Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — 40th Annual J.P. Morgan Healthcare Conference (January 2022)
24 slides from Cardinal Health's conference presentation, Jan 10, 2022
Slide 1: Cardinal Health, Inc. 40th Annual JP Morgan Conference
Cardinal Health, Inc. 40th Annual JP Morgan Conference Mike Kaufmann Chief Executive Officer January 10, 2022
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
Slide 3: © 2022 Cardinal Health. All Rights Reserved.
3 © 2022 Cardinal Health. All Rights Reserved.
Slide 4: Advancing healthcare to improve lives
Advancing healthcare to improve Driving growth to advancelives healthcare and improve lives Creating customer- centric solutions To address healthcare’s most complicated challenges Healthcare’s partner A distributor of pharmaceuticals; global manufacturer and distributor of medical and laboratory pr
Slide 5: Essential facts about Cardinal Health
Essential facts about Cardinal Health Operations in more than Approximately $162B of revenue in FY21 30 44,000 countries employees worldwide 5 © 2022 Cardinal Health. All Rights Reserved.
Slide 6: Our breadth and scale
Our breadth and scale We serve roughly 90% We serve more than We serve more than We operate a network of We serve more of U.S. hospitals through 60,000 U.S. pharmacies 3.4 million U.S. more than 130 nuclear than 10,000 U.S. our pharmaceutical or through distribution and patients with more pharmacies
Slide 7: FY21 highlights
FY21 highlights • Grew revenue 6% versus the prior year to $162B • Grew non-GAAP EPS, despite ~$200M year-over-year COVID-19 non-GAAP Financial = operating earnings headwind Performance • Surpassed enterprise cost savings target for third consecutive year • Generated operating cash flow of $2.4B Cap
Slide 8: Two financial reporting segments
Two financial reporting segments Pharmaceutical Medical FY21 FY21 FY21 FY21 revenues segment profit revenues segment profit $145.8B $1.7B $16.7B $577M 8 © 2022 Cardinal Health. All Rights Reserved.
Slide 9: Pharmaceutical segment
Pharmaceutical segment Key capabilities • Distribute branded, generic and specialty pharmaceuticals and over-the-counter healthcare and consumer products • Provide end-to-end logistics and technology solutions for manufacturers, pharmacies and healthcare providers • Manufacture radiopharmaceuticals,
Slide 10: Medical segment
Medical segment Key capabilities • Manufacture, source and distribute Cardinal Health Brand Medical, Surgical and Laboratory Products • Distribute a broad range of national brand products to acute and alternate sites of care • Distribute medical products directly to patients’ homes and Medical Produ
Slide 11: FY22 strategic priorities
FY22 strategic priorities • Focus on optimizing our global supply chain, prioritizing customer Optimize core experience and driving commercial excellence 1 = • Maximize generics program performance businesses • Deliver cost savings towards our 5-year, $750M goal • Fuel growth and innovation in our f
Slide 12: Optimizing core businesses
Optimizing core businesses • Launched initiatives to deliver additional $250M in savings by FY23 ($750M Across the cumulative cost savings vs. FY18 baseline) = Enterprise • Investing incremental ~$120M in FY22 in technology enhancements to drive growth and efficiencies • Taking decisive action to re
Slide 13: Key healthcare trends
Key healthcare trends Specialty Pharmaceutical Rapidly changing patient care with unique needs (e.g., cell and gene Innovation therapy, theranostics) Healthcare in the home and other non-acute settings, catalyzed by Site of Care Shifts aging population, COVID, and value-based care models Transparenc
Slide 14: Investing for growth and innovation
Investing for growth and innovation Blending core distribution and product offerings with strategic assets positioned for strong growth 14 © 2022 Cardinal Health. All Rights Reserved. 14
Slide 15: Investing for growth and innovation
Investing for growth and innovation Launching new provider solutions, continuing commercial momentum in Specialty Solutions = and positioned to support future growth in biosimilars and upstream services cell and gene therapy Investing ~$20M in digital and technology and expanding warehouse network a
Slide 16: Deploying capital efficiently
Deploying capital efficiently Priorities FY22 guidance assumption Invest in the • Capital expenditures of $400M to $450M = business • Incremental technology investments of ~$120M Strengthen our • Total debt paydown of ~$850M to complete June 2022 debt tower balance sheet = • ~$570M of FY22 debt payd
Slide 17: Long-term targets
Long-term targets Pharma Low-single digit to mid-single digit segment profit growth Strengthening our core Pharmaceutical Distribution business 1. Y 2. yFueling our growth businesses: Specialty, Nuclear, Outcomes Medical Mid-single digit to high-single digit segment profit growth 1. Simplifying our
Slide 18: Environmental, social, and governance priorities: 2030 goals
Environmental, social, and governance priorities: 2030 goals Diversity, equity and inclusion: Representation matters Working to build a more Specifically, by 2030, our goals are that our workforce representation changes sustainable future in the following ways: We’re committed to reducing our impact
Slide 19: Cardinal Health investment thesis
Cardinal Health investment thesis Favorable healthcare trends • Increasing demand for our services due to healthcare trends and patient demographics Valued by customers • Essential role in the delivery of healthcare as a leader in consolidated industries Differentiated portfolio in growth areas • An
Slide 20: Cardinal Health
CardinalHealth’
Slide 21: Appendix
Appendix GAAP to non-GAAP reconciliation statements and supplemental financial information
Slide 22: GAAP / Non-GAAP Reconciliation
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation1 Operating Earnings/ Net Gross Earnings/ (Loss) Provision for/ Earnings/ Diluted 2 3 3 Margin SG&A Operating (Loss) Before (Benefit from) Net (Loss) Effective EPS Gross Growth Growth Earnings/ Growth Income Income Earnings/ Growth
Slide 23: 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
Slide 24: Definitions
Cardinal Health, I nc. 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. I nterest and Other, net: other (income)/expense, net plus interest expense, net. Segme
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