Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Q4 FY2009 Earnings Presentation
33 slides from Cardinal Health's earnings presentation, Aug 18, 2009
Slide 1: Essential to care Q4FY2009 and FY2010E Investor/Analyst Call
Essential to care Q4FY2009 and FY2010E Investor/Analyst Call Exhibit 99.3 August 18, 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: Agenda
Agenda Consolidated CAH FY09 financial results Jeff Henderson, Chief Financial Officer New Cardinal Health George Barrett, Post-spinoff: Chairman and CEO nCAH historical adjusted financials and FY10 outlook Jeff Henderson, Chief Financial Officer nCAH Q&A CareFusion Dave Schlotterbeck, Chairman and
Slide 4: Cardinal Health: Essential to care
‘CardinalHealth Essential to care™
Slide 5: Q4 FY2009 Financial Review
Q4 FY2009 Financial Review $25,199 $436 $268 $0.74 $828M 12.7% ($M) 10% (17%) (15%) (16%) % Change ¹ GAAP Basis $25,199 $509 $311 $0.86 14.8% ($M) 10% (9%) (9%) (10%) % Change ¹ Non-GAAP Basis % change over prior year quarter Revenue Operating earnings Earnings from continuing ops Diluted EPS from c
Slide 6: Q4 FY2009 Operating Earnings and EPS
Q4 FY2009 Operating Earnings and EPS Note: Costs associated with the spinoff are as follows: Non-GAAP consolidated diluted EPS from continuing operations for Q4 FY2009 and Q4 FY2008 includes a dilutive impact of $0.01 and $0.02, respectively, from the classification of the company’s UK-based Martind
Slide 7: FY2009 Financial Review
FY2009 Financial Review $99,512 $1,886 $1,143 $3.16 $1.6B 14.1% ($M) 9% (10%) (12%) (11%) % Change ¹ GAAP Basis $99,512 $2,098 $1,256 $3.48 15.4% ($M) 9% (4%) (8%) (7%) % Change ¹ Non-GAAP Basis % change over prior year Revenue Operating earnings Earnings from continuing ops Diluted EPS from continu
Slide 8: FY2009 Operating Earnings and EPS
FY2009 Operating Earnings and EPS Operating Earnings ($M) Diluted EPS from Continuing Operations ¹ Operating Earnings ($M) Diluted EPS from Continuing Operations ¹ GAAP consolidated $1,886 $3.16 $2,092 $3.56 Special items (Note) $177 $0.35 $130 $0.24 Impairments, (gain)/loss on sale of assets and ot
Slide 9: Cardinal Health Business Analysis
Cardinal Health Business Analysis Revenue Segment Profit Q4 FY09 ($M) 21,832 Q4 FY08 ($M) 11% 8% % Change Revenue Segment Profit 1,270 (12%) (32%) Healthcare Supply Chain Services Clinical and Medical Products 24,318 1,119 FY09 ($M) 87,110 1,333 FY08 ($M) 10% 0% % Change 95,718 1,339 Q4 FY09 ($M) Q4
Slide 10: New Cardinal Health
New Cardinal Health Improving the cost-effectiveness of healthcare
Slide 11: FY09 Accomplishments Laying the foundation for New Cardinal Health
FY09 Accomplishments Laying the foundation for New Cardinal Health – Invested to improve the customer experience and strengthen core business – Focused the portfolio – Disciplined management of operating expenses and capital; rationalized infrastructure to prepare for post-spin – Stabilized our chai
Slide 12: New Cardinal Health (nCAH) FY 2010 outlook
New Cardinal Health (nCAH) FY 2010 outlook
Slide 13: nCAH FY 2010 Financial Expectations
nCAH FY 2010 Financial Expectations August 18, 2009 FY10 outlook FY09 adjusted base financials Total revenue growth: Low single digits $96B Non-GAAP EPS : $1.90 - $2.00 $2.26 Non-GAAP diluted earnings per share from continuing operations
Slide 14: nCAH Pharmaceutical Segment FY2010 Business Trends and Expectations
nCAH Pharmaceutical Segment FY2010 Business Trends and Expectations August 18, 2009 – Market factors: – Modest revenue growth – YoY decline in generic launches – Incorporates customer contract repricings – Key strategic moves benefiting the longer-term: – Portfolio repositioning to focus (divestitur
Slide 15: nCAH Medical Segment FY10 Business Trends and Expectations
nCAH Medical Segment FY10 Business Trends and Expectations August 18, 2009 – Market factors: – Modest revenue growth – Positive impact from decreases in raw materials/COGS – Transformational investments: – Medical Transformation accelerating – Progress in ambulatory care channel – investments contin
Slide 16: nCAH FY10 Overall Expectations
nCAH FY10 Overall Expectations August 18, 2009 FY10 outlook FY09 adjusted base financials Non-GAAP effective tax rate ~ 36 - 37% 37% Diluted weighted average shares outstanding ~ 362M ~ 361.5M Interest and other $120M - $130M $128M Capital expenditures $200M - $250M $419M
Slide 17: nCAH: Our Focus in FY 2010
nCAH: Our Focus in FY 2010 – Continue investing to improve the customer experience and strengthen the core – Drive margin improvement – Optimize customer, pricing and supplier processes – Relentlessly manage expenses and capital – Sustained commitment to building upon FY09 regulatory compliance succ
Slide 18: Cardinal Health: Essential to care
CardinalHealth Fssential to care™
Slide 19: Cardinal Health: Essential to care
> a CardinalHealth Essential to care™
Slide 20: New Cardinal Health Historical adjusted financials
New Cardinal Health Historical adjusted financials Unaudited adjusted results reflect the estimated impact of the removal of the CareFusion businesses from the historical financial results of Cardinal Health. These adjusted financial results have been derived from Cardinal Health’s historical consol
Slide 21: Adjusted nCAH Financial Review
Adjusted nCAH Financial Review Non-GAAP Adjusted Financials Fiscal 2009 ($M) Fiscal 2008 ($M) Revenue $95,992 $87,408 Operating Earnings $1,419 $1,437 Earnings from continuing ops $816 $890 Diluted EPS from continuing ops $2.26 $2.45
Slide 22: Pharmaceutical segment adjusted financials Quarterly analysis: FY08 - 09
Pharmaceutical segment adjusted financials Quarterly analysis: FY08 - 09 Q1FY08 Q2FY08 Q3FY08 Q4FY08 FY08 Revenue ($M) 19,277 20,409 19,952 19,861 79,498 Segment Profit ($M) 1,022 Q1FY09 Q2FY09 Q3FY09 Q4FY09 FY09 Revenue ($M) 21,404 22,079 22,118 22,263 87,863 Segment Profit ($M) 1,036
Slide 23: Medical Segment adjusted financials Quarterly analysis: FY08 - 09
Medical Segment adjusted financials Quarterly analysis: FY08 - 09 Q1FY08 Q2FY08 Q3FY08 Q4FY08 FY08 Revenue ($M) 1,883 1,973 2,026 2,035 7,917 Segment Profit ($M) Q1FY09 Q2FY09 Q3FY09 Q4FY09 FY09 Revenue ($M) 2,037 2,057 1,976 2,090 8,159 Segment Profit ($M)
Slide 24: GAAP to Non-GAAP Reconciliation Statements
GAAP to Non-GAAP Reconciliation Statements CARDINAL HEALTH, INC. AND SUBSIDIARIES GAAP / NON-GAAP RECONCILIATION Fourth Quarter 2009 Fiscal Year 2009 (in millions, except per Common Share amounts) GAAP Special Items Other Spin-Off Costs Impairments, (Gain)/Loss on Sale of Assets and Other, Net Non-G
Slide 25: FY2009 and FY2010E Investor/Analyst Call
August 18, 2009 FY2009 and FY2010E Investor/Analyst Call © 2009 CareFusion Corporation or one of its subsidiaries. All rights reserved.
Slide 26: Forward-Looking Statements and GAAP Reconciliation
© 2009 CareFusion Corporation or one of its subsidiaries. All rights reserved. 26 Forward-Looking Statements and GAAP Reconciliation Forward-Looking Statements and GAAP Reconciliation “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forwa
Slide 27: Today's Speakers
© 2009 CareFusion Corporation or one of its subsidiaries. All rights reserved. 27 Today’s Speakers Today’s Speakers Dave Schlotterbeck Chairman and Chief Executive Officer Ed Borkowski Chief Financial Officer
Slide 28: Fiscal 2010 Financial Guidance
© 2009 CareFusion Corporation or one of its subsidiaries. All rights reserved. Fiscal 2010 Financial Guidance FY10 Outlook FY09 Pro Forma Financials ¹ 28 Fiscal 2010 Financial Guidance Total Revenue Growth Mid single digits Flat at $3,707 M Operating Expenses 34% of total revenue 33% of total revenu
Slide 29: Fiscal 2010 Corporate Assumptions
© 2009 CareFusion Corporation or one of its subsidiaries. All rights reserved. Fiscal 2010 Corporate Assumptions FY10 Outlook FY09 Pro Forma Financials 29 1 Fiscal 2010 Corporate Assumptions Adjusted Tax Rate ~25% 16.5% Diluted weighted average shares outstanding ~228M 226M Capital Expenditures $180
Slide 30: FY10 Segment-related Assumptions
© 2009 CareFusion Corporation or one of its subsidiaries. All rights reserved. 30 FY10 Segment-related Assumptions FY10 Segment-related Assumptions Critical Care Technologies assumptions: – Segment revenue grows in mid single digits – Slowdown in hospital capital spending continues to impact segment
Slide 31: Non-GAAP Reconciliations
© 2009 CareFusion Corporation or one of its subsidiaries. All rights reserved. Non-GAAP Reconciliations FY09 Pro Forma ¹ One-Time Items ² FY09 Adjusted Pro Forma ³ 31 Non-GAAP Reconciliations Operating earnings $448 $72M $520M Provision for income taxes $47 $22M $69M Net earnings from continuing ope
Slide 32: Q&A
Q&A © 2009 CareFusion Corporation or one of its subsidiaries. All rights reserved. 32 Q&A
Slide 33: Forward Looking Statements
© 2009 CareFusion Corporation or one of its subsidiaries. All rights reserved. 33 Forward Looking Statements Forward Looking Statements This presentation contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or devel