2. Forward-Looking Information
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This presentation contains forward-looking information (within the meaning of applicable securities laws) relating to the
business of Nobilis Health Corp. (the "Company") and the environment in which it operates. Forward-looking information
may include statements regarding the objectives, business strategies to achieve those objectives, expected financial
results, economic or market conditions, and the outlook of or involving the Company and its business. Such forward
looking information or statements are typically identified by words such as "believe", "anticipate", "expect", "intend",
"plan", "will", "may" and other similar expressions.
Forward-looking information, including any financial outlooks, is provided for the purpose of providing information about
management's expectations and plans about the future and may not be appropriate for other purposes. Forward-looking
information herein is based on various assumptions and expectations that the Company believes are reasonable in the
circumstances. No assurance can be given that these assumptions and expectations will prove to be correct and the
forward-looking information, including the financial outlooks included in this Presentation, should not be unduly relied
upon. Those assumptions and expectations are based on information currently available to the Company, including the
historic performance of the Company's business. Such assumptions include anticipated financial performance, current
business and economic trends, and business prospects and are subject to the risks and uncertainties which are discussed
in the Company's regulatory filings available on the Company's web site at www.NobilisHealth.com, www.sedar.com or at
www.sec.gov. Any forward-looking statements that we make are based on assumptions as of today, and we undertake no
obligation to update them.
The Company’s management has approved the financial outlooks contained in this presentation.
4. Company Profile
o Own, operate and manage ambulatory surgical centers (ASCs), surgical
hospitals and clinics
• 4 Surgical Hospitals, 10 ASCs, 11 Clinics,
• 11 Markets, 7 States
• 38 Partner Facilities
o Unique direct-to-patient marketing model
• Physician marketing
• Concierge experience – Patient coordination
o LTM ending 03/31/2017 revenue of $302.8 million and adjusted EBITDA of $35.6
million
o Revenue: CAGR of 109% from 2013 to 2016
o Adjusted EBITDA: CAGR of 134% from 2013 to 2016
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5. Investment Highlights
• Business model driven by organic growth and acquisitions
• Unique marketing model and proprietary technology a strategic advantage
• Disciplined M&A approach that has resulted in accretive acquisitions in a
fragmented market
• Favorable payor mix (predominantly commercial) and procedure mix
• Compelling value proposition for physicians, patients and payors
• Strong platform for scalable growth into national markets
• Focus on minimally invasive procedures aligned with market trends
• Lean balance sheet; limited capex and working capital requirements
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6. Industry Background
Traditional Hospitals
• Full-service hospital
• Inpatient and outpatient
• > 5,700hospitals
• 60%+ not-for-profit
Specialty Surgical
Hospitals (SSHs)
• Typically specialize in
orthopedics, spine, ENT
• Inpatient and outpatient
• ~ 300 SSHs
• Nobilis Health
Ambulatory Surgical
Centers (ASCs)
• Outpatient only
• > 5,400ASCs
• 70%+ owned by
independents
• Nobilis Health
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8. Optimized Procedure & Payor Mix
Case Mix:
• New technologies allow more complex surgical cases
in outpatient setting
• Better case mix results in higher average
reimbursement rates than ASC industry average
• Optimized case mix leads to highly specialized
surgical staff and increased center efficiencies
Payor Mix:
• Payor mix consists predominantly of commercial
payors
• Strategically adding in-network contracts to lower
out-of-pocket costs for patients and total costs for
payors and drives referrals from managed care
companies
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Vein, 7%
Pain, 29%
Orthopedics,
6%
Spine, 11%
General
Surgery, 6%
Plastic &
Reconstructive,
10%
Bariatrics, 20%
Gynecology,
3%
Other, 8%
Case Mix Q1 2017
10. Growth Strategy
o Drive organic growth
• Multiple marketing channels
• Physician employment model
o Acquisition opportunities
• Highly fragmented market
• Ability to cross-sell service lines
o Service lines and specialties
• Optimized case mix
• Higher acuity procedures, higher levels of reimbursement
o Operational leverage
• Drive cost reductions in recently acquired facilities
• Economies of scale
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11. Disciplined M&A Strategy
o Currently pursuing portfolio companies in strategic geographical regions
o All portfolio opportunities fulfill key criteria that expand overall footprint while
maximizing accretive value of combined entity:
• Multi-facility portfolio
• Ability to overlay marketing
• Strategic geographic market
• Positive EBITDA
o Nobilis will continue to seek and pursue other non-portfolio opportunities,
including:
• Facilities available at fair market value that Nobilis can quickly turn around and
sustain profitable operations
• Acquisitions of unique differentiators that add value and capabilities with the
needs of a strong in-network system
• Ancillary businesses with system-wide revenue producing potential
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12. Hamilton Vein Center
Overview
• 6 clinics in 3 markets (Houston, Austin, and
San Antonio)
• 26,000 patient encounters, of which 8,000
are procedural in nature
• 5,000 of the procedures are in the Houston
market and in preferred demographic areas
• 100% In-Network (INN) revenue
Purchase Price
• $8.25MM Cash
• $5MM Two Year Convertible Note
Growth Strategy
• HVC clinics will provide penetration into new
markets, Austin and San Antonio
• Clarity brand will impact HVC case volume an
estimated 5-10%
• Moving clinic based procedures to Nobilis
facilities, ASC’s and Hospitals, in the Houston
market will:
• Broaden the applicable patient base
• Increase the acuity of procedures that
can be performed within HVC system
• Increase revenue per case with nominal
increase or impact to incremental case
cost
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14. Unique Patient Acquisition Strategy
Direct-to-Consumer Marketing
• Marketing and technology platform that targets
prospective patients
• Unique value proposition to physicians; superior patient
experience
• Generates higher acuity cases vs. traditional referral model
• Scalable
Physician Marketing
• Build and execute marketing plans on behalf of physicians
• Helps expand physicians’ practices
• High ROI for Nobilis
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26. Facility Market Equity
Hospitals
First Nobilis Hospital Houston, TX 51%
Hermann Drive Surgical Hospital Houston, TX 54.75%
Plano Surgical Hospital Dallas, TX 100%
Scottsdale Liberty Hospital Scottsdale, AZ 75%
ASCs
First Nobilis Surgical Center (HOPD) Houston, TX 51%
Kirby Surgical Center Houston, TX 25%
Medical Park Drive Surgical Center (HOPD) Houston, TX 100%
Dallas Metro Dallas, TX 35%
Northstar Healthcare Surgery Center - Houston Houston, TX 100%
Northstar Healthcare Surgery Center - Scottsdale Scottsdale, AZ 100%
Chandler Surgery Center Phoenix, AZ 100%
Oracle Surgery Center Tucson, AZ 100%
Phoenix Surgery Center Phoenix, AZ 100%
Surprise Surgery Center Phoenix, AZ 100%
Clinics
Chandler Clinic Phoenix, AZ 100%
Oracle Clinic Tucson, AZ 100%
Paradise Valley Clinic Phoenix, AZ 100%
Phoenix Clinic Phoenix, AZ 100%
Surprise Clinic Phoenix, AZ 100%
Sugar Land Clinic Houston, TX 100%
Woodlands Clinic Houston, TX 100%
Clear Lake Clinic Houston, TX 100%
Katy Clinic Houston, TX 100%
Stone Oak Clinic San Antonio, TX 100%
Round Rock Clinic Round Rock, TX 100%
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27. Facility Specialties Facility
Plano Surgical Hospital • Bariatrics
• Spine
• Plastics
• Orthopedics
• General Surgery
• Pain management
• 26 Inpatient beds
• 6 OR’s
• 2 Procedure Rooms
Kirby Surgical Center • Orthopedics
• General surgery
• Pain
• ENT
• 4 OR’s
• 1 Procedure Room
Hermann Drive Surgical
Hospital
• Bariatrics
• Spine
• Plastics
• Orthopedics
• General Surgery
• 22 Beds
• 18 Private rooms
• 6 OR’s
• 2 Procedure Rooms
First Surgical Hospital
First Street Surgery Center
(HOPD)
• Bariatrics
• Spine
• Plastics
• Orthopedics
• General Surgery
• Pain management
Hospital • 4 OR’s
• 1 Procedure
Room
ASC • 4 OR’s
Northstar Healthcare Surgery
Center - Houston
• Spine
• Bariatrics
• General Surgery
• Pain
• Podiatry
• Plastics
• GI
• 3 ORs
• 2 Treatment rooms
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28. Facility Specialties Facility
Northstar Healthcare Surgery
Center - Scottsdale
• Plastics/Reconstructive
• Orthopedics
• General surgery
• Pain
• Bariatrics
• Podiatry
• 4 OR’s
• 1 Procedure Room
Scottsdale Liberty Hospital • Spine
• Orthopedic surgery
• General surgery
• Podiatry
• Bariatrics
• Migraine
• Vascular
• 2 OR’s
• 1 Procedure Room
• 12 Inpatient beds
Arizona Vein & Vascular Center • Vein • 5 Clinics
• 4 ASCs
• 15 OR’s
Hamilton Vein Center • Vein • 6 Clinics
• 20 RFAs
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