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Page 1: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Corporate Overview

Page 2: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

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.

Forward-Looking Information

2

Page 3: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Meet NewtopiaNewtopia is a tech-enabled disease prevention company focused on healthy habit change

3

Scalable Virtual Care

Platform

Massive Addressable

Market

Proven Outcomes & Accreditation

Marquee Partners Recurring

Revenue Model

Valuable Data

Page 4: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Newtopia is a tech-enableddisease prevention company focused on healthy habit change• Our person-centered approach

combines virtual care, digital tools, connected devices and actionable data science to deliver sustainable clinical and financial outcomes

First fully CDC accredited Alternate Diabetes Prevention Program• Proprietary platform leverages genetic,

social and behavioral insights to create individualized prevention programs with a focus on type 2 diabetes, heart disease, stroke and body weight

• Published RCT (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.

Investment Highlights

4

A growing list of Fortune 500 companies, under multi-year contractsincluding JP Morgan Chase, CVS Health, and Accenture

Strong growth and financial performance• 3-year CAGR: Active Participants over 70%

• 3-year CAGR: Revenue over 100%

• 3-year CAGR: Gross Profit over 185%

Began Trading on TSXV under symbol NEWU on May 4, 2020• Currently trading at EV/Sales multiple of approx. 5x

• Recent TDOC and LVGO merger announcement suggests sector EV/Sales multiple of > 50x

Page 5: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Broken US Sick Care System Needs Disruption

5

0%50%

100%150%200%250%300%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Far Outpacing GDP Growth

Employer Healthcare Cost Growth Rate GDP Growth Rate (Since 2000)

$0.0

$200.0

$400.0

$600.0

$800.0

$1,000.0

$1,200.0

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Employer Healthcare Costs Continue to Grow ($B)

Newtopia is at the center of disruption in US Healthcare

Page 6: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Chronic Disease: Massive Problem for US Payers

6

50%of the population has two or more Pre-Chronic risk factors

Source: International Diabetes Foundation, Highlight Health, CMS.gov

Pre-Heart Disease

Morbid Obesity

Pre-Diabetes Pre-Stroke

Obesity NASH

160 million(50% of US population)

Pre-Chronic At-Risk Target Market$700B

In healthcare costs are driven by symptoms of the ‘Pre-Chronics’

Page 7: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Disease prevention for healthy habit change

Page 8: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Preventing the ‘Pre-Chronic’ from Becoming ‘Chronic’

8

Newtopia reverses this progression, moving participants down the curve

COVID-19

Source: Aetna Innovation Lab

Healthy

$3,400/year1-2 Risk Factors

$4,400/year3+ Risk Factors

$5,400/yearDiabetes, Heart Disease, Stroke, NASH

$15,000-20,000/year

Average Healthcare Cost per Member for US Payers

Page 9: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Formula Habit Change, CDC Gold Standard Approval

9

We don’t teach people about a healthy lifestyle; we build new habits so they start living one.

Learning PlatformTraditional DPP Providers

Sustainable Habit ChangeNewtopia

Page 10: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Invitation to

How Does Newtopia Work? Hyper Personalized Engagement

10

Step 1. At-risk member receives an invitation

to Newtopia

Step 2. Newtopia performs proprietarysocial and behavioral

analysisStep 3. Newtopia

performs proprietary genetic testing

Step 4. Newtopia matches participant with a

personality-matched Inspirator based on the social

and behavioral analysis

Step 5. Newtopia creates a personalized nutrition +

exercise + well-being plan

Step 6. Newtopia provides a personalized

app to track progress and monitor results

Step 7. Newtopia provides wearable bio-sensors

which feed data back to the Inspirator and platform

Step 8. Newtopia presents personalized gaming and

activity challenges to motivate participants

Step 9. Newtopia provides a curated

online social community for support

Page 11: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Newtopia’s Patented Virtual Care Platform

11

Technology andUser Experience

Design

Data AnalyticsDeep Learning

Smart Automation

Behavioral Economics and

Psychology

HabitChange

Page 12: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Proven Clinical Outcomes and ROI

12

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 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 peers

Newtopia Randomized Control Trial Typical Prevention Program Outcomes

4.3%

0%

2.5%

5%

7.5%

10%

Aver

age

Body

Wei

ght R

educ

tion

(%)

Annual reduction in medical costs

2X in-year ROI

US $1,464 in savings

Newtopia continues to replicate and improve on RCT results in our

commercial book of business

Year 2Year 1

10%

Page 13: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Competitive Landscape, Truly Differentiated

13

Content integration

Virt

ual /

Hyp

er P

erso

naliz

ed

Affo

rdab

le E

ngag

emen

t

Trad

ition

al /

in-p

erso

nEx

pens

ive

Enga

gem

ent

Content silos

Collaboration Ecosystem

Newtopia’s differentiated 1:1 precision habit change approach beats out the competition

Page 14: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

14

750kTotal Employees

375k50% At-Risk Addressable

18%Historical Average

Conversion

Newtopia Clients: Strong Growth Potential

15kActive

Participants

67.5kPotential

Participants

Page 15: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Genetic + Phenotypic Data = Potential Upside

15

YEAR 1 YEAR 2 YEAR 3+

Page 16: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Driven Team, Transforming an Industry

16

Jeff RubyFounder

& Chief Executive Officer

Previously co-founded Cleveland Clinic Canada, Life Screening Centres, and

Genetic Diagnostics Inc.

Peter SeiderChief Information,

Privacy & Security Officer

Previously with Aviva Canada and Aviva North America, and Information Security

Executive at Nedbank

Edmond LemChief Financial Officer

(Interim)

Previously lead finance at Spectra7 (TSX.V)

Michele DoddsSVP

Client & Experience

Previously with Nanthealth, Preventure, Human Care Systems, ComPsych and CVS

Caremark.

Mark JacksonSVP

Commercial

Previously with Nanthealth, Teladoc, Cigna and Aetna

Rikki BennieSVP

Marketing

Previously with Cineplex and Employee #1 at Newtopia

Page 17: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Financial Performance

17

Page 18: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Newtopia Business Model: Subscription Based

18

Participant Welcome KitOne-time fee

Monthly SubscriptionPer engaged participant

Outcome MilestoneTrigger: 5% body weight reduction

C$230/kit C$65/month[1]

C$200/success

Notes:1. Average monthly fees for Wholesale/Direct over 3 year estimated participant lifetime2. ($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

Average Reoccurring Revenue per Participant (3+ yrs) = $1,600[2] with room for growth over time

Page 19: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Newtopia Annual Revenue and Gross Margin

19 Gross Profit Margin (%)Revenue in C$ 000’s

* Includes YTD Q2 2020

735

1,504

3,074

6,109

* 6,550

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0

1000

2000

3000

4000

5000

6000

7000

2016 2017 2018 2019 2020

Gros

s Mar

gin

Reve

nue

in C

$ 00

0's

Annual Revenue & Gross Profit Margin

Page 20: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Newtopia Quarterly Results

20 Gross Profit Margin %Revenue in C$ 000’s

892 885 704 593 1,761 1,609 1,202 1,538 3,863 2,687

38%

21%

37%

19%

39%45%

35%

10%

43%

52%

0%

20%

40%

60%

80%

100%

(200)

100

400

700

1,000

1,300

1,600

1,900

2,200

2,500

2,800

3,100

3,400

3,700

4,000

Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20

Gros

s Pro

fit M

argi

n (%

)

C$ in

000

's

Quarterly Revenue and Gross Profit Margin

Page 21: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Newtopia Engagement: Steady Growth

21Average # Quarterly Engaged Participants (rounded to nearest 100)

1,664

4,633

8,450

13,750

30,850 *

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2016 2017 2018 2019 2020

# Average Quarterly Engagement

Page 22: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Newtopia Quarterly Engagement Trends

22 # Engaged Participants (rounded to nearest 100)

7,500

10,000 9,000

7,300

12,300

14,800 15,000

12,900

30,400 30,500

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20

# Quarterly Engagement

Page 23: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Capitalization Table

23

Notes: • W.A. = weighted average• Ownership % is based on basic common share count at listing after conversion of all debentures and preferred shares• 67.7M of total basic common shares are subject to staged-release escrow agreements

Ownership

Management & Insiders

20%

Institutions43%

Other Shareholders

37%

# O/S W.A. Strike(MM) (C$ per share)

Common SharesSubject to Escrow:

Management & Insiders 18.1Institutions 38.8Other Shareholders 33.8

Total Basic Shares 90.7 $0.70

Dilutive SecuritiesEmployee Options 10.7 $0.48Warrants 13.6 $0.72Broker Warrants 1.6 $0.69

Total Dilutive Securities 25.9 $0.62

Fully Diluted Shares 116.7

Equity Valuation - basic shares (C$MM) $63.5

Cash Balance $2.0

Debt None

Current Cap Table

Page 24: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Public Company Comparables

24

Market Cap Cash Debt EV Sales CAGRCompany Name Ticker (C$MM) (C$MM) (C$MM) (C$MM) ('18-'20) LTM CY20e LTM CY20e

U.S. Telemedicine & Digital Health Companies

Teladoc Health, Inc. TDOC US$ 193.72 22,119 1,545 1,840 22,415 54.0% 959 1,327 23.4x 16.9xLivongo Health, Inc. LVGO US$ 120.88 19,553 1,209 764 19,108 123.6% 277 458 69.0x 41.7x

Oak S treet Health, Inc. OSH US$ 39.00 12,466 569 8 11,905 n.a . 851 n.a . 14.0x n.m.1Life Healthcare, Inc. ONEM US$ 30.00 5,970 1,244 638 5,364 19.3% 391 405 13.7x 13.2x

Accolade, Inc. ACCD US$ 37.00 2,792 422 106 2,475 28.9% 177 211 14.0x 11.7xOntrak, Inc. OTRK US$ 57.99 1,761 17 50 1,793 141.7% 67 119 26.7x 15.1x

Average 73.5% 26.8x 19.7xMedian 54.0% 18.7x 15.1x

Newtopia NEWU C$ 0.63 61 2 1 59 102.5% 8 13 7.2x 4.7x

Last Sales (C$MM) EV / SalesPrice

Source: FactSet as of August 7, 2020 | In descending order by market capitalization

Page 25: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Newtopia: Innovation to Reduce the Cost of Healthcare

25

Scalable Virtual Care

Platform

Massive Addressable

Market

Proven Outcomes & Accreditation

Marquee Partners Recurring

Revenue Model

Valuable Data

Newtopia delivers sustainable outcomes by preventing costly chronic disease | TSXV: NEWU

Page 26: Corporate Overview · 8/14/2020  · Corporate Overview. ... statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated,

Jeff Ruby, Founder & CEO | [email protected] | 416-223-0212