JP Morgan 36th Annual Healthcare Conferences22.q4cdn.com/106882444/files/doc_presentations/JPMorgan-2018.… · SilverSneakers leads a pack of world-renowned brands with a Net Promoter

© 2018 Tivity Health, All rights reserved.

JP Morgan36th Annual Healthcare Conference

January 10, 2018


Safe Harbor Provisions

These forward-looking statements speak only as of the date hereof and this presentation contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. In order for TivityHealth to utilize the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, investors are hereby cautioned that these statements may be affected by the important factors, among others, included in the discussion in headings such as “Risk Factors” in Tivity Health’s Annual Report on Form 10-K for the year ended December 31, 2016, the Form 10-Q for the quarter ended September 30th , 2017 and other reports filed with the Securities and Exchange Commission. Consequently, actual operations and results may differ materially from those expressed in these forward-looking statements. Tivity Health undertakes no obligation to update or revise any such forward-looking statements.

This presentation contains certain non-GAAP measures. The Company’s earnings releases for the year ended December 31, 2016 and the quarter ended September 30th , 2017 located on the Company’s investor relations page at www.tivityhealth.com include a reconciliation of the differences between certain non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP. These non-GAAP financial measures should not be considered an alternative to GAAP financial measures

3© 2018 Tivity Health, All rights reserved.

• Sale of Total Population Health Business

• Fortify the Balance Sheet

• Unlock the Value of the Company with a Clear Business Model/Strategy (A/B/C/D)

CEO OBJECTIVE #1

LOOKING BACK – The Path in 2016

A Company TRANSFORMED


Key Attributes

Predictable revenue, supported by a strong demographic growth trend

Focused/Integrated product portfolio withSignificant Brand Value

Profitable, capital light service model

Streamlined and efficient operations

Significant Cash Generation, Balance Sheet Flexibility

Members looking for additional products and services

Resulted in a Compelling Business Model


The Path in 2017

• Hire the Best and Most Talented

• Focus on a multiplicity of growth levers

• Leverage a powerful Brand

• Expand Customer and Market Share

CEO OBJECTIVE #2

Create a Culture of Empowerment and Accountability for Results


Tivity Health Executive Leadership Team

Donato TramutoChief Executive Officer

Mary S. FlipseChief Legal &

Administrative Officer

Adam HollandChief Financial Officer

Paul EdmistenChief Information Officer

Steve JanicakChief Growth Officer

Paul WimerChief Experience Officer

Bonnie SchiratoVice President, People

& Culture


CURRENT OFFERING ROLE IN THE PORTFOLIO % Revenue

Getting older Americans up and out of their homes to an expanding variety of locations where they are physically and socially active/interactive

82%

Reduced cost access to physical fitness for those that are aging-in toward Medicare eligibility, those caring for senior adults, and busy travelling consumers

15%

Flexible cost-effective access to solutions for specialty health benefits including chiropractic, acupuncture, PT, OT, speech therapy, therapeutic massage and naturopathy

3%

Our Business Portfolio – Today


Growth Levers

(6) A/B/C/D Strategy

Growth Levers

(1) Growth in Demographics

(2) Gaining more markets with our current clients

(3) Winning back clients lost on previous years

(4) Expand Medicare Supplement Offering

(5) Leveraging the Power of the Brand to drive increased awareness –leading to increased enrollment – leading to increased engagement


Add New Members in all three networks

Build more empowerment and engagement in the eligible population

Collaborate with partners to introduce new products and services that leverage our brand trust

Resolve barriers to engagement and positively influence daily decision making while aligning to our fundamental growth model

Brand Loyalty allows for other opportunities to create a stickier experience that drives loyalty, and outcomes

Build awareness and relevance with current and future members, and relationships with their influencers

WHAT WE ARE DOING… …AND WHY

A

B

C

Building transformational relationships allows us to align incentives to reward for increased participation and delightful experiences

DDeepen relationships with our partners and their instructors within our national network

Four Priorities Guiding Growth –For All Products


10SOCATA TEMPLATE

14.8 Million

Eligible Seniors

3.2Million

Enrolled*

Eligible:Enrolled in Medicare Advantage (MA) or Medicare Supplement (MS) plan that offers SilverSneakers as a covered benefit

Enrolled:Have signed up at a participating location (a gym) and gone at least once

Never Enrolled

Eligible but have never actually enrolled and gone to a gym

11.6 Million (78%) 2.1 Million (14%) 1.1 Million (7.5% of eligibles)

Sporadic Users

Enrolled but infrequent participation

Actively Participating

Monthly active users – those currently participating

SilverSneakers–By the Numbers–AN OPPORTUNITY



11SOCATA TEMPLATE

41 Million

Eligible Individuals

260ThousandEnrolled*

Eligible:Enrolled in a Commercial Health Plan or employed by an employer that offers Prime as a choice or a covered benefit

Enrolled:Individual who has signed up for membership as a consumer and has provided a credit card for payment

Never Enrolled

Eligible but have never enrolled

40+ Million 260k Currently Enrolled

Average Duration is 16 Months

Prime–By the Numbers–AN OPPORTUNITY


12© 2018 Tivity Health, All rights reserved. © 2017 Tivity Health, Inc. All rights reserved.

81NPS

MEMBER INTERACTIONS

CALL CENTER EVENTS REGISTERED

7 MILLION

750 MILLIONNEARLY

Our Brand Matters!

NEARLY

LEADING TO A

SilverSneakers®

25 YEARSOF

ELIGIBLE INDIVIDUALS

15 MILLIONGROWN TO NEARLY



81

79

59

78

69

77

68

72

Broad coverage across the United States allows SilverSneakers to maintain a diverse clientele

SilverSneakers leads a pack of world-renowned brands with a Net Promoter score of 81

Note: Data for 2016

14,000+ Active LocationsNational Reciprocity

The SilverSneakers Brand is Synonymous with Senior Fitness


A New and Exciting Brand, and Company

SilverSneakers Testimonials Video


More than 20M Facebook Impressions across multiple 4-week periods

More than 3M unique content viewers in multiple 4-week periods

Approaching 1.8M Consumers Registered on SilverSneakers.Com

3–4x Increase in Website visits, Eligibility Checks and Participating Location Searches

The Power Of The SilverSneakers Brand Examples Of Digital Success


The Path in 2018

• Smart Moves to further growth in EPS

• Leverage our Brand –Highway of Members

• Disciplined Approach

CEO OBJECTIVE #3

A Growth Strategy –Capital Allocation


CREATING NEW DISTRIBUTION CHANNELS

EXPANDING MEMBERSHIP AND ENROLLMENT

CREATING PARTNERSHIPS IN SUPPORT OF OUR A/B/C/D STRATEGY

Will Focus On:


SilverSneakers

Cognitive Fitness

Fall Prevention

Nutrition

Home Health Management

Fitness-on-Demand

Dating Service

Diabetes Prevention

Re-Wire Don’t Retire Engagement

The SilverSneakers Community HighwayWhat can be accomplished with a TRUSTED BRAND?


KEY METRICS 2016 2017 2018

REVENUE $501MM$555MM - $557MM(Appx. 11% Growth)

Appx. 11% growth

ADJ. EBITDA $106.5MM$126MM - $128MM

(Appx. 22.5% Margin)Appx. 22.5%

Margin

CAPITAL INVESTMENT

$4.3MMAppx. $6MM

(<2% of Revenue)<2% of Revenue

FREE CASH FLOW N/A* Appx. $95MM TBD

* Applicable calculation without discontinued operations not available

Financial Profile and Outlook


Trading on NASDAQ:

TVTY

Documents

JP Morgan 36th Annual Healthcare Conferences22.q4cdn.com/106882444/files/doc_presentations/JPMorgan-2018.… · SilverSneakers leads a pack of world-renowned brands with a Net Promoter