Butterfly Network, Inc. · NYSE:BFLY
Butterfly Network — SPAC Merger (November 2020)
36 slides from Butterfly Network's SPAC merger presentation, Nov 20, 2020
Slide 1: Investor Presentation
Investor Presentation November 20, 2020 1
Slide 2: Disclaimer
Disclaimer This presentation is for information purposes only to assist interested parties in making their own evaluation with respect to the proposed business combination (the “Business Combination”) between Butterfly Network, Inc. (“Butterfly”) and Longview Acquisition Corp. (“Longview”). The info
Slide 3: Disclaimer (cont.)
Disclaimer (cont.) Important Information About the Business Combination and Where to Find It In connection with the proposed Business Combination, Longview intends to file with the Securities and Exchange Commission (the “SEC”) a registration statement on Form S-4 (the “Registration Statement”), whi
Slide 4: Today’s Speakers
Today’s Speakers Merger & Vision & Future Clinical Technology & Business & Financials Investment Development Overview Product Demo Commercial Overview Larry Robbins Dr. Jonathan R. Rothberg Dr. John Martin Gioel Molinari Laurent Faracci Stephanie Fielding Chairman Founder & Chairman Chief Medical Of
Slide 5: Merger & Investment
Merger & Investment 5
Slide 6: The Story of Butterfly
The Story of Butterfly • Driven by the vision of an innovative founder • Butterfly developed and introduced a revolutionary product • With a breakthrough technology putting ultrasound on a semiconductor chip • Pursuing ubiquity through simplicity and affordability • Addressing an unmet need • To dis
Slide 7: Transaction Overview
Transaction Overview Butterfly Network is preparing to go public through a SPAC Merger with Longview Acquisition Corp. who may raise an additional $175 million PIPE to further support long-term growth • Butterfly Network, Inc. (“Butterfly”) is the inventor / pioneer in the emerging field of semicond
Slide 8: Transaction Overview
Transaction Overview Sources, uses and pro forma ownership Sources Uses Butterfly Rollover Equity $1,293.8 Equity Consideration to Existing Investors $1,293.8 Longview Cash Held in Trust 414.01 Cash to Balance Sheet 549.01,2 PIPE Investment 175.0 Estimated Transaction Expenses 40.0 Total Sources $1,
Slide 9: Investment Case Summary
Investment Case Summary A unique investment in a dynamic Med-Tech environment Our investment case is clear: • Butterfly attacks a large, $8 billion addressable market and expands it materially by meaningfully growing each of the following: points of care, geographic reach and use cases • Butterfly h
Slide 10: Vision
Vision © 2020 Butterfly Network, Inc. 10 10
Slide 11: Driven by the Vision of an Innovative Founder
Driven by the Vision of an Innovative Founder Dr. Jonathan Rothberg PhD, Founder and Chairman, has dedicated his career to enabling breakthrough technologies to revolutionize healthcare 2000-2011 2011-2020 TODAY Dr. Jonathan Rothberg invents 4Catalyzer and Butterfly 7 C-Corps next-gen DNA sequencing
Slide 12: Clinical Overview
Clinical Overview 12
Slide 13: Addressing an Unmet Need
Addressing an Unmet Need Breaking through the barriers of conventional ultrasound systems Ultrasound usage today has been constrained by high upfront system cost, limited access, Ubiquity Mobility and suboptimal convenience. Medical Professionals’ and Patients’ Needs Affordability Ease-of-use 13
Slide 14: The Opportunity is Immense and Meaningful
The Opportunity is Immense and Meaningful Improving healthcare access and delivery is critical of the world has no access of diagnostic dilemmas can be to medical imaging 1 addressed through simple imaging 1. Per World Health Organization applied to current world population 14
Slide 15: Use-Cases: Ultrasound is Safe with Broad Applications
Use-Cases: Ultrasound is Safe with Broad Applications Ultrasound Broad Clinical Utilities Vascular Access Lung Bladder Needle Viz™ Cardiac 15
Slide 16: Expanding Access to Care Beyond Traditional Imaging Settings
Expanding Access to Care Beyond Traditional Imaging Settings New settings closer to patients create breakthrough economics and growth potential Disrupting the $8 billion global … in addition to expanding access to care in numerous new settings ultrasound market1… ~$6bn Traditional ~$2bn Equipment Ma
Slide 17: Increasing Demand for Point-of-Care (POCUS) Education
Increasing Demand for Point-of-Care (POCUS) Education Protocol 1 Sensitivity Specificity Training Requirement Evaluation for left ventricular systolic function (compared with 69%-94% 8 hours of training or 91%-94% expert sonography) 20 practice exams Evaluation of IVC to 4 hours of training and dete
Slide 18: Technology
Technology 18
Slide 19: A Revolutionary Imaging Solution of Hardware & Software
A Revolutionary Imaging Solution of Hardware & Software Powered by Ultrasound-on-Chip™ Empowered by AI © 2020 Butterfly Network, Inc. Confidential — Not for Distribution 19
Slide 20: Open Imaging Ecosystem: Devices, Content, SaaS, API & SDK
Open Imaging Ecosystem: Devices, Content, SaaS Software Image Storage (PACS) Enterprise Workflow Educational Telemedicine Services & Collaboration & Analytics Community Collective Intelligence Powered AI AI Assistance and Interpretation Apps Developer SDK Predictive Analytics for Clinical Decision S
Slide 21: A Logical, Advantaged, Expected Product Roadmap
A Logical, Advantaged, Expected Product Roadmap Our story of innovation only started with Butterfly iQ “Butterfly Labs” 2018 2020 2021 2022 2023 2024+ iQ Gen4 Probe iQ+ iQ in the Home Gen3 Probe Innovation Launched in 2018 Wearable In-Home Confidential — Not for Distribution 21
Slide 22: Business Overview
Business | S Overview ..
Slide 23: Disrupting a Large and Expanding Total Addressable Market
Disrupting a Large and Expanding Total Addressable Market Focus on expansion into new settings beyond legacy market with large addressable populations 40M+ Global Healthcare Practitioners Nursing and Midwives Addressable Populations Medical Doctors 28M+ 3 ~12M 1 5M+ 3M+ Initial Initial Target 4 Targ
Slide 24: The Time for Butterfly to Transform Healthcare is Now
The Time for Butterfly to Transform Healthcare is Now Macro Trends Aging Population Butterfly Tailwinds Chronic Disease Proliferation Move from Hospital to Home Settings Big Data / AI to Empower Decisions Wellness Monitoring Value-Based Care Adoption POCUS in Medical Education New Imaging Settings C
Slide 25: Disrupting a Large and Expanding Total Addressable Market
Disrupting a Large and Expanding Total Addressable Market Focus on expansion into new settings beyond legacy market with large addressable populations 40M+ Global Healthcare Practitioners Wearables 6 >100M Chronic Patients Nursing and Midwives in the US Alone 5 Addressable Populations Medical Doctor
Slide 26: Rapid Innovation Cycle for Better Clinical Outcome
Rapid Innovation Cycle for Better Clinical Outcome Continuous innovation streams on both hardware and software Hardware Software iQ+: Our 2nd Generation Ultrasound-on-Chip™ Recent Monthly Upgrades 15% 15% faster frame rates smaller probe head 20% 2x longer battery life continuous run time Confidenti
Slide 27: E-Commerce for Individual Practitioners and Early Adopters
E-Commerce for Individual Practitioners and Early Adopters General Medicine is #1 Buying Segment… Demonstrating the breadth, depth, and ease-of-use of Butterfly’s solutions General Medicine Emergency Medicine Anesthesiology MSK Hospitalist Speciality Surgery Cardiology Rads Medical Students OB/GYN ©
Slide 28: Healthcare Institutions to Drive Adoption at Scale
Healthcare Institutions to Drive Adoption at Scale Strong initial adoption, excitement, and momentum Butterfly Enterprise Butterfly has an existing footprint in most of the Top 100 US Health Systems 28
Slide 29: Plans to Access the Home Market
Plans to Access the Home Market Novice healthcare practitioners, then patients self scanning + wearables Alternative In-home sites of care care Dialysis Urology-Bladder centers Urgent care Cardiovascular- CHF 2023 Long term care Primary care Wearable In-Home 29
Slide 30: Financials
Financials 30
Slide 31: Butterfly has Substantial Growth Potential Across Multiple End-Markets
Butterfly has Substantial Growth Potential Across Multiple End-Markets 65% revenue CAGR from 2019-2024E ● Near-term growth supported by executing pipeline bookings across the enterprise and e-Commerce markets ● Long-term growth enabled by continued market penetration and the introduction of Wearable
Slide 32: Robust Revenue Growth with Roadmap to Compelling Margin Profile
Robust Revenue Growth with Roadmap to Compelling Margin Profile iQ vs. Wearables $400.0 $ 334.0 Wearables Conservatively $300.0 0% of 2022 Revenue, $ 235.2 5% of 2023 Revenue, and Revenue $200.0 10% of 2024 Revenue 1 $ 137.9 ($ millions) $ 78.1 $100.0 $ 44 .0 $0.0 2020 2021 2022 2023 2024 Gross Marg
Slide 33: Highly Compelling Investment Attributes
Highly Compelling Investment Attributes Over $500 million of cash1 to drive the Company through its Strong Balance Sheet investment phase and to expected positive cash flow Rapid Growth Revenue projected to grow over 65% during the forecast period Software revenue is expected to grow to between 40-5
Slide 34: Brought to the Public at an Attractive Valuation
Brought to the Public at an Attractive Valuation Merger price set at a comfortable discount to similar early-stage innovators to incentivize current and new stakeholders to maximize impact EV/Revenue Revenue CAGR 2022E 1 2020-2022E 1 High Growth Med-Tech 14.0x 34% Software-as-a-Service 13.1x 27% 2 D
Slide 35: Supported by a Clear Mission and World Class Team
Supported by a Clear Mission and World Class Team Zero selling shareholders in the transaction Dr. Jonathan M. Rothberg Laurent Faracci Chairman and Founder Chief Executive Officer • Recipient of the Presidential Medal of Technology & Innovation • Deep expertise in the consumer health space and a tr
Slide 36: Thank You
Thank You 36