Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Q2 FY2021 Earnings Presentation
16 slides from Cardinal Health's earnings presentation, Feb 5, 2021
Slide 1: Q2 FY21 Cardinal Health, Inc. Earnings Call
Q2 FY21 CARDINAL HEALTH, INC. EARNINGS CALL FEBRUARY 5, 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: Q2 results
Q2 results 3
Slide 4: Q2 FY21 financial summary
Q2 FY21 financial summary GAAP Basis ($M) Non-GAAP Basis ($M) Q2 FY21 Q2 FY21 Revenue $41,541 N/A % change 5% Gross Margin $1,776 $1,775 % change 4% -- % SG&A $1,147 $1,147 % change (1)% 2% Operating Earnings $4611 $628 % change 38% (3)% Interest & Other2 $34 % change (33)% N/A Net Earnings3 $629 $5
Slide 5: Q2 FY21 Medical segment results
Q2 FY21 Medical segment results Q2 FY21 ($M) Q2 FY20 ($M) YoY change Revenue $4,310 $4,023 7% Segment profit $236 $195 21% Segment profit margin 5.48% 4.86% +62 bps Drivers: Revenue + COVID-19: PPE and lab testing, partially offset by elective procedures Segment profit + COVID-19: Lab testing and PP
Slide 6: Q2 FY21 Pharmaceutical segment results
Q2 FY21 Pharmaceutical segment results Q2 FY21 ($M) Q2 FY20 ($M) YoY change Revenue $37,236 $35,714 4% Segment profit $413 $462 -11% Segment profit margin 1.11% 1.29% -18 bps Drivers: Revenue + Pharmaceutical Distribution + Specialty Solutions Segment profit - COVID-19-related volume declines ▪ Gene
Slide 7: FY21 outlook
FY21 outlook 7
Slide 8: FY21 financial expectations
FY21 financial expectations Updated FY21 Prior FY21 FY20 actual outlook outlook Non-GAAP EPS $5.85 - $6.10 $5.65 – $5.95 $5.45 Interest and other $165M - $185M $190M - $215M $237M Non-GAAP ETR 23.0% - 25.0% 24.0% - 26.0% 25.1% Diluted weighted average 294M - 295M 292M – 296M 295M shares outstanding
Slide 9: FY21 segment outlook
FY21 segment outlook Segment Revenue Profit Mid-single digit percentage Low-single digit percentage Pharmaceutical growth growth High-single to low-double Low to mid-twenties Medical digit percentage growth percentage growth Previously mid to high-single digit percentage growth Previously low-double
Slide 10: Strategic priorities
Strategic priorities • Optimize core businesses • Invest for growth • Deploy capital efficiently • Enhance our global • Specialty Solutions • Prioritize supply chain and investment in the drive commercial • Cardinal Health at- business excellence Home Solutions • Maintain a strong • Maximize all • N
Slide 11: Appendix
Appendix 11
Slide 12: GAAP / Non-GAAP Reconciliation
Cardinal Health, Inc. and Subsidiaries 1 GAAP / Non-GAAP Reconciliation Gross Operating Earnings Provision for/ Net Diluted 2 3 3 Margin SG&A Earnings Before (Benefit from) Earnings Effective EPS Gross Growth Growth Operating Growth Income Income Net Growth Tax Diluted Growth Margin Rate SG&A2 Rate
Slide 13: GAAP / Non-GAAP Reconciliation
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation1 Earnings/ Net Gross Operating (Loss) Provision for/ Earnings/ Diluted Margin SG&A2 Operating Earnings Before (Benefit from) Net (Loss)3 Effective EPS 3 Gross Growth Growth Earnings/ Growth Income Income Earnings/ Growth Tax Dilut
Slide 14: Segment Information
Cardinal Health, Inc. and Subsidiaries Segment Information Second Quarter (in millions) 2021 2020 (in millions) 2021 2020 Pharmaceutical Medical Revenue Revenue Amount $ 37,236 $ 35,714 Amount $ 4,310 $ 4,023 Growth rate 4% 6% Growth rate 7% -% Segment profit Segment profit Amount $ 413 $ 462 Amount
Slide 15: 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 16: 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