Slide 1: Building a Better Future, Growing Long-Term Value: Q2 2021 Results
BUILDING A BETTER FUTURE GROWING LONG-TERM VALUE Q2 2021 Results Conference Call August 6, 2021 NON-GAAP MEASURES “EBITDA”, “Adjusted EBITDA”, “net operating income” (NOI), “funds from operations” (FFO), and “adjusted funds from operations” (AFFO) are non-GAAP measures and do not have standardized m
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 • Successful vaccination campaign has made it possible to welcome back families and visitors in our homes and communities • Residents 92% in LTC and 90% in retirement fully vaccinated • Staff 86% in LTC, 80% in retirement and 86% in ParaMed have received first dose • No outbreaks as
Slide 4: 2021 Second Quarter Highlights
2021 SECOND QUARTER HIGHLIGHTS • Pandemic costs decreased to $42.8M in Q2, down 26% from Q1 2021; costs exceeded funding by $9.5M(1) • Volatility in results expected to continue due to timing of COVID-19 costs and related recoveries • Anticipate further funding to cover some of the 1H 2021 net COVID
Slide 5: Long-Term Care – Redevelopment Advancing
LONG-TERM CARE – REDEVELOPMENT ADVANCING • Commenced construction on Kingston 192-bed home with targeted completion of Q1 2023; Sudbury 256-bed home construction ongoing • Two projects represent a total investment of $120.3M(1) • Closed $95.9M in construction financing to support Sudbury and Kingsto
Slide 6: Long-Term Care – COVID-19 Costs Continue to Weigh on NOI; Occupancy Improving
LONG-TERM CARE – COVID-19 COSTS CONTINUE TO WEIGH ON NOI; OCCUPANCY LEVELS IMPROVING • LTC COVID-19 costs(1) of $32.7M in Q2, down $15.4M from $48.1M in Q1 2021; net unfunded COVID costs were $7.2M in Q2 • Additional COVID-19 funding is anticipated to offset some portion of the net COVID costs incur
Slide 7: ParaMed – Volumes Return to Pre-Pandemic Levels; Staffing Capacity Weighs on Growth
PARAMED – VOLUMES RETURN TO PRE-PANDEMIC LEVELS; STAFFING CAPACITY CONTINUES TO WEIGH ON GROWTH • ADV recovered to pre-pandemic levels, Q2 ADV up 3.7% from Q1 2021 • Improved back-office efficiencies contributing to NOI margin growth, +60 bps to 7.9%(2) in Q2 vs. Q1 • Pace of volume growth impacted
Slide 8: Financial Review Q2 2021
FINANCIAL REVIEW Q2 2021 = 4 EXTENDICARE + EXTENDICARE ParaMled Eyl assist Redefining Care NETORK Better all together ... helping people live better
Slide 9: Consolidated Results
CONSOLIDATED RESULTS Three and six months ended June 30, 2021 ($ millions, except per share amounts) Revenue NOI and Margin Q2 Q2 YTD YTD Q2 Q2 YTD YTD 2021 2020 Change 2021 2020 Change 2021 2020 Change 2021 2020 Change $307.4 $281.9 9.0% $629.8 $553.8 13.7% $31.3 $19.9 56.8% $71.5 $50.3 42.1% 10.2%
Slide 10: Long-Term Care
LONG-TERM CARE Three and six months ended June 30, 2021 • Q2 revenue up $8.7M or 4.9% • YoY increased COVID-19 funding of $7.9M Revenue • Q2 NOI down $1.3M or 12.0% Q2 2021 $187.2M 4.9% • Higher costs of resident care and lower preferred YTD 2021 $392.3M 15.8% accommodation revenue, partially offset
Slide 11: Home Health Care
HOME HEALTH CARE Three and six months ended June 30, 2021 Revenue • Q2 revenue up $15.6M or 18.3% • 24% increase in ADV, partially offset by lower COVID-19 Q2 2021 $101.1M 18.3% pandemic pay funding of $1.8M YTD 2021 $198.8M 11.3% • Q2 NOI up $12.6M to $14.0M and margin at NOI 13.9% Q2 2021 $14.0M 8
Slide 12: Retirement Living
RETIREMENT LIVING Three and six months ended June 30, 2021 Revenue • Q2 revenue up $0.6M or 4.8% Q2 2021 $12.3M 4.8% • Q2 NOI up $0.2M or 5.2% and margin +10 bps YTD 2021 $24.5M 2.9% • Contributions from lease-up occupancy and lower YoY COVID-19 costs, partially offset by increased labour and promot
Slide 13: Other Canadian Operations
OTHER CANADIAN OPERATIONS Three and six months ended June 30, 2021 • Q2 revenue up $0.6M or 9.8% Revenue • Q2 NOI down $0.2M or 4.0% and margin at Q2 2021 $6.9M 9.8% 54.2% (YTD 58.1%); reflecting increased staff YTD 2021 $14.3M 12.4% and higher business development costs to support growth NOI • +11.
Slide 14: Strong Financial Position
STRONG FINANCIAL POSITION As at June 30, 2021 Long-term EBITDA interest Debt to Weighted Debt (1) Cash coverage GBV average rate $565M $133M Q2 2021 5.4x 46.3% 4.3% +$95.9M in construction financing closed Q1 2021 5.0x 46.2% 4.3% in Q2 2021 to support LTC redevelopment(3) Q4 2020 4.7x 45.9% 4.3% Deb
Slide 15: Compelling Growth Opportunities Across the Care Continuum
COMPELLING GROWTH OPPORTUNITIES ACROSS THE CARE CONTINUUM B2C: direct services to seniors LONG-TERM CARE HOME HEALTH CARE RETIREMENT LIVING 58 8.8M 11 Long-term care Home health care Retirement communities homes owned hours delivered (TTM) owned B2B: contract & consulting services GROUP PURCHASING C
Slide 16: Thank You
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Slide 17: Appendix
EXTENDICARE APPENDIX helping people live better
Slide 18: Q2 2021 Estimated COVID-19 Revenue, Operating Expenses and Administrative Costs
Q2 2021 ESTIMATED COVID-19 REVENUE, OPERATING EXPENSES AND ADMINISTRATIVE COSTS Three and six months ended June 30, 2021 2021 2020 (millions of dollars) Q2 Q1 YTD Q2 Q4 Q3 Q2 Q1 YTD Q2 Year Revenue Long-term care 25.5 47.0 72.5 25.6 21.1 17.6 0.4 18.0 64.7 Retirement living - - - - - - - - - Home he
Slide 19: Results – NOI by Division
RESULTS – NOI BY DIVISION (1) Three and six months ended June 30, 2021 ($ millions) Long-term Care NOI and Margin (1) Home Health Care NOI and Margin (1) Q2 Q2 YTD YTD Q2 Q2 YTD YTD 2021 2020 Change 2021 2020 Change 2021 2020 Change 2021 2020 Change $17.0 $19.7 -13.9% $34.4 $38.5 -10.6% $7.3 $1.8 31