Agilon Health, Inc. · NYSE:AGL
Agilon Health — Investor Presentation (October 2021)
28 slides from Agilon Health's investor presentation, October 2021
Slide 1: agilon health October 2021
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Slide 2: Disclaimers and Forward-Looking Statements
Disclaimers and Forward-Looking Statements FORWARD-LOOKING STATEMENTS AND OTHER IN FORMATION Statements in this presentation 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 E
Slide 3: Who We Are
Who We Are We Are… Unlocking Medicare Advantage growth and value-based care at scale by partnering with leading independent physician groups 20 17 230K+ Year exclusive Diverse geographies Medicare Advantage partnerships among live and members including live We Enable… implementing markets and implem
Slide 4: Investment Highlights
Investment Highlights Large, Growing First Mover Long-Term Alignment with Addressable Market Advantage Local Physician Leaders Unlocking Diverse & Physicians Are Efficient Non-Traditional Geographies Winning Growth Model Copyright © 2021 agilon health. Confidential internal document containing propr
Slide 5: Structural Changes Define the Future
Structural Changes Define the Future Senior Population Healthcare Now Primary Care Is Growing Focused on Outcomes Redefined Total Medicare Enrollment PCPs influence up to 90% of costs Medicare Advantage Enrollment $750B 90 of Healthcare 80 Spending is Wasted 70 High Value PCP: 60 (or 25%) 91% “Netfl
Slide 6: agilon Total Care Model
agilon Total Care Model Move everything closer to the physician • Align PCP economics with outcomes • Long-term JV with physician groups Partnership • Full risk, multi-payor globally capitated Medicare line of business • Like-minded group of • Purpose-built agilon entrepreneurial physicians Total Ca
Slide 7: Purpose-Built Full Stack Platform
Purpose-Built Full Stack Platform People Process Capital agilon Technology Platform Platform Capabilities Clinical Programs & Payor Engagement Data Integration & Insights Product Development Quality Growth Performance Management National Policy Analytics Financial Management Direct Contracting Copyr
Slide 8: "Flipping" Medicare Advantage to a Single Risk Line of Business
“Flipping” Medicare Advantage to a Single Risk Line Of Business CURRENT STATE agilon Traditional FFS Model Total Care Model MA Payor 1 MA Payor 2 MA Payor 3 Commercial Traditional Medicare Insurance Medicare Advantage Payors FFS Payors Single PCP-Led MA Risk Line of Business Better FFS Rates Low FFS
Slide 9: Unlocking Geography At Scale - First Mover Advantage
Unlocking Geography At Scale - First Mover Advantage In-market membership growth opportunity Payor 1 ~180 ~230 Payor 2 PCP Growth from 2017-2020 Columbus, OH Payor 3 21K 37K MA Member Growth From 2017-2020 ✓ Rapid Scale Through Anchor Tenant Payor 4 ✓ Multi-Payor Network ✓ Low-Cost Member Growth ✓ B
Slide 10: Diverse Markets Benefit Equally
Diverse Markets Benefit Equally Pinehurst, NC Buffalo, NY 410K 38% 1.21M 61% 18+ population MA penetration 18+ population MA penetration 12% 72% 4% 26% MA Growth PPO penetration MA Growth PPO penetration Note: All stats reflect market statistics for all exclusive contracted geographies except for pa
Slide 11: All Stakeholders Benefit
“This partnership allows me to practice medicine and All Stakeholders Benefit care for patients the way I was trained to.” - Gary Pinta, MD (Pioneer) PATIENTS PROVIDERS 83 78% 95% 73 >90% Patient NPS wellness visit of members agree Physician NPS Share in believe that quality completion vs. that they
Slide 12: Better Results For Physicians and Patients
Better Results For Physicians and Patients Technology & Aligned Physicians Manage Physicians Engaged in Physicians Improve The Entire Continuum The Growth of Their Care Delivery of Care Business Referral Insight Investing Ahead of the Personalized Growth Program Outcome Dashboard Age-In and Extended
Slide 13: Highly Actionable Addressable Market
Highly Actionable Addressable Market Rapidly Expanding Actionable TAM Growing at 8% CAGR 2020 Projected 2025 # Patient Spend (1) # Patient Spend(2) Total Medicare beneficiaries 61.7M $859B 70.3M $1,250B Total Total Beneficiaries Medicare Medicare beneficiaries attributed to 26.7M $267B 30.4M $389B I
Slide 14: How Our Systematic Approach is Working
How Our Systematic Approach is Working Membership CAGR of 41% in Ohio and 17% in Columbus from 2018-2021 Identify Anchor Establish Network Access Embedded Lives Add PCPs Network Effects PCPs Join Anchor Members in Ohio or Network ~65K PCP Panel 48K Columbus, Network Acquisition 34K OH Medicare Advan
Slide 15: Scaling Nationally - 8 States and 17 Geographies
Scaling Nationally - 8 States and 17 Geographies Successfully executing hub and spoke strategy across multiple geographies Go-Live: Pre-2019 2019 2020 2021 2022 Hawaii Ohio Texas Pennsylvania North Carolina New York Connecticut Michigan 2017 2018 2019 2020 Today 1 Geography 2 Geographies 4 Geographi
Slide 16: Financial Model
Financial Model Copyright © 2021 agilon health. Confidential internal document containing proprietary information. Do not distribute.
Slide 17: Key Attributes of agilon's Financial Model
Key Attributes of agilon’s Financial Model Highly efficient growth model accesses embedded TAM and margins over time Long Term • 20-year partnerships with leading independent physician groups Partnerships • Aligned model enables access to embedded TAM and margin • Revenue based on subscription-like
Slide 18: agilon health Economic Model
agilon health Economic Model Illustrative Economic Model Comments PMPM % Retained 1 agilon RBEs enter into 20-year PSAs 1 2 Paid by CMS to by MA Plan For Admin PMPM with anchor PCP partner and global Medical MA Plan and Profit Paid to Expense capitation agreements with multiple agilon / (ER, Hospita
Slide 19: Maturing Long-Term Margin on a Growing Membership Base
Maturing Long-Term Margin on a Growing Membership Base Geography 1 Geography 2 Geography 3 Average Membership Average Membership Average Membership CAGR: 17% CAGR: 20% CAGR: 21% 34K 10K 22K 28K 8K 17K 24K 7K 15K 21K Year 0 Year 1 Year 2 Year 3 Year 0 Year 1 Year 2 Year 0 Year 1 Year 2 Medical Margin
Slide 20: Highly Attractive LTV / CAC Dynamics
Highly Attractive LTV / CAC Dynamics Example Geography Within Ohio Market Launch Cost of $2.7M Nominal Ongoing CAC Compelling LTV/CAC $400 per member CAC Year 0 No costs for brick and Payback period of 1-2 years $110 incremental per member CAC mortar footprint across live markets CAGR: 20% Avg. Memb
Slide 21: Significant Network Momentum
Significant Network Momentum Membership Revenue Geographies on the Platform CAGR: 65% CAGR: 83% (Live and Implementation) 184K - $1,810M- 17 Thousands Millions 185K $1,820M 131K $1,218M 11 90K $794M 7 57K $475M 4 11 29K 8 $200M 2 4 2 1 2017 2018 2019 2020 2021G 2017 2018 2019 2020 2021G 2017 2018 20
Slide 22: Improving Medical Margin and Operating Leverage
Improving Medical Margin and Operating Leverage Medical Margin Network Contribution $192M $99M $63M $114M $107M $26M $63M $54M 2019 2020 2Q20 YTD 2Q21 YTD 2019 2020 2Q20 YTD 2Q21 YTD Platform Support % of Revenue Adjusted EBITDA 11.2% $17M $2M $6M 8.2% 8.3% 6.5% ($57M) 2019 2020 2Q20 YTD 2Q21 YTD 20
Slide 23: Financial Outlook for 3Q and Full Year 2021
Financial Outlook for 3Q and Full Year 2021 Quarter Ending Year Ending September 30, 2021 December 31, 2021 Ending Members 183,000 – 184,000 184,000 – 185,000 Total Revenue $450M – $453M $1,810M – $1,820M Adjusted EBITDA ($41M) – ($38M) The Adjusted EBITDA loss reflected in the full year 2021 outloo
Slide 24: Appendix
Appendix Copyright © 2021 agilon health. Confidential internal document containing proprietary information. Do not distribute.
Slide 25: Environmental, Social and Governance Considerations
Environmental, Social and Governance Considerations Sustainable community-based primary care • agilon was built to transform healthcare in communities across the country. We do this 26% through community-based physicians that Lower Hospital are critical components of their local Readmit healthcare d
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations (Dollars in thousands) Six Months Ended June 30, (Dollars in thousands) Six Months Ended June 30, 2021 2020 2021 2020 Net income (loss) $ (314,092) $ (24,010) (Income) loss from discontinued operations, net of income taxes 3,027 12,704 Income (loss) from operations $ (310,47
Slide 27: Non-GAAP Reconciliations Continued
Non-GAAP Reconciliations Continued Year Ended (Dollars in thousands) December 31, (Dollars in thousands) Year Ended 2020 2019 December 31, Net income (loss) $(60,052) $ (282,588) 2020 2019 (Income) loss from discontinued operations, net of Income (loss) from operations $ (56,673) $ (106,574) income
Slide 28: agilon health
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