The Oncology Institute, Inc. · NASDAQ:TOI
The Oncology Institute — Oncology Institute — Investor Presentation (April 2024)
21 slides from The Oncology Institute's investor presentation, Apr 3, 2024
Slide 1: Investor Presentation April 2024
1THE ONCOLOGY INSTITUTE OF HOPE & INNOVATION Investor Presentation April 2024
Slide 2: Disclaimer
2THE ONCOLOGY INSTITUTE OF HOPE & INNOVATION Disclaimer FORWARD LOOKING STATEMENTS This presentation includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Ac
Slide 3: TOI's future growth is predictable, repeatable and scalable
3THE ONCOLOGY INSTITUTE OF HOPE & INNOVATION TOI’s future growth and new market entry is predictable, re pe atab le and sc alab le with t re me ndous ne ar t e rm and long- te rm growth opportunit ie s in front of us . Oncology is a large and growing market but today’s care delivery system is broken
Slide 4: The rising cost of Oncology Care is a significant problem
4THE ONCOLOGY INSTITUTE OF HOPE & INNOVATION The rising cost of Oncology Care is a significant problem of U.S. GDP is spent on healthcare & continues to rise18% Healthcare is Unaffordable & Inefficient in the U.S. spent per person compared to OECD average2x Yet, U.S. incidence of chronic illness and
Slide 5: Revenue and Milestone Timeline
5THE ONCOLOGY INSTITUTE OF HOPE & INNOVATION Revenue(1) and Milestone Timeline TOI represents 0.01% of the U.S. Oncology Market providing substantial growth opportunity Notes: (1) 2007-2017 revenue is cash basis, unaudited and pertains to the Predecessor entity only (2) Predecessor revenue of $76M;
Slide 6: We are building the leading Value-Based Oncology Care Platform
6THE ONCOLOGY INSTITUTE OF HOPE & INNOVATION unique patient encounters in 2023~72K Patient visits in 2023378K clinical trials since TOI was founded, giving patients cutting edge access100+ We are building the leading Value-Based Oncology Care Platform reduction in patient healthcare costs on average
Slide 7: Our results are peer-reviewed & published
7THE ONCOLOGY INSTITUTE OF HOPE & INNOVATION Our results are peer-reviewed & published (1) Based on study on TOI patient population conducted by researchers at Stanford University (2) As of April 11, 2021 (5.0 scale) Lower Inpatient Admissions(1)30% Improvement in Patient Satisfaction(2)14% Fewer Ac
Slide 8: Our patient-centric focus drives high levels of satisfaction
8THE ONCOLOGY INSTITUTE OF HOPE & INNOVATION “ “ “ Our patent-centric focus drives high levels of satisfaction “Thank you all for helping me through this life test . . . From the front desk to the specialist – when it comes to cancer, you are all needed and appreciated; your kindness and selflessnes
Slide 9: We use multiple levers to reduce cost of care
9THE ONCOLOGY INSTITUTE OF HOPE & INNOVATION We use multiple levers to reduce cost of care Effective Treatments • Reduce practice pattern variability • Access to clinical trials in the community • Vertical integration of dispensary and scaled drug purchasing High-Value Cancer Care Program • Algorith
Slide 10: Proven portability with a rapidly expanding footprint
10THE ONCOLOGY INSTITUTE OF HOPE & INNOVATION Proven portability with a rapidly expanding footprint California Clinics 47 Florida Clinics 13 Arizona Clinics 4 Nevada Clinics 4 Illinois NETWORK MANAGEMENT MODEL Ohio MULTIPLE ENGAGED INDEPENDENT MSO PRACTICES
Slide 11: Strong unit economics drives increasing profitability
11THE ONCOLOGY INSTITUTE OF HOPE & INNOVATION Strong unit economics drives increasing profitability 10% 15% 20% 25% 30% 35% 40% 20% 30% 40% 50% 60% 70% 80% 90% Po d G ro ss M ar gi n Pod % Value-Based Visits ↑ ↑ TOI Pod(2): Gross Margin vs. % Value-Based Visits Embedded gross margin expansion potent
Slide 12: Multiple levers to sustain long term growth trajectory
12THE ONCOLOGY INSTITUTE OF HOPE & INNOVATION Existing Markets Continue driving growth in lives and partnership expansion + New contracts + Expand covered lives + New clinics & providers + Improve unit economics + Medicare direct contracting New Markets Well-honed model enables quick scaling in new
Slide 13: Financial Overview
13THE ONCOLOGY INSTITUTE OF HOPE & INNOVATION Financial Overview
Slide 14: Diversified business model with multiple drivers of revenue growth
14THE ONCOLOGY INSTITUTE OF HOPE & INNOVATION Diversified business model with multiple drivers of revenue growth and margin expansion + Medicaid + Medicare + Commercial Patient Care (Medical & Radiation Oncology) Drug Dispensing Clinical Trials Data Monetization Management Services Products Covered
Slide 15: Revenue/Value-Based Member (PMPY)
15THE ONCOLOGY INSTITUTE OF HOPE & INNOVATION Revenue/Value-Based Member (PMPY*) Revenue per value-based member increases as TOI expands risk beyond medical oncology and expands in markets with historically higher cancer prevalence rates and costs of care. We are evolving our business to take on adj
Slide 16: 2024 Guidance
16THE ONCOLOGY INSTITUTE OF HOPE & INNOVATION 2024 Guidance REVENUE* $40 0 to $415 million representing 23% - 28% growth over full- year 2023 GROSS PROFIT* $68 to $79 million ADJUSTED EBITDA* $(8) to $(18) million Note: TOI's achievement of the anticipated results is subject to risks and uncertainti
Slide 17: Key Takeaways
17THE ONCOLOGY INSTITUTE OF HOPE & INNOVATION Key Takeaways ✓ Early market leader in large & growing market ✓ Proven model with imbedded scalability ✓ Well capitalized, with disciplined deployment strategy ✓ High-quality affordable care for more patients through platform growth
Slide 18: Historical Financials
18THE ONCOLOGY INSTITUTE OF HOPE & INNOVATION Historical Financials
Slide 19: Historical quarterly and annual revenue and expenses
19THE ONCOLOGY INSTITUTE OF HOPE & INNOVATION Patient services $ 39,109 $ 44,627 $ 47,992 $ 50,273 $ 53,426 $ 56,171 $ 124,074 $ 166,785 $ 213,504 Dispensary 20,218 18,839 21,607 24,240 25,196 27,607 72,550 79,343 103,835 Clinical trials & other 1,594 1,511 1,825 1,679 1,602 2,010 6,379 6,355 6,900
Slide 20: Income (loss) statement detail
20THE ONCOLOGY INSTITUTE OF HOPE & INNOVATION FOR YEAR ENDEDFOR THREE MONTHS ENDED Jun 30, 2022 Sept 30, 2022 Dec 31, 2022 Mar 31, 2023 Jun 30, 2023 Dec 31, 2021 Dec 31, 2022 IN C O M E (L O SS ) Loss from operations (18,304) (20,097) (25,079) (32,867) (14,938) (15,288) (45,858) (81,951) (77,018) Ot
Slide 21: Net loss to Adjusted EBITDA reconciliation
21THE ONCOLOGY INSTITUTE OF HOPE & INNOVATION Dec 31, 2023 Dec 31, 2023 FOR YEAR ENDEDFOR THREE MONTHS ENDED Jun 30, 2022 Sept 30, 2022 Dec 31, 2022 Mar 31, 2023 Jun 30, 2023 Dec 31, 2021 Dec 31, 2022 Net (loss) income $ (5,453) $ (2,674) $ (11,007) $ (29,998) $ (16,897) $ (18,754) $ (10,927) $ 152
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