ABC - Bergen Investor Day

7/31/2019 ABC - Bergen Investor Day

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Investor Day

December 14, 2011


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Comment Regarding Forward Looking Statements

Certain of the statements contained in this presentation are "forward-looking statements" within the meaning of Section 27A of the Securities Act of

1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current expectations and are subject to

uncertainty and change in circumstances. Among the factors that could cause actual results to differ materially from those projected, anticipated orimplied are the following: changes in pharmaceutical market growth rates; the loss of one or more key customer or supplier relationships; changes in

customer mix; customer delinquencies, defaults or insolvencies; supplier defaults or insolvencies; changes in pharmaceutical manufacturers' pricing

and distribution policies or practices; adverse resolution of any contract or other dispute with customers or suppliers; federal and state government

enforcement initiatives to detect and prevent suspicious orders of controlled substances and the diversion of controlled substances; quitam litigation

for alleged violations of fraud and abuse laws and regulations and/or any other laws and regulations governing the marketing, sale and purchase of

pharmaceutical products or any related litigation, including shareholder derivative lawsuits; changes in federal and state legislation or regulatory

action affecting pharmaceutical product pricing or reimbursement policies, including under Medicaid and Medicare; changes in regulatory or clinical

medical guidelines and/or labeling for the pharmaceutical products we distribute, including certain anemia products; price inflation in branded

pharmaceuticals and price deflation in generics; greater or less than anticipated benefit from launches of the generic versions of previously patentedpharmaceutical products; significant breakdown or interruption of our information technology systems; our inability to continue to implement an

enterprise resource planning (ERP) system to handle business and financial processes and transactions (including processes and transactions relating

to our customers and suppliers) of AmerisourceBergen Drug Corporation operations and our corporate functions as intended without functional

problems, unanticipated delays and/or cost overruns; success of integration, restructuring or systems initiatives; interest rate and foreign currency

exchange rate fluctuations; economic, business, competitive and/or regulatory developments in Canada, the United Kingdom and elsewhere outside

of the United States, including changes and/or potential changes in Canadian provincial legislation affecting pharmaceutical product pricing or service

fees or regulatory action by provincial authorities in Canada to lower pharmaceutical product pricing and service fees; the impact of divestitures or the

acquisition of businesses that do not perform as we expect or that are difficult for us to integrate or control; our inability to successfully complete any

other transaction that we may wish to pursue from time to time; changes in tax laws or legislative initiatives that could adversely affect our tax

positions and/or our tax liabilities or adverse resolution of challenges to our tax positions; increased costs of maintaining, or reductions in our ability

to maintain, adequate liquidity and financing sources; volatility and deterioration of the capital and credit markets; and other economic, business,

competitive, legal, tax, regulatory and/or operational factors affecting our business generally. Certain additional factors that management believes

could cause actual outcomes and results to differ materially from those described in forward-looking statements are set forth (i) in Item 1A (Risk

Factors) in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2011 and elsewhere in

that report and (ii) in other reports filed by the Company pursuant to the Securities Exchange Act of 1934.


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Steve Collis

President andChief Executive Officer


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A Decade of Delivering


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2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

$0.52$0.71

$0.92 $0.95

$0.59

$1.05

$1.26$1.44

$1.69

$2.22$2.54

+14%

+17%

+31%

+20%

+14%

Earnings Per Share fromContinuing Operations (GAAP)



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Diversity Within Our Over $80B Revenues

Retail

Alt Site

PBM

Health Systems

ABSG

Retail

Alt Site

PBM

Health

Systems

ABSGCustomer buys

generics from

ABC



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Integrated two large companies

Built highly efficient distribution network

Implemented new ERP system

Built market-leading specialty business

Expanded PRxOGenerics

Improved our balance sheet and credit ratings

Delivered tremendous value to shareholders


The First Decade


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The Next Decade

Vision

To be the preferred partner to healthcare providers and

pharmaceutical manufacturers

Mission

To improve patients lives by delivering innovative products and

services that drive quality and efficiency

ValuesAccountability Collaboration Customer Focus

Innovation Integrity Passion


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The Next Decade

Demographics continue to drive

organic growth

Healthcare coverage expands

significantly

Cost containment efforts drive

demand for our services

Distributors more entrenchedthan ever with manufacturers


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Industry Landscape

+ demographics

+expansion of coverage

+new drug launches

+new uses for existing drugs

-generic conversions

-increased focus on value

-safety concerns

-reimbursement pressures

Pharmaceutical Sales

Were built to succeed in this environment

Trends

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

0

50

100

150

200

250

300

350

400

sales

growth rate

Source: IMS Health 2011 Prognosis Report


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Replacing distributors with direct

service model adds over $41 billion in

costs

Industry costs to serve declined by 80

bps since 2007 due to efficiency and

productivity gains

Industry Landscape

The Role of Distributors

Source: The Role of Distributors in the U.S. Healthcare Industry by The Center for Healthcare Supply

Chain Research and Booz & Company, 2011.


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Fiscal 2011 Highlights


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FY 2011 Financial Highlights


Met or exceeded all of our goals

GAAP Diluted EPS of $2.54, up 14%

Total Revenue of $80.2 billion, up 3%

Operating Margin expansion of 8 bps

Cash Flow From Operations of $1.2 billion

Share Repurchases of $841 million


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FY2011 Highlights

Good Neighbor Pharmacy received the highest numerical score among chain drug store pharmacies in the proprietary J.D. Powerand Associates 2010-2011 National Pharmacy StudiesSM, tied in 2011. 2011 study based on 12,360 total responses, and measures7 chain drug pharmacies. Proprietary study results are based on experiences and perceptions of consumers surveyed June-July 2011.Your experiences may vary. Visit jdpower.com


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2011 VIP Awardfor

Value, Innovation, &

PerformancefromOur Largest Customer

Second Year in a Row

FY2011 Highlights


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Premier Source

IntrinsiQ

TheraCom*

FY2011 Highlights

* Closed 11/1/11

Strengthened Leadership Areas With Acquisitions

Increase value for customers and

suppliers

Strengthen core competencies

Domestic and international niche

opportunities Increase shareholder value

Acquisition Strategy FY2011


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Realigned Business Units

Drug Company

North RegionSouth RegionEast RegionWest Region

Canada

TechnologySolutions

American HealthPackaging

Specialty Distributionand Services

Oncology SupplyIONIntrinsiQ

Besse

ASDICSUS Bio

Consulting Services

LashXcenda

Premier SourceTheraCom

AndersonBrecon

Dave Neu James Frary Peyton Howell

FY2011 Highlights


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21

Looking Ahead


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Looking Ahead

Our Core Tenets


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ABC Value Proposition


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Conclusion

Key Challenges in FY12

We have the team to succeed

Execution on generics

Conversion of DCs to SAP

Reimbursement pressure on customers

Difficult comparisons to FY11


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David NeuPresident

AmerisourceBergen Drug Corporation


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Approx. $65 billion in annual revenue

5,000 associates

35 distribution centers in North America

ABDC works with every major U.S. manufacturer (1,500+)

Branded Rx Generic Rx Biotech and specialty medicines Over-the-counter (OTC) remedies, HH Care,

Health Beauty Aids

ABDC provides services across several business

channels

AmerisourceBergen Drug Corporation


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Number of Divisions 35

TOTAL:

Distribution Sq. Ft.Inventory $'sLines Per Day

4.7M$3.9B800,000

Average SKU's Per Division 24,000

Customer Service Level 99.4%

Order Accuracy 99.95%

20,000deliveries/day

Operating EfficiencyDriving Value to Customers and Shareholders


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Strong Performance

ABDC revenues up 5% Gross margin up

Expenses flat

Operating margin up

Excellent management of working capital

FY11 Financial Highlights


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Continued OperatingEfficiency Improvement


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Invested $1 billion over past 10 years in distribution network and IT systems

Strategically located distribution centers in US and Canada

Distribution technology and engineering used as part of Canada expansion plan

ABDC Supply Chain Network withCanada Expansion


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Innovation and Operating Efficiency Continue to

Drive Value for Our Customers and Shareholders

Improved System Efficiency with SAP Improved returns processing

Optimized customer service

Consolidated inside sales

Instituted virtual service model

Operational Improvements Improved Track and Trace design Increased regional product lines

Accelerated PRxO Generics product

introductions


Productivity Increases Continue for


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Productivity Increases Continue forDistribution Productivity

Continued Productivity Improvements

FY06 FY07 FY08 FY09 FY10 FY11

Expense

perline

Linesperhou

r

Expense per Line Lines per Hour


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Master DataManagement

Back-Office

MigrationDistribution Center

Deployments

Foundational data used tobuild businesstransactions

Accounts receivable,accounts payable,inventory management;Financial managementand reporting

Order management,customer service, andcredit management;New customer orderentry platform

Completed:July 2010

Completed:October 2010

Currently Underway:Phased Deployments

BT Implementations ImprovingBack Office and Distribution Systems DC by DC


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Collaboration DrivesInnovation and Value


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Good Neighbor Pharmacy Provider Network

0 2000 4000 6000 8000

Walmart

Rite Aid

GNPPN

CVS

Walgreens


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ABC PassPort


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ABC PassPort

An integrated procurement platform for all customer

interactions with AmerisourceBergen A customer portal integrated with other AmerisourceBergen

back office processes

Developed based on customer input

Built with usability in mind


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Focus on compliance management

Customized portfolios

Targeted incentives

Multi-channel approach

First to Shelf placement

Vigorous contract process

Inside Sales focus across segments

Generic Scale Expanding Channel Leverage


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Targeting GrowthMarkets


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Community andSpecialty

Pharmacy

Improving the Customer Experience:Two New Consolidated Business Segments

Health SystemsGPOs

Government


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Providers Face a New,

Unprecedented Productivity Imperative

Legislative changes will erode thecommercial market and grow

Medicaid and Exchangeparticipation

Medicare reimbursement declinesexpected to increase pressure on

productivity

As a result providers willexperience:

More patients, more totaldollars

Fewer dollars per patient

Increase capacity utilization

Reduce variable costs

Lower administrative costs

Reinvent revenue streams andalter their business models

Providers Face Tactical NeedsMarket and Regulatory Pressure


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Improving the Customer Experience

Improved customer coverage

Enhanced national/regional acct mgmt

Enhanced solutions portfolio

Increased resources for high-touch segments

Telesales supplement to direct sales

Consolidation of Alt Care and Retail

Community & Specialty Pharmacy


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Retail Independent

Retail Chain

Long Term Care

Behavioral Health Pharmacy Health Maintenance Organization

(HMO) Pharmacy

Mail Order Pharmacy

Specialty Pharmacy

Home Infusion

Home Healthcare

Clinic Services

Dialysis

Surgery Center

Rehabilitation

Community & Specialty Pharmacy

Help communitypharmacists attract newpatients, improve retention

and medication adherence,and drive down operatingcosts

Continuously improvegenerics offering and driveenhanced compliance and

penetration

Help customers prepare forupcoming generic launchesand AMP implementation

Marketplace Strategic Approach

H l h S


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Cost ControlSolutions

Quality CareSolutions

MarketGrowth Solutions

Channel Strategy Focuses on Quality Care, Market Growth and Cost Control

PerformanceAssessment

InventoryManagement

Pharmacy TransitionExecution

IntegratedServices Center

Medication Process

Medication Policy

Medication Tracking

Coordinated PatientCare

Health Systems

Employee PharmacyServices

Employer PharmacyServices

Community Pharmacy

Services


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ABDC Will Continue to Invest in Our Core While

Leveraging the Improved Solution Portfolio

Our Promise

Our ultimate goal is to

focus our business to best

serve our customers. We

have, and are continuing to

provide, services and

solutions that align directly

with our customers needs.

CustomerExperience

BusinessProcesses

Solutions

Operations

Enabling

Technologies

EnablingTechnologies

F f FY12


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Focus for FY12

Generics, Generics, Generics


Cross Company Leverage of Specialty Assets

SAP Implementation

Provide a Best in Class Customer Experience

Growth in Target Markets

I C l i


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ABDC has had a decade of strong performance.


Our investments in operations, technology, and the

commercial organization will ensure the sustainability ofearnings growth going forward.


AmerisourceBergen Drug Corporation is well-positioned forcontinued success for FY12 and beyond.

In Conclusion


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James FraryPresident, AmerisourceBergen SpecialtyDistribution and Services


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ABSG at A Glance

Services that Span the


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Services that Span the

Specialty Industrys Needs

ABSG Revenue Strength


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ABSG Revenue Strength

Oncology Supply

Other Services

ASD Healthcare ICS

Besse Medical

$15.5 Billion Business

L d i S i lt


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Leader in Specialty

Distribution & Services

Largest oncology products distributor

Largest blood plasma products distributor

Leading distributor in dialysis

Strong positions in other physician specialties

Largest specialty 3PL provider dedicated to Rx


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Value of Specialty Distributors

Value of specialty distribution

calculated in recent study

April 2011 by Arthur D. Little & Center

for Healthcare Supply Chain Research Replacing specialty distributors

would add $3.5 billion in costs to

manufacturers and providers (~13%

of product value studied) Traditional distributors create similar savings

Source: Specialty Pharmaceuticals and the Role of the Specialty Distributor; Arthur D. Little, 2011


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Specialty Generics

Historic performance in FY2011 On top of historic FY2010

Successful oxaliplatin buy-in, gemcitabine and

docetaxel launches Modest opportunity for FY2012

Reduced profit contribution from gemcitabine anddocetaxel

Oxaliplatin returning August 2012

Opportunity for future launches


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Biosimilars

ABSG extremely well positioned forbiosimilars, in collaboration with ABCS

Commercialization of biosimilars will follow

mold of branded products and require moreservices than traditional generics

e.g. Market analysis and access strategies, specialdistribution and administration, compliance and

persistency programs, REMS

Process and timing of product approvals TBD


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Oncology Demand Will Grow

Sources: National Health Expenditure data, , National Cancer institute, 2010;

Unhealthy America: economic burden of chronic disease (Milken institute), Oliver

Wyman analysis;


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Role of Community Practices

Community practices key to patient access and highquality, efficient care

Reimbursement pressures continue to challenge practices

Community Oncology Alliance found (as of March

2011): 315 practices acquired by a hospital since late 2007

111 practices merged into another entity

Positive trends are emerging

Payers recognizing quality and efficiency of communitypractices

Hospitals and physicians focusing more on collaboration

ABSGs Broad


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ABSGs Broad

Practice Solutions

Core Services(Distribution, GPO)

PracticeManagement

Patient Value

Market leadership Distribution best

service, value

IV, orals, supplies

GPO bestcontract value

Flexibility

Engagement

Information

Nucleus Solutions Flexibility

Interoperability

Rich informatics

Pharmacy andpatientmanagementsolutions

Physician-drivenquality initiatives

Total cost & quality

Beyond Rx

Beyond the practice

Personalized meds

Tools & network

The preferred partner to physicians and manufacturers

Adoption of Practice Tools


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Adoption of Practice Tools

Underscore Value

Nucleus Solutions Installed base grew 118%+ yoy

Dispensing grew 295% yoy Installing cabinets in larger

practices with higher

treatment volumes AND

practices are improving their

utilization


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IntrinsiQ Acquisition

Industry leading provider of oncology software andinformatics

IntelliDose: Meaningful-use certified software tracks and manages

complex chemotherapy dosing

Practices using Nucleus Solutions will soon have access to a muchmore robust data set to support treatment decisions

Expands ABSG offerings to help providers and pharma to

improve the quality of cancer care

Physician-driven Quality


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Physician driven Quality

Initiatives in Action

Michigan Oncology Medical Home Initiative

In conjunction with Priority Health and Physician Resource

Management

Beyond pathways e.g., side effect management, reduced

hospitalizations

Flat monthly fee for patient support services, such as patient

and financial counseling, medication therapy management

ION Solutions providing technology and informatics Practices receive new compensation structure to

improve efficiency and patient outcomes


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Summary

Specialty market continues to be a growth driver Growth fundamentals are strong

Generics and biosimilars create new opportunities

ABSG will continue specialty leadership Breadth, depth and collaboration across ABC

Quality service and customer satisfaction

We continue to innovate to enhance the successof our partners Strong demand for ABSG solutions to help pharma

and providers improve quality and efficiency inspecialty care


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Peyton HowellPresident, AmerisourceBergen

Consulting Services


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Consulting Services



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Consulting Services


Review our expanded service portfolio to support the manufacturerincluding recent acquisitions

Provide highlights of capabilities and review how businesses have reached

significant scale and are positioned to leverage growth

Describe how the market environment supports strong growth foroutsourced manufacturer services across the product life cycle

Summarize how our services support core distribution and product access


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AmerisourceBergen Consulting Services

Focused on the manufacturer Pharmaceutical, Biotech, Device,

Diagnostic, and other medical technologyor treatments

Focused on innovation to provide valueand expertise to manufacturers andsupport product access

A trusted, essential partner tomanufacturers

Acquisitions position us for expandedgrowth and changing product landscape

Expertise

Innovation

Value

Efficiency

Quality


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Aligned Business StrategyPatient

ServicesStrategic

ConsultingContract & Clinical

Packaging

Business

unitsLash, TheraCom,

Premier SourceXcenda AndersonBrecon

Customers Manufacturers

Core business

drivers Innovative capabilities

People

Operational Processes

& Systems

Innovative capabilities

People

Technical capabilities,

Processes & Systems

Innovative capabilities

People

Technology investment

& engineering

Quality Management

Scale 3,400 Associates 6 major call center

locations

225 Associates

Field-based and remote

associates across the US

Europe & Canada

1,500 Associates

US and UK

68


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Combined Business Unit

69

Over 5,000 Associates

FY11 Revenue Growth of 20%

Above Market Growth Opportunities

Business Development

Solution Selling (eg Compliance solutions) Operations & Quality Management Tools

Expansion of Global business development

Collaboration to support growth includes:



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US Locations

Charlotte, NC Rockville, MD

Dallas, TX Portland, OR

Lincoln, RI San Francisco, CA

Pittsburgh PA Tampa, FL

Rockford, IL Washington, DC

United Kingdom

Hay-on-Wye, Wales

Call Center Locations


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Patient Services

Lash Group

Premier Source

TheraCom

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Patient Services


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Patient ServicesA Full Strategic PartnerDedicated to Supporting Patient Access

72

Benchmarking

Exposure Analysis

Support Services

Strategy & Development

Reimbursement Support

Co-pay Assistance

Patient Assistance

Clinical Services & Adherence Programs

Analytics & Reporting

Performance

Management / QA

Web-based Services

Product Life Cycle

REMS Management

Billing, Collections & Revenue Cycle Management


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TheraCom

Closed on Acquisition of TheraCom on November 1

Provides outsourced reimbursement support and product hubs for

pharmaceutical and biotech manufacturers

Founded in 1996, acquired by a Caremark legacy company in 2002.

Exceptional growth over the past three years Over 950 associates

Unique from Lash in that services are focused on pharmacy benefit

products that include test claims capabilities

Includes two business units: Services and Distribution

Services Business is the core asset but the distribution services are integrated

within the reimbursement programs to meet unique product needs such as

training kits and patient assistance


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Strategic Rationale: Lash & TheraCom

Pharmacy services model is a market differentiator Essential to efficient growth of oral and self-administered injectable

products

Expanded, differentiated capabilities

Reimbursement services are projected to continue to grow in importancewith health reform and constrained economy

Fundamental service across wide range of products and throughoutproduct life cycle

Focus on market growth and patient access

Opportunity to differentiate service levels and operational offering Opportunity to expand services including strategic consulting and clinical

programs Geographic expansion also supports growth

Expanded platform for partnership

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L di M k P i i


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Leading Market Position

75

Unmatched scale and breadth of patient access relatedservices trusted partner with proven outcomes for over20 years

Over 131 programs for 69 different manufacturersincluding programs for 14 of top 15 pharma manufacturers

Acquisition of TheraCom and Premier Source furtherdifferentiates patient service model to include emergingbiotech and molecular diagnostic manufacturers


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Health reform will expand need for these services

Opportunities to assist with transition to coverageand ongoing access to new insurance sources

Shift from support from uninsured to underinsured

Newly insured andcoverage sources

Increased need for reimbursement supportservices to navigate access barriers

Need for new copayment assistance resources

More underinsuredpatients

Increased need for adherence and patient-centricsupport services

Increased need for streamlined solutions thatreduce MD administrative work

New focus onhealth outcomes

and cost efficiency

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Strategic Consulting

Xcenda

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Xcenda Highlights


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Xcenda Highlights

78

Strong double-digit top line growth continues

Over 1,130 projects across 120 active clients

Significant growth in managed markets agency clients,field reimbursement and international projects



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Xcenda

g

No one competitor is an analog to the breadth of services we offer

Value: Managed Markets Agency Services, Reimbursement Analysis &Market Research

Evidence: Health Outcomes, Analytics, Risk Management &

Epidemiology Access: Payer & Provider Access Strategy and Field Reimbursement

Services for the full lifecycle of healthcare products

Scientific excellence partnered with commercial applications

Science that enlightens. Creativity that excites

Platform for partnership across consulting services

Th V l C l


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The Value Cycle

PRE-LAUNCH

Foreseeable unmet

need in the market

Reason for Being

Current unmet need in

the market and your

product as solution

Reason to Listen

Data showing your

product addressing

that need clinically

Reason to Believe

Data showing your product

addressing that need economically

Reason to Endorse

AT LAUNCH

POST-LAUNCH

80

Manufacturers Face Opportunities and


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Development of

health insurance

exchanges

Need for new solutions

to ensure patient

access

Challenges in the Post-reform Era

Patient education

and navigation

support

Medicaid

expansion

Comparative

effectiveness

research

Integrated healthcare

systems Impact of ACOs

and payment-

bundling pilots

Opportunities&

Challenges

Xcenda is perfectly positioned to be the PARTNER of CHOICE forhealthcare manufacturers

81


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Contract & Clinical Packaging

AndersonBrecon

AndersonBrecon


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AndersonBrecon

Long history of quality and scale across wide range of packaging needs

Branded, Generic, OTC, Specialty and Biologics 1,522 associates across over 1 Mil square feet of facilities

Largest contract packager in US

Anderson & Brecon now united under one leader to support global

approach

Global business model with UK facility

New expanded capabilities including clinical trials packaging andspecialty pharma center

Dramatic growth and expansion of business

U i S h


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Unique Strengths

Unequaled packagingcapability for 14 of top 15manufacturers

Innovative engineering,design and projectmanagement

Lean Six Sigma CompanyQuality

Expertise

Speed & Scale


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Specialty Pharma Center (SPC)


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Unique capabilities to supportpackaging needs of potentcompounds

Facility opened February, 2011and completed 9 productlaunches in first 7 months

Capability now expanding to UK tosupport global opportunities


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Concluding thoughts


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Manufacturer Services Environment is Driving Growth

Specialized services that require re-investment and innovation are ideal for

manufacturer outsourcing

Manufacturer cost pressures are facilitating growth of our services

Significant value to leverage expertise and innovation and outsource patient services andpackaging services

Regulatory environment

Ability to develop very unique, measurable capabilities to support quality

Compliance concerns, risk management and HIPAA

Services that require scale and ability to respond to volume changes

Importance of speed shifts manufacturer to buy vs build options

S S i Fi S ABC


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Strong Strategic Fit to Support ABC

Supports product access which is fundamental to product

sales and success

Supports Product

Access & Use

Opportunity to better understand product opportunities,lifecycle, and market changes impacting ABC customers

Deepens ManufacturerRelationships

Services directly support patients and providers includingABC customers (doctors, pharmacies, hospitals, patients)Patient Focused

Strong value proposition for manufacturersQuality & Efficiency

Leading market position and differentiator for ABC that ispositioned for above market growthMarket leadership

89

Service offering includes services essential to product access


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Tony PeraSenior Vice President Supply Chain


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Branded Pharmaceuticals



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The Status of Fee For Service

Effectively all manufacturers covered

FFS renewals continue to pay us for the value we

provide Performance very near 100%

Less than 10% is now subject to price fluctuation

Retained our value with key pharmaceuticalcompanies



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Pharmaceutical Services Value

Distribution

Services

CustomerValidation

andMonitoring

OrderMgmt.

Pick,Pack, &Ship*

Financial

Management

Pricing &Transaction

Mgmt.

Receivable Risk

Mgmt.

Sales &MarketingServices

ProductLaunches& SamplePrograms

Compliance,Persistency,

andAwarenessPrograms

SourcingPrograms& Other

MarketingServices

Customers

Manufacturer

Information &Data

Management

Inventory& Sales

Data

Patient andPrescriber

Data

OtherAd HocReports


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Generic Pharmaceuticals



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Generics Growth Continues

Patent expirations

Use of generics reduce healthcare costs

Increased awareness and acceptance

Generic dispensing rates continue to rise



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84.4% 83.8% 83.2% 82.3% 80.0% 79.0%

15.6% 16.2% 16.8% 17.7% 20.0% 21.0%

0%10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006 2007 2008 2009 2010 YTD

Sep

2011

Dollars

Brand

38.8% 34.7% 30.3% 27.7% 24.5% 22.2%

61.2% 65.3%69.7% 72.3% 75.5% 77.8%

0%10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006 2007 2008 2009 2010 YTD

Sep

2011

# of Scripts

Generics

%MARKETSH

ARE

Source: IMS Health

Sales and TRx Share of Brands and Generics



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$-

$10.0

$20.0

$30.0

$40.0

2011 2012 2013 2014

$9.2

$39.2

$10.4

$17.8

U.S. Branded

AriceptTaxotere

Gemzar

Levaquin

ZyprexaLipitor

Plavix

Seroquel

Singulair

Actos

Diovan &Diovan HCT

Oxycontin

Aciphex

Niaspan

CymbaltaNexium

Celebrex

Patent ExpirationsABC Fiscal Year



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Retail Healthcare Providers

Regional drugstore chains

Food/Drug combination

Independent pharmacies

Institutional Healthcare Providers

Hospitals

Long Term Care/Alternate Site

Specialty Physician

Oncology/Rheumatologist/Ophthalmologist

The Right Customer Mix at ABC



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Make as much or more gross

profit dollars per unit on

generics

Reduced receivable riskReduced working capital

Can negotiate better terms,

i.e. 60 days DPOs

Produces higher ROCC

Holds true even after exclusivity

periods

Economics of Generic vs. Branded

Time

GrossPro

fitDollars

Generic

Brand

Exclusivity Post-Exclusivity Mature



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Monitor and react to industry trends

Manage PRxO Generics Program

Procure products from reliable sources Provide manufacturers market access

Deliver optimal value to customers

Market shortagesSupport the Prime Vendor Model

Generics Philosophy



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Formulary that consist of over 7,500 SKUs

Value Pricing

Portfolio management

Tailored programs address specific customer needs

Focused on customer profitability

Dynamic market response

100+ manufacturers in PRxO generics

Key component of Prime Vendor Model

PRxO Generic Program



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Date of expiry/launch Sooner

Status of exclusivity Exclusivity

Authorized Generic (AG) Yes

Number of players expected Fewer is better

Who the players are

Channel Consideration Retail/Oncology

Mail Order/Retail/Hospital/Oncology

Expected conversion Higher is better Database of more than 100 recent launches

Price as a % of brand Higher is better

Factors Considered in Forecast Benefit to ABC



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Total 34 product launches

7 represent 80% of new product dollars

None is bigger than 25% of all new products

Two big ones

17 are expected to have an exclusivity period

All are predominately retail/mail order

17 are large mail order products (> 25% of scripts)

No product > 2% of generics

FY 2012 Generic Launches



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Early read on two largest launches

Zyprexa:

Normal generic launch patterns

Conversion rates as expected

Lipitor:

Generic launch generally as expected

Conversion rates appear to be lower than expected



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Branded Rx market is challenging

ABC expects to retain value

Generics growth is robust ABC is in great position

The right customer mix

PRxO Generics program

Summary


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Mike DiCandiloExecutive Vice President and

Chief Financial Officer



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Long Term Financial Goals

EPS growth of approximately 15%

Revenue growth with the market

Operating margin expansion

ROIC > WACC

Free cash flow approximates net income

Minimum 30% of free cash flow returned toshareholders



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2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

$0.52

$0.71

$0.92 $0.95

$0.59

$1.05

$1.26$1.44

$1.69

$2.22

$2.54

+14%

+17%

+31%

+20%

+14%

Earnings Per Share from

Continuing Operations (GAAP)



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2006 2007 2008 2009 2010 2011

$60.8

$65.7$70.2

$71.8

$78.0 $80.2

Revenues

(Billions)



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Operating Margin Expansion

2006 2007 2008 2009 2010 2011

Operating Expense Gross Profit

bps +8

+6+7

+5

+16

+8



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Asset Management

30

2725 25 25 25

1820

19 1817 17

10

15

20

25

30

35

2006 2007 2008 2009 2010 2011

Inventory DaysA/R Days

Days



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2006 2007 2008 2009 2010 2011

10.2%

11.6%12.3%

13.8%

17.4%

19.3%

Return on Invested Capital

WACC

ROIC

Value

Creation



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0%

20%

40%

60%

80%

100%

120%

140%

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

$1.4

$1.6

2006 2007 2008 2009 2010 2011

% of FCF returned

to shareholders

Income fromContinuing

OperationsFree Cash Flow

Cash Generation & Returns to Shareholders

billions

30% Minimum

FCF returned to

shareholders



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Fiscal Year 2012 Targets

GAAP Diluted EPS in the range of to $2.74 to $2.84, up 8% to 12%

Flat to modest growthRevenue

Expansion in the high single digitto low double digit bps range

OperatingMargin

In the range of $700 to $800

million including CapEx of $150

Free Cash Flow

$400 millionShare

Repurchases

FY12 EPS Growth Drivers


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Fourth quarter highestgrowth rate

8-12%EPS Growth

+Share repurchase $400million

-Net interest expense up

3-4%Cash Deployment

5-8%Op Inc Growth

+ABDC generics

- ABSG generics-Canada, ABCSexpenses (acquisitions)

5-7%Margin Expansion

+Market growth 0-1%+ABSG growth

-Large customer growth

-Longs/CVS0-1%Revenue Growth

DriversFY 12



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EPS Impact of Key Specialty Generics

Year Product(s) Contribution

FY2011

Oxaliplatin

Gemcitabine

Docetaxel

$0.48

FY2012

Gemcitabine

Docetaxel

Oxaliplatin

$0.14-0.15

Substantiallyoffset by ABDC

generic launches



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Fiscal Year 2012 Targets

Revenue Growth and Operating Margin by Business Unit

Business

Unit % of Revenue

Revenue

Growth

ABDC

ABSG

ABCS

Total

-1% - 0%

5% - 6%

>100%0% - 1%

79% - 81%

18% - 20%

1%100%

Operating

Margin Range

1.43% - 1.47%

1.95% - 2.05%

5% - 6%1.57% 1.62%



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Fiscal 2012 Capital Deployment

Significant Financial Flexibility

$1.8 billion of cash @ 9/30/11 ($1.3 billion available)

Free Cash Flow of $700-$800 million expected for FY12

$500 million from recent debt offering

Total available for investment about $2.5 billion to $2.6 billion

$400 million of shares expected to be repurchased in FY12

$400 million debt repayment in September 2012

$130 million for dividend

$250 million for TheraCom acquisition$1.3-$1.4 billion available for further investment

Whats

Available

Where to

deploy?


l l b l


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Financial Flexibility

Strong BalanceSheet

9/30/11 Total debt$1.4B

9/30/11 Cash$1.8B

InvestmentGrade Debt

Rating

30%-35%Debt/Capital Ratio

AmpleLiquidity

$700m avail onRevolver

$700m avail on A/R

Securitization FacilityNew Commercial

Paper Facility

StrongOperatingCash Flow

Ability to fund strategic growth and

return cash to shareholders



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Strong, consistent performance

Better than expected 2011

Solid forecast for 2012 despitetough comparison

Great financial flexibility

Conclusion


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Q & A


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Steve CollisPresident and

Chief Executive Officer

the next decade of delivering

Documents

ABC - Bergen Investor Day