2. Forward-Looking Statements – Safe Harbor
Forward-Looking Statements – Safe Harbor
Certain statements in these materials and the associated presentation may constitute forward -looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward -
looking statements are subject to various risks and uncertainties and include all statements that are not
historical statements of fact and those regarding our intent, belief or expectations, including, but not
limited to, statements relating to our strategy, our operational, sales, marketing and branding, and
growth initiatives and our expectations regarding their effect on our results; and our expectations
regarding the economy, the senior living industry, senior housing construction, supply and competition,
occupancy and pricing and the demand for senior housing. These forward-looking statements are based
on certain assumptions and expectations, and our ability to predict results or the actual effect of future
plans or strategies is inherently uncertain. Although we believe that expectations reflected in any
forward-looking statements are based on reasonable assumptions, we can give no assurance that our
expectations will be attained and actual results and performance could differ materially from those
projected. Factors which could have a material adverse effect on our operations and future prospects or
which could cause events or circumstances to differ from the forward-looking statements include, but
are not limited to, events which adversely affect the ability of seniors to afford our monthly resident
fees or entrance fees; the conditions of housing markets in certain geographic areas; our ability to
effectively manage our growth; our ability to maintain consistent quality control; a decrease in the
overall demand for senior housing; our vulnerability to economic downturns; acts of nature in certain
geographic areas; as well as other risks detailed from time to time in our filings with the Securities and
Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
When considering forward-looking statements, you should keep in mind the risk factors and other
cautionary statements in such SEC filings. Readers are cautioned not to place undue reliance on any of
these forward-looking statements, which reflect our management's views as of the date of these
materials and associated presentation. We cannot guarantee future results, levels of activity,
performance or achievements, and we expressly disclaim any obligation to release publicl y any updates
or revisions to any of these forward-looking statements to reflect any change in our expectations with
regard thereto or change in events, conditions or circumstances on which any statement is based.
3. Brookdale: Premier Senior Housing Provider
(1)
(2)
(3)
(4)
For the year ended December 31, 2016
Based on Resident fees for the full year of 2016.
As of June 30, 2017
Source: ASHA 50 2016
Most
diversified
service
continuum and
broad
geographic
footprint
2/3 of the
U.S. senior
population
lives within 10
miles of a
Brookdale
community
Most
recognized
brand name
in the
industry
#1 Assisted
Living and
Memory Care
position in
~60% of top 99
markets
~45%+ of all
communities
over 90%
weighted
average unit
occupancy (1)
(3)
(4)
Over 80%
Private Pay (2)
5. Tremendous Demographic Tailwinds
Senior population aged 75+ with incomes over
$50k/year
$55 billion and growing
senior living market
Sources: U.S. Census Bureau, ESRI; Genworth 2014 Cost of Care Survey, Federal Reserve Survey of Consumer Finances
To replicate our services, it would cost 40%
more for in-home care
By 2030, one in five U.S. residents will be 65
and older
40% of those aged 85 and older need help with
three or more activities of daily living
Seniors living longer and requiring increased
care and support
Increasing need for senior living
$55 billion
and growing senior living market
Senior population growing rapidly
Seniors must increasingly look outside the
family for care and assistance
6. Broad Geographic Footprint (1)
46
states
(1) As of June 30, 2017.
1,039
communities
102,000+
resident capacity
Note: Each blue dot represents a zip code in which Brookdale has at least one community.
7. Creating Balance While Managing Scale
Standardize
Nationally
Customize
Locally
My Mission:
“Make it better to live with
and work for Brookdale”
8. Focal Areas for Growth
Operational
Effectiveness1
Associate
Engagement
Customer
Experience
2
3
Leverage the power of knowledge and reach to
fuel operating plan & differentiation strategy
Shrink the distance between headquarters and
communities/service to empower accountability
Deliver a consistent and differentiated customer
and associate experience
Simplify Prioritize Execute
Brookdale offers the most comprehensive health-care offering in our industry (Senior Living)
Over 60% of the population in the US lives within 10 miles of a community
Most recognized brand, but not nearly recognized enough from my POV
Particular expertise in AL/MC
Nearly ½ of our communities are over 90% occupied
No one comes close to our size, but size isn’t a differentiator in the eyes of our residents/potential residents
We are a big part of the Healthcare Ecosystem, but as of today we are over 80% Private Pay
In 2016, 16% of the US population over 75 lived within 20 miles of a BKD community, representing more than 13.8 million people
In 2021, 19% of the US population over 75 will live within 20 miles of a BKD community, representing over 16 million people
Senior Living offers a significant marketplace – over $55B
Demographics are certainly on our side, as there will be a 31% increase in the # of seniors over the age of 75, with relevant income, over the next 5 years – growing to nearly 3.7MM people by 2021. By 2030, predicted that 1 in 5 US residents will be 65 and older
This leads to an obvious increase in the demand for Senior Living.
1. Seniors living longer, require more care
2. 40% of those 85 yrs or older need help with 3 or more activities daily
3. Given demands on families, and mobility of lifestyles, Seniors must look beyond their family for care
4. To replicate our in-community services, it would cost 40% for in-home care
Brookdale footprint matches largely the population distribution across the US.
High overlap of community and health service capabilities
The challenge in a company of our magnitude is to revolutionize and industry, while balancing scale with local demand
Continual Improvement in the customer engagement process
Leverage the link of services and communities to drive new areas of growth
Elevate the use of technology to simplify the experience