2030 STRATEGIC VISION

February 17, 2017

2030 STRATEGIC VISION

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February 17, 2017

Notice to Investors

We use market data and industry forecasts and projections throughout this presentation, including data from publicly available information and

industry publications. These sources generally state that the information they provide has been obtained from sources believed to be reliable,

but that the accuracy and completeness of the information are not guaranteed. The forecasts and projections are based on industry surveys

and the preparers’ experience in the industry, and there can be no assurance that any of the forecasts or projections will be achieved. We

believe that the surveys and market research others have performed are reliable, but we have not independently investigated or verified this

information. Forecasts and other forward-looking information obtained from these sources are subject to the same qualifications and

uncertainties as the other forward-looking statements contained in this presentation.

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IMPORTANT PRESENTATION INFORMATION

February 17, 2017

Forward-Looking Statements

Some of the statements made in this presentation constitute forward-looking statements within the meaning of federal securities laws. Forward-

looking statements reflect our current views with respect to future events and performance. In some cases you can identify forward-looking

statements by terminology such as “may,” “might, “will,” “should,” “could” or the negative thereof. Generally, the words “anticipate,” “believe,”

“continues,” “expect,” “intend,” “estimate,” “project,” “plan” and similar expressions identify forward-looking statements. In particular, statements

about our pipeline, industry growth opportunities, disclosure of key performance indicators, business growth strategy and financial guidance in

this presentation are forward-looking statements.

We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these

expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known

and unknown risks, uncertainties and other factors, many of which are outside of our control, which could cause our actual results, performance

or achievements to differ materially from any results, performance or achievements expressed or implied by such forward-looking statements.

For additional discussion of risks, uncertainties and other factors, see the section titled “Risk Factors” in our Annual Report on Form 10-K for the

fiscal year ended December 31, 2018 and our subsequent filings with the United States Securities and Exchange Commission (the "SEC").

Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. These risks and

uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. These

forward-looking statements are made only as of the date of this presentation. We do not undertake and specifically decline any obligation to

update any such statements or to publicly announce the results of any revisions to any such statements to reflect future events or

developments.

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IMPORTANT PRESENTATION INFORMATION

February 17, 2017

CURRENT STATE OF

AMERICAN ADDICTION CENTERS

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Why did the valuation of the only publicly-traded addiction treatment company in the country

increase dramatically over the first 4 years and decrease dramatically over the past 4 years?

$0 in market cap in 2011 $1B in market cap in 2015 $40M in market cap in 2019

$0

$250

$500

$750

$1,000

$1,250

Jul 2011 Oct 2014 Jul 2015 Jul 2016 Jul 2017 Jul 2018 Apr 2019

Ma

rke

t C

ap

AAC MARKET CAP

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February 17, 2017

HOW DID A 25 YEAR INDUSTRY VETERAN

GET IT ALL WRONG?

&

HOW DID HIS 19 YEAR OLD SON UNLOCK HIS BRAIN

TO CHANGE HIS WAY OF THINKING?

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• We are operating like we are in the stagecoach era, but in a Tesla world

• Doctors and clinicians are quick to label patients with DSM-V code diagnoses

• Blanketed approach to MAT without proof of efficacy

• One-size-fits-all treatment plans for a highly individualized disease

THE SYSTEM IS BREAKING DOWN

February 17, 2017

A D D I C T I O N M I L E S T O N E S T I M E L I N E

1784

Alcoholism Identified

as a Disease

1935

AA Founded

1964

Methadone

Introduced

2002

Buprenorphine

Introduced

1850

First Inebriate

Home Opens

1951

Antabuse FDA

Approved

1971

Narcan

Introduced

1994

Naltrexone

Introduced

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ADDICTION TREATMENT HAS NOT INNOVATED

LIKE TREATMENT HAS IN OTHER CHRONIC DISEASES

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WE ARE TREATING SYMPTOMS

INSTEAD OF THE DISEASE OF THE

BRAIN

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Depression

Anxiety

Alcoholism

Drug Addiction Gambling

Eating

Disorders


THE INDUSTRY IS IN

DISTRESS

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INDUSTRY MODEL SHIFTS

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1. Improved and added more recipes

2. Rebranded from “Domino’s Pizza” to “Domino’s”

3. Reduced the number of steps to order

4. Diversified product ordering and delivery methods

5. Developed at-home point-of-sales systems

6. Restructured and reduced brick-and-mortar footprint

DOMINO’S

Photo: Ford


1. Changed from rental to subscription model

2. Pivoted from physical DVDs to digital-only content

3. Added new and original content to diversity

product offerings

4. Increased customer base utilizing technology

NETFLIX

https://www.macrotrends.net/stocks/charts/NFLX/netflix/revenue

BLOCKBUSTER 1. Didn’t change business model

2. Stayed with current brick and mortar model

3. Went from a $6 billion market cap to a bankrupt

company in 6 years


AAC Websites

AAC’S LARGEST

ASSETS

Diagnostic testing

and the laboratory

AAC Real Estate


AAC has pharmocogenetic testing and

the full DEA drug seizures list

Other addiction treatment providers only

provide UA and a limited drug panel

AAC’S DIAGNOSTIC

TESTING

OTHER PROVIDERS


WEBMD’S VS. AAC’S

PORTFOLIO OF WEBSITES

WebMD • Approx. $720M in annual revenue, primarily

through advertising, sponsorships, and premium

consumer and provider content

• 75 million monthly site visitors

• 676,000 active physicians on Medscape

AAC • Revenue dependent on conversion of web traffic to

treatment

• 10 million monthly site visitors

• 100 treatment center advertisers


Over 1,200 beds across 8 states

REAL ESTATE


WHERE ARE

WE GOING?


TECHNOLOGY

TMS

Telemedicine

Nuclear Medicine

(SPECT and PET Scans)

The Bridge Device


DIRECT TO CONSUMER

Hematology Testing

Genetics

Testing

Nutraceuticals

On-Line Assessments


INNOVATIVE

PERSONALIZED

MEDICINE

Mind

Body Spirit


360K Calls

5M seeking addition treatment

30M needing addition treatment

365M with behavioral health symptoms

20K Patients

EXPANDED

OPPORTUNITY


$0B

$1B

$2B

$3B

$4B

$5B

2017 2018 2019 2020 2021 2022 2023 2024 2025

GLOBAL BEHAVIORAL / MENTAL HEALTH

SOFTWARE & SERVICE MARKET

Size is expected to reach $4.31 billion by 2025

From MSNBC


MARRYING PAYOR BEHAVIORS

WITH THE BEST SCIENCE


Why don’t we do genetic testing?

HOW WE BILL FOR

SERVICES TODAY

Why don’t we do on-line treatment?

Why don’t we do brain scans?


Cost sharing arrangements with payors

WHAT IS THE FUTURE

OF REIMBURSEMENT?

Direct contracts with governments, unions, EAP’s and

larger employers

Direct to consumer revenue streams

Disease management


TRANSFORMING

OUR BUSINESS

• Focus on the 365M distressed Americans with symptoms of depression,

anxiety, alcoholism, drug addiction, and other brain health diseases

• Subscription-based model for brain health care

• Direct-to-consumer products

• Redesign facilities for best-in-class technology-based customer experience

• Mobile app and website portal with premium tailored content

• AI- and VR-based therapies


NEAR-TERM

FOCUS Continued focus on current operations

Improve the balance sheet

New revenue streams


CONTINUED FOCUS ON CURRENT OPERATIONS • Filling existing beds could potentially lead to $60mm - $75mm of incremental annual revenue at

incrementally high margins

• Expense savings initiatives completed in the second half of 2018 and into the 1st quarter of 2019

are expected to reduce operating expenses by over $30 million annually

• These combined could potentially result in a run rate EBITDA of $20 million quarterly or

$80 million annually

Bed Count (Inpatient + Sober Living Capacity) 1,443

Utilization Rate 85% 88% 90%

Census at Utilization Rate 1,227 1,270 1,299

Q1 2019 Census 953 953 953

Census Increase 274 317 346

Additional Mo. Revenue (MM)(1) $4.9 $5.7 $6.2

Additional Annual Revenue (MM) $59 $68 $75

(1) Analysis assumes $18,000 in additional monthly revenue per increase in average census.


IMPROVE THE BALANCE SHEET

Sell the de novo project in Ringwood, NJ within next 3 to 6 months which could

potentially generate $20 million to pay down existing debt

Utilize existing real estate that could potentially generate up to $400

million(1) of proceeds to significantly reduce cost of capital by up to $14

million annually and improve liquidity and financial flexibility

(1) Assume proceeds from 100% of owned real estate


NEW REVENUE

STREAMS Offering branded nutraceuticals through websites

Mobile app subscription services

Brain disease advertising on websites


TRANSITION PLAN:

EXAMPLE OF NEW REVENUE STREAMS

Tiered monthly subscription-based model of care

Online nutraceuticals store

Mail order diagnostic, genomic, and nutrigenomic testing with mobile result reports

Diamond: In-person treatment experience

Platinum: Personalized program with pharmocogenetics and brain scans

Gold: telemedicine, physician-guided treatment plan

Silver: virtual physician consultation, self-guided treatment plan

Bronze: mobile app with curated content

February 17, 2017

THANK YOU

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2030 STRATEGIC VISION

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