Cardinal Health, Inc. · NYSE:CAH

Cardinal Health — Q1 2025 Earnings Presentation

23 slides from Cardinal Health's earnings presentation, Nov 1, 2024

  1. Slide 1: Q1 FY25 Earnings

    Q1 FY25 Earnings Cardinal Health, Inc. November 1, 2024 © 2024 Cardinal Health. All Rights Reserved. 1 © 2024 Cardinal Health. All Rights Reserved. INTERNAL USE ONLY

  2. Slide 2: Cautions Concerning Forward-Looking Statements

    • Q1 FY25 Earnings 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 identified by words such as "expect,"

  3. Slide 3: Q1 Results

    Q1 Results © 2024 Cardinal Health. All Rights Reserved. 3 © 2024 Cardinal Health. All Rights Reserved. INTERNAL USE ONLY

  4. Slide 4: Q1 FY25 financial summary

    • Q1 FY25 Earnings Q1 FY25 financial summary GAAP Basis ($M) Non-GAAP Basis ($M) Q1 FY25 Q1 FY25 Revenue $52,277 N/A % change (4)% Gross Margin $1,902 $1,902 % change 9% 9% SG&A $1,277 $1,277 % change 8% 8% Operating Earnings $568 $625 % change N.M. 12% Interest and Other1 $27 N/A % change N.M. Net

  5. Slide 5: Pharmaceutical and Specialty Solutions

    • Q1 FY25 Earnings Pharmaceutical and Specialty Solutions Q1 FY25 results Q1 FY25 ($M) Q1 FY24 ($M) YoY change Revenue $47,990 $50,588 (5)% Segment profit $530 $456 16% Segment profit margin 1.10% 0.90% 20 bps Drivers: Revenue Segment profit - Large customer contract expiration + Brand and specialty

  6. Slide 6: Global Medical Products and Distribution

    • Q1 FY25 Earnings Global Medical Products and Distribution Q1 FY25 results Q1 FY25 ($M) Q1 FY24 ($M) YoY change Revenue $3,123 $3,032 3% Segment profit $8 $12 N.M. Segment profit margin 0.26% 0.40% (14) bps Drivers: Revenue Segment profit + Volume growth from existing customers - Higher manufacturi

  7. Slide 7: Other: NPHS, at-Home Solutions and OptiFreight

    • Q1 FY25 Earnings Other: NPHS, at-Home Solutions and OptiFreight Q1 FY25 results Q1 FY25 ($M) Q1 FY24 ($M) YoY change Revenue $1,186 $1,051 13% Segment profit $104 $96 8% Segment profit margin 8.77% 9.13% (36) bps Drivers: Revenue Segment profit + Growth across the three operating segments + Perfor

  8. Slide 8: Outlook

    Outlook © 2024 Cardinal Health. All Rights Reserved. 8 © 2024 Cardinal Health. All Rights Reserved. INTERNAL USE ONLY

  9. Slide 9: FY25 financial expectations

    • Q1 FY25 Earnings FY25 financial expectations FY25 FY24 outlook actual Non-GAAP EPS $7.75 - $7.90 $7.53 Previously $7.55 - $7.70 Interest and Other $140M - $170M $42M Non-GAAP ETR 23.0% - 24.0% 21.7% Diluted weighted average shares ~243M 247M outstanding Share repurchases $750M $750M Capital expend

  10. Slide 10: FY25 segment guidance

    • Q1 FY25 Earnings FY25 segment guidance Revenue and segment profit Pharmaceutical Revenue decline of Segment profit growth of and Specialty Solutions 2% to 4% 4% to 6% Previously decline of 4% to 6% Previously growth of 1% to 3% Global Medical Products Revenue growth of Segment profit of and Distri

  11. Slide 11: Strategic priorities

    • Q1 FY25 Earnings Strategic priorities Ruthless prioritization, resilient core and relentless focus 1 Build upon the Execute GMPD Accelerate Relentless growth and resiliency of Pharmaceutical and Specialty 2 Improvement Plan initiatives 3 growth in key areas 4 focus on shareholder value creation So

  12. Slide 12: GMPD improvement plan

    • Q1 FY25 Earnings GMPD improvement plan Growth target Strategic priorities Areas of focus 1 FY23-FY26 Mitigate inflation and global Offset with mitigation initiatives 1 supply chain constraints • Exit FY24 offsetting gross impact ~$300M 2 Grow Cardinal Health Brand Optimize and grow Cardinal Health

  13. Slide 13: Our long-term targets: FY24-26

    Q1 FY25 Earnings Our long-term targets: FY24-26 (FY23 Baseline) 4% to 6% ~$300M 8% to 10% at least 12% to 14% Growth CAGR in FY26 Growth CAGR $2.5B Growth CAGR Pharma and Share non-GAAP diluted Specialty Solutions GMPD Other Segment Profit Segment Profit Segment Profit repurchases1 EPS growth No cha

  14. Slide 14: Disciplined Capital Allocation Framework

    Q1 FY25 Earnings Table stakes FY25 Progress Investing back into the business to drive $90M in capex organic growth Disciplined Maintain investment Completed annual opioid settlement payment Capital grade balance sheet Comfortably within range of targeted leverage Allocation Baseline return of capita

  15. Slide 15: Compelling investment thesis

    Q1 FY25 Earnings Compelling investment thesis Moving healthcare forward Pharmaceutical and Medical Products Other Growth Cash flow and Value creation Specialty Solutions and Distribution Areas capital deployment Relentlessly focused Resilient and growing business, Executing our plan to Favorable lon

  16. Slide 16: Appendix

    Appendix 16 © 2024 Cardinal Health. All Rights Reserved. 16 © 2024 Cardinal Health. All Rights Reserved. INTERNAL USE ONLY

  17. Slide 17: GAAP / Non-GAAP Reconciliation

    Cardinal Health, Inc. and Subsidiaries 1 GAAP / Non-GAAP Reconciliation Earnings/ Gross Operating (Loss) Provision for/ Net Diluted Margin SG&A2 Operating Earnings Before (Benefit from) Net Earnings3 Effective EPS 3 Gross Growth Growth Earnings/ Growth Income Income Earnings/ Growth Tax Diluted Grow

  18. Slide 18: GAAP / Non-GAAP Reconciliation (Fiscal Year 2024)

    Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation1 Gross Operating Earnings Net Diluted 2 3 Margin SG&A Earnings Before Provision for Earnings Effective EPS 3 Gross Growth Growth Operating Growth Income Income Net Growth Tax Diluted Growth 2 3 3 Margin Rate SG&A Rate Earnings Rat

  19. Slide 19: GAAP Cash Flow to Non-GAAP Adjusted Free Cash Flow

    Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation - GAAP Cash Flow to Non-GAAP Adjusted Free Cash Flow First Quarter First Quarter (in millions) 2025 2024 GAAP - Cash Flow Categories Net cash provided by/(used in) operating activities $ (1,647) $ 528 Net cash used in investing ac

  20. Slide 20: Segment Information

    Cardinal Health, Inc. and Subsidiaries Segment Information First Quarter Pharmaceutical and Specialty Solutions Global Medical Products and Distribution Other (in millions) 2025 2024 2025 2024 2025 2024 Revenue Amount $ 47,990 $ 50,588 $ 3,123 $ 3,032 $ 1,186 $ 1,051 Growth rate (5)% 11 % 3% (2)% 13

  21. Slide 21: 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

  22. Slide 22: Definitions

    Cardinal Health, Inc. and Subsidiaries Definitions Growth rate calculation: growth rates are determined by dividing the difference between current-period results and prior-period results by prior-period results. Interest and Other, net: other (income)/expense, net plus interest expense, net. Segment

  23. Slide 23: Definitions continued

    Cardinal Health, Inc. and Subsidiaries Definitions continued 1 LIFO charges and credits are excluded because the factors that drive last-in first-out ("LIFO") inventory charges or credits, such as pharmaceutical manufacturer price appreciation or deflation and year-end inventory levels (which can be

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