Evolent Health, Inc · NYSE:EVH
Evolent Health — J.P. Morgan Healthcare Conference (January 2021)
22 slides from Evolent Health's conference presentation, Jan 13, 2021
Slide 1: J.P. Morgan Healthcare Conference: Evolent Health
1 J.P. Morgan Healthcare Conference: Evolent Health January 13, 2020 Exhibit 99.1
Slide 2: Introductions
2 Introductions John Johnson Chief Financial Officer, Evolent Health Seth Blackley Chief Executive Officer and Co-Founder, Evolent Health
Slide 3: Evolent in Brief
3 Evolent in Brief BY THE NUMBERS ~$265M Q3 Revenue 3.5M lives supported 35+ partners $33.5M LTM Q3 2020 Adjusted EBITDA1 1) Non-GAAP measure, See “Non-GAAP Financial Measures” for definition and Appendix B for reconciliation to GAAP. LTM Q3 2020 GAAP net loss to common shareholders was $(517.7). 2)
Slide 4: What Makes Evolent Unique: Bridging the Divide Between Payers and Providers
4 What Makes Evolent Unique: Bridging the Divide Between Payers and Providers Evolent is the bridge between payers and providers helping patients receive high quality care that is cost-effective, evidence-based and seamless Patient Payer Provider
Slide 5: Value-Based Care Market Landscape
5 Value-Based Care Market Landscape Business Model / Focus Example Companies New Payer Models Bright HealthCare Oscar Health Devoted Health Insurance / Consumers, technology Payer-Provider Enablers Livongo (NYSE: LVGO) Progyny (NYSE: PGNY) Tech-enabled services / Clinical value New Provider Models O
Slide 6: Momentum in the Market Towards Value-Based Care
6 Near-Term Potential Market CatalystsLong-Term Industry Trends Momentum in the Market Towards Value-Based Care Evolent is uniquely positioned to serve through Value-Based Solutions CMMI Geographic Contracting Model Growth in Medicaid and State Budget Deficits Driving Need for Cost Savings COVID-19
Slide 7: Core Services: Our Portfolio of Evergreen Solutions
Confidential – Do Not Distribute7 Core Services: Our Portfolio of “Evergreen” Solutions Administrative Simplification Specialty Care Management Clinical Administrative Total Cost of Care Management Solution Target Market Proprietary Technology Platform: CareProSM | Identifi® Scalable Clinical IP and
Slide 8: Solution Example: Specialty Care Management
Confidential – Do Not Distribute8 Solution Example: Specialty Care Management ROOTED IN CLINICAL EVIDENCE WITH SUBSTANTIAL COST SAVINGS 14 Breast Lung Colorectal 1819 30 19 13 Level 1Level 2 Average Cost Per Treatment $ Thousands BASED FOREMOST ON QUALITY Advisory Board $ Practicing Physicians Physi
Slide 9: Recent Updates
Confidential – Do Not Distribute9 • 8 new partnerships announced in 2020, at the high end of target • Successful 1/1/21 launches with new partners including Florida Blue Medicare, Molina Healthcare of Kentucky, and Maryland Physicians Care • We expect to be within or exceed our previously raised gui
Slide 10: Key Investment Themes
10 Key Investment Themes Profitable, Scalable Financial Model2 Strong Balance Sheet3 Differentiated Products Drive Strong Growth1 Pillars of Our Strategy to Create Shareholder Value *Excludes revenues from Passport for purposes of calculating 2021 growth rate. Passport represented 22.6% of revenue f
Slide 11: Strong Track Record of Organic Growth
11 Strong Track Record of Organic Growth $436 $554 $670 $908 2017 2018 2019 2020P Adjusted Services Revenue ($M)1 Adjusted Services Revenue CAGR of 28% since 2017, including 15% average annual organic growth3 a) Add new customers b) Further penetrate existing customers (Same Store Growth): i. Cross-
Slide 12: Multiple Growth Channels
Confidential – Do Not Distribute12 Multiple Growth Channels Cross-Sell Membership Expansion New Partnership Customer Revenue Example Add New Customers • Target six-to-eight per year, with eight announced in 2020 • Broader service offering and end markets provide increased confidence Expand with Exis
Slide 13: Add New Customers: Recent New Partnership Examples
13 Add New Customers Recent New Partnership Examples 1
Slide 14: Further Penetrate Existing Customers: Cross-Sell or Expand Geographies
14 Further Penetrate Existing Customers: Cross-Sell or Expand Geographies (Illustrative Case Study) $908 1) 2020P represents midpoint of reiterated Adjusted Services revenue guidance for the year ending December 31, 2020. Adjusted Services Revenue ($M, 2020P)1 Further Penetrate Existing Customer (Il
Slide 15: Targeted Adjusted EBITDA Margin Expansion Trajectory
Confidential – Do Not Distribute15 3.4% 2% 4% Mid-teens % LTM 9/30/2020 Identified Cost Reductions New Customer Maturation Leverage from Growth Adj. EBITDA Margin Medium Term Target Targeted Margin Expansion Trajectory 5% Identified cost reductions plus growth leverage phases in margin improvement –
Slide 16: Focused Strategy Driving Significant Deleveraging
16 Focused Strategy Driving Significant Deleveraging Divest Non-Core Assets1 Use Proceeds to De-lever Senior Term Loan Paid Off as of January 8th, 2021 True Health New Mexico Florida Medicaid JVs Passport $232 Debt Less Cash on 9/30/2020 Passport Capital Return 9/30/20 Debt Less Cash after Passport
Slide 17: Key Investment Themes
17 Key Investment Themes Profitable, Scalable Financial Model2 Strong Balance Sheet3 Differentiated Products Drive Strong Growth1 Pillars of Our Strategy to Create Shareholder Value *Excludes revenues from Passport for purposes of calculating 2021 growth rate. Passport represented 22.6% of revenue f
Slide 18: Appendix
Confidential – Do Not Distribute18 Appendix
Slide 19: Safe Harbor Statement
19 Safe Harbor Statement Certain statements in this presentation and in other written or oral statements made by us or on our behalf are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). A forward-looking statement is a statement that
Slide 20: Non-GAAP Financial Measures and Disclaimer
20 Non-GAAP Financial Measures and Disclaimer In addition to disclosing financial results that are determined in accordance with GAAP, we present and discuss Adjusted Revenue, Adjusted Services Revenue, Adjusted Transformation Services Revenue, Adjusted Platform and Operations Services Revenue, Adju
Slide 21: Appendix A – Adjusted Revenue Reconciliation
Confidential – Do Not Distribute21 Appendix A – Adjusted Revenue Reconciliation ($ in millions) Evolent Health, Inc. as Reported Evolent Health LLC Operations Adjustments Evolent Health, Inc. as Adjusted Q3 2020 Transformation services $4.8 $- $- $4.8 Platform and operations services 230.3 - - 230.3
Slide 22: Appendix B – Adjusted EBITDA Reconciliation
Confidential – Do Not Distribute22 Appendix B – Evolent Health, Inc. Adjusted EBITDA Reconciliation LTM Ended Year Ended Guidance 9/30/2020 12/31/2019 Q4 2020 FY 2020 Net loss attributable to common shareholders of Evolent Health, Inc. ($517.7) $(302.0) ($19.2) ($338.8) GAAP Margin (52.5)% (35.7)% (
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