Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Shareholder Meeting (November 2014)
24 slides from Cardinal Health's shareholder meeting presentation, Nov 5, 2014
Slide 1: Annual meeting of shareholders
Annual meeting of shareholders I. Call to order II. Matters to be acted upon Proposal 1 – Election of Directors Proposal 2 – Ratification of the appointment of the company’s independent registered public accounting firm Proposal 3 – Advisory vote on compensation of named executive officers Proposal
Slide 2: Cardinal Health, Inc. 2014 Annual Shareholders Meeting Update
Cardinal Health, Inc. 2014 Annual Shareholders Meeting Update George S. Barrett Chairman and Chief Executive Officer November 5, 2014 © Copyright 2014, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Car
Slide 3: Cautions concerning forward-looking statements
Cautions concerning 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 identifie
Slide 4: Our profile
Our profile Continuing record of financial growth based on strong execution and focus on the right strategic priorities Thoughtful deployment of capital and substantial returns for shareholders Well-positioned for future growth in an evolving healthcare landscape © Copyright 2014, Cardinal Health. A
Slide 5: FY14 and Q1FY15 highlights
FY 14 and Q1FY15 highlights FY14 revenue growth of 8%, excluding impact of Walgreens contract1 FY14 non-GAAP diluted earnings per share from continuing operations (EPS) growth of 3%; growth was 8% excluding tax items2 In FY14, returned $1.1B in cash to shareholders Q1FY15 revenue growth of 13%, excl
Slide 6: Continued innovation in healthcare
Healthcare trends Our priorities are driven by key trends in the healthcare marketplace . . . Demographics Care delivery Increased Transition from Increased and public in more cost- consumerism fee-for-service participation of health issues effective in healthcare to payment for government, driving
Slide 7: Our strategic priorities: Solutions for a system in transition
Our strategic priorities: Solutions for a system in transition Generics Health system and • Continue to build scale and capabilities to deliver value in generics hospital solutions • Reduce IDN pain points with scaled, • Tailored programs to a segmented cost-saving solutions customer base – Physicia
Slide 8: Non-GAAP operating earnings: Historical trend
Non-GAAP operating earnings: Historical trend (In millions) $2,133 $2,046 $1,866 $1,644 $1,394 FY10 FY11 FY12 FY13 FY14 © Copyright 2014, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and 8 ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health
Slide 9: Driving consistent operating margin expansion
Driving consistent operating margin expansion Non-GAAP operating earnings as a percent of revenue (TTM) 2.4% 2.2% 2.0% 1.8% 1.6% 1.4% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 2014 2015 Please see appendix for GAAP/non-GAAP definitions and reconciling information. © Copyright
Slide 10: Thoughtful capital deployment approach
Thoughtful capital deployment approach Cumulative capital deployment post CareFusion spin1 Dividends Capital expenditures Share repurchases Acquisitions, net of divestitures 1 Capital deployment from Q2 FY10 to Q1 FY15. © Copyright 2014, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Car
Slide 11: Returning cash to shareholders through dividends and share repurchases
Returning cash to shareholders through dividends and share repurchases $1,400 +125% or cumulatively $1,200 $3.7B $1,000 $800 $600 $400 $ Millions $200 $0 FY10 FY11 FY12 FY13 FY14 Dividends Paid Share Repurchases © Copyright 2014, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal He
Slide 12: CAH relative price performance
CAH relative price performance1 TSR CAGR 2 $325 $300 CAH 26.7% $275 $250 Relative Price $225 $200 S&P 500 15.5% $175 $150 $125 $100 $75 CAH S&P 500 1 Price data is from 8/31/2009 to 11/4/2014. A $100 investment made on 8/31/2009 would have grown to $320 for CAH and $197 for the S&P 500 as of 11/4/20
Slide 13: Strong portfolio driving growth and positioning for the future
Strong portfolio driving growth and positioning for the future Specialty Alternate sites of care Health system services Preferred products: physician preference Preferred products: medical consumables Targeted international Generics excellence Customer mix shift FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY
Slide 14: It's about our people
It’s about our people 2014 Partnership Founding Member Award Winner Gartner Research #1 Healthcare Supply Chain Organization Three years in a row 2013, 2012, 2011 2014 Amer. Pharmacist Assoc. Finalist H.A.B. Dunning Award © Copyright 2014, Cardinal Health. All rights reserved. CARDINAL HEALTH, the C
Slide 15: Our commitment to community: Select highlights
Our commitment to community: Select highlights >$100K in 21 cities Raised >$1.6M in past five years National program fighting prescription drug abuse Top 10 fundraising team at Cleveland Clinic’s cancer drive Nearly $1M supporting cancer research at >$215K for the American Heart The James Cancer Hos
Slide 16: Well-balanced. Well-prepared. Well-focused.
Cardinal Health, Inc.: Well-balanced. Well-prepared. Well-focused. George S. Barrett Chairman and Chief Executive Officer November 5, 2014 © Copyright 2014, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks o
Slide 17: Financial appendix
Financial appendix © Copyright 2014 Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.
Slide 18: GAAP / Non-GAAP Reconciliation First Quarter 2015
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation First Quarter 2015 Operating Earnings Before Provision Earnings Earnings from Diluted EPS Diluted EPS Earnings Incom e Taxes for from Continuing from from Continuing Operating Grow th and Discontinued Incom e Continuing Operations
Slide 19: GAAP / Non-GAAP Reconciliation Fiscal Year 2014
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation Fiscal Year 2014 Operating Earnings Before Provision Earnings Earnings from Diluted EPS Diluted EPS Earnings Incom e Taxes for from Continuing from from Continuing Operating Grow th and Discontinued Incom e Continuing Operations C
Slide 20: GAAP / Non-GAAP Reconciliation Fiscal Year 2012
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation Fiscal Year 2012 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 21: Total Company Business Analysis First Quarter
Cardinal Health, Inc. and Subsidiaries Total Com pany Business Analysis Non-GAAP First Quarter First Quarter (in millions) 2015 2014 2015 2014 Revenue Amount $ 24,070 $ 24,523 Grow th rate1 (2)% (5)% Operating earnings Amount $ 466 $ 471 $ 566 $ 532 Grow th rate (1)% 3% 6% 13 % Earnings from continu
Slide 22: Total Company Business Analysis Fiscal Year
Cardinal Health, Inc. and Subsidiaries Total Com pany Business Analysis Non-GAAP Fiscal Year Fiscal Year (in millions) 2014 2013 2014 2013 Revenue Amount $ 91,084 $ 101,093 Grow th rate1 (10)% (6)% Operating earnings Amount $ 1,885 $ 996 $ 2,133 $ 2,046 Grow th rate 89 % (44)% 4% 10 % Earnings from
Slide 23: GAAP / Non-GAAP Reconciliation Rolling Quarter
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation Rolling Quarter 2015 2014 2013 2012 2011 (in millions) Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Revenue $ 90,631 $ 91,084 $ 93,610 $ 96,735 $ 99,727 $ 101,093 $ 102,437 $ 104,803 $ 106,648 $ 107,552 $ 107,551 $ 106,705 $
Slide 24: 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 — Shareholder Meeting (November 2014) on 6ix