Cardinal Health : 2Q FY2023 Earnings Presentation

Q2 FY23

Cardinal Health, Inc. Earnings Call

February 2, 2023

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 ongoing inflationary pressures and supply chain constraints, including the risk that our plans to mitigate such effects may not be as successful as we anticipate and the possibility that costs to source certain personal protective or other equipment, increased costs for transportation, shipping, freight and commodities, reduced price or demand for certain products may result in additional inventory reserves or disruptions and may negatively impact our ability to meet our long-term guidance; the possibility that our Medical unit goodwill could be further impaired due to the increase in global interest rates, possible unfavorable changes in the U.S. statutory tax rate or additional changes to our long-term financial plan; competitive pressures in Cardinal Health's various lines of business; the performance of our generics program, including 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 or other components of our generics programs; ongoing risks associated with the distribution of opioids, including the financial impact associated with the settlements with governmental authorities, the risk that challenges to our plans to take tax deductions for opioid-related losses could adversely impact our financial results; risks arising from the Department of Justice investigation which we believe concerns our anti-diversion program and risks associated with the injunctive relief requirements under the national settlement, including the risk that we may incur higher costs or operational challenges in the implementation and maintenance of the required changes; risks associated with the manufacture and sourcing of certain products, including risks related to our ability and the ability of third-party manufacturers to import or export certain products or component parts and 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 or other business initiatives, such as the Medical Improvement Plan, including the possibility that they could fail to achieve the intended results. 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 February 2, 2023. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement. Forward-looking statements are aspirational and not guarantees or promises that goals, targets or projections will be met, and no assurance can be given that any commitment, expectation, initiative or plan in this report can or will be achieved or completed. Cardinal Health provides definitions and reconciliations of non-GAAP financial measures and their most directly comparable GAAP financial measures at ir.cardinalhealth.com.

2 © 2023 Cardinal Health. All Rights Reserved.

Q2 results

3

Q2 FY23 financial summary

			GAAP Basis ($M)	Non-GAAP Basis ($M)
			Q2 FY23	Q2 FY23
		Revenue	$51,469	N/A
		% change	13%
		Gross Margin	$1,663	$1,663
		% change	3%	3%
		SG&A	$1,191	$1,196
		% change	3%	4%
		Operating Earnings/(Loss)1	$(119)	$467
		% change	(87)%	--%
		Interest and Other2	$18	N/A
		% change	25%
		Net Earnings/(Loss)3,4	$(130)	$346
		% change	(3)%
		N.M.
		Diluted EPS3,4	$(0.50)	$1.32
		% change	N.M	4%

1GAAP Operating Loss due to a non-cash,pre-tax impairment charge of $709 million related to the Medical segment 2The sum of "other (income)/expense, net" and "interest expense, net"

3GAAP Net Earnings and GAAP Diluted EPS reflect the tax effect of the goodwill impairment charge being included in the company's estimated annual GAAP effective tax rate 4Attributable to Cardinal Health, Inc.

Please see appendix for GAAP to Non-GAAP reconciliations.

4 © 2023 Cardinal Health. All Rights Reserved.

Q2 FY23 Pharmaceutical segment results

	Q2 FY23 ($M)	Q2 FY22 ($M)	YoY change
Revenue	$47,673	$41,375	15%
Segment profit	$464	$426	9%
Segment profit margin	0.97%	1.03%	-6 bps

Drivers:

Revenue

• Brand and specialty pharmaceutical sales growth from existing and net new customers

Segment profit

• Brand and specialty products
• Generics program

• Inflationary supply chain costs

The sum of the components and certain computations may reflect rounding adjustments.

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