WELL WELL Health Technologies Corp

• WELL provided updated comprehensive ROIC⁽¹⁾ metrics for all clinics acquired in years 2022, 2023, and 2024 based on exit run-rates in 2024. The results show ROIC figures of 41%, 24%, and 28% respectively.
• WELL provides comprehensive performance metrics for all Canadian clinics acquired in years 2022, 2023, and 2024 based on exit run-rates in 2024. The results show effective multiples of 2.0x, 2.3x and 2.6x Adj. EBITDA respectively.
• WELL's overall M&A prospect pipeline now stands at 165 clinics generating over $440 million of annual revenue at approximately double-digit Adj. EBITDA margins. WELL's pipeline of signed LOIs currently stands at 19 clinics reflecting approximately $50 million in revenue at approximately double-digit Adj. EBITDA margins.
• WELL also disclosed that it has no exposure to U.S. tariffs against Canadian goods and any potential future tariffs imposed on services would not harm the Company given that it currently does not offer its healthcare software platform capabilities or care delivery capabilities on a cross-border basis In addition, WELL has significant exposure to the U.S. dollar as over 60% of its revenues, Adj. EBITDA and cashflow is generated in U.S. dollars by WELL's US based entities.

VANCOUVER, BC, Feb. 3, 2025 /PRNewswire/ - WELL Health Technologies Corp. (TSX: WELL) (OTCQX: WHTCF) (the "Company" or "WELL"), a digital healthcare company focused on positively impacting health outcomes by leveraging technology to empower healthcare practitioners and their patients globally, is pleased to announce key updates regarding the financial performance of its acquired clinics, an update on its current clinic prospect pipeline, and its positioning in light of potential U.S.-Canada trade tariffs.

WELL's Recent Clinic Cohorts Demonstrating Strong Profitability and Growth

WELL continues to enhance its acquired clinics by implementing its proprietary technology-driven transformation strategy. By tech enabling clinicians, improving digital workflows and centralizing administrative services, WELL has increased efficiency and profitability across its expanding network. This has resulted in time and resources being returned to care providers who are able to increasingly focus on providing care and improving patient outcomes.

Hamed Shahbazi, Founder and CEO of WELL, commented "We are very pleased to share these metrics. The results clearly show that our clinic ROIC⁽¹⁾ metrics have significantly benefited by our clinic transformation program and consistently delivered strong financial performance. We are now taking steps to significantly increase our pace of growth in 2025 to meet our previously stated future long-term goal of reaching $4 billion in revenues from Canadian sources. We continue to execute on our goals by leveraging our technology and expertise to compress acquisition multiples and improve free cashflow generation reinforcing WELL's position as a top-tier healthcare services provider and improving the sustainability of the Canadian healthcare ecosystem."

The following table summarizes key performance data from the Company's Canadian clinic M&A program:

Expanding M&A Pipeline and Growth Outlook

WELL's acquisition strategy continues to drive significant growth, with a record-sized pipeline of opportunities in the Canadian healthcare sector. The Company's M&A prospect pipeline now includes 165 clinics generating over $440 million in annualized revenue at approximately double-digit Adj. EBITDA margins. The Company's near-term pipeline includes 19 signed LOIs representing approximately $50M in revenue at approximately double-digit Adj. EBITDA margins.

WELL's clinic acquisition strategy has accelerated significantly, making 2024 its most active year for clinic acquisitions in company history. The size of each new acquisition cohort has grown, and WELL expects this momentum to expand even further. Moving forward, the 2024 cohort alone is anticipated to contribute approximately the same amount of Adj. EBITDA as the combined 2022 and 2023 cohorts, making it the most Adj. EBITDA-additive acquisition year in our Canadian Clinic program since 2021.

This level of expansion reflects WELL's ability to efficiently identify, acquire, and integrate high-quality clinics at attractive valuations. Importantly, incremental ROICs on new acquisitions are materially higher than the company-wide average, reinforcing the growing value of tuck-in acquisitions. With WELL's acquisition platform now maturing, the opportunity to integrate and optimize additional clinics is greater than ever. This ROIC inflection is being observed across our entire Canadian Clinics business care clinics, demonstrating the scalability of WELL's operational improvements and capital allocation discipline.

WELL's Business Model Resilient to U.S.-Canada Tariffs

WELL can confirm that there are no material tariff threats to its business today as it does not engage in cross-border sales between Canada and the United States. While tariffs may contribute to a challenging macroeconomic environment, WELL operates in the healthcare sector, which is inherently defensive, recession proof and insulated from much of the volatility affecting other industries.

Even if the tariff matter were to escalate and include services, WELL would still not be materially exposed as the Company does not offer its healthcare software platform capabilities or care delivery services on a cross-border basis between the two countries. Additionally, WELL does not expect any material supply chain impacts to any of its operations, as per the impacted list shared by the Department of Finance Canada. Furthermore, WELL has significant exposure to the US dollar as over 60% of its revenues, Adj. EBITDA and cashflow is generated in US Dollars by WELL's US based entities which also positions the Company favourably in the event of currency volatility.

Eva Fong, Chief Financial Officer of WELL, commented "Our business is built on a strong, resilient foundation, and we are well-positioned to withstand any macroeconomic challenges that may arise. Even if the potential tariffs between the U.S. and Canada escalates to include services in addition to goods, this would not affect our operations, as our technology and care delivery services are not sold across the border. We also believe that the current environment may create a surge of 'buy Canadian' optimism which we believe could significantly boost opportunities for our WELLSTAR technology platform as it does compete from time to time with US companies for material Canadian public sector contracts."

Footnotes:

1. WELL defines Pre-Tax Unlevered ROIC for its Canadian clinic cohorts, as the Adjusted EBITDA of the underlying businesses, inclusive of clinic transformation costs, divided by the total M&A consideration, including upfront cash, share consideration, and realized and future earn-out payments. The Total M&A consideration used in the Pre-Tax Unlevered ROIC calculation excludes any allocation of corporate overhead, Property, Plant & Equipment, and Working Capital. The non-GAAP financial measures included in this non-GAAP ratio includes Adjusted EBITDA. This non-GAAP ratio is not a standardized financial measure used to prepare the Company's financial statements and may not be a comparable to similar financial measures disclosed by other issuers. The Company uses these non-GAAP standardized measures as supplemental indicators of its financial and operating performance which the Company believes allows for meaningful analysis of trends in its clinic business.
2. The Average Acquisition Multiple of EBITDA at Purchase for the 2023 clinic cohort is not meaningful, as the aggregate Adj. EBITDA for the 2023 clinic cohort was negative, resulting in a negative valuation multiple.

WELL HEALTH TECHNOLOGIES CORP.

Per: "Hamed Shahbazi"

Hamed Shahbazi

Chief Executive Officer, Chairman and Director

About WELL Health Technologies Corp.

WELL's mission is to tech-enable healthcare providers. We do this by developing the best technologies, services, and support available, which ensures healthcare providers are empowered to positively impact patient outcomes. WELL's comprehensive healthcare and digital platform includes extensive front and back-office management software applications that help physicians run and secure their practices. WELL's solutions enable more than 38,000 healthcare providers between the US and Canada and power the largest owned and operated healthcare ecosystem in Canada with more than 200 clinics supporting primary care, specialized care, and diagnostic services. In the United States WELL's solutions are focused on specialized markets such as the gastrointestinal market, women's health, primary care, and mental health. WELL is publicly traded on the Toronto Stock Exchange under the symbol "WELL" and on the OTC Exchange under the symbol "WHTCF". To learn more about the Company, please visit: www.well.company 

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