Pharmacy Sector - CVS/Caremark October 22, 2015

1892 - founded by shoe supplier Frank Melville Company background Current CEO: Larry J. Merlo – served since 2011 & 30+ years with company 1892 - founded by shoe supplier Frank Melville 1922 - Melville Corporation incorporated 1963 - first Consumer Value Store (CVS) opens in Lowell, Massachusetts 1964 – CVS name used for first time with 17 locations Throughout the following decades purchased many other pharmacies: 1972 - Clinton Drug and Discount stores – 84 locations in Indiana and Midwest. 1977 - New Jersey-based Mack Drug chain – 36 locations in New Jersey. 1990 - Peoples Drug – 490 Locations throughout Mid-Atlantic 1997 – Revco Chains – 2500 locations in Ohio, Mid-Atlantic, and Southeast US. 1985 - sales reached $1 billion 1993 - CVS begins trading on NYSE (formerly traded as MVL) 1995 -1996 - Melville Corp. sold off other segments to focus on CVS 1999 - acquired Soma.com, the first online pharmacy, renamed it CVS.com 2001 - ExtraCare Card, first national pharmacy to launch rewards program 2004 - CVS purchased 1,268 Eckerd drug stores and Eckerd Health Services, a PBM/mail-order pharmacy business, from J. C. Penney 2006 - acquires Minneapolis-based MinuteClinic 2007 - CVS Corporation and Caremark Rx, Inc. complete their transformative merger, creating CVS Caremark, the nation's premier integrated pharmacy services provider 130+ years of success Grown significantly by acquisition Strategic move to focus on CVS as core business First pharmacy website and loyalty program MinuteClinic and Caremark acquisitions strategically diversify and grow services/ capabilities across pharmacy industry Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2015 Cigna

Basic relationship to CIgna CVS is a preferred pharmacy partner in our retail pharmacy network. Cigna does not utilize CVS’ PBM capabilities, although parts of Anthem, particularly BCBS does work with CVS for PBM capabilities. Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2015 Cigna

CORE Strategy

Strategic Fit - Increase in Demand - Supply shortage of Health Care providers - Location is a large Critical success factor - Great Cash flow and financial stability - Close Competing firms

Drivers

Growth

Recent performance Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2015 Cigna

Relation to Cigna Financial Performance Role in Healthcare: Tobacco Free Drive Largest Clinical Data Analysis : using data to shape patient care Minute Clinic and Coram Impacts on Cigna Covers a large portion of Anthem PBM PBM is a Big Strategy for both Cigna – Anthem Relation to Cigna Financial Performance CVS have > 21% market share in Retail Cigna disposes are 20% in mail order We need to grow our mail order while CVS have to grow the retail order or comp sales

Pro and Cons of Retail vs Home Delivery Anthem Merger Impacts Closer look at CVS vs Express Scripts Pro and Cons of Retail vs Home Delivery

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