What happens
when you start
with heart?
2015 Annual Report
Net revenues $ 153,290 $ 139,367 10.0%
Operating profit $ 9,454 $ 8,799 7.4%
Net income $ 5,239 $ 4,644 12.8%
Diluted EPS from continuing operations $ 4.62 $ 3.96 16.8%
Free cash flow* $ 6,456 $ 6,516 (0.9%)
Stock price at year-end $ 97.77 $ 96.31 1.5%
Market capitalization at year-end $ 107,645 $ 109,800 (2.0%)
* Free cash flow is defined as net cash provided by operating activities less net additions to properties and equipment (i.e., additions to property and equipment
plus proceeds from sale-leaseback transactions).
Financial highlights
Net revenue
in billions of dollars
107.1 123.1 126.8 139.4 153.3
11 12 13 14 15
Diluted EPS from
continuing operations
in dollars
2.59 3.02 3.75 3.96 4.62
11 12 13 14 15
Annual cash dividends
in dollars per common share
0.50 0.65 0.90 1.10 1.40
11 12 13 14 15
1 Letter to Shareholders
7 Start with Heart
21 2015 Financial Report

(in millions, except per share figures) 2015 2014 % change
Dear Fellow Shareholders:
CVS Health enjoyed a successful 2015 that was highlighted by
excellent performance across our enterprise and two key acquisitions
that support our strategy for growth in an evolving health care market.
That strategy is focused on creating superior value for patients, payors,
and providers through an unmatched suite of integrated assets.
From our nationwide retail footprint to our leading pharmacy benefits management
(PBM) and specialty businesses, and now our leading presence
in long-term pharmacy care, we have forged a competitive advantage that
is helping us benefit from a broad range of market trends. They include
the implementation of the Affordable Care Act, the aging U.S. population,
and increased prescription utilization. Of the roughly 710 million prescriptions
added to the market over the past five years, CVS Health has
captured 39 percent through one of our dispensing channels. In other
words, we are growing our share of an expanding market.
CVS Health is truly a one-of-a-kind company that helps patients
get the care they need through the channel that works best for
them. Products such as Maintenance Choice?, Specialty ConnectTM,
and Pharmacy Advisor? remain unmatched in the marketplace. In
specialty, we have unparalleled capabilities to holistically manage
patients, provide clinical support, and drive superior outcomes. As
clients look to drive down overall health care costs, our growing
volumes?along with our Red Oak generic sourcing venture with
Cardinal Health?create unparalleled scale and purchasing expertise
that help them best accomplish this.
And we certainly aren?t standing still. We broadened our reach in
2015 with the acquisition of Omnicare, the nation?s leading provider of
pharmacy services to the long-term care market. Omnicare dispenses
100 million scripts annually to approximately 2 million patients. We
also grew our core pharmacy business with the purchase of more
than 1,670 pharmacies and nearly 80 retail clinics from Target
Corporation. This transaction, which closed in December, expanded
our pharmacy count by 20 percent and our number of clinics by
8 percent. I?ll have more to say about both of these acquisitions, but
let me first offer a brief overview of CVS Health?s financial performance.
Larry J. Merlo