Agilon Health, Inc. · NYSE:AGL
Agilon Health — Investor Presentation (November 2021)
28 slides from Agilon Health's investor presentation, November 2021
Slide 1: agilon health November 2021
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Slide 2: Disclaimers and Forward-Looking Statements
Disclaimers and Forward-Looking Statements FORWARD-LOOKING STATEMENTS AND OTHER IN FORMATION Statements in this presentation that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities E
Slide 3: Who We Are
Who We Are We Are… Unlocking Medicare Advantage growth and value-based care at scale by partnering with leading independent physician groups 20 17 230K+ Year exclusive Diverse geographies Medicare Advantage partnerships among live and members including live We Enable… implementing markets and implem
Slide 4: Investment Highlights
Investment Highlights Large, Growing First Mover Long-Term Alignment with Addressable Market Advantage Local Physician Leaders Unlocking Diverse & Physicians Are Efficient Non-Traditional Geographies Winning Growth Model Copyright © 2021 agilon health. Confidential internal document containing propr
Slide 5: Structural Changes Define the Future
Structural Changes Define the Future Senior Population Healthcare Now Primary Care Is Growing Focused on Outcomes Redefined Total Medicare Enrollment PCPs influence up to 90% of costs Medicare Advantage Enrollment $750B 90 of Healthcare 80 Spending is Wasted 70 High Value PCP: 60 (or 25%) 91% “Netfl
Slide 6: agilon Total Care Model
agilon Total Care Model Move everything closer to the physician • Align PCP economics with outcomes • Long-term JV with physician groups Partnership • Full risk, multi-payor globally capitated Medicare line of business • Like-minded group of • Purpose-built agilon entrepreneurial physicians Total Ca
Slide 7: Purpose-Built Full Stack Platform
Purpose-Built Full Stack Platform People Process Capital agilon Technology Platform Platform Capabilities Clinical Programs & Payor Engagement Data Integration & Insights Product Development Quality Growth Performance Management National Policy Analytics Financial Management Direct Contracting Copyr
Slide 8: "Flipping" Medicare Advantage to a Single Risk Line Of Business
“Flipping” Medicare Advantage to a Single Risk Line Of Business CURRENT STATE agilon Traditional FFS Model Total Care Model MA Payor 1 MA Payor 2 MA Payor 3 Commercial Traditional Medicare Insurance Medicare Advantage Payors FFS Payors Single PCP-Led MA Risk Line of Business Better FFS Rates Low FFS
Slide 9: Unlocking Geography At Scale - First Mover Advantage
Unlocking Geography At Scale - First Mover Advantage In-market membership growth opportunity Payor 1 ~180 ~230 Payor 2 PCP Growth from 2017-2020 Columbus, OH Payor 3 21K 37K MA Member Growth From 2017-2020 ✓ Rapid Scale Through Anchor Tenant Payor 4 ✓ Multi-Payor Network ✓ Low-Cost Member Growth ✓ B
Slide 10: Diverse Markets Benefit Equally
Diverse Markets Benefit Equally Pinehurst, NC Buffalo, NY 410K 38% 1.21M 61% 18+ population MA penetration 18+ population MA penetration 12% 72% 4% 26% MA Growth PPO penetration MA Growth PPO penetration Note: All stats reflect market statistics for all exclusive contracted geographies except for pa
Slide 11: All Stakeholders Benefit
“This partnership allows me to practice medicine and All Stakeholders Benefit care for patients the way I was trained to.” - Gary Pinta, MD (Pioneer) PATIENTS PROVIDERS 83 78% 95% 73 >90% Patient NPS wellness visit of members agree Physician NPS Share in believe that quality completion vs. that they
Slide 12: Better Results For Physicians and Patients
Better Results For Physicians and Patients Technology & Aligned Physicians Manage Physicians Engaged in Physicians Improve The Entire Continuum Their Business Care Delivery of Care Referral Insight Investing Ahead of the Personalized Program Outcome Dashboard Age-In and Extended Age-In Referrals to
Slide 13: Highly Actionable Addressable Market
Highly Actionable Addressable Market Rapidly Expanding Actionable TAM Growing at 8% CAGR 2020 Projected 2025 # Patient Spend (1) # Patient Spend(2) Total Medicare beneficiaries 61.7M $859B 70.3M $1,250B Total Total Beneficiaries Medicare Medicare beneficiaries attributed to 26.7M $267B 30.4M $389B I
Slide 14: How Our Systematic Approach is Working
How Our Systematic Approach is Working Membership CAGR of 41% in Ohio and 17% in Columbus from 2018-2021 Identify Anchor Establish Network Access Embedded Lives Add PCPs Network Effects PCPs Join Anchor Members in Ohio or Network ~65K PCP Panel 48K Columbus, Network Acquisition 34K OH Medicare Advan
Slide 15: Scaling Nationally - 8 States and 17 Geographies
Scaling Nationally - 8 States and 17 Geographies Successfully executing hub and spoke strategy across multiple geographies Go-Live: Pre-2019 2019 2020 2021 2022 Hawaii Ohio Texas Pennsylvania North Carolina New York Connecticut Michigan 2017 2018 2019 2020 Today 1 Geography 2 Geographies 4 Geographi
Slide 16: Financial Model
Financial Model Copyright © 2021 agilon health. Confidential internal document containing proprietary information. Do not distribute.
Slide 17: Key Attributes of agilon's Financial Model
Key Attributes of agilon’s Financial Model Highly efficient growth model accesses embedded TAM and margins over time Long Term • 20-year partnerships with leading independent physician groups Partnerships • Aligned model enables access to embedded TAM and margin • Revenue based on subscription-like
Slide 18: agilon health Economic Model
agilon health Economic Model Illustrative Economic Model Comments PMPM % Retained 1 agilon RBEs enter into 20-year PSAs 1 2 Paid by CMS to by MA Plan For Admin PMPM with anchor PCP partner and global Medical MA Plan and Profit Paid to Expense capitation agreements with multiple agilon / (ER, Hospita
Slide 19: Maturing Long-Term Margin on a Growing Membership Base
Maturing Long-Term Margin on a Growing Membership Base Geography 1 Geography 2 Geography 3 Average Membership Average Membership Average Membership CAGR: 17% CAGR: 20% CAGR: 21% 34K 10K 22K 28K 8K 17K 24K 7K 15K 21K Year 0 Year 1 Year 2 Year 3 Year 0 Year 1 Year 2 Year 0 Year 1 Year 2 Medical Margin
Slide 20: Highly Attractive LTV / CAC Dynamics
Highly Attractive LTV / CAC Dynamics Example Geography Within Ohio Market Launch Cost of $2.7M Nominal Ongoing CAC Compelling LTV/CAC $400 per member CAC Year 0 No costs for brick and Payback period of 1-2 years $110 incremental per member CAC mortar footprint across live markets CAGR: 20% Avg. Memb
Slide 21: Significant Network Momentum
Significant Network Momentum Membership Revenue Geographies on the Platform CAGR: 65% CAGR: 83% (Live and Implementation) 185K - $1,820M- 17 Thousands Millions 186K $1,825M 131K $1,218M 11 90K $794M 7 57K $475M 4 11 29K 8 $200M 2 4 2 1 2017 2018 2019 2020 2021G 2017 2018 2019 2020 2021G 2017 2018 20
Slide 22: Improving Medical Margin and Operating Leverage
Improving Medical Margin and Operating Leverage Medical Margin Network Contribution $192M $99M $90M $63M $165M $151M $72M $26M 2019 2020 3Q20 YTD 3Q21 YTD 2019 2020 3Q20 YTD 3Q21 YTD Platform Support % of Revenue Adjusted EBITDA 11.2% $18M $6M 8.2% 8.3% 6.8% ($12M) ($57M) 2019 2020 3Q20 YTD 3Q21 YTD
Slide 23: Financial Outlook
Financial Outlook Year Ending Year Ending December 31, 2021 December 31, 2022 Ending MA Members 185,000 – 186,000 260,000 + Ending DCE Members 50,000 – 52,000 80,000 – 85,000 Total Revenue $1,820M – $1,825M Adjusted EBITDA ($40M) – ($37M) We have not reconciled guidance for Adjusted EBITDA to net in
Slide 24: Appendix
Appendix Copyright © 2021 agilon health. Confidential internal document containing proprietary information. Do not distribute.
Slide 25: Environmental, Social and Governance Considerations
Environmental, Social and Governance Considerations Sustainable community-based primary care • agilon was built to transform healthcare in communities across the country. We do this 26% through community-based physicians that Lower Hospital are critical components of their local Readmit healthcare d
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations (Dollars in thousands) Nine Months Ended September 30, (Dollars in thousands) Nine Months Ended 2021 2020 September 30, Net income (loss) $ (350,050) $ (35,837) 2021 2020 (Income) loss from discontinued operations, net of income taxes 1,992 12,230 Interest expense 5,306 6,18
Slide 27: Non-GAAP Reconciliations Continued
Non-GAAP Reconciliations Continued Year Ended (Dollars in thousands) December 31, (Dollars in thousands) Year Ended 2020 2019 December 31, Net income (loss) $(60,052) $ (282,588) 2020 2019 (Income) loss from discontinued operations, net of Income (loss) from operations $ (56,673) $ (106,574) income
Slide 28: agilon health
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