Cardinal Health 2012 Annual Report Download - page 4

Repositioning Cardinal Health —
Achievements realized; the path ahead
The work we completed in scal year 2012 continued to move us down a path we started on three years ago when we
spun o CareFusion and set in motion a plan to transform Cardinal Health. It began with ensuring that we were executing
awlessly on our commitments to customers, partners and investors. The plan also called for initiatives focused on
leveraging our strengths, while aligning with our goal of improving the cost-eectiveness of healthcare. A review of our
eorts on these initiatives is not only a look at where we’ve been, but where we’re going:
t Expanding our footprint in retail independent
pharmacy: Important to balancing our business mix,
today we serve over 7,500 independent pharmacies,
a group that three years ago numbered around 4,000.
t Building on our strong nuclear growth platform:
We now possess a signicantly broader network of PET
facilities and a rst-of-its-kind innovation laboratory and
collaboration center, positioning us to grow and benet
from the exciting developments in neuroscience and
oncology. We have grown our PET doses at a compound
annual growth rate of 16 percent since scal 2008. Our
national network of nuclear pharmacies and cyclotrons
positions us well to take advantage of future growth
in this area.
t Expanding our presence in the fast-growth specialty
pharmaceutical area: Our Specialty Solutions group
today serves more than 1,700 oncologists through
almost 400 oncology practices and in excess of
150 urology practices — all customers with which
we had virtually no presence just a few years ago.
We continue to gain traction in the focus areas of
oncology, rheumatology and urology. We are oering
innovative solutions to the challenges faced by payors
and providers in treating complex diseases.
To date, these operational and strategic accomplishments have helped us achieve the nancial goals we shared with
investors during our December 2010 Investor Day, including the long-term achievement of a compound annual non-GAAP
diluted EPS growth rate and operational Total Shareholder Return (TSR) of at least 10 percent and 11 percent, respectively.2
As we end our scal year 2012, I’m proud to report that we have tracked well ahead of those trajectories in 2011 and 2012
and remain committed to those long-term goals.
2Operational TSR is dened as EPS growth plus dividend yield.
t Building our business in ambulatory settings: As care
continues to move toward more ecient and specialized
settings, we have grown our footprint in these channels.
We will continue to expand our position across the
continuum of care.
t Enhancing margin opportunities through our Medical
segment preferred products programs: Our focus on
product category expertise, sourcing and product-mix
strategies has helped us deliver signicant value to our
customers and suppliers, while contributing to our margin.
t Leveraging the recently built Medical technology
infrastructure: This investment should allow us to
marshal the full capabilities of the Cardinal Health portfolio
to create value for our customers, replacing a legacy
patchwork of systems which, in the past, made it dicult to
work across business lines.
t Building China business into a global growth platform:
Our scal 2011 acquisition in China positions us to serve this
enormous population and will serve as a growth platform
for multiple business lines and for innovation. We continue
to build out our geographic presence in this key market
both organically and through regional acquisitions.