#1one medical Modernizing Health Care UBS Virtual Global Healthcare Conference May 2020 री। 000.0 ||||| ||||| ●●● ON - .:.#2Disclaimer .:. This material has been made available to you with the consent of 1Life Healthcare, Inc. ("we", "us", "our", or the "Company"). This presentation includes express and implied forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation other than statements of historical facts, including our business strategy and plans and our objectives for future operations, are forward-looking statements. The words "anticipate," believe," "continue," "estimate," "expect," "intend," "may," "will" and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, and you should not rely upon the forward-looking statements as predictions of future events. The future events and trends discussed in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. Except to the extent required by law, we do not undertake to update any of these forward-looking statements after the date of this presentation to conform these statements to actual results or revised expectations. A discussion of factors that may affect future results, including under the heading titled "Risk Factors", is contained in our SEC filings, including our Annual Report on Form 10-K, which may be accessed at www.sec.gov, when available. This presentation also contains statistical data and estimates made by independent parties and by us relating to market size and growth, as well as other data about our industry and business. These data involve a number of assumptions and limitations, and we have not independently verified the accuracy or completeness of these data. Neither we nor any other person makes any representation as to the accuracy or completeness of such data or undertakes any obligation to update such data after the date of this presentation. In addition, projections, assumptions and estimates of our future performance and the future performance of the markets in which we operate are necessarily subject to a high degree of uncertainty and risk. Unless the context otherwise requires, all references in this presentation to "One Medical" refer to 1Life Healthcare, Inc. and its consolidated affiliated professional entities. This presentation may include certain non-GAAP financial measures as defined by Securities and Exchange Commission (SEC) rules. Because not all companies calculate non-GAAP financial information identically (or at all), the presentations herein may not be comparable to other similarly titled measures used by other companies. Further, such non-GAAP financial information of the Company should be considered in addition to, and not as superior to or as a substitute for, the historical consolidated financial statements of the Company prepared in accordance with GAAP. Refer to the slide titled "GAAP to Non-GAAP Reconciliation" for a reconciliation of our non-GAAP financial metrics to the most directly comparable GAAP financial metrics. 2#3Presenting Today OPTUM Stanford HEALTH CARE UCLA Health AMIR DAN RUBIN Chair & CEO & President Years Experience: 25+ Former EVP Optum / United Health Group Former President & CEO, Stanford Health Care Former COO, UCLA Health ♥CVS aetna Health. BARCLAYS cíti BJORN THALER Chief Financial Officer .:. Years Experience: 20+ Former CFO for Transformation & SVP of Corporate Development and Enterprise Economics, CVS Health / Aetna Former Director, Health Care Investment Banking 3#4.:.one medical Mission To transform health care for all through a human-centered, technology-powered model Vision To delight millions of members with better health and better care while reducing total costs .:. 4#5one medical Modernizing Health Care A membership-based primary care platform with seamless digital health and inviting in-person care, convenient to where people work, shop, live and click ● One Medical's salaried providers deliver premier care through a network of medical offices and digital health services to address the health and wellbeing of consumers, while delivering results for employers Delivering results for key stakeholders with a human-centered and technology-powered model ● Delighting consumers with an average Net Promoter Score of 90), helping employers improve productivity and reduce benefits costs, engaging providers, and advancing health networks Disrupting from within a large and growing market in partnership with health networks One Medical coordinates access and integrates value-based care with affiliated partners for superior health care outcomes (1) For the 12 months ended December 31, 2019. NPS measures willingness of consumers to recommend our services to others based on consumer surveys. We use NPS to gauge overall member satisfaction with providers and loyalty to our brand. NPS ranges from-100 to 100. 5#6Modernized Membership Model Working Within the System to Disrupt It • Participating in insurance plans and accessible to a broad market Annual membership fee supports seamless 24/7 digital access • Employer-sponsored & direct-to-consumer memberships Aligned health network partnerships advance coordinated care ● Delivering Human-Centered, Technology-Powered Health Care • Inviting in-office care in locations across the United States Lab services within each office location and drive-through for COVID-19 ● • Behavioral health, pediatrics, and wellbeing programs in select markets Digital health for proactive outreach & responsive virtual care Online prescription renewals, appointment scheduling, vaccine and medication history, benefits admin support ● ● .:. • Dedicated salaried providers relieved from fee-for-service incentives • Coordinated specialty access and info exchange with health network partners 6#7Modernized Membership Model Most Consumer Centered Healthcare Company (2019) Forbes [A] BERNSTEIN Most Disruptive Private Healthcare Company (2019) FAST Listed as one of the COMPANY Most Innovative Companies (2019) Great Place To Work® Named one of The Great Places to Work (2019) one medical (1) As of December 31, 2019. (2) For the 12 months ended December 31, 2019. NPS measures willingness of consumers to recommend our services to others based on consumer surveys. We use NPS to gauge overall member satisfaction with providers and loyalty to our brand. NPS ranges from -100 to 100. (3) Plan to be physically present in 12 markets by the end of 2020 and 13 by the end of 2021. 455K Members as of Q1'20 85%+ Members Covered under Health Network Partnerships 90 Average Net Promoter Score (²) 9 out of 10 Enterprise Client / Consumer Member Retention (²) $292M Q1'20 LTM Revenue .…. 8 → 12 →→ 13 Markets Served 2018 - 2021 (3) 7#8Investment Highlights Transforming health care for all from within Distinct model driving competitive advantage Large TAM Multiple growth levers Attractive financial profile Accomplished leadership ● ● ● ● ● ● Simultaneously addressing the unfulfilled needs and frustrations of key stakeholders Consumers, Employers, Providers, Health Networks Disrupting health care from within the ecosystem Membership-based relationships through employer sponsorships and directly with consumers, proprietary technology platform supporting key stakeholders, seamless digital health, inviting in-office care, employed salaried providers, and health network partnerships U.S. Primary Care is estimated to be a ~$260B market in 2019 Primary care accounts for <7% of U.S. health care expenditures, but can drive broader savings Expand in existing markets Enter new markets Expand penetration with existing employers ● ● ● Increase enterprise and consumer members Expand health system and plan partnerships Expand services offerings 31% Revenue CAGR from FY14 Revenue of $70M to Q1'20 LTM Revenue of $292M Membership model provides revenue that is recurring in nature along with attractive margins Accomplished and experienced leadership team in place to perform, innovate, and grow .:. 8#9U.S. Health System Underperforming U.S. higher spending levels with lesser health outcomes than other nations • $3.6 trillion annual U.S. healthcare spend representing 18% of GDP, with estimated 30% waste Health outcomes trail those of OECD nations spending lesser percentages of GDP (3) U.S. underinvestment in primary care U.S. spends 5-7% on primary care vs. 14% by OECD nations, on average (5) For every $1 spent on primary care, $13 saved on specialty, emergency, and inpatient care ● ● (1) Centers for Medicare & Medicaid Services (2) National Academy of Medicine (3) 2014 Commonwealth fund report (4) 2019 Patient-Centered Primary Care Collaborative Report (4) Employers are largest source of coverage in U.S., yet results disappoint (6) Employer health benefit costs hit record highs, exceeding $20,000 for family coverage in 2019 ● Average patient waited approximately 29 days to see a family medicine practitioner in 2017, an increase of 50% since 2014 (7) (5) Oregon PCPCH program (6) 2019 Kaiser Family Foundation Health Benefit Survey (7) 2017 Merritt Hawkins Survey of Physician Appointment Wait Times (2) .:. 9#10Current System Failing All Stakeholders ทํา Consumers 10 Employers & Payers 81% Constrained Access to Care 29 Days wait to see a Family Physician (2) (1) Prophet and GE Healthcare Camden Group Study 2016 (2) 2017 Merritt Hawkins Survey of Physician Appointment Wait Times (3) Kaiser Family Foundation Employer Health Benefits Survey 2019 Dissatisfied with Consumer Experience (¹) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Rising Commercial Premiums in Excess of Inflation (3) -Single coverage -Family coverage 50 $2,000 $4,000 $6,000 $8.000 $10000 $12.000 $14,000 $16000 $18,000 $20,000 B W Providers Health Networks (4) Mayo Clinic Proceedings 2019 (5) American Hospital Association - Society for Healthcare Strategy & Market Development, 2018 50% (63 A 75% 76% Burnout within Family Physicians in Primary Care (4) Operate their primary care networks at a loss or are willing to (5) Pursue or are likely to pursue external relationships to build physician networks (5) 10#11One Medical Transforms Health Care for All ทั Consumers 10 90 Net Promoter Score(¹) Employers 0-1 & Payers 90%ile Quality Scores (HEDIS Subset) (2) Day wait for appointment Employer (3) savings Virtual care typically within minutes B Fewer ER Visits Providers Health Networks 0000 8888 8888 244 s p 100% 40%+ Provider salary model for aligned incentives B 69 6.93 Fewer provider EHR tasks vs. industry (4 85%+ 100% Participation in leading health plan .:. Members within a health system partnership >8% 41% (1) For the 12 months ended December 31, 2019. NPS measures willingness of consumers to recommend our services to others based on consumer surveys. We use NPS to gauge overall member satisfaction with providers and loyalty to our brand. NPS ranges from -100 to 100. (2) HEDIS stands for Healthcare Effectiveness Data and Information Set. This is a subset of those metrics related to primary care. (3) Per client case study; see slide titled "Employer Savings - Case Study" for methodology. (4) One Medical estimate vs. 2019 industry comparison - EHR Industry tasks, Health Affairs 38, No. 7. (5) As of Sept 30, 2019. (5) 11#12Member Driven +one medical Accessible where people work, shop, live & click, with 90 average Net Promoter Score and 9 out of 10 Consumer Retention (¹) +one modical Testing Area Entrance +one medical (1) For the 12 months ended December 31, 2019. NPS measures willingness of consumers to recommend our services to others based on consumer surveys. We use NPS to gauge overall member satisfaction with providers and loyalty to our brand. NPS ranges from 100 to 100. 12#13● ● ● ● Technology-Powered Proprietary Platform 45% of members visit web/app monthly 3x digital to in-office encounters 65% completion of member health tasks (2) 75+ conditions have automated digital follow up (3) 40% reduction in provider EHR tasks (4) + + 95%* (2) generic Rx powered by our algorithms 85%* of members within health network partnerships with digital interoperability (3) (1) Data from December 31, 2019 last nine months (2) Data from December 31, 2019 last twelve months (3) As of December 31, 2019 (4) One Medical estimate vs 2019 industry comparison - EHR Industry tasks, Health Affairs 38, No. 7 (5) For common conditions (5) 9:41 Good Afternoon, Worried about the coronavirus? Here's what you should know Get Care *** Book Visit Available remote or in-office COVID-19 Symptoms? Get a coronavirus consult Video Chat Talk with the Medical Team now Treat Me Now Get help with common issues Messages Health Record Q Locations 9:41 Check in for knee pain Requested by Rom Srinivasan Accomplish on or after Dec 23, 2019 We'd like to quickly check in on your knee pain. Use the scale below to let us know Submit Better Options Please keep your provider updated on your health Decline 9:41 .:. +one medical Mood check-in Periodically, we like to check in on your well-being. Since emotional health is in you staying healthy, we'd like to ask you questions on how you've been feeling m Over the last 2 weeks, how often have y bothered by any of the following proble Little interest or pleasure in things Not at All Several Days More than Half the Days Nearly Every Day Next 13#14Seamless Digital Health and In-Person Care 9:41 Good Afternoon, Worried about the coronavirus? Here's what you should know EX (4) Get Care .. Book Visit Available remote or in-office COVID-19 Symptoms? Get a coronavirus consult all Video Chat Talk with the Medical Team now Messages Treat Me Now Get help with common issues Health Record Locations one *** medical Hone medical one medical Testing Area Entrance +one medical :: one medical .:. one edica 14#15Employer Sponsored By >7,000 Companies |+|| Attracting & retaining employees with a highly valued benefit Engaging employees to live healthier, more productive lives Lowering costs through a modern approach to care Healthy Together Workplace Return (1) For the twelve months ended December 31, 2019. Enterprise renewal rate based on annual contract value. medical Enterprise 9+ out of 10 Renewal Rate 15#16Employer Embedded Growth: Adding Dependents + Increasing Penetration 2015 55% 70% Enterprise Customers Covering Dependents ~50% Median Activation Rate of All Clients (2) (1) 2019 (1) Data as of December 31, 2019. Percentage of enterprise clients offering our services to dependents of their employees. (2) Numbers assume a 1:1 dependent attach rate for eligible lives. Activation rate defined as percentage of eligible lives enrolled as members at a given time. 16#17Delivering Employer Savings - Case Study Journal of American Medical Association - JAMA Network Open peer-reviewed published study on an employer client Medical Cost Savings 45% $167PM PMPM JAMA Network Open Original Investigation | Health Policy Utilization and Cost of an Employer-Sponsored Comprehensive Primary Care Delivery Model Sanjay Basu, MD, PhD: Tyler Zhang, BA; Alli Gilmore, PhD: Esha Datta, PhD; Eun Yeong Kim, BA Savings Categories 54% Specialty 43% Surgery 33% Emergency 26% Rx News Release Details .:. April 30, 2020 at 11:12 AM EDT JAMA Network Open study between Collective Health and One Medical finds virtual + in-office primary care model linked to 45% lower employer total cost 6 PDF Version Peer-reviewed, matched cohort analysis shows cost reductions of $167 per member per month, and reductions in avoidable emergency department and hospital visits Customer: a high-tech manufacturer offering One Medical memberships, with virtual care and near-site access, as well as a One Medical on-site health clinic. Methodology: population-based cohort study of 23, 518 commercially insured employees and dependents of an engineering and manufacturing firm headquartered in southern California was performed from January 1, 2016, to July 1, 2019. A subset of the population with most (250%) primary care visits through employer-sponsored on-site, near-site, or virtual care clinics was matched to a subset not having most such visits through the employer-sponsored clinics using propensity score matching (n = 1983 each). The study compared medical claims costs of the employer's One Medical-attributed members (n=1,983) to members attributed to other providers, with matching based on a propensity score model accounting for age, sex, home zip, enrollment duration, principal diagnosis, and HCC risk score. A multivariate regression was used to control for the above covariates and express the cost and utilization differences between cohorts. Results: Engaging with One Medical service, inclusive of on-site services, was associated with 45% lower medical costs. 17#18Employer Support for Worksite Reentry Workplace Safety & Clinical Guidance Clinical support for: ● Workplace redesign • Cleaning & disinfection ● Social & behavioral practices HEALTHY TOGETHER Screening & Testing for Worksite Reentry • Testing strategies ● Clinical guidance on test results & interpreting risk Phased cohort testing plan • Reentry screening prior to returning to work 008 Ongoing Screening & Reentry Reporting Ongoing virtual symptom tracking & self-screening Ongoing re-testing ● • Support for contact tracing Care for COVID+ employees • Opportunity to deliver vaccinations (once available) Mental & Emotional Wellbeing Support .:. Mindset by One Medical: virtual coaching & virtual therapy • 1:1 virtual resilience coaching session Remote Group Visits 18#19.:. Health Network Partnerships Advance Coordinated Care Health systems and plans partner with One Medical for consumer-driven care, direct-to-employer relationships, and coordinated networks of attributable lives ● O >95% of One Medical's members are commercially insured (Non-Medicare/Medicaid) O Commercial business drives higher revenues and margins to health systems than does governmental volume Partnering with One Medical can be a more effective, expeditious, economical, and less risky way of developing coordinated care networks of associated lives For One Medical and its members, partnerships advance clinically integrated relationships to facilitate specialty care access, streamlined services, information technology integration, and value-based care coordination Our Health System Partners UCSF Health Mount Sinai Health System UC San Diego Health Emory Healthcare Providence St. Joseph Health Dignity Health - Common Spirit Advocate Aurora Health Partners HealthCare Ascension Health 19#20National Digital Health and Growing In-Person Care Seattle Portland San Francisco ܘܘܘ Los Angeles Orange County San Diego Phoenix * New Markets: Orange County and Atlanta slated to open in 2020; Austin in 2021. Austin* Plan to grow from 8 markets as of 2018 to 12 markets in 2020, for 50% growth in markets over 18 months. Plan to expand into Austin as 13th market in 2021. Chicago Atlanta .: Boston New York Washington DC 20#21Executing for Excellence Accelerating Increasing Employer Expanded Offering Membership Value Proposition Remote Visits, 455K members, +25% YOY (1) Growing Markets planned 8 → 13 in 18 months (1) As of Q1'20. 45% medical savings + worksite re-entry program Integrating with New Partners clinically & digitally coordinating care behavioral, & COVID-19 care Maintaining 90 NPS .::.#22Financial Overview 201 Ri 22#23Scalable Financial Model Supported by a Robust Balance Sheet Sticky Customer Base with Strong Retention 9 out of 10 Enterprise Client & Consumer Retention Rate (¹) 85% of Members Covered Under Health Network Partnerships (¹) Attractive Unit Economics Increasing Enterprise Mix Low Overall Churn $292M Q1'20 LTM Revenue .:: one medical 455K Q1'20 Total Members 38% Q1'20 LTM Care Margin(2) $375M Q1'20 Cash & S.T. Marketable Securities Strong Business Momentum Q1'20 LTM Revenue Growth of 31% YoY New Partnerships with Health Networks Expansion in Existing and New Markets Robust Balance Sheet Only $2.2M of Debt as of Q1'20 Supporting Responsible Growth (1) As of December 31, 2019. (2) Care margin is a non-GAAP financial measures. See the slide titled "GAAP to Non-GAAP Reconciliation" for a reconciliation of care margin to the most comparable GAAP measure: loss from operations. For the twelve months ended March 31, 2020, our loss from operations was approximately $75 million. 23#24Track Record of Organic Growth 94 FY14 126 FY15 384% 35% Growth CAGR 181 Members (thousands) FY16 272 FY17 346 FY18 422 FY19 455 Q1'20 $70 FY14 Net Revenue (millions) 317% Growth $110 FY15 $141 FY16 31% CAGR $177 FY17 $213 FY18 $276 FY19 $292 .:. Q1'20 LTM 24#25Mobilizing During COVID-19 Mobilization Efforts Financial Considerations Capital Preservation • Offices are open to deliver essential care across all markets. Designated Respiratory Care Clinics & launched 18 Mobile Testing Sites for COVID-19 care. Established Partnerships with New York City & San Francisco municipalities to support community testing efforts. Newly launched digital services support continuity of care during shelter-in-place. ● ● Momentum in January and February, and better than anticipated performance in March drove strong Q1'20 results. • Accelerating membership growth through unique digital & in-office care offering during COVID-19. Uniquely serving employers, which strengthens existing relationships and supports new logo generation. • Driving diverse product adoption, with encouraging initial uptake of recently launched services. Largest markets continue to have strict shelter in place orders in effect; yet, COVID-19 has accelerated the demand for virtual services. ● As a result of COVID-19 uncertainties, we have provided Q2'20 guidance but have not provided FY20 guidance. ● ● $375.4 million of cash and short-term marketable securities and only $2.2 million of debt as of Q1'20. Enacted cost-savings initiatives: cut most discretionary spending, paused hiring for almost all non-clinical roles, and judiciously managing variable costs. Additional liquidity measures available should COVID-19 persist for some time. .:. Driving initiatives to emerge from the pandemic with more members, more brand loyalty, a broader offering, and lower capital intensity. 25#26Long-Term Target Operating Model (Non-GAAP) Revenue Growth Care Margin(¹) Operating Expenses (2) S&M as % of Rev G&A as % of Rev Adj. EBITDA Margin(¹) 2017 32% 11% 28% (7%) 2018 20% 36% 12% 31% (7%) 2019 30% 39% 14% 35% (9%) Q1'20 LTM 31% 38% 14% 36% (12%) Long-Term Goals Mid-20%+ 45% 10% 15% 20% (1) Care margin and adjusted EBITDA are non-GAAP financial measures. See the slide titled "GAAP to Non-GAAP Reconciliation" for a reconciliation of care margin and adjusted EBITDA to the most comparable GAAP measures: loss from operations and net loss respectively. Adj. EBITDA Margin is defined as Adj. EBITDA divided by net revenue. Loss from operations for 2017, 2018, 2019, and Q1'20 LTM was, respectively: ($31,758), ($45,046), ($54,113), ($74,978). Net loss for 2017, 2018, 2019, and Q1'20 LTM was, respectively: ($31,686), ($45,501), ($53,695), ($81,209) (2) S&M excludes the following stock-based compensation amounts for 2017, 2018, 2019, and Q1'20 LTM respectively: $267K, or 0% of 2017 revenue; $552K, or 0% of 2018 revenue; $1,256K, or 0% of 2019 revenue; $1,545 or 1% of Q1'20 LTM Revenue. G&A excludes the following stock-based compensation amounts for 2017, 2018, 2019, and Q1'20 LTM respectively: $9,263K, or 5% of 2017 revenue; $20,629k, or 10% of 2018 revenue: $13,621k, or 5% of 2019 revenue; $20,702 or 7% of Q1'20 LTM revenue. 26#27Investment Summary Transforming health care for all from within Distinct model driving competitive advantage Large TAM Multiple growth levers Attractive financial profile Accomplished leadership ● ● ● ● ● ● Simultaneously addressing the unfulfilled needs and frustrations of key stakeholders Consumers, Employers, Providers, Health Networks Disrupting health care from within the ecosystem Membership-based relationships through employer sponsorships and directly with consumers, proprietary technology platform supporting key stakeholders, seamless digital health, inviting in-office care, employed salaried providers, and health network partnerships U.S. Primary Care is estimated to be a ~$260B market in 2019 Primary care accounts for <7% of U.S. health care expenditures, but can drive broader savings Expand in existing markets Enter new markets Expand penetration with existing employers ● ● ● Increase enterprise and consumer members Expand health system and plan partnerships Expand services offerings 31% Revenue CAGR from FY14 Revenue of $70M to Q1'20 LTM Revenue of $292M Membership model provides revenue that is recurring in nature along with attractive margins Accomplished and experienced leadership team in place to perform, innovate, and grow .:. 27#28Appendix: GAAP to Non-GAAP Reconciliation Care Margin GAAP Reconciliation Adjusted EBITDA GAAP Reconciliation (in thousands) Loss from operations Depreciation and amortization General and administrative Sales and marketing Care margin (in thousands) Net loss Interest income Interest expense Depreciation and amortization Stock-based compensation (¹) Change in fair market value of redeemable convertible preferred stock warranty liability Provision for income taxes Adjusted EBITDA FY17 $ (31,758) 10,686 57,964 19,172 $ 56,064 FY17 $ (31,686) (386) 834 10,686 9,530 (646) 126 $ (11,542) FY18 $ (45,046) 9,947 85,808 25,789 $ 76,498 FY18 $ (45,501) (2,251) 804 9,947 21,181 1,877 25 $ (13,918) FY19 $ (54,113) 14,268 108,965 39,520 $ 108,640 FY19 $ (53,695) (4,498) 474 14,268 14,877 3,519 87 $ (24,968) Q1'20 LTM $ (74,978) 16,782 126,412 42,400 $ 110,616 Q1'20 LTM $ (81,209) (4,186) 373 16,782 22,247 10,016 28 $ (35,949) (1) In October 2018, we purchased 1,553,424 shares of common stock from certain directors, employees and executive officers for net total consideration of $14.8 million, after considering net share settlement. The amount paid in excess of the then-current estimated fair value of our common stock of $7.2 million was recorded as stock-based compensation for the year ended December 31, 2018. .:. 28#29one medical Modernizing Health Care UBS Virtual Global Healthcare Conference May 2020 री। 000.0 ||||| ||||| ●●● ON - .:.