Transforming Healthcare, Across the Continuum of Care September 2020
Creates the global leader in virtual care across primary, ambulatory, acute, complex and chronic care Positions combined company to lead the market and set the pace for a rapidly evolving healthcare industry Establishes a consumer-centric, whole-person virtual care solution, driving better care for consumers at a lower cost Combines two leading high-growth companies built for scale that have complementary cultures, are led by an experienced management team, and have a robust integration plan Delivers significant financial benefits and value creation for shareholders through clearly identifiable $500 million in run-rate revenue synergies by 2025 and $60 million in run-rate cost synergies by 2022
Since the 2015 IPO, Teladoc Health Has Invested $2B Acquiring Companies and Launched Dozens of Products and Partnerships Teladoc Health Annual Revenue (in Millions) New Clinical Services 85 % > 90 % $ 472 Teladoc Health New Payment Models 67% CAGR New Care $ 988 Client Retention Rate 2Q20 YoY Revenue Cost Savings to Client Settings 2015 – 2020 Growth per Gen Med Visit (midpoint of guidance) 203 % 92 % 2Q20 YoY Growth in 2Q20 YoY Growth in 2015 2016 2017 2018 2019 2020E Future Total Visits U.S. Paid Membership IPO Year
Clinical Service Distribution Channel Product Enhancement Text/Chat New International Markets General Medical Virtual Primary Care Pediatrics Lab Testing High Acuity Chronic Disease Telemedicine Nutrition Mental Health Navigator Health Assistant Back-care ML-Powered Expert Medical Demand Planning Canada Services Global Care Medicare B2B DTC Partner United Mental Health Caregiver Kingdom Text-based Device Mental Health Integration Medicaid Hospital & France Health System International Dermatology Broker/SMB Market Site-based Telemedicine DTC 2015 2016 2017 2018 2019 2020 IPO
• Uses technology to transform the experience Aggregate Interpret of living with a chronic condition Conditions Clinical recommendations • Creates a consumer-first, data-driven digital Behavior signals Potential behavior change health experience that is easy to use and puts Preferences the consumer in charge • Translates its deep consumer data into actionable and timely signals to improve member outcomes and cost savings • Provides a differentiated consumer experience Member that includes personalized analytics, real-time coaching, hardware and supplies Iterate Apply • Fully scalable across multiple conditions in the pipeline including CHF and CKD Leverage Decision Science Livongo devices + Bring Your Own to optimize interactions & (Alexa, Higi, Apple watches) health decisions Apps/Web Coaching
1 Strategic Rationale Empowers Members and Strengthens Relationships Hypertension Weight Management Behavioral Health Diabetes 55 % 10 mmHg 7.3 % 0.8 pts Lower Systolic BP Improvement in DASS Lower HbA1c Avg weight loss Cultivating an intuitive Capturing data to Unique model of care that 24/7 remote Personalized, consumer experience and provide intelligent leverages digital, monitoring scalable virtual and strong client relationships insights to providers self-management live coaching model capabilities through nudges
Select Livongo Value Metrics 113 % 125 % + 64 2Q20 YoY Growth in 2Q20 YoY Revenue Average Member Net Promoter Score (NPS) 1 Diabetes Members Growth $ 109 M $ 1,908 75 % 94 % Per Participant per Year Gross Client Retention Rate 1 2Q20 YoY Client Growth Record EVA in 2Q20 Medical Savings in Diabetes 2
We are Creating an Entirely New Category of Whole-Person Virtual Care at a Time When the World Needs and Demands It 38 %+ CAGR 1 B+ virtual care visits are expected to in telehealth market over the next occur in 2020 1 five years 3 $ 250 B+ 250 %+ YoY of current U.S. healthcare spend increase in funding for virtual care could be virtualized 2 businesses, with virtual care one of the most prevalent subsectors of healthcare startups 4,5 9
For Consumers For Payors / Employers For Healthcare Providers 50 – 175x increase in utilization by health 76% now interested in using virtual care, 80% of large employers believe virtual as compared to 11% prior to COVID-19 1 care will significantly impact the delivery systems, independent practices, of healthcare in the future 4 behavioral health providers and other 33% would leave current physician for a providers 1 provider who offered telehealth access 2 Implementing more virtual care solutions is #1 priority for large employer health 64% of providers are now more Nearly 2/3 want virtual care doctor to initiatives 4 comfortable using telehealth 1 partner with existing in-person doctor 3 Meaningful easing of regulatory and reimbursement requirements for virtual care, with certain changes becoming permanent beyond COVID-19 pandemic
= STRATEGIES ENHANCED BY LIVONGO Expand footprint Clinical services Accelerate consumer Broaden role in and distribution innovation adoption healthcare delivery Existing distribution Virtual primary care Integrated, intuitive Health system use cases channels consumer experiences Insurer scope of services Integrated behavioral Product cross-sell/upsell health solutions Engagement science and In-home solutions surround sound Government programs Virtual Center of investments Integration with local Excellence specialty Direct-to-consumer delivery system services Virtual first experience Global markets Chronic care Expanding access points leadership and modalities Clinical quality leadership
The Combined Company Will Be a Compelling Partner for Clients During an Unprecedented Market Moment in a Rapidly Evolving Industry 70 M 175 + 10 M U.S. lives with access to current Countries with Teladoc Health Expected Teladoc visits in 2020 Teladoc Health solutions presence 410 k+ 60 750 M Livongo Diabetes members across Of top 100 hospitals and health Livongo digital interactions by 1,300+ clients; >30% of Fortune systems using Teladoc and the end of 2Q20 500 companies use Livongo Livongo solutions Leading provider of virtual health Unique combination of broad data Significant coverage across services across the continuum access and deep data insights geographies and segments
40 % – 45 % $ 100 M Pre-Synergy YoY Revenue Growth in 2021 Run-rate Revenue Synergies by 2022 30 % – 40 % $ 500 M Pre- Synergy ’20 – ’23 Revenue CAGR Run-rate Revenue Synergies by 2025 15 % – 18 % $ 60 M Pre-Synergy Adj. EBITDA Margin by 2023 Run-rate Cost Savings by 200 – 300bps Annual Expansion 2022 13
$28B $28B $20B $19B $15B $11B General Medicine Behavioral Health Expert Med Hospitals and Health Diabetes Hypertension Systems 216 M annual visits 4 5.1 M annual incidence 5 1 M U.S. physician 31.4 M patients with 39.6 M patients with 1.25 B annual visits 1 care teams 7 diabetes 10 hypertension 12 80 % treatable via $~ 5,500 case rate 6 33 % treatable via $ ~125 /month 8 $~ 900 PPPY 11 telemedicine 2 $~ 470 PPPY 11 telemedicine 2 + $ ~90 average visit $ ~50 average visit fee 1.5 M endpoints 9 fee 3 $ ~535 /month 8
Care Coordination Wellness & Prevention Complex Care Primary Care Full Spectrum Chronic Care Mental Health Care of Health Specialty Care Acute Care 15
Annual exam with Teladoc Teladoc physician consults Creates personalized Livongo connected blood primary care physician; with Claire, reviews lab health plan including pressure monitor and cuff are discusses medical history, results, diagnoses high referral to Livongo shipped to her home, as part nutrition and stress blood pressure hypertension program of easy-to-use health kit Using connected blood pressure monitor and cuff, Claire and her care team monitor her hypertension For help with a healthier diet, Based on the Livongo clinical data Livongo Health Nudges™ Claire consults a Teladoc Claire shares,Teladoc physician encourage Claire to stay nutritionist writes Rx for blood pressure on track medication CLAIRE’S HEALTH JOURNEY Living with Claire diagnosed with sinus To manage stress, With support of care team, Lower medical and Hypertension infection; Teladoc physician Claire consults a ongoing blood pressure healthcare costs writes Rx and advises on Teladoc mental health monitoring and Health Nudges, OTC medication risks therapist Claire achieves target weight related to hypertension and blood pressure; continues healthy habits
Automated workflows silence the healthcare noise — resulting in less time clicking and more time connecting — creating an experience better than an in- person visit Easy to navigate user interface Real-time biometrics Data-driven recommendations
Competitive Differentiation Creates First Integrated Virtual Delivery System Market leading distribution and position Proven total-cost-of-care impact, with demonstrated quality and outcomes Leading consumer engagement and marketing approaches Scalable, technology-enabled platform Largest virtual care delivery network across 450+ specialties Global reach, with customers in 175+ countries Deep connectivity to in-person care delivery ecosystem Automated, one-to-many delivery model across multiple conditions Behavioral science-based engine that drives personalized results Actionable, data-driven clinical insights at scale World’s first integrated, proactive virtual delivery system
Recommend
More recommend
