McKesson Corporation Second Quarter Fiscal 2024 Earnings Call Cautionary Statements Cautionary Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward- looking statements may be identified by their use of terminology such as “believes,” “expects,” “anticipates,” “may,” “will,”“should,” “seeks,” “approximately,” “intends,” “projects,” “plans,” “estimates,” “targets,” or the ...

Revenue and Profit - Revenues for the three months ended September 30, 2023, increased to $77.215 billion, up from $70.157 billion in the same period last year[8] - Net income for the three months ended September 30, 2023, was $703 million, compared to $967 million in the same period last year[8] - Diluted earnings per share from continuing operations for the three months ended September 30, 2023, were $4.92, down from $6.46 in the same period last year[6] - Comprehensive income attributable to McKesson Corporation for the six months ended September 30, 2023, was $1.640 billion, compared to $2.114 billion in the same period last year[10] - Net income for the six months ended September 30, 2023, was $1.7 billion, compared to $1.776 billion in the same period in 2022[25] - Income from continuing operations for the three months ended September 30, 2023 was $703 million, and $1.7 billion for the six months ended September 30, 2023[66] - Diluted earnings per common share from continuing operations were $4.92 for the three months ended September 30, 2023, and $11.95 for the six months ended September 30, 2023[68] - Total revenues for the six months ended September 30, 2023, were $151.698 billion, compared to $137.311 billion in the same period in 2022[155] - Revenues increased by 10% to $77.215 billion for the three months ended September 30, 2023, compared to the prior year[184] - Gross profit decreased by 1% to $3.069 billion for the three months ended September 30, 2023, compared to the prior year[184] - Total operating expenses increased by 7% to $2.118 billion for the three months ended September 30, 2023, compared to the prior year[184] - Diluted earnings per common share from continuing operations decreased to $4.92 for the three months ended September 30, 2023, from $6.46 in the prior year[184] Cash Flow and Liquidity - Cash and cash equivalents decreased to $2.524 billion as of September 30, 2023, from $4.678 billion as of March 31, 2023[12] - Net cash used in investing activities for the six months ended September 30, 2023, was $315 million, compared to net cash provided by investing activities of $116 million in the same period last year[24] - Net cash used in operating activities was $87 million for the six months ended September 30, 2023, compared to net cash provided by operating activities of $166 million in the same period in 2022[25] - Cash, cash equivalents, and restricted cash decreased by $2.155 billion for the six months ended September 30, 2023, compared to a decrease of $977 million in the same period in 2022[25] - The company maintains a $4.0 billion commercial paper program, with $2.0 billion borrowed and repaid during the six months ended September 30, 2023[82] - The company has a $4.0 billion five-year senior unsecured credit facility (2022 Credit Facility) with no borrowings outstanding as of September 30, 2023[81] - The fair value of money market funds decreased to $645 million in September 2023 from $1.4 billion in March 2023[109] Stock Repurchases and Dividends - McKesson Corporation repurchased $1.513 billion worth of common stock during the six months ended September 30, 2023[19] - McKesson Corporation declared cash dividends of $1.16 per common share during the six months ended September 30, 2023[19] - The company repurchased $1.505 billion worth of common stock during the six months ended September 30, 2023[25] - The company paid $149 million in dividends during the six months ended September 30, 2023[25] - The company repurchased 2.0 million shares of common stock for $840 million during the three months ended September 30, 2023, at an average price per share of $422.39[139] - The company repurchased 1.8 million shares of common stock for $673 million during the three months ended June 30, 2023, at an average price per share of $379.14[139] - The company's total remaining authorization for repurchases of common stock at September 30, 2023, was $8.1 billion[141] - The company's quarterly dividend was raised from $0.54 to $0.62 per share of common stock in July 2023[136] - The company incurred excise taxes of $8 million and $12 million for the three and six months ended September 30, 2023, respectively, related to share repurchases[139] Acquisitions and Divestitures - The company completed the acquisition of Rx Savings Solutions, LLC for $600 million in cash and up to $275 million in contingent consideration[34] - The company recorded a liability for contingent consideration at its fair value of $92 million as of the acquisition date for Rx Savings Solutions, LLC[35] - The company completed the formation of SCRI Oncology, LLC with HCA Healthcare, Inc., owning a 51% controlling interest and paying $166 million in net cash[41] - The company divested its European businesses, recording gains of $23 million and $35 million for the three and six months ended September 30, 2022, respectively[46] - The company sold its UK retail and distribution businesses for £110 million (approximately $144 million) and divested net assets of $615 million[47] - The company completed the divestitures of the U.K. disposal group in April 2022 and the E.U. disposal group in October 2022[153] Restructuring and Impairment - Restructuring, impairment, and related charges, net were $28 million for the three months ended September 30, 2023, and $80 million for the six months ended September 30, 2023[51] - The company anticipates total restructuring charges of approximately $125 million, with $99 million recorded through September 30, 2023[52] - Corporate expenses, net, included restructuring charges of $46 million for the six months ended September 30, 2023[156] - Restructuring, impairment, and related charges were $28 million for the three months ended September 30, 2023, compared to $30 million in the same period in 2022[194] - The company anticipates total restructuring charges of approximately $125 million, with $99 million recorded through September 30, 2023[196] Taxes - Income tax expense for the three months ended September 30, 2023 was $213 million, with a reported income tax rate of 23.3%[61] - The company recognized a net discrete tax benefit of $147 million during the six months ended September 30, 2023 due to intellectual property repatriation[64] - As of September 30, 2023, the company had $1.4 billion of unrecognized tax benefits, with $1.3 billion potentially reducing income tax expense if recognized[65] - The IRS proposed adjustments to taxable income for fiscal 2018 and 2019, potentially increasing federal income tax liability by $600 million to $700 million[67] - Income tax expense was $213 million for the three months ended September 30, 2023, compared to $271 million in the same period in 2022, with a reported tax rate of 23.3%[200] - The company recorded a net discrete tax benefit of $147 million in the six months ended September 30, 2023, primarily related to the repatriation of intellectual property[201] Debt and Financial Instruments - Total long-term debt was $5.6 billion as of September 30, 2023, with $49 million classified as current portion[75] - The company issued $400 million of 4.90% Notes due July 15, 2028 and $600 million of 5.10% Notes due July 15, 2033 in June 2023[76] - The company repurchased $271 million principal amount of 3.80% Notes due March 15, 2024 at 98.75% of principal plus accrued interest, totaling $268 million[78] - The company uses cross-currency swaps to hedge $1.5 billion CAD of net investments against foreign currency exchange rate fluctuations[91][96] - The company has $1.1 billion EUR and £450 million GBP of cross-currency swaps designated as fair value hedges for foreign currency notes[92] - The company recognized a $9 million gain on debt extinguishments for the six months ended September 30, 2023[80] - Cross-currency swaps designated as net investment hedges increased to $27 million in Q3 2023 from $21 million in Q3 2022[99] - Fixed interest rate swaps designated as cash flow hedges had a notional amount of $450 million in fiscal 2023 and $50 million in Q1 fiscal 2024[103] - Long-term debt carrying value was $5.584 billion in September 2023, with a fair value of $5.268 billion[112] Litigation and Settlements - The company paid $1.5 billion to Settling Governmental Entities as of September 2023 under the opioid settlement agreement[125] - Future payments under the opioid settlement agreement could reach up to $6.3 billion through 2038[125] - The company paid $61 million to Alabama as of September 2023, with additional payments of $113 million expected through 2031[125] - West Virginia subdivisions received $38 million as of September 2023, with additional payments of $114 million expected through 2033[125] - Total litigation liabilities decreased to $6.644 billion in September 2023 from $7.173 billion in March 2023[124] - The company has paid approximately $84 million to Native American tribes for opioid-related claims as of September 30, 2023, with an additional $112 million to be paid through 2027[127] - A minimum of 85% of the total settlement payments must be used by the settling Native American tribes to remediate the opioid epidemic[127] - The company made payments totaling $529 million associated with opioid-related claims during the six months ended September 30, 2023[128] - The company's estimated accrued liability for opioid-related claims of U.S. governmental entities, including Native American tribes, was recorded in "Other accrued liabilities" in the Condensed Consolidated Balance Sheets[127] - The company received $79 million and $197 million for the three and six months ended September 30, 2023, respectively, related to antitrust legal settlements[172] - The company made payments totaling $529 million associated with various settlement agreements for opioid-related claims during the six months ended September 30, 2023[178] Segment Performance - U.S. Pharmaceutical segment revenues increased to $136.926 billion for the six months ended September 30, 2023, up from $117.006 billion in 2022[155] - International segment revenues decreased to $6.943 billion for the six months ended September 30, 2023, down from $12.786 billion in 2022, primarily due to divestitures[155] - RxTS segment operating profit increased to $469 million for the six months ended September 30, 2023, up from $264 million in 2022, driven by fair value adjustment gains[156] - The U.S. Pharmaceutical segment's operating profit included a $210 million provision for bad debts related to Rite Aid's bankruptcy[156] - The International segment's operating loss for the six months ended September 30, 2022, included charges of $237 million related to the E.U. disposal group[156] Bad Debts and Provisions - The company recognized a provision for bad debts of $210 million related to Rite Aid's bankruptcy in October 2023[157] - The company anticipates recognizing an additional provision for bad debts of $511 million in the third quarter of fiscal 2024 due to Rite Aid's bankruptcy[158] - The company recognized a provision for bad debts of $210 million related to the bankruptcy of Rite Aid Corporation[179] - The company expects to recognize a provision for bad debts of $511 million in the third quarter of fiscal 2024 for trade accounts receivable from Rite Aid[180] - Selling, distribution, general, and administrative expenses (SDG&A) increased by 7% to $2,092 million for the three months ended September 30, 2023, including a $210 million provision for bad debts related to Rite Aid's bankruptcy[192] Other Financial Metrics - Total assets as of September 30, 2023, were $66.091 billion, up from $62.320 billion as of March 31, 2023[12] - Total liabilities increased to $66.091 billion as of September 30, 2023, from $62.320 billion as of March 31, 2023[12] - Goodwill balance as of September 30, 2023 was $9.934 billion, with no impairment indicated in fiscal 2024 and 2023 testing[71] - Intangible assets amortization expense was $62 million for the three months ended September 30, 2023, up from $57 million in the same period in 2022[72] - The company's accumulated other comprehensive loss balance was $(887) million as of September 30, 2023[143] - Investments in U.S. growth stage healthcare companies had a carrying value of $222 million in September 2023, down from $237 million in March 2023[111] - Other income, net decreased primarily due to a $142 million gain recognized in July 2022 related to the exit of an equity securities investment[198] - Interest expense increased due to higher interest rates on debt and derivative portfolios, partially offset by a $9 million gain on debt extinguishment in the first quarter of fiscal 2024[199] - Loss from discontinued operations, net of tax, was $6 million for the three months ended September 30, 2022, with no discontinued operations following the divestiture of the E.U. disposal group in October 2022[202] - Net income attributable to noncontrolling interests includes results from third-party equity interests in ClarusONE Sourcing Services LLP, Vantage Oncology Holdings, LLC, and SCRI Oncology, LLC[203]

McKesson Corporation First Quarter Fiscal 2024 Earnings Call Cautionary Statements Cautionary Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward- looking statements may be identified by their use of terminology such as “believes,” “expects,” “anticipates,” “may,” “will,”“should,” “seeks,” “approximately,” “intends,” “projects,” “plans,” “estimates,” “targets,” or the ...

McKesson Corporation (NYSE:MCK) Q1 2024 Earnings Conference Call August 2, 2023 4:30 PM ET Company Participants Rachel Rodriguez – Vice President of Investor Relations Brian Tyler – Chief Executive Officer Britt Vitalone – Chief Financial Officer Conference Call Participants Lisa Gill – JPMorgan Michael Cherny – Bank of America Eric Coldwell – Baird Kevin Caliendo – UBS Eric Percher – Nephron Research A.J. Rice – Credit Suisse Daniel Grosslight – Citi George Hill – Deutsche Bank Elizabeth Anderson – Evercor ...

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13252 McKESSON CORPORATION (Exact name of registrant as specified in its charter) Delaware 94-3207296 (State or other jurisdiction of incorporation ...

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13252 McKESSON CORPORATION (Exact name of registrant as specified in its charter) Delaware 94-3207296 (State or other jurisdiction (I.R.S ...

McKesson Corporation (NYSE:MCK) Q2 2023 Earnings Conference Call November 1, 2022 4:30 PM ET Company Participants Rachel Rodriguez - VP, IR Brian Tyler - CEO Britt Vitalone - CFO Conference Call Participants Eric Percher - Nephron Research Michael Cherny - Bank of America Merrill Lynch Lisa Gill - JPMorgan Steven Valiquette - Barclays Charles Rhyee - Cowen Kevin Caliendo - UBS George Hill - Deutsche Bank Brian Tanquilut - Jefferies LLC AJ Rice - Credit Suisse Liz Anderson - Evercore ISI Erin Wright - ...