FOXO Technologies Inc. · OTC:FOXO
FOXO Technologies — SPAC Merger (February 2022)
40 slides from FOXO Technologies's SPAC merger presentation, February 2022
Slide 1: Investor Deck
(1) Foxo Investor Deck
Slide 2: Disclaimer
Disclaimer General This presentation does not constitute an offer or invitation for the sale or purchase of securities and has been prepared solely for informational purposes. The information contained in this presentation (this “Presentation”) has been prepared for the exclusive use of the selected
Slide 3: Disclaimer Continued
Disclaimer Continued Financial Information; Use of Projections The financial and operating forecasts and projections contained herein represent certain estimates of FOXO as of the date thereof and include projected financial numbers, including revenues, valuation and other metrics derived therefrom.
Slide 4: Transacting with Delwinds Insurance Acquisition Corp.
STRUCTURED FOR SUCCESS Transacting with Delwinds Insurance Acquisition Corp. Industry Validator • Unparalleled access to potential customer relationships and insurance leaders Andrew Poole • Tiberius sponsor remains invested in NASDAQ: IGIC since transaction close and has Chairman and CEO continued
Slide 5: This transaction makes longevity science fundamental to life insurance
FOXO TECHNOLOGIES This transaction makes longevity science fundamental to life insurance FOX O I N VE STOR DE CK 20 22 Page 5
Slide 6: Investment thesis
KEY HIGHLIGHTS Investment thesis Next-Gen Life Insurance Platform to modernize industry with saliva- based epigenetic underwriting technology that eliminates blood and urine requirements, and embed longevity science as new value proposition for consumers Multiple avenues for Launching with scalable
Slide 7: Proven leadership in insurance, longevity science, health, and technology
EXPERT TEAM Proven leadership in insurance, longevity science, health, and technology. Jon Sabes Erin Sharoni Brian Chen, PhD Tyler Danielson Robby Potashnick CEO & Founder Chief Product Officer Chief Science Officer Chief Technology Officer Chief Financial Officer FOX O I N VE STOR DE CK 20 22 Page
Slide 8: The next paradigm shift
THE NEXT PARADIGM SHIFT There are moments in time when innovation is so radical, the course of civilization is forever changed. FOX O I N VE STOR DE CK 20 22 Page 8
Slide 9: This is the biological century
This is the biological century The rapid maturation of DNA sequencing, AI, and machine learning is transforming our understanding of biology and longevity. Technology Review, Antonio Regalado, 2021 Extending human healthspan and longevity: a symposium report, New York Academy of Science, 2021 FOX O
Slide 10: Molecular biotechnology is transforming human longevity
THE SCIENCE OF HEALTHSPAN Molecular biotechnology is transforming human longevity FOX O I N VE STOR DE CK 20 22 Page 10
Slide 11: Our mission
OUR MISSION To make longevity accessible to all, empower people to live healthier, own their data, and control their future FOX O I N VE STOR DE CK 20 22 Page 11
Slide 12: Life insurance designed to keep you alive
NEXT-GEN LIFE INSURANCE Life insurance designed to keep you alive ™ SALIVA-BASED UNDERWRITING + LONGEVITY REPORT FOX O I N VE STOR DE CK 20 22 Page 12
Slide 13: Life insurance is ripe for disruption
AN UNPRECEDENTED OPPORTUNITY Life insurance is ripe for disruption All figures are USD per annum. (1) American Council for Life Insurers, Life Insurers Fact Book 2020 (2) McKinsey 2020 Global Insurance Pools statistics and trends (3) Life underinsurance in the US: bridging the USD 25 trillion mortal
Slide 14: Industry stakeholders: core challenges
INDUSTRY STAKEHOLDERS: CORE CHALLENGES Consumers Agents Carriers Product has low relevance and Product is difficult to sell, underwriting Incumbents are large, old and slow commoditized is time consuming and invasive 1989 2021 30% 49% 1886 63% (3) (4) (5) (6) 77% 52% Sales breakage rates of Of all l
Slide 15: Insurance platform and Services platform
B2B2C MO DE L B2B MO DE L Insurance Services platform NO W platform • Life insurance products • Consumer engagement & • Healthy longevity & Saliva-based underwriting services underwriting • Healthy longevity & Saliva-based • B2B2C: Offer to consumers via agents underwriting • Modernize products • B2
Slide 16: B2B2C Insurance platform
B2B2C Insurance platform • Longevity fundamental to life insurance • Adaptable infrastructure • Experienced team BACKBONE • Workbench for saliva-based underwriting At launch • Term life insurance, 10/20 yr ≤$1M • Accelerated underwriting — instant issue SALES OPERATIONS • Epigenetic measures used fo
Slide 17: Longevity science
Longevity science Popularity • 30M+ consumers purchasing 23&Me, Ancestry.com, etc. • Consumer interest in longevity, health, science • People want to live longer and healthier Opportunity • US ranks 26th of 35 OECD countries for life expectancy (1) • Yet ranks 1st in healthcare spending per capita •
Slide 18: Core values
Core values Accuracy “I know the data is correct.” Transparency “I know what I’m paying for/receiving and how my data is being used.” Trust “I know my data is secure, de-identified, and used ethically.” Ownership “I know I have the power to collect and withdraw my data at any time.” Non-discriminati
Slide 19: Next-Gen Life Insurance
10 / 20 YEAR TERM Next-Gen Life Insurance Saliva-based underwriting Longevity Report Eliminates the need for invasive blood and urine A first-to-market personalized Longevity Report collection, a revolutionary value proposition: includes insights into biological aging and Faster, cheaper, better epi
Slide 20: Perfect product-market fit
FOXO LIFE Perfect product-market fit Epigenetic clock Molecular health Consumer & agent survey (1) Age Acceleration Age Deceleration 58% 10% 80% Consumers in-market Consumers out-of- Agents surveyed would Age-related disease Healthy aging were interested in market were interested recommend life Risk
Slide 21: A whole new reason to buy life insurance
READY TO LAUNCH A whole new reason to buy life insurance FOX O I N VE STOR DE CK 20 22 Page 21
Slide 22: B2B Services platform
B2B Services platform • Proprietary science • Experienced team • Adaptable & scalable infrastructure BACKBONE • Global opportunity to modernize industry Saliva-based underwriting • Enhanced accelerated underwriting • Eliminate sales friction / eliminate sales breakage • Improved underwriting protect
Slide 23: Modernizing underwriting with saliva-based epigenetic biomarkers
LONGEVITY SCIENCE We’re modernizing underwriting with saliva-based epigenetic biomarkers FOX O I N VE STOR DE CK 20 22 Page 23
Slide 24: Why saliva-based underwriting is a compelling opportunity
EPIGENETIC BIOMARKERS Why saliva-based underwriting is a compelling opportunity • LIMRA identifies medical underwriting as the single greatest pain point in this customer experience (1) • Agents loathe inconvenient, invasive, time consuming blood & urine specimen collection required for medical unde
Slide 25: What is epigenetics
What is DNA is your genetic code. Epigenetics is the expression of that code. Inherited from parents Changing, modifiable, adapting, and reacting Associated with age-related decline, and Fixed at birth disease states Determines ancestry, ethnicity, gender, eye Impacted by tobacco, alcohol, diet, exe
Slide 26: Epigenetic biomarkers use case
EPIGENETIC BIOMARKERS Genetically Underwriting Risk Classifications identical twins Use case Longevity 5 Epigenetic Health Profiles 4 Science 3 Epigenetics can distinguish between 2 current, former and never smokers – 1 comparing favorably to the life insurance industry’s use of cotinine 0 biomarker
Slide 27: Proprietary epigenetic longevity biomarkers
PROPRIETARY Health status data Epigenetic data Epigenetic Longevity biomarkers Science We use automated machine learning to find patterns of DNA methylation occurring along the epigenome that correlate to current states health and wellness. We call these identifiable Epigenetic biomarkers patterns “
Slide 28: Collaborations and Scientific Advisory Board
RESEARCH SCIENTIFIC Collaborations Advisory Board Physicians’ Health Study • Epigenetic and health status data on 11,340 physicians Peter Laird, PhD Epigenetics • 30 years follow-up Van Andel Institute (VAI) • 2,000+ mortality events and other major diseases VITAL Study • Epigenetic and health statu
Slide 29: Underwriting protocols
EPIGENETIC BIOMARKERS Underwriting protocols (1) Policy face amount Insured age 21–30 31–50 51–60 61–70 71+ Accelerated underwriting Data Data $0–$449,999 Data Data Data Saliva-based underwriting Paramed Paramed APS Medical underwriting Data Data $500,000–$999,999 Data Data Data Paramed Paramed APS
Slide 30: Underwriting protocols
EPIGENETIC BIOMARKERS Underwriting protocols Accelerated underwriting Application Data Decision Instant Saliva-based underwriting • Saliva is less invasive and easier to collect • Epigenetics generates information similar to blood/urine tests for underwriting Application Data Saliva Decision Days •
Slide 31: Underwriting protective value framework
EPIGENETIC BIOMARKERS Underwriting protective value framework Example: $2M policy, male, age 35 Gross Claims Benefit Underwriting Underwriting Over Accelerated Net Claims Benefit After Underwriting Information Cost Over Accelerated Expected Claims (1) Underwriting Underwriting Cost Accelerated Onlin
Slide 32: Business model
REVENUES & PROFITABILITY Business model FOX O I N VE STOR DE CK 20 22 Page 32
Slide 33: Development plan
COMMERCIALIZATION Development plan NO W Preparation We are executing a three phase development plan for the growth of our products and services. • Complete proprietary epigenetic biomarker R&D • Build technology stack to support operations • Acquire life insurance company: FOXO Life Insurance Compan
Slide 34: Market share capture
SALIVA-BASED UNDERWRITING Market share capture Insurance carriers adopting accelerated underwriting (1) (2) Projected policies eligible for accelerated underwriting and modelled saliva-based underwriting market share capture (3) Target m arket opportunity is the projected grow th in accelerated unde
Slide 35: Revenues and total EBITDA by platform
POLICIES SOLD & SERVICED Revenues and total EBITDA by platform (1) Pro-forma policies by platform Pro-Forma Revenue by Platform and Total EBITDA (,000 thousands) ($USD Millions) 2, 000 $1 ,60 0 1, 80 0 $1 ,40 0 1, 60 0 $1 ,20 0 1, 40 0 $1 ,00 0 1, 200 $8 00 1, 00 0 $6 00 80 0 $40 0 60 0 40 0 $20 0 2
Slide 36: Transaction Summary
Transaction Summary Overview Pro Forma Valuation • Transaction Consideration of $300mm, subject to closing adjustments, inclusive of $100mm management earnout shares, subject to achievement of post-close milestones Total shares outstanding (3) 56.3 • Transaction will be funded by Delwinds Insurance
Slide 37: Implied Valuation
Implied Valuation Relative Valuation ($B) Transaction Value Significant potential for meaningful investor value creation $5.0 • Applies 1.7x-6.3x EV / revenue multiple to FOXO’s 2025E revenue to arrive at an implied future enterprise value • The range reflects the fact that there is no company perfe
Slide 38: Comparable company analysis
Comparable company analysis FOXO’s focus on longevity differentiates it from peers FOXO(1) High Growth Distribution(2) Diagnostics Biotech Insurtech(3) HSCM Public InsurTech Index ’22E – ’23E Revenue Grow th 156% 36% 27% 29% ’23E – ’24 E Revenue Grow th 10 5% 29% 28 % 22% Averag e 20 23E EV / Revenu
Slide 39: Public Comparable Comps: Benchmarking
Public Comparable Comps: Benchmarking Average Revenue Growth Rates (%) 156% 105% Operational 36% 29% 29% 28% 27% 22% ’23 – ’24E ‘21E – ‘22E ’22E – ’23E ‘22E – ‘23E ’24E – ’25E ‘22E – ‘23E ’23E – ’24E ‘23E – ‘24E FOXO High Growth Diagnostics Insurtech (2) FOXO High Growth Diagnostics Insurtech (2) Di
Slide 40: Thank you
Thank you For further information, please contact Jon Sabes CEO & Founder ceo@foxotechnologies.com Life insurance designed to keep you alive ™ © 2022 FOXO Technologies Inc. All rights reserved.