The Oncology Institute, Inc. · NASDAQ:TOI
The Oncology Institute — Oncology Institute — Investor Presentation (March 2023)
32 slides from The Oncology Institute's investor presentation, Mar 27, 2023
Slide 1: Investor Presentation March 2023
Investor Presentation March 2023
Slide 2: Disclaimer
Disclaimer Forward Looking Statements Financial Information; Non-GAAP Financial Measures This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Re
Slide 3: TOI Investment Highlights
Oncology is a Large and Growing Market Today’s Care Delivery System is Broken and Does Not Address Quality and Cost Issues TOI is the First Mover Disrupting Oncology Care with a Unique Value-Based Model Our Technology Platform is the First to Standardize and Align Care Delivery at Scale We Have Prov
Slide 4: Rising Cost of Oncology Care is a Massive Problem in the U.S.
of U.S. GDP and rising 18% 2x spent per person compared to OECD average Yet, U.S. incidence of chronic illness and longevity are worse than average $200bn+ 11 –14% CAGR U.S. Oncology drug spending growth in the next four years 9.5% of U.S. adults have been diagnosed with cancer estimated 2020 U.S. o
Slide 5: Our Disruptive Value-Based Oncology Care
Our Disruptive Value-Based Oncology Care We Are Disrup�ng the Status Quo in Cancer Care Our Healthcare System is Being Rebuilt with New Value-Based Care Models 5 | Investor Presentation March 2023 • Incentivized by quality • Incentivized to use high-value therapies • Physician compensation model ali
Slide 6: We are a Leading Value-Based Oncology Care Platform
We are a Leading Value-Based Oncology Care Pla�orm 6 | Investor Presentation March 2023 Who We Are Our Growth Relationships with Leading Payors and Risk-Taking Providers $252M $64M(2) 2016A 2022A 3.94x 2016 Revenue 62 15 Locations in Five States Current Markets 101 ~1.7 Oncologists and Mid-levels Li
Slide 7: We are Shifting the Market to Value-Based Oncology Care
We are shi�ing the market to value-based oncology care 7 | Illustrative Value Based Primary Care Group Funds Flow We Are Shifting the Market to Value-Based Oncology Care Oncology Spend is a Major Pain Point for Value-Based Primary Care • Growth in value-based primary care propels TOI’s growth • Valu
Slide 8: Our Value-Based Oncology Care Model is Disrupting the Market
TOI is a Leading Value-Based Oncology Care Practice that is Aligning both Physicians and Payors with Incentives to Simultaneously Enhance Quality and Lower Costs Aligned with physicians, practice-based models are incentivized to over prescribe expensive therapeutics and over utilize care which resul
Slide 9: Highly Effective in Delivering Quality, Value-Based Oncology Care
Lower inpatient admissions 30% Fewer Emergency Department visits in the last month of life 75% Lower median total healthcare costs from diagnosis to death > 25% Fewer acute care facility deaths 40% Improvement in Patient Satisfaction 14% 9 | Investor Presentation March 2023 Study on TOI Patient Popu
Slide 10: Highly Satisfied Patient Base Supports Care Delivery Model
Highly Satis ed Patient Base Supports Care Delivery Model While Strengthening Payor Relationships Our Pa�ent-Centric Focus Drives High Levels of Sa�sfac�on –Lynwood Clinic Patient –Riverside Clinic Patient–Downey Clinic Patient 1.00 2.00 3.00 4.00 5.00 1/21 2/21 3/21 4/21 5/21 6/21 7/21 8/21 9/21 10
Slide 11: We Use Multiple Levers to Reduce Cost of Care
Where We Focus Savings We Use Mul�ple Levers to Reduce Cost of Care 11 | Investor Presentation March 2023 Treatments High-Value Cancer Care Program Palliative and Hospice Collaboration • Providers trained in advanced care planning • Close coordination between network providers Experience in relative
Slide 12: Proven Portability with Rapidly Expanding Footprint
12 | Investor Presentation March 2023 (Lancaster) (Rancho Mirage) California Nevada FloridaArizona 5 Clinics & 12 Hospital A liations4 Clinics & 6 Hospital A liations Texas . 43 Clinics & 75+ Hospital A liations 8 Clinics & 9 Hospital A liations 2 Clinic & 1 Hospital A liations Proven Portability wi
Slide 13: Our Care Model is Hard to Replicate
Our Care Model is Hard to Replicate 13 | Investor Presentation March 2023 TOI has Developed Many Highly Speci c and Di cult to Replicate Capabilities that Collectively Comprise our Competitive Strengths Physician Recruiting Tech-enabled Care Pathways Delivered in Community Setting Clinical Culture C
Slide 14: Our Technology Platform is Purpose Built for Oncology Care
Our Technology Pla�orm is Purpose Built for Oncology Care 14 | Investor Presentation March 2023 Collect Work with health plans and primary care doctors on front-end collection of extensive patient data sets Analyze Apply Leverage proprietary algorithms and data science to re ne relevant clinical car
Slide 15: Strong Unit Economics Drives Increasing Profitability
Strong Unit Economics Drives Increasing Profitability 15 | Investor Presentation March 2023 Value-Based Volume Mix: As our mix of value-based revenue increases our margins are expected to improve; pods today with highest mix of value-based contract achieve 30%+ margins Provider Utilization: Margins
Slide 16: Strong Unit Economics Provide the Foundation of Future Growth
Strong Unit Economics Provide the Founda�on of Future Growth 16 | Investor Presentation March 2023 Illustrative New Market Ramp -10% -5% 0% 5% 10% 15% 20% 25% 30% (1,000) (500) - 500 1,000 1,500 2,000 2,500 3,000 Year 1 Year 2 Year 3 Year 4 Year 5 G ro ss M ar gi n EB IT D A ($ 00 0s ) Denovo EBITDA
Slide 17: Multiple Levers to Sustain Long Term Growth Trajectory
Mul�ple Levers to Sustain Long Term Growth Trajectory TOI represents 0.01% of the U.S. Oncology Market providing substantialgrowth opportunity 17 | Investor Presentation March 2023 Existing Markets Continue Driving Growth in Lives and Partnership Expansion • New contracts • Expand covered lives • Ne
Slide 18: Financial Overview
Financial Overview
Slide 19: Revenue and Milestone Timeline
Revenue(1) and Milestone Timeline 19 | Investor Presentation March 2023 Notes: (1) 2007-2017 revenue is cash basis, unaudited and pertains to the Predecessor entity only (2) Predecessor revenue of $76M; Successor revenue of $37M Dispensary Opening New State Entry $1 $10 $17 $26 $29 $38 $41 $42 $48 $
Slide 20: Diversified Business Model with Multiple Drivers of Revenue Growth
Diversified Business Model with Mul�ple Drivers of Revenue Growth and Margin Expansion Diverse Line of Business 20 | Investor Presentation March 2023 • Legacy / Same Store • Acquisition • De Novo • Capitation Contracts • Gainshare Contracts MD Productivity MD / APP Pairing Technology and Process Exc
Slide 21: Value Driven Highly Attractive Economic Model
Value Driven Highly A�rac�ve Economic Model Illustrative Economic Model 21 | Investor Presentation March 2023 Payor ContractsProvider Contracts FFS Driven; High Cost for Payors and Risk-Taking Providers Unmanaged or Under-managed Oncology Market TOI saves payors 25%+ of medical oncology costs Pool o
Slide 22: Gain Share Contracts
Gain Share Contracts 22 | Investor Presentation March 2023 Gain Share Contracts O er TOI an Entry Point with Payors in New Markets Illustrative Gain Share Contract Structure • Gain share contracts o er payors an alternative to full capitation, with incentives for TOI to drive reductions in cost of c
Slide 23: Proven economic model shows 20+% Gross Margins
Proven economic model shows 20+% Gross Margins in Mature, Value-Based driven markets 23 | Investor Presentation March 2023 • Established Value-Based Partnerships • Continued Strategic Growth • Same-Store Gross Margin 20+% • Recently opened markets • Launched in partnership with national value-based
Slide 24: Historic growth supports continued scale to drive increased revenue
Historic growth supports con�nued scale to drive increased revenue 24 | Investor Presentation March 2023 Revenue ($ in millions) Capitated Lives (in millions) 2019-2022 Growth New Value-Based Contracts +10 new contracts +624K lives New Markets – 8 (in 3 states) New Clinics – 11 through acquisition,
Slide 25: Benefits of scale go beyond top line
Benefits of scale go beyond top line 25 | Investor Presentation March 2023 TOI’s growth allows us to scale our infrastructure, driving better margins due to lower drug costs, and more e cient providers – all leading to more savings for our payor partners and patients Corporate G&A E ciencies Provide
Slide 26: Capital Deployment Strategy
Capital Deployment Strategy fueled by recent $110 million strategic investment by Deerfield Management 26 | Investor Presentation March 2023 Adjusted EBITDA and Net Income Pro tability projected in 2024 Acquisitions De Novo Growth Operating Losses Working Capital (predominantly funding A/R)
Slide 27: 2023 Guidance
2023 Guidance 27 | Investor Presentation March 2023 Revenue Gross Pro t Adjusted EBITDA Value-based lives(1) $290 to $320 million, representing approximately 15% to 27% growth over 2022 revenue $60 to $70 million $(25) to $(28) million 1.75 million to 2.0 million lives Note: "TOI's achievement of th
Slide 28: Key Takeaways
Key Takeaways 28 | Investor Presentation March 2023 Early Market Leader in Large and Growing Market Proven Economic Model with Imbedded Scalability Well Capitalized, with Disciplined Deployment Strategy Our growth enables high-quality, a ordable care for more patients
Slide 29: Historical Financials
Historical Financials
Slide 30: Historical Financials
30 | Investor Presentation March 2023 Historical Financials Revenue ($ in thousands) To be continued.. Patient services Dispensary Clinical trials & other Total operating revenue 31,699 19,232 1,373 52,304 35,057 18,679 1,425 55,161 39,109 20,218 1,594 60,921 44,627 18,839 1,511 64,977 47,992 21,607
Slide 31: Historical Financials
31 | Investor Presentation March 2023 Historical Financials Income (Loss) Loss from operations Other non-operating expense (income) Interest expense Change in fair value of derivative warrant liabilities Change in fair value of earnout liabilities Change in fair value of note embedded derivative lia
Slide 32: Adjusted EBITDA Reconciliation
32 | Investor Presentation March 2023 Adjusted EBITDA Reconciliation The following table provides a reconciliation of net income (loss), the most closely comparable GAAP nancial measure, to Adjusted EBITDA: The Company includes adjusted EBITDA because it is an important measure upon which our manag
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