Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Q2 FY2006 Earnings Presentation
18 slides from Cardinal Health's earnings presentation, Jan 26, 2006
Slide 1: 2006 Second Quarter Earnings Financial Review
2006 Second Quarter Earnings January 26, 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 Q2 Results - consolidated FY 2006 Q2 Results - segments FY 2006 2nd Half Focus Items Financial Targets and Goals Other Items
Slide 4: Q2 FY 2006 Recap
$ M % change Revenue $19,919 7% Operating earnings* $ 505 18% Net earnings* $ 321 15% Diluted EPS* $ 0.74 16% Non-recurring charges $ 0.01 Equity compensation $ 0.08 Operating cash flow $ 661 Return on equity** 16.2% Q2 FY 2006 Recap * Before special items and discontinued operations ** Before speci
Slide 5: Operating Earnings and EPS
Operating Earnings and EPS Operating Earnings EPS Q2 FY '06 Q2 FY '05 $484M $21M $65M $103M $326M $56M $2M $3M Q2 FY '06 Q2 FY '05 $0.70 $0.04 $0.10 $0.16 $0.48 $0.08 $0.01 $0.00
Slide 6: Pharmaceutical Distribution and Provider Services
Cardinal Health Business Analysis Pharmaceutical Distribution and Provider Services Q2 FY '06 Q2 FY '05 $ M $ M % change Revenues $ 16,202 $ 15,059 8% Operating earnings $ 240 $ 207 16% Non-recurring and other items $ (3) Highlights: Strong customer demand Efficient inventory management and expense
Slide 7: Medical Products and Services
Cardinal Health Business Analysis Medical Products and Services Q2 FY '06 Q2 FY '05 $ M $ M % change Revenues $ 2,595 $ 2,427 7% Operating earnings $ 153 $ 154 (1%) Highlights: Solid execution of sourcing strategy - yielding good results Manufacturing network reconfiguration improving cost structure
Slide 8: Pharmaceutical Technologies and Services
Cardinal Health Business Analysis Pharmaceutical Technologies and Services Q2 FY '06 Q2 FY '05 $ M $ M % change Revenues $ 760 $ 752 1% Operating earnings $ 79 $ 83 (5%) Highlights: Continued progress on previously identified issues Strong earnings from oral technologies Improvement in Sterile opera
Slide 9: Clinical Technologies and Services
Cardinal Health Business Analysis Clinical Technologies and Services Q2 FY '06 Q2 FY '05 $ M $ M % change Revenues $ 603 $ 547 10% Operating earnings $ 94 $ 70 34% Non-recurring and other items $ 3 Highlights: Strong demand for both Pyxis and Alaris products - strong committed contract volume New cu
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 Half Metrics
FY 2006 — 2 Half Metrics Actual Forecast 17 Half 2° Half - FY 2006 FY 2006 vs. H1 06 vs. H2‘05 Operating Margin POPS 1.87% Higher Lower MPS 5.89% Higher Higher PTS 8.40% Higher Higher cts 14.61% Higher Higher Consolidated” 2.64% Higher Lower ROE” 16.02% Higher Stable “Excludes special items and equi
Slide 12: Financial Targets & Goals
Financial Targets & Goals Long-Term Financial Goals ‘One Year Targets (ver any raliing year period Fiscal Year 2006 Revenue +8105 tne with long-term goal les * $1168 [ss 30 - 50.58 per share * (exchdes equty compensation of 9.82 w $0 34 per share) Operating |FYO6 OF“ growth lseament Revenue | Earnin
Slide 13: Financial Targets & Goals
Financial Targets & Goals Long-Term Financial Goals ‘One Year Targets Over any raling 3 year period Fiscal Year 2006 Revenue +8103 nine with long-term goal es * 12188 [s.80- $0.56 parshare * @oludes equityoompensation 0180.32 to 40 34per share) ‘Operating |FV06 OE growth seqment Revenue | Eamings* v
Slide 14: Other Items: Segment reporting change
Other Items Segment reporting change
Slide 15: Q&A
Q&A CardinalHealth
Slide 16: —,, ae —oe ang
—,, ae —oe ang
Slide 17: GAAP / Non-GAAP Reconciliation
Slide 18: Cardinal Health
> CardinalHealth Working together. For life.”