INVESTOR PRESENTATION JUNE 2019 February 17, 2017
IMPORTANT PRESENTATION INFORMATION 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. � 2 February 17, 2017
IMPORTANT PRESENTATION INFORMATION 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. � 3 February 17, 2017
CURRENT STATE OF AMERICAN ADDICTION CENTERS � 4 February 17, 2017
AAC: AT A GLANCE > AAC Holdings, Inc. (“AAC”) is the parent of American Addiction Centers, Inc. • Operates 9 inpatient alcohol and drug addiction treatment facilities in California, Florida, Massachusetts, Mississippi, Nevada, New Jersey, Rhode Island, and Texas • Operates 15 standalone outpatient centers in Florida, Massachusetts, Mississippi, New Jersey, Rhode Island, and Texas • Operates 4 sober living facilities in Florida, Mississippi, Nevada, and Texas • Over 1,400 detoxification, inpatient and sober living beds • Approximately 40% compounded annual growth rate in top-line revenue since 2011 • Owns and operates an industry-leading laboratory providing toxicology, clinical diagnostic, and genomics services • Invested management and Board • Headquartered in Brentwood, Tennessee AAC IS A LEADING PROVIDER OF INPATIENT DRUG AND ALCOHOL ADDICTION TREATMENT SERVICES IN THE BEHAVIORAL HEALTH SECTOR � 5
GEOGRAPHIC FOOTPRINT CSRI Sunrise House Desert Hope Headquarters Addiction Labs Laguna Treatment Hospital Oxford Greenhouse River Oaks Inpatient Facility Recovery First Outpatient Facility Sober Living Beds Laboratory Corporate Headquarters � 6
FACILITY OVERVIEW Facility Beds State Levels of Care Property River Oaks 162 FL DTX, RTC, PHP, IOP Owned Desert Hope 148 NV DTX, RTC, PHP, IOP Owned Greenhouse 130 TX DTX, RTC, PHP, IOP Owned Inpatient/Residential 124 DTX, RTC, PHP, IOP Owned Oxford Treatment Center MS Sunrise House 110 NJ DTX, RTC, PHP, IOP Owned 93 DTX, RTC, PHP, IOP Owned Laguna Treatment Hospital CA Recovery First 56 FL DTX, RTC, PHP, IOP Owned/Leased 114 DTX, RTC, PHP Owned AdCare - Worcester MA AdCare - North Kingstown 59 RI DTX, RTC Owned 996 Total Residential Las Vegas Sober Living 159 NV Sober Living Leased Sober Living Recovery First - Ft. Lauderdale East 83 FL Sober Living Leased 157 Sober Living Leased Arlington Sober Living TX Oxford Sober Living 48 MS Sober Living Owned 447 Total Sober Living Total 1,443 DTX: Detoxification; RTC: Residential Treatment; PHP: Partial Hospitalization; IOP: Intensive Outpatient. � 7
TIMELINE OF AAC’S SUCCESS • AAC’s strong organic track record and disciplined approach to de novos and acquisitions have driven exceptional growth • Significant capacity in AAC network from completed investments • Ability to scale census with limited incremental overhead $296 $292 $241 2011 – 2018 Revenue* CAGR: 40% $170 $122 $105 $63 $27 2011 2012 2013 2014 2015 2016 2017 2018 Bed count 124 338 431 493 897 1,342 1,348 1,551 * AAC adopted ASU 2014-09, “Revenue from Contract with Customers” (“Topic 606”) on January 1, 2018 which resulted in adjustments related to bad debt being recorded as a direct reduction to revenue as opposed to the provision for doubtful accounts. As such, for comparability purposes, revenue for periods prior to January 1, 2018 throughout this presentation represent revenues less the applicable provision for doubtful accounts. � 8
WHY INVEST IN AAC TODAY Compelling valuation Heightened focus on near term revenue opportunities and operational efficiencies to unlock value Attractive assets (including addiction and behavioral websites generating 10 million unique visitors per month), best in class diagnostic testing services, and an attractive real estate portfolio Flexible and scalable business Proven approach to best-in-class clinical care, with Outcomes Study showing 63% of patients abstinent within 12 months (comparative national benchmark is 30%) Experienced and invested management team � 9
RECENT OPERATIONAL HIGHLIGHTS > Positive momentum for 2019 • Inpatient occupancy improving from 69% at December 31, 2018 to 80% at May 31, 2019 > Commenced process to generate additional value from assets • Commenced a process to generate additional value from the assets including the real estate portfolio with the goal to create additional liquidity, lower cost of capital, and enhance shareholder value > Increased financial flexibility and liquidity • Closed $30 million incremental term loan that provided additional liquidity in March 2019 . Amended existing secured credit facility to, among other items, provide increased flexibility with respect to certain financial covenants > Significant steps taken to reduce expenses • Q4 2018 and Q1 2019 Cost Savings Initiatives Expected to Result in Over $30 Million of Net Annualized Cost Savings and leading to a 20% decrease in operating costs sequentially • Reductions in corporate expenses, consolidation of the Las Vegas market, consolidation of the southern California market, the sale of the New Orleans operations, and the consolidation of lab operations > Unveiled 2030 strategic plan • Transforming the business in the long-term to unlock additional value � 10
NEAR-TERM FOCUS Continued focus on current operations Improve the balance sheet New revenue streams � 11 February 17, 2017
CONTINUED FOCUS ON CURRENT OPERATIONS Average Daily Inpatient Census (ADC) New Inpatient Admissions 786 4,787 4,641 745 740 4,184 Q4 2018 Q1 2019 Q2 2019* Q4 2018 Q1 2019 Q2 2019* Average Effective Inpatient Bed Utilization 80% 75% 69% Q4 2018 Q1 2019 Q2 2019* * New admissions for Q2 2019 is a projected run based on actual admissions through May 31, 2019. Average Daily Census and Average Effective Inpatient Bed Utilization for Q2 2019 are based on actual results through May 31, 2019. � 12 February 17, 2017
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