McKesson Corporation · NYSE:MCK
McKesson — Q4 FY2016 Earnings Presentation
16 slides from McKesson's earnings presentation, May 4, 2016
Slide 1: Q4 Fiscal 2016 Earnings Call Supplemental Slides
Q4 Fiscal 2016 Earnings Call May 4, 2016 Supplemental Slides
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the information in this presentation is not historical in nature and may constitute forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the
Slide 3: Consolidated Gross Profit Summary
Consolidated Gross Profit Summary Q4 and Fiscal 2016 Results Foreign YoY As Adjusted CAP Baseline Change Reported Earnings Exchange Charges Non-GAAP1 Constant Q4 Fiscal 2016 GAAP Non-GAAP Effect Currency2 Consolidated Gross Profit $2,852 $2,883 +$26 +$46 $2,955 --% (in millions USD) Foreign YoY As A
Slide 4: Consolidated Operating Expense Summary
Consolidated Operating Expense Summary Q4 and Fiscal 2016 Results Foreign YoY As Adjusted CAP Baseline Change Reported Earnings Exchange Charges Non-GAAP1 Constant Q4 Fiscal 2016 GAAP Non-GAAP Effect Currency2 Consolidated Operating Expense $2,112 $1,986 -$203 +$38 $1,821 -4% (in millions USD) Forei
Slide 5: Consolidated Earnings Summary
Consolidated Earnings Summary Q4 and Fiscal 2016 Results YoY As Adjusted CAP Baseline YoY Change Reported Earnings Charges Non-GAAP1 Change2 Constant GAAP Non-GAAP Q4 Fiscal 2016 Currency3 Earnings per diluted share from continuing $1.97 $2.44 +$0.74 $3.18 +8% +9% operations4 Business YoY As Adjuste
Slide 6: Distribution Solutions Gross Profit Summary
Distribution Solutions Gross Profit Summary Q4 and Fiscal 2016 Results Foreign YoY As Adjusted CAP Baseline Change Reported Earnings Exchange Charges Non-GAAP1 Constant Q4 Fiscal 2016 GAAP Non-GAAP Effect Currency2 Distribution Solutions Gross Profit $2,486 $2,516 +$5 +$48 $2,569 -1% (in millions US
Slide 7: Distribution Solutions Operating Expense Summary
Distribution Solutions Operating Expense Summary Q4 and Fiscal 2016 Results Foreign YoY As Adjusted CAP Baseline Change Reported Earnings Exchange Charges Non-GAAP1 Constant Q4 Fiscal 2016 GAAP Non-GAAP Effect Currency2 Distribution Solutions Operating Expense $1,686 $1,568 -$156 +$37 $1,449 -5% (in
Slide 8: Distribution Solutions Operating Profit Summary
Distribution Solutions Operating Profit Summary Q4 and Fiscal 2016 Results and Fiscal 2017 Outlook Foreign YoY As Adjusted CAP Baseline Change Reported Earnings Exchange Charges Non-GAAP1 Constant Q4 Fiscal 2016 GAAP Non-GAAP Effect Currency2 Distribution Solutions Operating Profit $811 $961 +$161 +
Slide 9: Technology Solutions Gross Profit Summary
Technology Solutions Gross Profit Summary Q4 and Fiscal 2016 Results Foreign YoY As Adjusted CAP Baseline Change Reported Earnings Exchange Charges Non-GAAP1 Constant Q4 Fiscal 2016 GAAP Non-GAAP Effect Currency2 Technology Solutions Gross Profit $366 $367 +$21 -$2 $386 +1% (in millions USD) Foreign
Slide 10: Technology Solutions Operating Expense Summary
Technology Solutions Operating Expense Summary Q4 and Fiscal 2016 Results Foreign YoY As Adjusted CAP Baseline Change Reported Earnings Exchange Charges Non-GAAP1 Constant Q4 Fiscal 2016 GAAP Non-GAAP Effect Currency2 Technology Solutions Operating Expense $273 $265 -$30 +$1 $236 -2% (in millions US
Slide 11: Technology Solutions Operating Profit Summary
Technology Solutions Operating Profit Summary Q4 and Fiscal 2016 Results and Fiscal 2017 Outlook Foreign YoY As Adjusted CAP Baseline Change Reported Earnings Exchange Charges Non-GAAP1 Constant Q4 Fiscal 2016 GAAP Non-GAAP Effect Currency2 Technology Solutions Operating Profit $93 $102 +$51 -$3 $15
Slide 12: Fiscal 2017 Earnings Outlook
Fiscal 2017 Earnings Outlook FY16 As Adjusted Business Baseline CAP FY17 Outlook2 YoY Reported Earnings Sale Non- Charges GAAP1 Excluding CAP charges Change3 GAAP Non-GAAP Gains Earnings per diluted share from continuing $9.84 $12.08 +$0.73 -$0.29 $12.52 $13.30 – $13.80 6 – 10% operations4 1Baseline
Slide 13: Fiscal 2016 and Fiscal 2017 Cost Alignment Plan Charges by Segment
Fiscal 2016 and Fiscal 2017 Cost Alignment Plan Charges by Segment
Slide 14: Cost Alignment Plan
Cost Alignment Plan Q4 and Full Year Fiscal 2016 Charges Distribution Technology (In millions USD) Total Solutions Solutions Corporate Gross Profit $26 $5 $21 - Operating $203 $156 $30 $17 Expense Total Expected $229 $161 $51 $17 CAP Charges1 1As outlined in Q4 Fiscal 2016 earnings press release tab
Slide 15: Cost Alignment Plan
Cost Alignment Plan Fiscal 2017 Expected Charges Distribution Technology (In millions USD) Total Solutions Solutions Corporate Total Expected $40 – $50 ~$30 – $40 ~$5 ~$5 CAP Charges1 1As outlined in Q4 Fiscal 2016 earnings press release dated 5/4/2016. FY17 expected CAP charges will be primarily re
Slide 16: McKesson Corporation Confidential and Proprietary
16 5/4/2016 McKesson Corporation Confidential and Proprietary