Action from Insight: bringing our brand to life · WHAT’S NEW Growing revenues 3-5% beyond 2016, earnings to grow faster than revenues in mid-to-high single digit range Exiting

Confidential | Internal Use Only 1

Action from Insight: bringing our brand to life

https://www.youtube.com/watch?v=sRhnywm2p04

Accelerating Growth, Building Value

Steve Rusckowski

President and Chief Executive Officer


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 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, changes in government regulations, changing relationships with customers, payers,

suppliers or strategic partners 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.


Topics

Market Perspective

Progress to Date

Accelerate Growth

Drive Operational Excellence

Financial Summary


Continuity: four years of delivering results together Steve Rusckowski

President & CEO

Jon Cohen MD SVP & Group

Executive

Diagnostic

Solutions

Everett

Cunningham SVP

Commercial

Jim Davis SVP & Group

Executive

Regional

Businesses

Dermot Shorten SVP

Strategy, M&A and

Ventures

Tim Sharpe VP

Compliance

Gary Samuels VP

Communications

John Haydon VP

Joint Ventures

and Strategic

Programs

Mike Prevoznik General Counsel &

SVP

International

Mark Guinan SVP & CFO

Jeff Shuman SVP

Chief Human

Resources

Lidia Fonseca SVP & Chief

Information Officer

Cathy Doherty SVP & Group

Executive

Clinical Franchise

Solutions

Jay Wohlgemuth MD SVP

Medical, Science and

Innovation, Chief Medical

Officer

Confidential | Internal Use Only 6 6

We’ve been on a journey since 2012…


We said it would take time…

Share Price Performance 9/30/2011 – 12/31/2013

(does not include dividends)

80

100

120

140

160

180DGX LH S&P 500 S&P HC S&P HC svcs

Total Shareholder Return

9/30/2011 – 12/31/2013

13% 15%

71%

83% 77%

DGX LH S&P 500 S&P HC S&P HCsvcs


…and we have been delivering value

67%

51%

25%

36%

44%

DGX LH S&P 500 S&P HC S&P HCsvcs

80

100

120

140

160

180

DGX LH S&P 500 S&P HC S&P HC svcs

Share Price Performance 12/31/2013 – 9/30/2016

(does not include dividends)

Total Shareholder Return

12/31/2013 – 9/30/16


Quest is a major player in healthcare…

Serves 50% of hospitals

470,000 Physicians

connected to Care360 portal

Expanding retail presence

50% FDA-approved Oncology Precision Medicine drugs since 2014

Q2 Solutions helped

of all develop

675+ EMR interfaces

Access to

~80% of U.S.

insured lives

Serves 1/3 U.S. adult population

and ~50% within 3 years

of the

~$7.5B 2015 revenue


…with unmatched capabilities

~100 Peer reviewed

publications published annually

2,200+ Patient service centers

20,000+

650+ Quest-employed MDs and PhDs

20B+ Patient

data points

~$7.5B

Quest owns or controls

~570 issued patents

worldwide 700

pending and Phlebotomists, paramedics and contract nurses

2015 revenue


Quest is the clear leader in a fragmented market

Total

U.S. Lab Market

Outside the Hospital

Lab Segment

Independent

Lab Segment

$79 billion $50 billion $27 billion

DGX

LH

Other

Independent

Labs 56%

24%

20%

Independent

Labs

54%

Hospital

Outreach

35%

11%

POL and Other

Outside

the

Hospital

Inpatient

63% 37%

Total U.S. lab market growing ~2-3%


Hospital Health Systems account for $48B (~60% of market) via three segments

Inpatient Professional

Laboratory Services

(PLS)

~$27 billion market

Hospital

Outreach

Acquire and/or partner on

outreach business

~$17 billion market

Grow advanced test send out

business

Reference

Testing

~$4 billion market

Quest #1

Market Characteristics DGX Opportunity

Reference

$4 billion

Hospital

Outreach Inpatient

$27 billion $17 billion


Quest is positioned for continued market leadership during a time of significant change

Utilization Reimbursement Stakeholder Dynamics

Technology Evolution


Our 5-Point Strategy as we shared it in 2012

Refocus: Refocus on diagnostic information services

1

2

3

4

5

Simplify: Simplify the organization to enable growth and productivity

Drive: Drive Operational Excellence

Restore: Restore Growth

Deliver: Deliver disciplined capital deployment and strategically

aligned accretive acquisitions


1. Refocus on diagnostic information services

Generated $1 billion in proceeds

http://www.q2labsolutions.com/


2. Drive operational excellence

$500 million

Invigorate target

SAVINGS

2011 2014



$600 million

Invigorate target

SAVINGS

2011 2012 2014 INVESTOR DAY



Invigorate target

SAVINGS

2011 2012 2014 INVESTOR DAY INVESTOR DAY

$1.3 billion

$700 million

2017

SAVINGS



Invigorate target

SAVINGS

2011 2012 2014 INVESTOR DAY INVESTOR DAY

$1.3 billion

$700 million

2017

SAVINGS

2016 INVESTOR DAY

On track

SAVINGS $1.1 billion


-4.6%

-1.6%

0.7% 1.8%

-5%

-3%

-1%

1%

3%

5%

7%

2013 2014 2015 2016

Organic, Equivalent Revenues

3. Restore growth

2016 2015 2014 2013 2016E through 3Q


1.4%

5.6%

1.3% 1.0%

-5%

-3%

-1%

1%

3%

5%

7%

2013 2014 2015 2016

Revenue Growth from Acquisitions

3. Restore growth

2016 2015 2014 2013 2016E through 3Q


2013

-3.2%

4.0%

2.0% 2.8%

-5%

-3%

-1%

1%

3%

5%

7%

2013 2014 2015 2016E

Total Equivalent Revenue

3. Restore growth

2016 2015 2014 2016E


4. Simplify the organization

Revised incentives for

executives and sales reps

60%

65%

70%

75%

2012 2013 2014 2015 2016

Increased employee engagement

Removed excess layers

from org structure

Created Leading Quest Academy,

trained >300 leaders

New structure built to drive

growth

Established Quest Management

System based on common tools


5. Deliver disciplined capital deployment

CAPEX

Since 2012 Since 2012

Cash Generated from Operations

and Dispositions since 2012:

~$5 billion

~$1

~$1

~$1

~$2

M&A

Dividends

Share repurchases

($ Billions)

Returned to

Shareholders

Invested


Our 5-Point Strategy as we shared it in 2012…

5 5-POINT STRATEGY

Refocus: Refocus on diagnostic information services 1

4 Simplify: Simplify the organization to enable growth and productivity

2 Drive: Drive operational excellence

3 Restore: Restore growth

5 Deliver: Deliver disciplined capital deployment and strategically aligned

accretive acquisitions


OPERATING

PRINCIPLES

…We’re building on our progress by narrowing our focus

Refocus on diagnostic information services

Simplify the organization to enable growth and productivity

Deliver disciplined capital deployment and strategically aligned

accretive acquisitions

2 2-POINT STRATEGY


Our strategy

General Diagnostics. Routine testing provides steady growth and strong cash

Advanced Diagnostics. Faster growth through innovation model

Diagnostic Services. Faster growth through a range of opportunities


At a glance

~$5.5 billion in 2015 revenues

Basic blood and urine testing; and anatomic pathology testing

Preventive screenings for heart disease, diabetes, HCV, etc.

Low single-digit market growth

Essential portion of health care delivery

Quest value proposition

Scale

Operational excellence

Access and convenience

General Diagnostics.

Routine testing provides steady growth and strong cash

28

Advanced Diagnostics.

Faster growth through innovation model

29

At a glance

~$1 billion in 2015 revenues

Genetic and molecular advanced testing

An important part of precision medicine

A growing set of unique, innovation-based competitors

Mid-to-high single-digit growth


Rich clinical, scientific and medical innovation expertise

Quality and reliability of new assays

Ability to manage potential, new regulatory requirements

Diagnostic Services.

Faster growth through a range of opportunities

30

At a glance

~$1 billion in 2015 revenues

Employer, Insurer, Wellness, Data Analytics & Extended Care

Services and Professional Lab Services (PLS)

Mid-to-high single-digit growth

Services support population health

Enables partners to deliver healthcare more efficiently


Partnerships with industry leaders across healthcare landscape

Extensive diagnostic capability

Large and growing database and analytics expertise


1 Grow 1-2% per

year through

accretive,

strategic

acquisitions

Be recognized as the

consumer-friendly

provider of diagnostic

information services

4

Offer the broadest

access to diagnostic

innovation 3

Strategies

31

Partner with health

plans, hospital health

systems and other

risk-bearing entities

2

5 Support

population

health with data

analytics and

extended care

services


Strategic Relationships

position us for growth at the center of the healthcare ecosystem

Consumer Public Health

Provider Partner


$1.3 billion

SAVINGS

2017

IN RUN-RATE SAVINGS

$1.3 Billion By end of 2017

More opportunity for cost savings beyond 2017

Through enhanced quality and customer experience

beyond


Quest showed a significant increase in ratings with physicians*

6.6

6.9

6.6

6.1

6.6

Quest Diagnostics Competitor A Competitor B Local Hospital

Quality and efficiency

go hand in hand; recent market research bears it out

* Independently conducted, blinded, customer sentiment survey

Competitor A

(n=654)

Competitor B

(n=539)

Local Hospital

(n=450) (n=649/655)

2015 2016 2016 2016 2016


WHAT’S NEW

Growing revenues 3-5% beyond 2016, earnings to grow faster than

revenues in mid-to-high single digit range

Exiting 2016 with $1.1B+ Invigorate run rate cost savings; on track to reach

$1.3B by end of 2017 with further savings opportunities beyond

Increasing dividend by 12.5% to an annual rate of $1.80 per share


KEY TAKEAWAYS

Laser-focused on accelerating growth and driving operational excellence

Excellent progress delivering on commitments and creating value

Strategic partnerships provide clear competitive advantage

Appendix


Non-GAAP Reconciliations

The following non-GAAP measures for: (i) equivalent revenue growth; and (ii) cash

generated from operations and dispositions are presented because management believes

those measures are useful adjuncts to GAAP results. Non-GAAP, or “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 or 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. The following tables reconcile reported GAAP measures to non-GAAP

adjusted measures:


Year Ended December 31, 2015

$ % Growth

Equivalent %

Growth

(dollars in millions)

Prior year net revenues $ 7,435

Revenue growth/(decline) impacts:

Organic (a) 51 0.7 % 0.7 %

Business acquisitions (b) 94 1.3 1.3

Business dispositions (c) (87 ) (1.2 ) N/A

Current year net revenues $ 7,493 0.8 % 2.0 %

Nine Months Ended September 30, 2016

$ % Growth

Equivalent %

Growth




Organic (a) 98 1.8 % 1.8 %


Business dispositions (d) (145 ) (2.6 ) N/A



$ % Growth

Equivalent %

Growth




Organic (a) (341 ) (4.6 )% (4.6 )%


Business dispositions — — N/A

Current year net revenues $ 7,146 (3.2 )% (3.2 )%


$ % Growth

Equivalent %

Growth




Organic (a) (113 ) (1.6 )% (1.6 )%


Business dispositions — — N/A


a) Represents the estimated revenue growth/(decline) excluding the impact of business acquisitions and business dispositions. b) Represents the estimated impact of our business acquisitions on revenue growth. c) Represents clinical trials testing revenues reported in the third and fourth quarters of 2014 as a result of the contribution of our clinical clinical trials testing business to Q2 Solutions, the clinical trials joint

venture with Quintiles Transnational Holdings Inc, effective July 1, 2015. d) Represents clinical trials testing reported revenues for the first and second quarters of 2015, Celera products reported revenues for the first, second and third quarters of 2015 and Focus Diagnostics products

revenues subsequent to April 2015 through the third quarter of 2015. In 2015, the company contributed its clinical trials testing business to the Q2 Solutions joint venture. In 2016, the company wound down its Celera products business and completed its exit from the products business as a result of the sale of its Focus Diagnostics products business on May 13, 2016.

Equivalent Revenue Growth The following tables reconcile equivalent revenue growth/(decline) and its components to the

corresponding measures determined under GAAP:


Cash Generated from Operations and Dispositions

a) In the second quarter of 2016, the company elected to early adopt the accounting standard update that simplifies several aspects of the accounting for stock-based compensation award transactions, including the income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and accounting for forfeitures, effective January 1, 2016. As a result, certain reclassifications have been made to the prior year amounts to conform with the current period presentation.

b) Primarily represents proceeds from the sale our HemoCue and Enterix products businesses in 2013 and Focus Diagnostics products business in 2016 included in cash flows from investing activities. c) Represents proceeds from the sale of our ibrutinib royalty rights in July 2013 included in cash flows from investing activities.

The following table reconciles cash generated from operations and dispositions to the corresponding

measures determined under GAAP:

Year Ended December 31,

Nine Months Ended

September 30,

Cumulative Total 2012 (a) 2013 (a) 2014 (a) 2015 (a) 2016


Cash generated from operations and dispositions:

Net cash provided by operating

activities $ 1,211

$ 667

$ 944

$ 822

$ 765

$ 4,409

Add: Proceeds from

dispositions:

Proceeds from sale of

businesses (b) —

296

—

—

270

566

Proceeds from sale of royalty

rights (c) —

474

—

—

—

474

Total proceeds from

dispositions —

770

—

—

270

1,040

Cash generated from

operations and dispositions $ 1,211

$ 1,437

$ 944

$ 822

$ 1,035

$ 5,449

Net cash (used in) provided by

investing activities $ (217 ) $ 328

$ (1,025 ) $ (362 ) $ (45 )

Net cash (used in) provided by

financing activities $ (846 ) $ (1,121 ) $ 86

$ (519 ) $ (447 )

INVESTOR MEETING

2016

Documents

Action from Insight: bringing our brand to life · WHAT’S NEW Growing revenues 3-5% beyond 2016, earnings to grow faster than revenues in mid-to-high single digit range Exiting