Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Shareholder Meeting (October 2021)
17 slides from Cardinal Health's shareholder meeting presentation, Oct 25, 2021
Slide 1: Shareholder Engagement Fall 2021
Shareholder Engagement Fall 2021
Slide 2: Forward-looking statements and GAAP reconciliation
2 © 2021 Cardinal Health. All Rights Reserved. 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 statements may be ident
Slide 3: Our Path Forward
3 Our Path Forward © 2021 Cardinal Health. All Rights Reserved.
Slide 4: Fiscal 2021 performance highlights
4 Revenue 162.5B +6% GAAP EPS(1) $2.08 Non-GAAP EPS $5.57 +2% GAAP Operating Earnings(1) 472M Operating Cash Flow 2.4 B +24% Total Shareholder Return(2) 13.4% Non-GAAP Operating Earnings 2.3 B -5% COVID-19 Response & Partnerships • Partnered with CDC to enable retail independent, small chain, and LT
Slide 5: Compensation actions taken for fiscal 2021
5 • No increases to base salary for NEOs • Reduced CEO’s annual incentive payout by 65%, eliminating any payout for the earnings component • Reduced other NEOs’ annual incentive payouts by 20% • Gave a bonus to all non-incentive eligible employees recognizing their critical work during the pandemic
Slide 6: CEO compensation components and outcomes
Component CEO Weighting Performance Metrics FY 21 Outcome Base Salary 10% • Fixed cash compensation, which is reviewed annually and adjusted when appropriate • No salary increases for FY 21 Annual Cash Incentive 15% • 70% - Adjusted non-GAAP operating earnings with tangible capital modifier - Non-GA
Slide 7: Performance share unit structure and payouts
7 * Final payout was reduced 20% for relative TSR ** TSR over the three fiscal year period expressed as a percentage, calculated based on changes in stock price assuming reinvestment of dividends © 2021 Cardinal Health. All Rights Reserved. 0% 0% 19%* 92%* FY16-FY18 PSUs FY17-FY19 PSUs FY18-FY20 PSU
Slide 8: Proposed national opioid settlement update
In July, we announced, along with AmerisourceBergen and McKesson, that we have reached a proposed national settlement agreement which, if all conditions are satisfied, would result in the settlement of the substantial majority of opioid-related lawsuits filed by state and local government entities I
Slide 9: Diverse and Experienced Board
7 Men 4 Women 36% Women 9 Diverse and Experienced Board Sheri Edison Retired EVP and General Counsel, Amcor Joined Board in 2020 Carrie Cox Retired EVP and President of Global Pharmaceuticals, Schering-Plough Joined Board in 2009 David Evans Retired EVP and CFO, Scotts Miracle-Gro Company Joined Boa
Slide 10: Board committee oversight of opioid response and risk
The Ad Hoc Committee assists the Board in its oversight of the Company’s response to the nationwide problem of prescription opioid abuse by reviewing and advising on initiatives and developments on related issues • With the retirement of Calvin Darden from the Board in April 2021, Sheri Edison has r
Slide 11: We Request Your Support at the 2021 Annual Meeting
11 © 2021 Cardinal Health. All Rights Reserved. We Request Your Support at the 2021 Annual Meeting Board Voting Recommendations ✓ FOR the election of 11 director nominees ✓ FOR the ratification of appointment of Ernst & Young LLP as our independent auditor ✓ FOR the advisory vote on executive compen
Slide 12: Appendix
Appendix
Slide 13: Diversity, Equity & Inclusion
13 © 2021 Cardinal Health. All Rights Reserved. Diversity, Equity & Inclusion Our Board and management team worked together to develop our comprehensive talent strategy, which sets ambitious goals to increase diverse employee representation The Human Resources & Compensation Committee recently appro
Slide 14: Operating Sustainably
14 Operating Sustainably For additional disclosures, please see our 2021 Corporate Citizenship Report We have set initial targets to reduce Scope 1 and 2 greenhouse gas (GHG) emissions by 50% by 2030. We are working with the Science Based Targets initiative (SBTi) to assess our Scope 3 emissions and
Slide 15: Financial Appendix
Financial Appendix
Slide 16: FY GAAP/Non-GAAP Reconciliation
16 © 2021 Cardinal Health. All Rights Reserved. FY 21 GAAP/Non-GAAP Reconciliation Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation1 Operating Earnings/ Net Gross Earnings/ (Loss) Provision for/ Earnings/ Diluted Margin SG&A2 Operating (Loss) Before (Benefit from) Net (Loss)3 Ef
Slide 17: GAAP/Non-GAAP Definitions
17 © 2021 Cardinal Health. All Rights Reserved. GAAP/Non-GAAP 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. Non-GAAP opera