Amica Mature Lifestyles Investor Presentation April 10, 2015

www.amica.ca

Investor Presentation May 1, 2015

www.amica.ca

NOTICE TO READER

This presentation contains forward-looking statements within the meaning of applicable securities laws. These statements include, but are not limited to, statements made in this presentation and other statements concerning Amica Mature Lifestyles Inc.’s (“Amica” or the “Company”) objectives, its strategies to achieve those objectives, as well as statements with respect to management’s beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “would”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plan”, “continue”, or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. All forward-looking statements in this presentation are qualified by these cautionary statements. Certain material factors, estimates or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in these statements and actual results could differ materially from such conclusions, forecasts or projections.

Additional information on the material risks that could cause actual results to differ materially from the conclusions, forecast or projections in these statements and the material factors, estimates or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information can be found in the “Risk Factors” section of the Company’s 2014 Annual Information Form and in the “Risks and Uncertainties” section of the Company’s most recent Management’s Discussion and Analysis (“MD&A”) available on its website at www.amica.ca and on SEDAR at www.sedar.com. The Company undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result or new information, future events or otherwise, except as required by law.

The information contained herein has been prepared to assist interested parties in making their own assessment of Amica and does not purport to contain all of the information that an interested party may desire. Amica does not make any representations or warranties as to the accuracy or completeness of this presentation or the information contained in, or for any omissions from, this presentation or any other written or oral communications transmitted to the recipient in the course of its assessment of Amica.

This presentation does not constitute an offer to sell or a solicitation of an offer to purchase securities of Amica Mature Lifestyles Inc.

http://www.amica.ca/





http://www.sedar.com/





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NON-IFRS FINANCIAL MEASURES

This presentation makes reference to the following terms: “Earnings Before Interest, Taxes, Depreciation and Amortization” (or “EBITDA”), “Funds From Operations” (or “FFO”), “Adjusted Funds From Operations” (or “AFFO”), “Monthly Average Revenue Per Available Suite” (or “MARPAS”) and “Retirement communities margin” (collectively the “Non-IFRS Financial Measures”). These Non-IFRS Financial Measures are not recognized under IFRS and do not have standardized meanings prescribed by IFRS. The Company considers these Non-IFRS Financial Measures relevant in evaluating the operating and financial performance of the Company, along with IFRS measures such as net earnings (loss) and comprehensive income (loss), basic and diluted earnings (loss) per share and cash provided by (used in) operations. Please see “DEFINITION AND RECONCILIATION OF NON-IFRS FINANCIAL MEASURES” in the Company’s MD&A for the three & nine months ended February 28, 2015 for a description of these Non-IFRS Financial Measures, which is available on SEDAR at www.sedar.com. Please see the Company’s MD&A for the three & nine months ended February 28, 2015 for the definition of “mature same communities”, which is available on SEDAR at www.sedar.com. Note: All dollar figures in this presentation are in Canadian dollars.

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ABOUT AMICA AND THE INDUSTRY

www.amica.ca

ABOUT AMICA

Founded in 1993 by the Manji family Leader in the design, development, marketing, management and ownership of high-end retirement residences in Canada Focused on the luxury independent living niche Strong BRAND recognition in the industry and markets where Amica residences are situated Publicly traded on the TSX, symbol “ACC”

www.amica.ca

Quarterly dividend paid since September 2006

$0.100

$0.200

$0.300

$0.400

$0.500

$0.600

Fiscal 2014 Last 4 Quarters*

Dividend per share Diluted per share AFFO

90% payout 85% payout

*Last 4 Quarters ending February 28, 2015

$0.42 $0.47 $0.42 $0.50

QUARTERLY DIVIDEND

www.amica.ca

Listing Data

CAPITALIZATION

TSX: ACC

Recent Share Price (30-Apr-15): $7.40

52-Week Range: $6.41 - $7.91

Shares Outstanding: 30.82M

Quarterly Dividend: $0.105

Current Yield: 5.85%

Market Capitalization: $228.1M

Manji Family Holdings: 9.2M shares (30%)

www.amica.ca

OUR PORTFOLIO

24 Operational (3,177 suites)

1 Project Under Construction

Amica at Oakville (Oakville, Ontario) ~139 suites

1 Project in Pre-Development

Amica at Fish Creek (Calgary, Alberta) ~150 suites for Phase 1

Expansions of Existing Amica Properties, in Pre-Development

Amica at Swan Lake (Markham, Ontario) ~76 suites

Amica at Dundas (Dundas, Ontario) ~74 suites

www.amica.ca

OUR PORTFOLIO

IL

82%

AL 18%

Total suites by IL and AL

Amica’s primary focus is high-end, luxury Independent Living (IL), with some Assisted Living (AL)

IL is designed to meet the needs of seniors who are able to live independently

VITALIS™ Assisted Living (AL) includes up to 90-mins of personal care a day which can include assistance with bathing, dressing, laundry, housekeeping and medication management (just some examples)

www.amica.ca

OUR PORTFOLIO

Amica’s portfolio is second-to-none in the Canadian seniors housing industry

5-star Wellness & Vitality™ Residences situated in some of the most renowned neighbourhoods in Ontario, British Columbia and Alberta (see complete listing of Amica’s portfolio at end of this presentation)

Strategic locations are supported by demographic and market demand for Amica’s quality services and environments

High quality assets

Victoria (BC), West Vancouver (BC) and North York (Ontario)

www.amica.ca

2011 SHIFT IN STRATEGY

BRAND MANAGEMENT

FOCUS ON OWNERSHIP

INTERNAL CONSOLIDATION STRATEGY

Potential to Increase Amica’s Ownership Position

Amica at Bayview Gardens

North York, ON

Amica at Windsor

Windsor, ON

Amica at Aspen Woods

Calgary, AB

Amica at London

London, ON

Amica has an ownership position of less than 50% in four operational Amica Wellness & Vitality™ Residences:

www.amica.ca


Opened in August 2013

Amica’s first Wellness & Vitality™ Residence in Alberta

Adds 147 suites to Amica’s existing portfolio

Construction was completed under budget


NEW DEVELOPMENT PROJECTS

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Amica at Oakville

Progress continues to be made on the construction

Expected to open summer 2015

Adds 139 suites to Amica’s existing portfolio

Marketing program commenced and reservations now being accepted


www.amica.ca


Amica at Fish Creek

Expanding presence in Calgary

3.43 acre development land site located in Southwest Calgary

Anticipate developing the land in two phases

First phase expected to add 150 suites to Amica’s existing portfolio

Near term plan is to undertake pre-development activities and establish a joint venture with 3rd party investor(s)

Construction not anticipated to commence within 12 months

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OUR PORTFOLIO Amica Ownership Number of Position Properties 100% 12

50% or greater but less than 100% 9

Greater than 20% & less than 50% 5

TOTAL 26

WELLNESS & VITALITY™ ~

Historically, seniors housing has been delivered in an institutional setting with small rooms and limited amenities. The breakthrough that we achieved was to evolve out of the housing business and to position ourselves in the Wellness & Vitality™ business. From our mPOWER™ strength training program, to our nutritional analyses, to the very design, amenities and operation of our residences - everything we do is structured so that the wellness and vitality of our residents is our total focus.

www.amica.ca

WHAT DIFFERENTIATES AMICA?

Our Luxury Communities

Rigorous design standards High-end finishes Resort-inspired living

Setting the benchmark in luxury independent living

www.amica.ca


Our Brand

People & Hospitality Wellness & Vitality™ Fine Dining Marketing Operating Standards Physical Buildings


www.amica.ca


Our Operational Excellence

People Culture Hospitality Approach


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OUR GROWING MARKET

Source: Statistics Canada

Seniors constitute the fastest growing population group in Canada Since 2006, the number of seniors aged 65 and over grew ~14% to 5 million in 2011

0%

5%

10%

15%

20%

25%

30%

0

2

4

6

8

10

12

2010 2011 2016 2021 2026 2031 2036

Pro

jecte

d %

of

Can

ad

ian

Po

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lati

on

Pro

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d S

en

iors P

op

ula

tio

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in m

illi

on

s)

Projected Seniors Population in Canada

65-74 [lhs] 75-84 [lhs] 85+ [lhs] 65+ [rhs] 75+ [rhs]

.

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FAVOURABLE INDUSTRY FUNDAMENTALS

Strong long-term demographic trends Seniors are healthier, wealthier and living longer than ever before Higher expectation and demand for quality services and environments

Today’s seniors are more active and involved in their communities and

expect to live longer and healthier lives than previous generations. The healthier more affluent senior is

looking for a standard of living that offers an independent lifestyle (with

some care and support available) with an emphasis on hospitality.

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FINANCIAL & OPERATIONAL PERFORMANCE

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Q3 FISCAL 2015 HIGHLIGHTS

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* Net of management fees eliminated on consolidation

MATURE COMMUNITIES

3 months ended 9 months ended

Feb 28/15 Feb 28/14 Change Feb 28/15 Feb 28/14 Change

Revenues ($000’s)

$34,946 $34,189 $757 $103,784 $101,170 $2,614

Expenses* ($000’s)

$23,180 $22,626 $554 $67,887 $67,047 $840

Margin ($000’s)

$11,766 $11,563 $203 $35,897 $34,123 $1,774

Margin (%) 33.7% 33.8% (0.1%) 34.6% 33.7% 0.9%

www.amica.ca www.amica.ca


LEASE-UP COMMUNITY



Revenues ($000’s)

$1,382 $575 $807 $3,783 $947 $2,836


$920 $598 $322 $2,621 $1,493 $1,128

Margin ($000’s)

$462 ($23) $485 $1,162 ($546) $1,708

Margin (%) 33.4% (4.0%) 37.4% 30.7% (57.6%) 88.3%


www.amica.ca www.amica.ca


RETIREMENT COMMUNITIES



Revenues ($000’s)

$36,328 $34,764 $1,564 $107,567 $102,117 $5,450


$24,100 $23,224 $876 $70,508 $68,540 $1,968

Margin ($000’s)

$12,228 $11,540 $688 $37,059 $33,577 $3,482

Margin (%) 33.7% 33.2% 0.5% 34.5% 32.9% 1.6%


www.amica.ca

$11,540

$11,556

$11,964

$12,867

$12,228

$34,764

$34,873

$35,276

$35,963

$36,328

$- $10,000 $20,000 $30,000 $40,000

Q3/14

Q4/14

Q1/15

Q2/15

Q3/15

Revenues

Margin

Growing Retirement Communities Revenues (expressed in thousands)


www.amica.ca

MATURE COMMUNITIES*

Overall Occupancy

Feb 28/15 88.9%

Nov 30/14 89.8%

Aug 31/14 89.8%

May 31/14 90.1%

Feb 28/14 90.4%

Includes Amica at Quinte Gardens, Amica at Bayview Gardens and Amica at Windsor which became mature communities effective Feb 1/15, July 1/14, & Aug 1/14, respectively.


www.amica.ca

OCCUPANCY

Occupancy Trend in Mature Communities

84.0%

85.0%

86.0%

87.0%

88.0%

89.0%

90.0%

91.0%

92.0%

Reflects Mature Communities on same community basis.

www.amica.ca

MARPAS KEY ECONOMIC DRIVER

MARPAS = Monthly Average Revenue Per Available Suite

Yield management concept similar to hospitality industry Revenue per Available Room (RevPAR) calculation

3 months ended February 28/15: 2.4%

Mature same community MARPAS increase, compared to the same periods in the prior year:

www.amica.ca

$3,600

$3,640

$3,680

$3,720

$3,760

$3,800

$3,840

$3,880

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Mature same community

MARPAS

Fiscal 2014

Fiscal 2015

$3,785

Reflects Mature Communities on same community basis. Includes Amica at Quinte Gardens, Amica at Bayview Gardens & Amica at Windsor.

$3,859

MARPAS KEY ECONOMIC DRIVER

MARPAS = Monthly Average Revenue Per Available Suite

www.amica.ca

At February 28, 2015 there is one community in lease-up: Amica at Aspen Woods.

LEASE UP COMMUNITY

Occupancy

Apr 5/15 68.3%

Feb 28/15 65.5%

Nov 30/14 64.8%

Aug 31/14 57.2%

May 31/14 46.9%

Feb 28/14 32.4%


www.amica.ca

COMMUNITY IN LEASE-UP

Overall occupancy for communities in lease-up

10%

20%

30%

40%

50%

60%

70%

Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15

Note: All periods include Amica at Aspen Woods

www.amica.ca

Total Market Cap* $228.1M

Non-controlling interest** $9.7M

Net consolidated debt** $520.0M

Total consolidated enterprise value $757.8M

Net consolidated debt as % of total capitalization:~68.6% * April 30, 2015

** At Feb 28, 2015, book value

CAPITAL STRUCTURE

www.amica.ca

Thereafter

2020

2019

2018

2017

2016

Fiscal

year:

Demand

Mortgages

$33.9M ($12.3M CMHC) (3.40%)

CONSOLIDATED DEBT MATURITY

$32.7M ($5.2M CMHC) (4.71%)

Consolidated debt maturities and weighted average nominal interest rates as at February 28, 2015 by fiscal year:

Note: Figures are after principal payments prior to maturity (i.e. principal balances reflect maturity amounts), except for the due on demand mortgages which reflect current loan amounts before future principal repayments

Weighted average nominal interest

rate: 3.50%

Weighted average term to maturity:

3.0 years

$173.4M (No CMHC) (3.54%)

$41.3M (No CMHC) (5.64%)

$54.3M ($6.7M CMHC) (3.05%)

$74.1M ($56.5M CMHC) (2.90%)

$36.9M ($31.4M CMHC) (2.82%)

www.amica.ca

CASH RESOURCES

Consolidated cash & cash equivalents balance at February 28, 2015: $4.9 million.

$20 million operating loan facility, $10.3 million is available under this loan facility at February 28, 2015 (amount available is net of $9.0 million drawn on the loan facility and $0.7 million in letters of credit secured by the loan facility). On April 9, 2015, the balance available on the demand loan was approximately $9.4 million.

Term sheet received to increase financing on the property securing the operating loan facility to ~$31 million. Our intent is to have the majority/all of this new financing as a term loan and a potentially smaller operating loan facility. The proceeds will be used to repay the current facility and to strengthen our cash position.

We continue to pursue further opportunities to increase cash and reduce due on demand debt.

www.amica.ca

Fiscal 2015:

Simplifying our Business

www.amica.ca

5 Core Strategies

1. Accelerate Margin Growth within every Community

2. Simplify our Organization

3. Talent Management and Development

4. Strengthening our Balance Sheet and Sustaining Cash Position

5. Institutionalize Amica Standards across the Portfolio

Fiscal 2015:

Simplifying our Business

www.amica.ca

GROWTH OPPORTUNITIES

1. Opportunity for future “internal consolidations” through increasing ownership in existing communities

2. Significant upside in occupancy and NOI as communities in lease-up reach stabilized levels (i.e. 95% and higher) and increase in rents to market on turnover

3. Development of new Amica communities and expansion of some existing Amica communities

4. Acquisition opportunities that can be readily transitioned to the Amica brand

5. Increasing management fee revenues and EBITDA as new Communities lease-up

www.amica.ca

INVESTMENT HIGHLIGHTS

1. Canada’s premier brand and leader in the luxury seniors retirement living industry

2. Superior portfolio of luxury independent living retirement residences

3. The luxury independent living market is significant and growing

4. Industry leading Management Team

5. Strong alignment of CEO/Management with shareholders, including significant ownership stake in the Company

6. Dividend growth potential through execution

www.amica.ca

For more information visit www.amica.ca

Investor Relations Contacts:

Art Ayres, CFO / [email protected] / (604) 630-3473 Troy Shultz, Investor Relations / [email protected] / (604) 639-2171

Residence Location No. of Suites Amica Ownership

Amica at Arbutus Manor Vancouver, BC 114 100%

Amica at Aspen Woods Calgary, AB 147 30.51%

Amica at The Balmoral Club Toronto, ON 63 100%

Amica at Bayview North York, ON 140 68.5%

Amica at Bayview Gardens North York, ON 146 44%

Amica at Bearbrook Ottawa, ON 101 100%

Amica at Beechwood Village Sidney, BC 106 100%

Amica at City Centre Mississauga, ON 136 93.39%

Amica at Douglas House Victoria, BC 103 100%

Amica at Dundas Dundas, ON 134 50%

Amica at Erin Mills Mississauga, ON 129 100%

Amica at London London, ON 162 43.5%

Amica at Mayfair Port Coquitlam, BC 85 100%

Amica at Newmarket Newmarket, ON 137 62%

Amica at Quinte Gardens Belleville , ON 237 100%

Amica at Rideau Manor Burnaby, BC 138 100%

Amica at Swan Lake Markham, ON 115 50%

Amica at Somerset House Victoria, BC 136 100%

Amica at Thornhill Thornhill, ON 146 55.5%

Amica at Villa Da Vinci Vaughan, ON 124 100%

Amica at Westboro Park Ottawa, ON 137 92.5%

Amica at West Vancouver West Vancouver, BC 121 83.5%

Amica at Whitby Whitby, ON 139 51.25%

Amica at Windsor Windsor, ON 181 49.63%

TOTAL: 3,177

PORTFOLIO SUMMARY: Rental Retirement Communities in Operation

www.amica.ca

Total: 300

PORTFOLIO SUMMARY: Rental Retirement Communities

Under Development and In Pre-Development

Residence Location No. of Suites * Amica Ownership

Amica at Swan Lake (Expansion)

Markham, ON

76 50%

Dundas (Expansion) Dundas, ON 74 50%

Amica at Fish Creek Calgary, AB 150 100%

* The number of suites is estimated based on preliminary project plans and the actual number of suites could change.

Pre-Development

Under Development

Residence Location No. of Suites * Amica Ownership

Amica at Oakville Oakville, ON 139 45.41%

Total: 139

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SENIOR MANAGEMENT

Samir A. Manji Chairman & Chief Executive Officer David R. Minnett President Arthur J. Ayres Chief Financial Officer & Corporate Secretary Colin R. Halliwell Chief Development Officer (retiring Sept 1/15)

Valerie l. Owen Vice President, Human Resources Michael G. Hayward Vice President, Marketing & Communications Mark Lugowski Vice President, Operations Claudia L. Salgado Vice President, Design & Construction

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DIRECTORS PRINCIPAL OCCUPATION Terry M. Holland President and CEO, Krystal Financial Corp. Salim A. Manji President, Barney River Investments Limited Samir A. Manji Chairman & CEO of Amica Mature Lifestyles Inc. Andrew L. Oppenheim Partner, Gowling Lafleur Henderson LLP, Barristers and Solicitors Shant Poladian Former Chief Executive Officer, FAM REIT (F.UN:TSX) Mike Shaikh Independent businessman, Chartered Accountant Charles W. van der Lee Owner and President & CEO of Papa M Pizza Canada Inc., a private company with the Master Franchise Rights for Papa Murphy’s Take ‘N Bake Pizza in Canada

Majority Independent Board with Diverse Industry Expertise

BOARD OF DIRECTORS

Amica Mature Lifestyles Investor Presentation April 10, 2015

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