38th Annual J.P. Morgan Healthcare Conference January 15, 2020 - PowerPoint PPT Presentation

38th Annual J.P. Morgan Healthcare Conference January 15, 2020

Forward-Looking Statements and Non-GAAP Financial Measures This presentation includes statements that may constitute “forward - looking statements” made pursuant to the safe harbor provisio ns of the Private Securities Litigation Reform Act of 1995. In particular, statements about future events and relationships, plans, future growth future performance, including statements about the proposed acquisition of SCI, the anticipated benefits of the proposed acquisition of SCI, and the expected timing of the proposed acquisition of SCI, are forward-looking statements. These statements are often identified by the use of words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “d esi gned,” “may,” “plan,” “predict,” “project,” “would” and similar expressions or variations, although not all forward -looking statements contain these identifying words. We have based these forward-looking statements on our current expectations and projections about future events as of the date hereof and any forward-looking statements contained herein should not be relied upon as representing our views as of any subsequent date. Subsequent events and developments, including actual results or changes in our assumptions, may cause our views to change. While we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Should one or more of these risks and uncertainties materialize, or should underlying assumptions, projections, or expectations prove incorrect, actual results, performance, financial condition, or events may vary materially and adversely from those anticipated, estimated, or expected. Our actual results and outcomes could differ materially from those included in these forward-looking statements as a result of various factors, including, but not limited to risks related to the satisfaction of the conditions to closing the acquisition of SCI and the related financing in the anticipated timeframe or at all, risks that the expected benefits from the proposed acquisition of SCI will not be realized or will not be realized within the expected time period, the risk that the businesses will not be integrated successfully, and significant transaction costs, unknown or understated liabilities, our ability to integrate the Intermedix business as planned and to realize the expected benefits of the Intermedix acquisition, our ability to successfully deliver on our commitments to our customers, our ability to deploy new business as planned, our ability to successfully implement new technologies, fluctuations in our results of operations and cash flows, and the factors discussed under the heading “Risk Factors” in our annual report on Form 10 -K for the year ended December 31, 2018, our quarterly reports on Form 10-Q and any other periodic reports we file with the Securities and Exchange Commission. This presentation includes the following non-GAAP financial measure: Adjusted EBITDA. Please refer to the Appendix located at the end of this presentation for a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure. 2

R1 Investment Highlights Strong Profit Unique Large Multiple Growth Trajectory Value Market Drivers with High Underpinned by Proposition Opportunity Recurring Revenue Tech Investment 14% $100B $320 – $340M Operating Model Robust & Proven Acute & Physician RCM Average Quarterly 2021 Adjusted Scale Leverage Market Revenue Growth EBITDA Outlook Proprietary Technology Since 2016 From $165-170M in 2019 Leading, end-to-end revenue cycle platform with a compelling financial model 3

Significant Improvements for Integrated Health Systems NEED VALUE ADD RESULTS Growing • Lower costs pressure to run • Faster collections We plug into revenue cycle • Higher revenue health providers’ more efficiently • Higher patient satisfaction existing IT systems OPERATING MODEL Proprietary Experienced Analytics Global Shared Proven and Alerts Services Technology Talent Results 4

Comprehensive Revenue Cycle Capabilities for Providers Care Settings Emergency Physician Acute Post-Acute Revenue Cycle Phases Order to Intake Care to Claim Claim to Payment Solutions address the full Payment Models spectrum of needs and operations Fee-for-service Patient Self-pay Value-based Transforming revenue cycle performance across all care settings and payment models 5

SCI Transaction Rationale ▪ Delivers most comprehensive solution to drive patient engagement for health systems Enhances Growth ▪ Expands R1 addressable market and supports commercialization of PX modular offering Trajectory ▪ Further differentiates R1’s value proposition in end -to-end opportunities ▪ Advances R1’s capability set and provides greater control of technology architecture Accelerates ▪ Comprehensive automation of patient intake including pre-auth process increases DTO use case Technology Roadmap ▪ Adds innovative culture and high-performing team ▪ Estimated $30M in synergies, with ~$20M from margin expansion on contracted base (expect $10M in synergies to phase-in in 2021, with remainder in 2022 and 2023) Unlocks Significant ▪ Adds high margin SaaS Offering to revenue mix that fuels R1 margin upside Synergies ▪ Potential for meaningful growth upside above synergy assumption via PX commercialization ▪ Accretive to earnings within first year Accretive to Earnings ▪ Supports 2021 adjusted EBITDA guidance of $320M to $340M Strategic technology that meaningfully increases R1’s value proposition and unlocks significant synergies 6

Industry’s Only Integrated Pre -Service SaaS Workflow Automated Choreography Across Any Provider Care Setting SCI Core Product Offerings 1 2 3 4 Provider Network Schedule Digital Patient Intake Experience (PNX ) Maximizer Experience (DPX) Analytics Capture Confirm Schedule Obtain Maintain Outpatient Financial Viability Order Optimally Pre-Service Case Arrival, Update and Demand of Case Utilize Capacity Preparations Follow Up 40M 95K 1,100 86% 2,200 ~20% $225B Potential Order-Appt. Health Plan Productivity Consumers Providers Hospitals Annual NPR Conversion Automations Improvement Conveyed 7

Industry’s Only Integrated Pre -Service SaaS Workflow Automated Choreography Across Any Provider Care Setting Capture Confirm Schedule Obtain Maintain Outpatient Financial Viability Order Optimally Pre-Service Case Arrival, Update and Demand of Case Utilize Capacity Preparations Follow Up Search and find in- Validate health plan Schedule patient from Obtain prior- Patient check-in, arrival network providers, ingest network participation, consumer mobile device, authorization from payer; notifications; bi- clinically appropriate member eligibility and referring provider office give patient option to directional EMR update; referrals, orders and benefits; verify patient or call center; calculate make online payment; closed-loop consult transfers from any source identity and propensity estimate of patient send appointment report back to referring (EMR, web, fax); validate to pay; determine need co-pay, deductible and reminders, directions, provider; post-visit payer medical necessity for health plan prior co-insurance collect pre-reg. instructions and patient in real time authorization information, PROMs and surveys social determinants 40M 95K 1,100 86% 2,200 ~20% $225B Potential Order-Appt. Health Plan Productivity Consumers Providers Hospitals Annual NPR Conversion Automations Improvement Conveyed 8

R1 Strategic Priorities with SCI Acquisition 1 2 3 Solidify and Extend Our Integrate R1 and SCI Lead as the Most Enable High-Performing Technology to Transform Comprehensive Digital Marketplace for Scheduling and Pre- Patient Experience Healthcare Services Registration Process Solution in the Market ▪ ▪ ▪ Drives margin expansion Unlocks growth via PX Significantly increases our Offering customers’ revenue stream ▪ Increases returns for via efficient online access to ▪ customers Establishes high margin SaaS patient and referring revenue stream ▪ Further differentiates end- provider demand ▪ to-end offering Solves high-value customer pain points 9