Molina Healthcare Inc · NYSE:MOH
Molina Healthcare — JP Morgan Healthcare Conference 2021
15 slides from Molina Healthcare's conference presentation, Jan 14, 2021
Slide 1: Molina Healthcare, Inc. JP Morgan Healthcare Conference
Molina Healthcare, Inc.JP Morgan Healthcare Conference Joe Zubretsky, President and Chief Executive OfficerJanuary 14, 2021
Slide 2: Cautionary Statement
Cautionary Statement Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 This presentation and the accompanying oral remarks include forward-looking statements regarding, without limitation, the Company’s strategic position, its projected 2021 premium revenues and future
Slide 3: Today's Agenda
Compelling Strategic Position 4Q20 First Glimpse 2020 Full Year Performance 2021 Initial Outlook Today’s Agenda
Slide 4: Compelling Strategic Position
Compelling Strategic Position Despite pandemic, business remains resilient and strategy unchanged Growth Strategy Grow premium revenue ~13% and ~25% in 2020 and 2021, respectivelyOrganic growth opportunities remain compellingExpert acquisition team, disciplined approach Focused on managed care funda
Slide 5: Molina's Footprint Expanded in 2020
Molina’s Footprint Expanded in 2020 Checked the box on all aspects of our growth strategy initiatives in 2020 despite the global pandemic Executed on meaningful and accretive acquisitions Retained all of our existing Medicaid contracts Won new state contract New state; acquisition New state; RFP win
Slide 6: 4Q20 First Glimpse & 2020 Full Year Performance
4Q20 First Glimpse & 2020 Full Year Performance
Slide 7: 4Q20 First Glimpse
4Q20 First Glimpse Normalized performance continues to be strong and in line with previous expectations Quarter impacted by recently enacted COVID risk sharing corridors, likely to be a net decrease to 4Q earnings of (~$3.50) per share Strong normalized performance, excluding the net impact of COVID
Slide 8: 2020 Full Year Performance
2020 Full Year Performance 2020 full year normalized earnings; continued strong performance Normalized performance projected to exceed full year GAAP guidance of $11.20 – $11.70 per share Net negative impact of COVID (~$2.00) per share Positive benefit from one-time non-recurring items of ~$1.00 per
Slide 9: 2021 Initial Outlook
2021 Initial Outlook
Slide 10: 2021 Medicaid Rate Environment
2021 Medicaid Rate Environment Modest challenges from temporary COVID risk sharing corridors but actuarial soundness preserves outlook for margins Many COVID risk sharing corridors extend into 2021COVID risk sharing corridors are expected to be temporary2020 corridors enacted retrospectively2021 cor
Slide 11: 2021 Marketplace Update
2021 Marketplace Update Improved outlook in 2021 driven by enhanced operating performance 2020 performance disappointing but confined and correctable Targeted price increases in 2021 Begin 2021 with over 500,000 members Revenue growth of over 25% Target mid-single digit pre-tax margin for 2021
Slide 12: 2021 Initial Premium Revenue Outlook
2021 Initial Premium Revenue Outlook Continued execution of growth strategy leads to 2021 premium revenue of over $23 billion, or ~25% increase over 2020 MCC acquisition Benefit carve-ins and carve-outs Organic growth in Medicare and Marketplace Kentucky, Passport, and YourCare full year Resumption
Slide 13: 2021 Outlook
2021 Outlook Durable earnings catalysts largely mitigate temporary earnings challenges Catalysts Challenges COVID risk sharing corridorsCOVID medical costsResumption of membership redeterminationMedicare risk adjustmentRx carve-outs Strong normalized performance in Medicaid and MedicareMarketplace m
Slide 14: Compelling Strategic Position
Compelling Strategic Position Despite pandemic, business remains resilient and strategy unchanged Growth Strategy Operating Metrics Business Environment
Slide 15: Questions and Answers
Questions and Answers
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