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2019 Bloom Burton & Co. Healthcare Investor Conference TSX: CHH | April 30, 2019

TSX: CHH | April 30, 2019 - Amazon S3 · 2019-05-08 · 2019 Bloom Burton & Co. Healthcare Investor Conference TSX: CHH | April 30, 2019

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Page 1: TSX: CHH | April 30, 2019 - Amazon S3 · 2019-05-08 · 2019 Bloom Burton & Co. Healthcare Investor Conference TSX: CHH | April 30, 2019

2019 Bloom Burton & Co. Healthcare Investor Conference

TSX: CHH | April 30, 2019

Page 2: TSX: CHH | April 30, 2019 - Amazon S3 · 2019-05-08 · 2019 Bloom Burton & Co. Healthcare Investor Conference TSX: CHH | April 30, 2019

Forward Looking Statements

Certain of the statements contained in this presentation are "forward-looking information“ within the meaning of applicable

Canadian securities legislation. Forward-looking information includes, but is not limited to, business strategy, plans and other

expectations, beliefs, goals, objectives, information and statements about possible future events. Forward-looking

information generally can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”,

“will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plans” or “continue”, or similar expressions suggesting

future outcomes or events. You are cautioned not to place undue reliance on such forward-looking information. Forward-

looking information is based on current expectations, estimates and assumptions that involve a number of risks that are set

out under the heading “Risks and Uncertainties” in Centric Health’s most recently filed Management’s Discussion and

Analysis available on SEDAR at www.sedar.com, which could cause actual results to vary and in some instances to differ

materially from those anticipated by Centric Health and described in the forward-looking information contained in this

presentation. No assurance can be given that any of the events anticipated by the forward-looking information will transpire

or occur or, if any of them do so, what benefits Centric Health will derive therefrom and neither Centric Health nor any other

person assumes responsibility for the accuracy and completeness of any forward-looking information. Other than as

specifically required by applicable laws, Centric Health assumes no obligation and expressly disclaims any obligation to

update or alter the forward-looking information whether as a result of new information, future events or otherwise.

All dollar figures are in Canadian dollars unless otherwise stated.

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Page 3: TSX: CHH | April 30, 2019 - Amazon S3 · 2019-05-08 · 2019 Bloom Burton & Co. Healthcare Investor Conference TSX: CHH | April 30, 2019

The NEW

Centric

Health

Page 4: TSX: CHH | April 30, 2019 - Amazon S3 · 2019-05-08 · 2019 Bloom Burton & Co. Healthcare Investor Conference TSX: CHH | April 30, 2019

Centric Health’s vision is to be the leading provider of pharmacy and other healthcare services to Canadian seniors

New Strategic Focus

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Page 5: TSX: CHH | April 30, 2019 - Amazon S3 · 2019-05-08 · 2019 Bloom Burton & Co. Healthcare Investor Conference TSX: CHH | April 30, 2019

Investment Highlights

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Large, fast-growing seniors market

Existing, scalable national platform

Multiple organic and inorganic growth opportunities

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Page 6: TSX: CHH | April 30, 2019 - Amazon S3 · 2019-05-08 · 2019 Bloom Burton & Co. Healthcare Investor Conference TSX: CHH | April 30, 2019

0

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Sources: Canadian Institute for Health Information, 2018; Census, 2016m

illio

ns

41%growth

$19.3 billion

Population aged 65+

Current market for prescription drugs for Canadian seniors

Large, Fast-Growing Market

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Page 7: TSX: CHH | April 30, 2019 - Amazon S3 · 2019-05-08 · 2019 Bloom Burton & Co. Healthcare Investor Conference TSX: CHH | April 30, 2019

Sources: Statistics Canada; Canadian Institute for Health Information

Patients taking medications improperly resulted in 92Kof admissions to homes

Nurses administeringmedications 90 times a day

28% of seniors hospitaladmissions are due to adverse drug interactions

patients/nurse

Requires proximity, efficiency, accuracy… and innovation

Seniors Pharmacy Opportunity

6M seniors living at home

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400K long-term care and retirement home beds

4-12

100to 200

3

medications / patient

administrations / patient / day

patients per home

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Page 8: TSX: CHH | April 30, 2019 - Amazon S3 · 2019-05-08 · 2019 Bloom Burton & Co. Healthcare Investor Conference TSX: CHH | April 30, 2019

Established, Scalable National Platform

BurlingtonLondonOttawa

Newmarket

Regina

VancouverNanaimoVictoriaKelowna

Calgary Edmonton (2)LethbridgeGrande Prairie (2)

15fulfilment centres

>450long-term care and retirement homes

~31,000beds

>900,000prescriptions monthly

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Page 9: TSX: CHH | April 30, 2019 - Amazon S3 · 2019-05-08 · 2019 Bloom Burton & Co. Healthcare Investor Conference TSX: CHH | April 30, 2019

Efficient Healthcare Services Delivery

High volume solutions for cost effective supply of chronic medication and other specialty clinical care services

Multi dose compliance packaging improves patient safety and adherence

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Page 10: TSX: CHH | April 30, 2019 - Amazon S3 · 2019-05-08 · 2019 Bloom Burton & Co. Healthcare Investor Conference TSX: CHH | April 30, 2019

Multiple Organic & Inorganic Growth Opportunities

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Increase our customer baseAdd more beds under care; Penetrate seniors living at home market

Expand scope of servicesLeverage national platform / existing customer base; Examples: medical cannabis, medical supplies

Consolidate the marketOpportunities to expand network and geographical coverage

Page 11: TSX: CHH | April 30, 2019 - Amazon S3 · 2019-05-08 · 2019 Bloom Burton & Co. Healthcare Investor Conference TSX: CHH | April 30, 2019

Adding Beds Under Care

Increase residents serviced in long-term care and retirement homes

Leverage existing operations to increase penetration within homes serviced

Focus on RFP wins with national and regional home operators

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Page 12: TSX: CHH | April 30, 2019 - Amazon S3 · 2019-05-08 · 2019 Bloom Burton & Co. Healthcare Investor Conference TSX: CHH | April 30, 2019

Medical Cannabis for Seniors

Strategic partnership with Canopy Growth Corporation for providing seniors access to medical cannabis

Leveraging existing clinical capabilities and footprint

Commenced deliveries to residents in Q1 2019

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Page 13: TSX: CHH | April 30, 2019 - Amazon S3 · 2019-05-08 · 2019 Bloom Burton & Co. Healthcare Investor Conference TSX: CHH | April 30, 2019

Consolidation Opportunity

Highly fragmented seniors pharmacy market

Centric is the 2nd largest player with ~8% market share

Top 3 players represent less than 25% of the market

Many small and mid-sized operators

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Centric is best positioned to become the consolidator

Page 14: TSX: CHH | April 30, 2019 - Amazon S3 · 2019-05-08 · 2019 Bloom Burton & Co. Healthcare Investor Conference TSX: CHH | April 30, 2019

Revenue Summary

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$123.7MFY 2018 revenue from continuing operations

Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19

27,702

28,36228,608

29,109

29,761

30,409

Average number of beds serviced

Page 15: TSX: CHH | April 30, 2019 - Amazon S3 · 2019-05-08 · 2019 Bloom Burton & Co. Healthcare Investor Conference TSX: CHH | April 30, 2019

Unprecedented regulatory changes in 2018

Reduced pricing on generic drugs

Reduced dispensing fees and frequency of dispensing

Re-engineered operations to better compete in new regulatory environment

Established national platform

Improved operational efficiency

Expecting an adjusted EBITDA margin of at least 9% in Q1 2019, increasing to double-digits thereafter

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Mitigating 2018 Headwinds

Page 16: TSX: CHH | April 30, 2019 - Amazon S3 · 2019-05-08 · 2019 Bloom Burton & Co. Healthcare Investor Conference TSX: CHH | April 30, 2019

Taking meaningful steps to deleverage balance sheet

Reviewing non-core assets

Strengthening our ability to lead the market consolidation

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Improving Our Position for Growth

Page 17: TSX: CHH | April 30, 2019 - Amazon S3 · 2019-05-08 · 2019 Bloom Burton & Co. Healthcare Investor Conference TSX: CHH | April 30, 2019

Large, fast-growing seniors market

Existing, scalable national platform

Organic & inorganic growth opportunities

1 2 3

www.centrichealth.ca