Astrana Health Inc. · NASDAQ:ASTH
Astrana Health — Investor Presentation (November 2024)
41 slides from Astrana Health's investor presentation, Nov 14, 2024
Slide 1: Investor Presentation November 2024
Investor Presentation November 2024
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forwardooking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward looking statements include any statements about the Company's busi
Slide 3: Astrana Accelerates Healthcare Transformation At Scale
Astrana Accelerates Healthcare Transformation At Scale AstranaHealthis a healthcare platform that organizes and Aplatform with... empowers providers to drive accessible, high-quality, and high- value care for all patients through a provider-centric, technology-driven approach via its three business
Slide 4: Astrana Health exists to...
Astrana Health exists to... ..Improve access to care + Build broad networks of affiliated Primary and Specialty care providers, supplemented with employed providers + Meeta diverse set of patients acrossall care settings 12,000+ Employed and affiliated providers! ..Power high-quality outcomes * Deli
Slide 5: Transforming the status quo into a coordinated, high-value, accessible healthcare ecosystem
We do this by transforming the status quo into a highly coordinated, high- value, and accessible healthcare ecosystem The Astrana Health Model (waetna digna Elevange CENTENE, Humana i +. © Affiliate providers © Care Delivery —- © Risk-bearing organization (Care Partners) Ekle +~20 Others} x Insuffic
Slide 6: We transform healthcare delivery through our three segments
© Risk-bearing organization We transform healthcare delivery through our three segments: (CarePartnors) Care Partners, Care Delivery, and Care Enablement (_vaetna CENTENE. = igna_—sElevance «= Humana. (Medicaid Sure ayouns Heilicare _ +20 Others Health Care Partners Multi-Specialty © Affiliate provi
Slide 7: Care Partners is our risk-bearing network
© Risk-bearing Care Partners is our risk-bearing network made up of our (ChreParers) provider partners, both affiliated and employed Hievance Humana wedicaid Pon + Acts asa “single payer” for our network of providers, enabling VBC arrangements (i.e., fultrisk contracts) Care Partners + Servesall pat
Slide 8: Care Delivery is our network of employed providers and owned clinics
© Risk-bearing organization Care Delivery is our network of employed providers and owned (Cars Barter) clinics, increasing access in underserved communities {Wists +-200thers} * Primary care, multispecialty care, imaging, and laboratory clinics with 61 locations across 3 states to enhance access to
Slide 9: Care Enablement is our end-to-end clinical, operational, and administrative platform
Care Enablement is our end-to-end clinical, operational, and administrative platform which empowers providers and care teams in a scalable way once Humana. (Medicaid + Our technology and support platform enhances delivery of high-quality and high-value care to our patients + Our Care Enablement tool
Slide 10: Providers build longitudinal relationships with diverse patients
Across our business, Astrana’s providers build longitudinal relationships with our diverse patients across all life situations icy AstranaHealth serves members across their lifetimes... 1.1 million ° & Gh Total value-based lives & ae Sui arr Membership by Age Group* Diverse 0a, 24% 2B Day « patient
Slide 11: The Astrana Playbook: Repeatable Levers for Scalable Outcomes
The Astrana Playbook: Repeatable Levers for Scalable Outcomes * Growth within our existing markets (CA, NV, TX) + Expansion into new geographies (AZ, CT, HI, MD, VA, &more) Growth: Sustainably growing membership to bring better care to more Americans Risk Progression: Increasing alignment + 11M tota
Slide 12: Astrana has developed a differentiated model to drive continued growth
Astrana has developed a differentiated model to drive continued and sustainable growth The Astrana playbook Adjusted EBITD. (Sin millions) Growth- Organic and Inorganic @ Core Astrana ae Atleast I Prospect pro forma Gace $350 Risk Progression rospect pre-close Synergies Outcomes and Cost Operating L
Slide 13: Growth: proven ability to digest inorganic growth profitably
|S Growth We’ve proven our ability to digest significant inorganic growth profitably, through our scalable clinical and technology infrastructure Community Family D Care (CFC) overview © Care Revenue($ in millions) Adj. EBITDA(S in millions) Partners isked integration playbook leveraging scalable in
Slide 14: Astrana Health's planned acquisition of Prospect Health
.+. Astrana Health’s planned acquisition of PROSPECT HEALTH will bring together two scaled organizations empowering providers to drive: + Access + Quality + Value for all patientsina payer-agnostic way .4.AstranaHealth & 8 32years Operating history 12 States 1.4M Members in value-based care arrangem
Slide 15: Astrana and Prospect have synergistic businesses and assets
EIS) Growth Astrana and Prospect have synergistic businesses and assets © Care Partners Care Delivery @ Care Enablement Risk-bearing networks (IPA’s, Owned primary and multi- Full-stack technology and services ACO’s, etc.) across all lines of specialty clinics with employed platform enabling provide
Slide 16: Prospect's footprint and membership is highly complementary
OT OT Prospect’s footprint and membership is highly complementary to that of Astrana’s Pro forma membership mix by payer’ | Medicare . 17% Commercial 28% : 1.7M » Medicaid 55% Astrana {)) Prospect [Bf Astranaand Prospect Bi 16 mm h 1. Basedon estimated pro forma members in value-based c: ments for t
Slide 17: Expected to seamlessly fold into our existing operations
Cg O Growth Expected to seamlessly fold into our existing operations Scale Model Growth Integration Leverage Accretive scale via Analogous clinical Highly visible De-risked Prudent balance adjacent and operational embedded growth integration sheet deployment geographies and models (e.g., (e.g., orga
Slide 18: Better care at lower cost in our core market, California
We’ve demonstrated our ability to provide better care at lower cost in our core market, California California 1992 2019 2021-2022 2023 2024 26.7M 20.6M — 14.4M Population Reach Population Reach —» —— ~_ Launchedin Built density in Expandedinto Expandedinto Deepened CA alignment SouthernCA SouthernCA
Slide 19: Growing into new markets
We've continued to grow into new markets to serve and invest in additional communities across the country Nevada 2022 Clark 2.3M pop. E + Planned to be run-rate breakeven inadj, EBITDA exiting 2024 + In2024, opened fournew de novo primary care clinics opened inLas Vegas, NV + Almost 500% increase fr
Slide 20: Increasing risk responsibility improves unit economics
As we increase alignment through total cost of care responsibility, our unit economics improve demonstrably Partial-risk Full-risk 400% 100% 85% 10-20% 12.5-25% EBITDA Margin to EBITDA Margin to 4. Astrana Health 40% +. Astrana Health ~9-17% _ a Total Retained Institutional Revenueto _Costof Ope? —_
Slide 21: Increasing the full-risk share of our business
Weare increasing the full-risk share of our business to better align incentives around patient outcomes and improve unit economics Fullrisk Capitated Revenue by Risk Arrangement? Members by sk Arrangement: Partiabrisk ! 1! Projected ces SSO A 53% ' ' co ‘ ' 70% 100% ! ' om | 87% | 47% ' ! 35% ! son
Slide 22: Purpose-built value-based care platform drives scalable results
Qutcomes & Cost Our purpose-built, intelligent, value-based care platform drives scalable and repeatable results across our business Care Management & Patient Outcome: + Intelligent patient population + Alkin-one point-of-care tool for n nt pati risk stratification both providers and practices + Che
Slide 23: Proprietary point-of-care tool empowers providers
Proprietary point-of-care tool empowers providers to self-serve patient context, coordinate care, and achieve better patient outcomes Providers empowered by our technology... ..see improved outcomes across the board Incomplete Measures Provider quality outcomes compared by usage”* Example workflow:
Slide 24: Proprietary workflow software empowers clinical teams with real-time data
Qutcomes & "§ Cost Proprietary workflow software empowers Astrana’s clinical teams with real-time data to drive care coordination and access Technology pairs with clinical staff... E For Example: RES, Average SNF* length of stay (days) for new care-managed cohort? a a ie oo 165 \ a “os s 16 155 99%
Slide 25: Proprietary care management platform coordinates scalable care planning
Proprietary care management platform coordinates scalable care planning workflows, ensuring no patient falls through the cracks Example Pathways intensive care After a hospital visit, Leslie is risk stratified Leslie's contact informa management patient journey: into our Care Management program. dir
Slide 26: Clinical teams and technology drive superior patient outcomes
Together, our clinical teams and technology platform drive superior patient outcomes and sustainable growth ..And if they are admitted, we help them get to the right site of care once clinically appropriate We keep patients healthier and out Proven ability to improve MCR and drive sustainable growth
Slide 27: Care Enablement platform creates operating leverage
Care Enablement platform creates operating leverage . for new clients and Care Partners Data Infrastructure and Provider Solutions Clinical and Care Coordination Solutions Payer Delegation Solutions s8 = Z 5 = P S @ © © @ @ & & ey Ops VBE'Suite& Pointof__ Analytics & Clinical UM®8 Care Provider Cont
Slide 28: Execution of our strategy drives unit economic improvement
ecution of our strategy drives unit economic improvement Astrana playbook Growth us 85% Risk Progression a 10-20% Cy EBITDA Margin to +. Astrana Health Outcomesand Cost Operating Leverage Total Retained Revenue to Cost of Opex? EBITDAto Premium by +. Astrana Health: care! +. Astrana Health Note:See
Slide 29: Execution of our strategy drives profitable growth
Execution of our strategy drives profitable growth Revenue($ in millions) Adj. EBITDA(S in millions) $165.0- lo] Seon ~29% CAGR $1.950- ~26% CAGR $176.0 $2,030 Risk Progression $146.6 3 $133.5 $140.0 $1,387 Outcomes and Cost $1,144 $102.8 $774 ea Operating Leverage gse1 $687 [ : 9542 2019 2020 2021
Slide 30: Building the premier, patient-centered healthcare platform for all
Building the premier, patient-centered healthcare platform for all Growth Sustainably growing membership to bring better care to more Americans Risk Progression .+. Astrana Health eS responsibility in value-based arrangements (2 Increasing alignment through total cost of care / _ a" Outcomesand Cost
Slide 31: Astrana Guidance for 2024
Astrana Guidance for 2024 (Sin millions, except for per share information) Revenue $478.7 Total Revenue $1,386.7 $1,750-$1,850 $1,950-$2,030 Net Incomeattr.toASTH $16.1 Net Income attr. to ASTH $60.7 $54-S66 $52-$58 Adjusted EBITDA? $45.2 Adjusted EBITDA2 $146.6 $165 -$185 $165-$175 EPS - Diluted $0
Slide 32: Slide 32
Slide 33: Appendix
Slide 34: Astrana is a highly differentiated, scaled leader in value-based care
Astrana is a highly differentiated, scaled leader in value-based care AstranaHealth () PRIVIA — xXagilonheaith Caremax PB uxt: Partners Business Model ae Affiliate provider model Affiliate provider model aiiller tac Affiliate provider model At-Risk Lives ~1.7M" ~1.2M? ~0.5M ~0.2M ~0.1M Markets 33+4
Slide 35: Experienced, mission-driven management team
Experienced, mission-driven management team with deep clinical knowledge and a proven ability to execute % % 3 g & Brandon K. Sim, MS Chan Basho, MBA Dinesh Kumar, MD = Jaime Melkonoff, MBA Jeremy Jackson, MD President & Chief Operating & Chief Medical SVP & President, Chief Quality Chief Executive
Slide 36: Summary of Selected Financial Results
Summary of Selected Financial Results Three Months Ended September 30, Nine Months Ended September 30, $inthousands except per share data 2024 2023 2024 2023 Revenue Capitation, net $ 431,401 $ 305,678 $ 1,239,885 $ 906,430 Risk pool settlements and incentives 21,779 15,022 57,564 48,605 Management
Slide 37: Segment Results
Segment Results For the three months ended September 30, 2024 . Care Care Care Intersegment Corporate Consolidated Sin thousands Partners Delivery Enablement Other Elimination Costs Total Totalrevenues $ 455,760 34,728 40,930 - (52,708) - 478,710 % change vs prior year quarter 42% 20% 11% 37% Cost o
Slide 38: Balance Sheet Highlights
Balance Sheet Highlights $inmillions 9/30/2024 12/31/2023 $ Change Cash and cash equivalents and investments in marketable $350.3 $296.3 $54.0 securities! Working capital $284.1 $242.8 $41.3 Total stockholders’ equity $709.6 $616.7 $92.9 1. Excludingrestricted cash
Slide 39: Reconciliation of Net Income to EBITDA & Adjusted EBITDA
Reconciliation of Net Income to EBITDA & Adjusted EBITDA Three Months Ended September 30, Nine Months Ended September 30, $in thousands 2024 2023 2024 2023 Net Income $ 18,981 $ 27,973 $ 57,709 $ 57,943 Interest Expense 8,856 3,779 25,028 10,680 Interest income (3,778) (3,281) (11,287) (9,617) Provi
Slide 40: Reconciliation of Net Income to EBITDA & Adjusted EBITDA (continued)
Reconciliation of Net Income to EBITDA & Adjusted EBITDA (continued) For the twelve months ended TTM Ended Year Ended Sin millions September 30, 2024 2023 2022 2021 2020 2019 Net Income $ 57.6 $ 578 $ 457 $ 461 $ 1221 $ 15.8 Interest expense 30.4 161 79 5.4 9.5 47 Interest income (15.9) (14.2) (2.0)
Slide 41: Guidance Reconciliation of Net Income to EBITDA & Adjusted EBITDA
Guidance Reconciliation of Net Income to EBITDA & Adjusted EBITDA 2024 Guidance Range (in thousands, $) Low High Netincome 59,340 66,240 Interest expense 18,750 18,750 Provision for income taxes 26,660 29,760 Depreciation and amortization 27,500 27,500 EBITDA 132,250 142,250 Loss (income) from equit
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