Cardinal Health, Inc. (NYSE:CAH) 41st Annual J.P. Morgan Healthcare Conference January 9, 2023 1:30 PM ET Company Participants Jason Hollar - Chief Executive Officer Conference Call Participants Lisa Gill - JPMorgan Lisa Gill Good morning. My name is Lisa Gill and I'm the healthcare services analyst with J.P. Morgan. It is with great pleasure this morning that we have with us Cardinal Health. Presenting for Cardinal Health is CEO, Jason Hollar. Post Jason's presentation, he and I will sit down for a quick f ...

Cardinal Health Inc. 41st Annual JP Morgan Conference January 9, 2023 Jason Hollar Chief Executive Officer ...

Summary of Cardinal Health, Inc. Conference Call Company Overview - **Company**: Cardinal Health, Inc. (NYSE: CAH) - **Event**: Evercore ISI 5th Annual Healthcare Conference - **Date**: November 30, 2022 Key Industry Insights - **Medical Improvement Plan**: Cardinal Health is focused on improving its medical segment, which has been significantly impacted by inflation and global supply chain constraints. The company aims to achieve at least $650 million in segment profit by fiscal 2025 [4][10]. - **PPE Market Trends**: The company has experienced volatility in the Personal Protective Equipment (PPE) market, with pricing still elevated compared to pre-pandemic levels. The expectation is for prices to normalize as inventory levels stabilize [12][18][21]. - **Inflation Mitigation**: Cardinal Health is on track to mitigate $300 million of inflation impact in fiscal 2023, with expectations to reach a 50% mitigation rate by the end of the fiscal year [5][23][30]. Financial Performance - **Q1 Results**: The first quarter results were consistent with expectations, driven by a resilient demand environment. The company reported a 5% earnings growth in the prior year [3][7]. - **Shareholder Value**: Cardinal Health has committed to returning $1.5 billion to $2 billion to shareholders through share repurchases and dividends, with $1 billion already completed in Q1 [9][10]. Strategic Focus Areas - **Brand Portfolio Optimization**: The company is focused on optimizing and growing its Cardinal Health brand portfolio through new product innovation and capacity investments [6][7]. - **Pharmaceutical Segment Growth**: The pharmaceutical segment remains a priority, with investments in specialty areas and restructuring to enhance efficiency and decision-making [8][54]. - **Biosimilars Opportunity**: The company sees potential in the biosimilars market, particularly with the upcoming generic version of Humira, although significant contributions are expected to materialize in 2024 and beyond [60][64]. Operational Challenges - **Cost Pressures**: Labor costs and inflation remain elevated, impacting the company's margins. Cardinal Health is working to pass through these costs to customers while maintaining competitive pricing [42][51][44]. - **Inventory Management**: The company has faced challenges with high inventory costs and is working to normalize inventory levels while managing customer demand [12][15][19]. Governance and Future Outlook - **Board Enhancements**: Cardinal Health has added four new board members and established a Business Review Committee to support strategic reviews [10]. - **Future Focus**: The company anticipates continued focus on the medical improvement plan, capital deployment strategies, and the performance of its pharmaceutical segment in the upcoming fiscal year [76][78]. Additional Insights - **Customer Relationships**: Cardinal Health emphasizes the importance of strong relationships with customers across both medical and pharmaceutical segments, which can lead to synergies and cost efficiencies [66][68]. - **Investment in Technology**: The company plans to invest in automation and technology to enhance operational efficiency, particularly in distribution centers [72][73]. This summary encapsulates the key points discussed during the conference call, highlighting Cardinal Health's strategic priorities, financial performance, and operational challenges.

Summary of Cardinal Health, Inc. Conference Call Company Overview - **Company**: Cardinal Health, Inc. (NYSE: CAH) - **Event**: 40th JPMorgan Annual Healthcare Conference - **Date**: January 10, 2022 - **Participants**: - Mike Kaufmann - CEO - Jason Hollar - CFO - Lisa Gill - JPMorgan Healthcare Services Analyst Key Points Company Aspirations and Strategy - Cardinal Health aims to be healthcare's most trusted partner by focusing on customer needs and delivering innovative healthcare solutions [3][4] - The company is investing in technology and analytics to drive future growth and address complex healthcare challenges [4] Financial Performance - Fiscal 2021 revenue was $162 billion, with a 6% year-over-year growth despite a $200 million headwind from COVID-19 [4][6] - Non-GAAP EPS grew, and the company returned approximately $800 million to shareholders through dividends and share repurchases [6] - The company paid down approximately $550 million of debt, strengthening its balance sheet [6] Business Segments - Cardinal Health operates in two segments: Pharmaceutical and Medical - **Pharmaceutical Segment**: Generated $146 billion in revenue and $1.7 billion in profit [8] - **Medical Segment**: Generated $16.7 billion in revenue and $577 million in profit [8] Market Position and Operations - Serves approximately 90% of U.S. hospitals and over 60,000 U.S. pharmacies [4][5] - Operates a network of over 130 nuclear pharmacies and more than 30 nuclear manufacturing facilities [5] Challenges and Supply Chain Issues - The medical segment is facing significant inflationary pressures, with an estimated impact of $150 million to $175 million due to increased costs in freight and commodities [29][30] - The company is experiencing lower volumes and challenges in pricing strategies due to supply constraints [30] Strategic Priorities - Cardinal Health is focused on optimizing core businesses, investing for growth, and deploying capital efficiently [13] - The company has increased its cost savings target by $250 million to a total of $750 million by FY '23 [14] Growth Opportunities - The company sees significant growth potential in specialty distribution, at-home healthcare, and advancements in supply chain technology [18][19] - Investments in digital capabilities and expanding warehouse networks are underway to support the at-home solutions business, which is now valued at $2.2 billion [21] Shareholder Returns - A new three-year authorization for share repurchases of up to $3 billion was approved, with expectations of approximately $1 billion in share repurchases for FY '22 [23] Long-term Financial Targets - Cardinal Health aims for double-digit combined EPS growth and a commitment to dividend yield [24] - The company is targeting a 50% reduction in Scope 1 and Scope 2 greenhouse gas emissions by 2030 [24] Conclusion - Cardinal Health is positioned to benefit from favorable healthcare trends, including an aging population and shifts towards home care [25] - The company is committed to addressing current challenges while focusing on long-term growth and shareholder value [26]

Summary of Cardinal Health, Inc. Conference Call Company Overview - **Company**: Cardinal Health, Inc. (NYSE: CAH) - **Event**: Barclays Global Healthcare Conference Call - **Date**: March 9, 2021 - **Participants**: - Mike Kaufmann - Chief Executive Officer - Steven Valiquette - Healthcare Services Analyst at Barclays - Kevin Moran - Investor Relations Key Points Industry Resilience - The COVID-19 pandemic has highlighted the resiliency of the drug distribution industry, particularly for Cardinal Health's medical and pharmaceutical segments [4][5] Financial Performance - Medical segment growth is expected in the low to mid-20s percentage range for the year, driven by cost efficiency and supply chain improvements [4] - Pharmaceutical segment anticipates low single-digit growth, with volumes being inconsistent but resilient [5] Vaccine Rollout and COVID-19 Impact - The faster-than-expected vaccine rollout is seen as a positive development, with expectations to reach pre-COVID levels by the end of June [8][9] - Monitoring of COVID-19 variants and vaccination rates is ongoing, as these factors will influence patient behavior and elective procedures [8] Pharmaceutical Distribution Insights - The nuclear pharmacy segment has faced challenges but is showing signs of recovery, with slight improvements noted from Q1 to Q2 [11] - Generic drug distribution has been impacted more severely than brand drugs due to COVID-19, but recovery is expected [10] Specialty Business Growth - The specialty business is growing, with opportunities identified in acute care hospitals and retail spaces [15][17] - Investments in upstream services and potential M&A opportunities are being considered to accelerate growth in the specialty segment [17] Generics Program - Continuous improvement in the generics program is a priority, focusing on pricing strategies and supply chain management to enhance profitability [19][20][22] Opioid Litigation - The company is maintaining a disciplined approach to capital deployment amid ongoing opioid litigation discussions, prioritizing core business investments and maintaining an investment-grade balance sheet [23][24] Biosimilars and Drug Price Reform - Positive outlook on biosimilars, with expectations for increased profitability and growth opportunities through GPO initiatives [27][29] - Uncertainty remains regarding the impact of drug price reform under the new administration, but the majority of Cardinal Health's drug margins are insulated from inflation [31][32] Medical Segment Outlook - Anticipation of increased elective procedures as COVID-19 cases decline, with expectations to return to pre-COVID levels by year-end [33][35] - The lab business has seen elevated demand due to testing, although it may not sustain peak levels [35] COVID-19 Testing and Product Distribution - Cardinal Health is involved in the distribution of COVID-related products, including PPE and testing reagents, but does not conduct testing directly [37] Additional Insights - The company is focused on enhancing customer service and operational efficiency across all segments to drive growth and profitability [17][20] - The management remains optimistic about the recovery trajectory and long-term growth potential across various business lines [4][5][15]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: 1-11373 Cardinal Health, Inc. (Exact name of registrant as specified in its charter) Ohio 31-0958666 ( ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |----------------------------------------------------------------------------|---------------------------------------| | For the transition period from ________ | ________ | | C ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |----------------------------------------------------------------|-----------------------------------| | For the transition period from | to ________ | | Commission Fil ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |----------------------------------------------------------------|-----------------------------------| | For the transition period from | to ________ | | Commission ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |----------------------------------------------------------------|---------------------------------|-----------------------------------| | For the transition ...