Full Presentation 16122015 PDF

The Right Strategy for an
Evolving
g Health Care Market
Larry
y Merlo
President & Chief Executive Officer
Analyst Day
December 16, 2015
Forward-looking Statements
During today’s presentation, we will make forward-looking statements

within the meaning of the federal securities laws. By their nature, all
forward looking statements involve risks and uncertainties.
forward-looking uncertainties Actual
results may differ materially from those contemplated by the forward-
looking statements for a number of reasons as described in our SEC
filings including the risk factors section and cautionary statement
filings,
disclosure in those filings.
During this presentation, we will also use some non-GAAP financial
measures whenh t lki
talking about
b t our company’s’ performance,
f i l di
including
free cash flow, cash available to enhance shareholder value and
Adjusted EPS. In accordance with SEC regulations, you can find the
definitions of these non-GAAP items,
items as well as reconciliations to
comparable GAAP measures, on the investor relations portion of our
website.
3
Key Accomplishments in 2015
 Strong financial results Adj. EPS growth of ~15%; Free Cash Flow of ~$6.0B
 Big wins in ’16 selling season $11.5B net new business; client retention of 98%
 Superior specialty growth

Continuing to outperform in the rapidly-growing
specialty
p y market with revenue ggrowth of ~33%
 Enhanced generic sourcing Red Oak is hitting milestones and achieving goals
 New adjacent channel

New,
Acquired Omnicare, a leader in long-term
care pharmacy
 Broader retail footprint

Definitive agreement to purchase more than 1,660
Target pharmacies and approximately 80 retail clinics
 Advanced front store strategies

Continued focus on enhancing health and beauty
offerings, store brands, personalization and digital
 Built CVS Health brand identity

Elevated awareness while continuing to play a
leadership role in shaping the future of health care
Notes: See endnotes.
4
The Most Extensive Suite of Leading Assets…
Retail Mail
Long-term
Care
Retail Specialty
Clinics
Clinical
Infusion
Programs
g
Digital Patients Medical

Claims
Payors Providers Editing
…providing the right strategy for an evolving health care market
5
Today’s Key Takeaways
The Right Strategy for an Evolving Health Care Market
Demonstrating Value Leadership in multiple competencies to drive superior

to People, Payors and Providers value
l ffor health
h lth care partners
t
Growing
g the Core,, Expanding
p g core p
pharmacyy business while broadening
g
Broadening the Base reach into new health care channels
Always Looking IIntroducing

t d i innovative
i ti products
d t and
d making
ki llong-term,
t
Ahead value enhancing investments
Driving Sustainable Driving shareholder value with strong earnings and

Enterprise Growth cash flow as well as disciplined capital allocation
6
Today’s Agenda
Topic Speaker
M i i i Long-term
Maximizing L t Shareholder
Sh h ld Value
V l D
Dave D
Denton
t
Driving Enterprise Growth in an Evolving Health Care Market Larry Merlo
Delivering Value Today, Ensuring Growth for Tomorrow Jon Roberts
Capitalizing on Growth Opportunities in Specialty Alan Lotvin
Changing the Face of Retail Pharmacy Through Innovation Helena Foulkes
Serving Patients Across the Continuum of Care Rocky Kraft
7
Appendix
pp
Endnotes
1. Adj. EPS equals income before income tax provision plus amortization, less adjusted income tax
provision, and other, which is comprised of earnings allocated to participating securities, divided by
the weighted average diluted common shares outstanding.
2. Adj. EPS excludes a $521 million loss on early extinguishment of debt (approximately $0.27 per
dil ted share) d
diluted during
ring 2014
2014, and $52 million of acq
acquisition-related
isition related bridge financing costs and $147
million of acquisition-related transaction and integration costs during the nine months ended
September 30, 2015. relating to the acquisition of Omnicare, Inc., and proposed acquisition of the
pharmacies and clinics of Target Corporation. Adj. EPS also excludes any acquisition-related
transaction and integration costs for the acquisition of Omnicare, Inc., and the proposed acquisition
of the pharmacies and clinics of Target Corporation for the period from October 1, 1 2015 through
December 31, 2015.
3. Free Cash Flow as net cash provided by operating activities less net additions to properties and
equipment (i.e., additions to property and equipment plus proceeds from sale-leaseback
transactions).
4 Adj.
4. Adj EPS growth and Free Cash Flow are based on midpoints of 2015 guidance guidance.
5. Client retention rate is defined as: 1 less (projected 2016 lost revenues from known terminations
occurring after January 1, 2015, divided by estimated 2016 PBM revenues) expressed as a
percentage. Both terminations and PBM revenues exclude the individual PDP business.
6. The following trademarks appear throughout the 2015 Analyst Day presentations: : ,
CVS Health,
Health CVS/caremark
CVS/caremark, Omnicare,
Omnicare CVS/Omnicare
CVS/Omnicare, CVS/specialty
CVS/specialty, CVS/caremark
CVS/caremark, CVS,
CVS
Maintenance Choice, Coram, Navarro, Novologix, Omniview, MyOmniview, CVS/minuteclinic, Health
Engagement Engine, Accordant, RX Insights, ScriptSync, MinuteClinic and Specialty Connect. They
are trademarks or registered trademarks of CVS Pharmacy, Inc.
9
Maximizing Long
Long-term
term
Shareholder Value
Dave Denton
Executive Vice President &
Chief Financial Officer
Non-GAAP Financial Measures
Free Cash Flow and Cash Available for

Adjusted Earnings per Share
Enhancing Shareholder Value
Net cash provided by operating Income before income tax provision

activities
+ Amortization
- Additions to property and
- Adjusted income tax provision
equipment
- Earnings allocated to participating
+ Proceeds from sale-leasebacks
securities
Free cash flow ÷ Weighted average diluted shares
outstanding
+/- Change in net debt
Adj
Adjusted
d earnings
i per share
h
Cash available for enhancing
shareholder value
Note:
1. CVS Health finances a portion of its store development program through sale-leaseback transactions. Use of sale-leaseback financing is subject to change
as a variety of financing vehicles for future development are evaluated. This may also result in changes to CVS Health’s definition of free cash flow.
2
Agenda
Strong Record of Execution
Marketplace Misconceptions
Looking Ahead: 2016 Guidance Review
Driving Sustainable Enterprise Growth
3
Continuing Focus on Enhancing Shareholder Value
Generating
Productive Op
Optimizing
g
Si ifi
Significant
t
Long-term Capital
Free Cash
Growth Allocation
Flow
Enhanced
Shareholder Value
4
Our Leadership in Multiple Competencies
Continued to Drive Shareholder Value in 2015
Revenues and • Driving top- and bottom-line results through an

Operating Profit enterprise focus
• Delivering Adjusted EPS at high end of initial targets

Earnings per Share
• 1¢ accretion from Omnicare acquisition and new debt
Free Cash Flow • Generating substantial free cash flow
• Returning more than $6 billion to shareholders through

Shareholder Value
dividends and share repurchases
Note:
1. Earnings per share excludes acquisition-related bridge financing, transaction and integration costs.
5
2015 Guidance Reaffirmed
Full-year 2015
Net Revenue Growth 9.75% to 10.25%
Adjusted EPS From $5.14 to $5.18

Continuing Operations
Year-over-year Growth 14.25% to 15.25%
Free Cash Flow $5.9 to $

$ $6.2 billion
Year-over-year Growth Down 4% to 10%
Notes:
1. Excludes acquisition-related bridge financing, transaction and integration costs.
2. Excludes $521 million loss on early extinguishment of debt recognized in 2014.
3. Free cash flow in 2014 was approximately $500 million above goal due to receipt of some early payments from CMS, benefiting 2014 and to the detriment of 2015.
6
Original Steady State Targets
Enterprise Growth Model from 2010
Five-year CAGR
2010 - 2015
Net Revenue 8% to 11%
Operating Profit 8% to 10%
Adjusted EPS From Cont Ops 7% to 9%
Average Annual Cash Available $5.5 billion

For Enhancing Shareholder Value to
$6.5 billion
$
Share Repurchase Contribution 3% to 6%
Total Adjusted EPS 10% to 15%
* Cash available for enhancing shareholder value = Free cash flow +/- change in net debt 7
Enterprise Expansion Has Happened
as Originally Targeted
Operating Profit Adjusted EPS
($, billions) ($)
9
9.8
8 5
5.18
18
to to
9.7 5.14
10% 14%
CAGR CAGR
2.68
6.1
2010 2011 2012 2013 2014 2015E 2010 2011 2012 2013 2014 2015E
Growth at higher end of original long-term targets

Note:
1. CAGRs use midpoint of 2015 guidance range.
8
Strategic Capital Deployment with Acquisitions of
Omnicare and Target Pharmacies and Clinics
OMNICARE TARGET
• Brings a new pharmacy • Enhances network and

dispensing channel to CVS as relevance of CVS Health’s
the leading
g provider
p of integrated
g offerings
g
pharmacy services to long-
• Enables Target guests to
term care facilities
participate in unique CVS
• CVS + Omnicare enhances programs
p g (e.g.,
( g , Maintenance
ability to provide continuity of Choice, Specialty Connect)
care for patients – Provides convenience and
p
• Complementary y specialty
p y cost savings to consumers
business will augment our and payors
capabilities – Other pharmacies cannot
replicate what CVS provides
9
Well-laddered Debt Maturities Remain Core to
Strong Balance Sheet
Debt Maturity Profile (Bonds)
($, billions)
1.7
1.2 1.1 1.3 1.2 1.3
1.0
0.7 0.8
0.5 0.6 0.5 0.5
2016 2017 2018 2019 2020 2021 2022 2023 2024 2027 2039 2041 2043
10
Well-laddered Debt Maturities Remain Core to
Strong Balance Sheet
Debt Maturity Profile (Bonds)
($, billions)
3.5 3.5
3.2 3.2
3.0
2.0
1.2 1.1 1.2 1.3

1.0
0.6 0.7 0.8
0.5 0.5
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2027 2035 2039 2041 2043 2045
Balance sheet remains healthy

y with addition of $
$15 billion of senior notes
11
Committed to Maintaining a Healthy Balance Sheet
Adjusted Debt-to-EBITDA
As expected
expected, new debt
increased leverage ratio above
3.4 3.30 target of 2.7X
3.2
2.94 • Committed to returning to a
3.0
leverage ratio at target
2.8 Target = 2.70
– Driven mostly by strong EBITDA
2.6 growth
2.66
2.4 – Will also pay down debt with
2.39 upcoming maturities
22
2.2
'13 '14 '15E '16E
Focused on maintaining high BBB credit rating

Note:
1. Figures shown are as of the end of the fourth quarter for each respective year and do not include bridge financing, transaction and integration costs
associated with the acquisitions of Omnicare and the pharmacies and clinics of Target.
12
$41 Billion Available to Enhance
2014 Through 2018 Returns
$10
~$39 ($8) billion
billion
billion
~$31
$31 $41
billion billion
Operating Free Incremental Cash

Net Capex
Cash Flow Cash Flow Debt Available
13
Efficient Cash Deployment 2014 Through 2018
Cash Available for

Enhancing
g Shareholder
Value
$41 billion
Dividends Share
Return on
Repurchases
Target payout ratio
Invested Capital
of 35% by 2018 $4 billion to $5
Drive ROIC with
billion per year
value-enhancing
~18% implied
projects
dividend CAGR Value creating
14
~$23 Billion Available for Returns in 2014 and 2015
Effective allocation of cash Cash Available & Capital Allocation

available in ‘14 and ‘15 through:
g ($, billions)
• 56% increase of annual dividend 22.9 23.8

– Payout ratio estimated to be nearly Share
29% at year-end
year end 9.0 repurchases
h
• Target and Omnicare acquisitions

consistent with growing core and
12 0
12.0 Acquisitions
broadening base
• Expect to complete a total of $9 2.9 Dividends

billion of repurchases by year-end
year end
Cash Available Capital Allocated
~ $24 billion of deployed capital 2014 and 2015

Note:
1. Cash available = Free cash flow plus increase in debt. 2. Acquisitions are shown net of cash acquired. 3. Figures may not foot due to rounding.
15
Solid History of Enhancing Returns Using All Three
Pillars for Efficient Cash Deployment
Annual Dividend Acquisitions Share
per Share and Ventures Repurchases
($) ($ billions))
($,
Apr ’11 Apr ’12
29% Universal Health $20b

CAGR American Net Total
PDP PDP
1.40 50
5.0
1.10 4.3 4.0 4.0
Feb ’13 Mar ’13 Jan ’14
0.90 Drogaria NovoLogix Coram 3.0
Onofre
0.65
0.50
Jul ’14 Sep ’14 Aug ’15
Red Oak Navarro Omnicare

Sourcing
S i
'11 '12 '13 '14 '15E '11 '12 '13 '14 '15E
Deployment
p y of capital
p in line with long-term
g targets
g
16
2016 Capital Deployment to Include
Dividend Increase and Further Repurchases
2016 Annual
Dividend
• Increasing 21%,
21%
from $1.40 to $1.70
$1 70
$1.70 2016 Share
Repurchases
• Currently $7.7 billion authorized
and remaining from 2014 share $4
repurchase program billion
More than $
$5 billion expected
p to be returned to shareholders in 2016
17
Agenda
18
MYTH #1
ALL SPECIALTY
PHARMACIES ARE
SIMILAR IN PRACTICE TO
THE CAPTIVE
“SPECIALTY”
PHARMACIES THAT
HAVE COME UNDER
RECENT SCRUTINY
19
FACT #1
TRUE SPECIALTY
PHARMACIES LIKE
CVS/SPECIALTY HAVE
A DIFFERENT BUSINESS
MODEL THAN THESE
CAPTIVE
PHARMACIES
20
Misconceptions in Marketplace Are Creating Noise
FACT #1: CVS/specialty
p y Is Different
• These captive pharmacies are NOT specialty pharmacies

– Derive
D i vastt majority
j it off pharmacy
h volume
l ffrom one manufacturer
f t
– Many don’t dispense specialty medications
– Attempting to circumvent cost-saving solutions our clients have adopted
• To best manage access and cost, CVS/caremark determines which

pharmacy is eligible to be an in-network provider
– Terminate
T i t some pharmacies
h i lik
like th
these each
h year ffor non-compliance
li
• In contrast, CVS/specialty provides high-touch care to patients with

complex specialty conditions requiring costly drug therapies
– Extensive clinical services help to ensure proper adherence, better
health outcomes and lower trend
21
MYTH #2
THE RxCROSSROADS
BUSINESS COULD BE A
BIG RISK FOR CVS
HEALTH GIVEN THAT
IT IS AT ODDS WITH
CLIENTS
CLIENTS’
OBJECTIVES
22
FACT #2
THE RxCROSSROADS
BUSINESS IS ALIGNED
WITH OUR FOCUS ON
COST, QUALITY AND
ACCESS, AND IS
IMMATERIAL TO OUR
FINANCIAL RESULTS
23
FACT #2: RxCrossroads Is Aligned
g
• RxCrossroads follows CVS Health’s philosophy of:

– Controlling
C t lli costs
t and
d utilization
tili ti ffor our clients
li t
– Promoting better health outcomes for the patients we serve
– Promoting access to appropriate prescription medication
• Patient assistance programs provide help to underinsured and

uninsured patients who can’t afford drugs
• RxCrossroads is immaterial to CVS Health’s overall financial results

– Analyzed
y as p
part of due diligence
g efforts
– Contributes less than 1¢ to earnings per share
24
MYTH #3
ALWAYS PARTICIPATE IN
PREFERRED NETWORKS
FOR OPTIMAL SUCCESS
IN MEDICARE PART D
25
FACT #3
NOT ALL MEDICARE

PART D NETWORKS
ARE CREATED EQUAL …
FINANCIAL DISCIPLINE
IS REQUIRED
26
FACT #3: Med D Networks Are Not Equal
q
• In preferred networks, plan designs must offer pharmacies enough

share gain to more than offset reduced margins
– Significant incentive must be offered to patients to switch pharmacies
• Key areas of consideration with Med D networks:

– Mix of lives important as some don’t experience any co-pay differential
– Co-pay differential not always large enough to incent patients
• Will not participate in Aetna

Aetna’s
s preferred Med D network for 2016
– Share gains won’t offset margin loss
– Don’t expect to lose significant share; impact expected to be immaterial
• We participate in networks that make economic sense

– Expect to have a significant presence in preferred Med D networks in
2016
27
MYTH #4
UNDERLYING GROWTH
IN EACH SEGMENT IS
WHAT ULTIMATELY
FUELS THE CVS HEALTH
VALUE-CREATION
ENGINE
28
FACT #4
CVS HEALTH’S
SUCCESS WILL BE
DRIVEN BY ENTERPRISE
GROWTH … SOMETIMES
AT THE EXPENSE OF
ONE OF THE
SEGMENTS
29
FACT #4: Enterprise
p Growth Drives Success
• Critical to focus on enterprise growth
• Unique offerings are aligned across the company in support of the

enterprise growth strategy
– F
For example,
l SSpecialty
i lt CConnectt shifts
hift virtually
i t ll allll specialty
i lt volume
l and
d
growth to the PBM
• We are indifferent to channel and manage the business through an

enterprise lens
30
Agenda
31
2016 Guidance: Healthy Enterprise Growth
Full-year 2016
Adjusted EPS $5.73 to $5.88

Year-over-year Growth 11.25% to 14.25%
GAAP Diluted EPS $5.28 to $5.43
Notes:
1. EPS growth estimates exclude acquisition-related transaction and integration costs.
2 Year
2. Year-over-year
over year growth based on midpoint of 2015 guidance
guidance.
3. Estimates assume that the acquisition of Target’s pharmacies and clinics closes at year-end 2015.
4. EPS estimates assume completion of approximately $4 billion in share repurchases in 2016.
5. EPS estimates include dilution of $0.01 in 2016 related to the termination of pension plans. The impact on 2017 is expected to be between $0.10 and $0.15.
32
2016 Guidance: Substantial Free Cash Flow …
Growth Impacted by Acquisitions
in billions Full-year 2016
Operating Cash Flow $7.6 to $7.9
Gross Capital Expenditures ($2.6) to ($2.5)

Sale-leaseback Proceeds $0.3 to $0.2
Net Capital Expenditures Approximately ($2.3)
Free Cash Flow $5.3 to $5.6

Year-over-year Growth Down 7% to 12%
Notes:
1. Year-over-year growth based on midpoint of 2015 guidance.
2 Estimates assume that the acquisition of Target’s
2. Target s pharmacies and clinics closes at year-end 2015
2015.
3. Guidance includes approximately $500 million of cash outflows from acquisition-related transaction and integration expenses.
4. CVS Health finances a portion of its store development program through sale-leaseback transactions. Use of sale-leaseback financing is subject to change
as a variety of financing vehicles for future development are evaluated. This may also result in changes to CVS Health’s definition of free cash flow.
33
Healthy Enterprise Growth Expected to Continue
Operating Profit Adjusted EPS

($, billions) ($)
10.8
to 5.88
10.5 to
5.73
10% 14%
CAGR CAGR
8.0 3.96
2013 2014 2015E 2016E 2013 2014 2015E 2016E
2016 growth expected to be within or above target ranges

Notes:
1. CAGRs are calculated using 2016E midpoint of guidance range.
2. Excludes a $72 million gain from a legal settlement recognized in 2013. Excludes a $521 million loss on early extinguishment of debt during 2014. Excludes
acquisition-related bridge financing, transaction and integration costs in 2015 and 2016E (related to Omnicare and Target).
34
2016 Guidance: Strong Growth in Retail/LTC
Full-year 2016
Same store sales 2.75%

5% to 4.0%
0%
Same store adjusted scripts 3.5% to 4.5%
Gross Profit Margin

g Significant
g decline
Operating Expense (% of revenue) Moderate improvement
Operating Profit Growth 6 25% to 8

6.25% 8.25%
25%
Operating Profit Margin Down 60 bps to 70 bps
Notes:
2. Same store sales and prescriptions exclude revenues from MinuteClinic®, and revenue and prescriptions from stores in Brazil, LTC operations and from
commercialization services.
3 Same store adjusted scripts includes the adjustment to convert 90-day prescriptions to the equivalent of three 30-day prescriptions.
3. prescriptions This adjustment reflects
the fact that these prescriptions include approximately three times the amount of product days supplied compared to a normal 30-day prescription.
5. Expectations exclude acquisition-related transaction and integration costs.
35
2016 Guidance: Even Stronger Growth in PBM
Full-year 2016
Total Adjusted Claims 1.33 billion to 1.35 billion
Gross Profit Margin Moderate decline
Operating Expense (% of revenue) Modest improvement
Operating Profit Growth 9.75% to 13.25%

Healthy enterprise growth in 2016

Notes:
1 Year-over-year growth based on midpoint of 2015 guidance
1. guidance.
2. Total adjusted claims includes the adjustment to convert 90-day, mail choice claims to the equivalent of three 30-day prescriptions. This adjustment reflects
36
Key Drivers of 2016 Expectations
• Reimbursement/pricing pressure and

timing of share gains
• Growth in Specialty a plus
• Mix of business pressures margins
• Net benefit of Omnicare and Target assets
• Smaller incremental benefit from break-open generics
• Smaller incremental benefit from Red Oak Sourcing
37
Mix of Business Lowers Gross Margin %, but
Drives Volumes and Gross Profit $ Over Time
• At enterprise level, lower-margin PBM segment is growing faster

than Retail/LTC segment
• Multiple mix-driven impacts compressing underlying gross margins

within underlying retail business:
– Pharmacy growth is expected to continue to outpace front store growth
– Medicare and Medicaid are becoming g larger
g components
p of the p
patient
mix; Lower margin rate and dollars per scripts, but higher margins per
life due to higher utilization
– The mix of third partyy payors
y is also adverselyy changing
g g in 2016
38
Acquisitions Expected to Help Fuel Growth
• Omnicare expected to deliver ~20¢ to Adjusted EPS in 2016

– ~ 19¢ iincrementally
t ll accretive
ti year-over-year
– Includes associated financing and excludes amortization and
integration expenses
• ~6¢ of Adjusted EPS dilution expected from Target in 2016

– ~9¢ of dilution from reduced 2015 share repurchase and financing
– ~3¢
¢ of accretion from operation
p of assets, excluding
g amortization
and integration expenses
– Pharmacies and clinics expected to be fully integrated and
rebranded within six to eight months
– Significant purchasing synergies through Red Oak beginning in ‘16
• Fewer new store and clinic openings planned in 2016 as Target

assets are integrated
g
39
While the Level of Generic Introductions Ebbs
and Flows Over Time …
Enterprise
E t i profit
fit growth
th
will continue to benefit
f
from generics
i
40
Generics Drive Financial Performance at CVS
Health in Two Ways
Increasingly effective sourcing of

Brand-to-generic
generics in CVS Health’s existing
conversion
base of business
41
1
Generics Remain an Opportunity
Total Brand Market Sales of Expected Generic Launches

($, billions)
23.9
Abilify
16
16.5 Nexium 17 3
17.3
Copaxone Crestor
Celebrex
Namenda Gleevec
Diovan
Zetia
Lovaza 5.5
Seroquel XR 3.6
Viagra
Cialis
2014 2015E 2016E 2017E 2018E
$40.4 billion $26.4 billion Expected

Note:
1. 2014 includes all actual launches; 2015E forward includes all actual launches and only expected launches in total brand numbers whose annual sales exceed
$100M (key launches highlighted) and assumes 6 months pediatric extension on all launches. Forward-looking analysis assumes no “at risk” launches.
Source: IMS Health; company estimates.
42
1
Incremental Break-open Benefit in 2016
Less Than 2015
Total Brand Market Sales of Expected Generic

Launches in Break-open
p Period
($, billions)
14.4 15.5
11.1
8.7
5.0
2014 2015E 2016E 2017E 2018E
Notes:
1. Break-open period for generic launches = 12 months from the point at which there are 3+ viable suppliers in the market (may span 2 calendar years), and
includes significant, “budgeted launch” products only. Brand market sales are at the time of first generic launch; break-open dates on the 15th or later were
rounded to next full month; dates before the 15th credited for that month
month.
$100M and assumes 6 months pediatric extension on all launches. Forward-looking analysis assumes no “at risk” launches.
43
1
Biosimilars Represent an Additional
Opportunity
Total Market Sales
($, billions)
Total brand market sales of Total market sales of specialty

expected generic launches drugs losing exclusivity 19.5
in break-open
break open period
14.4 15.5
11.1
8.7
5.0
2014 2015E 2016E 2017E 2018E 2016E – 2019E
Notes:
1. Break-open period for generic launches = 12 months from the point at which there are 3+ viable suppliers in the market (may span 2 calendar years), and
includes significant, “budgeted launch” products only. Brand market sales are at the time of first generic launch; break-open dates on the 15th or later were
rounded to next full month; dates before the 15th credited for that month
month.
$100M and assumes 6 months pediatric extension on all launches. Forward-looking analysis assumes no “at risk” launches.
44
1
With Incremental Generic Benefits Declining,
Biosimilars Will Become a Bigger Opportunity
Total Market Sales of
• Biosimilars are expected to act more like
Specialty Drugs
brands than generics
Losing Exclusivity
($, billions)
• Expected to increase competition in specialty
categories 19.5
• Expected to present opportunities for

formulary strategies
– Lower cost for payors we support
– Incremental margin opportunities for the
enterprise
2016E – 2019E
Well-positioned to benefit from biosimilars
45
2
Red Oak Sourcing to Add Smaller Incremental
Value in 2016 But Opportunity Remains
Venture withVenture
Cardinalwith Cardinal
Health Health
continues tocontinues to to CVS
provide value
provide
Health in three ways:value to CVS Health in three ways
• Fixed quarterly payments from Cardinal Health … $25.6 million per

quarter
q
– $75 million incremental benefit in 2015; neutral impact year-over-year
in 2016
• Additional milestone payments from Cardinal Health

– $20 million received in 2015; FY16 assumes $60 million
• Scale benefit from significantly higher combined volumes

– Greatest marginal benefit recognized in 2014 and 2015 with initial bolus,
but opportunity remains
46
2
Combined Procurement Has Grown 50%
Since Inception of Red Oak Sourcing
Relative Dollar Amount of Generics
• Red Oak is the largest generic
Procured Using Red Oak
sourcing entity in the U
U.S.
S
~50%
• Generic volumes sourced by Red
Oak continue to grow
A
Acquisitions
i iti
• Scale matters … incremental
Cardinal value continues to be derived
Health Red Oak from additional volume
CVS
Health • More sophisticated procurement
YE 2013 YE 2015 • Introduce competition in

proforma
f
molecules
Increasingly effective generic sourcing will add incremental value
Notes:
1 Underlying data is not adjusted for any market activity (e
1. (e.g.,
g generic launches
launches, generic break opens)
opens).
2. Acquisitions include the generic volumes of Omnicare, the Target pharmacies and Cardinal Health’s acquisition of Harvard Drug Group before accounting for
any synergies derived from being added to Red Oak Sourcing.
Source: CVS Health and Red Oak Sourcing estimates.
47
2016 Earnings Growth Significantly Back-half
Weighted
EARNINGS GROWTH
TIMING FACTORS EARNINGS GROWTH
TIMING FACTORS
Generic introductions / break-opens
L
Leap day
d
Medicare Part D
Easter Shift benefits Q1
Front store strategies’ benefits
to the detriment of Q2
Share repurchases
Tax rate
1st
Half 2nd
Half
48
2016 Q1 Guidance: Challenging EPS Growth Due to
Timing Factors
Q1 2016
Net Revenue Growth 17% to 18.5%
Adjusted EPS $1.14 to $1.17

Year-over-year Growth Flat to up
p 3.0%
GAAP Diluted EPS $1.03 to $1.06
Notes:
1. EPS estimates exclude acquisition-related transaction and integration costs.
3. EPS estimates assume completion of approximately $4 billion in share repurchases during full-year 2016.
49
Agenda
50
Steady State Targets Affirmed
Five-year CAGR (2013-2018)
Net Revenue Growth 9% to 13%
Operating Profit Growth 7% to 9%
Preliminary Adjusted EPS Growth 6% to 8%
Average Annual Cash Available for

Enhancing Shareholder Value
Approximately $8 billion
Share Repurchase Contribution 4% to 6%
Final Adjusted EPS Growth 10% to 14%
51
Capital Allocation Priorities Guide Use of Cash
Organic Growth
Operational
p Investments • Sto
Store
eggrowth
o t aand
d remodels
e ode s
• Continued technology improvements
Maintain capital structure

Capital Structure • Credit rating of BBB+
• Goal
G l off 2.7X
2 7X Adj
Adjusted
t d Debt-to-EBITDA
D bt t EBITDA
Dividends
• 18% target CAGR 2014 through 2018
Capital Returned to • 35% target payout ratio by the end of 2018
Shareholders Repurchase stock
• Take advantage of share valuation, absent more attractive
alternatives
External Investment ‘Bolt-on’ acquisitions in core businesses

• Minimum risk-adjusted return hurdle in mid teens
52
Many Initiatives You’ll Hear About Today to
Continue to Drive Enterprise Profit Growth
Health plans represent significant opportunity to drive value
and capture share, whether or not we’re the PBM
Our specialty business has unmatched assets
and continues to outpace the market
Target and Omnicare acquisitions enable pharmacy
share gains
Near-term opportunities to gain retail share from
market disruption
Low-cost provider status expected to help drive share
Opportunities remain within generics, Red Oak

Sourcing and biosimilars
Strategic acquisitions will continue to supplement growth
53
Demonstrating Value Capturing significant share of new prescriptions

to People, Payors and Providers Ability to pivot and provide value as market evolves
Growing
g the Core,, Driving business decisions with enterprise mindset
Broadening the Base Acquisitions delivering growth into new channels
Always Looking Best positioned to grow with unique assets

Ahead Growth algorithm remains strong
Driving Sustainable Solid long-term growth targets and substantial cash

Enterprise Growth Optimizing capital allocation to drive shareholder value
Maximizing Long-term Shareholder Value

Appendix
pp
, CVS Caremark, Omnicare, CVS/specialty, CVS/caremark,

CVS, Maintenance Choice, Coram, Navarro, Novologix, Omnicare, and
Specialty Connect are trademarks or registered trademarks of CVS
Pharmacy, Inc.
2016 Guidance: Consolidated Income Statement
Full-year 2016
Corporate Segment Expense $860 million to $870 million
Intercompany Eliminations
(% off combined
bi d segmentt revenues))
~ 11.6%
Gross Profit Margin Significant decline
Operating Expense
(% of consolidated revenue)
Moderate improvement
Notes:
56
2016 Guidance: Consolidated Income Statement
Full-year 2016
Net Interest Expense $1.13 billion to $1.14 billion
Effective Tax Rate ~ 39.0%
Weighted Average Shares ~ 1.08 billion
Consolidated Amortization ~ $800 million
Consolidated Depreciation & Amortization ~ $2.5 billion
Notes:
1. EPS estimates assume completion of approximately $4 billion in share repurchases in 2016. Timing of repurchases are expected to be weighted more in the
first half of the year rather than the second half.
57
2016 Q1 Guidance: Segment Performance Reflects
Impact of Timing Factors
Q1 2016

Retail/LTC
Same store sales 4.5% to 6.0%

Same store adjusted scripts 4.75% to 5.75%
Operating Profit Growth 5.0% to 7.0%

armacy
Services

Pha
Operating Profit Growth Flat to up 4.0%

Notes:
1. Same store sales and prescriptions exclude revenues from MinuteClinic, and revenue and prescriptions from stores in Brazil, LTC operations and from
commercialization services.
2 Same store adjusted scripts includes the adjustment to convert 90-day prescriptions to the equivalent of three 30-day prescriptions.
2. prescriptions This adjustment reflects
4. Operating profit growth estimates exclude acquisition-related transaction and integration costs.
58
Steady State Targets:
Key Assumptions to Keep in Mind
Anticipated Impact
F
Favorable
bl iindustry
d t demographics
d hi Utili ti
Utilization
Generic pipeline Gross margin
Utilize compelling scale Gross margin
Retail share gains / SG&A leverage Operating profit
Net-new
Net new PBM contracts Mix/volume/lives
Innovative products and technology Volume/lives
High-return,
High return, bolt-on
bolt on acquisitions Operating profit
Increased compliance requirements / regulations Gross margin
Pharmacy pricing / reimbursement trends Gross margin
59
Driving Enterprise
Growth in an Evolving
Health Care Market
Larry Merlo
President &
Chi f Executive
Chief E ti Officer
Offi
Agenda
Our Compelling Value Proposition
Evolving Health Care Market Creates Opportunities
Strategic Framework for Long-term Enterprise Growth
2
The Most Extensive Suite of Leading Assets …
Retail Mail
Long-term
Care
Retail Specialty
Clinics
Clinical
Infusion
Programs
g

Claims
… enabling us to help deliver superior outcomes at a lower cost
3
Continue to Build One-of-a-kind Health Care
Company with Unmatched Integrated Assets
: Our Competitive Edge
Only company with the ability to impact patients, payors

and providers with innovative, channel-agnostic solutions
Broadest capabilities to holistically manage patients in
fast-growing specialty market
Unparalleled scale in the U.S. makes us a low-cost provider
Largest retail clinic operator in U.S. with 28 million

patient visits to date
Deep clinical
D li i l expertise
ti and i i ht across the
d insights th enterprise
t i
enable us to help deliver superior outcomes at a lower cost
g provider
Leading p of p
pharmacy
y services in long-term
g care
4
Pharmacy Is Our Focus and We’ve Captured 39%
of Past 5
5-Year
Year Prescription Growth
Total U.S. Rx Industry
(Rx dispensed, billions)
~710M 5.5
new Rx
4.8
2010 2015E
Note:
1. All prescriptions dispensed on a 30-day equivalent basis. Does not include Omnicare.
Source: IMS data, CVS Health Internal Analysis.
5
Pharmacy Is Our Focus and We’ve Captured 39%
of Past 5
5-Year
Year Prescription Growth
Total U.S. Rx Industry
(Rx dispensed, billions)
~710M 5.5
new Rx CVS Health
share of
275M market growth
4.8
39%
2010 2015E
Gaining share in a growing Rx industry
Note:
1. All prescriptions dispensed on a 30-day equivalent basis. Does not include Omnicare.
Source: IMS data, CVS Health Internal Analysis.
6
Prescription Growth Through Enterprise Channels
Demonstrates Power of Unique, Integrated Model …
CVS/caremark Claims
(Rx, millions)
~1,165
1,080
905
Channel agnostic
740 offerings allow us to
capture growth in
CVS/caremark claims
while helping to drive
445 470 client savings
275 365
2008 2011 2014 2015E

CVS Health dispensed All other
Notes:
1. CVS Health dispensed prescriptions include CVS/pharmacy, mail, CVS/specialty and Omnicare prescriptions across all years.
2. CVS retail and mail prescriptions on a 30-day equivalent basis.
3. 2015E is midpoint of guidance range.
7
… and Has Allowed Us to Capture 700 bps of
Revenue Share, Equating to $7 Billion
CVS/caremark Revenue
($, billions)
~100
88
59 700 bps
increase
44
=
$7 Billion
48% 50% 53% 55%
2008 2011 2014 2015E
CVS Health share All other
Our outperformance in specialty is a key driver of revenue share gains

Notes:
1. CVS Health share of CVS/caremark revenue equals CVS/caremark revenue dispensed through Enterprise channels (CVS/pharmacy, mail, CVS/specialty,
Omnicare) ÷ total CVS/caremark revenue.
2. 2015E is midpoint of guidance range.
8
Agenda
9
Demographics and Health Reform Continue

1 to Transform the Market
Specialty Growth Will Be Primary Driver

2 of Pharmacy Trend
3 Retailization of Health Care Is Accelerating
4 Increasing Focus on Outcomes
5 Consolidation in the Health Plan Market
10
Health Reform and Demographics Expanding 1
Insured Population
Growth in U.S. Insured Lives
(lives, millions)
306
286 Individuals/Exchanges
35
264 19
14
63 65 Medicaid
53
49 53 62 Medicare
148 151 143 Employer-sponsored
2013 2015E 2019E
Medicare and Exchanges will be primary drivers

Source: CVS Health Internal Analysis; Medicare Trustees Report, 2015; Avalere Medicaid Model, September 2015; McKinsey MPACT 6.2, September 2014;
CBO Public Exchange Estimates, March 2015; Accenture, 2015; Congressional Budget Office. Model assumes no additional Medicaid expansion in the 20 non-
expansion states, further Medicaid expansion could improve long-term covered lives outlook. Figures may not foot due to rounding.
11
Aging U.S. Population Will Drive Prescription 1
Utilization …
U.S. Population Aged 65+ Retail Prescription Utilization
(lives, millions) by
y Age
g Group p
(Rx per member per year)
+18M
lives 65.9
65+ 36.6
56.4
47.8
19-64 16.2
0-18 4.1
2015E 2020E 2025E

Sources:
1. U.S. Census Bureau.
2. Utilization based on CVS/caremark book of business; all prescriptions on a 30-day equivalent basis; excludes Aetna.
12
… and Fuel Growth in Prescription Expenditures 1
U.S. Prescription Drug Expenditures

($, billions)
6.2% 564
CAGR
464
385
328
2015E 2018E 2021E 2024E
Source: CMS, Office of the Actuary, Prescription Drug Expenditures (figures as of July 30, 2015).
13
Pharmacy Is One of the Most Cost-efficient 1
Ways to Manage Overall Health Care Costs
Healthcare Savings from Improved Adherence
(PMPY)
Hyperlipidemia Diabetes Hypertension
ROI $5,883 ROI $5,676
9X 9X
ROI $3,311
5.5X
($601) ($656) ($629)

Added Rx spend Medical and productivity savings
Source: Roebuck MC, Liberman JN, Gemmill-Toyama M, Brennan TA. Medication adherence leads to lower health care use and costs despite increased drug
spending. Health Affairs. 2011;30(1):91-99. Carls GS, Roebuck MC, Brennan TA, Slezak JA, Matlin OS, Gibson TB. Impact of medication adherence on worker
productivity: an instrumental variables analysis in five chronic diseases. JOEM, 2012. Cholesterol savings from generic medications only.
14
CVS Health Can More Broadly Reach Patients 1
Across the Continuum of Care
Standalone Standalone
CVS Health
Retailer PBM
Retail pharmacy
Mail Order
Specialty/Infusion
LTC pharmacy
Retail clinics
Clinical programs
Channel connectivity
15
Growth in U.S. Population Over 85 Underscores 1
Need for Long-term
Long term Care
U.S. Population Aged 85+ Omnicare is a leading pharmacy
(lives, millions) services provider to LTC facilities
• Nationwide footprint with leading

~2X positions in Assisted Living and Skilled
11.9 Nursingg facilities
• Ability to leverage clinical insights to
improve care for patients
7.5
63
6.3 • CVS Health brings capabilities to
better serve patients across the
continuum of care
2015E 2025E 2035E
Source: U.S. Census Bureau.
16


2 of Pharmacy Trend
17
Specialty Growth Will Be Primary Driver of 2
Pharmacy Trend
Addressable Specialty Industry
($, billions)
14% 220
CAGR
130
65
2012 2016E 2020E
Note:
1. Addressable specialty industry currently excludes infused oncology.
Source: NHE, Artemetrx, CVS Health Internal Analysis, 2015.
18
We Are Well-positioned as the Largest and 2
Fastest-growing
Fastest growing Specialty Pharmacy in the U.S. …
CVS Health Specialty Revenue
($, billions)
49
27%
CAGR
40
30
22
19
2012 2013 2014 2015E 2016E

Dispensed Managed ACS (Omnicare)
.
Source: CVS Health Internal Analysis. Does not include specialty revenue from Target pharmacies.
19
… with the Broadest Capabilities to Manage 2
Trend and Improve Care
Formulary • Formulary strategies offer drug exclusions, step therapy

Solutions and new-to-market control
Network • Exclusive Choice network can help reduce trend and

Design drive incremental savings
Utilization • Cost-effective, clinically-appropriate therapy solutions

Management for each patient
Site-of-care
Sit f • H
Home or alternate-site
lt t it iinfusion
f i services
i can
Management dramatically lower costs
Medical
• Novologix platform enables editing and re-pricing for
Claims
Editing medical pharmacy claims
Care
Coordination • Certified nurse case managers provide clinical support
20


2 of Pharmacy Trend
21
Retailization of Health Care Continues with 3
Growth in Consumer
Consumer-directed
directed Health Plans
CDHP Enrollment
Drivers of Trend
(lives, millions)
• Employers looking to CDHPs
37.5 to help control mounting health
25% care costs
CAGR 30 5
30.5 − Employees have accountability in
their health care decision-making
22.0
• Growth in CDHPs also driven by
health insurance choosers on the
12.5 exchanges
6.1
2006 2008 2010 2012 2014
Sources: AIS’s Inside Consumer Directed Care; Kaiser; AHIP surveys.
22
Promoting Healthy Behavior Is Critical in 3
Avoiding Unintended Consequences with CDHPs
As Patient Cost Share Rises…
CVS Health Advantages
 More than 9,500

convenient locations
… sustaining adherence Cost
becomes more challenging
 CVS/minuteclinic
 Innovative plan design
… patients may choose to cut options
corners on their
th i health
h lth and
d
wellness needs to avoid costs  Unique programs:
Pharmacy Advisor
Adherence
 Trusted brand
CVS Health is best-positioned to meet consumer needs

Note:
1. Retail pharmacy locations include more than 1,660 Target locations.
23
Example: Reduced Co-pay for Key Maintenance 3
Medications Improves Adherence in CDHPs
Member Adherence to Prescribed Hyperlipidemia Medication

Initiators Continuers
+130
bps
80% 82%
+560
bps
63%
57%
Without preventative drug list With preventative drug list

Notes:
1 Initiators defined as patients starting therapy during study period
1. period. Continuers defined as patients on therapy before study period
period.
2. Member adherence defined as average monthly proportion of days covered (PDC).
Source: CVS/caremark Enterprise Analytics: Study of CDHP Design Impact on Utilization and Medication Adherence, 2014. Study based on subset of
CVS/caremark book of business.
24


2 of Pharmacy Trend
25
Payment Models Continue to Evolve Away from 4
Fee-for-service
Fee for service and Towards Value
Value-based
based Payments
Medicare Reimbursement by Payment Model
33%
52%
34%
18% Two-thirds in
alternative
30% 33% models
2015E 2018E
Medicare Advantage Value-based FFS Volume-based FFS
By 2018, two-thirds of Medicare payments in alternative models
Source: Burwell S. Setting Value-Based Payment Goals – HHS Efforts to Improve U.S. Health Care. The New England Journal of Medicine. 2015; 372:897-899.
26
Public and Private Payors Taking Steps to 4
Managing Outcomes and Total Cost of Care
Largest health systems

Medicare pledge to move
mandatory bundles 75% of business into
for hips/knees value-based arrangements
2016 2017 2020
Medicare Part D
Enhanced MTM model
Sources:
1. HHS, CMS finalizes bundled payment initiative for hip and knee replacements, November 2015.
2. CMS, CMS announces Part D Enhanced Medication Therapy Management Model, September 2015.
3. Health Care Transformation Task Force, Major Health Care Players Unite to Accelerate Transformation of US Health Care System, January 2015.
27
CVS Health Can Support Health Systems Across 4
the Payment Continuum
Sacramento,
Birmingham,
AL
Evolving Contracting Arrangements CA
Fee for FFS with Bundled Shared Shared Global

Service Pay for Payments Savings Risk Capitation
(FFS) Performance
28
Full Range of Tools and Services to Support 4
Differentiated Needs of Providers
Health
Hospital
CVS/minuteclinic Epic EMR Engagement
Transitions
Engine
Complementary health Enhanced connectivity Powerful analytics Assisting patients to

care services to the health care capabilities avoid adherence
system lapses
Wellness and chronic Essential in helping
care support >60% of Americans manage population Enhanced care
have Epic
p record health coordination
Well-positioned to excel regardless of how market evolves
29
CVS Health Best-in-class Tools to Drive Adherence 4
Medication Possession Ratio

Diabetes
Di b t Cholesterol
Ch l t l Hypertension
H t i
Therapy Therapy Therapy
+650
+580
83 bps 84
bps
+700
bps 80
78
77
73
Top 3 CVS/ Top 3 CVS/ Top 3 CVS/

Retail pharmacy Retail pharmacy Retail pharmacy
Adherence for these common conditions can drive Star ratings
Note:
1. Adherence measured by Medication Possession Ratio, calculated as total days supply divided by total days in evaluation period.
Source: CVS Health Internal Analysis, based on rolling 12 month period: November 2014 to October 2015.
30
Largest
CVS Health
MedCan
D PDP
Directly
to Achieve
Impactaa4-Star
Significant
Rating 4
Portion
for the 2016
of Star
Plan
Metrics,
Year Driving Outperformance
Largest PDPs by Enrollment
(lives, millions)
Star
Rating
OptumRx 5.4 3.0
CVS Health 45
4.5 40
4.0
Humana 4.4 3.5
Express Scripts 28
2.8 40
4.0
CIGNA 1.5 3.0
Aetna 1.5 3.0
WellCare 1.0 2.6
Note:
1. Star Rating based on weighted average enrollment by parent organization. Only plans that were CVS/caremark managed for the 2016 measurement period
and received a Star rating were included.
Source: CMS (membership figures as of October 9, 2015), CVS Health Internal Analysis.
31
CVS Health Can Directly Impact a Significant 4
Portion of Star Metrics, Driving Outperformance
Largest PDPs by Enrollment SilverScript is excelling…
(lives, millions)
Star • O
Only
l PDP with
ith >50%
50% llow-
Rating
income-subsidy lives to
OptumRx 5.4 3.0 achieve 4 Star rating
CVS Health 45
4.5 40
4.0 And we’re helping clients
Humana 4.4 3.5 achieve their goals…
Express Scripts 28
2.8 40
4.0 • Ability
y to directlyy impact
p more
than 80% of Med D and 55% of
CIGNA 1.5 3.0 MAPD Star metrics
Aetna 1.5 3.0 g p

• Client lives in high performing
g
plans: 73% vs. 49% for the
WellCare 1.0 2.6 overall market
Note:
1. Star Rating based on weighted average enrollment by parent organization. Only plans that were CVS/caremark managed for the 2016 measurement period
and received a Star rating were included.
Source: CMS (membership figures as of October 9, 2015), CVS Health Internal Analysis.
32


2 of Pharmacy Trend
33
We Can Partner with Health Plans in a Multitude 5
of Ways to Drive Value
Strong
Broad service Pharmacy y is Unique
q abilityy
procurement
portfolio to our focus and a to leverage
capabilities and
support plan key lever for consumer
claims scale
needs whether managing insights
makes
or not we are overall health to improve
us a low-cost
the PBM costs care
provider
34
After Consolidation, Regional and Blues Plans 5
Will Still Manage More Than Half of Total Lives
Humana
Aetna Aetna
Cigna
Anthem
Anthem Nationals 46%
United United
Regionals
54%
Blues
Market Today Future Market
35
We Dispense 8X to 11X the Prescription 5
Volume of the Proposed Combinations …
2015 Estimated Rx Volume
(Rx dispensed, millions) CVS Health Advantages
• Generic purchasing scale makes

1,350 us a low-cost provider
• Scale is further enhanced by Red

Oak sourcing
~8X ~11X
170 120
CVS Aetna Anthem

Health Humana Cigna
Notes:
1. Estimated dispensed Rx include prescriptions filled at CVS/pharmacy and mail order and specialty prescriptions filled at CVS/caremark.
2. Estimated dispensed Rx also displayed on a pro forma basis to include full year 2015 Dispensed Rx volume from Omnicare and Target.
Source: CVS Health Internal Analysis, Company disclosures. All prescriptions dispensed on a 30-day equivalent basis.
36
… and We Manage 2X to 3X the Claims 5
Volume of the Proposed Combinations
2015 Estimated Claims Volume
CVS Health Advantages (Rx managed, millions)
• Substantial managed claims
volume supports negotiations for 1,165
rebates / formulary placement
~2X
2X ~3X
• Creates value as majority of
rebates are passed to clients 600
480
CVS / Aetna Anthem

caremark Humana Cigna
Note:
1. Estimated managed claims include all CVS/caremark network claims plus specialty and adjusted mail claims.
Source: CVS Health Internal Analysis, Company disclosures. CVS/caremark claims represent midpoint of guidance range.
37
We Dispense 8X to 11X and Manage 2X to 3X the 5
Volumes of the Proposed Combinations
2015 Estimated Rx Volume 2015 Estimated Claims Volume
(Rx dispensed, millions) (Rx managed, millions)
1,350 1,165
~2X
2X ~3X
~8X ~11X 600
480
170 120
CVS Aetna Anthem CVS / Aetna Anthem

Health Humana Cigna caremark Humana Cigna
Scale is critical to being a low-cost provider
Note: Estimated dispensed Rx include prescriptions filled at CVS/pharmacy and mail order and specialty prescriptions filled at CVS/caremark.
CVS/caremark Dispensed Rx also
displayed on a pro forma basis to include full year 2015 Dispensed Rx volume from Omnicare and Target. Estimated dispensed prescriptions on a 30-day
equivalent basis. Estimated managed claims include all CVS/caremark network claims plus specialty and adjusted mail claims.
Source: CVS Health Internal Analysis, Company disclosures. CVS claims represent midpoint of guidance range.
38
Agenda
39
Our Strategic Business Imperatives
Aggregate Grow Execute with Drive Enterprise

Lives Share Excellence Innovation Focus
Grow the core, Broaden the base
40
Our Strategy for Long-term Enterprise Growth
5
4
Opportunistic bolt-on acquisitions
Continued innovation in drug procurement and

3 supply chain efficiencies
2
Enhance patient engagement
Deepen relationships with payors and providers

1 to help reduce cost and improve outcomes
Add capabilities
p to enhance core business
41

l ffor health
h lth care partners
t
Growing
p g core p
g

t d i innovative
i ti products
d t and
d making
ki llong-term,
t
Ahead value-enhancing investments

Driving Enterprise Growth in an Evolving Health Care Market

Endnote
1. , Omnicare, CVS/caremark, CVS/pharmacy, CVS Health, CVS/specialty,

CVS/minuteclinic, and Health Engagement Engine are trademarks or registered trademarks of CVS
Pharmacy, Inc.
43
Delivering Value Today,
Ensuring Growth
for Tomorrow
Jon Roberts
President CVS/caremark
President,
Agenda
Demonstrating
Demonstrating Value:
Value:
PBM
PBM Performance
P f
Performance Highlights
Hi hli ht
Highlights
Addressing Clients
Clients’ Top Concern: Cost
Ensuring Growth: Our Integrated Model and the

E l i Health
Evolving H lth Care
C Market
M k t
2
Continued Strong PBM Performance
Net Revenue Operating Profit

($, billions) ($, billions)
121.5 15.0% 4.4

15.6% CAGR
CAGR
3.5
88.4
58.9 2.2
2011 2014 2016E 2011 2014 2016E

Note:
1. 2016E based on midpoint of 2016 guidance.
3
Another Successful Selling Season:
Gross New Business Wins of $13.5 Billion for 2016
$1.8B13 5B
13.5B $11.2B
IN NEW
BUSINESS WINS
State of Oklahoma
State
St t off
Illinois Health Plan
Government & Union
Employer
Notes:
1. As of 12/04/2015.
2. Gross wins exclude Medicare Part D SilverScript individual products.
4
Net New Client Business of $11.5 Billion for 2016
with 98% Retention
Revenues
($, billions) 60% of client
non-renewalsl
13.5 0.8 due to acquisition
and retirees
0.4
0.8
11.5
Business Not Renewed
Gross New Acquired Moved to Exchange Competitive Net New Business

B i
Business (P i
(Primarily
il RRetirees)
ti ) / Other
Oth
Expect another highly successful welcome season

Notes:
1. As of 12/04/2015.
2. Gross wins exclude Medicare Part D SilverScript individual products.
5
Gross New Business Creates Share Gain Opportunity
GROSS WINS BY CHANNEL ENTERPRISE SHARE
54%
$0.6B
Mail Choice
28%
$1.8B data
Specialty 22%
$11.1B
$
Retail New Existing Existing
Networks Business Health Plan Employer
Notes:
1. Enterprise share represents the percent of Rx volume dispensed through a CVS Health enterprise channel (Mail, Specialty, Retail).
2. All claims on a 30-day equivalent basis.
6
Client Priorities: Prescription Drug Cost
Top Concern Across Segments
UTILIZATION
AVOIDING MEDICARE MEMBER CLIENT PRESCRIPTION
& CLINICAL
DISRUPTION EXPERTISE SERVICE SERVICE DRUG COST
PROGRAMS
LEVEL OF IMPORTANCE
7
Our Model Provides Flexibility to
Address
dd ess C
Client
e t Priorities
o t es
Employers
UTILIZATION
& CLINICAL
PROGRAMS
LEVEL OF IMPORTANCE
8
Address
dd ess C
Client
e t Priorities
o t es
Health Plans
UTILIZATION
& CLINICAL
PROGRAMS
LEVEL OF IMPORTANCE
9
Address Client Priorities
Medicare
UTILIZATION
& CLINICAL
PROGRAMS
LEVEL OF IMPORTANCE
10
Multi-segment PBM Market Demands Flexibility
Employers
p y Government Health
and Unions Plans
Expertise, flexibility and proven performance support our continued growth
11
Delivering on Client Priorities:
Clients and Members Highly Satisfied with Service
2015 Client Satisfaction 2015 Member Satisfaction
96% 95%
CVS/caremark scored highest in overall customer satisfaction

in 2015 PBMI Survey
Source: PBMI 2015 Pharmacy Benefit Management Customer Satisfaction Report; PBMs with >20M members.
12
Delivering on Client Priorities: Medicare
Consultative Services Competitiveness
Actuarial
A t i l / bid,
bid formulary
f l Progressive and
and plan integrated strategies to
design support help manage trend
MEDICARE
HEALTH
PLAN
Star Ratings
g Compliance
p
73% of client lives are Robust compliance

4 to 5 Star pplans support for complex
regulatory environment
Note:
1. Star ratings for 2016 based on internal analysis of CMS data released October 2015. Star rating based on weighted average enrollment by parent
organization. Only plans that were CVS/caremark managed for the 2016 measurement period and received a Star rating were included.
13
Delivering on Client Priorities: Clinical Programs
MEDICATION ROBUST UTILIZATION

RECONCILIATION PROGRAMS
48% reduction in hospital

p 6% savings for medical
readmissions; $3,300 and pharmacy
savings per patient benefits from
counseled specialty utilization
management
SPECIALTY CARE
PHARMACY ADVISOR MANAGEMENT NURSE
Pharmacist counseling: Enhanced outreach:

4% increase in 60% engagement
adherence; 7.5% rate; reduce
reduction in gaps hospitalizations
in care by 23%
Note:
1. Savings quoted may vary based on various factors including things such as plan design, programs adopted and demographics.
Sources:
Pharmacy Advisor : CVS/caremark internal data
data, 2013
2013. Medication Reconciliation: CVS/caremark sample study
study, 2014
2014. Robust UM (integrated PA)
CVS/caremark Specialty Client Solutions and Trend Management, 2013, internal analyses for estimated program savings. Specialty engagement source:
Accordant® - Comprehensive Data Warehouse; SQL Server 2008. Greensboro, NC: care management Health Services, a CVS/caremark Company; 2013
www.hpminstitute.org/content/wellness-and-disease-management-podcast-industry-specialist-judy-mueller.
14
Agenda
PBM Performance
P f Highlights
Hi hli ht

Addressing Clients

E l i Health
Evolving H lth Care
C Market
M k t
15
Size and Scale Ensures Competitive Cost
Generic • Sourced through Red Oak, the largest generic sourcing

Purchasing entity in the U.S.
Formulary • $6.4B in incremental client savings ‘12-’16E from our

Management leading formulary management strategy
Specialty • Largest specialty pharmacy; able to manage cost across

Pharmacy pharmacy and medical benefit
Competitive • 1.34B adjusted claims estimated in 2016 through our

Networks multiple networks
Cost of • Streamlining continues to deliver value as volume grows

Service • Technology investments enable regulatory compliance
Note:
1. 2016E based on midpoint of 2016 guidance.
16
Comprehensive Program Addresses 3 Possible
Areas of Fraud, Waste and Abuse
MEMBER
• Medication abuse / misuse CVS/caremark provides:
• Doctor shopping
• Pharmacy shopping • Active and retrospective
claims monitoring
PRESCRIBER • Review of high-risk
high risk
prescribing patterns
• Illegal or irresponsible prescribing • Robust network pharmacy
credentialing program
PHARMACY • Pharmacy
Ph audits
di
• Fraudulent billing • High- and low-touch
interventions
• Inaccurate dispensing
• Drug diversion
For 2015, CVS/caremark pharmacy audits will lead to more than $240M in
savings and recovery of incorrect
incorrect, improper or fraudulently-billed claims
Source: CVS/caremark internal data.
17
2014 Double-digit Pharmacy Trend: A Call to Action
IMPACT TO TREND
1 0%
1.0%
2.0%
3.4% (5.9)%
11.8% 1.5%
2.1%
7.7%
2014 Book Non- Specialty Utilization Hep C Compounds Generic Drug Mix
of Business specialty Brand Inflation
Brand Inflation
Trend
Inflation
Note:
1. Trend is net of rebates.
Source: CVS Health Enterprise Analytics, Book of Business Trend Cohort.
18
RxInsights: Client-Specific Reporting on Trend
Performance and Key y Metrics
EXECUTIVE SUMMARY
Note:
1. Sample data, actual results may vary.
19
CVS HEALTH - COMPREHENSIVE SOLUTIONS TO MANAGE TREND
IDENTIFY EXPLORE MANAGE OPTIMIZE
EMERGING ROOT CAUSES THROUGH CHANNEL
TREND FORMULARY
Interactive RxInsights
Individual classes are p
plotted below. The g
graph
p is showing
g the relationship
p between Cost and Contribution to Trend. Size represents
p the Cost/Days
y Supply
pp y for a g
given class.
CLASS ANALYSIS BY CONTRIBUTION TREND

5%
4% 11.2%
3%
2%
RxInsights
1%
0% Demo
-1%
-2%
-3%
$0 $1 $2 $3 $4 $5 $6 $7 $8
GROSS COST PMPM TREND
$
$120
$100
$80
©2015 CVS Health and/or one of its
J
January 2014 M 2014
May S t b 2014
September J
January 2015 M 2015
May S t b 2015
September affiliates: Confidential and Proprietary
Strong Adoption of Key Cost Management Solutions
… Meaningful Opportunity Remains
Total Lives
Current Lives Savings
Opportunity
MAINTENANCE
CHOICE 23M 44M Up to 4%
TOTAL NETWORK
STRATEGIES 37M 75M Up to 4%
FORMULARY
STRATEGIES 25M 53M Up to 12%
EXCLUSIVE
SPECIALTY 35M 50M Up to 7%
SPECIALTY MEDICAL
MANAGEMENT 10M 41M Up to 13%
Notes:
1 Current Lives includes 2016 known enrollments
1. enrollments.
2. Exclusive Specialty savings apply to specialty spend under the pharmacy benefit.
3. Specialty Medical Management opportunity based on Health Plan lives in PBM book of business; savings apply to specialty spend under the medical benefit.
4. Savings results will vary based on a variety of factors including demographics, plan design and other programs implemented by the client.
21
Adoption of Our Plan Designs Helps Reduce Plan
Costs While Growing Enterprise Share
Enterprise Share Growth in a Multi-state Health Plan
11.4 pp
increase
31.3%
26.7%
19.9%
2010 2013 2016E
Plan has implemented programs that reduce plan and member cost
and grow enterprise share
22
2014 Year-to-date
2015 Double-digit Trend
Pharmacy
Summary
Trend: A Call to Action
JAN THROUGH SEP COMMERCIAL TREND
11.8% 1.6% 0.8%

(0.3)% (1.9)%
2.3% (2.8)%
6.4% 6 7%
6.7%
2015
2014
YTDBook
Book Non- Specialty Utilization Hep C Compounds Generic Drug Mix
of Business specialty Brand Inflation
Brand Inflation
Trend
Inflation
Note:
1. Trend is net of rebates.
Source: CVS Health Enterprise Analytics, Book of Business Trend Cohort.
23
Agenda
PBM Performance
P f Highlights
Hi hli ht
Addressing Clients

E l i Health
Evolving H lth Care
C Market
M k t
24
Driving Market Evolution: Government Programs
Linking
g Payments
ay e ts to Qua
Quality
ty
50% of traditional
1 in 3 Medicare spending
Americans are currently will be linked to quality incentives by 2018
covered by government- % OF MEDICARE 50%
SPENDING TIED TO
sponsored
p health QUALITY INCENTIVES
insurance programs
20%
$1off every $2
spent on health care goes
through Medicare and
M di id
Medicaid 2014 2018
To succeed, payors and providers must align with CMS focus on quality
Notes:
1. Health Affairs – National Health Expenditure Projections 2014-2024, July 2015.
2. Modern Healthcare, January 26, 2015.
25
Our Model Uniquely Meets Evolving Needs
Integrated Assets
and Ability to Improve Outcomes
Position Us for Growth
Data and Effective outreach Connectivity and Capabilities to

analytics to guide to consumers coordination reduce risk of
interventions between visits to with providers to readmissions
and help optimize the doctor help them succeed and support
outcomes in new risk models transitions in care
1 2 3 4
Supporting market initiatives linking payments to quality
26
We Make Data Actionable and Deliver It When and
Where Interventions Can Do the Most Good
Patient Providers Hospitals Post-acute Care
Optimal Interventions
P
Powered d by
b the
th
Health Engagement Engine
Foundation of rich data and analytic expertise
27 1 Data/Analytics Guide Interventions

CVS Health Uses Pharmacy Data to Help Providers
Reduce Risk and Improve Quality
Which of my Risk Adjustment Targeting:

patients are high
p g Accurate assessment of p
population
p risk to help
p
risk? optimize reimbursement
Who will drop Adherence Prediction:

off therapy Assess a patient’s risk of non-adherence to more
and when? effectively target adherence interventions
Who could incur Vulnerable Patient Index:

Identify patients at high risk of steep increase in health
high costs in the care costs to enable interventions to improve adherence,
next 12 months? safety and outcomes
Vulnerable patients have 3.5X higher cost of care

Note:
1. CVS Health uses and shares data as allowed by applicable law, our agreements and our information firewall.
Source: CVS/caremark internal analysis.
28 1 Data/Analytics Guide Interventions

Connected Assets Support Effective
Consumer Outreach
CVS/omnicare ™
Adherence Medication
counseling reviews for high Omnicare
Omnicare
risk patients Wellness support support
Supportfor for
Support for
self-management Specialty condition Transitions
transitions inincare
Care
of chronic conditions management
Note:
29 2 Effective Consumer Outreach

Connecting with At-risk Providers and Extending
the Care Team to Help Them Succeed
Adh
Adherence opportunities
t iti
Intervention
results
Medication
M di ti and d
allergy info
MinuteClinic
Provider
visit summaries
Affiliated with 60+ health systems to share data and support patient
interventions and better outcomes
Note:
30 3 Provider Connectivity
Supporting Patients After Discharge from Hospital:
Care Transitions Challenge the System
1/5 readmitted within 30 days
3/4 of these readmissions

are preventable
2/3 readmissions related to medication

issues
Costs: $12B per year
Sources:
1. Health Affairs Health Policy Brief, November 12, 2013, Medicare Hospital Readmission Reduction Program.
2. Annals of Internal Medicine; The Incidence and Severity of Adverse Events Affecting Patients after Discharge from the Hospital, 2003.
31 4 Transitions in Care
Supporting Patients After Discharge from Hospital:
Reducing Risk, Improving Outcomes
Medication Reconciliation by Pharmacist

Shown to reduce readmissions by 48%
Home Infusion Services

Earlier discharge; alternative, lower-cost sites of care
High-touch Specialty Services

Adherence support; rare disease management
Skilled Nursing or Long-term Care

Helping patients through complex changes in
regimen as they transition
Only CVS Health can provide this end-to-end solution

Note:
1. CVS/caremark sample study, 2014.
32 4 Transitions in Care
One-of-a-kind: Assets and Capabilities to Connect
and Coordinate with All Stakeholders
LARGEST LARGEST SPECIALTY

RETAIL CLINIC PHARMACY
Integrated
Model Helps
RETAIL PHARMACY Lower Costs LARGEST HOME
FOOTPRINT and INFUSION
Improve
Outcomes
INDUSTRY-LEADING LEADING POST-ACUTE

PBM PROGRAMS PHARMACY SERVICES
33
Demonstrating Value Industry-leading trend management tools / solutions

to People, Payors and Providers Provider and patient support that improves outcomes
Growing
g the Core,, Flexibility to meet evolving market needs
Broadening the Base Adding value with new capabilities
Always Looking IInnovative

ti solutions
l ti foster
f t expanded
d d payor and
d
Ahead provider relationships
Driving Sustainable Integrated assets serve expanding market segments

Enterprise Growth and evolving payment models
Delivering Value Today, Ensuring Growth for Tomorrow

Endnote
1. , CVS/caremark, CVS Caremark, RxInsights, Maintenance Choice, Health Engagement

Engine and CVS/omnicare are trademarks or registered trademarks of CVS Pharmacy, Inc.
35
Capitalizing on Growth
Opportunities in Specialty
Alan Lotvin, M.D.

Executive Vice President,
CVS/specialty
Agenda
CVS/specialty Differentiated Assets
Future Growth Initiatives
2
CVS/specialty Has Grown Faster Than the Industry
CVS Health Specialty Revenue

($, billions)
49
CVS/specialty Managed
40
30
22
19
2012 2013 2014 2015E 2016E
.
Source: CVS Health Internal Analysis, does not include specialty revenue from Target pharmacies.
3
CVS/specialty Has Grown Faster Than the Industry
CVS/specialty Dispensed Revenue

($, billions)
35
32.3%
CVS/specialty
27 CAGR
20
14 19.3%
11 Industry
CAGR
2012 2013 2014 2015E 2016E
.
Source: CVS Health Internal Analysis, does not include specialty revenue from Target pharmacies.
4
CVS/specialty Is Growing Faster Than Nearest
Competitor to Become the Largest Specialty Pharmacy
Specialty Pharmacy Share

2013 2014
25% 26%
33% 35%
300 bps 700 bps
point lead for
point lead for
CVS/specialty
p y
competitor
2% 19%
2% 28% 3%
10% 6%
11%
$63B Market $78B Market
Competitor A Competitor B Competitor C Competitor D All other
Source: 2013 Share: Pembroke Consulting estimates. This chart appears as Exhibit 14 in the 2013-14 Economic report on Retail, Mail, and Specialty
Pharmacies, Drug Channels Institute, January 2014; Proforma for UHC and Catamaran Combination. 2014 Share: Drug Channels, The Top 10 Specialty
Pharmacies of 2014.
5
Agenda
6
The Traditional Specialty Pharmacy Model Now
Represents ‘Table
Table Stakes
Stakes’ in the Industry
CLINICAL CLINICAL
LOGISTICS
MANAGEMENT MONITORING
Side Effects Risk Evaluation and Cold Chain

Mitigation Strategies Shipping
Injection Training
(REMS)
Benefit and Financial
Adherence
Adverse Event Support
Reporting
7
CVS Health’s Enterprise Assets ‘Raise the Bar’ in
Specialty Pharmacy
Coram, Infusion Services
Novologix, Medical Specialty Cost
M
Management t M
Management
t
Narrowest Exclusion Formulary
ONLY
Accordant, Care Management Quality
Q y
Specialty Connect
Best-in-class Mobile App
pp Access
Access to 99% of Specialty Drugs
Clinical Quality Programs

TRADITIONAL
O
Adherence Programs
SPECIALTY
Preferred Specialty Networks
PHARMACY Specialty Dispensing
8
CVS/specialty Model Starts with National Footprint
CVS/specialty:
CVS/specialt
CVS/
CVS/pharmacy:
T
Target:
Total th12
t hmoreh than
more
t l CVS/pharmacy:
CVS/ th 7,900
than
1 660
1,660
more 7than
th9009,500
9 500
9 Access
CVS/specialty:
CVS/specialt
T
Target:
Total th12 1,660
t moreh than
t l CVS/pharmacy:
CVS/ 1 660
more than
th 9,500
9 500
10 Access
CVS/specialty:
CVS/specialt
Total CVS/ h 12
T t l CVS/pharmacy: more than
th 9,500
9 500
76% of the U.S. population lives within 5 miles of a CVS/pharmacy
11 Access
CVS/specialt 12
CVS/specialty:
Footprint enables streamlined operations, reduced shipping costs and

improved efficiency
12 Access
Our Specialty Connect Model Improves the Patient
Experience with Convenience
HIGHLY-UTILIZED
HIGHLY UTILIZED DELIVERY
DELIVERYOF CLINICAL
CHANNEL CHOICE SUPPORT
~500
specialty patients a day
100,000+ Total Patients

Note:
1. In-store pick up currently is not available in Arkansas, Oklahoma and West Virginia. Some states require first fill prescriptions to be transmitted directly to the
di
dispensing
i specialty
i l pharmacy.
h O
Other
h restrictions
i i may apply.
l PProducts
d available
il bl through
h h the
h SSpecialty
i l C Connect program are di dispensed db
by CVS/
CVS/specialty
i l iin
compliance with all applicable state laws.
Source: "The Adherence Impact of a Program Offering Specialty Pharmacy Services to Patients Using Retail Pharmacies.”, Journal of the American Pharmacists
Association. In press.
13 Access
Our Specialty Connect Model Improves Patient
Experience
p with Flexibility
y
HIGHLY-UTILIZED
DELIVERYOF CLINICAL
CHANNEL CHOICE SUPPORT
54%
prefer to pick up at
CVS/pharmacy
Note:
di
dispensing
i specialty
i l pharmacy.
h O
Other
h restrictions
i i may apply.
l PProducts
d available
il bl through
h h the
h SSpecialty
by CVS/
CVS/specialty
i l iin
14 Access
Our Specialty Connect Model Improves Patient
Experience with Better Outcomes
HIGHLY-UTILIZED
DELIVERYOF CLINICAL
CHANNEL CHOICE
C OC SUPPORT
S O
11.4% adherence
improvement
Note:
di
dispensing
i specialty
i l pharmacy.
h O
Other
h restrictions
i i may apply.
l PProducts
d available
il bl through
h h the
h SSpecialty
by CVS/
CVS/specialty
i l iin
15 Access
Our Best-in-class Mobile App Further Improves
Experience for Specialty Patients
SIMPLE COMMUNICATIONS
 Choice of Delivery
 Text Messaging
EASY TO LOGIN
ONE-STEP REFILL
16 Access
 Text Messaging
EASY TO LOGIN
ONE-STEP REFILL
17 Access
 Text Messaging
EASY TO LOGIN
 Fingerprint Touch ID
 Facial Recognition
ONE-STEP REFILL
18 Access
 Text Messaging
EASY TO LOGIN
ONE-STEP REFILL
19 Access
 Text Messaging
EASY TO LOGIN
ONE-STEP REFILL
 Scan to Refill
 Refill Reminder
20 Access
 Text Messaging
EASY TO LOGIN
ONE-STEP REFILL
 Scan to Refill
 Refill Reminder
21 Access
Enterprise Assets Make CVS/specialty the
Pharmacy of Choice When Patients Have Options
SPECIALTY PHARMACY SHARE OF PATIENT-DIRECTED BUSINESS
ORAL ONCOLOGY HEPATITIS C

Indexed National Market Share
Other specialty pharmacies CVS/specialty Nearest competitor

(26 pharmacies in distribution network)
Source: CVS/caremark Internal Analytics.
22 Access
Our Assets Also Make CVS/specialty a Pharmacy of
Choice in Limited Manufacturer Networks
Blincyto
y Uptravi
p
Infused anti-cancer Oral pulmonary arterial
therapy hypertension (PAH) therapy
Distribution Network: 1 of 2 Distribution Network: 1 of 2

and National Infusion and PBM Affiliated
P
Provider
id Ph
Pharmacy
Key to win: Key to win:

Coram CVS/specialty Infusion Services Cli i l expertise
Clinical ti iin PAH
PAH, Enterprise
E t i assets
t
Our unique model gives us access to 99% of specialty drugs
23 Access
Effective Quality and Cost Management Solutions
Are
e Resonating
eso at g witht Payors
ayo s
Nearly 1,000
clients in the
past 2 years
have selected
CVS/specialty
as their
Exclusive
Specialty
P
Provider
id
24 Quality and cost management

Effective Quality and Cost Management Solutions
Are
e Resonating
eso at g witht Payors
ayo s
Lives, millions
Enrolled lives in 2014 182
Enrolled lives in 2016
Eligible lives
42
41
37
22
11
8
1.3 0.2
Accordant Specialty Formulary Specialty Medical
Management

Adoption of Our Cost Management Solutions
Results in Significantly Lower Trend
Illustrative
Ill t ti IIntegrated
t t d
Trend PA
Site
20% 6% of
Claims
Care
Editing &
3% Pricing Specialty
Formulary Generic
2% Pricing
2% Programs Models Exclusive Remaining
1% Network
1% Trend
1%
4%
Source: CVS/caremark Specialty Client Solutions and Trend Management, 2014, internal analyses for estimated program savings.

Adoption of Our Cost Management Solutions
Results in Significantly Lower Trend
Illustrative Prior
Trend Authorization Employer Client Example
34% 14%
Specialty
Site
Formulary
of
Care 4% Generic
Programs
Claims Exclusive
Editing 3% N t k Remaining
Network
Trend
& Pricing 1%
12%
Pricing
Models
Comprehensive Trend Management Tools
Source: CVS/caremark Specialty Client Solutions and Trend Management, 2014, internal analyses for estimated program savings.

Agenda
28
Our Strategic Business Imperatives
Aggregate Grow Execute with Drive Enterprise

Lives Share Excellence Innovation Focus
FORMULARY PIPELINE ONCOLOGY CAPABILITIES
Grow the core, Broaden the base
29
Aggregating Lives Requires Innovative Cost
Management Programs: Value
Value-based
based Contracting
CONTRACTING INDICATION-SPECIFIC AUTOIMMUNE

STRATEGIES APPROACH
O C THERAPIES
S
Value Simple Rheumatoid

Based No complex Arthritis:
analyses needed
9
Effective
Price Increases competition Crohn’s:
Protection Net price better aligned 4
with clinical value
A il bl 2016
Available P
Psoriasis:
i i
Exclusion
Formulary
for CVS/caremark
clients
4
30 Aggregate Lives
Growing Share in Growing Segments:
Outperform Upon Launch with Proactive Strategies
Indexed Growth:
Key Tactics
CVS/specialty Share
1.7 1.7
• Establish Centers of Excellence
• Incorporate into
Specialty Connect
1.5 1.5
• Engage physicians with
differentiated service model
• Pre-launch pharmacy training
Multiple Oncology Idiopathic Hepatitis C • Align

Ali enterprise
t i services
i
Sclerosis Pulmonary
Fibrosis
CVS/specialty Indexed Performance
Note:
1. CVS/specialty share is based on internal analysis and IMS data.
31 Grow Share
Strong Pipeline Creates Growth Opportunity for
CVS/specialty in Newly Launched Products
ROBUST PIPELINE: ANTICIPATED SPECIALTY AGENTS IN 2016-2018
New Drugs
238
ANTICIPATED BLOCKBUSTER DRUGS:
NSC Lung Cancer Breast Cancer Liver Disease (NASH) Alzheimer’s Disease
rociletinib ribociclib obeticholic acid aducanumab
(2016) (2017) (2018) (2018)
Note:
1. NSC (Non-small Cell) NASH (Nonalcoholic Steatohepatitis)
32 Grow Share
Oncology Remains Key Pain Point for Payors:
CVS/specialty Developing Innovative Approach
AVERAGE EPISODE SPEND
BY PROVIDER: BREAST CANCER FIVE MODIFIABLE COST FACTORS
Outliers 7-8X median

Regimen Selection
Duration of Therapy
Use of Generics
75th percentile: $60K
$30K Median: $42K Site of Care
25th percentile: $30K Use of Supportive

Drug Related Cost per Episode Agents
33 Drive Innovation
Oncology Remains Key Pain Point for Payors:
CVS/specialty Developing Innovative Approach
AVERAGE EPISODE SPEND CVS/SPECIALTY VALUE-BASED
BY PROVIDER: BREAST CANCER APPROACH
 Focus on drug and related costs
 Collaborate with oncologists,

aligning to the highest value
treatment
Reduced
R d d
 Reduce variability in expense with
variability capitated risk program for plans
Drug Related Cost per Episode
34 Drive Innovation
Adding New Capabilities to the Enterprise
Augments Organic Growth Strategies
Infusion Share Industry Dynamics
• More people ‘aging in place’

5% 5%
6% • Home as lowest-cost site
of care
10%
• Administrative burden for plans
74% • Enhanced quality standard, 503B,
most stringent in the industry
CVS/specialty All others

Infusion Services
Infusion A Infusion B Infusion C
Source: HarrisWilliams&Co – Home Infusion Industry Overview, June 2014.
35 Enterprise Focus
New Relationship with Leading Social Network for
Patients with Chronic Disease
MyHealthTeams
36 Enterprise Focus
New Relationship with Leading Social Network for
Patients with Chronic Disease
300K 48%
Registered Users Active Users
Creating
Increasing
Awareness
and Engagement Script Growth
37 Enterprise Focus
Demonstrating Value Improving specialty patient and provider experience

to People, Payors and Providers Advanced trend management solutions for clients
Leading expertise and position in all specialty

Growing
g the Core,, segments
Broadening the Base Strategic acquisitions to enhance product position
Always Looking Innovating to meet customer and patient needs

Ahead Expanding into social media; developing oncology
Driving Sustainable Balanced growth portfolio

Enterprise Growth Scalable operating model
Capitalizing on Growth Opportunities in Specialty

Endnote
1. , CVS/specialty, Coram, Novologix, Accordant, CVS/pharmacy, and Specialty Connect

39
Changing the Face of
Retail Pharmacy Through
Innovation
Helena Foulkes
President CVS/pharmacy
President,
Agenda
Strong Core Performance
Expanding Our Footprint
Reinventing Retail Pharmacy to Drive

Outcomes
Evolution of CVS/minuteclinic
Driving Growth in Front Store
2
Retail Pharmacy at a Glance
2015E CVS/pharmacy Revenue
72%
Pharmacy
y
Pharmacy is a significant portion of retail revenue
3
Strong Record of Share Growth in Both
Pharmacy and Front Store
CVS/pharmacy Share of Total U.S.
Health & Beauty Share
Retail Prescriptions
+240 +50
bps bps
21.6% 11.5% 12.0%
19.2%
2010 2015E 2010 2015E
Note: Note:
1. Compares 2015 90 day adjusted scripts from January through August to 1. Market = remainder of Food/Drug/Mass;compares 2015 YTD through
2010 January through August August to 2010 Jan through August
Source: IMS Source: IRI
4
Continued Strength in Core Retail
Pharmacy Business
Growth in Prescriptions
(2010 – 2015)
38%
~2X Nearly 44% of

Faster our growth
19% through non-
CVS/caremark
payors
CVS/pharmacy All Other Market
Notes:
1 Compares total CVS/pharmacy prescriptions for 90 day adjusted scripts January through August for 2010 compared with January through August for 2015
1.
2. Compares total market (excluding CVS/pharmacy) for 90 day adjusted scripts January through August for 2010 compared with January through August for 2015
3. Reduction in labor cost to fill excludes wage inflation.
Source: IMS
5
Continued Strength in Core Retail
Pharmacy Business
Growth in Prescriptions
(2010 – 2015)
38%
~2X
19%
Faster ~13%
reduction in labor
cost to fill each
Rx since 2010
CVS/pharmacy All Other Market
Notes:
1 Compares total CVS/pharmacy prescriptions for 90 day adjusted scripts January through August for 2010 compared with January through August for 2015
1.
2. Compares total market (excluding CVS/pharmacy) for 90 day adjusted scripts January through August for 2010 compared with January through August for 2015
3. Reduction in labor cost to fill excludes wage inflation.
Source: IMS
6
We Are Continuing to Use Various Channels to Drive
Growth in Pharmacy Volume
Retail (CVS/pharmacy &

CVS/minuteclinic)
CVS/caremark Target Partnership
Omnicare Acquisition
Leveraging our integrated model to drive pharmacy innovation
7
Success in High Margin Health & Beauty Businesses
Health & Beauty Sales Key Takeaways

($, billions)
• Th
These are categories
i where
h we
+3.7% have a right to win, most
CAGR
11.0 closely tied to pharmacy
92
9.2 • P
Projected
j t d tto grow 2X ffaster
t
than General Merchandise &
Edibles over the next 3 years
• M
Margin
i iis 1.7X
1 7X hi
higher
h than
th other
th
categories
2010 2015E
Note:
1. 2015 YTD through August with estimate through end of year. Sources: CVS Health Internal Analysis, IRI, Mintel market reports, Global-
Source: CVS Health Internal Analysis. Markets reports, ITE Beauty, CVS Health Internal Analysis.
8
Continued Success in Store Brands
Store Brands Penetration Key Takeaways
• Penetration increased ~300 bps

25% since 2014, with 150 bps
~22% attributable to tobacco exit
~17% • CVS Store Brands growing more

than 2X faster than industry
Store
• Focus on Healthy Food
Food, exclusive
Beauty brands and core OTC
2010 2015E Goal
Store Brands driving front store margins

Note:
1. Based on SB Drug market.
Sources: CVS Health Internal Analysis; IRI 2015 YTD through August.
9
Agenda

Outcomes
10
Growing Our Business Through Acquisition of
Target Pharmacies and Clinics
TARGET PHARMACIES TARGET CLINICS
• More than 1,660 pharmacies • ~80 clinics
• ~4,000
~4 000 pharmacists • ~380
380 clinical
li i l
providers and
• ~10,000 technicians
staff members
• ~80
80 field
fi ld lleaders
d
• 430,000 annual
• ~100 million prescriptions visits
filled annually
Expands footprint of pharmacies by ~20% and clinics by ~8%

Note:
1. FY 2014 data, prescriptions on a 30-day equivalent basis.
Source: Target.
11
Target Pharmacies Complement and Expand Our
Existing Footprint, Increasing Patient Access
OR
ID SD
CO
New regions
AK include …
• Seattle
• Denver
• Portland
• Salt Lake City
Current CVS/pharmacy states New states
12
Transitioning New Assets to Our Brand and Network
• Rebrand as CVS/pharmacy
y and MinuteClinic
• Introduce unique CVS clinical programs and capabilities
• Focus on driving script growth and profitability
13
Acquisition Will Benefit New and Existing Patients
Opportunity to Narrow the … and Help Patients on Their

Prescription
p Volume Gap…
p Path to Better Health
Average Prescriptions per • Target guests gain access to best-

Pharmacy in-class health care services
– Maintenance
M i t Ch
Choice
i
~2X
– Pharmacy Advisor
– Specialty Connect
• Currently ~5% to 7% of Target

guests use Target pharmacies;
CVS Health can drive that
percentage higher
Target CVS/pharmacy
Note:
1. FY 2014 data, prescriptions on a 30-day equivalent basis.
Source: Target.
14
Expanded Network Increases Options for
Payor Partners – Example: Minnesota
Number of Locations
132
72
51%
increase in
57 CVS/caremark
26 members with
60 access to
t
31 CVS/pharmacy
Pharmacies Clinics
CVS Target
We are now better positioned to help Minnesota payors by reducing their

costs and helping the members they serve
15
Agenda

Outcomes
16
Unique Model Enables Deep Understanding of Both
B2B and B2C Capabilities
I
Integrated
d B2B and
d B2C C
Capabilities
bili i
B2B
Focus on Uniquely positioned

payors and for the retailization of
providers to drive
outcomes
B2C health care with the
power of our
face-to-face model
17
Five Key Innovations Are Delivering Value to
Customers and Strategic Partners
1 Next Generation Patient Care
2 ScriptSync
Value to
Customers
3 Specialty Connect and
Partners
4 Strategic Partnerships
5 Digital Integration
18
Next Generation Patient Care: New Patient- 1
centric Approach to Drive Retail Pharmacy Growth
Traditional
Next Generation Patient Care
Pharmacyy Model
Customer insights enable patient-centric, targeted approach
Demographics
Broad-
based
service
to all
Geography Clinical inputs
Customer
preferences
Shift to a more personalized strategy to drive adherence and outcomes
19
Example: Proactive Weather Campaign – Partnering 1
with the U.S. Department of Health & Human Services
Mobilized and Positive Responses Across

Launched in 36 Hours Multiple
p Channels
~185k~400k
voice calls “ Thank you very much; you guys are
automated awesome. I am so glad I have you for my
calls drugstore.”
- CVS SMS patient response
“ I didn’t know CVS was doing this type of

thing now. How nice!”
- CVS live call p
patient
~175k texts “ What a class company; just got a call
sent
ahead of severe weather stating to check if
~220k voicemails
I had enough meds … If I wasn’t a fan
b f
before, this
thi would
ld h
have sealed
l d th
the d
deal!”
l!”
- CVS live call patient
More sophisticated outreach helps our business and our customers
20
ScriptSync: Making It Easier for Our Patients to 2
Manage Multiple Medications
Pre-ScriptSync Post-ScriptSync
Post-ScriptSync
JANUARY FEBRUARY
Solution benefits patients,

payors and CVS
 Consolidates to one pick-up date each month

 Provides improved patient adherence
 Creates efficiencies for pharmacy teams
~70% of patients accept the program when offered; >500k have enrolled
21
Specialty Connect: Seamless Customer Experience 3
for All Specialty Care Needs at CVS/pharmacy
Patients Receive Support from Both Local Pharmacists

and Specialty CareTeam Experts
Local CVS pharmacist Specialty CareTeam

can help onboard provides ongoing counseling
specialty patients to support adherence
93% patient satisfaction • 62% Net Promoter Score • Adherence up 11.4%
22
Strategic Partnerships: We Partner with BCBSA 4
Federal Employee Program to Provide Customer Care
Encouraging FEP Members with Diabetes to Complete an A1c Test
1. Letter from plan 2. Face-to-face counseling 3. HealthTag message

from pharmacist about
A1c tests at
CVS/minuteclinic
An important message about your

healthcare
The American Diabetes Association

(ADA) recommends you check your
Hemoglobin A1C value, also known as
A1C, at least every six (6) months to
assess how controlled your diabetes is.
It’s important to remember that your
A1C level is different from the blood
glucose (sugar) results that you may
test on your own at home. Testing your
blood glucose at home is a good way
to see how your sugar levels are at the
time you are testing. An A1C test is
different and important because it will
show you and your doctor how
controlled your diabetes is over time.
Your doctor may suggest things you
can do to improve your diabetes
depending on your A1C test results.
Our integrated model allows us to deliver targeted messages and drive

better outcomes for clients and patients
23
Strategic Partnerships: A Resource for Health Plans 4
as They Respond to the Retailization of Health Care
Val e to Health Plans

Value
Cost-effective way to drive
member acquisition,
engagement and retention
Value to Consumers
Convenient access to
health insurance resources
for customers
Value to CVS Health

IIncreased
d ttrips
i tot
CVS/pharmacy
24
Digital Drives Adherence, Pharmacy Growth and 5
Loyalty
Prescriptions Filled
 1 in 3 patients enrolled in
2.4X text messaging
 More than 200 million

text reminders sent
to patients
 Added medication
reminder and mobile Rx
Non-Digital
g Patients Digital
g pick-up tools
Patients
Digital integration creating a better experience for patients
25
Agenda

Outcomes
26
2010: 454 MinuteClinic Locations
454
Full-time clinics
in 2010
27
2015: 1,055 MinuteClinic Locations in 32 States and
Washington, D.C.
1,055+
Full-time clinics
in 2015
28
2016: 1,055 MinuteClinic Locations in 32 States (and
D.C.) and Integrating ~80
80 Target Clinics
1,135
Full-time clinics
in 2016
Legend: Clinic State MinuteClinic Target Clinic
More than 50% of the U.S. population is within 10 miles of a MinuteClinic
29
CVS/minuteclinic Expanding Scope of Care on Epic
Electronic Health Record Platform
Primary Care Services:
Epic Implementation
50 Most Common Diagnoses
• National MinuteClinic
roll-out of Epic EHR
completed in 2015
• Epic EHR has extended
connectivity to about ~56%
250 provider organizations of most
Expanded
p 11 common
• Enables accelerated CVS/minuteclinic Diagnoses
diagnoses
Scope (22%)
roll-out of new services
Historical 17
C S/
CVS/minuteclinic Diagnoses
Scope (34%)
Notes:
1 Diagnoses not weighted by individual volume.
2 Examples of expanded scope include gastrointestinal illnesses, musculoskeletal pain.
Source: Top 50 Codes: 2015 Family Practice. www.aapc.com/icd-10.
30
Looking Ahead: Expanding Digital Services and
Partnering to Expand TeleHealth
Digital Solutions Partnering for TeleHealth
Online
wait times
Remote
queuing
Future
scheduling
Innovations will continue to evolve our model of convenient and

affordable health care
31
Agenda

Outcomes
32
Continue to Expand Our Basket Despite
Industry Headwinds
U.S. Store Trips Growth in Sales per CVS Basket
(trips per person per year) (2015 over 2014)
-2%
4.0%
150 148 143
2.0%
2013 2014 2015 Overall Health & Beauty
Focus on driving profitable front store growth, attracting new pharmacy patients
Note: Note:
1. U.S. shopper for Food/Drug/Mass retail. 1. All transactions are for TY vs. LY YTD August and adjusted to exclude tobacco.
Source: IRI. Source: CVS Health Internal Analysis.
33
We Launched Front Store Strategy in 2015 with
Five Key Themes to Drive Growth
Be a L
B Leading
di Health
H lth and
d
Beauty Destination
1 2 3 4 5
Better Health Elevate MyCVS Customer- Digital
Made Easy Beauty Store Driven Innovation
Personalization
Investing for the Future
34
We Launched Front Store Strategy in 2015 with
Five Key Themes to Drive Growth
Be a L
B Leading
di Health
H lth and
d
Beauty Destination
1 2 3 4 5
Better Health Elevate MyCVS Customer- Digital
Made Easy Beauty Store Driven Innovation
Personalization
In-store enhancements in the chain
35
We Executed Key Elements of Our Better Health Made
Easy and Elevate Beauty Strategy in 3 Different Ways
In-store enhancements
Store Remodel
1 2
Better Health Elevate
Made Easy Beauty
Light Touch Store

Enhancement
Assortment
Expansion
36
These Changes Have Enhanced Thousands of Stores
and Improved Customer Experience
In-store enhancements
• Prioritized Health, Healthy Food

Store and Beauty for ~450 stores
Remodel • +250 bps sales lift in overall front
1 2 store performance
Better Health Elevate
Made Easy Beauty
Light Touch
• Focus on elevating beauty
Store fixtures
fi t att a minimal
i i l costt
Enhancement
• Rolled out Better-for-You Healthy

F d assortment
Foods t t in
i chain
h i
Assortment
Expansion • Continuing to expand key
segments & product lines
(e.g., nutrition bars)
Note:
1. Store reset doors (n=85) at steady state (24+ weeks post-construction, through 9/26).
37
Better Health Made Easy: Revolutionizing Healthy 1
Food Industry
“
I love the fact CVS
added so much
healthy food – CVS
• Edibles up +8.5% overall in remodel stores is really putting
their money where
• 75% of shoppers indicate an intention of their mouth is!
shopping more for on-the-go snacking at CVS ”
Note:
38
Better Health Made Easy: Leading Change from 1
Sick Care to Self Care
Health Quadrant Hearing & Optical Center Pilots
• Health up +1.9% in remodeled

stores
• 12 pilot stores launched in 2015
• Key categories such as Vitamin,
Allergy, Cold have seen high • Expanding on innovative health-
growth due to space optimization oriented services in the store
Note:
39
Elevate Beauty: Multi-step Process to Re-imagine 2
Beauty Segment
Before
(2014)
40
Beauty Segment
After1. Elevated Cosmetics Wall
4,500
stores
41
Beauty Segment
After
2. Self Service Customer Units
1 600
1,600
stores
42
Beauty Segment
3. Elevated Facial
After
2,000
,
stores
43
Beauty Segment
After
Remodel Store Results  Beauty

y / Personal Care: +3.7%
Note:
44
MyCVS Store: Poised to Capture the High-growth 3
Hispanic Cluster
• Sales up
p +10% in 11 test stores
• Strong results: Edibles +11% and Beauty +20%
• 700 stores in chain with matching demographics
Note:
1. Results are at steady state program to date thru 9/15 – excluding construction period.
45
Customer-driven Personalization: The Future Is 4
Personalization by Leveraging ExtraCare
More Efficient Promo Spending Accretive to Margin
• De-emphasizing
promotion that loses
margin
• Prioritizing promotion
Certain Circular Promotion (e.g.
Certain Circular Promotion (e.g. Soda) Drive Sales with lower salesBut
butLose
Soda) Drive Sales
But Lose Margin significantly
g y positive
p
Margin
margin
• Aspiring to deliver
Divestment Investment Investment in promotions that drive
from negative in high margin Personalization higher sales and
margin promo promo margin
(e.g., soda) (e.g., vitamins)
46
Customer-driven Personalization: Using Shopping 4
Behavior to Segment and Value Our Customers
20%
Lower FS
Front
Value
Store
Customers
Value Customers
70%
80%
Higher FS
Front
Value
Store
Value Customers
Customers 30%
FS Shoppers FS Revenue
47
Customer-driven Personalization: Leverage Data to 4
Produce Relevant and Personalized Communications
Customer Level Data Used to Model and Predict Behavior
Customer • Buys Hair Color

Behavior • Increasing promo sensitivity
• Establish routine
Our Strategy
• Create a reason to visit weekly
• Personalized resupply
1:1 reminder email monthlyy
Higher
Hi h value
l C
Communication
• Personalized sale items
customer
Average
g weekly
y spend
p up
p 38% and average
g redemption
p rate up
p almost 2X
48
Digital Drives Front Store Sales and Loyalty 5
Spend per Customer
 Digitally engaged visiting

stores 6X more per year
4.5X
 More than 12.2 million

app downloads, 67% year-
over-year growth
 Enhanced customer
Non-digital Digital convenience
Customers Customers
Digital integration creating a better experience for customers
49
Demonstrating Value Delivering value through adherence

to People, Payors and Providers Reducing cost of care for all stakeholders
Growing
g the Core,, Continuing Rx innovation to serve customer needs
Broadening the Base Strengthening leadership in overall health & beauty
Always Looking Driving digital innovation across the enterprise

Ahead Anticipating evolving customer health needs
Driving Sustainable Growing footprint to reach customers and patients

Enterprise Growth Expanding breadth of health services and products
Changing the Face of Retail Pharmacy through Innovation

Endnote
1. , CVS/pharmacy, Omnicare, CVS/minuteclinic, CVS/caremark, Specialty Connect,

ScriptSync, MinuteClinic, MyCVS are trademarks or registered trademarks of CVS Pharmacy, Inc.
51
Serving Patients Across
the Continuum of Care
Rocky Kraft
President Omnicare
President,
Agenda
Senior Care Market Overview
Omnicare: A Leader in Long-term Care Pharmacy
CVS/omnicare Positioned to Drive Value in an

Evolving Health Care Market
2
Aging Population Shaping U.S. Health Care System
Under 65 Years Aged 65-84 Years Aged 85+ Years

(lives, millions) (lives, millions) (lives, millions)
+4% +56% +45%
285 65 9
274 278
50
41 7
6
2015 2020 2030 2015 2020 2030 2015 2020 2030
10,000 baby boomers projected to turn 65 every day for next 15 years
Source: U.S. Census Bureau.
3
Increase in Older Population Driving the Need for
Long-term
Long term Care Services and Support
Population Requiring Trends in Need for

LTC Services LTC Services
(lives, millions)
• 70% of people over age 65 will
require some form of LTSS
+80%
27
• Number of frail adults rising
rapidly with expanding older
population
15
• Between 2000 and 2040,
number of older adults with
disabilities is expected to
i
increase ffrom 10 to
t 21 million
illi
2000 2050
By 2050, 27 million people will need long-term care services and support
Note:
1. Long-Term Services & Support (LTSS) based on limitations regardless of age, cause, etc.
Source: Long Term Care Services in the U.S.: 2013 Overview: U.S. Department of HHS.
4
Navigating Through the Senior Care Continuum
Low Acuity High Acuity

Residential/ Independent
p Assisted Skilled
Home Aide Living Living Nursing
(IL) (ALF) (SNF)
Social activities,
SERVICES Cooking, cleaning,
Cooking cleaning Dining, social,
Dining social and 24-hour
24 hour
assistance with
PROVIDED transportation, etc. recreational services nursing care
ADLs
Retail, mail order, Institutional
PHARMACY Institutional
Retail, mail order institutional pharmacy, retail,
CHOICE pharmacy
pharmacy mail order
ANNUAL RX
Not Available $3 Billion $5 Billion $8 Billion
SPEND
TOTAL COST
1.0% Not Available 2.5% 3.7%
5-YR CAGR
Omnicare: Industry leader in ALF and SNF markets

Sources:
1. IMS Health, Goldman Sachs Global Investment Research (September 2014).
2. Genworth 2015 Cost of Care Survey.
5
Agenda
CVS/omnicare Positioned to Drive Value in an

6
An Industry Leader in Long-term Care Pharmacy
Institutional Post-acute Revenue

Omnicare Advantages
($, billions)
• Leading pharmacy provider to

elderly in chronic care settings
Omnicare 4.8
• $4.8 billion in revenue
(1) • Approximately 100 million

Next largest 1.9
scripts dispensed annually
• Approximately 2 million unique

All others 9.4 patients served annually
Notes:
1. Publicly disclosed 2014 revenue.
2. Revenue is estimated for Skilled Nursing, Assisted Living and Independent Living communities.
3. For the year ended December 31, 2014. Long-Term Care Pharmacy Revenue only:; does not include manufacturing services.
7
Omnicare Value Proposition Gives Us a Competitive
Advantage in the Long
Long-term
term Care Market
N ti
Nationwide
id footprint
f t i t
Efficient operations
Robust clinical infrastructure
Innovative technology
8
A D VA N TA G E # 1
Omnicare’s Nationwide Footprint Makes Us an Ideal

Partner for National Providers and Their Residents
80% within 50 miles
9
A D VA N TA G E # 1
CVS/omnicare’s Expanded Retail Footprint Further

Enhances Our Ability to Serve Our Customers
80% within 5 miles
10
A D VA N TA G E # 2
Operating Efficiency Ensures Our Low-cost Position
Infrastructure
• Hub and spoke network

− Enabler for automation, efficiency and quality service
Automation
• Hub pharmacies utilize automation technologies

− Improves dispensing accuracy while reducing operating costs
On-site Dispensing
• On-site first fill / emergency dose
− Key component to emergency dose strategy and delivery
cost management
11
A D VA N TA G E # 3
Our Robust Clinical Services Drive Better

Outcomes While Lowering Costs
On-site Consultant Clinical Intervention Clinical

Pharmacists Centers Differentiation
• Patient-facing services • Formulary adherence • Quality-based cost
within institution containment
• Generic penetration
• Driving adherence • Standardized
• Therapeutics
improvement processes
interchange
• Reducing avoidable • 2% to 5% savings
• Non-covered
Non covered charges
readmissions for customers and
patients
12
A D VA N TA G E # 4
Innovative Technology Solutions Resonate with

Our Customers and Drive Higher Retention Rates
Omniview MyOmniview
Omnicare’s secure web-based worksite for customer facilities,

prescribers and patients
13
A D VA N TA G E # 4

• Designed
g for residents
of communities and
their caregivers
• Access financial
information and health
records
• Talk
T lk with
ith a pharmacist
h i t
MyOmniview

14
A D VA N TA G E # 4

• Secure customer
facing technology
• Optimize cost
effectiveness
• Enhance medication
management
• Expedite patient care
Omniview

15
Agenda
CVS/omnicare
CVS/Omnicare Positioned
Positioned to
to Drive
Drive Value
Value in
in an
an
16
Multiple Opportunities for Driving Enterprise Value
from CVS/omnicare Both Near
Near- and Long
Long-term
term
Deliver Future
Drive Revenue
Leverage Operational Synergies
Shared Efficiencies
Phase-in • Focused on
Services transitions of
Integrating Systems • Combined
operational care, market
Procurement • Leveraging adjacencies
best practices infrastructure
• Technology and
focused on across the • Improved differentiated
• Significant business workflow
high quality offerings
purchasing
synergies customer • P d i t l
Predominately • More efficient
service and complete by delivery
• Integrated 1H visibility YE 2016 service
2016
• Predominately
complete by
YE 2016
17
CVS/omnicare Value Proposition Provides New
Channels to More Effectively Serve Broader Population
Skilled Assisted
Independent
p Home
Nursing Living
Living Care
Facilities Facilities
Transitions Segmented Broader Care

of Care Offering Services Coordination
CVS/omnicare best positioned to serve senior care continuum
18
Enhanced Offering for Skilled Nursing Driven by
Improved Coordination During Care Transitions
Completeness
Skilled Assisted
of Service Offerings
Independent Home
Nursing Living
Living Care
Omnicare CVS/omnicare
ISSUE SOLUTIONS RESULTS

• Medication availability • CVS/pharmacy retail • Better outcomes for
challenges due to lack of footprint extends reach the patient, provider
care coordination at for first fills and payor
admission and discharge • E
Expansion
i off coordinated
di t d
• Hospital discharge re- care services with
admissions costing integrated
$4.3B to Medicare discharge
solution
Source: Study by NIA (National Institute on Aging) and Robert Wood Johnson Foundation based on Medicare inpatient & SNF claims 2000 – 2006.
19
Segmented Assisted Living Offering in Development
to Better Align with Varying Resident Needs
Completeness
Skilled Assisted
Independent Home
Nursing Living
Living Care

• Acuity level differences • Segmented offering to • Increased resident choice
in facilities due to state align solutions to the • Improved community
regulations and residents’ specific needs satisfaction
community type • G
Greater
t CVS brand
b d
• 30% of beds but only 50% awareness to improve
of those residents served patient conversion
• Lack of brand and retention
awareness
20
Consumer-driven Effort to Better Target Rapidly
Growing Independent Living Market
Completeness
Skilled Assisted
Independent Home
Nursing Living
Living Care

• Institutional pharmacy • Retail-led solution that • Newly developed offering
offering not aligned with utilizes existing CVS to solve unmet needs
resident demands of this pharmacy capabilities within senior care
rapidly-growing
rapidly growing area • O
On-site
it d
delivery
li off h
health
lth
care services
(e.g., vaccines)
21
Care Coordination Offering to Better Serve Seniors
Requiring More Acute Services in Home Setting
Completeness
Skilled Assisted
Independent Home
Nursing Living
Living Care

• Home care represents the • Replicate independent • Better outcomes for
largest aspect of senior living to serve acute high-risk patients requiring
care market patients in home setting more acute services
• O
Omnicare
i i more facility-
is f ilit • C
Capture
t portion
ti off ~2M
2M
centric discharges from SNF
setting through
new offering
22
Omnicare has a differentiated service offering focused

Demonstrating Value on q
quality,
y, service and expertise
p to customers and
to People, Payors and Providers
their residents
Omnicare, as a leader in senior pharmacy services,

Growing
g the Core,,
b d
broadens our b
base, providing
idi a new channel
h l and
d
Broadening the Base expanding our reach to a broader population
Always Looking Acquisition

A i iti off O
Omnicare
i enables
bl us tto b
better
tt serve
Ahead patients across the continuum of care
Driving Sustainable
Significant opportunities for driving long-term growth
Enterprise Growth
Serving Patients Across the Continuum of Care

Appendix
, CVS/Omnicare, Omnicare, Omniview, and MyOmniview

How Institutional Pharmacy Services Differ
Retail Institutional
Access Open to the public Closed door pharmacies
Deliveries
Deli eries to facility
facilit average
a erage
Dispensing Primarily at pharmacy counter
3 times per day
Standard compliant
Packaging Primarily bottles/vials
specialized unit dose
Federally mandated quick
Adjudication Prior to dispensing turnaround may require dispensing
prior to adjudication
Required consultant pharmacists
Primarily
P i il ffocused
d on
Services provide extensive patient facing
patient/caregiver
services within facility
Extensive regulation significantly
Costs Generally lower cost to dispense
increases cost to dispense
25
The Right Strategy for an
Evolving
g Health Care Market
Larry
y Merlo
President & Chief Executive Officer
Analyst Day
December 16, 2015
The Most Extensive Suite of Leading Assets…
Retail Mail
Long-term
Care
Retail Specialty
Clinics
Clinical
Infusion
Programs
g

Claims
…providing the right strategy for an evolving health care market
2

l ffor health
h lth care partners
t
Growing
p g core p
g

t d i innovative
i ti products
d t and
d making
ki llong-term,
t
Ahead value enhancing investments


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The Right Strategy for an

During today’s presentation, we will make forward-looking statements

 Superior specialty growth

 New adjacent channel

 Broader retail footprint

 Advanced front store strategies

 Built CVS Health brand identity

Notes: See endnotes.

Digital Patients Medical

…providing the right strategy for an evolving health care market

Demonstrating Value Leadership in multiple competencies to drive superior

Always Looking IIntroducing

Driving Sustainable Driving shareholder value with strong earnings and

Driving Enterprise Growth in an Evolving Health Care Market Larry Merlo

Delivering Value Today, Ensuring Growth for Tomorrow Jon Roberts

Capitalizing on Growth Opportunities in Specialty Alan Lotvin

Changing the Face of Retail Pharmacy Through Innovation Helena Foulkes

Serving Patients Across the Continuum of Care Rocky Kraft

Free Cash Flow and Cash Available for

Net cash provided by operating Income before income tax provision

Strong Record of Execution

Looking Ahead: 2016 Guidance Review

Driving Sustainable Enterprise Growth

Revenues and • Driving top- and bottom-line results through an

• Delivering Adjusted EPS at high end of initial targets

Free Cash Flow • Generating substantial free cash flow

• Returning more than $6 billion to shareholders through

Net Revenue Growth 9.75% to 10.25%

Adjusted EPS From $5.14 to $5.18

Free Cash Flow $5.9 to $

Average Annual Cash Available $5.5 billion

Growth at higher end of original long-term targets

• Brings a new pharmacy • Enhances network and

1.2 1.1 1.2 1.3

Balance sheet remains healthy

Focused on maintaining high BBB credit rating

Operating Free Incremental Cash

Cash Available for

Effective allocation of cash Cash Available & Capital Allocation

• 56% increase of annual dividend 22.9 23.8

• Target and Omnicare acquisitions

• Expect to complete a total of $9 2.9 Dividends

~ $24 billion of deployed capital 2014 and 2015

29% Universal Health $20b

Red Oak Navarro Omnicare

Strong Record of Execution

Looking Ahead: 2016 Guidance Review

Driving Sustainable Enterprise Growth

• These captive pharmacies are NOT specialty pharmacies

• To best manage access and cost, CVS/caremark determines which

• In contrast, CVS/specialty provides high-touch care to patients with

• RxCrossroads follows CVS Health’s philosophy of:

• Patient assistance programs provide help to underinsured and

• RxCrossroads is immaterial to CVS Health’s overall financial results

NOT ALL MEDICARE

• In preferred networks, plan designs must offer pharmacies enough

• Key areas of consideration with Med D networks:

• Will not participate in Aetna

• We participate in networks that make economic sense

• Critical to focus on enterprise growth

• Unique offerings are aligned across the company in support of the

• We are indifferent to channel and manage the business through an

Strong Record of Execution