Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Q3 FY2006 Earnings Presentation
20 slides from Cardinal Health's earnings presentation, Apr 27, 2006
Slide 1: 2006 Third Quarter Earnings
2006 Third Quarter Earnings April 27, 2006 Jeff Henderson Chief Financial Officer Financial Review
Slide 2: Forward-Looking and Adjusted Information
Forward-Looking and Adjusted Information Except for historical information, all other information in this presentation consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertai
Slide 3: Today's Agenda
Today's Agenda FY 2006 Q3 Results - Consolidated FY 2006 Q3 Results - Segments FY 2006 2nd Half Focus Items Financial Targets and Goals Other Items
Slide 4: Q3 FY 2006 Recap
Revenue Operating earnings Earnings from continuing operations Diluted EPS Non-recurring and other items Impairment charges and other Equity compensation Operating cash flow Return on equity Q3 FY 2006 Recap $ M % Change 1 $20,638 9% $ 559 (5%) $ 356 (5%) $ 0.83 (3%) $ (0.01) $ 0.01 $ 0.08 $ 271 16.
Slide 5: Operating Earnings and EPS
Operating Earnings and EPS Operating Earnings and EPS
Slide 6: Pharmaceutical Distribution and Provider Services
Cardinal Health Business Analysis Pharmaceutical Distribution and Provider Services Q3 FY '06 Q3 FY '05 $ M $ M % change Revenues $ 17,092 $ 15,516 10% Operating earnings $ 289 $ 335 (14%) Non-recurring and other items $ (2) $ 7 Highlights: Strong customer demand Bulk revenue increased 21% to $7.6 b
Slide 7: Medical Products and Services
Cardinal Health Business Analysis Medical Products and Services Q3 FY '06 Q3 FY '05 $ M $ M % change Revenues $ 2,484 $ 2,473 0% Operating earnings $ 173 $ 182 (5%) Highlights: Expected loss of largest customer in Specialty Pharmaceutical Distribution business during Q3 negatively impacted revenue g
Slide 8: Pharmaceutical Technologies and Services
Cardinal Health Business Analysis Pharmaceutical Technologies and Services Q3 FY '06 Q3 FY '05 $ M $ M % change Revenues $ 715 $ 677 6% Operating earnings $ 78 $ 80 (2%) Highlights: Stable performance within oral manufacturing Strong performance from packaging services Good sequential improvements a
Slide 9: Clinical Technologies and Services
Cardinal Health Business Analysis Clinical Technologies and Services Q3 FY '06 Q3 FY '05 $ M $ M % change Revenues $ 603 $ 522 15% Operating earnings $ 101 $ 59 73% Highlights: Strong demand for both Pyxis and Alaris products - strong committed contract volume New customer contract wins drive Pyxis
Slide 10: FY 2006 - 2nd Half Focus Items
FY 2006 - 2nd Half Focus Items Improving fundamentals will drive margin enhancement Focus on increasing ROIC / ROE Good balance sheet management Disciplined capital deployment Building capabilities
Slide 11: FY 2006 - 2nd Half Metrics
FY 2006 - 2nd Half Metrics All figures GAAP, except as noted
Slide 12: Financial Targets & Goals
Financial Targets & Goals Long-Term Financia Goals (yer any rolling Syear period ‘One Year Targets Fiscal Yeor 2006 Revenue +8- 10% In inewith longterm goa! ers ' +12. 15% [ss.00 - $55 per share (abo eludes equity compensation of $0.95 to $037 per share) Gperating [FIO GE” growth lSeament Reerue | E
Slide 13: Financial Targets & Goals
Financial Targets & Goals Long-Term Financial Goals (yer sny rolling 3 year period ‘One Year Targets Fiscal Yeor 2005 Revenue +8- 10% In tine with tong term goal = +12. 6% fs3:0- $3.66 per share (ako excludes equity compensation of $0.36 to $0.57 per share) Operating |FYOS OF "growth Segment Revenue
Slide 14: Conclusion
Conclusion CardinalHealth “
Slide 15: Q&A
Q&A CardinalHealth
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Slide 20: Cardinal Health
> CardinalHealth Working together. For life.”