Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Q1 FY2021 Earnings Presentation
16 slides from Cardinal Health's earnings presentation, Nov 5, 2020
Slide 1: Q1 FY21 Cardinal Health, Inc. Earnings Call
Q1 FY21 CARDINAL HEALTH, INC. EARNINGS CALL NOVEMBER 5, 2020
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 FY21 financial summary
Q1 FY21 financial summary GAAP Basis ($M) Non-GAAP Basis ($M) Q1 FY21 Q1 FY21 Revenue $39,065 N/A % change 5% Gross Margin $1,715 $1,717 % change 2% 2% SG&A $1,137 $1,099 % change 3% 0% Operating Earnings/(Loss)1 $(624) $618 % change N.M. 7% Interest & Other2 $38 N/A % change (52)% Net Earnings/(Los
Slide 5: Q1 FY21 Pharmaceutical segment results
Q1 FY21 Pharmaceutical segment results Q1 FY21 ($M) Q1 FY20 ($M) YoY change Revenue $35,112 $33,428 5% Segment profit $402 $398 1% Segment profit margin 1.14% 1.19% -5 bps Drivers: Revenue + Pharmaceutical Distribution + Specialty Solutions Segment profit + Brand sales mix - COVID-19-related volume
Slide 6: Q1 FY21 Medical segment results
Q1 FY21 Medical segment results Q1 FY21 ($M) Q1 FY20 ($M) YoY change Revenue $3,957 $3,917 1% Segment profit $230 $170 36% Segment profit margin 5.81% 4.33% 148 bps Drivers: Revenue + Cardinal Health at Home Segment profit + Cost savings, including global manufacturing efficiencies = Minimal net imp
Slide 7: FY21 outlook
FY21 outlook 7
Slide 8: FY21 financial expectations
FY21 financial expectations FY21 outlook FY20 actual Non-GAAP EPS $5.65 - $5.95 $5.45 Previously $5.25 - $5.65 Interest and other $190M - $215M $237M Non-GAAP ETR 24.0% - 26.0% 25.1% Diluted weighted average 292M - 296M 295M shares outstanding Capital expenditures $400M - $450M $375M Bold indicates
Slide 9: FY21 segment outlook
FY21 segment outlook Segment Revenue Profit Mid-single digit Low-single digit Pharmaceutical percentage growth percentage growth Mid to high-single digit Low-double digit Medical percentage growth percentage growth Previously low-single digit percentage growth Previously high-single digit percentage
Slide 10: FY21 strategic priorities
FY21 strategic priorities Optimize core businesses • Enhance our global supply chain and drive commercial excellence • Maximize all aspects of our generics program • Continue cost savings initiatives Invest for growth • Specialty Solutions • Cardinal Health at-Home Solutions • Services businesses De
Slide 11: Appendix
Appendix 11
Slide 12: GAAP / Non-GAAP Reconciliation
Cardinal Health, Inc. and Subsidiaries 1 GAAP / Non-GAAP Reconciliation Earnings/ Gross Operating (Loss) Provision for/ Net Diluted Margin SG&A2 Operating Earnings Before (Benefit from) Net Earnings3 Effective EPS3 Gross Growth Growth Earnings/ Growth Income Income Earnings/ Growth Tax Diluted Growt
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&A 2 Operating Earnings Before (Benefit from) Net (Loss)3 Effective EPS3 Gross Growth Growth Earnings/ Growth Income Income Earnings/ Growth Tax Dilut
Slide 14: Segment Information
Cardinal Health, Inc. and Subsidiaries Segment Information First Quarter (in millions) 2021 2020 (in millions) 2021 2020 Pharmaceutical Medical Revenue Revenue Amount $ 35,112 $ 33,428 Amount $ 3,957 $ 3,917 Grow th rate 5% 6% Grow th rate 1% 3% Segment profit Segment profit Amount $ 402 $ 398 Amoun
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