Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Q2 FY2009 Earnings Presentation
20 slides from Cardinal Health's earnings presentation, Feb 5, 2009
Slide 1: Essential to care Q2FY2009 Investor/Analyst Call
Essential to care Q2FY2009 Investor/Analyst Call Exhibit 99.3 February 5, 2009
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 Vice Chairman and CEO Clinical and Medical Products Q&
Slide 4: Cardinal Health: Essential to care
‘CardinalHealth Fssential to care”
Slide 5: Q2 FY2009 Financial Review
Q2 FY2009 Financial Review $25,100 $538 $319 $0.88 $271.5 15.8% ($M) 8% 4% (2%) (1%) % Change GAAP Basis $25,100 $565 $335 $0.93 16.6% ($M) 8% 7% 2% 3% % Change Non-GAAP Basis % change over prior year quarter Revenue Operating earnings Earnings from continuing ops Diluted EPS from continuing ops Ope
Slide 6: Q2 FY2009 Operating Earnings and EPS
Q2 FY2009 Operating Earnings and EPS Note: Costs associated with the spinoff are as follows: Operating Earnings ($M) Diluted EPS from Continuing Operations Operating Earnings ($M) Diluted EPS from Continuing Operations GAAP consolidated $538 $0.88 $519 $0.89 Special items (Note) $20 $0.04 $30 $0.05
Slide 7: Healthcare Supply Chain Services Business Analysis
Healthcare Supply Chain Services Business Analysis Highlights: • Total revenue up 8% on growth in the pharma and medical supply chain business • Revenue from bulk pharmaceutical customers up 15% on increased volumes from existing customers • Revenue from non-bulk pharmaceutical customers up 2%, driv
Slide 8: Clinical and Medical Products Business Analysis
Clinical and Medical Products Business Analysis Highlights: • Segment revenue up 7% over prior year due to organic growth in dispensing, infusion, and infection prevention, and the Enturia acquisition, partially offset by the negative impact of foreign exchange • Segment profit up 16% on the Enturia
Slide 9: FY09 Financial Goals
FY09 Financial Goals Flat to better Flat to better Clinical and Medical Products (CMP) Flat to (5%) >6% Healthcare Supply Chain Services (HSCS) Profit Growth Revenue Growth Segment $3.50 - $3.60 Non-GAAP EPS : 6-7% Total revenue growth: February 5, 2009 Non-GAAP diluted earnings per share from conti
Slide 10: FY09 Assumptions Update: February 5, 2009
FY09 Assumptions Update: February 5, 2009 • Capital deployment – Share repurchases to no more than offset equity compensation issuances – Expect to continue regular $0.14 quarterly dividend until spinoff is completed • Portfolio rationalization/review – MedSystems sale closed 8/29/08 – Tecomet sale
Slide 11: HSCS Update
HSCS Update • Pharmaceutical – All controlled substances distribution centers on-line – Regaining momentum with non-bulk customers – Solid progress with generic programs – Strong nuclear pharmacy quarter, with new contracts signed • Medical – Solid quarter in Med Supply Chain with double-digit profi
Slide 12: CMP Update
CMP Update • Q2 results solid despite challenging market climate – Organic growth in dispensing, infusion, infection prevention – Strong contribution from Enturia – Substantial, negative impact from F/X, commodities • FY09(E) segment profit flat or better vs. FY08 – Disposables (~40% of sales) are s
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) • Prepare organization for and execute spinoff
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: Q2FY09 Trailing Five Quarters
Q2FY09 Trailing Five Quarters * * * * * *
Slide 18: Segment Analysis: Q2FY09
Segment Analysis: Q2FY09 $333 $24,096 Q2FY09 $292 $23,418 Q1FY09 $324 $21,863 Q4FY08 6% 8% Q2FY09/ Q2FY08 % change $377 $315 Segment Profit ($M) $21,923 $22,346 Revenue ($M) Q3FY08 Q2FY08 Healthcare Supply Chain Services $198 $1,215 Q2FY09 $167 $1,155 Q1FY09 $229 $1,270 Q4FY08 16% 7% Q2FY09/ Q2FY08
Slide 19: Segment Analysis: Q2FY09
Segment Analysis: Q2FY09 $31 $265 Q2FY09 $24 $273 Q1FY09 $27 $288 Q4FY08 25% (12%) Q2FY09/ Q2FY08 % change $26 $25 Segment Profit ($M) $308 $301 Revenue ($M) Q3FY08 Q2FY08 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 Second Quarter 2009 Year-to-Date 2009 (in millions, except per Common Share amounts) GAAP Special Items Other Spin-Off Costs Impairments, (Gain)/Loss on Sale of Assets