2018 Financial Guidance and Investor Day - Centene · CENTENE –2018 FINANCIAL GUIDANCE AND INVESTOR DAY 3 ... (including but not limited to Medicaid, Medicare, ... government sponsored

2018 Financial Guidance and Investor Day

December 15, 2017

SSID: Centene Corp Password: welcome2017

2CENTENE – 2018 FINANCIAL GUIDANCE AND INVESTOR DAY

IntroductionEdmund E. Kroll, SVP, Finance and Investor Relations


Forward-Looking StatementsThe company and its representatives may from time to time make written and oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act ("PSLRA") of 1995,including statements in this and other presentations, press releases, filings with the Securities and Exchange Commission ("SEC"), reports to stockholders and in meetings with investors and analysts. Inparticular, the information provided in this presentation may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Centene andcertain plans and objectives of Centene with respect thereto, including but not limited to the expected benefits of the acquisition of Health Net, Inc. or Fidelis Care. These forward-looking statements canbe identified by the fact that they do not relate only to historical or current facts. Without limiting the foregoing, forward-looking statements often use words such as "anticipate", "seek", "target","expect", "estimate", "intend", "plan", "goal", "believe", "hope", "aim", "continue", "will", "may", "can", "would", "could" or "should" or other words of similar meaning or the negative thereof. Weintend such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in PSLRA. A number of factors, variables or events could cause actual plansand results to differ materially from those expressed or implied in forward-looking statements. Such factors include, but are not limited to, Centene's ability to accurately predict and effectively managehealth benefits and other operating expenses and reserves; competition; membership and revenue declines or unexpected trends; changes in healthcare practices, new technologies and advances inmedicine; increased healthcare costs; changes in economic, political or market conditions; changes in federal or state laws or regulations, including changes with respect to government healthcareprograms as well as changes with respect to the Patient Protection and Affordable Care Act and the Health Care and Education Affordability Reconciliation Act and any regulations enacted thereunderthat may result from changing political conditions; rate cuts or other payment reductions or delays by governmental payors and other risks and uncertainties affecting Centene's government businesses;Centene's ability to adequately price products on federally facilitated and state based Health Insurance Marketplaces; tax matters; disasters or major epidemics; the outcome of legal and regulatoryproceedings; changes in expected contract start dates; provider, state, federal and other contract changes and timing of regulatory approval of contracts; the expiration, suspension or termination ofCentene's contracts with federal or state governments (including but not limited to Medicaid, Medicare, and TRICARE); the difficulty of predicting the timing or outcome of pending or future litigation orgovernment investigations; challenges to Centene's contract awards; cyber-attacks or other privacy or data security incidents; the possibility that the expected synergies and value creation fromacquired businesses, including, without limitation, the Health Net acquisition and the Fidelis Care acquisition, will not be realized, or will not be realized within the expected time period, including, butnot limited to, as a result of conditions, terms, obligations or restrictions imposed by regulators in connection with their approval of, or consent to, the acquisition; the exertion of management's timeand Centene's resources, and other expenses incurred and business changes required in connection with complying with the undertakings in connection with certain regulatory approvals for the HealthNet acquisition and the Fidelis Care acquisition; disruption from acquisitions, including the Health Net acquisition and the Fidelis Care acquisition, making it more difficult to maintain business andoperational relationships; the risk that unexpected costs will be incurred in connection with, among other things, the Health Net acquisition, the Fidelis Care acquisition and/or the successful integrationof acquisitions; changes in expected closing dates, estimated purchase price and accretion for acquisitions; the risk that acquired businesses will not be integrated successfully, including the Health Netacquisition and the Fidelis Care acquisition; the risk that the conditions of the Fidelis Care acquisition may not be satisfied or completed on a timely basis, or at all; inability to pursue alternatives to theFidelis Care acquisition, or the risk that potential competing acquirers of Centene may be discouraged from making favorable alternative transaction proposals due to certain provisions in the FidelisCare asset purchase agreement; failure to obtain expiration or termination of applicable waiting periods or to receive any required regulatory approvals, consents or clearances for the Fidelis Careacquisition, and the risk that, even if so obtained or received, regulatory authorities impose conditions on the completion of the transaction that could require the exertion of management's time andCentene's resources or otherwise have an adverse effect on Centene or the combined company; business uncertainties and contractual restrictions while the Fidelis Care acquisition is pending, whichcould adversely affect Centene's business and operations; change of control provisions or other provisions in certain agreements to which Fidelis Care is a party, which may be triggered by thecompletion of the Fidelis Care acquisition; loss of management personnel and other key employees due to uncertainties associated with the Fidelis Care acquisition; the risk that, following completion ofthe Fidelis Care acquisition, the combined company may not be able to effectively manage its expanded operations; restrictions and limitations that may stem from the financing arrangements that thecombined company will enter into in connection with the Fidelis Care acquisition; Centene's ability to achieve improvement in the Centers for Medicare and Medicaid Services Star ratings and maintainor achieve improvement in other quality scores in each case that can impact revenue and future growth; additional indebtedness incurred or equity issued to finance the Fidelis Care acquisition;availability of debt and equity financing, on terms that are favorable to Centene; inflation; foreign currency fluctuations; and risks and uncertainties discussed in the reports that Centene has filed withthe SEC. These forward-looking statements reflect Centene's current views with respect to future events and are based on numerous assumptions and assessments made by Centene in light of itsexperience and perception of historical trends, current conditions, business strategies, operating environments, future developments and other factors it believes appropriate. By their nature, forward-looking statements involve known and unknown risks and uncertainties and are subject to change because they relate to events and depend on circumstances that will occur in the future. The factorsdescribed in the context of such forward-looking statements in this presentation could cause Centene's plans with respect to the Health Net acquisition and the Fidelis Care acquisition, actual results,performance or achievements, industry results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is currently believed that theexpectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct and persons reading this presentation aretherefore cautioned not to place undue reliance on these forward-looking statements which speak only as of the date of this presentation. Centene does not assume any obligation to update theinformation contained in this presentation (whether as a result of new information, future events or otherwise), except as required by applicable law. This list of important factors is not intended to beexhaustive. We discuss certain of these matters more fully, as well as certain other risk factors that may affect Centene's business operations, financial condition and results of operations, in Centene'sfilings with the SEC, including the annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.


Earnings Guidance PolicyOur Company’s policy is, “that the Company undertakes no obligation to update its earnings guidance, other than as part ofits quarterly or yearly earnings disclosure, and that silence on guidance by the Company or Company officials should not beinterpreted that guidance has or has not changed. In any event, no updated guidance would ever be given that is notpreviously or simultaneously disclosed in an SEC filing or other broad non-exclusionary means.”

“Further, it is Company policy to generally not hold discussions with investors commencing two weeks prior to earningsrelease.”

This presentation shall not constitute an offer to sell or the solicitation of an offer to buy securities nor shall there be any saleof any securities in any state in which such solicitation or sale would be unlawful prior to registration or qualification of anysecurities under the laws of any such state.

This presentation also includes non-GAAP financial measures. You can find Centene's presentations on the most directlycomparable GAAP financial measures calculated in accordance with GAAP and reconciliations in Centene's filing with the SEC,including the current report on Form 8-K filed on December 14, 2017. Centene is providing certain non-GAAP financialmeasures in this presentation as Centene believes that these figures are helpful in allowing investors to more accuratelyassess the ongoing nature of Centene's operations and measure Centene's performance more consistently across periods.Centene uses the presented non-GAAP financial measures internally to allow management to focus on period-to-periodchanges in Centene's core business operations. Therefore, Centene believes that this information is meaningful in addition tothe information contained in the GAAP presentation of financial information. The presentation of this additional non-GAAPfinancial information is not intended to be considered in isolation or as a substitute for the financial information preparedand presented in accordance with GAAP.


Strategic OverviewMichael F. Neidorff, Chairman & CEO

6CENTENE – 2018 FINANCIAL GUIDANCE AND INVESTOR DAY 19CENTENE – 2018 FINANCIAL GUIDANCE AND INVESTOR DAY


High Growth

Industry Leading

Discipline

Capacity

Capabilities


2001

2004

2013

2017

$1B

$11B

$47.8B*

* guidance mid-point

2018

$60.4B* in revenue

300+ product solutions

29 states

14M members

~1M Int’l individuals

$327M

Total Revenue


Fortune 500

Fortune’s Fastest Growing Companies

Fortune’sGlobal 500

Fortune’s Change the World List

Building momentum and driving growth by:

• Leveraging our multi-lined portfolio

• M&A expertise

• Medicaid

• Marketplace

• MLTSS

• Foster Care

• Federal Services

Industry Leading Products

#66 #27 #244 #19


EPS

TSR

$ 18% increaseTotal Revenues

12% increaseAdjusted Diluted*

78% increaseTotal Shareholder Return(year-to-date as of 12/12/17)

2017 (P) Financials(year-over-year)

35% increaseTotal Shareholder Return(year-to-date as of 12/12/17)

TSR5-Year CAGR

*Represents non-GAAP measure; See Appendix for reconciliation of non-GAAP measures


• $3.75B transaction

• Centene will be the leader in the country’s four largest Medicaid states

• Fidelis Care

• Fastest growing Medicaid and MLTSS plan

• 2nd fastest growing Medicare Advantage plan

• Only plan to operate statewide on multiple products

• Expected to close April 1, 2018

11


2018 Guidance

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

$47.8B

$60.0B - $60.8B

(in

bill

ion

s)

2017 Guidance Midpoint

2018 Guidance Range

$5.47-$5.87

2018 Adjusted Earnings Per Diluted Share*



A Growth Company

Long term expectations of double digit growth in revenue and EPS

$1.9 TrillionAddressable Market

Less than 50% Managed care penetration in

government sponsored healthcare(Medicaid and Medicare expenditures)



• Innovate

• Partner with providers

• Local activation

• Integrate and innovate

• Control costs

• Additional platforms for growth

• Being leveraged for additional global opportunities

Envolve &Health Care Enterprises

InternationalInvestments

HealthPlans


Growth Objectives

Medicare

Advantage

Marketplace

Medicaid

New Medicaid Market

New Medicare Advantage Market

Marketplace Expansion Existing Market

New Marketplace Market

* Fidelis Care acquisition

*


Advocate for Sound Public Policy and a Bi-Partisan Approach to Policy Changes

Tax

Reform

Cost Sharing

Reductions

Waiver

Flexibility

Healthcare

Reform



Transformation in an already

Complex Industry

• Realignment of payer-provider relationships

• Sample Centene provider relationships

• The country’s largest home-based ACO – USMM

• ASO partnerships – contract with Maryland Physicians Care

• Joint Venture in NC – Carolina Complete Health

• Data integration with providers – Interpreta

17


Leadership Appointments

Cindy BrinkleyPresident and Chief Operating Officer

Jesse HunterExecutive Vice President, M&A and Chief Strategy Officer

Mark BrooksExecutive Vice President and Chief Information Officer

Kevin CounihanSenior Vice President, Products


Transforming the health of the community one person at a time

Our Purpose

Execution

of Growth

Strategies

Focused on

Fundamentals

Critical

Mass

Discipline

and

Expertise

Well positioned for further success



GuidanceJeff Schwaneke, EVP, CFO


2013 2018 Guidance

2013 vs. 2018($ IN BILLIONS)

$60.0 -$60.8

$10.9

2013 2018 Guidance

ADJ. NET INCOME MARGIN*

1.6%

1.9% -2.1%

REVENUE



Low High

Total Revenues $47,400 $48,200

GAAP Diluted EPS $4.04 $4.18

Adjusted Diluted EPS*(1) $4.86 $5.04

HBR 87.0% 87.4%

SG&A Expense Ratio 9.4% 9.8%

Adjusted SG&A Expense Ratio*(2) 9.3% 9.7%

Effective Tax Rate 39.0% 41.0%

Diluted Shares (in millions) 176.3 177.3

2017 Guidance($ IN MILLIONS, EXCEPT SHARE DATA)

(1) Adjusted diluted EPS excludes amortization of acquired intangible assets of $0.55 to $0.57 per diluted share, Health Net and Fidelis acquisition related expenses of $0.07 to $0.09 per diluted share, and Penn Treaty assessment expense of $0.20 per diluted share.

(2) Adjusted SG&A expense ratio excludes Health Net and Fidelis acquisition related expenses of $20 million to $25 million and the Penn Treaty assessment expense of $56 million.

* Represents non-GAAP measure. See Appendix for reconciliation of non-GAAP measures.


Fidelis Acquisition Assumptions

Closing date of April 1, 2018

$2.3 billion of equity issued February 1, 2018

$1.6 billion of debt issued March 1, 2018

$1.0 billion of intangible assets

Achieve 80% of 1st year synergies


Low High

Total Revenues $60,000 $60,800

GAAP Diluted EPS $4.63 $4.97

Adjusted Diluted EPS*(1) $5.47 $5.87

HBR 86.3% 86.8%

SG&A Expense Ratio 9.1% 9.6%

Adjusted SG&A Expense Ratio*(2) 9.0% 9.5%

Effective Tax Rate 49.5% 51.5%

Diluted Shares (in millions) 201.1 202.1

2018 Guidance($ IN MILLIONS, EXCEPT SHARE DATA)

(1) Adjusted diluted EPS excludes amortization of acquired intangible assets of $0.64 to $0.66 per diluted share and Fidelis acquisition related expenses of $0.20 to $0.24 per diluted share.

(2) Adjusted SG&A expense ratio excludes Fidelis acquisition related expenses of $70 million to $75 million. * Represents non-GAAP measure. See Appendix for reconciliation of non-GAAP measures.


2017Guidance

Fidelis NewMarkets/

Expansions

Marketplace HIFReturn

CaliforniaIHSS

PassThrough/

Other

2018Guidance

Total Revenue(IN BILLIONS)

$47.4 -$48.2

~$8.7~$2.6

~$1.1~$(0.7)

$60.0-$60.8

~$2.0

$61.8 -$62.6

~$(1.1)


Health Benefits Ratio

2017Guidance

HIFReturn

ProductMix

Fidelis 2018Guidance

87.0% -87.4%

~(70) bps

~60 bps~(55) bps

86.3% -86.8%


Adjusted SG&A Expense Ratio

2017Guidance

Fidelis CaliforniaIHSS

ProductMix

Other 2018Guidance

~(55) bps~25 bps

9.0% -9.5%

9.3% -9.7%

~20 bps

~(15) bps


Income Tax Rate

2017Guidance

HIFReturn

Fidelis 2018Guidance

39.0% -41.0%

~1,200 bps ~(150) bps

49.5% -51.5%


2018 Guidance Assumptions

Investment income of $185 million - $200 million

Interest expense of $325 million - $340 million

Cash flow from operations between 1.5x – 2.0x net earnings

Adjusted EBITDA between $2.8 billion - $3.0 billion

Capital expenditures of approximately $600 million

Debt to Capital ratio in high 30% range by end of 2018

Business expansion costs of $0.20 - $0.24 per diluted share


2018 Guidance Assumptions

Fidelis Assumptions:• Closing date of April 1, 2018• $2.3 billion of equity issued February 1, 2018• $1.6 billion of debt issued March 1, 2018• $1.0 billion of intangible assets• Achieve 80% of 1st year synergies

Adjusted diluted EPS excludes:• Transaction costs of $0.20 to $0.24 per diluted share and• Intangible amortization of $0.64 to $0.66 per diluted share

Q & A




Business UpdatesCynthia Brinkley, President & COO


2017 – Solid Year for Centene

12.3 Million(Total Membership)

68%

9%

3%

2% 18%

2017As of 9/30/17

*chart excludes non-risk membership and TRICARE eligible


2017 – Continue Our Growth

&

Nebraska

Nevada

Missouri

Illinois


2017 – Integration is On Track

&


2017 – Leveraging Our Global Platforms

&


Business Updates

MarketsChristopher D. BowersExecutive Vice President, Markets

ProductsKevin J. Counihan

Senior Vice President, Products

InternationalArvan S. ChanVice President, International Markets

Moderator: Cynthia Brinkley, President & COO


Business Update: MarketsChristopher Bowers, EVP - Markets


Update on Markets

Health Plan

Expansions

California

Progress

Clinical

Program

Example

California

Progress

Clinical

Program

Example


Health Plan Expansions

Implementation - January 1, 2017

Implementation - May 1, 2017

Membership(in 000s)

Market Share

Membership(in 000s)

Market Share

35%

38%

0

20

40

60

80

3/31 9/30

0

75

150

225

300

3/31 9/30


10

15

20

3/31 9/30


Implementation – January 1, 2018

Implementation - July 1, 2017 Membership (in 000s)

Membership(in 000s)

0

150

300

450

3/31 9/30 4/1

• TANF

• CHIP

• Marketplace (2018)

Products

395k to 435k members projected by 4/1/18



Community Health Choices

• 1/1/18 go-live in Southwest Region with LTC members

• 1/1/19 go-live in Southeast Region with LTC members

• 1/1/20 go-live in the Central, Northwest and Northeast Regions with LTC members


Update on Markets

Health Plan

Expansions

California

Progress

Clinical

Program

Example


California: Integration Update

Highlights

• Small Group

• Large Group

• Operations


CA: Commercial Products

Individual

• Strategic rate increases

• Competitor market exits

• New PPO product offering

Small Group

• 2016 corrective pricing and benefit design

• 2018 competitive pricing and new PPO product offering

GrowthStrategies

Large Group

• Maintain market share

• Improved 2018 sales


California: Operational Performance

• Insourced & expanded case management

• Implementing Centene systems & processes

• Enhanced concurrent review

• Positive Net Promoter Score trend

• Positive member satisfaction trend

Improved Customer Experience

Expanded Medical Management


Update on Markets

Health Plan

Expansions

California

Progress

Clinical

Program

Example


1 in 11 Americans has diabetes(30 million)

Every 19 seconds, someone is diagnosed with diabetes.

$1 of $5 Healthcare

Dollars

Diabetes in the U.S.

Affects 37% of Americans and costs the health system

$245 Billion annually



Diabetes Management Health event identified

through claims data

Outreach

EngageComplete program

Re-enter cycle awaiting next health event Current Industry

Approach

Intervention can take 60-90 days for claims data to be reviewed


On.Demand

MAXIMIZING INTERVENTION

• Event-driven engagements powered by real-time data

• Accelerated intervention at “teachable moments” to increase retention

• Continuous adaptation to new participant behavior

Real-Time Diabetes Management

Cellular Technology

Cloud-Based Glucose Readings

Supply Chain Coordination

Simple Population Reports


On.DemandReal-Time Diabetes Management

Cellular Technology

Cloud-Based Glucose Readings

Supply Chain Coordination

Simple Population Reports

1Study Period: Enrollment of August 2015 thru August 31, 2016 with 3 month claim run out allowed. Users vs. non-users of GHT strips. Magnolia Health plan members only.

DEMONSTRATEDTRENDS

* ER spend PUPM

* ER Visits PUPM

* Test Strip Utilization PUPM

* Average Glucose Levels PUPM


Periodic Eye Exams

$110

$520

No DiabeticRetinopathy (E10.9,

E11.9)

With DiabeticRetinopathy

(E10.3-E10.618,E11.3-E11.39)

of diabetics have an

annual eye exam at

Magnolia Health

66%

of diabetics have an

annual eye exam in

the United States

42%

VISION CLAIM COST

Average Annual Claim Cost forDiabetic Magnolia Health Members


Update on Markets

Health Plan

Expansions

California

Progress

Clinical

Program

Example


Business Update: ProductsKevin Counihan, SVP - Products


National View

New States KS, MO, NV, NY (Fidelis Care)

Expansion States FL, GA, IN, OH, TX, WA

Sole CarrierAZ (2 counties)MS (Statewide)GA & IN (some rural counties)

States Where We are Covering Bare Counties

MO (25), IN (3), OH (3), NV (14), WA (2)

Statewide Presence AR, MS, NH, NV

Centene State

Centene HIM Membership

2018 New HIM State

Peak Membership

2014 76,000

2015 167,000

2016 683,000

*2014-2015 exclude Health Net

2017 1,200,000


Demographics:

84% 92%

2016(avg. age 42)

2017(avg. age 42)

54%

46%

55%

45%

16%

2018*(avg. age 43)

55%

45%

Gender and Age

84%

201685%

12%

3% 16%

201790%

2%

8%

16%

92%2018*

87%

2%

11%

Metal Tier

Silver

Bronze

Gold & Platinum

Female

Male

* Based on singups as of 12/12/17


Products

MA /

MAPD

D-SNP

I-SNP

MMP

C-SNP

Med. Supp.

EGWP

2017 Medicare Profile

• Membership: over 325k (Projected Year-End 2017)

• Multi-product

• Multi-state

2017 Centene Medicare Market


Products

MA /

MAPD

D-SNP

I-SNP

MMP

C-SNP

Med. Supp.

EGWP

2018 Medicare Profile

• Membership: over 425k (Projected Year-End 2018)

• Multi-product

• Multi-state

2017 Centene Medicare Market

2018 New Centene Medicare Advantage Additions


Year-Over-Year Growth

*2018 Year-End projection includes Fidelis’ current enrollment data

61%13%

15%

11%

63%13%

14%

10%

2017 (P)

2018 (P)

MA/MAPD

DSNP

MMP

On pace to meet or exceed 100k YoY enrollment

growth target*

Med. Sup.

Medicare Product Breakout


Medicare Strategy

Geography Beneficiary Plan Design

Focus onCNC Markets

Focus onindividuals

under 400% FPL

~80% Plans with $0 premiums

~90% Plans ranked Top 3 on

Plan Finder


Operationalizing Strategies and Insights

• Brand: New national brand

• Network: Expand non-Medicaid provider network & increase focus on value based purchasing

• Sales and Marketing: Targeted broker relationships and community depth

• Insourcing call center and other operating functions


Medicare Stars

• CMS appeal - 2018 rating

• Mitigation efforts - 2019 revenue

• Focused action - 2019 results

• Investing for long-term success

Stars Update


Federal Services

• 2018 represents our 30th year serving the military and veteran populations

• Managed Care and specialty services covering TRICARE, VA, DUIP and MFLC

• ASO business that manages over $4B in premium equivalent services

• Nation’s 14th largest defense contractor

• 5-Year TRICARE West Region contract starts Jan. 1, 2018


Update on Products

Products

Priced

Appropriately

Performing

to Plan

Driving

Growth


Business Update: InternationalArvan S. Chan, Vice President, International Markets


Global Challenges Create Unique and High-Potential Opportunities

Global Health Challenges

Outdated Healthcare

Infrastructure

Fragmented Approach to

Care

Aging Population

Increase in Care

Complexity

Creating promising opportunities to apply Centene’s

Expertise

IT Systems & Technologies

Capabilities


Establishing Our International Portfolio Since 2014

Registered citizens

705,000

registered citizens

180,000


Ribera Salud is a Key Platform for Expansion in Growing Global MarketsInvestment by Centene in July 2014

2 hospitals and 3 primary care centers were accredited by Joint Commission International in 2017

Public Private Partnerships

Health IT

Imaging Diagnostics

Laboratory Services


Accountable Care Systems as New Models of Care


Leverage Local Strategic Assets to Support UK Accountable Care InitiativesEntered into the Market in November 2014

New accountable care systems based

on NHS Five Year Forward View

Partnership with local health and social commissioners on opportunities

to support coordination and integration of care

Establishing an integrator platform through strategic investments


Leveraging Our Products and Public Sector Experience to Create Value Globally

proactive planning

population management

care delivery integration


TargetedInvestments

Disciplined approach to assessing and developing new opportunities

Aligning Our Local Platforms for Continued Success

Strong Local Partners

Collaboration with local expertise to navigate foreign political &

market dynamics

Experienced Local Management Team

Strong leadership and management experience to enact strategic vision and work through

local process

Break

SSID: Centene Corp Password: welcome2017



Healthcare Policy UpdatePanel Discussion – Michael Neidorff, Moderator


Healthcare Policy Update

Richard Gephardt

Tommy Thompson

Jonathan Dinesman

James Capretta

Matt Schlapp


Growth and Diversification Jesse Hunter, EVP – M&A & Chief Strategy Officer


Strategy

• diversification of markets and products

• adding capabilities

• leveraging our strong local approach

Transforming the health of the community one person at a time

Our Purpose

Industry Leading5-Year Revenue

Growth Rate

$11B2013

$60.4B

* guidance mid-point

2018

41%

41%

5 Yr.CAGR

78CENTENE – 2018 FINANCIAL GUIDANCE AND INVESTOR DAY 78

Geographic Diversification

2008 2013 2018

Mar

kets

States Int'l

9States

2008 2013 2018

19 States

29 States

(2 Int’l)

Int’l


All Products,All Markets

~70

~170

~300

2008 2013 2018

Pro

du

ct S

olu

tio

ns

Envolve

FederalServices

Commercial(Marketplace)

Medicare

ComplexCare

Medicaid


Populations & Products AZ AR CA FL GA IL IN KS LA MD1 MA MI MN MS MO NE NH NM NY2 NV OH OR PA3 SC TN TX VT WA WI

TANF ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

Medicaid Expansion ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

CHIP ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

ABD (non-duals) ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

ABD (Medicaid only dual-eligibles ) ● ● ● ● ● ● ● ● ● ● ● ●

Medicaid-Medicare Plans ● ● ● ● ● ● ●

Intellectually/Developmentally Disabled ● ● ● ●

Long-Term Services and Supports ● ● ● ● ● ● ● ● ●

Foster Care ● ● ● ● ● ● ● ● ● ● ● ● ●

Medicare Special Needs Plan ● ● ● ● ● ● ● ● ● ● ●

Medicare Advantage ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

Health Insurance Marketplaces ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

Commercial Insurance (Lrg & Sm Group) ● ● ● ●

Correctional Healthcare ● ● ● ● ● ● ● ●

Specialty Health Solutions AZ AR CA FL GA IL IN KS LA MD MA MI MN MS MO NE NH NM NY NV OH OR PA SC TN TX VT WA WI

Pharmacy Benefits ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

Behavioral & Specialty Therapies ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

Life & Health Management ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

Primary Care Solutions for Complex Pop. ● ● ● ● ● ● ● ● ●

Managed Vision ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

Dental Benefits ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

Telehealth (Nurse Triage/Education Line) ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

1 MD is Managed Service Organization (MSO) contract.2 The transaction is expected to close April 1, 2018 and is subject to various closing conditions and receipt of New York regulatory approvals, including approvals under the

New York Not-for-Profit Corporation Law. 3 Pennsylvania operations are expected to commence January 1, 2018.


Scale and Diversification

BUSINESSES BY REVENUE SIZE

2

15

Over $1 billion

2017(P)

2012


Development of Non-Medicaid Assets

Product 2017 Annualized Premium

* Premium equivalency under fee based contracts** Revenues not fully consolidated by Centene

These categories further advance growth and margin expansion opportunities

Envolve $10B+ ($2B external)

Marketplace $4B+

Medicare/Duals $4B+

Federal Services* $4B+

MSOs* $1B+

International** ~$900M


M&A Experience

• Specialty• Product• Technology• Provider Assets

40+ transactions since IPO

Market

Entry

Market

Expansion

Capability

Expansion

M&A consistently used as a tool to achieve strategic objectivesSame criteria and disciplined approach over past 15 years

Spain UK


Deal Lookback

ProductAcaria – Specialty RxCenturion JV – CorrectionalHealth Net – Federal Services & Medicare

TechnologyCasenet – Care Management PlatformInterpreta – Healthcare analytics

ProviderUSMM – In home primary careLifeShare – IDDRibera Salud – InternationalThe Practice Group – International

Health Net - $15B

Fidelis Care - $10B


Strategic Capital Deployment Opportunities

Medicare

Advantage

Technology

Capabilities

Provider

Capabilities

Existing

Core

Businesses


• Revenue diversification• Margin expansion

PortfolioManagement

Strategy

• Combination of both organic growth and M&A

Leverage of Successful Local Operating Model

M&A Focus

• Core businesses• Technology capabilities• Medicare Advantage• Provider assets

Continue Disciplined Approach to Growth


Growth and DiversificationBrent Layton, EVP, Chief Business Development Officer


$697BAddressable Markets

$792B

$100B

$9B

$105B

$172B

Correctional Healthcare

Health Insurance Marketplace

Federal Services

Medicaid

Medicare

International*Data based on CBO projections and Company estimates for FY19

$1.9 trillion*


Correctional Healthcare

Health Insurance Marketplace

Federal Services

Medicaid

Medicare

International

$252 billion

TargetedPipeline


Medicaid Pipeline Realization

Total Pipeline

Total Contracts$139B

Targeted Pipeline

TargetedContracts$103B

Realized or Anticipated Revenue*

ContractWins$19B

2012-2017

*Anticipated revenue includes contract wins that have not yet gone live

($ IN BILLIONS)

69

48

38

80% Win Rate


2017 Awarded Contracts

WASHINGTON MISSISSIPPI ILLINOIS ARKANSAS

North CentralIntegrated Physical

and Behavioral Health

(1/1/18 go-live)

MississippiCANReprocurement

(7/1/18 go-live)

Integrated Care Program &

Family Health Plan Reprocurement & Sole

Source Foster Care

(1/1/18 go-live)

Behavioral Health/ IDD Application

(2/1/18 go-live)


ExistingMarkets

ProductExpansion

NewMarkets

InnovativeModels

Growth and Diversification All Products and All Markets


19M

38M

Total US Healthcare Landscape

54M

21MENROLLMENTTotal: 75 million

MEDICAID

MEDICARE

ENROLLMENTTotal: 57 million

SPENDTotal: $546 billion


$247B$299B

Enrollment Source: CMS64 FY16 Expenditure Source: CBO and CMS FY16

$203B

$472B

Managed Care

FFS

Medicare Advantage

FFS


14M

26M

Centene’s Existing Medicaid Markets

43M

13MENROLLMENT

Total: 56 million

MEDICAID

MEDICARE

ENROLLMENTTotal: 40 million



$197B$212B

Managed Care

FFS

Enrollment Source: CMS64 FY16

$135B

$255B

Medicare Advantage

FFS

Expenditure Source: CBO and CMS FY16


ExistingMarkets

ProductExpansion

NewMarkets

InnovativeModels



Existing Markets

Diverse methods for growth and expansion

in existing markets

Reprocurements

Service Expansion

Geographic Expansion


Existing Markets - Reprocurements

Statewide Medicaid Managed Care and Long Term Care Reprocurement

RFP submitted November 2017Go-Live January 2019

KanCare ReprocurementRFP due January 2018Go-Live January 2019

Complete Care ReprocurementRFP due January 2018Go-Live October 2018

STAR+PLUS ReprocurementRFP due March 2018Go-Live January 2020

In-Process

Submitted

CHIP Rural Service Area ReprocurementRFP submitted July 2017 Go-Live September 2018


Existing Markets - Service Expansion

MISSISSIPPIINDIANA

LOUISIANA

• HIP 2.0 (Medicaid Expansion)

• Hoosier Care Connect (ABD Program)

• TANF, CHIP

• Behavioral Health

• Hospital Inpatient

• Behavioral Health

• Pharmacy

• Medicaid Expansion

WASHINGTON

• Foster Care

• Behavioral Health Integration


Existing Markets - Geographic Expansion

MISSOURI ILLINOIS

Andrew

Platte

Nodaway

Holt

Atchison

Scott

Stoddard

Perry

CapeGirardeau

St.Francois

Madison

Texas

Shannon

Reynolds

Carter

PulaskiPhelps

DentIron

Wayne

Newton

Polk

Greene

Dallas

Webster

Laclede

Wright

Lawrence

Vernon

Barton

Jasper

Dade

Cedar

Christian Douglas

Butler

Franklin

St. ClairHickory

Camden

MorganCole

Osage

BatesBenton

Cass

Henry

Miller MariesCrawford Ste.

Genevieve

WarrenSt. Charles

Johnson Pettis

Boone

Callaway

St. Louis

Lincoln

Jackson

Cooper

LafayetteSaline

ClayRay

HowardAudrain

CarrollChariton

Pike

ClintonMonroe

Ralls

Linn Marion

Caldwell

DeKalbDaviess

Macon Shelby

GentryGrundy

Sullivan

HarrisonMercer

AdairKnox Lewis

Worth Putnam Scotland Clark

McDonaldBarry

StoneTaney Ozark

HowellOregon Ripley

Dunklin

Andrew

Platte

Nodaway

Holt

Atchison

Scott

Stoddard

Perry

CapeGirardeau

St.Francois

Madison

Texas

Shannon

Reynolds

Carter

PulaskiPhelps

DentIron

Wayne

Newton

Polk

Greene

Dallas

Webster

Laclede

Wright

Lawrence

Vernon

Barton

Jasper

Dade

Cedar

Christian Douglas

Butler

Franklin

St. ClairHickory

Camden

MorganCole

Osage

BatesBenton

Cass

Henry

Miller MariesCrawford Ste.

Genevieve

WarrenSt. Charles

Johnson Pettis

Boone

Callaway

St. Louis

Lincoln

Jackson

Cooper

LafayetteSaline

ClayRay

HowardAudrain

CarrollChariton

Pike

ClintonMonroe

Ralls

Linn Marion

Caldwell

DeKalbDaviess

Macon Shelby

GentryGrundy

Sullivan

HarrisonMercer

AdairKnox Lewis

Worth Putnam Scotland Clark

McDonaldBarry

StoneTaney Ozark

HowellOregon Ripley

Dunklin

KaneDuPage

Whiteside Lee

DeKalb

Cook

McHenry

Carroll Ogle

Jo Daviess StephensonLake

Kendall

Rock Island

Will

Hardin

Massac

PopeJohnson

Jackson

Union

WhitePerry

Franklin

Monroe

Hamilton

St. Clair

Washington Jefferson

Wayne

Williamson Saline Gallatin

Randolph

MarionClinton

Bond

Fayette

Madison Clay RichlandLawrence

Greene

JerseyEffingham Jasper Crawford

MacoupinMontgomery

ScottMorgan

SangamonMoultrie

Coles

Edgar

MaconDouglas

Pike

Adams

Shelby

Cumberland

Christian

Clark

McDonoughFulton

Tazewell McLean

Peoria

Ford

Warren

Knox

Woodford

Livingston

Iroquois

Hancock

Brown CassMenard

PiattSchuyler Logan

ChampaignMason De Witt

Vermilion

Henry

Kankakee

MercerStark

Marshall

LaSalleBureauGrundy

KaneDuPage

Whiteside Lee

DeKalb

Cook

McHenry

Carroll Ogle

Jo Daviess StephensonLake

Kendall

Rock Island

Will

Hardin

Massac

PopeJohnson

Jackson

Union

WhitePerry

Franklin

Monroe

Hamilton

St. Clair

Washington Jefferson

Wayne

Williamson Saline Gallatin

Randolph

MarionClinton

Bond

Fayette

Madison Clay RichlandLawrence

Greene

JerseyEffingham Jasper Crawford

MacoupinMontgomery

ScottMorgan

SangamonMoultrie

Coles

Edgar

MaconDouglas

Pike

Adams

Shelby

Cumberland

Christian

Clark

McDonoughFulton

Tazewell McLean

Peoria

Ford

Warren

Knox

Woodford

Livingston

Iroquois

Hancock

Brown CassMenard

PiattSchuyler Logan

ChampaignMason De Witt

Vermilion

Henry

Kankakee

MercerStark

Marshall

LaSalleBureauGrundy

2017 2018


ExistingMarkets

ProductExpansion

NewMarkets

InnovativeModels



New Markets

NV

MD

PA

NY

2017 2018

20182012(14 states) (29 states)

NE


New Markets

Centennial Care 2.0

Populations: TANF, CHIP, ABD, LTSS

Enrollees: 700,000

Incumbents: 4

Spend: $4.5B

RFP Status: Submitted

Go-live: January 2019

Iowa Health Link New Managed Care Program

NEW MEXICO IOWA NORTH CAROLINA

Populations: TANF, CHIP, ABD, IDD, LTSS

Enrollees: 617,000

Incumbents: 2

Spend: $3.7B

RFP Status: Evaluating

Go-live: July 2019

Initial Populations: TANF, CHIP, ABD

Enrollees: 1.9M

Incumbents: 0

Initial Spend: $9.6B

RFP Status: Spring 2018

Go-live: July 2019


New Markets

12,000 members

40 FQHCs and look-alike

organizations

Innovative JV owned physician-led health plan

North Carolina’s oldest professional organization


ExistingMarkets

ProductExpansion

NewMarkets

InnovativeModels



Product Expansion

Expanding Centene’s

footprint and driving

revenue via a diverse

product portfolio



ExistingMarkets

ProductExpansion

NewMarkets

InnovativeModels


Innovative Models

Flexible and innovative response to states and

provider environment through unique partnerships and

models

AR

NC

MD

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://postbeyond.com/molson-coors-scale-social-brand/&ei=OPV1VfyUFMGosAXw-oHgBQ&bvm=bv.95039771,d.aWw&psig=AFQjCNEUtXRBZVxhxgF2VZe6mduCmkLOMw&ust=1433880246841726

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://postbeyond.com/molson-coors-scale-social-brand/&ei=OPV1VfyUFMGosAXw-oHgBQ&bvm=bv.95039771,d.aWw&psig=AFQjCNEUtXRBZVxhxgF2VZe6mduCmkLOMw&ust=1433880246841726


In Summary…

Robust PipelineDemonstrated Ability to Convert Opportunities to CNC Revenue

Visibility on 2018

Revenue in Excess of $60B with Significant Opportunities in Process

Diversified Growth Strategy

Opportunities Across Markets, Products, Specialty Services and M&A

WE ARE A GROWTH COMPANY

Q & A



Appendix

2017 FINANCIAL GUIDANCE & INVESTOR DAY


Reconciliation of Non-GAAP MeasuresIncluded in this presentation is Adjusted Diluted EPS. Management believes that this non-GAAP financial measure provides information that is useful to investors in understanding period-over-period operating results and enhances the ability of investors to analyze Centene’s business trends and performance. This non-GAAP financial measure should not be considered in isolation, or as a substitute for the corresponding GAAP financial measure and may not be comparable to similar measures used by other companies.

The Company also references Adjusted Net Income Margin and Adjusted EBITDA guidance, defined as net earnings attributable to Centene Corporation, excluding income tax expense, interest expense, depreciation, amortization (excluding senior note premium amortization) and non-cash stock compensation expense. The Company cannot provide a reconciliation of Adjusted Net Income Margin and Adjusted EBITDA guidance without unreasonable efforts. As such, they have been excluded from the reconciliation below.

A reconciliation of Adjusted Diluted EPS, a non-GAAP financial measure, with the most directly comparable financial measure calculated in accordance with GAAP follows:

Reconciliation of GAAP Earnings from Continuing Operations to Adj. Diluted EPS:

2012

GAAP Earnings from continuing operations 89$ Amortization of acquired intangible assets 5 Income tax effects of adjustments (2)

Adjusted Earnings from Continuing Operations 92$

Di luted shares outstanding (in thousands) 107,429

GAAP Di luted EPS 0.83$

Adjusted Di luted EPS (1) 0.86$

(1) Adjusted Diluted EPS is defined as GAAP diluted net earnings from continuing operations before amortization of acquired intangible assets, acquisition related expenses, and the tax impact of such adjustments, calculated on a per share basis. In 2017, Adjusted Diluted EPS excludes the Penn Treaty assessment expense. We believe these adjustments are not indicative of future performance.

(2) The amortization of acquired intangible assets per diluted share presented are net of the income tax benefit estimated to be $0.31 to $0.35 for the year ended December 31, 2017 and $0.37 to $0.39 for the year ended December 31, 2018.

(3) The acquisition related expenses per diluted share presented are net of the income tax benefit estimated to be $0.04 to $0.06 for the year ended December 31, 2017 and $0.12 to $0.16 for the year ended December 31, 2018.

(4) The Penn Treaty assessment expense per diluted share is net of the estimated income tax benefit of $0.12 for the year ended December 31, 2017.

Reconciliation of GAAP diluted EPS to Adjusted Diluted EPS:

GAAP di luted EPS

Amortization of acquired intangible assets (2)

Acquis i tion related expenses (3)

Penn Treaty assessment expense (4)

Adjusted Di luted EPS (1)

$0.55 - $0.57

$0.07 - $0.09

$0.20

$4.86 - $5.04

2017 Annual

Guidance

$4.04 - $4.18

2018 Annual

Guidance

$4.63 - $4.97

$0.64 - $0.66

$0.20 - $0.24

-

$5.47 - $5.87

Documents

2018 Financial Guidance and Investor Day - Centene · CENTENE –2018 FINANCIAL GUIDANCE AND INVESTOR DAY 3 ... (including but not limited to Medicaid, Medicare, ... government sponsored