CVS 2014 Annual Report Download - page 17

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Dear Fellow Shareholders:
The past year has been a milestone year for our company as
we continued to broaden our role as a pharmacy innovation
company. The evidence can be seen everywhere—from the
outstanding selling season of our pharmacy benefit manager
(PBM) and formation of new health care alliances to the
ongoing expansion of our retail pharmacies and the
elimination of tobacco products from our stores.
Importantly, we have changed our corporate name
to CVS Health.
Our company is at the forefront of an evolving health care
landscape, and our new name underscores our commitment to
helping people on their path to better health. We are delivering
breakthrough products and services to increase access to care,
improve health outcomes, and lower overall health care costs.
We foresaw many of the changes occurring in health care, and
we began assembling an unmatched suite of integrated assets
back in 2007 that have positioned us to capitalize on the
opportunities created, both now and in the future. CVS Health
remains a one-of-a-kind company. Ours is the only integrated
pharmacy model with a deep understanding of the diverse
needs of consumers, payors, and providers, and these
insights inform our innovative, channel-agnostic solutions.
We met our 2014 financial targets while creating
significant shareholder value
Before expanding on these and other topics, I want to provide
a brief overview of our strong financial performance in 2014.
Once again, we met or exceeded all our key financial targets
through our ongoing focus on the three pillars that we consider
essential to maximizing shareholder value: driving productive,
long-term growth; generating significant free cash flow; and
optimizing capital allocation.
Net revenues for the year increased nearly 10 percent to a record
$139 billion, while adjusted earnings per share from continuing
operations rose to $4.49—up 13.5 percent (excluding the loss
Larry J. Merlo
President and Chief Executive Officer
15
2014 Annual Report