Carerx Corporation · TSX:CRRX
Carerx — Investor Presentation (August 2022)
19 slides from Carerx's investor presentation, August 2022
Slide 1: Investor Presentation August 2022
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 largest and fastest growing provider of pharmacy services to seniors
Slide 4: Medication management is critical to seniors home care
The typical senior Medication supply and ina long-term management is a critical care orretirement = component of seniors home care home takes Optimize medication regimen for optimal A ] 2 resident outcomes to Ensure highest levels of safety Minimize hospital visits medications daily Never has the le
Slide 5: Comprehensive Institutional Pharmacy Services Offering
Comprehensive Institutional Pharmacy Services Offering Dispensing Services * High-volume solutions for cost- effective supply of all medications * Multi-dose compliance packaging * Automated prescription transmission via digital pens * Compounding and infusion capability * Same day delivery + 24/7 s
Slide 6: Bed growth by quarter
100000 80000 60000 40000 20000 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 7: Seniors housing beds and congregate care settings in Canada
Seniors housing beds and Next ~I5 years congregate care settings in Number of beds in Canada Canada ~500,000! (ana growing) forecast to grow >2x Ss CareRx 1,025,000 >97,000 beds 81% ~500,000 1. Statistics Canada, 2021 Census; Includes long-term care homes, retirement/assisted living facilities, grou
Slide 8: Organic Growth: Well Positioned to Capitalize on a Transforming Market
Organic Growth: Well Positioned to Capitalize on a Transforming Market Canadian LTC industry has commenced a period of substantial expansion & consolidation Recent surge of new licenses for long-term care beds + new construction & redevelopment projects across the country + acquisitions by national
Slide 9: Successful Execution of Acquisition Strategy
Successful Execution of Acquisition Strategy Proven ability to acquire at accretive multiples, rapidly integrate and realize synergies May 2020 Remedy’sRx Specialty Pharmacy +18,500 beds Purchase Price: $39 M + up to $5 M earn out Multiple: Pre-synergies: 8.8x Post-synergies: 5.5x 1. Price/Annualize
Slide 10: Medical Pharmacies: Our Largest & Most Significant Acquisition to Date
Medical Pharmacies: Our Largest & Most Significant Acquisition to Date August 23, 2021: Completed Acquisition of LTC Pharmacy Division of Medical Pharmacies Added ~36,000 beds, serviced through 17 centres in Ontario & Western Canada <3 ee Further expanded Canada’s largest national platform Further s
Slide 11: Hogan: Adds Innovative Pharmacy Services Delivery Model
Hogan: Adds Innovative Pharmacy Services Delivery Model May 30, 2022: Completed Acquisition of Hogan Long-Term Care Pharmacy Added ~800 beds On closing, signed new 7-year contract with largest customer Expected to contribute run-rate annualized revenue of ~$4.0 M and Adj. EBITDA ~$0.6 M, prior to an
Slide 12: New High-Volume Facility
* Commenced operations in April 2022 * Enables higher volumes $s CareRx Single without additional labour costs High-Volume ti * Capable of serving ~30,000 beds mu vmentconwe — 3x that of previously largest ie ih facility ~30,000 beds + First pharmacy in Canada to Pal use BD Rowa™ Dose technology New
Slide 13: Financial performance charts
Q2 2019 Q2 2020 Q2 2021 Q2 2022 Q2 2019 Q2 2020 Q2 2021 Q2 2022 Q2 2019 Q2 2020 Q2 2021 Q2 2022 FY '18 FY '19 FY '20 FY '21 FY '18 FY '19 FY '20 FY '21
Slide 14: Continued Long-Term Growth Trajectory
Continued Long-Term Se CareRx Growth Trajectory >97,000 beds * Well-positioned to continue to execute on acquisitions and organic growth in what remains a highly fragmented market * Continued confidence in organic growth prospects Market Opportunity via Robust business development pipeline Organic G
Slide 15: CareRx investment highlights
Ss» CareRx o © © Large, high-growth Canada’s largest Leading customer seniors living market seniors care value proposition and pharmacy provider national network Compelling organic Significant operating and acquisition leverage growth opportunities 15 www.carerx.ca
Slide 16: Appendix
Slide 17: Balance Sheet
Balance Sheet (millions except ratio) At June 30/22 Cash $15.2 Net Debt! $79.4 Net Debt to Adjusted EBITDA? 2.3Xx 17 1. Debt = borrowings (principal) not including November 2019 Convertible Debentures. 2. Annual run-rate based on Q2/22 Adjusted EBITDA. * Ending cash balance and cash used in operatio
Slide 18: Capital Structure
Ca pital Structure Shares Outstanding (000’s) 58,587 2,227 3 , 60,000 588 — Total Debt 40,000 (at June 30/22) (millions) 20,000 0 Current 1/0 Convertible Other Outstanding Total Fully Diluted Debentures Instruments pT ruydiiuted | ownership Yorkville Asset Management 13,558,307 23.1% Management & In
Slide 19: Investor Presentation August 2022