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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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The NEW
Centric
Health
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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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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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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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
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medications / patient
administrations / patient / day
patients per home
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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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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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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
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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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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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
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
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
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
Large, fast-growing seniors market
Existing, scalable national platform
Organic & inorganic growth opportunities
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www.centrichealth.ca