Agilon Health, Inc. · NYSE:AGL
Agilon Health — Investor Presentation (June 2022)
24 slides from Agilon Health's investor presentation, June 2022
Slide 1: Investor Presentation
Investor Presentation June 2022
Slide 2: Disclaimers and Forward-Looking Statements
Disclaimers and Forward-Looking Statements FORWARD-LOOKING STATEMENTS AND OTHER INFORMATION Statements in this release that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchang
Slide 3: Trusted Partner Empowering Physicians
Trusted Partner Empowering Physicians agilon health Partners with Leading Physician Groups, Transforming Their Medicare Business to a Value-Based, Total Care Model ~500,000 1,600+ Partner Primary Care Risk Members on Platform Physicians (2,200+ Total PCPs) 23 Partner Groups Diverse Partners 12 State
Slide 4: Investment Highlights
Investment Highlights Large, Growing First Mover Long-Term Alignment with Addressable Market Advantage Local Physician Leaders Unlocking Diverse & Physicians Are Capital Light, Non-Traditional Geographies Winning High Visibility Model Copyright © 2022 agilon health. Confidential internal document co
Slide 5: Healthcare Challenges Require a Scaled Solution
Healthcare Challenges Require a Scaled Solution PCPs Are the Key Structural Factors Accelerating Demand for Value to Unlocking Value for Seniors… …But Don’t Have the Business Senior 62M 78M Medicare population is increasing (2020–2030) Model to Support It Population is Growing 39% 55% MA penetration
Slide 6: Primary Care Physicians Need a New Business Model
Primary Care Physicians Need a New Business Model Traditional Fee for Service Subscription Relationship Transactional Subscription Unsustainable Economics Total Care Model Uncoordinated/No Time Care Team Coordinating Care Fragmented (Payor-Focused) Single Experience (Payor-Agnostic) Copyright © 2022
Slide 7: Strategic Choices → Clear Advantages
Strategic Choices → Clear Advantages Our Strategic Choices Partnership Advantages Partnership with existing, scaled physician organizations First Mover Target non-traditional geographies Alignment Local Scale Develop purpose-built solution Copyright © 2022 agilon health. Confidential internal docume
Slide 8: Aligned Physician Partner in Value Drives Better Outcomes
Aligned Physician Partner in Value Drives Better Outcomes Refers Patients to Akron Hawaii Changes Prescribing High Value Cardiologist Patterns on High-Cost Drugs Saving ~$2,000 per Patient Saving $9,500 per Patient in Downstream Spend with Better Patient Experience and Better Outcomes Lower Out-of-P
Slide 9: Local Market Scale is Crucial
Local Market Scale is Crucial agilon agilon Partner Next Largest Independent Geography Membership Partner PCPs Total Patients PCP Organization (2022P) 239 PCPs ~67,000 28 PCPs Columbus, OH ~265,000 46% of Market MA + DC 3 PCPs 183 PCPs ~36,000 Austin, TX ~375,000 8 PCPs 31% of Market MA + DC 73 PCPS
Slide 10: Scaled PCPs Aligned in Value Change Care Delivery
Scaled PCPs Aligned in Value Change Care Delivery Status Quo Improving Care Delivery and Access • Limited Data Visibility • High Data Visibility & • Poor Coordination Actionable Insights Specialists • Complex • Highly Coordinated Care Team • No Accountability • High Efficiency • No Team Support • PC
Slide 11: First Mover Advantage Across Diverse Partners & Geographies
First Mover Advantage Across Diverse Partners & Geographies Partnered with Longstanding, Leading Physician Groups East Texas Austin, TX Across 25 Communities in 12 States <100K >2M Population Wilmington, NC Buffalo, NY Portland, 33% 66% Syracuse, Buffalo, NY Bangor, ME MA Penetration Traverse City,
Slide 12: Improving Healthcare Quality and Experience
Improving Healthcare Quality and Experience 11 year average tenure of World Class NPS 80+ partners PCP Annual Wellness Visits 94% >75% 89% agree they receive comprehensive, high-quality care rely on PCP All Patients Benefit for specialist when our partnership moves the 35% recommendations community
Slide 13: Business Model Advantages Show in Results
Business Model Advantages Show in Results Capital Light Speed to Predictable Medical Margin Sticky 12:1 LTV/CAC Profitability Margins Maturation Patient-Physician Markets profitable in 6–12-month new market Year 4+ partner markets Relationships 400+ partner facilities 1 to 2 years with $2M capital i
Slide 14: Financial Model
Financial Model Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute. 14
Slide 15: agilon health Economic Model & Key Attributes
agilon health Economic Model & Key Attributes Illustrative Economic Model Long-Term • 20-year partnerships with leading groups Partnerships • Surplus reinvested to expand PCP access • Revenue based on subscription-like PMPMs High • New markets implement 6–12 months prior Visibility • Growth driven b
Slide 16: Significant Momentum & Forward Visibility
Significant Momentum & Forward Visibility Ending Membership Revenue 340K–355K $2,505M– $2,590M CAGR: DCE CAGR: ~64% 238K ~67% $1,833M DCE $1,218M 131K 90K $794M 57K $475M 29K $200M 2017 2018 2019 2020 2021 2022G 2017 2018 2019 2020 2021 2022G Medical Margin Adjusted EBITDA 2020 benefitted from suppr
Slide 17: Strong Medical Margin Progression Across Member Cohorts
Strong Medical Margin Progression Across Member Cohorts Cohort Medical Margin PMPM in Partner Markets (2018-2021)1 2018 Member Cohort (1 Market) $251 2019 Member Cohort (3 Markets) 2020 Member Cohort (7 Markets) 2021 Member Cohort (10 Markets) 2020 COVID Impact $193 $168 Members $133 $161 ~24K $152
Slide 18: Highly Attractive LTV/CAC
Highly Attractive LTV/CAC Payback Period <1 Year for 2020 and 2021 Member Cohorts Membership Medical Network Capital & Acquisition Costs Margin (PMPY) Contribution (PMPY) Return $1,808 $904 ~41K Members 2020 26K New Geography 15K Same Geography $1,637 $818 Payback: Year 1 Member $1,551 $776 LTV / CA
Slide 19: Driving Significant Growth in Members & Margins
Driving Significant Growth in Members & Margins Outlook for Medicare Advantage Members and Build to 2026 750K-850K New Geography Same Geography ~390K 260K–270K 186K 2021 2022G 2023P 2026P DC Members 52,000 80,000–85,000 ~110,000 ~110,000 PCPs on Platform 1,400+ 1,600+ 2,200+ 3,800+ Med. Margin (PMPM
Slide 20: Balance Sheet Capital Deployment
Balance Sheet Capital Deployment Balance Sheet & Cash Flow Capital Deployment Priorities ~$1B of net cash as of March 31, Increased PCP capacity and adjusted EBITDA positive in 2022 enhance quality of network Expect to generate substantial Platform investments, including cash flow during 2022–2026 t
Slide 21: Massive Opportunity for Value Creation
Massive Opportunity for Value Creation Our Long-Term Opportunity Value Drivers for agilon health Grow the agilon Network: ~200,000 New markets + new partners Physician retention and attraction Primary Care Physicians Expand Access to Primary Care – Larger Panel Sizes Over Time: ~200 for MA, ~400 wit
Slide 22: Appendix
Appendix Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute. 22
Slide 23: Financial Outlook
Financial Outlook Quarter Ending Year Ending June 30, 2022 December 31, 2022 Ending MA Members 253,000 – 258,000 260,000 – 270,000 Ending DCE Members 85,000 – 90,000 80,000 – 85,000 Total Revenue $640M – $652M $2,505M – $2,590M Medical Margin $80M – $83M $290M – $305M Adjusted EBITDA $4M – $7M $0M –
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations (Dollars in thousands) Year Ended December 31, 2021 2020 2019 2018 Net income (loss) $(406,787) $(60,052) (282,588) (146,926) (Income) loss from discontinued operations, net of income taxes 1,303 (3,156) 168,285 65,338 Interest expense 6,146 8,135 9,068 9,839 Income tax expe