Cardinal Health, Inc. · NYSE:CAH

Cardinal Health — Investor Day (November 2015)

105 slides from Cardinal Health's investor day presentation, Nov 19, 2015

Slide 2: Investor and Analyst Meeting
Cardinal Health Investor and Analyst Meeting Sally J. Curley SVP, Investor Relations © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved
Slide 3: Agenda
Agenda Customer Experience Modules Welcome! Section 1 • Healthcare, strategy and financial overview • Audience Q&A Break and Customer Experience Modules Section 2 • Pharmaceutical and Medical outlook • An enterprise perspective of how we go to market • Specialist physician panel • Audience Q&A 3 © C
Slide 4: 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 5: We're changing Healthcare
Healthcare is changing. We’re changing Healthcare. George Barrett Chairman and Chief Executive Officer © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved
Slide 6: Polling question: biggest healthcare trend
Polling question: In one word, what is the biggest trend healthcare will face in the next 5 years? 6 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 14: Super Aged
Growth in number of “Super Aged” 13 countries, with 20% of 3 population older than 65 2014 2020 Source: Moody’s 14 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 15: 5% of the population, 50% of spend
5% of the U.S. population responsible for 50% spend Population Spend Source: Health and Human Services 15 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 17: Accounting for both volume and value
Accounting for both volume and value Volume Value Generics Generics Brand Brand Specialty Specialty Source: IMS Source: CVS Health Generics currently represent Specialty is projected to 88% of drug volume for represent dispensed prescriptions 50% of drug spend in 2018 17 © Copyright 2015, Cardinal H
Slide 21: Value-based care
Value-based care Medicare fee-for-service (FFS) payment models 2016 2018 30% 50% 85% 90% All Medicare FFS All Medicare FFS All Medicare FFS FFS linked to quality Alternative payment (Categories 1–4) (Categories 2–4) models (Categories 3–4) Source: Centers for Medicare & Medicaid Services 21 © Copyri
Slide 22: Case study: Tufts Medical Center
Case study: Tufts Medical Center Problem Solution Result Implication 40% increase in Used predictive data Length of stay reduced If ALL hospitals cost per CHF case to empower from 85 days (2013) to performed like the in 2013, longer hospital/MDs to 32 days (2015), top 50, 8,000 lives lengths of stay
Slide 23: Three keys to success
Three keys to success 1 2 3 Right care, Implement new Improve and right time, models and manage cost right setting partnerships 23 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 29: Our strategic priorities are aligned with healthcare growth
Our strategic priorities are aligned with healthcare growth Health System Specialty & Alternate Sites Generics & Hospital International Biopharma of Care Solutions Strong position in Growing Extensive Expanded post-acute settings Top ten distributor customer base upstream solutions CAH Brand & disch
Slide 31: Specialty and Biopharma
Specialty and Biopharma Extensive upstream solutions for biopharma Valuable wraparound services for clinicians Expanding scale and therapeutic reach 31 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 32: Alternate Sites of Care
Alternate Sites of Care Strong position in post-acute settings & discharge management Leader in the home Enhanced physician office footprint 32 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 33: Health System & Hospital Solutions
Health System & Hospital Solutions Expanded CAH Brand consumables Industry-leading physician preference items (PPI) Enterprise-wide solutions 33 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 34: International
International Top ten distributor in China Deep expertise in global sourcing & manufacturing Product presence in over 70 countries 34 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 36: Market performance
Market performance Relative stock price performance post-spinoff1 Total Shareholder Return2 282% 1Relative stock price between 8/31/2009 and 6/30/2015. A $100 Investment made on 8/31/2009 would have grown to $202 for the S&P 500, $260 for the S&P 500 Healthcare Index and $337 for Cardinal Health sto
Slide 37: Market performance
Market performance Relative stock price since FY131 Total Shareholder Return2 118% 1Relative stock price between 6/29/2012 and 11/13/2015. A $100 Investment made on 6/29/2012 would have grown to $149 for the S&P 500, $182 for the S&P 500 Healthcare Index and $204 for Cardinal Health stock. 2Total sh
Slide 38: Growth and resilience
Growth and resilience Revenue ($B) $108 $101 $103 $91 FY12 FY13 FY14 FY15 FY16(E) Non-GAAP Operating Earnings ($B) $2.5 $2.0 $2.1 $1.9 FY12 FY13 FY14 FY15 FY16(E) See appendix for GAAP/non-GAAP definitions and reconciling information. 38 © Copyright 2015, Cardinal Health, Inc. or one of its subsidia
Slide 39: FY11 to FY15 financial performance
FY11 to FY15 financial performance What we said in Dec. 2010 What we delivered Non-GAAP EPS growth ≥ 10% 14.4% CAGR1 Modified TSR ≥ 11% 16.0%2 Gross margin expansion +152 bps Non-GAAP operating margin expansion +81bps Dividend payout ratio increase +3.4 pp3 1Non-GAAP diluted earnings per share from
Slide 40: Investing for long-term sustainable growth
Investing for long-term sustainable growth 1Capital Deployment over five years includes activity in FY11 through FY15. Acquisitions are net of divestitures and do not include The Harvard Drug Group or Cordis. 40 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 41: Recent acquisition highlights
Recent acquisition highlights Acquisition Strategic fit Update Harvard Generics On track to deliver >$0.15 accretion in FY16 Accelerated integration; Metro Medical Specialty ahead of our accretion targets Hospitals and Met target close date for Cordis; Cordis, ACI & ITI ACI & ITI performance ahead o
Slide 42: Shareholder returns
Shareholder returns $1.37 $0.78 FY11 FY12 FY13 FY14 FY15 Dividend per share 1CAGR of annual dividend per share between FY12 and FY15, using FY11 as a base. 42 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 44: Strong and consistent earnings growth
Strong and consistent earnings growth $5.15 – $5.35 Non-GAAP EPS $4.38 Post-Acute $3.84 Specialty $3.73 CAH Brand Products $3.21 $2.80 At Home $2.24 Generics China Customer Focus Cost Efficiency FY10 FY11 FY12 FY13 FY14 FY15 FY16 Guidance See appendix for GAAP/non-GAAP definitions and reconciling in
Slide 45: Pharma segment profit drivers
Pharma segment profit drivers Focus on customers Execute on generics program Drive growth in Specialty Solutions Deliver on recent acquisitions Execute on organic initiatives 45 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 46: Medical segment profit drivers
Medical segment profit drivers Focus on customers Expand on integrated services Grow Cardinal Health Brand Maximize the post-acute setting Focus on efficiencies 46 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 47: December 2013 investor meeting: future aspirations
December 2013 investor meeting: future aspirations Metric FY17 Consolidated non-GAAP operating margin > 3.0% Pharmaceutical segment profit margin > 2.5% Medical segment profit margin > 5.75% Non-GAAP EPS CAGR (from FY14) 10% – 15% Dividend payout (as percent of non-GAAP EPS) 30% – 35% 47 © Copyright
Slide 48: Long-term financial aspirations
Long-term financial aspirations Non-GAAP EPS CAGR Annual Dividend Payout 10 – 15% 30 – 35% Pharma Segment Profit Margin Rate Contract Renewals Customer Mix Generics program Specialty & Brand Launches Acquisitions Services Medical Segment Profit Margin Rate National Brand Customer Mix CAH Brand Produ
Slide 49: Strong and flexible capital base
Strong and flexible capital base OCF generation of > $5B over the last two years Robust Balance Sheet Strong OCF Generation • Healthy leverage ratio • Continued growth in EBITDA • Access to ~$2.5B of borrowing facilities • Disciplined and proven working capital • Commitment to investment grade ratin
Slide 50: Strong, growing businesses
Strong, growing businesses Aligned strategic priorities Great partnerships Disciplined cash deployment Outstanding talent 50 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 51: Q&A with Audience
Q&A with Audience George Barrett Mike Kaufmann Meghan FitzGerald Sally Curley - Moderator © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved
Slide 52: We're changing Healthcare
Healthcare is changing. We’re changing Healthcare. George Barrett Chairman and Chief Executive Officer © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved
Slide 53: Pharmaceutical and Medical Segment Performance and outlook
Pharmaceutical and Medical Segment Performance and outlook Jon Giacomin, Pharmaceutical Segment CEO Don Casey, Medical Segment CEO © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved
Slide 54: Pharmaceutical segment transformation
Pharmaceutical segment transformation FY11 through FY16 We have We have been relentlessly focused on: transformed into a − Executing against our strategic priorities robust segment, − Balancing customer mix with excellent − Building capabilities positioning and − Growth strong growth 54 © Copyright
Slide 55: Pharmaceutical segment revenue
Pharmaceutical segment revenue FY11 FY16 Acute Independents Chain Acute Independents Alt. Care1 Mail Order Chain Specialty International Mail Order Alt. Care1 Specialty International 1Alt. Care includes LTC, Alternate Care, Nuclear and other smaller businesses. 55 © Copyright 2015, Cardinal Health,
Slide 56: Pharmaceutical segment results
Pharmaceutical segment results Q1FY16 Revenue ($M) Segment Profit ($M) $657 $25,140 $21,209 $451 Q1FY15 Q1FY16 Q1FY15 Q1FY16 Q1 FY15 Q1 FY16 Segment profit margin 2.13% 2.62% 56 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 57: Pharma segment profit drivers
Pharma segment profit drivers Focus on customers Execute on generics program Drive growth in Specialty Solutions Deliver on recent acquisitions Execute on organic initiatives 57 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 58: Focus on customers
Focus on customers Stores in 5000 PSAO network >5,000 pharmacies in our PSAO, representing ~3.9M patients lives enrolled 3000 58 FY11 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved. FY16
Slide 59: Execute on generics program
Execute on generics program 47% Growth Generic units sold1 FY11 FY15 1Excludes non-Source sales 59 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 60: Specialty Solutions
Specialty Solutions Revenue $8B Metro Medical Sonexus Health Kew Group Fuse $1B Novis Pharma P4 Healthcare FY11 FY12 FY13 FY14 FY15 FY16 Guidance 60 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 61: Deliver on recent acquisitions and execute on organic initiatives
Deliver on recent acquisitions and execute on organic initiatives Generics China Specialty Operational Excellence Medication Therapy Management (MTM) 61 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 62: Well positioned for sustainable growth
Well positioned for sustainable growth Multiple levers $91,116 Great relationships $80,110 Strong execution 62 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 63: Medical segment results
Medical segment results Q1FY16 Revenue ($M) Segment Profit ($M) $2,919 $113 $2,852 $101 Q1FY15 Q1FY16 Q1FY15 Q1FY16 Q1 FY15 Q1 FY16 Segment profit margin 3.97% 3.45% 63 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 64: Medical segment transformation
Medical segment transformation FY12 through FY16 We have We have been relentlessly focused on: transformed into − World-class distribution and supply chain a highly customer- − New service offerings centric, global − Cardinal Health Brand consumables & PPI organization with − Post-acute and discharg
Slide 65: Medical segment profit
Medical segment profit FY12 FY16 CAH Brand CAH Brand Products Products Services Services Home & National Brand Post-Acute National Brand 65 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 69: Well positioned for accelerated growth
Well positioned for accelerated growth Leverage our legacy $91,116 Aligned for future trends $80,110 Outstanding talent 69 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 71: Scaled solutions spanning the continuum of care
For those navigating the complexities of healthcare… Cardinal Health brings scaled solutions that span the continuum of care and help our customers thrive in a changing world. 71 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 72: Broad perspective of healthcare system
Cardinal Health: Broad perspective of healthcare system Deep understanding of customer needs, issues, pain points Need to provide solutions from across the enterprise that are scaled 72 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 73: Cardinal Health customers
Cardinal Health customers Consumer/ Physician’s Acute Retail Supplier Payer Patient Office Integrated Independent Individuals Pharmaceutical Insurers or Independent Delivery pharmacies, making a or medical other groups physician offices Networks chain specific manufacturers paying for (IDNs) and pha
Slide 75: Enterprise-wide capabilities in four areas
We offer enterprise-wide capabilities in four areas Logistics Business Patient Product Solutions Solutions Solutions Solutions Enabling a more Optimizing the Connecting Providing a efficient way of process and clinicians and comprehensive bringing performance patients healthcare healthcare to of hea
Slide 76: Cardinal Health centers of excellence
Cardinal Health centers of excellence Global Sourcing | Strategic Account Teams | Enterprise Marketing | Operational Excellence | Pricing and Analytics | 360 Program 76 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 77: Solutions for IDNs and acute care provider customers
Solutions for IDNs and acute care provider customers © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved
Slide 78: What is on the minds of our acute care provider customers?
What is on the minds of our acute care provider customers? Care Cost Efficiency 78 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 79: Robust solutions for acute customers
Robust solutions for acute customers Logistics Business Patient Product Solutions Solutions Solutions Solutions Med, Pharma and Supply chain Medication Generics, Brand, Specialty distribution optimization adherence & Specialty products excellence Inventory compliance offerings Direct-to-home 3PL ser
Slide 80: Robust solutions for acute customers: Logistics
Robust solutions for acute customers Delivering products to customers efficiently, Logistics securely, compliantly & at high service levels Solutions Reliable, consistent product delivery enabled by our world-class distribution network Med, Pharma and − 99% fill rates Specialty distribution − 100+ d
Slide 81: Robust solutions for acute customers: Business
Robust solutions for acute customers Business Solutions Optimizing supply chain to reduce cost Pharmacy solutions to improve work flow and productivity Supply chain optimization − Analytics and formulary management capability Inventory Clinical, operational excellence resources management services −
Slide 82: Robust solutions for acute customers: Patient
Robust solutions for acute customers Helping customers follow the patient Patient Solutions OutcomesMTM − Contracting with 40+ U.S. health plans to deliver personalized MTM services to over 5.5 million patients Medication − Network of over 50,000 local chain and independent retail pharmacies adheren
Slide 83: Robust solutions for acute customers: Product
Robust solutions for acute customers Offering industry-leading, value-oriented Product products as a result of our strengths in Solutions sourcing, manufacturing, logistics & operations Comprehensive product portfolio delivering savings to nearly 4,000 customers Generics, Brand, Specialty products D
Slide 84: Physician preference items (PPI)
Physician preference items (PPI) Our definition Our approach Products with historic Products physician preference Services Low clinical differentiation Analytics Pain point for the hospital 84 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 85: Cardinal Health PPI platforms
Cardinal Health PPI platforms Cardiovascular Wound management Negative pressure wound therapy Orthopedics Trauma Surgical products and accessories 85 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 86: PPI solutions: Cordis example
PPI solutions: Cordis example Cordis products + Cardinal Health Inventory Management Solutions + Presource® Products and Services 86 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 87: Post-acute focus: naviHealth
Post-acute focus About naviHealth® Partners with health plans, health systems and providers to manage the post-acute component of the care continuum August 2015 Acquired majority stake in Brentwood, Tenn.-based Strategic alignment naviHealth® Offer the most complete and integrated suite of services
Slide 88: Acute summary
Acute summary We are… Aggressively growing Taking an enterprise approach Cardinal Health brand in key areas to leverage products, services expertise, build efficiency: − Global sourcing − Operational excellence − Strategic Account Teams Working across the − Marketing continuum of care − 360 program
Slide 90: Solutions for retail chain and independent customers
Solutions for retail chain and independent customers © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved
Slide 91: What is on the minds of our retail chain & independent customers?
What is on the minds of our retail chain & independent customers? Care Cost Efficiency 91 © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.
Slide 92: Robust solutions for retail customers
Robust solutions for retail customers Logistics Business Patient Product Solutions Solutions Solutions Solutions Pharma and OTC Inventory Medication Generics, Brand, distribution management adherence and OTC, Specialty Specialty distribution solutions compliance offerings products Independence Manag
Slide 93: Robust solutions for retail customers: Logistics
Robust solutions for retail customers Pharmaceutical, OTC and Specialty distribution Logistics Reliable, consistent product delivery enabled by our large, Solutions efficient distribution network − >99% fill rates − Significantly shortened lead time due to world-class supply chain efficiency Pharma
Slide 94: Robust solutions for retail customers: Business
Robust solutions for retail customers Insight, innovative technology and heritage of Business Solutions healthcare experience Unparalleled insight for end-to-end, demand-driven supply chain Inventory Innovative technology to enable real-time visibility management solutions into inventory Managed car
Slide 95: Robust solutions for retail customers: Patient
Robust solutions for retail customers Helping retailers help their patients Patient Solutions Strengthen their role as a trusted healthcare provider Meet important medication adherence measures that affect CMS Star Ratings Medication adherence and As an extension of customer pharmacy team, help comp
Slide 96: Robust solutions for retail customers: Product
Robust solutions for retail customers Delivering new business opportunities Product Solutions for retailers Private label OTC portfolio carried at 8,000+ U.S. retail locations Hospital-quality portfolio of medical products for retail Generics, Brand, OTC, Specialty products Direct-to-home medical su
Slide 97: Retail summary
Retail summary We are… Focused on new product Taking an enterprise approach in and service offerings to key areas to leverage expertise enable our customers’ and scale to deliver efficiency: − Global sourcing business growth − Operational excellence − Pricing and analytics Providing services that −
Slide 98: Serving the entire continuum of care
Cardinal Health serves the entire continuum of care and meets customer needs with robust solutions Logistics Business Patient Product Solutions Solutions Solutions Solutions Business Medication, Range of operations outcomes and products from World-class services that post-acute Generics to distribut
Slide 99: Q&A with Audience
Q&A with Audience Don Casey Craig Cowman Joe DePinto Jon Giacomin Michael Petras Mike Kaufmann - Moderator © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved
Slide 100: We're changing Healthcare
Healthcare is changing. We’re changing Healthcare. George Barrett Chairman and Chief Executive Officer © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved
Slide 101: Our business is positioned to grow well into the future
Our business is positioned to grow WELL into the future Our strategic priorities are on the right side of healthcare trends We are excellent, disciplined stewards of capital We have strong and valuable strategic partnerships We have a relentless focus on serving our customers, and the patients they
Slide 103: GAAP / Non-GAAP Reconciliation, Fiscal Year 2015
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation Fiscal Year 2015 Operating Earnings Before Provision Earnings Earnings from Diluted EPS Diluted EPS Earnings Income Taxes for from Continuing from from Continuing Operating Growth and Discontinued Income Continuing Operations Cont
Slide 104: GAAP / Non-GAAP Reconciliation
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation Fiscal Year (in millions) 2015 2014 2013 2012 2011 Revenue $ 102,531 $ 91,084 $ 101,093 $ 107,552 $ 102,644 GAAP operating earnings $ 2,161 $ 1,885 $ 996 $ 1,792 $ 1,514 Restructuring and employee severance 45 31 71 21 15 Amortiza
Slide 105: Use of Non-GAAP Measures
Cardinal Health, Inc. and Subsidiaries Use of Non-GAAP Measures This presentation contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). In general, the measures exclude items and charges that (i) management does not believe ref

Cardinal Health — Investor Day (November 2015) on 6ix

Cardinal Health — Investor Day (November 2015)

Slide 1: Welcome

Slide 2: Investor and Analyst Meeting

Slide 3: Agenda

Slide 4: Forward-looking statements and GAAP reconciliation

Slide 5: We're changing Healthcare

Slide 6: Polling question: biggest healthcare trend

Slide 7: Healthcare as we see it

Slide 8: © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.

Slide 9: © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.

Slide 10: © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.

Slide 11: Healthcare trends

Slide 12: Healthcare trends

Slide 13: The consumer of 2020 is not the patient of 2015

Slide 14: Super Aged

Slide 15: 5% of the population, 50% of spend

Slide 16: © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.

Slide 17: Accounting for both volume and value

Slide 18: © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.

Slide 19: © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.

Slide 20: © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.

Slide 21: Value-based care

Slide 22: Case study: Tufts Medical Center

Slide 23: Three keys to success

Slide 24: © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved

Slide 25: © Copyright 2015, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved

Slide 26: Financial Overview

Slide 27: Overview

Slide 28: Positioned on the right side of healthcare

Slide 29: Our strategic priorities are aligned with healthcare growth

Slide 30: Generics

Slide 31: Specialty and Biopharma

Slide 32: Alternate Sites of Care

Slide 33: Health System & Hospital Solutions

Slide 34: International

Slide 35: Overview

Slide 36: Market performance

Slide 37: Market performance

Slide 38: Growth and resilience

Slide 39: FY11 to FY15 financial performance

Slide 40: Investing for long-term sustainable growth

Slide 41: Recent acquisition highlights

Slide 42: Shareholder returns

Slide 43: Overview

Slide 44: Strong and consistent earnings growth

Slide 45: Pharma segment profit drivers

Slide 46: Medical segment profit drivers

Slide 47: December 2013 investor meeting: future aspirations

Slide 48: Long-term financial aspirations

Slide 49: Strong and flexible capital base

Slide 50: Strong, growing businesses

Slide 51: Q&A with Audience

Slide 52: We're changing Healthcare

Slide 53: Pharmaceutical and Medical Segment Performance and outlook

Slide 54: Pharmaceutical segment transformation

Slide 55: Pharmaceutical segment revenue

Slide 56: Pharmaceutical segment results

Slide 57: Pharma segment profit drivers

Slide 58: Focus on customers

Slide 59: Execute on generics program

Slide 60: Specialty Solutions

Slide 61: Deliver on recent acquisitions and execute on organic initiatives

Slide 62: Well positioned for sustainable growth

Slide 63: Medical segment results

Slide 64: Medical segment transformation

Slide 65: Medical segment profit

Slide 66: Services contribution

Slide 67: Cardinal Health at Home

Slide 68: Cardinal Health Brand products

Slide 69: Well positioned for accelerated growth

Slide 70: An Enterprise Perspective

Slide 71: Scaled solutions spanning the continuum of care

Slide 72: Broad perspective of healthcare system

Slide 73: Cardinal Health customers

Slide 74: What's on the minds of our customers?

Slide 75: Enterprise-wide capabilities in four areas

Slide 76: Cardinal Health centers of excellence

Slide 77: Solutions for IDNs and acute care provider customers

Slide 78: What is on the minds of our acute care provider customers?

Slide 79: Robust solutions for acute customers