Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — J.P. Morgan Healthcare Conference 2016
16 slides from Cardinal Health's conference presentation, Jan 12, 2016
Slide 1: Healthcare is changing… We're changing healthcare.
Healthcare is changing… We’re changing healthcare. George S. Barrett Chairman and Chief Executive Officer J.P. Morgan Healthcare Conference January 12, 2016 © Copyright 2016, 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 2016, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 4: Essential facts about Cardinal Health
Essential facts about Cardinal Health 3 © Copyright 2016, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 5: Financial highlights and goals
Financial highlights and goals Highlights Non-GAAP EPS Long-term goals Rolling 3-year CAGRs Generated Annual Dividend Payout >$9B 30-35% In cash from operations FY11 – FY15 (FY15 Dividend Payout Ratio3 31%) 12%1 FY13 – FY16(E) 11% FY12 – FY15 Total Shareholder Return2 of 11% Non-GAAP EPS CAGR 176% F
Slide 6: Key trends in healthcare
Key trends in healthcare 5 © Copyright 2016, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 7: Our priorities are focused on the right initiatives to help the system
Our priorities are focused on the right initiatives to help the system deliver the right care, at the right time, in the right setting Health Specialty & Alternate Sites International Generics System & Hospital Biopharma of Care Solutions Expand generics Upstream solutions for Grow post-acute Scaled
Slide 8: One enterprise market strategy
Two financial reporting segments Pharmaceutical segment Medical segment One enterprise market strategy 7 © Copyright 2016, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 9: Serving the full continuum of care
Serving the full continuum of care Retail Surgery Physician Imaging pharmacies centers offices centers Home Hospitals Laboratories health Clinics 8 © Copyright 2016, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 10: Pharmaceutical Segment long-term sustainable growth drivers
Pharmaceutical Segment long-term sustainable growth drivers FY15 revenues of $91B, segment profit of $2.1B Enable our customers’ growth World-class generics offering Drive growth in Specialty Solutions China $8B $1B Revenue Deliver on organic initiatives and recent FY11 FY16(E) acquisitions 1Exclude
Slide 11: Medical Segment long-term sustainable growth drivers
Medical Segment long-term sustainable growth drivers FY15 revenues of $11B, segment profit of $433M Deep customer knowledge We provide resources to 1.8 million patients served in the home >75% of U.S. Hospitals Maximize the post-acute setting Grow Cardinal Health Brand 72% 88% Growth in segment prof
Slide 12: Strong and consistent earnings growth
Strong and consistent earnings growth $5.15 – $5.35 Non-GAAP EPS PPI $4.38 Post-Acute $3.84 Specialty $3.73 CAH Brand Products $3.21 $2.80 At Home $2.24 Generics China Customer Focus Cost Efficiency FY10 FY11 FY12 FY13 FY14 FY15 FY16 Guidance See appendix for GAAP/non-GAAP definitions and reconcilin
Slide 13: A balanced approach with capital
A balanced approach with capital FY11 – Q1 FY16 Capital Deployment $1.4B $7.1B $1.9B $2.9B Capital Expenditure Acquisitions1 Dividends Share Repurchases Investing Returning $8.5B for sustainable growth $4.8B long-term value to our shareholders 1Acquisitions are net of divestitures. Cordis closed on
Slide 14: Healthcare is changing… We're changing healthcare.
Healthcare is changing…We’re changing healthcare. Our business is positioned to grow WELL into the future Our strategic priorities are on the right side of healthcare trends We are excellent, disciplined stewards of capital We have strong and valuable strategic partnerships We have a relentless focu
Slide 15: GAAP / Non-GAAP Reconciliation
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation Fiscal Year 2015 Operating Earnings Before Provision Earnings Earnings from Diluted EPS Diluted EPS Earnings Incom e Taxes for from Continuing from from Continuing Operating Grow th and Discontinued Incom e Continuing Operations C
Slide 16: Use of Non-GAAP Measures
Cardinal Health, Inc. and Subsidiaries Use of Non-GAAP Measures This presentation contains financial measures that are not calculated in accordance w ith U.S. generally accepted accounting principles (“GAAP”). In general, the measures exclude items and charges that (i) management does not believe re
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