McKesson 2015 Annual Report Download - page 3

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Dear Shareholders:
I am pleased to report that McKesson completed a strong Fiscal 2015 as we helped our
customers improve their performance in the name of better patient care. We extended our
steady track record of top-line growth, recording revenues of $179 billion compared to $137.4
billion in Fiscal 2014. Our Fiscal 2015 Adjusted EPS of $11.11* represents a 29% increase over
last year, contributing to a 17% compound annual growth rate since Fiscal 2009.
For 182 years, McKesson has been a leader in healthcare services. And while we are very
proud of our history, we could not be more excited about the promise of our future. Our busi-
ness model, our strategy and our performance position us for continued growth, increased
scale, and deeper relationships with our customers and our supplier and manufacturer
partners.
In Business for Better Health
As a company, we believe that better business health and better patient health are inextri-
cably linked. To achieve one means to succeed in the other. And we know that the only way
to accomplish both is to join efforts across the industry to work together with all parties to
deliver better, safer care. McKesson pursues this purpose across three broad dimensions.
First, we focus on business health. Through our distribution and technology solutions, we
help our customers improve the efficiency and effectiveness of their healthcare operations,
because a hospital, clinic or pharmacy that runs smoothly can provide patients with more
consistent, convenient and cost-effective services.
Second, we focus on care. The science of medicine and the art of care have never been more
advanced or complex. By truly understanding the process of care delivery across virtually
every healthcare setting, we are able to offer solutions that give providers access to the right
information and the right medication or medical tools at the right time, so they can provide
the clinical care, focus and support that patients need.
Third, we focus on connectivity. The sheer size and scale of healthcare demands new ways
to improve the flow of information among all parts of the healthcare ecosystem. From the
manufacturer, to the hospital, to the pharmacy, to the payer, and ultimately to the patient,
better access to and management of information enables high-quality care at a lower cost.
Our leadership role in the CommonWell Health Alliance, a not-for-profit association of
healthcare companies working to create universal access to healthcare data, is just the latest
example of our pioneering work to improve connectivity across every setting of care.
Clearly, the business of healthcare is evolving at an unprecedented pace. In the face of so
much change, our customers are looking to McKesson more than ever to provide the re-
sources, scale and expertise that will position them for continued health and vitality.
Fiscal 2015: Expanding Our Scale and Strength
Against this backdrop, we drove progress in several key areas over the past year that posi-
tion McKesson as a partner of choice for our customers and an investment of choice for our
shareholders.
Increasing Our Global Scale
At the top of the list, achieving operational control of Celesio was a major step in our strat-
egy to expand the scale and strength of our global supply chain. In Fiscal 2014, we acquired
Celesio, a German company that provides logistics and services to the pharmaceutical and
healthcare sectors primarily in Europe. Like McKesson, Celesio has a long, successful history
in pharmaceutical distribution and a customer-first approach. Together, we are one of the
*See Appendix A to this 2015 Annual Report for a reconciliation of earnings per share as reported under U.S. generally accepted accounting principles
(“GAAP”) to adjusted earnings per share. Non-GAAP measures such as adjusted earnings per share and adjusted operating profit should be viewed in
addition to, and not as an alternative for, financial results prepared in accordance with GAAP.
Revenues
$179B
Adjusted EPS
29%
increase
Compound
Annual
Growth Rate
17%
Since Fiscal
2009
*