Surgery Partners, Inc. · NASDAQ:SGRY

Surgery Partners — Debt Investor Presentation (October 2018)

21 slides from Surgery Partners's debt investor presentation, October 2018

  1. Slide 1: Lender Presentation October 2018

    12/9/2019 https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm EX-99.1 2 a18-36612_1ex99d1.htm EX-99.1 Exhibit 99.1 fk SURGERY PARTNERS Lender Presentation October 2018 https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm 1/21

  2. Slide 2: Legal Disclaimer: Forward-Looking Statements

    12/9/2019 https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm ail pe Legal Disclaimer Forward-Looking Statements Statements contained in this presentation, including the question and answer portion of the presentation, or ans ere ted Be are forward-tooking statem

  3. Slide 3: Legal Disclaimer: Notice to and Undertaking by Recipients

    12/9/2019 https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm alle pe Legal Disclaimer Notice to and Undertaking by Recipients This Presentation has been prepared solely for informational purposes from information supplied by the Company, and is being furnished b

  4. Slide 4: Transaction Overview

    12/9/2019 https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm Transaction Overview Section 1] Confidential https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm 4/21

  5. Slide 5: Transaction Overview

    12/9/2019 https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm ate 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

  6. Slide 6: Sources and Uses and Pro Forma Capitalization

    12/9/2019 https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm Sources and Uses and Pro Forma Capitalization ($ in Mitions) itali: 0) (as of Pro Forma Capitalization’ Pro Forma for Pro Forma for Pro Forma for Pro Forma tor Actol = incremental Capital Actual increm

  7. Slide 7: Summary of Terms

    12/9/2019 https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm ot Summary of Terms Borrower Facility Guarantors Security Maturity Pricing LIBOR Floor New Issue Price Amortization Voluntary Prepayments Mandatory Prepayments Financial Covenants Negative Covenants Co

  8. Slide 8: Anticipated Transaction Timeline

    12/9/2019 https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm Anticipated Transaction Timeline October 2018 SoM Taw 1: F S 1 2 3 4 5 6 7 8 9 10 J 2 13 14 #15 16 1 #19 20 21° 22 24 25 26 27 28 29 30 3) | Key Event Date Title October 11 Lender call October 17 Lende

  9. Slide 9: Section

    12/9/2019 https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm Company Update Section 2 Confidential https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm 9/21

  10. Slide 10: Leading Independent Surgical Facility Operator

    12/9/2019 https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm ate Leading Independent Surgical Facility Operator $261 million 32 States LTM 6/30/18 Credit Agreement EBITDA") 106 ASCs 18 Surgical Hospitals 4,000 Affiliated Physicians 600,000+ Annual Patients i, (1

  11. Slide 11: Diversified Mix, Focused on High Value-Add Specialties, Supported by an Aging Population

    12/9/2019 https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm & 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 musculoskeletal

  12. Slide 12: Leading Musculoskeletal Platform is Key to Future Growth

    12/9/2019 https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm Leading Musculoskeletal Platform is Key to Future Growth 2x & $7 billion ® 100 million Increase in hip revision pees Annual Medicare spend on fe Adults in the U.S. with procedures projected by 2026 LL!

  13. Slide 13: Well Positioned to Capture Incremental Share in a Fragmented Market

    12/9/2019 https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm - Well Positioned to Capture Incremental Share in a Fragmented Market Number of ASCs in the U.S. Total: +2% 4,608 5,591 Independents +1% Other Hospitals +1% National Operators +5% 2006 2016 Confidentia

  14. Slide 14: Strong, Vertically Integrated Management Team

    12/9/2019 https://www.sec.gov/Archives/edgar/data/1638833/0001 1046591 8061481/a18-36612_1ex99d1.htm i Strong, Vertically Integrated Management Team... Carollee Brinkman National Group Pres Wayne DeVeydt > Officer Chief Executive Jennifer Baldock EVP & Ch ] gem tea https://www.sec.gov/Archives/edgar

  15. Slide 15: That has Built a Solid Foundation to Capture Growth

    12/9/2019 https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm : ... That has Built a Solid Foundation to Capture Growth Where We Were Where We Are > Streamlined, surgical facility assets Holistic infrastructure Lack of strategic clarity ) Focused management and v

  16. Slide 16: Three Primary Initiatives to Drive Profitability and Scale

    12/9/2019 https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm at Three Primary Initiatives to Drive Profitability and Scale Pruning the Asset Base Consolidating the Platform Data-driven strategic assessment of opportunities and challenges across portfolio Diveste

  17. Slide 17: Recent New Market Acquisitions

    12/9/2019 : Recent New Market Acquisitions https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm Facilities with Strong JV Physician Partners in Attractive Specialties at Reasonable Valuations Recent Acquisition Activity Confidential Date Closed Location Specialty

  18. Slide 18: Strong Pipeline of Near-term Opportunities

    12/9/2019 https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm - Strong Pipeline of Near-term Opportunities Selected Pipeline Opportunities Opportunity Status Specialty Chama A Under LOI MSK (spine, pain) 4Q18 Very attractive + | Otho, Pan Gyn. | ‘ pipeline of nea

  19. Slide 19: Appendix

    12/9/2019 https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm Appendix Confidential https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm 19/21

  20. Slide 20: Historical Financial Summary

    12/9/2019 https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm & Historical Financial Summary As Reported Basis {$ Million) (3 Million) $1.628.8 $1.341.2 $1,145.4 : $179.3 $1643 2016 2017 8 2016 2017 LTM 6/30/1 LIM 6/30/18 BAC, ERTDA a Rene |synergi . Case Volume

  21. Slide 21: Reconciliation of EBITDA to Adjusted EBITDA and Credit Agreement EBITDA

    12/9/2019 https://www.sec.gov/Archives/edgar/data/1638833/000110465918061481/a18-36612_1ex99d1.htm ite Reconciliation of EBITDA to Adjusted EBITDA and Credit Agreement EBITDA 2016 2017 LIM 6/30/18 EBITDA s 156.7 $ 1702 $ 172.2 Plus: Transaction, Integration & Practice Acquisition Costs "! 116 17.0 3

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