Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Merger or Acquisition (June 2009)
11 slides from Cardinal Health's merger presentation, Jun 8, 2009
Slide 1: Cardinal Health
CardinalHealth
Slide 2: Forward-looking statements
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 matters are subject to risks and uncertainties that could cause actual results to differ mater
Slide 3: Development of CFN FY09 pro formas
Development of CFN FY09 pro formas Reported CMP segment CFN historical “as managed” CFN pro forma Separation adjustments Discontinued operations Financing adjustments • Push down of estimated ~$90M of special items/impairments • Adjustments for legal vs. management reporting • Addition of allocated
Slide 4: Development of nCAH FY09 pro formas
Development of nCAH FY09 pro formas Reported CAH GAAP Add back special items & impairments nCAH pro forma Non-GAAP Discontinued operations • Expect to report Martindale in discontinued operations ($0.03 - $0.05 impact) • Represents CFN businesses to be spun off • Includes allowed allocation of corpo
Slide 5: Recast pro forma estimates
Recast pro forma estimates Current CAH non-GAAP EPS guidance: Low end of $3.50-$3.60 CFN FY09 pro forma EPS estimate: $0.58 - $0.62 nCAH FY09 pro forma recast non- GAAP EPS estimate: $2.20 - $2.25 Includes Martindale operation in continuing operations Includes Martindale operation in discontinued op
Slide 6: Estimated FY09 non-GAAP EPS reconciliation
Estimated FY09 non-GAAP EPS reconciliation Est. FY09 Comments CAH non-GAAP EPS Incl. Martindale in Continuing Operations nCAH non-GAAP EPS (361M shares) $2.20 - $2.25 Excl. special items; Treats Martindale as DO CFN Pro forma EPS (452M shares) $0.58 - $0.62 Includes special items $2.78 - $2.87 Estim
Slide 7: Estimated negative synergies ($M) FY10-FY12
Estimates ($M) FY10 FY11 FY12 CFN 65 66 67 nCAH 23 40 52 Reflected in FY09 Proforma CFN 35 35 35 nCAH 23 23 23 Incremental CFN 30 31 32 nCAH - 17 29 Estimated negative synergies Cumulative Total
Slide 8: Retained CFN stake
Retained CFN stake • nCAH will retain <20% ownership interest in CFN – Substantial source of liquidity to strengthen balance sheet over time • <20% investment in CFN accounted for on the cost method – As a general rule, investments < 20% are accounted for under the cost method unless the investor ca
Slide 9: Dividend announcement
Dividend announcement • Dividend Increase for CAH – Increased quarterly dividend by 25% – Expected to continue post-spin – CFN not expected to pay a dividend – Goal to grow dividend at or above earnings growth in FY11 and FY12 – Pro forma FY09 payout >31% – Key component of delivering strong Total S
Slide 10: Q & A
Q & A
Slide 11: Forward-looking non-GAAP measures
Forward-looking non-GAAP measures Cardinal Health presents non-GAAP earnings from continuing operations and non-GAAP effective tax rate from continuing operations (and presentations derived from these financial measures) on a forward-looking basis. Non-GAAP earnings from continuing operations is def