Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Q4 FY2007 Earnings Presentation
19 slides from Cardinal Health's earnings presentation, Aug 9, 2007
Slide 1: Fourth Quarter Earnings
Exhibit 99.3 August 9, 2007 Kerry Clark Chief Executive Officer Jeff Henderson Chief Financial Officer Fourth Quarter Earnings
Slide 2: Forward-Looking Statements and GAAP Reconciliation
Forward-Looking Statements and GAAP Reconciliation This presentation contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These matters are subject to risks and uncertainties that could cause actual
Slide 3: Today's Agenda
Today’s Agenda Opening remarks Kerry Clark Chief Executive Officer Financial overview Jeff Henderson Chief Financial Officer Q&A
Slide 4: Fiscal 2007 Recap
Fiscal 2007 Recap • FY07 has been a very good year, marked by a return to strong growth • Clinical and Medical Products sector emerged as a significant, value creating growth engine for entire company • Healthcare Supply Chain Services sector delivered strong FY07 results – Good progress in Supply C
Slide 5: Financial Overview
Financial Overview • FY 2007 Q4 Results – Consolidated • FY 2007 Q4 Results – Segments • FY 2007 Results - Consolidated • FY 2007 Segment Scorecard • Acquisition Scorecard • FY 2008 Financial Targets and Goals
Slide 6: Q4 Fiscal 2007 Financial Review
Q4 Fiscal 2007 Financial Review Revenue Operating earnings Earnings from continuing ops. Diluted EPS from continuing ops. Operating cash flow Return on equity % change over prior year quarter $22,263 $421 $238 $0.61 ($292) 47.3% ($M) 5% (14%) (22%) (15%) % Change GAAP Basis $538 $345 $0.89 17.3% ($M
Slide 7: Q407 Operating Earnings and EPS
Q407 Operating Earnings and EPS Operating Earnings/(Loss) ($M) Diluted EPS from Continuing Operations Operating Earnings/(Loss) ($M) Diluted EPS from Continuing Operations GAAP Consolidated $421 $0.61 $487 $0.72 Special Items $118 $0.28 $33 $0.06 Impairment Charges & Other ($1) $0.00 $1 $0.00 Non-GA
Slide 8: Q407 Business Analysis: Healthcare Supply Chain Services - Pharmaceutical
Q407 Business Analysis Healthcare Supply Chain Services - Pharmaceutical Highlights: • Q4 revenue up 4% with core pharmaceutical distribution DSD revenue up 7% and bulk revenue up 4% • Key factors impacting revenue growth included: branded to generic conversions, the lapping of large new bulk busine
Slide 9: Q407 Business Analysis: Healthcare Supply Chain Services - Medical
Q407 Business Analysis Healthcare Supply Chain Services - Medical Highlights: • Q4 revenue up 5%, supported by strong growth from lab and ambulatory customers and Canadian operations • Segment profit impacted by operational investments (e.g., customer service) and a $7M increase over Q4 ’06 in custo
Slide 10: Q407 Business Analysis: Medical Products Manufacturing
Q407 Business Analysis Medical Products Manufacturing Highlights: • Q4 revenue up 14%; driven by strong growth across most businesses, new product launches and acquisitions • Profit up 27% on strong top line growth in core business and expanding gross margins • Viasys acquisition had a positive 3pp
Slide 11: Q407 Business Analysis: Clinical Technologies and Services
Q407 Business Analysis Clinical Technologies and Services Highlights: • Revenue up on strong and growing demand for Alaris and Pyxis products, new product launches and improved installation cycles • Q4 profit growth driven by higher volumes across all business lines, improved mix, impact of operatio
Slide 12: Full Year FY07 Financial Review
Full Year FY07 Financial Review % change over prior year quarter $86,852 $1,374 $840 $2.07 $1,003 23.5% ($M) 9% (26%) (28%) (24%) % Change ¹ GAAP Basis $2,163 $1,384 $3.42 16.9% ($M) 12% 13% 20% % Change ¹ Non-GAAP Basis Revenue Operating earnings Earnings from continuing ops. Diluted EPS from conti
Slide 13: Full Year FY07 Operating Earnings and EPS
Full Year FY07 Operating Earnings and EPS Operating Earnings/(Loss) ($M) Diluted EPS from Continuing Operations Operating Earnings/(Loss) ($M) Diluted EPS from Continuing Operations GAAP Consolidated $1,374 $2.07 $1,845 $2.71 Special Items $772 $1.31 $81 $0.14 Impairment Charges & Other $17 $0.04 $6
Slide 14: FY07 Scorecard
FY07 Scorecard HSCS – Pharma HSCS – Medical Medical Products Clinical Technologies 9% 4% 12% 11% Revenue Growth 14% 1% 20% 20% Profit Growth Cardinal had a strong fiscal 2007 with three of four segments delivering outstanding performance Well Above Range Below Range Well Above Range Top of Range Per
Slide 15: Acquisition Scorecard
Acquisition Scorecard Acquisition Date Results VIASYS Healthcare (MPM) June ’07 (+) Specialty Scripts (HSCS-P) January ’07 (+) Care Fusion (CTS) October ’06 (+) MedMined (CTS) July ’06 (+) Dohmen (HSCS-P) June ’06 (+) Denver Biomedical (MPM) May ’06 (+) Parmed (HSCS-P) March ’06 (+) Source Medical (
Slide 16: FY 2008 Financial Targets & Goals
FY 2008 Financial Targets & Goals As of Aug 9, 2007 Long-Term Financial Goals ‘Over FY'08 -FY10 3 Year Period: ‘One Year Targets Fiscal Year 2008 Revenue: +8-10% Inrange ]Op Earnings’ + 10-13% JAtor above top end of range EPS* + 12-16% [Above range ($3.95 - $4.15 per share") ‘Segment | FYO8 profit g
Slide 17: Other FY08 Assumptions
Other FY08 Assumptions • $4.1B in planned share buyback complete as of July; $2B in additional core share repurchase approved over the next two years • Assuming approximately 375M average shares outstanding for FY08 • Interest / other forecast in range of $220M to $235M – SEC and related litigation
Slide 18: Cardinal Health
‘CardinalHealth
Slide 19: GAAP / Non-GAAP Reconciliation
CARDINAL HEALTH, INC. AND SUBSIDIARIES GAAP / NON-GAAP RECONCILIATION (in millions) HEALTHCARE SUPPLY CHAIN SERVICES First Quarter Fiscal 2007 Second Quarter Fiscal 2007 Third Quarter Fiscal 2007 Fourth Quarter Fiscal 2007 Fiscal 2007 Pharmaceutical July August September Total October November Decem