Hims & Hers Health, Inc. · NYSE:HIMS
Hims & Hers Health — Oaktree Acquisition — SPAC Merger (November 2020)
52 slides from Hims & Hers Health's SPAC merger presentation, Nov 3, 2020
Slide 1: Exhibit 99.1
TITLE Exhibit 99.1
Slide 2: Disclaimer
Disclaimer himsahers 2
Slide 3: Disclaimer (cont'd)
Disclaimer (cont'd) nt teams ney hr campos computa mean wien cern wh GAP nda Mart ote Pap inthe atin sotonant pene lrt roponed ines Combination when oto himsahers 3
Slide 4: Intro & Agenda
Intro & Agenda
Slide 5: Intro & Agenda
12:00-12:05pm 12:05-12:10pm 12:10-12:40pm 12:40-1:00pm. 1:00-1:10pm 1:10-1:25pm 1:25-1:40pm 1:40-2:00pm 2:00-2:10pm 2:10-2:45pm 2:45-3:15pm 3:15-3:20pm 5min 5 min 30 min 20 min 10 min 15min 15 min 20 min 10 min 35 min 30 min Smin Intro & Agenda Opening Remarks Business Overview Q&A #1 Break Brand Bu
Slide 6: Opening Remarks & Business Overview
Opening Remarks & Business Overview TBD Graphics
Slide 7: Purpose-built platform and brand with a massive opportunity
1 Purpose-built platform and brand with a massive opportunity 2 Highly engaged and recurring patient base OAC 3 Attractive financial profile with visible path to profitability investment thesis 4 Visionary founder with experienced management team 5 Compelling deal framework with strong rollover part
Slide 8: hims & hers at a glance
hims «hers at a glance a category definin: health company bringing choice to consumers by combining access, affordability and transparency nex 158 2mm+ 76% employees cumulative cae telehealth margins consultations! ° 266 280k+ >90% al specialty cus recurring 2018 2018820208 providers subscriptions r
Slide 9: World Class Suite of Shareholders
World Class Suite of Shareholders…
Slide 10: Led by a visionary founder and veteran leadership
led by a visionary founder and veteran leadership with the most relevant healthcare, technol & gy experience N = : ‘ 4 Andrew Dudum. Spencer Lee Patrick Carroll Melissa Baird Soleil Boughton Leah Millheiser Lori Jackson Julian Cohen ChefLogalOficer SYP MudelAars SVP Opertons SYP Behavioral Heath ATO
Slide 11: The US healthcare system is one of the last multi-trillion dollar markets
the US healthcare system is one of the last multi-trillion dollar markets yet to be disrupted Healthcare® Retail Transportation? Histol S4 tn With 330mm people's 5 24 154 health at risk, improving al man ei the status quo is arguably the most impactful ° 5 | opportunity of our lifetime himsahers 11
Slide 12: For the average American the healthcare system is broken and disjointed
for the average American the P healthcare system is broken and disjointed, and the 4° . 50% Tin4 statistics are staggeringly sad of US. families cant er regularly scheduled with a doctor in the U.S.” doctor visits! Per capita spend in the United States has doubled in the last 20 years, however, U.S.
Slide 13: Now is the time for the modern digitization of the healthcare industry
now is the time for the modern digitization of the healthcare industry 1994 2006 2009 2012 2015 fomonad amazon ® srotify | Esquore arr | femonade Retail / Commerce Radio / Music | Payments Sports Betting | Insurance 2012 TV/Video 2008 2009 | Transportation Hotels Transportation ip healthcare ~
Slide 14: The first digitally native, fully verticalized multi-condition health platform
the first digitally native, fully verticalized multi-condition health platform—providing access to high quality, integrated care from start-to-finish... hims hers Consumer Brand Distributed Provider Network Clinically Focused EMR Digital Native Telehealth Platform Digital Prescriptions Cloud Pharmac
Slide 15: Enabling the health experience of the future
..enabling the health experience of the future that modern consumers expect < what issue can we help with today? look to realy tackle this Skincare ‘Symptom Review me 3 Hore ‘Your shipment i onits way. forma for your acne Onder #18774 Frequency: Monthly Refi: 6 himsshers 15
Slide 16: The new front door to healthcare
this is the new front door to healthcare—where the patient is our consumer and the experience is frictionless himsahers ( ( + Y ) Fast & Comprehensive —_ Ubiquitous Stigma Personalized Efficient & Affordable Access Free for You ge P 24/7 access safe and comfortable _ potential for greater consultati
Slide 17: Rigorous, evidence-based guidelines and comprehensive provider training
all made possible by rigorous, evidence-based guidelines and comprehensive provider training 266 Board Certification Verification fi and specialty numerous federal, state, and other agencies State Licensing Training Must be licensed to practice Comprehensive written testing ensuring they will serve
Slide 18: High scale patient and clinician experience facilitated by proprietary tech
and a high scale I tient & clinici experience facilitated by proprietary, purposeful tech Meet just some of the technology helping our customers receive high-quality care faster and with more precision MO © 3 & hi verify / fi consult hh diagnose < [1 continuity /> Multiple system tools to validate p
Slide 19: This new paradigm of healthcare has unlocked scale
this new paradigm of healthcare has unlocked pati 2.4mm 2.4mm+_ 11.8mm+ H&H telehealth Cumulative patient consultations since touchpoints' launch HH telehealth consultations since launch 431k 2018 2019 93 2020
Slide 20: Q&A
Slide 21: Break
break
Slide 22: Brand Building
Slide 23: Delivering a consumer experience unlike anything in the industry
delivering a consumer experience unlike anything in the industry ; be NPS scores by industry 6 — © ®© © Hotel & fs , Consumer Pac Health Life Fixed bis & hors ing aking Retail Gonsumer wireless | Pee ‘ter insutnce —Uiiitios on Coble himsahers 23
Slide 24: Customer driven organic growth
Customer driven organic growth our Customers are ambassadors for our brand, building community and adopted and championed by our Customers who represent the future of the healthcare system driving organic growth ° 9, a 80% Millennials Word of Mouth & User Generated of our Customers make up the major
Slide 25: Pre-existing health system loyalty is limited and lifetime value is just beginning
whose pre-existing health system loyalty is limited and whose oe lifetime value is just beginning Age 60+ . ~$500bn oe ae Menopause oo age 40-60 Diabates Control ~$400bn Hypertension TAM Cholesterol age 18-40 Fertility 53% “$350bn — Erectile Dysfunction of people would prefer Dermatology taking care
Slide 26: We own the trusted consumer relationship
we own the trusted consumer relationship and are uniquely positioned in the rapidly-emerging landscape Telehealth B2Cc Focused Good one medical < himsshers Telehealth Capability We have a defensible model, engaging directly with consumers, and thus are indifferent to future system evolutions B2B2C F
Slide 27: Deepening competitive advantages make our platform difficult to replicate
deepening competitive advantages make our platform difficult to replicate Proprietary Technology Stack Homegrown EMR Easy-to-use by providers and patients alike Scale & Knowledge Base 2.4MMs+ telehealth consultations 11.8MMs cumulative patient touchpoints Enabling more efficient marketing National P
Slide 28: Future Growth Vectors & Category Expansion
A a ma ; y uel irowth Wectorssie cafegory . wi
Slide 29: Immediately addressable markets are massive and underpenetrated
our immediately addressable markets are massive and underpenetrated Erectile : S = Anxiety & Hair 2 ; Pigs Depression ~$3bn ~$4bn ~$14bn ~$44bn market size market size market size’ market size
Slide 30: Key underlying fundamentals making for logical expansion
Spend Chronic Generic Medication Specialty Focus Stigma Telehealth Enabled all with key underlying fundamentals making for logical expansion [ esstng) Hair Loss ED $3bn $4bn iv) i) iv) i) iv) iv) iv) iv) iv) i) Anxiety & Depression Dermatology $14bn $44bn Primary Care $280bn Sleep $15bn cv) Fertilit
Slide 31: Our 300,000 sq. ft. Ohio pharmacy will unlock future growth
our 300,000 sq. ft. Ohio : 4 pharmacy will unlock ; enormous future growth opportunities location: Columbus, OH features: ¥ 300k sq. ft. floor ¥ Secure regulation standard drug storage cage v Full automation packaging machinery Drives further gross margin expansion Completes vertically integrated pl
Slide 32: Platform strength enabling transformation for entrenched stakeholders
the strength of our platform is also enabling transformation for entrenched stakeholders As customers’ preference towards telehealth modalities increases, traditional health systems and corporates will look to bridge with consumer friendly, and brand name platforms and offerings clinically focused t
Slide 33: The rise of digital health is not limited to the United States
the rise of digital health is not limited to the United States... USA UK EU Canada 330mm 66mm 446mm 38mm population population population population ° ° 5 () ~260% $12 in market growth in select market size? “telehealth friendly” future markets! Australia Indonesia Singapore 25mm 268mm 6mm populatio
Slide 34: Q&A
Slide 35: Break
break
Slide 36: Financials Deep Dive & Transaction Overview
Slide 37: Combination of market, technology and team has led to high growth
the binati ofa market, disruptive technology and a world class team has led to... @ 128% * High revenue growth 128% revenue CAGR from 2018-2020E—extremely attractive relative to publicly traded peers Note: Al umber for G2 2020 @ ; 76% Best-in-class gross margin profile Attractive and expanding gross
Slide 38: Attractive historical revenue growth and significant gross margin expansion
attractive historical revenue growth and significant gross margin expansion Year-over-Year Growth % % Gross Margin -—— 4 209% 467% 29% 54% 71% a ¢ Annual revenue Annual gross profit (S millions, ($ millions, unaudited) unaudited) . $98 254% car - $45 $8 2019A 2020E 2018A 2019A 2020E Source: Company
Slide 39: Strong revenue growth driven by average order value and order growth
strong revenue growth since inception driven by average order value and order growth Quarterly revenue ($ millions, unaudited) 171% * a $22 $20 we $16 we $12 $8 “ bis Q2'18 Q3'18 Q4'18 ang Q219 Q3'19 Q419 Q1'20 Q2’20 Source Company intern doo
Slide 40: Financial overview
financial overview $ millions, unaudited, unless noted 12019 22019 Q3 2019 42019 Q12020 Q2 2020 3 2020 Revenue $i6 $20 $22 $25 $30 $36 $41 YoY % Growth 783% 364% 156% 106% 9% 76% 91% % Gross Margin 41% 53% 56% 61% 69% 71% 76% AOV'($) $27 $30 $32 $43 $52 $58 $67 Net Orders? (000s) 585 672 671 571 546
Slide 41: Strong unit economics with 3x LTV/CAC
$250 $200 $150 strong unit economics with 3x LTV/CAC Cumulative Revenue per New Subscriber by Cohort’ — 922020 — Q12020 — 22019 — 1H2019 months since initial purchase 123 45 67 8 9 0 1 12 13 14 revenue per 19 y' is 3-year basis, a ~2x and ~3x return on CAG, respectively Marketing Spend and Customer
Slide 42: Highly recurring, diversified subscription-based revenue
highly recurring, diversified subscription-based revenue Th wholesale wholesale /o fo 10% hein dren, sexual heath contin o0n-R3) enti (Rs) Revenue by product non-prescription medication Prescription vs Company interna oto 91% ‘onli (non-tubseription) ‘online (eubseription) Subscription vs non-subscr
Slide 43: Historical and projected financial summary
YoY % Growth Gross Profit YoY % Growth % Margin ‘Adjusted EBITDA’ 2018A ($68) 20198 ($66) historical and projected financial summary himsshers
Slide 44: Adjusted EBITDA Annual Reconciliation
Adjusted EBITDA Annual Reconciliation (Smilions, unaudited) 2018A 20194 Net Income ($75) ($72) (+) Depreciation and Amortization $0 $o (+) Provision for Income Taxes ° ° (-) Interest Income q) (2) (+) Interest Expense ° ° (+) Non-Cash Debt Issuance Expense ° ° (+) Stock Based Compensation Expense 7
Slide 45: Adjusted EBITDA Quarterly Reconciliation
Adjusted EBITDA Quarterly Reconciliation ($milions, unaudited) 12019 Q2.2019 Q3 2019 Q4 2019 Q12020 2 2020 Net Income ($17) ($24) ($19) ($12) ($6) ($1) (+) Depreciation and Amortization $0 $0 $0 $o $o $o (+) Provision for Income Taxes 0 ° 0 0 0 ° (-) Interest Income (0) a) q) (0) (0) (0) (+) Interes
Slide 46: Transaction summary
transaction summary Pro Forma Enterprise Value ($ millions) i fe - Share Price $10.00 © Implied pro forma enterprise value of $1.6 billion 7 Pro Forma Shares Outstanding 192.656 @ OAC to combine with hims & hers ° Re y Equity Value $1,927 ° hi (-) Cash on Balance Sheet* (334) Pe yee (+) Debt - © Con
Slide 47: Comparable company benchmarking
2019A-2022E Revenue CAGR 2021E Gross Profit Margin 2019A-2022E Gross Profit CAGR comparable company benchmarking hims xhers Otetapoc. i Livongo” 46% one medical 24% Peer Group
Slide 48: Comparable company benchmarking (cont'd)
EV/2021E Revenue hims & hers discount to peers EV/2021E Gross Profit hims & hers discount to peers comparable company benchmarking (cont’d) hims hers 12.2x Ortetapoc! & Livongo’ 25.9x (53%) one medical 24.7x (5%) GoodR? 28.6x (69%) (60%) Peer Group Average (55%) himsshers 48
Slide 49: Comparable company benchmarking (cont'd)
Company OteLapoc! Livongo’ “one medical Share Price ($) $196.46 $28.21 $48.39 comparable company benchmarking (cont’d) Market Cop (Smm) $3120 $4,207 $21,095 $1927 Ad ev (mm) $32,345 $3,062 $20,899 $1592 vee ondentorazvlue Revere Multiple Gross Profit Mutiple Revenue Growth Gross Margin Gross ProfitG
Slide 50: Q&A
Slide 51: Closing remarks
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Slide 52: hims & hers