Hims & Hers Health, Inc. · NYSE:HIMS
Hims & Hers Health — SPAC Merger (October 2020)
43 slides from Hims & Hers Health's SPAC merger presentation, October 2020
Slide 1: hims & hers
Slide 2: Disclaimer
Disclaimer ‘This Investor presentation (his "Presentction’) Is for nformational purposes only o ass Irterestad partes in making thelr onn evaluation wih respect othe proposed business combination (tha "Business Combination”) between Oak Acquistion Cro, ("OAC") and Mims, ne (he “Company”. The informa
Slide 3: Disclaimer (cont'd)
Disclaimer (cont’d) “his Protonation includes certain fnncial meccurs net prosonted in accordancs wih generally accapted accounting principle ("GAAP") including, but no limited to, EBITDA. Thozo non-GAAP fnanciel maaturas aro nt mencurs af nenealporformancoin accordance wth GAAP and may axclude tems
Slide 4: hims & hers at a glance
hims shers at a glance a category defini 131 2mm+ 71% te health company 25% | b \ employees cumulative gross pe ringing complete telemedicine margins choice to consumers consultations’ by combining access, affordability and transparency 9, 240 250k+ 91% ne specialty customer recurring 201A —«-2019A-
Slide 5: World class suite of committed shareholders
8VC [> FOUNDERS FUND F FORERUNNER I ME world class suite of , cherubic committed shareholders 44 Redpoint Ce shew with aligned, long-term interests and a track record SSTHRIVE CAPITAL of innovation McKesson Ventures GR TAVusrMENt S © OAKTREE SVAngel himszhers 5
Slide 6: Led by a visionary founder and veteran leadership
Andrew Dudum Chief Executive Officer ATOMIC ¢ led by a visionary founder and veteran leadership with the most relevant healthcare, technology & consumer experience QO068 4 Spencer Lee Patrick Carroll Melissa Baird Soleil Boughton Leah Millheiser Lori Jackson Chief Financial Officer Chief Medical Off
Slide 7: The US healthcare system is one of the last multi-trillion dollar markets
the US healthcare system is one of the last multi-trillion dollar markets yet to be disrupted Financial Retail’ Transportation’ Services* S5in $2tn $1.5 in Healthcare® $4 tn With 330mm people’s health at risk, improving the status quo is arguably the most impactful opportunity of our lifetime himszh
Slide 8: For the average American the healthcare system is broken and disjointed
for the average American the healthcare system is broken and disjointed, and the statistics are staggeringly sad Per capita spend in the United States has doubled in the last 20 years, however, U.S. life expectancy & health indicators are falling behind peers in the global landscape Our platform add
Slide 9: Now is the time for the healthcare industry
iow is the time for the : the healthcare industry 1994 2006 2009 amazon =) Spotify | square Retail / Commerce Radio / Music Payments ° 1997 TV/Video 2008 Hotels of 2012 RAFT NGS Sports Betting 2012 2009 | Transportation Uber Transportation Insurance ng rapid digitization of healthcar ee
Slide 10: Business overview
Slide 11: The first digitally native, fully verticalized multi-condition health platform
the first digitally native, fully verticalized multi-condition health platform—providing access to high quality, integrated care from start-to-finish... himsahers Consumer Brand Distributed Provider Network Clinically Focused EMR Digital Native Telemedicine Platform Digital Prescriptions Cloud Pharm
Slide 12: Enabling the health experience of the future
..enabling the health experience of the future that modern consumers expect < my chin and on my. cheeks and I've tried what issue:can:we: some over the counter help with today? options but am locking to really tockle this Skincare © Kinsine Symptom Review Hers Hello Anna, thank you for sending these
Slide 13: The new front door to healthcare
this is the new front door to healtheare—where the patient is our consumer and the experience is frictionless himsshers § § 3 3 Fast & Efficient average patient consultation submission within one hour vs. average of 24 days for traditional appointment 1. Morritt Hawking: 2077 Survey of Physician App
Slide 14: Rigorous, evidence-based guidelines and comprehensive provider training
all made possible by rigorous, evidence-based guidelines and comprehensive provider training 240 ing Board Certification We require all applicants to be board-certified in an applicable specialty State Licensing Must be licensed to practice medicine in states of customers they will serve AMA Good St
Slide 15: High scale seamless patient and clinician experience
and a high scale seamless patient & clinician experience facilitated by proprietary, purposeful tech Meet just some of the technology helping our customers receive high-quality care faster and with more precision o Li verify Multiple system tools to validate patient data to confirm verification and
Slide 16: This new paradigm of healthcare has unlocked patient engagement
this new paradigm of healthcare has unlocked patier 2.0mm 2mm+ 10mm+ H&H telemedicine Cumulative patient consultations since touchpoints' launch A3Ik H@H telemedicine consultations since launch 2018 2019 22020
Slide 17: Delivering a consumer experience unlike anything in the industry
delivering a consumer experience unlike anything in the industry So ~ 27 27 23 Fi NPS scores by industry 6 © © © =e | Hotel & . Co: 7 Pac Health Life a Fixed Dims Shere Lodging Banking Rete paces Wireless Insurance Provider Insurance Wiles tee Coble Scurce: Compary internal dot, Accenture Consulting
Slide 18: Customer driven organic growth
Customer driven organic growth adopted and championed by our Customers who represent the future of the healthcare system our Customers are ambassadors for our brand, building community and driving organic growth ° 0, é g 80% Millennials Word of Mouth & User Generated of our Customers make up the maj
Slide 19: Pre-existing health system loyalty is limited and lifetime value is just beginning
whose pre-existing health system ae x 4 loyalty is limited and whose bo" lifetime value is just beginning Lene soe Age 60+ oe $500bn ak A Sip ace age 40-60 Diabetes Control - A 0) '@] b n Hypertension ‘ Cholesterol ssh age 18-40 Fertility 5 s Sleep 53% $350bn ae Erectile Dysfunction TAM of people wo
Slide 20: Immediately addressable markets are massive and underpenetrated
our immediately addressable markets are massive and underpenetrated Erectile ; = ; Anxiety & Hair Loss . Dysfunction 5 : (“ED”) Depression market size! market size’ market size? market size*
Slide 21: Logical expansion into future opportunities
Spend Chronic Generic Medication Specialty Focus Stigma Telemedicine Enabled all with key underlying fundamentals making for logical expansion Future Opportunities Anxiety & Primary Hair Loss ED Depression Dermatology Care Sleep Fertility Diabetes Cholesterol $3bn $4bn $14bn’ $44bn‘ $280bn' $15bn° $
Slide 22: We own the trusted consumer relationship
we own the trusted consumer relationship and are uniquely positioned in the rapidly-emerging landscape Telehealth Capability We have a defensible model, engaging directly with consumers, and thus are indifferent to future system evolutions B2c Focused ° himszhers Good, A +-one medical Telehealth < >
Slide 23: Future opportunities
Slide 24: Secular tailwinds accelerating the shift towards digital care
secular tailwinds are radically accelerating the shift towards digital care Market Forces Rise in high deductible health plans (HDHPs) shifting risk to consumers Consumer adoption of technology driving preference for change in healthcare Rapidly increasing medical costs driving need for price transp
Slide 25: Platform enabling transformation for entrenched stakeholders
the strength of our platform is also enabling transformation for entrenched stakeholders As customers’ preference towards telemedicine modalities increases, traditional health systems and corporates will look to bridge with consumer friendly, and brand name platforms and offerings Health Sevices cli
Slide 26: hims & hers for enterprise
hims «hers for enterprise Meet hims & hers for organizations, a new kind of employer benefit that covers employees for everything from sexual health, mental health and primary care © high utilization, specialty categories @ consumer friendly platform & brand @ acute, chronic, preventative care @ pre
Slide 27: Ohio pharmacy unlocks future ability to accept insurance
our 300,000 sq. ft. Ohio pharmacy increasing our drug coverage by unlocks our future ability to accept 400% with access to S$408bn in insurance untapped spend location: Columbus, OH ~$101bn Ax features: Generic Drug Spend! ¥ 300k sq. ft. floor tapped branded v Secure regulation standard bnenbalit ~
Slide 28: The rise of digital health is not limited to the United States
the rise of digital health is not limited to the United States... UK 66mm population USA 330mm population EU 446mm population Canada 38mm population ~260% potential addressable market growth in select $12 tn global healthcare market size” “telehealth friendly” future markets’ Australia Indonesia Sin
Slide 29: Financials & transaction
Slide 30: Massive market, disruptive technology and world class team
the combination of a massive market, disruptive technology and a world class team has led to... @ @ @ 128% ¥ ae ~3x High revenue Best-in-class gross Strong subscriber growth margin profile unit economics 128% revenue CAGR from Attractive and expanding ~3x 3-year LTV-to-CAC 2018-2020E—extremely attra
Slide 31: Attractive historical revenue growth and gross margin expansion
attractive historical revenue growth and significant gross margin expansion Year-over-Year Growth % -— 4 209% a 67% a Annual revenue on ($ millions, - $138 unaudited) 128% " cAGR - $83 $27 2018A 20198 2020E Note: Company recognizes revenue under ASC 06 on a grass bass; Projactions are before contrib
Slide 32: Highly recurring, diversified pharmaceutical revenue
highly recurring, diversified pharmaceutical revenue Th Th Th wholesale wholesale wholesale 2% y ene 91% 35% 57% 10% 83% emsacsieny cilne hair, dermatology, other sexual health endine (ene Ha) online (Rx) (subscription) Revenue by Prescription vs Subscription vs product non-prescription non-subscrip
Slide 33: Strong revenue growth driven by order value and order growth
strong revenue growth since inception driven by average order value and order growth # Online Orders (thousands) 194 324 483 585 672 671 571 546 572 md Quarterly revenue ae % Multi-Monthly Orders (S millions, a =- = = = = 0% 5% 12% 17% unaudited) oo | 186° Quarterly average » order value’ od (8, una
Slide 34: Strong unit economics with 3x LTV/CAC
strong unit economics with 3x LTV/CAC Cumulative Revenue per New Subscriber by Cohort! Marketing Spend and Customer Acquisition Cost (“CAC”) 250 $161 $ 5 $153 J _——, SS” $200 ° et $150 $52mm “NN Acquisition $100 a Marketing” $27mm wee Cac? — 022020 — @12020 $50 — 2H2019 «= — 1H 2019 $9mm $8mm $0 a m
Slide 35: Historical and projected financial summary
($ millions, unaudited) Revenue YoY % Growth Gross Profit YoY % Growth % Margin Adjusted EBITDA’ historical and projected financial summary 2018A ($68) 20198 2020E $138 67% $98 119% 1% ($20) 2021E $179 30% $130 33% 73% ($29) 2022E $233 30% $175 34% 75% ($9) himszhers 35
Slide 36: Transaction summary
transaction summary Pro Forma Enterprise Value (S millions) . . _ Share Price $10.00 © Implied pro forma enterprise value of $1.6 billion oo, Pro Forma Shares Outstanding 192.656 @ OAC to combine with hims & hers © Represents an attractive pro forma multiple of 12.2x 2021E Gross Profit and 8.9x 2021
Slide 37: Comparable company benchmarking
comparable company benchmarking hims «hers D Livongo O teLapoc. +-one medical GoodR’ Peer Group a Average 71% 2019A-2022E aN% re % , 2 Revenue CAGR — 2 37% 73% 75% 24% 63% 2021E Gross Profit ' 37% Margin 7 71% 58% 2019A-2022E Gross 36" 36% Ay ~~ “ i a i scree Company ral da, Fate pic ovetobie compan
Slide 38: Comparable company benchmarking (cont'd)
comparable company benchmarking (cont’d) hims «hers i Livongo” O tTELapoc. “sone medical GoodR’ ee Group = opie erage 21.7x EV/2021E Revenue 15.1x 8.9x i, 9.2x hims & hers discount to ' = . peers - (70%) (41%) (3%) (73%) (59%) 39.7x 35.2x 31.0x EV/2021E 24.2x 2aex Gross Profit 12.2x hims & hers disc
Slide 39: Comparable company benchmarking (cont'd)
Company D Livongo OteLapoc +-one medical Good’ hims hers’ Share Price ($) $140.05 $219.24 $28.36 $55.60 comparable company benchmarking (cont’d) $17,440 $20,245 $4,230 $24,259 $1,927 (Smm) $16,604 $20,091 $3,885 $24,064 $1,592 Revenue Multiple Gross Profit Multiple Revenue Growth Gross Margin Gross
Slide 40: OAC investment thesis
OAC investment thesis 1 6 2 5 Purpose-built platform and brand with a massive opportunity Highly engaged and recurring patient base 3 = Attractive financial profile with visible path to profitability 4 Visionary founder with experienced management team Compelling deal framework with strong rollover
Slide 41: Appendix
Slide 42: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ millions, unaudited) Net Income (+) Stock-based Compensation (+) Depreciation and Amortization (+) Vendor Warrants! (+) Provision for Income Taxes (4) Interest Expense (-) Interest Income Adjusted EBITDA 2018A 20194 a) himszhers 42
Slide 43: hims & hers