Alan - 2022 Q1 Letter to Shareholders x Series E

• Delivering on our objectives
• Flywheel 1️⃣ Insurance Market Leadership
• Flywheel 2️⃣ Health Services
• Flywheel 3️⃣ Third parties: Alan as a Service
• Transversally
• What's next?

Radical transparency and building in the open are core to what Alan is. We believe this transparency builds trust internally and externally.

It has now been several years since we started sharing our quarterly internal letter to shareholders with our community.

Please find below the email we sent to our investors following the first quarter of 2022. We slightly edited it to remove sensitive information, and added more information about our Series E.

Dear Alan friends and investors,

On February 10th, we celebrated our 6th year anniversary. What a journey it has been so far, and we’re still getting started.

Most people thought we were crazy to start an insurance company to advance healthcare: without crazy bets, you don't get crazy (good) outcomes.

Here is how our bets have been paying off during Q1.

🚀 An ambitious and focused plan

We want all our members and customers in all our markets to see Alan as the one-stop health partner they trust.

We reviewed our strategy to be more focused and are delivering on it. We focused our plan with a robust path to profitability while keeping high growth ambitions:

• Flywheel 1️⃣ Insurance market leadership: Keep sustained & efficient growth on health insurance in 🇫🇷, 🇧🇪, 🇪🇸 as a wedge - selling value, expanding total addressable market to larger companies while setting path for being break-even in France in 2024 and the company as a whole by 2025.

• Flywheel 2️⃣ Health services: Become the European leader on mental well-being both via upsell to existing customers and signing up standalone customers.

• Flywheel 3️⃣ Third parties: Go live with several customers.

• Transversally: Create a unified brand and product where every touchpoint reinforces our positioning as the one-stop health partner.

We shut down Alan Baby to focus our energy on our mental well-being offer, and the team is already leveraging their learnings.

🎯 Beating our objectives

Q1 has been great in terms of growth and margin. The groundwork and preparation that we have laid is yielding positive results.

• Insured Members: 289k vs Q1 target of 276k

• ARR: €182m vs Q1 target of €174m

The performance so far is delivering both on the output metrics and the input metrics that are going to define our future performance.

💰 Series E and next steps

We are announcing our €183 million series E fundraising at a €2.7bn valuation (Press Release).

The round is led by Teachers’ Venture Growth (TVG), part of the C$242 billion Ontario Teachers’ Pension Plan Board, with participation from existing and new investors including Temasek, Index, Coatue, Ribbit Capital, Exor, Dragoneer, and Lakestar.

We are thrilled and honored by the quality of our partners and the alignment with our long-term vision. We are also very proud to close this round in a volatile market environment, which will allow us to be countercyclical and to keep investing and growing despite difficult macroeconomic conditions.

Since 2016, Alan’s mission has been to make personal, proactive and holistic health part of people’s daily lives, striving to be the world’s most member-centric healthcare company. This fundraising takes us one step closer towards our mission of being the friend in health for all Europeans.

With the new funding we are prioritizing 2022 investments as follows:

• 🇫🇷 For French companies: automate all administrative tasks for HRs, provide a state-of-the-art Disability (Prévoyance) experience with a new proprietary claim management system, and develop new employee-focused mental-health tools and workshops for HR professionals

• 🇧🇪 For Belgium insured members: focus on developing our mental well-being offer and Alan Clinic, and tailoring our insurance offering closer to their needs

• 🇪🇸 For Spanish insured members: focus on increasing the flexibility of our insurance offering and strengthening our network of mental health specialists to fast-track direct access to therapy through the Alan app.

• 🇪🇺 For everyone:

  • Simplifying the access to virtual and physical care by widening the range of health services to cover members' health journeys entirely.

  • Delivering personalized mental well-being care for members, destigmatized access to mental care and the best manager/HR experience possible to support mental well-being issues with employees. All in all,__ we want to become the reference point on mental well-being in Europe.__

By the end of 2025, Alan wants to become the one-stop health partner for 3 million people, hire 1,000 new employees and reach profitability.

France 🇫🇷

During Q1, signed members grew by 15% to reach 274k.

We also started internalizing disability claims management to significantly improve our admins’ experience (faster work stoppage declarations, improved visibility on employees’ claims, fast and reliable payment, more reactive customer service). The first companies having disability claims managed by Alan were onboarded on March 1st.

Belgium 🇧🇪

We added 3.5k signed members, ending Q1 with 13.7k total signed members. This represents 34% member growth since the beginning of the year.

We automated more and more claim handling, which will improve our speed to process claims and the experience for our members.

Spain 🇪🇸

We added 877 signed members, closing Q1 with 2.7K total. This represents 49% member growth since the beginning of the year.

In parallel, we keep pushing for more product differentiation and we launched the ability to cover ex-employees who leave their company.

We’re on a mission to be the one-stop health partner for the body and the mind, with health services driving member growth, increasing member value, and ultimately reducing the cost of claims.

Mental Well-Being

• We have launched important product components, including expert bookings, and masterclasses video content with experts.

• We’re scaling sales efforts with almost 2k members won in Q1, exceeding our target by more than 160%. We currently have ~6k subscribed B2C members.

• Companies are still learning about this space and sometimes share fears of low adoption among their employees. Our high quality in-app experience is a differentiator in this respect.

Alan Clear

• In Q1, we set up a digital eyewear store in the Alan App to make it seamless for members to pick and get glasses shipped to them with supply and logistics provided by a third party partner.

• Alan Clear sold its first 100 glasses following the roll out of our in-app eyewear store to some eligible members in Q1 (confirming members trust us with their eyecare journey).

Alan Clinic (on-demand support from our health team)

Satisfaction with our health team (dermatology, physiology, nutrition, sleep) remains high (average customer satisfaction is 4.5/5) and we’re confident that the clinic is a core component of Alan’s health partner experience.

We onboarded our first Alan as a Service customer (Lamie) and are moving forward with other players. We also received a healthy number of inbounds following our announcement launching AaaS.

Thought leadership

We released the book "De l'assurance maladie au partenaire bien-être" ("From Reactive Medical Insurance to Well-Being Partner"). It is our way to share our vision of healthcare with the world. It describes what the healthcare system, centered on citizens, that we as Alan are aiming to build.

We are also launching Alan Media. Our editorial pillars are Decoding & News, Mental Health, Inclusive Health, Fertility, Sexuality, and Parenting.

Product

We are working hard to make our product (landing pages, apps, communication) centered around this notion of Alan being the one-stop health partner.

Team

We kept consolidating the leadership within the team, with a lot of internal promotions of Alaners we deeply trust to sustain our growth. We are very happy with this new set-up:

• Fabrice Staad is now GM for Insurance France.

• Irene Martinez Paricio is becoming our GM for Spain.

• Ludovic Bauplé is going to be Chief Revenue Officer for all countries.

• Augustin Mine is going to lead Alan as a Service, after 3 years leading our international expansion.

• Gabriel Hubert is now leading our Health Services Unit, with a deep knowledge of our product and strategy.

• Thomas Rolf is taking over as Product Management Community Lead.

• Paul Sauveplane is becoming Chief People & Corporate Officer.

• Diane Rivière will lead Culture, People Growth, and Thought leadership

• Alberto Delgado is joining us as Foundation Unit Lead

We kept building our team and strengthening our culture. We are now 525 Alaners.

We work from 9 countries and >70 cities and have a very unique culture that bonds us together. It is a real enabler for future growth.

Still, after 2 years of covid, we want to make sure we give a sense of belonging to all Alaners whatever their seniority and we are working hard on this. We want Alan to become the most attractive hiring brand in France for the best talents, if not in Europe.

The future is very exciting and we have only started. Our mission is to make personal, proactive and holistic health part of people’s daily life, striving to be the world’s most member-centric healthcare company.

Thank you for supporting us.

Jean-Charles for the Alan team.