Teladoc Health, Inc. · NYSE:TDOC
Teladoc Health — Merger or Acquisition (August 2020)
19 slides from Teladoc Health's merger presentation, Aug 5, 2020
Slide 1: Teladoc & Livongo: Setting a new standard for healthcare
Teladoc. & Livongo Setting a new standard for the delivery, access and experience of healthcare August 5, 2020
Slide 2: Cautionary Note Regarding Forward-Looking Statements
NOTICE Cautionary Note Regarding Forward-Looking Statements This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934
Slide 3: Merger Consideration, Ownership, Management & Board, Closing
• The transaction values Livongo at approximately $18.5 billion, including Teladoc’s assumption of approximately $550 million in Livongo convertible debt Merger Consideration • $158.98* per Livongo share in stock and cash, comprised of 0.592x TDOC shares and $11.33 in cash per LVGO share • TDOC shar
Slide 4: Combined company key metrics and rationale
$1.3Bn Combines two highly Creates first-of-its-kind complementary pioneers Significantly accelerates Combined 2020 Pro “whole-person” care that redefine virtual care, Teladoc’s vision to create a forma Revenue offering that will digital health and seamless continuum of virtual care across one platf
Slide 5: Benefits for consumers, payors, employers, providers and shareholders
Personalized, technology-enabled longitudinal care that improves Consumers health outcomes and elevates the consumer experience around the world A full range of integrated virtual care services improving access, Payors, Employers, Providers driving better outcomes, and lowering costs Significant str
Slide 6: A Meaningful Step Forward in Our Vision of True Virtual End-to-End Healthcare
A Meaningful Step Forward in Our Vision of True Virtual End- to-End Healthcare * Consumer-centric, single access point to a full spectrum of integrated virtual care services, spanning primary to chronic to ambulatory care Center of excellence * Uniquely able to: * Diagnose and treat « Use Teladoc He
Slide 7: Leader in the virtual care marketplace / Livongo chronic conditions leader
✓ Leader in the virtual care marketplace providing ✓ Leading virtual care provider focused on the the most comprehensive virtual care solution management of chronic conditions ✓ Global leadership position across distribution ✓ Flagship solutions in diabetes management, with channels others including
Slide 8: Expand footprint and distribution; clinical services; consumer adoption
Expand footprint Clinical services Accelerate consumer Broaden role in and distribution innovation adoption healthcare delivery ✓ Existing distribution ✓ Virtual primary care ✓ Integrated, ✓ Health system channels intuitive consumer use cases ✓ Integrated experiences ✓ Product cross behavioral ✓ Ins
Slide 9: Care across wellness, chronic, mental health, specialty and acute care
Gain advice on a diagnosis, Complete regular screenings treatment plan, or surgery from WELLNESS and improve nutrition, COMPLEX world-renowned specialists AND exercise, and well being CARE PREVENTION Take charge of health MENTAL Address stress, anxiety and challenges with monitoring CHRONIC other co
Slide 10: Care settings and providers across the care continuum
Experts Hospital ED Specialists Ambulance Post-acute Primary Care Physician Physician office Retail clinic Nurses & Therapists Pharmacy Coaches Worksite Digital Home Therapeutics
Slide 11: Wellness & prevention, refer & coordinate, monitor & manage
WELLNESS & PREVENTION • In-depth annual exams: biometrics, labs, screenings and preventative care REFER & COORDINATE • Personalized wellness plans with counseling • Guide to high-quality, in-network patient education and patient education information information specialists for in-person care • Data
Slide 12: Chronic Conditions; Why Livongo
Chronic Conditions Why Livongo Current Health System Massive, Under- Shared Culture and Sophisticated AI+AI Engine Delivery Shortcomings Penetrated Market Common Mission Empowering a Consumer- Centered Care Experience Clinical Need Drives Market Leadership: First High Growth, Compelling Structural T
Slide 13: Member Clinical Data Available Across all Venues of Care
Member Clinical Data Available Across all Venues of Care Diabetes CHF Hypertension CKD Weight Management MSK Data driving behavioral change Behavioral Health COPD Data driving behavioral change Provider Data driving behavioral change Live Coaching Digital
Slide 14: Claire's Health Journey
Annual exam with Teladoc Teladoc physician consults Creates personalized Using connected blood primary care physician; with Claire, reviews lab health plan including pressure monitor and cuff, discusses medical history, results, diagnoses high referral to Livongo Claire and her care team nutrition a
Slide 15: Financial Considerations
Financial Considerations Teladoc. 1% Livongo
Slide 16: $100MM of revenue run rate synergies end of year two and $500MM in 2025
$100MM of revenue run rate synergies end of year two and $500MM in 2025 Referrals to International Improved Cross-selling Livongo’s Cost savings revenue driven potential of solutions driven member for improved through shared and by visits to churn and profitability or Teladoc’s unshared Teladoc’s mo
Slide 17: Pro Forma Revenue and YoY Growth
($ in mm) Pro Forma Revenue $716 $258 $974 % YoY Growth 36% 128% 52% % Gross Margin 64% 76% 67% Adj. EBITDA $61 $12 $73 % Adj. EBITDA Margin 9% 5% 8% Cash and Equivalents $1,162(2) $836 $661(3) Debt $1,334 $550 $1,884 (1) TTM as of June 30, 2020. (2) Net of $150mm cash used for ITH transaction. (3)
Slide 18: Adj. EBITDA positive, 200-300bps annual expansion
52% 30-40% Adj. EBITDA positive YoY Growth TTM ’20-’23 Revenue CAGR pre-synergy with 200-300bps Annual Expansion
Slide 19: Together We Will Transform the Way People Access and Experience Healthcare
Together We Will Transform the Way People Access and Experience Healthcare Delivering virtual care Enabling virtual care for consumers for providers © Teladoc Health, Inc. All rights reserved. 19