Cardinal Health, Inc. · NYSE:CAH

Cardinal Health — 38th Annual J.P. Morgan Healthcare Conference (January 2020)

16 slides from Cardinal Health's conference presentation, Jan 13, 2020

1. Slide 1: Cardinal Health, Inc. 38th Annual JP Morgan Conference

   Cardinal Health, Inc. 38th Annual JP Morgan Conference Mike Kaufmann Chief Executive Officer JANUARY 13, 2020

2. Slide 2: Forward-looking statements and GAAP reconciliation

   Forward-looking statements and GAAP reconciliation Cautions Concerning Forward-Looking Statements This presentation contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be ident

3. Slide 3: © 2020 Cardinal Health. All Rights Reserved.

   3 © 2020 Cardinal Health. All Rights Reserved.

4. Slide 4: Essential facts about Cardinal Health

   Essential facts about Cardinal Health A global, integrated healthcare products & services company We operate in over Approximately $146 Billion of revenues in FY19 45 countries 48,000 employees worldwide 4 © 2020 Cardinal Health. All Rights Reserved.

5. Slide 5: Essential facts about Cardinal Health

   Essential facts about Cardinal Health We deliver products and solutions to improve the lives of people every day. 5 © 2020 Cardinal Health. All Rights Reserved.

6. Slide 6: FY19 financial summary

   FY19 financial summary Revenue ($M) $145,534 non-GAAP Operating Earnings1 ($M) $2,353 non-GAAP Diluted EPS2 $5.28 Operating Cash Flow ($M) $2,722 1FY19 GAAP operating earnings was $2,060M 2Attributable to Cardinal Health, Inc. FY19 GAAP diluted EPS was $4.53 Please see appendix for GAAP to Non-GAAP

7. Slide 7: Two financial reporting segments

   Two financial reporting segments Pharmaceutical Medical FY19 FY19 FY19 FY19 revenues segment profit revenues segment profit of $129.9B of $1.8B of $15.6B of $576M 7 © 2020 Cardinal Health. All Rights Reserved.

8. Slide 8: Pharmaceutical segment

   Pharmaceutical segment Key drivers of success • Continue to grow Specialty Solutions • Invest in higher margin services businesses (e.g. Connected Care) Pharmaceutical Distribution • Maximize all components of generics program Specialty Solutions • Enhance core distribution business Nuclear & Precis

9. Slide 9: Medical segment

   Medical segment Key drivers of success • Continue to grow Cardinal Health at Home • Invest in higher margin services businesses Medical Products • Drive benefits from Medical segment Medical Products Distribution commercial realignment at-Home Solutions • Optimize Medical segment supply chain/operat

10. Slide 10: Deploy capital in a disciplined and thoughtful way

    Deploy capital in a disciplined and thoughtful way Invest in the business Maintain appropriate Grow our dividend for future growth debt leverage modestly Evaluate opportunistic Consider strategic M&A share repurchases 10 © 2020 Cardinal Health. All Rights Reserved.

11. Slide 11: CAH Investment Thesis

    CAH Investment Thesis • Customers value our capabilities ̶ Essential role in the delivery of healthcare • A leader in consolidated industries ̶ Unmatched breadth and scale of offerings including both core and high growth businesses • Favorable healthcare trends and patient demographics ̶ An aging po

12. Slide 12: We are Essential to care

    We are Essential to care™ 12 © 2020 Cardinal Health. All Rights Reserved.

13. Slide 13: Appendix

    Appendix GAAP to non-GAAP reconciliation statements and supplemental financial information

14. Slide 14: GAAP / Non-GAAP Reconciliation

    Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation1 Gross Operating Earnings Provision for/ Margin Earnings Before (Benefit From ) Net Effective Diluted 2 Gross Grow th Operating Grow th Incom e Incom e Net Earnings Tax Diluted EPS2,3 Margin Rate Earnings Rate Taxes Taxes Earnings

15. Slide 15: Forward Looking non-GAAP Measures

    Cardinal Health, Inc. and Subsidiaries Forward Looking non-GAAP Measures In this document, the Company presents certain forward-looking non-GAAP metrics. The Company does not provide outlook on a GAAP basis because the items that the Company excludes from GAAP to calculate the comparable non-GAAP me

16. Slide 16: Definitions

    Cardinal Health, I nc. and S ubsidiaries Definitions I nterest and Other, net: other (income)/expense, net plus interest expense, net. Non-GAAP diluted earnings/(loss) per share attributable to Cardinal Health, I nc. : non-GAAP net earnings/(loss) attributable to Cardinal Health, Inc. divided by dil

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