Alan - 2022 Q2 Letter to Shareholders

• Flywheel 1️⃣ Insurance market leadership
• Flywheel 2️⃣ Health Services
• Flywheel 3️⃣ Third Parties: Alan as a Service
• Conclusion

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 second quarter of 2022. We slightly edited it to remove sensitive information.

Dear Alan friends and investors,

Throughout H1 and despite deteriorating market conditions in Q2, we kept demonstrating strong momentum in almost every aspect of Alan. We keep seeing growth for the whole business with both Insurance and Mental Well-being being above target in terms of signed members, reaching:

• 325k unique signed members (vs. a target of 319k)

• €204m signed ARR (vs. a target of €193m)

We are on track to achieve our overall full year 2022 targets.

We also have a clear path to profitability while focusing on delighting our members. We will never need to fundraise again.

The end goal remains our mission: to make personal, proactive and holistic health part of millions of people’s daily lives. To achieve this mission we need to remain member-first, very innovative and obsessed with the long-term while being self-sufficient as a business. We are excited by the road ahead of us!

France 🇫🇷

We had a strong overall performance in H1, with good key learnings. We reached 298k signed members and €198m ARR, both being above our targets. We are on track to deliver our plan for 2022.

During Q2, we kept:

Supporting profitable growth :

• We successfully began processing claim payments for disability insurance internally without any issue, with >800 employees already live

• We launched Alan Silver, allowing retiring members to remain covered by Alan

• We enhanced our employees affiliation workflows, by reducing companies’ volume of regularizations, and launching an integration with the ADP payroll software

• We further automated sick leave declaration for company admins, by automatically retrieving useful information from the Sécurité Sociale

Scaling our operating model :

• We have continued empowering our customer support through assisted resolution flows and increasing user care experts’ autonomy from engineers

• We have actively reduced our contact rate (the number of conversations per 1000 new members during 28 days), -30% versus last year, with better explanations of the flows and more autonomy for members to resolve critical issues directly within the customer service app

Belgium 🇧🇪 & Spain 🇪🇸

Belgium and Spain are also growing fast (+68% and +70% ARR since the beginning of the year respectively), and we are seeing that our efforts are paying off.

In Belgium 🇧🇪:

• We launched Alan Mental well-being. It reinforces our positioning as a one-stop health partner and is already gaining traction.

• We expanded the Alan Clinic by offering access to well-being specialists (dietician, physiotherapist, psychologists) through chat

• We created new insurance products allowing us to better adapt our coverage of employees from medium and large segments, and their family.

In Spain 🇪🇸 :

• Alan Mental well-being & Alan Fresa (our new wellness-focused plan for the Spanish market) have won us several high-profile deals. We’re doubling down on both.

• We invested in online booking of doctors, which is a key driver of member satisfaction. We increased available doctors from 2.5k to 6.4k over the quarter, and made online-bookable agendas more discoverable. Members can now also receive digital prescriptions for medication from all doctors via chat & video, straight in the app.

• Member satisfaction increased to 4.3/5 in June (from 3.9/5 in March).

Alan Mental well-being 🧠

We achieved important milestones, including the launch of in-app therapy sessions, and launching in Belgium.

Performance:

• B2B: We have seen great momentum on our Mental well-being SMB Upsell, and we will double down on this segment in H2. We are also winning some flagship clients switching to our solution which we see as a very good signal of our differentiated offer and our one-stop health partner strategy.

• B2C: we’ve assembled a small cross functional expert team and doubled our conversion rate from Install to Trial.

Product improvements:

• Members can now buy individual therapy sessions and have video sessions directly inside the app

Alan Clear 👓

Alan Clear is going in the right direction

• We sold 400 glasses in Q2: the conversation rate of the Alan clear store doubled over the cycle!

• We shipped our mobile acuity test which allows members to check whether their current lenses are appropriate, and have clear signs of members’ interest.

Alan Clinic 🏥

• Satisfaction with our health team across medical specialities (dermatology, physiology, nutrition, sleep, new: sexology) remains high (4.6/5).

• The Clinic platform runs across our FR, BE, ES, with over 65+ health professionals chatting and running video calls with members.

• 50% of members who would have seen a doctor say that they no longer intend to after using the Alan Clinic.

We are continuing market discovery and entertaining a few advanced discussions with potential customers. We are now mostly focusing our efforts on the upcoming civil servants reform (named “PSC”), driven by the interest received for our solution. This is a multi-million members market.

Transversally

Communication

Our Series E announcement was a success. For the first time, the majority of journalists covering us presented Alan as a ‘one-stop health partner’ and not solely as an insurance company.

Our bet on Alan Media is having good results after 3 months, especially on TikTok (5.8m views, above objective) and on LinkedIn, where we generated reactions from key profiles of over 700 companies in 3 months. Feel free to click on the videos below if you want to see more.

We updated our app with a new health partner experience!

We delivered on our plan to make our product (landing pages, apps, communication) fully aligned with our ‘one-stop health partner’ positioning.

• We’re focusing on engaging members on relevant health services including increasing activation rates and building a full lifecycle communication system:

• We now introduce the clinic at onboarding with a Lifestyle screening experience:

  • The survey helps members analyze their sleep, diet, physical activity and stress level, provides personalized advice and redirects them to a conversation with the most relevant specialist in the Alan Clinic (dietitian, physiotherapist or psychologist)

• We’ve made the app experience clearer, with health services showcased at app opening.

Team

We hired 39 people over Q2, reaching 528 Alaners.

• +50% of the hires were for Sales & Marketing Communities

• The Insurance Community is now fully staffed with a team of 19 people

• We have remaining vacant positions in our Product Communities (Engineering, Product, Data, Design)

• In terms of diversity, we reached 48% women and non-binary people at the company level: we keep nurturing our diversity efforts in our different hiring streams, especially in the Tech communities

At Alan we are super focused as a group on stellar execution. We strive to make every step of the way delightful for our members and fun for Alaners. We are convinced we have everything it takes to become the market leader and to build a generational company.

We’re all conscious it is only the very beginning of our journey, and we are ready to go and positively impact the lives of millions of people.

Thank you for supporting us.

Jean-Charles for the Alan team.