Cardinal Health, Inc.

Thank you for standing by we'll begin momentarily as a reminder, it is star one if you'd like to enter the queue. Thank you for standing by. We will begin momentarily. Again, thank you for standing by. And as a reminder, it is star one if you would like to ask a question. Thank you for standing by. We will begin momentarily. As another reminder, it is star one if you would like to join the queue. Star one if you'd like to ask a question. Please stand by. We're about to begin. Good day and welcome to the Cardinal Health Inc. Second Quarter Fiscal Year 2022 Earnings Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Kevin Moran, Vice President of Investor Relations. Please go ahead.

Good morning and welcome. Today, we will discuss Cardinal Health second quarter fiscal 2022 results, along with an update to our FY22 outlook. You can find today's press release and presentation on the IR section of our website at ir.cardinalhealth.com. Joining me today are Mike Kaufman, Chief Executive Officer, and Jason Holler, Chief Financial Officer. During the call, we will be making forward-looking statements. The matters addressed in the statements are subject to the risks and uncertainties that could cause actual results to differ materially from those projected or implied. please refer to our SEC filings and the forward-looking statement slides at the beginning of our presentation for a description of these risks and uncertainties. Please note that during the discussion today, our comments will be on a non-GAAP basis unless they are specifically called out as GAAP. GAAP to non-GAAP reconciliations for all relevant periods can be found in the schedules attached to our press release. During the Q&A portion of today's call, we please ask that you try and limit yourself to one question so that we can try and give everyone an opportunity. With that, I will now turn the call over to Mike.

Thanks, Kevin, and good morning, everyone. Today, Jason's and my comments will be consistent with the update we provided a few weeks ago. Let me start with a few high-level thoughts. At an enterprise level, we continue to focus our efforts on three strategic priorities. optimizing our core businesses, investing for growth and innovation, and deploying capital efficiently. We continue to believe the long-term targets we announced in November are appropriate, and we remain on track to meet our $750 million enterprise cost savings target by FY23. Our pharma business is performing as planned. We've seen volumes continue to improve sequentially and we are encouraged by the growth we saw again in Q2. Looking ahead, we continue to expect pharma to realize mid single-digit growth in FY22. In our medical segment, we continue to experience unprecedented inflationary impacts and global supply chain constraints in our core U.S. medical and products distribution business. These impacts combined with lower than expected offsets from pricing actions, will significantly impact medical segment profit, consistent with our update a few weeks ago. While we believe these impacts are temporary, the timing of when they will abate remains difficult to predict. Consequently, we are urgently working to mitigate the effect of these external macroeconomic challenges on our business. We are seeing progress in other areas of the medical segment, including our lab business and growth areas, and we recently extended several key acute care distribution customers. Looking ahead, I'll elaborate on the actions we are taking to drive performance, particularly for medical, after Jason reviews our Q2 results and updated outlook.