CVS-2023-final

YOUR TEAM IS JOINING THE CALL...

STATEMENT OF CONFIDENTIALITY

This material contained in our response and any material or information disclosed during of discussions of the proposal represents the proprietary, confidential information pertaining to our services, methodologies and mathods. Other products name and brand my be trademarks or redgesterd trademarks of their respective owners.

1 CVS Drive Woonsocket, Rhode Island 02895, United States

DUMMY WELCOME

If you recall, we started 2021 with a reorganization of our leadership team. While this had been in the works for a while, I really felt that given the start of the new year we could come together as an organization, realign the teams into the correct functional groups and selected five exceptional leaders to drive this organization for our future challenges. This year’s portfolio has a different twist - we independently asked each leader the same questions regarding their thoughts on a variety of topics. While there were differences, there were also similarities in their answers. Our new leadership team is charged with making sure we are correctly positioned as the company pivots to becoming a leading Health Care organization. While many of us have lived through the growth of this company, this transformation is the most exciting opportunity we have ever had, I know as a department we are up for the challenge.

As we have done in the past, we have selected some of the most exciting projects for the 2021 Department Portfolio. These points of pride demonstrate what we can accomplish when we work together. Many projects these days are cross functional in nature, that is why it is so important for our teams to have the agility to work with new business ventures, combinations of construction and maintenance projects or develop large multi phased rollout programs. Another reason for why we have aligned our teams in our current structure.

Finally, I’m really looking forward to the time when we all can be together again. I miss the office interaction, the traveling with the field teams and just seeing people without a mask. I know the day will come; I just hope its soon. Enjoy this year’s Portfolio and a huge thank you for everything you do, this is a special team who always accomplishes unbelievable results.

All the best and stay safe.

Charles E. Golden SVP, Real Estate, Construction & Property Administration

BUILDING LEADERS

HEART AT WORK RECOGNITION

Thank you for all your amazing submissions and congratulation to every nominee!

The Premier and Excellence awards were created for those colleagues that go above and beyond the call of duty.

Today is our chance to thank and recognize individuals that set an example as leaders within the organization by exhibiting our Heart AtWork behaviors & delivering outstanding business results!

EXCELLENCE AWARD

Awarded to individuals nominated by colleagues for exceptional accomplishments… activities.

PREMIER AWARD

Managed by HRBP and Awarded to individuals at town hall meetings for exceptional accomplishments achieved by living and practicing company’s Heart at work behaviors.

CONGRATS TO ALL NOMINEES

• Abi Folarin

• Amy Foisy Kandalaft

• Andrew Marseglia

• Austin Banghart

• Ryan Bakke

• Chandler Crawford

• Christa Canning

• Debra Lavoie

• Isabel Vega & Brian

• Frigon

• Jasmine Gaskin

• Jill Jenkins

• Kendra Gartman-Nitsch

• Kerry Harris

• Mailroom Staff across the country

• Nick Runions

• Nicole Shay

• Nic Incarnato, Corey Reeves, Christa Canning, John Fitzpatrick, April Robinson, Lorie Meath (group nomination)

• Pamela Andrade

• Peter Perry

• Robin White

• Steve Barney

• Stephen LaBonge

• Zillul Mia

Chris was responsible for two (2) critically important 2022 Construction Programs: The Reset/Refresh Program and Project Sage. The unmistakable triumph for Chris this year has been his ability to execute under a tremendous amount of pressure – specifically, the Reset/Refresh program.  A 1000 store program and $151M budget could be daunting in a normal year, but this was anything but normal.

The program was funded out of cycle and Chris (and our dept in its entirety) had to plan and execute in a window of time cut in half. Simultaneously - Chris’s team members Pat and Deb managed the flawless execution of year 1 of Project Sage.

In addition to these (2) premier programs he and his team (Deb, Pat, MJ, and Kyle) took on any work that was asked of them; listed above. He is the first one to say – I can take “that” on – no matter what “that” is. Chris is always trying to do the RIGHT thing – even if it means more work for him.

A great example is the program to decommission our outdoor Covid testing kiosks.  Chris initiated the effort of researching alternative options for the kiosks such as donation as opposed to disposal.  Instead of seeing a challenge where he could have said – Not My Job – he ran with it and has successfully found a home for ~300 kiosks.

Chris is a huge proponent of recognition. He loves recognizing others and is one of the more frequent users of the Heart at Work Behaviors program. It is befitting to provide him this Year End Excellence Award.

EXCELLENCE AWARD WINNER

The migration of our on-premises web servers, that host the RealtyCo portal and all its supporting reporting tools and applications, to the Azure cloud came upon the Data Insights team quickly and without much preparation documentation. This process has been months in the planning and execution has required our team to step far outside their comfort zone and devote a great deal of their time to this project.

Sergey has vast experience in every aspect of software development and has demonstrated a good understanding of the network requirements involved in web application development. On short notice Sergey, was able to immerse himself in the complexities of secure web connections (HTTPS), digital certificate implementation and cross network firewall testing to play a major role in pushing this project forward.

Everything Sergey has applied himself to for this project has required hours of on the job training and research. Working with all team members, Sergey became the critical technical resource in this collaboration between our team, CVS IT and the technical contractor Accenture in both understanding and implementing the necessary network changes.

Sergey has accomplished everything that has been asked of him without any reservation and has assisted our team as a whole to become educated in some of these new skills that ordinarily are not required by software developers. As the migration to Azure continues, Sergey continues to rise to the challenge to keep the success of the mission moving forward.

Sergey showcased his technical brilliance leading Data Insights through a difficult cloud migration.

Sergey serves as a model colleague for how rising to meet a challenge should be handled.

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Sue had an exceptional year completing large transformation projects in the AZ and TX hubs. She is meticulous in her role as a designer and project manager and exemplifies our Heart at Work behaviors.

Rise to the Challenge:

Sue had a very tight timeline to complete refresh projects in Scottsdale and Dallas. She was able to overcome the challenges and complete the projects on schedule and within budget.

Join Forces:

Sue develops strong relationships with her internal and external partners. She is the go-to person on her projects and never hesitates to assist with training or

Champion Safety:

Sue keeps safety at the forefront of her projects; she ensures colleagues are clear on areas to avoid and alternate routes while making travel between destinations as simple as possible.

Puts People First:

Sue can always be found giving employees tours of the Colleague Connection Centers and assisting them on using the reservation system. She always puts people first and takes pride in her workplace.

SUSAN SNEDDEN

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EXCELLENCE AWARD WINNER

Patrick has gone above and beyond in 2022 by:

Doing a superb job training and working closely with Mike Wulftange who has been a great addition to the team

Taking on a lead role in modeling the Sage updates hitting deadlines and executing well

Leading the Sage budgeting efforts providing timely data to Steve Cote on Sage store data and managing the one-time expenses

Managing the monthly Sage reporting to executives by assembling, gathering and checking key metrics related to Sage

Helping Wade/Jim on office optimization

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Completing acquisition deals in a timely manner investigating differences and providing guidance as needed

Working with Foundry database from Palantir to truly dig into deals and understand deals / stores

PATRICK LAPINE Sr. Manager Real Estate & Acquisitions

AL PEREZ

Sr. regional facility manager

PREMIER AWARD WINNER

Al is known among his peers as the czar with regards to hurricane disaster management.  Al’s calm and purposeful demeanor transcends the chaos of the moment, and he effectively leads the response protocol.  Al implements the storm management playbook as he has in the past. However, if you asked him about this storm, he would say this one was different.

Hurricane Ian was larger, stronger, and left an enormous path of destruction.  At the end of the storm there were in excess of 50 locations on generator power, numerous locations with minor to major damages and  a number of locations we were unable to access for weeks.

Al’s commitment to living our organizational values is demonstrated by joining forces, as he worked with both our in house and external utilities teams, the local municipalities, and our operational and vendor partners to prioritize the locations we could open as soon as possible.

By putting people first, he diligently focused on opening those locations of must need by the consumers we serve in addition to the colleagues who support these sites and who were also impacted by the storm.  By creating simplicity, Al streamed line the communication process for all involved to prevent any delays in executing his hurricane management plan.

. © 2022 CVS Health Confidential & Proprietary 17 |

AWARD WINNER

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Joining Forces: the Energy Team plays a critical role in disaster response providing real time power outages using the Energy Management Systems (EMS) to develop generator deployment strategy supporting Retail Operations.

For Hurricane Ian in October, the team worked diligently with local utility providers to identify key areas impacted by outages and provide insight on restoration times. This information was invaluable not only the facilities team, but the entire organization.

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KELLY FOURNIER JOE ESCOBAR

HEALTH & WELLNESS

BELLINGHAM, MA HEALTH & WELLNESS

I was once reminded of the sometimesuncomfortablerealitythat “Feedbackisagift”.Seekitout,and acceptitwithgratitude.Itistheonly thingthatwillevermakeyoubetter.”

KEVIN MCMENIMAN

10/01/22

DISASTER RECOVERY

I was once reminded of the sometimesuncomfortablerealitythat “Feedbackisagift”.Seekitout,and acceptitwithgratitude.Itistheonlything thatwillevermakeyoubetter.”

RELOCATION

I was once reminded of the sometimesuncomfortablerealitythat “Feedbackisagift”.Seekitout,and acceptitwithgratitude.Itistheonly thingthatwillevermakeyoubetter.”

“Feedbackisagift”.Seekitout,andaccept itwithgratitude.Itistheonlythingthatwill

I was once reminded of the sometimesuncomfortablerealitythat “Feedbackisagift”.Seekitout,andaccept itwithgratitude.Itistheonlythingthatwill evermakeyoubetter.”

I was once reminded of the sometimesuncomfortablerealitythat “Feedbackisagift”.Seekitout,andaccept itwithgratitude.Itistheonlythingthatwill evermakeyoubetter.”

I was once reminded of the sometimesuncomfortablerealitythat “Feedbackisagift”.Seekitout,andaccept itwithgratitude.Itistheonlythingthatwill evermakeyoubetter.”

I was once reminded of the sometimesuncomfortablerealitythat “Feedbackisagift”.Seekitout,andaccept itwithgratitude.Itistheonlythingthatwill evermakeyoubetter.”

IMAGE

I was once reminded of the sometiamesuncomfortablerealitythat “Feedbackisagift”.Seekitout,and acceptitwithgratitude.Itistheonlything thatwillevermakeyoubetter.”

KIOSK DONATIONS

GENE THERAPY

KIDNEY CARE

IMAGE

I was once reminded of the sometimesuncomfortablerealitythat “Feedbackisagift”.Seekitout,and acceptitwithgratitude.Itistheonlything thatwillevermakeyoubetter.”

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CUSTOMER EXPERIENCE CENTER

I was once reminded of the sometimesuncomfortablerealitythat “Feedbackisagift”.Seekitout,and acceptitwithgratitude.Itistheonlything thatwillevermakeyoubetter.”

PRIMARY CARE CHARRETTE

STEPHANIE SZNEKE

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QUALITY IMAGE

SHIRLEY BUCKNOR

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I was once reminded of the sometimesuncomfortablerealitythat “Feedbackisagift”.Seekitout,and acceptitwithgratitude.Itistheonlything

STEPHEN MATTSCHECK

MAY 16TH , 2022

I was once reminded of the sometimesuncomfortablerealitythat “Feedbackisagift”.Seekitout,andaccept itwithgratitude.Itistheonlythingthatwill

NEED IMAGE

I was once reminded of the sometimesuncomfortablerealitythat “Feedbackisagift”.Seekitout,and acceptitwithgratitude.Itistheonlything

TEAM ENGAGEMENT

DUMMY

TEXT HERE

This material contained in our response and any material or information disclosed during of discussions of the proposal represents the proprietary, confidential information pertaining to our services, methodologies and mathods. Other products name and brand my be trademarks or redgesterd trademarks of their respective owners.

DUMMY TEXT HERE

This material contained in our response and any material or information disclosed during of discussions of the proposal represents the proprietary, confidential information pertaining to our services, methodologies and mathods. Other products name and brand my be trademarks or redgesterd trademarks of their respective owners.

DUMMY TEXT HERE

This material contained in our response and any material or information disclosed during of discussions of the proposal represents the proprietary, confidential information pertaining to our services, methodologies and mathods. Other products name and brand my be trademarks or redgesterd trademarks of their respective owners.

DUMMY TEXT HERE

This material contained in our response and any material or information disclosed during of discussions of the proposal represents the proprietary, confidential information pertaining to our services, methodologies and mathods. Other products name and brand my be trademarks or redgesterd trademarks of their respective owners.

LEADERSHIP LEARNING SESSION 2022 DEPARTMENT HIGHLIGHTS

CORPORATE REPUTATION / THIRD PARTY IMPACT

• • • •

There have been a small number of inquiries from state and local elected officials related to store closures. GA has responded to these inquiries and prevented further escalation.

There have been a small number of events related to store closures. These protests have been effectively remediated.

Full regional communications plan in place, activating Corporate Social Responsibility and other assets as needed.

Minimal third-party disruption anticipated

Varying lag time for results

$10K (closing store) & $25K (receiving store)

Includes impairments

© 2022 CVS Health Confidential & Proprietary 127 |

25 FEB 24

20 MAR 19

• • • • APR 31

34 JAN 24

36 JUN 34

JUL 22

AUG 36

SEP 24

24 23 24 35 35 MAY 23

19 OCT 23

17 NOV 22

12 DEC 13 INITIAL SCHEDULE Completed Scheduled

Closed 306 Locations

• Created SOP’s

• Joined Forces across the Enterprise

• Achieved 95% Colleague Retention

67 File Buys

• 60% Independent Retention

• vs. MR Estimated 49%

• 65% Chain Retention

• vs. MR Estimated 48%

74% Sage Retention

• vs. Modeled 47%

• vs. target 65%

SURPLUS / SUBTENANT HIGHLIGHTS

SAGE SURPLUS DEALS

• • •

75 Locations with LOI’s with Dollar Tree & Dollar General closings in 2022 & 2023.

7 Locations with LOI’s with WSS (Warehouse Shoe Sale) closings in 2022 & 2023.

These transactions will deliver ~$60M+ of NPV savings upon execution.

CURRENT PORTFOLIO

• •

400 active subleases – closed stores, ATM’s, Cell Towers, Parking lots, Kiosks, etc…

$41,079,940.04 billed and $38,580,556.44 received

COMPLETED EXISTING SURPLUS DEALS

• • •

Negotiated 26 new subtenant leases

Negotiated 21 sublease extensions

20 sales of property land / Building

RETAIL PIPELINE: NEW/RELO, RECOVERY, CONVERSION

30 locations (26 new/4 relo) for a total of 593 sales weeks.

20 locations for Target with a total of 449 sales weeks.

8 other (DR, expansion, conversion) locations for a total of 172 sales weeks.

QUALITY IMAGE

RETAIL: PROJECT SAGE

THE EFFORT

• •

Execute on the Enterprise initiative to close 900 locations over 3 years at a rate of 300/yr.

300 locations closed and liquidated in 2022 across 31 states.

$4.2M in Capital spend.

GOALS

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Fully De-brand closed space Ensure the field teams & store operators are aware of their responsibilities and timelines within the closing process

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DETAILS

Plan, budget and execute the physical de-branding, fixture removal, liquidation and coordination of any required construction repairs needed to satisfy the lease requirements in order to allow CVS to return the building the landlord.

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Communicate 16 Week Closure Schedule to internal parties involved in the process while assuring confidential status remains protected

• •

Schedule liquidation dates to accelerate and accommodate any immediate lease terminations

Certify that the closed space is left per our lease obligations

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DELIVERABLES

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Track and report that all parties involved in the process have completed their removals

Product/merchandise removed prior to our liquidators’ arrival.

WHY IT MATTERS ?

• •

•

All PHI/PII has been properly removed and stored. Ensure any loose pills and hazardous materials are properly addressed if found on-site.

Ensure all proprietary owned assets have been removed per our obligations to the lease.

Abide to our lease termination dates and jurisdictional requirements.

Allows for increased profitability for the Company by closing unprofitable locations due to being out positioned as a result of market changes, changes in traffic patterns and the cannibalization of sales from other CVS assets.

$150M STORE REINVESTMENT PROGRAM

THE EFFORT

Executed $150M reinvestment program aimed at Refreshing and Resetting 1,000+ stores.

Program was funded, launched, and executed in same year.

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PRIMARY CARE CENTERS

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• •

Initial Development of a Primary Care Center to support Patient Health.

Concepts are modeled to fit the Charlotte market retail locations.

Collaboration between our teams, operations, layout, external construction partners, merchandising, logistics, State agencies, Design and PPSA teams to

SUPPLY CHAIN

OMNICHANNEL/ DC’S / FULFILLMENT PILOTS/

THE EFFORT

• •

Standardized construction support to all aspects of our Supply Chain / Logistics / Ops teams.

2 omnichannel expansion projects, 17 occupancy improvements DC projects, 40 fulfillments pilot sites evaluated, 2 new HCSM central fill locations.

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Approx. $16M in capital spend

ENERGY MANAGEMENT & UTILITY ADMIN: SCOPE

EMS CONTROLS

LED LIGHTING

Retail store exterior 115 stores $250k expense savings 2.9k MWh reduction

Aetna Hartford CT customer center and cafeteria $30k expense savings 200 MWh reduction

Knoxville TN parking lot $3k expense savings 25 MWh reduction

Retail store exterior 115 stores $250k expense savings 2.9k MWh reduction

Aetna Hartford CT customer center and cafeteria $30k expense savings 200 MWh reduction Knoxville TN parking lot $3k expense savings 25 MWh reduction

REBATE INCENTIVES

Continued cooler PMs to improve operational and energy efficiency

776 stores $1.3M cost avoidance 3.3k MWh reduction

Onboarded a new vendor in CA to drive results

PM includes 1600 gasket replacement and 336 anti-sweat heater controls

RETRO COMMISSIONING

Completed building surveys to identify energy saving measures

3 locations, 1.9M SF

$65k potential savings

Print Department RI, Aetna HQ CT, Aetna Call Center PA

Utility funded survey and business case preparation

DATA ANALYTICS

Extensive evaluation of TCS Clever Energy proposal

125 stores sub metered

Validated 1% savings vs TCS proposed 24% savings

Inspired trust to terminate engagement

Moved to full testing of energy conservation measures to implement in 2023: free cooling, dead band, seasonal temps, lighting reduction

OFFSITE RENEWABLE ENERGY

• •

CVS Health’s first offsite physical power purchase agreement completed March 22, 2022

We will purchase renewable energy from a phase of Mammoth Solar in Indiana, one of the largest solar projects in the United States

Long term renewable commitment over a 15-year agreement term

329 accounts and 81k MWh in Illinois and Ohio will be emissions free starting in 2025

38,000 MTCO2e = 4% emissions reduction

81,000 annual MWh = 7% toward 50% renewable goal

The first milestone to achieve our goal of 50% renewable energy by 2040!

2023 DEPARTMENT

The Evolution of our Department continues to drive Enterprise Value

Vision

Each of our individual teams continues to grow, evolve, and contributes to our overall department’s winning strategy

Always keeping the consumer at the heart of all we do

STRATEGIC PRIORITIES

Empower Our People & Culture

Optimize Base Business

Corporate Engineering/ Print Operations

Transform he workplace and execute with efficiency.

Corporate Acquisitions driving retention to new heights by way of Sage and Acquisitions & future opportunities.

Deliver Best-in-Class Service

Real Estate & RE Administration continue to drive sustainable growth through our integrated business model, unique collection of assets, data & analytics

Planning, Design, & Construction support, design, and construction of our profitable fleet

Transform Pharmacy

Take accountability.

Don’t tolerate bad behavior. Celebrate success.

Be transparent. Include colleagues in the journey. Explain the why. Acknowledge failure.

• •

COLLEAGUE ENGAGEMENT: CULTURE & LEADERSHIP

Our ability to execute and deliver on our strategy requires we improve our culture.

Though we’re making progress, as leaders, we have more work to do.

Commit to leading by example.

Every interaction matters

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•

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Colleagues need to see our Heart At Work Behaviors™ demonstrated consistently and appropriately.

What we tolerate is equally as important as what we celebrate. As leaders, we must hold each other accountable and align our actions with our culture.

HOW WE DRIVE CULTURE

Build a deeper sense of belonging through meaningful in-person connections.

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Be transparent and involve colleagues in developing solutions.

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Develop and share your leadership philosophy to build trust and empower your teams to make decisions.

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PUT PEOPLE FIRST

Create the best working environment for our colleagues

JOIN FORCES

Partner with internal departments and external vendors to achieve maximum results.

DEPARTMENT

STRATEGY 2023 HEARTATWORK GOALS

INSPIRE TRUST

Engage leaders and key contacts for input and feedback

RISE TO THE CHALLENGE

Implement Real Estate optimization and achieve financial objectives.

CREATE SIMPLICITY

Improve & streamline workflow & procedures.

CHAMPION SAFETY & QUALITY

Ensure safety is a key focus of all projects and initiatives.

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Continue to transform the culture of our department.

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Educate businesses and colleagues on our offerings and how we can support individual, department and enterprise team needs.

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Partner with all internal team on improvement of initiative and project support.

• Seek feedback from internal business leaders, vendors and support teams to ensure continuous process improvement.

Continue partnership with Sustainability Team ensuring alignment with ESG goals

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Continue team development sessions with focus on communications and first level leader development.

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Execute Optimization (Project Sage) within financial targets.

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Further enhance department spend tracking and forecasting.

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Refine internal project tracking & financial tools.

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Launch Data platform that will be a single source for internal information.

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Re-evaluate safety protocols to ensure alignment with jurisdictions & enterprise guidelines

2023 GOALS

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AUTOMATION & SYSTEM DATA FLOW

INPUTS

PEGASUS

Web-based system that combines data from multiple sources to force order quantities for what is existing and what is required for the project.

OUTPUTS