1

Essential to care

Investor Relations Conference

FY 2008

September 19, 2007

Exhibit 99.1

2

Forward-looking statements and

GAAP-reconciliation

These presentations contain forward-looking statements addressing expectations, prospects,

estimates and other matters that are dependent upon future events or developments.

These

matters are subject to risks and uncertainties that could cause actual results to differ materially

from those projected, anticipated or implied.

The most significant of these uncertainties are

described in Cardinal Health's Form 10-K, Form 10-Q and Form 8-K reports (including all

amendments to those reports) and exhibits to those reports, and include (but are not limited to)

the following: competitive pressures in its various lines of business; the loss of one or more key

customer or supplier relationships or changes to the terms of those relationships; uncertainties

relating to the timing of generic introductions and the frequency or rate of pharmaceutical price

appreciation; changes in the distribution patterns or reimbursement rates for healthcare

products and/or services; uncertainties related to finalizing the pending settlement of the class-

action securities litigation, including obtaining court approval

of the settlement; successful

integration of Cardinal Health and VIASYS Healthcare and the ability to achieve synergies from

the acquisition; uncertainties relating to the amount of future share repurchases by Cardinal

Health, which can be affected by Cardinal Health's then-current stock price, regulatory restraints

on share repurchases, cash flows, financial condition and alternative uses of cash available to

Cardinal Health at the time, as well as by the amount of any additional share repurchases

authorized by the board of directors; and general economic and market conditions.

These

presentations reflect management’s views as of September 19, 2007.

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 include non-GAAP financial

measures.

Cardinal Health provides definitions and reconciling information at the end of these

presentations and on its investor relations page at www.cardinalhealth.com.

Jeff Henderson

Chief Financial Officer

September 19, 2007

Financial review

4

Agenda

•

Company performance

•

Value focused financial strategy

•

Financial targets and goals

5

FY07 consolidated performance

$79,664

$1,931

$2.86

12.4%

$86,852

$2,163

$3.42

16.9%

9%

12%

20%

FY 2006

($M)

FY 2007

($M)

%

Change

Revenue

Non-GAAP operating earnings

Non-GAAP diluted EPS from

continuing operations

Non-GAAP return on equity

FY 07 was a very good year

for Cardinal Health

6

Return to strong growth

Non-GAAP consolidated NOPAT

(All years include the impact of equity compensation)

$1.47

$1.09

$1.22

$1.35

$1.15

$1.29

FY02

FY03

FY04

FY05

FY06

FY07

FY08E

$B

Annual growth

rate

13%

10%

(14%)

12%

13%

Note:

For

comparative

purposes,

reported

amounts

include

the

net

effect

of

equity

compensation expense of which 14% was allocated to the former PTS segment.

7

Return to strong growth

$3.42

$2.86

$2.47

$2.93

$2.59

$2.23

FY02

FY03

FY04

FY05

FY06

FY07

FY08E

$

16%

13%

(16%)

16%

20%

Annual growth

rate

Non-GAAP diluted earnings per share

(All years include the impact of equity compensation)

Note:

For

comparative

purposes,

reported

amounts

include

the

net

effect

of

equity

compensation expense of which 14% was allocated to the former PTS segment.

Value-focused

financial strategy

9

Value-focused financial strategy

Value-focused

financial

strategy

that

is

targeted

at

driving

growth

and returns

Balance sheet

management

Capital

deployment

Capital

structure

Growth

and

returns

Balance sheet management

–

Effective use of capital

–

Portfolio optimization

Capital deployment

–

Higher returns

–

Shareholder value focused

Capital structure

–

Low cost of capital

–

Financial flexibility

10

Balance sheet management

•

Portfolio optimization

–

Divested PTS for $3.3B

–

Acquired VIASYS for $1.5B

Days of inventory

38

34

32

29

FY04

FY05

FY06

FY07

FY08E

•

Effective use of capital

–

Days of inventory

Return on invested capital

1

1.8%

> 9.0%

PTS (FY06)

VIASYS (FY10)

1

Non-GAAP

11

Capital deployment

•

Up to 50% of OCF returned to shareholders

–

Returned over $4.2B in capital since beginning of FY07

–

Increased dividend 4x since FY05…and still going

–

Announced a 2-year $2B share repurchase authorization in August

Consistent and transparent capital allocation strategy that is

shareholder value focused

•

Up to 25% of OCF reinvested in organic growth

–

Deployed over $1.3B in capital from FY04 to FY07 to support

organic growth

•

Up to 20-25% of OCF used for tuck-in acquisitions

–

Targeting strategic tuck-ins to round out sector portfolios

–

Focused on achieving VIASYS integration synergies

12

Significant

cash

flow

generation

to

fund

growth

and

drive

shareholder returns

$2.3

$2.1

$2.2

$0.5

$0.9

$1.0

$1.4

$2.7

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

$B

Note:

All

years

include

operating

cash

flows

from

continuing

and

discontinued

operations.

FY05

and

FY07

are

non-GAAP

numbers,

and

are

adjusted

to

eliminate

the

impact

of

A/R

financing

facility.

FY07

excludes

the

impact

of

the

$410M

litigation

settlements.

Net working capital

Other operating activity

Forecast

Litigation settlements

Capital deployment

13

Capital deployment

3.6

1.2

2.3

5.8

FY04

FY05

FY06

FY07

Total capital deployed ($B)

Returning

capital

to

shareholders

accounted

for

nearly

60%

of the total capital deployed from FY04 to FY07

Acquisitions

Capital

expenditures

Returned to

shareholders

14

Capital structure

Net debt to capital

-15%

0%

15%

30%

45%

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

15%

30%

45%

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

1

Peers include other pharmaceutical wholesalers

Debt to total capital

CAH

Peer

average ¹

CAH

Peer

average ¹

15

Growing returns

7.0%

5.4%

7.1%

5.4%

FY04

FY05

FY06

FY07

FY08

FY09

FY10

ROIC (%)

Non-GAAP return on invested capital

All years include the impact of equity compensation

Note:

For

comparative

purposes,

reported

amounts

include

the

net

effect

of

equity

compensation

expense

of

which

14%

was

allocated

to

the

former

PTS

segment.

Actual

Forecast

16

Growing returns

16.9%

12.4%

12.8%

18.0%

FY04

FY05

FY06

FY07

FY08

FY09

FY10

ROE (%)

Non-GAAP return on equity

All years include the impact of equity compensation

Note:

For

comparative

purposes,

reported

amounts

include

the

net

effect

of

equity

compensation

expense

of

which

14%

was

allocated

to

the

former

PTS

segment.

Actual

Forecast

17

Financial discipline and controls

•

Consistent

and

transparent

capital

allocation

strategy

Improvements to financial discipline and controls provide greater

transparency

and confidence

•

Significant

and

improving

level

of

financial

disclosure

•

Disciplined

approach to acquisitions

•

New

finance

team

and

enhanced

staff

•

Revamped

financial processes and controls

Financial targets and goals

19

Financial targets and goals

Non-GAAP EPS

12 –

16%

Long-term financial goals

Fiscal 2008 targets

Above range ($3.95 –

$4.15)

Consolidated:

Revenue

growth

Segment

profit

growth

7 –

10%

7 –

10%

HSCS –

Pharma

Segment profit growth

vs. Long-term goal

In range

Segment:

6 –

9%

4 –

7%

HSCS –

Medical

Below range

25 –

30%

8 –

12%

MPT

Above range

20 –

25%

10 –

15%

CTS

In range

20

September 19, 2007

Financial targets and goals

Over FY'08 -

FY'10 3 Year Period:

Fiscal Year 2008

Revenue:

+ 8 -

10%

In range

Op Earnings¹

:

+ 10 -

13%

At or above top end of range

EPS

2

:

+ 12 -

16%

Above range ($3.95 -

$4.15 per share³)

Segment

Revenue

Segment

Profit

FY08

profit

growth

vs.

long-term goal

Drivers

HSCS -

Pharma

+ 7 -

10%

+ 7 -

10%

In range

4

*

Stable to increasing segment profit margins; Stable to increasing EP Margins driven by

efficient capital usage

*

Impact

of

recent

large

customer

repricings;

Moderation

in

pharma

market

growth

*

Impact of refined methodology for allocating corporate costs

HSCS -

Medical

+ 4 -

7%

+ 6 -

9%

Below range

4

*

Strong revenue growth in Lab and Ambulatory; Acute growth due to

IPS, innovation and

improved order to cash process; Expecting second half turnaround

*

Continued investment in customer service and innovation; Impact of HSCS transition

*

Impact of refined methodology for allocating corporate costs

MPT

+ 8 -

12%

+ 25 -

30%

Above range

*

Revenue will well exceed range in FY08 due to Viasys

impact

*

New customer contracts and penetration of existing customers; Product innovation;

International growth; Positive impact of restructuring and sourcing initiatives; Impact of

Viasys

acquisition and DBI synergies

CTS

+ 10 -

15%

+ 20 -

25%

In range

*

Strong demand for Alaris

and Pyxis

products; Strong international growth; Profit margin

expansion due to sales mix and expense controls; Benefits from CareFusion

and

MedMined

acquisitions; SE recall charges in FY07

*

Continued investment in innovation, quality and customer service

Return on Equity

5

:

15% -

20%

In line with long-term goal

Operating Cash Flow:

> 100% of net earnings

In line with long-term goal

Cash Returned

up to 50% of OCF, via share

-

Quarterly dividend $0.12 per share

to Shareholders:

repurchase and dividends

-

Completed $3.1B PTS-related share repurchase in July 2007; Announced new 2-year, $2B authorization

Credit Rating:

Strong investment grade

In-line

1

Non-GAAP operating earnings

2

Non-GAAP diluted EPS from continuing operations

3

Includes

impact

of

Viasys

acquisition

(up

to

$0.10

dilutive),

continuing

operations

impact

of

PTS

divestiture

(e.g.,

share

repo

from

proceeds)

of

approximately

$0.40

(>$0.30

net

year

on

year

impact

vs.

FY07),

and

interest

expense impact of SEC/litigation settlements

4

Refined

methodology

for

allocation

of

corporate

costs

within

HSCS

in

FY08

positively

impacts

HSCS-P

profit

growth

by

1.8

percentage

points,

and

negatively

impacts

HSCS-M

profit

growth

by

7.3

percentage

points

5

Non-GAAP return on equity

One Year Targets

Long-Term Financial Goals

21

Increasing contribution of CMP

Clinical and Medical Products

is expected to account

for up to 40% of total segment profits by FY10

35-40%

21%

25%

26%

29-32%

32-35%

FY05

FY06

FY07

FY08

FY09

FY10

% of total segment profit

Note:

FY08

–

FY10

projections

based

on

long-term

guidance

ranges

22

Performance range

$2.93

$2.47

$2.86

$3.42

$2.93

$2.47

$2.86

$3.42

FY04

FY05

FY06

FY07

FY08

FY09

FY10

EPS ($)

Non-GAAP diluted EPS range based on long-term targets

FY08 projection based on current FY guidance.  FY09 & FY10 projections

based on long-term guidance range.

All years include the impact of equity compensation

Note:

For

comparative

purposes,

reported

amounts

include

the

net

effect

of

equity

compensation

expense

of

which

14%

was

allocated

to

the

former

PTS

segment.

Q&A

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

(in millions)	2002			2003			2004			2005			2006		2007
GAAP Operating Earnings	$	1,621.2		$	1,896.1		$	2,092.9		$	1,782.2		$	1,844.9	$	1,373.7
Non-GAAP Operating Earnings
Special items		135.8			88.5			38.7			141.5			80.5		772.0
Impairment charges and other		—			—			—			38.3			5.8		17.3
Equity based compensation 1		(106.0	)		(124.6	)		(141.9	)		(183.9	)		—		—
Non-GAAP Operating Earnings	$	1,651.0		$	1,860.0		$	1,989.7		$	1,778.1		$	1,931.2	$	2,163.0

¹ Prior to fiscal 2006, the Company accounted for equity-based awards in accordance with APB No. 25 and related interpretations. Except for costs related to restricted shares, restricted share units, stock appreciation rights and an insignificant number of amended options requiring a new measurement date, no compensation expense was recognized. The adjustment represents the impact on operating earnings had the Company recognized expense for all equity-based payments to employees. Total Company equity compensation expense was reduced by 14% to allocate a portion of equity compensation to the former PTS segment.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

(in millions, except per Common Share amounts)	2002			2003			2004			2005			2006			2007
GAAP Diluted EPS from Continuing Operations
Amount	$	2.19		$	2.63		$	3.08		$	2.45		$	2.71		$	2.07
Growth Rate		N/A			20	%		17	%		(20	)%		11	%		(24	)%
Non-GAAP Diluted EPS from Continuing Operations
Earnings from continuing operations	$	1,005.2		$	1,192.5		$	1,354.8		$	1,067.1		$	1,163.3		$	839.7
Special items, net of tax		84.4			59.8			23.9			100.7			57.9			528.9
Impairment charges and other, net of tax		—			—			—			24.1			3.8			15.7
Equity based compensation, net of tax 1		(65.7	)		(77.2	)		(88.0	)		(114.0	)		—			—
Non-GAAP Earnings from Continuing Operations	$	1,023.9		$	1,175.1		$	1,290.7		$	1,077.9		$	1,225.0		$	1,384.3
Divided by diluted weighted average number of shares outstanding		459.6			453.3			440.0			435.7			428.5			404.7
Non-GAAP Diluted EPS from Continuing Operations
Amount	$	2.23		$	2.59		$	2.93		$	2.47		$	2.86		$	3.42
Growth Rate		N/A			16	%		13	%		(16	)%		16	%		20	%

¹ Prior to fiscal 2006, the Company accounted for equity-based awards in accordance with APB No. 25 and related interpretations. Except for costs related to restricted shares, restricted share units, stock appreciation rights and an insignificant number of amended options requiring a new measurement date, no compensation expense was recognized. The adjustment represents the impact on earnings from continuing operations had the Company recognized expense for all equity-based payments to employees. Total Company equity compensation expense was reduced by 14% to allocate a portion of equity compensation to the former PTS segment.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

(in millions)	2002			2003			2004			2005			2006			2007
GAAP Effective Tax Rate from Continuing Operations		34.2	%		34.6	%		32.6	%		35.9	%		33.2	%		33.0	%
Non-GAAP Effective Tax Rate from Continuing Operations
Non-GAAP Earnings from Continuing Operations	$	1,023.9		$	1,175.1		$	1,290.7		$	1,077.9		$	1,225.0		$	1,384.3
Provision for income taxes	$	522.0		$	632.2		$	654.1		$	597.3		$	577.1		$	412.6
Special items tax benefit		51.5			27.6			14.9			40.8			22.6			243.1
Impairment charges and other tax benefit		—			—			—			14.2			2.0			1.6
Equity based compensation tax benefit 1		(40.3	)		(47.4	)		(53.9	)		(69.9	)		—			—
Adjusted provision for income taxes	$	533.2		$	612.4		$	615.1		$	582.4		$	601.7		$	657.3
Non-GAAP Effective Tax Rate from Continuing Operations		34.2	%		34.3	%		32.3	%		35.1	%		32.9	%		32.2	%

¹ Prior to fiscal 2006, the Company accounted for equity-based awards in accordance with APB No. 25 and related interpretations. Except for costs related to restricted shares, restricted share units, stock appreciation rights and an insignificant number of amended options requiring a new measurement date, no compensation expense was recognized. The adjustment represents the impact on the provision for income taxes had the Company recognized expense for all equity-based payments to employees. Total Company equity compensation expense was reduced by 14% to allocate a portion of equity compensation to the former PTS segment.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

	Fiscal Year
(in millions)	2004			2005			2006			2007
GAAP Return on Equity		18.8	%		12.5	%		11.5	%		23.5	%
Non-GAAP Return on Equity
Net earnings	$	1,474.5		$	1,050.7		$	1,000.1		$	1,931.1
Special items, net of tax, in continuing operations		23.8			100.7			57.9			528.9
Special items, net of tax, in discontinued operations		10.4			53.2			12.8			4.4
Gain on sale of PTS, net of tax, in discontinued operations		—			—			—			(1,072.4	)
Equity based compensation, net of tax 1		(102.3	)		(132.6	)		—			—
Adjusted net earnings	$	1,406.4		$	1,072.0		$	1,070.8		$	1,392.0
Divided by average shareholders’ equity 2	$	7,825.4		$	8,404.4		$	8,660.1		$	8,213.2
Non-GAAP Return on Equity		18.0	%		12.8	%		12.4	%		16.9	%

¹ Prior to fiscal 2006, the Company accounted for equity-based awards in accordance with APB No. 25 and related interpretations. Except for costs related to restricted shares, restricted share units, stock appreciation rights and an insignificant number of amended options requiring a new measurement date, no compensation expense was recognized. The adjustment represents the impact on net earnings had the Company recognized expense for all equity-based payments to employees. Total Company equity compensation expense was reduced by 14% to allocate a portion of equity compensation to the former PTS segment.

² The average shareholders’ equity shown above is calculated using the average of the prior years’ fourth quarter plus each of the current year quarters.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

(in millions)	2002			2003			2004			2005			2006			2007
GAAP Net Operating Profit After Taxes (NOPAT)
Amount	$	1,067.1		$	1,239.2		$	1,411.4		$	1,142.6		$	1,233.1		$	920.4
Growth		N/A			16	%		14	%		(19	)%		8	%		(25	)%
Non-GAAP NOPAT
Non-GAAP operating earnings	$	1,651.0		$	1,860.0		$	1,989.7		$	1,778.1		$	1,931.2		$	2,163.0
Non-GAAP effective tax rate		34.2	%		34.3	%		32.3	%		35.1	%		32.9	%		32.2	%
Non-GAAP NOPAT
Amount	$	1,085.6		$	1,222.7		$	1,347.6		$	1,154.3		$	1,295.1		$	1,466.6
Growth		N/A			13	%		10	%		(14	)%		12	%		13	%

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

(in millions)
HEALTHCARE SUPPLY CHAIN SERVICES	First Quarter Fiscal 2007						Second Quarter Fiscal 2007						Third Quarter Fiscal 2007						Fourth Quarter Fiscal 2007						Fiscal 2007
Pharmaceutical	July		August		September		October		November		December		January		February		March		April		May		June		Total Year
Economic Profit Margin
Segment profit																									$	1,299.8
Effective tax rate from continuing operations																										35.1	%
Net operating earnings, after-tax (NOPAT)																									$	844.1
Total assets	$	11,549.8	$	12,206.9	$	11,620.0	$	11,781.8	$	11,624.6	$	11,663.1	$	11,423.2	$	11,681.7	$	12,031.9	$	11,494.8	$	11,849.6	$	11,705.2
Less: assets from discontinued operations		107.5		109.4		—		—		—		—		—		—		—		—		—		—
Less: accounts payable		6,644.9		7,115.6		6,979.1		6,897.3		6,836.3		6,912.9		6,906.3		7,252.4		7,513.2		6,816.5		7,135.4		7,466.5
Less: other accrued liabilities		1,069.5		1,088.6		1,016.3		1,092.8		1,100.2		1,036.3		1,078.3		1,059.3		1,154.0		1,082.4		1,202.4		1,160.2
Less: liabilities from businesses held for sale		—		—		—		—		—		—		—		—		—		—		—		—
Less: deferred income taxes and other liabilities		82.1		82.1		71.0		89.3		89.7		71.6		90.3		90.3		69.6		87.7		88.0		36.1
Less: goodwill and other intangibles, net		1,354.5		1,361.8		1,332.4		1,328.7		1,335.0		1,335.7		1,339.6		1,348.9		1,349.4		1,351.9		1,351.3		1,345.6
Less: cash and equivalents		42.2		57.4		75.0		91.3		102.7		113.6		115.5		113.0		135.3		127.7		67.9		32.8
Less: short-term investments available for sale		—		—		—		—		—		—		—		—		—		—		—		—
Tangible capital	$	2,249.1	$	2,392.0	$	2,146.2	$	2,282.4	$	2,160.7	$	2,193.0	$	1,893.2	$	1,817.8	$	1,810.4	$	2,028.6	$	2,004.6	$	1,664.0	$	2,053.5
Multiplied by weighted average cost of capital																										9.0	%
Capital charge																									$	184.8
Economic profit																									$	659.3
Revenue																									$	76,572.8
Economic profit margin																										0.86	%

⁽¹⁾ Tangible Capital is a quarterly average calculated as total assets allocated to the segment less (total liabilities allocated to the segment, goodwill and intangibles, cash and equivalents and short term investments available for sale)

⁽²⁾ The sum of the components may not equal due to rounding

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

(in millions)
HEALTHCARE SUPPLY CHAIN SERVICES	First Quarter Fiscal 2007						Second Quarter Fiscal 2007						Third Quarter Fiscal 2007						Fourth Quarter Fiscal 2007						Fiscal 2007
Medical	July		August		September		October		November		December		January		February		March		April		May		June		Total Year
Economic Profit Margin
Segment profit																									$	318.1
Effective tax rate from continuing operations																										29.8	%
Net operating earnings, after-tax (NOPAT)																									$	223.2
Total assets	$	2,442.1	$	2,437.6	$	2,456.6	$	2,492.0	$	2,525.1	$	2,505.1	$	2,562.1	$	2,521.4	$	2,476.4	$	2,480.4	$	2,396.8	$	2,472.9
Less: assets from discontinued operations		—		—		—		—		—		—		—		—		—		—		—		—
Less: accounts payable		534.8		478.7		510.4		510.6		524.1		544.4		505.2		522.0		528.5		532.3		523.2		558.0
Less: other accrued liabilities		71.1		78.1		49.4		77.4		61.6		20.9		52.1		52.3		16.2		48.7		76.5		35.8
Less: liabilities from businesses held for sale		—		—		—		—		—		—		—		—		—		—		—		—
Less: deferred income taxes and other liabilities		58.2		58.1		53.0		57.2		55.4		44.4		48.3		48.4		58.5		63.6		56.6		59.8
Less: goodwill and other intangibles, net		378.8		377.8		377.7		385.3		384.7		378.3		377.2		378.1		378.0		379.6		381.2		385.1
Less: cash and equivalents		2.9		3.0		4.1		4.2		9.8		7.4		6.7		2.9		17.0		16.5		3.5		25.3
Less: short-term investments available for sale		—		—		—		—		—		—		—		—		—		—		—		—
Tangible capital	$	1,396.3	$	1,441.9	$	1,462.0	$	1,457.3	$	1,489.5	$	1,509.7	$	1,572.6	$	1,517.7	$	1,478.2	$	1,439.7	$	1,355.8	$	1,408.9	$	1,460.8
Multiplied by weighted average cost of capital																										9.0	%
Capital charge																									$	131.5
Economic profit																									$	91.7
Revenue																									$	7,513.9
Economic profit margin																										1.22	%

⁽¹⁾ Tangible Capital is a quarterly average calculated as total assets allocated to the segment less (total liabilities allocated to the segment, goodwill and intangibles, cash and equivalents and short term investments available for sale)

⁽²⁾ The sum of the components may not equal due to rounding

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

(in millions)
CLINICAL AND MEDICAL PRODUCTS	First Quarter Fiscal 2007						Second Quarter Fiscal 2007						Third Quarter Fiscal 2007						Fourth Quarter Fiscal 2007						Fiscal 2007
Clinical Technologies and Services	July		August		September		October		November		December		January		February		March		April		May		June		Total Year
Economic Profit Margin
Segment profit																									$	385.7
Effective tax rate from continuing operations																										29.2	%
Net operating earnings, after-tax (NOPAT)																									$	273.1
Total assets	$	3,916.6	$	4,012.1	$	3,880.1	$	4,097.8	$	4,145.2	$	3,961.5	$	4,189.4	$	4,214.0	$	4,082.0	$	4,360.8	$	4,300.7	$	4,273.0
Less: assets from discontinued operations		—		—		—		—		—		—		—		—		—		—		—		—
Less: accounts payable		91.2		84.7		79.4		87.8		81.1		85.1		78.8		85.3		101.7		88.0		90.4		88.9
Less: other accrued liabilities		277.2		287.9		223.4		294.7		293.3		205.6		299.7		300.1		228.1		313.5		328.3		240.2
Less: liabilities from businesses held for sale		—		—		—		—		—		—		—		—		—		—		—		—
Less: deferred income taxes and other liabilities		577.6		577.0		475.1		587.5		588.0		470.1		581.1		581.9		467.0		583.7		489.1		474.4
Less: goodwill and other intangibles, net		2,085.9		2,083.4		2,174.3		2,166.4		2,163.9		2,210.0		2,217.8		2,219.2		2,217.1		2,218.3		2,208.6		2,188.1
Less: cash and equivalents		66.2		60.1		82.6		89.7		72.1		97.9		119.5		118.6		127.3		174.2		107.5		216.6
Less: short-term investments available for sale		—		—		0.3		—		—		—		—		—		—		—		85.8		—
Tangible capital	$	818.5	$	919.0	$	845.0	$	871.7	$	946.8	$	892.8	$	892.5	$	908.9	$	940.8	$	983.1	$	991.0	$	1,064.8	$	922.9
Multiplied by weighted average cost of capital																										9.0	%
Capital charge																									$	83.1
Economic profit																									$	190.0
Revenue																									$	2,687.0
Economic profit margin																										7.07	%

⁽¹⁾ Tangible Capital is a quarterly average calculated as total assets allocated to the segment less (total liabilities allocated to the segment, goodwill and intangibles, cash and equivalents and short term investments available for sale)

⁽²⁾ The sum of the components may not equal due to rounding

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

(in millions)
CLINICAL AND MEDICAL PRODUCTS	First Quarter Fiscal 2007						Second Quarter Fiscal 2007						Third Quarter Fiscal 2007						Fourth Quarter Fiscal 2007						Fiscal 2007
Medical Products and Technologies	July		August		September		October		November		December		January		February		March		April		May		June		Total Year
Economic Profit Margin
Segment profit																									$	197.6
Effective tax rate from continuing operations																										7.0	%
Net operating earnings, after-tax (NOPAT)																									$	183.8
Total assets	$	1,455.5	$	1,453.1	$	1,506.0	$	1,529.9	$	1,516.1	$	1,478.5	$	1,482.2	$	1,573.5	$	1,572.9	$	1,586.7	$	1,739.7	$	3,604.2
Less: assets from discontinued operations		—		—		—		—		—		—		—		—		—		—		—		—
Less: accounts payable		107.3		88.5		118.3		106.0		108.0		93.3		76.1		90.1		99.0		100.8		100.5		129.4
Less: other accrued liabilities		119.3		124.7		89.1		118.3		139.4		97.2		124.5		124.4		115.7		142.3		86.2		329.9
Less: liabilities from businesses held for sale		—		—		—		—		—		—		—		—		—		—		—		—
Less: deferred income taxes and other liabilities		46.2		46.6		44.4		47.8		49.6		52.9		56.4		56.5		40.7		43.5		37.2		179.0
Less: goodwill and other intangibles, net		454.8		453.7		453.4		443.5		446.9		451.9		450.4		451.6		452.7		456.2		453.0		1,924.6
Less: cash and equivalents		136.9		144.9		197.8		201.5		168.7		180.9		166.0		233.8		259.2		252.9		375.9		460.4
Less: short-term investments available for sale		—		—		—		—		—		—		—		—		—		—		—		—
Tangible capital	$	591.0	$	594.7	$	603.0	$	612.8	$	603.5	$	602.3	$	608.8	$	617.1	$	605.6	$	591.0	$	686.9	$	580.9	$	608.1
Multiplied by weighted average cost of capital																										9.0	%
Capital charge																									$	54.7
Economic profit																									$	129.1
Revenue																									$	1,835.9
Economic profit margin																										7.03	%

⁽¹⁾ Tangible Capital is a quarterly average calculated as total assets allocated to the segment less (total liabilities allocated to the segment, goodwill and intangibles, cash and equivalents and short term investments available for sale)

⁽²⁾ The sum of the components may not equal due to rounding

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

(in millions)
HEALTHCARE SUPPLY CHAIN SERVICES	First Quarter Fiscal 2006						Second Quarter Fiscal 2006						Third Quarter Fiscal 2006						Fourth Quarter Fiscal 2006						Fiscal 2006
Pharmaceutical	July		August		September		October		November		December		January		February		March		April		May		June		Total Year
Economic Profit Margin
Segment profit																									$	1,142.7
Effective tax rate from continuing operations																										36.8	%
Net operating earnings, after-tax (NOPAT)																									$	722.2
Total assets	$	10,521.1	$	10,384.3	$	11,050.2	$	10,499.1	$	10,379.0	$	10,760.7	$	10,770.0	$	10,896.3	$	11,748.0	$	11,342.4	$	11,489.4	$	11,977.6
Less: assets from discontinued operations		173.1		188.3		191.0		197.3		190.6		178.1		179.0		188.2		102.0		97.2		109.6		115.4
Less: accounts payable		5,506.3		5,692.3		6,238.9		5,626.8		5,867.5		6,167.7		6,086.9		6,336.7		7,243.7		6,369.7		6,985.6		7,159.3
Less: other accrued liabilities		970.8		912.7		890.1		929.7		899.0		847.0		908.9		887.9		987.3		1,036.1		1,032.6		1,006.9
Less: liabilities from businesses held for sale		222.9		222.9		222.9		186.3		186.3		186.3		67.6		67.6		67.6		79.4		95.4		—
Less: deferred income taxes and other liabilities		109.1		106.4		44.5		107.6		107.7		43.6		107.2		107.1		62.9		81.5		81.5		63.0
Less: goodwill and other intangibles, net		962.4		958.6		1,168.0		959.5		958.1		1,157.3		1,162.6		1,183.6		1,210.2		1,214.6		1,224.0		1,351.8
Less: cash and equivalents		59.2		66.6		70.3		80.3		88.9		108.2		73.4		74.0		88.3		65.1		87.0		39.8
Less: short-term investments available for sale		—		—		—		—		—		—		—		—		—		—		—		—
Tangible capital	$	2,517.3	$	2,236.5	$	2,224.5	$	2,411.6	$	2,080.9	$	2,072.5	$	2,184.4	$	2,051.2	$	1,986.0	$	2,398.8	$	1,873.7	$	2,241.4	$	2,189.9
Multiplied by weighted average cost of capital																										9.0	%
Capital charge																									$	197.1
Economic profit																									$	525.1
Revenue																									$	70,046.9
Economic profit margin																										0.75	%

⁽¹⁾ Tangible Capital is a quarterly average calculated as total assets allocated to the segment less (total liabilities allocated to the segment, goodwill and intangibles, cash and equivalents and short term investments available for sale)

⁽²⁾ The sum of the components may not equal due to rounding

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

(in millions)
HEALTHCARE SUPPLY CHAIN SERVICES	First Quarter Fiscal 2006						Second Quarter Fiscal 2006						Third Quarter Fiscal 2006						Fourth Quarter Fiscal 2006						Fiscal 2006
Medical	July		August		September		October		November		December		January		February		March		April		May		June		Total Year
Economic Profit Margin
Segment profit																									$	314.5
Effective tax rate from continuing operations																										30.1	%
Net operating earnings, after-tax (NOPAT)																									$	219.8
Total assets	$	2,267.1	$	2,204.7	$	2,260.7	$	2,362.1	$	2,414.5	$	2,436.0	$	2,491.0	$	2,436.4	$	2,385.5	$	2,447.2	$	2,417.9	$	2,404.1
Less: assets from discontinued operations		—		—		—		—		—		—		—		—		—		—		—		—
Less: accounts payable		496.2		439.0		534.4		530.4		481.4		498.2		513.2		498.0		480.3		537.7		498.3		510.6
Less: other accrued liabilities		127.3		124.4		85.2		109.4		114.4		79.6		100.9		100.4		39.7		113.6		85.5		45.2
Less: liabilities from businesses held for sale		—		—		—		—		—		—		—		—		—		—		—		—
Less: deferred income taxes and other liabilities		66.9		67.7		62.2		68.3		51.2		46.7		52.8		52.4		86.3		51.2		51.0		53.7
Less: goodwill and other intangibles, net		396.5		397.6		396.8		396.8		415.9		416.2		418.2		374.7		374.7		376.7		379.2		386.2
Less: cash and equivalents		8.4		8.0		8.5		8.4		9.1		10.0		4.4		4.8		5.0		5.7		5.9		3.6
Less: short-term investments available for sale		—		—		—		—		—		—		—		—		—		—		—		—
Tangible capital	$	1,171.8	$	1,168.0	$	1,173.6	$	1,248.8	$	1,342.5	$	1,385.3	$	1,401.5	$	1,406.1	$	1,399.5	$	1,362.3	$	1,398.0	$	1,404.8	$	1,321.9
Multiplied by weighted average cost of capital																										9.0	%
Capital charge																									$	119.0
Economic profit																									$	100.8
Revenue																									$	7,198.6
Economic profit margin																										1.40	%

⁽¹⁾ Tangible Capital is a quarterly average calculated as total assets allocated to the segment less (total liabilities allocated to the segment, goodwill and intangibles, cash and equivalents and short term investments available for sale)

⁽²⁾ The sum of the components may not equal due to rounding

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

(in millions)
CLINICAL AND MEDICAL PRODUCTS	First Quarter Fiscal 2006							Second Quarter Fiscal 2006							Third Quarter Fiscal 2006						Fourth Quarter Fiscal 2006						Fiscal 2006
Clinical Technologies and Services	July		August		September			October		November		December			January		February		March		April		May		June		Total Year
Economic Profit Margin
Segment profit																											$	320.3
Effective tax rate from continuing operations																												32.1	%
Net operating earnings, after-tax (NOPAT)																											$	217.5
Total assets	$	3,826.4	$	3,822.1	$	3,683.8		$	3,966.0	$	3,953.3	$	3,750.6		$	4,045.8	$	4,031.9	$	3,771.7	$	3,845.9	$	3,882.1	$	3,721.3
Less: assets from discontinued operations		—		—		—			—		—		—			—		—		—		—		—		—
Less: accounts payable		69.9		86.1		90.8			83.6		92.1		81.0			74.6		84.0		80.1		80.4		87.7		85.3
Less: other accrued liabilities		159.1		164.9		(63.1	)		185.2		189.5		(53.5	)		192.2		178.9		265.8		342.0		362.7		194.5
Less: liabilities from businesses held for sale		—		—		—			—		—		—			—		—		—		—		—		—
Less: deferred income taxes and other liabilities		864.4		867.8		924.1			939.5		940.1		921.6			930.3		940.2		575.1		576.6		577.4		464.9
Less: goodwill and other intangibles, net		2,127.8		2,125.0		2,098.7			2,106.1		2,103.2		2,099.9			2,097.4		2,094.2		2,057.3		2,054.6		2,052.4		2,087.5
Less: cash and equivalents		24.2		29.3		25.0			28.1		21.3		29.3			72.3		65.3		55.8		43.7		44.3		62.9
Less: short-term investments available for sale		—		—		—			—		—		—			—		—		—		—		—		—
Tangible capital	$	581.0	$	549.0	$	608.3		$	623.5	$	607.1	$	672.3		$	679.0	$	669.3	$	737.6	$	748.6	$	757.6	$	826.2	$	671.6
Multiplied by weighted average cost of capital																												9.0	%
Capital charge																											$	60.4
Economic profit																											$	157.1
Revenue																											$	2,430.3
Economic profit margin																												6.46	%

⁽¹⁾ Tangible Capital is a quarterly average calculated as total assets allocated to the segment less (total liabilities allocated to the segment, goodwill and intangibles, cash and equivalents and short term investments available for sale)

⁽²⁾ The sum of the components may not equal due to rounding

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

(in millions)
CLINICAL AND MEDICAL PRODUCTS	First Quarter Fiscal 2006						Second Quarter Fiscal 2006						Third Quarter Fiscal 2006						Fourth Quarter Fiscal 2006						Fiscal 2006
Medical Products and Technologies	July		August		September		October		November		December		January		February		March		April		May		June		Total Year
Economic Profit Margin
Segment profit																									$	164.5
Effective tax rate from continuing operations																										8.2	%
Net operating earnings, after-tax (NOPAT)																									$	151.0
Total assets	$	1,489.2	$	1,483.1	$	1,485.5	$	1,519.8	$	1,548.8	$	1,561.7	$	1,352.4	$	1,397.4	$	1,403.2	$	1,474.2	$	1,538.2	$	1,418.7
Less: assets from discontinued operations		—		—		—		—		—		—		—		—		—		—		—		—
Less: accounts payable		99.3		82.8		83.3		86.3		89.4		90.5		83.4		87.7		94.9		90.7		90.1		119.0
Less: other accrued liabilities		141.1		139.6		106.5		133.4		137.5		105.9		130.1		128.1		100.7		97.0		126.9		89.9
Less: liabilities from businesses held for sale		—		—		—		—		—		—		—		—		—		—		—		—
Less: deferred income taxes and other liabilities		56.1		56.6		52.5		57.2		46.1		39.9		44.2		44.6		5.1		46.3		46.6		43.9
Less: goodwill and other intangibles, net		309.0		309.8		309.2		309.3		324.1		324.4		325.9		367.2		367.1		368.9		451.0		447.4
Less: cash and equivalents		361.6		360.6		394.5		388.5		414.0		455.1		205.9		205.9		233.9		275.3		277.0		146.5
Less: short-term investments available for sale		—		—		—		—		—		—		—		—		—		—		—		—
Tangible capital	$	522.1	$	533.7	$	539.5	$	545.1	$	537.7	$	545.9	$	562.9	$	563.9	$	601.5	$	596.0	$	546.6	$	572.0	$	555.6
Multiplied by weighted average cost of capital																										9.0	%
Capital charge																									$	50.0
Economic profit																									$	101.0
Revenue																									$	1,632.9
Economic profit margin																										6.19	%

⁽¹⁾ Tangible Capital is a quarterly average calculated as total assets allocated to the segment less (total liabilities allocated to the segment, goodwill and intangibles, cash and equivalents and short term investments available for sale)

⁽²⁾ The sum of the components may not equal due to rounding

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

	Fiscal Year
(in millions)	2004			2005			2006			2007
GAAP Return on Invested Capital		7.12	%		4.97	%		4.73	%		9.38	%
Non-GAAP Return on Invested Capital
Net earnings	$	1,474.5		$	1,050.7		$	1,000.1		$	1,931.1
Special items, net of tax, in continuing operations		23.8			100.7			57.9			528.9
Special items, net of tax, in discontinued operations		10.4			53.2			12.8			4.4
Interest expense and other, net of tax		53.7			75.4			66.8			77.7
Gain on sale of PTS, net of tax, in discontinued operations		—			—			—			(1,072.4	)
Equity based compensation, net of tax 1		(102.3	)		(132.6	)		—			—
Adjusted net earnings	$	1,460.1		$	1,147.4		$	1,137.6		$	1,469.7
Divided by average total invested capital 2	$	20,720.1		$	21,161.2		$	21,146.3		$	20,580.7
Non-GAAP Return on Invested Capital		7.05	%		5.42	%		5.38	%		7.14	%

¹ Prior to fiscal 2006, the Company accounted for equity-based awards in accordance with APB No. 25 and related interpretations. Except for costs related to restricted shares, restricted share units, stock appreciation rights and an insignificant number of amended options requiring a new measurement date, no compensation expense was recognized. The adjustment represents the impact on net earnings had the Company recognized expense for all equity-based payments to employees. Total Company equity compensation expense was reduced by 14% to allocate a portion of equity compensation to the former PTS segment.

² The average total invested capital for fiscal 2007 and 2006 is calculated using the average of the prior year fourth quarter plus each of the current year quarters. The average total invested capital for fiscal 2005 and 2004 is calculated using the average of the prior year fourth quarter plus the current year fourth quarter. Total invested capital is calculated as the sum of the current portion of long-term obligations and other short-term borrowings, long-term obligations, current portion of long-term obligations and other short-term borrowings in discontinued operations, long-term obligations in discontinued operations, total shareholders’ equity and unrecorded goodwill. Beginning in the fourth quarter of 2007, unrecorded goodwill is $7.5 billion. For all other periods presented, unrecorded goodwill is $9.7 billion. The average current portion of long-term obligations and other short-term borrowings in discontinued operations and long-term obligations in discontinued operations were $31.9 million, $78.2 million, $76.5 million and $62.5 million for fiscal years 2007, 2006, 2005 and 2004, respectively.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

	Fiscal Year
	2000			2001			2002			2003			2004			2005			2006			2007
Debt to Total Capital		30.7	%		25.7	%		25.0	%		25.6	%		31.2	%		22.9	%		24.7	%		32.0	%
Net Debt to Capital
Current portion of long-term obligations and other short-term borrowings	$	423.4		$	14.2		$	0.7		$	203.3		$	797.4		$	244.7		$	199.0		$	16.0
Long-term obligations, less current portion and other short-term borrowings		1,524.5			1,871.0			2,132.6			2,444.3			2,818.7			2,302.1			2,588.6			3,457.3
Debt	$	1,947.9		$	1,885.2		$	2,133.3		$	2,647.6		$	3,616.1		$	2,546.8		$	2,787.6		$	3,473.3
Cash and equivalents		(539.5	)		(934.1	)		(1,274.1	)		(1,558.7	)		(963.6	)		(1,285.9	)		(1,187.3	)		(1,308.8	)
Short-term investments available for sale		—			—			—			—			—			(99.8	)		(498.4	)		(132.0	)
Net debt	$	1,408.4		$	951.1		$	859.2		$	1,088.9		$	2,652.5		$	1,161.1		$	1,101.9		$	2,032.5
Total shareholders’ equity	$	4,400.4		$	5,437.1		$	6,393.0		$	7,674.5		$	7,976.3		$	8,593.0		$	8,490.7		$	7,376.9
Capital	$	5,808.8		$	6,388.2		$	7,252.2		$	8,763.4		$	10,628.8		$	9,754.1		$	9,592.6		$	9,409.4
Net debt to capital		24.2	%		14.9	%		11.8	%		12.4	%		25.0	%		11.9	%		11.5	%		21.6	%

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

	Fiscal Year
	2000		2001		2002		2003		2004		2005			2006		2007
GAAP Net Cash Provided by Operating Activities	$	504.0	$	871.7	$	983.9	$	1,398.0	$	2,659.3	$	2,855.7		$	2,120.8	$	1,223.1
Non-GAAP Net Cash Provided by Operating Activities
Litigation settlements, net of tax		—		—		—		—		—		—			—		410.1
Accounts receivable securitization		—		—		—		—		—		(550.0	)		—		550.0
Non-GAAP Net Cash Provided by Operating Activities	$	504.0	$	871.7	$	983.9	$	1,398.0	$	2,659.3	$	2,305.7		$	2,120.8	$	2,183.2

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

(in millions)	2006
PTS GAAP Return on Invested Capital		1.4	%
PTS Non-GAAP Return on Invested Capital
Net earnings	$	81.4
Special items, net of tax		8.8
Interest expense and other, net of tax		16.1
Adjusted net earnings	$	106.3
Divided by average total invested capital 1	$	5,762.0
PTS Non-GAAP Return on Invested Capital		1.8	%

¹ The average total invested capital shown above is calculated using the average of the prior year fourth quarter plus the current year fourth quarter. Total invested capital is calculated as the sum of the current portion of long-term obligations and other short-term borrowings, long-term obligations, total shareholders’ equity and unrecorded goodwill. For all periods presented, unrecorded goodwill is $2.2 billion.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

DEFINITIONS

GAAP

Debt: long-term obligations plus short-term borrowings

Debt to Total Capital: debt divided by (debt plus total shareholders’ equity)

Diluted EPS from Continuing Operations: earnings from continuing operations divided by diluted weighted average shares outstanding

Effective Tax Rate from Continuing Operations: provision for income taxes divided by earnings before income taxes and discontinued operations

NOPAT (or Net Operation Profit After Tax): operating earnings adjusted for taxes

Operating Cash Flow: net cash provided by / (used in) operating activities from continuing operations

Segment Profit: segment revenue minus (segment cost of products sold and segment selling, general and administrative expenses)

Segment Profit Margin: segment profit divided by revenue

Return on Equity: annualized net earnings divided by average shareholders’ equity

Return on Invested Capital: annualized net earnings divided by (average total shareholders’ equity plus debt plus unrecorded goodwill)

NON-GAAP

Economic Profit: segment net operating earnings, after-tax minus (tangible capital multiplied by weighted average cost of capital); Tangible Capital is the quarterly average calculated as total assets allocated to the segment less (total liabilities allocated to the segment, goodwill and intangibles, cash and equivalents and short term investments available for sale)

Economic Profit Margin: economic profit divided by revenue

Net Debt to Capital: net debt divided by (net debt plus total shareholders’ equity)

Net Debt: debt minus (cash and equivalents and short-term investments available for sale)

Non-GAAP Diluted EPS from Continuing Operations: non-GAAP earnings from continuing operations divided by diluted weighted average shares outstanding

Non-GAAP Earnings from Continuing Operations: earnings from continuing operations excluding special items and impairment charges and other, both net of tax and including the impact of equity based compensation, net of tax in fiscal 2005 and prior

Non-GAAP Effective Tax Rate from Continuing Operations: adjusted provision for income taxes divided by (non-GAAP earnings from continuing operations plus adjusted provision for income taxes); Adjusted Provision for Income Taxes is the provision for income taxes adjusted for special items, impairment charges and other, and equity based compensation for fiscal 2005 and prior

Non-GAAP Operating Earnings: operating earnings excluding special items and impairment charges and other and including the impact of equity based compensation for fiscal 2005 and prior

Non-GAAP Return on Equity: (net earnings plus special items, net of tax minus the impact of equity based compensation, net of tax for fiscal 2005 and prior) divided by average shareholders’ equity ¹

Non-GAAP Return on Invested Capital: (net earnings plus special items, net of tax plus interest expense and other, net of tax minus the impact of equity based compensation, net of tax for fiscal 2005 and prior) divided by (average total shareholders’ equity plus debt plus unrecorded goodwill) ¹

Non-GAAP NOPAT (or Non-GAAP Net Operation Profit After Tax): non-GAAP operating earnings adjusted for taxes

¹ For the fiscal year ended June 30, 2007, the numerator in calculating this non-GAAP financial measure also excludes the $679.5 million net of tax gain on the sale of PTS recorded in discontinued operations in the fourth quarter of fiscal 2007 and the $1.1 billion net of tax gain on the sale of PTS recorded in discontinued operations of which $425 million was recorded in the second quarter of fiscal 2007.

Forward-Looking Non-GAAP Financial Measures

The Company presents non-GAAP operating earnings, non-GAAP earnings from continuing operations and non-GAAP return on equity (and presentations derived from these financial measures) on a forward-looking basis. The most directly comparable forward-looking GAAP measures are operating earnings, earnings from continuing operations and return on equity. The Company is unable to provide a quantitative reconciliation of these forward-looking non-GAAP measures to the most comparable forward-looking GAAP measures because the Company cannot reliably forecast special items and impairment charges and other, which are difficult to predict and estimate and are primarily dependent on future events. Please note that the unavailable reconciling items could significantly impact the Company’s future financial results.