Teladoc Health, Inc. · NYSE:TDOC
Teladoc Health — Merger or Acquisition (September 2020)
36 slides from Teladoc Health's merger presentation, Sep 3, 2020
Slide 1: Transforming Healthcare, Across the Continuum of Care
Transforming Healthcare, Across the Continuum of Care September 2020
Slide 2: Creates the global leader in virtual care
Creates the global leader in virtual care across primary, ambulatory, acute, complex and chronic care Positions combined company to lead the market and set the pace for a rapidly evolving healthcare industry Establishes a consumer - centric, whole - person virtual care solution, driving better care
Slide 3: Teladoc Health Annual Revenue
Teladoc Health Annual Revenue (in Millions) $ 988 (midpoint of guidance) New Clinical Services New Payment Models New Care Settings 2015 IPO Year 2016 2017 2018 Future 2019 2020E Teladoc Health 67% CAGR 2015 – 2020 Since the 2015 IPO, Teladoc Health Has Invested $2B Acquiring Companies and Launched
Slide 4: Teladoc Health product and market expansion timeline
Clinical Service Distribution Channel Product Enhancement New International Markets IPO 2015 Dermatology Hospital & Health System Text - based Mental Health DTC 2017 Caregiver Expert Medical Services Device Integration 2018 Global Care International DTC Partner Mental Health Navigator Back - care ML
Slide 5: Teladoc Health's Industry-Leading Differentiated Assets & Capabilities
Teladoc Health’s Industry-Leading Differentiated Assets & Capabilities at Scale Member engagement surtapacity phpiion networks [a Q Cricalquatty Gobel disbuon pri Tech-enabled ops aw? ‘Scale-driven RO! at scale Data & analytics ‘Comprehensive product offering Teladoc. i Livongo’ eres Han Ae een
Slide 6: Livongo overview and consumer-first digital health experience
• Uses technology to transform the experience of living with a chronic condition • Creates a consumer - first, data - driven digital health experience that is easy to use and puts the consumer in charge • Translates its deep consumer data into actionable and timely signals to improve member outcomes
Slide 7: Strategic Rationale: Empowers Members and Strengthens Relationships
Strategic Rationale 1 55 % Improvement in DASS Behavioral Health Diabetes Hypertension Weight Management 0.8 pts Lower HbA1c 7.3 % Avg weight loss 10 mmHg Lower Systolic BP Unique model of care that leverages digital, self - management capabilities through nudges 24/7 remote monitoring Personalized,
Slide 8: Select Livongo Value Metrics
Average Member Net Promoter Score (NPS) 1 + 64 125 % 2Q20 YoY Revenue Growth 113 % 2Q20 YoY Growth in Diabetes Members Client Retention Rate 1 94 % 75 % 2Q20 YoY Client Growth $ 109 M Record EVA in 2Q20 $ 1,908 Per Participant per Year Gross Medical Savings in Diabetes 2 Select Livongo Value Metrics
Slide 9: Creating an Entirely New Category of Whole-Person Virtual Care
We are Creating an Entirely New Category of Whole - Person Virtual Care at a Time When the World Needs and Demands It 9 1 B+ virtual care visits are expected to occur in 2020 1 $ 250 B+ of current U.S. healthcare spend could be virtualized 2 38 %+ CAGR in telehealth market over the next five years 3
Slide 10: Virtual care demand from consumers, payors and providers
For Consumers 76% now interested in using virtual care, as compared to 11% prior to COVID - 19 1 33% would leave current physician for a provider who offered telehealth access 2 Nearly 2/3 want virtual care doctor to partner with existing in - person doctor 3 For Payors / Employers 80% of large empl
Slide 11: Growth strategies enhanced by Livongo
Expand footprint and distribution Clinical services innovation Accelerate consumer adoption Broaden role in healthcare delivery = STRATEGIES ENHANCED BY LIVONGO Existing distribution channels Product cross - sell/upsell Government programs Direct - to - consumer Global markets leadership Virtual pri
Slide 12: Compelling Partner for Clients in a Rapidly Evolving Industry
The Combined Company Will Be a Compelling Partner for Clients During an Unprecedented Market Moment in a Rapidly Evolving Industry 60 Of top 100 hospitals and health systems using Teladoc and Livongo solutions 750 M Livongo digital interactions by the end of 2Q20 10 M Expected Teladoc visits in 2020
Slide 13: Pre-synergy growth and synergy targets
40 % – 45 % Pre - Synergy YoY Revenue Growth in 2021 30 % – 40 % Pre - Synergy ’20 – ’23 Revenue CAGR 15 % – 18 % Pre - Synergy Adj. EBITDA Margin by 2023 200 – 300bps Annual Expansion $ 100 M Run - rate Revenue Synergies by 2022 $ 500 M Run - rate Revenue Synergies by 2025 $ 60 M Run - rate Cost Sa
Slide 14: Addressable markets by service line
$ 20 B $ 15 B $ 28 B $ 11 B $ 28 B $ 19 B General Medicine Behavioral Health Expert Med Hospitals and Health Systems Diabetes Hypertension 1.25 B annual visits 1 33 % treatable via telemedicine 2 $ ~50 average visit fee 216 M annual visits 4 80 % treatable via telemedicine 2 $ ~90 average visit fee
Slide 15: Full Spectrum of Health Care
15 Full Spectrum of Health Care Coordination Complex Care Chronic Care Specialty Care Wellness & Prevention Mental Health Care Primary Care Acute Care
Slide 16: Claire's Health Journey
CLAIRE’S HEALTH JOURNEY Living with Hypertension Using connected blood pressure monitor and cuff, Claire and her care team monitor her hypertension Annual exam with Teladoc primary care physician; discusses medical history, nutrition and stress Teladoc physician consults with Claire, reviews lab res
Slide 17: Integrated user experience
Easy to navigate user interface Real - time biometrics Data - driven recommendations Automated workflows silence the healthcare noise — resulting in less time clicking and more time connecting — creating an experience better than an in - person visit
Slide 18: Competitive Differentiation Creates First Integrated Virtual Delivery System
Market leading distribution and position Proven total - cost - of - care impact, with demonstrated quality and outcomes Leading consumer engagement and marketing approaches Scalable, technology - enabled platform Largest virtual care delivery network across 450+ specialties Global reach, with custom
Slide 19: Teladoc Health + Livongo combined data scale and insights
Teladoc Health + Livongo Unmatched combination of scale and insights, driving better experiences and results for individuals: Better engagement (right place, time, modality) N=1 experiences and recommendations Unique client insights Increased efficiency via multichannel outreach Improved outcomes He
Slide 20: OpEx and revenue synergies
OpEx Reduction Reduce run - rate costs by combining the two entities $ 60 M in annual OpEx synergies by 2022 $ 500 M in annual revenue synergies by 2025 ~55 % Cross - sell ~25 % Referrals ~20 % International sales Cross - Sell of Existing Products • Sell Teladoc and Livongo products across existing
Slide 21: Cross-sell: How We Help Each Other
How We Help Each Other Teladoc brings a large, diverse customer base including channels into SMB, MMC, and HHS (care delivery) markets Livongo adds complementary client relationships with Fortune 500 buyers and channel partners Together, Livongo and Teladoc offer an unmatched product suite that supp
Slide 22: The Market is Already Excited About Our Combined Solution
• C ross - selling through existing reseller agreement between Teladoc and Livongo • Intense integration planning to develop best - in - front approach for strategic relationships, joint - marketing materials, and sales education • Teladoc and Livongo are separate companies until closing, with c lea
Slide 23: Referrals: How We Help Each Other
23 Teladoc brings its existing base (and the millions of interactions it drives) as a foundation for referrals into Livongo products Teladoc brings an extensive general medicine and specialist provider network that can provide clinical guidance, decision - making, and prescribing for Livongo patient
Slide 24: Umar and Ana patient examples
Umar “I feel stressed and anxious and I don’t know why, or how to stop it.” Asks for help managing stress during virtual PCP appointment Provider suggests behavioral health support, sets up a therapist visit Pre - visit, receives a nudge to complete stress management exercise Completes exercise and
Slide 25: International sales: How We Help Each Other
Teladoc brings deep international sales relationships driving 16% of LTM revenue, focused on markets with high - demand for best - in - class, innovative tech solutions Teladoc brings local knowledge and supporting infrastructure to address international regulatory requirements for Livongo market en
Slide 26: International expansion markets
Australia & Canada Expand in large English - speaking markets with existing Teladoc sales channels and relationships Europe Leverage Teladoc sales relationships and existing compliance infrastructure to accelerate market entry Southeast Asia Target English - speaking markets with sophisticated payor
Slide 27: Next-Gen Specialist Care, Virtual Primary Care 2.0, Hospital-at-Home
Next - Gen Specialist Care Virtual Primary Care 2.0 Hospital - at - Home Combine medical specialty and chronic condition services to expand offerings and cover new consumer needs with a full - stack solution With integrated virtual primary care and always - on chronic condition support, take risk -
Slide 28: Multi-faceted integration plan
Confident in ability to execute a multi - faceted integration plan: Undergoing a rigorous planning process Leveraging lessons learned and best practices from many previous integrations Building on a strong foundation of complementary cultures and shared values • Develop organization structure, retai
Slide 29: Empowering more people to live better and healthier lives
Empowering more people to live better and healthier lives Making meaningful progress on addressing long - standing disparities as chronic conditions disproportionately impact underserved communities Telemedicine combined with the increase in remote monitoring devices promise real strides forward in
Slide 30: Delivers significant financial benefits and value creation
30 • Delivers significant financial benefits and value creation for shareholders through substantial revenue synergy opportunities and cost savings • Provides consumers with a single access point for whole - person care regardless of clinical situation, driving better health outcomes, lower costs an
Slide 31: Note on unaudited financial projections
This presentation includes unaudited financial projections for both Teladoc Health and Livongo with respect to revenue, adjusted gross profit and adjusted EBITDA. Neither Teladoc Health’s independent registered public accounting firm, nor any other independent accountants, have audited, reviewed, co
Slide 32: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward - Looking Statements This communication contains forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 199 5, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
Slide 33: Footnotes and sources
Page 7 1. Demonstrated at Fortune Brands after their Members spent 2 years enrolled in the Livongo for Diabetes solution over a 6 - week period in individuals with BP of at least 140/80 in a peer - reviewed study prepared by Livongo and presented to the American College of Cardiology in April 2019;
Slide 34: Footnotes and sources (continued)
Page 21 1. Example synergy calculation approach includes cross - sell of Livongo products into Teladoc only and does not account for the full ~55% of 2025 revenue synergy value attributed to the overall cross - sell opportunity described on page 20. Does not include cross - sell of Teladoc products
Slide 35: Appendix
COCCCSCSO COCCCSCS GCOCCGCeE CGCOCOGeE GCOCOSCe COCCCSCS COOCCCCS Teladoc. HEALTH APPENDIX
Slide 36: Teladoc Financial Projections
Year Ending December 31 ($ in Millions) 2020 1 2021 2022 2023 Teladoc Financial Projections Total Revenue $988 $1,338 $1,739 $2,192 Adj. Gross Profit 2 609 853 1,116 1,397 Adj. EBITDA 3 89 154 244 362 Teladoc Management - Adjusted Livongo Projections: Total Revenue $351 $567 $892 $1,257 Non - GAAP G
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