Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Robert W. Baird & Co 2006 Growth Stock Conference
22 slides from Cardinal Health's conference presentation, May 11, 2006
Slide 1: Robert W. Baird 2006 Growth Stock Conference
Jeff Henderson Chief Financial Officer May 11, 2006 Robert W. Baird & Co 2006 Growth Stock Conference
Slide 2: Forward-looking and adjusted information
Forward-looking and adjusted information Except for historical information, all other information in this presentation consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertai
Slide 3: Agenda
Cardinal Health overview FY 2006 year-to-date results Second half focus items Key business drivers Strategic agenda items Conclusion Agenda
Slide 4: Working together. For life.
Working together. For life. At Cardinal Health, everything we do has one ultimate purpose: to deliver solutions that help our customers fulfill their mission of providing better patient care. Manufacturer Pharmaceuticals Biotechnology Medical/Surgical/Lab Care Provider Hospitals Retail pharmacies Al
Slide 5: Cardinal Health today
Pharmaceutical Distribution and Provider Services Revenue: $65B Earnings contribution: 45% Market leader in pharmaceutical distribution Medical Products and Services Revenue: $10B Earnings contribution: 28% Products used in 50% of U.S. surgeries; 300,000 medical/ surgical products Clinical Technolog
Slide 6: FY 2006 Nine Months YTD Results
Revenue Operating Earnings Earnings from continuing operations Diluted EPS FY 2006 Nine Months YTD Results $59,655 9% $ 1,432 12% $ 906 12% $ 2.11 15% $ M Year-Over-Year % Change Results as of March 31, 2006
Slide 7: FY 2006 - 2nd Half Focus Items
Improving fundamentals to drive margin enhancement Focus on increasing ROIC / ROE Good balance sheet management Disciplined capital deployment Building capabilities FY 2006 - 2nd Half Focus Items
Slide 8: FY 2006 - 2nd Half Metrics
FY 2006 - 2nd Half Metrics All figures GAAP, except as noted
Slide 9: Pharmaceutical Distribution and Provider Services Key Business Drivers
Pharmaceutical Distribution and Provider Services Key Business Drivers Fee for service transition complete Strong customer demand Lowest cost structure in the industry New generic product launches Service enhancements
Slide 10: Medical Products and Services Key Business Drivers
Medical Products and Services Key Business Drivers Private label product strength Sourcing Growth in manufactured products International growth
Slide 11: Pharmaceutical Technologies and Services Key Business Drivers
Pharmaceutical Technologies and Services Key Business Drivers Outsourcing trend continues to grow Growth in pipeline of products utilizing our proprietary technologies / capabilities Improving focus Focus on value based customer pricing Product participation
Slide 12: Aligning Leadership Capabilities
Med/Surg Distribution Pharmaceutical Distribution Nuclear Pharmacy Specialty Distribution Third party logistics Infection prevention products Medical consumables Surgical instruments Oral products manufacturing Sterile products manufacturing Contract packaging Alaris(r) Products Pyxis(r) Products Ph
Slide 13: Integration - One Cardinal Health
Integration - One Cardinal Health Externally Integrate around customers and markets Leverage available Cardinal Health resources Internally Improve operating discipline Capitalize on scale Goal Drive innovation for organic, topline growth Drive synergies and productivity for additional bottom line g
Slide 14: International Expansion
International Expansion Revenue opportunities Leverage relationships (i.e. Alaris and Pyxis) Expand integrated services outside U.S. Sourcing opportunities Distributed products Raw materials for manufacturing Manufactured products
Slide 15: Portfolio Optimization
Portfolio Optimization Focus on strategic fit, growth potential and ROIC Address underperforming assets Recent actions taken: Pharmacy Staffing (CTS) sold Healthcare Marketing Services (PTS) held for sale and discontinued operations Intercare Pharmaceutical Distribution (PDPS) held for sale and disc
Slide 16: Capital Deployment
Capital Deployment 25% of OCF - to support organic growth 20% of OCF - to expand scale and presence thru selected "tuck-in" acquisitions 50% of OCF - returned to shareholders Maintain flexibility for strategic opportunities
Slide 17: Conclusion: Well positioned for long-term growth
Well positioned for long-term growth Healthcare industry Superior market positions Great resources drive flexibility Businesses will perform on a stand-alone basis Expanded growth through integration Disciplined capital deployment plan focused on shareholder returns Conclusion
Slide 18: GAAP / Non-GAAP Reconciliation
Slide 19: GAAP / Non-GAAP Reconciliation
Slide 20: Cardinal Health, Inc. and Subsidiaries
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Slide 21: Definitions and Calculations
CARDINAL HEALTH, INC. AND SUBSIDIARIES: [DEFINITIONS AND CALCULATIONS. sane Debt to Total Capita: debt vided by (debt plus toa shareholders equty) Debt: current peed long-term obligations plus current pered shorterm barowings ‘Margin per Expense Dollar: groes margin Svided by seling, general and ari
Slide 22: Cardinal Health
CardinalHealth Working together. For life.”
Cardinal Health — Robert W. Baird & Co 2006 Growth Stock Conference on 6ix