Astrana Health Inc. · NASDAQ:ASTH
Astrana Health — Apollo Medical Holdings — Investor Presentation (September 2020)
27 slides from Astrana Health's investor presentation, Sep 10, 2020
Slide 1: Investor Presentation September 2020
Investor Presentation September 2020
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements include any statements about the Company's bu
Slide 3: Investment Highlights
Investment Highlights Multiple nationwide growth avenues driven by the shift to value-based care Patient-centric, physician-led organization focused on outcomes-based medical care Proprietary care management technology to facilitate integrated care Primary care and specialist networks partnering wit
Slide 4: Company Overview
Company Overview © apollomed
Slide 5: Key Facts and Metrics
Key Facts and Metrics AMEH ~$665M 25+ NASDAQ LTM 6/30/20 Years of Ticker Revenue Operation 7,000+ 13 ~500 Contracted Managed IPAs Employees Physicians 5
Slide 6: Introduction to ApolloMed
Introduction to ApolloMed ApolloMed is a leading, physician-centric, integrated population health management company. We provide coordinated, value-based, high-quality medical care for our patients in a cost-effective manner through our subsidiaries, including a Next Generation Accountable Care Orga
Slide 7: Operational Footprint
Operational Footprint Current 2021 Goal +500k Placer Managed lives Sacramento in CA San Joaquin ~1.1M >2M Yolo Managed Managed San Mateo lives lives Madera Santa Cruz +500k Fresno Tulare Kings Managed lives Kern outside of CA San Bernardino >80% annual Counties Served growth Los Riverside Angeles Sa
Slide 8: Diversified Payor Mix
Diversified Payor Mix © apollomed Anthem blue @ BlueCross california Alignment Healthcare california CENTRAL HEALTH MEDICARE PLAN HMO Promise Health Plan CONTRACTED HEALTH PLANS CH IEC HP Health Net Humana MOLINA - WAwellCare ) HEALTHCARE UnitedHealthcare
Slide 9: Organizational Overview
Organizational Overview Publicly traded Parent Company Management Services Organization Consolidated IPAs Managed IPAs Commercial ACO & EPO Accountable Care Organization ~517,000 ~519,000 ~24,000 ~29,000 member lives member lives member lives member lives Leading California AHMC IPAs EPO Potential f
Slide 10: Service Offerings
Service Offerings ApolloMed Offerings Description% of Revenue Revenue Model Independent • Network of primary and specialty physicians • Capitated per member per Practice • Deliver care under risk-bearing and capitated ~72% month (PMPM) Associations arrangements with payors • Capitated per member per
Slide 11: Creating a Next Generation Integrated Healthcare Platform
Creating a Next Generation Integrated Healthcare Platform Aligning Stakeholders for Win / Win ApolloMed at the Center of Integrated Care / Population Health Management Apollo Medical Holdings Health Plan Hospital Partners Network Medical Partners Management Allied Pacific of California IPA Healthcar
Slide 12: ApolloMed's COVID Response
ApolloMed’s COVID Response ApolloMed implemented numerous strategies to address COVID-19 and support our constituents Members Independent Providers Our Employees • Drive-Thru testing • Access to critical • Flexible work stations supplies arrangements • Increased testing • Reduced patient loads • Dig
Slide 13: Technology Solutions
Technology Solutions © apollomed
Slide 14: Fully-integrated, Proprietary Technology Solutions
Fully-integrated, Proprietary Technology Solutions Our solutions address Revenue Utilization Population three key pain points cycle management Health in managed healthcare management delivery: 14
Slide 15: Deep Domain Expertise Yields Operational Efficiency
Deep Domain Expertise Yields Operational Efficiency Technology Clinical Operational Expertise Knowledge Excellence Artificial Automated claims Intelligence adjudication Intelligent authorization Machine + = auto-approval Learning Member population risk stratification Natural Language and more… Proce
Slide 16: Growth Opportunities
Growth Opportunities © apollomed
Slide 17: Significant Market Opportunity in Provider Services
Significant Market Opportunity in Provider Services Total Addressable Market in the U.S. Provider services population Medicare, Medicaid, includes: Commercial and Other $725.6B(1) Third Party spending TAM in State of CA Potential membership in the 21.1M (2) State of California: $25.3B Potential memb
Slide 18: Multiple Strategies to Drive Growth
Multiple Strategies to Drive Growth Revenue $660 $561 $520 $356 Enter new markets and geographies Grow physician network and managed lives Consolidate additional IPAs under APC Expand hospital and health system partnerships 2017 2018 2019 2020 Add new service lines Future 18
Slide 19: Financial Overview
Financial Overview © apollomed
Slide 20: Historical Financial Profile
Historical Financial Profile Consistent APC Membership Growth Contracted Physicians Growth (# of physicians) Historical Revenue Growth ($ in millions) (1) 1. 2020 revenue is annualized using YTD June 2020 revenue disclosed in ApolloMed’s Quarterly Report on Form 10-Q, dated August 10, 2020. 20
Slide 21: Growth in Quarterly Performance
Growth in Quarterly Performance ($ in millions) Recent Trends Q2 Quarter over Quarter Revenue Q2 Quarter Over Quarter Adjusted EBITDA 27% 40% • Capitation revenue increased primarily due to the • Driven by increase in capitation rates and improved acquisition of Alpha Care and Accountable Health Car
Slide 22: ApolloMed Sources of Revenue
ApolloMed Sources of Revenue (YTD 6/30/2020) A Capitation - Capitated fees for medical services via direct arrangements with managed care providers – Typically pre-paid monthly based on number of enrollees B Risk Pool Settlements & Incentives - Full risk capitation arrangements with certain health p
Slide 23: Current ApolloMed Capitalization
Current ApolloMed Capitalization ($ millions, except for per share price) Share Price (as of 6/30/2020) $16.50 Basic Shares Outstanding (1) 53.8 Options, Warrants and Holdback Shares (Treasury Stock Method) 1.2 Fully Diluted Shares Outstanding (2) 55.0 Market Capitalization (fully diluted basis) $90
Slide 24: Appendix
Appendix ————————_—_—_ $_<_$_ _ i~—_—=—_— — —S======—=— © apollomed
Slide 25: EBITDA Reconciliation
EBITDA Reconciliation ($ in millions) Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Net income $ 81.0 $ 10.7 $ 84.0 $ 8.2 Depreciation and amortization 4.6 4.5 9.3 8.9 Provision for income taxes 31.9 4.2 33.5 2.8 Interest expense 2.7 0.3 5.5 0.5 Interest income (0.9) (0.5
Slide 26: EBITDA Reconciliation
EBITDA Reconciliation Use of Non-GAAP Financial Measures This presentation contains the non-GAAP financial measures Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA, of which the most directly comparable financial measure presented in accordance with GAAP
Slide 27: Key Acronyms
Key Acronyms • ACO: Accountable Care Organization • IPA: Independent Practice Association • AIPBP: All-Inclusive Population-Based • NCI: Non-Controlling Interest Payments • NMM: Network Medical Management • APC: Allied Physicians of California IPA • MSA: Master Service Agreement • CMMI: Center for M
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