Health Net — Merger or Acquisition (July 2015)
13 slides from Health Net's merger presentation, Jul 2, 2015
Slide 1: Centene's Combination with Health Net
CENTENE® Corporation Centene’s Combination with Health Net July 2, 2015
Slide 2: Safe Harbor Statement: Cautionary Statement Regarding Forward-Looking Statements
CENTENE® Corporation Safe Harbor Statement Cautionary Statement Regarding Forward-Looking Statements This document contains certain forward-looking statements with respect to the financial condition, results of operations and business of Centene, Health Net and the combined businesses of Centene and
Slide 3: Safe Harbor Statement: Additional Information and Where to Find It
CENTENE® Corporation Safe Harbor Statement Additional Information and Where to Find It The proposed merger transaction involving Centene and Health Net will be submitted to the respective stockholders of Centene and Health Net for their consideration. In connection with the proposed merger, Centene
Slide 4: Participants
CENTENE CORPORATION Participants Michael F. Neidorff Chairman, President and Chief Executive Officer, Centene Jay M. Gellert President and Chief Executive Officer, Health Net Jesse Hunter Executive Vice President and Chief Business Development Officer, Centene Jeff Schwaneke Senior Vice President, C
Slide 5: Enhanced Capabilities for Delivering High Quality, Affordable Healthcare
CENTENE CORPORATION Enhanced Capabilities for Delivering High Quality, Affordable Healthcare CENTENE CORPORATION + Health Net Health Net adds over 6M members & key capabilities in growth products 1.7M Medicaid members; strengthens leading position in Medicaid Enhances national leadership position in
Slide 6: Key Transaction Terms
CENTENE CORPORATION Key Transaction Terms Purchase Price Ownership Financing Projected Financial Impact Path to Closing $28.25 in cash plus 0.622 shares of Centene Implies $78.57 per Health Net share based on July 1st close Total transaction value of $6.8B, including assumption of Health Net debt Ce
Slide 7: Leader in High Quality Affordable Plans
CENTENE CORPORATION Leader in High Quality Affordable Plans Pro Forma Membership as of 3/31/15 Medicaid: 5.7 million Specialty / Government: 3.1 million Commercial / Exchanges: 1.3 million Medicare: 275,000 Duals: 40,000 Total 10.4 million Centene Health Net Common States Note: Map excludes Health N
Slide 8: Diversifying into Adjacent Growth Markets
Diversifying into Adjacent Growth Markets CENTENE Corporation CENTENE Corporation 4% 11% 0.7% 2% 83% 2015E Revenue: $21 billion Hn Health Net 4% 4% 19% 39% 34% 2015E Revenue: $16 billion CENTENE Corporation + Hn Health Net 4% 8% 8% 16% 64% 2015E Pro Forma Revenue: $37 billion Medicaid Commercial / E
Slide 9: Attractive Growth Opportunities
Attractive Growth Opportunities CENTENE Corporation Leader in Medicaid National Presence 5.7M Members Increased Medicare Advantage Presence 4 Star Plans 275k Members Enhanced Opportunity for Targeted Exchange Populations Leader in Quality Affordable Plans Value Based Networks Additional Government H
Slide 10: Medicaid Leadership
Medicaid Leadership CENTENE Corporation Combination Results in the Largest Medicaid Player Medicaid Lives Served (M) 6 5.7 5.6 5.0 5 4.0 4 3 2.6 2.4 2 1.7 1 - CENTENE Corporation / Hn Health Net Peer Peer CENTENE Corporation Peer Peer Hn Health Net 10
Slide 11: Cost Synergy Opportunities
Cost Synergy Opportunities CENTENE Corporation $150M in Year 2 Core G&A Efficiencies Specialty Company Integration Medical Costs Technology Platform 11
Slide 12: Leveraging Core Capabilities Across Government Programs
Leveraging Core Capabilities Across Government Programs CENTENE Corporation Medicare Advantage Medicaid Targeted Exchange High Quality Value Based Networks Integrated Specialty Solutions Common Technology Platform 12
Slide 13: Enhanced Capabilities for Delivering High Quality, Affordable Healthcare
Enhanced Capabilities for Delivering High Quality, Affordable Healthcare CENTENE Corporation Scale in Government Programs Leading position in Government programs: Medicaid, Medicare, VA and TRICARE PF 2015E Premium & Service Revenue of $37B and Adj. EBITDA in excess of $1.5B Opportunity to leverage