Cvs Health Corporation · NYSE:CVS
Cvs Health — Q1 2022 Earnings Presentation
18 slides from Cvs Health's earnings presentation, May 4, 2022
Slide 1: First Quarter 2022 Earnings conference call
FIRST QUARTER 2022 Earnings conference call May 4, 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 Q1 2022 Adjusted EPS of $2.22 exceeded expectations; Raising FY 2022 guidance for Revenue, Adjusted Operating Income and Adjusted EPS $2.22 11.2% $3.6 billion Q1 adjusted EPS Q1 revenue growth Q1 cash flow from operations Reflects adjusted operating Reflects growth across Commit
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
>6M tests administered in Q1 >8M vaccines administered in Q1 CVS Health continues to lead the nation’s ~41M new customers through COVID-19 testing COVID-19 response and vaccine services since inception ~15% of customers new to CVS Health through COVID-19 testing services chose to fill new prescripti
Slide 6: 2022 Q1 Financial Review
2022 Q1 Financial Review 6 ©2022 CVS Health and/or one of its affiliates.
Slide 7: Consolidated results
FIRST QUARTER 2022 Consolidated results Delivered strong results and exceeded expectations Strong revenue growth in millions, except per share Q1 2022 Q1 2021 Change % of 11.2% vs. prior year amounts Total Revenues $76,826 $69,097 11.2% Interest expense of $586 million Adjusted Operating Income $4,4
Slide 8: Capital and cash flow
FIRST QUARTER 2022 Capital and cash flow Liquidity and capital position remain strong Powerful cash generation Deploying capital to generate shareholder value $3.6 billion cash flow from operations, ~23% higher than prior year Quarterly dividend increase of 10% resulted in $722 million in shareholde
Slide 9: Health Care Benefits segment
FIRST QUARTER 2022 Health Care Benefits segment Sequential membership growth across all product lines; continued progression towards normalized total medical costs in millions, except MBR Q1 2022 Q1 2021 Change % Total revenue growth reflects growth across Total Revenues $23,109 $20,483 12.8% all pr
Slide 10: Pharmacy Services segment
FIRST QUARTER 2022 Pharmacy Services segment Results demonstrate the consistent value and savings that we deliver to our customers Total revenue growth reflects increased pharmacy claims volume, growth in specialty pharmacy and brand inflation, partially offset by continued client price improvements
Slide 11: Retail / LTC segment
FIRST QUARTER 2022 Retail / LTC segment Retail continued to serve as a community health destination for millions of Americans Total revenue growth reflects increased prescription and front store volume, including the sale of COVID-19 OTC test kits and the impact of a weaker cough, cold and flu seaso
Slide 12: Retail pharmacy
FIRST QUARTER 2022 Retail pharmacy Significant year-over-year growth in a dynamic environment Change vs. Q1 2021 Continued growth in Retail pharmacy script 1,2 Retail Pharmacy Script Share of 26.7% Up ~49 bps share Same Store Sales3 10.7% Growth in prescriptions filled2 reflects increased utilizatio
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 and adjusted EPS in billions, except per share amounts Q1:22 Earnings Call Q4:21 Earnings Call May 4, 2022 Feb 9, 2022 Revenue growth of 5 – 6% Total Revenues $305 to $310 $304 to $309 5 – 6% 4 – 6%
Slide 15: Health Care Benefits outlook
FULL-YEAR 2022 GUIDANCE Health Care Benefits outlook Raising guidance for revenue, adjusted operating income and membership. Lowering guidance for medical benefit ratio in billions, except MBR and Q1:22 Earnings Call Q4:21 Earnings Call membership May 4, 2022 Feb 9, 2022 Revenue growth of 9 – 11% To
Slide 16: Pharmacy Services outlook
FULL-YEAR 2022 GUIDANCE Pharmacy Services outlook Guidance unchanged since Q4 2021 Earnings Call in billions Q1:22 Earnings Call Q4:21 Earnings Call May 4, 2022 Feb 9, 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 $7.31 to
Slide 17: Retail/LTC outlook
FULL-YEAR 2022 GUIDANCE Retail/LTC outlook Guidance unchanged since Q4 2021 Earnings Call in billions Q1:22 Earnings Call Q4:21 Earnings Call May 4, 2022 Feb 9, 2022 Expected Revenue of (1) – 1% Total Revenues $99.0 to $100.7 $99.0 to $100.7 Reflects administration of (1) – 1% (1) – 1% fourth COVID-
Slide 18: Other items
FULL-YEAR 2022 GUIDANCE Other items in billions, except tax rate. Cost reduction Q1:22 Earnings Call Q4:21 Earnings Call initiatives in millions May 4, 2022 Feb 9, 2022 Share repurchase Interest Expense ~$2.3 ~$2.3 program to offset dilution Capital Expenditures $2.8 to $3.0 $2.8 to $3.0 Adjusted Ef