Alan - Q2 2021 Letter to shareholders

• 💚 Product
• ✅ Beating our targets
• 🧠 Learning, continuously
• 🔴 Striving to be better
• 🍼 B2C Strategy
• 👥 We keep growing, and are expanding further
• 🔭 Looking ahead

Radical transparency being one of our five values, we are trying to push the boundaries of it. As a result, we share here with our community the email we sent to our investors following our second quarter of 2021. We slightly edited it to remove sensitive information.

Dear Alan friends,

The last quarter has been thrilling for Alan, we continued paving the way for our B2B strategy and shipped amazing features across our countries to make the life of our members and admins easier. We are growing and learning, and I am proud to see that we are doing so while still delivering amazing value to our community of members and companies.

Please find below our update for the quarter:

France 🇫🇷

We strive to continuously increase the delight of health insurance experience, and the team achieved great things in Q2:

💆 We make life easier for members:

• Members access a better “flow” for the ongoing cares

• We better manage healthcare consent

• We added doctor feedback from members

👷 We make life easier for admins:

• We launched a new employee movement flow to make affiliation a no brainer for our admins

• We improved disability (“prévoyance”) billing

🧰 We have started important initiatives to increase our differentiation both in terms of value provided and costs:

• On the B2B side, we have started to develop Alan Guide, an integrated personal health guidance and virtual care platform, helping insured members quickly get the best care for them at the best price and proactively manage their wellbeing

• We are also working on an opportunity to create a hassle-free optics experience for our members. More will be disclosed as we launch this new product, so stay tuned!

Combined with our B2C approach we are describing below, we are investing long-term in these areas to become the healthcare super app - the first place people look to manage all their health and wellbeing needs.

🌍 Belgium and Spain

In Q2, we continued to focus on the priorities that were set at the beginning of the year: hiring, improving the core member experience, and developing our value proposition.

In 🇧🇪, we saw the first success of our psychological hotline and are using the knowledge we’ve built to launch new insurance products (dental, hospitalisation only). There are now 22 Alaners in the Belgium unit.

In 🇪🇸, we made our pricing more competitive and launched a test of concierge level care which has become our #1 selling point. There are now 23 Alaners in the Spanish unit.

In Q2, we continued the amazing trend we had in Q1 and beat our targets for both signed members and signed revenue (179k members and over €111m ARR). This has been driven by our winning efforts to expand our addressable market (Wholesale, Manufacturing and Retail) and the new cancellation at any time law that we continued to leverage in 🇫🇷.

This has been allowed thanks to an amazing team effort. We are successfully scaling our growth machine, and have hired and successfully onboarded ~45 new sales people, thus doubling the size of the team in the semester.

We are also very excited by the development in Belgium 🇧🇪, that is on track so far on important metrics with a few good flagships signed over the quarter. Spain 🇪🇸 is catching up, and we are looking forward to the second half of the year and notably November, for renewal season.

We continued to see the elevated levels of healthcare consumption we witnessed in March across all cohorts, products, and from most types of care acts. We understand this is an industry-wide phenomenon, as we see a great correlation between us and the sécurité sociale, but this still pushed us to do some extremely deep work into our model. We now have a precise understanding of what makes our business tick, and this allows us to much better think about the future. We have put together a renewal strategy and launched a new pricer (we can price products in less than one second) to ensure we continue to deliver value at the best possible price to our members.

We are still underperforming on customer service. While the situation was back to normal towards the end of the first quarter, we re-experienced a surge in inbound member contact, which led us to again close our live-chat feature for several weeks. Even though our Service Level Agreements (SLAs) are still significantly better than market standards, we launched several big initiatives including re-organisation, better internal tools, and outsourcing. These will have huge positive impacts on our scalability and level of services going forward.

In Q1 we announced the launch of Alan Baby, our standalone app that provides advice and content to parents.

Although it is still early in the life of the App, we are seeing some very encouraging developments and learning an amazing amount. By making bets on “too good to be true” experiences, we learned that members were looking for practical advice to help them overcome their challenges, and as a result we are doubling down on coaching programs.

We are stoked about the value it will create for parents, and looking forward to the app becoming a true personal digital parenting companion, and to then expanding it to adjacent markets.

At the end of the quarter, we are 397 Alaners vs. 261 at the beginning of the year and 339 at the end of March. We are continuously hiring exceptional talents across all communities, and this has been allowed by the incredible work of our Talent community, who we want to take the time to praise and thank.

We are looking forward to working together to build the future of health, and are thrilled to leverage the knowledge and skills of some of our new key hires:

• Sales: Xavier Oliel (Sales Crew Lead), Julien Manguette (Sales Crew Lead), David du Pré (Sales Lead, Belgium)

• Marketing: Adrien Albert (Customer Marketing), Marita Abraham (B2C Growth manager)

• Insurance: Guillaume Bessalem (Insurance Product)

• Talent: Gwenaële Crosnier (Global employment and rewards)

Marita is joining us from Singapore, highlighting our ability to find incredible talents willing to revolutionize healthcare in every corner of the world.

We are also maintaining a focus on improving our gender diversity, especially in the Product and Tech teams. The first positive impacts of our efforts have become visible in the past two quarters.

I am incredibly proud and humbled to work with such an amazing team. Q2 was once again tremendously packed, and Alaners continued to deliver on their objectives and to build immense value for our members.

Our mission is to help all people access personalised, proactive, instant & accurate healthcare experiences at the best possible price.

To achieve it, we believe in building a fully integrated health & well-being experience through a platform and an ecosystem of services from insurance to prevention to access to care, with coverage being at its core.

As we believe scale is central to achieving the full potential of our business model, we continuously look for bold ways to grow faster and in a capital-efficient way.

We look for flywheels that complement our insurance business and that allow us to reach critical mass faster. We believe they are often found in product differentiation and verticalization.

These flywheels only work if they deliver genuine value to our members. This is our absolute priority.

Thanks to you all for being part of Alan. Let’s continue to transform healthcare together,

Jean-Charles