Beverly Fu Sam Kim Jeff Majdali Terese Marcotte Matt Moe Team 4

 Company Overview ◦ History, what it does, recent acquisitions  Industry Analysis ◦ Key competitors, implied strategies, opportunities and challenges in the market (use 5 forces)  Corporate Strategy ◦ Internal capabilities, where it adds value across business ◦ Where and how they compete ◦ Implied and stated strategies  Final Analysis ◦ Will the company succeed or fail? ◦ Is its strategy in line with market opportunity? ◦ How has Davita’s strategy changed across time?

 Previous Name: Davita Inc (incorporated on April 4, 1994) until Nov 2, 2012  Dialysis service: 1,809 Centers in 43 states, 142,000 patients (12/31/2011); service 900 hospitals and related laboratory services; 11 outpatient dialysis centers in 3 foreign countries  # of employees (2011): 41,000 Outline: Main lines of business Background/history Growth pattern Company size, etc

 Operating Revenue (2011): $6,982,214 th USD  P/L for period (2011): 478,336 th USD  Total Assets (2011): 8,892,172 th USD Outline: Margin, Revenue, and Stock Performance Growth of company in terms of assets, employees, facilities, maybe break down organic vs inorganic growth

 Operating Revenue (2011): $6,982,214 th USD  P/L for period (2011): 478,336 th USD  Total Assets (2011): 8,892,172 th USD  Market Cap (Jan 31, 2013): 11,276 mil USD Outline: Might need 2 nd slide for company performance

 January 2013: acquired 9 dialysis centers from Fresenius Medical Care (FMC)  November 1, 2012: merger with Healthcare Partners holdings, LLC  January 2012: Acquired controlling interest in NephroLife  September 2, 2011: Acquired  Outline: Create categories for acquisitions Provide insight into reason for acquisitions – will evaluate success of acquisitions in last section

 Size of market, growth of market – us CAGR ◦ National vs World opportunity.  Drivers of growth ◦ ie, demographics, lifestyle, disease trends  Challenges facing the industry ◦ – in home dialysis and declining reimbursements?

 Key Competitors ◦ Implied strategies of competitors (do they bring different value to the market, are some better at contracting vs operations? ◦ Market share, brand and recognition, customer or consumer report ranking ◦ Consider creating table of competitor and key attributes, ie where they compete

 Five Forces RIVALRY Buyers power x Suppliers power x Barriers to entry x Threat of substitutes x

 Internal capabilities, key resources  Where it adds value across business  Where and how they compete  Implied and stated strategies  How have acquisitions faired  This might be 2-3 slides long – appropriate to use SWOT here  Map strategy in generic strategies strategy box  See link below for DaVita justification for Health Partners Merger ◦

x◦xx◦x X STRENGHTS X THREATS X WEAKNESSES X OPPORTUNITIES SWOT S O W T

 Tie strategies to company performance – market cap, and or stock performance, PE ratio.

 Consider Doing a White Space Map for Industry

◦ Will the company succeed or fail? ◦ Are internal capabilities aligned with strategies? ◦ Is its strategy in line with market opportunity? ◦ How has Davita’s strategy changed across time? ◦ Tie strategies to changes in stock performance? ◦ Lesson’s learned?

◦ DaVita outperformans Dow, S&P, and IHF ETF ◦ U.S. Healthcare Providers ETF, strong representation of hospitals as well as healthplans. Includes 4% DaVita

◦ DaVita outperformans Dow, S&P, and IHF ETF ◦ U.S. Healthcare Providers ETF, strong representation of hospitals as well as healthplans. Includes 4% DaVita