Surgery Partners, Inc. · NASDAQ:SGRY

Surgery Partners — Debt Investor Presentation (March 2019)

24 slides from Surgery Partners's debt investor presentation, March 2019

  1. Slide 1: Investor Presentation March 2019

    12/9/2019 https:/Awww.sec.gov/Archives/edgar/data/1638833/0001 104659 19016991/a19-6738_2ex99d2.htm EX-99.2 4 a19-6738 2ex99d2.htm EX-99.2 Exhibit 99.2 i SURGERY PARTNERS Investor Presentation March 2019 https://www.sec.gov/Archives/edgar/data/1638833/000110465919016991/a19-6738_2ex99d2.htm 1124

  2. Slide 2: Legal Disclaimer

    12/9/2019 https:/Awww.sec.gov/Archives/edgar/data/1638833/0001 104659 19016991/a19-6738_2ex99d2.htm ak Legal Disclaimer Forward-Looking Statements Statements contained in this presentation, including the question and answer portion of the presentation. other than statements of historical fact. are i

  3. Slide 3: Transaction Overview

    12/9/2019 https:/Awww.sec.gov/Archives/edgar/data/1638833/0001 104659 19016991/a19-6738_2ex99d2.htm Transaction Overview Section 1 https://www.sec.gov/Archives/edgar/data/1638833/000110465919016991/a19-6738_2ex99d2.htm 3/24

  4. Slide 4: Transaction Overview

    12/9/2019 https:/Awww.sec.gov/Archives/edgar/data/1638833/0001 104659 19016991/a19-6738_2ex99d2.htm St Transaction Overview * Surgery Partners, Inc. ("Surgery Partners" or the “Company") is a leading independent operator of short-stay surgical facilities, focused on providing high quality, cost effe

  5. Slide 5: Sources and Uses and As Adjusted Capitalization

    12/9/2019 Sources and Uses and As Adjusted Capitalization https:/Awww.sec.gov/Archives/edgar/data/1638833/0001 104659 19016991/a19-6738_2ex99d2.htm ($ in Millions) Sources and Uses New Senior Unsecured Notes due 2027 $ 430.0 Redemption of Senior Unsecured Notes due 202! $ 400.0 Cash on Balance Sheet

  6. Slide 6: Summary of Terms

    12/9/2019 https:/Awww.sec.gov/Archives/edgar/data/1638833/0001 104659 19016991/a19-6738_2ex99d2.htm St Summary of Terms Issuer Guarantors Issue Distribution Security Maturity Optional Redemption Mandatory Redemption Covenants Surgery Center Holdings, Inc. Each of the existing and subsequently acquir

  7. Slide 7: Transaction Timeline

    12/9/2019 https:/Awww.sec.gov/Archives/edgar/data/1638833/0001 104659 19016991/a19-6738_2ex99d2.htm Transaction Timeline March 2019 April 2019 S M TW T FS Ss M TW T FS 1 2 1 2 3 4 5 6 3 4 5 6 7 8 9 7 8 9 10 J 12 13 10 11 12 13 14 «15 16 14°15 16 17 18 19 20 17 18 20 21 21 22 2 21 22 23 24 25 26 27 2

  8. Slide 8: Section 2

    12/9/2019 https:/Awww.sec.gov/Archives/edgar/data/1638833/0001 104659 19016991/a19-6738_2ex99d2.htm Company Update Section 2 https://www.sec.gov/Archives/edgar/data/1638833/000110465919016991/a19-6738_2ex99d2.htm 8/24

  9. Slide 9: Leading Independent Surgical Facility Operator

    12/9/2019 https:/Awww.sec.gov/Archives/edgar/data/1638833/0001 104659 19016991/a19-6738_2ex99d2.htm St Leading Independent Surgical Facility Operator $1.77 billion $273.5 million 31 States GAAP Revenue!) Credit Agreement EBITDA!) 108 ASCs 15 Surgical Hospitals 4,000 Affiliated Physicians 600,000+ An

  10. Slide 10: We Have a Diversified Mix, Focused on High Value-Add Specialties

    12/9/2019 https:/Awww.sec.gov/Archives/edgar/data/1638833/0001 104659 19016991/a19-6738_2ex99d2.htm We Have a Diversified Mix, Focused on High Value-Add Specialties, Supported by an Aging Population Surgery Partners Case Mix Other!2 Musculoskeletal Strength with high acuity patients Leading musculos

  11. Slide 11: Leading Musculoskeletal Platform is Key to Future Growth

    12/9/2019 https:/Awww.sec.gov/Archives/edgar/data/1638833/0001 104659 19016991/a19-6738_2ex99d2.htm Leading Musculoskeletal Platform is Key to Future Growth 2x $7 billion ® 100 million Increase in hip revision Annual Medicare spend fc Adults in the U.S. with procedures projected by 2026 on total joi

  12. Slide 12: Well Positioned to Capture Incremental Share in a Fragmented Market

    12/9/2019 https:/Awww.sec.gov/Archives/edgar/data/1638833/0001 104659 19016991/a19-6738_2ex99d2.htm We Are Well Positioned to Capture Incremental Share in a Fragmented Market Number of ASCs in the 4,608 5,591 https://www.sec.gov/Archives/edgar/data/1638833/000110465919016991/a19-6738_2ex99d2.htm '06

  13. Slide 13: Strong, Vertically Integrated Management Team

    12/9/2019 https://www.sec.gov/Archives/edgar/data/1638833/000110465919016991/a19-6738_2ex99d2.htm Strong, Vertically Integrated Management Team... layne DeVeydt Tom Cowhey h uti a lef Ex EVF Jennifer Baldock Donna Giles EVP & xf SVP & Chief C Carollee Brinkman George Goodwin Natio’ President A 23 14

  14. Slide 14: That has Built a Solid Foundation to Capture Growth

    12/9/2019 https:/Awww.sec.gov/Archives/edgar/data/1638833/0001 104659 19016991/a19-6738_2ex99d2.htm ... That has Built a Solid Foundation to Capture Growth Where We Were Where We Are Solid, but un-pruned assets > Streamlined, surgical facility assets Great platform, but fragmented Holistic infrastru

  15. Slide 15: 2018 was a Year of Substantial Accomplishments

    12/9/2019 https:/Awww.sec.gov/Archives/edgar/data/1638833/0001 104659 19016991/a19-6738_2ex99d2.htm b 2018 was a Year of Substantial Accomplishments Pruned Asset Base Recharged Organic Growth $100M+ Pruned Annualized Net Revenue 500+ new physicians recruited 4% improvement in same-facility case grow

  16. Slide 16: 2018 Financial Results

    12/9/2019 https:/Awww.sec.gov/Archives/edgar/data/1638833/0001 104659 19016991/a19-6738_2ex99d2.htm a 2018 Financial Results As Reported Basis Revenue Adjusted EBITDA") {$ Milfon) Credit Agreement EBITDA = $273 oa $179 $164 2016 2017 2018 Net Revenue Per Case‘?) +19% $3.402 863 : $2672 $2 2016 2017

  17. Slide 17: Considerable Momentum Entering 2019

    12/9/2019 https:/Awww.sec.gov/Archives/edgar/data/1638833/0001 104659 19016991/a19-6738_2ex99d2.htm Considerable Momentum Entering 2019 Q3 & Q4 2018 were strongest quarters since NSH acquisition 10% I SF net revenue Il sF case volume BB SF net rev / cose 4% Q3 2017 Q4 2017 Qt 2018 022018 In the Comp

  18. Slide 18: Three Pillars of Adjusted EBITDA Growth

    12/9/2019 https:/Awww.sec.gov/Archives/edgar/data/1638833/0001 104659 19016991/a19-6738_2ex99d2.htm Three Pillars of Adjusted EBITDA Growth Organic Fit For Growth M&A Consistent Corporate and Seeking to volume and rate organizational execute in high- growth synergies to drive growth sp Procurement m

  19. Slide 19: Strong Tailwinds from Growth Pillars Position the Company

    12/9/2019 https://www.sec.gov/Archives/edgar/data/1638833/000110465919016991/a19-6738_2ex99d2.htm © Growth Outlook Strong Tailwinds from Growth Pillars Position the Company to Achieve Double- Adjusted EBITDA Growth Target Tailwinds Headwinds “A Organic Physician recruitment Divestitures Medicare gro

  20. Slide 20: Transformational De Novo Opportunity in Idaho Falls

    12/9/2019 https://www.sec.gov/Archives/edgar/data/1638833/000110465919016991/a19-6738_2ex99d2.htm Transformational De Novo Opportunity in Idaho Falls Expected to Receive Licensure in Q] 2020 Idaho Falls Community Hospital * 100% owned by Surgery Partners * Scheduled to open in November 2019, with li

  21. Slide 21: Key Credit Highlights

    12/9/2019 https:/Awww.sec.gov/Archives/edgar/data/1638833/0001 104659 19016991/a19-6738_2ex99d2.htm © Key Credit Highlights Large and Growing Industry with Favorable Outpatient Dynamics Physician Centric Value Proposition Designed to Drive High Quality Patient Care in a Low Cost Setting Diversified

  22. Slide 22: Appendix

    12/9/2019 https:/Awww.sec.gov/Archives/edgar/data/1638833/0001 104659 19016991/a19-6738_2ex99d2.htm Appendix https://www.sec.gov/Archives/edgar/data/1638833/000110465919016991/a19-6738_2ex99d2.htm 22/24

  23. Slide 23: Reconciliation to Adjusted EBITDA

    12/9/2019 https:/Awww.sec.gov/Archives/edgar/data/1638833/0001 104659 19016991/a19-6738_2ex99d2.htm © Reconciliation to Adjusted EBITDA The following table reconciles Adjusted EBITDA to {loss} income before income taxes, the most directly comparable GAAP financial measure [in thousands and unaudited

  24. Slide 24: Reconciliation to Credit Agreement EBITDA

    12/9/2019 https:/Awww.sec.gov/Archives/edgar/data/1638833/0001 104659 19016991/a19-6738_2ex99d2.htm Reconciliation to Credit Agreement EBITDA The following table reconciles Credit Agreement EBITDA to cash flows from operating activities, the most directly comparable GAAP fincncial measure [in thousa

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