Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Cardinal Health, Inc. Conference Call (January 2024)
19 slides from Cardinal Health's conference presentation, Jan 9, 2024
Slide 1: Cardinal Health, Inc. Conference Call
Cardinal Health, Inc. Conference Call January 9, 2024 © 2024 Cardinal Health. All Rights Reserved.
Slide 2: Forward-looking statements
• CAH Conference Call | Forward-looking statements 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: Moving Healthcare Forward
Moving Healthcare Forward Jason Hollar Chief Executive Officer Aaron Alt Chief Financial Officer 3 © 2024 Cardinal Health. All Rights Reserved.
Slide 4: Today's announcements
• CAH Conference Call | Our progress Today’s announcements Continuing to simplify our operations and enhance our focus 1 Achieved further progress on our ongoing business and portfolio review • Completed review of growth businesses within Medical: investing in and developing at-Home Solutions and Op
Slide 5: Business and portfolio review update
CAH Conference Call | Business and portfolio review update Business Strategy • Core strategic alignment and portfolio • Synergies/dis-synergies review Operational performance framework • Financial results • Long-term growth prospects Key considerations Value • Intrinsic value Key considerations • Ca
Slide 6: Continuing to simplify our operations and enhance our focus
• CAH Conference Call | Business and portfolio review update Continuing to simplify our operations and enhance our focus Building upon our progress and plans from Investor Day Cardinal Health 1 Continue path towards becoming a simplified and more focused company 2 Prioritize Specialty, at-Home Solut
Slide 7: Our long-term targets: FY24-26
CAH Conference Call | Long-term targets Our long-term targets: FY24-26 (FY23 Baseline) 4% to 6% ~$300M 8% to 10% at least 12% to 14% Growth CAGR in FY26 Growth CAGR $2.25B Growth CAGR Pharma and Share non-GAAP diluted Specialty Solutions GMPD Other Segment Profit Segment Profit Segment Profit repurc
Slide 8: Long-term financial targets
• CAH Conference Call | Updated segment structure Long-term financial targets Pro-forma, updated segment reporting1 FY23 Actuals2 Long-Term Target Businesses Revenue: Pharmaceutical ~$188.8B 4% to 6% Former Pharmaceutical Segment, and Specialty Solutions Segment Profit excluding Nuclear and Precisio
Slide 9: Updated strategic priorities
• CAH Conference Call | Updated strategic priorities Strategic priorities Ruthless prioritization, resilient core and relentless focus 1 2 3 4 Build upon the Execute Medical Accelerate Relentless growth and Improvement growth in key focus on resiliency of Plan initiatives areas shareholder Pharmaceu
Slide 10: Investing across our businesses
• CAH Conference Call | Empowering our growth Investing across our businesses Pharmaceutical and Specialty Solutions Global Medical Products and Distribution at-Home Solutions, NPHS and OptiFreight® Logistics New distribution facilities, such as our Consumer Health Distribution Network expansion, at
Slide 11: GMPD elements of the Medical Improvement Plan
• CAH Conference Call | Medical Improvement Plan GMPD elements of the Medical Improvement Plan The previously announced Medical Improvement Plan target of at least $650M of segment profit by FY26 continues… with elements of that plan to reside in the results of both GMPD and Other Growth Target Stra
Slide 12: Our $2.6B revenue at-Home Solutions business continues to accelerate
• CAH Conference Call | Empowering care in the home Our $2.6B revenue at-Home Solutions business continues to accelerate Through focused investments to meet growing demand for home healthcare Breadth and scale1 Complementary business units connected through quality care in the home ~5M patients serv
Slide 13: Our $1.2B revenue Nuclear & Precision Health Solutions business is positioned to win
• CAH Conference Call | Empowering precision healthcare Our $1.2B revenue Nuclear & Precision Health Solutions business is positioned to win With differentiated offerings, deep radiopharmaceutical expertise and established industry partnerships Breadth and scale1 Unmatched national network Growing m
Slide 14: Our $250M revenue OptiFreight Logistics business is driving strong growth
• CAH Conference Call | Empowering the digital supply chain Our $250M revenue OptiFreight® Logistics business is driving strong growth By delivering value and efficiencies for our customers Breadth and scale1 Digital supply chain solutions Customer digital platforms Leading logistics management offe
Slide 15: Disciplined Capital Allocation
CAH Conference Call | Capital deployment Table stakes FY24 Progress Investing back into the business to drive $92M in capex in Q1 organic growth Disciplined Maintain investment Two positive outlook updates from credit rating agencies Capital grade balance sheet Completed 3rd annual opioid settlement
Slide 16: Taking action to maximize and sustain value at Cardinal Health
CAH Conference Call | Shareholder value creation Taking action to maximize and sustain value at Cardinal Health Value creation initiatives to-date1 Strategy and Capital Financial Governance and operations deployment performance portfolio Executed Returned over $3.3B Fiscal 24 non-GAAP EPS Appointed
Slide 17: Compelling investment thesis
CAH Conference Call | Shareholder value creation Compelling investment thesis Moving healthcare forward Pharmaceutical and Medical Products Other Growth Cash flow and Value creation Specialty Solutions and Distribution Areas capital deployment Relentlessly focused Resilient and growing business, Exe
Slide 18: Appendix
Appendix 18 © 2024 Cardinal Health. All Rights Reserved.
Slide 19: Forward Looking Non-GAAP Measures
Forward Looking Non-GAAP Measures In this presentation, 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 measure can be dependent on future ev
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