Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Shareholder Meeting (November 2016)
21 slides from Cardinal Health's shareholder meeting presentation, Nov 3, 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 Annual Shareholders Meeting November 3, 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: Annual Meeting of Shareholders
Annual Meeting of Shareholders I. Call to order II. Matters to be acted upon Proposal 1 – Election of Directors Proposal 2 – Ratification of Ernst & Young LLP as Independent Auditor Proposal 3 – Approval of the Amended Cardinal Health, Inc. 2011 Long-Term Incentive Plan Proposal 4 - Advisory vote on
Slide 4: Essential facts about Cardinal Health
Essential facts about Cardinal Health A global, integrated healthcare products & services company 3 © Copyright 2016, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 5: Examples of our lines of business
Examples of our lines of business Pharmaceutical distribution Specialty pharmacy Oncology services Regulatory science services Med-surg distribution Surgical kitting Medical devices Patient compliance tools Inventory management technology Medical freight management Discharge management and post-acut
Slide 6: Rapid transformation of healthcare
Rapid transformation of healthcare Demand driven by DEMOGRAPHICS CARE needs to be MORE COORDINATED CARE MUST BE DELIVERED AT THE RIGHT TIME, using the RIGHT EVIDENCE -BASED PROTOCOLS and standards and in the RIGHT SETTING MORE ACTIVE GOVERNMENT ROLE in healthcare GREATER FOCUS ON PATIENT OUTCOMES vs
Slide 7: FY16 financial summary
FY16 financial summary GAAP Basis ($M) Non-GAAP Basis ($M) FY16 FY15 FY16 FY15 Revenue $121,546 $102,531 N/A N/A % change 19% increase YoY 13% increase YoY Gross Margin $6,543 $5,712 % change 15% increase YoY 11% increase YoY N/A N/A Ratio to revenue 5.38% 5.57% Operating Earnings $2,459 $2,161 $2,8
Slide 8: Sustained strong financial performance over five years (FY12 – FY16)
Sustained strong financial performance over five years (FY12 – FY16) Long term goals Diluted EPS² 9.5% 13.4% Annual Dividend Payout GAAP CAGR Non-GAAP1 CAGR 30-35% Total shareholder return3 90.4% Multi-Year Non-GAAP EPS CAGR Dividend per share growth 14.7% 10-15% CAGR 1 Non-GAAP financial measures.
Slide 9: Capital deployment for the past five years
Capital deployment for the past five years FY12 – FY16 Capital Deployment $1.5B $7.0B $2.0B $3.3B Capital Expenditures Acquisitions1 Dividends Share Repurchases Investing Returning $8.5B for sustainable growth $5.3B to our shareholders 1Acquisitions are net of divestitures. 8 © Copyright 2016, Cardi
Slide 10: Q1 FY17 financial summary
Q1 FY17 financial summary GAAP Basis ($M) Non-GAAP Basis ($M) Q1 FY17 Q1 FY16 Q1 FY17 Q1 FY16 Revenue $32,039 $28,055 N/A N/A % change 14% increase YoY 17% increase YoY Operating Earnings $535 $620 $669 $737 % change 14% decrease YoY 33% increase YoY 9% decrease YoY 30% increase YoY Ratio to revenue
Slide 11: FY17 financial expectations
FY17 financial expectations FY2017 Outlook FY2016 Actual High-single digit Revenue percentage growth vs. PY $121.5B Non-GAAP $5.40 to $5.60 $5.24 Diluted EPS¹ ¹ Guidance provided on CAH earnings conference call, 10/31/16; not being reaffirmed as of the date of the this presentation. Red font indicat
Slide 12: Cardinal Health offers enterprise-wide capabilities in four areas
Cardinal Health offers 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 healthcare patients f
Slide 13: It's about our people
It’s about our people America's 2016, 2015, 2014, Leading 3PLS 2013, 2012 2016, 2015 Global Trade magazine and Armstrong & Associates 2016, 2015, 2014, 2013, 2012 2015 Employer Support Freedom Award 2016 Secretary of Defense Employer Support Freedom Corporate 101: Award, the highest honor the Americ
Slide 14: Thank you!
Thank you! 13 © Copyright 2016, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 15: Questions?
Questions? 14 © Copyright 2016, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 16: Financial Appendix
Financial Appendix © Copyright 2016, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved
Slide 17: GAAP / Non-GAAP Reconciliation (Q1 FY17)
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation 1 Operating Provision for Net Diluted Operating Earnings Earnings Before Incom e Net Earnings 2 Diluted EPS2 Earnings Grow th Rate Incom e Taxes Taxes Earnings 2 Grow th Rate EPS2 Grow th Rate (in millions, except per common share
Slide 18: GAAP / Non-GAAP Reconciliation (FY2016, FY2015)
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation Net Earnings Net Earnings from Operating Provision for from Continuing Diluted Operating Earnings Earnings 1 Before Incom e Continuing Operations 2 Diluted EPS1,2 Earnings Grow th Rate Incom e Taxes Taxes Operations 2 Grow th Rate
Slide 19: GAAP / Non-GAAP Reconciliation (FY2013, FY2012)
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation Net Earnings Net Earnings from Operating Provision for from Continuing Diluted Operating Earnings Earnings 1 Before Income Continuing Operations 2 Diluted EPS1,2 Earnings Grow th Rate Income Taxes Taxes Operations 2 Grow th Rate E
Slide 20: Forward Looking non-GAAP Measures
Cardinal Health, Inc. and Subsidiaries Forw ard Looking non-GAAP Measures In this presentation, the Company presents its outlook for fiscal 2017 non-GAAP EPS. The Company does not provide EPS outlook, w hich is the most directly comparable GAAP measure to non-GAAP EPS, because changes in the items t
Slide 21: Healthcare is changing… We're changing healthcare.
Healthcare is changing… We’re changing healthcare. George S. Barrett Chairman and Chief Executive Officer Annual Shareholders Meeting November 3, 2016 © Copyright 2016, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved
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