Slides
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Growing Together Q2 2025 Conference Call August 6, 2025 Cover Option
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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 forward- looking statements, including, without limitation, management’s expectations, intentions and beliefs concerning anticipated future events, results, circumstances, economic performance or expectations with respect to Extendicare Inc. (the “Company” or “Extendicare”), including, without limitation: statements regarding dividend levels, its business operations, business strategy, growth strategy, results of operations and financial condition, including anticipated timelines and costs in respect of development projects; statements relating to the agreements entered into with Closing the Gap Healthcare Group Inc. and certain affiliates (collectively, “Closing the Gap”), including anticipated synergies, and the agreements entered into with Revera Inc. and its affiliates (“collectively, Revera”), Axium LTC Limited Partnership and its affiliates (“collectively, Axium”) and two limited partnership joint ventures with Axium in respect of the acquisition, disposition, ownership, operation and redevelopment of LTC homes in Ontario and Manitoba; and statements relating to expected future current income taxes and maintenance capex impacting AFFO. Forward-looking statements can often be identified by the expressions “anticipate”, “believe”, “estimate”, “expect”, “intend”, “objective”, “plan”, “project”, “will”, “may”, “should” or other similar expressions or the negative thereof. These forward- looking statements reflect the Company’s current expectations regarding future results, performance or achievements and are based upon information currently available to the Company and on assumptions that the Company believes are reasonable. Actual results and developments may differ materially from results and developments discussed in the forward-looking statements, as they are subject to a number of risks and uncertainties. Although forward-looking statements are based upon estimates and assumptions that the Company believes are reasonable based upon information currently available, these statements are not representations or guarantees of future results, performance or achievements of the Company and are inherently subject to significant business, economic and competitive uncertainties and contingencies and involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of Extendicare to differ materially from those expressed or implied in the statements. For further information on the risks, uncertainties and assumptions that could cause Extendicare’s actual results to differ from current expectations, refer to “Risks and Uncertainties” and “Forward- looking Statements” in Extendicare’s Q2 2025 Management’s Discussion and Analysis and latest Annual Information Form filed by Extendicare with the securities regulatory authorities, available at www.sedarplus.ca and on Extendicare’s website at www.extendicare.com. Readers should not place undue reliance on such forward-looking statements and assumptions as management cannot provide assurance that actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. The forward-looking statements speak only as of the date of this presentation. Except as required by applicable securities laws, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 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 “payout ratio”, are non-GAAP measures and do not have standardized meanings prescribed by GAAP. See “Non-GAAP Measures” in Extendicare’s Q2 2025 MD&A. 2 Forward-looking statements and non-GAAP measures
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Q2 growth highlights Adjusted EBITDA excluding out-of-period items increased by 15.4% to $39.8 million 3 Operational highlights 10.9% YoY increase in home health care ADV 5.9% YoY increase in SGP customer base LTC Occupancy up 50 bps YoY to 98.3% AFFO/share (basic)(1) up 23.1% YoY to $0.29 Payout Ratio 45.9%(2) (1) Excluding the impact of out-of-period items, refer to slides 15 and 16 for details (2) Payout ratio based on trailing twelve months (TTM) ending June 30, 2025, adjusted for the impact of out of period items (refer to slides 15 and 16 for details) Financial highlights Adjusted EBITDA Q2 Q2 2025 2024 Reported $39.8M $38.6M +3.0% Excluding out-of-period items(1) $39.8M $34.5M +15.4% Adjusted Divisional NOI Margins(1) Q2 Q2 2025 2024 Home health care 13.5% 12.6% +90 bps Long-term care 11.6% 11.3% +30 bps Managed services 54.3% 56.1% -180 bps
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Acquired nine LTC homes from Revera Transaction closed June 1 • Cash consideration of $41.9M and assumption of certain liabilities of $27.4M • Adds 822 LTC and 574 private pay retirement beds to the LTC segment (1) • Adds 6 new LTC homes, ~1,100 beds to our development pipeline • Separately, on May 1, 2025, Revera completed the sale of 21 Class C LTC homes to a third party, terminating our management agreement • Net impact of the two transactions is expected to increase revenue and NOI by ~$109.3M and ~$6.8M, respectively or ~$0.02 AFFO/share(2) • Full benefit of the acquisition will be reflected in our Q3 results 4 (1) See slide 18 for details on the nine LTC homes acquired from Revera (2) Financial impact of the two Revera transactions is based on annualized revenue, NOI and AFFO derived from actual results for the nine months ended Sept. 30, 2024 Carlingview Manor (Ottawa) LTC redevelopment project (320 beds will replace 303 C beds)
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Acquired Closing the Gap Transaction closed July 1 • Cash consideration of $75.1M • Adds ~1.1M service hours annually (~3,109 ADV) in Ontario and Nova Scotia (~10% increase in our home health volumes) • Expected to add ~$84.2M and ~$9.8M in Revenue and NOI, respectively to home health segment or AFFO/share ~$0.06(1) • ~$1.1M in annualized cost synergies estimated within the first year following closing • Full quarter impact of the acquisition will be reflected in our Q3 results • Increased senior secured credit facility by $100M, maintaining $225M in liquidity to pursue further accretive growth opportunities 5 (1) Based on Closing the Gap’s 2024 financial performance, assuming purchase price paid in cash and excluding any impact of the earnout and estimated synergies
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Building for the future Completed the sale of three projects to Axium JV • Completed sale of 3 LTC projects to the Axium JV (London, Port Stanley and St. Catharines; 576 beds); generating $56.3M in net proceeds and $11.1M after-tax gain and recycling capital to fund new redevelopment projects • Six LTC homes under construction in the Axium JVs o 1,408 new beds will replace 1,097 Class C beds • Advancing 18 other redevelopment projects to replace remaining C homes when conditions are favourable • Subsequent to Q2, Ontario announced a New Long-Term Care Home Capital Funding Policy 6 Redevelopment projects # of beds # Class C beds replaced Expected opening Estimated development costs ($ millions) Peterborough 256 172 Q1-26 103.5 Carlingview Manor (Ottawa) 320 303 Q2-26 121.4 Orleans (Ottawa) 256 240 Q1-27 107.3 St. Catharines 256 152 Q1-27 106.4 Port Stanley 128 60 Q1-27 52.7 London 192 170 Q2-27 77.7 1,408 1,097 569.0
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Financial Review Q2 2025
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Consolidated results Q2 2025 • Out-of-period items recognized in Q2 2024(1) • LTC revenue and NOI of $4.1M (nil in 2025 vs $4.1M in 2024) • Q2 revenue up $35.0M; up $39.1M excluding out-of-period items, driven primarily by home health care volume growth and rate increases, partial quarter impact of 9-home LTC acquisition and LTC funding increases, partially offset by homes closed following redevelopment in Axium JV • Q2 NOI up $2.2M; up $6.3M excluding out-of-period items, reflecting revenue growth partially offset by higher operating costs across all segments • Q2 AFFO/basic share up $0.019, reflecting increased after-tax earnings, non-cash share-based compensation and reduced net interest costs, partially offset by higher maintenance capex • Excluding out-of-period items in the prior year, AFFO/basic share(1) improved by $0.055 to $0.293 per share 8 (1) Refer to slides 15 and 16 for details and the impact of out-of-period items Q2 2025 vs Q2 2024 Revenue NOI $383.4M +$35.0M $55.0M +$2.2M +10.0% +4.1% Adjusted EBITDA Net earnings $39.8M +$1.2M $31.9M +$6.0M +3.0% +23.3% AFFO/basic share Payout ratio $0.293 +$0.019 43% +6.9%
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Home health care Strong growth in volumes and Q4-24 rate increases driving higher NOI margins • Q2 revenue up $22.3M, reflecting 10.9% growth in ADV and rate increases • Q2 NOI up $4.3M, reflecting higher volume and rate increases, partially offset by higher wages and benefits • Q2 NOI margin of 13.5%(2); up 90 bps from 12.6% in Q2 2024, reflecting scalable technology platform driving efficiency gains in back-office support functions 9.8% 8.8% 8.3% 12.6% 11.3% 10.4% 10.3% 13.5% 20,000 22,000 24,000 26,000 28,000 30,000 32,000 34,000 36,000 0% 2% 4% 6% 8% 10% 12% 14% 16% Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 ADV and Adjusted NOI Margin %(1) ADV Adjusted NOI Margin (1) Adjusted NOI margins excluding out-of-period retroactive bill rate increases ($5.4M in Q4 2023, $13.6M in Q1 2024, $4.4M in Q4 2024, $11.0M in Q1 2025), and one-time retroactive compensation costs ($13.6M in Q1 2024, $11.0M in Q1 2025) (2) Refer to slides 15 and 16 for details and the impact of out-of-period items 9 Revenue Q2 2025 $158.6M +16.4% YTD 2025 $316.9M +13.2% NOI Q2 2025 $21.4M +25.1% margin 13.5% +90 bps YTD 2025 $40.5M +45.2% margin 12.8% +280 bps Average daily volume ("ADV") Q2 2025 33,310 +10.9% YTD 2025 32,461 +10.0%
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Long-term care Growth fueled by funding increases and the impact of the LTC acquisition • Out-of-period items recognized in Q2 2024(2) • Revenue and NOI of $4.1M (nil in 2025 vs $4.1M in 2024) • Q2 revenue up $12.9M; up $17.1M excluding out-of-period funding, reflecting partial quarter impact of the 9-home LTC acquisition (+$10.2M), funding increases and improved occupancy, partially offset by the closure of two Class C LTC homes (-$7.7M) replaced by new homes in the Axium JV • Q2 NOI down $1.7M; up $2.5M to $23.9M(2) excluding out- of-period items, reflecting the 9-home LTC acquisition (+$1.3M), funding increases, timing of spend and improved preferred occupancy, partially offset by higher operating costs and the closure of two Class C LTC homes (-$0.9M) • Q2 adjusted NOI margin(2) of 11.6%; up 30 bps from 11.3% in Q2 2024 10 (1) Adjusted NOI margins exclude workers’ compensation rebates of $2.7M in Q1 2025, and out-of-period funding ($9.8M in Q1 2024, $4.1M in Q2 2024, $1.8M in Q3 2024 and $1.9M in Q4 2024) (2) Refer to slides 15 and 16 for details and the impact of out-of-period items 8.7% 8.5% 7.9% 11.3% 11.4% 10.0% 9.4% 11.6% 5% 10% 15% Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 NOI Margin % (1) As reported Adjusted to remove out of period items Revenue Q2 2025 $207.1M +6.7% YTD 2025 $404.9M +1.1% NOI Q2 2025 $23.9M -6.5% margin 11.6% -160 bps YTD 2025 $45.1M -11.4% margin 11.1% -160 bps Average occupancy Q2 2025 98.3% +50 bps YTD 2025 97.9% +30 bps
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Revenue Q2 2025 $17.7M -1.6% YTD 2025 $36.3M +3.7% NOI Q2 2025 $9.6M -4.7% margin 54.3% -180 bps YTD 2025 $19.6M +4.4% margin 53.9% +40 bps Management contract beds Third party 2,351 -36.2% Joint venture 3,886 SGP 3rd party & joint venture beds Beds 149,295 +5.9% 75,000 100,000 125,000 150,000 175,000 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 SGP (3rd party and JV beds) Managed services Extendicare Assist and SGP 5.9% organic growth in SGP client base offset by Revera sale of Class C LTC homes managed by Assist • Q2 revenue down $0.3M largely driven by Revera’s sale of its 30 Class C LTC homes (9 to Extendicare, 21 to a third party), partially offset by organic growth in SGP clients and management fees from newly opened homes in the JV • Q2 NOI down $0.5M on decline in revenue and higher costs to support business development and change in mix of Assist consulting and other services; NOI margins remain within the expected 50-55% range • Q2 SGP beds up 5.9% from Q2 2024 11
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Strong liquidity and credit metrics Increased credit facility replenishes liquidity following acquisitions maintaining flexibility to pursue growth opportunities (1) Cash on hand excludes restricted cash of $75.1M held in trust in connection with the acquisition of Closing the Gap on July 1, 2025. (2) Includes current portion; excludes deferred financing costs (3) Includes the impact of 15% share of Axium JV and Axium JV II long-term debt outstanding as at June 30, 2025 and TTM EBITDA and net interest expense of the joint ventures, as applicable (4) Debt maturities exclude 15% share of Axium JV and Axium JV II long-term debt (5) The delayed draw term loan can be extended with one-year extensions, subject to certain conditions; amortization of delayed draw term loan is 5% per annum As at June 30, 2025 Cash(1) Available Revolving Facility Long-term debt(2) Long-term debt(2) (including 15% JV share(3)) $73M $152M $288M $382M 3.1x 4.0x 4.2x 5.3x 6.1x 6.5x 7.1x 7.4x 35.7% 35.6% 34.1% 33.9% 33.0% 32.1% 31.7% 30.4% Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Debt Metrics(3) TTM interest coverage Debt/GBV 12 • $100M increase in senior secured credit facility, bringing the total facility to $375M • Revolving facility increased by $45M to $190M • Delayed draw term loan increased by $55M to $185M • $75.1M cash acquisition of Closing the Gap, utilizing restricted cash held in trust at June 30(1) • Utilized $55M under the delayed draw term loan to partially fund the Closing the Gap acquisition, adding to cash on hand Debt maturities(4)(5) ($ millions) 43.2 20.0 4.2 8.6 7.1 6.8 7.1 50.6 1.4 2.8 2.4 1.7 1.5 5.6 3.2 6.5 115.4 2025 2026 2027 2028 2029 Thereafter Mortgage/loan principal at maturity Mortgage amortization Lease liabilities Delayed draw term loan Senior Secured Credit Facility Increased to $375M; utilized $55M in July 2025
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2x 3x (1) Source: A portrait of Canada’s growing population aged 85 and older from the 2021 Census (2) As of September 2024, per Ontario Ministry of Long-Term Care (3) The Conference Board of Canada; Sizing Up the Challenge; Meeting the Demand for Long-Term Care, November 2017 Meeting the needs of a growing demographic Compelling growth opportunities in long-term care and home health care 0.86 1.65 2.79 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2006 2011 2016 2021 2026 2031 2036 2041 2046 2051 Observed Projected (millions) The number of Canadians aged 85+ will double by 2036 and triple by 2051 Canadian Population 85+ 13 Building new LTC homes to address the rising demand for long-term care • Seniors aged 85+ increasing at ~4% per year(1) • LTC waitlist of more than 48,000(2) in Ontario • Need for >200,000 new LTC beds in Canada by 2035(3) Enhancing home health services delivery to ease system strain • ParaMed’s care volumes grew by more than 10% in 2024 vs 2023; and up 10% YTD 2025 vs 2024 • Volumes outpacing population growth to bridge LTC gaps
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Appendix
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Adjustments to revenue, EBITDA and AFFO Three and six months ended June 30, 2025 • Q2 2024 results impacted by out-of-period LTC funding of $4.1M • YTD 2025 results impacted by out-of-period funding and costs, and workers compensation rebates recognized in Q1 2025 o Home health care recognized $11.0M of retroactive funding and offsetting one-time costs in Q1 2025 in connection with the 4% rate increase announced in Q4 2024 o LTC and home health care recognized workers’ compensation rebates in Q1 2025 of $2.7M and $3.9M, respectively • YTD 2024 results impacted by out-of-period funding and costs o LTC recognized out-of-period funding of $13.9M o Home health care recognized $13.6M of retroactive funding and offsetting one-time costs in Q1 2024 in connection with the 6.7% rate increase announced in Q4 2023 15 (1) Reflects impact of out-of-period LTC and home health care items Impact of out-of-period items on Revenue, Adjusted EBITDA and AFFO/basic share(1) Q2 Q2 Impact on: 2025 2024 Change Revenue Long-term care ‒ $4.1M $(4.1)M Home health care ‒ ‒ ‒ Adjusted EBITDA Long-term care ‒ $4.1M $(4.1)M Home health care ‒ ‒ ‒ AFFO/Basic Share ‒ $0.036 $(0.036) YTD YTD Impact on: 2025 2024 Change Revenue Long-term care ‒ $13.9M $(13.9)M Home health care $11.0M $13.6M $(2.6)M Adjusted EBITDA Long-term care $2.7M $13.9M $(11.2)M Home health care $3.9M ‒ $3.9M AFFO/Basic Share $0.057 $0.130 $(0.073)
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Adjusted NOI by division(1) Three and six months ended June 30, 2025 16 (1) Excludes the impact of the following adjustments: for the LTC segment, the impact of workers’ compensation rebates of $2.7M in Q1 2025 and out-of-period funding of $13.9M YTDQ2 2024 ($9.8M in Q1 2024 and $4.1M in Q2 2024); for the home health care segment, the impact of retroactive funding and offsetting one-time costs of $11.0M in YTDQ2 2025 (all in Q1) and $13.6M in YTDQ2 2024 (all in Q1); and workers’ compensation rebates of $3.9M in YTDQ2 2025 (all in Q1) Long-term care NOI and margin(1) Q2 Q2 Change YTD YTD Change2025 2024 2025 2024 $23.9M $21.5M +11.4% $42.4M $37.0M +14.7% 11.6% 11.3% +30 bps 10.5% 9.6% +90 bps Average occupancy 98.3% 97.8% +50 bps 97.9% 97.6% +30 bps Home health care NOI and margin(1) Q2 Q2 Change YTD YTD Change2025 2024 2025 2024 $21.4M $17.1M +25.1% $36.6M $27.9M +31.3% 13.5% 12.6% 90 bps 12.0% 10.5% 150 bps Average daily volume 33,310 30,027 +10.9% 32,461 29,517 +10.0% Managed services NOI and margin Q2 Q2 Change YTD YTD Change2025 2024 2025 2024 $9.6M $10.1M -4.7% $19.6M $18.7M 4.4% 54.3% 56.1% -180 bps 53.9% 53.5% 40 bps SGP 3rd party & joint venture beds at period end 149,295 140,937 5.9%
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34.8% 20.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Managed services $39.8M Services-focused growth Services represented ~55% of TTM Q2 2025 adjusted NOI 17 59 Long-term care homes owned Direct care for seniors Home health care hours delivered (TTM) 11.5M Home health careLong-term care Managed services 40 Homes under contract Management & consulting Third-party & JV beds served 149K Group purchasing NOI contribution by segment(1) Geographically diversified operations(2) (1) TTM Q2 2025 adjusted NOI excludes out-of-period items of $10.2M (LTC of $4.1M and home health care of $6.1M) (2) Figures as at June 30, 2025 (3) Represents 40 homes, including 28 operational LTC homes owned in the joint ventures with Axium in which the Company has a 15% managed interest Province ON AB MB BC QC Other Total LTC homes owned – beds 39 5,660 14 1,514 6 973 - - - - - - 59 8,147 Home health care hours delivered (TTM 000’s) 10,810 405 - - - 285 11,500 Assist and JV beds under management contract (3) 5,259 - 978 - - - 6,237 SGP 3rd party & JV beds served 56,601 19,391 2,140 30,321 35,145 5,697 149,295 Less capital-intensive, higher margin business model to expand managed services, build new LTC homes through JV partnerships with Axium and drive growth in home health care Positioned for GROWTH 45.2% TTM Q2 2025 Adjusted NOI(1) $198.9M Home health care $69.3M Long-term care $89.9M
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Nine LTC homes acquired from Revera June 1, 2025 18 Home Name Address LTC Beds(1) Retirement Beds Blenheim Community Village Blenheim, ON 57 30 Brierwood Gardens Brantford, ON 67 71 Riverbend Place Cambridge, ON 39 92 Summit Place Owen Sound, ON 99 77 Telfer Place Paris, ON 35 180 Village on the Ridge Ridgetown, ON 30 65 Trillium Court Kincardine, ON 34 59 Carlingview Manor(2) Ottawa, ON 250 - Poseidon Winnipeg, MB 211 - Total Beds 822 574 (1) LTC Beds excludes 133 3rd and 4th ward-style beds that have been taken out of service per regulatory requirements that are eligible to be reinstated upon redevelopment (2) Carlingview Manor is in the process of being redeveloped into a new 320-bed LTC home that is owned by the Axium JV