Cardinal Health : 1Q FY2021 Earnings Presentation

Q1 FY21

CARDINAL HEALTH, INC. EARNINGS CALL

NOVEMBER 5, 2020

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 identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "could," "would," "project," "continue," "likely," and similar expressions, and include statements reflecting future results or guidance, statements of outlook and various accruals and estimates. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. These risks and uncertainties include risks arising from the ongoing COVID-19 pandemic and our critical role in the global healthcare supply chain including the possibility that deferrals and cancellations of elective medical procedures will result in a sustained reduction in demand for our products, the possibility that we will not able to recoup or offset cost increases to source certain personal protective or other equipment and the possibility that we will experience supply disruptions of distribution or manufacturing facilities; competitive pressures in Cardinal Health's various lines of business; the amount or rate of generic deflation and our ability to offset generic deflation and maintain other financial and strategic benefits through our generic sourcing venture with CVS Health and other components of our generics pharmaceutical program; risks associated with the distribution of opioids, including the financial impact associated with the outcome of the ongoing lawsuits and investigations by certain governmental and regulatory authorities and risks and uncertainties associated with the ongoing settlement framework discussions, including the risk that we may fail to reach a settlement agreement or that a final settlement could require us to pay more than we currently anticipate; risks associated with the manufacture and sourcing of certain products, including risks related to our ability and the ability of third-party manufacturers to comply with applicable regulations; our ability to manage uncertainties associated with the pricing of branded pharmaceuticals; and risks associated with our cost savings initiatives, including the possibility that they could result in greater charges or expenses than we anticipate, could fail to achieve the desired efficiencies or strategic outcomes and could have unintended consequences, such as business disruption or internal controls deficiencies. Cardinal Health is subject to additional risks and uncertainties described in Cardinal Health's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports. This presentation reflects management's views as of November 5, 2020. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement. In addition, this presentation contains non-GAAP financial measures. Cardinal Health provides definitions and reconciliations of non- GAAP financial measures and their most directly comparable GAAP financial measures in the Financial Appendix at the end of this presentation and at ir.cardinalhealth.com.

2 © 2020 Cardinal Health. All Rights Reserved.

Q1 results

3

Q1 FY21 financial summary

		GAAP Basis ($M)	Non-GAAP Basis ($M)
		Q1 FY21	Q1 FY21
	Revenue	$39,065	N/A
	% change	5%
	Gross Margin	$1,715	$1,717
	% change	2%	2%
	SG&A	$1,137	$1,099
	% change	3%	0%
	Operating Earnings/(Loss)1	$(624)	$618
	% change	N.M.	7%
	Interest & Other2	$38	N/A
	% change	(52)%
	Net Earnings/(Loss)1,3	$(253)	$445
	% change	N.M.	18%
	Diluted EPS 1,3	$(0.86)	$1.51
	% change	N.M.	19%

1. GAAP results include a pre-tax charge of $1.02 billion for the estimated liability associated with lawsuits and claims brought against the company by states and political subdivisions relating to the distribution of prescription opioid pain medications. This is incremental to the $5.63 billion charge incurred in the first quarter of fiscal year 2020. The total pre-tax accrual for these matters at September 30, 2020 is $6.59 billion.
2. The sum of "other (income)/expense, net" and "interest expense, net"
3. Attributable to Cardinal Health, Inc.

Please see appendix for GAAP to Non-GAAP reconciliations.

4 © 2020 Cardinal Health. All Rights Reserved.