1. Social Care – A Market Perspective David Potter – Director Manchester Healthcare 17 th April 2013

2. Agenda Social Care Market – Key Drivers What our clients are saying? Key Drivers of Appetite Future Outlook

3. Social Care Market- Key Drivers Private Fee/Top-ups Vs Market Pressure Ageing Popultation, Health & Social Care Bill Proposals Changing Dynamics of Care Rationing of Care to the most needy Home Care Vs Care Home The Social Care Bubble

4. Key Market Trends 2012 Source: Knight Frank Report 2012. UK Fees (pw) £616 Staff Costs57.1% Occupancy87.9%

5. What our clients are saying? Internal Analysis/Survey Conducted: Occupancy% CustomersFee Level% CustomersLTV% Customers <80%5.3% <£600pw74.6%<70%86.5% 80-90%29.0% £600-£700pw12.6%70-75%7.5% >90%65.7% >£700pw12.8%>75%6.0%

6. September 2006 Critical Success Factors Strong management team (recognising and managing risk) Good staff recruitment and retention policies Strong inspection reports Investment and re-investment in the business Good relationships with Local Authorities Niche/diversification (emerging markets/flexibility/recognising local dynamics) Size

7. Experienced Care Home Operators Reasons for Success Purpose built care homes Financials & Costs Excellent CQC Reports

8. Key Drivers of Appetite Asset Quality Supply & Demand Management Regulatory & Operational Strategy Staffing Fee mix

9. KPI’s Occupancy – and know your break even Average Weekly Fee Average Length of Stay Staff costs % turnover Maintenance Capex per bed EBITDA per bed

10. Specialist Care Asset Quality Complexity of need

11. Home care Working Capital Supported/Assisted Living models

12. Future Outlook Increased Regulation Inward Investment Required Quality Focus Trip Advisor Growth in Boutique Style Homes Positive Demographics LA Fee Pressures Effective Planning & Strategy Cost optimisation product & service Do nothing! Strategy

13. The Keys to Success 3 Q’s

14. Appendix