Health Net — SPAC Merger (July 2015)
18 slides from Health Net's SPAC merger presentation, Jul 14, 2015
Slide 1: Centene + Health Net, July 2015
Filed by Centene Corporation Pursuant to Rule 425 under the Securities Act of 1933, as amended, and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934, as amended Subject Company: Health Net, Inc. Commission File No.: 1-12718 This filing relates to the previously disclose
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Safe Cautionary This business Centene statements use “may”, could include, the not relationships; federal Affordability outcome Net’s including, stockholders and experience achievements, looking announcement as in A 2K further as this ofproposed be words risks Harbor document well the Medicare cause
Slide 3: Additional Information and Where to Find It
Safe Additional 4The statement/prospectus Health will joint obtained website, 6911, Participants Centene, deemed regarding of filed proxy information Stockholders, No This to be 310that buy Centene unlawful of Offer proposed contain Harbor communication with proxy the or will statement any Net to fr
Slide 4: Earnings Guidance Policy
Earnings Our Company broad 4“Further, Company’spolicy non?exclusionary Guidance itofficials is Company should Policy is,policy means.” “that not be to theinterpreted generally Companynotthat undertakes hold guidance discussions nohas obligation orwith has not investors toupdate changed. commencing i
Slide 5: Enhanced Growth and Capabilities
Enhanced + 1. 2. 3. 4. 55. =Adj. Growth Critical Increased Pro Forma EBITDA Capabilities mass incapabilities 2017 2015E inand excess Premium for beyond Delivering of $1.5B & Service High Revenue Quality,ofAffordable $37B Healthcare
Slide 6: Additional Growth Drivers
GrowthHealth Deeper Prison Medicare Additional 6CentenePenetration Drivers oAdvantage Additional Business 125Kin eligibles oacross Segments California Tricare Centene 2.8 o(Largest Specialty M eligibles StatesMedicaid oCompany 2/3 o VAMedicaid nearly State, Growth Segment 5M 400% eligibles Poverty S
Slide 7: Key Transaction Terms
Key Transaction $28.25 Implies Total Price Centene shareholders Financing Permanent Projected Financial Impact Expect Savings) Health Expiration including 7regulators transaction Net in Pre to $78.57 shareholders Greater “change cash close in commitment Pro of financing tax and Arizona, to Hart?Scot
Slide 8: Cost Synergy Opportunities
CostTop Core Specialty On 8Savings Synergy G&Aof Are Company Cognizant Efficiencies Incremental Opportunities $150M Savings to Growth Integration Opportunity Medical Costs in Year 2 Technology Platform
Slide 9: Pro Forma Membership and State Map
Critical Pro Medicaid: Total Centene 9Note: Forma 10.4 Map Mass: Health million 5.7 Membership excludes million Leader Net Common Health in Specialty as High of Net’s 3/31/15 States Quality / Government: TRICARE Affordable North 3.1Plans million Region Commercial membership / Exchanges: 1.3 million
Slide 10: Diversifying 2015E Revenue
8Diversifying + 4% 0.7% 2% 2015E 34% 64% 83% 16% 39% Medicaid Specialty Note: 10 % 19% 4% 8% Estimate Revenue: 4%/Commercial Government 11% and of2015E Setting revenue / Exchanges Duals Revenue: the represents Stage2015E for Medicare Premium 2016 Proand Forma and Beyond Service Revenue: revenue $21
Slide 11: Significant Enhanced Programs
Significant Enhanced Programs National Value 11 Based 4Populations Introduces Star and Products Plans Real Growth Increased Leader Provides Opportunities in Additional Networks VA Depth opportunities and Opportunity Harnessesfor onPresence private Leverageexchanges Centene Commercial States Quality
Slide 12: Increased Addressable Market
Increased & $612B Medicaid Medicare Health 12 Healthcare $9B Correctional Marketplace $104B CHIPInsurance Addressable $689B $1.4 trillion Medicare SegmentsDuals by Product $234B
Slide 13: Growth in Public Healthcare Financing
US 191 Millions 51172 7(42% 62 91 Source: 2014 13 34 2193 72CHIP Health million 2019 of 72HMA, Americans) of Exchange Care 2024 Beneficiaries (52% 2014 – of Public 50Americans) 14Medicare 5Financing (56% ofMedicaid Americans)
Slide 14: Current Medicaid and Medicare Opportunity
Current Medicaid & Medicare Opportunity $140 (Note: 14 CHIP billion this Pipeline Marketplace Correctional Health figure for Deeper Insurance does not (Duals) Penetration include Healthcare additional in segmentMedicare Advantage in CNC States)
Slide 15: Centene Healthcare and Government Solutions
Centene Healthcare Government Low-income Chip Abd Long-term Foster Medicare Specialty Pharmacy Behavioral LIFE Managed 8S Telehealth 15 Solutions 70tates(dual-eligible) (non &care Health Has vision health special duals) benefits services coverage &solutions Delivered Medicaid SPECIALTY management so
Slide 16: Combination Across Government Programs and Specialty
Combination Across Government Medicaid TANF ABD Intellectually/Developmentally Specialty Pharmacy Behavioral Life 321Primary 23 16Entry Centene Does States &(Medicaid (non?duals) Health anot underway Care Broader 237 Health Expansion Benefits isinclude &in Solutions Creates Solutions Specialty Manag
Slide 17: Enhanced Growth Opportunity
Enhanced High Leading Government Opportunity Programs Provides Strong Innovative Significant Expanded Growth In Prudent 17 firstQuality, quality year, capital position scale Capabilities Leadership growth capabilities growth GAAP to PFAffordable position and leverage structure 2015E inpipeline exper
Slide 18: Centene + Health Net
a CENTENE orporation Centene + Health Net na SI fag OE a Teme