Slide 2 Slide 3 Pharmaceutical benefit managers (PBM) We manage
prescription benefits for tens of millions of Americans on behalf
of thousands of clients, including health plans and plan sponsors.
Employers, unions and government organizations throughout the
nation rely on our services. Our team of more than 30,000 employees
expresses passion, expresses care and expresses enthusiasm for our
mission. We are committed to our members achieving better clinical
outcomes and dedicated to delivering better financial outcomes for
plan sponsors. ~ George Paz, Chairman & CEO
https://www.express-scripts.com/aboutus/index.shtml Specialty
Prescription Management Slide 4 Benefit Design Consultation.
Patient Care Contact Centers Formulary development Information
Reporting and Analysis Programs Rebate Programs Electronic Claims
Processing System Consumer Health and Drug Issues Slide 5 United
Health Group CVS Caremark Omnicare Rite Aid Express Scripts wide
moat gives it a great advantage over their competitors. This can be
attributed to three main pillars: 1) Sticky client base 2) Strong
foothold within pharmaceutical markets. 3) The companys scale
advantage. Slide 6 ESRX Revenue (in millions $)FY 2014FY 2013FY
2012FY 2011 IV QuarterDec.26,312.6025,781.4027,410.7012,101.40 III
QuarterSep.25,778.5025,915.6026,999.4011,571.00 II
QuarterJune25,111.0026,425.0027,692.5011,361.40 I
QuarterMarch23,685.0026,063.0012,132.6011,094.50 FY
100,887.10104,098.8093,858.1046,128.30
http://csimarket.com/stocks/single_growth_rates.php?code=ESRX&rev
Slide 7 George Paz: Chairman & Chief Executive Officer Salary:
$1.07mil with a bonus of $2.02mil. He also receives stock gains of
$34.99mil Keith Ebling: Executive Vice President & General
Counsel: Salary: $660,385 and $662,540 was received as a bonus,
& $900,000 was received in stock options Jim Havel: Executive
Vice President & Interim Chief Financial Officer. Salary:
$725,000 and a signing bonus of $110,000, Christine Houston Senior
Vice President - Operations Steve Miller, MD Senior Vice President
& Chief Medical Officer Tim Wentworth: President Salary:
$815,303, Bonus:1,264,863, Slide 8 Profitability Ratio 2012
2014_________________________ Profit Margin:.014.019 (+) Return on
assets:.023.037 (+) Return on Equity:.056.100 (+) Asset
Utilization: Receivables turnover: 16.08 15.83 (-) Total Asset
turnover: 1.74 1.88 (+) NWC turnover: -.025 -.064 (-) Liquidity
Ratio Current ratio:.82.62 (-) Quick ratio:.68.50 (-) NWC to total
assets: -.04 -.61 (-) Leverage Ratio: Total Debt ratio:.96.63 (+)
Equity multiplier: 2.49 2.68 (-) D/E ratio:.64.55 (+) Slide 9 Value
1 Weight Required rate of return 2 Calculation Equity (fair
value)63,878,599 0.82 16.07% Long-term debt, including current
maturities (fair value) 14,200,200 0.182.38% = 3.78% (1 37.08%) USD
$ in thousands Equity (fair value) = No. shares of common stock
outstanding Current share price = 729,291,000 $87.59 =
$63,878,598,690.00 Long-term debt, including current maturities
(fair value). Required rate of return on equity is estimated by
using CAPM. Required rate of return on debt. Required rate of
return on debt is after tax. Estimated (average) effective income
tax rate = (33.60% + 36.40% + 38.00% + 37.00% + 36.90%) 5 = 37.08%
WACC = 13.58%
https://www.stock-analysis-on.net/NASDAQ/Company/Express-Scripts-Holding-Co/DCF/Present-Value-of-FCFF
Slide 10 2009- Express Scripts Completes Acquisition of WellPoints
NextRx Subsidiaries Hepatitis Cure Value Program The transaction
includes a 10-year agreement under which Express Scripts, one of
the largest pharmacy benefits management companies in North
America, will provide pharmacy benefits management services,
including home delivery and specialty pharmacy services, to members
of the affiliated health plans of WellPoint, one of the nations
largest health benefits companies. Express Scripts acquired the
NextRx subsidiaries for $4.675 billion, which includes
consideration for the value of a future tax benefit for Express
Scripts based on the structure of the transaction. Slide 11 Merger
with Medco Health Solutions "Our merger is exactly what the country
needs now, It represents the next chapter of our mission to lower
costs, drive out waste in healthcare and improve patient health. We
remain focused on formulary management, channel management and
closing gaps in care, which will allow us to further improve the
health of people with chronic and complex medical conditions. ~
George Paz, CEO Slide 12 TickerCompany Market Cap (Millions) 5-Year
Sales Growth Debt/EquityProfit Margin ESRX Express Scripts Holding
Company $60,830.0036.50%0.731.90% Slide 13 Initial public offering
in 1992 Express Scripts Holding Company (ESRX) -NasdaqGS 87.59
1.24(1.40%) Beta:.64 CVS Health Corporation (CVS) -NYSE 104.19
2.19(2.06%) Beta:1.17 Omnicare Inc. (OCR) -NYSE 94.55 0.06(0.06%)
Beta:.47 Slide 14 DateResearch FirmActionCurrentPT 12/04/14Deutsche
BankMaintainsHold88.0 1/08/15JP MorganMaintainsOverweight100.0
1/08/15BarclaysMaintainsOverweight102.0 1/28/15FBR
CapitalDowngrades Market Perform 2/26/15Deutsche
BankMaintainsHold96.0 4/10/15BMO CapitalMaintains Market Perform
89.0 5/20/15Baird Initiates Coverage on Neutral94.0 6/01/15 Raymond
James Downgrades Market Perform 6/15/15Deutsche
BankMaintainsHold95.0 6/17/15Oppenheimer Initiates Coverage on
Perform http://www.benzinga.com/stock/esrx/ratings Slide 15
06/09/20151,644 Disposition at $87.14 per share. 143,259
06/01/201546,069 Disposition at $86.15 per share. 3,968,845
06/01/20154,799 Derivative/Non- derivative trans. at $77.15 per
share. 370,242 06/01/20153,557 Derivative/Non- derivative trans. at
$53.05 per share. 188,698 06/01/201516,356 Derivative/Non-
derivative trans. at $53.05 per share. 867,685 06/01/20159,078
Derivative/Non- derivative trans. at $58.17 per share. 528,06
Transactions Date Shares Transaction Value Slide 16 We are proud to
provide world-class service and specialized pharmacy care to our
men and women in uniform and military retirees, along with their
dependents. Slide 17 Shareholder value is the sum of all strategic
decisions that affect the firms ability to efficiently increase the
amount of free cash flow over time. was downgraded by ZACKS from a
hold rating to a sell rating in a research note issued to investors
on Tuesday, Slide 18 Slide 19 Slide 20
http://www.benzinga.com/stock/esrx/ratings
http://www.benzinga.com/stock/esrx/ratings
http://csimarket.com/stocks/single_growth_rates.php?code=
ESRX&rev
http://csimarket.com/stocks/single_growth_rates.php?code=
ESRX&rev https://www.express-scripts.com/aboutus/index.shtml
https://www.express-scripts.com/aboutus/index.shtml
https://www.express-
scripts.com/pressroom/informationresources/corporateoverv
iew/corporateOverview.pdf https://www.express-
scripts.com/pressroom/informationresources/corporateoverv
iew/corporateOverview.pdf
http://fortune.com/fortune500/express-scripts-holding-22/
http://fortune.com/fortune500/express-scripts-holding-22/
http://ir.antheminc.com/phoenix.zhtml?c=130104&p=irol-
newsArticle&ID=1360094
http://ir.antheminc.com/phoenix.zhtml?c=130104&p=irol-
newsArticle&ID=1360094 Slide 21 https://www.stock-analysis-
on.net/NASDAQ/Company/Express-Scripts-Holding-
Co/DCF/Present-Value-of-FCFF https://www.stock-analysis-
on.net/NASDAQ/Company/Express-Scripts-Holding-
Co/DCF/Present-Value-of-FCFF
http://www.forbes.com/lists/2012/12/ceo-compensation-
12_George-Paz_23R1.html
http://www.forbes.com/lists/2012/12/ceo-compensation-
12_George-Paz_23R1.html
http://www.reuters.com/finance/stocks/companyOfficers?symbo
l=ESRX.O
http://www.reuters.com/finance/stocks/companyOfficers?symbo
l=ESRX.O http://www.tricare.mil/overseas-pharmacy?p=1
http://www.tricare.mil/overseas-pharmacy?p=1
http://www.wsj.com/articles/SB1000142405311190355490457
6460322664055328
http://www.wsj.com/articles/SB1000142405311190355490457
6460322664055328
http://blogs.wsj.com/pharmalot/2014/12/22/the-hepatitis-c-
price-wars-begin-what-the-express-scripts-move-means /
http://blogs.wsj.com/pharmalot/2014/12/22/the-hepatitis-c-
price-wars-begin-what-the-express-scripts-move-means /
http://www.wikinvest.com/stock/Express_Scripts_%28E SRX%29
http://www.wikinvest.com/stock/Express_Scripts_%28E SRX%29
