Cencora, Inc. · NYSE:COR
Cencora — AmerisourceBergen — 34th Annual J.P. Morgan Healthcare Conference (January 2016)
25 slides from Cencora's conference presentation, Jan 12, 2016
Slide 1: 34th Annual J.P. Morgan Healthcare Conference
34th Annual J.P. Morgan Healthcare Conference Steve Collis, President & CEO Tim Guttman, EVP & CFO January 12, 2016
Slide 2: Steve Collis, President & CEO
Steve Collis President & CEO
Slide 3: 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 4: Who is AmerisourceBergen? A Leader in Global Healthcare Services
Who is AmerisourceBergen? A Leader in Global Healthcare Services $135 Billion in annual revenue 18,000 associates Daily deliveries to 50,000 healthcare facilities Over 140 locations across more than 50 countries worldwide 4
Slide 5: Strong Organic US Industry Growth
US Pharmaceutical Market $ Billions $600 14.0% $550 12.0% $500 10.0% $450 8.0% Sales 6.0% $400 4.0% Growth % $350 2.0% $300 0.0% 2014 2015 2016 2017 2018 2019 STRONG ORGANIC US INDUSTRY GROWTH 5 Source: IMS Health 2015
Slide 6: Strong US Pharmaceutical Market Growth Drivers
Strong US Pharmaceutical Market Growth Drivers Demographics Expansion of coverage New brand drug launches Focus on value ADHERENCE IMPROVES PATIENT OUTCOMES 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: AmerisourceBergen Drug Corporation
Well Positioned to Seize Opportunities AmerisourceBergen Drug Corporation Prime Vendor Strong Cash Core Business Model Generation Driven by solid Diverse customer Operationally and organic growth base capital efficient FY2015 revenue of Tens of thousands of $113.5 Billion* in US daily deliveries OPE
Slide 9: Investing in Our Core Business: PharMEDium
Investing in Our Core Business PharMEDium Value-Added Partner High Quality Opportunity to Hospitals Operating efficiency in Sterile-to-sterile CSPs Increase ABC a cost-conscious in a ready to use form penetration with environment existing customers Compound FDA- Minimize waste approved or allowable
Slide 10: Investing in Our Core Business: $5.5B Addressable Market
Investing in Our Core Business $5.5B Addressable Market Current Share CSP Outsourcing Opportunity OPPORTUNITY REGULATORY CHANGES DRIVING CONTINUED FLIGHT TO QUALITY 10
Slide 11: Well Positioned to Seize Opportunities: AmerisourceBergen Specialty Group
Well Positioned to Seize Opportunities AmerisourceBergen Specialty Group Differentiated Drives Patient Market Leader Services Access FY2015 revenue of Unique portfolio of Collaborates with $24.4 Billion* businesses biotech manufacturers and specialty Grows faster than the Extensive footprint in phys
Slide 12: Well Positioned to Seize Opportunities: Global Manufacturer Services
Well Positioned to Seize Opportunities Global Manufacturer Services World Courier Consulting Services Premier clinical trial Drives patient access logistics provider & adherence World class white- Enhances regulatory glove service and compliance efforts EXPERTISE SUPPORTS ENTIRE PRODUCT LIFE CYCLE 1
Slide 13: Well Positioned to Seize Opportunities: MWI Veterinary Supply
Well Positioned to Seize Opportunities MWI Veterinary Supply Platform for Future Animal Health Market Growth $23 billion global market Stellar reputation with customers Cash market for services Serves companion and Fragmented marketplace production animal markets Demand creating salesforce PREMIER A
Slide 14: How Will We Continue to Drive Performance?
How Will We Continue to Drive Performance? Knowledge, Reach and Partnership Unsurpassed expertise in pharmaceutical distribution, commercialization, and consulting Global reach in sourcing, distribution, and manufacturer services Innovative collaboration with manufacturers and providers improves
Slide 15: Financial Review: Tim Guttman, EVP & CFO
Financial Review Tim Guttman EVP & CFO 15
Slide 16: Revenue & Adjusted Operating Income
Revenue & Adjusted Operating Income Revenue (billions) $136 $120 $79 $78 $88 FY11 FY12 FY13 FY14 FY15 Adjusted Operating Income (billions) $1.9 $1.6 $1.2 $1.3 $1.4 FY11 FY12 FY13 FY14 FY15 16 See tables at end of presentation for GAAP to non-GAAP reconciliation
Slide 17: Adjusted Diluted EPS
Adjusted Diluted EPS $4.96 $3.97 $3.08 $3.21 $2.67 $2.21 2010 2011 2012 2013 2014 2015 17 See table at end of presentation for GAAP to non-GAAP reconciliation
Slide 18: Cash Flow Generation
Cash Flow Generation Key Drivers Manage customer credit Efficient inventory turns Grow generic volumes Align management incentives LEGACY OF DELIVERING FREE CASH FLOW ABOVE NET INCOME 18
Slide 19: Capital Deployment Over Last Five Fiscal Years
Capital Deployment Over Last Five Fiscal Years EXCLUDING Warrant Hedging INCLUDING Warrant Hedging $4.2B $6.5B Returned to Returned to Shareholders Shareholders Regular Share Share Repurchases Dividends Repurchases* Dividends $3.3B $0.9B $5.6B $0.9B 19 *Share repurchases includes cost of warrant hed
Slide 20: Capital Deployment Over Last Five Fiscal Years: $4.5B Invested
Capital Deployment Over Last Five Fiscal Years $4.5B Invested* Capital Expenditures Acquisitions $1.0B $3.5B *Does not include PharMEDium acquisition completed FQ1 2016. 20 Acquisitions are net of cash acquired.
Slide 21: Who is AmerisourceBergen? A Leader in Global Healthcare Services
Who is AmerisourceBergen? A Leader in Global Healthcare Services Good industry Great company Legacy of excellent performance Demonstrated financial stewardship Outstanding shareholder value creation 21
Slide 22: AmerisourceBergen. Where knowledge, reach and partnership shape healthcare delivery.
AmerisourceBergen. Where knowledge, reach and partnership shape healthcare delivery.
Slide 23: Adjusted Operating Income
Adjusted Operating Income Fiscal Years Ended September 30, 2010 through September 30, 2015 ($ 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 24: 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) (1) W
Slide 25: AmerisourceBergen
N) AmerisourceBergen Where knowledge, reach and partnership shape healthcare delivery.
AmerisourceBergen — 34th Annual J.P. Morgan Healthcare Conference (January 2016) on 6ix