Recent Acquisition of Code Bleu

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Premier Health of America

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Premier Health of America

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Healthcare

Published

November 6, 2020

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#1+ TSX: PHA PREMIER HEALTH OF AMERICA CORPORATE OVERVIEW#2PREMIER HEALTH OF AMERICA PREMIER HEALTH FORWARD LOOKING STATEMENTS + This corporate overview contains information which Premier Health of America (the "Company", "Premier Health", or "PHA") considers proprietary and confidential. By accepting this document, the Recipient acknowledges the proprietary and confidential nature of the information contained herein and agrees to keep confidential all such information. The Recipient further agrees not to copy or reproduce any of the material herein and agrees not to circulate or divulge the information to any other person without the Company's written permission. Statements in this corporate overview that are not strictly historical in nature are forward-looking statements. These statements may contain words such as "believe," "anticipate,” “expect,” “project,” “plan,” “intend” and words of similar meaning. These statements are predictions based on current information, Premier Health's expectations and involve a number of risks and uncertainties. The underlying information and Premier Health's expectations are likely to change over time. Actual events or results may differ materially from those projected in the forward-looking statements due to various factors. Forward-looking statements herein speak only as of the date of this corporate overview. Unless required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect new information or future events or developments. The Company reserves the right to amend or replace this corporate overview at any time and may do so without prior written notice to the Recipient. This corporate overview has been prepared for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. CONFIDENTIAL - NOT FOR DISTRIBUTION 2#3PREMIER HEALTH THE 3 PILLARS OF OUR BUSINESS + EFFICIENT HEALTHCARE SOLUTIONS FOR A CHANGING ENVIRONMENT Seamless service delivery 24/7/365 communication center to systematically answer customer requests. Leading-edge solution Mobile applications for real time assignments, geo-positioning, confirmations and billing. Connecting people with work Professionals matched with assignments according to qualifications, availabilities and geography. Premier Health is a leading Healthtech company that provides a comprehensive range of staffing and outsourced services solutions for healthcare needs to governments, corporations, and individuals. Premier Health uses its proprietary PSweb platform to lead the healthcare services sector digital transformation to provide clients with faster, cheaper and more accessible care services. PREMIER HEALTH OF AMERICA CONFIDENTIAL - NOT FOR DISTRIBUTION 3#4PREMIER HEALTH MANAGEMENT MARTIN LEGAULT, CEO AND FOUNDER, has over 20 years of experience managing and growing several businesses successfully. He previously headed an HR department where he oversaw 560 employees, while managing operations at more than 17 outlets. Martin has successfully headed Premier Healthcare's growth from the very start and is involved in daily operations as well as business development and the company's strategic directions. SYLVAIN CHARBONNEAU, CFO, has held over the last 10 years the position of CFO in manufacturing companies operating internationally, including Transtex / E-Smart Control since 2016. From 2005 to 2010, Sylvain was part of the Corporate Finance team at Deloitte in Montreal as Vice-President where he carried out several M&A transactions as well as several large financings. From 1997 to 2005, he was a partner in a consulting firm where he worked on several large international investment projects. JEAN-ROBERT PRONOVOST, VP CORPORATE DEVELOPMENT AND DIRECTOR, is the founder of private equity firm Cape Partners Inc. Jean- Robert was previously a partner and co- founder of a family office venture capital fund with investments in Canada, the United States and Europe, spent four years at Credit Suisse First Boston advising on large mergers and acquisitions and worked six years at the Caisse de Dépôt et Placement du Quebec. PREMIER HEALTH OF AMERICA CONFIDENTIAL - NOT FOR DISTRIBUTION 4#5PREMIER HEALTH BOARD OF DIRECTORS MARTIN LEGAULT, CEO AND FOUNDER, has over 20 years of experience managing and growing several businesses successfully. He previously headed an HR department where he oversaw 560 employees, while managing operations at more than 17 outlets. Martin has successfully headed Premier Healthcare's growth from the very start and is involved in daily operations as well as business development and the company's strategic orientations. ÉRIC CHOUINARD, CHAIRMAN, is a Bachelor of Business Administration (B.B.A.) Accounting & Finance. Founder & Chairman of the Board of iWeb. Sold to Internap for 156M USD. Founder & Investor of Wealthica, connecting your financial dots. Entrepreneur in Residence and coach to École entrepreneurship de Beauce and Advisory Board Member of SuccesFinder. JOSEPH CIANCI, DIRECTOR, CPA, CA since 1986, presently manages his Chartered Professional Accountant's practice. Extensive experience in banking, finance, taxation and management advisory services at DBO Dunwoody, Raymond Chabot Grant Thorton and previous positions over the past 35 years as chief financial officer of several private family trusts. JEAN-ROBERT PRONOVOST, VP CORPORATE DEVELOPMENT AND DIRECTOR, is the founder of private equity firm Cape Partners Inc. Jean-Robert was previously a partner and co- founder of a family office venture capital fund with investments in Canada, the United States and Europe, spent four years at Credit Suisse First Boston advising on large mergers and acquisitions and worked six years at the Caisse de Dépôt et Placement du Quebec. ANNE CÔTÉ, DIRECTOR is a lawyer and manager with more than 35 years of experience, including 13 years in a private healthcare company and 18 years in the venture capital industry for the commercialization of energy technologies, with executive responsibilities including involvement in legal affairs, business sales, mergers and acquisitions, legal and regulatory compliance, corporate governance and corporate communications. MARIE LABERGE, DIRECTOR, holds 20 years experience in the financial services industry. She served as Chief Representative, and First Vice President for BayernLB (Bayerische Landesbank) a German bank, in Canada. She also served as Member of Senior Management for Credit Suisse in Canada where she lead the Corporate Banking team in Montreal. She also held senior roles at BMO, ABN Bank and other financial institutions. HUBER MARLEAU, DIRECTOR, is an economist and co- founder of Palos Management, Hubert has over 45 years of experience in the financial community where he held senior roles at Nesbitt Burns and Levesque Beaubien. Hubert was also Governor of the Toronto, Montreal and Vancouver Stock Exchanges and has acted as board member of over 50 publicly listed companies. GILLES SEGUIN, DIRECTOR, Head of the securities law team at BCF, Gilles Seguin sits as the Vice-Chairman of the board of BCF Business Law. Renowned as the leading Québec expert in Exempt Market Securities, Mr. Seguin specializes in securities law, mergers and acquisitions, and corporate law. He also has extensive experience in takeover bids, public offerings, and private placements. PREMIER HEALTH OF AMERICA CONFIDENTIAL - NOT FOR DISTRIBUTION 5#6THE OPPORTUNITY HEALTHCARE SYSTEMS' QUEST FOR EFFICIENCIES Convergence of health care and technology GLOBAL HEALTHCARE TRENDS + + Convergence of health care and technology to develop capabilities, products, and services critical to a more efficient delivery of care. Key healthtech value proposition includes enhanced care quality, reduced costs, and improved access to care. + STAFING AND Premier Health developed its platform as an enabler of existing workflows and process that haven't been able to scale historically. OUTSOURCED SERVICES + Staffing represents 70% of hospital costs and massive efficiencies can be gained by optimizing logistics and access to resources. POST COVID OPPORTUNITY Pressure on healthcare organizations will recede gradually and decision makers will have to address issues exposed by the pandemic. Healthcare systems and regulators will accelerate their quest for efficiencies. PREMIER HEALTH OF AMERICA CONFIDENTIAL - NOT FOR DISTRIBUTION 6#7CANADIAN HEALTHCARE SYSTEM OVERVIEW OF OUR IMMEDIATE ADDRESSABLE MARKET Canada Healthcare cost in Canada was $264.4B in 2019. So far, Premier has focused on the institutional public sector. Hospital staffing, in Canada only, represents >$45B per year. $264.4 Hospital care costs about Breakdown of the biggest costs of hospital stays billion OECD Premier's platform addresses both public and private sectors and can be deployed outside Canada. Only organizational protocols differ from one sector/country to another. Private vs. public spending on health in different countries 23% 70% 30% CANADA Public 77% 27% 73% Private Public U.K. Private Public 3.9% growth $7,068 per person 11.6% of GDP $68 billion a year in Canada... making it the largest category of health spending (Source: CIHI, 2019) 71% Staff salaries <10% 15 Drugs and medical supplies Private 51% PREMIER HEALTH OF AMERICA (Source: CIHI, 2018) 16% U.S. 49% Private GERMANY Private Public .JOT FOR DISTRIBUTION Source: National Health Expenditure Database, Canadian Institute for Health Information, 2019 (Source: OECD, 2018) OECD 84% Public Average of OECD (Organisation for Economic Co-operation and Development) countries 7#8PREMIER HEALTH COMPANY HISTORY AND GROWTH MILESTONES . Gained traction in 2012 and 2013 following the initial platform roll out. Completed 2 acquisitions to reach expected revenues of >$50M in FY2021 ($5.7 EBITDA). $60,000,000 EBITDA $5.7 $50,000,000 $40,000,000 $30,000,000 $1.9 $20,000,000 $0.9 $10,000,000 $0.2 $0.1 $0.3 $0.2 $0.7 $0.3 $0.4 $0.0 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Premier Soin ■Nordik ■Code Bleu PREMIER HEALTH OF AMERICA 2011 2013 Decision to build Institutional proprietary platform agreements cover the whole province of Quebec Going public transaction and acquisition of Code Bleu 2021 Consolidation of the Code Bleu acquisition 2017 2018 2020 Roll out of wireless platform and Acquisition of Excel Santé portability functionalities CONFIDENTIAL - NOT FOR DISTRIBUTION 80#9ACQUISITION AND ORGANIC GROWTH CASE STUDY: ACQUISITION OF EXCEL HEALTH HOW PREMIER HEALTH LEVERAGES ITS OPERATING PLATFORM PRE- ACQUISITION ACQUISITION PARAMATERS INTEGRATION Before its acquisition Excel had revenues of $2.9M and EBITDA of $340K. + The company was managed manually and showed no growth with important historical revenue volatility. Premier paid 3.8X EBITDA (including debt) in 2018 for a total consideration of $850K. Payment structure included a $200K balance of sale. + Premier acquired the business and completed the integration on its operating platform before FYE2018. Revenues increased from $2.9M to $6.7M in 2019, and to $8.3M in 2020. We estimate that there are over 100 potential targets with similar characteristics across Canada. PREMIER HEALTH OF AMERICA CONFIDENTIAL - NOT FOR DISTRIBUTION 9#10OUR BUSINESS LEVERAGING PEOPLE AND TECHNOLOGY Service Effective and comprehensive range of ⚫ staffing and services solutions for the healthcare sector. Multiple segments including emergency rooms and operating rooms personnel, medical transport, and remote location specialists. Strong presence in Quebec and Nunavut, with roll out in northern Alberta, Manitoba and Ontario. Solution Proprietary CRM end-to-end platform for complete business process automation. Integrated mobile applications for direct interaction and live availability updates. Risk management through ⚫ integrated supervision and response protocols. 100% portable to other business segments, and geographies. People Database of over 35,000 professionals and 500 client organizations including governments and institutions. Specialized in-house training programs for special assignments. PREMIER HEALTH OF AMERICA CONFIDENTIAL - NOT FOR DISTRIBUTION 10 10#11PROPRIETARY PLATFORM LEVERAGING PEOPLE AND TECHNOLOGY BARRIER WHY TECHNOLOGY IS CRITICAL TO ENTRY GROWTH VECTOR PREMIER HEALTH OF AMERICA + PHA has the ability to match a resource with a service requirement in a seamless automated process. Without this technology layer it has become increasingly difficult for conventional players to operate proficiently. + Increase in footprint, both in terms of resources and geography, is not possible without a scalable platform. + PHA generates important revenue synergies by acquiring conventional agencies and integrating them on its operating platform to optimize both the resources and the service requests sides of the business cycle. Growth vectors include added functionalities and a wider platform scope to integrate and/or develop new business segments at marginal costs. CONFIDENTIAL - NOT FOR DISTRIBUTION 11#12PREMIER HEALTH OF AMERICA PROPRIETARY PLATFORM LEVERAGING PEOPLE AND TECHNOLOGY BACK END Over 3,500 active professionals live with web and mobile applications Calendrier Juin 2019 Legende PLATFORM Database, scheduling, protocols, and administration management PICH Employe FRONT END 24/7/365 customer requests dispatch center 8,800 calls per month 97% answered 6 seconds average wait • • • Quarts plantes O Nurses Nursing assistants Care attendants • Coordinators • Caregivers Respiratory therapist • Other Real time assignment Real time completion confirmation • Billing • Hiring protocol Response protocol Database management CONFIDENTIAL - NOT FOR DISTRIBUTION • Service centers Hospitals Medical clinics Rehabilitation centers Nursing homes Pharmacies Other 12#13BUSINESS PROCESS SERVICE DELIVERY AND REVENUE GENERATION PROCESS AUTOMATION TO MAXIMIZE BUSINESS CYCLE EFFICIENCY 500 customers wait time < 30 seconds confirmation time <5 mins average assignment 8 hours receivables 30-60 days Customer request Calls communication center with a service request Request received Request is confirmed and processed on the platform Request pushed Qualifications, calendar and location specific request is pushed in database and work assignment is confimed Arrives at location Work assignment starts at arrival on location and is confirmed with mobile app Service Is provided Service performed as requested Leaves location Assignment logbook entry is generated when resource leaves location Automatic billing Based on assignment logbook entry with link to payroll system Analytics Platform keeps track of every communications, assignments and performance metrics PREMIER HEALTH OF AMERICA CONFIDENTIAL - NOT FOR DISTRIBUTION 13#14BUSINESS PROCESS RESOURCE ACQUISITION AND MANAGEMENT COMPLETE SCHEDULING AND LOCATION FLEXIBILITY FOR HEALTH CARE PROFESSIONALS 50 interviews per week >35,000 professionals Resource paid every two weeks N Interviews Interview with qualifications and background checks Training Compogny training when required for special assignments such as remote locations Database Resourceisin the system and ready for assignments Availability Resource inputs his/her availabilities, locations and other preferences with mobile app Notification Notification is pushed automatically to resource matching customer request Assignment Logbook entry is generated by mobile app and sent to platform Payroll Resource is paid based on his/her logbook entries Analytics Resource is paid based on his/her logbook entries PREMIER HEALTH OF AMERICA CONFIDENTIAL - NOT FOR DISTRIBUTION 14#15DEVELOPMENT STRATEGY LEVERAGING PEOPLE AND TECHNOLOGY THE PSWEB PROPRIETARY PLATFORM IS AN EXCEPTIONAL TOOL LEVERAGED BY THE COMPANY TO DEVELOP NEW GEOGRAPHIC MARKETS AND BUSINESS SEGMENTS. INCREASE INSTITUTIONAL REACH Technology solutions and communication center efficiencies enable the company to win large institutional contracts across Canada. GROWTH BY ACQUISITIONS Premier Health identified acquisitions with personnel onboarding as the fastest growth vector. NEW BUSINESS SEGMENTS The CRM platform and communication center are being leverage to develop new business segments for cross selling opportunities. PREMIER HEALTH OF AMERICA CONFIDENTIAL - NOT FOR DISTRIBUTION 15#16FINANCIAL OVERVIEW FOR THE YEAR ENDED SEPTEMBER 30, 2020 FINANCIAL OVERVIEW Year ended September Year ended September RESULTS 30, 2020 30, 2019 CAPITALIZATION As at September 30 2020 Revenues $20,739,973 $11,617,783 Held by insiders 66.1% 30,053,335 Direct costs $15,027,783 $9,062,828 Public float 19.6% Gross margin $5,712,190 $2,554,955 Common shares (9-30-2020) Administrative expenses $3,740,122 $1,819,921 Code Bleu acquisition 14.3% Operating income $1,972,068 $735,034 Common shares (12-31-2020) 8,900,418 38,953,753 6,521,739 45,475,492 Financial expenses $199,844 $221,335 BASIC / DILUTED Non-recurring items $1,331,059 $0 Basic 45,475,492 Stock based compensation $0 $0 Warrants (price/outstanding) $0.32 3,368,321 Current income taxes $413,244 $89,594 Options (price/outstanding) $0.23 1,450,849 Net income $27,921 1 EBITDA $2,120,630 $424,105 $868,407 Fully Diluted 51,997,231 Net Debt (9-30-2020) $11,401,411 Adjusted EBITDA excludes non-cash and non-recurring items such as listing fees and acquisition costs. PREMIER HEALTH OF AMERICA CONFIDENTIAL - NOT FOR DISTRIBUTION 16#17SHORT TERM OBJECTIVES DEFINED SHORT TERM GROWTH PATH Acquisitions With the acquisition of Code Bleu Premier Health has reached a >25% Quebec market share. Now targeting acquisitions in other provinces, namely Ontario, Alberta and BC. Potential for targets active in remote regions where margins are higher. Potential for targets active in other verticals that can be easily integrated on the platform. Transport vertical Non-ambulatory medical transportation is a vertical being developed by Premier Health. Same addressable market, managed with existing platform without additional development. Permit has been granted and the company is currently generating revenues in beta mode. Currently engaged in multiple contract bidding processes. Organic Growth 100 days integration process and integration of Code Bleu to be completed by end of Q2. Short term Technology roll out aimed at streamlining and automating search and recruitment of resources. Actively participating in institutional call for tender. QUEBEC Generating revenues NUNAVUT Generating revenues N ONTARIO Recent contract win ALBERTA Recent contract win NZ PREMIER HEALTH OF AMERICA CONFIDENTIAL - NOT FOR DISTRIBUTION 17 MANITOBA Recent contract win#18RECENT ACQUISITION OF CODE BLEU MAJOR STEPPING STONE FOR PREMIER'S GROWTH PATH CODE BLEU One of the best industry actors in the province of Quebec employing nurses, caregivers, dental staff and other health-related personnel. For the year ending December 31, 2019, Code Bleu generated revenues of approximately C$29.3M, an EBITDA of C$3.9M and a net income of C$2.8M. TRANSACTION • • FORECAST • Transaction was completed on November 6, 2020 and will be consolidated with PHA starting in the first fiscal quarter ending December 31, 2020. Total consideration of C$17 million, comprised of a C$10M cash payment, a C$4.5M payment in Premier Health common shares at $0.69 per share, and a C$2.5M deferred consideration payable over 3 years and subject to performance objectives. Based on historical Code Bleu results PHA forecasts revenues of $52M and an EBITDA of $5.7M for FY2021. PREMIER HEALTH OF AMERICA CONFIDENTIAL - NOT FOR DISTRIBUTION 18#19+ COVID-19 IMPACT SHORT AND LONG-TERM IMPACT ON OUR BUSINESS DID YOU WASH YOUR HANDS? Washing your hands helps prevent the spread of viruses, bacteria, and carcinogens. Wash your hands after any contact with turnout gear, radios and other equipment, and both before and after using the bathroom. INCREASE IN DAILY DEMAND Demand for medical personnel has increased but resource availbility has not, widening the gap between demand and supply. SHORT TERM IMPACT Positive impact on revenue stability that is expected to continue post pandemic as local healthcare systems are reorganized. SPECIAL MEASURES Emphasis on automating recruitment. Integration of hiring protocols on the platform to conduct all hiring interviews online. LONG-TERM TREND Perception of outsourcing and healthtech solutions as an integral part of a wider and more robust healthcare ecosystem. PREMIER HEALTH OF AMERICA 0 Support CONFIDENTIAL - NOT FOR DISTRIBUTION 19#20PREMIER HEALTH OF AMERICA INVESTMENT RATIONALE LEVERAGING TECHNOLOGY MARKET TRACK RECORD • SCALABILITY ADAPTABILITY GROWTH VECTORS PROFITABILITY MANAGEMENT Growing market driven by aging population and increasing complexity of healthcare systems globally. Excellent operational track record and constant processes and management protocols improvement. Proven scalability and robustness of the company's PSWEB platform and mobile applications. Market and business segment agnostic platform that enables the development of a large number of verticals at marginal costs. Multiple growth vectors and roll-up opportunities that provide the company with important expansion potential. The company has been profitable since its inception and is growing its top and bottom lines at a fast pace.. Industry veterans and local expertise. CONFIDENTIAL - NOT FOR DISTRIBUTION 20#21PREMIER HEALTH CORPORATE INFORMATION MARTIN LEGAULT Chief Executive Officer [email protected] SYLVAIN CHARBONNEAU Chief Financial Officer [email protected] JEAN-ROBERT PRONOVOST VP Corporate Development [email protected] www.premierhealthgroup.ca TSXV: PHA HEAD OFFICE +1 800 231-9916 1114 Cure-Labelle Blvd., Suite 1 Blainville, Quebec J7C 2M9 TMX TMX TSX Venture Exchange BCF BUSINESS LAW Grant Thornton Download on the App Store GET IT ON Google Play Canada Québec H PREMIER HEALTH OF AMERICA CONFIDENTIAL - NOT FOR DISTRIBUTION 21 素

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