McKesson Corporation · NYSE:MCK
McKesson — Investor Day (June 2013)
103 slides from McKesson's investor day presentation, Jun 26, 2013
Slide 1: McKesson Corporation 2013 Investor Day
McKesson Corporation 2013 Investor Day June 26, 2013
Slide 2: Erin Lampert, Senior Vice President, Investor Relations
Erin Lampert Senior Vice President, Investor Relations
Slide 3: 2013 Investor Day Agenda
2013 Investor Day Agenda • Erin Lampert - Senior Vice President, Investor Relations • John Hammergren - Chairman, President and Chief Executive Officer • Paul Julian - Executive Vice President, MDS Group President • Mark Walchirk - President, U.S. Pharmaceutical • Nick Loporcaro - President, McKesso
Slide 4: 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 5: Welcome
Welcome John Hammergren Chairman, President and Chief Executive Officer McKesson Corporation
Slide 6: Strong, Experienced Leadership Team
Strong, Experienced Leadership Team EVP and Group President, McKesson Distribution Solutions Paul Julian Joined McKesson in 1996; formerly President, U.S. Pharmaceutical and President, McKesson Medical-Surgical President, U.S. Pharmaceutical Mark Walchirk Joined McKesson in 2001; formerly President,
Slide 7: McKesson
MCKESSON
Slide 8: McKesson Distribution Solutions
McKesson Distribution Solutions Paul Julian Executive Vice President, Group President
Slide 9: Profiles Of McKesson Distribution Solutions – Business Units
Profiles Of McKesson Distribution Solutions – Business Units 2013 Most Admired Companies: Achieved Highest Rating Amongst U.S. Health Care Wholesalers $119B in Revenues and $2.5B in Adjusted Operating Profit U.S. Pharmaceutical Specialty Health Medical-Surgical • Distribution • Provider Sales & Oper
Slide 10: FY13 Milestones
FY13 Milestones Global Sourcing creates purchasing power and operational efficiencies, adding value for our stakeholders U.S. Pharmaceutical Canada • Generated strong operating cash flow • Generated more than 50% growth in operating cash flow • Expanded Health Mart from 2,941 to 3,095 stores • Achie
Slide 11: Operational Excellence
Operational Excellence McKesson has been at the forefront of distribution excellence by delivering consistently and reliably U.S. Pharmaceutical Canada Order Accuracy 99.98% Order Accuracy 99.97% Inventory Accuracy 99.99% Warehouse picking errors of 0.023% Six Sigma process improvement generated ove
Slide 12: Sourcing Excellence
Sourcing Excellence ENGLAND GERMANY CANADA POLAND IRELAND HUNGARY SPAIN SLOVENIA USA ITALY MALTA ISRAEL CHINA SOUTH KOREA BERMUDA INDIA TAIWAN BRITISH VIRGIN HONG ISLANDS KONG PHILIPPINES THAILAND MALAYSIA Europe India China ENGLAND GERMANY POLAND IRELAND HUNGARY SOUTH SPAIN KOREA SLOVENIA ITALY TAI
Slide 13: McKesson Is A Valuable Partner To Manufacturers
McKesson Is A Valuable Partner To Manufacturers Reach Supply Breadth of Chain Manufacturer Services Benefits Scale
Slide 14: Experienced Management Team
Experienced Management Team Paul C. Julian Executive Vice President, Group President McKesson Corporation (17 years) Mark Walchirk Nick Loporcaro Marc Owen President, U.S. Pharmaceutical President, McKesson Canada President, McKesson Specialty Health (12 years) (10 years) (11 years) Saul Factor Stan
Slide 15: U.S. Pharmaceutical
U.S. Pharmaceutical Mark Walchirk President, U.S. Pharmaceutical
Slide 16: Pharmaceutical Industry Landscape
Pharmaceutical Industry Landscape Low single-digit growth in the near future Sales ($ Billions) % Change 400 10% Upward Trends 350 8% • Aging population/ 300 prescription demand 6% • Specialty growth 250 4% • Manufacturer support 200 • Drug pipeline improvement 2% 150 0% Downward Pressures 100 • Gen
Slide 17: U.S. Pharmaceutical Market Overview
U.S. Pharmaceutical Market Overview $251 $48 $77 $247 $235 $55 $32 $224 2007 2011 2013 2017 2007 2011 2013 2017 Brand Sales ($ Billions) Generic Sales ($ Billions) Note: This information is an estimate derived from the use of information under license from the following IMS Health information servic
Slide 18: Brand Sales at Risk: Generics Launch Opportunity
Generics Launch Opportunity 40 $62B $73B Brand Sales at Risk (US $ Billions) 34.5 35 30 28.4 25 21.0 20.9 20 19.0 17.7 16.0 15 13.2 13.0 10.7 10 8.7 5 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Note: This information is an estimate derived from the use of information under license from
Slide 19: U.S. Pharma Has A Broad Value Proposition
U.S. Pharma Has A Broad #1 Market Share Value Proposition Independent & Small Chain National Chain Pharmacy Pharmacy • Re-Distribution Center • Health Mart Franchise • Central Fill • OneStop Generics • OneStop Generics • Managed Care Contracting • Six Sigma • Automation • Automation • Pharmacy & Poi
Slide 20: A Valuable Generics Channel Partner With Global Scale
McKesson: A Valuable Generics Channel Partner With Global Scale Manufacturers McKesson Pharmacies Channel Strength in Generics Purchasing Global Scale Relationships Efficiencies/Benefits Private Label Virtual Inventory Management Rapid Shipment Solutions
Slide 21: NorthStar Delivers Global Value To U.S. Customers
NorthStar Delivers Global Value To U.S. Customers Raw McKesson Ingredients Materials Distribution Raw Materials Generics Pharmacy Manufacturer Manufacturer
Slide 22: A Valuable Partner To Manufacturers
McKesson: A Valuable Partner To Manufacturers Pharma/Biotech Company Needs Services Reach Scale High Efficiency Broad 40,000+ Best-in-class High value distribution customer network and reliability offering locations
Slide 23: A Valuable Partner To Independent Pharmacy
McKesson: A Valuable Partner To Independent Pharmacy Health Mart Store Count 3,095 2,941 2,787 2,615 • Higher pharmaceutical sales 2,017 • Faster sales growth 1,851 • Greater generics compliance 1,236 • Improved reimbursement efficiency • Industry-leading customer satisfaction FY07 FY08 FY09 FY10 FY
Slide 24: People, Infrastructure And Investments Enable Operational Excellence
Our People, Infrastructure And Investments Allow Us To Achieve Operational Excellence
Slide 25: McKesson Canada
McKesson Canada Nick Loporcaro President, McKesson Canada
Slide 26: Canadian Pharmacy Rx Purchases By Market Segment
Canadian Pharmacy Rx Purchases By Market Segment Canadian Pharmacy Rx Purchases $22.2 Billion CAD 12% Hospital 88% Retail Source: IMS Brogan, Canadian Drug Store and Hospital Purchases Moving Annual Total to December 2012
Slide 27: Generics Now Consist Of >60% Of Total Prescriptions
Generics Now Consist Of >60% Of Total Prescriptions Canadian Retail Pharmacy Rx Market Share: Brand versus Generic 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2005 2006 2007 2008 2009 2010 2011 2012 Rx Market Share - Brand 56.1% 54.9% 51.7% 48.2% 45.3% 42.7% 40.0% 37.1% Rx Market Share - Generic
Slide 28: McKesson Canada Has A Broad Value Proposition
McKesson Canada Has A Market #1 Share Broad Value Proposition Retail Government & Institution Manufacturer • 8,000 retail pharmacies • 93 Integrated Health • 800 pharmaceutical Networks & 1,350 hospitals partners • Out-patient automation • In-patient • Distribution services • Web-based order automat
Slide 29: Scaled Distribution Presence Across Canada
Scaled Distribution Presence Across Canada 16 Distribution Centres 13 Offices British Columbia Alberta Newfoundland Manitoba and Labrador Quebec Ontario New Brunswick Nova Scotia
Slide 30: Banner Programs and Global Sourcing
Global Sourcing Banner Programs Generic Rx Private Label OTC Program Products
Slide 31: We Help Independent/Banner Members Grow And Thrive
We Help Independent/Banner Members Grow And Thrive #1 by store count with >1,700 members
Slide 32: Comprehensive Specialty Capabilities
Comprehensive Specialty Capabilities Specialty Pharmacies & Distribution Infusion Services Manufacturer Programs
Slide 33: Leveraging Our Ecosystem
Leveraging Our Ecosystem • Sivem Distribution • Hospitals • Specialty • Manufacturers Community Community Community Pharmacy Connectivity Health Pharmacy • Payers • RelayHealth • Patients • Home Health Care • Medical Clinics • Specialty Community Network • Pharmacy Technology Solutions
Slide 34: McKesson Specialty Health
McKesson Specialty Health Marc Owen President, McKesson Specialty Health
Slide 35: Specialty Market Overview
Specialty Market Overview Steady Growth Expected in Specialty1 • Aging population driving new cancer cases • Growth from in-line products and new products in oncology will offset major patent expirations2 • Strong growth in other specialties FY14 FY15 FY16 FY17 Note: Total specialty market does not
Slide 36: McKesson Specialty Health Has A Broad Value Proposition
McKesson Specialty Health Has Market #2 Share A Broad Value Proposition `` Physician Manufacturer Payer • Distribution and Contracting • Efficacy and Safety • Oncology Medical • Robust Practice • Market Intelligence Home Offerings Management Services • Supply Chain Services • Value Based • Integrate
Slide 37: McKesson Specialty Coverage
McKesson Specialty Coverage The US Oncology Network: Radiation Locations The US Oncology Network: Practice Locations Onmark Select Program: Practice Locations Scale Technology Platform Breadth of Services • Serve 3,000+ physicians and more • >1,700 physicians using Lynx • ~100 radiation oncology tha
Slide 38: We Can Manage Care In Any Setting
We Can Manage Care In Any Setting Advanced Technology Enhancing practice operations, workflow and clinical decision making Business & Operational Leadership Streamlining operations, group purchasing, patient quality measures, reporting and payer relations support Clinical Leadership Resources to sup
Slide 39: Positioned To Lead Payment Shifts
Positioned To Lead Payment Shifts Traditional Contracting Quality-Based Performance Environment Environment • Leverage market position • Package and market a comprehensive, high quality patient experience • Fee-for-service focus • Improve payer-provider financial incentives and reduce overall admini
Slide 40: McKesson Specialty Health: Broad Expertise, Expanding Presence
McKesson Specialty Health Broad expertise Technology platform to drive enhanced value in all aspects for physicians, payers of cancer care and pharmaceutical delivery manufacturers Expanding Deep presence Physician in other Engagement specialties
Slide 41: McKesson Medical-Surgical
McKesson Medical-Surgical Paul Julian Executive Vice President, Group President
Slide 42: Medical-Surgical Market Overview
Medical-Surgical Market Overview Medical-Surgical Revenue Market Trends 4.0 • Favorable demographic and 3.5 utilization trends 3.0 • Consolidation of customers ($ Billions) 2.5 and distributors 2.0 • Markets remain highly 1.5 fragmented 1.0 • Extended care markets 0.5 remain attractive 0.0 2010 2011
Slide 43: Medical-Surgical Has A Broad Value Proposition
Medical-Surgical Has A Market #1 Share Broad Value Proposition Primary Care Home Care • Medical Supplies & Equipment • Medical Supplies & Equipment • In-Office Rx & Vaccines • Direct-to-Patient Services • In-Office Lab • McKesson Brand Products • McKesson Brand Products • Respiratory • Practice Mana
Slide 44: PSS World Medical Integration Update
PSS World Medical Integration Update Leadership Salesforce Engagement Synergies
Slide 45: Combined Company Has Wide Footprint
Combined Company Has Wide Footprint $5.5 Billion in Total Sales Salesforce of >1,400 Sales Combined Capabilities Scale Total Sales is comprised of McKesson Medical-Surgical total sales and PSS World Medical total sales and discounted operations for the calendar year 2012
Slide 46: Wrap-Up
MCKESSON
Slide 47: McKesson: Recognized As A Leader
McKesson: Recognized As A Leader #1 Healthcare Wholesaler 100 Best Corporate Citizens: for Innovation, 2010-2011 People 2013 Best Management, Employers for and Financial Healthy Lifestyles®: Soundness, Supplier of the Year: 2010 Platinum certification 2012 2010 2011 2012 2013 The Civic 50: 2012 2013
Slide 48: Distribution Solutions Summary
Distribution Solutions Summary • Demographics and healthcare reform will drive demand • Leading market position: #1 or #2 in all markets we serve • Operational excellence: the foundation of McKesson’s value proposition • Established and leading sourcing program – a decade of experience • Comprehensi
Slide 49: McKesson
MCKESSON
Slide 50: McKesson Technology Solutions
McKesson Technology Solutions Pat Blake Executive Vice President, Group President
Slide 51: Agenda
Agenda MTS Overview Industry Trends and Strategy Major Businesses Innovating for Today and Tomorrow Summary
Slide 52: Technology Solutions Overview
Technology Solutions Overview Comprehensive solutions across the healthcare continuum $3.4B in revenues and $371M in adjusted operating profit Payers Physicians Technology Solutions Manufacturers Hospitals and Health Systems Retail Pharmacies Consumers Reflects non-GAAP information calculated on an
Slide 53: Experienced Management Team
Experienced Management Team Pat Blake Executive Vice President, Group President McKesson Corporation (17 years) Jeff Felton Emad Rizk, MD Kevan Torgerson President, RelayHealth President, Health Solutions President, Enterprise Imaging & (13 years) (10 years) Departmental Solutions (27 years) Jim Pes
Slide 54: McKesson Technology Solutions: FY13 Adjusted Operating Profit Contribution
McKesson Technology Solutions FY13 Adjusted Operating Profit Contribution RelayHealth Health Solutions Distribution Technology Solutions Solutions 87% 13% Enterprise Imaging & Departmental Solutions Enterprise Information Solutions Business Performance Services Reflects non-GAAP information calculat
Slide 55: Agenda
Agenda MTS Overview Industry Trends and Strategy Major Businesses Innovating for Today and Tomorrow Summary
Slide 56: Healthcare Industry Transformation
Healthcare Industry Transformation Economic & Regulatory Changes Economic Regulatory Increasing Healthcare Costs ICD-10 Reimbursement Pressure Meaningful Use New Payment Models Accountable Care Interoperability & Information New Care Delivery Models Exchange Physician Employment/ Quality Reporting P
Slide 57: Better Health 2020
Better Health 2020 Enabling customers to overcome challenges Optimize Performance and Quality Navigate Evolving Coordinate Payment Better Care Models Health Maximize Technology Value
Slide 58: Agenda
Agenda MTS Overview Industry Trends and Strategy Major Businesses Innovating for Today and Tomorrow Summary
Slide 59: RelayHealth
RelayHealth Coordinating care across the continuum Market Leadership & Scale Overview 37M+ # • Pharmacy Network in Analytics & • Clinical Exchange • Analytics # 1 in Pharmacy Network Patient 1 Workforce Management Health • Population Health 50,000+ Records • Capacity Management Retail 1,000+ Pharmac
Slide 60: Health Solutions
Health Solutions Driving efficient care and payment for payers and providers Market Leadership & Scale Overview Payer Solutions • Decision Management # 1 in Decision Management – Payer & 1.9B # 1 in Provider Network Management – • Financial Management Provider Financial Payer Transactions • Provider
Slide 61: Enterprise Imaging & Departmental Solutions
Enterprise Imaging & Departmental Solutions Increasing provider productivity Presence & Recognition Overview • Diagnostic Imaging Ranked 2012 Best in • Document Imaging • Departmental Solutions (laboratory, surgery, Nearly 2,800 3 # KLAS® PACS scheduling, materials management) Diagnostic 1,400+ Docu
Slide 62: Enterprise Information Solutions
Enterprise Information Solutions Maximizing the value of technology Presence & Recognition 7 Overview 25%+ th • Paragon is a fully integrated EHR Solution • Clinical, financial and of Paragon Facilities resource management >200 beds Consecutive applications on a single Year 2 Microsoft database Para
Slide 63: Business Performance Services
Business Performance Services Improving physician practice performance Presence & Scale Overview • Comprehensive suite of practice management solutions 40+ 135,000+ • Leader in physician revenue cycle services Specialties Physicians • Scalable technology solutions and services Presence in all MED3OO
Slide 64: Agenda
Agenda MTS Overview Industry Trends and Strategy Major Businesses Innovating for Today and Tomorrow Summary
Slide 65: Innovating For Population Health
Innovating For Population Health To Support Risk-Based Payment Models Connected Data Why McKesson? Analytics Hospitals & • Leading vendor with Payers Care Management Health Systems health system analytics, providing true provider profitability analysis Solutions to facilitate shift to risk-based • V
Slide 66: Innovating for Business Intelligence
Innovating for Business Intelligence To Empower Strategic & Point of Care Decisions Strategic Capacity Why McKesson? Management Management • Vendor-neutral suite with Optimize the core business Predict supply and demand large number of customers of healthcare across the enterprise from other core cl
Slide 67: Innovating for Value-Based Reimbursement
Innovating for Value-Based Reimbursement To Drive Payment Based on Episodes and Outcomes Payment Models Why McKesson? No Fee for Service Risk • Market leader in financial and episode management Bundled Payments • Payer-Provider Pay for Performance experience and customer base Blended Payments • Uniq
Slide 68: Innovating for Interoperability
Innovating for Interoperability To Enable Connectivity Across the Continuum An independent not-for-profit organization that will support universal access to health care data through seamless interoperability Founding Members
Slide 69: Agenda
Agenda MTS Overview Majority Industry Trends and Strategy Major Businesses Innovating for Today and Tomorrow Summary
Slide 70: Healthcare Technology Poised for Steady Growth
McKesson Technology Solutions Healthcare Technology Poised for Steady Growth • From regulatory pressures to reimbursement complexity, healthcare organizations require solutions to address near and long term challenges • McKesson Technology Solutions is focused in the areas where we have a leading in
Slide 71: Financial Update
Financial Update Erin Lampert Senior Vice President, Investor Relations
Slide 72: Agenda
Agenda Overview Segment Financial Review Looking Forward – Financial Flexibility Track Record of Financial Performance Summary
Slide 73: McKesson Drives Sustained Value Creation
McKesson Drives Sustained Value Creation Attractive healthcare markets • Public policy agenda supports greater access and improved efficiency • Demographics drive long-term demand Well positioned businesses with margin expansion opportunities • Market leading positions and scale • Operational excell
Slide 74: Distribution Solutions: Broad Value Proposition with Evolving Mix of Higher Margin Products
Distribution Solutions Broad Value Proposition with Evolving Mix of Higher Margin Products and Services
Slide 75: Distribution Solutions: Organic Revenue Growth, Spurred By Acquisitions
Distribution Solutions: Organic Revenue Growth, Spurred By Acquisitions $ Billions $119 $104 $68 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
Slide 76: Operating Margin Expansion Has Been Consistent Over The Long-Term
Operating Margin Expansion Has Been Consistent Over The Long-Term Q4 FY05 earnings release: Issued initial operating Achieved full-year Achieved full-year margin target adjusted operating adjusted operating of 150 – 200 bps margin of 193 bps margin of 207 bps FY05 FY07 FY10 FY11 FY13 Achieved full-y
Slide 77: Major Levers For Operating Profit Expansion
Major Levers For Operating Profit Expansion Have Varied In Their Contribution Generics & Sell Margin Private Label Continued ability Branded Operating Manufacturer to drive steady profit Expense Economics Leverage growth over the long-term Focus on higher margin, higher growth areas
Slide 78: Distribution Solutions Financial Drivers
Distribution Solutions Financial Drivers • Scaled leadership positions across broad portfolio drive steady long-term growth • Operational excellence • Growth in gross profit with steady contribution from generic and branded drugs • Focus on higher margin, higher growth areas provides margin expansio
Slide 79: Technology Solutions: Diversified Portfolio with Solid Long-Term Fundamentals
Technology Solutions Diversified Portfolio with Solid Long-Term Fundamentals
Slide 80: Technology Solutions Is A Broad And Diversified Portfolio
Technology Solutions Is A Broad And Diversified Portfolio McKesson Health Solutions RelayHealth Technology Solutions Business Enterprise Imaging | Enterprise Information Systems | Performance Services
Slide 81: McKesson Technology Solutions: FY13 Adjusted Operating Profit Contribution
McKesson Technology Solutions FY13 Adjusted Operating Profit Contribution RelayHealth Health Solutions Distribution Technology Solutions Solutions 87% 13% Enterprise Imaging & Departmental Solutions Enterprise Information Solutions Business Performance Services Reflects non-GAAP information calculat
Slide 82: Technology Solutions Financial Drivers
Technology Solutions Financial Drivers • Increasing demand for technology driven by industry dynamics and government support • Scaled leadership positions across broad portfolio drive steady long-term growth • Focus on higher margin, higher growth areas provides margin expansion opportunities • Cash
Slide 83: Financial Flexibility: Steady Cash Flow and Healthy Balance Sheet
Financial Flexibility Steady Cash Flow and Healthy Balance Sheet Lead to Value Creation
Slide 84: Our Operating Cash Flows Have Steadily Increased
Our Operating Cash Flows Have Steadily Increased OCF $ Billions 7 Year Moving Average $2.5 $2.0 $119 $119 $104 $106 $109 $1.5 $1.0 $0.5 FY07 FY08* FY09 FY10 FY11 FY12 FY13 *FY08 excludes $962 million Securities Litigation payment
Slide 85: We Use a Portfolio Approach To Capital Deployment
We Use a Portfolio Approach To Capital Deployment $ Billions Dividends $21 Billion of Capital Deployed Internal Capital from FY07 – FY13 Spending • Value-creating acquisitions • Measured share repurchase over time $2.6 $8.7 • Internal capital spending • Dividend policy periodically reviewed Share Re
Slide 86: Our Internal Capital Spending Needs Are Modest
Our Internal Capital Spending Needs Are Modest $ Millions $47 $49 $74 $75 $64 $73 $111 $91 $131 $76 $123 $104 $88 $104 $233 $225 $246 $195 $195 $199 $126 FY07 FY08 FY09 FY10 FY11 FY12 FY13 Capital Expenditures Capitalized Internal Use Software Capitalized Software Held for Sale
Slide 87: Our Dividend Philosophy
Our Dividend Philosophy • Periodically reviewed • Ongoing dialogue with Board and shareholders • Prefer flexibility to allocate capital to value-creating acquisitions • Raised three times since FY07
Slide 88: Disciplined Acquisitions Enhance Strategy
Disciplined Acquisitions Enhance Strategy Nearly $9 billion deployed to complete a series of value-creating acquisitions since FY07 FY07 – FY13: 22 Acquisitions Distribution Solutions $ Billions 22 Acquisitions Technology Solutions $1.8 $1.4 Other $2.5 Per-Se Technology $0.9 Solutions Katz $2.1 $0.5
Slide 89: Nearly $9 Billion Returned Through Share Repurchases Since FY07
We Have Returned Nearly $9 Billion To Shareholders Through Share Repurchases Since FY07 Diluted Weighted Average Shares Outstanding (in millions) 305 298 279 273 263 251 239 FY07 FY08 FY09 FY10 FY11 FY12 FY13
Slide 90: Our Stock Option Overhang Has Significantly Declined
Our Stock Option Overhang Has Significantly Declined 36 Million Outstanding 7 Million Outstanding 2 6 1 Yr 8 1 1 2 Yr 2 Yr 3 Yr 3 Yr 1 2 5 Yr 4 Yr 3 19 5 Yr 6 Yr Fiscal Year 2007 Fiscal Year 2013
Slide 91: We Maintain A Strong Balance Sheet With Significant Financial Flexibility
We Maintain A Strong Balance Sheet With Significant Financial Flexibility Investment Grade Debt Ratings • Reaffirmed after February 2013 financing • Ended FY13 at the top end of our target debt / capital ratio range of 30-40% Significant capital Healthy Cash Position for future • March 31, 2013 cash
Slide 92: How Does It All Add Up? Steady Track Record of Great Results
How Does It All Add Up? Steady Track Record of Great Results
Slide 93: Track Record Of Steady Revenue Growth
We Have A Track Record Of Steady Revenue Growth… $ Billions $123 $122 $107 $109 $112 $102 $93 FY07 FY08 FY09 FY10 FY11 FY12 FY13
Slide 94: Higher Adjusted EPS Growth
…That We Have Leveraged Into Higher Adjusted EPS Growth FY14 Guidance: $7.90 - $8.20 $6.38 $6.33 $4.85 $5.31 $4.35 $3.02 $3.53 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Reflects non-GAAP information calculated on an Adjusted Earnings basis. A reconciliation to GAAP is available in the appendix to this
Slide 95: Fiscal 2014 Adjusted EPS Expected At $7.90 - $8.20
We Expect Fiscal 2014 Adjusted Earnings Per Diluted Share Of $7.90 - $8.20 • Revenue growth - Distribution Solutions will rebound significantly - Technology Solutions will accelerate from FY13 levels • Branded and generic price trends similar to those observed in our FY13 • Profit from the launch of
Slide 96: McKesson Drives Sustained Value Creation
McKesson Drives Sustained Value Creation Attractive healthcare markets • Public policy agenda supports greater access and improved efficiency • Demographics drive long-term demand Well positioned businesses with margin expansion opportunities • Market leading positions and scale • Operational excell
Slide 97: McKesson
MCKESSON
Slide 98: Reconciliation of GAAP Operating Results to Adjusted Earnings, FY2007-2013
RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED EARNINGS (NON-GAAP) FOR FISCAL 2007 THROUGH 2013 (unaudited) (in millions, except per share amounts) Year Ended March 31, 2013 Amortization Acquisition of Acquisition- Expenses and Litigation Adjusted As Reported Related Related Reserve Earnings (
Slide 99: Reconciliation of GAAP Operating Results to Adjusted Earnings
McKESSON CORPORATION RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED EARNINGS (NON-GAAP) FOR FISCAL 2007 THROUGH 2013 (unaudited) (in millions, except per share amounts) Year Ended March 31, 2011 Amortization Acquisition of Acquisition- Expenses and Litigation Adjusted As Reported Related Relat
Slide 100: Reconciliation of GAAP Operating Results to Adjusted Earnings
RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED EARNINGS (NON-GAAP) FOR FISCAL 2007 THROUGH 2013 (unaudited) (in millions, except per share amounts) Year Ended March 31, 2009 Amortization Acquisition of Acquisition- Expenses and Litigation Adjusted As Reported Related Related Reserve Earnings (
Slide 101: Reconciliation of GAAP Operating Results to Adjusted Earnings
RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED EARNINGS (NON-GAAP) FOR FISCAL 2007 THROUGH 2013 (unaudited) (in millions, except per share amounts) Year Ended March 31, 2007 Amortization Acquisition of Acquisition- Expenses and Litigation Adjusted As Reported Related Related Reserve Earnings (
Slide 102: Reconciliation of GAAP Segment Results to Adjusted Earnings, FY2009-2013
McKESSON CORPORATION RECONCILIATION OF GAAP SEGMENT FINANCIAL RESULTS TO ADJUSTED EARNINGS (NON-GAAP) - BY ADJUSTMENT TYPE FOR FISCAL 2009 THROUGH 2013 (unaudited) (in millions) Year Ended March 31, 2013 Year Ended March 31, 2012 Year Ended March 31, 2011 Year Ended March 31, 2010 Year Ended March 3
Slide 103: Reconciliation of GAAP Segment Results, Fiscal 2007 Through 2008
McKESSON CORPORATION RECONCILIATION OF GAAP SEGMENT FINANCIAL RESULTS TO ADJUSTED EARNINGS (NON-GAAP) FOR FISCAL 2007 THROUGH 2008 (unaudited) (in millions) Year Ended March 31, 2008 Year Ended March 31, 2007 Corporate Corporate Distribution Technology & Interest Distribution Technology & Interest S