Carerx Corporation · TSX:CRRX
Carerx — Investor Presentation (April 2021)
21 slides from Carerx's investor presentation, April 2021
Slide 1: Canada's Largest Seniors Care Pharmacy Provider
Canada’s Largest Seniors Care Pharmacy Provider TSX: CRRX Investor Presentation April 2021
Slide 2: Forward Looking Statements
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
Slide 3: Canada's leading provider of pharmacy services to seniors housing
Canada's leading provider of pharmacy services to seniors housing communities and other congregate care settings 3 3
Slide 4: Medication supply and management is a critical component of seniors care
The typical senior Medication supply and in a long-term management is a critical care or retirement component of seniors home care home takes • Optimize medication regimen for best patient outcomes 4 to 12 • • Ensure highest levels of safety Minimize hospital visits Resident oversight by geriatric-c
Slide 5: Best-in-Class Institutional Pharmacy Capabilities
Add an image of a Best-in-Class Institutional pharmacist at work Pharmacy Capabilities • High-volume solutions for cost-effective supply of chronic medication • Highest level of safety and adherence for individuals with complex medication regimes • Industry-leading team of clinical pharmacists who w
Slide 6: Best-in-Class Medication Management Technology
Best-in-Class Medication Management Technology PACMED® PACVision® Automated strip Automated pouch packaging technology verification technology Digital Pen Nexsys ADC™ Automated dispensing cabinet PharmaPod PharmaConnect Medication incident eMAR Interactive patient portal management system 6 Technolo
Slide 7: Our Growing National Footprint
Our Growing Strongest Network in the Sector National Footprint >52,000 beds serviced +36,0001 – Medical Pharmacies LTC Pharmacy acquisition Geographies: Ontario & Western Canada >900 seniors homes Strong Bed Growth monthly >1.4 M prescriptions 50,000 40,000 fulfillment 18 centres 30,000 20,000 7 201
Slide 8: ~425,000 total seniors housing beds in Canada
Total seniors housing beds Over the next ~15 years, in Canada the number of beds is forecast to grow ~425,000 (and growing) 12.2% ~52,000 Medical >2x 8.5% Pharmacies ~36,000 Comp B 1,025,000 7.8% ~33,000 2.8% Comp C Rest of Market ~12,000 ~292,000 68.7% ~425,000 8 Note: Incumbent bed counts per mana
Slide 9: Multiple Opportunities for Growth
Multiple Opportunities for Growth Increase beds under contract Well capitalized and positioned to win new large, national and regional contracts Today • Expand with our seniors home customers 2023 Target • Add new seniors homes contracts 52,000 100,000+ • Expand into additional provinces Make strate
Slide 10: Disciplined M&A Strategy
Disciplined M&A Strategy 1 Highly 2 With strong 3 At accretive complementary synergy potential purchase multiples Leverage current Ability to realize Highly accretive market dynamics to substantial synergies acquisitions at make opportunistic through rationalization, discounts to CareRx’s roll-up ac
Slide 11: Remedy's: A Transformational Acquisition
Remedy’s: A Integration Completed Transformational Ahead of Schedule Acquisition • Consolidation of certain fulfillment • May 2020: Completed acquisition centres primary driver of cost of Remedy’sRx Specialty Pharmacy synergies • Added ~18,500 beds • Reduction to 18 fulfillment centres • Created the
Slide 12: SmartMeds: Another High-Quality Tuck-In Acquisition
SmartMeds: Another • Closing consideration of $4 M cash High-Quality Tuck-In plus $475,000 common shares1 Acquisition • Earn-out component of up to an • Acquisition of SmartMeds Pharmacy: additional ~$2.9 M2 • Added 2,400 beds • ROFR to acquire proprietary • Strengthens market position in Ontario te
Slide 13: Medical Pharmacies Acquisition: ~70% Increase in Residents Served
• Consideration: Medical Pharmacies • $70 M cash Acquisition: ~70% Increase • 1 M CareRx common shares in Residents Served • Financing: • $55 M bought deal private April 19, 2021: Definitive Agreement to placement Acquire LTC Division of Medical Pharmacies • $39 M incremental debt (and • Will add ~3
Slide 14: New digital business providing free same-day delivery service
New digital business providing free same-day delivery service • Leverages existing CareRx national platform and technological capabilities • Targets the 6 million Canadian seniors living at-home and other customers • EasyPac™ packaging technology ensures medication adherence • Pharmacist consultatio
Slide 15: Strong Financial Momentum
Strong Financial Momentum Continuing Operations Q4 2020 FY 2020 Ave. Beds Serviced Revenue Adj. EBITDA Revenue Adj. EBITDA (000s) ($ millions) ($ millions) ($ millions) ($ millions) 46.4 162.2 48.8 12.8 32.2 118.9 124.6 29.9 4.1 9.4 29.6 31.5 2.5 3.7 0.6 Q4 2018 Q4 2019 Q4 2020 Q4 2018 Q4 2019 Q4 20
Slide 16: 2020: A New Baseline for Continued Growth
2020: A New Baseline Today ~52,000 beds for Continued Growth 12.2% 8.5% + Medical • Positioned to benefit from increased scale Pharmacies and enhanced capabilities ~36,000 beds • Will continue to aggressively pursue 79.3% Total ~88,000 beds organic growth 20.7% • Natural consolidator in a highly fra
Slide 17: Investment highlights
1 2 3 Large, high-growth Canada’s largest Leading customer seniors market seniors care value proposition and pharmacy provider national network 4 5 Natural consolidator in Significant operating a highly fragmented leverage market 17 www.carerx.ca
Slide 18: Appendix
Canada’s Largest Seniors Care Pharmacy Provider TSX: CRRX Appendix
Slide 19: Strengthened Balance Sheet
Strengthened Balance Sheet NOTE: ALL DATA BELOW IS PRIOR TO THE PENDING EQUITY FINANCING & DEBT REFINANCING ANNOUNCED APRIL 19, 2021 (millions except ratio) At Dec. 31/20 Cash $19.6 Post Q4 – Completed a $21.2 M combined public offering & private Net Debt1 $38.5 placement ($4.25/share) Net Debt to A
Slide 20: Capital Structure
Capital Structure Shares Outstanding (000’s) NOTE: ALL DATA BELOW IS PRIOR 50,000 2,240 43,346 TO THE PENDING EQUITY 40,000 11,075 FINANCING & DEBT REFINANCING 30,031 ANNOUNCED APRIL 19, 2021 30,000 20,000 Total Debt (at Dec. 31/20) (millions) 10,000 0 $4.0 Current I/O Convertible Other Total Fully
Slide 21: Investor Presentation
Canada’s Largest Seniors Care Pharmacy Provider TSX: CRRX Investor Presentation April 2021