Labcorp Holdings Inc. · NYSE:LH
Labcorp — Laboratory Corp of America Holdings — J.P. Morgan Healthcare Conference 2019
29 slides from Labcorp's conference presentation, Jan 8, 2019
Slide 1: J.P. Morgan Healthcare Conference
J.P. Morgan Healthcare Conference JANUARY 8, 2019 | SAN FRANCISCO, CA
Slide 2: Forward Looking Statement and Use of Adjusted Measures
Forward Looking Statement and Use of Adjusted Measures This presentation contains forward-looking statements including but not limited to statements with respect to financial results and the related assumptions, the impact of various factors on operating and financial results, expected savings and s
Slide 3: Agenda
Agenda Company Overview Long-Term Strategic Initiatives & 2019 Priorities Financial Update 3
Slide 4: Who We Are
Who We Are LabCorp is Our Mission a leading global is to life sciences company improve health that is deeply integrated and improve lives in guiding patient care Our Strategic Objectives are to: Deliver World-Class Diagnostics Bring Innovative Medicines to Patients Faster Use Technology to Improve t
Slide 5: LabCorp Overview
LabCorp Overview LabCorp Diagnostics Covance Drug Development • Patient database reaching • Serves the top 40 biopharma and ~50% of U.S. population high-growth emerging segments • Global footprint with business in • Proprietary data sets with >100 countries; 60,000 employees • Supports ~50% of all c
Slide 6: Attractive Growth Opportunities Across Multiple Markets
Attractive Growth Opportunities Across Multiple Markets Leadership in Large, Fragmented Markets Positions LabCorp for Continued Consolidation U.S. Clinical Lab Testing Market Global Outsourced R&D Spend Ex-U.S. Clinical Lab Testing Market LabCorp(3) Hospital Hospital Reference, $3B Outreach, $17B La
Slide 7: Expanded Revenue Base
Expanded Revenue Base Attractive Customer Mix and Geographic Presence(1) 79% 20% 10% 38% 27% 2% 3% 21% Pharma & Biotech Other Payers (2) Medicare & Medicaid Managed Care (Fee for Service) USA Rest of World Patient Managed Care (Capitated) 1. Based on nine months ended September 30, 2018. 2. Includes
Slide 8: Agenda
Agenda Company Overview Long-Term Strategic Initiatives & 2019 Priorities Financial Update 8
Slide 9: Evolving Healthcare Environment
Evolving Healthcare Environment Transition to Transition to Growing Importance Data-Driven Drug Value-Based Care of the Consumer Development Process • Customers are seeking improved • Dealing with increased trial • Increased interest in and influence efficiency in care delivery complexity, and compe
Slide 10: Differentiated, Comprehensive Solutions in Value-Based Care
Differentiated, Comprehensive Solutions in Value-Based Care Leading Laboratory Services Clinical Decision Support • Convenient nationwide access • Programs for key disease states • Comprehensive test menu • Lab reports support care guidelines • Sales and service organization • Developed by physician
Slide 11: Innovative Examples of Helping Hospitals Transition to Value-Based Care
Innovative Examples of Helping Hospitals, Health Systems, and Public Institutions Transition to Value-Based Care Utilizing a customized hepatitis C data feed to support an ACO’s patient risk stratification initiative Partnering with preferred Establishing digital Investing in Dedicated Teams, Covanc
Slide 12: Streamlining Clinical Studies
Streamlining Clinical Studies Investing in Unmatched Combination of Capabilities, Analytics and Scale Focused on Customers’ Top Needs Xcellerate® Investigator & Informatics Direct Patient Real World Engagement Evidence and Insights Patient Data Companion Virtual and Diagnostics Hybrid Trial and Biom
Slide 13: Differentiated Data and Capabilities Drive Improved Trial Design
Differentiated Data and Capabilities Drive Improved Trial Design Critical Insights Improve Protocol Design and Enhance Patient Recruitment and Retention Sponsor Patient Intelligence Opportunity for Change • Benefits from LabCorp’s direct access to consumers Biotech sponsor Roughly 50% of targeted Al
Slide 14: Differentiated Data and Capabilities Drive Improved Performance
Differentiated Data and Capabilities Drive Improved Performance • Covance Clinical Development Global Regional performance measured based on an analysis of trials processed Neurology EMEA 19.39 through Covance Central By Region 15.18 Laboratory SAVE 4.9 21.09 Oncology Americas 16.07 MONTHS • Example
Slide 15: Differentiated Data and Capabilities Drive Innovation
Differentiated Data and Capabilities Drive Innovation Deploying Technology and Leveraging LabCorp Infrastructure to Deliver Mobile and Virtual Trial Strategies Scalable Approach • LabCorp’s rich data set, direct patient Traditional Hybrid Virtual relationships, and de-centralized patient access Site
Slide 16: Extending Leadership in Companion and Complementary Diagnostics
Differentiated Data and Capabilities Drive Innovation Extending Our Industry Leadership in Companion and Complementary Diagnostics (CDx) • Exceeded $200 million in cumulative new CDx-related revenue from the acquisition of Covance through 2018 CDx-Related Backlog • Delivered approximately $300 milli
Slide 17: New Tools and Technology Create a Differentiated Consumer Experience
New Tools and Technology Create a Leading and Differentiated Consumer Experience Innovations Increase Consumer Engagement and Build Brand Loyalty • Access lab results through the LabCorp | PatientTM mobile app and the Apple Health app • Receive price estimates before certain services are performed •
Slide 18: New Channels Enhance Consumer Convenience and Access
New Channels Enhance Consumer Convenience and Access to our High-Quality Lab Services Self-Collection Patient Service Center Access • Opened 26 locations across six states • In November 2018, launched consumer-initiated • Plan to add consumer-initiated, wellness testing offering, which features samp
Slide 19: 2019 Priorities
2019 Priorities Transition to Transition to Data-Driven Growing Importance Value-Based Care Drug Development Process of the Consumer • Accelerate pace of broad-based • Build on momentum with “Data as • Expand LabCorp at Walgreens footprint health system partnerships a Differentiator” activities and
Slide 20: Agenda
Agenda Company Overview Long-Term Strategic Initiatives & 2019 Priorities Financial Update 20
Slide 21: Proven Track Record of Delivering Strong Results
Proven Track Record of Delivering Strong Results Across Key Revenue Drivers Diagnostics Drug Development Drug Development Year Over Year Trailing Twelve Month Backlog Organic Volume Growth Net Book-to-Bill (In Billions) $9.4 3.2% $8.7 1.36x $7.7 2.4% 1.33x 1.34x 2.2% $7.1 1.34x 1.25x 1.23x 1.24x 1.2
Slide 22: Financial Performance
Financial Performance Under ASC 606 Revenue Adjusted EPS(2) Free Cash Flow(3) (1) (1) 2018 Guidance 2018 Guidance 2018 Guidance(1) Midpoint Midpoint Midpoint (In Millions) (In Billions) $11.3 $12.00 $11.00 $1,400 $12.0 $10.3 $1,185 $9.6 $1,200 $10.0 $4.3 $10.00 $9.20 $8.63 $1,000 $918 $125 $3.5 $8.0
Slide 23: Track Record of Effective Capital Deployment
Track Record of Effective Capital Deployment to Build Shareholder Value Approximately $4.0 Billion in Capital Deployment Since 2016(1) Covance Share Repurchases Drug Development $0.7 Billion (17%) Acquisitions $1.4 Billion (33%) Capital Expenditures $0.8 Billion (21%) LabCorp Diagnostics Acquisition
Slide 24: Strong Balance Sheet Enables Return of Capital to Shareholders
Strong Balance Sheet Enables Return of Capital to Shareholders (1) Covance Acquisition Date: Feb. 19, 2015 Debt and Leverage Leverage = 4.2x Share Repurchases (In Millions) Chiltern Acquisition • Investment grade philosophy with targeted Leverage $1,200 Date: Sept. 1, 2017 Leverage = 3.6x leverage o
Slide 25: LabCorp is Well Positioned for Long-Term Value Creation
LabCorp is Well Positioned for Long-Term Value Creation Stable and Financial Strength Multiple Avenues Innovation Quality and Service Global Business and Flexibility for Future Growth 25
Slide 26: J.P. Morgan Healthcare Conference
J.P. Morgan Healthcare Conference JANUARY 8, 2019 | SAN FRANCISCO, CA
Slide 27: Appendix
LabCorp Appendix
Slide 28: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures (1) LABORATORY CORPORATION OF AMERICA HOLDINGS Reconciliation of Non-GAAP Financial Measures (in millions, except per share data) Twelve Months Ended December 31, Adjusted EPS 2017 2016 Diluted earnings per common share $ 11.81 $ 6.82 Restructuring and s
Slide 29: oration of America® Holdings All rights reserved.
©2018 Laboratory Corporation of America® Holdings All rights reserved.
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