Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Q1 FY2009 Earnings Presentation
20 slides from Cardinal Health's earnings presentation, Oct 29, 2008
Slide 1: Essential to care Q1FY2009 Investor/Analyst Call
Essential to care Q1FY2009 Investor/Analyst Call Exhibit 99.3 October 29, 2008
Slide 2: Forward-looking statements and GAAP reconciliation
Forward-looking statements and GAAP reconciliation 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
Slide 3: Agenda
Agenda Opening remarks Kerry Clark Chairman and Chief Executive Officer Financial overview Jeff Henderson Chief Financial Officer HSCS comments George Barrett Vice Chairman and CEO Healthcare Supply Chain Services CMP comments Dave Schlotterbeck V ice Chairman and CEO Clinical and Medical Products Q
Slide 4: Cardinal Health: Essential to care
‘CardinalHealth Fssential to care”
Slide 5: Q1 FY2009 Financial Review
Q1 FY2009 Financial Review $24,347 $426 $250 $0.69 ($352) 12.7% ($M) 11% (13%) (18%) (16%) % Change ¹ GAAP Basis $24,347 $482 $268 $0.74 13.6% ($M) 11% (6%) (16%) (14%) % Change ¹ Non-GAAP Basis % change over prior year quarter Revenue Operating earnings Earnings from continuing ops Diluted EPS from
Slide 6: Q1 FY2009 Operating Earnings and EPS
Q1 FY2009 Operating Earnings and EPS Operating Earnings ($M) Diluted EPS from Continuing Operations Operating Earnings ($M) Diluted EPS from Continuing Operations GAAP Consolidated $426 $0.69 $490 $0.82 Special Items $52 $0.10 $23 $0.04 Impairments, (gain)/loss on sale of assets and other, net $4 ($
Slide 7: Healthcare Supply Chain Services Business Analysis
Healthcare Supply Chain Services Business Analysis Highlights: • Revenue up 11% on growth in pharma and medical supply chain business • Revenue from bulk ¹ customers up 20% on increased volumes from existing customers and customer wins • Revenue from non-bulk ² customers up 4%, driven by growth in r
Slide 8: Clinical and Medical Products Business Analysis
Clinical and Medical Products Business Analysis Highlights: • Segment revenue up 12% over prior year on Pyxis revenue, growth in international, and the Enturia acquisition • Segment profit up 15% on the Enturia acquisition and organic growth, dampened in part by the increased cost of commodities • V
Slide 9: FY09 Financial Goals
FY09 Financial Goals >20% >10% Clinical and Medical Products (CMP) Flat to (5%) >6% Healthcare Supply Chain Services (HSCS) Profit Growth Revenue Growth Segment $3.80 - $3.95 Non-GAAP EPS ¹ : 6-7% Total revenue growth: October 29, 2008 Non-GAAP diluted earnings per share from continuing operations
Slide 10: FY09 Assumptions Update
FY09 Assumptions Update • Capital deployment – Share repurchases to no more than offset equity compensation issuances – Continue regular $0.14 quarterly dividend until spin-off is completed • Portfolio rationalization/review – MedSystems sale closed 8/29/08 – Tecomet sale closed 9/26/08 – Review of
Slide 11: HSCS Update
HSCS Update • DEA settlement complete • Early progress on revenue growth from non-bulk customers • Progress in Med Supply Chain SKU rationalization • I/T investments have begun • Physician office program customization begun • MSC - Lab/Ambulatory performing well
Slide 12: CMP Update
CMP Update • Q1 results solid – Strong customer relationships in uncertain economic environment – No change in competitive landscape • Progress with strategic investments – MedMined™ – Pyxis ® supply • Strong annuity stream with disposables • Product remediation on track for calendar year-end comple
Slide 13: Cardinal Health: Essential to care
‘CardinalHealth Fssential to care”
Slide 14: FY 2009 Priorities
FY 2009 Priorities • Continue to invest in enhancing quality and regulatory systems • Return HSCS to steady growth • Continue to invest in CMP growth • Complete integrations (VIASYS ® , Enturia, Borschow) • Execute spin-off transaction
Slide 15: Cardinal Health: Essential to care
‘CardinalHealth Fssential to care”
Slide 16: Cardinal Health: Essential to care
> a CardinalHealth Essential to care™
Slide 17: Q1FY09 Trailing Five Quarters
Q1FY09 Trailing Five Quarters * * * * * * *
Slide 18: Segment Analysis: Q1FY09
Segment Analysis: Q1FY09 $292 $23,418 Q1FY09 $324 $21,863 Q4FY08 $377 $21,923 Q3FY08 (16%) 11% Q1FY09/ Q1FY08 % change $315 $347 Segment Profit ($M) $22,346 $21,093 Revenue ($M) Q2FY08 Q1FY08 Healthcare Supply Chain Services $167 $1,155 Q1FY09 $229 $1,270 Q4FY08 $190 $1,170 Q3FY08 15% 12% Q1FY09/ Q1
Slide 19: Segment Analysis: Q1FY09
Segment Analysis: Q1FY09 $24 $273 Q1FY09 $27 $288 Q4FY08 $26 $308 Q3FY08 7% (7%) Q1FY09/ Q1FY08 % change $25 $22 Segment Profit ($M) $301 $294 Revenue ($M) Q2FY08 Q1FY08 All Other Segment
Slide 20: GAAP to Non-GAAP Reconciliation Statements
GAAP to Non-GAAP Reconciliation Statements * * * * * * * CARDINAL HEALTH, INC. AND SUBSIDIARIES GAAP / NON-GAAP RECONCILIATION First Quarter 2009 (in millions, except per Common Share amounts) GAAP Special Items Impairments, (Gain)/Loss on Sale of Assets and Other, Net Non-GAAP Operating Earnings Am