2022 Annual Review     |

Dear Fellow Stockholders

Surpassed 2022 expectations

raising adjusted EPS guidance each quarter
Signify Health brings industry leading health risk assessments and provider enablement expertise that will enhance our connection to consumers and allow providers to better address patient needs
We have a clear pathway to achieve low double-digit adjusted EPS growth over time

Every day, we are making healthier happen in the lives of millions of patients, members and customers. We enter our 60th year as one of the most trusted brands in America. Our ability to engage consumers at our community locations, in the home or virtually, positions us to deliver superior health care and address pressing public health challenges. We are meeting people where they want to receive care and delivering health solutions grounded in our deep and diverse expertise.

We are on a mission to improve health outcomes for consumers, driving care that is simpler, more accessible, affordable and convenient. In 2022, we made significant progress advancing our strategy while achieving strong financial results across the Company. We are well-positioned to build upon our momentum in 2023 as we redefine health care in America.

Strong foundational businesses position us for growth

Our 2022 performance highlighted our ability to anticipate, deliver and exceed consumers’ expectations for health care. We surpassed $300 billion of total revenues for the year, growing to $322 billion and delivered $17.5 billion in total adjusted operating income*. We achieved this while also generating more than $16 billion in cash from operations. These results allowed us to exceed expectations for adjusted earnings per share every quarter and surpass our financial goals for the year with each of our three foundational businesses contributing to our strong performance.

Surpassed 2022 expectations, raising adjusted EPS* guidance each quarter

In the Health Care Benefits segment, we expanded membership and increased total revenue by 11 percent, growing across all product lines. Our Medicare business delivered strong growth, adding nearly 400,000 members during the year across our portfolio of solutions for individuals and employers. Our Individual Medicare Advantage membership grew at a double-digit pace and reached a major milestone with more than two million members, including those eligible for both Medicare and Medicaid. After re-entering the individual public health insurance exchanges (“Public Exchanges”) in 2022, we expanded our presence to 12 states for 2023, with strong performance from our Aetna CVS Health co-branded products. We are excited about the prospects of future growth in our Public Exchanges business as the market for these plans grows.

The Pharmacy Services segment also surpassed expectations with revenue growing nearly 11 percent, which was driven by our industry-leading capabilities in service excellence, product innovation and cost management. Demonstrating our leadership in specialty pharmacy, we increased revenue by 19 percent over the prior year, while providing substantial savings and transparency to customers, and differentiating ourselves through our digital assets. Over 25 percent of our specialty customers utilize our clinical engagement tools such as our new digital symptom tracker. The strength of our capabilities and our commitment to innovation led to a very successful 2023 selling season where we retained nearly 98 percent of our existing customers.

Retail outperformed in both the front-store and the pharmacy. Our deep consumer relationships, high-quality patient interactions, resilient supply chain and agile operating model all contributed to strong performance and 6.5 percent revenue growth. Retail pharmacy continued to generate year-over-year market share gains for every quarter in 2022, reaching nearly 27 percent by year-end. In the front-store, our focus on customer satisfaction and convenience led to same store sales growth of 7.4 percent year-over-year. We are evolving our retail stores to be community health destinations, providing a broader set of health services to the nearly five million customers who visit us daily.

Creating the premier multi-payor value-based care platform

Our care delivery strategy is focused on meeting people where they are with personalized solutions that are seamless, connected and increasingly digital. We significantly expanded access to virtual health solutions with a focus on mental health. In 2022, we delivered more than 10 million virtual mental health visits. We also further reduced barriers to care by empowering pharmacists to prescribe Paxlovid, the COVID-19 anti-viral treatment. As a result of our expanding capabilities, MinuteClinic® locations delivered more than 5.5 million patient visits in 2022, making us one of the largest providers of episodic care in the United States.

We continue to develop and expand our focus on value-based care. By putting the patient at the center, this approach will drive improved health outcomes across a broad customer base. The successful execution of our health care delivery strategy is supported by the combination of our foundational businesses and our expanding value-based care platform, comprised of primary care, home health and physician enablement services.

The recent acquisition of Signify Health is a significant step forward in our ability to deliver value-based care. Signify Health brings industry-leading health risk assessments and provider enablement expertise that will enhance our connection to consumers and allow providers to better address patient needs. Signify Health’s network of more than 10,000 clinicians will strengthen our ability to connect with individuals in the home, improving patient engagement, outcomes and care coordination. Signify Health also brings a technology platform that will accelerate our provider enablement efforts. This platform allows providers to focus on patient care by providing an accessible, robust repository of tools to manage patient health and enable advanced value-base care.

In February 2023, we announced the proposed acquisition of Oak Street Health, which will broaden our value-based care platform into primary care and we expect will help accelerate our long-term growth. Oak Street Health has a proven senior-focused primary care model that we believe is scalable at a national level. Their innovative care model goes beyond typical primary care to provide patients with comprehensive preventive care to support overall health and well-being. With 169 medical centers across 21 states today, we see a significant opportunity to expand over the next few years and provide superior care to many more patients. Our unparalleled consumer touch points are expected to expand Oak Street Health’s reach and allow them to engage with more consumers, more frequently and more conveniently. We expect the Oak Street Health transaction to close in 2023, subject to regulatory approvals.

We believe the combination of CVS Health’s foundational businesses, with Oak Street Health and Signify Health, will create one of the premier multi-payor Medicare value-based care platforms in the marketplace today.

By expanding our health care delivery capabilities and enhancing our ability to drive value-based care, we will meaningfully improve our pathway to sustainable long-term growth.

Our commitment to sustainable business practices

Our Healthy 2030 environmental, social and governance (ESG) strategy is focused on achieving our economic, environmental and social imperatives. It outlines how we are shaping a more equitable and sustainable future for all — across multiple dimensions of health.

Central to our mission to become the leading health solutions company for consumers is improving the health of the people that we serve and the environment in which they live. In 2022, we continued to drive innovation and efficiency through our sustainability programs. We will begin reducing our carbon emissions by more than 38,000 metric tons annually as a result of a new commitment to purchase renewable energy. We are using digital innovation to reduce waste. In fact, more than 40 percent of CVS Pharmacy® customers preferred a digital receipt — or no receipt at all when given a choice. We also supported our local communities while reducing the waste generated at our stores and distribution centers through the donation of more than $165 million worth of products.

Healthy 2030 reflects our commitment to our purpose of bringing our heart to every moment of your health. Whether it’s offering free health screenings, investing in renewable energy or making investments to improve health outcomes in historically marginalized communities, we are reshaping health care to make healthier happen for all.

Our unique position will redefine health care and deliver sustainable growth

We have the ability to impact the everyday health of millions of Americans. We have made measurable progress on our strategy and have strong momentum to continue driving meaningful change in how health care is delivered in America. We will deliver sustainable growth, further strengthen our operations, drive cost savings and unlock new sources of value through our health care delivery capabilities. Our powerful cash flow generation will allow us to deploy capital strategically to accelerate our vision and to enhance value to stockholders. We recently increased our quarterly dividend by 10 percent, from $2.20 to $2.42 annually, and have resumed returning capital to stockholders through stock repurchases. We have a clear pathway to achieve low double-digit adjusted EPS* growth over time.

In closing, I want to thank our more than 300,000 employees for their commitment to our customers, our purpose, innovative thinking, dedication and hard work. I would also like to thank you, our stockholders, for your confidence in us. I look forward to another successful year.

Karen S. Lynch
President and Chief Executive Officer
March 31, 2023

This annual report contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Please see the “Cautionary Statement Concerning Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (the “Form 10-K”), included as part of this Annual Report, for a discussion on forward-looking statements.

* Adjusted operating income and Adjusted EPS are non-GAAP financial measures. A reconciliation of operating income to adjusted operating income is provided on page 178 of the Form 10-K included in this Annual Report, and a reconciliation of GAAP diluted EPS from continuing operations to Adjusted EPS is provided under the heading “Reconciliation” in the back pages of this Annual Report.

Page 2 of 7

2022 Annual Review

CEO Message

Financial Highlights

Strategic Imperatives

Value-Based Care

Digital Innovation