West Pearl Brochure

The project of the decade will be West Pearl: Construction and operation of modern Ambulatory Surgery Centers in the principle cities of Mexico, beginning in Guadalajara.

AMBULATORY AN INTERNATIONALLY SURGERY CENTERS PROVEN BUSINESS MODEL ✦ ASCs are non-hospital-based, stand- FOCUS ECONOMICS PATIENT SATISFACTION alone facilities. In ASCs, surgeons and Costs are up to 60% ASCs boast a high level of ✦ They offer same-day surgery for over staff focus on a high lower in ASCs compared patient satisfaction due to 3,500 procedures, encompassing all volume of a narrow range to hospital-based care the lower, more surgical specialties. of procedures, allowing due to shorter turnaround transparent prices, the them to create organized times for cases, fewer simplified procedures, ✦ In the U.S., over 6,000 ASCs are processes that continually schedule disruptions, the convenience of performing over 60% of all surgical improve quality of care reduced overhead, and recovering at home, and procedures. and efficiency. the elimination of cost the near-zero risk of shifting from other hospital-acquired ✦ Growth has been fed by increased hospital departments. infection. numbers of outpatient procedures, aging populations, and surges in technology.

Introducing the ASC to Mexico ✦ Latin America holds a very small percentage of the global market share in ambulatory surgery centers. There are no stand-alone, multi-specialty ASCs in Mexico. ✦ Yet nearly 40% of all surgeries performed in the public health system in Jalisco are being performed on an ambulatory basis. ✦ Ambulatory surgery is also being performed in hospital-based outpatient departments and single-specialty centers, but without the aforementioned benefits unique to ASCs. WHAT ARE POSITIVE GROWTH PREDICTORS FOR ASCS IN MEXICO? ✦ The underfunded public sector ✦ The expanding middle class ✦ The high rate of private pay for healthcare ✦ The strong local economy

THE WESTPEARL DIFFERENCE TRANSPARENT MODERN EFFICIENT MULTI-SPECIALTY NATIONAL COMPETITIVE FACILITIES MANAGEMENT SURGEONS EXPANSION PRICES

Market Analysis Directors of the four largest health insurance companies in Mexico indicated an interest in both reimbursement and direct pay agreements. Of the twelve local surgeons interviewed, 81% stated that they would recommend the proposed ASC to their patients. 82% of the 100 recent ambulatory surgery patients interviewed said that they would be very likely to choose the proposed ASC, due to the price and specialization. 100 potential ambulatory surgery patients were interviewed, and 79% stated that they would be very likely to choose the proposed ASC, due to the price transparency, comfort, and high technology.

STRATEGIC ALLIANCES Architecture Medical Equipment Branding and Marketing Accounting Services Real Estate Structural Engineering Planning and Procurement Communications Audit Services ✦ Has established itself as one ✦ Ranked among the top five ✦ The leading provider of ✦ A cross-border branding and ✦ Has provided highly of the most prominent real architectural engineering medical equipment planning, marketing firm that has specialized accounting, estate companies in western firms in the world, and third procurement, and installation grown to be a leading advisory and audit services to Mexico over the past forty- in the healthcare sector. management services in the communications firm in national and multi-national two years. U.S. Mexico. companies operating within ✦ Completed construction Mexico for more than fifteen ✦ The managing partners of projects of more than $75 ✦ Completed more than nine ✦ Has partnered with West years. Guía are working with West billion in over 1,263 cities hundred projects and Pearl to create and Pearl and its real estate legal across 80 countries. planned more than $5 billion communicate the West Pearl ✦ Has applied its broad team to identify the worth of medical equipment. brand, including naming, understanding of the commercial property in ✦ Designed the master plan for creation of the graphic financial models of the ASC Zapopan where the initial the West Pearl ASC in ✦ In collaboration with West identity and brand industry to the West Pearl West Pearl ASC will be Guadalajara. Pearl and HKS, will interact communication plan, and financial projections. developed. with medical staff, project developing the internet and ✦ Will continue to provide managers, design teams and social media presence. ✦ Will perform functions of architectural and engineering suppliers to successfully West Pearl’s financial design for the ASC, as well as procure, transport, receive ✦ Will continue to provide department on an construction supervision and install all of the medical advertising and public outsourced basis. services for the duration of equipment for the West Pearl relations services. the project. ASC in Guadalajara.

Centro Medico Puerta de Hierro The first West Pearl ASC will be Universidad Autónoma located in Zapopan along the Avenida de Guadalajara Patria Corridor, the heart of the medical community. Hospital San Javier This location will be easily accessible Hospital Ángeles del Carmen from the practice locations of the Hospital Real San José surgeons who will operate at the ASC, as well as for their patients. From an investment perspective, this is one of the strongest areas for commercial real estate in the city, where commercial properties have steadily gained in value over the past several decades.

HKS is designing the first world-class West Pearl ambulatory surgery center. ✦ Ten operating/procedure rooms ✦ 3,000m2 (32,000 ft2) facility ✦ Built on an estimated 5,000m2 (54,000 ft2) lot









Brand Communications Emotional Brand Propositions ✦ Specialized care for each unique person. ✦ Consideration of the comfort of the patient and their companions. ✦ Discharge on the same day so the patient can continue with their life in a healthy way. Rational Brand Propositions ✦ Specialized, high quality care. ✦ Fair, transparent prices. ✦ Highly trained staff. ✦ Advanced technology.

PROJECT TIMETABLE: 2.8 YEARS LAND ACQUISITION PRE-CONSTRUCTION CONSTRUCTION FINISH OUT ✦ Purchase ✦ Schematic ✦ Construction ✦ Staffing Property Design Administration ✦ Certifications ✦ Advertising ✦ Branding ✦ Construction ✦ Medical Development Documents Equipment Final 9 months ending Jun. 1, 2022 8 months ✦ Zoning 18 months ending Apr. 1, 2020 ending Jun. 1, 2022 8 months ending Dec. 1, 2020

CAPITALIZATION OVERVIEW FOR GUADALAJARA ASC Phase I Phase II Phase III $10 M $10.125 M $10.675 M Land Purchase Construction Medical Equipment Source/Terms Source/Terms Source/Terms ✦ Private equity investors ✦ Traditional construction loan ✦ Private equity investors ✦ Preferred, non-voting shares ✦ Collateralized with property ✦ Preferred, non-voting shares representing 25% of the purchased in Phase I land representing a maximum of 15% company acquisition of the company ✦ Investment secured with the value of the property

REVENUE 450 $412.5 400 $396.9 350 $343.8 USD (Millions) 300 $284.4 250 $231.3 200 $187.5 $156.3 150 100 $96.9 50 $37.5 $59.4 $75.0 2026 2027 2028 2029 2030 2031 2032 2033 $21.9 2023 2024 2025 0 2022

CASH FLOW 12 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 $10.0 M $15.15 M $19.15 M $26.4 M $26.4 M $22.5 M $43.7 M $38.9 M $37.2 M $15.2 M - 11 10 9 8 7 6 5 4 3 2 1 1 0 2022 - Net Cash Used in Investing Activities

RETURN ON INVESTMENT 350 Approximate ROI to Phase I Investors $USD (Millions) 300 $302 $314 % Annual Rate of Return 250 $262 232% 224% 200 $73 $118 $142 $176 $216 218% 2032 2033 150 100% 148% 158% 176% 197% 2031 100 2026 2027 2028 2029 2030 $56 50 93% 0 2025

EXIT STRATEGIES HOSPITAL CHAIN CONSOLIDATION PRIVATE EQUITY IPO DIVIDENDS

Health and Medical Services: The great business opportunity in the Mexican market is Ambulatory Surgery.