Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Q1 FY2016 Earnings Presentation
20 slides from Cardinal Health's earnings presentation, Nov 2, 2015
Slide 1: Q1 FY2016 earnings investor/analyst call
Q1 FY2016 earnings investor/analyst call November 2, 2015 © Copyright 2015, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.
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: Q1 FY2016 Financial summary
Q1 FY2016 Financial summary GAAP Basis ($M) Non-GAAP Basis ($M) Q1 FY16 Q1 FY15 Q1 FY16 Q1 FY15 Revenue $28,055 $24,070 % change 17% (2)% Operating earnings $620 $466 $737 $566 % change 33% (1)% 30% 6% Ratio to revenue 2.21% 1.94% 2.63% 2.35% Net earnings attributable to Cardinal Health, Inc. $383 $
Slide 4: Pharmaceutical segment business analysis
Q1 FY2016 Pharmaceutical segment business analysis Q1 FY16 Q1 FY15 % Change ($M) ($M) Revenue $25,140 $21,209 19% Segment profit $657 $451 46% Segment profit margin 2.62% 2.13% Highlights: • Revenue for the Pharmaceutical segment increased 19 percent to $25.1 billion due to growth from existing and
Slide 5: Medical segment business analysis
Q1 FY2016 Medical segment business analysis Q1 FY16 Q1 FY15 % Change ($M) ($M) Revenue $2,919 $2,852 2% Segment profit $101 $113 (11)% Segment profit margin 3.45% 3.97% Highlights: • Revenue for the Medical segment increased 2 percent to $2.9 billion due to Cardinal Health- branded products and the
Slide 6: GAAP to non-GAAP reconciliation
Q1 FY2016 GAAP to non-GAAP reconciliation Q1 FY 2016 Q1 FY 2015 Net Earnings Diluted EPS Net Earnings Diluted EPS Operating attributable to attributable to Operating attributable to attributable to Earnings ($M) Cardinal Health, Cardinal Health, Earnings ($M) Cardinal Health, Cardinal Inc. ($M) Inc.
Slide 7: FY2016 outlook
FY2016 outlook © Copyright 2014 Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and 7 ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.
Slide 8: CAH FY2016 financial expectations
November 2, 2015 CAH FY2016 financial expectations FY2016 outlook FY2015 actual Mid-teens Revenue percentage $103B growth vs. PY Non-GAAP diluted $5.15 to $5.35 $4.381 EPS 1Non-GAAP diluted EPS from continuing operations Red font indicates a change since previous guidance. © Copyright 2015, Cardinal
Slide 9: FY16 corporate assumptions
November 2, 2015 FY16 corporate assumptions FY16 outlook FY15 actual Non-GAAP effective tax rate 35.5% - 37.0%1 37.2% Diluted weighted average 332M – 334M 335M shares outstanding Interest and other, net $195M - $210M $134M Capital expenditures $510M - $540M $300M Acquisition-related intangible ~$277
Slide 10: © Copyright 2015 Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO
© Copyright 2015 Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.
Slide 11: Q1 FY2016 trailing five quarters and GAAP to Non-GAAP reconciliation statements
Q1 FY2016 trailing five quarters and GAAP to Non-GAAP reconciliation statements © Copyright 2014 Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health. 11
Slide 12: Segment analysis
Q1 FY2016 Segment analysis Pharmaceutical segment Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Revenue 21,209 22,627 22,605 24,676 25,140 ($M) Segment Profit 451 542 567 535 657 ($M) Medical segment Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Revenue 2,852 2,914 2,774 2,855 2,919 ($M) Segment Profit 113 115
Slide 13: GAAP / Non-GAAP Reconciliation First Quarter 2016
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation First Quarter 2016 Net Earnings Diluted EPS Net Earnings attributable Diluted EPS attributable Operating Provision for attributable to Cardinal attributable to Cardinal Operating Earnings Earnings Before Income to Cardinal Health,
Slide 14: GAAP / Non-GAAP Reconciliation Fiscal Year 2015
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation Fiscal Year 2015 Operating Earnings Before Provision Earnings Earnings from Diluted EPS Diluted EPS Earnings Income Taxes for from Continuing from from Continuing Operating Growth and Discontinued Income Continuing Operations Cont
Slide 15: Total Company Business Analysis
Cardinal Health, Inc. and Subsidiaries Total Company Business Analysis Non-GAAP First Quarter First Quarter (in millions) 2016 2015 2016 2015 Revenue Amount $ 28,055 $ 24,070 Growth rate 17 % (2)% Operating earnings Amount $ 620 $ 466 $ 737 $ 566 Growth rate 33 % (1)% 30 % 6% Net earnings attributab
Slide 16: Segment Business Analysis
Cardinal Health, Inc. and Subsidiaries Segment Business Analysis First Quarter First Quarter (in millions) 2016 2015 (in millions) 2016 2015 Pharmaceutical Medical Revenue Revenue Amount $ 25,140 $ 21,209 Amount $ 2,919 $ 2,852 Growth rate 19 % (3)% Growth rate 2% 5% Segment profit Segment profit Am
Slide 17: GAAP / Non-GAAP Reconciliation First Quarter
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation First Quarter (in millions) 2016 2015 GAAP return on equity 24.0 % 16.8 % Non-GAAP return on equity Net earnings attributable to Cardinal Health, Inc. $ 383 $ 266 Restructuring and employee severance, net of tax 7 12 Amortization
Slide 18: GAAP / Non-GAAP Reconciliation First Quarter
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation First Quarter (in millions) 2016 2015 GAAP effective tax rate 32.3 % 38.9 % Non-GAAP effective tax rate Earnings before income taxes $ 568 $ 435 Restructuring and employee severance 12 19 Amortization and other acquisition-related
Slide 19: GAAP / Non-GAAP Reconciliation Fiscal Year
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation Fiscal Year (in millions) 2015 GAAP effective tax rate from continuing operations 38.4 % Non-GAAP effective tax rate from continuing operations Earnings before income taxes and discontinued operations $ 1,967 Restructuring and emp
Slide 20: 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