Carerx Corporation · TSX:CRRX
Carerx — Centric Health — Shareholder Meeting (June 2020)
15 slides from Carerx's shareholder meeting presentation, Jun 18, 2020
Slide 1: Annual Meeting Management Presentation
Annual Meeting Management Presentation TSX: CHH | June 18, 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, belief
Slide 3: Becoming Canada's largest specialty pharmacy
Becoming Centric Health is Canada's leading Large, fast-growing seniors 1 Canada’s provider of Specialty market largest Pharmacy services to seniors in long- 2 Existing, scalable national platform specialty term care and 3 Multiple organic growth and retirement homes acquisition opportunities pharma
Slide 4: Large, Fast-Growing Market
Large, Fast-Growing Market Population aged 65+ $19.3 10 8 billion 6 millions 4 36% growth Current market for 2 prescription drugs for Canadian seniors 0 2020 2022 2023 2024 2025 2026 2028 2029 2030 2021 2027 Sources: Canadian Institute for Health Information, 2018; Census, 2016 4
Slide 5: Seniors Pharmacy Opportunity
Seniors Pharmacy Opportunity 4 - 12 Seniors residences – total beds 1,025,000 141% # of medications a typical senior takes daily estimated growth in the total number of 425,000 long-term care and retirement home beds between now 30 90x and 2036 residents per daily, nurses nurse administer medication
Slide 6: Best-in-Class Institutional Pharmacy Capabilities
Best-in-Class Institutional Pharmacy Capabilities ▪ High volume solutions for cost effective supply of chronic medication and other specialty clinical care services ▪ Multi-dose compliance packaging improves resident safety and adherence ▪ Requires proximity, efficiency, accuracy… and innovation 6
Slide 7: Creates largest Canadian specialty pharmacy business
▪ Creates largest Canadian specialty pharmacy business ▪ Highly complementary organizations with significant + opportunity to implement best practices ▪ Ability to realize material synergies and long-term value creation as a result of overlapping geographies and increased scale 7
Slide 8: Scaling our National Platform
Scaling our National Platform Beds serviced ~50,000 >850 >1.4M Long-term care & Monthly retirement homes prescriptions ~31,000 +84.7% +55.6% ▪ Reinforced presence in Ontario & Western Canada Before Post ▪ Well-positioned to further strengthen acquisition acquisition market position 8
Slide 9: Multiple Organic Growth and Acquisition Opportunities
Multiple Organic Growth and Acquisition Opportunities Increase our customer base Add more beds under care; penetrate seniors living at home market Expand scope of services Leverage national platform & existing customer base (examples: medical cannabis, medical supplies) Consolidate the market Make a
Slide 10: Positioned to Consolidate the Market
Positioned to Consolidate the Market #1 in market share 425,000 11.8% Centric Health Total beds in (post acquisition) market ▪ Highly fragmented market ▪ Significant opportunities exist for further market share growth Note: Incumbent bed counts per management estimates; Total market size per CMHC Se
Slide 11: Strengthened Balance Sheet
Strengthened Balance Sheet February 2019: June 2019: November 2019: May 2020: Sale of Alberta Sale of Alberta Sale of Surgical and New Credit Facilities Retail Pharmacy Retail Pharmacy Medical Centres Increased for Remedy’s ($2.3M) ($2.0M) Business ($35.0M) Acquisition ($11.4M) March 2019: November
Slide 12: Debt Reduction
Debt Reduction $89M $61M Total debt reduction $28M September 30, 2019 March 31, 2020 Credit facilities provide for up to another $14 million of debt capacity upon closing Remedy’s acquisition/achieving certain financial milestones. 12
Slide 13: Plan to Rebrand as CareRx Corporation
Plan to Rebrand as CareRx Corporation ▪ Rebrand to better reflect our strategic focus and core values ▪ Opportunity to unify our combined organization under a single national brand ▪ Also planning to have trading symbol changed from CHH to CRRX ▪ Timing on name change to be communicated in near futu
Slide 14: Outlook for 2020 / 2021
Outlook for 2020 / 2021 ▪ Integrating Remedy’s acquisition ▪ Growing organically ▪ Making strategic acquisitions 14
Slide 15: Large, fast-growing seniors market Existing, scalable
1 2 3 Large, fast-growing Existing, scalable Organic growth and seniors market national platform acquisition opportunities www.centrichealth.ca