TSXV: NEWU Corporate Overview February 2021 - Newtopia.
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
TSXV: NEWU Corporate Overview February 2021
Forward-Looking Information
Certain statements in this presentation are forward-looking information or forward-looking statements. Such information and statements, referred to herein as “forward-looking statements” are made as of the date of
this presentation or as of the date of the effective date of information described in this presentation, as applicable. Forward-looking statements relate to future events or future performance and reflect current
estimates, predictions, expectations or beliefs regarding future events. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance (generally, forward-looking statements can be identified by use of words such as “outlook”, “expects”, “intend”, “forecasts”, “anticipates”, “plans”, “projects”, “estimates”, “envisages,
“assumes”, “needs”, “strategy”, “goals”, “objectives”, or variations thereof, or stating that certain actions, events or results “may”, “can”, “could”, “would”, “might”, or “will” be taken, occur or be achieved, or the
negative of any of these terms or similar expressions, and other similar terminology) are not statements of historical fact and may be forward-looking statements. Such forward-looking statements are based on a
number of assumptions that may prove to be incorrect, including, but not limited to: the ability of Newtopia to execute on its business plan; Newtopia’s business performances; Newtopia’s business prospects and
opportunities; and completion of listing on a listing on a stock exchange. Newtopia considers these assumptions to be reasonable in the circumstances, given the time periods for such outlook. However, there can be
no assurance that any one or more of the industry, market, operational or financial targets as set out herein will be achieved. Inherent in the forward-looking statements are known and unknown risks, uncertainties
and other factors that could cause actual results, performance or achievements, or industry results, to differ materially from any results, performance or achievements expressed or implied by such forward-looking
statements including, but not limited to, those risk factors set forth in this presentation. Prospective investors and/or current investors should not place undue reliance on these forward-looking statements as a
prediction of actual results, as a number of important factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, estimates, assumptions, and intentions expressed in
such forward-looking statements. The forward-looking statements reflects Newtopia’s current expectations and beliefs regarding future events and operating performance of Newtopia and is based on information
currently available to Newtopia. Actual results may differ materially from the forward-looking statements contained herein. These risks include, but are not limited to, risks relating to the offering of special warrants,
risks related to changes in the regulatory framework applicable to Newtopia’s business; risks relating to dependence on key personal; access to capital; the risk of Newtopia’s business; the risk of a change in
investment return; the potential for a conflict of interest; and tax related risks. The foregoing list of factors that may affect future results is not exhaustive. When relying on forward looking statements, Investors
should carefully consider the foregoing factors and other uncertainties and potential events. The forward‐looking statements contained herein is current as of the date of this presentation. Except as required by law
Newtopia does not have any obligation to advise any person if it becomes aware of any inaccuracy in or omission from any forward-looking statement, nor does it intend, or assume any obligation, to update or revise
these forward-looking statements to reflect new events or circumstances. Any and all forward-looking statement included in this presentation is expressly qualified by this cautionary statement, and
except as otherwise indicated, is made as of the date of this presentation.
Future Oriented Financial Information
To the extent any forward-looking information in this presentation constitutes “future-oriented financial information” or “financial outlooks” within the meaning of applicable Canadian securities laws, such information
is being provided to demonstrate the anticipated market penetration and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on
such future-oriented financial information and financial outlooks. Future oriented-financial information and financial outlooks, as with forward-looking information generally, are, without limitation, based on the
assumptions and subject to the risks set out above under the heading “ Forward Looking Statements”. Newtopia’s actual financial position and results of operations may differ materially from management’s current
expectations and, as a result, Newtopia’s revenue and expenses may differ materially from the revenue and expenses profiles provided in this presentation. Such information is presented for illustrative purposes only
and may not be an indication of the Company’s actual financial position or results of operations.
Certain Other Matters
By accepting delivery of a copy of this presentation, each such person agrees that he, she or it will not transmit, reproduce or otherwise make this presentation, or any information contained in it, available to any
other person, other than those persons, if any, retained by such person to advise such person with respect to an investment in the securities of Newtopia, without the prior written consent of Newtopia. In
consideration for the time and effort expended by Newtopia and its representatives to prepare this presentation, these obligations shall survive indefinitely, whether or not a prospective investor and/or current
investor acquires any securities of Newtopia.
All dollar figures contained in this presentation are in CAD, unless otherwise stated.
2
Meet Newtopia
Newtopia is a tech enabled habit change provider
focused on eliminating the risk of chronic disease
Proven
Marquee
Outcomes &
Scalable Partners Recurring
Accreditation
Virtual Care Revenue
Platform Model
Massive Valuable
Addressable Data
Market
3
Investment Highlights
Newtopia is a tech-enabled habit change provider focused on preventing chronic disease
We prevent, reverse and slow the progression of chronic disease while enriching mental health,
resilience and optimal human performance to eliminate the risk of chronic disease
Randomised Control Trial Proven & Fully CDC accredited
Proprietary platform leverages genetic, social and behavioral insights to create individualized habit
change programs with a focus on type 2 diabetes, heart disease, stroke and body weight.
Published Randomized Control Trial in JOEM focused on metabolic syndrome, concluded that at scale,
personalized programs would lead to significant downstream reduction in clinical events and costs. This
study validates the 2:1 ROI to employers or risk bearers from Newtopia’s platform.
Building a rich repository of genetic and phenotypic data and powerful AI analytics engine.
Growing list of Fortune 500 companies, under multi-year agreements, including
JP Morgan Chase, CVS Health & Accenture
Strong Growth and Financial Position
3-year CAGR –> Active Participants - over 70%
–> Revenue - over 100%
–> Gross Profit - over 185%
Strong Balance Sheet – $5M+ Cash, $5M bank revolver, no Debt
Began Trading on TSXV under symbol NEWU on May 4, 2020
4
Broken US Sick Care System – Needs Primary Prevention
Private Payers
~100M
Employers
~140M
Public Payers
~100M
5
6
in $ Millions
-
50,000.0
100,000.0
150,000.0
200,000.0
250,000.0
300,000.0
350,000.0
400,000.0
450,000.0
1960 500,000.0
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
Real NHE 1986
1987
1988
1989
1990
1991
1992
1993
NHE as % GDP
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
Broken US Sick Care System – Needs Primary Prevention
Chronic Disease - Massive Problem for US Payers
80% of the
population
Pre-Diabetes Pre-Stroke
has one or more Pre-Chronic
risk factors
250 million
(80% of US population) Pre-Heart Morbid
$700B+ Pre-Chronic At-Risk Disease Obesity
Target Market
in healthcare costs
are driven by symptoms of ‘Pre-Chronic’s
Obesity NASH
Source: International Diabetes Foundation, Highlight Health, CMS.gov
7
Primary Prevention Habit Change Provider
Out of Range/Abnormal Risk Factors Through Biometrics or Risk Screener
1 Waist circumference
or BMI
5x as likely
to develop
Untimely death Kidney disease
2 Elevated blood type 2 diabetes Vision disability Liver damage
glucose / A1C
3 Elevated
blood pressure
2x as likely
to develop Heart problems
Weakness
or paralysis
heart disease
4 Elevated triglycerides Deteriorating
3x as likely Coma
mental health
to have a
5 Low HDL cholesterol stroke Decreased
productivity
Increased societal
and household
challenges
Source: International Diabetes Foundation, Highlight Health, CMS.gov
8 CDC.com
Prevent, Reverse, and Slow the Progression of Chronic Disease
COVID-19
80% of the US
population has
at least one
INDIRECT risk factor
COSTS
PHYSICAL
HEALTH
Healthy 1-2 Risk Factors 3+ Risk Factors Diabetes, Heart Disease, Stroke, NASH
$3,400/year $4,400/year $5,400/year $15,000-20,000/year
Average Paid Medical Healthcare Cost per Member for US Payers
Newtopia reverses this progression, moving participants down the curve
Source: Aetna Innovation Lab
9
Formula for Habit Change – CDC Gold Standard Approval We don’t teach people about a healthy lifestyle, we help them build new habits so they start living one Learning Platform – Traditional DPP Providers vs. Sustainable Habit Change - Newtopia 10
How Does Newtopia Work? – Hyper Personalized Engagement
Personal
Profile
Genetic
Invitation to Engagement
Personality-Matched
Inspirator
Supportive Online
Social Community
Personalized
Nutrition, Exercise,
and Well-Being Plan
Engaging Gaming
Newtopia
Wearable App
Bio-Sensors
11Newtopia’s Patented Virtual Care Platform
Behavioral Economics
& Psychology
Technology & Habit Data Analytics
User Experience Change Deep Learning
Design Smart Automation
12Does Newtopia Work? Proven Clinical Outcomes & ROI
10%
Average Body Weight Reduction (%)
10%
US $1,464 in savings
Annual reduction in medical costs
7.5% 2X in-year ROI
Newtopia continues to replicate
4.3%
and improve on RCT results in our
5%
commercial book of business
2.5%
0%
Year 1 Year 2
Newtopia Randomized Control Trial Typical Prevention Program Outcomes
Newtopia is proven to deliver material healthcare savings for its customers
Source: RCT: Steinberg, Gregory MB, BCh; Scott, Adam MBA; Honcz, Joseph MBA; Spettell, Claire PhD; Pradhan, Susil MS, “Reducing Metabolic Syndrome Risk Using a Personalized Wellness
13
Program.” Journal of Occupational and Environmental Medicine. December 2015; Year 2 data – internally evaluated and reported by Newtopia and Aetna Inc.; Typical Prevention Program
Outcomes – based on anecdotal feedback from customers and industry peersCompetitive Landscape – Truly Differentiated
Content integration
Virtual / Hyper Personalized
Affordable Engagement
Expensive Engagement
Traditional / in-person
Collaboration
Ecosystem
Content silos
Newtopia’s differentiated 1:1 precision habit change approach beats out the competition
14Newtopia Clients: Strong Growth Potential
750k
Total Employees
375k
50% At-Risk Addressable
18%
Historical Average
Conversion
67.5k
Potential
Participants
15k
Active
Participants
15Newtopia Business Model: Subscription Based
Participant Welcome Kit Monthly Subscription Outcome Milestone
One-time fee Per engaged participant Trigger: 5% body weight reduction
C$230/kit C$65/month[1] C$200/success
Average Recurring Revenue per Participant (3 yrs+) = C$1,600[2]
with room for growth over time
Notes:
1. Average monthly fees for Wholesale/Direct over 3 year estimated participant lifetime
2. ($230/kit) + ($77 year 1 price x 70% engagement x 12 months + $59 year 2,3 price x 45% engagement x 24 months) + ($200 x 50% achievement of success fee) = $1,600
16Genetic + Phenotypic Data = Potential Upside
YEAR 1 YEAR 2 YEAR 3+
17Driven Team—Transforming an Industry
Jeff Ruby Lara Dodo Bill Van Wyck Anthony Lam
Founder & Chief Executive Officer Chief Growth & Operations Officer Chief Technology Officer & Head of Product Chief Financial Officer
Previously co-founded Cleveland Clinic Previously CEO of TimePlay and Co- Previously founder, CEO and CIO Zillion, Previously with Points International Ltd.
Canada, Life Screening Centres, and Founder of Bedrock Affect President Redroller, Inc. (TSX: PTS, NASDAQ: PCOM), Cryptologic Inc
Genetic Diagnostics Inc. (TSX: CRY, NASDAQ: CRYP, LSE AIM: CRP)
Peter Seider Michele Dodds Mark Jackson Rikki Bennie
Chief Information, Privacy, & Security Officer SVP Client & Experience SVP Commercial SVP Marketing
Previously with Aviva Canada and Aviva Previously with Nanthealth, Preventure, Previously with Nanthealth, Teladoc, Previously with Cineplex
North America, and Information Security Human Care Systems, ComPsych and CVS Cigna and Aetna and Employee #1 at Newtopia
Executive at Nedbank Caremark.
18Our Financial Performance
Newtopia Annual Revenue & Gross Margin
Annual Revenue & Gross Profit Margin
10000 55%
* 8,939
45%
8000
35%
6,109
Revenue in C$ 000's
6000
Gross Margin
25%
4000 9 months
3,074 15%
2000 1,504
5%
735
0 -5%
2016 2017 2018 2019 2020
* Includes YTD Q3 2020 (9 months)
20 Revenue in C$ 000’s Gross Profit Margin (%)Newtopia Quarterly Results
Quarterly Revenue & Gross Profit Margin
4,000 100%
3,500
80%
3,000
Gross Profit Margin (%)
2,500
60%
52%
C$ in 000's
49%
39%
2,000 45%
43%
38%
35% 40%
1,500
37%
1,000 21%
19%
20%
500 10%
892 885 704 593 1,761 1,609 1,202 1,538 3,863 2,687 2,389
- 0%
Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20
21 Revenue in C$ 000’s Gross Profit Margin %Newtopia Engagement: Steady Growth
# Average Quarterly Engagement
35,000
30,100 *
30,000
25,000
20,000
15,000 13,750
9 months
10,000 8,450
4,633
5,000
1,664
-
2016 2017 2018 2019 2020
* Includes YTD Q3 2020 (9 months)
Average # Engaged Participants (rounded to nearest 100)
22Newtopia Monthly Engagements per Quarter
# Quarterly Engagement
35,000
30,400 30,500
30,000
29,400
25,000
20,000
14,800 15,000
15,000
12,900
12,300
10,000
10,000 9,000
7,500 7,300
5,000
-
Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20
23 Monthly Engagements per quarter (rounded to nearest 100)Capitalization Table
# O/S W.A. Strike
Current Cap Table
(MM) (C$ per share)
Ownership
Common Shares
Subject to Escrow:
Management & Insiders 18.1
Institutions 38.8
Other Shareholders 33.8
90.7 $0.70
October 2020 Offering Management &
* Insiders
Institutions 5.3 0.95 18%
Other Shareholders 2.6 0.95 Other Shareholders
Total Basic Shares 98.6 $0.72 37%
Dilutive Securities
Employee Options 10.7 $0.48
Warrants 13.6 $0.72
Broker Warrants 1.6 $0.69
October 2020 Offering 2.6 $1.30 Institutions
45%
October 2020 Offering - Broker Warrants 0.6 $0.95
Total Dilutive Securities 29.1 $0.69
Fully Diluted Shares 127.7
Equity Valuation - basic shares (C$MM) $71.0
Cash Balance $7.0
Debt None
Notes:
• W.A. = weighted average
24 • Ownership % is based on basic common share count at listing after conversion of all debentures and preferred shares
• 75.6M of total basic common shares are subject to staged-release escrow agreementsPublic Company - Comparables
La st Pric e Ma rk e t Ca p EV Sa le s CA GR Sa le s ( C$ MM) EV / Sa le s
Co m p a ny N a m e Ex c h T ic k e r 2 2 - Ja n- 2 1 ( C$ MM) ( C$ MM) ( '18 - '2 0 ) LT M CY 2 0 e LT M CY 2 0 e
U.S. Te le m e d icine & D ig it a l He a lt h Co m p a nie s
Telad o c Healt h NYSE TDOC US$ 26 3.0 0 50 ,0 36 52,9 84 6 1.3% 1,10 3 1,383 4 8.0 x 38.3x
Oak St reet Healt h NYSE OSH US$ 54 .75 18,4 0 2 17,80 6 6 4 .2% 1,0 20 1,0 9 0 17.4 x 16 .3x
A merican W ell Co rp . NYSE A MW L US$ 29 .4 8 10 ,0 10 8,6 39 4 4 .7% 29 2 30 3 29 .6 x 28.5x
1Lif e Healt hcare NA SDA Q ONEM US$ 50 .31 9 ,813 9 ,70 7 28.2% 4 27 465 22.7x 20 .9 x
A cco lad e NA SDA Q A CCD US$ 59 .0 9 4 ,757 4 ,232 31.1% 19 8 20 7 21.4 x 20 .4 x
HIMS Inc. NYSE HIMS US$ 15.20 3,76 7 3,4 18 127.4 % 16 8 175 20 .4 x 19 .5x
Ont rak NA SDA Q OTRK US$ 71.85 2,0 6 5 2,125 133.5% 83 10 5 25.6 x 20 .2x
W ELL Healt h Techno lo g ies TSX W ELL C$ 7.9 3 1,34 6 1,274 117.7% 43 50 29 .8x 25.5x
Clo ud MD So f t w are & Services TSXV DOC C$ 2.50 4 84 446 254 .4 % 12 15 37.1x 29 .6 x
A verag e 9 5.8% 28.0 x 24 .3x
Med ian 6 4 .2% 25.6 x 20 .9 x
N e w t o p ia ( in CAD ) T SX V N EW U C$ 0 .6 5 69 63 10 1.7 % 10 13 6 .0 x 5 .0 x
Source: FactSet as of January 22, 2021
In descending order by market capitalization
25Innovation to Eliminate Risk & Reduce Cost of Healthcare
Proven
Marquee
Outcomes &
Scalable Partners Recurring
Accreditation
Virtual Care Revenue
Platform Model
Massive Valuable
Addressable Data
Market
Newtopia eliminates risk and reduces cost of chronic disease
TSXV: NEWU
26Jeff Ruby
Founder & CEO
jruby@newtopia.com
416-223-0212You can also read
