Prism Medical (TSX-V – PM)

May 2013Stuart Meldrum, CEOGeorge Chiarucci, CFO

Forward-looking statements

This presentation contains forward-looking statements relating to our operations and to the environment in which we operate and our strategy, action plans and investments, which may involve estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and/or are beyond our control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in this presentation and our other public filings. Consequently, readers should not place any undue reliance on such forward-looking statements. These forward-looking statements are made as of the date of this presentation. Prism Medical is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or other factors. All forward-looking statements attributable to Prism Medical are expressly qualified by these cautionary statements.

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Fixedceiling lifts

Portable ceiling lifts

Floor lifts Slings

Shower chairs

Repositioning aides

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Prism Medical

We provide solutions to the mobility challenged to improve their Quality of Life

6.2% Yield

Global presence

United Kingdom2 manufacturing facilities5 regional service and training centres

United StatesManufacturing facility2 regional service centresTraining centre

CanadaR&D facilityContracted third party serviceTraining centre

450 employees

$76M 2012 Revenue

$6.5M 2012 EBITDA

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17% Operating Cash Flow CAGR last 5 years

November 30, 2012

Growth business

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Aging population

2011 2030

In 2030, 20% of North Americans will be over 65

First baby Boomers turn 65

65% of healthcare dollars are spent on patients over age 65

25% of those over age 80 are immobile

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$1Bper year

Cost to the US healthcare system due to workers’ compensation

RN injuries due to moving patients

Replacement nursing costs avoided if reduce injuries

Healthcare cost pressures intensifying

35%more

Long-term care costs are 35% higher than home care

Global economic situation resulting in budgetary pressures on healthcare spending at same time as increasing demand

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38% of RNs suffer back pain that requires leave from work

Strong demand for mobility equipment

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Acute care

Homecare

Long-term care

Safe patient handling• Accepted as the solution to avoid

care giver injuries

• Strong adoption in US market

• UK & Canada already adopted

• Legislation driven in UK

Homecare & quality of life• Healthcare system wants to keep

patients at home based on costs

• Patients want to be at home based on quality of life

Vertical integration & Local service

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Manufacturing• Full range of products

• Engineering and design

Service• Assess

• Installation

• Maintenance

• Training

Sales• Direct

• Dealer channels

Vertical integrationmeans higher margins

Service focus• Recurring revenue• Higher customer satisfaction

One stop shop•Higher customer retention rates•Repeat business / cross sell

Service is the differentiator

h

Growth - Organic Strategies

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U.S. market

• Expand Independent Homecare & Long Term Care Dealers

• Adoption in underdeveloped institutional market

• Geographic expansion

• “Made in the USA”

New products

• Distribute a broader range of globally sourced products

• Develop more affordable products

• Bundled product & service offerings to give customer ‘more for less’

Homecare

• Homecare will be the primary delivery channel

• Lead the developing homecare market in North America with affordable products and services

• Leverage our extensive distribution and service networks in all geographies

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1996 Beginning of PML - Waverley Glenn acquisition in Canada

$ 0.7 M

2000 to

2004

UK entry - Westholme, Freeway and Carefree

$11.3 M

2006 US entry - Ergosafe $0.7 M

2008to

2010

Built UK distribution network - Test Valley, Saluss Assured Patient Lift, Liftech & M2

$ 5.7 M

2008to

2012

Built US distribution network - PLNE, Access, Dignity and MedCare

$ 14.1 M

Growth - M&A Strategy

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M&A will remain a core component of Prism’s growth strategy. • Distributors in new geographies (U.S. a priority)

• Consolidate manufacturers

• Acquire adjacent products and services

Track record of growing business through accretive acquisitions. 50% of the Company’s growth over the last 5 years.

Overall market Size - $3bn

MedCare

Consideration• $10.5M in total• $1.3M in holdbacks

Purchased• 10+10 year exclusive supply agreement;• Manufacturing assets and inventory;• 49% interest in MedCare

Benefits• Incremental cash flow from the supply agreement & 49% interest;• Relationship with Tier 1 hospital groups that can be leveraged;• Strong base of recurring revenues in parts supply and service;• Well accepted floor lift products that complements our offering;

• Geographic reach.

Business Update

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Significant restructuring completed allowing for future profitable growth

USA• Capital project delays continued into Q4• Homecare growth, 127 new dealers in 2012Canada• Continued growth in new geographies, Quebec• Institutional spend in H1 levelled out in H2, overall substantial growth for full yearUK• Austerity cuts continue• Good growth from Prism strategies to offer customer better valueRight size cost base• Reduced $1.2m spend in costs of goods• Reduced $2.5m spend in SG&AWorking Capital• Reduced by $2.6m versus prior year• Improved inventory and debtor management

Financials

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$43.8$51.9

$65.7 $66.7$73.8 $76.0

Track record of top-line growth (C$ millions)

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20082007 2009 2010

Fiscal year end November 30

2011

CAGR 12%

2012

CAGR 12%

$43.8

$55.1

$72.2$81.6

$90.6 $92.8

Revenue – foreign exchange impact (C$ millions)

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2007 2008 2009 2010

Fiscal year end November 30Data based on constant 2007 exchange rates

2011

CAGR 17%

2012

Revenues in local currency(millions)

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US (US$) UK (£)Canada (C$)

CAGR 9%

$2.9

$11.5

$15.7 $16.0

$11.2

$9.4

$13.2

$10.4

£ 13.6£ 15.3

£ 19.4

£ 25.2

CAGR 43%

Fiscal year end November 30

$20.1

$14.0

£ 26.2

CAGR 14%

07 08 09 10 11

$17.6 $16.9

£ 24.8

12 07 08 09 10 11 12 07 08 09 10 11 12

EBITDA (C$ millions)

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2007 2008 2009 2010

Fiscal year end November 30

2011

$7.6

$10.1 $10.3

$8.8 $9.8

$6.5

$3.7 M in costs are not expected to recur in 2013

2012

Operating cash flow & dividends ($ millions)

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2007 2008 2009 2010 2011 2012 $-

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

$-

$1.1 $1.2 $1.3

$1.9

$2.7

$3.3 $3.6

$3.1

$4.1

$5.3

$7.3

Dividend Op. Cash

CAGR 17%

Average ratio of dividends to operating cash = 35%

Earnings per share (C$ fully diluted)

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$0.45

$0.67 $0.66

$0.52 $0.57

$0.27

2007 2008 2009 2010

Fiscal year end November 30

2011 2012

Quarterly Review ($’000)

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  2013 2012 2011

  FebQ1$

NovQ4$

AugQ3$

MayQ2$

FebQ1$

NovQ4$

AugQ3$

MayQ2$

FebQ1$

Revenues 17,305 18,270 17,188 21,912 18,657 20,406 18,450 18,811 16,146

                   

Gross margin 6,345 6,435 6,690 8,764 7,304 8,788 7,001 8,053 6,573

(as a % of revenues) 36.7% 35.2% 38.9% 40.0% 39.1% 43.1% 37.9% 42.8% 40.7%

                   

Net (loss) income 205 (142) 71 1,538 808 1,579 443 1,139 838

(as a % of revenues) 1.2% (0.8%) 0.4% 7.0% 4.3% 7.7% 2.4% 6.0% 5.2%

                   

Adjusted EBITDA 1,540 671 1,003 2,843 1,997 3,089 1,730 2,768 2,147

(as a % of revenues) 8.9% 3.7% 5.8% 13.0% 10.7% 15.1% 9.4% 14.7% 13.3%

                   

Earnings per share                  

Basic 0.02 (0.02) 0.01 0.18 0.10 0.24 0.07 0.20 0.15

Diluted 0.02 (0.02) 0.01 0.18 0.10 0.23 0.07 0.16 0.12

Bank indebtedness (revolver), net of cash $10.5m

Long-term debt (including current portion) $10.9m

Fully diluted shares outstanding (average for the quarter) 8.6m

Market cap $46.5m

P/E (TTM earnings to Feb 28, 13) 29.5x

EV/EBITDA (2012) 11.1x

Dividend $0.08 per share per quarter (6.2% yield)

Shareholder breakdown 47% Management & Insiders53% Retail & Funds

Summary

21Market data as of market close February 28, 2013

Investment considerations

• Baby boomers aging and focused on quality of life• Healthcare systems globally under financial pressure• Strategies aligned with market & customer needs • Track record of accretive M&A, most recently MedCare • Growing company in a $3 billion market• Cost base now right sized for future profitable growth• Strong cash flow to support dividend

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Prism offers improved quality of life at a reduced cost to the healthcare system

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Prism Medical Ltd.

Established products and servicein a growing market

Head Office  

480 University Avenue, Ste 100 Toronto, Ontario M5G 1V2

George Chiarucci, CFO Tel: (416) 260-2145 ext. 229Email: gchiarucci@prismmedicalltd.com

Babak Pedram, TMX Equicom Tel: (416) 815-0700 ext. 264Email: bpedram@tmxequicom.com