CAHF CEO Conference

1. CAHF CEO Conference May 31, 2012

2. Today’s Agenda • Genesis HealthCare Overview • “Go Private” Transaction Overview • OPCO/PROPCO – REIT Transaction • Questions and Answers

3. Genesis HealthCare Overview Genesis HealthCare (Skilled Nursing & Assisted Living) Genesis HealthCare is one of the nation’s largest long-term care providers. • Genesis operates more than 200 skilled nursing and assisted living facilities in 13 states along the east coast • Focused on higher acuity & medically complex patients • A team of 10,000 Genesis Rehabilitation therapists provide rehabilitation and respiratory therapy services in more than 1,100 sites (including Genesis). 3

4. History Growth Phase: • 1985: Genesis Health Ventures formed & initiation of public co. • 1993 – 1998: Six Major acquisitions • 1998: Purchased Vitalink(now LTC and Pharmacy) • 1993 – 1998: Raised $2.0 Billion in Capital: • Bank Financing • Public Subordinated Debt • Convertible Debentures • Convertible Preferred Securities • Private Equity • Public Equity

5. History Bankruptcy Phase: • Balanced Budget Act of 1998 creates a quantum change in funding • > 70% of revenue came from federal and state gov’t • Government slashed reimbursement by 30% • 5 major long term care companies file for Bankruptcy • GHV files for bankruptcy in June 2000

6. History Restructuring Phase: • October 2001: GHV emerges from bankruptcy • 2001: Combined value is $1.5 Billion • 2003: Board decides that the LTC and pharmacy businesses should be separated; combined value only at $1.3 Billion • December 2003: Genesis HealthCare Corporation is spun-off from GHV • February 2004: Omnicare launches hostile takeover. Closes deal at $1.6 Billion

7. History Restructuring Phase: • Genesis HealthCare embarks on an integrated operational, financial and technical strategy. Focuses on internal modernization and select acquisitions. • EV at spin-off = $900 million; grows to $1.3 Billion • In June 2006, the company looks at strategic alternatives for creating value.

8. Today’s Agenda • Genesis HealthCare Overview • “Go Private” Transaction Overview • OPCO/PROPCO – REIT Transaction • Questions and Answers

9. “Go Private” Transaction Overview Why should Genesis consider going private? • Market liquidity • Cost of being a public company • Sarbanes Oxley • Managing performance to quarterly expectations • Stable reimbursement environment • Hostile takeover environment • Needed to consider all constituents: • Patients and residents • Government regulators • Board of Directors • Employees • Shareholders • Board decides it is in the best interest of the company to go private. Final deal at $1.9 Billion (July 2007).

10. Transaction/ Bidding Overview

11. Transaction/ Bidding Overview

12. Transaction/ Bidding Overview

13. Transaction/ Bidding Overview

14. Transaction/ Bidding Overview

15. Lessons Learned • Consider impact on all constituents • Effective communication with Board • Know your shareholders • Understand market dynamics • Be prepared to lose control of the process • Execution and earnings growth in GHC

16. Today’s Agenda • Genesis HealthCare Overview • “Go Private” Transaction Overview • OPCO/PROPCO – REIT Transaction • Questions and Answers

17. OPCO/ PROPCO – REIT Transaction • Transaction Rationale • Company Performance • REIT Capital Markets Analysis • Transaction Preparation

18. REIT Transaction Rationale • Strategic alignment with REIT partner • Maximize investor value • Access to capital • Support corporate growth

19. Genesis Performance

20. Health Care REIT’s Trends

21. REITs Driving Recent Transaction Activity

22. Transaction Preparation • OPCO/PROPCO Split • Legal • Tax • Finance • Systems * Don’t underestimate the magnitude of this process • Market timing • Execution • Post transaction capital needs

23. Today’s Agenda • Genesis HealthCare Overview • “Go Private” Transaction Overview • OPCO/PROPCO – REIT Transaction • Questions and Answers