Presentation by Michele Holcomb, EVP, Chief Strategy & Business Development Officer, Cardinal Health, May 19th, 2021 for mHealth Israel. The pandemic accelerated and intensified key trends. Patients are more proactive in their health, Providers are taking a more holistic approach, Digital acceleration is unlocking opportunities. Patients are more proactive in their health. Online searching for health information continues to rise. People say looking up their symptoms is overwhelming, but they can’t stop. U.S. adults go online to identify a medical condition. Telehealth and home-based healthcare jumps. Telehealth makes up ~10% of physician visits; up from <1% of physician visits pre-pandemic. Hospital at home companies like Medically Home cared for 10X more patients. On-line pharmacy market accelerates. The North America online pharmacy market estimated at $31B in 2020 and it’s expected to grow 18.2% CAGR from 2020-2027. Providers are taking a more holistic approach. Social determinants of health have come into sharp focus. Economic stability, Physical environment, Education, Food Security, Community and Social Context, Healthcare Access. U.S. Population vs. COVID-19 cases. Race gaps in COVID-19 death rates. Mental health challenges escalate across the population. Significant rise in adults aged 65+ reporting anxiety or depression. More women compared to men are reporting significant increases in depression. Mental health related ER visits in youth are rising. Digital acceleration is unlocking opportunities faster than ever. Growth of digital health continues to set new records. The new gold rush: retrieving, analyzing, and leveraging data. “Most interesting” health tech M&A deals in 2020. Data and analytics critical across healthcare. Half of healthcare organizations are already using patient data predictive analytics. One third of the world’s data production (750 quadrillion bytes of data) is generated in healthcare everyday. Artificial intelligence set to transform treatment. The number of active AI startups has increased 14-fold since 2000. The healthcare AI powered tools market will exceed $34 billion by 2025.

1. 3 Key Drivers in Healthcare
Michele Holcomb
EVP, Chief Strategy & Business Development Officer
Cardinal Health
May 19, 2021

2. 2 © 2021 Cardinal Health. All Rights Reserved.
Increasing demand
Reimbursement pressure
Continued consolidation
Scientific innovation
Value-based care
Disruptors/technology
Site-of-care shift
Consumerism
Regulatory/legislative uncertainty
Litigious environment
10
9
8
7
6
5
4
3
2
1
Top healthcare trends

3. 3 © 2021 Cardinal Health. All Rights Reserved.
The pandemic accelerated and intensified key trends
Patients are more
proactive in their health
Providers are taking a
more holistic approach
Digital acceleration is
unlocking opportunities
+

4. 4 © 2021 Cardinal Health. All Rights Reserved.
Patients are more
in their health
PROACTIVE

5. 5 © 2021 Cardinal Health. All Rights Reserved.
Online searching for health information continues to rise
The average hours Americans
spend researching health
online each year1
35%
U.S. adults go online to
identify a medical condition2
People say looking up their
symptoms is overwhelming,
but they can’t stop1
2 in 3
156
1: https://www.swnsdigital.com/2020/11/do-you-spend-more-time-searching-for-medical-information-than-the-average-american/
2: https://acpinternist.org/archives/2013/11/dr-google.htm v

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Telehealth and home-based healthcare jumps
Telehealth makes up ~10% of
physician visits; up from <1% of
physician visits pre-pandemic1
2021
2019
~10x
Hospital at home companies
like Medically Home cared for
more patients
1: IQVIA COVID-19 Market Tracking 02122021.pdf

7. 7 © 2021 Cardinal Health. All Rights Reserved.
On-line pharmacy market accelerates
The North America online
pharmacy market estimated
at $31B in 2020…
1: https://www.businesswire.com/news/home/20200918005120/en/North-America-E-pharmacy-Market-to-Surpass-US-99981.7-Million-by-2027-Says-Coherent-Market-Insights-CMI
…and it’s expected
to grow 18.2% CAGR
from 2020-2027
1

8. 8 © 2021 Cardinal Health. All Rights Reserved.
Source: thedigitalapothecary.com

9. 9 © 2021 Cardinal Health. All Rights Reserved.
Providers are
HOLISTIC
taking a more
approach

10. 10 © 2021 Cardinal Health. All Rights Reserved.
Social determinants of health have come into sharp focus
Economic
stability
Physical
environment
Education
Food
security
Community
and social
context
Healthcare
access
Source: https://www.kff.org/racial-equity-and-health-policy/issue-brief/disparities-in-health-and-health-care-five-key-questions-and-answers/

11. 11 © 2021 Cardinal Health. All Rights Reserved.
*According to the CDC: Data were collected from 1,934,566 people, but race/ethnicity was only available from 932,488 (48.9%) people. CDC is working
with states to provide more information on race/ethnicity for reported cases. The percent of reported cases that include race/ethnicity is increasing.
**Population based on 2019 Census Bureau estimates
U.S. Population vs. COVID-19 cases
Asian, Non-
Hispanic
Black/
African American,
Non-Hispanic
Hispanic/Latino
1.7% 1.5%
60.4%
38.4%
5.9%
3.8%
13.4%
21.3%
18.3%
34.3%
White,
Non-Hispanic
Native Hawaiian/Other
Pacific Islander,
Non-Hispanic and
Native American/Alaska
Native, Non-Hispanic
% of COVID-19 Cases
% of U.S. Population

12. 12 © 2021 Cardinal Health. All Rights Reserved.
Race gaps in COVID-19 death rates
45-54 years 55-64 years 65-74 years 75-84 years
33-44 years
White
Black
Hispanic/Latinx
85 years+
10
9
8
7
6
5
4
3
2
1
0
Ratio
of
death
rates
vs.
whites
Source: CDC data from 2/1/20-2/6/20 and 2018 Census population estimates for USA

13. 13 © 2021 Cardinal Health. All Rights Reserved.
Mental health challenges escalate across the population
Age
12-17
More women compared to men
are reporting significant increases
in depression2
Significant rise in adults aged 65+
reporting anxiety or depression1
1 in 10 adults
in 2018
1 in 4 adults
today
Mental health related ER
visits in youth are rising3
31%
24%
Age
5-11
Women Men
83%
36%
vs.
1: One in Four Older Adults Report Anxiety or Depression Amid the COVID-19 Pandemic | KFF
2: HRE's number of the day: depression among working women | HRExecutive.com
3: Mental Health–Related Emergency Department Visits Among Children Aged 18 Years During the COVID-19 Pandemic — United States, January 1–October 17, 2020 | MMWR (cdc.gov)

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Digital acceleration is
faster than ever
UNLOCKING opportunities

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Growth of digital health continues to set new records
Average deal size is
at record levels
1: 2021-01-06 HCIT Digital Health Outlook You Should Want Exposure to This Space in 2021.pd
Digital health venture
investment totaled
$9.4B in 2020…
…and hit $7.2B in
Q1 2021 alone.
2019 2020
$20M
$30M

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The new gold rush: retrieving, analyzing, and leveraging data
“Most interesting” health tech M&A deals in 2020
Teladoc snaps up Livongo $18.5B
Siemens Healthineers picks up Varian Medical Systems $16.4B
Blackstone scoops up Ancestry $4.7B
Hims & Hers merges with Oaktree Acquisition $1.6B
Telehealth companies UpHealth, Cloudbreak merge to go public $1.35B
Change Healthcare buys pharmacy tech, imaging companies $421M+
Walmart ups digital health with CareZone acquisition $200M
Omada Health snaps up virtual physical therapy startup Physera $30M
Otsuka Pharmaceutical pulls in Proteus Digital Health $15M
Curavi Health, CarePointe, U.S. Health Systems merge to form Arkos Health Undisclosed
Source: https://www.fiercehealthcare.com/special-report/list-most-interesting-health-tech-m-a-deals-2020

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Data and analytics critical across healthcare
of healthcare organizations
are already using patient
data predictive analytics
of healthcare companies think
predictive analytics will save
them 25% per year
47% 57%
Source: https://www.digitalauthority.me/resources/state-of-digital-transformation-healthcare/
of the world’s data production
(750 quadrillion bytes of data)
is generated in healthcare everyday.
30%

18. 18 © 2021 Cardinal Health. All Rights Reserved.
Artificial intelligence set to transform treatment
84% of industry leaders think artificial
intelligence will soon transform healthcare
The healthcare AI powered tools market
will exceed $34 billion by 2025
The number of active AI startups has
increased 14-fold since 2000
Source: https://www.digitalauthority.me/resources/state-of-digital-transformation-healthcare/

19. 19 © 2021 Cardinal Health. All Rights Reserved.
The pandemic accelerated and intensified key trends
Patients are more
proactive in their health
Providers are taking a
more holistic approach
Digital acceleration is
unlocking opportunities
+