Cencora (COR) 8-K Other Events

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