CareRx Q4-23 Earnings Call – March 7, 2024 at 8:30 am ET | Earnings Call Slides

Q4 2023

Earnings

Call

March 7, 2024

Cautionary Statements

Forward Looking Statements

Certain of the statements contained in this presentation are "forward looking information within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events. Forward looking information generally can be identified by the use of forward looking terminology such as "outlook ", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue", or similar expressions suggesting future outcomes or events. You are cautioned not to place undue reliance on such forward-looking information. Forward looking information is based on current expectations, estimates and assumptions that involve a number of risks that are set out under the heading "Risks and Uncertainties" in CareRx's most recently filed Management's Discussion and Analysis available on SEDAR+ at www.sedarplus.ca, which could cause actual results to vary and in some instances to differ materially from those anticipated by CareRx and described in the forward looking information contained in this presentation. No assurance can be given that any of the events anticipated by the forward looking information will transpire or occur or, if any of them do so, what benefits CareRx will derive therefrom and neither CareRx nor any other person assumes responsibility for the accuracy and completeness of any forward looking information. Other than as specifically required by applicable laws, CareRx assumes no obligation and expressly disclaims any obligation to update or alter the forward-looking information whether as a result of new information, future events or otherwise.

Non-IFRS Financial Measures and Non-IFRS Ratios

"EBITDA", "Adjusted EBITDA", "Adjusted EBITDA Margin" and "Adjusted EBITDA per share" are non-IFRS measures and "Net Debt to Adjusted EBITDA" is a non-IFRS ratio all of which do not have standardized meanings prescribed by IFRS. See "Non-IFRS Financial Measures" , "Non-IFRS Ratios" and "Reconciliation of Non-IFRS Financial Measures" in CareRx's most recently filed Management's Discussion and Analysis available on SEDAR+ at www.sedarplus.ca.

All dollar figures are in Canadian dollars unless otherwise stated.

2

Puneet Khanna

President & Chief Executive Officer

3

Q4 2023

• Revenue in Q4 2023 of $91.1 million
• Adjusted EBITDA in Q4 2023 of $7.5 million
• Completed comprehensive refinancing of credit facilities

4

Andrew Mok

Chief Financial Officer

5

Q4 2023 Financial Results | Revenue

		(millions)
110	$94.3	$93.8	$91.1
100
90
80
70
60
50
40
30
20
10
0
6	Q4 2022	Q3 2023	Q4 2023

• Average beds serviced of 91,465: -2.5% vs Q4 2022
• Year-over-yearrevenue decline primarily the result of a change in the mix of branded and generic drugs dispensed during the fourth quarter of 2023. This did not negatively impact profitability in the quarter
• Quarter-over-quarterrevenue decreased $2.7 million or 3% primarily due to a small net reduction in the number of beds serviced

Q4 2023 Financial Results | Adjusted EBITDA

		(millions)
10
9			$7.5
8	$7.1	$7.3
7
6
5
4
3
2
1
0
	Q4 2022	Q3 2023	Q4 2023

• Year-over-yearand quarter-over-quarter Adjusted EBITDA increase primarily the result of certain efficiencies and cost savings initiatives implemented during the second half of 2023
• Adjusted EBITDA margin increased to 8.2% or 400 basis points quarter-over-quarter and year- over-year

7

Q4 2023 Financial Results | Net Income

		(millions)
	Q4 2022	Q3 2023	Q4 2023
5
4
3
2
1
0
-1
-2		-$1.4
-3
-4			-$3.7
-5	-$4.7
8

• Year-over-yeardecline in net loss driven primarily by decreases in share-based compensation expense and change in fair value of contingent consideration liabilities, in addition to the impact of certain cost savings initiatives implemented during the second half of 2023
• Decline partially offset by a lower gain on change in fair value of derivative financial instruments, intangible assets impairment recorded during the fourth quarter of 2023 and impact of a reduction in the average number of beds serviced
• Quarter-over-quarternet loss driven by reduction in average number of beds serviced, intangible assets impairment and accounting for the refinancing transaction

Comprehensive Debt Refinancing Transaction

• Completed comprehensive $70 million debt refinancing transaction in December 2023 with a syndicate of lenders led by a Canadian Schedule 1 chartered bank
• Legacy term loan, subordinated debt facility and March 2019 convertible debentures repaid in full at close
• Simplified and strengthened capital structure
• Significantly greater financial flexibility
• Expect to initially save up to $1 million annually in interest charges

9

Balance Sheet

(millions except ratio)

At Dec 31/23

Cash	$7.0 M
Net Debt1	$55.2 M
Net Debt to Adjusted EBITDA2	1.8x

10 1. Debt = borrowings (principal) not including November 2019 Convertible Debentures.

2. Annual run-rate based on Q4/23 Adjusted EBITDA.

• Quarter-over-quarterdecrease in cash balance due to completion of comprehensive debt refinancing transaction
• Total debt declined to $62.1 million from $93.4 million1
• Improved cash flows from operations to $27.4 million from $22.3 million year-over-year