Q3 2019 Investor Presentation CAUTIONARY STATEMENTS This - PDF document

Q3 2019 Investor Presentation

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. 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. 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. See the "Risks and Uncertainties" section in our 2018 MD&A and risk factors highlighted 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 document 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”), IFFO per unit (“IFFOPU”), “Adjusted Resident Revenue”, “Adjusted EBITDA”, “Net Debt to Adjusted EBITDA Ratio”, “Debt to Capitalization”, “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 Q3 2019 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”, “Indebtedness Percentage”, “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 Q3 2019 MD&A for details. 2

CHARTWELL AT A GLANCE Significant Member of S&P/TSX Largest Canadian Employer Composite Index since Owner/Operator 2005 $3.2 Billion (1) 209 / 31,030 (2) ~15,000 Market Capitalization Communities / Suites & Beds Employees Revenue Adjusted EBITDA High Occupancy Rates $987.1 Million (3) $290.1 Million (3) 89.6% (4) Net Debt to Debt to Interest Coverage Ratio Adjusted EBITDA Capitalization 3.2 (3) 8.1 (3) 42.4% (1) (1) Trust Unit price $14.72 at September 30, 2019. Includes development properties and Batimo Inc. (“Batimo”) development properties under management as at September 30, 2019. (2) (3) Rolling twelve months ended September 30, 2019. (4) Same property portfolio for the quarter ended September 30, 2019. 3

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 4

WHAT’S OUR WHY 5

CORPORATE SOCIAL RESPONSIBILITY Our CSR program benchmarks commitments and progress in five key areas: Resident Experience Employee Engagement Corporate Governance Community Investment Environmental Stewardship 6

PROFILE – STRONG GOVERNANCE Globe and Mail Board Games 2018 - Ranked #7 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 15 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 14  Former RBC Executive Ann  Director of Women’s College Hospital Foundation Davis 1,2,3  Director of Canada Guaranty Mortgage Insurance Company, (Chair, Audit 2 Canadian Investor Protection Fund Committee)  Former partner of KPMG Andre  Director of Dorsay Development Corporation Kuzmicki 1,3  Former Executive Director of the Brookfield Centre in Real (Chair, 14 Investment Estate, Schulich School of Business, York University Committee) Jamie  Former Chief Legal Officer at Hydro One Inc. Scarlett 1,4,5 New  Former Senior Partner of Torys LLP  Trustee RioCan REIT Sharon  Director, Home Capital Group Inc. and AIMCO 9 Sallows 1,3,4  Former principal at Ryegate Capital Corporation Huw  Director of Dollarama Thomas 1,2,4 7  Former CEO of SmartCentres REIT (Chair, CG&N Committee)  See management team page W. Brent Binions 15 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 Elected to Chartwell’s Board on May 16, 2019 7

PROFILE - EXPERIENCED EXECUTIVE TEAM 100 years of collective industry experience Tenure Industry Name & Title Past Experience with Experience Chartwell  Past President of the Ontario Long Term 15 37 W. Brent Binions 1 Care Association and a past Vice President President and Chief of the Ontario Residential Care Association Executive Officer  Prior to joining Chartwell, was a Senior 15 15 Vlad Volodarski Manager with KPMG LLP Chief Financial Officer & Chief Investment Officer  Prior to joining Chartwell, held progressive 11 32 Karen Sullivan positions over a 21 year career at the Chief Operating Ontario Long Term Care Association, Officer including six years as their Executive Director  Prior to joining Chartwell, held various 12 19 Sheri Harris positions at Retirement Residences REIT Chief including Senior Vice President of Finance Administrative and Director of Corporate Accounting Officer  Prior to joining Chartwell, practiced 11 11 Jonathan M. corporate and securities law at Torys LLP Boulakia Chief Legal Officer 1 Also on the Board of Directors. Only non-independent board member. 8

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. 9

BUSINESS STRATEGY BUSINESS STRATEGY Employee Engagement Highly Engaged 60% 55% 48% 47% 50% 41% 40% 40% 30% 20% 10% 0% 2016 2017 2018 2019 2023 Target Resident Satisfaction Very Satisfied 67% 70% 63% 58% 60% 53% 51% 50% 40% 30% 20% 10% 0% 2016 2017 2018 2019 2023 Target Retirement Same Property Occupancy (1) 95.0% 100.0% 92.6% 91.9% 90.5% 80.0% 60.0% 40.0% 20.0% 0.0% 2016 2017 2018 2023 Target (1) Same property Retirement Operations, as defined in each year. 10

BUSINESS STRATEGY Exceptional Resident Experience through Personalized Services 11