CVS Corporation 2006 Annual Report
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More good things ON THE HORIZON CVS CORPORATION 2006 ANNUAL REPORT ® ® ® One CVS Drive Woonsocket, RI 02895 (401) 765-1500 www.cvs.com CVS CORPORATION 2006 ANNUAL REPORT TOTAL SALES SAME STORE SALES INCREASE PHARMACY SALES STOCK PRICE AT YEAR END SHAREHOLDER INFORMation 06 $43.8 06 8.2% 06 $31.1 06 $30.91 05 $37.0 05 6.5% 05 $26.3 05 $26.42 04 $30.6 04 5.5% 04 $21.5 04 $22.54 dollars in billions dollars in billions calendar year end OFFICERS DIRECTORS SHAREHOLDER INFORMation Thomas M. Ryan David W. Dorman (2) (3) Corporate Headquarters Chairman of the Board, President, Former Chairman of the Board CVS Corporation and Chief Executive Officer and Chief Executive Officer One CVS Drive, Woonsocket, RI 02895 AT&T Corporation David B. Rickard (401) 765-1500 Executive Vice President, Chief Financial Thomas P. Gerrity (3) Annual Shareholders’ Meeting Officer, and Chief Administrative Officer Professor of Management The Wharton School of the May 9, 2007 Chris W. Bodine AMERICA’S NO. 1 DRUGSTORE CHAIN University of Pennsylvania CVS Corporate Headquarters Executive Vice President At the end of 2006, CVS Corporation operated 6,202 stores in 43 states and the District President, CVS Health Services Marian L. Heard (1) (2) (3) Stock Market Listing President and Chief Executive Officer New York Stock Exchange of Columbia. They included 6,150 CVS/pharmacy locations and 52 PharmaCare Specialty Larry J. Merlo Oxen Hill Partners Symbol: CVS Pharmacy stores. PharmaCare is the nation’s fourth-largest, full-service pharmacy benefits Executive Vice President (1) (3) manager. Total CVS revenues approached $44 billion in 2006, with approximately 70 percent President, CVS/pharmacy – Retail William H. Joyce Transfer Agent and Registrar Chairman of the Board and Douglas A. Sgarro Questions regarding stock holdings, certificate generated through pharmacy sales. In fact, our CVS/pharmacy stores fill more than one in Chief Executive Officer FINANCIAL HIGHLIGHTS Executive Vice President – Strategy replacement/transfer, dividends and address every seven retail prescriptions in the United States. Our 176,000 colleagues work hard to Nalco Company and Chief Legal Officer changes should be directed to: 2006 2005 make things “CVS easy” for our customers – from the pharmacy and the front of the store President, CVS Realty Co. Terrence Murray (2) In millions, except per share figures 52 weeks 52 weeks % change The Bank of New York to MinuteClinic, PharmaCare, and CVS.com. Former Chairman of the Board V. Michael Ferdinandi and Chief Executive Officer Shareholder Relations Department Our company trades on the New York Stock Exchange under the ticker symbol “CVS.” Senior Vice President – Human Resources Sales $ 43,813.8 $ 37,006.2 18.4% FleetBoston Financial Corporation P.O. Box 11258, Church Street Station and Corporate Communications New York, NY 10286 Sheli Z. Rosenberg (2) (3) OUR VISION Operating profit 2,441.6 2,019.5 20.9% Paula A. Price Toll-free: (877) CVSPLAN (287-7526) Former President, Chief Executive Officer, Senior Vice President – Finance and Controller E-mail: [email protected] We help people live longer, healthier, happier lives. Net earnings 1,368.9 1,224.7 11.8% and Vice Chairman Nancy R. Christal Equity Group Investments, LLC Direct Stock Purchase/Dividend Vice President – Investor Relations Reinvestment Program OUR MISSION Diluted earnings per common share 1.60 1.45 10.3% Thomas M. Ryan SM Carol A. DeNale Chairman of the Board, President, and BuyDIRECT provides a convenient and We will be the easiest pharmacy retailer for customers to use. Stock price at calendar year end 30.91 26.42 17.0% Vice President and Corporate Treasurer Chief Executive Officer economical way for you to purchase your first CVS Corporation shares or additional shares of CVS common stock. Zenon P. Lankowsky Market capitalization at calendar year end 25,479.1 21,514.0 18.4% The program is sponsored and administered by OUR VALUES FOR SUCCESS Secretary Richard J. Swift (1) The Bank of New York. For more information, Respect for individuals Former Chairman of the Board, OFFICERS’ CeRTIFications President, and Chief Executive Officer including an enrollment form, please contact: Integrity Foster Wheeler Ltd. The Company has filed the required certifications The Bank of New York at (877) 287-7526 Teamwork under Section 302 of the Sarbanes-Oxley Act Alfred J. Verrecchia (1) Financial and Other Company Information Openness to new ideas of 2002 regarding the quality of our public President and Chief Executive Officer / Atlanta The Company’s Annual Report on Form 10-K Commitment to flawless execution disclosures as Exhibits 31.1 and 31.2 to our Hasbro, Inc. will be sent without charge to any shareholder Passion for extraordinary customer service annual report on Form 10-K for the fiscal year (1) Member of the Audit Committee. upon request by contacting: ended December 30, 2006. After our 2006 see eye (2) Member of the Management Planning and annual meeting of stockholders, the Company Development Committee. Nancy R. Christal filed with the New York Stock Exchange the (3) Member of the Nominating and Vice President – Investor Relations CEO certification regarding its compliance with Corporate Governance Committee. CVS Corporation the NYSE corporate governance listing standards 670 White Plains Road, Suite 210 as required by NYSE Rule 303A.12(a). Scarsdale, NY 10583 CONTRIBUTION TO SALES designed and produced by (800) 201-0938 dollars in millions In addition, financial reports and recent filings MinuteClinic StorE COUnt AT YEar End AnnUAL DividEnds DECLarED PharmaCare* with the Securities and Exchange Commission, $8.6 $3,528.1 06 6,202 06 $0.155 including our Form 10-K, as well as other Retail Pharmacy 05 5,471 05 $0.145 Company information, are available via the Retail Front Store $27,564.8 04 5,375 04 $0.133 Internet at http://investor.cvs.com. $12,712.2 CVS/pharmacy and PharmaCare Specialty Pharmacy locations * PharmaCare includes intercompany elimination TOTAL SALES SAME STORE SALES INCREASE PHARMACY SALES STOCK PRICE AT YEAR END SHAREHOLDER INFORMation 06 $43.8 06 8.2% 06 $31.1 06 $30.91 05 $37.0 05 6.5% 05 $26.3 05 $26.42 04 $30.6 04 5.5% 04 $21.5 04 $22.54 dollars in billions dollars in billions calendar year end OFFICERS DIRECTORS SHAREHOLDER INFORMation Thomas M. Ryan David W. Dorman (2) (3) Corporate Headquarters Chairman of the Board, President, Former Chairman of the Board CVS Corporation and Chief Executive Officer and Chief Executive Officer One CVS Drive, Woonsocket, RI 02895 AT&T Corporation David B. Rickard (401) 765-1500 Executive Vice President, Chief Financial Thomas P. Gerrity (3) Annual Shareholders’ Meeting Officer, and Chief Administrative Officer Professor of Management The Wharton School of the May 9, 2007 Chris W. Bodine AMERICA’S NO. 1 DRUGSTORE CHAIN University of Pennsylvania CVS Corporate Headquarters Executive Vice President At the end of 2006, CVS Corporation operated 6,202 stores in 43 states and the District President, CVS Health Services Marian L. Heard (1) (2) (3) Stock Market Listing President and Chief Executive Officer New York Stock Exchange of Columbia. They included 6,150 CVS/pharmacy locations and 52 PharmaCare Specialty Larry J. Merlo Oxen Hill Partners Symbol: CVS Pharmacy stores. PharmaCare is the nation’s fourth-largest, full-service pharmacy benefits Executive Vice President (1) (3) manager. Total CVS revenues approached $44 billion in 2006, with approximately 70 percent President, CVS/pharmacy – Retail William H. Joyce Transfer Agent and Registrar Chairman of the Board and Douglas A. Sgarro Questions regarding stock holdings, certificate generated through pharmacy sales. In fact, our CVS/pharmacy stores fill more than one in Chief Executive Officer FINANCIAL HIGHLIGHTS Executive Vice President – Strategy replacement/transfer, dividends and address every seven retail prescriptions in the United States. Our 176,000 colleagues work hard to Nalco Company and Chief Legal Officer changes should be directed to: 2006 2005 make things “CVS easy” for our customers – from the pharmacy and the front of the store President, CVS Realty Co. Terrence Murray (2) In millions, except per share figures 52 weeks 52 weeks % change The Bank of New York to MinuteClinic, PharmaCare, and CVS.com. Former Chairman of the Board V. Michael Ferdinandi and Chief Executive Officer Shareholder Relations Department Our company trades on the New York Stock Exchange under the ticker symbol “CVS.” Senior Vice President – Human Resources Sales $ 43,813.8 $ 37,006.2 18.4% FleetBoston Financial Corporation P.O. Box 11258, Church Street Station and Corporate Communications New York, NY 10286 Sheli Z. Rosenberg (2) (3) OUR VISION Operating profit 2,441.6 2,019.5 20.9% Paula A. Price Toll-free: (877) CVSPLAN (287-7526) Former President, Chief Executive Officer, Senior Vice President – Finance and Controller E-mail: [email protected] We help people live longer, healthier, happier lives. Net earnings 1,368.9 1,224.7 11.8% and Vice Chairman Nancy R. Christal Equity Group Investments, LLC Direct Stock Purchase/Dividend Vice President – Investor Relations Reinvestment Program OUR MISSION Diluted earnings per common share 1.60 1.45 10.3% Thomas M. Ryan SM Carol A. DeNale Chairman of the Board, President, and BuyDIRECT provides a convenient and We will be the easiest pharmacy retailer for customers to use. Stock price at calendar year end 30.91 26.42 17.0% Vice President and Corporate Treasurer Chief Executive Officer economical way for you to purchase your first CVS Corporation shares or additional shares of CVS common stock. Zenon P. Lankowsky Market capitalization at calendar year end 25,479.1 21,514.0 18.4% The program is sponsored and administered by OUR VALUES FOR SUCCESS Secretary Richard J.