Teladoc Health, Inc. · NYSE:TDOC
Teladoc Health — Merger or Acquisition (September 2020)
36 slides from Teladoc Health's merger presentation, September 2020
Slide 1: Transforming Healthcare, Across the Continuum of Care
Transforming Healthcare, Across the Continuum of Care September 2020
Slide 2: Creates the global leader in virtual care
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
Slide 3: Since the 2015 IPO, Teladoc Health Has Invested $2B Acquiring Companies
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 Teladoc Health 67% CAGR $988 New Payment Models New Care >90% $472 85% Settings Client Retention Rate Cost Saving
Slide 4: Teladoc Health expansion since IPO
Clinical Service Distribution Channel Product Enhancement Text/Chat General Medical Virtual Primary New International Markets Care Pediatrics Lab Testing Chronic Disease High Acuity Telemedicine Mental Health Nutrition Navigator Health Assistant Back-care ML-Powered Expert Medical Demand Planning Se
Slide 5: Teladoc Health's Industry-Leading Differentiated Assets & Capabilities at Scale
Teladoc Health’s Industry-Leading Differentiated Assets & Capabilities at Scale Member engagement Multi-specialty physician networks Q Clinical quality Global = distribution channels Comprehensive product offering Teladoc. HEALTH Tech-enabled ops a? Scale-driven ROI at scale Data & analytics Teladoc
Slide 6: Livongo consumer-first, data-driven digital health experience
• 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
Slide 7: Strategic Rationale: Empowers Members and Strengthens Relationships
1 Strategic Rationale Empowers Members and Strengthens Relationships Diabetes Hypertension Weight Management Behavioral Health 10mmHg 55% 0.8pts Lower Systolic BP 7.3% Improvement in DASS Lower HbA1c Avg weight loss Capturing data to Unique model of care that 24/7 remote Personalized, Cultivating an
Slide 8: Select Livongo Value Metrics
Select Livongo Value Metrics 113% 125% +64 2Q20 YoY Growth in 2Q20 YoY Revenue Average Member Net Diabetes Members Growth Promoter Score (NPS)1 $1,908 $109M 75% 94% Per Participant per Year Gross 2Q20 YoY Client Growth Record EVA in 2Q20 Client Retention Rate1 Medical Savings in Diabetes2
Slide 9: Creating an Entirely New Category of Whole-Person Virtual Care
We are Creating an Entirely New Category of Whole-Person Virtual Care at a Time When the World Needs and Demands It 1B+ 38%+ CAGR virtual care visits are expected to in telehealth market over the next occur in 20201 five years3 $250B+ 250%+ YoY of current U.S. healthcare spend increase in funding fo
Slide 10: Virtual care demand from consumers, payors and providers
For Consumers For Payors / Employers For Healthcare Providers 76% now interested in using virtual care, 80% of large employers believe virtual 50 – 175x increase in utilization by health as compared to 11% prior to COVID-191 care will significantly impact the delivery systems, independent practices,
Slide 11: Strategies Enhanced by Livongo
= 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 Integrated behaviora
Slide 12: Combined Company a Compelling Partner for Clients
The Combined Company Will Be a Compelling Partner for Clients During an Unprecedented Market Moment in a Rapidly Evolving Industry 70M 175+ 10M U.S. lives with access to current Countries with Teladoc Health Expected Teladoc visits in 2020 Teladoc Health solutions presence 410k+ 60 750M Livongo Diab
Slide 13: Pre-synergy growth and synergy targets
40% – 45% $100M Pre-Synergy YoY Revenue Growth in 2021 Run-rate Revenue Synergies by 2022 30% – 40% $500M Pre-Synergy ’20 – ’23 Revenue CAGR Run-rate Revenue Synergies by 2025 15% – 18% $60M Pre-Synergy Adj. EBITDA Margin by 2023 Run-rate Cost Savings by 200 – 300bps Annual Expansion 2022 13
Slide 14: Addressable market by care category
$28B $28B $20B $19B $15B $11B General Medicine Behavioral Health Expert Med Hospitals and Health Diabetes Hypertension Systems 1.25B annual visits1 216M annual visits4 5.1M annual incidence5 1M U.S. physician 31.4M patients with 39.6M patients with care teams7 diabetes10 hypertension12 33% treatable
Slide 15: Full Spectrum of Health
Care Coordination Wellness & Prevention Complex Care Primary Care Chronic Care Full Spectrum Mental Health Care of Health Specialty Care Acute Care 15
Slide 16: Claire's Health Journey
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 nu
Slide 17: Integrated consumer experience
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
Slide 18: Competitive Differentiation Creates First Integrated Virtual Delivery System
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 ca
Slide 19: Teladoc Health + Livongo data scale and insights
Teladoc Health + Livongo Teladoc’s Livongo’s Unmatched combination of scale and insights, driving better experiences and data scale, data insights, results for individuals: with 13M cumulative visits with 750M digital interactions and 82M text messages generating biometric and Better engagement (rig
Slide 20: Revenue synergy: cross-sell, referrals, international
Cross-Sell of Existing Products ~20% • Sell Teladoc and Livongo products across existing direct-to-employer and International health plan relationships sales • Expand Livongo into Teladoc Small & Medium Business, Managed Medicaid, and Hospital & Health System segments • Develop an integrated Behavio
Slide 21: Livongo into Teladoc Cross-sell Opportunity
How We Help Each Other Example Synergy Approach1: Livongo into Teladoc Cross-sell Opportunity NOTE: Does not include Teladoc into Livongo cross-sells, expansion of Livongo into new channels, or integrated 70M Teladoc Behavioral Health synergy covered lives today Teladoc membership Teladoc brings a l
Slide 22: The Market is Already Excited About Our Combined Solution
The Market is Already Excited About Our Combined Solution Prior to Closing After Close • Cross-selling through existing reseller • Fully-integrated go-to-market approach agreement between Teladoc and Livongo • Single portfolio presented to clients • Intense integration planning to develop best-in-fr
Slide 23: Teladoc to Livongo Referral Opportunity
How We Help Each Other Example Synergy Approach1: Teladoc to Livongo Referral Opportunity NOTE: Does not include referrals from Livongo to Teladoc Number of U.S. Teladoc brings its existing base (and the millions of virtual visits interactions it drives) as a foundation for referrals into Total Tela
Slide 24: Patient journeys across Teladoc and Livongo
Ana Teladoc utilization “My blood sugar is high and I think it’s my “I feel so much better with Tests blood sugar Multiple high Coach advises Seamless transfer to Teladoc provider meds… but my doctor my new medications – and I with Livongo readings prompts talking to provider Teladoc providers – ide
Slide 25: How We Help Each Other: International
How We Help Each Other Teladoc brings deep international sales relationships driving 16% of LTM revenue, focused on markets with high-demand for best-in- class, innovative tech solutions By 2025… Teladoc brings local knowledge and supporting infrastructure to address international regulatory require
Slide 26: International expansion approach by region
Europe Australia & Canada Southeast Asia Middle East Brazil Leverage Teladoc Expand in large English- Target English-speaking Win on convenience in a Target smaller, more sales relationships and speaking markets with markets with high-prevalence region innovative private payors existing compliance e
Slide 27: Next-Gen Specialist Care, Virtual Primary Care 2.0, Hospital-at-Home
Next-Gen Specialist Care Virtual Primary Care 2.0 Hospital-at-Home Combine medical specialty and With integrated virtual primary care Use critical care provider network, chronic condition services to expand and always-on chronic condition InTouch virtual care delivery platform, offerings and cover n
Slide 28: Confident in ability to execute a multi-faceted integration plan
• Develop organization structure, retaining critical talent while rationalizing redundancies • Implement organizational changes • Deploy comprehensive change management program, leveraging shared culture and values Confident in ability to • Identify and implement cross-selling opportunities execute
Slide 29: Empowering more people to live better and healthier lives
Promoting healthy, viable and equitable Making meaningful progress on communities by making high-quality, addressing long-standing disparities personalized healthcare a reality for more as chronic conditions disproportionately people globally impact underserved communities Using technology to quickl
Slide 30: Transaction benefits summary
• Delivers significant financial benefits and value creation for shareholders through substantial revenue synergy opportunities and cost savings • Provides consumers with a single access point for whole-person care regardless of clinical situation, driving better health outcomes, lower costs and con
Slide 31: Financial projections notice
This presentation includes unaudited financial projections for both Teladoc Health and Livongo with respect to revenue, adjusted gross profit and adjusted EBITDA. Neither Teladoc Health’s independent registered public accounting firm, nor any other independent accountants, have audited, reviewed, co
Slide 32: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as am
Slide 33: Footnotes and sources
Page 7 3. Teladoc Brand Health, May 2020. 1. Demonstrated at Fortune Brands after their Members spent 2 years enrolled in the 4. Business Group on Health Survey, August 2020. Livongo for Diabetes solution over a 6-week period in individuals with BP of at least 140/80 in a peer-reviewed study prepare
Slide 34: Footnotes and non-GAAP definitions
Page 21 5. Adjusted EBITDA is a non-GAAP financial measure and consists of net loss adjusted to exclude (i) depreciation and amortization, (ii) amortization of intangible assets, (iii) 1. Example synergy calculation approach includes cross-sell of Livongo products into stock-based compensation expen
Slide 35: Appendix
COCCOCS COCCOCS SCOCOQ00OCS COCOQ00CSG COCOQ0O0CSG COCOCOCCS COCCOCCS Teladoc. APPENDIX
Slide 36: Teladoc and Livongo financial projections
Year Ending December 31 ($ in Millions) 20201 2021 2022 2023 Teladoc Financial Projections Total Revenue $988 $1,338 $1,739 $2,192 Adj. Gross Profit2 609 853 1,116 1,397 Adj. EBITDA3 89 154 244 362 Teladoc Management-Adjusted Livongo Projections: Total Revenue $351 $567 $892 $1,257 Non-GAAP Gross Pr
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