The Oncology Institute, Inc. · NASDAQ:TOI
The Oncology Institute — Oncology Institute — FY2021 Earnings Presentation
30 slides from The Oncology Institute's earnings presentation, Mar 11, 2022
Slide 1: Investor Presentation March 2022
Investor Presentation March 2022
Slide 2: We are a Leading Value Based Oncology Care Platform
We are a Leading Value Based Oncology Care Platform 2 160+ Clinical Trials Giving Patients Cutting Edge Treatment Access ~51K Unique Patient Encounters in 2021 Who We Are Relationships with Leading Payors and Risk Taking Providers Our Growth (Revenue, $ millions) $66 $203 2016A 2021A 25.1% CAGR 3.1x
Slide 3: Slide DS0 Shouldn't we keep these metrics as of year-end? If so, this would
Slide 2 DS0 Shouldn't we keep these metrics as of year-end? If so, this would be 10. Diona Simoneit, 2022-03-05T23:05:04.740 RM0 0 based on Daniel's comments Rajovic, Mark, 2022-03-07T02:11:26.302 DS0 1 Latham advised to keep consistent with 10-K. This needs to be 10. Diona Simoneit, 2022-03-07T17:4
Slide 4: Investment Highlights
Investment Highlights 3 A market leader in value-based oncology currently disrupting a massive, unaffordable and inefficient oncology market Highly tailored and integrated offering supported by both providers and payers as incentives are aligned Scalable, replicable model with significant whitespace
Slide 5: Rising Cost of Oncology Care is a Massive Problem in the U.S.
Rising Cost of Oncology Care is a Massive Problem in the U.S. 4 U.S. Oncology Spend Growth Continues to Accelerate Healthcare is Unaffordable and Inefficient in the U.S. 18% of U.S. GDP and rising 2x spent per person compared to OECD average Yet, U.S. incidence of chronic illness and longevity are w
Slide 6: We Are Disrupting the Status Quo in Cancer Care
We Are Disrupting the Status Quo in Cancer Care 5 Our Disruptive Value Based Oncology CareToday’s Traditional Fee-for-Service Oncology Care Incentivized by quality Incentivized to use high-value therapies Physician compensation model aligned to quality and patient satisfaction Practice tailo
Slide 7: We Are Shifting the Market to Value Based Oncology Care
We Are Shifting the Market to Value Based Oncology Care 6 We Are Shifting the Market to Value Based Oncology Care • Currently, have 2 gain share contracts in Florida covering over 30k potential MA lives. We expect growth with other value-based primary care groups. • Value based payments comprised of
Slide 8: Gain Share Contracts
Gain Share Contracts 7 • Gain share contracts offer payors an alternative to full capitation, with incentives for TOI to drive reductions in cost of care and improvements in quality of care • Typically structured with an upside-only share of savings generated on patients seen by TOI relative to a be
Slide 9: We Use Multiple Levers to Reduce Cost of Care
We Use Multiple Levers to Reduce Cost of Care 8 Where We Focus Savings >25% Reduction in Spend(1) Experience in relatively low- cost California market Treatments Palliative Care Symptom Management Reduce practice pattern variability Access to clinical trials in the community Vertical integrati
Slide 10: Our Care Model is Hard to Replicate
Our Care Model is Hard to Replicate 9 TOI has Developed Many Highly Specific and Difficult to Replicate Capabilities that Collectively Comprise our Competitive Moat Clinical Culture Coding Accuracy Care Management Integration of Palliative Care and Hospice Physician Recruiting Clinical Trials Tech-e
Slide 11: Our Results are Peer-Reviewed and Published
Our Results are Peer-Reviewed and Published 10 Highly Effective in Delivering Quality, Value Based Oncology Care > 25% Lower median total healthcare costs from diagnosis to death 75% Fewer Emergency Department visits in the last month of life 40% Fewer acute care facility deaths 14% Improvement in P
Slide 12: Our Patient-Centric Focus Drives High Levels of Satisfaction
Our Patient-Centric Focus Drives High Levels of Satisfaction 11 Highly Satisfied Patient Base Supports Care Delivery Model While Strengthening Payor Relationships Thousands of same-day patient surveys via text and email. Survey feedback loop to operations managers drives service excellence. “Thank y
Slide 13: Slide DS0 Should we be including 2022 data? If ok, we should not include
Slide 11 DS0 Should we be including 2022 data? If ok, we should not include March as the month isn't over. Diona Simoneit, 2022-03-05T23:08:25.668 RM0 0 I would suggest removing march Rajovic, Mark, 2022-03-07T02:14:26.745 DS0 1 Latham advised to not share any Q1 data. Please cut-off at 12/31/21. Di
Slide 14: Our Technology Platform is Purpose Built for Oncology Care
Our Technology Platform is Purpose Built for Oncology Care 12 Providers Payors 1. Collect Work with health plans and primary care doctors on front- end collection of extensive patient data sets 3. Apply Use results from our data analysis to dictate appropriate care pathways 2. Analyze Leverage propr
Slide 15: New Market Entry Playbook with Track Record of Success
New Market Entry Playbook with Track Record of Success Designed to Scale Efficiently 13 1 32 Market Identification Market Prioritization Market Entry Addressable Market Demographics Characteristics and Trends High Cost of Care Payor Needs Existing Payor Partnership Cost Containment Oppor
Slide 16: Multiple Levers to Sustain Long Term Growth Trajectory
Multiple Levers to Sustain Long Term Growth Trajectory 14 Service Expansion Expand Scope and Diversify Service Offering Build comprehensive portfolio of ancillary services Radiation Oncology Pharmacy Clinical trials MSO services Data monetization Existing Markets Continue Driving Live Gr
Slide 17: Financial Overview
Financial Overview 15
Slide 18: Recent Highlights
Recent Highlights 16 Ended 2021 at with approximately 1.6 million lives under value-based contracts Cared for over 51,000 unique patients in 2021 and had over 230,000 patient visits at owned clinics Commenced four new capitated payor contracts in California since mid-2021 Acqui-hires of thre
Slide 19: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights 17 $49 $52 $47 $48 $49 $50 $51 $52 $53 4Q20 4Q21 Revenue Total revenue was $52 million, a 6.8% increase from the prior year period Gross profit was $8 million, a 23.1% decrease from the prior year period Net loss was $(10) million, compared to $(5) million i
Slide 20: Slide DS0 Change to $49 Diona Simoneit, 2022-03-07T17:56:09.733 RM0 0 updatedupdated Rajovic, Mark, 2022-03-07T18:17:…
Slide 17 DS0 Change to $49 Diona Simoneit, 2022-03-07T17:56:09.733 RM0 0 updatedupdated Rajovic, Mark, 2022-03-07T18:17:33.445 RM0 1 updated Rajovic, Mark, 2022-03-07T18:17:38.335 DS1 Change to $52 Diona Simoneit, 2022-03-07T17:56:23.720 RM1 0 updated Rajovic, Mark, 2022-03-07T18:15:37.972 DS2 Chang
Slide 21: Key Metrics
Key Metrics 18 19.3% 19.7% 20.1% 18.8% 19.0% 19.2% 19.4% 19.6% 19.8% 20.0% 20.2% 2019 2020 2021 Gross Margin % 155 188 203 $0 $50 $100 $150 $200 $250 2019 2020 2021 Revenue ($ in millions) 1.1 1.3 1.6 0.0 0.5 1.0 1.5 2.0 2019 2020 2021 Capitated Lives (in millions) 30 37 41 $0 $10 $20 $30 $40 $50 20
Slide 22: Slide DS0 Can we round the dollar amounts to whole dollars to be consistent?
Slide 18 DS0 Can we round the dollar amounts to whole dollars to be consistent? Diona Simoneit, 2022-03-07T17:59:25.732 RM0 0 updated Rajovic, Mark, 2022-03-07T18:17:55.786 DS1 Can we round the dollar amounts to whole dollars to be consistent? Diona Simoneit, 2022-03-07T17:59:31.308 RM1 0 updated Ra
Slide 23: Guidance
Guidance 19 Updated Guidance Drivers Strong year-over-year revenue and lives growth expected Continued focus on pipeline execution and network expansion to deliver care under value-based contracts Growth in California and new market penetration in Florida and Texas Gain sharing contracts and
Slide 24: Slide RM0 note form LW to TOI: Add a bullet on the defaulting customer
Slide 19 RM0 note form LW to TOI: Add a bullet on the defaulting customer that was described in the press release/script? Rajovic, Mark, 2022-03-08T00:09:49.573
Slide 25: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation 20 DS0
Slide 26: Slide DS0 Can we round these to whole dollars in millions to be consistent
Slide 20 DS0 Can we round these to whole dollars in millions to be consistent with the rest of the financials presented? Diona Simoneit, 2022-03-07T18:01:30.828 RM0 0 I have no problem doing this but some categories would round to 0 (Interest, taxes, Mgmt. Fees, Other, Acquisiton costs) Rajovic, Mar
Slide 27: Net Income to Adjusted EBITDA Reconciliation Footnotes
Net Income to Adjusted EBITDA Reconciliation Footnotes 21 (1) During the year ended December 31, 2021, non-cash addbacks were primarily comprised of a $4,957 gain on debt extinguishment and bad debt recoveries, net of $417 partially offset by deferred rent of $109 other miscellaneous charges of $149
Slide 28: Strong Unit Economics Drives Increasing Profitability
Strong Unit Economics Drives Increasing Profitability 22 Embedded Gross Margin Expansion Potential as TOI Scales Margin Expansion Drivers TOI Pod(2) Gross Margin vs. % Value-Based Visits Value-Based Volume Mix: As our mix of value-based revenue increases our margins will improve; pods today with hig
Slide 29: Slide RM0 note from LW to TOI: Do you want to retain this 30%
Slide 22 RM0 note from LW to TOI: Do you want to retain this 30% target margin going forward? This type of disclosure is often not included once public. Rajovic, Mark, 2022-03-08T00:10:37.197
Slide 30: Forward Looking Statements
Forward Looking Statements 23 This presentation 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 Reform Act of 1995. Forward-looking statements generally are a