Investor Update - Amazon S3...Investor Update September, 2018 | 4 Repositioning the Business Clear...

Investor Update

September 2018

Investor Update September, 2018 | 2

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, goals, objectives, information and statements about possible future

events. Forward-looking information generally can be identified by the use of forward-looking terminology such as

“outlook”, “objective”, “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plans” or

“continue”, or similar expressions suggesting future outcomes or events. You are cautioned not to place undue reliance

on such forward-looking information. Forward-looking information is based on current expectations, estimates and

assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ

materially from those anticipated by Centric Health and described in the forward-looking information contained in this

presentation. No assurance can be given that any of the events anticipated by the forward-looking information will

transpire or occur or, if any of them do so, what benefits Centric Health will derive therefrom and neither Centric Health

nor any other person assumes responsibility for the accuracy and completeness of any forward-looking

information. Other than as specifically required by applicable laws, Centric Health assumes no obligation and expressly

disclaims any obligation to update or alter the forward-looking information whether as a result of new information,

future events or otherwise.

All dollar figures are in Canadian dollars unless otherwise stated.


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18-Month Price Chart

Capital Markets Profile

1. As of Sept. 5, 20182. As at Sept 5, 2018 from Thomson Reuters Eikon. Common share count as of Q2 2018

MD&A 208,739,240 as at June 30, 2018.

Major Shareholders

Global Healthcare Investments & Solutions 41%

Management & Board 1%

Total 42%

Stock Symbol TSX: CHH

Price1 $0.36

52-Week Low / High $0.20/$0.81

Market Capitalization $73.9M

Shares Outstanding2 208,139,399

March 2017 September 2018


Repositioning the Business

Clear and focused strategic direction

1. Strategic focus on seniors healthcare services • Establish Centric as the leading provider of pharmacy and other

healthcare services to Canadian Seniors

2. Commitment to strengthening balance sheet

• Review of existing businesses and assets that are not core to strategic direction

• May consider divestitures to reduce debt and pursue growth opportunities

Investor Update September, 2018 | 5| 5

Specialty Pharmacy


Specialty Pharmacy for Seniors Residences

Automated high-volume drug dispensing medication management

Continue to pursue organic growth opportunities with new RFPs, increasing retirement home penetration and implementing top-line initiatives


Seniors Medical Cannabis Strategic Partnerships

Multi-year strategic partnership with Canopy Growth Corporation (TSX: WEED; NYSE: CGC)

Leverage Specialty Pharmacy footprint and clinical pharmacist expertise with Canopy’s sophisticated educations programs and superior medical cannabis products

• Spectrum Cannabis beneficial to seniors with leading softgel capsule technology

Pharmacist education and oversight is key to increasing effective cannabis use in long-term care and retirement settings

Canopy has advanced meaningful business development funds to help promote pharmacy growth and cannabis initiatives

Provides revenue generating opportunity in pre-license stage


Pharmacy Regulatory Changes

Pan-Canadian Pharmaceutical Alliance ("pCPA") and Canadian Generic Pharmaceutical Association ("CGPA") agreement came into effect April 1, 2018• Prices of commonly prescribed drugs were reduced by 25%-40%• Discounts of up to 90% off the price of brand-name equivalents

Alberta Blue Cross Pharmaceutical Services Agreement • Established a new funding framework• Reduced dispensing fees and frequency of dispensing

Net impact to Adjusted EBITDA: ~$1 million in Q2 2018

After completion of business re-engineering plan, annualized net impact of up to $2 million


Business Re-engineering Plan

Maximize efficiency of national platform

Key initiatives:• Changing operating and service model

• Centralization of certain functions

• Workforce reductions

• Increased operational efficiency

• Digitization and automation of pharmacy operations

Completion expected by end of 2018


Adding New Beds

Leverage our scale by adding more beds under care

Signed new contracts with regional multi-site home operators in Ontario and BC• Adds ~1,400 beds by Q4 2018

Leveraging National Business Development team


Karie Update

Continued collaboration to launch Karie device

First units to be launched later this summer, with first 2,000 Karie devices expected to be deployed by end of 2018

Centric selected as Pharmacy Fulfillment Partner for AceAge's participation in upcoming Industry Innovation Partnership Program study


Patients taking their medications improperly resulted in 92K of admissions to homes.

Nurses are administeringmedications 90 times a day

28% of seniors hospital

admissions are due to adverse drug interactions

Seniors Pharmacy Opportunity

Sources: Statistics Canada; Canadian Institute for Health Information.

4-12medications/patient

30patients/nurse

100-200patients per home

3administrations/patient/day

4Mseniors living at home

400Kseniors in long-term care and retirement home beds

Requires proximity, efficiency and accuracy… and innovation


Surgical & Medical Centres


Serves a Diverse Customer Base

Private paid non-insured surgeries

Government outsourced insured surgeries (e.g. Workers’ Comp)

Canada’s first Centre of Excellence in metabolic and bariatric surgery

General, orthopaedic, ENT & sinus, cosmetic surgeries

Diagnostics (MRI, CT, full body scan)

Family practice, women’s health, executive health

5 25 8 72 245Facilities Operating

RoomsProcedure

RoomsBeds Physicians


Financial Review


H1 Year-Over-Year Results

Six months ended June 30, 2018 ($millions) H1 ‘18 H1 ‘17

Revenue $87.7M $86.2M

Adj. EBITDA $7.3M $9.4M

Adj. EBITDA margin 8.3% 10.9%

$64.6, 74%

$23.1, 26%

Revenue by Segment($ millions)

$6.2, 62%

$3.8, 38%

Adjusted EBITDA by Segment($ millions)

Specialty Pharmacy Surgical and Medical Centres

1.8%

22.6%


Specialty Pharmacy

9.3

6.2

14.6% 9.6%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0

2

4

6

8

10

12

14

16

18

20

H1 2017 H1 2018

Adj. EBITDARevenue

63.8 64.6

H1 2017 H1 2018

($ million)

Adj. EBITDA Margin

1.3% 33.4%($ million)


3.13.8

13.8% 16.3%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0

2

4

6

8

10

12

14

H1 2017 H1 2018

Surgery and Medical Centres

Adj. EBITDARevenue

22.4 23.1

H1 2017 H1 2018

($ million)

Adj. EBITDA Margin

3.2% 21.7%($ million)


Generated Positive Cash Flows

9.85

5.71

H1 2017 H1 2018

Cash Flow from Operations

($ million)

Anticipate cash flow from operations will continue to be positive going forward


Trailing Twelve Months Results

Specialty Pharmacy

Surgery & Medical Centres

Q2’18 TTM Q2’17 TTM Q2’18 TTM Q2’17 TTM

Revenue 125.0 126.8 45.2 43.1

Adj. EBITDA 13.9 18.9 6.8 5.3

Adj. EBITDA margin 11.1% 14.9% 15.1% 12.3%


4.0x

5.0x

6.0x

7.0x

8.0x

9.0x

10.0x

Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018

Adjusted EBITDA/Total Debt

Debt Levels

1. Adjusted EBITDA from continuing operations and Total Debt on an LTM basis

5.5x

Targeting 3.5x in the medium term

Q2’18: Regulator changes

effect Adj. EBITDA

Q1’16: Reduce debt by $30m through redemption

of remaining Alaris preferred partnership unity &

complete purchase/cancellation of $164M second

lien Senior Secured Notes

Q2’16: Successful refinancing &

reduction of April 2016 Convertible

Notes & extend revolving Credit Facility

Q2’17: Close new 5-

year Credit Facilities

Q1’17: Conversion of all

Convertible Notes and Loan to

Common SharesQ4’15: Divest

Physiotherapy,

Rehabilitation and

Assessment operations

for gross proceeds of

$250M

Investor Update - Amazon S3...Investor Update September, 2018 | 4 Repositioning the Business Clear...

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