Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Q1 FY2010 Earnings Presentation
20 slides from Cardinal Health's earnings presentation, Nov 5, 2009
Slide 1: Essential to care Q1FY2010 Investor/Analyst Call
Essential to care Q1FY2010 Investor/Analyst Cal l Exhibit 99.3 November 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: Essential to care
Te nates Essential to care™
Slide 4: Q1 FY2010 Business Analysis
Q1 FY2010 Business Analysis Q1 FY10 Q1 FY09 Q1 FY10 Q1 FY09 Revenue $24,781 $23,437 % change 6% 11% Operating earnings $240 $287 $323 $311 % change (16)% (15)% 4% (13)% Ratio to revenue 0.97% 1.22% 1.30% 1.33% Earnings from continuing ops ($62) $172 $194 $168 % change N.M. (19)% 15% (24)% Ratio to r
Slide 5: Q1 FY2010 Operating Earnings and EPS
Q1 FY2010 Operating Earnings and EPS Operating Earnings ($M) Earnings/(Loss) from Continuing Operations ($M) Diluted EPS from Continuing Operations Operating Earnings ($M) Earnings/(Loss) from Continuing Operations ($M) Diluted EPS from Continuing Operations GAAP $240 ($62) ($0.17) $287 $172 $0.48 R
Slide 6: One-time Items Included In GAAP Financials (Net of Tax)
One-time Items Included In GAAP Financials (Net of Tax) • $42M - Restructuring and employee severance, primarily related to spinoff • $16M - Impairment • $198M - Other spinoff costs: – $172M tax charge related to the portion of non-U.S. earnings that will no longer be indefinitely invested offshore
Slide 7: Other Items of Note Affecting Q1 Financials
Other Items of Note Affecting Q1 Financials • Earlier-than-expected brand price inflation in pharmaceutical distribution • Accelerated revenue recognition in Medical related to the spinoff • Flu season • Lower y-on-y tax rate • Other expense/income
Slide 8: Balance Sheet Items Related to CareFusion Spinoff
Balance Sheet Items Related to CareFusion Spinoff Assets • $902M – Investment in CareFusion • $212M – Other assets – Receivable from CareFusion per our Tax Matters Agreement Liabilities • $2.1B – Long-term debt (+$350M - current portion of long-term debt) • $172M – Deferred income taxes and other li
Slide 9: Pharmaceutical Segment Business Analysis
Pharmaceutical Segment Business Analysis Highlights: • Revenue increased 5%, driven by strong growth in pharmaceutical distribution – Balanced sales growth with bulk at 6% and non-bulk at 5% • Segment profit decreased 2% due to year-on-year impact of generic launches and deflation, customer contract
Slide 10: Medical Segment Business Analysis
Medical Segment Business Analysis Highlights: • Revenue increased 10%, driven by organic growth, accelerated sales recognition related to the spinoff and flu-related sales – Strong sales growth in lab, ambulatory and Canada • Segment profit increased 17%, driven by organic growth, the accelerated be
Slide 11: Essential to care
Te nates Essential to care™
Slide 12: Pharmaceutical Segment FY2010 Business Trends and Expectations
Pharmaceutical Segment FY2010 Business Trends and Expectations November 5, 2009 • Market factors: – Modest segment revenue growth – YoY decline in generic launches – Customer contract repricings • Key strategic moves benefiting the longer-term: – Portfolio repositioning to focus (divestitures) and o
Slide 13: Medical Segment FY10 Business Trends and Expectations
Medical Segment FY10 Business Trends and Expectations November 5, 200 9 • Market factors: – Solid segment revenue growth – Positive impact from decreases in raw materials/COGS • Transformational investments: – Medical Transformation progressing – Progress in ambulatory care channel – investments con
Slide 14: CAH FY 2010 Financial Expectations
CAH FY 2010 Financial Expectations November 5, 200 9 FY10 outlook FY09 adjusted base financials Revenue: Low single digit growth $96B Non-GAAP EPS : $1.90 - $2.00 $2.26 Non-GAAP diluted earnings per share from continuing operations
Slide 15: CAH FY10 Overall Expectations
CAH FY10 Overall Expectations November 5, 200 9 FY10 outlook FY09 adjusted base financials Non-GAAP effective tax rate 36-37% 37% Diluted weighted average shares outstanding 361-362M 361.5M Interest and other, net ~$120M $128M Capital expenditures $200M - $250M $419M Includes $150M synthetic lease r
Slide 16: Cardinal Health
CardinalHealth Fssential to care™
Slide 17: Cardinal Health
— CardinalHealth Essential to care™
Slide 18: Q1 FY10 Trailing Five Quarters
Q1 FY10 Trailing Five Quarters
Slide 19: Segment Analysis: Q1FY10
Segment Analysis: Q1FY10 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Revenue ($M) 21,404 22,079 22,118 22,263 22,562 Segment Profit ($M) Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Revenue ($M) 2,037 2,057 1,976 2,090 2,237 Segment Profit ($M) Pharmaceutical Segment Medical 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 2010 (in millions, except per Common Share amounts) GAAP Restructuring and Employee Severance 1 Impairments and Loss on Sale of Assets Litigation (Credits)/ Charges, Net 1 O