Acquisition Overview - Extendicare is acquiring CBI Home Health for $570 million[37, 94] - The acquisition is expected to be accretive to Extendicare's AFFO per share by 15% and earnings per share by 9%[34] - Post-synergies, the accretion is expected to increase to 20% for AFFO per share and 15% for earnings per share[34] - CBI Home Health's revenue for the twelve months ended July 31, 2025, was $478 million, with adjusted EBITDA of $61.9 million[34, 35, 87] - The purchase price represents 9.4x EV/Adjusted EBITDA pre-synergies and 8.4x post-synergies[94] Financing and Leverage - The acquisition will be funded through a combination of $26 million cash on hand, $200 million equity private placement, $205 million term loan, and $154 million revolver[37, 98] - Pro forma total debt to Adjusted EBITDA is expected to be 3.3x at transaction close[99] Extendicare's Business Segments - ParaMed, Extendicare's home health care segment, delivers over 13.5 million hours of home health care annually across 3 provinces[28, 40] - Extendicare operates 59 fully owned long-term care homes and manages 40 homes, representing approximately 7% of the Canadian market and 13% of the Ontario market[28] - Extendicare's managed services segment serves approximately 152,000 third-party and JV beds[42, 71] Market and Growth - The number of Canadians aged 85+ is projected to double by 2036 and triple by 2051[48] - ParaMed's care volumes grew by more than 10% in 2024 vs 2023 and increased 13% YTD Q3 2025 vs YTD Q3 2024[51] - Extendicare has a joint venture with Axium Infrastructure to redevelop LTC homes, with six homes under construction and 1,408 new beds replacing 1,097 Class C beds[77, 78]

Core Viewpoint - The company successfully completed a €1.5 billion plan to strengthen its financial position six months ahead of schedule, significantly improving its balance sheet and regaining normal access to the debt market [6][8][42]. Financial Performance - Revenue for the first half of 2025 was €2,656 million, reflecting a reported growth of 0.8% and an organic growth of 4.8% [17][7]. - EBITDAR pre-IFRS 16 was €546 million, stable compared to the first half of 2024, while EBITDA pre-IFRS 16 decreased to €263 million, down 4.1% [21][22]. - The net loss for the Group share pre-IFRS 16 was €47 million, compared to a loss of €28 million in the first half of 2024 [28][29]. Debt and Leverage - Net debt decreased by €212 million to €3,559 million as of 30 June 2025, resulting in a Wholeco leverage ratio of 5.6x [37][41]. - The company successfully issued €400 million of unsecured bonds, which were over three times oversubscribed, and amended its syndicated loan facility [46][44]. Operational Highlights - The Long-Term Care business showed good momentum with an occupancy rate exceeding 91% by the end of July 2025 [9]. - The company faced challenges in France due to the introduction of a new pricing structure for medical services, which negatively impacted financial performance in the first half [10][11]. Future Outlook - For 2025, the company expects organic revenue growth of around 5% and aims for EBITDA growth of 6-9% pre-IFRS 16 [50][52]. - The Wholeco leverage ratio is projected to fall below 5.5x by the end of 2025, with continued focus on improving cash flow generation and reducing debt levels [50][52].