Slide 1: Canada's Largest Seniors Care Pharmacy Provider
Canada’s Largest Seniors Care Pharmacy Provider TSX: CRRX Investor Presentation May 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
Canada’s largest and fastest growing 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 optimal 4 to 12 resident outcomes • Ensure highest levels of safety • Minimize hospital visits medications daily 4 Never has
Slide 5: Comprehensive Institutional Pharmacy Services Offering
Comprehensive Institutional Pharmacy Services Offering Dispensing Clinical and Support Equipment and Services Services Technology • High-volume solutions for cost- • Pharmacist led medication • Medication and treatment carts with effective supply of all medications reconciliation for new admissions
Slide 6: Growing National Scale
Strongest Network in the Sector Growing National Scale PacMed/PacVision equipment >95,000 beds serviced at all locations seniors housing Geographies: Ontario >1,600 communities & Western Canada fulfillment Strong Bed Growth 31 >95,000 1 centres 100000 80000 monthly >3.1 M prescriptions 60000 28,300
Slide 7: ~425,000 seniors housing beds in Canada
Today Next ~15 years Seniors housing beds - Canada Number of beds in Canada forecast to grow ~425,000 (and growing) >2x 1,025,000 22% >95,000 Rest of Market 9% Comp A ~37,000 ~425,000 ~293,000 69% Note: Incumbent bed counts per management estimates. Total seniors housing beds per CMHC Seniors Housin
Slide 8: Continuing the Growth Trajectory
Continuing the Growth Trajectory Today 2024 Target Organic growth Increase number of beds >95,000 under contract 130,000 beds beds Strategic acquisitions ~$380M Consolidate a highly $500M fragmented market in revenue1 in revenue 1. Annualized run rate based on Q1/22 revenue. 8 Significant operating
Slide 9: Organic Growth: Well Positioned to Capitalize on a Transforming Market
Organic Growth: Well Multiple Opportunities for Positioned to Capitalize Organic Growth on a Transforming Market Grow with existing customers Canadian LTC industry has as they expand commenced a period of • Acquisitions substantial expansion & • New home builds consolidation • New bed license alloca
Slide 10: Successful Execution of Acquisition Strategy
Successful Execution of Acquisition Strategy Proven ability to acquire at accretive multiples, rapidly integrate and realize synergies May 2020 April 2021 June 2021 August 2021 Remedy’sRx SmartMeds Rexall Medical Specialty Pharmacy Pharmacies +18,500 beds +2,400 beds +4,000 beds LTC Pharmacy Purchas
Slide 11: 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 • Further expanded Canada’s largest national platform • 6 sites c
Slide 12: Hogan: Adds Innovative Pharmacy Services Delivery Model
Hogan: Adds Innovative Award-Winning Hogan Model: Pharmacy Services • Uses biometrically secured Delivery Model "smart" medication March 29, 2022: Agreement to Acquire dispensing cabinets Hogan Long-Term Care Pharmacy • 24/7 pharmacist • Currently servicing ~725 beds support • On closing, will sign
Slide 13: Driving Efficiencies Through Expanded Scale
Driving Efficiencies Through Expanded Scale New high-volume fulfillment centre in Oakville, ON • Enables higher volumes Single High-Volume without additional labour costs Fulfillment Centre • Capable of serving ~30,000 beds – 3x that of previously largest ~30,000 beds facility • First pharmacy in Ca
Slide 14: Successful Execution of Our Growth Strategy
Successful Execution of Our Growth Strategy Ave. Beds Serviced Revenue Adj. EBITDA Revenue Adj. EBITDA (000s) (from continuing ops) (from continuing ops) (from continuing ops) (from continuing ops) ($ millions) ($ millions) ($ millions) ($ millions) 95.2 93.2 8.6 262.6 22.9 162.2 48.7 44.9 4.1 12.8
Slide 15: Better Positioned Than Ever for Continued Growth
Better Positioned >95,000 beds 22% Than Ever for Continued Growth • Positioned to benefit from increased scale 78% and enhanced capabilities • Experiencing accelerated organic growth Market Opportunity via • Significantly strengthened position as a Organic Growth & Acquisitions natural consolidator
Slide 16: Large, high-growth seniors living market
1 2 3 Large, high-growth Canada’s largest Leading customer seniors living market seniors care value proposition and pharmacy provider national network 4 5 Compelling organic Significant operating and acquisition leverage growth opportunities 16 www.carerx.ca
Slide 17: Appendix
Canada’s Largest Seniors Care Pharmacy Provider TSX: CRRX Appendix
Slide 18: 2024 Targets Compelling Value
2024 Targets Compelling Value 14.0x Neighbourly 11.4x Number of beds 130,000 dentalcorp 13.8x 11.3x 13.7x U.S. Healthcare 11.6x Revenue $500M Rubicon 12.0x Acquisition n/a 10.3x Savaria 8.9x 7.2x Note: Number of beds and revenue for 2024 are management targets CareRx only, and not intended to consti
Slide 19: Comp Table
Comp Table Source: FactSet Adj. EBITDA % EV/Adj. EBITDA Adj. EBITDA Margin Net Debt/Adj. EV/Sales (2022E) Growth (2022E) (2022E) (2022E) EBITDA (2022E) Canada Savaria Corp. 21% 10.3x 1.6x 16% 6.1x Dentalcorp. 24% 13.8x 2.6x 19% NA Neighbourly Pharmacy 116% 14.0x 1.7x 12% 6.1x Nova Leap Health Corp.
Slide 20: Balance Sheet
Balance Sheet (millions except ratio) At Mar. 31/21 • Ending cash balance and cash used in operations were impacted by the timing of Cash $28.5 working capital movements, including a $6.3M reduction in accounts payable during Net Debt1 $64.6 Q1/22 Net Debt to Adjusted EBITDA2 1.9x 20 1. Debt = borro
Slide 21: Capital Structure
Capital Structure Shares Outstanding (000’s) 2,766 58,569 60,000 8,883 46,920 40,000 Total Debt (at Mar 31/22) (millions) 20,000 0 Current I/O Convertible Other Outstanding Total Fully Diluted Debentures Instruments $20.0 Fully Diluted Ownership $60.0 Yorkville Asset Management 13,558,307 23.1% Bruc
Slide 22: Investor Presentation
Canada’s Largest Seniors Care Pharmacy Provider TSX: CRRX Investor Presentation May 2022