Credit Suisse Healthcare Conference Presentation

© Copyright 2014, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.
Cardinal Health: Well-balanced. Well-prepared. Well-focused.
George Barrett
Chairman and Chief Executive Officer
Credit Suisse 2014 Healthcare Conference, November 11, 2014

2
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 expense accruals. 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 competitive pressures in Cardinal Health's various lines of business; the ability to achieve the expected benefits from the generic sourcing joint venture with CVS Health; the frequency or rate of pharmaceutical price appreciation or deflation and the timing of generic and branded pharmaceutical introductions; the non-renewal or a default under one or more key customer or supplier arrangements or changes to the terms of or level of purchases under those arrangements; the ability to achieve the expected benefits from the AccessClosure and Sonexus Health acquisitions; uncertainties due to government health care reform including federal health care reform legislation; changes in the distribution patterns or reimbursement rates for health care products and services; the effects of any investigation or action by any regulatory authority; and changes in the cost of commodities such as oil-based resins, cotton, latex and diesel fuel. 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 11, 2014. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement. In addition, these presentations contain Non-GAAP financial measures. Cardinal Health provides GAAP numbers, definitions and reconciling information in the Financial Appendix at the end of these presentations and on its Investors page at ir.cardinalhealth.com. An audio replay of the conference call will be available on the Investors page at ir.cardinalhealth.com.

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Our profile
Outstanding record of financial growth based on strong execution and focus on the right strategic priorities
Thoughtful deployment of capital and substantial returns for shareholders
Positioned for future growth in an evolving healthcare landscape

$1,394
$1,644
$1,866
$2,046
$2,133
FY10
FY11
FY12
FY13
FY14
4
Non-GAAP operating earnings: Historical trend
(In millions)

1.4%
1.6%
1.8%
2.0%
2.2%
2.4%
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
2011
2012
2013
2014
2015
Please see appendix for GAAP/non-GAAP definitions and reconciling information.
Driving consistent operating margin expansion
5
Non-GAAP operating earnings as a percent of revenue (TTM)

Thoughtful capital deployment approach
1 Capital deployment from Q2 FY10 to Q1 FY15.
Capital deployment post CareFusion spin1
6
Dividends
Capital expenditures
Share repurchases
Acquisitions, net of
divestitures

$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
FY10
FY11
FY12
FY13
FY14
Dividends Paid
Share Repurchases
7
Returning cash to shareholders through dividends and share repurchases
$ Millions
+125% or
cumulatively
$3.7B

8
Biology advances and big data
Increased consumerism in healthcare
Need to deliver care more cost- effectively: new settings, less waste, more coordination
Transition from fee-for-service to payment for outcomes
Continued innovation in healthcare
Increased participation of government, both as payor and regulator
Demographics and public health issues driving demand
Our priorities are driven by key trends in healthcare

FY15 Strategic priorities
Specialty and biopharma
Generics
International
Health system and hospital solutions
•Continue to build scale and capabilities to deliver value in generics
•Tailored programs to a segmented customer base
Provide health systems with scaled solutions including:
–Physician preference products
–Medical consumables
–Performance management tools and services
•Develop new models to address changing market needs
•Enhance and build programs to create value for providers and biopharma manufacturers
•Expand Chinese footprint
•Reposition Canada for growth
•Grow medical product scale through international markets
•Continue to evaluate new markets
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Alternate sites of care
•Accelerate growth in home
•Grow post-acute and ambulatory settings, leveraging IDN experience and scale
•Expand product lines, services, capabilities and touch points

•Largest generics sourcing entity (50/50 JV) in U.S., which is largest generic market in world
•Single point of negotiation
•Simple, straightforward model
•Outstanding progress to date

© Copyright 2014, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and
ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.
Payers
- Integrating clinical
pathways with Specialty
Pharmacy
- Improving patient care
while reducing the cost
of care
We add value in Specialty by connecting
stakeholders to better serve patients
Providers
- Proven track record
- Strong reputation
- Increasing scale and
broad reach
Biopharma
- Best in class
commercialization
capabilities
- Insights essential to
Patient success
11

12
Increasing the breadth of our consumable product portfolio; 500+ launches in FY14
Launching solutions focused on reducing the cost of physician preference items
Expanding our service offerings through new launches and acquisitions
Providing a new platform for serving patients in the home
1
2
3
4
Fracture fixation
Health systems and hospital solutions Aligning in support of customer needs

13
Home healthcare agency
Hospitals
Hospital systems
Physician offices
Surgery centers
Payors
DME
Pharmacies
Edgepark® referral sources
Cardinal Health
Cardinal Health supports care At Home; Opportunities extend across care continuum

14
International: China, growing into the future
Broaden geographic reach
–Expand from 10 to ~25 local wholesaling companies through tuck-in acquisitions
–Expand from ~30 to over 50 DTP specialty pharmacies
Expand direct-to-patient for chronic care
–Focus on disease-centric, patient support model
Invest in innovative healthcare solutions
–Hospital and retail pharmacy focused
Accelerate brand recognition

Generics excellence
Customer mix shift
Targeted international
Specialty
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
Preferred products: medical consumables
Preferred products: physician preference
Health system services
Alternate sites of care
Strong portfolio driving growth and positioning for the future
15

OperatingEarnings BeforeProvisionEarningsEarnings fromDiluted EPSDiluted EPSEarningsIncome TaxesforfromContinuingfromfrom ContinuingOperatingGrowthand DiscontinuedIncomeContinuingOperationsContinuingOperations(in millions, except per common share amounts)EarningsRateOperationsTaxesOperationsGrowth RateOperationsGrowth Rate1GAAP466$ (1)%435$ 169$ 266$ (22)%0.78$ (21)% Restructuring and employee severance19 19 7 12 0.04 Amortization and other acquisition-related costs53 53 19 34 0.10 Impairments and loss on disposal of assets- - - - - Litigation (recoveries)/charges, net28 28 - 28 0.08 Non-GAAP566$ 6%535$ 195$ 340$ (10)%1.00$ (9)% GAAP471$ 3%442$ 102$ 340$ 25%0.99$ 25% Restructuring and employee severance11 11 4 7 0.02 Amortization and other acquisition-related costs49 49 18 31 0.09 Impairments and loss on disposal of assets- - - - - Litigation (recoveries)/charges, net1 1 - 1 - Non-GAAP532$ 13%503$ 124$ 378$ 35%1.10$ 36% 1The $63 million settlements of federal and state tax controversies favorably impacted, for fiscal 2014 first quarter, both diluted EPS from continuing operations and non-GAAP diluted EPS from continuing operations by $0.18. The fiscal 2015 first quarter growth rates for diluted EPS from continuing operations and non-GAAP diluted EPS from continuing operations, excluding the impact of the tax settlements, would have been (4) percent and 9 percent, respectively. The sum of the components may not equal the total due to rounding. We apply varying tax rates depending on the item’s nature and tax jurisdiction where it is incurred. Cardinal Health, Inc. and SubsidiariesGAAP / Non-GAAP ReconciliationFirst Quarter 2015First Quarter 2014

OperatingEarnings BeforeProvisionEarningsEarnings fromDiluted EPSDiluted EPSEarningsIncome TaxesforfromContinuingfromfrom ContinuingOperatingGrowthand DiscontinuedIncomeContinuingOperationsContinuingOperations(in millions, except per common share amounts)EarningsRateOperationsTaxesOperationsGrowth Rate1OperationsGrowth Rate1,2GAAP1,885$ 89%1,798$ 635$ 1,163$ 247%3.37$ 247% Restructuring and employee severance31 31 11 20 0.06 Amortization and other acquisition-related costs223 223 79 144 0.42 Impairments and loss on disposal of assets15 15 5 10 0.03 Litigation (recoveries)/charges, net(21) (21) (8) (13) (0.04) Non-GAAP2,133$ 4%2,047$ 722$ 1,324$ 3%3.84$ 3% GAAP996$ (44)%888$ 553$ 335$ (69)%0.97$ (68)% Restructuring and employee severance71 71 27 44 0.13 Amortization and other acquisition-related costs158 158 52 106 0.31 Impairments and loss on disposal of assets859 859 37 822 2.39 Litigation (recoveries)/charges, net(38) (38) (15) (23) (0.07) Other Spin-Off costs- - - - - Gain on sale of CareFusion stock- - - - - Non-GAAP2,046$ 10%1,938$ 654$ 1,284$ 15%3.73$ 16% 12Fiscal Year 2013The 4-year compound annual growth rate for GAAP and non-GAAP earnings from continuing operations was 10 percent and 11 percent, respectively. The 4-year compound annual growth rate for GAAP and non-GAAP diluted EPS from continuing operations was 20 percent and 14 percent, respectively. The sum of the components may not equal the total due to rounding. We apply varying tax rates depending on the item’s nature and tax jurisdiction where it is incurred. Cardinal Health, Inc. and SubsidiariesGAAP / Non-GAAP ReconciliationFiscal Year 2014Fiscal 2014 earnings from continuing operations includes a $63 million benefit related to the settlements of federal and state tax controversies, partially offset by a $56 million charge related to the remeasurement of unrecognized tax benefits, each of which contributed $0.18 and ($0.16), or $0.02 net, to both diluted EPS from continuing operations and non-GAAP diluted EPS from continuing operations, respectively. Fiscal 2013 earnings from continuing operations includes a $64 million benefit related to the revaluation of the deferred tax liability and related interest on unrepatriated foreign earnings as a result of an agreement with tax authorities, which contributed $0.18 to both diluted EPS from continuing operations and non-GAAP diluted EPS from continuing operations. The fiscal 2014 growth rates for diluted EPS from continuing operations and non-GAAP diluted EPS from continuing operations, excluding the impact of the tax items in each fiscal year, would have been 324 percent and 8 percent, respectively.

OperatingEarnings BeforeProvisionEarningsEarnings fromDiluted EPSDiluted EPSEarningsIncome TaxesforfromContinuingfromfrom ContinuingOperatingGrowthand DiscontinuedIncomeContinuingOperationsContinuingOperationsEarningsRateOperationsTaxesOperationsGrowth RateOperationsGrowth RateGAAP1,792$ 18%1,698$ 628$ 1,070$ 11%3.06$ 12% Restructuring and employee severance21 21 8 13 0.04 Amortization and other acquisition-related costs33 33 9 24 0.07 Impairments and loss on disposal of assets21 21 8 13 0.04 Litigation (recoveries)/charges, net(3) (3) (1) (2) (0.01) Other Spin-Off costs2 2 1 1 - Gain on sale of CareFusion stock- - - - - Non-GAAP1,866$ 13%1,772$ 653$ 1,119$ 13%3.21$ 15% GAAP1,514$ 16%1,518$ 552$ 966$ 65%2.74$ 69% Restructuring and employee severance15 15 5 10 0.03 Amortization and other acquisition-related costs90 90 22 68 0.19 Impairments and loss on disposal of assets9 9 3 6 0.02 Litigation (recoveries)/charges, net6 6 (1) 7 0.02 Other Spin-Off costs10 10 4 6 0.02 Gain on sale of CareFusion stock- (75) - (75) (0.21) Non-GAAP1,644$ 18%1,573$ 585$ 988$ 22%2.80$ 25% GAAP1,307$ 1%1,212$ 625$ 587$ (23)%1.62$ (23)% Restructuring and employee severance91 91 32 59 0.16 Amortization and other acquisition-related costs18 18 6 12 0.03 Impairments and loss on disposal of assets29 29 (5) 34 0.09 Litigation (recoveries)/charges, net(62) (62) (23) (39) (0.11) Other Spin-Off Costs11 53 (149) 202 0.56 Gain on sale of CareFusion stock- (45) - (45) (0.12) Non-GAAP1,394$ (3)%1,296$ 486$ 810$ (2)%2.24$ (2)% We apply varying tax rates depending on the item’s nature and tax jurisdiction where it is incurred. Cardinal Health, Inc. and SubsidiariesGAAP / Non-GAAP ReconciliationFiscal Year 2012Fiscal Year 2011Fiscal Year 2010The sum of the components may not equal the total due to rounding.

(in millions)2015201420152014RevenueAmount24,070$ 24,523$ Growth rate1(2)%(5)% Operating earningsAmount466$ 471$ 566$ 532$ Growth rate(1)%3%6%13% Earnings from continuing operationsAmount266$ 340$ 340$ 378$ Growth rate(22)%25%(10)%35% 1Refer to the GAAP/Non-GAAP reconciliation for definitions and calculations supporting the Non-GAAP balances. Cardinal Health, Inc. and SubsidiariesTotal Company Business AnalysisNon-GAAPFirst QuarterFirst QuarterRevenue from Walgreens was $3.3 billion for the three months ended September 30, 2013. Excluding the impact of the Walgreens contract expiration, the fiscal 2015 first quarter revenue growth rate would have been 13 percent.

(in millions)2014201320142013RevenueAmount91,084$ 101,093$ Growth rate1(10)%(6)% Operating earningsAmount1,885$ 996$ 2,133$ 2,046$ Growth rate89%(44)%4%10% Earnings from continuing operationsAmount1,163$ 335$ 1,324$ 1,284$ Growth rate247%(69)%3%15% 1Non-GAAPCardinal Health, Inc. and SubsidiariesTotal Company Business AnalysisThe sum of the components may not equal the total due to rounding. Refer to the GAAP/Non-GAAP reconciliation for definitions and calculations supporting the Non-GAAP balances. Revenue from Walgreens was $3.3 billion and $20.2 billion for the fiscal year ended June 30, 2014 and 2013, respectively. Excluding the impact of the Walgreens contract expiration, the fiscal 2014 fiscal year revenue growth rate would have been 8 percent. Fiscal YearFiscal Year

2015(in millions)Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Revenue90,631$ 91,084$ 93,610$ 96,735$ 99,727$ 101,093$ 102,437$ 104,803$ 106,648$ 107,552$ 107,551$ 106,705$ 104,999$ 102,644$ 100,340$ 98,612$ 98,160$ GAAP operating earnings1,880$ 1,885$ 1,056$ 1,023$ 1,011$ 996$ 1,842$ 1,893$ 1,836$ 1,792$ 1,747$ 1,668$ 1,562$ 1,514$ 1,489$ 1,408$ 1,431$ Restructuring and employee severance39 31 57 85 76 71 48 22 23 21 17 16 17 15 17 25 33 Amortization and other acquisition-related costs228 223 212 209 179 158 117 37 34 33 37 94 106 90 86 58 28 Impairments and loss on disposal of assets15 15 843 863 859 859 29 25 21 21 20 7 8 9 9 9 7 Litigation (recoveries)/charges, net6 (21) (24) (18) (15) (38) (37) (34) (22) (3) (9) (4) 2 6 (22) (29) (60) Other Spin-Off Costs- - - - - - - 1 1 2 4 4 8 10 9 12 12 Non-GAAP operating earnings2,167$ 2,133$ 2,144$ 2,163$ 2,109$ 2,046$ 1,999$ 1,943$ 1,893$ 1,866$ 1,816$ 1,786$ 1,703$ 1,644$ 1,588$ 1,483$ 1,451$ GAAP operating earnings margin rate2.07%2.07%1.13%1.06%1.01%0.99%1.80%1.81%1.72%1.67%1.62%1.56%1.49%1.48%1.48%1.43%1.46% Non-GAAP operating earnings margin rate2.39%2.34%2.29%2.24%2.11%2.02%1.95%1.85%1.77%1.73%1.69%1.67%1.62%1.60%1.58%1.50%1.48% 4-year margin expansion91bpForward-Looking Non-GAAP Financial Measures We present non-GAAP earnings from continuing operations (and presentations derived from these financial measures, including per share calculations) on a forward-looking basis. The most directly comparable forward-looking GAAP measures are earnings from continuing operations. We are unable to provide a quantitative reconciliation of these forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measures because we cannot reliably forecast restructuring and employee severance, amortization and other acquisition-related costs, impairments and loss on disposal of assets, litigation (recoveries)/charges, net and LIFO charges/(credits), which are difficult to predict and estimate and are primarily dependent on future events. Please note that the unavailable reconciling items could significantly impact our future financial results. The sum of the components may not equal the total due to rounding. 2014Cardinal Health, Inc. and SubsidiariesGAAP / Non-GAAP Reconciliation201320122011Rolling Quarter

1234567Loss contingencies related to litigation and regulatory matters and income from favorable resolution of legal matters. The inventories of the Company's core pharmaceutical distribution facilities in the Pharmaceutical segment are valued at the lower of cost, using the LIFO method, or market. These charges or credits are included in cost of products sold, and represent changes in the Company's LIFO inventory reserve. Except for compound annual growth rates (CAGR), growth rates in this presentation are determined by dividing the difference between current period results and prior period results by prior period results. CAGR is determined by subtracting one from ((the ending value divided by the beginning value) raised to the power of (one divided by the number of years)). Costs incurred in connection with our Spin-Off of CareFusion which are included in distribution, selling, general and administrative expenses. ProgramsbywhichtheCompanyfundamentallychangesitsoperationssuchasclosingandconsolidatingfacilities,movingmanufacturingofaproducttoanotherlocation,productionorbusinessprocesssourcing,employeeseverance(includingrationalizingheadcount or other significant changes in personnel) and realigning operations (including realignment of the management structure of a business unit in response to changing market conditions). Costs that consist primarily of amortization of acquisition-related intangible assets, transaction costs, integration costs and changes in the fair value of contingent consideration obligations. Asset impairments and losses from the disposal of assets not eligible to be classified as discontinued operations are classified within impairments and loss on disposal of assets within the consolidated statements of earnings. Non-GAAPEarningsfromContinuingOperations:earningsfromcontinuingoperationsexcluding(1)restructuringandemployeeseverance1,(2)amortizationandotheracquisition-relatedcosts2,(3)impairmentsandlossondisposalofassets3,(4)litigation(recoveries)/charges, net4, (5) LIFO charges/(credits), (6) Other Spin-Off costs6 and (7) Gain on sale of CareFusion stock, each net of tax. Non-GAAP Operating Earnings Margin Rate and growth rate calculation7: current period non-GAAP operating earnings divided by revenue. Non-GAAP Operating Earnings: operating earnings excluding (1) restructuring and employee severance, (2) amortization and other acquisition-related costs, (3) impairments and loss on disposal of assets, (4) litigation (recoveries)/charges, net, (5) LIFO charges/(credits), (6) Other Spin-Off costs and (7) Gain on sale of CareFusion stock. Non-GAAP Diluted EPS from Continuing Operations: non-GAAP earnings from continuing operations divided by diluted weighted-average shares outstanding. Cardinal Health, Inc. and SubsidiariesUse of Non-GAAP MeasuresThis presentation contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). In general, the measures exclude items and charges that (i) management does not believe reflect Cardinal Health, Inc.'s (the "Company") core business and relate more to strategic, multi-year corporate activities; or (ii) relate to activities or actions that may have occurred over multiple or in prior periods without predictable trends. Management uses these non-GAAP financial measures internally to evaluate the Company’s performance, evaluate the balance sheet, engage in financial and operational planning and determine incentive compensation. Beginning in fiscal 2015, the Company will exclude last-in, first-out ("LIFO") inventory charges/(credits)5 from its non-GAAP earnings, for consistency with the presentation by some of its peers. The Company did not record any LIFO charges or credits in the periods presented. Managementprovidesthesenon-GAAPfinancialmeasurestoinvestorsassupplementalmetricstoassistreadersinassessingtheeffectsofitemsandeventsonitsfinancialandoperatingresultsandincomparingtheCompany’sperformancetothatofitscompetitors. However, the non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. Thenon-GAAPfinancialmeasuresdisclosedbytheCompanyshouldnotbeconsideredasubstitutefor,orsuperiorto,financialmeasurescalculatedinaccordancewithGAAP,andthefinancialresultscalculatedinaccordancewithGAAPandreconciliationstothose financial statements set forth above should be carefully evaluated. Definitions

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Credit Suisse Healthcare Conference Presentation