Benefytt Technologies — Health Insurance Innovations — Investor Presentation (August 2019)
27 slides from Benefytt Technologies's investor presentation, Aug 20, 2019
Slide 1: Investor Presentation August 2019
HEALTH® INSURANCE INNOVATIONS Investor Presentation August 2019
Slide 2: Disclosure
Disclosure Certain statements included herein, including those that express management's expectations or estimates of Health Insurance Innovations, Inc.’s (“HIIQ”) future performance, constitute “forward- looking statements” within the meaning of applicable securities laws. These statements may incl
Slide 3: Investment Highlights
Investment Highlights Fulcrum at the center of the individual insurance market, connecting carriers, distributors, and consumers Proprietary cloud-based technology platform enables distribution of affordable health and life insurance products Underpenetrated, growing market opportunity in $22B Non-A
Slide 4: The HIIQ Solution
The HIIQ Solution Life / Supplemental Medicare / Discount Benefit Plans Advantage * Guaranteed * Optimize Consumer * Medically » Value-Added Acceptance or Engagement Underwritten Insurance / Discount Medically Underwritten Capabilities Benefit Products: * Most Similar to ailelifeurance ° Event-Based
Slide 5: Significant Investments in the Medicare Market
Significant Investments in the Medicare Market Assembled an End-to-End Solution to Serve the Medicare Market at Scale Together Health ¢ — dune 2019 acquisition * — Focused on consumer acquisition and engagement in the Medicare market * — Generates over | million Medicare inbound calls / consumer eng
Slide 6: Medicare Market Overview
Medicare Market Overview The Medicare Market is being driven by strong demographic tailwinds ¢ — Medicare Eligibles are expected to increase from 60 Million in 2018 to 77 million in 2028 ° 76.7M aml 60.0M 45.5M HD WD AN AY AD nme OO VD 1D AD GN Gh o> gh AO qo Ah ad PP VO MY MY WP HE VO VO Ah WS 2 PD
Slide 7: Significant Market Opportunity
Significant Market Opportunity Meaningful Growth in MA Beneficiaries Individual Health Insurance Market 25 $87 Billion of Premium' @ 75% ACA Major Medical @ 25% Other Options 20 : prc 5 ra a0'® 2 0 | $21.8 Billion Opportunity Ra ON AD Medicare Advantge Enrollees 2S SO nm KO WO A 9D Non-ACA Market So
Slide 8: Best-In-Class IFP Partners/Customers
Best-In-Class IFP Partners/Customers Carriers and Benefit Partners AXIY _ © Teladoc. faaukanes HEALTH ri Nationwide yey Careington ASPEN a ds ZVERESN. 5 LIFESHIELD Standard PM Life and Accident Insurance Company uy INSURANCE ; INNOVATIONS
Slide 9: Customer Concentration
Customer Concentration Based on Revenue Six months | Nine months Six months ended June ended Sep Year ended ended June 30, 2018 30, 2018 2018 30, 2019 Six months Six months ended ended June 30, June 30, 2018 2019 Chubb 40% 39% Lifeshield National Insurance Company 27% American Financial Security Lif
Slide 10: HIIQ Platform Enables Consumer Choice and Plan Design - IFP
HIIQ Platform Enables Consumer Choice and Plan Design - IFP Integrates Carriers, Distributors and Consumers on Proprietary Technology Platform Consumer: Consumer Engagement: Searches for insurance Cultivate leads for online agents and insurers v i ' aSramonjsmcs ' . ' ae Independent, Third-Party 7 C
Slide 11: Proprietary Technology Platform - IFP
Proprietary Technology Platform - IFP Critical Role Connecting Carriers, Distributors and Consumers Plug-and-play technology backbone allows for rapid, scalable growth Key Attributes Extensive and Growing Distribution Network ¥ Quote-Buy-Print (ES) Tracitional Channels [4J e-commerce ¥ Automated Und
Slide 12: Long-standing Commitment to Regulatory Compliance - IFP
Long-standing Commitment to Regulatory Compliance - IFP Multi-pronged Regulatory Compliance Approach Augments In-house Capabilities to Drive: « Fewer DOI Complaints ¢ Greater Customer Satisfaction ¢ Higher Lifetime Value and Revenue Health Insurance Innovations In-house Compliance Team $ ¢ ¢ ¢ Ff F
Slide 13: Dedicated to Exceptional Customer Service - IFP
Dedicated to Exceptional Customer Service - IFP Dedicated Infrastructure to Support Best-in-Class Member Experience Dedicated HIIQ Customer Service Reps... ... Delivering Best-in-Class Results Average Speed to Answer @ Customer Service 4.6 Seconds ® Support and Retention 1.3 Million Calls Handled +1
Slide 14: Streamlined Customer Experience - IFP
Streamlined Customer Experience - IFP °° MyBenefitsKeeper is a fully integrated consumer facing application = to manage member policy billing, and provide access to plan MyBenefitsKeeper documents and services via member portal Key Attributes Interface Built for Today’s Insurance Consumer v Purchase
Slide 15: Our Philosophy & Corporate Responsibility
Our Philosophy & Corporate Responsibility Our Devotion ta Community At HIID, we believe that good health, giving back, and peace of mind are the cornerstones of prosperity. We are fortunate and grateful for our success. Dur foundation is about giving back to the most vulnerable in our local communit
Slide 16: Long-Term Growth Strategy
Long-Term Growth Strategy mm | HEALTH” 4 INC URARCE ‘Midpoint of guidance range 16 | INNOVATIONS
Slide 17: New Initiatives
New Initiatives Growing Life Insurance Market Life Insurance Market * — Increasing focus on our Life Insurance Market. Adding more robust products to our portfolio. + — Utilize existing Distribution Channels * e-commerce focus ¢ — MBK allows for greater interacting with consumers, enhancing persiste
Slide 18: New Initiatives
New Initiatives Our Products Meet Spanish Speakers Needs More than 25M people in the US have limited English proficiency 407s - 507% of this group is uninsured We meet their needs with... Spanish speakers’ barriers to + Affordable coverage for accidents and accessing health insurance: illness * — Ci
Slide 19: Track Record of Success With Solid Growth Trajectory
Track Record of Success With Solid Growth Trajectory Revenue Adj. EBITDA $500 san een $80 ae $400 va $350 ge _ § piri $60 300 < $50 Ce $250 ~~ $200 $40 SS $185 NN $150 $30 $100 $20 $50 i : $10 - $0 =e $0 oS 2015 2016 2017-2018 2019E 2015 2016 «= 2017._—=S «2018 += 2019 Ad EBITDA 6 3% 15.2% 18.3% 16.
Slide 20: Expected 2019 Quarterly Seasonality
Expected 2019 Quarterly Seasonality Revenue 19% 13% ~20% ~48% Adjusted EBITDA 11% 16% Io ~66% + Majority of revenue is recognized in the quarter the policy is written * 3Q includes cost to ramp up production prior to open enrollment period + 4Q includes the open enrollment periods for IFP and Medica
Slide 21: 2019 Guidance
2019 Guidance 2018 Actual | 2019 Outlook’ | YOY Increase? Revenue $351.1 million $450-$460 Million 30% Adjusted EBITDA $59.4 million $82-$87 million 43% Adjusted Net Income per Share $2.60 $4.00-$4.25 59% ™@ 8 | HEALTH” INSURANCE 1. Guidance as of August 5, 2019 fel INNOVATIONS 2. Based on the midpo
Slide 22: Investment Highlights
Investment Highlights Fulcrum at the center of the individual insurance market, connecting carriers, distributors, and consumers Proprietary cloud-based technology platform enables distribution of affordable health and life insurance products Underpenetrated, growing market opportunity in $22B Non-A
Slide 23: Appendix
™@ 8 | HEALTH” INSURANCE INNOVATIONS Appendix 23
Slide 24: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Reconciliation of Net Income to EBITDA and Adjusted EBITDA Reconciliation of Net Income to EBITDA and Adjusted EBITDA (unaudited) (S in thousands) Year Ended December 31, 2015 2016 2017 2018 2019E Net income $ 1465 $ 13.109 $ 26491 $ 18964 $ 24,300 Interest expense (income) (22) 61 (19) 25 5.100 Dep
Slide 25: Reconciliation of Net Income to Adj. Net Income per Share
Reconciliation of Net Income to Adj. Net Income per Share Reconciliation of Net Income to Adjusted Net Income per Share (unaudited) (S$ in thousands except per share data) Year Ended December 31, 2015 2016 2017 2018 2019E Net income $ 1465 $ 13,109 $ 26491 $ 18964 $ 24300 Interest expense (income) (
Slide 26: Financial Footnotes
Financial Footnotes EBITDA is defined as net income before interest. income taxes and depreciation and amortization. We have included EBITDA inthis report because itis a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, to
Slide 27: Financial Footnotes Continued
Financial Footnotes Continued Adjusted net income per share is computed by dividing adjusted net income by the total number of weighted-average diluted Class A and weighted-average Class B shares of our common stack for each period, We have included adjusted net income per share in this report becau
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