Quest Diagnostics Incorporated · NYSE:DGX
Quest Diagnostics — 36th Annual J.P. Morgan Healthcare Conference (January 2018)
22 slides from Quest Diagnostics's conference presentation, Jan 10, 2018
Slide 1: Accelerating Growth, Building Value
Accelerating Growth, Building Value Steve Rusckowski Chairman, President and Chief Executive Officer 36th Annual J.P. Morgan Healthcare Conference January 10, 2018
Slide 2: Safe Harbor Disclosure
SAFE HARBOR DISCLOSURE The statements in the following presentation 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 which reflect management’s curr
Slide 3: Confidential | Internal Use Only
3 Confidential | Internal Use Only
Slide 4: Quest is a major player in healthcare…
Quest is a major player in healthcare… Access to Serves 50% ~80% of U.S. of hospitals insured lives 470,000 Physicians connected to Quanum portal Serves 1/3of the U.S. adult population 675+ and ~50% within 3 years EMR interfaces ~$7.7B 2017E revenue Q2 Solutions helped Expanding retail develop 50% o
Slide 5: …with unmatched capabilities
…with unmatched capabilities 40B+ 6,000+ Patient Patient access data points points Quest owns or controls 20,000+ ~570 pending and Phlebotomists, paramedics and 700 issued patents contract nurses worldwide ~$7.7B 2017E revenue ~100 650+ Peer reviewed Quest-employed publications MDs and PhDs publishe
Slide 6: Quest is the clear leader in a fragmented market
Quest is the clear leader in a fragmented market Total Outside the Hospital Independent U.S. Lab Market Lab Segment Lab Segment $79 billion $50 billion $27 billion POL and Other Inpatient 11% DGX Independent 37% Outside Other 24% Labs 63% the Independent 54% 56% Hospital 35% Labs 20% LH Hospital Out
Slide 7: Hospital Health Systems account for $48B (~60% of market) via three segments
Hospital Health Systems account for $48B (~60% of market) via three segments Market Characteristics DGX Opportunity Reference Reference ~$4 billion Grow reference $4 billion market and advanced Testing diagnostics Quest #1 business Hospital Outreach Hospital ~$17 billion Acquire and/or partner on In
Slide 8: 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 Stakeholder Technology Utilization Reimbursement Dynamics Evolution 8 Confidential | Internal Use Only
Slide 9: Our two-point strategy
Our two-point strategy Remain focused on diagnostic information services OPERATING Continue to strengthen organizational capabilities PRINCIPLES Deliver disciplined capital deployment and strategically aligned accretive acquisitions 9 Confidential | Internal Use Only
Slide 10: We have made steady progress since 2012…
We have made steady progress since 2012… Organic, Equivalent Revenue 7% 5% 3% 1.5% 1.7% 1% 0.7% -1% -1.6% -3% -4.6% -5% 2013 2014 2015 2016 2017 through 3Q 10 Confidential | Internal Use Only
Slide 11: We have made steady progress since 2012…
We have made steady progress since 2012… Revenue Growth from Acquisitions 7% 5% 5.6% 3% 1.1% 0.9% 1% 1.4% 1.3% -1% -3% -5% 2013 2014 2015 2016 2017 through 3Q 11 Confidential | Internal Use Only
Slide 12: We have made steady progress since 2012…
We have made steady progress since 2012… Total Equivalent Revenue Growth 7% 5% 3% 4.0% 2.6% 2.6% 1% 2.0% -1% -3% -3.2% -5% 2013 2014 2015 2016 2017 through 3Q 12 Confidential | Internal Use Only
Slide 13: Accelerate Growth Strategies
3 Offer the broadest access to diagnostic 2 Partner with health plans, hospital health systems and other innovation 4 Be recognized as the consumer-friendly risk-bearing entities provider of diagnostic information services 1 Grow 1-2% per 5 year through accretive, Accelerate Growth Support populatio
Slide 14: 2017 was a busy year
2017 was a busy year Acquisitions Hospital Outreach announced/closed in 2017 position us well for 2018 HOCC / Backus Hospital Outreach * Hospital Outreach *Signed, not yet closed Hospital Outreach 14 Confidential | Internal Use Only
Slide 15: Partner with Health Plans and Hospital Health Systems
Partner with Health Plans and Hospital Health Systems Health Plans Hospital Health Systems 15 Confidential | Internal Use Only
Slide 16: Offer the broadest access to diagnostic information
Offer the broadest access to diagnostic information 16 Confidential | Internal Use Only
Slide 17: Consumer-friendly provider
Consumer-friendly provider 17 Confidential | Internal Use Only
Slide 18: Population health, data analytics and extended care services
Population health, data analytics and extended care services 18 Confidential | Internal Use Only
Slide 19: Strategic Relationships
Provider Partner Strategic Relationships position us for growth at the center of the healthcare ecosystem Consumer Public Health 19 Confidential | Internal Use Only
Slide 20: $1.3 Billion in run-rate savings
$1.3 Billion SAVINGS $1.3 IN RUN-RATE SAVINGS billion By end of 2017 Through enhanced quality and customer experience More opportunity for cost savings beyond 2017 beyond 2017 20 Confidential | Internal Use Only
Slide 21: We will continue to drive growth and operational excellence
We will continue to drive growth and operational excellence Increase Expand Transform Deliver Inspire & Digital Margins Platform for Quality & Engage Enablement Growth Service w/ Employees QMS Cut Waste / Improve Reinvent our Growth Transform How We Customer Experience Capabilities Deliver Value 21
Slide 22: 2020 Outlook reaffirmed
2020 Outlook reaffirmed Expect to continue accelerating top line growth – Total revenue 3-5% – Acquisitions 1-2% Earnings growth faster than revenue in the mid-to-high single-digit range – We are confident in our ability to achieve this outlook under PAMA – Acceleration in industry consolidation
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