FY2008

June 27, 2007

Annual Guidance Review

Exhibit 99.02

2

Forward-Looking Statements and GAAP Reconciliation

Except

for

historical

information,

all

other

information

in

this

presentation

consists

of

forward-looking

statements

within

the

meaning

of

the

Private

Securities

Litigation

Reform

Act

of

1995,

as

amended.

These

forward-looking

statements

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:

successful

integration

of

Cardinal

Health

and

VIASYS

Healthcare;

the

ability

to

achieve

synergies

from

the

VIASYS

Healthcare

transaction;

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;

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

and

administrative

proceedings,

or

settlement

discussions

with

regulatory

authorities

or

plaintiffs

in

any

action

against

the

company;

uncertainties

related

to

finalizing

the

pending

settlement

of

class-action

securities

litigation,

including

obtaining

court

approval

of

the

settlement;

with

respect

to

future

dividends,

the

decision

by

the

board

of

directors

to

declare

such

dividends,

which

is

expected

to

consider

Cardinal

Health’s

surplus,

earnings,

cash

flows,

financial

condition

and

prospects

at

the

time

any

such

action

is

considered;

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.

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.

3

Today’s Agenda

Opening remarks

Kerry Clark

Chief Executive

Officer

Guidance Review

Jeff Henderson

Chief Financial

Officer

Q&A

4

HSCS -

Pharmaceutical

HSCS –

Medical

Healthcare Supply Chain Services

Clinical Technologies

& Services

Clinical and Medical Products

Medical Products

Manufacturing

Improving the delivery and

economics of healthcare

Making healthcare safer and

more productive

One Cardinal Health

5

Guidance Overview

•

FY 2007 Update

•

FY 2008 Outlook

•

FY 2008 Financial Targets and Goals

6

FY07 Update

Note:

1

Non-GAAP

diluted

EPS

from

continuing

operations

•

Expect

FY07

to

be

in

the

top

end

of

current

guidance:

$3.32

–

$3.40

1

CTS:  Very strong finish to the year with clear momentum for FY08

MPM:  Q4 marks return to strong performance seen in the first half

HSCS

–

P:

Q4

revenue

up

~6%

with

flat

to

declining

profitability

due

to

difficult

compare

with Q4 FY06; return to expected growth ranges in FY08

HSCS

–

M:

Continued

weakness;

focused

on

customer

service

and

transition

to

co-

located HSCS organizations

•

FY07 EPS     Impact of PTS

1

FY07 EPS Guidance (In the top end of the range)

$3.32 -

$3.40

Includes:

FY07 impact of PTS proceeds

$0.08

CAH Foundation contribution

($0.05)

Interest expense classified as PTS disc ops

$0.05

7

FY08 Outlook

•

No

change

to

current

FY08

EPS

guidance:

$3.95

–

$4.15

1

–

Includes approximately $0.40 EPS benefit from PTS proceeds related share

repurchase

(Net impact from PTS sale >$0.30 vs. FY07)

–

Includes up to $0.10 dilution from Viasys acquisition

–

Includes approximately $0.05 negative impact from SEC and related settlements

•

FY08 Segment Performance

Increasing near and long-term performance targets for segment profit driven by

continued strong demand for Alaris and Pyxis products, international growth, and profit

margin expansion

CTS

Increasing near and long-term performance targets for segment profit driven by strong

demand, impact of Viasys acquisition, and profit margin expansion

MPM

Stable to increasing segment profit and EP margins on improved operating leverage,

vendor

margins

and

capital

efficiency;

quarterly

growth

patterns

driven

by

timing

of

vendor income

HSCS –

P

Midst of turnaround; improving customer service and focused on HSCS transition;

improvements expected in latter part of FY08

HSCS –

M

Note:  ¹  Non-GAAP diluted EPS from continuing operations

8

Other Assumptions for FY08

•

$4.1B in planned share buyback expected to be complete by Q1 FY08; approximately

$3.7B repurchased to date

•

Up to $1B in additional core share repurchase expected Q2-Q4; subject to Board approval

•

High share issuances planned for FY08 due to above historical average option exercises

•

SEC and related litigation settlements to impact  EPS by approximately $0.05 per share

•

Reflects impact of Viasys and smaller tuck-in acquisitions; does not reflect any material

divestitures (other than PTS)

•

Tax rate for FY08 expected to be in the range of 31.75% to 32.00%

•

Refined methodology for allocating corporate costs in FY08

–

Positively impacts HSCS –

Pharma earnings growth by ~1.8 percentage points

–

Negatively impacts HSCS –

Medical earning growth by ~7.3 percentage points

•

Solid quarterly profit growth vs. prior year; weighted to the latter half of FY08

–

Viasys purchase accounting impact on Q1

–

Positive

impact

on

2

nd

half

from

Viasys

year-1

synergies

–

2

nd

half performance improvement from HSCS-Medical

–

Timing of generic launches

Note:  ¹  Non-GAAP diluted EPS from continuing operations

9

EPS Growth Reconciliation

Note:  ¹  Non-GAAP diluted EPS from continuing operations

FY'07

Non-GAAP EPS

(1)

(In the top end of range)

$3.32 -

$3.40

$3.95 -

$4.15

Includes:

Impact of PTS Proceeds

0.08

~

0.40

CAH Foundation Contribution

(0.05)

-

Interest Expense Classified as PTS Disc.Ops.

0.05

-

Viasys

Dilution (up to $0.10)

( -

)

Up to

(0.10)

Interest Expense Impact of Settlements

(2)

( -

)

~

(0.05)

(2) Includes SEC, Shareholder Litigation, and ERISA settlements.

FY'08

FY 2008 Financial Targets & Goals

10

As of June 27, 2007

Over FY'08 -

FY'10 3 Year Period:

Fiscal Year 2008

Revenue:

+ 8 -

10%

In range

Op Earnings

1

:

+ 10 -

13%

At or above top end of range

EPS

2

:

+ 12 -

16%

Above range ($3.95 -

$4.15 per share

3

)

Segment

Revenue

Segment

Profit

FY08 profit growth

vs. long-term goal

Drivers

HSCS -

Pharma

+ 7 -

10%

+ 7 -

10%

Top end of range

4

*

Strong organic growth plus impact of tuck-ins; Stable to increasing segment profit margins

driven by vendor margins and expense controls; Stable to increasing EP margins

driven by efficient capital usage (e.g., inventory)

*

Impact of recent large customer repricings

*

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

MPM

+ 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

-

PTS net proceeds to be utilized for incremental share repurchase

Credit Rating:

Strong investment grade

In-line

1

Non-GAAP operating earnings

2

Non-GAAP diluted EPS from continuing operations

3

Includes

impactofViasys

acquisition

(up

to

$0.10dilutive),continuing

operationsimpact

of

PTS

divestiture

(e.g.,share

repo

from

proceeds)of

approximately

$0.40

(>$0.30net

year

on

year

impact

vs.

FY07),

and

interest

expense impact of SEC/litigation settlements

4

Refined

methodology

forallocation

ofcorporate

costs

withinHSCS

in

FY08positivelyimpactsHSCS-Pprofit

growth

by1.8percentagepoints,

andnegatively

impacts

HSCS-M

profitgrowth

by

7.3

percentage

points

5

Non-GAAP return on equity

One Year Targets

Long-Term Financial Goals

11

Q&A

13

Forward-Looking Non-GAAP Financial Measures

The Company presents non-GAAP operating earnings, non-GAAP diluted EPS from continuing operations and non-GAAP

return on equity on a forward-looking basis.  The most directly comparable forward-looking GAAP financial measures are

operating earnings, diluted earnings per share 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.  Please note that the unavailable reconciling items could significantly impact the Company’s

future financial results. 

DEFINITIONS

GAAP

Operating

Cash

Flow:

net

cash

provided

by

or

used

in

operating

activities

from

continuing

operations

Non-GAAP

Economic

Profit

(EP)

Margin:

segment

net

profit

after

tax

minus

tangible

capital

multiplied

by

weighted

average

cost

of

capital

divided

by

segment

revenue;

tangible

capital

is

the

quarterly

average

calculated

as

total

assets

allocated

to

the

segment less total liabilities allocated to the segment less goodwill and intangibles, cash and equivalents and short term

investments available for sale

Non-GAAP

Diluted

EPS

from

Continuing

Operations:

earnings

from

continuing

operations

excluding

special

items

and

impairment charges and other, both net of tax, divided by diluted weighted average shares outstanding

Non-GAAP

Operating

Earnings:

operating

earnings

excluding

special

items

and

impairment

charges

and

other

Non-GAAP

Return

on

Equity:

annualized

current

period

earnings

from

continuing

operations

plus

special

items

minus

special items tax benefit divided by average shareholders' equity

GAAP/Non-GAAP Reconciliation