Cvs Health Corporation · NYSE:CVS
Cvs Health — Investor Day (June 2019)
23 slides from Cvs Health's investor day presentation, Jun 4, 2019
Slide 1: Consumer Innovation Driving Profitable Growth
Consumer Innovation Driving Profitable Growth Kevin Hourican Executive Vice President & President, CVS Pharmacy
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding 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 involve risks and uncertainties. Actual
Slide 3: Agenda
Agenda Health of the business Retail growth strategy 3
Slide 4: Leadership in retail prescription growth driving increased share
Leadership in retail prescription growth driving increased share CVS Pharmacy Retail Share1,2 Growth* CVS Pharmacy Retail Share1,2* 12% 27% CVS Industry 26.3% 9.9% 26.2% 10% 26% 2019 8% 7.1% 25% 2018 6% 24.3% 24% 4% 3.6% 2.9% 2017 23% 2% 0% 22% 2018 Q1 2019 Mar Jun Sep Dec *90-day prescriptions coun
Slide 5: Prescription growth is 3x the industry
Prescription growth is 3x the industry Clinical Services and Innovative Networks and Initiatives Real Estate Industry leading adherence programs: Strong performance in Medicare Part D plans Saving Patients Money, ScriptPath, Multi-Dose Continued strength of real estate program Packaging ~55% of Q1 2
Slide 6: Driving profitable growth through health and beauty innovation
Driving profitable growth through health and beauty innovation Q1 2019 Front Store Revenue Health, Beauty, and Personal Growth by Category Care Revenue Growth3 Health 5.6% 4.6% 4.0% Beauty & Personal Care 3.2% 2.1% 1.8% Consumables & 2018 Q1 2019 -1.8% General Merchandise CVS Multi-Outlet Front stor
Slide 7: Topline strength offset by significant industry headwinds
Topline strength offset by significant industry headwinds Pharmacy Reduced benefits Shift of retail to reimbursement from generics digital channels pressure 7
Slide 8: Agenda
Agenda Health of the business Retail growth strategy 8
Slide 9: Retail strategy will help transform health care experience
Retail strategy will help transform health care experience Compelling place Investing in Customer- Differentiated to shop omnichannel focused service innovation experience Productivity improvements enable lower cost basis and increased profitability 9
Slide 10: CVS Pharmacy is uniquely positioned to win
CVS Pharmacy is uniquely positioned to win 1 2 3 4 Grow revenue Improve Change to value- Transform health faster than the productivity to fund based care experience industry future growth contracting Innovative clinical Automation and Align incentives and take Become the new front programs and front
Slide 11: Innovation driving front store growth
1. REVENUE GROWTH Innovation driving front store growth • Store Formats thousands of remodels, tailored assortments • Health and Wellness sick care and self care, hundreds of new items • Beauty 50 store remodels in 2019, new brands and services • Personalized Engagement ExtraCare® powered by machine
Slide 12: Innovation driving pharmacy growth
11. R E V E N U E G R O W T H Innovation driving pharmacy growth • Clinical Services Health data and advanced analytics driving personalized engagement • Saving Patients Money Proprietary Rx Savings Finder • ScriptPathTM Proprietary prescription label and medication dosing schedule • Multi-Dose Pack
Slide 13: Advancing convenience via omnichannel touchpoints across 9,900+ retail locations
1. REVENUE GROWTH Advancing convenience via omnichannel touchpoints to enhance the reach of our 9,900+ retail locations MinuteClinic® CVS Pharmacy Walk-in Clinics Saving Patients Money MinuteClinic® CVS Pharmacy Telehealth Mobile App CVS Pharmacy CVS Pharmacy Delivery Rx + Front Rx Text Messages CVS
Slide 14: Enterprise modernization will enable profitable growth
2. PRODUCTIVITY IMPROVEMENT Enterprise modernization will enable profitable growth Pharmacy Real Estate Pharmacy Front Store Inventory Optimization Fulfillment Operating Model Efficiency 14
Slide 15: CVS Pharmacy will lead change in pharmacy contracting to include value-based collaborations
33. V A L U E - B A S E D C O N T R A C T I N G CVS Pharmacy will lead change in pharmacy contracting to include more value-based collaborations Our growing, industry …and best-in-class …position us to partner in leading reach… adherence rates… value-based contracts • Value tied to outcomes 26% 82%
Slide 16: Transforming the consumer health experience starts with HealthHUB
44. T R A N S F O R M A T I O N Transforming the consumer health experience starts with HealthHUB® Complex chronic Risk Common chronic stratification Healthy Enables Personalized engagement • Coordinate care Impactful • Be local interventions • Integrate member context • Influence meaningful moments
Slide 17: HealthHUB designed to meet consumer needs – from sick care to self care
44. T R A N S F O R M A T I O N HealthHUB® designed to meet consumer needs – from sick care to self care • New Front Store Products • New Health Services • Advanced Pharmacy Care 17
Slide 18: HealthHUBs are improving the customer experience
4 . T R A N S F O R M AT I O N HealthHUBs® are improving the customer experience HealthHUBs® vs. Chain5 Customer Feedback:6 Products and Services HUBs Chain 84.9% “Great new renovations and many 79.5% 81.1% new brands of product 75.3% 76.3% – especially vitamins.” – Store #285 66.4% “Excited about d
Slide 19: HealthHUB expansion plans
4 . T R A N S F O R M AT I O N HealthHUB® expansion plans Four Metropolitan Areas in 2019 Houston, Philadelphia / Southern New Jersey, Atlanta, Tampa Nationwide coverage by end of 2021 ~1,500 retail locations 19
Slide 20: Improving health in the community
Improving health in the community Nurse practitioner Diabetes intervention6,7 • Abdominal pain • A1C > 12% • Not testing blood sugar • Multiple gaps in medication therapy • Severe retinopathy 20
Slide 21: Improving health in the community
Improving health in the community Care concierge Hypertension intervention6,7 • Concierge engages customer in the self care aisle • Conversation results in a BP reading via onsite machine • 200/120 BP results in immediate Minute Clinic visit • Gaps in care closed and prescriptions dispensed • Linkag
Slide 22: Retail strategy to deliver profitable growth
K E Y TA K E AW AY S Retail strategy to deliver profitable growth Lead industry in consumer-based innovation that drives outsized revenue growth in pharmacy and front store Increase automation to streamline work flows and enable differentiated customer service experience Collaborate with payors to a
Slide 23: Endnotes
Endnotes 1. CVS Health Retail Prescription Growth excluding LTC 2. IQVIA (data reflects Jan 2017 IQVIA methodology change) 3. Multi-Outlet growth based on dollar volume from all retail outlets in the Food, Drug, Mass, Dollar, Club, and Military channels that provide POS data to Information Resource