Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Q2 FY2022 Earnings Presentation
18 slides from Cardinal Health's earnings presentation, Feb 3, 2022
Slide 1: Q2 FY22 Cardinal Health, Inc. Earnings Call
Q2 FY22 CARDINAL HEALTH, INC. EARNINGS CALL FEBRUARY 3, 2022
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: Q2 results
Q2 results 3
Slide 4: Q2 FY22 financial summary
Q2 FY22 financial summary GAAP Basis ($M) Non-GAAP Basis ($M) Q2 FY22 Q2 FY22 Revenue $45,457 N/A % change 9% Gross Margin $1,616 $1,617 % change (9)% (9)% SG&A $1,151 $1,151 % change 0% 0% Operating Earnings/(Loss)1 $(950) $467 % change N.M. (26)% Interest and Other2 $24 % change (30)% N/A Net Earn
Slide 5: Q2 FY22 Pharmaceutical segment results
Q2 FY22 Pharmaceutical segment results Q2 FY22 ($M) Q2 FY21 ($M) YoY change Revenue $41,375 $37,236 11% Segment profit $426 $413 3% Segment profit margin 1.03% 1.11% -8 bps Drivers: Revenue + Pharmaceutical Distribution + Specialty Segment profit + Generics program - Investments in technology enhanc
Slide 6: Q2 FY22 Medical segment results
Q2 FY22 Medical segment results Q2 FY22 ($M) Q2 FY21 ($M) YoY change Revenue $4,085 $4,310 -5% Segment profit $50 $236 -79% Segment profit margin 1.22% 5.48% -426 bps Drivers: Revenue - Divestiture of Cordis Segment profit - Products and distribution: inflationary impacts and global supply chain con
Slide 7: FY22 outlook
FY22 outlook 7
Slide 8: FY22 financial expectations
FY22 financial expectations FY22 outlook FY21 actual Non-GAAP EPS $5.15 - $5.50 $5.57 Previously $5.60 - $5.90 Interest and other $140M - $160M $133M Previously $150M - $180M Non-GAAP ETR 23.0% - 24.5% 22.8% Previously 23.0% - 25.0% Diluted weighted average 280M - 282M 294M shares outstanding Capita
Slide 9: FY22 segment outlook
FY22 segment outlook Segment Revenue Segment Profit Low-double digit percentage Mid-single digit percentage Pharmaceutical growth growth Low-single digit to mid-single Thirty to forty-five percent Medical digit percentage decline decline Previously mid-single digit to low-double digit Previously app
Slide 10: FY22 strategic priorities
FY22 strategic priorities ▪ Focus on optimizing our global supply chain, prioritizing customer Optimize experience, and driving commercial excellence 1 core ▪ Maximize generics program performance businesses ▪ Deliver cost savings towards our 5-year, $750M goal ▪ Fuel growth and innovation in our fi
Slide 11: Long-term targets
Long-term targets Taking action to drive sustainable growth Pharma Low-single digit to mid-single digit segment profit growth Strengthening our core Pharmaceutical Distribution business 1. Y 2. yFueling our growth businesses: Specialty, Nuclear, Outcomes Medical Mid-single digit to high-single digit
Slide 12: Environmental, social and governance priorities: 2030 goals
Environmental, social and governance priorities: 2030 goals Diversity, equity and inclusion: Working to build a more Representation matters sustainable future Specifically, by 2030, our goals are that our workforce representation changes in the following ways: We’re committed to reducing our impact
Slide 13: Appendix
Appendix 13
Slide 14: GAAP / Non-GAAP Reconciliation Q2 2022
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation1 Earnings/ Gross Operating (Loss) Provision for/ Net Diluted Margin SG&A2 Operating Earnings Before (Benefit from) Net Earnings3 Effective EPS3 Gross Growth Growth Earnings/ Growth Income Income Net Growth Tax Diluted Growth 2 3 3
Slide 15: GAAP / Non-GAAP Reconciliation Fiscal Year 2021
Cardinal Health, Inc. and Subsidiaries 1 GAAP / Non-GAAP Reconciliation Operating Earnings/ Net Gross Earnings/ (Loss) Provision for/ Earnings/ Diluted 2 Margin SG&A Operating (Loss) Before (Benefit from) Net (Loss)3 Effective EPS3 Gross Growth Growth Earnings/ Growth Income Income Earnings/ Growth
Slide 16: Segment Information Second Quarter
Cardinal Health, Inc. and Subsidiaries Segment Information Second Quarter (in millions) 2022 2021 (in millions) 2022 2021 Pharmaceutical Medical Revenue Revenue Amount $ 41,375 $ 37,236 Amount $ 4,085 $ 4,310 Growth rate 11 % 4 % Growth rate (5)% 7% Segment profit (1) Segment profit Amount $ 426 $ 4
Slide 17: Forward Looking non-GAAP Measures
Cardinal Health, Inc. and Subsidiaries Forward Looking non-GAAP Measures In this document, the Company presents certain forward-looking non-GAAP metrics. The Company does not provide outlook on a GAAP basis because the items that the Company excludes from GAAP to calculate the comparable non-GAAP me
Slide 18: Definitions
Cardinal Health, Inc. and Subsidiaries Definitions Growth rate calculation: growth rates are determined by dividing the difference between current-period results and prior-period results by prior-period results. Interest and Other, net: other (income)/expense, net plus interest expense, net. Segment