Brian Bertha VP, Corporate Strategy and Business Development McKesson U.S. Pharmaceutical

Brian Bertha VP, Corporate Strategy and Business Development McKesson U.S. Pharmaceutical

2 Safe Harbor Clause Some of the information in this presentation may constitute forwardlooking statements that are subject to various uncertainties. These uncertainties could cause actual results to differ materially from those projected or implied. The risk factors associated with those uncertainties are described in the Company s reports and exhibits filed with the Securities and Exchange Commission. Financial information is presented here in summary form. Full details are provided in the Company s most recent 10-K report. All of this information is available at www.mckesson.com. The Company assumes no obligation to update or revise any such statements, whether as a result of new information or otherwise.

3 Long-term Relationships with Market Leaders Vanderbilt University Medical Center

4 Conference highlights Opening General Session Future of Pharmacy Plenary Session Generics Insight Theater Series Automation Health Mart Diabetes Shopper Insights Clinical Services Continuing Education Networking opportunities

5 A changing environment forces retail independents to evolve The biggest chains are getting bigger Mail order continues to grow, but many new entrants New type of competition emerges with CVS/CMX merger Demand for better pharmaceutical care is growing Chains look to stake out claim for clinical care

6 AMP ruling: to early to assess impact Excludes sales to Pharmacy Benefit Managers (PBMs) and pharmacies serving nursing homes and assisted living facilities; sales to mail order pharmacies remain included Excludes manufacturer coupons redeemed by an agent, pharmacy or entity acting on behalf of the manufacturer to the list of prices Excludes that manufacturer vouchers and manufacturer-sponsored drug discount card programs Excludes outlier AMPs, meaning that the lowest AMP in a FUL group will be excluded if it is less than 40 percent of the next highest AMP (this is a change from 30% in the proposed rule) Includes home infusion and specialty pharmacies Requires manufacturers to submit quarterly and monthly AMPs to CMS. Manufacturers must estimate the impact of lagged price concessions using a 12-month rolling average.

7 Generics wave provides benefits to retail independents and McKesson 05 09 Patent Expiry Branded Value $ Billions $16 $15 $14 $11 $10 McKesson is the largest distributor of generics New GenericsConnect telemarketing program enhances relationships with existing customers McKesson OneStop Generics is leading generics program in independent market Recently signed new single-source agreement with APCI 2005 2006 2007 2008 2009 Source: FDA; IMS Health; Bernstein Analysis

The future of independent pharmacy 8

Last year, Health Mart was in 29 states, focused in the Midwest and South 9

Today, we are coast-to-coast in 48 states 10

11 We are beginning to see strong statewide penetration in the independent market State Health Marts today Health Marts last year % of independents CA 112 6 6% FL 97 38 WI 82 12 TX 77 4 GA 59 19 12% 25% 6% 9% NE 57 14 29% IA 51 8 15% MORE.

Health Mart stores represent our best customers $2.8 $2.7 $2.7 $2.6 $2.6 $2.5 $2.5 $2.4 $2.4 $2.3 $2.3 $2.7M HM Avg. Store Sales $2.4M Non-HM 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 13.2% HM Same Store Growth 10.9% Non-HM 99.0% 98.0% 97.0% 96.0% 95.0% 94.0% 93.0% 92.0% 91.0% 90.0% 89.0% 98% Retention 92% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 15.8% McK Gx: Rx 13% HM Non-HM HM Non-HM 12

Health Mart brings together key capabilities 13

14 McKesson embarked on intense study on the full potential of Health Mart Completed market research with all stakeholders Analyzed value proposition Benchmarked franchise best-practices worldwide Examined full potential of franchise 3-5 years out Analyzed store requirements and compliance guidelines Developed staged implementation plan

15 The future of Health Mart today 18 months 36 months Managed care PBM recognition Branding Consumer recognition In-Store Programs Manufacturer recognition Community Industry recognition Reimbursement optimization National advertising Leader in cognitive services Ownership expansion

16 Connectivity unleashes value National Payors Manufacturers Back-office Services MTM & Adherence Central Fill Prescription Transfers Auto Refills Loyalty Cards Pharmaceutical Care Physicians & Local Payors Long Term Care Direct to Patient

Q&A 17