Executive Overview
CONFIDENTIAL
Key Contacts
CONFIDENTIAL 2
Dias Koshumbekov
Almaty, Kazakhstan
+77011111471
Company Profile & Business Overview
3 CONFIDENTIAL
Our Mission
To increase access to convenient, high-
quality, affordable healthcare in
Kazakhstan and China.
4 CONFIDENTIAL
Company Overview
5 CONFIDENTIAL
Founded: October, 2014
Business Type: Limited Liability Company
Employees: 10
Revenue: $ 100000
Technology facilitates industry evolution
Late 90s to Early 2000s
Online & Mobile eCommerce & Digital Payments
Popularized in the 1980s
ATM Paper Based/Cash
Original Method
Teller Paper Based/Cash
1994 First online banking site
1996 The NIST defines EDI for
computer-to-computer
transactions
2004 PCI Data
Standards
2009 Congress passes the
Credit CARD Act
Regulatory
Mix of paper & digital
transactions
6 CONFIDENTIAL
All paper transactions Majority digital transactions
Banking Example
Healthcare is currently experiencing an
evolution of its own
Online/At Home
Videoconferences Self-facilitated
Kiosk
Real-time Videoconferences Attendant Facilitated
ER
Doctor ’s Office
Urgent Care
Retail Clinics
In Person
Back
Office
Front
Office
EMR/MU1
Dig
itizatio
n
eTriage
HIEs/MU2 MU3
eScheduling
7 CONFIDENTIAL
Retailers are playing a greater role in Healthcare
Retailers are building clinics to increase their capacity to provide
healthcare services
CONFIDENTIAL 14
4,000 Stores
• In 2007 launches plan to deploy 2,000 health clinics in its stores
• Announces plan to provide insurance consultation in 2,700 stores
1,800 Stores
• Launches first in‐ store clinic in 2006
• 69 ‘Take Care’ In‐ store clinics in 2013
7,600 Stores
• Operates 900+ Minute Clinics
• Plan to operation 1,500 by 2017
• Announces it will discontinue tobacco sales
• Changes name to CVS Health
• Minute Clinic sales increased at a 39% CAGR last 6 years
8,200 Stores
• Operates 400+ healthcare clinics
• Pilot in NC, BCBS, iPad‐based two‐ way video, secure text chat or phone
2,419 Stores
• Operates and owns Little Clinic, with 150+ locations in 8 states
What is driving the shift of Healthcare to Retail?
Prominent industry trends are creating opportunities
in the healthcare marketplace…
CONFIDENTIAL 15
The market is poised for disruptive innovation
Documented 45K
Physician
Shortage
ACA
30M Newly
insured
Growing
population of
aging / sick
Health Systems
facing payment
reforms
Growing
consumerism in
healthcare
Retail Clinics are reducing the cost of Healthcare
$59 $74 $59 $95
$133 $97
$184
$495
$220
Ear Ache Sore Throat Cold / Bronchitis
Retail Clinic
Doctor's Office
ER
CONFIDENTIAL
600 750 900 1,100
1,300 1,500
2012A 2013A 2014A 2015P 2016P 2017P
2.7 3.6 4.8
6.4 8.4
10.7
2012A 2013A 2014A 2015P 2016P 2017P
Total MinuteClinic Locations
MinuteClinics have
expanded 50% since 2012.
CVS has announced
plans to expand to
1,500 by 2017.
As of 2014, MinuteClinic has provided service to an aggregate 22
million patients
12.2 13.1 14.5 16.0 17.6 19.5
2012A 2013A 2014A 2015P 2016P 2017P
1.1 1.2 1.3 1.5 1.6 1.8
2012A 2013A 2014A 2015P 2016P 2017P
Daily Visits per Clinic Hourly Visits per Clinic
Expansion of services,
increasing market
awareness and geographic proximity
contribute to increased utilization
Same store utilization is increasing +10% YoY
Patients are visiting retail locations such as
MinuteClinic at increasing rates
17 CONFIDENTIAL
Annual Patient Visits to MinuteClinics millions
…driving greater consumer awareness, utilization
and clinic expansion
7%
27%
1.5M
10.0M
% of people who have used a walk‐in Clinic
1,743
1,418
2,868
2,243
2012
2014
2013
2015
82% 12%
6% Retail Pharmacy
Grocery
Big Box Discount
2008 2012 Source: Harris Interactive/Health Day – “Popularity of 'Walk‐In' Retail Health Clinics Growing: Poll”, January 2013
88% CAGR
2007 2012 Source: Harvard Health Blog – “More Americans using Retail Health Clinics”, May 10, 2014
26% CAGR
The # of operating Retail Clinics are expected to double from 2012‐15
Source: Accenture– “Retail Clinic Counts Will Double Between 2012 and 2015 and Save $800 Million Dollars per Year”, 2014
Source: Deloitte – “Retail Clinics, Update & Implications”, 2009
Firms such as CVS grabbed early share of the Retail Clinic market
The public is becoming
more comfortable with Retail
and Employer
Site Health care.
# of people having sought care at a Retail Clinic
Migration to Retail Clinics is driven by
convenience of clinic
locations and
operating hours.
Projected growth is driven by
relationships with Payers,
Hospitals and Primary
Care Physicians.
Minute Clinic and Take Care together
comprised 72% of the
Retail Pharmacy
market.
12 CONFIDENTIAL
HealthKiosk helps to affordably facilitate the shift
to retail healthcare settings
Designed to affordably enable the transition of Healthcare from
traditional settings to the Retail environment
Physician Office,
Emergency Room,
Urgent Care
Pharmacy Chains, Big Box
Retailers, Grocery Stores
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…using an innovative platform
Software
Online
Scheduling Kiosks
Medical
Devices
Scheduling
Clinical Pathways
Medical History
Medical Devices
Video Consult
Prescribing
HIE Integration
Claims Surveys
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Urgent Care Hospital
Specialists
Episodic &
After Hours
Primary Care Behavioral
Health
Diet &
Nutrition
Follow-ups
MTM
Doctor ’s Office
Emergency
Room
…to provide the Right Care, at the Right Place, at
the Right Time
HealthKiosk is building a Consumer Healthcare
Brand
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…at a more economical cost structure to the Retailer
Clinic Model HealthKiosk Model VS.
Retail Settings have 2 Primary
Models to provide
healthcare services
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Build Out Cost $350,000 $15,000
Square Footage 200‐500 sq/ft 40 sq/ft
Annual Operating Costs $650,000 $60,000
Scope of Services Limited to skill set of on‐site provider – typically acute care
Acute care, health and wellness, medication mgt., nutrition
coaching, high blood pressures, smoking cessation, etc.
Daily Visits needed to Breakeven in 12 months
26 visits/day 12 visits/day
…with a Business Model that benefits all parties
Patient Provider Payer Retailer Health System
•Quick • Clean • Easy • Convenient • Cost – same or
less than an office visit • Retain copy of
medical records
• Easy •Quality
Assessment • Economical • Lower Overhead
and Staffing
• Lower cost through optimization of care network, e.g., patient with an ear infection receives care at low cost HealthKiosk vs. high priced ER
• Increased Rx Sales • Increase Sales of
Sundry Items • Share in
Proceeds from Patient Billing •Drive New Foot
Traffic • Capture Market
Share
• Referral Source •Optimize
Provider Network • Capture Market
Share • Aligns with
Accountable Care Organization
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HealthKiosk has unique competitive features
Care Centric
(SaaS) model
Extensive
IP Portfolio
Reimbursements
same as Office Visits
Success with state
medical boards
Proven consumer
acceptance
Care Source – Only Medicaid Management Organization
Expansion of care to Right Care, Right Time, Right Place at lower cost Medical Records
Design, utility, software and provisional patents
96% Consumer Satisfaction 98% Physician Satisfaction
OH, GA, TN have adopted language that provide competitive barrier
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Operating and Financial Projections
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Note: The following operating metrics and financial
projections are based solely on the Retail Pharmacy
Market and its 65,921 locations in China and Kazakhstan.
They exclude considerations and developments in the
following categories:
20 CONFIDENTIAL
Employer Sites Health Systems Universities Veteran Affairs Department of Defense
International Expansion Airports/Truck Stops Home Health Long‐term Care Assisted Living Centers
Forecast is based on the Retail Pharmacy Market
0.2%
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1.2%
3.9%
8.8%
18.0%
14.0%
19.8%
5%
10%
15%
20%
0%
2015 2016 2017 2018 2019 2020 2021
Retail Pharmacy Market Share
25%
Projected penetration rate of the Retail Pharmacy
Market
146
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725
2,412
5,467
8,711
11,147 12,286
128
7,842 27,576
55,326
85,035
103,458
0
20,000
40,000
60,000
80,000
100,000
2015 1,519 2016 2017 2018 2019 2020 2021
# of Kiosks Deployed
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Annual Visits (thousands)
120,000
Projected Station deployment and Utilization
2015 2016 2017 2018 2019 2020 2021
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$ in millions
Financial Projections
Sales $4.0 $44.8 $204.2 $659.1 $1,269.2 $1,901.4 $2,280.3
Cost of Service 3.8 29.1 135.7 451.5 883.8 1,337.5 1,613.6
Gross Profit .2 15.6 68.5 207.6 388.4 563.9 666.6
Gross Margin % 4.9% 34.9% 33.5% 31.5% 30.4% 29.7% 29.2%
SG&A 17.3 22.5 28.1 35.1 42.1 49.7 57.6
as % of sales NM 48.6% 13.2% 5.3% 3.3% 2.6% 2.5%
EBITDA $(17.0) $(6.8) $40.4 $172.5 $343.2 $514.2 $609.0
as % of sales NM NM 20.1% 26.2% 27.1% 27.1% 26.7%
Go To Market
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Go To Market
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B2C – Focus on large Retailers with in-store Pharmacies
• Retail Pharmacy
• Open Network
B2B
• Health System
• Closed Network
• ACO & PCMH
Bundled Service (Population Mgmt.)
• Large Government Payer Contract
• ER Misuse
• Capitated Rate
CONFIDENTIAL 44
2013 2018
$240M
$1.9B
53% CAGR “The trend toward telehealth will be driven by
employers, private insurers and the Affordable Care Act, which makes doctors and hospitals more accountable by moving medical care providers away from fee‐for‐service medicine where they are paid based on volume of services to reimbursement based on the value of care they provide.”
Market Size
Telehealth is poised for significant growth
Potential HealthKiosk Locations –
China,Kazakhstan
92,887 potential locations
62,260 Pharmacy
9,300 Urgent Care
3,700 Emergency
11,327 Large Employers
6,300 Truck Stop
27 CONFIDENTIAL
Healthcare: Guided Transition
Home
Telemedicine
Videoconferences Self-facilitated
ER
Doctor ’s Office
Urgent Care Kiosk Real-time
Videoconferences Attendant Facilitated
In Person
Ultimately, more telemedicine healthcare services will be provided in the home
Past Present COST OF TRADITIONAL DELIVERY
Future COST OF HOME DELIVERY
28 CONFIDENTIAL
Technology Overview
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Overall Architecture
Patient Portal Personal Health Record
Provider Portal
Cloud Database Analytics
Mobile
EMRs/HIEs
Scheduling
Claims API
30 CONFIDENTIAL
Investment Purpose and Next Steps
31 CONFIDENTIAL