CVS Health : Goldman Sachs 2020 Global Healthcare Conference Presentation

Goldman Sachs 2020

Global Healthcare

Conference

Eva Boratto

Executive Vice President &

Chief Financial Officer

Karen Lynch

Executive Vice President &

President of Aetna

June 10, 2020

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-looking statements are not guarantees of future performance or results and are subject to risks and uncertainties that are difficult to predict and/or quantify. Actual results may differ materially from those contemplated by the forward-looking statements due to the risks and uncertainties related to the COVID-19 pandemic, the severity and duration of the pandemic, the pandemic's impact on the U.S. and global economies and consumer behavior and health care utilization patterns, and the timing, scope and impact of stimulus legislation and other federal, state and local governmental responses to the pandemic, as well as the other risks and uncertainties described in our Securities and Exchange Commission filings, including those set forth in the Risk Factors section and under the heading "Cautionary Statement Concerning Forward-Looking Statements" in our most recently filed Annual Report on Form 10-K, our most recently filed Quarterly Report on Form 10-Q and our recently filed Current Reports on Form 8-K.

This presentation includes non-GAAP financial measures that we use to describe our company's performance. In accordance with SEC regulations, you can find the definitions of these non-GAAP measures, as well as reconciliations to the most directly comparable GAAP measures, on the Investor Relations portion of our website.

2©2020 CVS Health and/or one of its affiliates.

Unmatched ability to engage with consumers -

CVS Health interacts with one in three Americans annually

Our stores are in their

community

~70%of U.S. population lives within 3 miles of a CVS Pharmacy

• Increase in Q1 2020 compared to Q1 2019
  3©2020 CVS Health and/or one of its affiliates.

Consumers invite us		We are embedded in
into their homes		consumers digital lives
Visits annually to	~	600	%	Increase* in utilization
homes or other	of telemedicine for
700Kcommunity settings			virtual visits through

MinuteClinic®

Rapid Testing Site

Rhode Island

CVS Pharmacy

Drive-thru testing

4©2020 CVS Health and/or one of its affiliates.

Supporting our communities

~240k

~1.5M

COVID-19 tests administered through the end of May across 5 rapid testing sites and ~1,000 CVS drive-thru locations

Testing capacity for COVID-19 tests per month across ~1,000 CVS drive-thru locations

5©2020 CVS Health and/or one of its affiliates.

Opportunities to utilize CVS Health Retail assets

Treatment therapies

Ability to provide medication therapies and vaccines, once available

Payor solutions

Exploring employer solutions, including testing for employee populations to help employers effectively manage the return and maintenance of their workforces

6©2020 CVS Health and/or one of its affiliates.

Q1 2020 RESULTS

Consolidated Enterprise

in millions,
except per share data	Q1 2020		Q1 2019		Change %
Total revenues	$66,755	$61,646	8.3%	Total revenue growth coming from all segments; portion
of growth driven by COVID-19 related pull forward of
							scripts and front store sales increases
							Adjusted Operating Income growth driven by Pharmacy
Adjusted operating income	$4,113	$3,595	14.4%	Services and Retail/LTC, partially offset by a slight
							decline in Health Care Benefits
GAAP EPS	$1.53	$1.09	40.4%	GAAP and Adjusted EPS growth driven by Pharmacy
Services and Retail/LTC, as well as lower interest
							expense, partially offset by higher income tax expense
							COVID-19 related business activity added
Adjusted EPS
$1.91	$1.62	17.9%	approximately 10 cents

7©2020 CVS Health and/or one of its affiliates.

May business update

Retail same store sales1

Pharmacy sales

Pharmacy adjusted prescription volume2

Front Store sales

Pharmacy Services total claims processed2

HCB decreases in utilization across an array of services

March 2020		April 2020
YoY		YoY3
17.5%	1.5%
17.2%	5.4%
12.6%	(0.5%)
18.6%	(10.7%)

17.0% 0.6%

(~30%)

May 2020

YoY3

(1.1%)

(0.5%)

(4.2%)

(3.2%)

(2.3%)

(~25%)

Change in May prescription and claims processed volume year-over-year versus April driven by continued reversal of the pull-forward in scripts seen in March, and drop in new prescriptions related to lower physician visits

Decline in April Front Store sales year-over- year as increased basket size is offset by reduction in store traffic as shelter in place orders took hold. Improvement in May sales year-over-year compared to April due to increased store traffic

Reduction in discretionary utilization that began in mid-March continued through April with a modest increase in May; Q2 2020 MBR could be lowest of the year

1. Same store sales and prescription volume exclude revenues from MinuteClinic and revenues and prescriptions fromlong-term care operations and, in 2019, from stores in Brazil.
2. Includes an adjustment to convert90-day prescriptions to the equivalent of three 30-day prescriptions. This adjustment reflects the fact that these prescriptions include approximately three times the amount of product days supplied compared to a normal prescription.
3. April 2020 and May 2020 information is preliminary.

8©2020 CVS Health and/or one of its affiliates.

Cannot predict impact of delayed or missed treatment on members with chronic conditions

Executing on strategic priorities

Consumer focused - be local, make it simple, improve health

9©2020 CVS Health and/or one of its affiliates.

Grow and	Deliver
differentiate our	transformational
businesses	products and services

Create a consumer-	Modernize Enterprise
centric technology	functions and
infrastructure	capabilities

10©2020 CVS Health and/or one of its affiliates. Confidential and proprietary.