Quest Diagnostics Incorporated · NYSE:DGX
Quest Diagnostics — Jefferies Healthcare Conference 2015
16 slides from Quest Diagnostics's conference presentation, Jun 2, 2015
Slide 1: Quest Diagnostics – Jefferies Healthcare Conference
Quest Diagnostics Steve Rusckowski President and Chief Executive Officer Jefferies Healthcare Conference June 2, 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 has Unmatched Size and Scale
Quest has Unmatched Size and Scale SERVES 1/3 OF THE U.S. ADULT >$7B IN SERVES 50% 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 10,000 PHLEBOTOMISTS,
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 • Advances in Commercial Consolidation Genomics • Population Reimbursement •
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 35% GROWING Hospital Independent Labs GROWING 4% Outreach 2-3% 14% DGX Note: As presented at November 2014 Investor Day 6
Slide 7: Action from Insight
Action from Insight One Vision Empowering better health with diagnostic insights Three Goals A healthier world Build value Creating an inspiring workplace Five Point Strategy Restore growth Drive operational excellence Simplify the organization Refocus on diagnostic information services Deliver disc
Slide 8: Delivering on 2012 Commitments
Delivering on 2012 Commitments RESTORE DRIVE SIMPLIFY REFOCUS DELIVER 1 UNIFIED $800M RETURNED>$1B 4% $700M THROUGH SHARE REVENUE RUN-RATE PROCEEDS FROM ASSET REPURCHASES GROWTH SAVINGS & DIVIDENDS IN 2014 DELIVERED 3 FEWER SALES SINCE 2011 L AY E R S $1B INVESTED IN 7 ACQUISITIONS 8
Slide 9: 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 9
Slide 10: Restore Growth: Near Term Focus
1 RESTORE Near Term Focus Commercial Clinical-Based Partnering Excellence Focus to Grow with Hospitals Esoteric Testing 10
Slide 11: Restore Growth: Longer Term Focus
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 Operational Excellence
2 DRIVE Drive Operational Excellence Superior Customer Experience Cost Excellence $1.3B IN RUN RATE SAVINGS THROUGH 2017 Note: As presented at November 2014 Investor Day 12
Slide 13: Simplify the Organization
3 SIMPLIFY Simplify the Organization Building a Continue to High Performance Strengthen Team Culture 13
Slide 14: Refocus on Diagnostic Information Services
4 REFOCUS Refocus on Diagnostic Information Services Ongoing Portfolio Review Sharp Focus on Core 14
Slide 15: 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 15
Slide 16: Quest Diagnostics
(@) Quest Diagnostics”
Quest Diagnostics — Jefferies Healthcare Conference 2015 on 6ix