Slide 1: Q1 2022 Results Conference Call
CARING FOR SENIORS TODAY GROWING FOR TOMORROW Q1 2022 Results Conference Call May 13, 2022 NON-GAAP MEASURES “EBITDA”, “Adjusted EBITDA”, “Adjusted EBITDA margin”, “net operating income” (“NOI”), “NOI margin”, “funds from operations” (“FFO”), “adjusted funds from operations” (“AFFO”), and “payout ra
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of applicable Canadian securities laws (“forward-looking statements” or “forward- looking information”). Statements other than statements of historical fact contained in this presentation may be forwa
Slide 3: COVID-19 Update
COVID-19 UPDATE • Set back in Q1 occupancy recovery and home health care volume growth due to Omicron surge • Vaccines helped mitigate serious illness and hospitalization • Increased absenteeism due to illness or isolation requirements drove higher staffing costs • More than 2,700 LTC and 2,100 Para
Slide 4: Strategic Repositioning: Sale of Retirement Operations
STRATEGIC REPOSITIONING: SALE OF RETIREMENT OPERATIONS • Announced strategic transactions in Q1 2022 to effect Extendicare’s strategy to: • Focus on long-term care and home health care segments • Leverage our deep expertise and scale to drive improved performance and high-quality care for seniors ac
Slide 5: Strategic Repositioning: Agreements with Revera & Axium
STRATEGIC REPOSITIONING: AGREEMENTS WITH REVERA & AXIUM(1) TO DRIVE GROWTH IN LTC AND MANAGEMENT SERVICES Revera Management Contract 15% Axium JV Interest Axium JV for Redevelopment and Development Pipeline Acquisition of 15% managed Extendicare to manage 32 homes Extendicare-Axium JV for Class inte
Slide 6: Strategic Benefits of Revera & Axium Transactions
STRATEGIC BENEFITS OF REVERA & AXIUM TRANSACTIONS • Proceeds from the sale of retirement provides flexibility to allocate capital strategically in people, technology, LTC redevelopment and acquisitions • Partnership with Axium is a less capital-intensive business model where we hold a 15% ownership
Slide 7: Long-Term Care Redevelopment With 704 Beds Under Construction
LONG-TERM CARE REDEVELOPMENT WITH 704 BEDS UNDER CONSTRUCTION • Awarded 4,248 new and replacement beds across 20 projects, replacing 3,285 Class C beds in Ontario • Includes three projects under construction with total of 704 beds representing a total net investment of $178.9M(1) • Constructed exclu
Slide 8: 2022 First Quarter Highlights
2022 FIRST QUARTER HIGHLIGHTS • Omicron set back sequential recovery in LTC occupancy and home care volumes: vs. Q1 vs. Q4 2021 2021 LTC Occupancy +520 bps -120 bps Home Health Care ADV +0.8% -4.8% SGP Customer Base +21.9% +6.0% • Increased outbreaks and high absenteeism across the organization led
Slide 9: Financial Review Q1 2022
FINANCIAL REVIEW Q1 2022 EXTENDICARE ... helping people live better
Slide 10: Consolidated Results
CONSOLIDATED RESULTS(1) Three months ended March 31, 2022 ($ millions, except per share amounts) Revenue NOI and Margin Q1 Q1 Q1 Q1 2022 2021 Change 2022 2021 Change $305.7 $294.9 3.7% $33.0 $36.3 -9.2% 10.8% 12.3% -150 bps Adjusted EBITDA and Margin Adjusted EBITDA and AFFO/Share(2) Q1 Q1 impact of
Slide 11: Long-Term Care
LONG-TERM CARE Three months ended March 31, 2022 • Q1 revenue up $10.0M driven by $9.1M in Ontario flow-through funding and retroactive funding in Manitoba of $2.9M, offset by Revenue lower COVID-19 funding of $2.7M • Q1 NOI up $10.8M due to higher net COVID recovery of $9.9M Q1 2022 $199.8M 5.3% an
Slide 12: Home Health Care
HOME HEALTH CARE Three months ended March 31, 2022 • Sequential ADV down 4.8% from Q4 2021 as high absenteeism impeded our ability to respond to robust Revenue demand; over 2,100 ParaMed staff had COVID related sick days in Q1 2022 Q1 2022 $98.6M 1.0% • NOI margin in Q1 2022 was 5.5%(1), down 330 bp
Slide 13: Other Operations
OTHER OPERATIONS Three months ended March 31, 2022 • Lower management services revenue contributing to: Revenue • Q1 revenue decline of $0.2M or 2.1% Q1 2022 $7.3M -2.1% • Q1 NOI decline of $0.9M or 19.0%, due in part to increased staff and IT costs in support of growth initiatives NOI • Q1 NOI marg
Slide 14: Strong Financial Position
STRONG FINANCIAL POSITION As at March 31, 2022 Long-term TTM Adjusted Debt(1) Cash EBITDA interest Debt to Weighted coverage GBV(3) average rate $372M $118M Q1 2022 3.6x 34.6% 5.0% +$151M undrawn financing on LTC construction projects(2) +$125M proforma net cash from sale of retirement(3) Q4 2021 3.
Slide 15: Compelling Growth Opportunities in Long-Term Care and Home Care
COMPELLING GROWTH OPPORTUNITIES IN LONG- TERM CARE AND HOME CARE Direct services to seniors(1) LONG-TERM CARE HOME HEALTH CARE 58 9.2M Long-term care Home health care homes owned hours delivered (TTM) Management, consulting and purchasing services(1) GROUP PURCHASING CONTRACT SERVICES SERVICES AND C
Slide 16: Thank You
THANK YOU 16
Slide 17: Appendix
EXTENDICARE™ APPENDIX helping people live better
Slide 18: Estimated COVID-19 Revenue, Operating Expenses and Administrative Costs
ESTIMATED COVID-19 REVENUE, OPERATING EXPENSES AND ADMINISTRATIVE COSTS Three months ended March 31, 2022 2022 2021 2020 (millions of dollars) Q1 Q4 Q3 Q2 Q1 Year Year Revenue Long-term care 43.1 27.4 23.3 24.7 45.8 121.2 62.5 Home health care 7.6 8.7 7.7 7.8 8.8 33.0 23.6 Revenue impact 50.7 36.1 3
Slide 19: Results from Discontinued Operations
RESULTS FROM DISCONTINUED OPERATIONS Three months ended March 31, 2022 and Year ended December 31, 2021 Three months ended March 31 Twelve months ended December 31 2022 2021 2021 Retirement SK LTC Retirement SK LTC Total Retirement SK LTC U.S. (thousands of dollars unless otherwise noted) Living Hom
Slide 20: Results – NOI by Division
RESULTS – NOI BY DIVISION(1) Three months ended March 31, 2022 ($ millions) Long-term Care NOI and Margin(1) Home Health Care NOI and Margin(1) Q1 Q1 Q1 Q1 2022 2021 Change 2022 2021 Change $12.8 $14.9 -13.8% $5.0 $6.5 -23.4% 8.3% 10.3% -200 bps 5.5% 7.3% -180 bps Average Occupancy Average Daily Vol