Carerx Corporation · TSX:CRRX
Carerx — Investor Presentation (July 2020)
17 slides from Carerx's investor presentation, July 2020
Slide 1: Investor Presentation
Investor Presentation TSX: CRRX | July 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, beliefs
Slide 3: CareRx is Canada's leading provider of Specialty Pharmacy services to seniors
CareRx is Canada's Large, fast-growing leading provider of seniors market Specialty Pharmacy services to seniors Existing, scalable national platform in long-term care and retirement Multiple organic homes growth and acquisition opportunities 33
Slide 4: Seniors Pharmacy Opportunity
Seniors Pharmacy Opportunity Seniors residences – total beds 4 - 12 # of medications a typical senior takes 1,025,000 141% daily estimated growth in the total 425,000 number of long- term care and retirement home beds between 30 90x now and 2036 residents per daily, nurses nurse administer 4 Today 2
Slide 5: Our Growing National Footprint
Our Growing National Footprint Beds serviced >50,000 Seniors Homes >850 Monthly >1,400,000 prescriptions Geographies Western Canada & Ontario 5
Slide 6: Best-in-Class Technology
Best-in-Class Technology • High volume solutions for cost effective supply of chronic medication and other specialty clinical care services • Automated preparation and verification of multi- dose compliance packaging of medication • Provides highest level of safety and adherence for individuals with
Slide 7: Best Positioned to Consolidate the Market
Best 11.8% Positioned to 8.2% Consolidate 7.0% 68.8% 4.2 the Market % 425,000 CareRx Beds >50,000 Total beds in Competitor A 35,000 Canada Competitor B 30,000 Competitor C 18,000 All others ~292,000 7 Note: Incumbent bed counts per management estimates; Total market size per CMHC Seniors Housing Rep
Slide 8: Transformation Timeline
Transformation Timeline Spring 2019 November 2019 March 2020 June 2020 May 2018 November 2018 Sales of Non-Core Sale of Surgical and New Credit Special Warrant David Murphy Andrew Mok Retail Pharmacies Medical Centres Facilities Financing appointed CEO appointed CFO ($4.3M) ($35.0M) ($39.7M) ($11.5M
Slide 9: Growth Strategy Provides Opportunity for Significant Shareholder Value
Growth Increase beds under contract Well capitalized and positioned to win Strategy significant new RFPs and contracts Provides Consolidate the market Opportunity Highly fragmented market provides opportunity for accretive acquisitions for Significant to increase scale and realize operational effici
Slide 10: Growing Beds Under Care
Growing Beds Under Care Increase residents serviced in long- term care and retirement homes • Leverage existing operations to increase penetration within homes serviced and cross-sell (medical cannabis, medical supplies, etc.) • Focus on RFP wins with national and regional home operators • Over 45,0
Slide 11: M&A Strategy
M&A Strategy 1 Highly 2 With strong 3 At accretive complementary synergy potential purchase multiples Leverage current Ability to realize Highly accretive market dynamics to substantial synergies acquisitions at make opportunistic through rationalization, discounts to CRRX’s roll-up acquisitions imp
Slide 12: Pharmacy At Your Door
Pharmacy At Your Door New digital business providing free same-day delivery service • Targets the six million Canadian seniors living at-home and other customers • Offers enhanced convenience while promoting medical adherence • Leverages existing CareRx national platform and technological capabiliti
Slide 13: Stabilized Funding Regime Creates Regulatory Clarity
Stabilized Funding Regime Creates Regulatory Clarity • Several regulatory changes have impacted pharmacy reimbursement models in the past two years • Term of each funding model provides a more stable and predictable regime for foreseeable future Regulatory Change Details Term Pan-Canadian Generic Ef
Slide 14: CareRx is an Essential Service Provider
CareRx is an Essential Service Provider • Safe and timely supply of medications to seniors remains an essential service during the COVID-19 pandemic • Non-cyclical nature of seniors pharmacy business is generally unaffected by broader economic and market conditions • Primary funding from provincial
Slide 15: Capital Structure
Capital Structure Shares Outstanding (000’s) * 2,091 37,844 40,000 11,075 Total Debt 30,000 24,678 (millions) 20,000 $4.0 10,000 0 $12.7 Current I/O Convertible Other Total Fully $27.0 Debentures Outstanding Diluted Instruments Fully Diluted Ownership Yorkville 10,011,667 26.5% Vendor take back Bruc
Slide 16: Outlook for 2020 / 2021
Outlook for 2020 / 2021 • Integrating Remedy’s acquisition • Growing organically • Making strategic acquisitions 16
Slide 17: Large, fast-growing seniors market
1 2 3 Large, fast-growing Existing, scalable Organic growth and seniors market national platform acquisition opportunities www.carerx.ca