The Oncology Institute, Inc. · NASDAQ:TOI
The Oncology Institute — Oncology Institute — Investor Presentation (August 2022)
31 slides from The Oncology Institute's investor presentation, Aug 16, 2022
Slide 1: Investor Presentation August 2022
Investor Presentation August 2022
Slide 2: Disclaimer: Forward Looking Statements
Disclaimer Forward Looking Statements This presentation includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements general
Slide 3: TOI Investment Highlights
TOI Investment Highlights 3 1. Oncology is a Large and Growing Market 2. Today’s Care Delivery System is Broken and Does Not Address Quality and Cost Issues 3. TOI is the First Mover Disrupting Oncology Care with a Unique Value-Based Model 4. Our Technology Platform is the First to Standardize and A
Slide 4: Rising Cost of Oncology Care is a Massive Problem in the U.S.
Rising Cost of Oncology Care is a Massive Problem in the U.S. 4 U.S. Oncology Spend Growth Continues to Accelerate 18% of U.S. GDP and rising 2x spent per person compared to OECD average Yet, U.S. incidence of chronic illness and longevity are worse than average Healthcare is Unaffordable and Ineffi
Slide 5: We Are Disrupting the Status Quo in Cancer Care
We Are Disrupting the Status Quo in Cancer Care 5 Our Disruptive Value-Based Oncology CareToday’s Traditional Fee-for-Service Oncology Care Incentivized by quality Incentivized to use high-value therapies Physician compensation model aligned to quality and patient satisfaction Practice tailo
Slide 6: We are a Leading Value-Based Oncology Care Platform
$66 $270 2016A 2022B(3) We are a Leading Value-Based Oncology Care Platform 6 160+ Clinical Trials Giving Patients Cutting Edge Treatment Access ~51K Unique Patient Encounters in 2021 Who We Are Relationships with Leading Payors and Risk-Taking Providers Our Growth (Revenue, $ millions) 26.4% CAGR 4
Slide 7: TOI is a Leading Value-Based Oncology Care Practice
TOI is a Leading Value-Based Oncology Care Practice that is Aligning both Physicians and Payors with Incentives to Simultaneously Enhance Quality and Lower Costs Aligned with physicians, practice-based models are incentivized to over prescribe expensive therapeutics and over utilize care which resul
Slide 8: Our Results are Peer-Reviewed and Published
Our Results are Peer-Reviewed and Published 8 Highly Effective in Delivering Quality, Value-Based Oncology Care > 25% Lower median total healthcare costs from diagnosis to death 75% Fewer Emergency Department visits in the last month of life 40% Fewer acute care facility deaths 14% Improvement in Pa
Slide 9: Our Patient-Centric Focus Drives High Levels of Satisfaction
Our Patient-Centric Focus Drives High Levels of Satisfaction 9 Highly Satisfied Patient Base Supports Care Delivery Model While Strengthening Payor Relationships Thousands of same-day patient surveys via text and email. Survey feedback loop to operations managers drives service excellence. “Thank yo
Slide 10: We Use Multiple Levers to Reduce Cost of Care
Sources: Lay Healthcare Worker Led Cancer Screening Interventions and the Effect on Patient-Reported Satisfaction, Health Status, Healthcare Use, and Total Costs; Journal Of Oncology Practice; August 16, 2019. Note: (1) Compared to average Per Member Per Month costs in our primary geographies. >25%
Slide 11: Proven Portability with Rapidly Expanding Footprint
Proven Portability with Rapidly Expanding Footprint 11 California (Lancaster) (Rancho Mirage) Nevada FloridaArizona 41 Clinics & 75+ Hospital Affiliations 6 Clinics & 9 Hospital Affiliations3 Clinics & 12 Hospital Affiliations4 Clinics & 6 Hospital Affiliations Note: Map does not include recently an
Slide 12: Our Care Model is Hard to Replicate
Our Care Model is Hard to Replicate 12 TOI has Developed Many Highly Specific and Difficult to Replicate Capabilities that Collectively Comprise our Competitive Moat Physician Recruiting Tech-enabled Care Pathways Delivered in Community Setting Clinical Trials Clinical Culture Care Management Integr
Slide 13: Our Technology Platform is Purpose Built for Oncology Care
Our Technology Platform is Purpose Built for Oncology Care 13 1. Collect Work with health plans and primary care doctors on front- end collection of extensive patient data sets 3. Apply Use results from our data analysis to dictate appropriate care pathways 2. Analyze Leverage proprietary algorithms
Slide 14: Strong Unit Economics Drives Increasing Profitability
Strong Unit Economics Drives Increasing Profitability 14 Embedded Gross Margin Expansion Potential as TOI Scales Margin Expansion Drivers TOI Pod(2) Gross Margin vs. % Value-Based Visits Value-Based Volume Mix: As our mix of value-based revenue increases our margins are expected to improve; pods tod
Slide 15: Strong Unit Economics Provide the Foundation of Future Growth
Strong Unit Economics Provide the Foundation of Future Growth 15 -10% -5% 0% 5% 10% 15% 20% 25% 30% (1,000) (500) - 500 1,000 1,500 2,000 2,500 3,000 Year 1 Year 2 Year 3 Year 4 Year 5 G ro ss M ar gi n EB IT DA ($ 00 0s ) Denovo EBITDA Acquisition EBITDA Denovo Gross Margin Acquisition Gross Margin
Slide 16: We Are Shifting the Market to Value-Based Oncology Care
16 We Are Shifting the Market to Value-Based Oncology Care We Are Shifting the Market to Value-Based Oncology Care Oncology Spend is a Major Pain Point for Value-Based Primary Care Illustrative Value Based Primary Care Group Funds Flow PMPM from CMS to MA Plans % Retained by MA Plans % Paid to Prima
Slide 17: Multiple Levers to Sustain Long Term Growth Trajectory
Multiple Levers to Sustain Long Term Growth Trajectory Service Expansion Expand Scope and Diversify Service Offering Build comprehensive portfolio of ancillary services Radiation Oncology Pharmacy Clinical trials MSO services Data monetization Existing Markets Continue Driving Growth in
Slide 18: Financial Overview
Financial Overview Po The Oncology institute ( SC, ) of Hope & Innovation
Slide 19: Revenue and Milestone Timeline
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018(2) 2019 2020 2021 2022(3) $1 $10 $17 $26 $29 $38 $41 $42 $48 $64 $74 $113 $155 $188 $203 $270 19 TOI Founded 1st Value- Based Contract Clinical Trials Established AZ TXNV FLCA Downey & Whittier, CA NVAZ FL,CA Dispensary Opening Patients Ser
Slide 20: Diversified Business Model with Multiple Drivers of Revenue Growth
Diversified Business Model with Multiple Drivers of Revenue Growth and Margin Expansion 20 Diverse Line of Business Management ServicesClinical Trials Data Monetization Patient Care (Medical and Radiation Oncology) Drug Dispensing Products Covered Medicaid Medicare Commercial Currently in fi
Slide 21: Value Driven Highly Attractive Economic Model
Value Driven Highly Attractive Economic Model 21 TOI saves payors 25%+ of medical oncology costs TOI captures a 20% – 40% margin on contracts Pa yo r C on tr ac ts Pr ov id er C on tr ac ts Pool of lives managed by TOI FFS Driven; High Cost for Payors and Risk-Taking Providers TOI Preferred / Exclus
Slide 22: Gain Share Contracts
Gain Share Contracts 22 • Gain share contracts offer payors an alternative to full capitation, with incentives for TOI to drive reductions in cost of care and improvements in quality of care • Typically structured with an upside-only share of savings generated on patients seen by TOI relative to a b
Slide 23: Proven economic model shows 30+% Gross Margins in Mature Markets
Proven economic model shows 30+% Gross Margins in Mature, Value-Based driven markets 23 Same Store Markets Established Value-Based Partnerships Continued Strategic Growth Same-Store Gross Margin 30+% Overall Gross Margin 20+% Growth Markets Recently opened markets Launched in partnership with nation
Slide 24: Historic growth supports continued scale to drive increased revenue
Historic growth supports continued scale to drive increased revenue…. 24 1.1 1.3 1.6 2019 2020 2021 19.3% 19.7% 20.1% 2019 2020 2021 $155 $188 $203 2019 2020 2021 New Value-Based Contracts – +9 contracts, +545k lives New Markets – 4 (in 2 states) New Clinics – 6 Acquisitions, 8 DeNovo 2019-202
Slide 25: Benefits of scale go beyond top line
….Benefits of scale go beyond top line 25 Corporate G&A Efficiencies Provider Productivity Reduced Drug costs % Margins TOI’s growth allows us to scale our infrastructure, driving better margins due to lower drug costs, and more efficient providers – all leading to more savings for our payor partner
Slide 26: Capital Deployment Strategy
Capital Deployment Strategy fueled by recent $110 million strategic investment by Deerfield Management 26 Acquisitions De Novo Growth Working Capital (predominantly funding A/R) Operating Losses Adjusted EBITDA and Net Income Profitability projected in 2024
Slide 27: 2022 Guidance
2022 Guidance 27 Updated Guidance Drivers • Strong year-over-year revenue and lives growth expected • Continued focus on pipeline execution and network expansion to deliver care under value-based contracts • Growth in California and new market penetration in Florida and Texas • Gain sharing contract
Slide 28: Key Takeaways
Key Takeaways 28 Key Takeaways Early Market Leader in Large and Growing Market Proven Economic Model with Imbedded Scalability Well Capitalized, with Disciplined Deployment Strategy Our growth enables high-quality, affordable care for more patients
Slide 29: Historical Financials
Historical Financials <\Be\ The Oncology institute SC) of Hope & innovation 29
Slide 30: Historical Financials ($ in thousands)
Historical Financials 30 ($ in thousands) Note: (1) Adjusted EBITDA is a non-GAAP measure. For a discussion and reconciliation to the nearest GAAP measure please see Slide 31 of this presentation. For Three Months Ended For Three Months Ended For Year Ended Mar 31, 2021 Jun 30, 2021 Sept 30, 2021 De
Slide 31: Adjusted EBITDA Reconciliation
31 Adjusted EBITDA Reconciliation The Company includes adjusted EBITDA because it is an important measure upon which our management uses to assess the results of operations, to evaluate factors and trends affecting the business, and to plan and forecast future periods. Adjusted EBITDA is “non-GAAP”
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