CVS Health : Q1 2021 Earnings Presentation (opens in new window)

FIRST QUARTER 2021

Earnings conference call

Karen S. Lynch	Eva Boratto
President & Chief	Executive Vice President
Executive Officer	& Chief Financial Officer
May 4, 2021

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 geographies impacted by and 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 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 recent Annual Report on Form 10-K and our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021.

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.

[Link to our non-GAAPreconciliations]

• ©2021 CVS Health and/or one of its affiliates. Confidential and proprietary.

Q1 & Full-Year 2021 highlights

Exceeding our expectations in Q1; raising FY Adjusted EPS guidance

Showcases our strategy and execution

in delivering value across the health care system for our customers, our communities, our people and our shareholders

$2.04		3.5%
Q1 adjusted EPS		Q1 revenue growth
Reflects outperformance		Reflects growth across
across all businesses		all businesses
	Raising FY	Enterprise adjusted operating
	income raised to
	guidance
	$15.9 - $16.1B
		Enterprise Adjusted EPS raised to
		$7.56 - $7.68
		Reflecting outperformance in HCB and PSS

Generated

$2.9 billion

in cash flow from operations

Committed to disciplined capital allocation priorities

Remain committed to

target leverage ratio of

low 3x's in 2022

Paid >$3B in debt in Q1

• ©2021 CVS Health and/or one of its affiliates. Confidential and proprietary.

Advancing our integrated care delivery

meeting the diverse health needs of communities across America

>80%

increase in visits to our flagship digital properties y/y

Demonstrating

the integrated value of our unique portfolio of health products and services

Enhancing

the consumer experience through our digital services and platforms

Expanding

our innovative, consumer- oriented solutions that improve health and lower medical costs

Entering

new markets leveraging the strengths of both CVS and Aetna brands, a unique offering with community support

Growing

access to care by expanding our reach. Utilizing AI and machine learning to simplify, save, and improve experiences

Building

Broader capabilities in home health, health services and virtual care

Investing

in and partnering with high potential, early-stage companies to innovate health

• ©2021 CVS Health and/or one of its affiliates. Confidential and proprietary.

One third of

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 filling a new prescription at CVS Health locations

>90% second dose compliance at CVS Health locations

vaccination patients in retail pharmacies from under-represented populations

5 ©2021 CVS Health and/or one of its affiliates. Confidential and proprietary.