Molina Healthcare Inc · NYSE:MOH
Molina Healthcare — Merger or Acquisition (April 2020)
9 slides from Molina Healthcare's merger presentation, Apr 30, 2020
Slide 1: Molina Healthcare to Acquire Magellan Complete Care
Molina Healthcare to Acquire Magellan Complete Care April 30, 2020
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 proposed acquisition of Magellan Complete Care. The Company intend
Slide 3: Combination at a Glance
Combination at a Glance Strategic product fit, complementary geography and compelling return profile Molina Magellan Complete Care Membership (1) 3.4M 155K 2019 Revenue ~$16.8B >$2.7B 2019 Reported MCR 85.8% 88.9% 2019 EBITDA (2) ~$1.1B Slightly profitable Molina at 3/31/20. MCC at 12/31/19.See reco
Slide 4: Geographic Footprint of Combined Entity
Puerto Rico Geographic Footprint of Combined Entity Operating cost leverage through Medicare and Marketplace expansion opportunities Portfolio of businesses in government managed-care Magellan Complete Care operates in 6 states, including 3 new states for Molina AZ: newly procured TANF and CHIPVA: r
Slide 5: Strategic Rationale
Strategic Rationale Strategic attributes of acquisition are compelling Highly complementary geographic and product additionssupports existing high acuity and duals strategycreates opportunities for both fixed cost and operating leverage Revenue streams from MCC contracts are long-tenured and stable
Slide 6: Transaction Summary
Transaction Summary Uses available cash, attractively priced, many sources of value creation and attractive returns $820 million net of certain tax benefitsNet purchase price approximately 30 percent of full year 2019 revenue Purchase Price Value Creation Three sources of value: margin improvement,
Slide 7: SBRMOLINA
SBRMOLINA HEALTHCARE
Slide 8: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures
Slide 9: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures As of December 31, 2019 Net Income $737M Adjustments: Depreciation, and Amortization of Intangible Assets and Capitalized Software $89M Interest Expense $87M Income Tax Expense $235M EBITDA $1,148M 2019 Actual
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