2. Who is Quest Diagnostics?
•Leader in Providing Healthcare Insights and Solutions
• Comprehensive Diagnostic Testing
• Routine ——» Esoteric
Diagnose
•
Monitor
•
Predict
•
Prevent
•
–Advanced Information Technology Solutions
• Improve Care and Efficiency
–Facilitate Introduction of New Therapeutics
• Clinical Trials Testing
–Innovative Diagnostic Products
• Enable Care Closer to the Patient
–Risk Assessment Solutions to Life Insurance Industry
Touching Patients 150 Million Times Each Year
Patients | Growth | People
3. History of Strong Growth
20%
Revenue 1999-2008
10-year CAGR 20%
27%
EPS* 1999-2008
10-year CAGR 27%
$ in billions except EPS
Patients | Growth | People
*EPS is from continuing operations
4. Favorable Industry Trends
Essential Healthcare Service
• Growing and Aging Population
• Scientific & Medical Innovations
• Personal Interest in Health
• Convergence of Information
Influences >70% of Healthcare Decisions
Patients | Growth | People
5. Moving to Higher Growth,
Higher Margin Testing Segments
2000 Revenue 2008 Revenue
Total Revenue: $3.4 Billion Total Revenue: $7.2 Billion
Patients | Growth | People
7. Our Longer Term Goals
•Undisputed World Leader in Diagnostic Testing,
Information and Services
•Profitably Grow > Industry Rate
•Expand Operating Income to 20% of Revenues
•Expand International Operations to ~10% of Revenues
Patients | Growth | People
8. Strategy to Drive Profitable Growth
Leverage Capabilities To Create Differentiation
Deliver Superior Patient Experience
Continuously Drive Six Sigma Quality
Lead in Medical Innovation
Leverage Unparalleled Assets & Capabilities
Expand Diagnostic Scope
Expand Geographic Reach
Sustainable Competitive Advantage Patients | Growth | People
9. Delivering Superior Patient Experience
Patient Gold Standards
Prompt, caring, courteous service
PSC Appointment Scheduling
First laboratory with PSC appointment scheduling
Reduces patient wait time; improves convenience
Google Health Collaboration
Facilitate patient-physician communications
Secure electronic access to lab results
Patients | Growth | People
10. Leading Medical Innovator
Multiple Channels to Access New Technology
Internal Development – Nichols Institute
Joint Development Relationships
Licensing/Distribution Relationships
Focused on Addressing Areas of Significant Patient Need
Cancer, Cardiovascular Conditions, Infectious Disease
Less invasive; less painful; more convenient for patients
Leading Experts for Medical Consultation
900 MDs & PhDs
Culture of Collaborative Innovation
Academic relationships
Investment in innovative firms and technologies
Partnerships with pharmaceutical companies
Patients | Growth | People
11. Continual Stream of
Diagnostic Testing Advances
Cancer Transplantation/Coagulation
LeumetaTM HLA FDA-registered lab
HE-4 Coag consultations
H/I Breast Recurrence New Technologies/New Applications
Cancer of Unknown Primary
XSenseTM (Fragile X)
Septin 9 Colorectal Cancer Test
ClarisureTM (CGH Microarray)
Cardiovascular Disease
LC/MS for Amino Acids
Ion Mobility (Lipid Profile)
LC-MS/MS
Infectious Disease
HepaScoreTM
Chikungunya
Patients | Growth | People
Italics – under development
12. Personalized and Targeted Medicine
is an Emerging Opportunity
Enables More Appropriate Drug Therapy
Rituxan® Rituxan® Sensitivity (CD20)
Herceptin® Her2
Campath® Campath Sensitivity (CD2)
Irinotecan UGT1A1
Erbitux® RAS
Warfarin CYP450 2C9
Carbamazephine HLA - screens out certain Asian patients
Abacavir HLA - predisposition to hypersensitivity
Aspirin Monitor personal resistance levels
Improves Disease Management
Leumeta™ CellSearch
Hepascore™
Improving Patient Care …..Reducing Medical Costs
Patients | Growth | People
13. Unparalleled Assets and Capabilities
Serving 50% of US Hospitals & Physicians
2,300 Patient Service Centers and Laboratories
900 MD’s and PhD’s
8,500 Phlebotomists &
5,000 Paramedical professionals
3,500 Courier Vehicles and 25 Airplanes
- making 90,000 stops each day
>140,000 Physician users of Care360
POC testing in >100 Countries
Testing ~1,000,000 Patients a Day through our Labs and POC Devices
Patients | Growth | People
14. Expanding Diagnostic Scope
Near Patient Testing
Opportunity to Improve Patient Care
Attractive benefits for hospitals,
physician offices, rural and
international markets
Enables more timely and
effective decisions
Expanding product menu
Platform technology
Results integrated into Care360
Reducing Medical Costs
Patients | Growth | People
15. Expanding Geographic Reach
Broadening Our Geographical Coverage
Clear leadership in U.S….with room to grow
Leverage existing labs in Puerto Rico, Mexico, and UK
Providing cervical cancer screening for Ireland NHS
Increase foreign testing sent to Nichols Institute
Entered India – serving multiple markets
Increasing Market Opportunity
Patients | Growth | People
16. On Track to Reduce Costs by $500 Million
Leverage Lean Six Sigma to Improve Efficiency
Streamline Lab Operations
Optimize Logistics Routes
and PSC Resources
Improve Billing and Call
Center Operations
Leverage Purchasing
Capabilities
$300 million savings run rate exiting 2008
Maintain Service Levels & Stimulate Growth
Patients | Growth | People
17. 2008 Results
Strong Growth in Revenue, Earnings and Cash Flow
$7.2 B, ↑ 8.1%
Revenues
16.9%, ↑ 0.6%
Operating Income
↑14%
EPS $3.23,
Cash from Operations $1.1 Billion
Patients | Growth | People
18. 2009 Guidance
Continued Revenue & Earnings Growth
↑ ~3%
Revenues
Operating Income % approaching 18%
$3.50 - $3.70, ↑ 8% - 15%
EPS
Cash from Operations * ~$1 billion
CapEx ~$200 million
Strenghening our Leadership Position
*Excludes expected payment of the $316 million reserve
Patients | Growth | People
established for the previously disclosed NID matter
19. Building on Strength
Leader in a vital and growing industry
Uniquely positioned with unparalleled assets & capabilities
History of disciplined growth and successful acquisitions
Strong cash generator, with a strong balance sheet
Proven management team
Focused on Execution
Patients | Growth | People
