Teladoc Health, Inc. · NYSE:TDOC
Teladoc Health — Investor Day (September 2018)
113 slides from Teladoc Health's investor day presentation, Sep 27, 2018
Slide 1: Teladoc Health Investor Day
Teladoc. HEALTH INVESTOR DAY #2" Teladoc HEALTH
Slide 2: Safe harbor
Safe harbor This presentation contains, and our officers may make, “forward-looking” statements that are based on our management's beliefs and assumptions and on information currently available to management. These forward-looking statements include, without limitation, information concerning possib
Slide 3: Video
Video Investor DAY Teladoc Health, Inc Investor Day September 2018
Slide 4: Welcome & Overview
Teladoc. HEALTH O Welcome & Overview © Jason Gorevic, Chief Executive Officer
Slide 5: Agenda
Agenda Welcome & Overview State of the U.S. Healthcare Landscape Integrated Commercial Strategy Client Insight International Market Overview Open Q&A Jason Gorevic, Chief Executive Officer Senator William Frist, M.D. Peter McClennen, President Ryan Weiss, Assistant Vice President, The Great-West Lif
Slide 6: Teladoc Health investment highlights
Teladoc Health investment highlights The only comprehensive virtual care delivery solution Global footprint with significant growth opportunities Industry leader with strong competitive positioning Accelerating utilization rates across populations Compelling financial model
Slide 7: Expansive portfolio of virtual care services
Teladoc Health expansive portfolio of virtual care services Common platform Clinical quality Industry-leading engagement
Slide 8: Only global footprint in the industry
Only global footprint in the industry Clinical, operational, client, member presence Toronto Boston San Mateo New York Phoenix Dallas Sao Paulo Santiago
Slide 9: Teladoc Health's competitive moat
Teladoc Health’s competitive moat Engagement Global Reach Science & Results Entrenched Category-defining brand Market leadership Tech-Enabled Ops at Distribution Across Consumer demand Premium pricing Scale Channels Returns to scale Proven ROI Product/Clinical Proprietary Clinical Scope of Offerings
Slide 10: Redefining the competitive landscape
Redefining the competitive landscape Expert Medical Services Virtual urgent care Note: Competitor data represents Teladoc Health management estimates and other industry data.
Slide 11: Visits and access growth
Visits: 63%+ CAGR Access 51% CAGR Presented as reported. 1. Full-year Management Guidance; midpoint of range. 2. Excludes Advance Medical. 3. U.S. only, values rebased to 2014. Access defined as Paid-Access Members plus Visit Fee Only Lives.
Slide 12: Compelling financial model optimized for growth
Compelling financial model optimized for growth $411 • • $233 • $123 • $77 $44 2014 2015 2016 2017 2018E Note: presented as reported. 1 Full-year Management Guidance; midpoint of range.
Slide 13: Government program tail winds: planning for 2020
Government program tail winds: planning for 2020 Population sizing 21M Medicare Advantage1 38M Medicare Fee for Service1 65M Managed Medicaid2
Slide 14: New client wins
New client wins . ® > ExonMobil CENTENE PARTNERS. orporation HEALTHCARE Teladoc HEALTH Teladoc Health, Inc Investor Day September 2018 4
Slide 15: Continued execution on growth strategy
Continued execution on growth strategy Expand footprint Expand clinical Expand scope of Expand clinical & penetration specialties access & experience use cases New accounts Behavioral health Health kiosk Home care & channels Dermatology Mobile apps/hubs Post discharge Existing health plans Expert op
Slide 16: Video
Video Investor DAY Teladoc Health, Inc Investor Day September 2018 16
Slide 17: Virtual care: the first point of entry
Virtual care: The first point of... ..entry ...care ... resolution Teladoc HEALTH Teladoc Health, Inc Investor Day September 2018 ATET > Hello, 'm your Health Assistant. lean help connect youto the right kind of care. ATNOW REQUEST AVISIT > GENERAL, EXPERT MEDICAL, MEDICAL OPINION FINDA, OrRHATOLDGY
Slide 18: State of the U.S. Healthcare Landscape
Teladoc. HEALTH O © State of the U.S. Healthcare Landscape e Senator William Frist, M.D.
Slide 19: Macro healthcare trends support growing role for virtual care
Macro healthcare trends support growing role for virtual care • Accelerating transition to value-based care • Price transparency is a priority • Combatting the Opioid Epidemic • Medicare Advantage as a testing ground for new models of care • Empowering states to manage their Medicaid populations wit
Slide 20: Clinical quality and patient safety
Patient Physician Safety Engagement Organization Analytics- Quality driven Training Oversight quality insights Clinical Transparency service & measurement innovation
Slide 21: Washington insights
Washington insights S wr freee diary Teladoc Health, Inc Investor Day September 2018 2
Slide 22: Investor Q&A
Q&A Investor DAY Teladoc Health, Inc Investor Day September 2018 22
Slide 23: Integrated Commercial Strategy
Teladoc. HEALTH Integrated Commercial Strategy O O Peter McClennen, President Oo O O
Slide 24: ~40% of Fortune 500
Highlights Fully Insured & ASO Health Plans Hospitals & Health Systems Global Insurers & Financial Services 12,000+ 125+ total clients countries Employers Selective D2C ~40% of Fortune 500 35+ 290+ health plans hospitals & health systems
Slide 25: Sales and marketing strategies tailored to each entry point
Sales and marketing strategies tailored to each entry point Global insurers Hospitals & Health plans & financial services Employers health systems Direct to consumer Channel partners B2B direct Direct to consumer
Slide 26: Health Plan
Health Plan Health plans, Hospitals & health Employers global insurers & systems financial services • Differentiation • Patient acquisition • Engagement • Access • Efficiency • Return on investment • Cost of care • Provider alignment • Workplace presence Telehealth care services Expert medical servi
Slide 27: Sales and client executives organized for efficiency
Sales and client executives organized for efficiency Dedicated salesforce Hunters Farmers Applied Inside sales & biz dev quota, metrics- driven Whitespace approach Cross-sell & upsell Strategic client management Value focus & proven ROI
Slide 28: Diversified distribution and tailored solutions deliver results
Diversified distribution and tailored solutions deliver results Health plans & Employers Hospitals & health Direct to consumer financial insurers systems Regional Blues plan Fortune 500 employer Prestigious academic Behavioral health medical center consumer activation Deep Partnership with Clients –
Slide 29: Expanding footprint in the health plan channel
Expanding footprint in the health plan channel Client Needs 2014 (ASO) & 2016 (FI) – Launch Partnership • Access for rural populations • Hunting license (ASO) and enterprise (FI) deals • Reduce claim spend and ER over-usage for general medical • Behavioral and medical comorbidity costs 2017-2018 – D
Slide 30: Depth and breadth of integrated solution drives utilization
Depth and breadth of integrated solution drives relevance and utilization Client Needs 2016 – Launch Partnership • Offer rich, market-leading benefits • Client adds telehealth medical & expert • Empower employees to own their health & medical services in competitive process wellness • Behavioral hea
Slide 31: Purpose-built, white-labeled platform for hospitals and health systems
Purpose-built, white-labeled platform for hospitals and health systems Client Needs 2017 – Launch Partnership • Overarching consumer engagement strategy • Teladoc Health licensed platform displaces competitor • Managing costs of health system care delivery • Telehealth as a critical tool to improve
Slide 32: Powerful consumer acquisition & activation platform
Powerful consumer acquisition & activation platform Data and AI to optimize experience, retention, and LTV Online marketing expertise utilizing diversified advertising channels with high ROI Tailored brands wrapped around single infrastructure Proven model and infrastructure for additional DTC servi
Slide 33: First mover advantage & powerful trends
First mover advantage & powerful trends • • • •
Slide 34: Client Insight
www VU Www VUVUUUY COCQOQ00C0C0 COOCQO0000 COOCQO0Q00C0 Www UUUY Www UUUY > Cc a. € fe) Oo Teladoc. Client Insight
Slide 35: Ryan Weiss
Ryan Weiss Best Doctors client since 2001
Slide 36: The Great-West Life Assurance Company
The Great-West Life Assurance Company About Great-West • • • •
Slide 37: What we needed
What we needed • An innovative program that demonstrated the value of a proactive approach toward better claims management • A data-drive solution that helped differentiate us against specialty insurance carriers • Better health outcomes for our members
Slide 38: Proactive intervention
Proactive intervention Best Doctors predictive analytics • Established in the U.S., brought to Canada in 2018 • Leveraged power of Best Doctors network via big-data analytics • Hyper-targeted cases for proactive intervention • Concierge service to improve health outcomes, lower costs The value to Gr
Slide 39: Best Doctors partnership
Best Doctors partnership Clinical impact Top reasons for coming to Best Doctors Orthopedic Surgery 12% Products Medical Oncology 11% Neurology 10% Gastroenterology 7% Rheumatology 6% Tangible results 1M members | 2.5M lives 2,001 17-year
Slide 40: Investor Q&A
Q&A Investor DAY Teladoc Health, Inc Investor Day September 2018 40
Slide 41: International Market Overview
Teladoc. o o 9 International O O O Market Overview O O Oo Carlos Nueno, CEO Advance Medical
Slide 42: Introduction to Advance Medical
Introduction to Advance Medical The international market Growth strategy Case study
Slide 43: Building blocks of Advance Medical
Building blocks of Advance Medical Global capabilities Strong medical with local Strong technology teams knowledge Comprehensive Member Flexibility to adapt service portfolio engagement and to client’s needs and product utilization innovation
Slide 44: Advance Medical
Advance Medical Providing innovative remote healthcare services to insurance companies, self-insured employers, and pharmaceutical companies since 1999 800+ 300+ 125 countries 20+ 300+
Slide 45: Advance Medical core services
Advance Medical core services Internationally, our full scope allows us to reach a diverse customer profile and provide them with a unique breadth of services Health insurance International PMI
Slide 46: Positive response from clients and prospects
Positive response from clients and prospects
Slide 47: Opportunities in state sponsored health insurance markets
Opportunities in state sponsored health insurance markets Significant volume resulting in multi-day wait times and shorter appointments Physician shortage in critical specialties Aging population Limited or no access to family doctor
Slide 48: Private health insurance markets in Europe
Private health insurance markets in Europe 30 European private health insurance markets reach ~155 million members (1) Served Total Total Total population addressable market market lives 1. Insurance Intelligence Centre, Management Data, Insurance Europe 2. Global gross-written-premium (GWP) growth
Slide 49: Favorable competitive environment
Favorable competitive environment
Slide 50: Emerging markets show big growth potential of private health insurance
Emerging markets show a big growth potential of private health insurance ▲3% per annum ▲6% per annum ▲16% per annum ▲30% per annum Source: McKinsey Global Insurance Pool, June 2016
Slide 51: Teladoc Health international growth strategy
Teladoc Health international growth strategy
Slide 52: Personalized virtual health partnerships
Personalized virtual health partnerships
Slide 53: Built on strong management capabilities
Built on strong management capabilities Myra Yu John McQuillan Caio Soares China UK Brazil
Slide 54: Case study: medical triage in leading Spanish Health Insurer
Case study: medical triage in leading Spanish Health Insurer 100,000+ ~15% ~50% ~50% 95%
Slide 55: Case study: high utilization reduces emergency visits and house calls
Case study: high utilization reduces emergency visits and house calls
Slide 56: Case study – impact of medical triage
Case study – impact of medical triage
Slide 57: Key drivers of our success and differentiation
Key drivers of our success and differentiation Comprehensive service portfolio and product innovation
Slide 58: Investor Q&A
Q&A Investor DAY Teladoc Health, Inc Investor Day September 2018 58
Slide 59: Break & Working Lunch
Teladoc. HEALTH Break & Working Lunch O O O00 INVESTOR O DAY
Slide 60: CVS Health & Teladoc Health Partnership
Teladoc. CVS Health & Teladoc Health o Partnership O O eal EVP & Chief Medical Officer Oo O O INVESTOR O DAYs.:"
Slide 61: Dr. Troy Brennan
Dr. Troy Brennan EVP & Chief Medical Officer CVS Health ©2018 CVS Health and/or one of its affiliates: Confidential & Proprietary 61
Slide 62: Retail management of population health: targets and tools
Retail management of population health: targets and tools Teladoc Health Investor Day September 2018 ©2018 CVS Health and/or one of its affiliates: Confidential & Proprietary
Slide 63: Growth of CVS health capabilities helps evolve population health management
Growth of CVS health capabilities helps evolve population health management We are going to create a new, unique chassis for population health management Combine data-driven insights into the patient’s health with convenience and intimacy of retail health Digital intelligence, plus human touch, prod
Slide 64: Three targets and four tools
Concentrating the focus of our efforts: Three targets and four tools Targets Tools Five common chronic diseases Coordinator, clinic, and We will shrink the distance pharmacy visit between the patient’s everyday Outreach to fragile patients life and our care engagement Enhanced digital and Better tra
Slide 65: Target: Five common chronic diseases
Target: Five common chronic diseases Challenges Biometrics Outcomes Diabetes $30B per year in lower costs with 1% HbA1C drop Digital glucometer HbA1C Hypertension $100B total savings with optimal blood pressure control Digital cuff BP Hyperlipidemia $60B in savings with 95% adherence Home cholestero
Slide 66: The new paradigm for care management
The new paradigm for care management: Three targets and four tools Targets Tools Five common chronic diseases Coordinator, clinic, and We will shrink the distance pharmacy visit between the patient’s everyday Outreach to fragile patients life and our care engagement Enhanced digital and Better trans
Slide 67: CVS health key innovation: population health delivered in the community
CVS health key innovation: Population health conveniently delivered in the community Unprecedented reach provides base for national network Nearly 36,000 clinical professionals, including nurse practitioners, infusion nurses, and pharmacists More than 75% of the U.S. population lives within 5 miles
Slide 68: Tools: Enhanced digital, telemedicine outreach
Tools: Enhanced digital, telemedicine outreach All data captured in Epic® medical record Engagement levels are Synergistic relationship Telemedicine fills the increasing with greater with artificial intelligence- gaps between digital prevalence of devices based virtual assistants messaging visits an
Slide 69: Key learnings from telehealth pilots
Key learnings from telehealth pilots Patient experience Integrating assets The right partner matters 95% highly satisfied with the Higher utilization of telehealth Focus on clinical quality and quality of care, technology in regions where MinuteClinics breadth of clinical services ease of use, and t
Slide 70: MinuteClinic video visits
MinuteClinic video visits Launched in August with a clinical focus on minor illnesses and injuries Offered direct to patients As of next week will be in 18 states and Washington, D.C. ©2018 CVS Health and/or one of its affiliates: Confidential & Proprietary 70
Slide 71: Potential next steps and opportunities
Potential next steps and opportunities Expanding Expanding Expanding reach clinical programs distribution Coverage in all 50 states Access to virtual primary Enhance CVS employer care to close care gaps and payer cost management Video visits conducted by and improve interventions programs with virtu
Slide 72: Q&A
Q&A ©2018 CVS Health and/or one of its affiliates: Confidential & Proprietary
Slide 73: Engagement Engine Update
Teladoc. HEALTH Engagement Engine fe) Update Stephany Verstraete O O Chief Marketing Officer O O O Dan Trencher SVP of Product & Corporate Strategy
Slide 74: Eligibility, moment-of-need awareness, resolution confidence
Macro trends Eligibility awareness Engagement Science Moment-of-need awareness Breadth of clinical services Resolution confidence Intuitive, guided experience
Slide 75: Driving results across all Teladoc Health populations
Driving results across all Teladoc Health populations DTC Behavioral Health Age Group Telehealth(2) 14% n/a 9% 28% 33% 49% 29% 17% 14% 6% 1. Year to date 2018 2. General medical and dermatology visits
Slide 76: Consumer search behavior over time
2 years ago A year ago Today Doctor near Doctor near me Doctor available now Parker New York
Slide 77: App-based visit requests +133% ytd
Visit request by modality Call App-based visit requests App 32% +133% ytd 36% >60% of all visit requests are from mobile devices Web 32%
Slide 78: Data science & analytics
Data science & analytics + Capabilities Targeted Media Message reach mix personalization + Scale, experience, & expertise
Slide 79: Targeting: Claims triggered, industry specific, predictive models
Targeting: Claims triggered, industry specific, predictive models
Slide 80: Marketing objectives and touchpoints
When watching When streaming Thought leadership In the workplace Objective Word of mouth Resolution confidence In the home Eligibility and Social media education awareness Top-of-mind, moment- In the inbox of-need awareness On the go Plan communications When need arises
Slide 81: Eligibility & education awareness
Eligibility & education awareness
Slide 82: Moment-of-need awareness
Surround sound communications as a differentiator Moment-of-need awareness No Older Notifications. Teladoc HEALTH Urgent care open now 2 Teladoe ‘oadocsboaré coos doctors are avaiable 2477 by web, prone or obie app, Kom \whoreor younappen tb. i= ri = forte (a) ‘Want your child to vst with a doctor f
Slide 83: Resolution confidence
Surround sound communications as a differentiator Resolution confidence Share the Teladoc love ® ‘Quality care is worth sharing, Tell your friends so they, too, can have 24/7 access to doctors. svose Teladoc Health #Virtualcare puts access to quality care within reach, even during natural disasters.
Slide 84: Google brand queries by month
Google brand queries by month 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 - Competitor A Competitor B Competitor C Teladoc Health brands* *Excludes BetterHelp
Slide 85: Video
Video Investor DAY Teladoc Health, Inc Investor Day September 2018 85
Slide 86: Engagement opportunities
engagement opportunities • Touch greater share of population • Builds trust, habit • Integration and coordination of services
Slide 87: A sea of digital health point solutions for purchasers
A sea of digital health point solutions for purchasers Teladoc HEALTH Teladoc Health, Inc Investor Day September 2018 87
Slide 88: Equals daunting consumer experience
Teladoc HEALTH Equals daunting consumer experience oa ey Pe Teladoc Health, Inc Investor Day September 2018 88
Slide 89: Must be smart: integrated, personalized, relevant
must be “smart” Integrated, personalized, and relevant
Slide 90: Guided experience demo
Guided experience demo Teladoc HEALTH
Slide 91: Fast Forward: when Virtual comes first
Fast Forward: when Virtual comes first Consumers access Teladoc as the first access point into the healthcare system Virtual First Model leverages: Higher utilization and substantial cost differential for plan sponsors
Slide 92: Advanced analytics create a customized Opportunity Map
Advanced analytics create a customized Opportunity Map
Slide 93: Virtual as first access point to fully integrated care experience
Virtual as first access point to fully integrated care experience Telehealth care services 4 = HC ecosystem __| | |_| rs " {0} integration Integrated user Guidance \ experience & navigation Q Virtual expert medical services Teladoc HEALTH Teladoc Health, Inc Investor Day September 2018 93
Slide 94: Macro trends: communications, breadth of clinical services
Macro trends Communications Breadth of clinical services Intuitive, guided experience
Slide 95: Operational & Financial Overview
Teladoc. HEALTH Operational & O Financial Overview O O Mark Hirschhorn Oo O O Chief Operating Officer & Chief Financial Officer
Slide 96: Revenue growth 2014–2018E
$415 14% 86% $233 15% 85% $123 $77 18% $44 18% 82% 15% 82% 85% 2014 2015 2016 2017 2018E Presented as reported. 1. Full-year Management Guidance; midpoint of range. 2. Excludes Advance Medical.
Slide 97: Expected annual increase of +100 to +200 basis points
Expected annual increase of +100 to +200 basis points 32.4 23.2 23.0 15.7 11.1 19.6 6.3 12.1 9.3 5.3 9.4 1.0 1.8 3.6 3.6 Presented as reported. 1. 2018 Full-year Management Guidance; midpoint of range. 2. U.S. Visit Fee Only Lives pro forma to include Aetna Fully Insured. 3. U.S. paid membership uti
Slide 98: Revenue and visits 2014–2018E
2,550 1,463 952 576 300 2014 2015 2016 2017 2018E Presented as reported. 1. 2018 full-year Management Guidance; midpoint of range.
Slide 99: US and International revenue
US Int'l 50 19 245 214 123 77 44 2014 2015 2016 2017 YTD 2018 PF 1. Source: McKinsey Global Insurance Pool (GIP), June 2016. 2. First nine months of 2018 pro forma for acquisition of Advance Medical.
Slide 100: US Access Fee Only pricing
$1.10 $1.08 $1.00 $0.42 Q1 '15 Q4 '15 Q4 '16 Q4 '17 Q4 '18E 1. US Access Fee Only. Q4 2018E reflects midpoint of guidance range. 2. Estimates.
Slide 101: Adjusted EBITDA and operating expense outlook
1. “Adj. EBITDA”, “Opex as % of Rev”, and “G&A as % of Rev” exclude stock-based compensation. See appendix for historical GAAP to non-GAAP reconciliation, the equivalent GAAP measure is not accessible on a forward-looking basis 2. 2018 Full-year Management Guidance; midpoint of range.
Slide 102: Operating leverage increasing with scale
Operating leverage increasing with scale Call Center as a Percent of Access —Call Center —-App/Web 50% 50% 49% 49% 54% 56% 58% 58% Se% 7 Se ———— 50% 50% 51% 51% 46% 44%, 42% 42% 32% 32% 32% Q1 2016 =Q22016 Q32016 Q42016 Q12017) Q22017) Q32017 Q42017 Q1 2018 Q22018 Q32018 Visit Volume vs. Avg. Call C
Slide 103: Volume & scale reinforce a positive network effect
Volume & scale reinforce a positive network effect More Visits
Slide 104: Proprietary machine learning tools forecast supply requirements
• Proprietary machine learning tools forecast supply requirements, predict doctor shortfalls/surpluses, and enable efficient provider management through proactive outreach • Model input variables include: o Historical visit request and doctor log-in data o CDC pandemic data o Surround sound marketin
Slide 105: Predicting wait times with proprietary AI
• Perceived wait time decreases with knowledge of expected wait time • Accurately predicting wait time drives improved yield and reduces friction to a completed visit • Proprietary AI leveraging machine learning algorithm launched in Q3 2018 • Estimated wait times now >90% accurate, on average
Slide 106: Liquidity Highlights
Unaudited pro forma estimates as of September 30, 2018 Liquidity Highlights • • • • 1.
Slide 107: Note: information is indicative, not a guarantee
Note: Information provided is indicative in nature and not a guarantee of future performance.
Slide 108: In excess of 90% visibility into FY 2019 revenue
In excess of 90% visibility into FY 2019 revenue •
Slide 109: Compelling financial model
Compelling financial model ¢ Multiple vectors driving sustainable top-line growth in a large addressable market * High degree of visibility into future revenue streams ¢« Scalable model * Strong & flexible balance sheet Teladoc HEALTH @©Teladoc Health, Inc. Investor Day September 2018 109
Slide 110: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations EBITDA and Adjusted EBITDA GAAP to non-GAAP reconciliations - EBITDA and Adjusted EBITDA ($ Millions) 2015 2016 2017 1H 2018 Net loss ($58.0) ($74.2) ($106.8) ($48.9) Interest expense, net 2.2 2.6 17.5 11.8 Income tax provision (benefit) 0.0 0.5 (0.2) (0.1) Depreciat
Slide 111: Closing remarks
Closing remarks Q&A Investor Ox Teladoc Health, Inc Investor Day September 2018
Slide 112: Thank you
Thank you Investor DAY Teladoc Health, Inc Investor Day September 2018 n2
Slide 113: Teladoc Health Investor Day
Teladoc. HEALTH INVESTOR DAY #2" Teladoc HEALTH