Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Lehman Brothers 11th Annual Global Healthcare Conference (March 2008)
18 slides from Cardinal Health's conference presentation, Mar 18, 2008
Slide 1: Essential to care: Lehman Brothers Global Healthcare Conference
Essential to care Exhibit 99.1 Lehman Brothers 11 Annual Global Healthcare Conference R. Kerry Clark, Chairman and CEO Sally J. Curley, SVP, IR Jon Lyons, Director, IR th
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: Key themes: FY08
Key themes: FY08 1 2 3 4 Focusing on the core and leveraging scale Rebuilding the pharmaceutical distribution business via superior execution Leveraging the growth potential of CMP Maintaining a shareholder-focused capital deployment strategy
Slide 4: Focusing on the core, leveraging scale
Focusing on the core, leveraging scale Safety Productivity HSCS CMP Mission: To make healthcare safer and more productive HSCS-Pharmaceutical HSCS-Medical Clinical Technologies & Services Medical Products & Technologies
Slide 5: Focusing on the core, leveraging scale
Focusing on the core, leveraging scale HSCS CMP HSCS-Pharmaceutical HSCS-Medical Pharmaceutical Distribution Nuclear Pharmacy Services Medical/Surgical Distribution Presource ® Kitting Clinical Technologies & Services Medical Products & Technologies* Infusion Dispensing Infection Prevention Respirat
Slide 6: Focusing on the core, leveraging scale
Focusing on the core, leveraging scale • We are executing on our stated capital deployment strategy • Sector organizations are in place • Executive leadership team is in place • Hospital salesforce integration is complete • Integration of HSCS in Dublin is on schedule • We are performing well in CMP
Slide 7: Rebuilding pharma distribution: Accomplishments
Rebuilding pharma distribution: Accomplishments • New leadership in place • Most major contracts recently renewed • Dedicated focus on all key sales channels • Improved customer profitability measures • New generic plan for regional chains and independents • Enhanced distribution center operational
Slide 8: Rebuilding pharma distribution: Near-term
Rebuilding pharma distribution: Near-term Expectations: • Calendar year 2008 (CY08) should be good for generics • Anticipate branded pharma pricing increasing mid-single digit percentages • CAH should grow revenue at, or slightly faster than, market due to customer mix • No significant additional co
Slide 9: Leveraging the growth potential of CMP
Leveraging the growth potential of CMP • Business model remains very strong with revenue up 24% and profit up 44% (H1 FY’08) • Goal to be 35-40% of total segment profit by 2010 • CMP has significant opportunities internationally • New product pipeline is strong • Medication management and infection
Slide 10: MPT: Enturia acquisition
MPT: Enturia acquisition • Strong strategic fit with existing infection prevention business • Clinically preferred solution in proprietary application technology • 2007 revenues ~$140M • $490M cash transaction • Slightly dilutive to remainder of FY08, but remain within previous FY08 non-GAAP EPS gui
Slide 11: Viasys integration update
Viasys integration update • Developed three-year roadmap of global integration initiatives to achieve cost / revenue synergies • Integration into MPT going well; on-track to achieve one- and three-year commitments – Completed organizational and key process integration – Achieved first phase of opera
Slide 12: Cardinal Health
CardinalHealth
Slide 13: Guidance
Guidance • Reaffirm FY08 non-GAAP EPS of $3.75 - $3.85 per share • FY09 guidance – FY09 guidance part of Q4 FY08 earnings release/conference call in early August
Slide 14: Key themes: FY08
Key themes: FY08 1 2 3 4 Focusing on the core and leveraging scale Rebuilding the pharmaceutical distribution business via superior execution Leveraging the growth potential of CMP Maintaining a shareholder-focused capital deployment strategy
Slide 15: Cardinal Health: Essential to care
> a CardinalHealth Essential to care™
Slide 16: GAAP / Non-GAAP Reconciliation: Return on Equity and Invested Capital
(CARDINAL HEALTH, INC. AND SUBSIDIARIES: {in mitions) GAAP Return on Equity Non-GAAP Return on Equity Net earnings ‘Special tema, net ota, in contin operations ‘Special tems. net ofa, in discontinued operations Incame tax benef ested o PTS dlecantnved operations ‘Adjusted net earings Annualzes Divid
Slide 17: GAAP / Non-GAAP Reconciliation: Tax Rate and Debt
CARDINAL HEALTH, INC. AND SUBSIDIARIES GAAP / NON-GAAP RECONCILIATION Second Quarter Year-to-Date, {in millions) 2008, 2007 2008, ‘2007 GAAP Effective Tax Rate from Continuing Operations 30.7% 34.2% 31.4% 32.0% Non-GAAP Effective Tax Rate from Continuing Operations. ings before income taxes and disc
Slide 18: Definitions
CARDINAL HEALTH, INC. AND SUBSIDIARIES DEFINITIONS : long-term obligations plus short-term borrowings Debt to Total Capital: debt civided by (debt plus total shareholders! equity) Diluted EPS from Continuing Operations: earings from continuing operations divided by diluted weighted average shares ou
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