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Exhibit 99.3 
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First-Quarter Fiscal 2016 Financial Results and Update
November 9, 2015
Forward-looking statements and Non-GAAP financial measures
Forward-looking statements—Certain statements included in this presentation, including, but not limited to, those related to our financial and business outlook, strategy and growth drivers, member retention and renewal rates and revenue visibility, cross and upsell opportunities, acquisition activities and pipeline, revenue available under contract, and 2016 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 of 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 or future tenses or that include terms such as “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. You should carefully read Premier’s current and future filings with the SEC for more information on potential risks and other factors that could affect Premier’s financial results. 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” as 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 fiscal first quarter ended September 30, 2015 provides further explanation and disclosure regarding our use of non-GAAP financial measures and should be read in conjunction with this presentation.
© 2015 PREMIER, INC.
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Overview and Business Update
Susan DeVore, President & CEO
First-quarter highlights*
Strong overall financial performance
Total net revenue up 18% YoY, driven by double-digit growth in both business segments
Adjusted fully distributed earnings per share of $0.38, up 17% YoY
Adjusted EBITDA up 16% YoY
Acquired CECity.com, Inc. and
Healthcare Insights, LLC
Affirming full-year guidance that was increased October 6th
*See non-GAAP Adjusted EBITDA, Segment Adjusted EBITDA, and Adjusted Fully Distributed Earnings Per Share reconciliations to GAAP equivalents in Appendix.
© 2015 PREMIER, INC.
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Medicare payment reform – population health is here to stay
VBP & HACs & Shared Bundled Full risk
CURRENT FUTURE regulatory cuts readmissions savings payments sharing
Healthcare is accelerating towards alternative payment models
HHS announces plan to accelerate payment shift
Shifting fee-for-service, Medicare payments to alternative payment models.
Congress passes Medicare Access & CHIP
Reauthorization Act of 2015 (MACRA)
Bill permanently reforms the Medicare physician payment system (Sustainable Growth Rate formula).
CMS announces plan to introduce mandatory payment model for joint replacements
Hospitals will be held accountable for the quality and costs of care from time of surgery through 90 days after discharge.
Premier is well positioned to lead health systems through this transformation
© 2015 PREMIER, INC.
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Building physician enterprise capabilities across the care continuum
Leader in performance improvement, pay-for-value reporting and professional education for healthcare professionals in ambulatory settings
End-to-end solutions spanning care continuum
Support providers as they move toward advanced payment models
1.2 million healthcare professionals 5,000 practices
100 professional societies
© 2015 PREMIER, INC.
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Positioned to lead in rapidly evolving healthcare environment
Member and Industry Needs
Total cost reduction
Quality improvement across the continuum
Evolving delivery and payment models
Actionable data and information
Premier Strategic Differentiation
Scale
Co-innovation
Trusted to transform from the inside
Leadership in population health
Shared services and infrastructure
Recent Medicare payment reform is a transformative trend that is accelerating healthcare to alternate payment models and away from fee-for-service.
© 2015 PREMIER, INC.
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Operations Update
Michael Alkire, Chief Operating Officer
Targeted and disciplined acquisition strategy in areas of provider needs
Strategic Need Company
Clinical & physician preference cost reduction Closed July 2013
Data acquisition from multiple technologies Closed October 2013
Health system capital expenditure cost reduction Closed April 2014
Supply chain technology enablement Closed August 2014
Quality & safety improvement Closed September 2014
Direct sourcing Closed February 2015*
Integrated financial management, cost analytics Closed July 2015
Ambulatory performance improvement,
professional education, population health Closed August 2015
Physician practice operational and
financial performance improvement Closed October 2015
© 2015 PREMIER, INC.
*Purchased initial 60% ownership in 2011. Remaining 40% minority interest purchased in February 2015.
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InflowHealth acquisition further extends Premier’s reach into the ambulatory market
SaaS-based software developer specializing in improving the operational and financial performance of physician practices
Furthers extends Premier’s reach into the ambulatory market providing physicians with new capabilities
» Unique insights into financial, operational and strategic performance, allowing physicians to identify opportunities for improvement and guide practice budgeting and strategic investments
Purchase price of $6.0 million* Closed on October 1, 2015
*The acquisition provides selling owners an earn-out opportunity of up to $26.9 million based on InflowHealth’s future qualifying annual revenues through 2019
© 2015 PREMIER, INC.
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CECity acquisition expands performance improvement capabilities across the healthcare continuum
Leader in performance management and improvement, pay-for-value reporting and professional education for healthcare professionals in ambulatory settings
Provides the ability to deliver unique end-to-end solutions that span the continuum of care
Supporting providers as they move toward value-based payment models
Purchase price of $400 million
Closed on August 20, 2015
© 2015 PREMIER, INC.
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Healthcare Insights acquisition enhances PremierConnect Supply Chain
Integrated financial management software developer providing budgeting, forecasting, labor productivity and cost analytics capabilities
Enabling a more comprehensive analytics solution to Premier’s existing cost and quality applications
» Preparing for the growing movement to value-based payments to include bundling, shared savings and risk-based contracting
Purchase price of $65 million
Closed on July 31, 2015
© 2015 PREMIER, INC.
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Attractive acquisition pipeline designed to drive ROI
Supply Chain Services
Physician
preference Alternate site
item (PPI) expansion
management
Supply Chain Services
Integrated Supply chain
analytics,
pharmacy workflow
Performance Services
Population Shared
services /
health standardized
management care
Patient
engagement Performance Services Ambulatory
and social clinical
interaction integration
Data
acquisition
and
management
Diverse and growing end markets to drive Premier’s growth
© 2015 PREMIER, INC.
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PremierConnect® Supply Chain
PREMIERCONNECT
SUPPLY CHAIN
Sourcing &
Catalog ERP / Materials
Supply Contract
Management Management Analytics Management
Supply Chain Workflow
Plan Source Contract Buy Receive Pay Manage
© 2015 PREMIER, INC.
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Recognized leader in population health management
Premier Population Health Management Advisory
Services ranked #1 by KLAS
Pioneered data-driven performance improvement collaboratives and technologies focused on accountable care organizations and alternate payment models
The PACT Population Health Collaborative is the model for integrated care delivery, bringing together approx. 400 hospitals in 31 states
The Bundled Payment Collaborative works to reduce the cost of an episode of care, improve patient outcomes and redesign care delivery with approximately 120 hospitals in 28 states
© 2015 PREMIER, INC.
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Providing a solution to rising drug costs
Create healthier supply markets
Quantify the value of therapies for drug manufacturers
Integrated pharmacy strategy
© 2015 PREMIER, INC.
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Financial Review
Craig McKasson, Chief Financial Officer
FY’16 first-quarter consolidated and segment highlights*
Consolidated
Net revenue (in millions)
18%
$270.8
$229.3
1Q’15 1Q’16
Supply Chain Services
Net revenue (in millions)
15%
$196.5
$170.3
1Q’15 1Q’16
Performance Services
Net revenue (in millions)
26%
$74.3
$59.0
1Q’15 1Q’16
Adjusted EBITDA(in millions)
16%
$105.0
$90.5
1Q’15 1Q’16
Adjusted EBITDA (in millions) Adjusted EBITDA (in millions)
13%
36%
$102.9 $24.9
$91.3
$18.4
1Q’15 1Q’16 1Q’15 1Q’16
*See non-GAAP Adjusted EBITDA and non-GAAP Segment Adjusted EBITDA reconciliations to GAAP equivalents in Appendix.
© 2015 PREMIER, INC.
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FY’16 first-quarter Supply Chain Services revenue
Supply Chain Services
Net revenue (in millions)
$196.5
$0.8
$170.3 15%
$0.2 $77.8
$63.6
$106.5 $117.9
1Q’15 1Q’16
Net Admin Fees Products Other Services and Support
Supply Chain Services revenue increased 15%
GPO net admin fees revenue increased 11%
Expanding contract penetration in both acute and alternate site
Continuing impact of the recruitment and conversion of new members
Products revenue increased 22%
Ongoing member support for direct sourcing and specialty pharmacy businesses
© 2015 PREMIER, INC.
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FY’16 first-quarter Performance Services revenue
Performance Services
Net revenue (in millions)
26%
$74.3
$59.0
1Q’15 1Q’16
Performance Services revenue increased 26%
Continued growth of
PremierConnect SaaS-based subscriptions and renewals
Continued growth of Advisory Services led by engagements tied to:
Population health
Cost management
© 2015 PREMIER, INC.
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FY’16 first-quarter adjusted EBITDA*
Consolidated
Adjusted EBITDA* (in millions)
$105.0
$90.5 16% $24.9
$18.4
$102.9
$91.3
$(19.1) $(22.9)
1Q’15 1Q’16
Corporate Supply Chain Services Performance Services
Consolidated adjusted EBITDA increased 16%
Supply Chain Services adjusted
EBITDA increased 13%
Strong net admin fee revenue growth
Performance Services adjusted EBITDA increased 36%
New PremierConnect SaaS-based subscription sales
$1.5 million non-GAAP deferred revenue adjustment related to Theradoc acquisition
* See non-GAAP adjusted fully distributed net income and non-GAAP earnings per share on fully distributed net income reconciliations to GAAP equivalents in Appendix
© 2015 PREMIER, INC.
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FY’16 first-quarter non-GAAP adjusted
fully distributed net income*
(in millions, except per share data)
17%
$56.0
$47.8
1Q’15 1Q’16
Non-GAAP earnings per share on adjusted fully
distributed net income – diluted
$0.33 $0.38
Calculates income taxes at 40% on pre-tax income, assuming taxable C corporation structure
Calculates adjusted fully distributed earnings per share, assuming total Class A and B common shares held by public
* See non-GAAP adjusted fully distributed net income and non-GAAP earnings per share on fully distributed net income reconciliations to GAAP equivalents in Appendix
© 2015 PREMIER, INC.
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Cash flow and capital flexibility at September 30, 2015
First-quarter fiscal 2016 cash flow from operations of $22.7 million
Cash, cash equivalents & marketable securities of $236.2 million
Current outstanding borrowings of $150 million on $750 million five-year unsecured revolving credit facility
In the first-quarter of fiscal 2016, Premier used approximately $315 million in cash and $150 million from its credit facility to fund the acquisitions of Healthcare Insights and CECity
CONSIDERABLE CASH AND DEBT CAPACITY AVAILABLE
AMPLE CAPITAL FLEXIBILITY FOR FUTURE ACQUISITIONS AND BUSINESS GROWTH
© 2015 PREMIER, INC.
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Continuing our momentum into fiscal 2016
Expect year-over-year double-digit revenue and adjusted EBITDA increases
Provider-centric model focused on serving our members
Developing solutions in close collaboration with members
Positioned to deliver consistent long-term value to stockholders
Provider-centric and co-innovative alignment drives consistent and increasing demand for our solutions
© 2015 PREMIER, INC.
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Fiscal 2016 annual guidance (1)
Financial guidance for year ending June 30, 2016:
Fiscal 2016 Financial Guidance (1)
Premier, Inc. affirms full-year fiscal 2016 financial guidance, as follows:
(in millions, except per-share data) FY 2016% YoY Increase
Net Revenue:
Supply Chain Services segment $792—$813 7%—10%
Performance Services segment $352—$362 31%—35%
Total Net Revenue $1,144—$1,175 14%—17%
Non-GAAP adjusted EBITDA $425—$444 8%—13%
Non-GAAP adjusted fully distributed EPS $1.54—$1.62 8%—13%
(1) Premier 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.
Guidance Assumptions:
Supply Chain Services growth driven by: Performance Services growth driven by:
Mid-single-digit net administrative fee revenue » Continued demand for integrated offerings of SaaS-based growth subscription and licensed products, advisory services and
16-19% product revenue growth collaboratives.
Continuation of high SaaS institutional renewal rates
Continued high GPO retention rates
Contribution from Partnership for Patients government contract
$30-35 million revenue and $7-9 million adjusted EBITDA contributions from CECity and Healthcare Insights acquisitions
© 2015 PREMIER, INC.
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Exchange update
On November 2, 2015, approximately 5.8 million
Class B units were exchanged for Class A common shares on 1-for-1 basis; equal number of Class B common shares retired
Premier is evaluating an underwritten company directed offering for a portion of the exchanged shares
© 2015 PREMIER, INC.
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Questions
Appendix
Fiscal 2016 and fiscal 2015 non-GAAP reconciliations
Supplemental Financial Information—Reporting of Adjusted EBITDA
and Non-GAAP Adjusted Fully Distributed Net Income
Reconciliation of Selected Non-GAAP Measures to GAAP Measures
(Unaudited)
(In thousands)
Three Months Ended
September 30,
2015 2014
Reconciliation of Net Income to Adjusted EBITDA and Reconciliation of Segment Adjusted EBITDA to
Income Before Income Taxes:
Net income $ 52,253 $ 64,887
Interest and investment income, net(241)(191)
Income tax expense 19,040 5,811
Depreciation and amortization 11,865 10,308
Amortization of purchased intangible assets 6,047 903
EBITDA 88,964 81,718
Stock-based compensation 13,700 6,439
Acquisition related expenses 3,472 1,278
Strategic and financial restructuring expenses 27 96
ERP implementation expenses 560 —
Adjustment to tax receivable agreement liability(4,818)(1,073)
Acquisition related adjustment—deferred revenue 3,092 2,065
Other income, net —(5)
Adjusted EBITDA $ 104,997 $ 90,518
Segment Adjusted EBITDA:
Supply Chain Services $ 102,949 $ 91,268
Performance Services 24,925 18,362
Corporate(22,877)(19,112)
Adjusted EBITDA $ 104,997 $ 90,518
Depreciation and amortization(11,865)(10,308)
Amortization of purchased intangible assets(6,047)(903)
Stock-based compensation(13,700)(6,439)
Acquisition related expenses(3,472)(1,278)
Strategic and financial restructuring expenses(27)(96)
ERP implementation expenses(560) —
Adjustment to tax receivable agreement liability 4,818 1,073
Acquisition related adjustment—deferred revenue(3,092)(2,065)
Equity in net income of unconsolidated affiliates(4,590)(4,866)
Deferred compensation plan expense 1,809 509
Operating income $ 68,271 $ 66,145
Equity in net income of unconsolidated affiliates 4,590 4,866
Interest and investment income, net 241 191
Other expense, net(1,809)(504)
Income before income taxes $ 71,293 $ 70,698
Reconciliation of Net Income (Loss) Attributable to Stockholders to Non-GAAP Adjusted Fully
Distributed Net Income:
Net income (loss) attributable to stockholders $ 471,154 $(373,384)
Adjustment of redeemable partners’ capital to redemption amount(466,801) 382,657
Income tax expense 19,040 5,811
Stock-based compensation 13,700 6,439
Acquisition related expenses 3,472 1,278
Strategic and financial restructuring expenses 27 96
ERP implementation expenses 560 —
Adjustment to tax receivable agreement liability(4,818)(1,073)
Acquisition related adjustment—deferred revenue 3,092 2,065
Amortization of purchased intangible assets 6,047 903
Net income attributable to noncontrolling interest in Premier LP 47,900 54,816
Non-GAAP fully distributed income before income taxes 93,373 79,608
Income tax expense on fully distributed income before income taxes 37,349 31,843
Non-GAAP Adjusted Fully Distributed Net Income $ 56,024 $ 47,765
© 2015 PREMIER, INC.
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Fiscal 2016 and fiscal 2015 non-GAAP reconciliations
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
September 30,
2015 2014
Reconciliation of Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow:
Net cash provided by operating activities $ 22,719 $ 45,873
Purchases of property and equipment(17,141) $(14,360)
Distributions to limited partners(22,432) $(22,408)
Non-GAAP Free Cash Flow $(16,854) $ 9,105
© 2015 PREMIER, INC.
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Fiscal 2016 and fiscal 2015 non-GAAP reconciliations
Supplemental Financial Information—Reporting of Net Income and Earnings Per Share
Reconciliation of Selected Non-GAAP Measures to GAAP Measures
(Unaudited)
(In thousands, except per share data)
Three Months Ended
September 30,
2015 2014
Reconciliation of numerator for GAAP EPS to Non-GAAP EPS on Adjusted Fully Distributed Net Income
Net income (loss) attributable to stockholders $ 471,154 $(373,384)
Adjustment of redeemable limited partners’ capital to redemption amount(466,801) 382,657
Income tax expense 19,040 5,811
Stock-based compensation 13,700 6,439
Acquisition related expenses 3,472 1,278
Strategic and financial restructuring expenses 27 96
ERP implementation expenses 560 —
Adjustment to tax receivable agreement liability(4,818)(1,073)
Acquisition related adjustment—deferred revenue 3,092 2,065
Amortization of purchased intangible assets 6,047 903
Net income attributable to noncontrolling interest in Premier LP 47,900 54,816
Non-GAAP fully distributed income before income taxes 93,373 79,608
Income tax expense on fully distributed income before income taxes 37,349 31,843
Non-GAAP adjusted fully distributed net income $ 56,024 $ 47,765
Reconciliation of denominator for GAAP EPS to Non-GAAP Adjusted Fully Distributed Net Income
Weighted Average:
Common shares used for basic and diluted earnings (loss) per share 37,735 32,376
Potentially dilutive shares 1,747 252
Conversion of Class B common units 106,078 112,083
Weighted average fully distributed shares outstanding—diluted 145,560 144,711
Reconciliation of GAAP EPS to Non-GAAP Adjusted Fully Distributed EPS
GAAP earnings (loss) per share $ 12.49 $(11.53)
Impact of adjustment of redeemable limited partners’ capital to redemption amount $(12.37) $ 11.82
Impact of additions:
Income tax expense $ 0.50 $ 0.18
Stock-based compensation $ 0.36 $ 0.20
Acquisition related expenses $ 0.09 $ 0.04
Strategic and financial restructuring expenses $ 0.00 $ 0.00
ERP implementation expenses $ 0.02 $ -
Adjustment to tax receivable agreement liability $(0.13) $(0.03)
Acquisition related adjustment—deferred revenue $ 0.08 $ 0.06
Amortization of purchased intangible assets $ 0.16 $ 0.03
Net income attributable to noncontrolling interest in Premier LP $ 1.27 $ 1.69
Impact of corporation taxes $(0.99) $(0.98)
Impact of increased share count $(1.10) $(1.15)
Non-GAAP earnings per share on adjusted fully distributed net income—diluted $ 0.38 $ 0.33
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