Well Health Technologies Corp. · TSX:WELL
Well Health Technologies — Investor Day (June 2024)
48 slides from Well Health Technologies's investor day presentation, Jun 18, 2024
Slide 1: 2024 Investor Day
2024 Investor Day June 18, 2024 Hilton Toronto
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward- looking statement
Slide 3: Investor Day Agenda
Investor Day Agenda WELL Health Technologies – 2024 Investor Day Overview and Key Catalysts Hamed Shahbazi Canadian Clinics Dr. Michael Frankel Primary Care Jeremy Mickolwin WELL Diagnostics Dina Sergi Marketing Chris Ericksen 10:45 am Break ESG and Public Sector Shane Sabatino Platform Solutions Am
Slide 4: WELL Health Technologies Overview and Key Future Catalysts
WELL Health Technologies Overview and Key Future Catalysts Hamed Shahbazi, Founder and CEO 4
Slide 5: WELL Health is a Tech Enabled Healthcare Company
WELL HEALTH IS A TECH ENABLED HEALTHCARE COMPANY Overarching VALUE Statement: WELL TECH ENABLES HEALTHCARE PROVIDERS A Provider Focused Digital Health Company that delivers Technology Services and Care at Scale Most comprehensive end-to-end healthcare system across Canada (Providers, Facilities, Tec
Slide 6: Supporting Doctors in our Connected Ecosystem
Supporting Doctors in our Connected Ecosystem WELL’s combination of Omni-Channel Patient Services and Virtual Services is uniquely synergistic powering the future of healthcare Omni-Channel SaaS & Technology Services Patient Services Clinic Feedback Patient Referrals Improved Patient Journey Digital
Slide 7: WELL at a Glance
WELL at a Glance WELL exists to enable healthcare practitioners with best-in-class technology & services Revenue 3,900+ Adj. EBITDA C$960-980M Healthcare practitioners (2) C$125-130M PROFITABILITY providing care within WELL GROWTH 2024 Guidance (1) 2024 Guidance (1) SCALE 36,000+ Practitioners purch
Slide 8: Our Go-To-Market Strategy: Flexible Approach to Supporting Practitioners
Our Go-To-Market Strategy >> Flexible Approach to Supporting Practitioners WELL provides practitioners the choice to either join the WELL network or purchase technology solutions from WELL Practitioners can join over 3,900+ of their Over 36,000+ Canadian physicians benefit from colleagues practicing
Slide 9: WELL Can Now Deliver a Comprehensive Patient Journey
WELL Can Now Deliver a Comprehensive Patient Journey WELL improves the patient experience and delivers better health outcomes Patient Telehealth On-line booking Primary care EMR consultation Waiting room check-in clinic e-prescription e-consultation Diagnostics center e-referral for results Prescrip
Slide 10: Presentation Themes
Presentation Themes 1. Artificial Intelligence 2. Unlocking Sum of Parts Value -> Circle and Wisp Strategic Review 3. Capital allocation and Clinic Absorption Model 4. Improving per share metrics and reducing dilution 10
Slide 11: Leading Healthcare Transformation with AI-Powered Solutions
Leading Healthcare Transformation with AI-Powered Solutions WELL has launched 3 AI-powered solutions to dramatically improve clinical workflows WELL AI Decision WELL AI WELL AI Voice Support Inbox Admin • Ambient Scribe • Rare, Complex, and Chronic • Automates Clinic Inbox and • Medical Dictation Di
Slide 12: Seeking to Unlock Value from Sum-of-Parts Value
Seeking to Unlock Value from Sum-of-Parts Value 3,000.0 • WELL is presently trading at a >$1B discount to its sum of 2,500.0 parts 2,000.0 • Based on "middle of the road" 1,500.0 valuation multiples for pure- play equivalents and, 1,000.0 • Current Mark to Market 500.0 on HEALWELL AI - Current Impli
Slide 13: Wisp and Circle Medical Scenario Analysis
Wisp and Circle Medical Scenario Analysis A divestiture of Circle Medical and/or Wisp would provide WELL with a significant cash windfall, that can be used to fund future growth, repurchase shares, pay down credit facilities, and likely a material combination of all three. Wisp 1 Circle Medical2 ~53
Slide 14: Exceptional Capital Allocation
Exceptional Capital Allocation WELL's effective capital allocation and M&A strategy fuel business growth and improve valuation metrics Total Transactions by Business Unit Total Consideration/Adj. EBITDA Multiples at Acquisition vs Current Ventures, 12 Canadian Patient Services, 24 WELL Health USA, 1
Slide 15: WELL Canadian Clinics Capital Allocation
WELL Canadian Clinics Capital Allocation WELL's Clinic Transformation Team drives significant profitability improvements, lowering effective multiples in Canadian Clinics Transactions Analysis for Canadian Patient Services • WELL has established a track 12.0x 10.8x record of growing revenue 9.7x 10.
Slide 16: Generational Opportunity to Consolidate
Generational Opportunity to Consolidate WELL leverages its scale, strategic partnerships, and industry expertise to capitalize on market opportunities in a fragmented healthcare industry. Why WELL is Positioned for Success WELL’s Market Share in Canada • 20,000 healthcare clinics across Canada • WEL
Slide 17: Reimbursement Improvements Provide Significant New Tailwinds for Canadian Healthcare
Reimbursement Improvements Provide Significant New Tailwinds for Canadian Healthcare New provincial reimbursement plans offer WELL a generational opportunity to benefit from increased compensation. WELL can leverage its scale and technology to help provinces alleviate the family medicine doctor shor
Slide 18: Absorption vs Acquisition
Absorption vs Acquisition Absorption Acquisition Gross Margin 25-30% 25-30% Staffing Levels Highly Overstaffed Moderately Overstaffed Rent Not Optimized or Subsidized Somewhat optimized, sometimes subsidized Change Management High Moderate Required Multiple Paid by WELL Nominal fee of 0.02x Revenue
Slide 19: Clinic Additions: Capitalizing on the Primary Care Opportunity
Clinic Additions: Capitalizing on the Primary Care Opportunity WELL has the opportunity to address the growing need for efficient clinic management by integrating and optimizing subscale clinics in to WELL’s clinic network, in an extremely capital efficient manner. $45M revenue • Absorbed clinics ap
Slide 20: Free Cashflow Available to Shareholders
Free Cashflow Available to Shareholders WELL has provided guidance of ~C$55 million in FCFA2S1 in 2024. FCFA2S (C$ in millions) 60.0 55.0 50.0 42.4 40.0 30.0 20.0 10.0 0.0 2023A 2024E We define FCFA2S as Adjusted EBITDA available to Shareholder less cash tax, cash interest and cash capex. 20
Slide 21: Financial Performance Per Share Metrics
Financial Performance Per Share Metrics WELL's historical growth demonstrates strength, with 2024 expected to mark a key inflection point in per share profitability growth, as earnouts from prior transactions end and management executes on its plans to increase profitability and reduce further dilut
Slide 22: WELL's Future Approach to Share Issuance
WELL’s Future Approach to Share Issuance WELL is shifting to cash flow-funded acquisitions to minimize dilution, maximize capital efficiency, and better align with long-term shareholder interests WELL Annual Share Dilution Key Drivers of Future Share Dilution • 2024 Dilution: 1.7% of the ~3% dilutio
Slide 23: WELL Earnout Payments and Deferred Acquisition Costs
WELL Earnout Payments and Deferred Acquisition Costs Declining Time Based Earnout (TBE) Payments and Delayed Acquisition Costs (DAC) and their impact on FCFA2S WELL Delayed Acquisition Costs Effects of Reduced DAC/TBE and Time Based Earnouts1 (C$ million) 90.0 • Declining DAC/TBE Spend: Total DAC (D
Slide 24: Questions?
Questions? TECHNOLOGIES CORP
Slide 25: WELL Canadian Clinics
WELL Canadian Clinics Dr. Michael Frankel, Chief Medical Officer 25
Slide 26: Case Study: First Clinics Acquired in 2018
Case Study: First Clinics Acquired in 2018 Proven Improvement in Profitability Revenue for the 18 EBITDA Margin for the 18 Clinics Purchased in 2018 Clinics Purchased in 2018 (C$ million) 50,000 12.0% 45,000 Covid 10.0% Covid 40,000 35,000 30,000 8.0% 25,000 6.0% 20,000 15,000 4.0% 10,000 5,000 2.0%
Slide 27: Case Study: WELL AI
Case Study: WELL AI WELL AI Voice WELL AI Decision Support 27
Slide 28: WELL Primary Care
WELL Primary Care Jeremy Mickolwin, Vice President Clinic Operations 28
Slide 29: WELL Medical Centers National Scale
WELL Medical Centers National Scale HIGHLIGHTS 185+ omni-channel, clinics Primary Care Specialty Care Surgical Care Allied Health Private and Executive Care BRITISH COLUMBIA ALBERTA 1700+ practitioners 31 Primary Care Centre 5 Primary Care Centre 1 Private Care Centre 1 Private Care Centre QUEBEC 2
Slide 30: WELL Primary Care Pyramid
WELL Primary Care Pyramid WELL has created a comprehensive nationwide healthcare network in Canada, providing a breadth of services that cater to diverse patients, strategically anchored by Primary Care. Longevity+ Advanced preventative medicine using the latest technology to enhance quality of life
Slide 31: Physician and Clinic Toolkit
Physician and Clinic Toolkit Patient Portal for secure Harness clinical data and AI Automate & streamline clinic Automate charting and Application solutions messaging, Patient Profiles, to screen and find at-risk inbox management to patient documentation designed to improve clinic Apple Health Recor
Slide 32: Patient Engagement Journey
Patient Engagement Journey How WELL improves the patient journey through Clinic Transformation Referral Booking Coordination Digital Patient Intake E-Referral Online Booking Automate Referral Process Auto Agent IVR Centralized Referral Payment Integration Attachment Manager Task Automation & Communi
Slide 33: Future EBITDA Margin - Clinics
Future EBITDA Margin - Clinics 16.0% 2018 Clinic 14.0% Cohort 12.0% 10.0% Adj. EBITDA Margin 8.0% WELL 2023 Average Clinic Margin 6.0% 4.0% 2.0% 0.0% 0% 20% 40% 60% 80% 100% Future Complete Complete Complete Complete Complete Complete Process 1 Clinic Transformation Process 33
Slide 34: Unit Economics of a WELL Primary Care Clinic
Unit Economics of a WELL Primary Care Clinic WELL economics derived from improved operations per clinic and from increased referrals to other primary / specialty practitioners and diagnostic services within the ecosystem Average Canadian Clinic WELL Clinic # Providers: 4 7 +75% Physician Recruitment
Slide 35: WELL Health Clinic Network Financial Profile
WELL Health Clinic Network Financial Profile Revenue EBITDA (C$ millions) (C$ millions) $200.0 $14.0 180.0 12.6 $180.0 $12.0 $160.0 $140.0 $10.0 119.1 $120.0 $8.0 7.1 $100.0 77.8 $6.0 5.5 $80.0 4.6 55.6 $60.0 $4.0 37.0 2.8 $40.0 30.0 $2.0 1.3 $20.0 $0.0 $0.0 2019 2020 2021 2022 2023 Current 2019 202
Slide 36: WELL Diagnostic Centres
WELL Diagnostic Centres Dina Sergi, CEO WELL Diagnostic Centres 36
Slide 37: WELL Diagnostic Centres at a Glance
WELL Diagnostic Centres at a Glance 37
Slide 38: WELL Diagnostic Centre Services
WELL Diagnostic Centre Services A review of the services offered throughout the province 38
Slide 39: Revenue by Modality
Revenue by Modality 4% BMD 9% Cardiac Diagnostic Xray 9% Ultrasounds 26% 9% Echo 3% Mammo Sleep 2% 29% Nuclear Consults 5% PET/CT 3% Pain/Injections 1% 000. 8,e° WELL Health 09.20) e° %o TECHNOLOGIES CORP
Slide 40: Exemplary Standing & Differentiators
Exemplary Standing & Differentiators WELL Diagnostic Centres reaches the highest standards in Healthcare, surpassing National Standards, thus “raising the bar” for quality healthcare in Ontario 40
Slide 41: Clinic Improvements Post Acquisition
Clinic Improvements Post Acquisition 41
Slide 42: Network Effects of WELL Health Technologies
Network Effects of WELL Health Technologies A collaborative effort to safely and securely service our patients 42
Slide 43: WELL Diagnostic Centres Financial Profile
WELL Diagnostic Centres Financial Profile Revenue Adj. EBITDA (C$ millions) (C$ millions) 120.0 30.0 111.3 104.3 25.8 100.0 25.0 84.6 80.0 20.0 19.0 60.8 60.0 15.0 12.0 10.1 40.0 10.0 20.0 5.0 0.0 0.0 2020 2021 2022 2023 2020 2021 2022 2023 43
Slide 44: Accelerating Margins at WELL Diagnostic Centres
Accelerating Margins at WELL Diagnostic Centres Enhancing operational efficiency through staff optimization, advanced technology, and innovative solutions Historical Adj EBITDA Margins Key Drivers of Margin Expansion 25.0% 23.2% • Optimized Staffing: WELL Diagnostic Centre optimizes 20.0% 17.9% staf
Slide 45: Growth Drivers
Growth Drivers Preparing for a growing future of healthcare delivery in Canada 45
Slide 46: WELL Marketing
WELL Marketing Chris Ericksen, SVP Marketing 46
Slide 47: Questions?
Questions? TECHNOLOGIES CORP
Slide 48: Contact
Contact Hamed Shahbazi CEO, Chairman & Founder hamed@well.company Tyler Baba Investor Relations investor@well.company www.well.company 550-375 Water Street Vancouver, BC V6B 5C6 Canada 48 48 Classified as Highly Confidential