1Life Healthcare — Merger or Acquisition (June 2021)
30 slides from 1Life Healthcare's merger presentation, Jun 8, 2021
Slide 1: Rule 425 filing legend
Filed by 1Life Healthcare, Inc. Pursuant to Rule 425 under the Securities Act of 1933, as amended and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934, as amended Subject Company: Iora Health, Inc. (Commission File No. 001-39203) The following communication is being fil
Slide 2: Transforming healthcare for all through a human-centered, technology-powered model
1 + Transforming healthcare for all through a human-centered, technology-powered model at every stage of life June 2021
Slide 3: Additional Information and Where to Find It
2 Additional Information and Where to Find It 1Life Healthcare plans to file with the SEC, and the parties plan to furnish to the security holders of Iora Health and 1Life Healthcare, a Registration Statement on Form S-4, which will constitute a prospectus and proxy statement of 1Life Healthcare and
Slide 4: Market and Industry Data
3 Market and Industry Data This presentation also contains statistical data and estimates made by independent parties and by One Medical and Iora Health relating to market size and growth, as well as other data about industries and businesses. This data involves a number of assumptions and limitatio
Slide 5: Transaction Details
4 Transaction Details Pro Forma Ownership • One Medical shareholders: 73.25% • Iora Health shareholders: 26.75% Board and Management • A designee of Iora Health will join the One Medical Board • Rushika Fernandopulle will become One Medical’s Chief Innovation Officer • One Medical will file an S-4 w
Slide 6: Strategic Rationale - One Medical + Iora Health
5 Strategic Rationale - One Medical + Iora Health • Membership-based relationships via employer sponsorships, direct-to-consumer, and attributed lives • Proprietary technology platforms support key stakeholders with digital health, inviting in-person care, employed salaried providers, and health net
Slide 7: Most Consumer Centered Healthcare Company
6 + Most Consumer Centered Healthcare Company(1) One Medical virtual + in-person primary care linked to 45% lower benefits costs(2) The Digital Health Startups Transforming The Future Of Healthcare(1) Combining two human-centered, technology-powered primary care platforms transforming healthcare for
Slide 8: One Medical + Iora Health: Aligned missions, models and cultures
7 One Medical + Iora Health Aligned missions, models and cultures to transform healthcare Positions One Medical to advance the health of members across every stage of life Extends One Medical’s platform to deliver multi-modal care -- with 24/7 national digital health and in-person care -- across a c
Slide 9: Current System Failing All Stakeholders
8 Current System Failing All Stakeholders 51% Dissatisfied with Consumer Experience Employer health benefit costs exceeding $21,000 for family coverage in 2020 (3) 29 Days wait to see a Family Physician (2) Dissatisfied with Consumer Experience (1)81% Burnout within Family Physicians in Primary Care
Slide 10: One Medical Transforms Health Care for Key Stakeholders
9 One Medical Transforms Health Care for Key Stakeholders Consumers Employers & Payers Providers Health Networks 51% Dissatisfied with Consumer Experience 0-1 8-45% Net Promoter Score(1) Day wait for appointment Virtual care typically within minutes Employer savings (3) 33% Lower ER Costs (3) 100% P
Slide 11: Iora Health: Similarly Transforms Health Care for Key Stakeholders
10 Iora Health: Similarly Transforms Health Care for Key Stakeholders Consumers Payers Providers Health Networks 51% Dissatisfied with Consumer Experience Net Promoter Score(1) 100% Provider salary model Higher provider engagement vs. industry (5) Participating in a growing number of Medicare Advant
Slide 12: Iora Health: Membership Model Delivers for Seniors
11 Iora Health: Membership Model Delivers for Seniors Vision To be the national platform for human-centric, value-based care, driving transformation of the healthcare industry and improving the lives of millions of seniors Leading national primary care platform with strong brand, proven ability to l
Slide 13: Iora Health: Multi-Modal Membership Model
12 Iora Health: Multi-Modal Membership Model High-touch, White Glove Service ● Care model based on developing trusted, longitudinal relationships ● 30 - 60 minute visits for full engagement with the care team ● Virtual visits from the comfort of a member’s home ● Supplemental services include yoga c
Slide 14: Iora Health: The Medicare Market is Large and Growing
13 Iora Health: The Medicare Market is Large and Growing ● A new value-based payment program enabling provider groups to take full risk on Original Medicare ● Program started in April 2021 to support the ~40M individuals with Original Medicare nationwide ● Iora is in the global direct contracting mo
Slide 15: Aligned Membership-Driven Business Models
14 Aligned Membership-Driven Business Models 2021E Revenue (4)$299M Medical Claims Expense Ratio improvement over 4 Years (5)27 2017-2021E Revenue CAGR (4)45% 2021E Revenue (1)$475M Employer Medical Cost Savings (3)8%-45% Q1 2021 Total Members38K 2017-2021E Revenue CAGR (1)28% (1) 2021 Represents th
Slide 16: Technology-Powered Proprietary Platforms
15 Technology-Powered Proprietary Platforms One Medical Iora Health ~45% of members visit web/app monthly (1) 5x digital to in-person engagement(1) 50%+ completion of member health tasks (1) 100+ conditions with automated follow up (2) 40%+ reduction in provider EHR tasks (3) 95%+ generic Rx powered
Slide 17: Iora Health Accelerates Our Growth Strategy
16 Iora Health Accelerates Our Growth Strategy ✓ = strategies enhanced by Iora Health Opportunity to serve adjacent Commercial and Medicare populations across our combined 28 markets and beyond Expand Margin with Tech & Ops Leverage Expand Services, Populations, Channels Grow New Markets and Network
Slide 18: National Digital Health and Expanding In-Person Care
17One Medical Proprietary and Confidential New York San Diego Washington DC Chicago San Francisco Phoenix Seattle Los Angeles Portland Orange County Atlanta Boston Austin Raleigh-Durham* Milwaukee* National Digital Health and Expanding In-Person Care Houston* Columbus* 17 Tucson Denver Charlotte Cap
Slide 19: Transaction Significantly Expands Addressable Market
18 Transaction Significantly Expands Addressable Market U.S. Total ~$250B Opportunity to address ~$870 Billion of the $4.2 trillion(1) U.S. Healthcare market U.S. Total Top 50 MSAs ~$170B(2) ~$80B(3) (1) Centers for Medicare & Medicare Services (CMS). (2) Commercial segment represents estimated prim
Slide 20: Attractive Valuation and Growth Profile
19 Attractive Valuation and Growth Profile (1) One Medical revenue growth based on 2020 reported financials and the mid-point of 2021 revenue outlook provided on 5/12/2021 of $465M - $485M for FY21. Iora Health’s 2020 financials are preliminary and unaudited as of December 31, 2020. Revenue based on
Slide 21: Summary Forecast Pre-Synergies
20 Summary Forecast Pre-Synergies Prepared in connection with the transaction (1) 2021 Represents the mid-point of 2021 outlook provided on 5/12/2021: FY21 revenue of $465M - $485M, FY21 care margin of $170M - $190M, FY21 adjusted EBITDA of ($20M) - breakeven. (2) Iora Health’s 2020 financials are p
Slide 22: Iora Health: Business Model
21 2017 Member Cohort 2018 Member Cohort 2019 Member Cohort 2020 Member Cohort Historical Medical Claims Expense Ratio Risk-based membership economics allow Iora Health to capture value created through improved care quality and outcomes ● Membership-driven business model ● Value-based contracts crea
Slide 23: Iora Health: Attractive Mature Risk-Based Economics
22 Iora Health: Attractive Mature Risk-Based Economics Target Risk-Based Membership Economics (1) Cost of care excludes depreciation and amortization and primarily includes provider and support employee-related costs for both in-office and virtual care, occupancy costs, medical supplies, insurance a
Slide 24: Revenue synergies through accelerated membership growth
23 Revenue synergies through accelerated membership growth ● Opportunity to serve parents and grandparents of One Medical’s 598K members ● Expand into Medicare services in One Medical markets ● Expand into Commercial services in Iora Health Markets ● Seamless age-in and extend lifetime relationship
Slide 25: Synergy Opportunities
24 Synergy Opportunities Enhanced cost savings for improved profitability ● Efficiencies across virtual and in-person care delivery, space design, staffing, processes and technology platforms ● Increased leverage across existing investment base ● Combined business models for greater scale ● Reciproc
Slide 26: Long-Term Projections (Non-GAAP)
25 Long-Term Projections (Non-GAAP) Mid-20%+ Long-term Annual Revenue Growth 20% Long-term Adjusted EBITDA Margin Target +One Medical Long-Term Goals 17%+ Long-term Adjusted EBITDA Margin Target Mid-30% 2020 - 2030 Revenue CAGR
Slide 27: One Medical + Iora Health: Aligned missions, models and cultures
26 One Medical + Iora Health Aligned missions, models and cultures to transform healthcare Positions One Medical to advance the health of members across every stage of life Extends One Medical’s platform to deliver multi-modal care -- with 24/7 national digital health and in-person care -- across a
Slide 28: Transforming healthcare for all
27 Transforming healthcare for all through a human-centered, technology-powered model to deliver better health, better care, and better value at every stage of life +
Slide 29: Thank You
28 Thank You
Slide 30: Additional Information and Where to Find It
Additional Information and Where to Find It One Medical plans to file with the SEC, and the parties plan to furnish to the security holders of Iora and One Medical, a Registration Statement on Form S-4, which will constitute a prospectus and proxy statement of One Medical and will include an informa