INVESTOR PRESENTATION Q1 2020
CAUTIONARY STATEMENTS This presentation contains forward-looking information that reflects the current expectations, estimates and projections of management about the future performance and opportunities for Chartwell and the seniors housing industry. The words “plans,” “expects,” “scheduled,” “estimates,” “intends,” “anticipates,” “projects,” “believes” or variations of such words and phrases or statements to the effect that certain actions, events or results “may,” “will,” “could,” “might” occur and other similar expressions, identify forward -looking statements. Forward- looking statements are based upon a number of assumptions and are subject to a number of known and unknown risks and uncertainties, many of which are beyond our control, and that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking statements. While we anticipate that subsequent events and developments may cause our views to change, we do not intend to update this forward-looking information, except as required by applicable securities laws. This forward-looking information represents our views as of the date of this presentation and such information should not be relied upon as representing our views as of any date subsequent to the date of this document. There can be no assurance that forward-looking information will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking information. We have attempted to identify important factors that could cause actual results, performance or achievements to vary from those current expectations or estimates expressed or implied by the forward-looking information. However, there may be other factors that cause results, performance or achievements not to be as expected or estimated and that could cause actual results, performance or achievements to differ materially from current expectations. These factors are more fully described in the “Forward -Looking Information and COVID- 19 Risks” sections in Chartwell’s Q1 2020 MD&A, the "Risks and Uncertainties" section in Chartwell's 2019 MD&A, and in materials filed with the securities regulatory authorities in Canada from time to time, including but not limited to our most recent Annual Information Form. In this presentation we use a number of performance measures that are not defined in generally accepted accounting principles (“GAAP”) such as Net Operating Income (“NOI”), Funds from Operations (“FFO”), Internal Funds from Operations (“IFFO”), “Adjusted Resident Revenue”, “Adjusted EBITDA”, “Net Debt to Adjusted EBITDA Ratio”, “Debt to Gross Book Value”, “Liquidity”, “Imputed Cost of Debt”, “Lease -up- Losses”, “Adjusted Development Costs”, “Unlevered Yield”, “Stabilized NOI” “Adjusted NOI”, and any related per unit amounts to measure, compare and explain the operating results and financial performance of the Trust (collectively, the “Non - GAAP Financial Measures”). These Non -GAAP Financial Measures do not have standardized meanings prescribed by GAAP and, therefore, may not be comparable to similar measures used by other issuers. The Real Property Association of Canada (“REALPAC”) issued white papers with recommendations for calculations of FFO, Adjusted Funds from Operations (“AFFO”), and Adjusted Cash Flow from Operations (“ACFO”) (the “REALPAC Guidance”). Our FFO definition is substantially consistent with the definition adopted by REALPAC. Please refer to the “Additional Information on Non -GAAP Financial Measures” section of our Q1 2020 MD&A for details. In this document we use various financial metrics and ratios in our disclosure of financial covenants such as “Interest Coverage Ratio”, “Unencumbered Property Asset Value”. These metrics are calculated in accordance with the definitions contained in our credit agreements and the trust indenture governing our outstanding debentures, and may be described using terms which differ from standardized meanings prescribed by GAAP. These metrics may not be comparable to similar metrics used by other issuers. Please refer to the “Liquidity and Capital Resources – Financial Covenants” section of our Q1 2020 MD&A for details. 1
CHARTWELL AT A GLANCE Member of S&P/TSX Largest Canadian Significant Composite Index Owner/Operator Employer since 2005 $2.0 Billion (1) 208 / 31,074 (2) ~15,000 Employees Market Capitalization Communities / Suites & Beds Revenue Adjusted EBITDA High Occupancy Rates $1.0 Billion (3) $301.8 Million (3) 89.4% (4) Net Debt to Debt to Gross Book Interest Coverage Ratio Adjusted EBITDA Value 3.2 (3) 8.4 (3) 52.3% (1) Trust Unit price $8.95 at March 31, 2020. Includes development properties and Batimo Inc. (“Batimo”) development properties under management as at March 31, 2020. (2) (3) Rolling twelve months ended March 31, 2020 including proforma adjustments. (4) Same property portfolio for the quarter ended March 31, 2020. 2
WHY CHARTWELL? 1. Exceptional corporate culture and governance 2. Winning customer focused business strategy 3. Unmatched execution capability through national operating platform 4. Significant industry long-term growth potential Demographic trends = more demand Government fiscal constraints = more private pay demand Fragmented industry = consolidation opportunities 5. Solid financial position and investment grade credit 3
WHAT’S OUR WHY 4
PROFILE – STRONG GOVERNANCE Globe and Mail Board Games 2019 - Ranked #3 in the Country (Top Real Estate and Healthcare Company) Tenure on Chartwell’s Board Members Relevant Experience Board Senior business advisor at Fasken Martineau Du Moulin LLP Michael D. Director of Canaccord Genuity Group Inc., Colliers International Harris 1,4 16 Group Inc., Route 1 Inc. (Chair) Former Premier of Ontario Director of Laurentian Bank of Canada Lise Director of Otéra Capital Bastarache 1,2,3 15 Former RBC Executive Director of Women’s College Hospital Foundation Ann Davis 1,2,3 Director of Canada Guaranty Mortgage Insurance Company, 3 (Chair, Audit Canadian Investor Protection Fund Former partner of KPMG Committee) Andre Executive in Residence and former Executive Director, Brookfield Kuzmicki 1,3 Centre in Real Estate and Infrastructure, Schulich School of (Chair, 15 Business – York University Investment Director of Dorsay Development Corporation Committee) Jamie Former Chief Legal Officer at Hydro One Inc. Scarlett 1,4 1 Former Senior Partner of Torys LLP Trustee RioCan REIT Sharon Director, Home Capital Group Inc. and AIMCO 10 Sallows 1,3,4 Former principal at Ryegate Capital Corporation Huw Director of Dollarama Thomas 1,2,4 8 Former CEO of SmartCentres REIT (Chair, CG&N Committee) Former President & CEO of Chartwell Retirement Residences W. Brent Past President of the Ontario Long Term Care Association and a 16 Binions 3 past Vice President of the Ontario Residential Care Association See management team page Vlad Volodarski New 1 Independent 2 Member of the Audit Committee 3 Member of the Investment Committee 4 Member of the Compensation, Governance and Nominating Committee (“CG&N”) 5
PROFILE - EXPERIENCED EXECUTIVE TEAM Over 75 years of collective industry experience Tenure Industry Name & Title Past Experience with Experience Chartwell Prior to joining Chartwell, was a Senior 16 16 Vlad Volodarski Manager with KPMG LLP Chief Executive Officer 1 Prior to joining Chartwell, held 12 33 Karen Sullivan progressive positions over a 21 year President & Chief career at the Ontario Long Term Care Operating Officer Association, including six years as their Executive Director Prior to joining Chartwell, held various 13 20 Sheri Harris positions at Retirement Residences Chief Financial REIT including Senior Vice President of Officer Finance and Director of Corporate Accounting Jonathan M. Prior to joining Chartwell, practiced 12 12 Boulakia corporate and securities law at Torys Chief Investment LLP Officer & Chief Legal Officer 1 Also on the Board of Directors. 6
BUSINESS STRATEGY In 2023, we will achieve in our retirement residences, Employee Engagement of 55% (highly engaged), Resident Satisfaction of 67% (very satisfied) and Same Property Occupancy of 95% to drive strong IFFOPU growth by providing exceptional resident experiences through personalized services in our upscale and mid-market residences in urban and suburban locations. 7
COVID-19 RESPONSE Leveraging National Operating Platform: • Critical Incident Command • Over 800 documents with direction and support • 24/7 Hotline providing support to our homes • National recruitment campaign >10,000 applications • Daily communications with homes • Weekly education/webinars for homes • Scenario and contingency planning and training • Media relations support • Personal protective equipment – sourced nearly 3 million pieces of PPE investing close to $4 million 8
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