Cvs Health Corporation · NYSE:CVS
Cvs Health — Q1 2021 Earnings Presentation
21 slides from Cvs Health's earnings presentation, May 4, 2021
Slide 1: First Quarter 2021 Earnings Conference Call
FIRST QUARTER 2021 Earnings conference call Karen S. Lynch Eva Boratto President & Chief Executive Vice President Executive Officer & Chief Financial Officer May 4, 2021
Slide 2: Cautionary statement concerning forward-looking statements
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-lo
Slide 3: Q1 & Full-Year 2021 highlights
Q1 & Full-Year 2021 highlights Exceeding our expectations in Q1; raising FY Adjusted EPS guidance Generated Showcases $2.04 3.5% $2.9 billion our strategy Q1 adjusted EPS Q1 revenue growth in cash flow from operations Reflects growth across and execution Reflects outperformance all businesses Commit
Slide 4: Advancing our integrated care delivery
Advancing our integrated care delivery meeting the diverse health needs of communities across America >80% Demonstrating Enhancing Expanding increase in visits to our the integrated value of our the consumer experience our innovative, consumer- flagship digital properties y/y unique portfolio of hea
Slide 5: CVS Health continues to lead nation's COVID-19 response
CVS Health continues to lead nation’s COVID-19 response >23M ~6.5M >17M tests people vaccines administered vaccinated by administered thru April; ~9M CVS Health at LTC and tests during Q1 thru April CVS Health 2021 locations thru April ~9% conversion among new customers through COVID-19 testing fill
Slide 6: Q1 2021 financial review
Q1 2021 financial review 6 ©2021 CVS Health and/or one of its affiliates. Confidential and proprietary.
Slide 7: Consolidated results
Q1 RESULTS Consolidated results Delivered strong results with all businesses performing in-line or better than our expectations Interest expense in millions, except per share data Q1 2021 Q1 2020 Change % of $657 million Total revenues $69,097 $66,755 3.5% Adjusted effective Adjusted operating incom
Slide 8: Capital and cash flow allocation
Q1 RESULTS Capital and cash flow allocation First quarter results demonstrate strong cash flow from operations and commitment to meeting leverage target Strong cash generation Continue to prioritize paying down debt $2.9 billion cash flow from operations Repaid >$3 billion of long-term Strong cash f
Slide 9: Health Care Benefits segment
Q1 RESULTS Health Care Benefits segment in millions, except MBR Q1 2021 Q1 2020 Change % Total Revenue growth reflects growth in Total revenues $20,483 $19,198 6.7% Government Services, partially offset by repeal of HIF Adjusted operating income $1,782 $1,491 19.5% Adjusted operating income growth r
Slide 10: Pharmacy Services segment
Q1 RESULTS Pharmacy Services segment Revenue growth reflects growth in Specialty pharmacy, product mix and brand inflation, partially offset by continued price compression and weak cough/cold and flu season in millions Q1 2021 Q1 2020 Change % • Specialty pharmacy revenue growth of 7.2% YoY reflects
Slide 11: Retail / LTC segment
Q1 RESULTS Retail / LTC segment Revenue growth reflects benefit from COVID diagnostic testing and vaccine administration in millions Q1 2021 Q1 2020 Change % and year-over-year headwind from acceleration of prescriptions and Front Store Total revenues $23,274 $22,749 2.3% demand in March 2020 Adjust
Slide 12: Retail / LTC segment
Q1 RESULTS Retail / LTC segment Change vs. Q1 2020 Continued growth in Retail pharmacy script share in a challenging environment Retail pharmacy script share of 26.2%1, 2 Up ~40 bps Growth in prescriptions filled reflects Same store sales3 0.4% COVID-19 vaccinations and continued adoption of patient
Slide 13: 2021 guidance
2021 guidance 13 ©2021 CVS Health and/or one of its affiliates. Confidential and proprietary.
Slide 14: Enterprise outlook
GUIDANCE: FULL-YEAR 2021 Enterprise outlook MAY 4 FEB 16 in billions, except per share data FY21 Guidance2 FY21 Guidance $279.2 to $283.7 $276.1 to $280.6 Guidance raise reflects Total revenues1 performance to date and 4.00% to 5.75% 3.00% to 4.50% momentum across the Enterprise Adjusted operating i
Slide 15: Health Care Benefits outlook
GUIDANCE: FULL-YEAR 2021 Health Care Benefits outlook MAY 4 FEB 16 in billions, except MBR and trend FY21 Guidance FY21 Guidance Total revenues1 $79.4 to $80.7 $79.4 to $80.7 Raising adjusted operating 5.50% to 7.25% 5.50% to 7.25% income to reflect performance to date and our current Adjusted opera
Slide 16: Pharmacy Services outlook
GUIDANCE: FULL-YEAR 2021 Pharmacy Services outlook MAY 4 FEB 16 in billions FY21 Guidance FY21 Guidance Raising total revenues and total pharmacy claims Total revenues $147.9 to $150.4 $144.5 to $147.0 processed to reflect trends in 4.25% to 6.00% 1.75% to 3.50% the business Adjusted operating incom
Slide 17: Retail/LTC outlook
GUIDANCE: FULL-YEAR 2021 Retail/LTC outlook MAY 4 FEB 16 in billions FY21 Guidance FY21 Guidance Outlook for the Retail/LTC segment remains unchanged Total revenues $93.8 to $95.1 $93.8 to $95.1 2.75% to 4.25% 2.75% to 4.25% Tailwinds and headwinds considered include higher Adjusted operating income
Slide 18: Other items
GUIDANCE: FULL-YEAR 2021 Other items MAY 4 FEB 16 in billions, except tax rate FY21 Guidance FY21 Guidance Interest expense ~$2.6 ~$2.6 Capital expenditures $2.7 to $3.0 $2.7 to $3.0 Adjusted effective tax rate ~25.4% ~25% Weighted-average diluted share count ~1,330 ~1,325 Cash flow from operations
Slide 19: Appendix
Appendix 19 ©2021 CVS Health and/or one of its affiliates. Confidential and proprietary.
Slide 20: Restatement of IQVIA Pharmacy Market Share
Restatement of IQVIA Pharmacy Market Share U.S. U.S. Pharmacy Pharmacy Prescription Prescription Market Share Market Share – - Change The restatement by IQVIA is driven by a refinement in methodology accounting for Previously Post scripts reversed (RTS) Reported Restatement Quarter FY2020 market sha
Slide 21: ©2021 CVS Health and/or one of its affiliates. Confidential and proprietary.
21 ©2021 CVS Health and/or one of its affiliates. Confidential and proprietary.