Teladoc Health, Inc. · NYSE:TDOC
Teladoc Health — Merger or Acquisition (June 2017)
22 slides from Teladoc Health's merger presentation, Jun 19, 2017
Slide 1: To Acquire Best Doctors
To Acquire Creating the first and only global, comprehensive virtual healthcare delivery platform 1 June 19, 2017
Slide 2: Today's Presenters
Today’s Presenters Jason Gorevic Mark Hirschhorn Peter McClennen President & CEO COO & CFO CEO, Best Doctors 2
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation contains, and our officers may make, “forward-looking” statements that are based on our management’s beliefs and assumptions and on information currently available to management. These forward-looking statements include, without limitation, information concern
Slide 4: Highly Strategic Combination Delivers Transformative Virtual Care Delivery Solution
Highly Strategic Combination Delivers Transformative Virtual Care Delivery Solution Creating the central, trusted source for consumers to find resolution to the broadest array of healthcare needs, on their terms New paradigm for how patients access virtual care by delivering healthcare’s first sin
Slide 5: Teladoc at a Glance
Teladoc at a Glance 1 Broad telehealth capabilities… 2 Surround sound member engagement… In the Media General Medical Behavioral Health In the home Pediatrics Capability Psychiatry Caregiver Add-on Counseling Members Social Media In the inbox Dermatology Value-added Offerings Sexual Health Lab testi
Slide 6: Introducing Best Doctors
Introducing $92M • Founded in 1989 by Harvard Medical School professors and headquartered in Boston, MA Revenue in 2016(1) • World’s leading medical consultation company focused on improving health outcomes for the most complex, critical and costly medical issues by providing 50K+ access to 450 spec
Slide 7: Best Doctors Product Portfolio At A Glance
Best Doctors Product Portfolio At A Glance Source: Best Doctors management data. 7
Slide 8: Solutions for Complex Medical Issues and Use Cases
Solutions for Complex Medical Issues and Use Cases Top Reasons Members Use Best Doctors: Need help deciding among multiple 32% treatment options 8% No diagnosis 26% Symptoms not improving 5% Skeptical about doctor’s advice 24% Question the need for surgery 5% Don’t understand diagnosis 37% 69% Perce
Slide 9: Complementary Claims Savings-Based, ROI-Driven Value Proposition
Complementary Claims Savings-Based, ROI-Driven Value Proposition 97% Client retention rate Musculoskeletal Cancers Heart Diseases Gastrointestinal Lower back Prostate Cardiac dysrhythmias Disorders 98% Cervical spine Breast Coronary artery disease Inflammatory bowel disease Knee or hip replacement C
Slide 10: Backed by Clinical Quality and Global Medical Expert Network
Backed by Clinical Quality and Global Medical Expert Network 50K+ Medical Experts 450+ Medical Specialties/ Subspecialties Certified and Polled Top-Quality Physicians Source: Best Doctors management data. 10
Slide 11: Best Doctors' Complementary Distribution Channels and Blue Chip Client Base
Best Doctors’ Complementary Distribution Channels and Blue Chip Client Base Employer – PEPM Model Global Life Insurance / Fin. Services Health Plans / ACOs – Worker’s Compensation – - PMPM Folded into Policy Premiums Case Rate Case Rate ~40% of Total Revenue from International Operations 11 Source:
Slide 12: Resulting in Logical Mutual Distribution and Cross-Selling Opportunities
Resulting in Logical Mutual Distribution and Cross-Selling Opportunities 12
Slide 13: Teladoc and Best Doctors Together Can Tackle the Full Spectrum of Medical Needs
Teladoc and Best Doctors Together Can Tackle the Full Spectrum of Medical Needs My husband has received a serious diagnosis. Is the hospital’s diagnosis and plan right? What will recovery be like from hip and knee procedure? Should I have it? Complexity, Cost I want to address my anxiety Is this the
Slide 14: Aided by Complementary Brand Attributes
Aided by Complementary Brand Attributes Experienced Convenient Dependable Modern Quality Innovative Trustworthy Accessible Propelling adoption of virtual care 14
Slide 15: End-to-End Value Proposition to Clients and Members Across Medical Needs
End-to-End Value Proposition to Clients and Members Across Medical Needs Illustrative combined platform and member experience 15
Slide 16: High Degree of Operational Fit and Potential Efficiencies
High Degree of Operational Fit and Potential Efficiencies Highly Complementary and Strategic Capabilities… Clinical Clinical Service / Admin Operations (Deep and broad internal clinical (Lower acuity primary care, (High volume member services expertise, nationally recognized Pediatrics, Behavioral)
Slide 17: Transaction Terms
Transaction Terms Key Terms: • Purchase price of $440 million; consideration consisting of: • $375 million of cash • $65 million in Teladoc stock Transaction • $360 million of committed debt financing Structure: • Cash portion of consideration will be funded by cash on hand and committed debt financ
Slide 18: Pro Forma Financial Profile
Pro Forma Financial Profile Q1 2017 combined annualized revenue of $266M1 Q1 2017 pro forma gross margin of 69%2 Reaffirm Q4 2017 Adjusted EBITDA Break-Even Target Independent of Incremental, Positive Contributions from Acquisition Note. Updated 2017 full-year guidance expected to be provided as par
Slide 19: Closing Remarks
Closing Remarks Highly strategic acquisition accelerates Teladoc’s vision of becoming the definitive single solution for virtual delivery of comprehensive connected care for our clients and members UNLOCKS attractive market for higher dollar critical care ADDITIVE clinical capabilities leverageable
Slide 20: Appendix
Appendix 20
Slide 21: Best Doctors Historical Financial Performance
Best Doctors Historical Financial Performance Revenue(1) ($M) Gross Margin(1) $95 $92 64% 63% 57% $81 2015 2016 Q1 2017 2015 2016 Q1 2017 Annualized 2016 Revenue Mix Adjusted EBITDA(1) ($M) $8.9 $6.5 40% 60% Domestic 2015 2016 Q1 2017 International Annualized ($13.2) (1) Metrics adjusted to exclude
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures Best Doctors uses EBITDA and Adjusted EBITDA, which are Non-GAAP measures, to analyze its operating performance. Because calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing Best Doctors’ non-GA