Uphealth, Inc. · OTC:UPHL
Uphealth — SPAC Merger (March 2021)
52 slides from Uphealth's SPAC merger presentation, Mar 1, 2021
Slide 1: UpHealth Reshaping Healthcare
UpHealth Reshaping Healthcare February 2021 Current SPAC Ticker: GIX Future NYSE Ticker: UPH
Slide 2: Disclaimer
Disclaimer This presentation (this “Presentation”) is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination among UpHealth Holdings, Inc. (“UpHealth”), Cloudbreak Health, LLC (“Cloud
Slide 3: Disclaimer: Important Information And Where To Find It
Disclaimer Important Information And Where To Find It In connection with the Proposed Business Combination, GigCapital2 filed a registration statement on Form S-4, on February 8, 2021 including a proxy statement/prospectus (the “Registration Statement”), with the Securities and Exchange Commission (
Slide 4: UpHealth's SPAC Sponsor is a Proven Executive Chairman and Founding Innovator
UpHealth’s SPAC Sponsor is a Proven Executive Chairman and Founding Innovator with A Unique Approach Managing Partner of GigCapital Global and all its entities, including GigCapital2 Founder, COB, CEO GigOptix / GigPeak GigCapital2, Inc. (NYSE: GIX) is a $174M publicly (NYSE: GIG) traded Special Pur
Slide 5: Presenters
Presenters Ramesh Balakrishnan Jamey Edwards Martin Beck Co-Chief Executive Officer Chief Executive Officer Chief Financial Officer of Cloudbreak (1) Notes: (1) Jamey Edwards will be the Chief Operating Officer of UpHealth upon transaction close. 5
Slide 6: UpHealth Is Combining to Form One of the Only Profitable, Public, Global Digital Health Companies
UpHealth Is Combining to Form One of the Only Profitable, Public, Global Digital Health Companies Serving the Enterprise Healthcare Marketplace
Slide 7: Investment Highlights
Investment Integrated Global Health Platform Highlights Addressing Massive Markets with Critical Unmet Needs UpHealth provides a unique investment Proven Solutions with Significant opportunity in a rapidly Contracted Growth Globally growing sector with significant scale, business visibility, profita
Slide 8: UpHealth at a Glance
$115mm 1,800+ UpHealth 2020E Revenue 67% Revenue US Healthcare at a Glance 12% CAGR ‘21 Venues Served by Domestic Telehealth UpHealth’s solutions ‘20 EBITDA Margin simplify some of 13k 14k+ 2.5mm+ healthcare’s most Video Annual Prescribers complex issues Endpoints Encounters through providing easy t
Slide 9: UpHealth is Combining Industry Leaders from Healthcare's Most Rapidly Growing Sectors
UpHealth is Combining Industry Leaders from 4 of Healthcare’s Most Rapidly Growing Sectors UpHealth has been purposely constructed to support local Integrated Care healthcare in addressing their Management most pressing challenges: • Care Coordination Behavioral Digital • Addressing Health Dispariti
Slide 10: Delivering OneUPHealth to Power Digital Health's Transformation
Delivering OneUPHealth to Power Digital Health’s Transformation Across the Continuum Integrated Care Global Digital Behavioral Management Telehealth Pharmacy Health BUSINESS DESCRIPTION: BUSINESS DESCRIPTION: BUSINESS DESCRIPTION: BUSINESS DESCRIPTION: BUSINESS DESCRIPTION: Population Health & Resol
Slide 11: Operating Across Key Major Verticals with Main Roles in Healthcare Delivery
Operating Across Key Major Verticals with Main Roles in Healthcare Delivery... Health Systems / Health Government Employer Education Medical Groups Plans Agencies Health 11
Slide 12: Connecting the Dots to Create Digitally Enabled Care
Connecting the Dots to Create Digitally Enabled Care at Care Communities Home AtCare Work UpHealth’s care communities surround a patient with the resources they need when they need it, combining disparate data sources, unifying Digital Encounter Driven communication and aligning unique points on the
Slide 13: To Create Healthcare the Way it is Supposed to Be
To Create Healthcare the Way it is Supposed to Be Integrated & Coordinated Care Teams Proactive, Connected & Data-Driven Cumbersome & Complex Single Personalized & Guided Encounter Care Experience Inaccessible, Inefficient, Frictionless, Engaging & Poor Experience Easy to use Current State of Health
Slide 14: The Opportunity
The Opportunity
Slide 15: Healthcare, One of the Largest Economic Markets in the World, Is Broken
Healthcare, One of the Largest Economic Markets in the World, Is Broken… $4 Trillion Sick in Costs(1) VS $ (17.7% of GDP) #1 Cause Rife with Health Preventive of Personal Disparities Bankruptcy Patients Providers Nearly Half of U.S. Physicians Overwhelming Complexity Care 42% report burnout, Payors
Slide 16: One of the Last Major Verticals to Go Through Digital Transformation
and Is One of the Last Major Verticals Sources: (1) Ibisworld, 2019; (2) selectUSA; (3) CMS NHE Fact Sheet, March 2020 (4) Markets and Markets Report, Dec 2018 to Go Through Digital Transformation… (5) BusinessWire, Jan 2021 TRANSPORTATION & FINANCE AUTOMOTIVE RETAIL FITNESS HEALTHCARE WAYFINDING Ma
Slide 17: UpHealth at the Nexus of Multiple Massive and Rapidly Growing Markets
With UpHealth Sitting at the Nexus of Multiple Massive & Rapidly Growing Markets at the Beginning of the Adoption Curve Global Telehealth $61B Integrated Care Global Market in 2019(1) Management $1.35T Medicare & Medicaid Spend(4) Behavioral Health Digital $100B Pharmacy Additional U.S. Behavioral H
Slide 18: The Digital Stars Are Aligning for Digital Health Adoption
and the Digital Stars Are Aligning to Create the Perfect Conditions for Digital Health Adoption… Decreasing technology costs Covid as a catalyst 81% of the US population has a smartphone (1) 84% Population becoming of the US population has broadband (2) digitally savvy Sources: (1) Pew Research Cent
Slide 19: Care Being Pushed Out Into the Community
With Care Being Pushed Out Into the Community Away From Traditional Brick and Mortar Settings The “gold standard” in healthcare Fast, efficient and cost effective digitally is no longer the in-person visit, it driven encounters is the Digitally Driven Encounter. In today’s world, that might be email
Slide 20: Strong Movement to Value Based Care
Supported by a Strong Movement to Value Based Care Focused on Quality and Outcomes + There is a movement away from Fee For Service (FFS) healthcare Quality Service where clinicians get paid based on what they do to somebody to value = based care where they get paid for how healthy they can keep them
Slide 21: UpHealth will leverage its installed base to reshape healthcare
UpHealth will leverage its large installed base, technology, expertise & care communities to reshape healthcare by making the complex simple, the costly cost effective and the inhumane human. For UpHealth, healthcare just got personal. 21
Slide 22: Business Overview
Business Overview
Slide 23: A Proven Leadership Team
A Proven Leadership Team Proven track record of success in creating industry leaders in Healthcare, Technology, Services & Finance Dr. Chirinjeev Kathuria Dr. Avi Katz Co-Chairman & Co-Chairman Co-Founder Al Gatmaitan, Ramesh Balakrishnan Syed Sabahat Azim, MD Mariya Pylypiv, Ph.D. Jamey Edwards DSc
Slide 24: Recognized for Expertise in Building Innovative Industry Leaders
Recognized for Expertise in Building Innovative Industry Leaders… World Economic Forum Becker’s Social Entrepreneur Patrick Soon-Shiong Digital Health Entrepreneur360 Healthcare Hospital Review of the Year Innovation Award Global 100 Top Entrepreneurial Supplier of the Year 260+ telehealth 2020 Jour
Slide 25: Extensive Reach Across Major Health Systems and Payors Globally
With an Extensive Reach Across Major Health Systems & Payors Globally... Academic Specialty Community Payor / Gov’t / Other
Slide 26: Delivering Value to the 4P's of Healthcare
Delivering Value to the 4P’s of Healthcare UpHealth will serve as a single source for services and technologies essential to the delivery of affordable and effective care to all healthcare stakeholders Platform Offerings Value Delivered A full suite of digital health tools A personalized, convenient
Slide 27: Unified Platform Across the Continuum of Care
UpHealth’s Unified Platform and Ability to Deliver Across the Continuum of Care is What Local Healthcare Wants Our B2B and B2B2C business model that provides game changing technologies and tech enabled services fully integrated with major end users’ workflows and systems
Slide 28: Building a Defensible Moat Against Point Solutions
Building a Defensible Moat Against Point Solutions in Market for Healthcare’s Platform Driven Future Point Solutions Platform Solution One-off experiences Holistic and integrated that address specific end-to-end patient needs experience 28
Slide 29: Delivering a One Stop Shop (OneUPHealth) for Digital Health
Via Delivering a “One Stop Shop” (OneUPHealth) for Digital Health Enablement at the Point of Care • Simplifying: Replacing disparate point solutions with an easy to use platform putting critical resources at clinical teams fingertips • Scaling: Rapidly growing & purely complementary solutions servin
Slide 30: Delivered on a Global Scale
Delivered on a Global Scale UpHealth’s platform will be comprised of a global network of patients, providers and payors, addressing complex care challenges in developed and developing markets Global operations in 10+ nations Ability to help US institutions with global strategies as well as provide l
Slide 31: Focused on Levels of Integration Post Combination
UpHealth is Focused on 3 Levels Go-to-Market: Sales operations & enablement coordinating company of Integration Post offerings and allowing us to offer Combination… OneUphealth at the point of care. Product Integration: Integrating technology via API’s & Open Platforms to offer integrated solutions
Slide 32: Product Roadmap for Each Strategic Business Unit
With Current Product Roadmap for Each Strategic Business Unit Driving Growth & Revenue Synergies Q3 – Q4 2022 • Predictive Analytics Q1 – Q2 2022 • ML & AI for chronic care • Expand Telepsychiatry across US management and psychiatry • Deploy joint company platform into Q3 – Q4 2021 rural/underserved
Slide 33: The UpHealth Platform
The UpHealth Platform
Slide 34: Combining to Deliver OneUPHealth at the Point of Care
UpHealth is Combining to Deliver “OneUPHealth” at the Point of Care Tele-Interpretation Services Tele-Psychiatry Capabilities Powered by Cloudbreak Powered by BHS & Transformations Integrated Full Service ePharmacy Capabilities Specialty Consults Powered by MedQuest Powered by Cloudbreak Digitally D
Slide 35: Starting with Population Health and Care Coordination
Starting with Population Health and Care Coordination Thrasys organizes the healthcare Healthcare Funding Sources continuum by linking together Public / Government Payor Premiums disparate systems across industry verticals into a cohesive system aggregating data, Payments for Outcomes, Quality & Per
Slide 36: One of the Largest Telemedicine Installed Bases in the Nation
Adding One of the Largest Telemedicine Installed Bases in the Nation A Leading Network of US Hospital Systems Unified Telemedicine Across the Care Continuum Surrounds patients with their clinical care team on a single multi-party call Any Device, Any Language, Anywhere Interoperable with leading EMR
Slide 37: Scalable Primary Care Telehealth Solution in International Markets
an Innovative and Scalable Primary Care Telehealth Solution in International Markets Redefining the Digital Health Encounter The helloLyf & Litmus Suite of Solutions Digitally driven primary & specialty care encounter combining the best of technology with in-person healthcare Focused on emerging mar
Slide 38: Integrating Digital Pharmacy with Licenses in All States
Integrating Digital Pharmacy with Licenses in All 50 States Digital Pharmacy At a Glance A full-service manufacturing & compounding pharmacy Full pharmacist support throughout patient care journey Robust medical education platform Operates a 40,000 square foot facility with the ability to expand ano
Slide 39: Tech Enabled Behavioral Health
and Tech Enabled Behavioral Health… A Comprehensive Mental Health Offering Services Evidence based medical and Mental Health, rehabilitation & substance disorder Clinical care services across the full continuum of care - Residential, partial hospitalization, intensive outpatient & outpatient Holisti
Slide 40: Unified, Interoperable Digital Health Platform
to Deliver a Unified, Interoperable Digital Health Platform of Market Leading Solutions Activated with the Simple Push of a Button 40
Slide 41: Financial Profile
Financial Profile
Slide 42: UpHealth is a Unique Group of Assets
UpHealth is a Unique Group of Assets… Strategically Selected Digital Health Capabilities Addressing a Global Market Need A Unified Platform Streamlining the Delivery of Effective, Affordable Care NEAR-TERM PROJECTIONS 1. Diversified Revenue Base and Unique Positioning in the Market 77% Profitable wi
Slide 43: Predictable Growth and Profitability
with a Combination of Predictable Growth & Profitability Year-over-Year 69% 78% EBITDA 12% 12% 20% Revenue Growth % Margin % 74% CAGR $346M 127% CAGR $69M $194M $115M $24M $13M 2020E 2021E 2022E 2020E 2021E 2022E 16% 17% 28% Integrated Care Management 2020E 2020E 31% Global Telehealth EBITDA By Reve
Slide 44: Diversified Growth Engines By Business Unit
with Diversified Growth Engines By Business $9M $10M $194M Unit $46M $14M $115M 2020E Telehealth Global Integrated Management Care Pharmacy Digital Behavioral Health 2021E By Growth $19M $194M $19M $6M Category $36M $115M 2020E Contracted Services Contracted Volume Expansion Product Organic Addition
Slide 45: Valuation
Valuation
Slide 46: UpHealth Compares Favorably to Public Peers on Growth and Margins
UpHealth Compares Favorably to Public Peers on Growth and Margins (1) 2021E Peer Group Revenue 99.9% Mean Growth(2) 81.3% 69.3% 47.0% 37.8% 35.2% 30.7% 30.1% 30.0% 42.3% 20.4% 11.0% 2021E 31.6% EBITDA Margin(2) 12.4% 12.4% 7.7% 2.4% 4.8% 3.9% 6.3% 6.3% 11.6% 16.2% Notes: Sources: Company filings, Bl
Slide 47: Being Priced at a Discount Initially
is Being Priced at a Discount Initially… 2021E Peer Group Revenue Mean (1) 30.7x 29.7x Multiple 24.4x 22.1x 16.3x 17.6x 11.5x 10.9x 10.8x 10.7x 7.2x 8.5x UpHealth discount 77% 76% 71% 67% 56% 37% 34% 33% 32% 15% 59% to peers Notes: Sources: Company filings, Bloomberg estimates and values as of marke
Slide 48: Enormous Potential to Trade Up in the Near Term
With Enormous Potential to Trade Up in the Near Term Enterprise Value $43.6B $21.9B $14.7B $13.7B $8.1B $7.8B 17.6x Mean ~1.6x EV / ‘21E Revenue $4.4B $2.3B $2.5B $0.6B $1.9B $1.4B Peer Group EV / Revenue Enterprise Value Mean Valuations: Now vs. IPO(1) ~2.4x 17.6x $11.9B ~3.7x 7.4x $3.2B At IPO Cur
Slide 49: The Transaction
The Transaction
Slide 50: Strong Balance Sheet, Positioned for Significant and Stable Growth
UpHealth is a Leading Digital Health Company with a Strong Balance Sheet, Positioned for Significant & Stable Growth Estimated Transaction Sources & Uses ($ in millions) Pro Forma Enterprise Valuation at Close ($ in millions) SOURCES(1) PF TRANSACTION GigCapital2 Cash in Trust $168.0 Total Equity Va
Slide 51: UpHealth Is Combining to Form One of the Only Profitable, Public, Global Digital Health Companies
UpHealth Is Combining to Form One of the Only Profitable, Public, Global Digital Health Companies Serving the Enterprise Healthcare Marketplace
Slide 52: Thank You
Thank You VISIT OUR WEBSITES: GigCapital2 UpHealth, Inc. www.gigcapital2.com www.uphealthinc.com FOR GIGCAPITAL2 INFORMATION, CONTACT: Brian Ruby, ICR ir@gigcapital2.com FOR UPHEALTH & CLOUDBREAK INFORMATION, CONTACT: Investor Relations: Reed Anderson reed.anderson@icrinc.com Media: Phil Denning phi