Cardinal Health 2013 Annual Report

Consolidated financials
Overall
Overall stats
FY11
FY12
FY13
Revenue
$ billions
Operating earnings
Operating earnings stats
FY11
FY12
FY13
GAAP
$ billions
Operating earnings stats
FY11
FY12
FY13
Non-GAAP
$ billions
Diluted EPS from continuing operations
Diluted EPS from continuing operations stats
FY11
FY12
FY13
GAAP
$ billions
Diluted EPS from continuing operations stats
FY11
FY12
FY13
Non-GAAP*
$ billions
Segment financials
Pharmaceutical segment
Pharmaceutical segment graph
FY11
FY12
FY13
Revenue
$ billions
Pharmaceutical segment graph
FY11
FY12
FY13
Segment profit
$ billions
Medical segment
Medical segment graph
FY11
FY12
FY13
Revenue
$ billions
Medical segment graph
FY11
FY12
FY13
Segment profit
$ billions

*See the GAAP/non-GAAP reconciliation information on page 12 in this annual report for a reconciliation of non-GAAP measures to the comparable GAAP measures.

In everything we do, we are committed to being an essential partner to help customers focus on their patients. Because we know that together, we are Essential to care.

Healthcare is truly transforming. Demographics, public health, economic challenges and the implementation of healthcare reform are powerful forces for change. Providers are under enormous pressure to improve quality while decreasing costs. Traditional "fee-for-service" is shifting to more of a "fee-for-value" system where incentives will encourage a focus on outcomes — and care is increasingly coordinated across delivery settings.

Cardinal Health is squarely aligned with where healthcare is going. Through our broad line of products and services, our scale and our ability to connect manufacturers to providers across the continuum of care, we can facilitate cost-effective,
high-quality healthcare from the hospital to the home.

Hospitals

We provide a single-source solution for hospitals and health systems, offering them comprehensive solutions to today's challenges.

Our pharmaceutical, medical-surgical and laboratory offerings help improve clinical outcomes, drive efficiencies, reduce costs and improve patient safety.

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We provide resources to more than United States map
0
%
of U.S. hospitals

Pharmacies

With our expansive footprint in pharmacy, both institutional and retail, we ensure that our customers have the products they need, when they need them, in order to serve their patients.

We provide a critical link to the market for the pharmaceutical manufacturers and a suite of services to the pharmacies that allows them to focus on patient care and to compete effectively in a rapidly changing landscape.

Learn about our services to chain retail pharmacies arrow
Learn about our services to independent pharmacies arrow
Learn about our services to hospital pharmacies arrow
Medication We serve more than 10,000 retail chain and nearly 8,000 retail independant pharmacies

Physician Offices

Cardinal Health equips our physician office customers with advanced business tools to automate processes and contain costs so that clinicians can focus more on patient care and less on the details of administrating the practice.

Our unique tools help connect community-based specialists to payors with the goal of promoting
high-quality and cost-effective care.

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stethoscope We support more than 15,000 physician office locations nationwide

Home Healthcare

We serve the growing number of aging and chronically ill patients in home settings through the 2013 acquisition of AssuraMed.

Its Edgepark division provides direct-to-patient service to those who need care at home. With our focus on personal touch, compliance and efficiency, we provide an effective delivery and support model for our broad base of referral sources. Our business-to-business Independence Medical division serves more than 12,000 commercial customers.

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Cardinal Health serves
less than
1,000,000
patients with
less than
30,000
products

Laboratories

We combine science with business, having deep expertise in both clinical diagnostics and supply chain logistics.

Our laboratory consultants help lab managers make more informed decisions faster, as they focus on clinical efficacy while lowering costs. With our breadth of products and services, we find solutions that meet our customers' needs while lowering supply chain costs by as much as 20 percent.

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We provide
less than 80000 laboratory products from
less than 400 manufacturers to
less than 3000 customers

Imaging Centers

As the leading provider of unit-dose radiopharmaceuticals in the United States, we manufacture, compound, dispense and deliver more than 10 million time-critical, patient-specific doses annually — knowing that every moment counts toward earlier diagnoses, quicker treatments and better outcomes.

Our nationwide network of nuclear pharmacies deliver diagnostic and therapeutic drugs that empower our customers to provide the care that leads to better outcomes for their patients.

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Stopwatch Stopwatch needle
We deliver
less than symbol 10 million
time-critical, patient-specific doses annually

Surgery Centers

As the delivery of care migrates to more cost-effective settings, we are providing consistent, reliable service to support patient care.

Our integrated inventory management and ordering solutions make back-office operations easier and more efficient, so our customers have the right products for the right patients at the right time.

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Cardinal Health manufactures or sources 15 million units/day
of medical and surgical products

Medical
Clinics

As patients seek care in non-acute settings, Cardinal Health is focused on helping clinics reduce costs, enhance efficiency and improve quality.

We provide a full portfolio of medical-surgical products, pharmaceuticals and services designed to keep operations running smoothly.

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syringe We work with approximately 4000 medical-surgical and and pharmaceutical manufacturers.

Board of Directors

Colleen F. Arnold

Colleen F. Arnold (N)

Senior Vice President, Application Management Services, IBM Global Business Services of International Business Machines Corp.

George S. Barrett

George S. Barrett (E)

Chairman and Chief Executive Officer, Cardinal Health, Inc.

Glenn A. Britt

Glenn A. Britt (E,A)

Chairman and Chief Executive Officer, Time Warner Cable, Inc.

Carrie S. Cox

Carrie S. Cox (A)

Chief Executive Officer, Humacyte, Inc. Former Executive Vice President and President of Global Pharmaceuticals, Schering-Plough Corp.

Calvin Darden

Calvin Darden (H)

Retired Senior Vice President, U.S. Operations, United Parcel Service, Inc.

Bruce L. Downey

Bruce L. Downey (A)

Partner, New Spring Health Capital II, LP Retired Chairman and Chief Executive Officer, Barr Pharmaceuticals, Inc.

John F. Finn

John F. Finn (E,A,N)

President and Chief Executive Officer, Gardner, Inc.

Patricia A. Hemingway Hall

Patricia A. Hemingway Hall

President and Chief Executive Officer, Health Care Service Corp.

Clayton M. Jones

Clayton M. Jones

Chairman, President and Chief Executive Officer, Rockwell Collins, Inc.

Gregory B. Kenny

Gregory B. Kenny (E,H,N)

President and Chief Executive Officer, General Cable Corp.

David P. King

David P. King (A)

Chairman, President and Chief Executive Officer, Laboratory Corp. of America Holdings

Richard C. Notebaert

Richard C. Notebaert (E,H,N)

Retired Chairman and Chief Executive Officer, Qwest Communications International, Inc.

Jean G. Spaulding

Jean G. Spaulding, M.D.* (H)

Private medical practice

A: Audit Committee member
E: Executive Committee member
H: Human Resources and Compensation Committee member
N: Nominating and Governance Committee member

*Dr. Spaulding has decided not to stand for re-election when her term expires at the 2013 Annual Meeting of Shareholders.

Executive team

George S. Barrett
Chairman and Chief Executive Officer

Shelley A. Bird
Executive Vice President,
Public Affairs

Mark R. Blake
Executive Vice President,
Strategy and Corporate Development

Donald M. Casey Jr.
Chief Executive Officer,
Medical segment

Stephen T. Falk
Executive Vice President,
General Counsel and Corporate Secretary

Jeffrey W. Henderson
Chief Financial Officer

Michael C. Kaufmann
Chief Executive Officer,
Pharmaceutical segment

Craig S. Morford
Chief Legal and Compliance Officer

Patricia B. Morrison
Executive Vice President,
Customer Care Shared Services and
Chief Information Officer

Mark E. Rosenbaum
Chief Customer Officer

Carole S. Watkins
Chief Human Resources Officer