1、Cencora,Inc.Second Quarter Fiscal 2025Earnings CallMay 7,2025Certain of the statements contained in this presentation are“forward-looking statements”within the meaning of Section 27A of the Securities Act of 1933,asamended,and Section 21E of the Securities Exchange Act of 1934,as amended(the“Securit

2、ies Exchange Act”).Words such as aim,anticipate,believe,can,continue,could,estimate,expect,intend,may,might,on track,opportunity,plan,possible,potential,predict,project,”seek,should,strive,sustain,synergy,target,will,would and similar expressions are intended to identify such forward-looking stateme

3、nts,butthe absence of these words does not mean the statement is not forward-looking.These statements are based on managements current expectations andare subject to uncertainty and changes in circumstances and speak only as of the date hereof.These statements are not guarantees of future performanc

4、eand are based on assumptions and estimates that could prove incorrect or could cause actual results to vary materially from those indicated.A more detaileddiscussion of the risks and uncertainties that could cause our actual results to differ materially from those indicated is included(i)in the Ris

5、k Factors andManagements Discussion and Analysis sections in the Companys Annual Report on Form 10-K for the fiscal year ended September 30,2024 andelsewhere in that report and(ii)in other reports filed by the Company pursuant to the Securities Exchange Act.The Company undertakes no obligation topub

6、licly update or revise any forward-looking statements,except as required by the federal securities laws.GAAP/non-GAAP ReconciliationIn an effort to provide additional and useful information regarding Cencoras financial results and other financial information as determined by generallyaccepted accoun

7、ting principles(GAAP),certain materials presented during this event include non-GAAP information.A reconciliation of that information toGAAP and other related information is available in the supplemental material attached as an appendix to this presentation and posted on our website,.Cautionary Note

8、 Regarding Forward Looking Statements 2Creating differentiated value for our stakeholdersWhy we existWe are united in our responsibility to create healthier futuresOur areas of focusSpecialty medicine and servicesCommunity providersCustomer partnershipsGlobal access and opportunity*Growth rates prov

9、ided on a constant currency basisDiverse expertise focused on improving global health3Note:For more information related to non-GAAP financial measures,refer to the supplemental material included in the appendix of this presentation and posted on our website,.Lead with market leaders Leverage infrast

10、ructure to increase efficiency and support our customers in meeting consumer needsInvest in innovation to further drive differentiation Expand on leadership in Specialty Contribute to Rx outcomesAdvance core businessEnhance capabilitiesand growthAT A GLANCE8%12%*targeted long-term adjusted diluted E

11、PS growth51,000+team membersLong-term vision of expanding leadership and growing higher-margin,high-growth businesses Company highlights Second quarter highlights&strategic overviewCencora released its 2024 Corporate Responsibility Reportandmicrosite,outliningtheintegrationwithbusinessobjectivesanda

12、focusonbusinessresiliencyandsustainable operations.For the seventh consecutive year,selected information within the 2024 report was assured byERM Certification and Verification Services.Adjusted diluted EPS(1)increased 16.3%year-over-year to$4.42.Cencora is updating its fiscal year 2025 adjusted dil

13、uted EPS(1)guidance to a range of$15.70 to$15.95,up from the intra-quarterupdate of$15.30 to$15.60,to reflect the continued momentum inthe U.S.Healthcare Solutions segment.Cencoras Board of Directors declared a quarterly cash dividend of$0.55 per common share.Financial highlights&fiscal 2025 guidanc

14、e4(1)See tables and supplemental information at end of presentation for GAAP to non-GAAP reconciliations.Note:For more information related to non-GAAP financial measures,refer to the section titled“Supplemental Information Regarding Non-GAAP Financial Measures”in the appendix of this presentation an

15、d posted on our website,.Financial results$3.6876.1%$718M70.6%$104M62.2%$3.1B20.6%195.1M(3.0)%$75.5B10.3%$1.0B87.3%$2.0B2.0%$75.5B 10.3%6Q2 fiscal 2025 financial summaryRevenuey/y%Consolidated resultsGAAPAdjusted(non-GAAP)(1)Gross profity/y%Operating expensesy/y%Operating incomey/y%Interest expense,

16、nety/y%Effective tax rate22.7%20.8%Net income attributable to Cencoray/y%$863M12.7%Diluted earnings per sharey/y%$4.4216.3%Diluted shares outstandingy/y%(1)See tables at end of presentation for GAAP to non-GAAP reconciliationsThe financial results presented on a constant currency basis are non-GAAP

17、financial measures.For more information related to non-GAAP financial measures,refer to the section titled“Supplemental Information Regarding Non-GAAP Financial Measures”in the appendix of this presentation and posted on our website,.10.3%Revenue growth y/y15.3%Consolidated adjustedoperating income(

18、1)growth y/y22.8%U.S.Healthcare Solutions segmentoperating income growth y/y(17.3)%International Healthcare Solutions segmentoperating income decline y/y(13.9)%International Healthcare Solutions segmentconstant currency operating income(1)decline y/y16.3%Adjusteddiluted EPS(1)growth y/y195.1M(3.0)%$

19、2.9B15.2%$1.2B15.3%$1.7B15.2%$104M62.2%7 Revenue increased 11.4%to$68.3 billiondue to overall market growth primarily drivenby unit volume growth,including increasedsales of products labeled for diabetes and/orweight loss in the GLP-1 class and specialtyproducts to physician practices and healthsyst

20、ems.Operating income increased 22.8%to$1.0billion primarily due to the increase in grossprofit,as a result of increased product salesand the January 2025 acquisition of RCA,offset in part by the increase in operatingexpenses.U.S.Healthcare Solutions segment Revenue$68.3BFinancial resultsQ2 fiscal 20

21、25Q2fiscal 2024y/y%Operating income$1.0B$0.8BQ2 fiscal 2025 financial results11.4%22.8%Gross profit3.11%Percentages of RevenueQ2fiscal 2025Q2fiscal 20242.74%Operating expenses1.59%1.37%Operating income1.51%1.37%$61.3B8Revenue of$7.2 billion was up 0.7%on anas reported basis.On a constant currencybas

22、is,revenue increased by 5.7%.Operatingincome decreased 17.3%to$159.3 million on an as-reported basisprimarily due to lower operating income atour global specialty logistics business andour European distribution business.On aconstant currency basis,operating incomedecreased 13.9%.International Health

23、care Solutions segmentRevenue$7.2BFinancial results(as reported)Q2 fiscal 2025Q2fiscal 2024y/y%Constant currency(1)y/y%$7.1BOperating income$159.3M$192.7MQ2 fiscal 2025 financial results0.7%Gross profit11.10%Percentages of revenue(as reported)Q2fiscal 2025Q2fiscal 202411.95%Operating expenses8.88%9.

24、24%Operating income2.22%2.71%5.7%(13.9)%(17.3)%(1)The financial results presented on a constant currency basis are non-GAAP financial measures.For more information related to non-GAAP financial measures,refer to the section titled“Supplemental Information Regarding Non-GAAP Financial Measures”in the

25、 appendix of this presentation and posted on our website,.Fiscal 2025 guidance10Fiscal 2025 guidance Revenue8%to 10%As reportedConstant currency(1)Adjusted operating income(1)(2)13.5%to 15.5%ConsolidatedRevenue9%to 11%Operating income17.5%to 19.5%U.S.Healthcare SolutionsRevenue3%to 4%6%to 8%Operatin

26、g income-4%to-1%-3%to flatInternational Healthcare SolutionsBold numbers indicate updates to FY25 guidance.1 The Company does not provide forward-looking guidance on a GAAP basis as certain information,the probable significance of which cannot be determined,is not available and cannot be reasonably

27、estimated.Please refer to the section titled“Supplemental Information Regarding Non-GAAP Financial Measures”in the appendix to this presentation Note:The financial results presented on a constant currency basis are non-GAAP financial measures.For more information related to non-GAAP financial measur

28、es,refer to the section titled“Supplemental Information Regarding Non-GAAP Financial Measures”in the appendix of this presentation 11Fiscal 2025 guidance continued Fiscal 2025 GuidanceFiscal 2024 ActualAdjusted effective tax rate(1)21%Diluted weighted average shares outstandingNet interest expense$2

29、90 to$310 millionAdjusted free cash flow(1)$2.0 to$3.0 billionAdjusted diluted earnings per share(1)195.0 to 195.5 million$15.70 to$15.95Capital expenditures$600 million$13.76$157 million20.8%200.3 million$3.1 billion$487 millionBold numbers indicate updates to FY25 guidance.1 The Company does not p

30、rovide forward-looking guidance on a GAAP basis as certain information,the probable significance of which cannot be determined,is not available and cannot be reasonably estimated.Please refer to the section titled“Supplemental Information Regarding Non-GAAP Financial Measures”in the appendix of this

31、 presentation.12Advancing corporate responsibility initiatives to create healthier futures around the world Building resilient and sustainable operationsBusiness Resilience:We have performed physical risk assessments using climate models to inform operational planning.Renewable Energy Initiatives:We

32、 continue to explore renewable energy options to enhance sustainability.In FY24,our World Courier facilities in Stockholm and Copenhagen installed Photovoltaic(PV)systems,both now operational,with plans for installations in Zurich and Singapore in FY25.Advancements in Sustainable Transportation:Incr

33、eased our use of alternative fuel vehicles in our fleet and launched the strategic transition to reusable totes in our US Animal Health business.Investing in our people and communitiesProactive Environmental Health and Safety(EHS)Initiatives:Collaborated cross-functionally and implemented a new EHS

34、metrics dashboard to enable proactive risk management,regulatory compliance,and a strengthened EHS culture within our operations.Cencora Impact Foundation Initiatives:Donated more than$6.4 million in FY24 to global nonprofit partners,focusing on healthcare access,animal health,and prescription drug

35、safety.Emergency Preparedness and Disaster Relief:Supported communities and team members during and after disasters through proactive support and emergency response initiatives,including a response to the California wildfires.Embracing a culture of transparency,ethics,and integrity Transparency in R

36、eporting:Our 9th Corporate Responsibility report,aligned with GRI,SASB,TCFD,UN SDGs,was released in March.Compliance and Integrity:In FY24,Cencora continued its focus on maintaining the highest standards of ethical conduct and compliance,fostering a culture of integrity and accountability across all

37、 operations.Global Corporate ResponsibilityAppendix 14Three Months Ended March 31,2025Gross ProfitOperatingExpensesOperating IncomeIncome Before Income TaxesIncome Tax ExpenseNet Income Attributable to CencoraDilutedEarningsPer ShareGAAP$3,059,809$2,023,619$1,036,190$928,656$211,239$717,871$3.68Gain

38、s from antitrust litigation settlements(198,646)(198,646)(198,646)(54,162)(144,484)(0.74)LIFO expense39,46939,46939,46910,89928,5700.15Turkey highly inflationary impact14,47914,47918,39418,3940.09Acquisition-related intangibles amortization(137,011)137,011137,01135,632100,6280.52Litigation and opioi

39、d-related expenses(11,524)11,52411,5242,9648,5600.04Acquisition-related deal and integration expenses(99,380)99,38099,38016,51782,8630.42Restructuring and other expenses(52,857)52,85752,85713,95338,9040.20Other,net5,7639524,8110.02Tax reform 1(4,855)(11,367)6,5120.03Adjusted Non-GAAP$2,915,111$1,722

40、,847$1,192,264$1,089,553$226,627$862,629$4.42Adjusted Non-GAAP%changes vs.prior year period15.2%15.2%15.3%12.5%12.0%12.7%16.3%Percentages of Revenue:GAAPAdjustedNon-GAAPGross profit4.06%3.86%Operating expenses2.68%2.28%Operating income1.37%1.58%CENCORA,INC.GAAP TO NON-GAAP RECONCILIATIONS(in thousan

41、ds,except per share data)(unaudited)1Tax reform includes the foreign currency remeasurement of Swiss deferred tax assets arising from 2020 Swiss tax reform and the amortization of those deferred tax assets.2The sum of the components does not equal the total due to rounding.Note:For more information

42、related to non-GAAP financial measures,refer to the section titled“Supplemental Information Regarding Non-GAAP Financial Measures”of this presentation.215Three Months Ended March 31,2024Gross ProfitOperatingExpensesOperatingIncomeIncomeBeforeIncome TaxesIncome TaxExpenseNet Income Attributable to Ce

43、ncoraDilutedEarningsPer ShareGAAP$2,538,023$1,984,764$553,259$467,066$45,861$420,775$2.09Gains from antitrust litigation settlements(8,714)(8,714)(8,714)(4,259)(4,455)(0.02)LIFO credit(22,835)(22,835)(22,835)(7,915)(14,920)(0.07)Turkey highly inflationary impact23,05323,05323,21023,2100.12Acquisitio

44、n-related intangibles amortization(164,799)164,799164,79949,444114,9220.57Litigation and opioid-related expenses 1(225,985)225,985225,98551,093174,8920.87Acquisition-related deal and integration expenses(22,610)22,61022,6107,14415,4660.08Restructuring and other expenses(75,627)75,62775,62716,45359,1

45、740.29Other,net7,3809166,4640.03Tax reform and discrete tax items 213,23043,658(30,428)(0.15)Adjusted Non-GAAP$2,529,527$1,495,743$1,033,784$968,358$202,395$765,100$3.803Percentages of Revenue:GAAPAdjustedNon-GAAPGross profit3.71%3.70%Operating expenses2.90%2.19%Operating income0.81%1.51%CENCORA,INC

46、.GAAP TO NON-GAAP RECONCILIATIONS(in thousands,except per share data)(unaudited)1Includes a$214.0 million opioid litigation accrual.2Includes a tax benefit attributable to an adjustment of the Swiss valuation allowance(due to an increase in projected Swiss income and DTA utilization)and the foreign

47、currency remeasurement of Swiss deferred tax assets arising from 2020 Swiss tax reform and theamortization of those deferred tax assets.3The sum of the components does not equal the total due to rounding.Note:For more information related to non-GAAP financial measures,refer to the section titled“Sup

48、plemental Information Regarding Non-GAAP Financial Measures”of this presentation.To supplement the financial measures prepared in accordance with U.S.generally accepted accounting principles(GAAP),the Company uses the non-GAAP financial measures described below.The non-GAAP financial measuresshould

49、be viewed in addition to,and not in lieu of,financial measures calculated in accordance with GAAP.These supplemental measures may vary from,and may not be comparable to,similarly titled measures by othercompanies.The non-GAAP financial measures are presented because management uses non-GAAP financia

50、l measures to evaluate the Companys operating performance,to perform financial planning,and to determine incentivecompensation.Therefore,the Company believes that the presentation of non-GAAP financial measures provides useful supplementary information to,and facilitates additional analysis by,inves

51、tors.The presented non-GAAPfinancial measures exclude items that management does not believe reflect the Companys core operating performance because such items are outside the control of the Company or are inherently unusual,non-operating,unpredictable,non-recurring,or non-cash.We have included the

52、following non-GAAP earnings-related financial measures in this presentation:Adjusted gross profit and adjusted gross profit margin:Adjusted gross profit is a non-GAAP financial measure that excludes gains from antitrust litigation settlements,LIFO expense(credit),and Turkey highly inflationaryimpact

53、.Adjusted gross profit margin is the ratio of adjusted gross profit to total revenue.Management believes that these non-GAAP financial measures are useful to investors as a supplemental measure of the Companysongoing operating performance.Gains from antitrust litigation settlements,LIFO expense(cred

54、it),and Turkey highly inflationary impact are excluded because the Company cannot control the amounts recognized or timing ofthese items.Gains from antitrust litigation settlements relate to the settlement of lawsuits that have been filed against brand pharmaceutical manufacturers alleging that the

55、manufacturer,by itself or in concert with others,tookimproper actions to delay or prevent generic drugs from entering the market.LIFO expense(credit)is affected by changes in inventory quantities,product mix,and manufacturer pricing practices,which may be impacted bymarket and other external influen

56、ces.Adjusted operating expenses and adjusted operating expense margin:Adjusted operating expenses is a non-GAAP financial measure that excludes acquisition-related intangibles amortization;litigation and opioid-relatedexpenses,net;acquisition-related deal and integration expenses;and restructuring a

57、nd other expenses.Adjusted operating expense margin is the ratio of adjusted operating expenses to total revenue.Acquisition-relatedintangibles amortization is excluded because it is a non-cash item and does not reflect the operating performance of the acquired companies.We exclude acquisition-relat

58、ed deal and integration expenses and restructuringand other expenses that relate to unpredictable and/or non-recurring business activities.We exclude the amount of litigation and opioid-related expenses,net that is unusual,non-operating,unpredictable,non-recurring or non-cash in nature because we be

59、lieve these exclusions facilitate the analysis of our ongoing operational performance.Adjusted operating income and adjusted operating income margin:Adjusted operating income is a non-GAAP financial measure that excludes the same items that are described above and excluded from adjusted gross profit

60、and adjusted operating expenses.Adjusted operating income margin is the ratio of adjusted operating income to total revenue.Management believes that these non-GAAP financial measures are useful to investors as asupplemental way to evaluate the Companys performance because the adjustments are unusual

61、,non-operating,unpredictable,non-recurring or non-cash in nature.Adjusted income before income taxes:Adjusted income before income taxes is a non-GAAP financial measure that excludes the same items that are described above and excluded from adjusted operating income.In addition,the gain(loss)on reme

62、asurement of an equity investment,the loss on the divestiture of non-core businesses,and the gain(loss)on the currency remeasurement of the deferred tax asset relating to 2020 Swiss tax reform areexcluded from adjusted income before income taxes because these amounts are unusual,non-operating,and no

63、n-recurring.Management believes that this non-GAAP financial measure is useful to investors because itfacilitates the calculation of the Companys adjusted effective tax rate.Adjusted income tax expense:Adjusted income tax expense is a non-GAAP financial measure that excludes the income tax expense a

64、ssociated with the same items that are described above and excluded from adjustedincome before income taxes.Certain discrete tax expense(benefits)are also excluded from adjusted income tax expense.Further,the amortization of deferred tax assets relating to 2020 Swiss tax reform is excluded fromadjus

65、ted income tax expense.Management believes that this non-GAAP financial measure is useful to investors as a supplemental way to evaluate the Companys performance because the adjustments are unusual,non-operating,unpredictable,non-recurring or non-cash in nature.Adjusted effective tax rate:Adjusted e

66、ffective tax rate is a non-GAAP financial measure that is determined by dividing adjusted income tax expense by adjusted income before income taxes.Management believes that thisnon-GAAP financial measure is useful to investors because it presents an effective tax rate that does not reflect unusual,n

67、on-operating,unpredictable,non-recurring,or non-cash amounts or items that are outside the controlof the Company.Supplemental information regarding non-GAAP financial measures 16Supplemental information regarding non-GAAP financial measures(cont.)17Adjusted net income attributable to Cencora:Adjuste

68、d net income attributable to the Company is a non-GAAP financial measure that excludes the same items that are described above.Management believes that this non-GAAP financial measure is useful to investors as a supplemental way to evaluate the Companys performance because the adjustments are unusua

69、l,non-operating,unpredictable,non-recurring or non-cash in nature.Adjusted diluted earnings per share:Adjusted diluted earnings per share excludes the per share impact of adjustments including gains from antitrust litigation settlements;LIFO expense(credit);Turkey highly inflationary impact;acquisit

70、ion-related intangibles amortization;litigation and opioid-related expenses,net;acquisition-related deal and integration expenses;restructuring and other expenses;the gain(loss)on remeasurement of an equityinvestment;the loss on the divestiture of non-core businesses;and the gain(loss)on the currenc

71、y remeasurement related to 2020 Swiss tax reform,in each case net of the tax effect calculated using the applicable effective taxrate for those items.In addition,the per share impact of certain discrete tax items,and the per share impact of the amortization of deferred tax assets relating to 2020 Sw

72、iss tax reform are also excluded from adjusted dilutedearnings per share.Management believes that this non-GAAP financial measure is useful to investors because it eliminates the per share impact of the items that are outside the control of the Company or that we consider tonot be indicative of our

73、ongoing operating performance due to their inherent unusual,non-operating,unpredictable,non-recurring,or non-cash nature.Adjusted Free Cash Flow:Adjusted free cash flow is a non-GAAP financial measure defined as net cash provided by operating activities,excluding significant unpredictable or non-rec

74、urring cash payments or receipts relating tolegal settlements,minus capital expenditures.Adjusted free cash flow is used internally by management for measuring operating cash flow generation and setting performance targets and has historically been used as one ofthe means of providing guidance on po

75、ssible future cash flows.For the six months ended March 31,2025,adjusted free cash flow of$176.0 million consisted of net cash provided by operating activities of$632.5 million,minuscapital expenditures of$235.0 million and gains from antitrust litigation settlements of$221.5 million.The Company doe

76、s not provide forward looking guidance on a GAAP basis for free cash flow because the timing and amountof favorable and unfavorable settlements excluded from this metric,the probable significance of which cannot be determined,are unavailable and cannot be reasonably estimated.The Company also presen

77、ts certain information related to current period operating results in“constant currency,”which is a non-GAAP financial measure.These amounts are calculated by translating current period resultsat the foreign currency exchange rates used in the comparable period in the prior year.The Company presents

78、 such constant currency financial information because it has significant operations outside of the United States reportingin currencies other than the U.S.dollar and this presentation provides a framework to assess how its business performed excluding the impact of foreign currency exchange rate flu

79、ctuations.For the second quarter of fiscal 2025,(i)revenue of$75.5 billion was negatively impacted by foreign currency translation of$357.7 million,resulting in revenue on a constant currency basis of$75.8 billion,and(ii)adjusted operating income of$1,192.3 million wasnegatively impacted by foreign

80、currency translation of$6.6 million,resulting in adjusted operating income on a constant currency basis of$1,198.9 million.For the second quarter of fiscal 2025 in the International HealthcareSolutions segment,(i)revenue of$7.2 billion was negatively impacted by foreign currency translation of$357.7

81、 million,resulting in revenue on a constant currency basis of$7.5 billion,and(ii)operating income of$159.3 million wasnegatively impacted by foreign currency translation of$6.6 million,resulting in operating income on a constant currency basis of$165.9 million.For the six months ended March 31,2025(

82、i)revenue of$156.9 billion was negativelyimpacted by foreign currency translation of$574.4 million,resulting in revenue on a constant currency basis of$157.5 billion,and(ii)adjusted operating income of$2,141.6 million was negatively impacted by foreign currencytranslation of$18.4 million,resulting i

83、n operating income on a constant currency basis of$2,159.9 million.For the six months ended March 31,2025,in the International Healthcare Solutions segment,(i)revenue of$14.6 billion wasnegatively impacted by foreign currency translation of$574.4 million,resulting in revenue on a constant currency b

84、asis of$15.2 billion,and(ii)operating income of$341.4 million was negatively impacted by foreign currencytranslation of$18.4 million,resulting in operating income on a constant currency basis of$359.8 million.In addition,the Company has provided non-GAAP fiscal year 2025 guidance for diluted earning

85、s per share,operating income,effective income tax rate,and free cash flow that excludes the same or similar items as those thatare excluded from the historical non-GAAP financial measures,as well as significant items that are outside the control of the Company or inherently unusual,non-operating,unp

86、redictable,non-recurring or non-cash in nature.TheCompany does not provide forward looking guidance on a GAAP basis for such metrics because certain financial information,the probable significance of which cannot be determined,is not available and cannot be reasonablyestimated.For example,LIFO expen

87、se(credit)is largely dependent upon the future inflation or deflation of brand and generic pharmaceuticals,which is out of the Companys control,and acquisition-related intangibles amortizationdepends on the timing and amount of future acquisitions,which cannot be reasonably estimated.Similarly,the timing and amount of favorable and unfavorable settlements,the probable significance of which cannot be determined,are unavailable and cannot be reasonably estimated.Contact18Bennett S.Murphy Senior Vice PresidentHead of Investor Relations and TreasuryBennett.M