Quest Diagnostics Incorporated · NYSE:DGX
Quest Diagnostics — 33rd Annual J.P. Morgan Healthcare Conference (January 2015)
19 slides from Quest Diagnostics's conference presentation, Jan 14, 2015
Slide 1: Quest Diagnostics
Quest Diagnostics Steve Rusckowski President and Chief Executive Officer 33rd Annual J.P. Morgan Healthcare Conference January 14, 2015
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure The statements in this presentation which 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 which reflect management’s current esti
Slide 3: Quest Diagnostics is integral to US healthcare system
Quest Diagnostics is integral to US healthcare system SERVES 1/3 >$7B IN SERVES 50% OF THE U.S. ADULT POPULATION AND REVENUE OF HOSPITALS ~50% WITHIN 3 YEARS 2,000 PATIENT SERVICE CENTERS >20B TEST RESULTS >200K Care360 PLACEMENTS >25 MAJOR TESTING SITES DELIVERED OVER 3,500 COURIERS PAST DECADE 10,
Slide 4: Quest is the Clear Leader in a Fragmented Market
Quest is the Clear Leader in a Fragmented Market Total U.S. Lab Market “Outside the Hospital” Independent Lab Segment Lab Segment $75 BILLION $46 BILLION $25 BILLION DGX Other POL 6% 10% 6% DGX Hospital Outpatient 26% 37% 17% 39% Small 52% 35% Independent Independent Outside the Hospital Labs Labs H
Slide 5: Quest is Positioned for Continued Market Leadership During a Time of Significant Change
Quest is Positioned for Continued Market Leadership During a Time of Significant Change Market Drivers and Dynamics Utilization Reimbursement Stakeholder Technology Dynamics Evolution • ACA Lives • Government and • Hospital Consolidation • Advances in Genomics Commercial • Population • New Models /
Slide 6: The Market Outside the Hospital is Growing 3-4%
The Market Outside the Hospital is Growing 3-4% $46 BILLION Growing 3-4% Other POL 6% 6% Hospital Outreach 39% $25B Independent Labs GROWING 35% Hospital Independent Labs GROWING 4% Outreach 2-3% 14% DGX Note: Market information as presented at November 2014 Investor Day |6
Slide 7: Empowering Better Health with Diagnostic Insights
Empowering Better Health with Diagnostic Insights |7
Slide 8: Our Strategy
Our Strategy 1 RESTORE Restore Growth 2 DRIVE Drive Operational Excellence 3 SIMPLIFY Simplify the Organization 4 REFOCUS Refocus on Diagnostic Information Services 5 DELIVER Deliver Disciplined Capital Deployment |8
Slide 9: Delivering on Investor Day 2012 Commitments
Delivering on Investor Day 2012 Commitments RESTORE DRIVE SIMPLIFY REFOCUS DELIVER 1 UNIFIED RETURNED >$1B 6.5% $700M $800M REVENUE RUN-RATE TEAM PROCEEDS FROM ASSET THROUGH SHARE REPURCHASES GROWTH SAVINGS SALES & DIVIDENDS IN Q 3 2 0 1 4 EXPECTED 3 FEWER SINCE 2011 LAYERS $1B INVESTED IN 7 ACQUISI
Slide 10: RESTORE Near Term Focus
1 RESTORE Near Term Focus Commercial Clinical-Based Partnering Excellence Focus to Grow with Hospitals Esoteric Testing | 10
Slide 11: RESTORE Longer Term Focus: Lead in Precision Medicine
1 RESTORE Longer Term Focus Lead in Leverage Capabilities Precision into Extended Medicine Care Settings Create Value Succeed from Information Internationally Assets | 11
Slide 12: DRIVE Drive Operational Excellence
2 DRIVE Drive Operational Excellence Superior Customer Experience Cost Excellence $1.3B IN RUN RATE SAVINGS THROUGH 2017 | 12
Slide 13: Identifying Key Opportunities to Meet our New $600M Goal
Identifying Key Opportunities to Meet our New $600M Goal Changing How We Operate Standardizing eEnabling Getting Paid for the Model Services What We Do • Process • eOrder • ezPay $600M • Data • eBill • Notification • Systems • ePickup • Open Balance • eCare • Upfront Payment • eResult • Convenient O
Slide 14: SIMPLIFY Simplify the Organization
3 SIMPLIFY Simplify the Organization Continue to Building a Strengthen Team High Performance Culture | 14
Slide 15: REFOCUS Refocus on Diagnostic Information Services
4 REFOCUS Refocus on Diagnostic Information Services $800M in Proceeds from 4 Divestitures Sharp Focus on Core | 15
Slide 16: DELIVER Deliver Disciplined Capital Deployment
5 DELIVER Deliver Disciplined Capital Deployment Returning Majority Investing in Value Creating of Free Cash Flow to the Business M&A Shareholders | 16
Slide 17: Making Progress in an Improving Environment
Making Progress in an Improving Environment REIMBURSEMENT UTILIZATION INVIGORATE MODERATE IMPROVING FEWER PRESSURE HEADWINDS | 17
Slide 18: Outlook
Outlook 3-Year CAGR Revenue 2% to 5% • Includes M&A • Organic growth to accelerate to market levels through period Adjusted Diluted EPS 8-10% • Excludes share repurchases Adjusted Diluted EPS, 8-10% Excluding Amortization • Excludes share repurchases Cash from Operations High single digit growth | 1
Slide 19: Quest Diagnostics
Quest Diagnostics
Quest Diagnostics — 33rd Annual J.P. Morgan Healthcare Conference (January 2015) on 6ix