1. Investor/Analyst Day
June 7, 2002

2. Larry Kurtz
Vice President, Investor Relations

3. Disclaimer
Safe Harbor Clause: Some of the information in this
presentation may constitute forward-looking
statements which are subject to various
uncertainties which could cause actual results to
differ materially from those projected or implied.
These uncertainties are described in the Company’s
reports and exhibits filed with the Securities and
Exchange Commission. Please refer to the
statement contained in the disclaimer on the
Company’s home page, www.mckesson.com, for
additional information and details.
3

4. Agenda
n Company and Strategy Overview
n Financial Review
n McKesson Supply Management Overview
n Medical-Surgical Distribution
n Pharmaceutical Distribution
n Automation
n Information Solutions
n Summary and Q&A
4

5. John H. Hammergren
President and CEO

6. Healthcare Market Drivers
n Aging population drives consumption of drugs, supplies
n Influx of new drugs drives specialty services
n Cost and consumer pressures drive need for quality
n Focus on quality drives adoption of new clinical software
n Clinician shortage drives automation, information
technology and outsourcing
n Med error crisis drives automation/information solutions
n HIPAA drives systems standardization and connectivity
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7. McKesson Capabilities
Pharmaceutical and medical-
Clinical, financial and resource
surgical distribution to all sites
management systems for
hospital and IDNs
Automated drug dispensing
for retail and hospital
pharmacies Physician portal
Pharmacy outsourcing
Solution for Medication
Safety
Specialty pharmaceutical
services
Services for payors, patients HIT outsourcing
and manufacturers
Leader In Solutions To Improve Healthcare Quality
7

8. 8

9. Business Scorecard
Financial Success
Strategy / Value
Proposition
Metric-Driven
Customer Success Workforce Success
Execution
Business Process
Success
9

10. McKesson Financial Performance
Five Quarters of Earnings Momentum
FY01* FY02*
Q4
Q4 Q1 Q2 Q3
Revenue Y- O- Y 17% 16% 19% 20% 16%
Operating Profit Y-O- Y 33% 34% 38% 39% 42%
EPS Y- O- Y 41% 41% 45% 58% 55%
*All results exclude warehouse sales and special items and includ e impact of FAS 142
include
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11. Supply Management Goals
FY02 FY03 Target
Low to mid-teens
growth, in line
20% with market,
U.S. Pharma Y-O-Y
adjusted for
customer mix
Same range
1%
Med-Surg Y-O-Y as FY02
Same range
9%
Canada Y-O-Y as FY02
Operating +16bp +10bp
Margin Improvement
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12. Information Solutions Goals
FY02 Target FY03 Target
Revenues Y- O- Y +10% +9-10%
Bookings Y-O- Y +40%
Operating
Margin Ratio 5.5% +200-300bp
Y- O- Y
12

13. Strategic Goals
Strong market position throughout North America
n
Pharmaceutical Distribution Focus on customer value creation and continued margin expansion
n
3-year I.T. plan well underway
n
Medical-
Medical-Supply Well positioned in growth segments
n
Distribution Focus on operational restructuring to drive quality and margin
n
.improvement
Broadest footprint and fully-integrated product offering
n
Automation Focus on commercialization of innovative new products
n
Enhance cross selling channels with other McKesson business units
n
Capitalize on largest footprint to drive clinical leadership and revenue
n
Information Solutions growth
n Continued investment in new product development
n Improve operating margins through productivity gains
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14. Bill Graber
CFO
June 7, 2002

15. Revenues ($ in billions)
Revenue Warehouse Sales
%
CAGR 17 $50.0
$42.0 $13.2
$36.7 $10.7
$8.7
$36.8
$31.3
$28.0
2000 2001 2002
15

16. EBIT* ($ in millions)
%
CAGR 21
$809
$586
$555
2000 2001 2002
* Excluding Special Charges
16

17. EBIT Margin*
2.50%
% of Revenue ex. Whse. Sales
2.20%
1.98%
2.00%
1.87%
1.50%
2000 2001 2002
* Excluding Special Charges
17

18. EPS* (Pro Forma)
%
CAGR 26
$1.49
$0.99
$0.94
2000 2001 2002
* Excluding Special Charges
18

19. Balance Sheets
($ in billions)
2000 2001 2002
Receivables $3.0 $3.4 $4.0
Inventory 4.1 5.1 6.0
Other Assets 2.6 2.5 2.7
Total $9.8 $11.1 $12.8
Payables (3.9) (5.4) (6.3)
Other Liabilities (1.5) (1.2) (1.4)
Net Capital Employed $4.4 $4.5 $5.0
Net Debt 0.7 0.8 0.9
Equity & Pref. Securities 3.8 3.7 4.1
Net Capital Employed $4.4 $4.5 $5.0
Net Debt/Net Capital 14.8% 17.5% 17.3%
Long-Term Debt $1.3 $1.2 $1.4
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20. Receivables
P&L Impact of Additional
Allowances
Allowances for Doubtful
$257 Accounts Balances
Customer
$161 Settlements
Normalized
Deductions to Allowances
Allowances
$420
$320
($171)
$96 $71
($112)
2001 2002 2001 2002 2001 2002
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21. ROCC*
21.8%
19.1% 18.8%
2000 2001 2002
* Excluding Special Charges
21

22. Operating Cash Flow ($ in millions)
$332 $329
2000
2001 2002
($315)
22

23. Liquidity
Net Debt/Net Capital Employed
17.5% 17.3%
14.8%
2000 2001 2002
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24. Credit Facilities ($ in millions)
FY00 FY01 FY02
Ratings BBB BBB BBB
Credit Facilities
- 364 Day $875 $825 $1,075
- 5 Year 400 400 400
- A/R Sales $750 $850 $850
Total Credit Capacity $2,025 $2,075 $2,325
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25. Debt Maturity Schedule
($ Millions)
500
400
300
200
100
0
07
02
04
05
08
10
11
03
06
09
12
27
20
20
20
20
20
20
20
20
20
20
20
20
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26. McKesson Relative Valuation
Industry Trading Below Historical
P/E Ratio
Valuation Trends
20021 1994-20012
McKesson 20.7 14.2-30.2
AmerisourceBergen 22.9 14.3-22.4
Cardinal Health 22.0 20.6-30.7
Cerner 37.8 n/a
S&P 500 31.2 15.5-29.2
1. Based on Calendar 2002 EPS consensus First Call estimate
2. Based on Calendar 1994-2001 forward EPS
1994-
26

27. Summary
n Excellent Financial Performance
n Solid Balance Sheet
n Well Positioned for Future Improvement
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