2. Forward-Looking Information
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.
2
3. Summary
o Own, operate and manage ambulatory surgical centers
(ASCs) and surgical hospitals
4 Surgical Hospitals, 9 ASCs1, 5 Clinics1, 36 Partner facilities
8 Markets, 7 States
o Unique direct-to-patient marketing model
o Capitalizing on trend toward increased consumerism in
healthcare
o Healthcare delivery shifting towards lower cost, high quality
outpatient setting
o 2015 revenue of $229.2 million and adjusted EBITDA of
$42.1 million
1 Includes acquisition of Arizona Vein & Vascular
3
4. 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
Under leveraged balance sheet; limited capex and working capital
requirements
Compelling value proposition for physicians, patients and payors
4
6. 2nd Quarter Highlights
$61.9M Revenue
$8.5M Adjusted EBITDA
$4.8M Net Income / $0.06 EPS
$18.8M Cash
$77.6M AR
$22.1M Total Debt
Approx. 91% of Dec 31, 2015 AR collected as of
8/2/16
6
Second quarter results reflect a continuation of our growth and
operations strategy, including strong growth in case flow and higher
average revenue per case.
7. Growth Strategy
7
Drive organic growth
‒ Multiple marketing channels drive volume growth
‒ Concertis, Inc. – bundled payments
Acquisition opportunities
‒ Highly fragmented market
‒ Ability to cross-sell service lines
Service lines and specialties
‒ Optimized case mix
‒ Higher acuity procedures, higher levels of reimbursement
Operational leverage
‒ Drive cost reductions in recently acquired facilities
‒ Economies of scale
8. Industry Background
Traditional Hospitals
o Full-service hospital
o Inpatient and outpatient
o > 5,700 hospitals
o 60%+ not-for-profit
Specialty Surgical
Hospitals (SSHs)
o Typically specialize in
orthopedics, spine, ENT
o Inpatient and outpatient
o ~ 300 SSHs
Ambulatory Surgical
Centers (ASCs)
o Outpatient only
o > 6,000 ASCs
o 70%+ owned by
independents
8
9. Nobilis Footprint
Other operations
o Nobilis manages all
owned facilities
o 36 Partner Facilities
Facility Market Equity
First Surgical
Hospital
Houston, TX 51%
First Street Surgery
Center (HOPD)
Houston, TX 51%
Southwest Freeway
Surgery Center
Houston, TX 100%
Kirby Surgical Center Houston, TX 25%
Hermann Drive
Surgical Hospital
Houston, TX 55%
Plano Surgical
Hospital
Dallas, TX 100%
Dallas Metro (HOPD) Dallas, TX *40%
Northstar Healthcare
Surgery Center
Scottsdale, AZ 100%
Scottsdale Liberty
Hospital
Scottsdale, AZ 60%
1
3
24
5
2
1
2
2
1
1 1
2
Relationship Facilities
(DTC, IOM)
JV Facilities Owned Facilities36 1 8
9
*Through the JV structure at Dallas Metro, Nobilis owns
40% of the management company and receives additional
income from Nobilis sourced cases through an MSA
*Marketing/Ancillary services provided
o 8 Markets
o 7 States
10. New Acquisition - Arizona Vein and Vascular
10
o 4 ASCs and 5 Clinics
Phoenix and Tucson, AZ markets
11 ORs, 30 beds
Combined 37k sq ft clinical space
o $20m 2015 Revenue
o $6m 2015 Adj. EBITDA
o ~4800 cases 2015
o Commercial Payors
11. Transaction Details
11
Transaction
o The purchase price is $22 million plus a
performance-based earn-out based on
growth in Adjusted EBITDA
o The purchase price is comprised of:
$17.5 million cash
$2.25 million in the form of a
convertible note
$2.25 million of restricted stock
o ~3.5x EBITDA
o Dr. Phillip Wall will be joining Nobilis as
President of Vascular Division
o Expected to close within 90 days
Growth Strategy
o Nobilis will expand Arizona Vein & Vascular
procedures to facilities in the Houston and
Dallas markets concurrent with closing
o The Company expects to drive additional volume
into these expansion locations utilizing its
proprietary marketing capabilities
o Accretive to 2016 EPS
12. Optimized Procedure & Payor Mix
Procedure Mix:
o New technologies allow more complex
surgical cases in outpatient setting
o Better case mix results in higher
average reimbursement rates than
ASC industry average
o Optimized case mix leads to highly
specialized surgical staff and increased
center efficiencies
Payor Mix:
o Payor mix consists predominantly of
commercial payors
o 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
Case Mix FY 2015
Gen
4%
Pain 29%
Bariatric 22%
Spine 13%
Plastic 9%
Orthopedic
8%
Other 10%
Gyn
5%
12
13. Revenue Model
o Profit margin driven by relative ownership
levels (Nobilis ownership ranges 25% –100%,
Average 65%)
o In addition, Nobilis receives percentage of
marketing-generated cases, driving overall
effective profit percentage higher
o Marketing (DTC & Sales) cases typically have
higher profit margin
1 Management fees range from 2%–8%
Anesthesia
+ Surgeon
Nobilis Facility
Payor
Commercial,
Government, Self-Pay
Facility Fee
Professional Fees
% of Profit + Management Fee1
13
14. Direct-to-Consumer Marketing
o Marketing and technology platform that targets prospective patients
o Unique value proposition to physicians; superior patient experience
o Generates higher acuity cases vs. traditional referral model
o Scalable
Unique Patient Acquisition Strategy
Physician Sales
o Build and execute marketing plans on behalf of physicians
o Helps expand physicians’ practices
o High ROI for Nobilis
14
15. Lead Generation
6 branded surgical
procedures marketed
directly to patients via
omni-channel marketing
strategy
Concierge Service
Inside sales team + IT
platform to maximize
patient experience
Patient Tracking
Patient follow-up,
experience surveys,
referrals
Direct-to-Consumer Marketing
15
Conversion to Surgical Patient
Patient education, medical
review, insurance verification,
surgical scheduling
Our Brands:
16. Patient Coordinators
will interact with a
patient an average
of 17 times
Patient Coordinators
Nobilis Patient Journey Platform
o Ensures that each step of the patient journey is
reviewed and managed by a dedicated Patient
Coordinator from time of initial contact through
post surgical recovery
End-to-End Concierge Model
o Leverages Nobilis’ proprietary scheduling
applications
o Designed for standardized data entry for
corporate reporting consolidation, connection to
EMRs, faster onboarding of new facilities, post-
operative follow-up program with outcomes and
patient satisfaction data
16
17. 6 Branded Surgical Procedures
17
Minimally invasive back and neck surgeries
Non-pharmaceutical surgical implant for the relief of
chronic migraine pain
Minimally invasive bariatric surgery
Minimally invasive surgeries for gynecological conditions
Minimally invasive relief of foot and ankle pain due to nerve
entrapment, other podiatric issues
Treats non-spine joint issues for patients of all ages, types
18. Physicians
Devote more time to treating
patients
Generate additional patient volume
Grow their practice
Increased profitability
Benefits of DTC Marketing
Nobilis Health
Enhanced physician recruitment/
retention
Incremental patient volume
High return on revenue per case
Scalable
18
19. Physician Marketing
o In-house marketing team works
one-on-one with physicians to
develop and distribute
customized marketing plans
o Lower partner acquisition costs /
increased partner profitability
o Enhanced recruitment and
retention
Nobilis ROI
Average
5:1
19
20. Disciplined M&A Strategy
20
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
21. Concertis
A Technology Platform that Transforms
Healthcare Delivery
o Concertis connects providers with payors
to implement new reimbursement
methodologies focused on patient
outcomes
o This is effectively an in-network model at
higher than in network rates and
accelerated payment timeline
21
Payor
Ancillaries Surgeon Facility
Concertis Products:
o Clinical Integration Network
Formation and Administration
o Population Health Management
o Care Coordination
“Bundled payments are the future of reimbursement in
medicine. At Nobilis we are well-positioned to take
advantage of this."
-Dr. Neil Badlani,
Chief Medical Officer
22. Aligning Payors, Providers, and Facilities
22
Concertis Aligns Payors, Providers, and Facilities
o Opportunity to enhance relationships with commercial payors and
develop relationships with self-insured employers
o Greater savings on bundles than large, acute-care facilities
o Physicians encouraged to cooperate for enhanced revenue
incentives
o Represents a significant marketing opportunity
23. o Strong platform for scalable growth into national markets
o Compelling value proposition for physicians, patients and payors
o Focus on minimally invasive procedures aligned with market trends
o Lean balance sheet; limited capex and working capital requirements
Poised for Continued Growth
2015 2016E Change2
Revenue $229M $275M +20%
Adjusted EBITDA $42M $51M +21%
23
Financial Guidance (Not including acquisitions)1
1While our pipeline remains strong, as evidenced by the recently announced agreement to acquire Arizona Vein and
Vascular, the timing of acquisitions is always uncertain. Therefore, from this point forward, Nobilis will no longer
provide guidance that includes acquisitions. As we close future acquisitions, including Arizona Vein and Vascular, we will
provide additional guidance.
2Assumes 20% organic revenue growth and 21% organic Adj. EBITDA growth on facilities/companies acquired after
January 1, 2015 (including acquisitions in 2016)