Business Forum: AWS Foundation Presented by: Mike Cahill September 9, 2015 President & CEO Physicians Health Plan of Northern Indiana, Inc.

AGENDA Genesis & Structure Governance Evolution of Expectations Areas of Impact Organizational Issues Q & A

MISSION / VISION

GENESIS & STRUCTURE AWS Foundation Officially formed July 1, 2007 Anthony Wayne Rehabilitation Center (AWRC) split into three separate entities All cash, investments and real estate pushed to new ‘parent’ company - AWS Foundation

GENESIS & STRUCTURE All services and programs – ‘for profit’ options placed in new subsidiary – ‘not for profit’ remaining in AWRC subsidiary Formed modest foundation – cash and investment of roughly $7 million – real estate holdings of about $15 million Hopes and dreams of foundation board – annual grants of $500,000 per year

GOVERNANCE AWS Foundation Board of Directors Don Steininger - Chairman Andy Brooks – Vice Chairman and original member Rise’ Taylor - Treasurer and Investment Committee Chair Tracie Martin - Secretary and Grants Committee Chair Ben Eisbart - Governance Chair and original member Continuing original members: – Patti Hays, Ian Rolland and Dick Teets Remaining members – Tim Dirig and Tom O’Neill

GOVERNANCE AWS Foundation Sole member of AWRC, not for profit corporation AWRC has a separate board Foundation approves ₋new board members ₋new terms for existing members ₋slate of officers

GOVERNANCE AWRC OPERATONS PostMasters, Red Cedar, Workshops, etc. Managed by A.W. Holdings, LLC

GOVERNANCE AWS Foundation Sold 40% ownership in ‘for profit’ subsidiary to management team – A.W. Holdings, LLC (known as Benchmark Human Services) A.W. Holdings, LLC – separate board comprised of 3 appointees of Foundation board (Tim Dirig, Doug Stratton, and Mike Cahill) 2 appointees of management team (Bill Swiss and Mark Flegge)

EVOLUTION OF EXPECTATIONS AWS Foundation Believed annual need to subsidize AWRC –instead AWRC generating a $2 million annual surplus (PostMasters) A.W. Holdings, LLC expected to stay around $65 million –3 states of operation –annual revenues with 5% operating margin ($3.25 million in surplus)

EVOLUTION OF EXPECTATIONS Currently A.W. Holdings, LLC –over $120 million in annual revenues –6% operating margin ($7.2 million in surplus) Real estate holdings related to LLC –grown by $15 million (financed by cash flow) –generating excess annual surplus of $2 million Annual giving maintained at $500k to $750k per year until fiscal 2014 $40+ million investment portfolio

EVOLUTION OF EXPECTATIONS Results ‘Value’ of AWS Foundation’s holdings is $100 million –annual cash flow after overhead of $10 million Level of grant making increasing along with related community impact

AREAS OF IMPACT Key Initiatives Early Diagnosis, Resources and Research Advocacy and Awareness Education and Employment Housing Transportation Social Enrichment

ORGANIZATIONAL ISSUES Foundation currently addressing Identification of new CEO – long-term versus project based Long-term ownership of operating entities Geographic scope and reach Defining what success looks like in each of area of impact over next 5 years

Questions?