Babylon Healthcare and Sickcare Overview
Expect Babylon's Margins to Expand as it Gains Operational
Leverage
We Expect Babylon will Grow Profitably...
$BN
$1.6
Revenue
$1.4
Gross Margin
Adj. EBITDA (1)
$1.2
$1.0
$0.8
$0.6
$0.4
$0.2
$0.0
($0.2)
2019A
CAGR 2020A-2023E: +166%
...By Providing Digital-First End-to-End Care
Babylon's highly-accessible, digital-first service
will allow it to:
Divert patients from expensive Urgent Care to
proactive & accessible virtual primary care
Avoid expensive downstream costs of chronic
conditions by solving healthcare issues earlier
Increasing
Operating
Leverage
Medium-Term Target
Constantly
Improving
Margins
Margin: 23%
Gross Margin
-30%
Margin: 0%
EBITDA Margin
-15%
...and Reducing Expensive Delivery Costs
Leverage technology and automation to
significantly reduce the cost of primary care:
Increase in efficiency by automating admin and
other lower-value tasks
Use digital triage to increase the proportion of
interactions served by lower-cost healthcare
professionals
Reducing costs associated with physical services
by solving ~95% (2) of issues via digital
consultations
2020A
Source: Management estimates. Notes:
1)
2)
Adjusted EBITDA reconciliation in Appendix.
2021E
2022E
2023E
In 2020 95% of all bookings across Babylon's geographies were digital (including cancellations).
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