Oak Street Health — Merger or Acquisition (February 2023)
14 slides from Oak Street Health's merger presentation, Feb 8, 2023
Slide 1: CVS Health and Oak St. Health Creating the Premier Medicare Value-Based Care Platform
CVS Health and Oak St. Health Creating the Premier Medicare Value-Based Care Platform February 8, 2023
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 ("CVS Health") or Oak Street Hea
Slide 3: Cautionary statement concerning forward-looking statements (continued)
Cautionary statement concerning forward-looking statements (continued) You are cautioned not to place undue reliance on CVS Health's or Oak Street Health's forward-looking statements. CVS Health's and Oak Street Health's respective forward-looking statements are and will be based upon each company's
Slide 4: Our Health Care Delivery Vision
Our Health Care Delivery Vision Our vision is to deliver an industry-leading health care experience for consumers and providers through a risk-enabled, vertically-aligned, all-payor value-based care delivery platform Achieving our vision requires the right set of capabilities to serve a broader cust
Slide 5: Key Transaction Terms
Key Transaction Terms Purchase Price Acquiring 100% of Oak Street Health for $39 per share in cash ~$10.6 billion transaction value, including net debt Organizational Structure Mike Pykosz will continue to lead Oak Street Health Oak Street Health will operate as a payor-agnostic business within CVS
Slide 6: Oak Street Health Is A Leading Medicare Value-Based Primary Care Platform
Oak Street Health Is A Leading Medicare Value-Based Primary Care Platform PROVEN ABILITY TO IMPROVE OUTCOMES and EXPERIENCES Over 50% reduction in hospital admissions 42% reduction in 30-day readmission rate 43% reduction in depressive symptoms 5-star HEDIS level performance(1) Net Promoter Score of
Slide 7: CVS Health and Oak Street Health combination has strong strategic merit and alignment
CVS Health and Oak Street Health combination has strong strategic merit and alignment Oak Street Health is a leading senior focused, value-based, primary care asset Expands Oak Street touchpoints in the community, increasing access, adherence and ability to manage risk Strong cultural alignment and
Slide 8: Clear path to profitability, robust clinic growth and meaningful synergies
Clear path to profitability, robust clinic growth and meaningful synergies drive double-digit return on invested capital over time Path to profitability evidenced by highly consistent performance across geographies and cohorts(1,2) Platform Contribution ($M) $8 $6 $4 $2 $0 ($2) 0 1 2 3 4 5 6+ Clinic
Slide 9: Capability-focused capital deployment centered on value-based care
Capability-focused capital deployment centered on value-based care to accelerate our health delivery strategy Primary Care Services Consumer-centric, next-generation clinics serving as focal point of care Home Health Home solutions to extend reach and performance of primary care Physician Enablement
Slide 10: The premier Medicare Value-Based Care platform making healthier happen together
The premier Medicare Value-Based Care platform making healthier happen together ~159K at-risk patients ~600 care providers 169 medical centers with significant opportunity to scale Advanced Primary Care Oak St Health Foundational Businesses CVS caremark CVS pharmacy aetna Home Health/Provider Enable
Slide 11: Building our Health Care Delivery business and enhancing our sustainable long-term growth rate
Building our Health Care Delivery business and enhancing our sustainable long-term growth rate Foundational Business Growth Health Care Delivery Long-Term Adjusted Operating Income Growth % ~7-8% ~2% Signify Health and Oak Street Health are projected to deliver a meaningful portion of our targeted ~
Slide 12: Our long-term growth trajectory
Our long-term growth trajectory Sustainable low double-digit adjusted EPS growth with attractive dividend growth CVS Health Adjusted EPS targets 2022 $8.25 (Adjusted Baseline) 2023 $8.70 to $8.90 2024 ~$9.00 2025 ~$10.00 + upside based on successful resolution of Medicare Stars Ratings mitigation ef
Slide 13: Additional Information and Where to Find It
Additional Information and Where to Find It This communication is being made in respect to the proposed transaction involving CVS Health and Oak Street Health. A meeting of the stockholders of Oak Street Health will be announced as promptly as practicable to seek stockholder approval in connection w
Slide 14: For additional questions, please contact
For additional questions, please contact: TOM COWHEY Senior Vice President, Capital Markets [email protected] LARRY MCGRATH Senior Vice President, Business Development Senior Vice President, Business Development and Investor Relations 1-800-201-0938 [email protected] nd Investor Re
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