Enhabit : Successfully Stabilized Business and on the Right Path to Unlock Shareholder Value

Successfully Stabilized Business and on the Right Path to Unlock Shareholder Value

July 1, 2024

Enhabit Home Health & Hospice

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Forward-Looking Statements

Statements contained in this presentation which are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking information speaks only as of the date hereof, and Enhabit undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are based upon current information and involve a number of risks and uncertainties, many of which are beyond our control. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from our present expectations include, but are not limited to, our ability to execute on our strategic plans, regulatory and other developments impacting the markets for our services, changes in reimbursement rates, general economic conditions, changes in the episodic versus non-episodic mix of our payers, the case mix of our patients, and payment methodologies, our ability to attract and retain key management personnel and health care professionals, potential disruptions or breaches of our or our vendors', payors', and other contract counterparties' information systems, the outcome of litigation, our ability to successfully complete and integrate de novo locations, acquisitions, investments, and joint ventures, our ability to successfully integrate technology in our operations, our ability to control costs, particularly labor and employee benefit costs, and impacts resulting from the announcement of the conclusion of the strategic review process. Additional information regarding risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in this presentation are described in reports filed with the SEC, including our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which are available on the Company's website at http://investors.ehab.com and free of charge through the website maintained by the SEC at www.sec.gov. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this presentation.

Important Additional Information and Where to Find It

The Company has filed a definitive proxy statement on Schedule 14A and other documents with the SEC in connection with its solicitation of proxies from the Company's stockholders for the Company's 2024 annual meeting of stockholders. THE COMPANY'S STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ THE COMPANY'S DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO), THE ACCOMPANYING YELLOWPROXY CARD, AND ALL OTHER DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and stockholders may obtain a copy of the definitive proxy statement, an accompanying YELLOWproxy card, any amendments or supplements to the definitive proxy statement and other documents filed by the Company with the SEC at no charge at the SEC's website at www.sec.gov. Copies will also be available at no charge by clicking the "SEC Filings" link in the "Investors" section of the Company's website, http://investors.ehab.com, or by contacting [e-mail] as soon as reasonably practicable after such materials are electronically filed with, or furnished to, the SEC

Enhabit Home Health & Hospice

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What This Contest is About: The Best Path Forward

We and AREX agree that the only thing that matters now is setting the Company on a path that will unlock Enhabit's substantial value for all stockholders

Enhabit Home Health & Hospice

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Contents

Executive Summary	5
Introduction to Enhabit	7
Proven Value Proposition and Growth Strategy Driving Results	20
Recently Refreshed, Highly Qualified Board with the Right Mix of Skillsets and Experience	33
AREX's Campaign and Slate of Less Experienced Director Candidates Threatens to	39
Disrupt Our Stabilized Business
Key Takeaways	53
Appendix	56

Enhabit Home Health & Hospice

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Executive Summary

Enhabit Home Health & Hospice

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Executive Summary

Recent Performance Demonstrates

Operational Improvements Despite

Headwinds

Our Proposed Board is Specifically

Designed to Possess Relevant Industry and Public Company Oversight Expertise

Board Has Taken Actions in Light of

the Challenges Faced by Enhabit

Since the Separation

AREX's Proposal to Take Control of

the Board Threatens to Destroy

Shareholder Value

• Enhabit has faced industry-wide and company-specific headwinds since the time of the separation (July 1, 2022) that have disproportionately impacted Enhabit relative to most peers
• Initiatives designed to remediate headwinds have demonstrated results over the past two quarters: reaffirmed 2024 revenue and adj.
  EBITDA guidance, with two consecutive quarters (Q4 '23 & Q1 '24) beating consensus adj. EBITDA
• Home Health admissions up 5.3% y/y in Q1 '24 with percentage of revenue from Medicare in line with closest peer and 38% of non- Medicare visits in payor contracts with improved rates
• Hospice recorded sequential census increases each month from January to May with Hospice admissions increasing 5.6% q/q in Q1 '24
• Proposed Board has a combination of skills and experience that was specifically designed to provide the most relevant guidance to management in its execution of strategy as well as oversee the management and operation of a public company.
• Proposed Board has directors with specific and deep experience related to key business drivers, as well as directors with finance, human capital management, governance, and IT and cyber experience necessary to function properly as the board of a public company
• Five independent proposed directors joined the Board at the time of the separation (July 1, 2022) and two joined in March 2023 pursuant to a cooperation agreement with two stockholders. As a result, seven of eight independent director nominees have a tenure of two years or less
• Provided oversight and guidance for advancement of payor innovation strategy
• Formed a special technology committee to redefine go-forward IT infrastructure and data / analytics strategy
• 26 finance committee and audit committee meetings to support the enhancement of our finance organization
• Following the urging of AREX, the Board ran a comprehensive strategic review process that lasted nine months and engaged 38 potential counterparties. Having received no formal proposals, the Board unanimously determined to conclude the strategic review, but remains open to considering all potential paths to enhance stockholder value
• AREX's demand for control of Enhabit's Board will jeopardize the stability that has been achieved by the Company and the continued progress going forward
• AREX's slate recruitment appears to prioritize putting forth nominees who can claim nexus to Home Health and Hospice, including for short periods of time and with low levels of management authority
• AREX's selection of its slate, intention to institute a "Transformation Committee" that presumably would function as a shadow management team, and cursory plan reflect its lack of understanding of our issues

Enhabit Home Health & Hospice

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Introduction to Enhabit

Enhabit Home Health & Hospice

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Enhabit Overview

We are a leading provider of home health and hospice services that strives to provide superior, cost-effective

care where patients prefer it: in their homes

For over 20 years, we've provided care with high- quality outcomes becoming a trusted partner of health systems, payors and other risk-bearing entities

We operate nationally across 34 states with 10,800+

employees

We foster an award-winningculture that is a strategic advantage in attracting and retaining talent and a main contributor to our continued success

1. As of March 31, 2024.
2. Based on 2022 Home Health Medicare revenues.
3. Trailing 12 months through March 31, 2024.

255	112	107
Home Health Locations(1)	Hospice Locations(1)	hospice locations co-
		located with home health
		locations(1)

10	~66%
states where we are #1 or	of total Medicare home
#2 in home health(2)	health spend occurs in
	states in which we
	operate(2)
Home Health	Hospice
210,330	3,408
Total Admissions(3)	Average Daily Census(3)
$848 million	$196 million
Total Revenue(3)	Total Revenue(3)

Enhabit Home Health & Hospice

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Home Health Industry Overview

Home Health

• Home health provides skilled medical care by a medical professional, such as a registered nurse or physical therapist in the home instead of a hospital or doctor's office. Home health care is usually less expensive, and more convenient, and effective home healthcare is designed to keep patients out of the hospital

• Home health services include skilled nursing care, physical therapy, occupational therapy, speech-language pathology services, and home health aide

• Patient must meet certain eligibility criteria:		g
•	Patient must be confined to the home	•
Prescribed by a physician under a home health plan of care
•	Provided on intermittent basis - less than seven days a week or less than eight	•	Provided by a Medicare-certified home health agency
	hours a day over a period of no more than 21 days

• Home health providers receive payment for services from the federal government (primarily under the Medicare program), managed care plans and private insurers, and, to a considerably lesser degree, state governments (under their respective Medicaid or similar programs), as well as directly from patients
• A substantial portion of home health revenue is derived from Medicare (Original Medicare - Part A) and Medicare Advantage (Part C)

	Beneficiary / Insured Fees	Home Health Service Provider Revenue
Medicare	Fee-for-service health plan.	Fee-for-service payment rates are established
	The insured pays a	annually by the federal government. Medicare
	deductible and coinsurance	pays the provider
	amount for each service
Medicare	Insured chooses from	Medicare pays a set monthly amount for each
beneficiary directly to the private insurer. The
Advantage	numerous plans offering
provider and private insurer negotiate payment
	varying out-of-pocket costs,
	rates for the services. The private insurer makes
	premiums, and service
	profit when the cost of services provided to its
	bundles
	members is less than what it receives from
		Medicare

Total Medicare Advantage Enrollment (% of eligible Medicare beneficiaries), 2008-2023

At time of the separation, CMS estimated that 51% of Medicare beneficiaries would choose

Medicare Advantage by 20301; however,51% Medicare Advantage passed 50% in 2023

37%

29%

22%

2008

2013

2018

2023

Source: KFF analysis of CMS Medicare Advantage Enrollment Files, 2010-2023. (1) Centers for Medicare & Medicaid Services, Medicare Trustees' Report Nov 2021.

Enhabit Home Health & Hospice

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Hospice Industry Overview

Hospice

• Hospice care focuses on providing pain and symptom management for terminally ill patients and support for the family
• Hospice services include physician, nurse and medical services, certified home care aid, social worker and volunteer services, durable medical equipment, medical supplies, medications for pain and symptom management, physical and occupational therapy, speech-language pathology services, chaplain and spiritual and grief counseling
• Hospice care is provided at home, in a nursing home, senior living facility, or inpatient hospice care facility
• Patient must meet certain eligibility criteria:
• • Two physicians must certify the patient is terminally ill - a six-month or less life expectancy
  • Patient must accept hospice care and waive any rights to other curative benefits for the illness
  • Provided by a Medicare certified agency
• Substantially all hospice revenue is derived from Medicare (Original Medicare - Part A). Medicare covers hospice even if the patient has a Medicare Advantage plan

	Beneficiary / Insured Fees	Hospice Service Provider Revenue
Medicare	Medicare covers 100% of hospice costs; no copay or	Payment rates are established annually by the federal government. Medicare pays the provider
	deductible for the beneficiary

Care Settings

Patient's Home	Hospice Facilities	Assisted Living	Other Facilities	Nursing Home
Facilities

Enhabit Home Health & Hospice

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