March 8, 2016
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements Certain of the statements contained in this presentation are "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. Words such as "expect," "likely," "ou
Slide 3: Who is AmerisourceBergen?
Who is AmerisourceBergen? A Leader in Global Good industry Healthcare Services Great company Legacy of excellent performance Demonstrated financial stewardship Outstanding shareholder value creation 3
Slide 4: AmerisourceBergen By The Numbers
AmerisourceBergen By The Numbers $136B in 18,000 annual revenue associates Daily delivery to 150+ 50,000 healthcare facilities offices 1.5M product lines 50+ delivered from 30+ distribution centers countries 4
Slide 5: US Pharmaceutical Market
US Pharmaceutical Market Strong organic US industry growth Billions $600 14.0% $550 $500 12.0% 10.0% 7.2% 5 YEAR CAGR 8.0% $450 6.0% $400 4.0% US Sales $350 2.0% Growth % $300 0.0% 2014 2015 2016 2017 2018 2019 Source: IMS Health 2015 5
Slide 6: Strong US Pharmaceutical Market
Strong US Pharmaceutical Market Adherence improves patient outcomes Growth Drivers Demographics Expansion of coverage New brand drug launches Focus on value 6
Slide 7: Strategic Vision
Strategic Vision Collaborate with pharmaceutical manufacturers and healthcare providers to efficiently bring drugs to market and improve patient access 7
Slide 8: Well Positioned to Seize Opportunities
Well Positioned to Seize Opportunities Operational excellence drives value for all customers AmerisourceBergen Drug Corporation Core Prime Vendor Strong Cash Business Model Generation Driven by solid Diverse customer Operationally and organic growth base capital efficient FY2015 revenue of Tens of t
Slide 9: Investing in Our Core Business
Investing in Our Core Business Undisputed market leader PharMEDium Value-Added Partner to Hospitals High Quality Opportunity Sterile-to-sterile CSPs in a Operating efficiency in a ready to use form Increase ABC penetration cost-conscious with existing customers environment Compound FDA-approved or a
Slide 10: Investing in Our Core Business
Investing in Our Core Business Regulatory changes driving continued flight to quality Current Share $5.5B Addressable Market CSP Outsourcing Opportunity 10
Slide 11: Well Positioned to Seize Opportunities
Well Positioned to Seize Opportunities Decades of innovation and investment AmerisourceBergen Specialty Group Market Differentiated Drives Patient Leader Services Access FY2015 revenue of Unique portfolio of Collaborates with $24 billion* businesses biotech manufacturers and specialty Grows faster t
Slide 12: Well Positioned to Seize Opportunities
Well Positioned to Seize Opportunities Expertise supports entire product lifecycle Global Manufacturer Services World Consulting Courier Services Premier clinical trial Drives patient access logistics provider & adherence World class white- Enhances regulatory glove service and compliance efforts 12
Slide 13: Well Positioned to Seize Opportunities
Well Positioned to Seize Opportunities Premier animal health service provider MWI Animal Health Animal Health Platform for Market Future Growth $23 billion global market Stellar reputation with customers Cash market for services Serves companion and Fragmented marketplace production animal markets D
Slide 14: How Will We Continue to Drive Performance?
How Will We Continue to Drive Performance? Increase the efficiency and effectiveness of the global supply chain in both human and animal health Knowledge Partnership Unsurpassed expertise in Reach Innovative partnership pharmaceutical philosophy driven to distribution, capitalize on the dynamic Glob
Slide 15: Revenue & Adjusted Operating Income
Revenue & Adjusted Operating Income Revenue Adjusted Operating Income (billions) (billions) $136 $1.9 $120 $1.6 $1.2 $1.3 $1.4 $78 $88 $79 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 See tables at end of presentation for GAAP to non-GAAP reconciliation 15
Slide 16: Adjusted Diluted EPS
Adjusted Diluted EPS $4.96 $3.97 $3.21 $2.67 $3.08 18% $2.21 5 YEAR CAGR 2010 2011 2012 2013 2014 2015 See tables at end of presentation for GAAP to non-GAAP reconciliation 16
Slide 17: Q1 Fiscal 2016 Highlights
Q1 Fiscal 2016 Highlights Adjusted Diluted EPS of $1.27, up 11% Total Revenue of $36.7 billion, up 9% Adjusted Gross Profit of $1.1 billion, up 18% Adjusted Operating Income of $475 million, up 9% Free Cash Flow of $661 million See tables at end of presentation for GAAP to non-GAAP reconciliation 17
Slide 18: AmerisourceBergen – Well Positioned for Future Growth
AmerisourceBergen – Well Positioned for Future Growth A Leader in Global Good industry Healthcare Services Great company Legacy of excellent performance Demonstrated financial stewardship Outstanding shareholder value creation 18
Slide 19: AmerisourceBergen’
N) AmerisourceBergen’ Where knowledge, reach and partnership shape healthcare delivery.
Slide 20: Appendix
Appendix N) AmerisourceBergen’
Slide 21: Adjusted Operating Income
Adjusted Operating Income Fiscal Years Ended September 30, 2010 through September 30, 2015 ($ millions) FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 FY 2010 GAAP Operating Income $ 417 $ 779 $ 898 $ 1,304 $ 1,190 $ 1,087 Anti-Trust Litigation (66) (24) (23) (15) (2) (21) Warrants 913 423 90 - - - Deal Am
Slide 22: Adjusted Diluted EPS from Continuing Operations
Adjusted Diluted EPS from Continuing Operations Fiscal Years Ended September 30, 2010 through September 30, 2015 FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 FY 2010 EPS from Continuing Operations $ (0.62) $ 1.21 $ 2.10 $ 2.96 $ 2.51 $ 2.18 Anti-Trust Litigation (0.18) (0.06) (0.06) (0.04) - (0.04) Warra
Slide 23: GAAP to Non-GAAP Reconciliations
Warrant expense (1) Gain on antitrust litigation settlements LIFO expense Acquisition-related intangibles amortization Employee severance, litigation and other Pension settlement charge Adjusted Non-GAAP Adjusted Non-GAAP % changes vs. prior year period Percentages of Revenue: Gross profit Operating
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