Premier 8K Regulation FD Disclosure | PINC 13 May 15

Bank of America Merrill Lynch

2015 Health Care Conference

May 13, 2015

Transforming Healthcare

from the Inside

Exhibit 99.1

2015 PREMIER, INC.

Forward-looking

statements—Certain

statements

included

this

presentation,

including,

but

not

limited

to,

those

our

financial

and

business

outlook,

strategy

and

growth

drivers,

member

retention rates and revenue visibility, cross and upsell opportunities, acquisition activities and pipeline,

revenue available under contract, and 2015 financial guidance and related assumptions, are “forward-

looking statements”

within the meaning of the federal securities laws. Forward-looking statements may

involve

known

and

unknown

risks,

uncertainties

and

other

factors

that

may

cause

the

actual

results

Premier to be materially different from historical results or from any future results or projections

expressed or implied by such forward-looking statements. Accordingly, readers should not place

undue reliance on any forward looking statements. Readers are urged to consider statements in the

conditional

future

tenses

that

include

terms

such

“believes,”

“belief,”

“expects,”

“estimates,”

“intends,”

“anticipates”

or “plans”

to be uncertain and forward-looking.

Forward-looking statements

may include comments as to Premier’s beliefs and expectations as to future events and trends

affecting its business and are necessarily subject to uncertainties, many of which are outside

Premier’s

control.

information

potential

risks

and

other

factors

that

could

affect

Premier’s

financial results is included, and updated, from time to time, in Premier’s periodic and current filings

with

the

SEC,

including

Premier’s

most

recent

Form

10-K

for

the

year

ended

June

30,

2014.

Forward-

looking statements speak only as of the date they are made. Premier undertakes no obligation to

publicly update or revise any forward-looking statements.

Non-GAAP

financial

measures—This

presentation

includes

certain

“non-GAAP

financial

measures”

defined in Regulation G under the Securities Exchange Act of 1934. Schedules are attached that

reconcile the non-GAAP financial measures included in this presentation to the most directly

comparable financial measures calculated and presented in accordance with Generally Accepted

Accounting Principles in the United States. Our Form 10-Q for the quarter ended March 31, 2015, filed

on or about May 12, 2015, provides further explanation and disclosure regarding our use of non-GAAP

financial measures and should be read in conjunction with this presentation.

Forward-looking statements and Non-GAAP financial

measures

2015 PREMIER, INC.

Our business at a glance

Alliance of approximately 3,400

hospitals –

68% of U.S. community

hospitals –

and 110,000 alternate

sites of care

Approximately

74%

owned

health systems ¹

~$41

billion

group

purchasing

volume

Insights

into

out

every

U.S.

health system discharges

Integrated clinical, financial and

operational data

Over 500 sales/field and advisory

services

employees

that

work

with

and inside our member hospitals

Data as of September 30, 2014.

(1)

April

30,

2015.

Premier’s unique customer alignment and data-driven intelligence

platform allow us to help our health systems manage current

challenges and build for the future…

all at the same time

2015 PREMIER, INC.

Partnership model drives innovation and growth

SCALE

Represent ~68% of U.S. community hospitals

Clinical, financial, operational data integrated on

PremierConnect

platform

Insights into ~1 out of every 3 U.S. health system

discharges

Approximately $41 billion in supply chain spend

Manage ~1,900 contracts from ~1,100 suppliers

ALIGNMENT

Members own ~74% of equity

(1)

10 health system board members

Premier field force embedded in member hospitals

COMMITMENT

Member owner average tenure ~15 years (76% at 10+ years)

Members view Premier as strategic partner or organizational

extension

CO-INNOVATION

Co-develop solutions with members

Committees composed of ~165 member hospitals

~1,100 hospitals in performance improvement

collaboratives

Data Alliance Collaborative

Note: Data as of September 30, 2014.

(1)

As of April 30, 2015.

2015 PREMIER, INC.

Unique business model generates multiple revenue drivers

Performance Services

27% of FY’14 consolidated revenue

INTEGRATED SALES/FIELD FORCE &

Become the data analytics “backbone”

with wrap-around services for cost and

quality improvement over the short term

and population health management

solutions over the long term

Change the game in supply chain,

uncover unmatched savings and value,

and lead the disruption of the industry

Note: Consolidated revenue is presented on a non-GAAP pro forma basis for Supply Chain Services. See reconciliation pages in the appendix.

Supply Chain Services

Group purchasing

Direct sourcing

Specialty pharmacy

Capital planning

73% of FY’14 consolidated revenue

2015 PREMIER, INC.

SaaS-based informatics products

PremierConnect

Enterprise

Advisory services

Performance improvement

collaboratives

2015 PREMIER, INC.

A platform for continuous performance improvement

Manage

Populations

Improve

Quality and Safety

Reduce

Costs

PREMIERCONNECT

SUPPLY CHAIN

BILLING

PURCHASING

CLAIMS

CLINICAL

FINANCIAL

Combines People, Process, and Technology

2015 PREMIER, INC.

the

Third-quarter

consolidated

and

segment

highlights

Consolidated

Net revenue (millions)

Supply Chain Services

Net revenue (millions)

Performance Services

Net revenue (millions)

Adjusted EBITDA

(millions)

Adjusted EBITDA (millions)

(1) See

non-GAAP

Adjusted

EBITDA

and

non-GAAP

Segment

Adjusted

EBITDA

reconciliations

GAAP

equivalents

Appendix.

2015 PREMIER, INC.

Third-quarter

non-GAAP

adjusted

fully

distributed

net

income

$0.34

$0.38

Non-GAAP earnings per share on adjusted fully

distributed net income –

diluted

(1) See non-GAAP adjusted fully distributed net income and non-GAAP earnings per share on

fully

distributed

net

income

reconciliations

GAAP

equivalents

Appendix

Calculates income taxes at

40% on pre-tax income,

assuming taxable C corporate

structure

Calculates adjusted fully

distributed earnings per

share, assuming total Class A

and B common shares held

by public

(in millions, except per share data)

2015 PREMIER, INC.

Fiscal 2015 annual guidance

Guidance is based on comparisons with prior-year non-GAAP pro forma results, which have been adjusted to reflect the impact of the company’s reorganization and IPO. The

Company does not reconcile guidance for adjusted EBITDA and non-GAAP adjusted fully distributed net income per-share to net income (loss) or GAAP earnings per share

because the Company does not provide guidance for reconciling items between net income (loss) and adjusted EBITDA and non-GAAP adjusted fully distributed earnings per

share. The Company is unable to provide guidance for these reconciling items since certain items that impact net income (loss) are outside of the Company’s control and cannot be

reasonably predicted. Accordingly, a reconciliation to net income (loss) or GAAP earnings per share is not available without unreasonable effort.

Financial guidance for year ending June 30, 2015 (updated May 11, 2015):

Supply Chain Services growth driven by:

6%-7% net administrative fee revenue growth

27%-32% product revenue growth

Continued high GPO retention rates

Guidance Assumptions:

Performance Services growth driven by:

Continued demand for integrated offerings of SaaS-based

subscription and licensed products, advisory services and

collaboratives

Continuation of high SaaS institutional renewal rates

Updated

Pro Forma

(in millions, except per share data)

FY 2015

% YoY Change

FY 2015

Net Revenue:

Supply Chain Services segment

$720.0 -

$733.0

13% -

15%

$706.0 -

$725.0

Performance Services segment

$268.0 -

$275.0

15% -

18%

$268.0 -

$275.0

Total Net Revenue

$988.0 -

$1008.0

14% -

16%

$974.0 -

$1000.0

Non-GAAP adjusted EBITDA

$384.0 -

$392.0

9% -

12%

$382.0 -

$390.0

Non-GAAP adjusted fully distributed EPS

$1.40 -

$1.44

8% -

11%

$1.40 -

$1.44

Premier, Inc. updates full-year fiscal 2015 financial guidance, as follows:

Fiscal 2015 Financial Guidance

2015 PREMIER, INC.

Cash flow and capital flexibility at March 31, 2015

Year-to-date cash flow from operations of

$255.6 million

Third-quarter

free

cash

flow

$59.5

million

Cash, cash equivalents and marketable

securities of $503.3 million

No outstanding borrowings on $750 million

five-year unsecured revolving credit facility

CONSIDERABLE CASH AND

DEBT CAPACITY

AVAILABLE

AMPLE CAPITAL

FLEXIBILITY FOR FUTURE

ACQUISITIONS AND

BUSINESS GROWTH

(1)

Three

months

ended

March

31,

2015.

Company

defines

free

cash

flow

cash

provided

operating

activities

less

distributions

limited

partners

and

purchases

property

and

equipment.

See

non-GAAP

free

cash

flow

reconciliation

GAAP

equivalent

Appendix.

2015 PREMIER, INC.

Strategic acquisitions address member needs

(Closed July 2013)

(Closed October 2013)

(Closed April 2014)

(Closed August 2014)

(Closed September 2014)

Company

Clinical & physician

preference cost reduction

Data acquisition from

multiple technologies

Health system capital

expenditure cost reduction

Supply chain technology

enablement

Quality & safety

improvement

Strategic Need

Direct sourcing

(Closed

February

2015

)

(1) Purchased initial 60% ownership in 2011. Remaining 40% minority interest purchased on February 2, 2015.

2015 PREMIER, INC.

Attractive opportunities for further capital deployment

Supply Chain Services

Performance Services

Diverse and growing end markets to drive Premier’s growth

2015 PREMIER, INC.

Key investment differentiators

Unique

customer

alignment

Data-driven,

technology

enabled

Diversified

growth

engine

Compelling

financial

profile

2015 PREMIER, INC.

Thank you

For more information contact:

Jim Storey

Vice President, Investor Relations

Premier, Inc.

704-816-5958

jim_storey@premierinc.com

2015 PREMIER, INC.

Appendix

“Data, data, everywhere...

…

and

not

drop

drink!”

Premier is a uniquely-aligned healthcare performance

improvement company that provides integrated data-analytics

and business intelligence to comprehensively reduce costs,

improve quality, and drive better patient outcomes.

2015 PREMIER, INC.

Our leadership team

Susan DeVore, President and CEO

11 years Premier; 26 years healthcare

Cap Gemini Ernst & Young

Mike Alkire, COO

10 years Premier; 11 years healthcare

Cap Gemini Ernst & Young

Craig McKasson, CFO

17 years Premier; 21 years healthcare

Ernst & Young

Jeff Lemkin, General Counsel

4 years Premier; 41 years healthcare

McDermott Will & Emery

Terry Linn, SVP, Strategy

4 years Premier; 31 years healthcare

Ernst & Young, American Medical International,

Charter Medical

Kelli Price, SVP, People

14 years Premier; 16 years healthcare

Malcolm Baldrige National Quality Award expert

Blair Childs, SVP, Public Affairs

7 years Premier; 26 years healthcare

AdvaMed

Durral Gilbert, President, Supply Chain Services

8 years Premier; 8 years healthcare

BDS Management, Wachovia Securities

Wes Champion, SVP, Performance Partners

7 years Premier; 23 years healthcare

Cap Gemini Ernst & Young, Accenture

Gary Long, SVP, Chief Sales Officer

2 years Premier; 21 years healthcare

McKesson

Andy Brailo, SVP, Member Field Services

13 years Premier; 21 years healthcare

Medibuy, Bard

Keith Figlioli, SVP, Informatics

5 years Premier; 11 years HIT

Eclipsys (acquired by Allscripts)

Jeff Petry, SVP, Marketing

17 years Premier; 23 years healthcare

Mezzia, The Advisory Board Company

2015 PREMIER, INC.

Our multiple business and growth drivers

GPO

Specialty

pharmacy

Direct

sourcing

SaaS-based

informatics

products

Performance

improvement

collaboratives

Advisory

services

Data

management/

warehousing

Business

Revenue Drivers

FY’14 Results

Net Revenue

14%

Segment Adjusted

EBITDA

Net Revenue

13%

Segment Adjusted

EBITDA

31%

Net Revenue

14%

Adjusted EBITDA

12%

Adjusted fully

distributed EPS

Consolidated

•

Administrative fees paid

by suppliers

•

Drug reimbursement

•

Fee for service

•

Product sales of contract

manufactured items

•

SaaS-based subscriptions

•

Fee-for-service

•

Fee-for-service

•

SaaS-based subscriptions

•

SaaS-based subscriptions

•

Significant stickiness

•

Strong visibility across

diverse revenue streams

(1)

Results are presented on a non-GAAP pro forma basis. See Adjusted EBITDA, Segment Adjusted EBITDA and fully distributed net income reconciliation to

GAAP equivalent in the Appendix.

Net Revenue

11% -

14%

Adjusted EBITDA

8% -

11%

Adjusted fully

distributed EPS

7% -

11%

2015 PREMIER, INC.

MULTIPLE GROWTH

DRIVERS

•

Consolidated double-digit net revenue and adjusted

EBITDA

(1)

growth

•

Diversified revenue opportunities in Supply Chain Services

and Performance Services

•

Multiple emerging growth drivers

HIGH VISIBILITY

•

High retention rates in both business segments

•

5-7 year contracts in Supply Chain Services and 3-5 year

SaaS-based subscription contracts in Performance Services

•

Fiscal 2015 revenue visibility over 90%

ATTRACTIVE

ECONOMIC MODEL

•

Significant cross and upsell opportunities in existing

member base

•

High margins and low marginal cost to support new GPO

members and further penetration of existing GPO members

•

SaaS-based products generate high returns on new wins

EVOLVING

BUSINESS MIX

•

Investments in emerging growth initiatives will impact

adjusted EBITDA

(1)

margins, but enhance adjusted

EBITDA

(1)

growth

•

Capital investments increase D&A, impacting near-term net

income margins

DISCIPLINED CAPITAL

DEPLOYMENT TRACK

RECORD

•

Strong returns on acquired assets

•

Strategic, financial and execution framework in place for

capital deployment

Demonstrated financial model and performance

(1) See Adjusted EBITDA reconciliation to GAAP equivalent in Appendix.

2015 PREMIER, INC.

the

Fiscal

year-to-date

nine-month

financial

highlights

Consolidated

Net revenue (millions)

Supply Chain Services

Net revenue (millions)

Performance Services

Net revenue (millions)

Adjusted EBITDA

(millions)

Adjusted EBITDA (millions)

(1) Comparisons are with year-ago non-GAAP pro forma information that reflects the impact of the company’s reorganization and initial public offering.

See Adjusted EBITDA, Segment Adjusted EBITDA and Adjusted Fully Distributed Net Income reconciliations to GAAP equivalents in Appendix.

2015 PREMIER, INC.

Significant Fiscal 2015 revenue visibility: 90+%

PERFORMANCE METRICS

FY 2015

FY 2014

3 Year

Average

Revenue available under contract

$898M

---

GPO

retention

rate

---

99%

97%

SaaS

institutional

renewal

rate

---

94%

(1)

As of fiscal year-end June 30, 2014

(2)

The retention rate is calculated based upon the aggregate purchasing volume among all members participating in our GPO for such fiscal year less the annualized GPO purchasing

volume

for

departed

members

for

such

fiscal

year,

divided

the

aggregate

purchasing

volume

among

all

members

participating

our

GPO

for

such

fiscal

year.

(3)

The renewal rate is calculated based upon the total number of members that have SaaS revenue in a given period that also have revenue in the corresponding prior year period

divided

the

total

number

members

that

have

SaaS

revenue

the

same

period

the

prior

year.

OVER 90%

FY 2015 REVENUE

GUIDANCE RANGE

ALREADY AVAILABLE

UNDER CONTRACT

HIGH GPO

RETENTION

AND SAAS

INSTITUTIONAL

RENEWAL RATES

2015 PREMIER, INC.

Expanding

supply chain

solutions

Steady acute

GPO growth

“Other”

Upside

Performance Services

Supply Chain Services

Non-acute and

complementary

services

expansion

Top Priority Strategic Initiatives

Expanded cost reduction

Non acute and pharmacy growth

Supply chain technology

Member

penetration

performance

services

New product

development

M&A and

growth

opportunities

Attributes

Strong

distribution

channel

Desired

expertise/

capabilities

Top Priority Strategic Initiatives

Clinical integration/ shared

services

Ambulatory data expansion

Population health capabilities

Multiple opportunities to drive long-term sustainable growth

2015 PREMIER, INC.

Structural implications of Premier, Inc.

Structure

Structured as “Up-C”

with Premier, Inc. (parent C-Corp above operating partnership and

subsidiaries)

Premier, Inc. formed with two classes of stock

•

Class A shares held by public investors

•

Class B shares allocated to member owners

22% of Limited Partner interests sold to public, 78% retained by

member owners as

Class B units

Class B units eligible to exchange 1/7th per year, over seven-year period

Exchange of Class B units for A-shares (on a 1-for-1 basis) as B-units become eligible

for exchange subject to ROFR by members owners and Premier, Inc.

First exchange on October 31, 2014, and subsequent company directed offering injected

3.9 million shares of liquidity into the public market, resulting in public ownership of 26%

and member owner interest of 74%

Given Up-C structure and differences between taxes paid by our Class A unit holder

(Premier GP) vs. distributions to our Class B unit holders (members owners), we

calculate Adjusted Fully Distributed Net Income¹

for comparability purposes

Reflects taxes and net income as if the Company was a C-Corp for all periods

presented

Class A and Class B shares will be used to calculate fully diluted EPS to eliminate

variability due to member exchanges over time

Impact of IPO and

Exchange Process

Adjusted fully

distributed net

income

Share count

(1)

See Adjusted EBITDA and Adjusted Fully Distributed Net Income reconciliations to GAAP equivalents in Appendix

2015 PREMIER, INC.

Member owners allocated

income in operating

partnership based on

percentage ownership

Income tax expense equals

40% of income attributable

to Premier, Inc.

Member owners receive tax

distribution to cover any tax

liability on allocated income

Amount of retained

profitability in business

equal regardless of

ownership structure

Reflects 41% tax rate on

100% of pretax income

(assumes full C-Corp tax

treatment)

Amount paid for taxes equal

regardless of ownership

structure

Illustrative impact of ownership structure

Ownership

(1)

22% Class A /

78% Class B

Ownership

100% Class A

For illustrative purposes only. Ownership percentage is based on

structure at the time of the October 2013

initial public offering and will change over time.

Income Statement

Net Revenue

500,000

Cost of Revenue

200,000

Gross Profit

300,000

Operating Expenses

140,000

Operating Income

160,000

Net Income Attributable to NCI in Premier LP

(124,800)

Pre-Tax Income Attributable to Premier Inc.

35,200

160,000

Income Tax Expense

14,080

64,000

Net Income Attributable to Premier, Inc.

21,120

96,000

Income Retained in Business

Net Income Attributable to Premier, Inc.

21,120

96,000

Net Income Attributable to NCI in Premier LP

124,800

Tax Distribution to Premier LP Limited Partners

(49,920)

Net Income Retained in Business

96,000

Adjusted Fully Distributed Net Income

Net Income Attributable to Premier, Inc.

21,120

96,000

Add: Income Tax Expense

14,080

64,000

Add: Net Income Attributable to NCI in Premier

124,800

Fully Distributed Income Before Income Taxes

160,000

Adjusted for income tax expense on fully

distributed net income before income taxes

64,000

Adjusted Fully Distributed Net Income

96,000

Income Taxes/Tax Distributions

Income Tax Expense

14,080

64,000

Tax Distribution to Class B Limited Partners

49,920

Total Tax, including tax distribution to limited

partners

64,000

2015 PREMIER, INC.

Fiscal 2014 and fiscal 2013 non-GAAP reconciliations

Reconciliation of Selected Non-GAAP Measures to GAAP Measures

(Unaudited, in thousands)

Adjustments

Amount

% of Net

Revenue

Amount

% of Net

Revenue

Amount

% of Net

Revenue

Amount

% of Net

Revenue

Net revenue:

Net administrative fees

464,837

51%

(41,263)

423,574

49%

519,219

60%

(105,012)

414,207

54%

Other services and support

233,186

26%

233,186

27%

205,685

24%

205,685

27%

Services

698,023

77%

(41,263)

656,760

76%

724,904

84%

(105,012)

619,892

81%

Products

212,526

23%

212,526

24%

144,386

16%

144,386

19%

Net revenue

910,549

100%

(41,263)

869,286

100%

869,290

100%

(105,012)

764,278

100%

Cost of revenue:

Services

115,740

13%

115,740

13%

103,795

12%

103,795

14%

Products

191,885

21%

191,885

22%

133,618

15%

133,618

17%

Cost of revenue

307,625

34%

307,625

35%

237,413

27%

237,413

31%

Gross profit

602,924

66%

(41,263)

561,661

65%

631,877

73%

(105,012)

526,865

69%

Operating expenses:

Selling, general and administrative

294,421

33%

294,421

35%

248,301

29%

248,301

33%

Research and development

3,389

— %

3,389

— %

9,370

Amortization of purchased intangible assets

3,062

— %

3,062

— %

1,539

— %

1,539

— %

Total operating expenses

300,872

33%

300,872

35%

259,210

30%

259,210

34%

Operating income

302,052

33%

(41,263)

260,789

30%

372,667

43%

(105,012)

267,655

35%

Other income, net

58,274

12,145

Income before income taxes

360,326

40%

(41,263)

319,063

37%

384,812

44%

(105,012)

279,800

37%

Income tax expense

27,709

(3,239)

24,470

9,726

22,813

32,539

Net income

332,617

37%

(38,024)

294,593

34%

375,086

43%

(127,825)

247,261

33%

Net (income) loss attributable to noncontrolling interest

in S2S Global

(949)

— %

(949)

— %

1,479

— %

1,479

— %

Net income attributable to noncontrolling interest in

Premier LP

(303,336)

(33)%

57,690

(245,646)

(28)%

(369,189)

(42)%

150,726

(218,463)

(29)%

Net income attributable to noncontrolling interest

(304,285)

(33)%

57,690

(246,595)

(28)%

(367,710)

(42)%

150,726

(216,984)

(29)%

Net income attributable to shareholders

28,332

19,666

47,998

7,376

22,901

30,277

Adjustment of redeemable limited partners' capital to

redemption amount

(2,741,588)

Net income (loss) attributable to shareholders after

adjustment of redeemable partners' capital to

redemption amount

(2,713,256)

19,666

(2,693,590)

7,376

22,901

30,277

Adjusted EBITDA

392,288

43%

(41,263)

351,025

40%

419,025

48%

(105,012)

314,013

41%

Adjusted Fully Distributed Net Income

188,561

22%

172,793

23%

nm - Not meaningful

na - Not applicable

Actual

Non-GAAP Pro Forma

Year Ended June 30,

2014

2013

Non-GAAP Pro Forma

2015 PREMIER, INC.

Fiscal 2014 and fiscal 2013 non-GAAP reconciliations

(Unaudited, in thousands)

Actual

Adjustments

Non-GAAP

Pro Forma

Actual

Adjustments

Non-GAAP

Pro Forma

Reconciliation of Non-GAAP Pro Forma Net Revenue to Net Revenue:

Supply Chain Services

678,141

(41,263)

636,878

664,076

(105,012)

559,064

Performance Services

232,408

205,214

Net Revenue

910,549

(41,263)

869,286

869,290

(105,012)

764,278

Reconciliation of Net Income to Adjusted EBITDA and Reconciliation of

Segment Adjusted EBITDA to Income Before Income Taxes:

Net income

332,617

(38,024)

294,593

375,086

(127,825)

247,261

Interest and investment income, net

(1,019)

(965)

Income tax expense

27,709

(3,239)

24,470

9,726

22,813

32,539

Depreciation and amortization

36,761

27,681

Amortization of purchased intangible assets

3,062

1,539

EBITDA

399,130

(41,263)

357,867

413,067

(105,012)

308,055

Stock-based compensation expense

19,476

Acquisition related expenses

2,014

Strategic and financial restructuring expenses

3,760

5,170

Gain on sale of investment

(38,372)

Adjustment to tax receivable agreement liability

6,215

Other (income) expense, net

788

Adjusted EBITDA

392,288

(41,263)

351,025

419,025

(105,012)

314,013

Segment Adjusted EBITDA:

Supply Chain Services

396,470

(41,263)

355,207

431,628

(105,012)

326,616

Performance Services

73,898

56,456

Corporate

(78,080)

(69,059)

Adjusted EBITDA

392,288

(41,263)

351,025

419,025

(105,012)

314,013

Depreciation and amortization

(36,761)

(27,681)

Amortization of purchased intangible assets

(3,062)

(1,539)

Stock-based compensation expense

(19,476)

Acquisition related expenses

(2,014)

Strategic and financial restructuring expenses

(3,760)

(5,170)

Adjustment to tax receivable agreement liability

(6,215)

Equity in net income of unconsolidated affiliates

(16,976)

(11,968)

Deferred compensation plan expense

(1,972)

Operating income

302,052

(41,263)

260,789

372,667

(105,012)

267,655

Equity in net income of unconsolidated affiliates

16,976

11,968

Interest and investment income, net

1,019

965

Gain on sale of investment

38,372

Other income (expense), net

1,907

(788)

Income before income taxes

360,326

(41,263)

319,063

384,812

(105,012)

279,800

Year Ended June 30,

2014

2013

2015 PREMIER, INC.

Fiscal 2014 and fiscal 2013 non-GAAP reconciliations

Reconciliation of Selected Non-GAAP Measures to GAAP Measures

(Unaudited, in thousands)

2014

2013

28,332

7,376

(41,263)

(105,012)

27,709

9,726

19,476

—

2,014

—

3,760

5,170

(38,372)

—

6,215

—

3,062

1,539

303,336

369,189

314,269

287,988

125,708

115,195

188,561

172,793

Non-GAAP Pro forma fully distributed income before income taxes

Income tax expense on fully distributed income before income taxes

Non-GAAP Pro Forma Adjusted Fully Distributed Net Income

Acquisition related expenses

Strategic and financial restructuring expenses

Gain on sale of investment

Adjustment to tax receivable agreement liability

Amortization of purchased intangible assets

Net income attributable to noncontrolling interest in Premier LP

Stock-based compensation expense

Year Ended June 30,

Net income attributable to shareholders

Pro forma adjustment for revenue share post-IPO

Income tax expense

2015 PREMIER, INC.

Fiscal 2014 and fiscal 2013 non-GAAP reconciliations

2014

2013

Reconciliation of numerator for GAAP EPS to Non-GAAP EPS on Adjusted Fully Distributed Net Income

Net income (loss) attributable to shareholders after adjustment

of redeemable limited partners' capital to

redemption amount

(2,713,256)

7,376

Adjustment of redeemable limited partners' capital to redemption

amount

2,741,588

Net income (loss) attributable to shareholders

28,332

7,376

Pro forma adjustment for revenue share post-IPO

(41,263)

(105,012)

Income tax expense

27,709

9,726

Stock-based compensation

19,476

—

Gain on sale of investment

(38,372)

—

Acquisition related expenses

2,014

—

Strategic and financial restructuring expenses

3,760

5,170

Adjustment to tax receivable agreement liability

6,215

—

Amortization of purchased intangible assets

3,062

1,539

Net income attributable to noncontrolling interest in Premier LP

303,336

369,189

Non-GAAP pro forma adjusted fully distributed income before income taxes

314,269

287,988

Income tax expense on fully distributed income before income taxes

125,708

115,195

Non-GAAP pro forma adjusted fully distributed net income

188,561

172,793

Reconciliation of denominator for GAAP EPS to Non-GAAP to Adjusted Fully Distributed Net Income

Weighted Average:

Common shares used for basic and diluted earnings per share

25,633

5,858

Potentially dilutive shares

124

Class A common shares outstanding

6,742

26,517

Conversion of Class B common units

112,584

112,608

Weighted average fully distributed shares outstanding -

diluted

145,083

144,983

Reconciliation of GAAP EPS to Adjusted Fully Distributed EPS

GAAP income (loss) per share

$ (105.85)

$ 1.26

Impact of adjustment of redeemable limited partners' capital to redemption amount

106.96

$ -

Impact of additions:

Pro forma adjustment for revenue share post-IPO

$ (1.61)

$ (17.93)

Income tax expense

1.08

$ 1.66

Stock-based compensation

0.76

$ -

Gain on sale of investment

$ (1.50)

$ -

Acquisition related expenses

0.08

$ -

Strategic and financial restructuring expenses

0.15

$ 0.88

Adjustment to tax receivable agreement liability

0.24

$ -

Amortization of purchased intangible assets

0.12

$ 0.26

Net income attributable to noncontrolling interest in Premier LP

11.83

$ 63.02

Impact of corporation taxes

$ (4.90)

$ (19.66)

Impact of increased share count

$ (6.06)

$ (28.31)

Non-GAAP earnings per share on adjusted fully distributed net income

diluted

1.30

1.19

Supplemental Financial Information -

Reporting of Net Income and Earnings Per Share

Reconciliation of Selected Non-GAAP Measures to GAAP Measures

(Unaudited)

(In thousands)

Year Ended

June 30,

2015 PREMIER, INC.

Fiscal 2015 and fiscal 2014 non-GAAP reconciliations

2015*

2014*

2015*

2014

Reconciliation of Pro Forma Net Revenue to Net Revenue:

Pro Forma Net Revenue

261,723

225,598

740,476

633,820

Pro forma adjustment for revenue share post-IPO

—

41,263

Net Revenue

261,723

225,598

740,476

675,083

Net income

72,029

101,980

202,724

265,985

Pro forma adjustment for revenue share post-IPO

—

(41,263)

Interest and investment income, net

(204)

(400)

(517)

(641)

Income tax expense

2,026

9,413

12,107

24,461

Depreciation and amortization

11,538

9,396

33,107

26,952

Amortization of purchased intangible assets

2,554

802

6,598

2,158

EBITDA

87,943

121,191

254,019

277,652

Stock-based compensation

7,285

6,299

21,129

13,118

Acquisition related expenses

2,863

984

6,408

1,303

Strategic and financial restructuring expenses

733

1,281

3,614

Loss (gain) on investment

1,000

(37,850)

1,000

(37,850)

Adjustment to tax receivable agreement liability

1,073

—

Acquisition related adjustment -

deferred revenue

3,563

—

9,224

—

Other expense (income), net

(52)

(56)

Adjusted EBITDA

103,745

91,305

293,071

257,781

Segment Adjusted EBITDA:

Supply Chain Services

101,600

91,477

290,210

302,076

Pro forma adjustment for revenue share post-IPO

—

(41,263)

Supply Chain Services

(including pro forma adjustment)

101,600

91,477

290,210

260,813

Performance Services

26,166

20,307

67,717

54,367

Corporate

(24,021)

(20,479)

(64,856)

(57,399)

Adjusted EBITDA

103,745

91,305

293,071

257,781

Depreciation and amortization

(11,538)

(9,396)

(33,107)

(26,952)

Amortization of purchased intangible assets

(2,554)

(802)

(6,598)

(2,158)

Stock-based compensation

(7,285)

(6,299)

(21,129)

(13,118)

Acquisition related expenses

(2,863)

(984)

(6,408)

(1,303)

Strategic and financial restructuring expenses

(2)

(733)

(1,281)

(3,614)

Adjustment to tax receivable agreement liability

(1,073)

—

Acquisition related adjustment -

deferred revenue

(3,563)

—

(9,224)

—

Equity in net income of unconsolidated affiliates

(5,197)

(3,566)

(14,812)

(12,171)

Deferred compensation plan (income) expense

(759)

—

209

—

68,911

69,525

200,721

198,465

Pro forma adjustment for revenue share post-IPO

—

41,263

Operating income

68,911

69,525

200,721

239,728

Equity in net income of unconsolidated affiliates

5,197

3,566

14,812

12,171

Interest and investment income, net

204

400

517

641

(Loss) gain on investment

(1,000)

37,850

(1,000)

37,850

Other income (expense), net

743

(219)

Income before income taxes

74,055

111,393

214,831

290,446

* Note that no pro forma adjustments were made for the three and

nine months ended March 31, 2015 and the three months ended March 31,

2014; as such, actual results are presented for each of these periods.

Three Months Ended

March 31,

Nine Months Ended

March 31,

Supplemental Financial Information -

Reporting of Pro Forma Adjusted EBITDA

(Unaudited)

(In thousands)

Reconciliation of Selected Non-GAAP Measures to GAAP Measures

and Non-GAAP Adjusted Fully Distributed Net Income

Reconciliation of Net Income to Adjusted EBITDA and Reconciliation of Segment Adjusted EBITDA to Income Before Income Taxes:

2015 PREMIER, INC.

Fiscal 2015 and fiscal 2014 non-GAAP reconciliations

2015*

2014*

2015*

2014

Reconciliation of Non-GAAP Pro Forma Adjusted Fully Distributed Net Income:

Net income attributable to shareholders

12,209

13,525

30,753

19,453

Pro forma adjustment for revenue share post-IPO

—

(41,263)

Income tax expense

2,026

9,413

12,107

24,461

Stock-based compensation

7,285

6,299

21,129

13,118

Acquisition related expenses

2,863

984

6,408

1,303

Strategic and financial restructuring expenses

733

1,281

3,614

Loss (gain) on investment

1,000

(37,850)

1,000

(37,850)

Adjustment to tax receivable agreement liability

1,073

—

Acquisition related adjustment -

deferred revenue

3,563

—

9,224

—

Amortization of purchased intangible assets

2,554

802

6,598

2,158

Net income attributable to noncontrolling interest in Premier LP

59,568

87,925

170,135

246,055

Non-GAAP pro forma adjusted fully distributed income before income taxes

92,143

81,831

258,635

231,049

Income tax expense on fully distributed income before income taxes

36,857

32,732

103,454

92,420

Non-GAAP Pro Forma Adjusted Fully Distributed Net Income

55,286

49,099

155,181

138,629

Note

that

pro

forma

adjustments

were

made

for

the

three

and

nine

months

ended

March

31,

2015

and

the

three

months

ended

March

31,

2014; as such, actual results are presented for each of these periods.

Three Months Ended

March 31,

Nine Months Ended

March 31,

Supplemental Financial Information -

Reporting of Pro Forma Adjusted EBITDA

(Unaudited)

(In thousands)

Reconciliation of Selected Non-GAAP Measures to GAAP Measures

and Non-GAAP Adjusted Fully Distributed Net Income

2015 PREMIER, INC.

Fiscal 2015 and fiscal 2014 non-GAAP reconciliations

2015

2014

Reconciliation of Non-GAAP Free Cash Flow to Net Cash Provided by Operating Activities:

Net cash provided by operating activities

101,860

90,173

Purchases of property and equipment

(18,653)

(13,823)

Distributions to limited partners

(23,701)

(17,419)

Non-GAAP free cash flow

59,506

58,931

Non-GAAP Adjusted EBITDA

103,745

91,305

Supplemental Financial Information - Reporting of Non-GAAP Free Cash Flow

Reconciliation of Selected Non-GAAP Measures to GAAP Measures

(Unaudited)

(In thousands)

Three Months Ended

March 31,

2015 PREMIER, INC.

Fiscal 2015 and fiscal 2014 non-GAAP reconciliations

2015*

2014*

2015*

2014

Reconciliation of numerator for GAAP EPS to Non-GAAP EPS on Adjusted Fully Distributed Net Income

Net income (loss) attributable to shareholders after adjustment of redeemable

limited partners' capital to redemption amount

(374,853)

509,239

(781,216)

(3,204,645)

Adjustment of redeemable limited partners' capital to redemption amount

387,062

(495,714)

811,969

3,224,098

Net income attributable to shareholders

12,209

13,525

30,753

19,453

Pro forma adjustment for revenue share post-IPO

—

(41,263)

Income tax expense

2,026

9,413

12,107

24,461

Stock-based compensation

7,285

6,299

21,129

13,118

Acquisition related expenses

2,863

984

6,408

1,303

Strategic and financial restructuring expenses

733

1,281

3,614

Loss (gain) on investment

1,000

(37,850)

1,000

(37,850)

Adjustment to tax receivable agreement liability

1,073

—

Acquisition related adjustment - deferred revenue

3,563

—

9,224

—

Amortization of purchased intangible assets

2,554

802

6,598

2,158

Net income attributable to noncontrolling interest in Premier LP

59,568

87,925

170,135

246,055

Non-GAAP pro forma adjusted fully distributed income before income taxes

92,143

81,831

258,635

231,049

Income tax expense on fully distributed income before income taxes

36,857

32,732

103,454

92,420

Non-GAAP pro forma adjusted fully distributed net income

55,286

49,099

155,181

138,629

Reconciliation of denominator for GAAP EPS to Non-GAAP Adjusted Fully Distributed Net Income

Weighted Average:

Common shares used for basic and diluted earnings per share

37,316

32,375

35,066

23,394

Potentially dilutive shares

1,148

181

845

100

Class A common shares outstanding

8,981

Conversion of Class B common units

106,706

112,608

109,184

112,608

Weighted average fully distributed shares outstanding - diluted

145,170

145,164

145,095

145,083

Reconciliation of GAAP EPS to Adjusted Fully Distributed EPS

GAAP earnings (loss) per share

$ (10.05)

$ 15.73

$ (22.28)

$ (136.99)

Impact of adjustment of redeemable limited partners' capital to redemption amount

$ 10.37

$ (15.31)

$ 23.16

$ 137.82

Impact of additions:

Pro forma adjustment for revenue share post-IPO

$ -

$ (1.76)

Income tax expense

$ 0.05

$ 0.29

$ 0.35

$ 1.05

Stock-based compensation

$ 0.20

$ 0.19

$ 0.60

$ 0.56

Acquisition related expenses

$ 0.08

$ 0.03

$ 0.18

$ 0.06

Strategic and financial restructuring expenses

$ 0.00

$ 0.02

$ �� 0.04

$ 0.15

Loss (gain) on investment

$ 0.03

$ (1.17)

$ 0.03

$ (1.62)

Adjustment to tax receivable agreement liability

$ 0.03

$ -

Acquisition related adjustment - deferred revenue

$ 0.10

$ -

$ 0.26

$ -

Amortization of purchased intangible assets

$ 0.07

$ 0.02

$ 0.19

$ 0.09

Net income attributable to noncontrolling interest in Premier LP

$ 1.60

$ 2.72

$ 4.85

$ 10.52

Impact of corporation taxes

$ (0.99)

$ (1.01)

$ (2.95)

$ (3.95)

Impact of increased share count

$ (1.11)

$ (1.17)

$ (3.36)

$ (4.97)

Non-GAAP earnings per share on adjusted fully distributed net income - diluted

$ 0.38

$ 0.34

$ 1.07

$ 0.96

* Note that no pro forma adjustments were made for the three and nine months ended March 31, 2015 and the three months ended March 31, 2014;

as such, actual results are presented for each of these periods.

Three Months Ended

March 31,

Nine Months Ended

March 31,

Supplemental Financial Information - Reporting of Net Income and Earnings Per Share

(Unaudited)

(In thousands, except per share data)

Reconciliation of Selected Non-GAAP Measures to GAAP Measures

Premier (PINC) 8-KRegulation FD Disclosure