Lifemd, Inc. · NASDAQ:LFMD
Lifemd — Investor Day (February 2022)
31 slides from Lifemd's investor day presentation, Feb 22, 2022
Slide 1: Analyst & Investor Day
LifeMD’ Analyst & Investor Day February 22, 2022
Slide 2: Important Cautions Regarding Forward-Looking Statements
Important Cautions Regarding Forward-Looking Statements This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended; Section 21E of the Securities Exchange Act of 1934, as amended; and the safe harbor provision of the U.S. Private
Slide 3: Business Overview
Business Overview
Slide 4: A rapidly growing direct-to-patient telehealth company
A rapidly growing direci-to-patient eo | telehealth company leveraging deep so expertise in medicine, technology and anytime) anywhere marketing to make healthcare more ‘ accessible, affordable and convenient @ 50 State Digital Nationwide Pharmacy Provider Network g 500K+ Patients © Diversified & Cu
Slide 5: Our Differentiators Continue to Propel Our Growth
Amazing Providers Our affiliated PC's recruit and retain the best doctors and healthcare professionals in the world. Technology that Scales Our full-stack infrastructure enables scale and diversification into new clinical areas and partnerships. Our Differentiators Continue to Propel Our Growth "Se
Slide 6: LifeMD's Direct-to-Patient Healthcare Experience
LifeMD’s Direct-to-Patient Healthcare Experience Brand Discovery Diagnosis/Screening Virtual Consultation Personalized Treatment Patient views an online or Patient is screened via online An asynchronous or Patient receives personalized offline advertisement and visits intake form and pays for audio/
Slide 7: An End-to-End Telehealth Technology Platform
®@ A platform designed to accommodate a diverse portfolio of DTC telehealth offerings and primary care. Built to handle 50 state daily consult volume at scale @ without sacrificing quality of care or timely service. A mobile-first primary care platform enhanced by @ partnerships with Quest Diagnosti
Slide 8: Our Current Telehealth Portfolio
Our Current Telehealth : Meén‘siHealth Portfolio market size = Telehealth for men, including prescription and OTC R=X products for E.D., hair loss, and more. Hair Loss Telehealth for male and female hair loss, including SHAPIRO prescription and patented OTC products. Allergy & Asthma market size Per
Slide 9: Growth Strategy
Growth Strategy OBJECTIVE: $250-300 million in Revenue by 2025 with 25%+ Adjusted EBITDA Margins Grow Our Existing Direct-to- Patient Brands Scale Virtual Primary Care Eliminate Non-Core & Further Diversify Telehealth Execute Upon High Value B2B Pharma Partnerships Aggressively grow existing brands
Slide 10: Financials
Financials — }
Slide 11: Consistent and Aggressive Growth with Record Gross Margins
Consistent and Aggressive Growth with Record Gross Margins NET REVENUES AND GROSS MARGIN % $100.0 $92.9 82% $90.0 11 Consecutive 06 80% Gg Quarters of Sequential . 7 Revenue Growth $70.0 78% $60.0 $50.0 1a% 76% iV} 81% FY21E Gross $40.0 coud Margin % $6.7 74% $30.0 $20.0 $12.5 $30.6 72% 8G 173% Reve
Slide 12: WorkSimpli (non-core Subsidiary) Sale
va) = L 5 WorkSimpli (non-core Subsidiary) Sale LifeMD owns 85.6% of non-core subsidiary asset, WorkSimpli Rapidly growing direct-to-consumer work and document services company Over 100K active subscribers worldwide and $25 million of FY21 net revenue (+268% annual growth vs. FY20) Due to the non-co
Slide 13: Well Capitalized for Growth without Dilution
Well Capitalized for Growth without Dilution LifeMD remains on track to reach Adjusted EBITDA profitability by Q4 2022 and forecasts being well capitalized to do so Cash Balance as of Year End 2021 $40 million nD Estimated Potential Proceeds from WorkSimpli Sale (85.6%) $40-$80 million > ee #3 jecte
Slide 14: Highly Scalable Model with Significant Growth Potential and Strong Economics
Highly Scalable Mode! with Significant Growth Potential and Strong Economics $250-$300M ' Telehealth Only . ie i $200-$240M Lt . \ roms © Adjusted EBITDA 1 Ser, ISESIEM 1 4 Profitability by Q4 2022 Assumes WorkSimpli Ht : aaa) divested at end ~ ~ $142-$148M 1 of FY22 : \ : Gg 90%+ Recurring Revenue
Slide 15: Anchored by a Long-Term Self-Funded Cash Flow Model
Anchored by a Long-Term Self-Funded Cash Flow Model va) >E < a4) All Dollars in Millions 2022 2023 2024 2025 Adjusted EBITDA ($17) $13 $36 $60 Cash Flow from Operations ($17) $13 $36 $60 Less Capital Expenditures & Investing Activities ($15) ($20) ($25) ($30) Plus LifeMD Proceeds from WorkSimpli Sal
Slide 16: Driving Long-term, Profitable Growth from both Existing and New Brands
Driving Long-term, Profitable Growth from both Existing and New Brands $40-60M $250-300M peat Tne Bridge of Revenue from 2021 through 2025 oe 14 1 1 1 1 $40-60M irs roa $102-112M : ot bot $93 (25M) FY 2021 Consolidated Lost WorkSimpli _—_Lifestyle Healthcare Allergy, Asthma, New Virtual Primary Care
Slide 17: Diversifying Telehealth Revenue with Strong Unit Economics
Diversifying Telehealth Revenue with Strong Unit Economics FY21 Revenue by Category Non-core WorkSimpli; 27% wm Lifestyle Healthcare; 73% FY25 Revenue by Category m Lifestyle Healthcare; 62% = Virtual Primary care; 19% = Allergy, Asthma, New Indications; 19%
Slide 18: -_.
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Slide 19: Cleared provides personalized treatments for allergy, asthma, and immunology
Cleared provides personalized treatments for allergy, asthma, and immunology including in-home tests for both environmental and food allergies, prescriptions for allergies and asthma, and FDA-approved immunotherapies for treating chronic allergies. OK A first-in-class telehealth destination for oe b
Slide 20: Your One-Stop-Shop for Allergy, Asthma, and Immunology
Your One-Stop-Shop for Allergy, Asthma, and Immunology. Launched Launched February '21 November ‘21 We're fast evolving into a full-stack, personalized clearinghouse for every kind of treatment and patient need across the entire, broadening vertical. Seasonal allergies Food allergies Skin allergies
Slide 21: Two of the most prevalent chronic conditions
‘Two of the most prevalent chronic conditions The cost to society of allergy & asthma now exceeds and growing. Sources: ACAAY, 2021; AAFA, 2021 75M Americans suffer from allergy or asthma 115 days/ year that the avgallergy sufferer experiences symptoms 24M annual visits to the doctor for allergies o
Slide 22: Strategic Rationale
Strategic Rationale © Cleared has virtually treated 15,000+ patients, operates a 50-state physician and pharmacy platform, and has partnered with leading pharma companies © LifeMD has virtually treated 500,000+ patients, and has built a best-in-class telehealth technology and in-house direct-to- con
Slide 23: Deep Experience in Consumer Health, Pharma/Biotech, Venture, Tech, and Medicine
Deep Experience in Consumer Health, Pharma/Biotech, Venture, Tech, and Medicine Alex Mironov President, LifeMD © Former Chief Business Officer, Covis Pharma, Allergy & Respiratory Focus © 20+ years of leadership in corp biz, dev, M&A, licensing and operations © Led pharma transactions including MA,
Slide 24: Cleared Growth Strategy
Cleared Growth Strategy Two-pronged approach leveraging existing best-in-class telehealth platform and direct-to-patient capabilities. 3 Wo Pati B2B Pharma Partnership Agreements milecutc nations Market Opportunity: $6.6Bn of pharma industry spend on Market Opportunity: $13.5Bn of annual spend Gece
Slide 25: Deal Structure
Deal Structure Guaranteed Consideration Contingent (Earn-Out) Consideration © $460K at Closing Three-Year Expiration (thru Dec 31, 2024 to achieve) © $1,730,000 paid at one year anniversary of e $4.55M if $10M TTM Revenue achieved Closing © $9.1M if $20M TTM Revenue achieved © $9.1M if $35M TTM Reve
Slide 26: Virtual Primary Care
Slide 27: LifeMD VPC Overview
LifeMD VPC Overview 50-state, subscription based, cash pay virtual primary care offering 24-hour care team access (providers 8 AM — 11PM) 2 options at launch: $15/month + $49/visit, or $99/month unlimited Highly flexible, vertically integrated platform to enable partnerships Virtual care, diagnostic
Slide 28: What we treat
What we treat VPC Platform Overview @) Primary Care For your everyday needs. O Prescription refills © Bloodwork © Annual checkups O Health and wellness. Current Capabilities Planned Capabilities e 50-state routing and e In-home blood draw and @ scheduling platform sample collection Urgent Care . . I
Slide 29: The Cash Pay VPC Opportunity is Massive
The Cash Pay VPC Opportunity is \Viassive 53%+ of Americans are ona high @ Many younger Americans are uninsured deductible health plan (HDHP) and only require episodic/urgent care In 2020, the average deductible in the U.S. was $1,945 for an individual and $3,722 for a family? LifeMD’‘s virtual prim
Slide 30: Growth Strategy
Growth Strategy Cross Sell Existing Patients DTC Campaigns B2B/Partnering e 30,000+ new patients per month across LFMD brands e Majority on HDHPs, uninsured, or don’t have a PCP © Offer VPC at checkout, post sale, or via call center e Lowest acquisition cost, and drives overall LTV N 1 in 3 American
Slide 31: Contact
Marc Benathen LifeSci Advisors LifeMD Partnerships Eric Herman marc@lifemd.com investors@lifemd.com partnering@lifemd.com eherman@kiwvit.com LifeMD