Agilon health : Wolfe Research Healthcare Conference 2024

AGL

Wolfe

Investor

Presentation

November 19, 2024

Copyright © 2024 agilon health

Key Takeaways

Strengthening the business for long-term success off strong and improving partner base

Structural demand and business fundamentals strong despite macro headwinds

Robust growth has been a near-term headwind, but expect long-term powerful as environment and market mix stabilizes

Taking key actions to drive improved profitability, improve execution and further strengthen our business

Improving baseline mix exiting 2024 and stronger jumping off point for 2025

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3

Structural Factors Drive Long-Term Demand

210K PCPs serving 60M seniors (74M by 2032) need a better business model

Accelerating Health Burden

Primary Care Capacity is Strained

% of adults age 65+ with one or more chronic conditions

~10-20% Projected Shortage by 2030

85.6%

56.0%

23.1%

1 chronic

2 chronic

3 chronic

condition

conditions

conditions

100%

50%

0%

2022

2024

2026

2028

2030

Primary Care Capacity

Growing Senior Population

US Senior Population 2023-2030

74M

60M

2023

2032

MA Enrollment Growing

Share of Medicare Beneficiaries Enrolled in MA

54%

64%

2023

2034

External sources: HRSA State of the Primary Care Workforce; Euromonitor

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4

Pace of Growth in this Environment has Created Near-Term Challenges but Powerful Long-Term Opportunity

Number of

Partnerships

Average Member Vintage (Years)

Existing Members

New Members

525K

365K

160K

225K

140K

143K

82K

365K

51K

143K

225K

92K

2021

2022

2023

2024

10

15

20

26

2.6

2.8

2.9

3.1

Note: 2024 Reflects Q3 2024

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5

Post Recent Exits, all Year 1+ Partnerships Producing Positive Medical Margin

Partnerships being exited were driving AEBITDA loss

MA Medical Margin (2024E, $PMPM, incurred)

Year 1 partnerships performing above Year 2+ mid- performers (room to further mature)

Exiting, Low

Year 2+, Near

Year 2+, Mid

Year 2+, High

Term Path to

Year 1

Performance

Performance

Performance

Profitability

Average Member

3

2

5

4

1

Vintage (years)

Membership*

75k

86k

139k

87k

138k

# Partnerships

2

3

8

7

6

% of Partnerships

13%

33%

29%

25%

(omits exits)

100% of remaining Year 1+ partnerships generating positive

PMPM MM;

>80% are generating positive AEBITDA

Note: *Membership as of Q3 2024

6

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Improving Outcomes and Lowering Healthcare Costs

2023 Standard ACO Gross Savings Rate* by Membership

Gross

Savings

Rate

Membership

STARs Performance by Market Class

4.6

Class of 2018

4.4

Class of 2019

Class of 2020

4.2

Class of 2021

Class of 2022

4.0

4 Star Benchmark

3.8

3.6

3.4

3.2

2018

2019

2020

2021

2022

2023

*Gross Savings Rate is savings rate after removing all model discounts (comparable across models and tracks)

Copyright © 2024 agilon health.

7

Actions We Are Taking to Strengthen the Platform for Long- Term Success

Exiting 2 unprofitable partnerships

Narrowing '25 exposure to Part D risk

Rationalizing our payor footprint

Increasing conservatism around new partners based on payor dynamics

Copyright © 2024 agilon health.

8

Cash Flow Expectations

Anticipate current cash position and cash flow management levers allow us to manage through macro environment and take action to accelerate the path to profitability and break-even cash flow.

$113

$35

$399

$330

$35

$220

Cash Flow Levers

Q3

FY 24

FY 25

Cash

ACO REACH Cash

Copyright © 2024 agilon health.

9

Disclaimer

agilon health Inc. published this content on November 19, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 19, 2024 at 13:17:09.045.