© Copyright 2013, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.

Information as an asset:Moving to the I-side of IT

Mark MacNaughtonSVP, CIO, Medical SegmentSeptember 19, 2013

© Copyright 2013, 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 - Essential purpose

We are more than 33,000 people applying our deep understanding of healthcare to deliver inventive and meaningful solutions that help improve the cost-effectiveness and quality of healthcare so our customers can focus on patients.

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© Copyright 2013, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.

Essential facts

100+business

acquisitions acrossour history

100,000sites delivered

to daily

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*An estimate of the pro forma revenue for fiscal 2013 in accordance with generally accepted accounting principles with adjustments expected to reflect each company as a stand-alone entity. The estimate is based on assumptions that management currently believes are reasonable, but actual revenue may vary materially from the estimate.

Leading provider of products and services across the healthcare supply chain with an extensive footprint across multiple channels

$101BFY13 pro forma

revenue*

#19on Fortune 500

list

86%of hospitals in the

U.S. use our products and

services

© Copyright 2013, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.

Aging population+

Public health issues=

Increased demand

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Healthcare demand – an inescapable reality

Need for improved cost effectiveness

© Copyright 2013, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.

Healthcare trends

Reimbursemen

t cuts creating

financial

pressure for

our customers

Information

transparency

and

interoperability

/ flow

Consumers

increasingly

knowledgeable

and involved in

their healthcare

Our priorities are driven by key trends in the healthcare marketplace…

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Focus moving

from purely

unit price

pressure to

utilization

Customers under overwhelming pressure and seeking creative, integrated solutions

Reimbursement cuts creating financial pressure for our customers

Focus moving from purely unit price pressure to utilization

Customers under overwhelming

pressure and seeking solutions

Information transparency and interoperability/ flow

Consumers increasingly knowledgeable and involved in their healthcare

Increased participation of government in healthcare, both as a payor and a regulator

© Copyright 2013, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.

Complex care delivery

InsuranceInsurance

PayorPayor

ManufacturerManufacturer

Home healthcare

Physician offices

Hospital systems

Hospitals Surgery centers

Independent laboratories

Pharmacy Imaging

GovernmentGovernment

GPOGPO

IDNIDN

ACOACO

© Copyright 2013, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.

Information transparency

Radio-frequency identification (RFID) allows for tracking at transaction stations across the supply chain

© Copyright 2013, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.

Pharmaceutical supply chain solutions

Cardinal HealthPharmaceuticalManufacturers

• 1,400+ manufacturers

• 50,000+ products

•22 distribution facilities

•7.4 MM deliveries/year

•>80% of generic injectables sold to hospitals are governed by ‘contract’ price

Health Care Providers

• 24,000 retail pharmacy locations

• 2,650 hospitals

• 4,000+ physician office and surgery center locations

• 150 mail order locations

© Copyright 2013, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.

Cost relief

Critical components

Product launches

Proposal analysis

WorkflowProduct cross-

references

PricingProduct

dataBuying

patterns

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Big data“Market Basket” analysis

Big data“Market Basket” analysis

Signature Savings Package Signature Savings Package

© Copyright 2013, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.

Data platform that supports insights

Incr

easi

ng

co

st

Large, integrated data analytics

Larger, more specific relational

Big Data

Central repository

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In memory database

Small to medium relational

© Copyright 2013, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.

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Data skills that lead to insights

Platform Relevancy

Skills

Insight

Use of Business Analytics

Bu

sin

ess

Ag

ility

© Copyright 2013, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.

Lessons learned

• Ensure IT and business are aiming at the same target• Analytics are only as good as your data geeks • Building the future? Start in a sandbox• Start with fertile ground to grow advocates

© Copyright 2013, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.

Q&A