Evolent Health, Inc · NYSE:EVH
Evolent Health — 41st Annual J.P. Morgan Healthcare Conference (January 2023)
26 slides from Evolent Health's conference presentation, Jan 11, 2023
Slide 1: 41st Annual J.P. Morgan Healthcare Conference Investor Presentation
1 41st Annual J.P. Morgan Healthcare Conference Investor Presentation January 11, 2023 Exhibit 99.1
Slide 2: Safe Harbor Statement
2 Safe Harbor Statement Certain statements, including but not limited to estimates of Adjusted EBITDA, earnings growth, expected cost synergies and net leverage ratios, made in this presentation and in other written or oral statements made by us or on our behalf are “forward-looking statements” with
Slide 3: Safe Harbor Statement - continued
3 Safe Harbor Statement - continued The risks included here are not exhaustive. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Our Annual Report on Form 10-K for the
Slide 4: Agenda: Evolent Health Overview
4 Year in Review and Drivers for 2023 Evolent Health Overview AGENDA Investment Considerations
Slide 5: Evolent Health Mission - Driving Better Outcomes Across Healthcare
5 Evolent Health Mission - Driving Better Outcomes Across Healthcare Patients Health PlansProviders Our User Selected Customers Our Customer Our Motivation Less Friction. More Care. Higher Quality. Lower Costs. Better Treatment. Better Health. What We Do: Evolent supports health plans and risk-takin
Slide 6: Evolent Health: A Leader in Value-Based Care Solutions
6 FINANCIAL OVERVIEW (TTM as of 09/30/22)WHO WE ARE • Evolent improves health outcomes, with a focus on complex specialties • Solutions contracted with operating partners covering over 20 million people nationally • We are independent and health plan-agnostic: Our customers include over 50 health pl
Slide 7: Comprehensive Service Offerings
7 Comprehensive Service Offerings Oncology Cardiology Physical Medicine* Radiology* Genetic Testing* Advance Care Planning Complex Care (aka Evolent Care Partners) * Denotes specialty added or expanded through pending acquisition of NIA / Magellan Specialty 1 2 3 4 Depth of offering: Advanced clinic
Slide 8: Evolent Health's Two Business Models Make For Compelling Combination
8 Evolent Health’s Two Business Models Make For Compelling Combination Performance Suite Technology and Service Suite Fee Model Applicable Solutions Mature1 Flow- through Margins Pro Forma Share of Company Adj. EBITDA2 Future Growth ✓ Recurring Capitation Fees ✓ “Risk-Based” ✓ Recurring Technology,
Slide 9: Agenda: Investment Considerations
9 Year in Review and Drivers for 2023 Evolent Health Overview AGENDA Investment Considerations
Slide 10: Why Evolent Health? Investment Considerations
10 Why Evolent Health? Investment Considerations Execution Drives Shareholder Value Efficient Capital Allocation Strong and Expanding Margins Compelling Long-Term Organic Growth Commitment to Shareholder Value
Slide 11: Compelling Long-Term Organic Growth
11 Investment Considerations Approximately 37% Revenue CAGR1 Since Q4 2019 • 2022 outlook: $1.33B-$1.35B of total revenue • Revenue growth driven by new customer additions and growth with existing customers • Average revenue renewal rate of approximately 110% since 20192 • Significant expansion oppo
Slide 12: Large Growth Opportunity Within Current Base of Customers
12 Large Growth Opportunity Within Current Base of Customers Source: Evolent Health, Inc. Company estimates. Note: Total Addressable Markets calculated using total customer membership and average Evolent PMPM fees Cross-Sell Opportunity Significant… … with Low Penetration in Top Customers $4B $16B $
Slide 13: Announcing the Expansion of Humana Partnership
13 Announcing the Expansion of Humana Partnership; With the Goal of Accelerating Improved Cancer Care for Health Plans Under the Performance Suite in Key States Tech and Services (Saas) Relationship Expansion to Performance Suite (Risk) Relationship Announced January 2023 Expanding Humana Oncology W
Slide 14: Mix Shift, Scale, Operating Leverage Drive Margin Expansion
14 Investment Considerations Mix Shift, Scale, Operating Leverage Drive Margin Expansion • Reiterating 2022 outlook: $98-$103M of Adjusted EBITDA, implying a 7.4% Adjusted EBITDA margin at the midpoint1 • Adjusted EBITDA and cash flow positive with multiple opportunities for growth and expansion • M
Slide 15: Performance Suite Partnership Offers Immediate and Ongoing Savings
15 Performance Suite Partnership Offers Immediate and Ongoing Savings Source: Evolent Health, Inc. Company estimates. Note: Assumes initial savings opportunity of 6-10% based on historical experience. Actual PMPM rate and savings opportunity varies by line of business and population specifics. Addit
Slide 16: Clinical Value Drives Performance Suite Margin Expansion
16 Clinical Value Drives Performance Suite Margin Expansion Use genetic testing and comprehensive imaging to target use of PD-1 inhibitor therapeutics Where clinically indicated, round down therapeutic dosage to minimize toxicity and reduce cost Advisory Board $ Practicing Physicians Physician Trade
Slide 17: Efficient Capital Allocation
17 Investment Considerations Disciplined use of cash flow generates value for shareholders Efficient Capital Allocation • Announced two financially attractive acquisitions accelerating our value-based specialty care leadership: • NIA, a specialty benefit management organization (pending) • Diversifi
Slide 18: Plan to Efficiently De-Lever Post Close of NIA Acquisition
18 Deal Close 12/31/2023 12/31/2024 Plan to Efficiently De-Lever Post Close of NIA Acquisition Capital Allocation Priorities Enhancing Core Business through Product Investment • Ensuring our products and teams are world- class, enabling strong customer satisfaction, retention, growth and profitabili
Slide 19: Agenda: Year in Review and Drivers for 2023
19 Year in Review and Drivers for 2023 Evolent Health Overview AGENDA Investment Considerations
Slide 20: Year in Review: 2022
20 Year in Review: 2022 Compelling Organic Growth Strong and Expanding Margins Accretive Capital Allocation • Announced 13 new operating partners, exceeding our original target of 6 to 8, including a broad group of new logos as well as geographic expansion into new states and upsell into the perform
Slide 21: Building On A Strong Foundation: 2023 Outlook
21 • Evolent 2023 Revenue Growth expected to exceed 25% before impact of NIA1 • Anticipate continued Adjusted EBITDA2 margin expansion in 2023 vs. YTD 9/30/2022 results (before expected accretive impact of NIA) • Evolent + NIA expected to generate cash flow in excess of $120M in 2023 before interest
Slide 22: Target Path to Tripling Adjusted EBITDA over the Next Two Years
22 Target Path to Tripling Adjusted EBITDA over the Next Two Years 2022E Adjusted EBITDA Exiting 2024 Run-rate Target Adjusted EBITDA Current Business IPG (5 months) Core Business: previously articulated range of $150-200M Exiting 2024 Run-rate Target Adjusted EBITDA is ~$300M NIA Acquisition / CNC
Slide 23: Appendix
23 Confidential – Do Not Distribute Appendix
Slide 24: Non-GAAP Financial Measures
24 Non-GAAP Financial Measures In addition to disclosing financial results that are determined in accordance with GAAP, we present and discuss certain non-GAAP financial measures, as supplemental measures to help investors evaluate our fundamental operational performance. Net Debt is defined as Tota
Slide 25: Appendix A – Adjusted EBITDA Reconciliation
25 Appendix A – Evolent Health, Inc. Adjusted EBITDA Reconciliation Consolidated Guidance ($ in millions) LTM Q3 2022 LTM Q3 2021 2022 Net loss attributable to common shareholders of Evolent Health, Inc. $(13.5) $(46.6) $(13.3) Net loss margin (1.1)% (5.1)% (1.0)% Less: Interest income 0.9 0.3 1.0 I
Slide 26: Appendix B – Revenue from Divested Assets
26 Appendix B – Revenue from Divested Assets ($ in millions) Q3 2022 Q4 2019 Total revenue $352.6 $205.0 Less: Divested assets - 68.0 Subtotal 352.6 137.0 Eliminations 0.3 (0.2) Total revenue from divested assets $352.9 $136.8 1) Eliminations represent revenue that Evolent Health Services charges Ne
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