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Mario Mckenzie- Capital Capacity Defender Partner at CliftonLarsonAllen LLP CPA, Masters Degree in Accounting 22+ years senior living experience 3 additional years as Army Medic Extensive experience in –Strategic Planning –Strategic Capital Planning –Feasibility Studies –Market Assessments –Healthcare Reform –Executive Compensation Studies –Mergers and Acquisitions –Financial Statement Audits 2

ANGELA LARSON - Capital Capacity Defender CFO at Montereau 15+ years senior living experience Public Accounting Background B.A., Business Administration and Accounting Responsible for all aspects of: Finance, banking, accounting Auditing, budgeting, reporting Information systems function Strategic planning Corporate compliance Reports to Board and its Executive Committee 3

STRATEGIC CONSIDERATIONS 4

Assembling the Puzzle Market Operations Mission Strategy How do you make sure the financial piece of the puzzle fits? Finance 5

Market Driven, Financially Viable WHAT WE CAN DO 6

How Do We Do More? WHAT WE CAN DO 7

Life Cycle With No Repositioning Strength Weakness Time Financial Viability Market Defendability When the Market Position First Declines, the Finances still increase. Once the market position deteriorates and affects occupancy the financial position starts a rapid decline! 8

Strength Weakness Time Financial Viability Market Defendability Life Cycle With Repositioning Repositioning From Financial Strength Repositioning From Financial Strength 9

Strength Weakness Time Financial Viability Market Defend ability - Facility 1 ` Market Defendability - Facility 2 Having multiple facilities allows the financial strength of one facility to facilitate the creation of another facility. In turn the newer facility allows the repositioning of the original facility. ` Multiple Campuses 10