EX-99.2 3 dex992.htm SLIDES, PRESENTED AT REGISTRANT'S INVESTOR DAY MEETING Slides, presented at Registrant's Investor Day Meeting
Welcome to
Investor Day
December 11, 2008
Exhibit 99.2

Dave Yost
President &
Chief Executive Officer

3
Comment Regarding Forward Looking Statements
This
presentation
contains
forward-looking
statements
about
AmerisourceBergen’s
future
business
and
financial
performance,
estimates
and
prospects.
These
statements
are
based
on
our
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
or
implied
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
or
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;
changes
in
U.S.
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
pharmaceuticals
we
distribute,
including
erythropoiesis-stimulating
agents
(ESAs)
used
to
treat
anemia
patients;
price
inflation
in
branded
pharmaceuticals
and
price
deflation
in
generics;
significant
breakdown
or
interruption
of
our
information
technology
systems;
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;
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
legislation
or
adverse
resolution
of
challenges
to
our
tax
positions;
our
ability
to
maintain
adequate
liquidity
and
financing
sources;
continued
volatility
and
further
deterioration
of
the
capital
markets;
and
other
economic,
business,
competitive,
legal,
tax,
regulatory
and/or
operational
factors
affecting
our
business
generally.
Our
most
recent
annual
report
on
Form
10-K,
quarterly
reports
on
Forms
10-Q
and
current
reports
8-K
(which
we
may
revise
or
supplement
in
future
reports
filed
to
the
SEC)
provide
additional
information
about
these
risks,
uncertainties
and
other
matters.
We
do
not
undertake
to
update
our
forward-looking
statements.

4
ABC Today & Tomorrow
Distribution & Related Services
Generics & Fee for Service
Specialty Dist. & Related Services
Health Policy Environment
Packaging & Business Transformation
Financial Review
Questions and Answers
Today’s Agenda

5
Dave Yost
President & Chief Executive Officer
Tony Pera
Senior Vice President,        
Supply Chain Management
Steve Collis
Executive Vice President of ABC         
President ABSG
Peyton Howell
ABSG President Consulting
Services & Health Policy
Mike DiCandilo
Executive Vice President and
Chief Financial Officer of ABC, Chief
Operating Officer of ABDC
Today’s Speakers

6
Today’s Theme …
Resilient

7
1.04
1.42
1.95
1.90
1.19
2.09
2.53
2.89
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
2001
2002
2003
2004
2005
2006
2007
2008
EPS from Continuing Ops Since Merger
Resilient
GAAP Basis

8
Dispensers
Dispensers
Branded
Pharma
Biotech
Generic
Pharma
Manufacturers Products
Manufacturers Products
Retail
Hospitals
Clinics
PBM/Mail
Physicians
LT Care
HBA/OTC
ABC Channel Position
Data/Services
Resilient
Prime
Prime
Vendor
Vendor

9
ABC Today
Resilient
What we ARE
Drug Dist. & Services
Largest, broadest
Specialty Dist. & Services
Servicing “right”
customers
–
Generics
–
Value-added services
Investing in our future
–
ERP/Business Transformation
Focused!
What we are NOT
Heavily customer
concentrated
Heavily exposed to
hospital cap-ex
Subject to foreign
exchange fluctuations
Distracted by
business challenges
Best House in a Great Neighborhood!

10
ABC Tomorrow
Resilient
The Changes
100% Fee For Service
BT/ ERP completed
Universal health coverage
Generics & Biosimilars
Compliance Packaging
Manufacturer concentration
ABC Opportunity
More predictability
Customer efficiency
More drug utilization
Value-added services
Packaging leadership
More efficiency
ABC: Continually Well Positioned

11
Primary Growth Drivers
Today & Tomorrow
Resilient
Specialty Drugs
Growing faster than
market
Physician administered
Strong Distribution
–
Oncology
Services
–
Manufacturers
–
Physicians
Generics
Growing Market
Customer mix
advantage
Differentiated offer
Services
–
Manufacturers
–
Dispensers
Global Sourcing

12
Financial Performance
–
EPS from Continuing Operations up 19%*
–
Revenue up 7%
–
Operating Margin up 7 bps
FY07 +6 bps, FY06 +7 bps
–
$680 million in cash generation
Environment
–
Market growth of 1% to 2%
–
Specialty challenges with anemia drugs
Resilient
FY 2008 Results
*ex: special items, LTC, & vaccine write-down

13
Pharmaceutical Market Growth
–
1% to 2% in CY 2008
–
3 % to 6% CAGR 2008 to 2012
–
1% to 2% in CY 2009
Current Environment
–
Increase in generic drug utilization
–
Fewer FDA approvals of new drugs
–
Selected drug issues
–
Challenges of the economy
Resilient
Environment: Growing (but slower)

14
Resilient because…
Distribution and Related Services
deliver value up and down the
channel

15
Product Delivery
–
Reach over 27,000 pharmacies/physicians
daily
Data Delivery
Credit Management
Inventory Management
Prime Vendor Distribution’s
Value to Manufacturers
Resilient

16
Product Delivery
Decreased administration costs
Financing Source
Just-In-Time Inventory
–
For more than 30,000 SKUs
Services to Enhance Business
Prime Vendor Distribution’s
Value to Dispensers
Resilient

17
ABC Revenue
Health
Systems
Alt Site
Specialty
Group
PBM
Retail

18
Retail Healthcare Providers
–
Regional drugstore chains
–
Food/Drug combination
–
National chain niches
–
Community independent pharmacies
–
Apothecary shops
Retail Customers
Resilient

19
Good
Neighbor
Pharmacy
®
:
3,000
stores
GNP
Provider
Network
™
:
5,000
stores
–
3
Largest
Diabetes
Shoppe
®
:
1,000
stores
Private
Label
Products:
700
SKUs
PRxO
®
Generics
&
PRxO
®
Generics
Plus
Patient
management
programs
Business
coaching
Promotional
programs
Retail Value-Added Services
Resilient
rd

20
Nursing Home Providers
Managed Care
Mail Order Facilities
Dialysis Clinics
Alternate Site Customers
Resilient

21
Contract management
Pharmacy efficiency improvement
Pharmacy automation
Unit-of-use packaging
Generics
Alt. Site Value-Added Services
Resilient

22
RESULT …
Lowest Costs and
Improved Patient
Outcomes

23
Customer
Efficiency
–
Cost
Effectiveness
–
Does the customer need the service
–
How can we provide it at best value
Flat (to down) Expenses in FY2009
–
Streamlined organization
–
Consolidated services
Continuous Improvement
The Power of cE2 Philosophy
Resilient

24
FY 06 to FY 08 
Acquisitions
Acquisition Strategy
Resilient
Trent
Asenda
Rep-Pharm
Bellco Health
ABC will be the packager of choice
for pharmaceutical manufacturers
ABC will be the leading wholesale
distributor of branded and generic
pharmaceuticals and related services
ABC will be the leading distributor
of specialty pharmaceutical
products and related services
NMCR
IgG America
AMD
Xcenda
Brecon

25
Resilient …
The ABC Leaders that
Continue the Growth

Tony Pera
Senior Vice President,
Supply Chain Management

27
25 years in Generics Manufacturing
Co-founder Bedford Laboratories
Former head of US generics business of APP,
now part of Fresenius
Joined ABC as President American Health
Packaging in 2006
SVP Supply Chain Management early 2008
Tony Pera
Resilient

28
Generic
Pharmaceuticals

29
Continued Branded patent expirations
Increased awareness and acceptance
Government and payers promoting use of 
generics to reduce Healthcare costs
Generic dispensing rates continue to rise
Generics Growth Drivers
Resilient

30
Patent Expirations
$0
$5
$10
$15
$20
$25
CY 2009
CY 2010
CY 2011
•Prevacid
®
•Topamax
®
•Valtrex
®
•Effexor
XR
®
•Aricept
®
•Flomax
®
•Lipitor
®
•Actos
®
•Levaquin
®
Source: IMS Health
Top 3 Products Per Year
Resilient

31
One player in 6-month exclusivity period
Two players in 6-month exclusivity period
Limited players with hard-to-make drug
Multiple players in easy-to-make drug
The Generics Market Dynamics
Resilient

32
Generics Philosophy
Procure products from reliable sources
Monitor and react to industry trends
Manage PRxO
®
Generics program
–
Provide manufacturers market access
–
Deliver optimal value to customers
–
Customer compliance
Resilient

33
Generics Profitability Example
Selling Price         
Gross Margin
Gross Profit Dollars
Handling Costs
Accounts Payable
Receivable
Working Capital
Returns on Capital
Generic
$20
15%+
$3.00+
Same
60 days+
$20
Lower
Higher
Brand Name
$100
3%
$3.00
Same
30 days
$100
Higher
Lower
Resilient

34
Increasing transparency with Manufacturers
–
Provide Inventory and Sales Data
–
Improved Inventory Management
Building stronger relationships
–
Transition from transactional to collaborative
–
Executed agreements through 2011
Global Scope
–
Competitive landscape is always evolving
–
Conduct numerous international site visits
–
Attention to quality
Deliver manufacturers significant market share
Generics Manufacturers
Resilient

35
Retail Healthcare Providers
–
Regional drugstore chains
–
Food/Drug combination
–
Independent pharmacies
Institutional Healthcare Providers
–
Hospital
–
Long Term Care / Alternate Site
The Right Customer Mix
Resilient

36
Formulary that consists of over 6,500 SKUs
–
Value Pricing
–
Portfolio Management
Tailored programs address specific
customer needs
Focused on customer profitability
Dynamic market response
100
manufacturers
in
PRxO
®
Generics
PRxO
®
Generics
Resilient

37
Competitive
Edge
Resilient

Availability
Price
Quality
Competitive and Responsive
Secure and Direct
Consistent and Timely
PRxO
®
Generics Customer Value
Resilient
38

39
Branded
Pharmaceuticals

40
FDA approvals slow and pipelines weak
Patent Expirations
–
$85 billion over next 5 years
Increased government pressure and
scrutiny
Fee-For-Service is the norm
Branded Product Environment
Resilient

41
AmerisourceBergen
–
Maintains target inventory levels
–
Provides high customer service levels
–
Credit Management
–
Other Services
–
Data
-
New Product Launches
–
Manage Returns
Manufacturer
–
Pays fee based on ABCs metric performance
–
Calculated against purchases
Fee-For-Service Process
Resilient

42
FFS has produced market changes
Lower inventory levels
–
Increased cash flow
More efficient supply chain
–
Less returns
–
Better forecasting
Fee-For-Service Results

43
FFS has produced market changes
More Predictable Revenue
–
Less dependence on price appreciation
–
ABC prefers to get paid for what we do
–
Fees more accurately coincide with services
Improved Manufacturer Relations
–
Increased or established communications
–
Increased transparency
–
Standardized operating procedures
Fee for Service Results
Resilient

44
Inventory Control
–
Smooth and predictable demand
–
Supply chain safety
Delivery of Products
–
Deliveries to 27,000 ship-to-points per day
–
99+% customer service levels
–
Pick / Pack / Ship approximately 6,600 SKUs
Branded products
Manufacturer Benefits
Resilient

45
Credit Management
–
Assume down channel credit risk and cash
collections for customer base
–
Prime vendor model facilitates collections
Data
–
Inventory data
–
Available daily
–
Days on hand
–
Invoice level sales data
–
Available daily
–
End customer information
–
Marketing and promotion effectiveness
Manufacturer
Benefits
Resilient

46
Intend to move remaining price appreciation
agreements to FFS
FFS renewals continue to pay us for what
we do
–
95+% of major branded manufacturers on FFS
–
99+% of FFS metrics achieved
The Future of FFS
Resilient

47
FFS continues to be mutually successful
Rewards ABC for value delivered
Dramatically improves relationship with
manufacturer
FFS takes costs out of channel
Branded Summary
Resilient

Steve Collis
Executive Vice President &
President, AmerisourceBergen
Specialty Group

49
Specialty Group
Distribution & related services primarily to
physicians and biotech manufacturers
Specialty Product Distribution & Services
Biotech Commercialization Services
•
Oncology
•
Infusion services
•
Outsourced logistics
•
Plasma-derivative products
•
Biotech Distribution
•
Nursing support
•
Reimbursement mgt
•
Dialysis/Nephrology
Market Leadership
Resilient

50
Distribution
Oncology
GPOs
Vaccines
3PLogistics
Plasma-derivative products
Ophthalmology
Dialysis/Nephrology
Specialty Pharmacy
Reimbursement
Management
Health
Economics
Resilient
Integrated, Knowledge-Driven Offerings

51
Specialty Group Key Business Units
The nation’s largest pharmaceutical services company
focused on the specialty industry
Key business units are customer-focused:
–
ASD Healthcare
–
–
Blood
Blood
plasma, dialysis/nephrology
plasma, dialysis/nephrology
products, flu vaccine
products, flu vaccine
–
Besse Medical
–
–
Biologicals,
Biologicals,
injectables
injectables
–
ICS –
–
3PL, direct distribution,
3PL, direct distribution,
clinical services
clinical services
–
IgG America
–
–
Immune
Immune
globulin-specific specialty
globulin-specific specialty
pharmacy
pharmacy
–
ION
–
–
Oncology-specific
Oncology-specific
physician services
physician services
organization
organization
–
Lash Group
–
Reimbursement
services, patient assistance
programs
–
NMCR Analytics
–
Peer-to-peer
market research in oncology,
hematology
–
Oncology Supply
–
Oncology
products, practice management
–
US Bioservices
–
Nationwide
specialty pharmacy
–
Xcenda
–
Reimbursement
strategy,  outcomes research,
strategic consulting
Resilient

52
$14.6 Billion in FY 2008 Revenue
ICS
Besse
Oncology
ASD
Services
Resilient

53
Performance Milestones in FY2008
Oncology business posted gains in record
revenue and profit, despite anemia market impact
3PL/direct business topped $2 billion revenue for
2   consecutive year
Successful integration of Bellco’s
dialysis
business into ASD Healthcare
Signed multi-year contract extension with DaVita
Record revenue in patient adherence and
reimbursement services
Resilient
nd

54
Undisputed Leader in
Specialty Product Distribution
Largest oncology products distributor and
physician services organization in U.S.
–
More than half of all community-based oncologists in
the country (4,600+)
Largest nephrology/dialysis products distributor
Largest blood plasma products distributor
High market share in ophthalmology
54
Resilient

55
Product Delivery
–
Reach physicians daily
–
Scale efficiencies
–
Physician groups
Data Delivery
Credit Management
Inventory Management
Specialty Distribution’s
Value to Manufacturers
Resilient

56
Specialty Services
Value to Manufacturers
Patient access & support programs
–
Support products with patient assistance,
reimbursement mgt., and patient follow-up
Health outcomes & reimbursement strategy
–
Integration of patient/provider education, product
distribution/dispensing, data collection and reporting
Customer Insights & Market Research
–
Healthcare economics & market research
Resilient

57
Product Delivery
–
Daily on orders placed the night before
–
All products in one order
–
Large-Practice Programs
Financing Source
Just-In-Time Inventory
–
Special handling requirements
GPO Services
Specialty Distribution’s
Value to Customers
Resilient

58
Specialty Services
Value to Customers
Physician Efficiency tools
–
GPO services including training and education
–
Remittance management
Practice Management
–
Webinars
/ ongoing training
–
Sharing best practices
–
Informatics
Resilient

59
Oncology Growth
Oncology pipeline strongest among all
pharmaceutical products
750 medicines in development for cancer,
compared to 388 for infectious disease the next
closest
Resilient

60
Oncology Growth
Total oncology market sales:
–
2012: $80 billion
ESA impact
–
Oncology 2% of total revenue, down 20% in FY2009
Reimbursement environment
–
FDA, black box, other restrictive activities
–
Pressure on AWP and ASP
New FDA requirements (REMS) provide
opportunities for new services and added new
drug approvals
Resilient

61
Significant
impact
on
FY
2008
Performance
–
Increased
shared
services
–
Increased
cost
effectiveness
to
lower
expense
Flat
(to
down)
Expenses
in
FY2009
–
Continue
to
drive
integration
of
business
units
–
Continue
to
look
for
efficiencies
and
cost
effectiveness
Continuous
Improvement
The Power of cE2
Resilient

62
Delivering Growth in FY2009
Revenue growth of 5% to 7%
Leading position and scale in specialty distribution
–
Leverage scale to drive growth
–
Use customer service focus to expand
–
Increase shared services using CE2
Leader and innovative service provider
–
Respond to manufacturer needs to reach patients and
increase compliance
–
Further integrate service capability to deliver innovative
programs
–
Use distribution data access to increase customer
efficiency and deliver manufacturer programs
Resilient

Peyton Howell, MHA
AmerisourceBergen Specialty Group
President, Consulting Services & Health
Policy

64
Key health policy trends and breadth of
specialty services offering
Market leading position
Emerging health policy trends driving growth
–
Patient Access Services
–
Risk Mitigation and REMS
–
Patient Education & Compliance Programs
–
Health Outcomes & Values-Based Messaging
Health Reform and the new Administration
–
Unique breadth of services positioned to support
changing health care environment
Overview

Breadth of Service Offering
Positioned for changing environment
Unparalleled services experience
Marketing leading position in supporting specialty biotech & pharma
products to meet the needs of patients, providers and payers.
Patient
Access &
Support
Programs
Customer
Insights &
Market
Research
Health
Outcomes &
Reimbursement
Strategy
65

66
Snapshot of FY08 Services
Over 8 million unique patient contacts across 80 unique
manufacturer programs
Over 1500 seat call center capability (Charlotte, Dallas and San
Francisco) including reimbursement and nursing professionals
Over 130+ consulting professionals (PhD, PharmD, MPH) with
over 50 new published health outcomes research peer-reviewed
articles in 2008
Leading provider of hub-model (or clearinghouse programs) to
coordinate patient access services for specialty product launches
Advisory boards and case-based market research including live
meetings with over 6,000 physicians and 400 private
payer/manager care leaders in 2008
Over 800 days of live presentations to physicians and health
care providers and nearly 300 webcast or teleconferences
Market leading position

67
Emerging health policy trends driving growth
•
Benefit
Coordination
•
Payer
Restrictions
•
AOB
Coordination
•
Physician office
questions
•
Uninsured and
increased
coinsurance
•
Patient
adherence
•
Benefit 
Verification
•
Prior Auth &
Denial Support
•
Electronic test
claims & tracking
•
Billing guides and
coding support
•
Patient assistance
& alternate
coverage research
•
Services such as
outbound
reminder calls
•
Facilitate patient
access
•
Reduce provider
anxiety and
administrative
hassle
•
Increase speed to
therapy
•
Support access to
therapy regardless
of ability to pay
•
Improve patient
compliance
Market Needs
Our Services
Outcomes
Payer policies expand need for patient access services

68
Emerging health policy trends driving growth
New Risk Management and REMS requirements need
our unique breadth of services
•
PDUFA (Oct 2007) codified the FDA’s
authority to require further studies of
medical products once they have
reached the market.
•
Federal Register Notice (March, 2008)
implemented first phases of REMS 
(some proposed REMS were due
September 21, 2008)
•
ABSG is uniquely positioned with
breadth of offering to effectively manage
a wide range of REMS programs
RiskMap = Risk Minimization Action Plan
REMS = Risk Evaluation and Management Strategy

69
Emerging health policy trends driving growth
Three Categories of REMS Tools
Use of compulsory reminder systems
Rx only by specially certified providers
Limited dispensing/distribution based on requirements
Dispensing only to patients with documentation
Performance
Linked
Access
Systems
Patient education including acknowledgement forms
Provider training including testing or documentation
Provider/pt enrollment in special data collection
Specialized packaging, limited refills or dosing
Attestations related to safety measure
Reminder
Systems
Healthcare provider letters
Training programs and CE for providers
Patient labeling such as Medication guides and patient
package inserts
Patient training or education systems
Targeted
Education &
Outreach

70
Patient Education & Compliance
Services Expand Dramatically
Significant new focus on keeping patients using treatments
appropriately
ABSG manages a wide range of such programs including
clinical nurse programs as well as non-clinical patient
advocates
Can be integrated as part of REMS to provide a patient-
focused means to streamline resources
Often integrated with web-based resources for patients and
providers
Emerging health policy trends driving growth

71
Emerging health policy trends driving growth
Growing Focus on Comparative Effectiveness Research
and Post-Marketing Analytics
Over 175 peer-reviewed publications
AJMC, Medical Care, Value in Health, Epidemiology,
Lancet, JAMA, Archives of IM, Pediatrics, JAGS
Burden of illness
Comparative safety
Compliance and
adherence assessments
Analysis of treatment and
population trends
Economic and resource
utilization analyses
Meta-analyses
Productivity studies
Multi-site chart reviews

72
Health Reform and
the New Administration

73
Key Priorities of the New Administration
Obama Healthcare Plan 
Three Key Approaches to
Improve Healthcare
coverage
Improve healthcare quality
and drive down costs by
reducing inefficiency and
waste
Provide affordable health
insurance options for all
Promote prevention and
strengthen public health
Health Reform and the New Administration
Priorities
for
Change
Uninsured
SCHIP
&
Medicaid
Opportunity
to
buy-into
FEHBP
Employer
contributions
Changes
in
Medicare
Advantage
Direct
negotiations
for
drug
prices
Comparative
Effectiveness
Generics
and
other
cost-
saving
opportunities

74
Sen. Max Baucus “Call to Action:
Healthcare Reform 2009”
Chair of Senate Finance Committee, this 90-page report
was released in mid-November.
The plan is consistent overall with Obama plan, except it
advocates specifically for an employer mandate to provide
insurance coverage
. 
4 Key Components:
–
Strengthen the role of primary care and chronic care
management
–
Refocus payment incentives toward quality
–
Promoting provider collaboration and accountability
–
Improving the healthcare infrastructure
Health Reform and the New Administration

75
5%
48%
47%
Managed Care Experts Predict Modest
Reforms Focused on Uninsured
Health Reform and the New Administration
Incremental reforms
focused on
expanding access
consistent with the
Obama health plan
Only minor changes to
expand access given
other market factors
Source: Survey of 60 Managed Care  Medical Directors &
Pharmacy Directors conducted by Xcenda at Managed Care
Network (MCN) Meeting on November 7, 2008.
Significant reforms to
include the bulk of the
Obama health plan or more

76
Health Reform and the New Administration
Key Reforms and Potential Impact for ABC
No
impact
for
Part
B
drugs
or
related
physician
services
is
expected.
Medicare Part B
Reforms
Reductions
in
payment
to
MA
plans
will
not
impact
ABC
Medicare
Advantage
Expands
access,
and
like
the
implementation
of
Part
D,
should
increase
utilization.
Uninsured
No
direct
impact
expected. 
Gov negotiated
drug pricing
No
significant
impact
expected.
Could
increase
consulting
and
data
services
opportunities.
Comparative
Effectiveness
Specialty
Group
well
positioned
to
benefit
due
to
market
share
and
support
services.
Biosimilars

77
Making progress on the uninsured leads
likely reforms for 2009
SCHIP is renewed and an expansion of Medicaid is
possible to address the uninsured (focused on children).
–
Changes in Medicare Advantage will help to fund access issues.
Ban on pre-existing condition exclusions
Potential buy-in option to FEHBP is developed
Medicare Physician Fee Schedule cuts are averted
although it could be another temporary fix.
Concerns regarding patient out-of-pocket costs will grow
Some form of resource to facilitate access to Comparative
Effectiveness research will be created
Health Reform and the New Administration

78
Breadth of Specialty Services
To Drive Future Growth
Unique combination of services rather than
the individual components
Core services becoming more important to
physicians, patients and manufacturers:
–
Payer requirements
–
Focus on health outcomes and value
–
New REMS related programs and requirements
Concluding Thoughts

Mike DiCandilo
Executive Vice President,
Chief Financial Officer, & Chief
Operating Officer of ABDC

80
AmerisourceBergen
Packaging Group

81
Packaging Group Overview
Three operating companies: 2 U.S., 1 U.K.
13 facilities totaling 1.4 Million sq ft
1,400 employees
Over 200 packaging lines
Strong regulatory compliance profiles
25+ product launches expected  in FY09
Preferred supplier to top global brand
manufacturers and preferred relationships with
large segment of generics manufacturers
Resilient

82
Packaging Group Value Proposition
Low cost, flexible operations
–
New product launch capabilities
–
Adaptive work force
Operational Excellence
–
Strong, experienced management team
–
Exemplary FDA compliance
–
Lean Six Sigma
–
Expanded controlled substance capabilities
Resilient

83
Packaging Group Value Proposition
Special customized packaging capabilities
–
Compliance in a bottle (CIAB)
–
Hospital unit dose, compliance packaging
–
Clinical trial packaging
Unique engineering expertise
–
Innovative and highly automated packaging
processes
–
Proprietary packaging formats
Resilient

84
Resilient
Product Launch Capabilities
VIDEO

85
Well-positioned for continued global   
pharmaceutical outsourcing
Compliance packaging improves patient
outcomes and increases pharma sales
Customized Packaging (HUD) lowers cost for
pharmacies
Continued innovations in high value products  
will fuel growth
Quality, performance, and reputation,
increasing account penetration
Packaging Group Summary
Resilient

86
Business Transformation

Develop and deploy enhanced capabilities
Develop and deploy enhanced capabilities
in all areas of ABC’s business and infrastructure
in all areas of ABC’s business and infrastructure
Strategic Intent
ABC
Dispensers
Manufacturers
Execute
Execute
an
an
ERP-enabled
ERP-enabled
Business
Business
Transformation
Program
Program
to
to
dramatically
dramatically
enhance
enhance
AmerisourceBergen’s
AmerisourceBergen’s
efficiency
efficiency
and
and
ease
ease
of
of
doing
doing
business
business
Business Transformation
87

88
We are here -
Mobili
zation
Detail Design
Build
Test
Deploy
Scope
Confirm
ation
Design
Ongoing Maintenance
& Support
Phase 2:
Detail Design, Build & Test
Phase 3:
Deployment
Phase 4:
Support
Phase 1:
Blueprint
*Multiple Detailed Design, Build, Test and Deploy phases will occur based on Deployment schedule
Organizational Change Management
Program Management & Governance
Technical Architecture
BT Program Plan

89
Benefits of Business Transformation
Easier for customers to do business with ABC
Customer access to ordering, receiving,
inventory management and account
management tools
Integrated customer-facing ordering systems
with ABC’s ordering / supply management
systems
More accurate, credible, and valuable data

90
BT Investment
$
$200 million to $250 million cumulative through
FY 2011
FY 2009 largest spend
–
Approximately $100 million, 2/3 capitalized, 1/3
expense
Included in our guidance
Value realization predominantly 2012 and
beyond

91
What You Need to Know Now
BT represents a continued investment by ABC to
drive the highest customer satisfaction and
efficiency with cost effective solutions & services
Strong experienced program management team
in charge
FY 09 Guidance includes BT cost and capital
Primarily a cost through FY 2011, Benefits in FY
2012
Will keep you updated

92
Financial Review

93
EPS growth of approximately 15%
Revenue growth with market
Operating margin expansion
ROIC >
WACC
Free cash flow approximates net income
Minimum 30% of free cash returned to  
shareholders
Resilient
Long Term Financial Goals

94
1.04
1.42
1.95
1.90
1.19
2.09
2.53
2.89
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
2001
2002
2003
2004
2005
2006
2007
2008
EPS from Continuing Ops Since Merger
Resilient
GAAP basis

95
Pharmaceutical Distribution Revenues
Resilient
$53.9
$60.4
$65.3
$70.2
$40.0
$45.0
$50.0
$55.0
$60.0
$65.0
$70.0
$75.0
2005
2006
2007
2008

96
+7
bps
+6
bps
+7
bps
Operating margin improvement
Pharmaceutical Distribution
Operating Ratios
0.75%
0.95%
1.15%
1.35%
1.55%
1.75%
1.95%
2005
2006
2007
2008
0.75%
1.25%
1.75%
2.25%
2.75%
Operating Expenses %
Operating Income %
Resilient
GP %
Op exp %
Op Inc %

97
$0.0
$0.5
$1.0
$1.5
$2.0
2005
2006
2007
2008
Debt
Repayment
Capital
Expenditures
Dividends
Acquisitions
Share
Repurchases
Cash flow
from
operations
Income
from
continuing
operations
$ billions
Cash Generation
Resilient
and Deployment

98
Fiscal Year 2008 Results
Diluted
EPS
from
Continuing
Operations
of
$2.89,
up
14%
,19%
ex-items 
Record revenue of $70.2 billion, up 7 %
Pharmaceutical
Dist.
operating
margin
1.19%,
up
7
bps  
ROIC > WACC
Free
cash
flow:
$600
Million,
>
100%
Income
from
continuing
ops
$680
million
of
share
repurchase,
>
100%
of
free
cash
flow
Met or Exceeded FY 2008 Guidance
Resilient

99
Resilient
Fiscal Year 2009 Targets
Diluted EPS of $3.08-$3.25, up 7% to 12%
Total revenue growth of 1% to 3%
Operating Margin expansion –
low to mid single digit basis
points
—
Operating expense dollars flat to down        
ROIC > WACC
Free cash flow of $460 to $535 Million
–
Includes CapEx of
$140 Million
Share Repurchases of approximately $350 Million      
–
Average shares down about 5%

100
Revenue Growth
Margin Expansion
Op Inc Growth
Cash
Deployment
EPS Growth
FY08
7%
4%
11%
8%
19%*
FY 09
1-3%
2-3%
3-6%
4-6%
7-12%
EPS Growth Estimate
FY 09   Drivers
-
Market
growth
1-2%
-
Walgreens -3%
-
Back-ended
-
Share repurchase
$350 million
-
Net interest
expense up
-
Flat to down
expense dollars
-
Generics
-
Customer mix
*Excluding special items, LTC, & vaccine write-down
FY2009 EPS
$3.08 to $3.25

101
Fiscal Year 2009 Targets
Revenue Growth and Operating Margin by Business Unit
Business 
Unit
% of Total
Revenue
Revenue
Growth
ABDC
ABSG
ABPG
Total
0% -
2%
5% -
7%
4% -
6%
1% -
3%
77% -
80%
20% -
22%
1/2%
100%
Operating*
Margin Range
1.03% -
1.09%
1.55% -
1.65%  
10% -
12%
1.20% –
1.25%
*Based on total revenue
Resilient

102
Resilient
Capital Structure Goals
Adequate Liquidity
–
Maintenance cash
–
$750 million revolving credit facility, expires 2011
–
$975 million A/R securitization facility expires June
and November 2009
–
No long-term debt due until 2012, then 2015
Maintain Access To Capital
–
Investment grade important
Maintain Flexibility
–
Cash & borrowing capacity to make acquisitions

103
What’s Available?
$878 million of cash and short-term investments
@ 9/30/08 ($450 million available)
Free Cash Flow of $460-$535 million expected for FY09
Total available for investment abut $900 million -$1 billion,
excluding additional borrowing capacity
Where to deploy?
$350 million of shares expected to be repurchased in FY09
($500 million authorized)
$60 million for dividend (increased 33%)
$500-$600 million available for further investment
Significant Financial Flexibility
Fiscal 2009 Capital Deployment
Resilient

Questions & Answers

105
Resilient
Focused on Growing Pharmaceutical Channel
Positioned in Channel for Growth
Right Investments for Future Growth