Slide 1: Fiscal 2024 Financial Results and Fiscal 2025 Outlook
McKesson Corporation Fiscal 2024 Financial Results Fiscal 2025 Outlook May 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 Sustainable People and Grow the Core and Biopharma Portfolio Growth Culture Platforms Commitment to Scaled and durable Differentiated assets Digital enablement and AI investing in talent distribution capabilities and capabilities in communit
Slide 4: Fourth Quarter Fiscal 2024 Results
Fourth Quarter Fiscal 2024 Results
Slide 5: Differentiated portfolio creates competitive advantage and delivers sustainable returns
Differentiated portfolio creates competitive advantage and delivers sustainable returns Business Summary Company Updates • Fiscal 2024 revenues of $309.0 billion increased 12% • Continued to advance and expand oncology and biopharma services platforms • Earnings per diluted share from continuing ope
Slide 6: Consolidated adjusted financial information
Consolidated adjusted financial information Q4 and Full Year Fiscal 2024 Results Adjusted Results Q4 YoY Full Year YoY ($ and shares in millions, except per share amounts) FY 24 Change FY 24 Change GAAP Revenues $ 76,355 11 % $ 308,951 12 % Gross Profit $ 3,315 7% $ 12,427 2% Operating Expenses $ (2
Slide 7: U.S. Pharmaceutical
U.S. Pharmaceutical Q4 and Full Year Fiscal 2024 Results Results Q4 YoY Full Year YoY ($ in millions) FY 24 Change FY 24 Change U.S. Pharmaceutical Revenues $ 68,790 12 % $ 278,739 16 % Adjusted Segment Operating Profit $ 901 5% $ 3,315 7% Adjusted Segment Operating Profit Margin 1.31 % (9) bp 1.19
Slide 8: Prescription Technology Solutions
Prescription Technology Solutions Q4 and Full Year Fiscal 2024 Results Results Q4 YoY Full Year YoY ($ in millions) FY 24 Change FY 24 Change Prescription Technology Solutions Revenues $ 1,180 —% $ 4,769 9% Adjusted Segment Operating Profit $ 212 (3) % $ 837 23 % Adjusted Segment Operating Profit Ma
Slide 9: Medical-Surgical Solutions
Medical-Surgical Solutions Q4 and Full Year Fiscal 2024 Results Results Q4 YoY Full Year YoY ($ in millions) FY 24 Change FY 24 Change Medical-Surgical Solutions Revenues $ 2,837 6% $ 11,313 2% Adjusted Segment Operating Profit $ 248 —% $ 1,019 (12) % Adjusted Segment Operating Profit Margin 8.74 %
Slide 10: International
International Q4 and Full Year Fiscal 2024 Results Results Q4 YoY Full Year YoY ($ in millions) FY 24 Change FY 24 Change International Revenues $ 3,548 6% $ 14,130 (31) % Adjusted Segment Operating Profit $ 94 18 % $ 378 (24) % Adjusted Segment Operating Profit Margin 2.65 % 27 bp 2.68 % 26 bp Q4 r
Slide 11: Corporate
Corporate Q4 and Full Year Fiscal 2024 Results Results Q4 YoY Full Year YoY ($ in millions) FY 24 Change FY 24 Change Corporate Adjusted Corporate Expenses $ (193) 30 % $ (648) 42 % Q4 Adjusted Corporate Expenses increase driven by an environmental reserve and higher technology infrastructure and co
Slide 12: Cash
Cash ($ in millions) YTD Cash Balance Walk Cash Dynamics Balance at March 31, 20231 $ 4,679 Free Cash Flow of $3.6 billion Operating cash flow 4,314 Returned $3.3 billion of cash to shareholders year-to-date Capital expenditures (687) Free Cash Flow 3,627 • Repurchased $3.0 billion of shares Other i
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: Fiscal 2025 Adjusted EPS outlook
Fiscal 2025 Adjusted EPS outlook Exceeding long-term targets $31.25 to $32.05 Strong Business Performance Capital Deployment Fiscal 2025 Adjusted Operating Profit growth of 9% to 14% Anticipate approximately $2.8 billion in share repurchases in compared to the prior year Fiscal 2025 Fiscal 2025 Adju
Slide 15: Fiscal 2025 Adjusted EPS outlook
Fiscal 2025 Adjusted EPS outlook $31.25 to $32.05 $27.44 FY24 FY24 McKesson Ventures Operating Other1 FY25 Performance Actual Outlook See endnotes for details 15 © 2024 McKesson Corporation. All rights reserved.
Slide 16: Fiscal 2025 adjusted outlook
Fiscal 2025 adjusted outlook Consolidated metrics Metric Fiscal 2025 Outlook Fiscal 2024 Actual Earnings per Diluted Share $31.25 to $32.05 $27.44 GAAP Revenues 15% to 17% growth 12% growth Operating Profit 9% to 14% growth 2% decline Corporate Expenses $580 to $640 million $648 million Interest Exp
Slide 17: Fiscal 2025 adjusted outlook: segment metrics
Fiscal 2025 adjusted outlook Segment metrics U.S. Pharmaceutical Prescription Technology Medical-Surgical International Solutions Solutions Revenue 16% to 19% growth 18% to 22% growth 4% to 8% growth 4% to 8% growth Adjusted Operating Profit 8% to 10% growth 12% to 16% growth 6% to 8% growth 6% to 1
Slide 18: Appendix
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Slide 19: Endnotes
Endnotes These notes refer to the financial metrics and/or defined terms presented on: Slide 6 – Consolidated adjusted financial information 1. Non-GAAP measure representing Net income attributable to noncontrolling interests adjusted for the proportionate share of acquisition-related intangibles am
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q4 Fiscal 2024 and Q4 Fiscal 2023 McKESSON CORPORATION Schedule 2 RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (unaudited) (in millions) Three Months Ended March 31, Year Ended March 31, 2024 2023 Change 2024 2023 Change Income from continui
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q4 Fiscal 2024 and Q4 Fiscal 2023 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 March 31, Year Ended March 31, 2024 2023 Change
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q4 Fiscal 2024 and Q4 Fiscal 2023 McKESSON CORPORATION Schedule 2 RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (Continued) (unaudited) (in millions) Three Months Ended March 31, Year Ended March 31, 2024 2023 Change 2024 2023 Change Gross pr
Slide 23: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q4 Fiscal 2024 and Q4 Fiscal 2023 McKESSON CORPORATION Schedule 2 RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (Continued) (unaudited) (in millions) Three Months Ended March 31, Year Ended March 31, 2024 2023 Change 2024 2023 Change Interest
Slide 24: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q4 Fiscal 2024 and Q4 Fiscal 2023 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. (b) Adj
Slide 25: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q4 Fiscal 2024 and Q4 Fiscal 2023 McKESSON CORPORATION Schedule 3 RECONCILIATION OF GAAP SEGMENT OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (unaudited) (in millions) Three Months Ended March 31, 2024 2023 As reported As adjusted Change Foreign Foreign As reporte
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q4 Fiscal 2024 and Q4 Fiscal 2023 McKESSON CORPORATION Schedule 3 RECONCILIATION OF GAAP SEGMENT OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (Continued) (unaudited) (in millions) Year Ended March 31, 2024 2023 As reported As adjusted Change Foreign Foreign As rep
Slide 27: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q4 Fiscal 2024 and Q4 Fiscal 2023 McKESSON CORPORATION Schedule 6 RECONCILIATION OF GAAP CASH FLOW TO FREE CASH FLOW (NON-GAAP) (unaudited) (in millions) Year Ended March 31, 2024 2023 Change GAAP CASH FLOW CATEGORIES Net cash provided by operating activities $ 4,314
Slide 28: Financial Statement Notes
Financial Statement Notes McKESSON CORPORATION 1 of 2 FINANCIAL STATEMENT NOTES 1. Transaction-related expenses and adjustments for the year ended March 31, 2024 includes a pre-tax gain of $78 million ($58 million after-tax) related to fair value remeasurement of the contingent consideration liabili
Slide 29: Financial Statement Notes
Financial Statement Notes FINANCIAL STATEMENT NOTES (continued) 2 of 2 5. Claims and litigation charges, net for the three months and year ended March 31, 2024 includes pre-tax charges of $149 million ($112 million after-tax) related to our estimated liability for opioid-related claims of a nationwi
Slide 30: 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 31: 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 32: 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