Quest Diagnostics Incorporated · NYSE:DGX
Quest Diagnostics — 41st Annual J.P. Morgan Healthcare Conference (January 2023)
19 slides from Quest Diagnostics's conference presentation, Jan 11, 2023
Slide 1: Presented by Jim Davis, CEO and President
Presented by: Jim Davis CEO and President January 11, 2023
Slide 2: Safe harbor disclosure
Safe harbor disclosure The statements in the following presentations that are not historical facts may be forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date that they are made and that reflect management’s curr
Slide 3: What you'll hear today
What you’ll hear today Quest’s essential Key drivers to Enhancing Disciplined role as the leader accelerate operational capital in diagnostic growth excellence deployment information services 3
Slide 4: Quest Diagnostics is the leader in Diagnostic Information Services
Quest Diagnostics is the leader in Diagnostic Information Services at the center of healthcare Leader in rapidly evolving market with unsurpassed focus, scale, and innovation Serves Serves >60B 7,100+ ~24,000 ~2M ~50% 1/3 of the patient retail and phlebotomists, tests US adult data points patient pa
Slide 5: Experienced, results-driven executive leadership team
Experienced, results-driven executive leadership team Jim Davis CEO & President Sam Samad Cathy Doherty Karthik Mark Gardner Dermot EVP SVP Kuppusamy SVP Shorten Chief Financial Regional SVP Molecular SVP Officer Businesses Clinical Solutions Genomics and Strategy, M&A Oncology and Ventures Gabriell
Slide 6: Action from Insight: goals and how we operate
Action from Insig GOALS q Accelerate g Em power ng + Grow General Diagnostics ©) P 4 ; + Expand Advanced Diagnostics romote better health with gS ad sre . . . . UTCGr diagnostic insights Drive operatio Cree — < Create experie + Deliver Invigorate operational efficiencies HOW WE OPERATE + Focus on di
Slide 7: Quest is gaining share in a large, fragmented market
Quest is gaining share in a large, fragmented market 2019 Total Physician Lab Independent US Lab Market Services Segment Lab Segment $82B $52B $28B POL & other 11% Hospital Lab DGX Services 24% 36% Hospital Others Outreach Independent 54% Physician Lab LH 36% Labs Services 22% 53% 64% BEYOND 2022, P
Slide 8: The old healthcare ecosystem…
The old healthcare ecosystem… Health Patients Providers Plans 8
Slide 9: …continues to evolve
Patient/ Consumers Providers/ …continues Health Systems Health Plans to evolve Life Employers Sciences Retailers 99
Slide 10: We've forged many new relationships
We’ve forged many new relationships Hospital systems Non-profits Retailers Government 10
Slide 11: Four key drivers to accelerate growth
Four key drivers to accelerate growth Health Hospital Advanced Consumer- Plans Systems Diagnostics Initiated Testing $1B+ from Increase share in Accelerate growth $250M revenues expanded health the $50B Health to 8% on $1.2B by 2025 plan access Systems market of revenue Grow base business revenues 4
Slide 12: We have strong relationships with all major health plans
We have strong relationships with all major health plans Drive success with Enhance Drive growth value-based partnership with through contracts value-added employers services and solutions 12
Slide 13: We are positioned to grow with hospital systems
We are positioned to grow with hospital systems as they navigate turbulent market dynamics Hospitals face …and Quest can help turbulent dynamics… Consolidation Lab Mobile management services Margin pressure Population Monetize Labor challenges, costs outreach health analytics Shift to outpatient and
Slide 14: In Advanced Diagnostics, we're a leader in oncology screening and diagnosis
In Advanced Diagnostics, we’re a leader in oncology screening and diagnosis, pursuing opportunities across the cancer continuum Estimated market sizes $9-10B $1.2-1.7B $1.4-1.6B $1-1.5B $1-1.3B $0.5-1B $1B+ in revenue Opportunities to lead in the future Genetic risk Screening Diagnosis Prognosis The
Slide 15: Questhealth.com is becoming a leader in consumer-initiated testing
Questhealth.com is becoming a leader in consumer-initiated testing 15
Slide 16: We are reinvigorating our Invigorate Savings Program
We are reinvigorating our Invigorate Savings Program Reduce Denials Digital 2 ~3% 1 and Patient Experience Concessions $ targeted savings and DRIVE productivity ANNUALLY 4 Continuous Standardize, Optimize, Improvement Automate, Deploy AI 3 16
Slide 17: Balanced capital deployment: ~$16B deployed since 2012
Balanced capital deployment: ~$16B deployed since 2012 Cash Generated from Deployed ~$15.8B (through Operations and Divestitures Q3 2022) Share Repurchases ~$6.8 Returned to $16.0B Shareholders Dividends ~$2.6 CAPEX ~$3.4 Invested M&A ~$3.0 17
Slide 18: Key takeaways
Key takeaways Positioned to Investing in key Reinvigorating Strong cash accelerate growth drivers efforts to reduce flows with a growth costs and balanced capital expand margins deployment strategy 18
Slide 19: Looking ahead…
Looking ahead… February 2, 2023 Report Q4 2022 earnings Provide full year 2023 guidance March 16, 2023 Investor Day at the NYSE 19
Quest Diagnostics — 41st Annual J.P. Morgan Healthcare Conference (January 2023) on 6ix