Benefytt Technologies — Health Insurance Innovations — Investor Presentation (January 2019)
28 slides from Benefytt Technologies's investor presentation, Jan 7, 2019
Slide 1: Investor Presentation January 2019
mm) HEALTH® 4 INSURANCE INNOVATIONS Investor Presentation January 2019 mem) HEALTH? INSURANCE INNOVATIONS
Slide 2: Disclosure
Disclosure Certain statements included herein, including those that express management's expectations or estimates of Health Insurance Innovations, Inc.'s ("HIIQ") future performance, constitute “forward- looking statements’ within the meaning of applicable securities laws. These statements may incl
Slide 3: HIIQ Solution
HIIQ Solution Providing Affordable Individual Health Insurance Health Benefit Plans Health Benefit Plans Guaranteed Acceptance or Underwritten Event-Based Fixed Indemnity Improved Coverage Options Affordable HEALTH? INSURANCE INNOVATIONS Supplemental / DBP Short-Term Medical Supplemental Medically U
Slide 4: HIIQ Partners with Best-In-Class Carriers and Benefit Providers
HIIQ Partners with Best-In-Class Carriers and Benefit Providers XY ri Nationwide" NOY] is on your side ASPEN A P CHUBB Standard Fil Life ; oO EVERESN ) UnitedHealthcare’ a= , TELADOC. , ie) LIFESHIELD Affac. Careington , Innovative, Customized, Affordable Health Key partnerships with A Data-driven P
Slide 5: Proprietary Technology
Proprietary Technology HIIQ Integrates Carriers, Distributors and Consumers on Our Proprietary Technology Platform Plug-and-play technology backbone allows for rapid, scalable growth and SAAS Platform Revenue Licensed Agents & eCommerce Partners HIIQ Consumers mem) HEALTH? Ei INSURANCE INNOVATIONS
Slide 6: Extensive and Growing Distribution Network
Extensive and Growing Distribution Network (=) Licensed Agent Call Centers + Unlimited Capacity for Agents GoHealth? + 15,000+ Agents Certified in Platform ai + 5,000+ Active Agents at Any Time Over 100 Call Centers LZ E-Commerce E-Commerce Partners + Focus on eCommerce + Unlimited capacity for grow
Slide 7: Compliance & Customer Experience
Compliance & Customer Experience BY THE NUMBERS Complaints are down, Sales are up Upheld Department of Insurance (DOI) Complaints Reduced YOY * 2017 Upheld HIIQ DOI: 4 + 2018 Upheld HIIQ DOI: 3 While consistently delivering customer service excellence Customer Service Performance 2018 + 150 Total Re
Slide 8: MyBenefitsKeeper
© MyBenefitsKeeper * Next Gen Platform * Improve Customer Experience * Manage Benefits and Purchase Products mem) HEALTH? Ei INSURANCE INNOVATIONS
Slide 9: MyBenefitsKeeper
MyBenefitsKeeper BUILT FOR SIMPLICITY © Purchase products from your phone © Add ID cards to digital wallet © View and download documents © Chat with customer service © Get notifications to reapply © Access policy documents © Find and call a doctor from the app © Find a doctor nearby @ Change billing
Slide 10: HIIQ Market Opportunity
HIIQ Market Opportunity UNINSURED POPULATION REPRESENTS POTENTIAL OPPORTUNITY TO EXPAND MARKETS FORALL OF OUR PRODUCTS @ 13% Under is The Uninsured Population 28.2 Million Non-Elderly Individuals 85% Ages 18-64 @ 2% 65 and Older More Customers in Increased = 4g, Fewer Need of Affordable Unaffordabil
Slide 11: HIIQ Market Opportunity
HIIQ Market Opportunity EXPANDING NON-ACA MARKET PENETRATION REMAINS VERY LARGE OPPORTUNITY Individual Health Insurance Market Non-ACA Market $87 Billion of Premium’ Health Benefit Plans © 76% ACA Major Medical © 24% Other Options $21.5 BILLION! Adressable Market Short Term Ancillary & Medical Alter
Slide 12: HIIQ Market Opportunity
HIIQ Market Opportunity NEAR TERM CATALYSTS FOR GROWTH STM 12 Month Rule Change + Increased duration of STM policies from 3 Months to 12 Months + Policies can be renewed or extended for up to 36 months + Subject to State Limitations Individual Mandate Penalty is Now Zero + January 1, 2019 Penalty we
Slide 13: Association Health Plan Opportunity
Association Health Plan Opportunity Max Projected Uptake of AHP between 2019-2023 + Approximately 2M - 4M insureds, 5M creating a projected $16B TAM + Final Rule allows small businesses, 4M including independent contractors and self-employed individuals, to join together to purchase large group cove
Slide 14: New Initiatives: Re-entering the ACA Market
New Initiatives RE-ENTERING THE ACA MARKET Re-launching ACA-compliant products + Previously marketed from 2014-2016 * One carrier today, more planned * Working with large distributors * Plans will be subsidy eligible Market conditions favoring re-entry into ACA « ACA individual market expected to st
Slide 15: New Initiatives: Re-entering the 65+ Market
New Initiatives RE-ENTERING THE 65+ MARKET Re-entering the over-65 market + Previously marketed for Medicare Carriers from 2014-2017 + New partners enabling re-entry opportunities + Building internal teams and external distribution strategy as landscape shows promise Operational improvements in comp
Slide 16: New Initiatives: Spanish Speaking Market
New Initiatives SPANISH SPEAKING MARKET + Population growth of Spanish speaking Americans has outpaced growth of language resources More than + More than 25 million people have limited English proficiency in the U.S., most of which are Spanish speakers — 40% - 50% of this group is uninsured, about 1
Slide 17: New Initiatives: Spanish Speaking Market
New Initiatives SPANISH SPEAKING MARKET Spanish speakers’ barriers to accessing health insurance: + Lack of language services + Limited affordability + Few incumbent players innovating in this space Underserved Spanish speaking Our current product designs are highly e-commerce traffic suitable for t
Slide 18: AgileHealthInsurance.com
AgileHealthInsurance.com | Health Insurance Significant Growth Opportunities * Conversions increased considerably with recent site improvements + Average premium increased with enhanced cross-sell experience + Launched 36-month plans in November with strong take rate + Integration improved close rat
Slide 19: Q4 2018 Business Update
Q4 2018 Business Update + Continued strong individual health insurance market opportunity + Executing on improving lifetime value (LTV) of customers * HHS rule implemented on October 2 allowing for longer duration Short Term Medical (STM) products + Since rule implementation: 2/3 of total STM polici
Slide 20: Q4 2018 Submitted IFP Policies Update
© 6 8) SS) oO mem) HEALTH? INSURANCE Q4 2018 Submitted IFP Policies Update Initiative + Lifetime value (LTV) of customers is continued focus + Focus on compliant distributors Results + Third party licensed distributors submitted policies are up year-over- year and in line with our expectations. + Ag
Slide 21: ASC 606: In Practice
ASC 606: In Practice Performance Obligation + Implementation is Q4, retroactive for 2018 + No change in Cash Flow Bifurcating Revenue by Performance Obligation $85 — Sales / Enrollment — point-in-time (85%) $100. $15 — Member Support — over-time (15%) 12 Month STM Plan — Revenue by month example + E
Slide 22: Our Philosophy & Corporate Responsibility
Our Philosophy & Corporate Responsibility OUR DEVOTION TO COMMUNITY At HIIQ, we believe that good health and peace of mind are the cornerstones of prosperity. We are fortunate and grateful for our success. Our foundation is about giving back to the most vulnerable in our local communities. * Collabo
Slide 23: Financial Results
Financial Results Q3 YoY YoY Metric 2017 Change FY2017 FY2016 Change Revenue $74.0 $63.3 17% $250.5 $184.5 36% Adjusted EBITDA $14.0 $12.9 9% $45.5 $27.8 64% GAAP Diluted EPS. $0.22 $0.30 (27%) $1.50 $0.57 163% Adj. EPS $0.61 $0.46 33% $1.65 $1.12 47% Notes: $millions except EPS Non-GAAP Financial M
Slide 24: Track Record of Success With Solid Growth Trajectory
Track Record of Success With Solid Growth Trajectory In thousands pe Policies In Force 250.0 CAGR icy In FOFC®. 192.7 200.0 29% Total Policy By ea 4955 rote 120.9 131.2 100.0 _— 60.7 “ | LI oo Q3 2015 Q3 2016 Q3 2017 Q3 2018 HIFP lM Supplemental aia a a i Adj. EBITDA as a Revenue & Adjusted EBITDA C
Slide 25: HIIQ Path to Continued Growth
HIIQ Path to Continued Growth Outstanding Customer Experience Data Driven Product Innovation Expand Compliant Distribution @ @ | HEALTH” H INSURANCE Focus on Scalability & Leverage INNOVATIONS Drive Recurring Revenue Growth Maximize E-Commerce Opportunity Consumer Awareness mem) HEALTH? H INSURANCE
Slide 26: Appendix
HEALTH? INSURANCE INNOVATIONS Appendix 26
Slide 27: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Reconciliation of Net Income to EBITDA and Adjusted EBITDA Reconciliation of Net Income to EBITDA and Adjusted EBITDA (unaudited) (Sin thousands) Three Months Ended Nine Months Ended September 30. September 30. 2018 2017 2018 2017 Net income $ 3.987 $ 6.002 $ 13.998 $ 21.476 Interest (income) expens
Slide 28: Reconciliation of Net Income to Adj. Net Income per Share
Reconciliation of Net Income to Adj. Net Income per Share Reconciliation of Net Income to Adjusted Net Income per Share (unaudited) (S in thousands except per share data) Three Months Ended ‘Nine Months Ended September 30, September 30. 2018 2017 2018 2017 Net income 3 3.987 $ 6.002 $ 13.998 $ 21.47
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