Essential to care

Q1FY2010 

Investor/Analyst Call

November 5, 2009

Exhibit 99.3

2

2

2

Forward-looking statements and

GAAP reconciliation

This

presentation

contains

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. These risks and uncertainties include (but are not limited to) uncertainties and risks regarding the

effect

of

the

CareFusion

spinoff

on

Cardinal

Health;

the

performance

of

CareFusion

and

the

proceeds

realized

from

future

sales

of

CareFusion

stock;

competitive

pressures

in

Cardinal

Health’s

various

lines

of

business; the loss of one or more key customer or supplier relationships or changes to the terms of those

relationships; the timing of generic and branded pharmaceutical introductions and the frequency or rate of

branded pharmaceutical price appreciation or generic pharmaceutical price deflation; changes in the

distribution patterns or reimbursement rates for health care products and/or services; the results,

consequences, effects or timing of any inquiry or investigation by any regulatory authority or any legal or

administrative proceedings; the effects of disruptions in the financial markets, including uncertainties related

to the availability and/or cost of credit on Cardinal Health’s customers and vendors; the ultimate features of

government health care reform initiatives and their enactment and implementation; and conditions in the

pharmaceutical market and general economic and market conditions. In addition, 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

(including

all

amendments

to

those

reports)

and

exhibits

to

those

reports.

This

presentation

reflects

management’s views as of Nov.

5, 2009. Except to the extent required by applicable law, Cardinal Health 

undertakes no obligation to update or revise any forward-looking statement.  In addition, this presentation

includes non-GAAP financial measures. Cardinal Health provides definitions and reconciling information at

the

end

of

this

presentation

and

on

its

investor

relations

page

at

www.cardinalhealth.com.

A

transcript

of

the

conference

call

will

be

available

on

the

investor

relations

page

at

www.cardinalhealth.com.

3

3

Q1 FY2010 Results

4

4

4

Q1 FY10

Q1 FY09

Q1 FY10

Q1 FY09

Revenue

$24,781

$23,437

   % change

6%

11%

Operating earnings

$240

$287

$323

$311

   % change

(16)%

(15)%

4%

(13)%

   Ratio to revenue

0.97%

1.22%

1.30%

1.33%

Earnings from continuing ops

($62)

$172

$194

$168

   % change

N.M.

(19)%

15%

(24)%

   Ratio to revenue

N.M.

0.73%

0.78%

0.72%

Diluted EPS from continuing ops

($0.17)

$0.48

$0.54

$0.47

   % change

N.M.

(16)%

15%

(22)%

Asset Management

   Operating cash flow

$406

($155)

   Days Receivable

20.1

20.5

   Days Inventory on Hand

23

26

Non-GAAP Basis

($M)

GAAP Basis

($M)

Q1 FY2010 Business Analysis

5

5

5

Operating     

Earnings ($M)

Earnings/(Loss)

from Continuing

Operations ($M)

Diluted EPS from

Continuing

Operations

Operating     

Earnings ($M)

Earnings/(Loss)

from Continuing

Operations ($M)

Diluted EPS from

Continuing

Operations

GAAP

$240

($62)

($0.17)

$287

$172

$0.48

Restructuring and Employee

Severance (Note)

$60

$42

$0.12

$21

$13

$0.04

Litigation Charges/(Credits), Net

-

-

-

-

-

-

Impairments, Loss on Sale of

Assets and Other, net 

$24

$16

$0.04

$4

($17)

($0.05)

Other Spinoff Costs (Note)

-

$198

$0.55

-

-

-

Non-GAAP

$323

$194

$0.54

$311

$168

$0.47

Spinoff Costs Included in

Restructuring and Employee

Severance 

$50

$36

Other Spinoff Costs

-

$198

Total Spinoff Costs

$50

$234

Q1 FY 2009

Q1 FY 2010

Q1 FY2010 Operating Earnings and EPS

Note:

Costs

associated

with

the

spinoff

are

as

follows:

6

6

6

One-time Items Included In GAAP

Financials (Net of Tax)

•

$42M -

Restructuring and employee severance, primarily

related to spinoff

•

$16M -

Impairment   

•

$198M -

Other spinoff costs:

–

$172M tax charge related to the portion of non-U.S.

earnings that will no longer be indefinitely invested

offshore

–

$26M loss associated with the early retirement of

long-term debt

7

7

7

Other Items of Note Affecting                       

Q1 Financials

•

Earlier-than-expected brand price inflation in

pharmaceutical distribution

•

Accelerated revenue recognition in Medical

related to the spinoff

•

Flu season

•

Lower y-on-y tax rate

•

Other expense/income

8

8

8

Balance Sheet Items Related to

CareFusion

Spinoff

Assets

•

$902M –

Investment in CareFusion

•

$212M –

Other assets

–

Receivable from CareFusion

per our Tax Matters Agreement

Liabilities

•

$2.1B

–

Long-term

debt

(+$350M

-

current

portion

of

long-term

debt)

•

$172M –

Deferred income taxes and other liabilities

–

Tax charge related to the portion of non-U.S. earnings that will no longer

be indefinitely invested offshore

Shareholder’s Equity

•

$3.7B –

Retained Earnings reduction

–

CareFusion

spinoff was treated as a dividend to shareholders,

and therefore is deducted from retained earnings

9

Pharmaceutical Segment

Business Analysis

Highlights:

•

Revenue increased 5%, driven by strong growth in pharmaceutical distribution

–

Balanced sales growth with bulk at 6% and non-bulk at 5%

•

Segment profit decreased 2% due to year-on-year impact of generic launches and deflation,

customer contract repricings and MSI transition, partially offset by nuclear pharmacy margin

expansion

•

Overall disciplined cost control

•

Progress made with generic sourcing, contract compliance and customer-facing IT initiatives

•

Strong working capital management

Revenue

Segment Profit

Segment Profit Margin

$22,562

$208

0.92%

Q1 FY10

($M)

$21,404

$213

1.00%

Q1 FY09

($M)

5%

(2%)

% Change

10

Medical Segment

Business Analysis

Highlights:

•

Revenue increased 10%, driven by organic growth, accelerated sales recognition related to the

spinoff and flu-related sales

–

Strong sales growth in lab, ambulatory and Canada

•

Segment profit increased 17%, driven by organic growth, the accelerated benefit related to the

spinoff, increased sales from flu orders and commodity cost decreases, partially offset by

investment in the Medical Transformation program and the y-on-y impact of Tecomet/Medsystems

divestitures

•

Progress made in Medical Transformation and customer-facing IT initiatives

•

Strong expense and capital management

Revenue

Segment Profit

Segment Proft Margin

$2,237

$115

5.13%

Q1 FY10

($M)

$2,037

$98

4.81%

Q1 FY09

($M)

10%

17%

% Change

11

11

FY 2010 outlook

12

12

Pharmaceutical Segment

FY2010 Business Trends and Expectations

November 5, 2009

•

Market factors:

–

Modest segment revenue growth

–

YoY decline in generic launches

–

Customer contract repricings

•

Key strategic moves benefiting the longer-term:

–

Portfolio repositioning to focus (divestitures) and optimize existing platforms (MSI)

–

Pfizer DSA transition timing

–

Sourcing model changes 

•

Transformational investments:

–

Investments in customer-facing systems

•

Balance of year forecast assumes nuclear supply shortage resolves      

in January 2010

•

Strong working capital management continues

13

13

•

Market factors:

–

Solid segment revenue growth

–

Positive impact from decreases in raw materials/COGS

•

Transformational investments:

–

Medical Transformation progressing

–

Progress in ambulatory care channel –

investments continue

•

Improvement in Presource performance

•

Lean/operational excellence initiatives improving supply chain 

and working capital

•

Accelerated revenue recognition related to spinoff

•

Impact of flu

Medical Segment

FY10 Business Trends and Expectations

November 5, 2009

14

14

CAH FY 2010 Financial Expectations

November 5, 2009

FY10 outlook

FY09 adjusted

base financials

Revenue:

Low single digit

growth

$96B

Non-GAAP EPS

1

:

$1.90 -

$2.00

$2.26

1

Non-GAAP diluted earnings per share from continuing operations

15

15

CAH FY10 Overall Expectations

November 5, 2009

FY10 outlook

FY09 adjusted

base financials

Non-GAAP effective tax

rate

36-37%

37%

Diluted weighted average

shares outstanding

361-362M

361.5M

Interest and other, net

~$120M

$128M

Capital expenditures

$200M -

$250M

$419M

1

1

Includes $150M synthetic lease retirement

Q&A

18

18

18

Q1 FY10 Trailing Five Quarters

19

19

Segment Analysis: Q1FY10

Q1FY09

Q2FY09

Q3FY09

Q4FY09

Q1FY10

Revenue

($M)

21,404

22,079

22,118

22,263

22,562

Segment

Profit ($M)

213

262

286

273

208

Q1FY09

Q2FY09

Q3FY09

Q4FY09

Q1FY10

Revenue

($M)

2,037

2,057

1,976

2,090

2,237

Segment

Profit ($M)

98

75

129

83

115

Pharmaceutical Segment

Medical Segment

20

20

20

GAAP to Non-GAAP

Reconciliation Statements

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

	First Quarter 2010
(in millions, except per Common Share amounts)	GAAP			Restructuring and Employee Severance1		Impairments and Loss on Sale of Assets			Litigation (Credits)/ Charges, Net1	Other Spin-Off Costs			Non-GAAP
Operating Earnings
Amount	$	240		$	60	$	24		—		—		$	323
Growth Rate		(16	)%											4	%
Earnings Before Income Taxes and Discontinued Operations	$	175		$	60	$	24		—	$	42		$	300
Provision for Income Taxes	$	237		$	17	$	8		—	$	(156	)	$	106
Earnings/(Loss) from Continuing Operations
Amount	$	(62	)	$	42	$	16		—	$	198		$	194
Growth Rate		N.M.												15	%
Diluted EPS from Continuing Operations
Amount2	$	(0.17	)	$	0.12	$	0.04		—	$	0.55		$	0.54
Growth Rate		N.M.												15	%
	First Quarter 2009
	GAAP			Restructuring and Employee Severance1		Impairments and Loss on Sale of Assets			Litigation (Credits)/ Charges, Net1	Other Spin-Off Costs			Non-GAAP
Operating Earnings
Amount	$	287		$	21	$	4		—		—		$	311
Growth Rate		(15	)%											(13	)%
Earnings Before Income Taxes and Discontinued Operations	$	255		$	21	$	4		—		—		$	279
Provision for Income Taxes	$	83		$	7	$	21		—		—		$	111
Earnings from Continuing Operations
Amount	$	172		$	13	$	(17	)	—		—		$	168
Growth Rate		(19	)%											(24	)%
Diluted EPS from Continuing Operations
Amount	$	0.48		$	0.04	$	(0.05	)	—		—		$	0.47
Growth Rate		(16	)%											(23	)%

The sum of the components may not equal the total due to rounding.

¹ Beginning with the first quarter of fiscal 2010, the Company eliminated the category of special items on its condensed consolidated statements of earnings and began to use “restructuring and employee severance” and “litigation (credits)/charges, net.” Prior periods have been reclassified to conform with this new presentation.

² The weighted average number of shares used in the non-GAAP calculation includes the dilutive potential Common Shares as there is income from continuing operations on a non-GAAP basis.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

	First Quarter
(in millions)	2010			2009
GAAP Effective Tax Rate from Continuing Operations		135.3	%		32.4	%
Non-GAAP Effective Tax Rate from Continuing Operations
Earnings before income taxes and discontinued operations	$	175.0		$	254.8
Restructuring and employee severance		59.7			20.7
Impairments and loss on sale of assets		23.6			3.6
Litigation (credits)/charges, net		(0.5	)		—
Other spin-off costs		42.3			—
Adjusted earnings before income taxes and discontinued operations	$	300.1		$	279.1
Provision for income taxes	$	236.8		$	82.6
Restructuring and employee severance tax benefit		17.4			7.4
Impairments and loss on sale of assets tax benefit		8.1			20.9
Litigation (credits)/charges, net tax expense		(0.2	)		—
Other spin-off costs tax expense		(155.9	)		—
Adjusted provision for income taxes	$	106.2		$	110.9
Non-GAAP effective tax rate from continuing operations		35.4	%		39.8	%
	First Quarter
	2010			2009
Debt to Total Capital		33	%		32	%
Net Debt to Capital
Current portion of long-term obligations and other short-term borrowings	$	362.3		$	158.0
Long-term obligations, less current portion and other short-term borrowings		2,103.5			3,593.3
Debt	$	2,465.8		$	3,751.3
Cash and equivalents		(1,584.8	)		(387.5	)
Net debt	$	881.0		$	3,363.8
Total shareholders’ equity	$	4,941.2		$	7,918.1
Capital	$	5,822.2		$	11,281.9
Net Debt to Capital		15	%		30	%

Forward-Looking Non-GAAP Financial Measures

The Company presents non-GAAP earnings from continuing operations and non-GAAP effective tax rate from continuing operations (and presentations derived from these financial measures) on a forward-looking basis. The most directly comparable forward-looking GAAP measures are earnings from continuing operations and effective tax rate from continuing operations. 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 restructuring and employee severance, impairments and loss on sale of assets, litigation (credits)/charges, net and other spin-off costs, 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.

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

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

Other Spin-Off Costs: costs and tax charges incurred in connection with the Company’s spin-off of CareFusion that are not included in restructuring and employee severance, impairments and loss on sale of assets and litigation (credits)/charges, net. Other spin-off costs include, among other things, the loss on extinguishment of debt and the income tax charge related to the anticipated repatriation of a portion of cash loaned to the Company’s entities within the United States for the three months ended September 30, 2009.

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

Segment Profit Margin: segment profit divided by segment revenue

Segment Profit Mix: segment profit divided by total segment profit for all segments

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

Return on Invested Capital: annualized net earnings plus other (income)/expense, net plus interest expense, net divided by (average total shareholders’ equity plus debt plus unrecorded goodwill)

Revenue Mix: segment revenue divided by total segment revenue for all segments

NON-GAAP

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

Net Debt: debt minus (cash and equivalents)

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

Non-GAAP Diluted EPS from Continuing Operations Growth Rate: (current period non-GAAP diluted EPS from continuing operations minus prior period non-GAAP diluted EPS from continuing operations) divided by prior period non-GAAP diluted EPS from continuing operations

Non-GAAP Earnings from Continuing Operations: earnings from continuing operations excluding (1) restructuring and employee severance, (2) impairments and loss on sale of assets, (3) litigation (credits)/charges, net and (4) Other Spin-Off Costs, each net of tax

Non-GAAP Earnings from Continuing Operations Growth Rate: (current period non-GAAP earnings from continuing operations minus prior period non-GAAP earnings from continuing operations) divided by prior period non-GAAP earnings from continuing operations

Non-GAAP Effective Tax Rate from Continuing Operations: (provision for income taxes adjusted for (1) restructuring and employee severance, (2) impairments and loss on sale of assets, (3) litigation (credits)/charges, net and (4) Other Spin-Off Costs) divided by (earnings before income taxes and discontinued operations adjusted for (1) restructuring and employee severance, (2) impairments and loss on sale of assets, (3) litigation (credits)/charges, net and (4) Other Spin-Off Costs)

Non-GAAP Operating Earnings: operating earnings excluding (1) restructuring and employee severance, (2) impairments and loss on sale of assets, (3) litigation (charges)/credits and (4) Other Spin-Off Costs included within distribution, selling, general and administrative expenses.

Non-GAAP Operating Earnings Growth Rate: (current period non-GAAP operating earnings minus prior period non-GAAP operating earnings) divided by prior period non-GAAP operating earnings

Non-GAAP Return on Equity: (annualized current period net earnings excluding (1) restructuring and employee severance, (2) impairments and loss on sale of assets, (3) litigation (credits)/charges, net, (4) Other Spin-Off Costs and (5) CareFusion net earnings in discontinued operations, each net of tax) divided by average shareholders’ equity adjusted for the $3.7 billion non-cash dividend issued in connection with the spin-off

Non-GAAP Return on Invested Capital: (annualized net earnings excluding (1) restructuring and employee severance, (2) impairments and loss on sale of assets, (3) litigation (credits)/charges, net, (4) Other Spin-Off Costs, (5) other (income)/expense, net, (6) interest expense, net and (7) CareFusion net earnings in discontinued operations, each net of tax) divided by (average total shareholders’ equity adjusted for the $3.7 billion non-cash dividend issued in connection with the spin-off plus debt plus unrecorded goodwill excluding unrecorded goodwill attributed to CareFusion)