Laboratory of America : Supplemental Financial Information

FIRST QUARTER 2019

SUPPLEMENTAL FINANCIAL INFORMATION

APRIL 30, 2019

FORWARD LOOKING STATEMENT

This presentation of Laboratory Corporation of America Holdings (the "Company") contains forward-looking statements, including but not limited to statements with respect to estimated 2019 guidance and the related assumptions, the impact of various factors on operating and financial results, expected savings and synergies (including from the LaunchPad initiative and as a result of acquisitions), and the opportunities for future growth.

Each of the forward-looking statements is subject to change based on various important factors, many of which are beyond the Company's control, including without limitation, competitive actions and other unforeseen changes and general uncertainties in the marketplace, changes in government regulations, including health care reform, customer purchasing decisions, including changes in payer regulations or policies, other adverse actions of governmental and third-party payers, changes in testing guidelines or recommendations, the effect of public opinion on the Company's reputation, adverse results in material litigation matters, the impact of changes in tax laws and regulations, failure to maintain or develop customer relationships, our ability to develop or acquire new products and adapt to technological changes, failures in information technology systems or data security, adverse weather conditions, challenges in implementing business process changes, employee relations, and the effect of exchange rate fluctuations on international operations.

Actual results could differ materially from those suggested by these forward-looking statements. The Company has no obligation to provide any updates to these forward-looking statements even if its expectations change. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. Further information on potential factors, risks, and uncertainties that could affect the operating and financial results of the Company is included in the Company's Form 10-K for the year ended December 31, 2018, and subsequent Forms 10-Q, including in each case under the heading RISK FACTORS, and in the Company's other filings with the SEC. The information in this presentation should be read in conjunction with a review of the Company's filings with the SEC including information in the Company's Form 10-K for the year ended December 31, 2018, and subsequent Forms 10-Q, under the heading MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

1

USE OF ADJUSTED MEASURES

The Company has provided in this presentation "adjusted" financial information that has not been prepared in accordance with GAAP, including adjusted net income, adjusted EPS (or adjusted net income per share), adjusted operating income, adjusted operating margin, adjusted EBITDA, free cash flow, and certain segment information. The Company believes these adjusted measures are useful to investors as a supplement to, but not as a substitute for, GAAP measures, in evaluating the Company's operational performance. The Company further believes that the use of these non-GAAP financial measures provides an additional tool for investors in evaluating operating results and trends, and growth and shareholder returns, as well as in comparing the Company's financial results with the financial results of other companies. However, the Company notes that these adjusted measures may be different from and not directly comparable to the measures presented by other companies. Reconciliations of these non-GAAP measures to the most comparable GAAP measures are included in the tables accompanying this presentation.

2

FIRST QUARTER CONSOLIDATED RESULTS

(DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA)

	1Q19	1Q18	% Change
Revenue	$2,791.2	$2,848.3	(2.0%)(4)
Adjusted Operating Income(1) (2)	$411.4	$435.7	(5.6%)
Adjusted Operating Margin	14.7%	15.3%	(60 bps)
Adjusted EPS(1) (2)	$2.62	$2.78	(5.8%)

Operating Cash Flow(3)	$165.8	$179.7	(7.7%)
Less: Capital Expenditures	($94.2)	($72.5)	(29.9%)
Free Cash Flow	$71.6	$107.2	(33.2%)

(1)Adjusted operating income excludes amortization, restructuring charges, and special items. Adjusted EPS exclude amortization, restructuring charges, and special items.

(2)See Reconciliation of non-GAAP Financial Measures on slides 12 - 13.

(3)Operating cash flow increased by $25.0 million for the three months ended March 31, 2018 for the reclassification of tax payments for net share settlements relating to employee stock vesting from operating activities to financing activities.

(4)The decline in revenue was primarily due to the negative impact from the disposition of businesses of 1.8% and foreign currency translation of approximately 0.9%, partially offset by acquisitions of 0.5% and organic growth of 0.2% (which includes the negative impact from PAMA of 0.9%).

3

FIRST QUARTER PRO FORMA SEGMENT RESULTS(1)

(DOLLARS IN MILLIONS)

		1Q19	1Q18	% Change
Revenue
	LabCorp Diagnostics	$1,722.0	$1,770.2	(2.7%)
	Covance Drug Development	$1,074.7	$1,078.5	(0.4%)
	Total Revenue	$2,791.2	$2,848.3	(2.0%)
Adjusted Operating Income(2) (3)
	LabCorp Diagnostics	$310.4	$364.0	(14.7%)
	Adjusted Operating Margin	18.0%	20.6%	(250 bps)
	Covance Drug Development	$138.0	$108.0	27.8%
	Adjusted Operating Margin	12.8%	10.0%	280 bps
	Unallocated Corporate Expense	($37.0)	($36.3)	(1.9%)
Total Adjusted Operating Income	$411.4	$435.7	(5.6%)
Total Adjusted Operating Margin	14.7%	15.3%	(60 bps)

(1)The consolidated revenue and adjusted operating income are presented net of inter-segment transaction eliminations.

(2)Adjusted operating income excludes amortization, restructuring charges, and special items.

(3) See Notes to Reconciliation of Non-GAAP Financial Measures on slides 12 - 13.	4