Slide 1: Q4 2021 Results Conference Call
BUILDING A BETTER FUTURE GROWING LONG-TERM VALUE Q4 2021 Results Conference Call February 25, 2022 NON-GAAP MEASURES “EBITDA”, “Adjusted EBITDA”, “Adjusted EBITDA margin”, “net operating income” (“NOI”), “NOI margin”, “funds from operations” (“FFO”), “adjusted funds from operations” (“AFFO”), and “p
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 • Omicron variant surged in December, resulting in increased cases among our staff and outbreaks in our homes; wave appears to have crested in late January • High vaccination rates among our residents and our mandatory vaccination policy for all staff helped mitigate serious illness
Slide 4: Sale of Retirement Operation Repositions Extendicare to Focus on Growth in LTC and Home Health Care
SALE OF RETIREMENT OPERATION REPOSITIONS EXTENDICARE TO FOCUS ON GROWTH IN LTC AND HOME HEALTH CARE • Announced agreement in February 2022 to sell Esprit Retirement Communities to Sienna-SABRA partnership for $307.5M • Sold all 11 homes in Ontario and Saskatchewan, comprising our entire retirement s
Slide 5: 2021 Fourth Quarter Highlights
2021 FOURTH QUARTER HIGHLIGHTS • Recovery trends continued in Q4 2021 across all segments: vs. Q4 vs. Q3 2020 2021 LTC Occupancy +230 bps +110 bps Retirement Occupancy +320 bps +210 bps Home Health Care ADV +7.7% +1.8% SGP Customer Base +18.1% +5.4% • Pandemic costs increased to $31.6M(1) due to lat
Slide 6: Long-Term Care Redevelopment Advancing
LONG-TERM CARE REDEVELOPMENT ADVANCING • 21 redevelopment projects proposed or underway • Would lead to more than 4,600 new LTC beds, replacing 3,285 existing Class C beds across Ontario • To date, we have received 1,952 new bed awards for 10 projects including three projects under construction • Co
Slide 7: Long-Term Care Additional COVID Funding in 2022
LONG-TERM CARE ADDITIONAL COVID FUNDING IN 2022 • LTC COVID-19(1) funding net of costs of $6.1M in Q4 2021; included $11.9M for costs incurred in Q1 2021 • Average occupancy +110 bps from Q3 2021; Omicron outbreaks since December impeding new admissions LTC Average Occupancy • Occupancy protection f
Slide 8: ParaMed Volume Up in Q4 2021
PARAMED VOLUME UP IN Q4 2021 OMICRON DRIVING HIGHER ABSENTEEISM IN JANUARY • Sequential ADV up 1.8% from Q3 2021 • NOI margin in Q4 2021 was 8.8%(2), down 110 bps from Q3 2021 due to seasonal impacts and onset of Omicron wave Home Health Care • Full year 2021 NOI margin improved to 9.3%(3) from Aver
Slide 9: Financial Review Q4 2021
FINANCIAL REVIEW Q4 2021 EXTENDICARE ParaMled Esprits Lifestyle RedefiningCare =~ Communities .. helping people live better
Slide 10: Consolidated Results
CONSOLIDATED RESULTS Three and twelve months ended December 31, 2021 ($ millions, except per share amounts) Revenue NOI and Margin Q4 Q4 YTD YTD Q4 Q4 YTD YTD 2021 2020 Change 2021 2020 Change 2021 2020 Change 2021 2020 Change $319.4 $292.3 9.3% $1,216.8 $1,103.5 10.3% $42.0 $55.8 -24.7% $146.3 $181
Slide 11: Long-Term Care
LONG-TERM CARE Three and twelve months ended December 31, 2021 • Q4 revenue up $12.8M or 7.3%; largely driven by $8.4M in Revenue Ontario flow-through funding and $3.3M incremental COVID- 19 funding Q4 2021 $189.5M 7.3% • Q4 NOI up $14.3M to $23.5M; favourable change in unfunded YTD 2021 $728.7M 10.
Slide 12: Home Health Care
HOME HEALTH CARE Three and twelve months ended December 31, 2021 Revenue • Q4 revenue up $13.4M or 13.9% • ADV +7.7%,billing rate increases (including $3.5M retroactive Q4 2021 $109.8M 13.9% to Q1) and higher COVID-19 funding of $2.3M YTD 2021 $410.6M 11.5% • Q4 NOI of $10.9M and margin of 9.9%; exc
Slide 13: Retirement Living
RETIREMENT LIVING Three and twelve months ended December 31, 2021 • Q4 revenue up $1.2M or 9.7% Revenue • Q4 NOI down $0.1M to $3.2M and margin at 24.4% Q4 2021 $13.2M 9.7% • Growth in occupancy and care services, offset by YTD 2021 $49.8M 4.1% increased labour and unfunded COVID-19 costs NOI • Over
Slide 14: Other Operations
OTHER OPERATIONS Three and twelve months ended December 31, 2021 Revenue • Lower contract services revenue contributing to: Q4 2021 $6.9M -3.7% • Q4 revenue decline of $0.3M or 3.7% • Q4 NOI decline of $0.2M or 4.8% YTD 2021 $27.8M 3.8% NOI • Q4 NOI margin at 62.5% (YTD 58.1%) Q4 2021 $4.3M -4.8% •
Slide 15: Strong Financial Position
STRONG FINANCIAL POSITION As at December 31, 2021 Long-term Adjusted EBITDA Debt to Weighted Debt (1) Cash interest coverage GBV average rate $550M $105M Q4 2021 3.5x 45.2% 4.3% +$154M in undrawn construction financing Q3 2021 3.8x 45.4% 4.3% to support LTC redevelopment(2) Q4 2020 4.7x 45.9% 4.3% D
Slide 16: Compelling Growth Opportunities Across the Care Continuum
COMPELLING GROWTH OPPORTUNITIES ACROSS THE CARE CONTINUUM B2C: direct services to seniors(1) LONG-TERM CARE HOME HEALTH CARE RETIREMENT LIVING 58 9.2M 11 Long-term care Home health care Retirement communities homes owned hours delivered (TTM) owned B2B: contract & consulting services(1) GROUP PURCHA
Slide 17: Thank You
THANK YOU
Slide 18: Appendix
EXTENDICARE™ APPENDIX helping people live better
Slide 19: Estimated COVID-19 Revenue, Operating Expenses and Administrative Costs
ESTIMATED COVID-19 REVENUE, OPERATING EXPENSES AND ADMINISTRATIVE COSTS Three and twelve months ended December 31, 2021 2021(1) 2020 (millions of dollars) Q4 Q3 Q2 Q1 Year Q4 Q3 Q2 Q1 Year Revenue Long-term care 27.4 23.3 24.7 45.8 121.2 24.1 20.4 17.6 0.4 62.5 Retirement living - - - - - - - - - -
Slide 20: Results – NOI by Division
RESULTS – NOI BY DIVISION(1) Three and twelve months ended December 31, 2021 ($ millions) Long-term Care NOI and Margin (1) Home Health Care NOI and Margin (1) Q4 Q4 YTD YTD Q4 Q4 YTD YTD 2021 2020 Change 2021 2020 Change 2021 2020 Change 2021 2020 Change $17.4 $17.0 2.7% $64.3 $73.5 -12.5% $8.5 $5.