Carerx Corporation · TSX:CRRX
Carerx — Investor Presentation (November 2020)
17 slides from Carerx's investor presentation, November 2020
Slide 1: Investor Presentation
Investor Presentation TSX: CRRX | November 2020
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: CareRx is Canada's leading provider of Specialty Pharmacy services to seniors
CareRx is Canada's Large, fast-growing leading provider of seniors market Specialty Pharmacy services to seniors Existing, scalable national platform in long-term care and retirement Multiple organic homes growth and acquisition opportunities 33
Slide 4: Seniors Pharmacy Opportunity
Seniors Pharmacy Opportunity Seniors residences – total beds 4 - 12 # of medications a typical senior takes 1,025,000 141% daily estimated growth in the total 425,000 number of long- term care and retirement home beds between 30 90x now and 2036 residents per daily, nurses nurse administer 4 Today 2
Slide 5: Our Best-in-Class Technology
Our Best-in-Class Technology • High volume solutions for cost effective supply of chronic medication and other specialty clinical care services • Automated preparation and verification of multi-dose compliance packaging of medication • Provides highest level of safety and adherence for individuals w
Slide 6: Our Growing National Footprint
Our Growing Strongest Network in the Sector National Footprint ~50,000 beds serviced >900 seniors homes Geographies: Ontario & Western Canada monthly >1.4 M prescriptions Strong Bed Growth 50,000 18 fulfillment 40,000 centres1 30,000 6 1. Upon completion of consolidation of sites following Remedy’s
Slide 7: Growth Strategy Provides Opportunity for Significant Shareholder Value
Growth Increase beds under contract Well capitalized and positioned to win Strategy significant new RFPs and contracts Provides Consolidate the market Opportunity Highly fragmented market provides opportunity for accretive acquisitions for Significant to increase scale and realize operational effici
Slide 8: Well Positioned to Grow: Highly Fragmented Market
~425,000 ~375,000 Total beds in Canada Bed growth opportunity ~50,000 Well Positioned to Grow 11.8% Beds Serviced Comp A 8.2% ~35,000 Leverage CareRx’s leading value proposition with home operators Comp B 7.1% ~30,000 Best Positioned to Consolidate 70.1% 2.8% Comp C a Highly Fragmented Market ~12,
Slide 9: 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 CRRX’s roll-up acqu
Slide 10: Remedy's: A Transformational Acquisition
Remedy’s: A Significant Progress Transformational on Integration Acquisition • Commenced consolidation of certain • May 2020: Completed acquisition of fulfillment centres Remedy’sRx Specialty Pharmacy • Primary driver of cost synergies • Added ~18,500 beds • 4 fulfillment centres closed to date • 2
Slide 11: Pharmacy At Your Door
Pharmacy At Your Door New digital business providing free same-day delivery service • Targets the six million Canadian seniors living at- home and other customers • Offers enhanced convenience while promoting medical adherence • Leverages existing CareRx national platform and technological capabilit
Slide 12: Q3 2020: Strong Financial Momentum
Q3 2020: Strong Financial Momentum Continuing Operations (millions except margin) • First full quarter of (+/- compared to Q3 2019) revenue contribution Revenue $45.6 +45% from Remedy’s – Average Beds Serviced 49,344 +58% minimal contribution from integration Adjusted EBITDA $3.8 +37% synergies • Ad
Slide 13: Strengthened Balance Sheet
Strengthened Balance Sheet (millions except ratio) At Sept. 30/20 Subsequent to quarter end, divested of a shell, non-operating subsidiary Cash $18.3 • Pre-1954 charter company Net Debt1 $39.1 • Gross proceeds of $1.5 million to be Net Debt to Adjusted EBITDA2 2.6 x recognized in Q4 2020 13 1. Debt
Slide 14: Stabilized Funding Regime Creates Regulatory Clarity
Stabilized Funding Regime Creates Regulatory Clarity Regulatory Change Details Term Pan-Canadian Effective April 2018 prices of 70 of most common generic Agreement runs to Generic Drug Pricing drugs reduced by 25-40%, which affected drug markups March 2023 Agreement Alberta Funding Effective May 201
Slide 15: Capital Structure
Capital Structure Shares Outstanding (000’s) 2,022 37,871 40,000 11,075 Total Debt 30,000 24,774 (at Sept. 30/20) (millions) 20,000 $4.0 10,000 0 $13.5 Current I/O Convertible Other Total Fully $27.0 Debentures Outstanding Diluted Instruments Fully Diluted Ownership Yorkville 10,011,667 26.4% Vendor
Slide 16: Positioned for Continued Growth
Positioned for Continued Today Growth 11.8% ~50,000 beds • Q3/20: A new baseline for growth • Remedy’s integration to be completed by year end • Full run-rate synergies to be realized in Q1 • Catalyst transaction for future acquisitions • Aggressively pursue organic growth Significant number of new
Slide 17: Large, fast-growing seniors market
1 2 3 Large, fast-growing Existing, scalable Organic growth and seniors market national platform acquisition opportunities www.carerx.ca