Cardinal Health : 3Q FY2021 Earnings Presentation

Q3 FY21

CARDINAL HEALTH, INC. EARNINGS CALL

MAY 6, 2021

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 our ability to recoup or mitigate cost increases to source certain personal protective or other equipment, and the possible impact of additional disruptions of our distribution or manufacturing facilities; 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 with CVS Health; risks associated with the distribution of opioids, including the financial impact associated with the outcome of ongoing lawsuits and investigations and risks and uncertainties associated with the ongoing settlement framework discussions with governmental authorities, including the risk that we may fail to reach a settlement agreement or that a final settlement or judicial decision could require us to pay more than we currently anticipate and the risk that the Congressional inquiry on our plan to take tax deductions for opioid-related losses could adversely impact our financial results; 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; risks arising from the planned divestiture of our Cordis business, including the risk that we may not receive required regulatory approvals or that we may not be able to complete the divestiture in a timely manner and risks that we may fail to achieve the anticipated strategic objectives from the divestiture; our ability to manage uncertainties associated with the pricing of branded pharmaceuticals; and risks associated with our cost savings initiatives. 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 May 6, 2021. 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 © 2021 Cardinal Health. All Rights Reserved.

Q3 results

3

Q3 FY21 financial summary

		GAAP Basis ($M)	Non-GAAP Basis ($M)
		Q3 FY21	Q3 FY21
	Revenue	$39,275	N/A
	% change	-- %
	Gross margin	$1,812	$1,811
	% change	(4)%	(4)%
	SG&A	$1,120	$1,121
	% change	(4)%	(4)%
	Operating earnings	$4731	$689
	% change	(16)%	(4)%
	Interest and other2	$33	N/A
	% change	N.M.
	Net earnings3	4	$451
	% change	$119	(5)%
	N.M.
	Diluted EPS3	$0.404	$1.53
	% change	N.M.
	(6)%

1. This decrease is primarily due to the write-down of the net assets held for sale from the planned divestiture of the Cordis business.
2. The sum of "other (income)/expense, net" and "interest expense, net"; I&O driven primarily by an increase in the value of the company's deferred compensation plan investments, lower interest expense from prior period debt reduction, and one-time investment gains.
3. Attributable to Cardinal Health, Inc.
4. GAAP results include the tax effect of the previously-disclosed opioid litigation charge.

Please see appendix for GAAP to Non-GAAP reconciliations.

4 © 2021 Cardinal Health. All Rights Reserved.

Q3 FY21 Pharmaceutical segment results

	Q3 FY21 ($M)	Q3 FY20 ($M)	YoY change
Revenue	$35,104	$35,112	0%
Segment profit	$511	$534	-4%
Segment profit margin	1.46%	1.52%	-6 bps

Drivers:

Revenue

• Pharmaceutical Distribution
• Specialty Solutions

• Prior year comparison of COVID-19-related sales acceleration

Segment profit

• COVID-19-relatedvolume declines in the company's generics program1 + Brand sales mix

1Includes the prior year comparison of COVID-19-related sales acceleration

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