McKesson 2014 Annual Report Download - page 3

Dear Stockholders,
I am pleased to report that McKesson completed a strong fiscal 2014, making great strides in
our mission to bring better health to our customers and the millions of patients they serve.
We extended our steady track record of top-line growth, recording revenues of $137.6 billion
compared to $122.1 billion in fiscal 2013 and translating our strong top-line results into even
stronger adjusted earnings per diluted share (Adjusted EPS) growth. Our fiscal 2014 Adjusted
EPS of $8.35 represents a 31% increase over last year, contributing to a 17% compound annual
growth rate since fiscal 2007.
We earn our industry-leading position every day by delivering exceptional value to our
customers and suppliers, and we are proud of the robust partnerships we forge across every
sector. We deepened many of these relationships in fiscal 2014, including a new five-year
agreement with the Rite Aid Corporation for expanded distribution of both brand and generic
pharmaceuticals, and recognition from Wal-Mart as a Supplier of the Year for our exceptional
teamwork and partnership.
At the same time, our technology businesses continued to make progress in repositioning
themselves to address our customers’ evolving needs. We realigned our technology portfolio
to focus greater attention on emerging markets, including analytics, connectivity solutions, and
tools and services that support value-based care models, while divesting businesses that are
no longer core to our customers’ strategies. We saw particular strength in our connectivity and
payer-facing businesses, which we believe represent the growth engines for our technology
segment going forward.
Against the backdrop of these important advances in North America, clearly the most significant
event of the year was our acquisition of a majority stake in Celesio AG, a leading international
wholesale and retail company and provider of logistics and services to the pharmaceutical
and healthcare sectors. This acquisition will strengthen our ability to compete in an increasingly
global industry, while providing the scale and reach our customers and manufacturing
partners need to improve their efficiency.
In response to your feedback, we also made important modifications to our corporate
governance practices in fiscal 2014, including the appointment of Edward A. Mueller as our
first lead independent director; the addition of a new independent director, N. Anthony
Coles; the reassignment of several committee leadership roles; and numerous adjustments to
our compensation policies. We believe these steps further align management’s interests with
your interests and demonstrate our ongoing commitment to active stockholder dialogue and
Board responsiveness.
As we begin a new, global chapter in our company’s remarkable history, I could not be
more excited about our outlook. Guided by our ICARE Shared Principles, we continue to
innovate in ways that are helping to create a healthier future for our customers and their
patients, while supporting the transformation of our industry. It is an honor to lead an
organization that is so focused on what is important and what is right, with bold aspirations
to bring better health to all.
On behalf of the entire corporation, thank you for your commitment to McKesson.
John H. Hammergren
Chairman of the Board,
President and Chief Executive Officer
McKesson Corporation
As we begin a new, global
chapter in our company’s
remarkable history, I could
not be more excited about
our outlook.