Astrana Health Inc. · NASDAQ:ASTH
Astrana Health — Investor Presentation (September 2024)
36 slides from Astrana Health's investor presentation, Sep 4, 2024
Slide 1: Investor Presentation September 2024
Investor Presentation September 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 21€ of the Exchange Act. Forward- looking statements include any statements about the Company's bus
Slide 3: Astrana Accelerates Healthcare Transformation At Scale
Astrana Accelerates Healthcare Transformation At Scale Astrana Healthis a healthcare platform that organizes and Astrana’s platform combines empowers providers to drive accessible, high-quality, and high- value care for all patients through a provider-centric, Scale technology-driven approach via it
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 10,000+ Employed and affiliated providers! B® & ..Power high-quality outcomes *
Slide 5: Transforming the status quo into a coordinated, high-value 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) Wikia +~20 Others} x Insuffi
Slide 6: Three segments: Care Partners, Care Delivery, Care Enablement
© 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 Sue ayoune Heiicare +20 Others Health Care Partners Affiliate Providers © Affiliate provid
Slide 7: Care Partners is our risk-bearing network
© Risk-bearing Care Partners is our risk-bearing network made up of our (CaeeParers) provider partners, both affiliated and employed Hievance Humana Medicaid Pon + Acts asa “single payer” for our network of providers, enabling VBC arrangements (i.e., fultrisk contracts) Care Partners + Serves all pa
Slide 8: Care Delivery is our network of employed providers and owned clinics
Care Delivery is our network of employed providers and owned © Risk-bearing organization (Care Partners) clinics, increasing access in underserved communities .+, Astrana Health alitae +~20 Others Primary Care _ | | Ancillary Services Multi‘Specialty_} | Outpatient Clinics Note: See “Use of Non-GAAP
Slide 9: Care Enablement is our end-to-end clinical, operational, 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 cA 1million Total value-based lives Hispanic/ wer Diverse Wi Caucasian Patient tg Black/African demographic: ‘American 1 Other Robust 98% provider Avgannual retention provid
Slide 11: The Astrana Playbook: Repeatable Levers for Scalable Outcomes
The Astrana Playbook: Repeatable Levers for Scalable Outcomes Growth: Sustainably growing membership to bring better care to more Americans Risk Progression: Increasing alignment through total cost of care responsibility in value- based arrangements In Outcomes and Cost: Achieving superior iP patien
Slide 12: Better care at lower cost in our core California market
We demonstrated our ability to provide better care at lower cost in our core market, where we continue to have significant whitespace to grow California 1992 2019 2021-2022 2023 2024 26.7M 20.6M — 14.4M Population Reach Population Reach —<_— = > Launchedin Built density in Expanded into Expanded int
Slide 13: Growing into new markets
We continue 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 + In 2024, three new de novo primary care clinics opened in Texas 2023 Tarrant 2.2M pop. Harris 4.8M pop.
Slide 14: Planned acquisition of CHS
Planned acquisition of CHS expected to accelerate our density in existing markets and create footholds in attractive new markets CHS: A Managed Services Organization, currently owned by Centene Transaction highlights 9! ~100k 2.5k States Memberlives | PCPs Cash Earnout consideration + potential Stra
Slide 15: Astrana's Pro-Forma Footprint to Span the Country
Astrana’s Pro-Forma Footprint to Span the Country B® Existing markets = Existing market with New markets! increased density (AZ,NM, AL, GA, FL, VA,MD, CT) . Note: Proforma, anticipated for 2025, as of August 7" 2024, assuming the closing of the proposed acquisition of Collaborative Health Systems .+
Slide 16: Unit economics improve with total cost of care responsibility
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 Op? —_E
Slide 17: 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 Full risk Capitated Revenue by Risk Arrangement? Me rsby et Arrangement Partial risk ! : J Projected 40% | 3% ' 53% ' ' oo ' ' 72% 100% ' ' ' 67%! cos fo? E AT% ' ' 35%
Slide 18: 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 1 i | 1t& Care Managem: Patient Outcon + Intelligent patient population + Alkin-one point-of-care tool for n nt pati risk stratification both providers and practices +
Slide 19: 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 20: Proprietary workflow software empowers clinical teams with real-time data
Outcomes & Proprietary workflow software empowers Astrana’s clinical teams with real-time data to drive care coordination and access ensuring appropriate care in the right se Technology pairs with clinical staff... For Example: nee Average SNF® length of stay (days) for new care-managed cohort* soon
Slide 21: Care management platform coordinates scalable care planning
Qutcomes & Proprietary care management platform coordinates scalable care planning workflows, ensuring no patient falls through the cracks After a hospital visit, Leslie is risk stratified into our Care Management program Autonomously, our s Example Pathways intensive care management patient journey
Slide 22: Clinical teams and technology drive superior patient outcomes
Qutcomes & "¥ Cost 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
Slide 23: 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 8; = i 2 = P 2 & HB 8 @ & iS Ops VBE'Suite& Pointof Analytics & Clinical UM& Care Provider Contractin
Slide 24: Execution of strategy drives unit economic improvement
Relentless execution of our strategy drives unit economic improvement Astrana playbook Unit economic impact Growth 100% 85% Risk Progression a 10-20% (5 EBITDA Margin to +. Astrana Health Outcomesand Cost Operating Leverage | | Total Retained Revenue to Cost of Opex? EBITDA to Premium by +. AstranaH
Slide 25: Execution of strategy drives profitable growth
Relentless execution of our strategy drives profitable growth Revenue($ in millions) Adj. EBITDA(S in millions) a $165.0- Growth ~26% CAGR B70 ~26% CAGR $185.0 Risk Progression $146.6 cl $1,387 $133.5 BHO $1,144 Outcomes and Cost $102.8 ; seer $774 Operating Leverage $561 [ | $54.2 2019 2020 2021 20
Slide 26: Astrana Guidance for 2024
Astrana Guidance for 2024. (Sin millions, except for per share information) Q22024 financial results Revenue $486.3 NetIncomeattr.toASTH $19.2 Adjusted EBITDA? $47.9 EPS - Diluted $0.40 Actual FY 2023 Results 2024 Guidance Range Total Revenue $1,386.7 $1,750-$1,850 Net Incomeattr. to ASTH' $60.7 $54
Slide 27: Investor Relations
Investor Relations Asher Dewhurst investors@astranahealth.com
Slide 28: Appendix
Slide 29: Scalable outcomes, rapid growth, and profitability set it apart
Astrana’s scalable outcomes, rapid growth, and profitability set it apart in value-based care Business Model AtRisk Lives Markets Serves All Patient Types Track Record of Care Delivery Market Cap 2024E Revenue* 2024€ Adj. EBITDA‘ Consistent Profitability® FV /24E Adj. EBITDA ‘Source: Equity Research
Slide 30: Experienced, mission-driven management team
Experienced, mission-driven management team with deep clinical knowledge and a proven ability to execute > & ? 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 31: Summary of Selected Financial Results
Summary of Selected Financial Results Three Months Ended June 30, Six Months Ended June 30, $inthousands except per share data 2024 2023 2024 2023 Revenue Capitation, net $ 442,574 $ 300,549 $ 808,484 $ 600,753 Risk pool settlements and incentives 18,408 20,121 35,785 33,583 Management fee income 1,
Slide 32: Segment Results
Segment Results For the three months ended June 30, 2024 . Care Care Care Intersegment Corporate Consolidated Sin thousands Partners Delivery Enablement Other Elimination Costs Total Totalrevenues $ 463,277 34,857 36,172 (48,041) - 486,265 % change vs prior year quarter 44% 32% 3% 40% Cost of servic
Slide 33: Balance Sheet Highlights
Balance Sheet Highlights $inmillions 6/30/2024 12/31/2023 $ Change Cash and cash equivalents and investments in marketable $327.7 $296.3 $31.4 securities! Working capital $260.5 $242.8 $17.7 Total stockholders’ equity $683.0 $616.7 $66.3 1. Excludingrestricted cash .+, Astrana Health 33
Slide 34: Reconciliation of Net Income to EBITDA & Adjusted EBITDA
Reconciliation of Net Income to EBITDA & Adjusted EBITDA Three Months Ended June 30, ‘Six Months Ended June 30, Sin thousands 2024 2023 2024 2023 Net Income $ 21,866 $ 17,482 $ 38,728 $ 29,970 Interest Expense 8,587 3,632 16,172 6,901 Interest income (3,513) (3,327) (7,509) (6,335) Provision for inc
Slide 35: 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 June 30, 2024 2023 2022 2021 2020 2019 Net Income $ 66.6 $ 578 $ 457 $ 461 $ 12241 15.8 Interest expense 25.4 16.1 79 5.4 9.5 47 Interest income (15.4) (14.2) (2.0) (1.6
Slide 36: Guidance Reconciliation of Net Income to EBITDA & Adjusted EBITDA
Guidance Reconciliation of Net Income to EBITDA & Adjusted EBITDA 2024 Guidance Range (Sinthousands except per share data) Low High Netincome 62,500 75,500 Interest expense 18,000 18,000 Provision for income taxes 28,000 35,000 Depreciation and amortization 28,500 28,500 EBITDA 137,000 157,000 Loss
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