Well Health Technologies Corp. · TSX:WELL
Well Health Technologies — Q3 2024 Earnings Presentation
31 slides from Well Health Technologies's earnings presentation, Nov 1, 2024
Slide 1: Q3 2024 Earnings Presentation
%% 80? WELL Health ee ee TECHNOLOGIES CORP Q3 2024 Earnings Presentation
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward- looking statement
Slide 3: WELL Q3-2024 Financial Highlights
WELL Q3-2024 Financial Highlights Q3 Revenue Q3 Adj. EBITDA Q3 FCFA2S $251.7M $32.7M $16.1M YoY QoQ YoY QoQ YoY QoQ +23% +4% +16% +6% +69% +85% Q3 Organic Revenue1 FCFA2S Per Share Net Debt to Adj. Shareholder 23% EBITDA 6.5¢ Canada US Q2-24 Q3-24 YoY QoQ +22% +25% 2.67x 2.50x2 +62% +83% 1) Organic
Slide 4: WELL Q3-2024 Operational Highlights
WELL Q3-2024 Operational Highlights 4,000+ 38,000+ 2.2M+ Care Interactions Providers in WELL's Clinic Unique Providers supported +41% YoY Network by WELL's Technology (+35% organic) ~1.5M +46% +35% Patient visits YoY US patient visits growth YoY CAN patient visit growth +41% YoY (all organic) (26% o
Slide 5: Updating 2024 Annual Guidance
Updating 2024 Annual Guidance Adj. EBITDA Revenue FCF to Shareholders Upper half of $125M to $985M to $995M ~$55M $130M sdfs
Slide 6: Q3-2024 Themes
Q3-2024 Earnings Presentation Themes Key updates on the following themes: 1. Canadian Clinics Consolidation Opportunity and M&A Pipeline 2. Strategic Review Processes for Wisp and Circle 3. Provider Solutions potential spin-out
Slide 7: Why WELL is Positioned for Success / WELL's Market Share in Canada
Why WELL is Positioned for Success WELL’s Market Share in Canada Est. Total • 20,000 healthcare clinics across Canada Physician Spending 20292 • WELL has extensive market leadership position Total Canadian – ~$54B (larger than the next 5 combined) Physician Spending1 - $47B • Limited competition rem
Slide 8: WELL Canadian Clinics Revenue and Adj. EBITDA Growth
WELL Canadian Clinics WELL Canadian Clinics WELL Canadian Clinics Count Revenue Growth Adj. EBITDA Growth (C$ in 000s) (C$ in 000s) 350,000 45,000 190 185 40,000 300,000 170 35,000 250,000 30,000 150 200,000 25,000 128 130 20,000 150,000 110 15,000 100,000 90 10,000 50,000 70 5,000 - - 50 2021 2022
Slide 9: Clinic Absorption Model
Clinic Absorption Model WELL can address the growing need for efficient clinic management by integrating and optimizing subscale clinics into WELL’s clinic network, in an extremely capital efficient manner. >$46M revenue absorbed Highly Efficient Capital since 2023 Allocation Strategy ~$600K investm
Slide 10: Pre-Tax Unlevered ROIC
Pre-Tax Unlevered ROIC 11% WELL Health Diagnostics 24% Primary Care 14% Total Canadian Clinics
Slide 11: 2023 Cohort – Adj. EBITDA Margin Clinic Transformation Process
2023 Cohort – Adj. EBITDA Margin Clinic Transformation Process 7.0% 6.6% 6.0% 5.0% +820 bps 1,000bps margin 4.0% improvement 3.0% Technology 2.0% Solutions 1.0% WELL Shared Workflow 0.0% Services Optimization -1.0% Initial Low -2.0% -1.6% Margins At Close Q3-24 0 months 12 months 24 months
Slide 12: Affiliate Clinic Business Model in Canada
16 Owned and Operated New High Margin SAA to expand across Clinics generating $10 “Affiliate Clinic” Business Walmart’s 400+ locations million+ in annual Model in Canada revenue 62 Affiliate Clinics 90 Physicians added to Target to expand to over generating $2.2 million+ WELL Owned and 50 clinics by
Slide 13: Weight loss medications available through Tia providers
Weight loss medications Appointments are 100% confidential and secure, ensuring Private a safe and supportive space for discussing your weight loss available through Tia journey providers Weight loss consultations are available remotely by phone Wegovy Convenient or video, offering flexible support
Slide 14: Wisp and Circle Updates
Wisp and Circle Updates Strategic review process underway -——wisp—\~ —O Circle Medical +35% +61% YoY Revenue growth YoY Revenue Growth +760% Ain . Consecutive quarter of Adj. YoY Adj, EBITDA Growth EBITDA profitability GLP-1 1,200+ Hours of admin time saved on Launched new GLP-1 , : Weight Care Prog
Slide 15: WELL Provider Solutions at a Glance
WELL Provider Solutions at a Glance 15
Slide 16: Review of Q3 Financial Performance
Review of Q3 Financial Performance 16
Slide 17: Q3 2024 Financial Highlights – Revenue and Adjusted EBITDA
Q3 2024 Financial Highlights – Revenue and Adjusted EBITDA Revenue Adj. EBITDA (C$ in millions) (C$ in millions) 300 35 32.7 +23% 251.7 33 250 +16% 31 204.5 29 28.2 200 27 150 25 23 100 21 19 50 17 - 15 Q3 2023 Q3 2024 Q3 2023 Q3 2024 17
Slide 18: Q3 2024 Financial Highlights – Adj. EBITDA growth
Q3 2024 Financial Highlights – Adj. EBITDA growth Adj. EBITDA Growth Comments (C$ in 000s) 35,000 • Acceleration of EBITDA Growth: Year-over-year EBITDA 32,738 growth has accelerated from 3% Q3-23 to 16% Q3-24, 33,000 reflecting strong operational momentum. +16% 31,000 29,000 +3% 28,172 • Strong Per
Slide 19: Q3 2024 Financial Highlights – Net Income
Q3 2024 Financial Highlights – Net Income Net Income excluding Unrealized Cumulative Unrealized Gain on Loss on HEALWELL investments HEALWELL AI (C$ in 000s) (C$ in 000s) 2000 180,000 170,204 1,340 160,000 1000 140,000 0 120,000 (1,000) 100,000 93,112 (2,000) 80,000 60,000 53,877 (3,000) 39,920 40,0
Slide 20: Q3 2024 Financial Highlights – Adjusted Net Income
Q3 2024 Financial Highlights –Adjusted Net Income CRH’s One Time Revenue Impact Adj. Net Income growth adjusted for on Adj. Net Income in 2023 CRH One-Time Revenue (C$ in 000s) (C$ in 000s) 14,000 12,996 +30% 12,000 10,118 10,000 8,000 6,000 4,000 2,000 0 Q3-23 exc. Q3-24 One Time Revenue 20
Slide 21: Revenue Per Share
Revenue Per Share (C$) $1.20 $1.01 $1.00 $0.80 $0.60 $0.40 $0.20 $0.16 $- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 Rev/Share 21
Slide 22: Per Share metrics for Adjusted S/H EBITDA and FCFA2S
Per Share metrics for Adjusted S/H EBITDA and FCFA2S (C$) $0.14 5.00% $0.12 $0.10 4.00% $0.08 3.00% $0.06 2.00% $0.04 1.00% $0.02 $- 0.00% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Avg Policy Rate Adj EBITDA/Share Adj Sh E
Slide 23: Performance Pay Moving Increasingly from Shares to Cash
Performance Pay Moving Increasingly from Shares to Cash Share-based Awards Granted by Year Key Highlights (000s of shares) 7,000 6,547 • Significant Decrease from 2023 to 2024: The number of 6,000 share-based awards granted has significantly decreased from 6,547 in 2023 to 2,397 in 2024 year-to-date
Slide 24: WELL's Focus on Reducing Share Dilution
WELL’s Focus on Reducing Share Dilution WELL Share Dilution Key Drivers of Future Share Dilution 12.0% • 2024 Dilution: 3.2% of the ~3.4% dilution expected in 2024 has already been realized in 1st nine months 2024. 10.2% 10.0% • Earnouts Rolling Off: The earnouts from older 8.0% acquisitions are rol
Slide 25: Normal Course Issuer Bid Update
Normal Course Issuer Bid Update Fully Diluted Shares Outstanding 20241 Key Highlights (000s shares) • Declining fully diluted share count: Q3 2024 is the second consecutive quarter of declining share counts on a fully diluted basis. • 2024 Share Repurchases: WELL has repurchased 294k shares at an av
Slide 26: Net Debt to Shareholder EBITDA Ratio is improving
Net Debt to Shareholder EBITDA Ratio is improving WELL Leverage Ratios1 4.50x 3.98x 4.00x 3.50x 3.26x 2.97x 3.00x 2.50x 2.50x 2.00x 1.50x Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24F Q4/24F Inc. Convertible Debenture Exc. Convertible Debenture 1) Leverage ratio is defined as net debt
Slide 27: Long term shareholder value
Reduced TBEs Increased Lowering Volume of Interest Accretive Costs M&A Long term shareholder value Ongoing Debt Cost Repayment Optimization EBITDA and FCFA2S Growth
Slide 28: CRH Update
CRH Update Q3 Revenue Q3 Adj. EBITDA Completed CarePlus CRH $63.1M CRH $17.6M integration Radar $31.5M Radar $2.5M Increased future M&A Impacts of Hurricane Change Healthcare billing activity Helene and Milton update 28
Slide 29: $65M revenue run-rate, Target Adj. EBITDA positive in 2025
Target Adj. EBITDA Completed 4 acquisitions $65M revenue run-rate positive in 2025 & 4 minority investments AI Validation with WELL AI Decision Support Expanded agreement to peer reviewed being used in WELL include clinical trials publications/journals clinics
Slide 30: Outlook: 2024 and Beyond
Outlook: 2024 and Beyond 2024 on track for record WELL Diagnostic revenue, Adj. EBITDA, Primary Care seasonally integrating four clinic FCFA2S and Adj. Net strong in Q4 acquisition Income Wisp and Circle to Increased Cash Flow achieve 5%+ Adj. EBITDA CRH expecting record to Drive Highly margins; ~2x
Slide 31: Contact
° WELL Health TECHNOLOGIES CORP Contact Hamed Shahbazi CEO, Chairman & Founder hamed@well.company Tyler Baba Investor Relations investor@well.company www.well.company 550-375 Water Street Vancouver, BC V6B 5C6 Canada
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