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1 INVESTOR DAY 2025 INVESTOR DAY 2025 Investor Day 2025
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Jim Davis Chairman, CEO, and President Driving Sustainable Growth, Delivering Long-term Value
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3 INVESTOR DAY 2025 Safe harbor disclosure The statements in this press release 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 estimates, projections, expectations or beliefs and which involve risks and uncertainties that could cause actual results and outcomes to be materially different. Risks and uncertainties that may affect the future results of the company include, but are not limited to, adverse results from pending or future government investigations, lawsuits or private actions, the competitive environment, the complexity of billing, reimbursement and revenue recognition for clinical laboratory testing, changes in government regulations, changing relationships with customers, payers, suppliers or strategic partners, acquisitions and other factors discussed in the company’s most recently filed Annual Report on Form 10-K and in any of the company’s subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including those discussed in the “Business,” “Risk Factors,” “Cautionary Factors that May Affect Future Results,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of those reports. In the following presentations, references to adjusted EPS refer to adjusted diluted EPS. Any references to operating margin(s) refer to adjusted operating income as a percentage of net revenues. Any references to free cash flow refer to cash flow from operations less capital expenditures.
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4 INVESTOR DAY 20254 Key highlights The clinical lab market is expected to remain strong driven by health trends and diagnostic innovation We have a proven strategy to generate above market growth in key channels We expect our investments in advanced diagnostics to deliver double-digit revenue growth across 5 key clinical areas Our operational strategy is designed to improve quality, customer experiences, and productivity Long-term outlook beyond 2025: 4% - 5% revenue CAGR and 7% - 9% adjusted EPS CAGR
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5 INVESTOR DAY 2025 We help people make the best decisions to improve health by providing high-quality and affordable diagnostic testing insights and services using our scale and extensive reach
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6 INVESTOR DAY 2025 Global including in Canada through LifeLabs® ~217M requisitions in 2024 50% US hospitals and physicians served annually 1/3 US adults served annually >90% of insured lives in the US ~850 MDs/PhDs ~8K patient access sites ~5K vehicles >80B patient data points >55K employees ~1,600 patents/ patents pending Quest is a leading provider of diagnostic information services
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7 INVESTOR DAY 2025 Quest 6% Other Ind Labs 14% Other Hospital 80% Quest is well positioned in the nearly $90 billion US lab market POL: physician office laboratory. Hospital Outreach 35% POL 11% Quest 12% Other Independent Labs 42% Physician Channel $58B 2024 Total US Lab Market $89B Hospital Channel $31B 2% - 4% CAGR 1% - 2% CAGR Physician 65% Hospital 35% 1% - 3% CAGR
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8 INVESTOR DAY 2025 We are well positioned for growth in Canada’s lab market Hospital/Public Health 79% Community Labs 8% LifeLabs 13% 2024 Total Canadian Lab Market ~$5B ~3% CAGR British Columbia Ontario Saskatchewan • Leading provider of clinical laboratory testing in Canada • Headquartered in Toronto • 5 primary labs and 350 collection centers • Broadening access to lab services, including advanced diagnostics • Expanding into new provinces • Increasing consumer interest Strong growth opportunities in Canada 41M people
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9 INVESTOR DAY 2025 Nearly 90% of our revenues come from physicians and hospitals ~$9.9B 2024 revenues +6.7% growth year-over-year By Customer Channel By Payer Other 12% Hospitals 20% Physicians 68% Medicaid/Managed Medicaid 8% Commercial Health Plans 27% Client Bill 35% Patients 12% Canadian Government 2% 13% administered by Health PlansMedicare/Medicare Advantage 16%
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10 INVESTOR DAY 2025 Macro trends continue to shape healthcare and favor Quest Innovations in lab diagnostics Greater adoption of AI and automation Consumer focus on prevention and wellness Demographic shifts– older, sicker population
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11 INVESTOR DAY 2025 The US population is growing older and sicker Demographic shifts– older, sicker population 52% of adults have prediabetes or type 2 diabetes 30% of teens have prediabetes 79% increase in early-onset cancers 1 in 2 people will get cancer in their lifetime 2%-12% annual increase in autoimmune diseases Triple the rate of dementia and Alzheimer’s disease since 2013 Triple the rate of infant and maternal mortality despite spending the most Decline in life expectancy driven by COVID- 19, suicide, and liver and heart disease 74% of adults live with excess weight or obesity 40% of children live with excess weight or obesity
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12 INVESTOR DAY 2025 Innovations in lab diagnostics The evolution in diagnostics is shaped by “power in the blood” Technological advances are enabling a transition to clinical labtesting
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13 INVESTOR DAY 2025 Automation and AI are improving quality and productivity Greater adoption of AI and automation Microbiology Cytology Parasitology Pathology
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14 INVESTOR DAY 2025 Consumers are taking charge of their healthcare Consumer focus on prevention and wellness of individuals say holistic care options involving diet, exercise, and counseling are either very or somewhat important to them of individuals say it is important that they be able to monitor their health with apps, wearable devices, etc. of individuals would like healthcare providers to remind them about routine testing and preventive care consumers have become more concerned about their health 54% 65% 75% 2 of 3 We are entering a new era of medicine… called bio-observability… the ability to observe your own biology through technologies like wearables, continuous monitors, and direct to consumer (DTC) lab testing.” – Dr. Casey Means “Good Energy” “
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15 INVESTOR DAY 2025 Macro trends continue to shape healthcare and favor Quest Innovations in lab diagnostics Greater adoption of AI and automation Consumer focus on prevention and wellness Demographic shifts– older, sicker population
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16 INVESTOR DAY 2025 Our strategy supports above market growth in key channels Lead in advanced diagnostics through science and innovation Expand in high-growth areasPhysicians 4% - 5% CAGR Hospitals Long-term outlook beyond 2025: 4% - 5% revenue CAGR and 7% - 9% adjusted EPS CAGR • Capitalize on expanded health plan network access • Extend geographic reach • Become a partner of choice for large enterprise customers • Serve hospitals through scaled reference testing • Provide Collaborative Lab Solutions (formerly Professional Lab Services) • Expand in new geographies through outreach acquisitions 5% - 6% CAGR • Drive growth in consumer-initiated testing • Support life sciences partners with testing and services • Deliver insights through data analytics >20% CAGR Deliver a better customer experience and productivity improvements through technology
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17 INVESTOR DAY 2025 Our unique strengths will enable us to capitalize on physician market trends Scale Clinical innovation Broad access (PSCs, IOPs) Health plan access Value 1 32 4 5 Physicians PSCs: patient service centers; IOPs: in-office phlebotomists.
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18 INVESTOR DAY 2025 Segmentation of top 50 MSAs We are leveraging our health plan access to increase our presence in new geographies Physicians Expanding access with new health plan relationships Focus on faster growing MSAs with high access and low Quest capture >90% of insured lives in the US Quest brand presence Growth potential HighLowLow High 14 MSAs Over 1 million net new lives added 20 MSAs 12 MSAs 4 MSAs MSAs: metropolitan statistical areas.
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19 INVESTOR DAY 2025 We continue to expand our focus beyond independent physicians to include enterprise accounts • C-Suite, executive leaders, influencers of lab decisions • Representing finance, medical, operations, analytics, etc. What do they care about? • Connectivity, integration and national scale • Improved efficiency and patient access • Patient and physician satisfaction and engagement • Improved quality scores • Population health and data Executives/Influencers Quest’s enterprise commercial team is well positioned to partner with large physician groups seeking scaled solutions Physicians 48% 49% 52% 53% 55% 17% 20% 22% 22% 23% 35% 31% 26% 25% 22% 2020 2021 2022 2023 2024 -11% CAGR Independent Corporate entity Health System Physician employment trends +8% CAGR +3% CAGR
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20 INVESTOR DAY 2025 Hospitals continue to face headwinds and value scaled providers Cost of capitalWorkforce shortages Hospitals Wage and supply inflation
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21 INVESTOR DAY 2025 We have a diverse, collaborative approach for helping hospitals improve quality and efficiency, and access to capital Hospitals • Comprehensive menu across the continuum of care • Reduces the need for hospitals to invest in advanced technologies • Over $1B in revenues today Reference testing • Access to capital to invest in core assets • Continued access to diagnostic innovation • Enhanced affordability Outreach/JVs • Professional lab management and related services based on expertise and scale • Broader than Professional Lab Services • ~$800M in revenues today Collaborative Lab Solutions (CoLab) Note: CoLab previously known as Professional Lab Services.
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22 INVESTOR DAY 2025 Our collaborative partnerships with hospitals are the largest opportunity to deliver above market growth in the hospital channel Hospitals • Lab management • Workforce • Supply chain • Analytics • Blood management Collaborative Lab Solutions (CoLab) Strong growth in CoLab revenue >$1B $800M ~$300M 2019 2024 Beyond 2025 +22% CAGR Note: CoLab previously known as Professional Lab Services.
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23 INVESTOR DAY 2025 We are positioned to deliver strong double-digit growth in key high-growth areas • ~$100M in revenue (direct sales + channel partners) • Questhealth.com consumer- initiated testing • Partnerships • Menu expansion Consumer • ~$90M in revenue • Phase I – IV decentralized clinical trials • Companion diagnostics and assay development • In vitro diagnostic studies Life Sciences • ~$40M in revenue • Cross channel • Direct sales • Integrators Analytics These channels are expected to deliver >20% combined CAGR Expand in high-growth areas
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24 INVESTOR DAY 2025 Oncology Advanced Cardiometabolic Health Women’s & Reproductive Health Brain Health Autoimmune Disorders We expect new and existing advanced diagnostic tests in 5 key clinical areas to deliver double-digit growth • Haystack MRD • IsoPSA • STEP500 liquid and tissue • QNatal® Advanced (NIPS) • QHerit® carrier screening • AD-Detect Alzheimer’s disease blood testing • New liquid biomarkers • ANAlyzeR primary care screening • Therapy guidance (RA, IBD) In these 5 areas, advanced diagnostic tests generated ~$900 million in 2024 • ApoB • Lipoprotein(a) • Insulin resistance panel with score Advanced Diagnostics
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25 INVESTOR DAY 2025 We are focused on maximizing value from recent acquisitions Regional independent labs Capability-building assets Health system outreach labs Completed 8 acquisitions in 2024 which are expected to generate ~$1 billion in annualized revenue NY Physicians • New York • February 2024 • Canada • August 2024 • New York • September 2024 • Massachusetts • February 2024 • MN, western WI • September 2024 • Ohio • October 2024 • Ohio • December 2024 • Tennessee • June 2024 • Digital pathology
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26 INVESTOR DAY 2025 We continue to see robust opportunities for hospital outreach acquisitions ~20 deals completed by Quest in the last decade Hospital Outreach 35% POL 11% Quest 12% Other Independent Labs 42% Physician Channel $58B Hospital outreach labs comprise ~$20B of the physician channel 600+ health systems
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27 INVESTOR DAY 2025 We are also building strategic growth partnerships • Provides end-stage renal disease (ESRD) dialysis testing for over 2,600 dialysis centers in the US serving more than 200K patients • Building dialysis-related water testing capabilities • Leverages Quest’s national network to enable near-access services • Daytime testing optimizes lab utilization Benefits: Faster results for some dialysis- related testing for patients, greater value for Fresenius Medical Care, and improved access to the dialysis market for Quest
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28 INVESTOR DAY 2025 3% annual productivity and cost savings target through Invigorate People Customer-centric and highly-engaged employees driving performance and innovation Technology Automation, AI, and new software tools enabling operational excellence Process Lean, standardized, and digital processes powering experience and productivity Enterprise Operations Engaged people, lean processes and technology investments improve quality, productivity, and the customer experience
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29 INVESTOR DAY 2025 Modernize systems | Improve customer experiences | Lower IT spend | Improve productivity PROJECT NOVA We are transforming our order-to-cash process through Project Nova EMRs Quanum® Ortec QBSEMRs Salesforce MyQuest QSuite LIS Esoteric/ Genetic LIS AP/Derm LIS EMRs IT initiative will modernize underlying applications to improve customer experiences and lower IT costs IDAA QDTRac Onboard Order Collect Test Result Bill Service $ Transport Quanum®
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30 INVESTOR DAY 202530 Key takeaways The clinical lab market is expected to remain strong driven by health trends and diagnostic innovation We have a proven strategy to generate above market growth in key channels We expect our investments in advanced diagnostics to deliver double-digit revenue growth across 5 key clinical areas Our operational strategy is designed to improve quality, customer experiences, and productivity Long-term outlook beyond 2025: 4% - 5% revenue CAGR and 7% - 9% adjusted EPS CAGR
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31 INVESTOR DAY 2025 Note on Non-GAAP Financial Measures As used in this presentation the term “reported” refers to measures under accounting principles generally accepted in the United States (“GAAP”). The term “adjusted” refers to non-GAAP operating performance measures that exclude special items such as restructuring and integration charges, amortization expense, gains and losses on investments, and excess tax benefits (“ETB”) associated with stock-based compensation. The company has provided discussion of projected operating margin, which is a adjusted operating income as a percentage of net revenues, and a compound annual growth rate projection beyond 2025 of 7%-9% for adjusted diluted earnings per share (“EPS”), which are non-GAAP measures. The company is unable to present a reconciliation of adjusted operating income as a percentage of net revenues and adjusted diluted EPS to reported diluted EPS, the most comparable GAAP measure due to the inherent uncertainty and variability in the nature and amount of special items referenced above, and the amount of these items could be significant in any of the associated periods. Non-GAAP adjusted measures are presented because management believes those measures are useful adjuncts to GAAP results. Non-GAAP adjusted measures should not be considered as an alternative to the corresponding measures determined under GAAP. Management may use these non-GAAP measures to evaluate our performance period over period and relative to competitors, to analyze the underlying trends in our business, to establish operational budgets and forecasts and for incentive compensation purposes. We believe that these non-GAAP measures are useful to investors and analysts to evaluate our performance period over period and relative to competitors, as well as to analyze the underlying trends in our business and to assess our performance.