M&A Announcement

Jun 3, 2021

Hi everybody. I'm Rich Williams and I'm the CEO of Alkuri Global Acquisition Corp. I'm excited to announce the execution of a definitive merger agreement between Babylon Health, a leading digital first healthcare services company and Elkouri Global Acquisition Corp, a SPAC with a strategic focus on disruptive technology companies and Healthcare Investing. Thank you for joining us today to learn about this combination between Alkuri and Babylon Health. We'll talk you through a bunch about the company and our journey along this transaction. Over the course of the presentation, I think you'll see why we're so excited by the Babylon business and team, but before I go too deep on that, a brief introduction to Alkuri. We're a $345,000,000 operator led SPAC that brings together a team of proven public and private technology entrepreneurs and leaders with deep investing experience and Unique Capital Relationships. Our diverse sponsor team and Board, we've spent decades together investing in, growing and operating technology companies in well over 40 countries. And importantly, we're a team that understands hypergrowth. We've all been there. We've built some of the fastest growing companies in consumer internet, as well as we have a team of proven public company operators that know how to navigate the intricacies of the public markets. We're also a team that's partnership driven and focused on helping our partners deliver long term value to customers and of course shareholders. We bring experience of not just traditional IPOs and deep Pubco company experience, but multiple SPAC transactions in our sponsor team, as well as unique capital relationships, including in Middle Eastern sovereign wealth. When we formed Alkuri and set out to find the right partner, we knew healthcare technology would be a core focus area for us, particularly on the consumer side of healthcare. And when we met with investors during our IPO roadshow, we were very clear with the kinds of companies we were looking to partner with. We were looking for true technology companies with real revenues, dynamic growth, improving unit economics and importantly inspired management teams and founders that were leveraging data and AI to disrupt large markets, that were still transitioning from offline to digital. We're going to talk a lot about healthcare today and a lot about those other pieces and that was a core focus area for us from the start. And we built that experience into the team and our Board as well as in our advisors, which you'll see here as we move through. The key though is how this all comes together in delivering a compelling transaction and an opportunity to back what we believe is the leading digital first value based care company in the U. S. But let's talk about the transaction. There's more detail on how we think about peers and comps in the appendix, which I'd recommend you review. But in short, we see this transaction as a very attractive entry point into a leading hypergrowth healthcare technology company that's demonstrating that it can win in the U. S. And beyond. At a high level, we priced Babylon at a pro form a enterprise value of $3,600,000,000 or roughly 5.1 times 2022 estimated revenues of $710,000,000 In our view, this valuation represents not just a margin of safety for our shareholders, but importantly upside relative to its peers, especially when considering that Babylon is growing 5 to 6 times faster and demonstrating both more speed and scalability than its technology enabled peers. Not surprisingly, we believe the upside potential for shareholders is significant as Babylon continues to deliver the kind of traction and results that's taken us to this point so Bar. We expect the transaction to be funded through a combination of Alkuri's $345,000,000 in trust and $230,000,000 in committed pipe financing from a number of leading institutional and strategic investors. The sponsors and I, we believe in the company and also participated in the pipe as we see the future potential for outsized returns and to make an impact in healthcare technology as front and center and clearly addressable for the company. You can also see this reflected in our sponsor earn out. Net proceeds will primarily be used to fuel Babylon's growth initiatives and general corporate purposes. Important to note here that current Babylon shareholders expect to maintain over 84% pro form a ownership of the company. And of that Doctor. Ali Parsa, Babylon's visionary founder, will hold roughly 26% of the company. Last, We expect to close the transaction in Q3 this year. So with that, let's spend a minute, I think it's helpful to talk a bit about our thesis for Babylon. We as a team being technologists and and very much focused on healthcare from the start. Not surprising, we've seen a number of healthcare opportunities since our IPO earlier this year. I think the key thing for us is when we met the Babylon team, we very quickly knew that this was a special company and that we needed to dig in. Through the course of our diligence, which was significant here. We gained conviction that Babylon was both a match for our strategic criteria, which we think of very simply as team, TAM and Mote. And it has importantly and critically what we believe are the necessary characteristics to Tradewell as a public company. That's obviously a key point for successful SPAC transaction and investment. As I think you'll see as we go through the rest of the materials here today, this is a true disruptive technology company and and we see a very hard to replicate platform. We see AI running at scale and with proven results and importantly, a situation where both of those become more powerful and deepen the moat with scale and over time. It's also a company with real revenues in a $10,000,000,000,000 global healthcare sector that frankly in our view is in the earliest stages of disruption and way behind where it should be relative to its importance to literally billions of people around the world. This is a spot where we see an opportunity for companies like Babylon who are bringing digitally native, digital first experiences and solutions can benefit in similar ways that we've seen in places like commerce, travel, Entertainment, where the digital first disruptors have the opportunity and potential to take market winning Jair and deliver the kind of dynamic growth and outsized returns that the analog incumbents just will continue to struggle to realize. So we like a lot of that that's there and the company's traction in delivering a dynamic growth profile that was very attractive to us is important and exciting, but it's also important that we recognize that they're doing it with improving unit economics and as the company scales, we only see those improving. We also believe that the unit economic profile and growth profile of the company sets it up well with a clear path to deliver profitability and free cash flow that puts it in a very exciting position to deliver outsized returns as it continues to go. Needless to say, you know, This is a company that checks all of our boxes and that we believe can be an exciting opportunity for shareholders and investors and where we believe we can be a valuable partner for the team, which is also core for us. We want to be able to add value as the company continues to move through its growth and expansion plans in the U. S. And beyond. Obviously, really key to this, I didn't talk about team here, but we'll cover that in a minute. But the other piece that for us that resonated is history and I think it's important to take a look at that here before we move on. And the key element in this to us Is this unlike a lot of technology companies that you see, this is a company that isn't some kind of wasn't built in a silo with a technology platform Forum, designed to meet one little slice of the broader healthcare ecosystem. This is a team, a company and a platform that's been honed over time and it's been honed in some of the most challenging environments and the healthcare sector around the world. And this very much resonated with us. This isn't a silo technology problem solving a small opportunity. This is a team that's started nearly a decade ago to assist the National Health Service in the UK with accessibility and in one of the most efficient healthcare markets around the world and they proved very quickly in that frugal market that they could deliver primary care when there was doctor shortages and deliver it, in a high quality way and with outstanding outcomes. The company then, you know, has demonstrated that it could take that same model and move to one of the other parts of the world that's also incredibly challenging but for a completely different reason. Partnering with the Gates Foundation to move into Rwanda, a country that had very little, if any healthcare infrastructure, demonstrated it could deploy the same quality of care, the same type of outcomes in that challenged environment. Then they moved on to really test to scale and quality of their AI and their ability to drive scale in the platform with large scaled licensing agreements with Prudential in Southeast Asia and on to TELUS in Canada serving literally now tens of millions of people on the platform and with AI that's getting better with every interaction. And ultimately really leveraging the culmination of that experience from the UK, from Rwanda, from Southeast Asia and Canada to forge a platform that was ready to enter the U. S. Market and then scaled very rapidly in the U. S, which is exactly what we've seen. And in the last year in the U. S, that combined experience has resulted in delivering the primary growth vehicle for the company in value based care in a very exciting and very large market. And that the company has shown that it can put the technology to work, bringing the platform to underserved Medicaid and Medicare Advantage population with a very advanced digital first healthcare experience, one that oftentimes, you know, we've talked about it amongst our sponsor team that we would like to have in our day to day healthcare experiences in the U. S. And so while we see a world of opportunity here, literally a world of opportunity here, the U. S. Opportunity is is front and center for the team and the company going forward. And we believe the traction here in lives under management is really only the beginning. So with that, let's spend a minute on what's really at the center of all of this and that's an amazing team. And this really is, in our view, one of the most experienced management teams we've seen in digital health. And I think this speaks to the quality of Ali in particular and this is just in my experience, great founders build great teams and we've been incredibly impressed with Ali's approach to building his team and surrounding himself with seasoned executives that understand operating at scale, not just in technology, but across the entire spectrum of the company, whether that's traditional operational excellence in complex environments to really delivering excellent clinical care. This is a team that has a level of experience and depth and scope that is uncommon in digital health at any stage of Development. And in many cases, these are folks that we've known and worked with for a number of years, whether that's folks like Paul Henri Farron, who most recently is the President of Google's $10,000,000,000 cloud business, someone I worked with when he was working in the Google Ad business, there's Stacy Saul, who spent many years at Amazon, was a customer of mine at Amazon back in her days of running categories, rolled out Amazon Prime, Prime Air and Amazon Fresh as well. You also have a recent addition to the team, an exciting addition with Darshak Sungavi, our Chief Medical Officer, most recently with United Healthcare and Medicare and Retirement, of course, one of the largest commercial Medicare programs in the United States. So across the board, just a really impressive team that knows what it looks like to be amazing and operate well at scale, deliver great clinical outcomes and to build technology advantage and technology moats and their teams. So these folks know what it means to help us achieve our plan and yet they're also supported by a veritable who's who advisory board with multiple CEOs and executives from some of America's largest healthcare and retail health players. And those folks are on board because they believe in Babylon's ability to bring the health care that people deserve and they're excited to help this team deliver it. In addition to this, we at Alkuri, we're working with Ali and the team to support their already excellent Board of Directors and we plan to supplement the Board in partnership with Ali and the team with an Alkuri designee. So with that, I should get out of the way and turn it over to Ali and let him run you through more of the exciting details of the company. Thanks. Thank you, Rich, for your very kind introduction. What I'm going to do today is start by telling you what problem it is that we are solving in healthcare. How did we do it? What have we accomplished so far? And then I will pass it on to Charlie Steele, our Chief Financial Officer, to talk about how do we monetize it And how will we grow it from here? Babylon is positioned to unify and empower the 2 critical trends in health care. On one hand globally, we're seeing the movement from fee for service that used to deal with crisis and emergencies and only deal with People when they were sick to to value based care when providers are asked to look after somebody's health care end to end. While that has solved a significant problem in healthcare and there are some fantastic companies that have come into the market recently On provision of value based care, their problem has often been that they have not been scalable and they have challenged And they had challenges being able to grow fast outside the brick and mortar clinics in which they are based. On the other hand, we are seeing a movement from analog health care, back and motor into digital care. Companies who have done so Have leveraged technology to drive efficiencies and to be able to reach many. However, they have often dealt With the smaller problems in health care, urgent care, telemedicine, that kind of stuff. What we've done in Babylon In a way, it's to bring these two trends together and create a highly scalable digital care first value based care company. And you see that If you drew a graph of the revenue per patient versus scalability and if scalability is defined of CAGR of revenue plus gross margins, what you see, it's a very interesting graph. All these companies have been selected just because recently they've gone public. It doesn't matter. We can put any other company on this. But what is very interesting is that The digital health companies are at the very bottom of the graph, dealing with tens of dollars per patient out of their 1,000 of dollars of revenue. On the other hand, bank based care companies, great companies like Oak Street Health are at the very top of this capturing 1,000 of dollars of revenue per patient, But growing very slowly because it takes time to build clinics, to get the doctors to move to those clinics. It's very difficult to cover, for instance, an entire state as a versus than a city or a neighborhood. And what you see with Babylon, and this logo is exactly where we would be mathematically, is a company that has grown very fast That has covered 1,000 of dollars of the patient's revenue. So how do we do that? If you go back to that slide of revenue per life's cover, what we do in Babylon is almost go across that entire value chain. We provide digital health suite that can be given to millions of people that deals with their digital health Meet whenever is necessary. It allows us to collect data on them, give them insights on their health assessment, set goals for them, give them Plans and then monitor them through those plans continuously. We then, if they need to talk to a doctor virtually, we can connect them For a virtual consultation and take care of all the primary care needs of a patient. But more importantly, we can now Take that patient across the entire value chain and help them not just with their primary care, but with their secondary care needs, Their hospitalization, their rehabilitation as a result takes the entire budget of the patient and manage it For them anyway. So if I give you an example, for instance, in a market like California, we covered 2,000,000 or so members, We are provision of our suite of technology products. We also do telemedicine for them, But for a smaller group of people around 50,000, we've already converted them to the value based model in which we manage the entire Or the vast majority of the budget for those patients so we can look after them progressively. So how do we do that? When A patient is given to us to look after them end to end. Our interest now is to immediately contact them, engage them in our platform, And then make sure that we can collect as much data from them as possible so that we can have an insight Into their health and be able to manage the risks, set goals for ourselves and the patients and give ourselves and the patients a plan So that we can succeed against those goals and monitor them continuously and reward them so when they stay within the plan and stay healthy. Now, unfortunately, once in a while, as you monitor an individual, you see abnormalities, What we can do then is to intervene very early to give people a standard expertise and the right treatment And then follow them through a right to rehabilitation and monitor them intensively until they feel better and are normalized and bring them back To, being healthy and monitor them through that. So what we do is not just sick care, but also a progressive model of health care to look The people when they're most healthy. We can do that because we run a very well structured care pyramid That allows us to help people to look after themselves digitally by caring for themselves as much as possible across that Spectrum of collecting their data, giving them insight, continuously health assessing them and helping them with any challenges they have. When they need to talk to a human being, we connect them to one of our personal health assistances who are clinically supervised, but often not clinicians who can help them Monitor their health, but also navigate their journey through the health system. When they need to talk to a doctor or a nurse or a clinician, we connect them to the right clinician virtually first. And often 9 out of 10 times in developed countries now, we can deal with all of the health care needs of our patients this way. 1 in 10 times, we need to see them physically. So we need to send them to a clinic that we whom we have a relationship with. We refer them there with their clinical records And we bring them back from that clinic knowing exactly how to progress with them. And if they have a complex care situation, we can send them To a center of a specialty or a hospital, but again, bring them home and look after them during their recovery. So as a result, what we're doing is changing this old model of sick care, where people waited until they got sick And then went to a clinic or to an ER in order to get expensive care And then left it alone until they got sick again and went back again to a model of care in which we can continuously look after people while they're healthy To try and avoid their emergencies and crisis. This in a way is no different than what we used to do with our cars. 20, 30 years ago, we used to drive our cars until it got It broke down and then we took it to a mechanic who dealt with it in a way they knew best and then we drove it again until it broke down again. What do we do with our cars now is that we buried so many sensors in them to collect data out of them continuously to to assess how it's doing. We take them proactively for service. So our cause almost never break down. All we are trying to do is do the same for healthcare To create a model where there's less emergencies, less crisis, we continuously look after our people. And guess what? A better health care is also cheaper health care. So what we are seeing and I'll come back to that is a significant cost saving across the board as a result. So all of that is possible because we have created now a highly scalable technology stack That can look after a patient end to end. So it's not about the tiny part of the journey of the patient, but it collects its the people's data, Monitors them continuously, can, have a front for the clinicians to interact, a front for the doctors to interact, is highly secure, So on and so forth. And that and we've published enough papers to describe what it is. We now have over 10 US patents, 43 is pending, 29 peer reviewed papers. And at the core of that Sits our artificial intelligence, our what we we call our Babylon brain, and which most recently, for instance, we published A paper in the Nature Communication, one of the most prestigious science publications, to show How AI has been performing compared to clinicians on very selected primary care tests In, under test conditions, of course. But it was so much so that professor Judea Pearl, who's one of the godfathers of AI and the winner of the Turing Price, which is the equivalent of noble price for AI, turn back and say I'm going to use it As a warning to machine learning enthusiasts in the US that you're going to be made obsolete by this company in United Kingdom and what Babylon is doing and of course that is, there's always work for scientists to do more, but his point was that The work is interesting and exciting that Babylon is doing. So at the core of our Babylonian brain It's a knowledge base that has hundreds of millions of streams of knowledge in it that can Use natural language processing to interact and understand your needs from from our users And then put that into a reasoning and decision making system. It's a large complex probabilistic graphical model That can be audited, that tries to link symptoms with conditions. And then of course, As we collect data, we try to simulate and predict where the direction of travel for our members are. And then we learn every time we have an interaction, we have the ability to then use that data to learn so our machines become better. And considering that we are doing about 10,000 interactions a day compared to a human doctor that does about, say, 7,000 a year, you could see at Speed, that Disrael has the potential to learn and grow. But all of that It's about what we have been trying to do and how we approached it. What really, of course, matters is what have we achieved so far. And what you see is that in a very short space of time, in 5 to 6 years, Babylon went from nothing To now being paid to cover the lives of 24,000,000 members, many of them electronically, But now almost about a couple of 100,000 of them where we take some kind of value based to approach to them whether it's just primary care or across the entire stack. We've done 6,000,000 for instance interactions with our patients Last year alone, one every 5 seconds. We are in 16 countries. At the time of the COVID, we were asked To look after 8% of the population of UK as a first point of contact. We're in 50 states in the United States. And then we covered about 14,000,000 lives across the developing countries. And we've done all of that. The company has been growing at a rate of 5 times and covers 3,000,000 Lives in the United States alone in our 1st year of entry. And in that country, we've grown 6 fold. But what really matters against all of that is that how do we deal with the issue of being the best value provider in healthcare? And in health care, you define value as quality over cost as you do in any other industry. If I want to buy a car, What's its quality? What's its cost? And I'll make my decisions. And of course, in health care, quality is defined as accessibility versus Quality, clinical quality, and then costs it's represented as affordability. And almost every country has a challenge with that. In United States, they're very good at clinical quality and accessibility, but often have a challenge with affordability. In Europe, they're very good at Quality and affordability, but have challenges with accessibility. And what we said in Babylon is 2 out of 3 is not an option. So what we created is a model that we first did in the United Kingdom, then we took it to a country as far away economically as possible, Rwanda. And we demonstrated that the same model works there and now we brought it to United States and we show that it works in there too. So if you look at accessibility in United States, we're getting 98% for 5 star rating among our users, actually vast majority 5 star. We are getting 90% of our consultations in some of the poorest communities in the hotels of Missouri, for instance, or among the Medicaid community in California is being done in less than 30 minutes. We, in United Kingdom, we are seeing exactly the same number and our retention is over 95%, for instance, in a city like London. And in Rwanda, we're seeing the same 90 plus percent satisfaction. Same results, 3 different continents, 3 different geographic and socioeconomic backgrounds. When it comes to clinical quality, we're seeing exactly the same results again. In the United States, We're collecting significant amount of data that allows us to keep our patients healthy. In UK, we've been rated on the 97th percentile Of the National Health Services Quality Framework, we've been rated as outstanding for leadership by Care Quality Commission, which is the regulator of health care. And Rwanda, we're seeing the same 90% plus clinical audit scores. And when it comes to affordability, we're seeing the same 30% plus, up to 30% plus cost savings across the board in all of or markets. Now we cannot deliver healthcare to every person on earth while our mission It's to make health care accessible and affordable for every individual on earth. So what we do is that as we learn How to deliver our health care and make our software better. We then licensed that software to partners across the globe to allow them To do what we do for our patients, for their patients. And that allows us to have a model that goes across the provision of software To provision of clinical services. And with that, I pass on to my colleague, Charlie Steele, who will describe to you how we monetize the business of Babylon and how do we grow it from here going forward. Thank you, Ali. So going on to how we monetize the business. The first way is software licensing. This is where we license our AI technology platform to a broad spectrum of healthcare providers and payers, who is assessing patient condition, monitoring stasis and preventative treatment. We've done this with the likes of Prudential and TELUS on multiyear contracts, tens of 1,000,000 of dollars. Through these partnerships, we're able to support distribution of the platform across a wide range of populations. Further, the client generally pays hosting costs and third party software costs, which drive higher margins. 2nd business line is virtual care. This is where we effectively do telemedicine and services offered could be on a standalone basis on a fee for service basis or on a PMPM basis also integrates into our value based care offering, such as what we did with Centene in Missouri. We're one of the largest primary care providers in the UK for our NHS GP at hand offering. And in addition, we cover all of Bupa's 2,400,000 population. The 3rd business line is value based care. This is where we receive capitated payments To define patient population group to manage the totality of a patient's care by assuming the risk on that cost of care, albeit with stock losses in place. We believe that we can meaningfully reduce the cost of care through the automation that provides members with accessible and efficient access to healthcare services. The key thing to note about this business model is that we received all of the PMPM at the time of signing the contract. And therefore, in the 1st year, we don't have any ramp up that you would expect in a traditional marketing business that has a cost of acquisitions. We don't, for example, needs to go out to a population of a 1000000 people and hope that we land 1% of them. We take on the full patient budget from the day that we start delivering the contract. After 6 months, for example, in Missouri, we're already ahead of our internal planning forecast and engagement forecast as well, so delivering on these contracts very strongly. So moving on to the next slide of how Babylon takes the value based care proposition and drives the margin. So our partner takes a 100% of the premium and then retains their own margin and admin costs. We then also give a little bit of extra margin to the partner to make it worth their while to give us the contract, but this is not a shared cost savings model. This is a capitation risk model. We then provide a lot of primary care upfront using virtual consultations, our other AI driven tools and the tools that you saw from Ali earlier, including monitoring, in order to drive down secondary care costs. And we do this 20 fourseven, 365 days of the year. It's important to note the fact that we have a stock loss in place I mentioned on the previous slide Because we're in the business of managing healthcare, we're not an insurer. So we do this on all of our populations and we make sure we take at least 3 years worth of data in advance of contracting with any provider. I just want to take you through exactly how we undertake the capitation contracts review and also how we can highly predict the recurring nature of our value based care revenue in this example. With the capitated payments model, we're receiving a fixed rate per health plan member each month, as I described earlier. That then gets multiplied by the patient population that we have to that contract and that results in the monthly recurring revenue for that contract. Therefore, with every new contract, we build a new monthly base of recurring revenue, which has affiliated cost of care. This step function type of growth in monthly recurring revenue becomes much more evident in the bridge on the next page. The revenue build each month in 2021 pays out to deliver both the current year and 2022 revenue. Let me take a moment to talk to you about our growth trajectory. We have 3 areas to cover on this page. Revenue for 2021 was essentially driven through the contracts which were active as of the 1st April 2021. These represent around 80% of 2021 revenue already being accounted for and being delivered as of today. This revenue includes software licensing and our recent acquisition of Independent Physicians Association or IPA in California. Contracts expected to be signed before December 31st would be expected to deliver the rest of the 2021 revenue Contracts signed in 2021 will also deliver incremental revenue in 2022. As they annualize, We expect to enter 2022 with about 70% of our revenue target delivered for that year. Finally, Closing on additional contracts during 2022 will be expected to fill that remaining gap. As a subcontractor providing services to a health plan, We can close a new contract anytime during the year. We don't have to wait for the calendar year end. On top of that, we have a robust 3.6 $1,000,000,000 pipeline in place with diverse group of clients, including some which have very strong existing relationships with. Moving on to understanding Babylon's pipeline further. The illustration we have here is we just need Sign 2 further contracts in 2021 to close out 2021 revenue gap from today. This will satisfy also after 2022 revenue forecast and 3 more contracts will satisfy the 2022 revenue forecast as well. And this highlights the highly predictable nature of the business. And also this is out of 27 value based care contracts that we have currently in the pipeline. Moving on to the diversity of our business model. I think the first thing I want to highlight here is that nearly all of our revenue is fixed. So we have highly visible revenue with very low volume risk, unlike standard telemedicine providers in the market. We have a very strong focus on the U. S. As the world's largest healthcare market and this will continue going through to 2023 where we see over 80% of our revenue continue to come from the U. S. Again, we also have a very large part of our revenue mix is coming from value based care, with over 80% of all our revenue from value based care contracts. Our software licensing also remains an important part of our revenue mix given the high level of profitability in software licensing versus the rest of the business and therefore become an important part of profitability going forward. So what have we done in Missouri? Our experience in Missouri shows that our business model works. We already have very high levels of penetration across all the households that we cover, and we believe that this is significantly in excess of other and social healthcare providers. Simple things such as avoiding ER visits can significantly drive down costs where you provide primary care for a few dollars instead and DriveUp Margins. This in turn has delivered margins in excess of our original business plan And we'll continue to add more automation, more monitoring and more tools in the forthcoming years, as Ali has described earlier, in order to drive this down further as penetration and increasing usage increases. Moving on to operational leverage. We expect to see profitable growth coming on the back of multiple factors. To start with improving margins, As you can see from the last few years, we've consistently improved our margins across the whole business. We also have increasing proactive healthcare management, reducing downstream costs of care on a condition. Babylon's current cost base also has significant headcounts attributed to technology and development. And in this department, we will not need to grow at the same rate as growth in revenue and covered patient lives. And this will results in very attractive operational leverage going forward. Whilst we'll continue our investments in sales and marketing, Expense in those departments will grow at a lower rate than revenue since we only target engagements into specific geographies where our populations reside. Another key differentiator for driving cash flow going forward. In the medium term, we're targeting 30% plus in our cohort margins and 15% on our EBITDA margins. Moving to our financial projections, The combination of revenue growth and increasing margins through Babylon 360 cohorts and software licensing takes Babylon's EBITDA breakeven in 2023 according to our projections. The operational leverage means that we see significant cash flow conversion beyond 2023 We have very disciplined OpEx cost control, as you'll see over the last few years. With the increasing operational leverage in 2019 2020, We're already seeing this in 2021. The bottom line is we've only just begun. There are incredible opportunities to drive our financial success on a global basis. The core focus of the massive opportunity we have in front of us in the United States in particular. Moving forward, how do we grow? We have 3 levers for growth. The first is in our current addressable markets with existing customers. The second is in our contract pipeline and the third is in contract acquisitions and strategic investments. I'll take you through each of these in turn. The first one is driving opportunities in our existing customer base. As of December 2020, We literally adopt on this page of $170,000,000 of annual run rate revenue in an existing customer base that we see as high as being $50,000,000,000 If we expand our geographic coverage, as well as upsizing within existing populations. Simply upsizing within existing populations alone has a $5,000,000,000 addressable market. As I said, dollars 50,000,000,000 if we expand our geographical footprint with our existing customer base. We of course have a strong contract pipeline within this existing customer base for future growth and that's being delivered on as of today. 2nd avenue growth, we've seen a strong contract pipeline of new clients worldwide. We have over 50 large deals overall, which includes upselling existing customers and also our new clients with around $2,400,000,000 of pipeline from new clients predominantly within value based care. This pipeline is over 5 times covered and we have over 7.6 times covered pipeline across the board on our total pipeline. The 3rd avenue for expansion is M and A. The key thing I'd like to highlight though is none of our financial The projections that you've seen on any of the other pages includes M and A. This is simply an upside on our existing business growth. We have 3 pillars for M and A. The first one is in consolidation where we acquire other businesses such as IPAs. We've already acquired, for example, First Choice Medical in California, Ameritas Medical in Marin County, California. 2nd one is around technology. We made bespoke targeted technology acquisitions. And the third one is where we can target businesses like Higgie, where we let their Series B funding round in order to target our core populations, the Medicaid and Medicare Advantage populations, as it stands in front of us in 2020 2021. He's got a large footprint across retail stores in the United States and therefore we'll be looking to acquire the rest of that business in due course. Before I finish, what I would also like to say is that we have a lot to pay for here. If you look at the US healthcare markets over $4,000,000,000,000 alone, 1% of that The $40,000,000,000 opportunity and many of our core clients including the likes of Centene, millions of customers and we are only covering tens of thousands of those as of today. So it doesn't take a lot to see that we don't need to be penetrating very much in order to see this huge business growth. We're already ahead of our internal financial projections around margins And we've got a lot of exciting contract wins coming up very shortly. Thank you and back over to Ali. Thank you, Charlie. Thank you for taking the time to watch the presentation. We believe that this transaction is the right next step In the journey for Babylon, giving us the tools and the resources to execute on our growth strategy, primarily in the US And then other key markets around the world. We hope that with your support, we are 1 step closer to delivering on our mission, Putting an accessible and affordable quality health service in the hands of every person on earth.