Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — 39th Annual J.P. Morgan Healthcare Conference (January 2021)
21 slides from Cardinal Health's conference presentation, Jan 11, 2021
Slide 1: Cardinal Health, Inc. 39th Annual JP Morgan Conference
Cardinal Health, Inc. 39th Annual JP Morgan Conference Mike Kaufmann Chief Executive Officer January 11, 2021
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: We are
We are 3 © 2021 Cardinal Health. All Rights Reserved.
Slide 4: Driving growth to advance healthcare and improve lives
Driving growth Driving to advance healthcare growth to and improve advance healthcare lives and improve lives Globally integrated Creating patient-centric healthcare services and solutions products company so our customers can address a distributor of pharmaceuticals; healthcare’s most global manufa
Slide 5: Essential facts about Cardinal Health
Essential facts about Cardinal Health Approximately $153B Operations in more than 48,000 of revenue in FY20 40 countries employees worldwide 5 © 2021 Cardinal Health. All Rights Reserved.
Slide 6: Our breadth and scale
Our breadth and scale We serve roughly 90% Every day, we serve We serve more than We manufacture and We serve more of U.S. hospitals through more than 29,000 U.S. 3.4 million U.S. distribute more than than 10,000 U.S. our pharmaceutical or pharmacies. These include patients with more 50,000 types of
Slide 7: Consistent track record
Consistent track record FY19 FY20 Grow non-GAAP EPS; exceed initial guidance range Exceed enterprise cost savings target Strengthen balance sheet through debt paydown Make strategic portfolio decisions1 Return cash to shareholders 1 FY19: Acquisitions of Mirixa® and mscripts®. FY20: Divested minorit
Slide 8: FY20 financial summary
FY20 financial summary Revenue ($M) $152,922 % change +5% Non-GAAP Operating Earnings1,2 ($M) $2,384 % change +1% Non-GAAP Diluted EPS2,3 $5.45 % change +3% Operating Cash Flow ($B) $2.0 1FY20 GAAP operating loss was $(4,098)M 2GAAP results include a pre-tax charge of $5.63 billion ($5.14 billion af
Slide 9: Two financial reporting segments
Two financial reporting segments Pharmaceutical Medical FY20 FY20 FY20 FY20 revenues segment profit revenues segment profit $137.5B $1.8B $15.4B $663M 9 © 2021 Cardinal Health. All Rights Reserved.
Slide 10: Pharmaceutical segment
Pharmaceutical segment Key capabilities • Distribute branded, generic, and specialty pharmaceuticals and over-the-counter healthcare and consumer products Pharmaceutical Distribution • Provide end-to-end logistics and technology solutions for Specialty Solutions manufacturers, pharmacies and healthc
Slide 11: Medical segment
Medical segment Key capabilities • Manufacture, source, and distribute Cardinal Health branded medical, surgical, and laboratory products Medical Products • Distribute a broad range of national brand medical, surgical, Medical Products Distribution and laboratory products to acute and alternate site
Slide 12: Demonstrating resilience
Demonstrating resilience Key COVID-19 responses • Maintained operations in all distribution facilities, nuclear pharmacies, and global manufacturing plants • Leveraged Red Oak’s sourcing capabilities to minimize disruptions to the pharmaceutical supply chain • Acquired additional equipment to expand
Slide 13: Strategic priorities
Strategic priorities • Optimize core businesses • Invest for growth • Deploy capital efficiently • Enhance our global • Prioritize investment in • Specialty Solutions the business supply chain and drive commercial excellence • Cardinal Health at- • Maintain a strong Home Solutions • Maximize all asp
Slide 14: Our differentiated portfolio
Our differentiated portfolio Our differentiated portfolio blends core distribution and product offerings with strategic assets positioned for strong growth Investing for growth in areas with: • Favorable industry trends and Specialty at-Home strong outlooks Solutions Solutions Optimizing core • Comp
Slide 15: Deploy capital in a disciplined and thoughtful way
Deploy capital in a disciplined and thoughtful way Capital allocation priorities Focused on maintaining flexibility and generating significant long-term value Investing in key areas of our business to enable Invest in the business our strong pipeline for organic growth Higher Priority Committed to t
Slide 16: Cardinal Health investment thesis
Cardinal Health investment thesis • Resilient business models ̶ Expected growth in both segments despite COVID-19 headwind of lower volumes • Increasing healthcare demand ̶ Favorable healthcare trends and patient demographics increase demand for our services • Focused on driving efficiencies ̶ On pa
Slide 17: We are
We are 17 © 2021 Cardinal Health. All Rights Reserved.
Slide 18: Appendix
Appendix GAAP to non-GAAP reconciliation statements and supplemental financial information
Slide 19: GAAP / Non-GAAP Reconciliation
Cardinal Health, Inc. and Subsidiaries 1 GAAP / Non-GAAP Reconciliation Operating Earnings/ Net Gross Earnings/ (Loss) Provision for/ Earnings/ Diluted Margin SG&A2 Operating (Loss) Before (Benefit from) Net (Loss)3 Effective EPS3 Gross Growth Growth Earnings/ Growth Income Income Earnings/ Growth T
Slide 20: 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 21: 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
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