Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Q3 FY2010 Earnings Presentation
19 slides from Cardinal Health's earnings presentation, Apr 29, 2010
Slide 1: Q3 FY2010 Investor/Analyst Call
Q3 FY2010 Investor/Analyst Call © Copyright 2010, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved. © Copyright 2010, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved. © Copyright 2010, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved. A
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: Q3 FY2010 Results
Q3 FY2010 Results © Copyright 2010, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved. © Copyright 2010, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 4: Q3 FY2010 Business Analysis
Q3 FY2010 Business Analysis Q3 FY10 Q3 FY09 Q3 FY10 Q3 FY09 Revenue $24,343 $24,089 % change 1% 10% Operating earnings $366 $381 $385 $415 % change (4)% - (7)% 2% Ratio to revenue 1.50% 1.58% 1.58% 1.72% Earnings from continuing ops $225 $215 $222 $237 % change 5% (9)% (6)% (7)% Ratio to revenue 0.9
Slide 5: Q3FY10 Pharmaceutical Segment Business Analysis
Q3FY10 Pharmaceutical Segment Business Analysis Highlights: • Revenue performance was driven by increased sales to existing pharmaceutical distribution customers and solid growth in generics – Revenue from non-bulk customers increased 0.5% to $11.3 billion driven by growth in retail chain, hospital
Slide 6: Q3FY10 Medical Segment Business Analysis
Q3FY10 Medical Segment Business Analysis Revenue Segment Profit Segment Profit Margin $2,123 $108 5.08% Q3 FY10 ($M) $1,976 $128 6.49% Q3 FY09 ($M) 7% (16)% % Change Highlights: • Revenue increase was driven by growth in existing domestic customer base, and strong growth in Canada • Segment profit d
Slide 7: Q3FY10 GAAP to Non-GAAP Reconciliation
Q3FY10 GAAP to Non-GAAP Reconciliation Note: Costs associated with the CareFusion spinoff are as follows: Operating Earnings ($M) Earnings from Continuing Operations ($M) Diluted EPS from Continuing Operations Operating Earnings ($M) Earnings from Continuing Operations ($M) Diluted EPS from Continui
Slide 8: Significant Q3 FY10 Items
Significant Q3 FY10 Items • CareFusion Investment – Sold 5.4 million shares for total proceeds of $136 million and realized gain of $23 million – No income tax impact – Realized gain excluded from non-GAAP earnings – Remaining 30.5 million shares at 3/31/10 have market value of $805.2 million – Pre-
Slide 9: FY2010 Outlook
FY2010 Outlook © Copyright 2010, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved. © Copyright 2010, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 10: CAH FY10 Overall Expectations April 29, 2010
CAH FY10 Overall Expectations April 29, 2010 FY10 outlook FY09 Non-GAAP effective tax rate 37%+ 37% Diluted weighted average shares outstanding ~361M 361.5M Interest and other, net ~$110M $128M Capital expenditures $200M - $250M $421M May change due to unique items affecting quarters Includes $150M
Slide 11: CAH FY10 Financial Expectations April 29, 2010
CAH FY10 Financial Expectations April 29, 2010 FY10 outlook FY09 Revenue: Low single digit growth $96B Non-GAAP EPS : $2.15 - $2.20 $2.26 Non-GAAP diluted earnings per share from continuing operations
Slide 12: FY2011 Preliminary Outlook Non-GAAP EPS: $2.35 - $2.45
FY2011 Preliminary Outlook Non-GAAP EPS : $2.35 - $2.45 1 © Copyright 2010, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved. © Copyright 2010, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved. Non-GAAP diluted earnings per share from continuing operations
Slide 13: Pharmaceutical Segment FY11 Preliminary Assumptions
Pharmaceutical Segment FY11 Preliminary Assumptions April 29, 2010 • Renewal of major contracts • Brand inflation comparable to FY10 • Generic launches and deflation comparable to FY10 • Continued improvement in generic programs • Nuclear pharmacy assumes raw material from Canadian reactor to be at
Slide 14: Medical Segment FY11 Preliminary Assumptions
Medical Segment FY11 Preliminary Assumptions April 29, 2010 • Benefit from investments in Ambulatory Care • Growth in higher margin preferred products category • Improvement in performance from kitting business, following a year of stabilization and investment • Medical Transformation investment exp
Slide 15: Q & A
Q & A © Copyright 2010, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved. © Copyright 2010, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 16: Cardinal Health: Essential to care
—— CardinalHealth Essential to care™ CardinalHealth
Slide 17: Q3 FY10 Trailing Five Quarters
Q3 FY10 Trailing Five Quarters © Copyright 2010, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved. © Copyright 2010, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 18: Q3 FY10 Segment Analysis
Q3 FY10 Segment Analysis Q3FY09 Q4FY09 Q1FY10 Q2FY10 Q3FY10 Revenue ($M) 22,118 22,263 22,562 22,695 22,226 Segment Profit ($M) Q3FY09 Q4FY09 Q1FY10 Q2FY10 Q3FY10 Revenue ($M) 1,976 2,090 2,237 2,232 2,123 Segment Profit ($M) Pharmaceutical Segment Medical Segment
Slide 19: GAAP to Non-GAAP Reconciliation Statements
GAAP to Non-GAAP Reconciliation Statements © Copyright 2010, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved. © Copyright 2010, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved. CARDINAL HEALTH, INC. AND SUBSIDIARIES GAAP / NON-GAAP RECONCILIATION Third Qua