Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — 42nd Annual J.P. Morgan Healthcare Conference 2024
21 slides from Cardinal Health's conference presentation, Jan 9, 2024
Slide 1: Cardinal Health, Inc. 42nd Annual JP Morgan Conference
Cardinal Health, Inc. nd 42 Annual JP Morgan Conference January 9, 2024 © 2024 Cardinal Health. All Rights Reserved.
Slide 2: Cautions Concerning Forward-Looking Statements
• JP Morgan Conference | 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 iden
Slide 3: Moving Healthcare Forward
Moving Healthcare Forward Jason Hollar Chief Executive Officer 3 © 2024 Cardinal Health. All Rights Reserved.
Slide 4: Healthcare's crucial link
JP Morgan Conference | Mission critical Healthcare’s crucial link ~90% 40K U.S. hospitals served pharmaceutical deliveries a day 20K 20+ specialty physician product categories as integrated offices and clinics medical manufacturer 5K+ 30 sourcing/manufacturer partners across the PET cyclotron facili
Slide 5: Company snapshot
• JP Morgan Conference | Company overview Company snapshot 1 Expecting Operating in more than Approximately $225B+ 30 48,000 in FY24 Revenue2 countries employees globally Pharmaceutical Medical FY23 Revenue: $190B FY23 Revenue: $15B FY23 Segment Profit: $2B FY23 Segment Profit: $111M 1Reflects segme
Slide 6: Taking action to maximize and sustain value at Cardinal Health
• JP Morgan Conference | 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 Appoint
Slide 7: Today's announcements
• JP Morgan Conference | 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 O
Slide 8: Business and portfolio review
JP Morgan Conference | 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 • C
Slide 9: Continuing to simplify our operations and enhance our focus
• JP Morgan Conference | 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 Solu
Slide 10: Our long-term targets: FY24-26
JP Morgan Conference | 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 repur
Slide 11: Long-term financial targets
• JP Morgan Conference | 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 Precisi
Slide 12: Strategic priorities
• JP Morgan Conference | 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 Pharmace
Slide 13: Investing across our businesses
• JP Morgan Conference | 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, a
Slide 14: GMPD elements of the Medical Improvement Plan
• JP Morgan Conference | 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 Str
Slide 15: Our $2.6B revenue at-Home Solutions business continues to accelerate
• JP Morgan Conference | 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 ser
Slide 16: Our $1.2B revenue Nuclear & Precision Health Solutions business
• JP Morgan Conference | 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
Slide 17: Our $250M revenue OptiFreight Logistics business is driving strong growth
• JP Morgan Conference | 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 off
Slide 18: Disciplined Capital Allocation
JP Morgan Conference | 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 settlemen
Slide 19: Compelling investment thesis
JP Morgan Conference | 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, Ex
Slide 20: Appendix
Appendix 20 © 2024 Cardinal Health. All Rights Reserved.
Slide 21: 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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