Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Raymond James 39th Annual Institutional Investors Conference (March 2018)
18 slides from Cardinal Health's conference presentation, Mar 6, 2018
Slide 1: 39th Annual Raymond James Institutional Investors Conference
Cardinal Health 39th Annual Raymond James Institutional Investors Conference Mike Kaufmann Chief Executive Officer Tuesday, March 6, 2018 © Copyright 2018, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved
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: Cardinal Health brings scaled solutions that help our customers thrive
For those tasked with navigating the complexities of healthcare… Cardinal Health brings scaled solutions that help our customers thrive in a changing world. © Copyright 2018, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 4: Essential facts about Cardinal Health
Essential facts about Cardinal Health A global, integrated healthcare products & services company © Copyright 2018, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 5: Essential facts about Cardinal Health
Essential facts about Cardinal Health A global, integrated healthcare products & services company © Copyright 2018, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 6: Healthcare Trends
Healthcare Trends Healthcare Government’s Mobile consumerism expanding connectivity role Power of Global generics and Care shifts to Partnerships demand breakthrough more efficient swells innovation settings Precision Value-based medicine care © Copyright 2018, Cardinal Health, Inc. or one of its su
Slide 7: FY17 financial summary
FY17 financial summary Revenue ($M) $129,976 non-GAAP Operating 1 Earnings ($M) $2,769 3 non-GAAP Diluted EPS2 $5.40 1FY17 GAAP operating earnings $2,120M 2Attributable to Cardinal Health, Inc. 3FY17 GAAP diluted EPS $4.03 Please see appendix for GAAP to Non-GAAP reconciliations. © Copyright 2018, C
Slide 8: Q2FY18 financial summary
Q2FY18 financial summary Revenue ($M) $35,186 non-GAAP Operating 1 Earnings ($M) $730 2 3,4 non-GAAP Diluted EPS $1.51 1Q2FY18 GAAP operating earnings $399M 2Attributable to Cardinal Health, Inc. 3Includes a tax benefit of $0.20 per share from applying a lower federal tax rate to our year-to-date U.
Slide 9: Two financial reporting segments
Two financial reporting segments… Pharmaceutical Medical FY17 revenues of $116B FY17 revenues of $13.5B FY17 segment profit of $2.2B FY17 segment profit of $572M © Copyright 2018, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 10: Acquisition of Medtronic's Patient Recovery Business
Acquisition of Medtronic’s Patient Recovery Business Purchase price $6.1B Closed July 2017 Product Categories 23 Manufacturing facilities 17 2 FY18 non-GAAP Diluted EPS1 Impact >$0.21 2 FY19 non-GAAP Diluted EPS1 Impact >$0.55 2 Annual Operational synergies exiting FY20 >$150M 1Attributable to Cardi
Slide 11: Patient Recovery Business Product Lines
Patient Recovery Business Product Lines Open suction, cardiothoracic drainage, catheters Bandages, dressings, underpads, adult briefs, protective underwear Foam positioners, delivery kits, OR essentials Urology, collection systems Enteral feeding pumps, sets, tubes and access devices Compression dev
Slide 12: Cardinal Health goes to market with enterprise-wide capabilities in four areas
Cardinal Health goes to market with enterprise-wide capabilities in four areas Logistics Business Patient Product Solutions Solutions Solutions Solutions Enable a more efficient Optimize the process and Connect clinicians and Provide a comprehensive way of bringing healthcare performance of healthca
Slide 13: Robust solutions for an existing customer
Robust solutions for an existing customer CAH branded Med surg products distribution Surgical • One of the largest not-for- kitting profit healthcare providers Nuclear Inventory • $4B+ in revenues management services • 10+ hospitals, long-term care facilities, physician Specialty offices, retail cli
Slide 14: 39th Annual Raymond James Institutional Investors Conference
Cardinal Health 39th Annual Raymond James Institutional Investors Conference Mike Kaufmann Chief Executive Officer Tuesday, March 6, 2018 © Copyright 2018, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved
Slide 15: GAAP / Non-GAAP Reconciliation
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation 1 Operating Provision for Net Diluted Operating Earnings Earnings Before Income Net Earnings2 Diluted EPS2 2 2 Earnings Growth Rate Income Taxes Taxes Earnings Growth Rate EPS Growth Rate (in millions, except per common share amou
Slide 16: GAAP / Non-GAAP Reconciliation
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation 1 Gross Provision for/ Margin Operating (Benefit from ) Net Diluted Gross Grow th Operating Earnings Earnings Before Incom e Net Earnings 2 Diluted EPS2 Margin Rate Earnings Grow th Rate Incom e Taxes Taxes Earnings 2 Grow th Rate
Slide 17: Definitions
Cardinal Health, Inc. and Subsidiaries Definitions Debt: long-term obligations plus short-term borrowings. Debt to Total Capital: debt divided by (debt plus total Cardinal Health, Inc. shareholders’ equity). Interest and Other, net: other (income)/expense, net plus interest expense, net. Net Debt: a
Slide 18: Definitions
Cardinal Health, Inc. and Subsidiaries Definitions Non-GAAP Net Earnings attributable to Cardinal Health, Inc. or "Non-GAAP Net Earnings": net earnings attributable to Cardinal Health, Inc. excluding (1) LIFO charges/(credits), (2) restructuring and employee severance, (3) amortization and other acq
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