Mckesson Corporation · NYSE:MCK
Mckesson — Q2 FY2017 Earnings Presentation
18 slides from Mckesson's earnings presentation, Oct 27, 2016
Slide 1: Q2 Fiscal 2017 Earnings Call Supplemental Slides
Q2 Fiscal 2017 Earnings Call October 27, 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 Q2 and Year-to-Date (YTD) Fiscal 2017 Results CAP Foreign Adj. YoY As Adjusted Charges/ Exchange Earnings Change Reported Earnings GAAP Non-GAAP Credits Effect ex Items Constant Q2 Fiscal 2017 Non-GAAP1 Currency2 Consolidated Gross Profit $2,756 $2,715 -$2 +$54 $2,7
Slide 4: Consolidated Operating Expense
Consolidated Operating Expense Summary Q2 and YTD Fiscal 2017 Results EIS Adj. YoY As Adjusted CAP Foreign Goodwill Earnings Change Reported Earnings Charges/ Exchange Q2 Fiscal Impairment ex Items Constant GAAP Non-GAAP Credits Effect Non-GAAP1 Currency2 2017 Consolidated Operating Expense $2,176 $
Slide 5: Consolidated Earnings
Consolidated Earnings Summary Q2 and YTD Fiscal 2017 Results CAP EIS Adj. As Adjusted Charges/ Goodwill Earnings ex Reported Earnings GAAP Non-GAAP Credits Impairment Items Q2 Fiscal 2017 Non-GAAP1 Earnings per diluted share from continuing operations2 $1.35 $1.72 -$0.02 +$1.24 $2.94 CAP EIS Adj. As
Slide 6: Distribution Solutions Gross Profit
Distribution Solutions Gross Profit Summary Q2 and YTD Fiscal 2017 Results CAP Foreign Adj. YoY As Adjusted Charges/ Exchange Earnings Change Reported Earnings GAAP Non-GAAP Credits Effect ex Items Constant Q2 Fiscal 2017 Non-GAAP1 Currency2 Distribution Solutions Gross Profit $2,396 $2,354 -- +$54
Slide 7: Distribution Solutions Operating Expense
Distribution Solutions Operating Expense Summary Q2 and YTD Fiscal 2017 Results CAP Foreign Adj. YoY As Adjusted Charges/ Exchange Earnings Change Reported Earnings GAAP Non-GAAP Credits Effect ex Items Constant Q2 Fiscal 2017 Non-GAAP1 Currency2 Distribution Solutions Operating Expense $1,557 $1,43
Slide 8: Distribution Solutions Operating Profit and Fiscal FY17 Outlook
Distribution Solutions Operating Profit Summary Q2 and YTD Fiscal 2017 Results and Fiscal FY17 Outlook Adj. YoY As Adjusted CAP Foreign Earnings ex Change Reported Earnings Charges/ Exchange Items Constant GAAP Non-GAAP Credits Effect Q2 Fiscal 2017 Non-GAAP1 Currency2 Distribution Solutions Operati
Slide 9: Technology Solutions Gross Profit
Technology Solutions Gross Profit Summary Q2 and YTD Fiscal 2017 Results CAP Foreign Adj. YoY As Adjusted Charges/ Exchange Earnings Change Reported Earnings GAAP Non-GAAP Credits Effect ex Items Constant Q2 Fiscal 2017 Non-GAAP1 Currency2 Technology Solutions Gross Profit $360 $361 -$2 -- $359 -7%
Slide 10: Technology Solutions Operating Expense
Technology Solutions Operating Expense Summary Q2 and YTD Fiscal 2017 Results Adj. YoY As Adjusted CAP EIS Foreign Earnings Change Reported Earnings Charges/ Goodwill Exchange ex Items Constant GAAP Non-GAAP Credits Impairment Effect Q2 Fiscal 2017 Non-GAAP1 Currency2 Technology Solutions Operating
Slide 11: Technology Solutions Operating Profit and Fiscal 2017 Outlook
Technology Solutions Operating Profit Summary Q2 and YTD Fiscal 2017 Results and Fiscal 2017 Outlook Adj. YoY As Adjusted CAP EIS Foreign Earnings Change Reported Earnings Charges/ Goodwill Exchange ex Items Constant Q2 Fiscal 2017 GAAP Non-GAAP Credits Impairment Effect Non-GAAP1 Currency2 Technolo
Slide 12: Fiscal 2017 Earnings Outlook
Fiscal 2017 Earnings Outlook Amortization LIFO Acquisition Claim and of Acquisition Inventory- Adjusted Expenses Litigation GAAP Related Related Earnings and Related Reserve Intangible Charges/ Non-GAAP Adjustments Credits Assets Credits Earnings per diluted share $8.95 – +$1.25 – +$0.50 – +$0.00 –
Slide 13: Fiscal 2017 Cost Alignment Plan Charges by Segment
Fiscal 2017 Cost Alignment Plan Charges by Segment
Slide 14: Cost Alignment Plan (CAP)
Cost Alignment Plan (CAP) Q2 and YTD Actuals and Full-Year Fiscal 2017 Expected Charges Q2 Fiscal 2017 Distribution Technology (In millions USD) Solutions Solutions Corporate Total Gross Profit -- -$2 -- -$2 Operating Expense -$3 -$3 -$2 -$8 Total CAP Charges/Credits -$3 -$5 -$2 -$10 YTD Fiscal 2017
Slide 15: EPS Walk
EPS Walk Adjusted CAP Charges/ EIS Goodwill Adj. Earnings EPS GAAP Earnings EPS Credits Impairment ex Items Non-GAAP Non-GAAP1 Q1 $2.88 $3.50 +$0.02 -- $3.52 Q2 $1.35 $1.72 -$0.02 +$1.24 $2.94 +$0.06 – Q3 – Q4 $4.73 – $5.58 $5.80 – $6.32 -- $5.89 – $6.39 +$0.08 $11.02 – +$0.06 – $12.35 – Full Year $
Slide 16: 10/27/2016 McKesson Corporation Confidential and Proprietary
16 10/27/2016 McKesson Corporation Confidential and Proprietary
Slide 17: We Expect $12.35 To $12.85 Per Diluted Share In FY17
We Expect $12.35 To $12.85 Per Diluted Share In FY17, Which Excludes Approximately $1.31 To $1.33 In Charges To Adjusted Earnings Related To A Goodwill Impairment And The Cost Alignment Plan The Fiscal 2017 outlook is based on the following key assumptions and is also subject to the Risk Factors out
Slide 18: We Expect $12.35 To $12.85 Per Diluted Share In FY17 (continued)
We Expect $12.35 To $12.85 Per Diluted Share In FY17, Which Excludes Approximately $1.31 To $1.33 In Charges To Adjusted Earnings Related To A Goodwill Impairment And The Cost Alignment Plan (continued) The Fiscal 2017 outlook is based on the following key assumptions and is also subject to the Risk