Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Q1 2022 Earnings Presentation
18 slides from Cardinal Health's earnings presentation, Nov 9, 2021
Slide 1: Q1 FY22 Cardinal Health, Inc. Earnings Call
Q1 FY22 CARDINAL HEALTH, INC. EARNINGS CALL NOVEMBER 9, 2021
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: Q1 results
Q1 results 3
Slide 4: Q1 FY22 financial summary
Q1 FY22 financial summary GAAP Basis ($M) Non-GAAP Basis ($M) Q1 FY22 Q1 FY22 Revenue $43,968 N/A % change 13% Gross margin $1,642 $1,642 % change (4)% (4)% SG&A $1,114 $1,114 % change (2)% 1% Operating earnings $415 $527 % change N.M. (15)% Interest and other1 $36 % change (5)% N/A Net earnings2 $2
Slide 5: Q1 FY22 Pharmaceutical segment results
Q1 FY22 Pharmaceutical segment results Q1 FY22 ($M) Q1 FY21 ($M) YoY change Revenue $39,822 $35,112 13% Segment profit $406 $402 1% Segment profit margin 1.02% 1.14% -12 bps Drivers: Revenue + Pharmaceutical Distribution + Specialty Segment profit + Volume improvements vs. prior year (adversely impa
Slide 6: Q1 FY22 Medical segment results
Q1 FY22 Medical segment results Q1 FY22 ($M) Q1 FY21 ($M) YoY change Revenue $4,149 $3,957 5% Segment profit $123 $230 -46% Segment profit margin 2.97% 5.81% -284 bps Drivers: Revenue + PPE sales - Divestiture of Cordis Segment profit - Elevated supply chain costs - Divestiture of Cordis - Compariso
Slide 7: FY22 outlook
FY22 outlook 7
Slide 8: FY22 financial expectations
FY22 financial expectations FY22 outlook FY21 actual Non-GAAP EPS $5.60 - $5.90 $5.57 Interest and other $150M - $180M $133M Non-GAAP ETR 23.0% - 25.0% 22.8% Previously 23.5% - 25.5% Diluted weighted average 280M - 282M 294M shares outstanding Previously 287M – 292M Capital expenditures $400M - $450
Slide 9: FY22 segment outlook
FY22 segment outlook Segment Revenue Segment Profit Low-double digit Mid-single digit percentage Pharmaceutical percentage growth growth Previously high-single digit percentage growth Mid-single to low-double Medical Approximately flat digit percentage decline Previously low-double digit percentage
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 Low-single digit to mid-single digit segment profit growth in Pharma 1. Strengthening our core Pharmaceutical Distribution business Pharma 2. Fueling our growth businesses: Specialty, Nuclear, Outcomes 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
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation1 Earnings/ Gross Operating (Loss) Provision for/ Net Diluted 2 3 3 Margin SG&A Operating Earnings Before (Benefit from) Net Earnings Effective EPS Gross Growth Growth Earnings/ Growth Income Income Earnings Growth Tax Diluted Grow
Slide 15: GAAP / Non-GAAP Reconciliation Fiscal Year 2021
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 Effective EPS 3 Gross Growth Growth Earnings/ Growth Income Income Earnings/ Growth T
Slide 16: Segment Information First Quarter
Cardinal Health, Inc. and Subsidiaries Segment Information First Quarter (in millions) 2022 2021 (in millions) 2022 2021 Pharmaceutical Medical Revenue Revenue Amount $ 39,822 $ 35,112 Amount $ 4,149 $ 3,957 Growth rate 13 % 5% Growth rate 5% 1% Segment profit Segment profit Amount $ 406 $ 402 Amoun
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, I nc. 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. I nterest and Other, net: other (income)/expense, net plus interest expense, net. Segme