Teladoc Health, Inc. · NYSE:TDOC
Teladoc Health — Investor Day (March 2020)
140 slides from Teladoc Health's investor day presentation, Mar 5, 2020
Slide 1: Teladoc Health Investor Day
Tel _ INVESTOR eladec. BAY
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 poss
Slide 3: Welcome and Overview
ARAANA 900009 Teladoc. HEALTH Welcome and Overview Jason Gorevic Chief Executive Officer
Slide 4: Industry Leader with Differentiated Assets, Capabilities and Scale
Industry Leader with Differentiated Assets, Capabilities and Scale Global Leadership Position Across Channels The Only Comprehensive Virtual Care Solution Positioned to Broaden Role in Healthcare Delivery Track Record of Delivering Strong Revenue Growth Durable Business with Compelling Financial Mod
Slide 5: We are guided by shared values
We are passionate about taking care of people We are committed to unsurpassed quality We keep our promises We are guided We lead with integrity, accountability, and transparency by shared values We stand up for what’s right We strive to create value We respect each other and value succeeding togethe
Slide 6: Global office locations
Boston Toronto Phoenix Dallas Melbourne
Slide 7: Service offerings and channels
Text/Chat General Medical Virtual Primary Care Lab Testing Pediatrics High Acuity Telemedicine Nutrition Chronic Disease Mental Health Navigator Health Assistant Back-care ML-Powered Medicare Expert Medical Demand Planning Services Canada Global Care B2B DTC Partner United Medicaid Mental Health Car
Slide 8: Industry leading differentiated assets and capabilities
Industry leading differentiated assets and capabilities Member engagement physician Clinical quality networks Multi-specialty © © Global ; distribution EP Teladoc. Comprehensive channels HEALTH product offering Tech-enabled FX Scale driven ROI ops at scale Teladoc Data & analytics HEALTH Teladoc Hea
Slide 9: Sites of care and acuity
Acuity Sites of care Hospital Critical ER Ambulance Post-acute Chronic Physician office Retail clinic Pharmacy Everyday Worksite care Home
Slide 10: Competitor information note
Note: Competitor information represents Teladoc management estimates & other industry data.
Slide 11: Central role in how medical care is accessed, enabled and delivered
Enabling us to play a central role in how medical care is accessed, enabled and delivered * Consumer-centric, single access point to a full spectrum of integrated virtual care services Center of excellence * Uniquely able to: * Diagnose and treat * Use Teladoc Health or client provider networks @ *
Slide 12: Compelling Financial Model
Compelling Compelling Financial Model Financial Model Expand footprint & distribution Clinical service innovation Accelerate consumer adoption Invest in channels New clinical service lines Integrated, intuitive experiences Product cross-sell Clinical quality leadership Engagement science Assets & Ca
Slide 13: Total Revenue drivers
x More Members Total Revenue x More Products x More Utilization x More Payment Models
Slide 14: Annual Revenue 55% CAGR
Annual Revenue New Clinical Services 55% CAGR New Payment 2015-2019 Models New Care Settings $418M $233M $123M $77M 2015 2016 2017 2018 2019 2020 Future IPO Year
Slide 15: Teladoc Health Case Study
Teladoc Health Case Study HEATH Tela Health, Inc. All rights reserved
Slide 16: Teladoc Health at a glance
1,500 4,300 62%/38% 39.5 $0 US employees Total US members Female/male split Average age for virtual care Everyday Dermatology Mental Expert medical Nutrition care healthcare services NEW for 2020! Back Tobacco Sexual Caregiving Global care cessation health care
Slide 17: Strong engagement & utilization
Strong engagement & utilization 80% 82% 100% of members 2019 Gen Med 2019 Mental Health = YOY growth in Expert have registered utilization utilization Medical Services their Teladoc 42% YOY 4.4 visits per user 25% of cases for MSK account visit increase Teladoc HEALTH Teladoc Health, Inc Investor Da
Slide 18: Claims cost comparison
(1) Compared to benchmark claims costs for similar employers in 2019
Slide 19: Total Access and Total Visits
Total Access (millions)(1)(2) Total Visits (millions) (2) 5.7 63.5 56.0 4.1 32.2 2.6 23.2 17.5 1.5 12.2 1.0 8.1 0.6 0.3 2014 2015 2016 2017 2018 2019 2020E 2014 2015 2016 2017 2018 2019 2020E (1) US Paid membership + US VFO Access. (2) 2020E reflects midpoint of guidance.
Slide 20: Adjusted EBITDA margin
5.8% 250 bps 8.6% 9.9% 290 bps 410 bps (1) See adjusted EBITDA reconciliation immediately following this presentation. (2) Midpoint of guidance.
Slide 21: Playbook for growth
O00 @) @) @) Playbook for growth © © © David Sides Chief Operating Officer
Slide 22: Key themes
Key themes Commercially integrated, global leader with right-to-win Multiple levers to capture new opportunities & existing whitespace Best in class assets & operational capabilities for sustained growth Teladoc HEALTH Teladoc Health, Inc Investor Day 2020 22
Slide 23: Compelling Financial Model
Compelling Financial Model Expand footprint & distribution Clinical service innovation Accelerate consumer adoption Invest in channels New clinical service lines Integrated, intuitive experiences Product cross-sell Clinical quality leadership Engagement science Assets & Capabilities
Slide 24: Channel partners and clients
Global insurers Hospitals & Health plans & financial services Employers health systems Direct to consumer Channel partners B2B direct channel DTC channel 50+ US health ~70 global insurers & 40% of Fortune 500 ~4,000 care locations Leading mental plan clients financial services firms with InTouch hea
Slide 25: International addressable lives
Excludes an additional 6.2bn international lives ~1% 1. Includes all countries outside of the US receiving a “Very High Human Development” status in the 2019 UN Human Development Index, incorporating measures of Life Expectancy, Education and Standard of Living 59 countries compose this tier with ex
Slide 26: Win with a fully integrated commercial model
Integration and Win with a fully integrated Market leading customization vital to clients commercial model enterprise telehealth platform Establish beachhead w/ leaders Seasoned commercial team Government reimbursement (land and expand) focused on government Rise of consumerism and Provide a conveni
Slide 27: Large employers' views on virtual care
Strategies Capabilities Large Employers’ Views on the Impact of Virtual Care All Companies: Number of Programs Offered 1% 5% 22% 20+ programs 25% 15–19 programs 28% 10–14 programs 16% 5–9 programs 9% 1–4 programs 1. 2.
Slide 28: Macro Trends, Strategies, Capabilities
Macro Trends Strategies Capabilities
Slide 29: Disciplined go-to-market
Macro Trends Strategies Capabilities Disciplined go-to- market
Slide 30: Macro Trends, Strategies, Capabilities
Macro Trends Strategies Capabilities
Slide 31: International revenue
Macro Trends Strategies Capabilities • $108M (~20%) international revenue FY 2019
Slide 32: Subscription share of revenue
Macro Trends Strategies Capabilities • ~50% of FY’19 subscription
Slide 33: Multiple channels for General Medical
Macro Trends Strategies Capabilities General Mental Dermatology Medical Health Now distributed through multiple channels Now sold through acquired client bases
Slide 34: Our commercial flywheel in action
Our commercial flywheel in action Top 5 2019 Clients Increased Total Revenue Increased Paid Membership RY it pore gs 2 xe gf we Avg. # of products 3.6 48 |] 2018 2019 2018 2019 Increased Visits Increased Subscription Revenue Aa) ia 2018 2019 2018 2019 Teladoc HEALTH Teladoc Health, Inc Investor Day
Slide 35: Telehealth policy expansion
Strategies Capabilities • Bipartisan Budget Act passes including five specific telehealth expansions • Medicaid expansions • State telehealth payment parity laws 29 • Medicare Advantage expansion • CMS proposed rule to further expand telehealth coverage for MA network adequacy 7 1.
Slide 36: Macro Trends, Strategies, Capabilities
Macro Trends Strategies Capabilities
Slide 37: Consumer habits shifting
Macro Trends Emerging trends: Consumer habits shifting Soro Retail clinics, pharmacies, Direct-to-Consumer and alternative sites of care (Text/chat and Rx supply) Monthly web visits (000s)! ¥CVS Health Health. HUB. Sl 20 betterhelp CVS plans to have 1,500 HealthHUBs DIC Company2 [TT 1.330 operating
Slide 38: Visits, Revenue/CAC and LTV per member
Macro Trends Strategies Capabilities Visits Per Member:▲43% Revenue / CAC Ratio:▲28% LTV Per Member:▲37%
Slide 39: Macro Trends, Strategies, Capabilities
Macro Trends Strategies Capabilities ~20% ~3%
Slide 40: Compelling Financial Model
Compelling Financial Model Expand footprint & distribution Clinical service innovation Accelerate consumer adoption Invest in channels New clinical service lines Integrated, intuitive experiences Product cross-sell Clinical quality leadership Engagement science Assets & Capabilities
Slide 41: Macro Trends, Strategies, Capabilities
Macro Trends Strategies Capabilities
Slide 42: Macro Trends, Strategies, Capabilities
Macro Trends Strategies Capabilities
Slide 43: Macro Trends, Strategies, Capabilities
Macro Trends Strategies Capabilities
Slide 44: Summary
Summary Commercially integrated, global leader with right-to-win Multiple levers to capture new opportunities & existing whitespace Best in class assets & operational capabilities for sustained growth Teladoc HEALTH Teladoc Health, Inc Investor Day 2020 44
Slide 45: Member engagement
Teladoc. HEALTH Member engagement Stephany Verstraete Chief Marketing Officer © O00 _— OO 000
Slide 46: Summary
Summary Adoption is accelerating across soonsored and DTC populations, and we're uniquely capturing the demand Expansion of multi-service eligibility drives activation growth Our scale, tenure and expertise build an unmatched base of activated users, creating a flywheel dynamic that fuels utilizatio
Slide 47: Leading consumer engagement for more than a decade
AWARENESS CONFIDENCE TOM Leading consumer engagement for more than a decade generates unmatched momentum 2019 2018 New activation growth vs 2017 membership growth 2016 (2019) U.S. Sponsored Population Cumulative Activated base *JDPower 2019 U.S. Telehealth Satisfaction Study
Slide 48: Mental Health in the Workplace study
AWARENESS CONFIDENCE TOM *Teladoc Health “Mental Health in the Workplace: Global Impact” Study 2019
Slide 49: BetterHelp growth trajectory
Focused test & learn strategies strengthen overall BetterHelp growth trajectory €&@ betterhelp Media mix by spend 2017 Teladoc. HEALTH Teladoc Health, Inc Investor Day 2020 AWARENESS = = CONFIDENCE, TOM. w 49
Slide 50: Core user profile
AWARENESS CONFIDENCE TOM DEMOGRAPHIC ✓ Mom Child Boomer Core user: comes in via many of Gen Z our front doors COVERAGE ✓ DTC ✓ Commercial Engagement profile: standard Medicaid+Medicare FRONT DOOR ✓ Teladoc Clinical specialties profile: ✓ BetterHelp multi-specialty power user ✓ United ✓ Minute Clinic
Slide 51: Emerging user: child covered by Medicaid
AWARENESS CONFIDENCE TOM DEMOGRAPHIC ✓ Mom ✓ Child Boomer Emerging user: child covered by Gen Z Medicaid COVERAGE DTC Commercial ✓ Medicaid Engagement profile: highly complex FRONT DOOR ✓ Dedicated team in-house ✓ Teladoc BetterHelp ✓ State level regulatory United compliance & approvals Minute Clini
Slide 52: Emerging user: retiree
AWARENESS CONFIDENCE TOM DEMOGRAPHIC Mom Child ✓ Boomer Emerging user: retiree, well connected Gen Z with broader healthcare system COVERAGE DTC Commercial Engagement profile: reassurance ✓ Medicaid+Medicare seeker FRONT DOOR ✓ Teladoc ✓ Highly research-based, BetterHelp confidence in care quality &
Slide 53: Power user of the future
AWARENESS CONFIDENCE TOM DEMOGRAPHIC Mom Child Boomer Power user of the future: digital native ✓ Gen Z who thinks & acts virtual first COVERAGE ✓ DTC ✓ Commercial Medicaid+Medicare Engagement profile: FRONT DOOR ✓ “Phygital” ✓ Teladoc ✓ BetterHelp ✓ Hyper-custom United ✓ Minute Clinic Hospitals ✓ Co
Slide 54: Flywheel Dynamic
CONSUMER AWARENESS RESOLUTION/CONFIDENCE TOP OF MIND Population % Top of mind awareness triggers ACTIVATION Trust, WOM Flywheel Dynamic First visit GROWTH Quality Additional specialties experience ANALYTICS Repeat visits
Slide 55: Flywheel stages
Population % Top of mind awareness triggers Trust, WOM First visit GROWTH Quality Additional specialties experience ANALYTICS Repeat visits
Slide 56: Utilization following product additions
GROWTH Teladoc Usage Case Study3: Utilization following product additions 1 2.3X 1.6X 1.0X 2 2017 2018 2019 (3) Represents large client that rolled our behavioral and dermatology products over 4Q17 and 1Q18. 1, J.D. Power 2019 U.S. Telehealth Satisfaction Study 2, Teladoc post-visit user survey, 201
Slide 57: First Visits and Repeat Visits
GROWTH 800,000 1,400,000 700,000 1,200,000 600,000 1,000,000 500,000 800,000 400,000 600,000 300,000 400,000 200,000 200,000 100,000 0 0 2016 2017 2018 2019 2016 2017 2018 2019 First Visits Repeat Visits
Slide 58: New Member vs. Activated Member visit cost
GROWTH Teladoc New Member vs. Activated Member Visit Advertising Cost -85% Of 3-year Teladoc visits are generated in years 2 & 3 New Member Visit Existing Member Visit
Slide 59: Revenue from members using 3+ months
GROWTH % of revenue from members using ≥3 months 77% 68% 2016 2019
Slide 60: Summary
Summary Adoption is accelerating across soonsored and DTC populations, and we're uniquely capturing the demand Expansion of multi-service eligibility drives activation growth Our scale, tenure and expertise build an unmatched base of activated users, creating a flywheel dynamic that fuels utilizatio
Slide 61: Product strategy
Teladoc. HEALTH Product strategy Dan Trencher SVP of Product & Corporate Strategy
Slide 62: Key themes
Key themes Driving evolution in the virtual care industry, and continuing to lead through innovation Reimagining care delivery across spectrum of Primary and Specialty Care Strategy resonating in market Teladoc Health, Inc Investor Day 2020 62
Slide 63: Teladoc has driven the evolution of virtual care
Teladoc has driven the evolution of virtual care and will continue to lead into the future Virtual primary care oo Virtual first + Global [2] Virtual COE ©) Mental eg health Urgent care {e) QO | >) >) >) °o >) >) Teladoc HEALTH Teladoc Health, Inc Investor Day 2020 63
Slide 64: Paradigm shift for virtual care
Paradigm shift for virtual care Episodic health need Integrated patient care “Side benefit” Key strategic enabler Sick care Prevention and screenings Acute care Chronic condition support and referrals Individual physician Virtual care team Limited coordination Continuity with healthcare ecosystem Ho
Slide 65: We play a central role in how medical care is delivered
We play a ceniral role in how medical care is accessed, enabled, and delivered Teladoc HEALTH Primary care Teladoc Health, Inc Investor Day 2020 Center of excellence oy 65
Slide 66: Growing disease burden
50 45% • 40 30 28% 26% • 20 18% 12% 10 • 0 • KFF Health Tracking Poll (conducted July 17–22, 2018) Growing Disease Burden (Health Affairs, Nov 2013)
Slide 67: VPC: reimagining primary care
VPC: reimagining primary care Convenient, timely access Care coordination Biometrics, Q&A, HRA, EHR data, other inputs Better outcomes Long term cost impact A) C) ©) Optimized referrals Member Virtual PCP Visits, follow ups, and connection to ecosystem Virtual care Virtual check up care plan © 8 w H
Slide 68: 70% improvement within 3 months
70% improvement within 3 months
Slide 69: Nutrition and Pediatric Telehealth Solution
Nutrition Pediatric Telehealth Solution Market leading tele-nutrition service Purpose-built for pediatric patients, launched in January 2020 co-developed with Cincinnati Children’s Hospital Medical Center Pediatric Review of registration symptoms Adolescent Age-based visits without exam parent templ
Slide 70: Virtual Center of Excellence
Virtual Center of Excellence Addressing the growing need to deliver high-quality care for complex conditions with a multidisciplinary care team Without the traditional barriers of geographic distance and institutional affiliations, Teladoc Health brings together care providers to collaborate on comp
Slide 71: Client story: Fortune employer
Client story: Fortune 100 employer Partnership expansion across products Client needs Keys to success + Deliver spectrum of services through + Depth of Teladoc benefit offerings simplified experience + Robust engagement strategy to drive * Cost efficient and valuable benefits for utilization employe
Slide 72: New clinical services, payment models, care settings
New Clinical Services New Payment Models New Care Settings Virtual Primary Care Medicare/Medicaid FFS Post-Acute Expanded Specialty Care Value-based Care Primary Care / Specialty Practice Pediatric Mental Health Gain Sharing Retail Clinic Remote Patient Monitoring Risk Sharing Worksite Expanded Chro
Slide 73: Key themes
Key themes Driving evolution in the virtual care industry, and continuing to lead through innovation Reimagining care delivery across spectrum of Primary and Specialty Care Strategy resonating in market Teladoc Health, Inc Investor Day 2020 73
Slide 74: Quality & patient experience
Teladoc. O00 @) @) @) Quality & patient experience © © © Lew Levy, MD FACP Chief Medical Officer
Slide 75: Key Takeaways
Key Takeaways We have industry leading clinical quality assets and capabilities Our global presence and scale unlocks the power of data and analytics Teladoc'’s clinical leadership across the spectrum of acuity is a true competitive differentiator Teladoc Health, Inc Investor Day 2020 75
Slide 76: Abby
Abby A 15-year-old dancer with back pain Teladoc HEALTH
Slide 77: Abby's visit journey
History Abby's visit circle We collect all of the imaging and information } from the 10 % specialists % diagnosed Experts found her @ with scoliosis pain was being and told to rest caused by a ® for 4-6 months benign tumor on her spine ® eo ® e The experts Background Physician Abby's worry recommend
Slide 78: Industry leading clinical quality assets and capabilities
Industry leading clinical quality assets and capabilities a Industry leadership and partnerships Uniquely able to: Global clinical (= Teladoc. ¥_ Diagnose and treat in leadership multiple countries A HEALTH expertise Medical Group v_ Provide comprehensive / services . . v Improve quality of care Sca
Slide 79: Clinical quality leadership
We have industry leading clinical quality assets and capabilities Dr. Jason Tibbels Chief Quality Officer Member Texas Medical Board Dr. Bridget McCabe MD, MPH, FAAP Medical Director, Clinical Quality & Informatics Executive Medical Director Patient Safety Organization (PSO) Teladoc HEALTH Va Qualit
Slide 80: Global presence and scale unlocks data and analytics
Our global presence and scale Unlocks the __ scae-tven ctnica ©) . ata, analytics ani power of data and analytics * Leveraging the data of market leading 4M+ annual visits * Controlling pharmacy spend through targeted outreach * Harnessing voice data through Al: Learning key elements of optimized ou
Slide 81: COVID-19 case study
Scale-dri linical COVID-19 case study data, analytics and Al ln market within first week with education and access to care hatycuneed around the world coronavirus. @ Peiiaitel so erri0:05 20K @) qs <2 #m(3) o “EBM Cherry Alianz ‘Aliana BEBE coronavirus Providers Clients Members isi Myra v¥ CDC v Med
Slide 82: Clinical leadership across the spectrum of acuity
Teladoc’s clinical leadership across the sOeCtrUM coats of acuity is a true compe+itive differentiator Parinerships Clinical collaborations and partnerships First and only Patient Safety Organization (PSO) ~—‘ Industry leading learning lab through reputation of clinical excellence and scale €@ A AHR
Slide 83: Summary
Summary We have industry leading clinical quality assets and capabilities Our global presence and scale unlocks the power of data and analytics Teladoc'’s clinical leadership across the spectrum of acuity is a true competitive differentiator Teladoc Health, Inc Investor Day 2020 83
Slide 84: Chuck Divita
Teladoc HEALTH Chuck Divita Executive Vice President, Commercial Markets *« Leads commercial health insurance business « Former Senior Vice President and Chief Financial Officer of GMHC + Nearly 10+ current and former board appointments GUIDEWELL Teladoc Health, Inc Investor Day 2020 84
Slide 85: Introducing InTouch Health
Teladoc. HEALTH O Introducing © InTouch Health O Jason Gorevic, Chief Executive Officer Teladoc. INVESTOR eee Davina
Slide 86: Why facility-based telemedicine? Why InTouch?
Why facility-based telemedicine? Why InTouch? Market Culture Under-penetration Clinical Use Case Business Model & Progression Financial Profile Market Tailwinds Market Leadership
Slide 87: InTouch Health industry leadership
Industry leader in critical, provider-to-provider consultations Award winning, medical-grade telehealth devices #1 Virtual Care Platform by KLAS Research
Slide 88: Integrated virtual care solution
INTEGRATED VIRTUAL CARE SOLUTION Oncology Orthopedics Psychology Nutrition General Medicine Neonatology Intensive Care Endocrinology Psychiatry Neurology Emergency Medicine Cardiology Palliative Care Therapy Dermatology Pediatrics Hospital Ambulance ED Post-Acute Physician Office Retail Clinic Works
Slide 89: Health Systems, Health Plans, Employers
Health Systems Health Plans Employers
Slide 90: US addressable market
~1% 3,600+ care locations 14,500+ specialist physicians 1.0 million 1.5 million US physicians US endpoints $10bn+ 1 US addressable market for software and hardware solutions (1) TAM based on a count of all domestic Care Locations * monthly price, plus all domestic physicians * an average physician l
Slide 91: InTouch Health overview
O00 @) @) © InTouch Health overview © © © Joe DeVivo, InTouch Health Chief Executive Officer
Slide 92: Key themes
Key themes InTouch combines market leading software, hardware, and networking solutions to create the most comprehensive site-based virtual care solution on the market Combined organization is positioned to lead the virtualization of healthcare across care settings InTouch Health has compelling fina
Slide 93: $3.51 trillion of annual US spend
Non Integrated Delivery Network Other Unaffiliated DTC / Hospitals Payor and Health Telehealth Systems Integrated Care Delivery Network Specialty Clinic Unaffiliated Specialty Retail Clinics Pharmacy ASCs Urgent clinic Unaffiliated Post Acute Unaffiliated Ambulatory $3.51 trillion of Providers (i.e.
Slide 94: Connecting doctors to patients anywhere
Other Unaffiliated Hospitals and Health Systems Unaffiliated Specialty DTC / Payor • Connecting doctors anywhere Telehealth Clinics to patients anywhere, anytime • Specialists and generalists Specialty Clinic • Scheduled and unscheduled • Onsite or online Urgent clinic ASCs Post Acute Retail “Most h
Slide 95: Hospitals connected through the InTouch Network
Multiple hospitals with various EMRs and IT infrastructures are all connected through the InTouch Network
Slide 96: Building a medical-grade company
Building a medical-grade company Surgical Robotics Visionary Lindbergh Procedure Telehealth Visionary Yulun Wang The world’s first World’s first founded tele-surgery commercial Computer preformed– robotic Motion the performed by telemedicine World’s first doctor in New device surgical York on connec
Slide 97: Wuhan coronavirus patient treated by robot
A man diagnosed with Wuhan coronavirus near Seattle is being treated largely by a robot
Slide 98: KLAS Rated Virtual Care Platform 3 Years in a Row
Finding a Market Building Telestroke Expand Use Cases Building Enterprise 2003-2007 2008-2011 2012-2016 2016-Present #1 ~$80M1 ’19E Rev. 35 of 50 KLAS Rated Virtual 40+ Largest US Care Platform 3 70% Clinical Use Cases Health Systems Years in a Row Recurring Rev. (1) Management estimate, unaudited
Slide 99: Locations, Users, Sessions, Customers growth
Locations Users Sessions Customers YoY Growth Rate YoY Growth Rate YoY Growth Rate YoY Growth Rate 30% 30% 25% 16% (Metrics based on FMS and Reach data, excludes TruClinic)
Slide 100: Current state of play vs InTouch managed service
Current State of Play InTouch Managed Service Provider VPN VPN VPN VPN VPN Competitors’ Customer • Multiple Passwords • No Access Controls • Different IT Systems & Personnel 100
Slide 101: A single virtual backbone
A single virtual backbone to connect people, healthcare systems, HIT systems, devices and 3rd party applications to virtualize healthcare delivery 101
Slide 102: InTouch Platform and Operating System
InTouch Platform InTouch Operating System al a WEB, MOBILE & DESKTOP USER INTERFACES DEVICES NETWORK SERVICES. OS SERVICES INTOUCH IDE NT DEVICES NETWORK SOFTWARE SSE ANAC IE DIRECTORIES ALERTS & NOTIFICATION CONSUMER DEVICES NETWorK INFRASTRUCTURE ADMIN TOOLS DATA WAREHOUSE 3RD PARTY NETWORK MONITO
Slide 103: Intuitive Surgical and GE partnerships
• Multi-year licensing service agreement with • GE partnered with InTouch after a multi-year, Intuitive Surgical to build an Internet of Medical multi-vendor evaluation once determining it is the Things (IoMT) network only reliable, scalable, global solution • IoMT network will connect thousands of
Slide 104: Emergent & Scheduled Primary & Specialty Services
ON-LINE Emergent & Scheduled Primary & Specialty Services ON-LINE ON-LINE ON-LINE Remote Monitoring
Slide 105: Software, Devices, 44 active use cases
Software Layered software modules to enable a broad range of scheduled and unscheduled clinical workflows Devices Purpose-built software and devices to ensure reliable connections across the entire care continuum Mental Health Stroke Pediatric EM 44 active use cases Elements of the InTouch Platform
Slide 106: Traditional patient journey
106 Traditional patient journey
Slide 107: Patient Journey
Patient Journey Primary Specialist Diagnostic Urgent Emergency Hospital/ Rehab/ Pre-Op Follow-Up Specialty Example Care Exam Evaluation Test Care Care Surgery Treatment Infectious Flu, UTI, Disease Pneumonia Nephrology Renal Failure Joint Orthopedics Replacement General Gallstones Surgery Oncology B
Slide 108: Patient Journey
Patient Journey Primary Specialist Diagnostic Urgent Emergency Hospital/ Rehab/ Pre-Op Follow-Up Specialty Example Care Exam Evaluation Test Care Care Surgery Treatment Infectious Flu, UTI, Disease Pneumonia Nephrology Renal Failure Joint Orthopedics Replacement General Gallstones Surgery Oncology B
Slide 109: Patient Journey
Patient Journey Primary Specialist Diagnostic Urgent Emergency Hospital/ Rehab/ Pre-Op Follow-Up Specialty Example Care Exam Evaluation Test Care Care Surgery Treatment Infectious Flu, UTI, Disease Pneumonia Nephrology Renal Failure Joint Orthopedics Replacement General Gallstones Surgery Oncology B
Slide 110: Modular software for any use case and workflow
Modular software designed to build a solution that works for any use case and workflow and provide a seamless experience across web, desktop, and mobile. 110
Slide 111: Products & Services, 70% recurring revenue
Products & Services Description % of 2019 TCV(1) • High and low acuity devices Devices powered by InTouch Health software 30% • Leased or purchased (Includes leases and purchases) • Virtual care software “operating system” & network connectivity 27% • Configurable, use-case specific software 30% Sof
Slide 112: Recurring care location and user revenue
Recurring Care Location Recurring User Revenue License Revenue Network Hardware Software Licenses Access Rental and (per Application) License Support Number of Care Number of Users Locations 3-year contracts and recurring revenue model drives significant revenue visibility
Slide 113: #1 Virtual Care Platform, #1 Direct to Consumer
#1 Virtual Care Platform For the third year in a row, InTouch Health is recognized as Best in KLAS for Virtual Care Platforms in the “2020 Best in KLAS: Software & Service” report #1 Direct to Consumer Teladoc Health won the J.D. Power award for Highest Telehealth Satisfaction with Direct to Consume
Slide 114: Addressing the entire continuum of care
Primary Care Community Care Acute Care Post-Acute Care Remote Patient Monitoring Emergency In-Patient Consults Mgmt. High Critical EMS Care Acuity Transport Surgical Mentoring Urgent [Acuity] Care Post-Acute Family Follow-Up Out-Patient Coordinate Connect SNF Disease Care Mgmt. Re-Admit Retail- Mgmt
Slide 115: Key themes
Key themes InTouch combines market leading software, hardware, and networking solutions to create the most comprehensive site-based virtual care solution on the market Combined organization is positioned to lead the virtualization of healthcare across care settings InTouch Health has compelling fina
Slide 116: How InTouch & Teladoc Health deliver value for health systems
Teladoc. HEALTH How InTouch & Teladoc Health deliver value for health systems Jefferson Health © O00 _— OO 000
Slide 117: Judd Hollander, MD
Teladoc HEALTH Judd Hollander, MD Senior Vice President of Healthcare Delivery Innovation * Leads JeffConnect Telemedicine Program and Jefferson Urgent Care * More than 500 Peer-reviewed articles, books, book chapters and editorials published * Former President of the Society for Academic Emergency
Slide 118: Financial overview
Teladoc. HEALTH Financial overview Mala Murthy, Chief Financial Officer © O00 _— OO 000
Slide 119: Key themes
Key themes We have a demonstrated history of meeting or exceeding financial targets Compelling financial model, with a foundation for sustained growth & margin expansion Positive free cash flow generation for continued investment in growth & operational excellence Teladoc Health, Inc Investor Day 20
Slide 120: Compelling financial model
Compelling financial model Organic investments and strategic M&A + Investing in profitable products and channels * Strategic acquisitions well integrated with increasing scale & relevance Credibility and access to capital markets Teladoc HEALTH Revenue growth Broad-based, high visibility Teladoc Hea
Slide 121: Revenue, membership and adjusted EBITDA growth
36.7 45% $553 >60% CAGR CAGR $418 22.8 19.6 4.1 >60% CAGR $233 12.1 2.6 1.5 $123 1.0 2016 2017 2018 2019 2016 2017 2018 2019 $32 $30 $13 ($5) ($13) ($40) ($34) ($52) 2016 2017 2018 2019 2016 2017 2018 2019 (1) Pro forma to exclude Aetna Fully Insured, Amerigroup, and other VFO. (2) See adjusted EBIT
Slide 122: Adjusted EBITDA margin
5.8% 250 bps 8.6% 9.9% 290 bps 410 bps (1) See adjusted EBITDA reconciliation immediately following this presentation. (2) At mid-point of guidance.
Slide 123: Revenue growth and 2020 guidance
~58% ’16-’19 CAGR $695 - $710 $553 $90 $418 $67 $233 $36 $463 $123 $351 $23 $198 $100 2016 2017 2018 2019 2020E % Subscription 82% 85% 84% 84%
Slide 124: More global, more diversified, deeper penetration
We are more global • 20% of our revenue mix is now outside the US We are more diversified • Our channel growth in 2019 ranged from 19% to 50%+ • >30% of new business in 2019 was from existing We have deeper penetration clients with our clients • 50% of new bookings are multi product We have strong r
Slide 125: Membership and Average PMPM
Membership (1)(2) & Average PMPM Case Study: Employers Adding Product in 2019(4) $1.16 $1.19 $0.95 $0.91 Organic onboarding $0.58 of large health plan population Q1 Q4 Q4 Q4 PEPM Prior to Product Add PEPM After Product Add 2017 2017 2018 2019 (1) US Paid Membership only. (2) US Paid Membership net a
Slide 126: US paid visits and utilization
US Paid Visits (millions) Utilization(1)(2) $56 $54 11.9% $45 >40% 10.8% 1.7 CAGR $39 8.1% 9.4% 9.3% 1.2 0.8 6.9% 6.3% 0.6 2016 2017 2018 2019 Q1 Q4 Q4 Q4 2017 2017 2018 2019 (1) US Paid Membership only. (2) Pro forma to exclude Aetna Fully Insured, Amerigroup, and VFO.
Slide 127: Gross Profit and Gross Margin
Gross Profit ($ millions) Gross Margin % $369 $289 74.0% 73.6% 69.2% 66.7% 65.9% 67.5% 62.8% $172 $91 2016 2017 2018 2019 2016 2017 2018 2019
Slide 128: Gross margin drivers: access mix, efficiency, pricing
• Shift towards digital access • Digital now 78% of all visits, up 28 Access Mix ppts since Q1 2016. Call center now 22% of mix • Continued call center efficiencies, • Current call center staffing per call Operational including use of AI down 29% versus year-end 2018 Efficiency • Alternative physici
Slide 129: Operating expense leverage
112.6% ’16-’19 CAGR 106.3% 92.1% Revenue: 65% 78.9% 76.5% 73.0% Opex (1): 43% 66.0% 60.8% Adj. Opex(2): 37% Sales: 35% A&M: 47% Technology: 44% G&A(3): 43% 2016 2017 2018 2019 Note: Sales, A&M, Technology, G&A CAGR represents expense inclusive of stock-based compensation. (1) Opex excludes depreciat
Slide 130: Sales efficiency and operating leverage
26% CAGR 22 ppts improvement 7% CAGR 63.0% 2.0x 41.0% 1.2x x x 2016 2019 2016 2019 2016 2019 (1) Revenue growth excluding DTC per $ of sales expense
Slide 131: Adjusted EBITDA margin and 2020 revenue guidance
9.3% (1) 5.8% 3.2% (1.4%)(1) (5.4%) (8.4%) (7.5%) $695 - $710 (32.2%) (30.2%) $553 $418 (51.0%) $233 $123 2016 2017 2018 2019 2020E
Slide 132: Liquidity highlights
Liquidity highlights • Solid progress in cash flow generation with Cash flow from operations for full year 2019 of $30M; free cash flow of $19M(1) • Anticipate utilizing ~$150M of cash for the pending In Touch Health acquisition • Convertible notes mature over the longer term with well timed interva
Slide 133: Compelling Financial Model
Compelling Compelling Financial Model Financial Model Expand footprint & distribution Clinical service innovation Accelerate consumer adoption Invest in channels New clinical service lines Integrated, intuitive experiences Product cross-sell Clinical quality leadership Engagement science Assets & Ca
Slide 134: Compelling Financial Model
Compelling Compelling Financial Model Financial Model Expand footprint & distribution Clinical service innovation Accelerate consumer adoption Government health plans Virtual primary care (VPC) Expanded engagement channels Expanded international Nutrition, Pediatrics Member experience markets enhanc
Slide 135: Visit growth by segment
Visits: ~16% CAGR International Visits(1): ~28% CAGR 1.3x 1.3x 1.0x 1.0x Q4 2017 Q4 2019 Q4 2018 Q4 2019 Visits: ~33% CAGR 2.4x BH Visits(4): >100% CAGR 1.0x 1.0x Q4 2016 Q4 2019 Q4 2015 Q4 2019 (1) International engagements includes international engagements and expert medical opinions.
Slide 136: Adjusted EBITDA reference
(1) See adjusted EBITDA reconciliation immediately following this presentation.
Slide 137: Summary
Summary Broad-based, highly visible revenue growth Increasingly efficient operating expense fuels top-line growth and margin expansion Internally generated free cash flow to fund investments in future growth & operational excellence Access to capital markets allows us to continue our successful trac
Slide 138: Adjusted EBITDA reconciliation
($98.9) 29.0 (10.6) 39.0 ($41.5) 43.8 66.7 - - 10.4 6.6 (5.5) -
Slide 139: Thank you
Thank you Teladoc. HEALTH Teladoc Health, Inc Investor Day 2020 139
Slide 140: Teladoc Health Investor Day
Tel _ INVESTOR eladec. BAY