Benefytt Technologies — Health Insurance Innovations — Investor Presentation (May 2019)
28 slides from Benefytt Technologies's investor presentation, May 22, 2019
Slide 1: Protecting Lives Through Technology - Investor Presentation
@ @ | HEALTH® ra INSURANCE INNOVATIONS Protecting Lives Through Technology Investor Presentation May 22, 2019
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: Investment Highlights
Investment Highlights Fulcrum at the center of the individual insurance market, connecting carriers, distributors, and consumers HEALTH™ SURANCE INNOVATIONS
Slide 4: HIIQ Solution
HIIQ Solution Providing Access to Affordable Individual Health Insurance Life / Health Benefit Supplemental Plans / Discount Benefit Plans Percentage of revenue’ 35% 38% 25% * Guaranteed Acceptance or + Medically Underwritten + Value-Added Insurance / Discount Medically Underwritten * Most Similar t
Slide 5: Significant Market Opportunity
Significant Market Opportunity Individual Health Insurance Market The Uninsured Population $87 Billion of Premium! 28.2 Million < 65 Individuals © 75% ACA Major Medical © 25% Other Options aS @ 2% 65 and Older $21.8 Billion Opportunity Non-ACA Market @ 13% Unders (85% Ages 18-64 More Customers in Ne
Slide 6: Best-In-Class Partners
Best-In-Class Partners ap KL Goreatre agile Insurance im ade WiatRets LIFESHIELD iE) iii & GetInsured Careington hie Teladoc. Standard Ft Life ZVERESN. HEALTH INNOVATIONS.
Slide 7: HIIQ Platform Enables Consumer Choice and Plan Design
HIIQ Platform Enables Consumer Choice and Plan Design Integrates Carriers, Distributors and Consumers on Proprietary Technology Platform Consumer: Lead Generator: Searches for insurance Captures interest to selll leads to online agents and insurers Vv 1 1 Independent, Third-Party Carrier: Insurance
Slide 8: Proprietary Technology Platform
Proprietary Technology Platform Critical Role Connecting Carriers, Distributors and Consumers Plug-and-play technology backbone allows for rapid, scalable growth Key Attributes Extensive and Growing Distribution Network ¥ Quote-Buy-Print ¥ Automated Underwriting Y Multiple Value-Added Products ¥ Tur
Slide 9: Long-standing Commitment to Regulatory Compliance
Long-standing Commitment to Regulatory Compliance Multi-pronged Regulatory Compliance Approach Augments In-house Capabilities to Drive: * Fewer Complaints « Greater Customer Satisfaction * Higher Lifetime Value and Revenue Health Insurance Innovations In-house Compliance Team t ¢ ¢ t Leveraging Full
Slide 10: Dedicated to Exceptional Customer Service
Dedicated to Exceptional Customer Service Dedicated Infrastructure to Support Best-in-Class Member Experience Dedicated HIIQ Customer Service Reps... ... Delivering Best-in-Class Results Average Speed to Answer @ Customer Service 4.6 Seconds © Support and Retention 1.3 Million Calls Handled +150 Rep
Slide 11: Customer Experience Focused on Simplicity
Customer Experience Focused on Simplicity ° MyBenefitsKeeper is a fully integrated consumer facing application is to manage member policy billing, and provide access to plan MyBenefitsKeeper documents and services via member portal Key Attributes Interface Built for Today’s Insurance Consumer Purcha
Slide 12: Our Philosophy & Corporate Responsibility
Our Philosophy & Corporate Responsibility Our Devotion to Community AtHIID, we believe that good health giving back, and peace of mind are the cornerstones of prosperity. We are fortunate and grateful for our success. Qur foundation is about giving back to the most vulnerable in our local communitie
Slide 13: Recent Positive Events
Recent Positive Events STM 12 Month Rule Change + Increased duration of STM policies fram 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 went to Zero + Removes impediment
Slide 14: Long-Term Growth Strategy
Long-Term Growth Strategy HEALTH” : INSURANCE ‘pint of pidanee range 14 INNOVATIONS
Slide 15: Growth Strategy Progress
Growth Strategy Progress Expected Duration Units (EDUs)* Revenue Diversification Growth in E-Commerce EDUs Expansion 20% YOY Increase 1Q19 Revenue 42% YOY Increase 90,200 Suppliemental 43,700 aK 23,400 1018 1019 1018 1019 w Third-Part Distribution = Owned Distribution = Owned Distribution @ Third-Pa
Slide 16: New Initiatives
New Initiatives Over 65 Market - Medicare and Medicare Sup Re-entering the 65+ market ¢ — Re-entered 65+ Market in Ql 2019 * — Building out Infrastructure * e-commerce Focused + Easily adoptable to our Technology Platform HIIQ appealing to a broader demographic Medicare Eligibles are expected to inc
Slide 17: New Initiatives
New Initiatives Growing Life Insurance Market Life Insurance Market * — Increasing focus on our Life Insurance Market. Adding more robust products to our portfolio. + Utilize existing Distribution Channels * e-commerce focus + — MBK allows for greater interacting with consumers, enhancing persistenc
Slide 18: New Initiatives
New Initiatives Our Products Meet Spanish Speakers Needs More than 25M people in the US have limited English proficiency 40% - 50% of this group is uninsured’ We meet their needs with... Spanish speakers’ barriers to + Affordable coverage for accidents and accessing health insurance: illness + Lack
Slide 19: Track Record of Success With Solid Growth Trajectory
Track Record of Success With Solid Growth Trajectory Revenue Adj. EBITDA $500 $80 $450 - SE $400 \ Se $60 WN $350 4 oe AY $300 Q $60 < $250 $40 ~~ \ $150 « $100 ot CC WAS $50 $10 ~~ WN : « 2015 2016 2017 2018 2015 2016 2017 2018 2019E AGLEBITDA 6 39 48.2% 18.3% 16.9% 17.1% Margin INSURANCE 2018 resu
Slide 20: 2019 Guidance
2019 Guidance Revenue $351.1 million $430-$440 Million Adjusted EBITDA $59.4 million $72-$77 million 25% Adjusted Net Income per Share $2.60 $3.50-$3.75 39% ms | HEALTH” AI Insurance INNOVATIONS. 20
Slide 21: Investment Highlights
Investment Highlights Fulcrum at the center of the individual insurance market, connecting carriers, distributors, and consumers Proprietary cloud-based technology platform enables distribution of affordable health and life insurance products Underpenetrated, growing market opportunity in $22B Non-A
Slide 22: Appendix
ms | HEALTH” INSURANCE INNOVATIONS Appendix 22
Slide 23: Revenue Model
Revenue Model Consumers e®e $ / Premium Equivalents HIIQ Technology Platform Insurance Carriers / @ | HEALTH? Discount Benefit Provider H INSURANCE INNOVATIONS Recognized at point in time based on expected duration for sale/enrollment m8 | HEALTH INSURANCE INNOVATIONS Recognized as collected over ti
Slide 24: Expected Duration Units
Expected Duration Units + New metric introduced 4018 + Lifetime value (LTV) of customers is continued focus + Measures expected months a consumer will remain on policy + Constrained - potential for upside © 12019 expected duration units up 1996 year-over-year + Total e-commerce expected duration uni
Slide 25: ASC 606: In Practice
ASC 606: In Practice + — Adopted ASC 606 in 04, retroactive for 2018 + — ASC BOE brings forward the expected lifetime value of the Sales/Enrollment Performance Obligation (95% of revenue) * — Nochange in Cash Flow + Revenue is now more weighted to the fourth quarter Revenue by Performance Obligation
Slide 26: 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 March 31, 2019 2018 Net income $ 2182 $ 6,652 Interest expense (income) 345 26) Depreciation and amortization 1,132 1,165 Provision for
Slide 27: 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 March 31, 2019 2018 Net income s 2,182 $ 6,652 Interest expense (income) 345 (26) Amortization 335 464 Provisi
Slide 28: Reconciliation of Premium Equivalents to Revenues
Reconciliation of Premium Equivalents to Revenues Reconciliation of Premium Equivalents to Revenues (Unaudited) (S in thousands except per share data) Three Months Ended March 31, 2019 2018 Premium equivalents $147,674 $115,582 Less risk premium 58,428 37.971 Less amounts eamed by third party obligo
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