Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Q2 FY2020 Earnings Presentation
15 slides from Cardinal Health's earnings presentation, Feb 6, 2020
Slide 1: Q2 FY20 Cardinal Health Earnings Call
Q2 FY20 CARDINAL HEALTH, INC. EARNINGS CALL FEBRUARY 6, 2020 1
Slide 2: Forward-looking statements and GAAP reconciliation
Forward-looking statements and GAAP reconciliation Cautions Concerning Forward-Looking Statements This release contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be identified
Slide 3: Q2 results
Q2 results 3
Slide 4: Q2 FY20 financial summary
Q2 FY20 financial summary GAAP Basis ($M) Non-GAAP Basis ($M) Q2 FY20 Q2 FY20 Revenue $39,735 N/A % change 5% Gross Margin $1,714 $1,770 % change (1)% 2% SG&A $1,163 $1,124 % change 9% 3% Operating Earnings $334 $646 % change (34)% 1% Interest & Other 1 $51 N/A % change (48)% Net Earnings 2 $220 $44
Slide 5: Q2 FY20 Pharmaceutical segment results
Q2 FY20 Pharmaceutical segment results Q2 FY20 ($M) Q2 FY19 ($M) YoY change Revenue $35,714 $33,740 6% Segment profit $462 $443 4% Segment profit margin 1.29% 1.31% -2 bps Drivers: Revenue + Pharmaceutical Distribution + Specialty Solutions Segment profit + Generics program + Specialty Solutions - P
Slide 6: Q2 FY20 Medical segment results
Q2 FY20 Medical segment results Q2 FY20 ($M) Q2 FY19 ($M) YoY change Revenue $4,023 $4,006 0% Segment profit $195 $188 4% Segment profit margin 4.86% 4.70% 16 bps Drivers: Revenue + Cardinal Health at Home - Products and distribution Segment profit + Cost savings initiatives - Products and distribut
Slide 7: FY20 outlook
FY20 outlook 7
Slide 8: FY20 financial expectations
FY20 financial expectations FY20 outlook FY19 actual Non-GAAP EPS $5.20 - $5.40 $5.28 Interest and other $260M - $280M $309M Non-GAAP ETR 24.0% - 26.0% 22.1% Diluted weighted average 293M - 296M 301M shares outstanding Incremental cost savings >$130M $133M Capital expenditures $320M - $360M $328M Bo
Slide 9: FY20 segment outlook
FY20 segment outlook Segment Revenue Profit Mid-single digit Low-single digit Pharmaceutical percentage growth percentage decline Low-single digit Low-double digit Medical percentage growth percentage growth Bold indicates updates to the FY20 financial guidance provided on November 7, 2019 9 © 2020
Slide 10: GAAP to Non-GAAP Reconciliation Statements and Supplemental Financial Information
Q2 FY20 GAAP TO NON-GAAP RECONCILIATION STATEMENTS AND SUPPLEMENTAL FINANCIAL INFORMATION 10
Slide 11: GAAP / Non-GAAP Reconciliation
Cardinal Health, Inc. and Subsidiaries 1 GAAP / Non-GAAP Reconciliation Gross Operating Earnings Net Diluted Margin SG&A 2 Earnings Before Provision for Earnings3 Effective EPS3 Gross Growth Growth Operating Growth Income Income Net Growth Tax Diluted Growth Margin Rate SG&A 2 Rate Earnings Rate Tax
Slide 12: GAAP / Non-GAAP Reconciliation
Cardinal Health, Inc. and Subsidiaries 1 GAAP / Non-GAAP Reconciliation Operating Earnings Provision for/ Earnings Before (Benefit From) Net Effective Diluted 2 Operating Growth Income Income Net Earnings Tax Diluted EPS2 2 2 Earnings Rate Taxes Taxes Earnings Growth Rate Rate EPS Growth Rate (in mi
Slide 13: Segment Information
Cardinal Health, Inc. and Subsidiaries Segment Information Second Quarter (in millions) 2020 2019 (in millions) 2020 2019 Pharmaceutical Medical Revenue Revenue Amount $ 35,714 $ 33,740 Amount $ 4,023 $ 4,006 Grow th rate 6% 8% Grow th rate -% (1)% Segment profit Segment profit 1 Amount $ 462 $ 443
Slide 14: 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 15: 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