This document summarizes Jeff Campbell's presentation at the Baird 2005 Growth Stock Conference on May 11, 2005. Campbell discusses McKesson's business segments, including strong financial results and growth in pharmaceutical and medical-surgical solutions. Provider Technologies has experienced challenges but investments in innovation are paying off. For fiscal year 2006, McKesson expects revenue growth and operating cash flow over $1 billion, excluding the impact of settling a securities class action lawsuit.

1. Baird 2005
Growth Stock Conference
Jeff Campbell
Executive Vice President
Chief Financial Officer
May 11, 2005

2. Safe Harbor Clause
Some of the information in this presentation may
constitute forward-looking statements that are
subject to various uncertainties. These
uncertainties could cause actual results to differ
materially from those projected or implied. The risk
factors associated with those uncertainties are
described in the Company’s reports and exhibits
filed with the Securities and Exchange
Commission. Financial information is presented
here in summary form. Full details are provided in
the Company’s most recent 10-Q report. All of this
information is available at www.mckesson.com.
5/11/2005 1

3. Overview
Who We Are
Business Update
Summary
5/11/2005 2

4. Who We Are
5/11/2005 3

5. McKesson’s Solutions … Building
On Distribution Strength Since 1833
Solutions for
medication safety
Pharmaceutical & medical-
surgical distribution to all sites
Clinical, financial &
resource management
for hospitals & IDNs
Inpatient automation
Specialty
Retail pharmacy pharmaceuticals
automation
Disease
management
Drug cards for
seniors
Pharmaceutical
5/11/2005 4
repackaging

6. Our Business Today
McKesson
McKesson
McKesson
Provider Technologies
Medical-
Medical-Surgical
Pharmaceutical
63% of health systems
#1 in primary care
#1 in U.S., Canada, and
Mexico
51% of hospitals with
#1 in extended
200+ beds
care
Large Rx repackaging
Leader in clinical,
Total supply
Leading generics provider
revenue cycle,
solution in acute
#1 in retail pharmacy and resource
care
automation management solutions
Private label
Specialty distribution & More “Best in KLAS”
product offerings
patient services for products than any
Rapid growth in
manufacturers other vendor
physician office
#1 in medical management #1 in robotic hospital
pharmaceuticals
software and services for pharmacy dispensing
and equipment
payors
#1 in bedside scanning
#1 in disease management
for Medicaid agencies
5/11/2005 5

7. Strong, Long-term Customer
Relationships with Market Leaders
Vanderbilt University Medical Center
5/11/2005 6

8. McKesson’s Strategy
To bring together clinical knowledge, process
expertise, technology, and the resources of
a Fortune 15 company to fundamentally
change the cost and quality of healthcare.
Create long-term Introduce
relationships based Sell McKesson’s innovations that
on custom solutions comprehensive address emerging
that deliver offering healthcare
ROI & quality challenges
5/11/2005 7

9. Strong Financial Track Record
Diluted EPS, continuing operations
AGR
C
35 % $2.19
$1.90
$1.44
$0.65
($0.15)
FY00 FY01 FY02 FY03 FY04
5/11/2005 8

10. FY05 Consolidated Financial
Highlights
($ and shares in millions,
Q4 Full-year
except EPS)
FY04 FY05 FY04 FY05
Revenues $ 17,940 $ 20,612 $ 69,506 $ 80,515
14% 16%
Net Income (Loss) 214 259 647 (157)
21% -
Diluted Earnings (Loss) Per
Share $ 0.73 $ 0.85 $ 2.19 $ (0.53)
16% -
Weighted Avg Shares -
Diluted 297 305 299 294
3% -2%
5/11/2005 9

11. Securities Litigation Settlement
Agreement reached January 12 to settle
consolidated securities class action, subject to
court approval
$1.2 billion pre-tax charge in Q3-05, $810 million
after tax:
Class action settlement for $960 million plus
$240 million reserve for remaining related cases
Anticipate financing securities litigation settlement
liability mid fiscal year
Increased financial flexibility to continue to
execute our strategy
5/11/2005 10

12. FY05 Consolidated Financial
Results**
($ and shares in millions,
Full-year
except EPS)
FY04 FY05
Revenues $ 69,506 $ 80,515 16%
Net Income** 647 653 1%
Diluted EPS** $ 2.19 $ 2.19 --
Diluted Weighted Avg Shares** 299 301 1%
Operating Cash Flow $ 595 $ 1,538 158%
Gross Debt to Capital 22.3% 18.7%
Net Debt to Capital 12.9% -12.8%
** Excluding the impact of $1.2B pre-tax securities litigation charge, net of tax $810M
See Schedule 1 from 5/5/05 press release and reconciliation slide for complete reconciliation.
5/11/2005 11

13. Business Update
5/11/2005 12

14. Pharmaceutical Solutions
5/11/2005 13

15. FY05 Financial Results –
Pharmaceutical Solutions
Q4 Full-year
($ in millions)
FY04 FY05 FY04 FY05
Revenues
U.S. direct distribution & services $ 10,225 $ 12,228 $ 39,412 $ 47,007
20% 19%
U.S. sales to customer warehouses 5,573 5,983 21,622 24,100
7% 11%
Subtotal 15,798 18,211 61,034 71,107
15% 17%
Canada distribution & services 1,145 1,296 4,459 5,211
13% 17%
Total Pharmaceutical Solutions 16,943 19,507 65,493 76,318
15% 17%
Gross Profit 569 691 2,077 2,203
21% 6%
Operating Expenses 285 308 1,119 1,152
8% 3%
Operating Profit 288 391 980 1,077
36% 10%
Operating Profit Margin 1.70% 2.00% 1.50% 1.41%
30 bp (9) bp
5/11/2005 14

16. Pharmaceutical Solutions
Business Update
Negotiations with manufacturers to secure more
predictable compensation are nearing completion
More than 80% of manufacturer compensation will not
be affected by the timing/magnitude of price increases
when all agreements have been signed by mid-year
Continued focus on customer contract compliance to
improve profitability in Fiscal 2006
All major expiring customer agreements renewed
Sell margins show signs of stabilization
Strong generics position creates foundation for
continued growth
5/11/2005 15

17. Medical-Surgical Solutions
5/11/2005 16

18. FY05 Financial Results –
Medical-Surgical Solutions
Q4 Full-year
($ in millions)
FY04 FY05 FY04 FY05
Revenues $ 670 $ 738 $ 2,811 $ 2,895
10% 3%
Gross Profit 153 171 604 654
11% 8%
Operating Expenses 125 141 501 556
13% 11%
Operating Profit 29 31 106 102
6% -4%
Operating Profit Margin 4.39% 4.24% 3.79% 3.53%
(15) bp (26) bp
5/11/2005 17

19. Medical-Surgical Solutions
Business Update
Strongly positioned in higher growth/higher margin
alternate site sectors
Moore Medical strengthens position in alternate site
Adventist experience validates value proposition of
Optyx system in the acute care sector
5 additional agreements create market momentum
Continuing to invest in technologies that will
differentiate McKesson
5/11/2005 18

20. McKesson Provider
Technologies
5/11/2005 19

21. FY05 Financial Results –
Provider Technologies
Q4 Full-year
($ in millions)
FY04 FY05 FY04 FY05
Revenues
Software & software systems $ 59 $ 79 $ 218 $ 246
35% 13%
Services 227 251 869 936
10% 8%
Hardware 41 37 116 120
-10% 3%
Total Provider Technologies 327 367 1,203 1,302
12% 8%
Gross Profit 172 175 567 608
2% 7%
Operating Expenses 91 137 451 514
50% 14%
Operating Profit 84 46 128 107
-46% -17%
Operating Profit Margin --
as reported 25.63% 12.44% 10.66% 8.20%
(1,319) bp (246) bp
Operating Profit Margin**
excluding reserve reversals 6.67% 12.44% 5.51% 8.20%
577 bp 269 bp
**Excluding the impact of certain reserve reversals in Q4-FY04. See
reconciliation slide for a reconciliation to GAAP reported amounts. 20
5/11/2005

22. Provider Technologies
Business Update
Continued focus on accelerating implementations to
drive customer satisfaction and revenue recognition
Implementations at Duke and IASIS provide valuable
experience to accelerate other installations
Integrated medication safety solution changes view of
automation products
Investments in innovation paying off
Top 20: 2004 “Best in KLAS” year-end report: 12 MCK
products in top 3 in category, #1 among all companies
Two “Best in KLAS” #1 rankings
Two other Specialty Niche Category #1s
5/11/2005 21

23. Summary
5/11/2005 22

24. Fiscal 2006 Outlook
(Provided May 5, 2005)
FY06 expectation: $2.25 to $2.40 per share
Revenue growth, excluding warehouse sales, at market
growth, adjusted for our customer mix
Warehouse sales flat
Stabilization of customer sell margins
Operating cash flow expected to exceed $1 billion
Guidance assumes no share repurchases
Historical seasonality should continue
5/11/2005 23

25. What McKesson Represents
Core pharmaceutical business positioned for
sustained market growth
Strongly positioned in value-adding businesses
across spectrum of healthcare services
Track record of financial performance and strong
balance sheet
Securities settlement removes uncertainty and
increases financial flexibility, pending class action
settlement
Create Value for Suppliers, Customers and
Shareholders
5/11/2005 24

26. 5/11/2005 25

27. EPS Reconciliation
($ and shares in millions except EPS) Full-year
FY04 FY05
Net income (loss)
- as reported $ 647 $ (157) -%
Exclude:
Securities Litigation charge - (1,200) -
Estimated income tax benefit - 390 -
- (810) -
Net income, excluding
Securities Litigation charge $ 647 $ 653 1%
Diluted earnings per common
share, excluding Securities
Litigation charge * $ 2.19 $ 2.19 -
Shares on which diluted
earnings per common
share were based * 299 301 1%
* For the years ended March 31, 2005 and 2004, interest expense, net of related income taxes, of $6.2 million has been
added to net income, excluding the Securities Litigation charge, for purposes of calculating diluted earnings per share.
This calculation also includes the impact of dilutive securities (stock options, convertible junior subordinated
debentures and restricted stock).
5/11/2005 26

28. Provider Technologies –
Operating Profit Reconciliation
($ in millions) Q4 Full-year
FY04 FY05 FY04 FY05
Operating profit
- as reported $ 84 $ 46 $ 128 $ 107
(46) % (17) %
Exclude:
Customer settlement reserve reversal (47) - (47) -
- -
International contract reserve reversal (15) - (15) -
- -
(62) - (62) -
- -
Operating profit, excluding
reserve reversals $ 22 $ 46 $ 66 $ 107
109 % 62 %
Operating Profit Margin
- as reported 25.63% 12.44% 10.66% 8.20%
(1,319) bp (246) bp
Operating Profit Margin, excluding
reserve reversals 6.67% 12.44% 5.51% 8.20%
577 bp 269 bp
For the year and quarter ended March 31, 2005, reserve reversals have been added back to operating profit and the
calculation of operating profit margin to aid in the period-over-period comparison of results.
5/11/2005 27